Maithan Alloys Ltd. · NSE:MAITHANALL
Maithan Alloys — Investor Presentation (November 2017)
32 slides from Maithan Alloys's investor presentation, November 2017
Slide 1: Maithan Alloys Limited Investor Presentation – November 2017
MAITHAN ALLOYS LIMITED Investor Presentation – November 2017
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Maithan Alloys Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 3: Strong Performance for Q2 FY18
Strong Performance for Q2 FY18 ₹ Crs +56% +372% 459 90 294 19 Q2FY17 Q2FY18 Q2FY17 Q2FY18 +571% 65 Operating EBITDA Margin PAT Margin 19.6% 14.2% 6.5% 10 3.3% Q2FY17 Q2FY18 Q2FY17 Q2FY18 3 *Net of Excise Duty/ GST
Slide 4: Performance Highlights for H1 FY18
Performance Highlights for H1 FY18 ₹ Crs +62% +235% 889 169 549 50 H1FY17 H2FY18 H1FY17 H1FY18 +334% 124 Operating EBITDA Margin PAT Margin 19.0% 14.0% 9.2% 29 5.2% H1FY17 H1FY18 Q2FY17 Q2FY18 4 *Net of Excise Duty/ GST
Slide 5: Strong Performance Continues…
Strong Performance Continues… ₹ Crs 1,342 222 198 169 889 124 FY17 H1FY18 FY17* H1FY18 FY17 H1FY18 ➢ H1 FY18 Revenue, EBITDA and PAT has already achieved ~65% of FY17 Revenue, EBITDA and PAT ➢ The growth was largely on the back of better product mix and realisations ➢ Increase in utilisation levels
Slide 6: The Maithan Edge…
The Maithan Edge… Largest Rich Niche Robust Manufacturer Experience Products Balance Sheet India’s largest Two decades of Basket of the most Net Cash Manganese experience and Techno-Commercial Credit Rating: Alloy Producer continuous growth Products CARE A+ and Exporter CARE A1+ 6
Slide 7: Visible in Financial Performance
Visible in Financial Performance “A Culture of Outperformance” CAGR from FY2012 to FY2017 Increase in Stake Holder Return’s ▪ ROCE Increased by + 2,670 bps ▪ ROE Increased by + 1,770 bps Revenue increased by +18% CAGR EBIDTA increased by +33% CAGR PAT increased by +34% CAGR Debt Reduction of Rs. 130
Slide 8: Product Offerings
Product Offerings Ferro alloys enhance steel strength, durability, anti-corrosion and anti-stain properties and acts as de-oxidant for Steel Manufacturing Ferro Manganese - An alloy of iron and manganese • Used in steel products wherein silicon content needs to be controlled at low levels • Used in
Slide 9: Capacity addition to support Growth
Capacity addition to support Growth Capacity Built-up Production Volume (MT)– ‘000 Visakhapatnam MVA 137 213 206 Byrnihat, 36 +18% CAGR Meghalaya 158 149 141 36 Kalyaneshwari 16 82 89 76 66 70 24 25 42 2006 2007 2009 2012 2013 Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Increase in
Slide 10: State-of-Art Manufacturing Facilities
State-of-Art Manufacturing Facilities Installed Capacity of 137.25 MVA Smelters: Smelters: Smelters: • 2 x 8.25 MVA • 2 x 5.0 MVA • 4 x MVA 18.0 MVA • 1 x 6.5 MVA • 1 x 8.25 MVA • 2 x 12.0 MVA Products: Ferro Products: Ferro Silicon Products: Ferro Manganese/ Silicon Manganese/ Silicon Manganese Man
Slide 11: Self-Sustaining Business Model
Self-Sustaining Business Model Input of sized and graded Raw We have an ability to generate a Material Larger Throughput Feed in day bins through from our manufacturing facilities conveyors Batch preparation and Charge into Furnace Ferro Manganese Slag Reaction in furnace and discharge of molten met
Slide 12: Strong Client Relationships
Strong Client Relationships Shift of focus from ‘Stable’ Europe to ‘Growing’ Asia helping in better realizations ~100% of Domestic clients are associated with the Company for over 7 years Long term relationships with clients offers Competitive Advantage Low Concentration Risk in export markets with
Slide 13: The Leadership Team
The Leadership Team Mr. Subodh Agarwalla Mr. S. C. Agarwalla Mr. Sudhanshu Agarwalla Whole Time Director and CEO Chairman and Managing Director President and CFO • A B. Tech from IIT Varanasi and M.B.A from IIM • Over 25 years of rich experience in Ferro Alloys • A M.B.A from XLRI Jamshedpur. Bangal
Slide 14: Experienced Board
Experienced Board Mr. Nand Kishore Agarwal Mr. Biswajit Choudhuri Independent Director Independent Director Experienced in the field of Accounts, Finance and Tax Laws Experienced in the field of Engineering, Banking, Finance and Management Mr. Vikash Kumar Jewrajka Mr. Ashok Bhandari Independent Dir
Slide 15: Vision, Mission and Values
Vision, Mission and Values Vision To be India’s premiere Alloy Company that is built on the solid foundation of shareholder trust, customer commitment, employee satisfaction and sustainable communities. Consistently delivering on our promises backed by meticulous hard work is our motto for ensuring
Slide 16: Values
Values Commitment is a passion for us. We are extremely committed to serving our shareholders and customers to Loyalty is the very fabric the best of our abilities. Our promise that runs beneath our to our stakeholders is a hard-ironed organization. We strive to We not only believe but commitment an
Slide 17: Led by our Efficiency Proving our Credibility
Outperformance in 2017… Growing Revenue (₹ Crs) Margins improved even in uncertain times 1,342 250 222 200 25% 1,151 1,107 150 127 109 16.6% 100 15% 50 9.9% 11.1% 0 5% FY15 FY16 FY17* EBIDTA Operating EBIDTA Margins 250 191 200 22% 150 79 14.3% 100 12% 53 50 4.8% 6.9% 0 2% FY15 FY16 FY17 FY15 FY16 F
Slide 18: Maintaining the Maithan Edge
Maintaining the Maithan Edge
Slide 19: Key Growth Drivers
Key Growth Drivers Low Debt Brand Value Addition Sustainability Low Cost Curve Margin Driven Asset Light Model Efficiency Discipline Expanding the Market Integrity From Vendor-ship to Partnership Relationship Driven Solutions Manufacturing and Marketing Efficiencies Customized 19
Slide 20: Key Differentiators
Key Differentiators Optimising Facilities for Efficiency Maximising Returns • Lowest in the Cost Curve • Sources raw materials when it • Optimum Capacity Utilization gets contracts • Higher Tonnage product • PPA agreement with power plants • Stable Asset turnover ratios and low debt-equity ratio Str
Slide 21: Industry Tailwinds
maithan Itd Industry Tailwinds
Slide 22: Asian Economies to drive the Global Steel Demand
Asian Economies to drive the Global Steel Demand Global Steel Demand 2018 : 1,548.5 Mn T CIS EU 3% It caters 70% of 13% NAFTA Global Steel 9% demand Asia, Oceania Avg. rate of & Middle growth is East expected to be 70% in the range ~1%-~2% Central & South AFRICA America 3% 3% Asia Ex-China Growth is
Slide 23: Advantage India
Advantage India 100 % FDI allowed in the India’s GDP to grow by +7 % mining sector & exploration of (IMF) over the next two years metal & non metal ores under the Automatic Route 2017 Budget outlay of ~ ₹ 4 tn in infrastructure to drive domestic steel consumption Steel Industry’s Outlook to Favourab
Slide 24: Support from Government of India
Support from Government of India Alloy Producers to benefit from NSP 2017 Capacity (Mn MT) Production (Mn MT) Per Capita Consumption (kg) CAGR +6% CAGR +7% CAGR +7% 300 255 158 122 92 61 2015-16 2030-31 2015-16 2030-31 2015-16 2030-31 National Steel Policy (NSP) 2017 Highlights • Reduce dependence o
Slide 25: Advantage Maithan
Advantage Maithan World Crude Steel Demand (Mn MT) India Crude Steel Demand (Mn MT) 1,800 100 +2% 1,600 90 +7% 1,400 80 70 1,200 60 1,000 50 800 40 600 30 400 20 200 10 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162017* 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162017* Gaining Market Sh
Slide 26: Future Outlook
Future Outlook Cash & Cash War Chest of Internal Equivalents of ₹ 250Crs Accruals ₹ 190Crs Inorganic Expansion Organic Expansion Company is planning for The Company is looking at Greenfield Expansion and is Acquiring Assets and is already currently evaluating Land for in dialogue with Banks the same
Slide 27: Financials
maithan Itd Financials
Slide 28: Proven Track Record (As per IGAAP)
Proven Track Record (As per IGAAP) 5.5 0.7 4.3 3.9 0.4 0.1 FY15 FY16 FY17 FY15 FY16 FY17 39.5% 44.8% 22.0% 17.6% 20.2% 16.3% FY15 FY16 FY17 FY15 FY16 FY17 Higher Return Ratio is because of prudent capital allocation and superlative operating efficiency 28 *RoE = PAT after Minority Interest / Avg. Sh
Slide 29: Standalone Profit & Loss (As per IND AS)
Standalone Profit & Loss (As per IND AS) Particulars (₹ Crs) Q2 FY18 Q2 FY17 YoY H1 FY18 H1 FY17 YoY Revenue (Net of Excise Duty/ GST) 459 294 56% 889 549 62% Raw Material 236 144 460 265 Power 92 85 183 157 Employee Expenses 11 5 21 11 Other Expenses 30 40 56 66 EBITDA 90 19 372% 169 50 235% EBITDA
Slide 30: Consolidated Profit & Loss (As per IGAAP)
Consolidated Profit & Loss (As per IGAAP) Particulars (₹ Crs) FY17 FY16 YoY Revenue 1,342 1,151 17% Raw Material 628 597 Power 331 315 Employee Expenses 33 23 Other Expenses 128 89 EBITDA* 222 127 78% EBITDA Margin* 16.6% 11.1% Power subsidy (Income) 51 0 Other Income 21 4 Depreciation 28 23 EBIT 26
Slide 31: Standalone Balance Sheet (As per IND AS)
Standalone Balance Sheet (As per IND AS) Particulars (₹ Crs) Sep-17 Particulars (₹ Crs) Sept-17 Non-Current Assets 291 Equity 711 Property, plant and equipment 238 Equity share capital 29 Intangible Assets 0.1 Other Equity 682 Financial Assets Non-current Liabilities 32 i. Investments 25 Financial l
Slide 32: For further information, please contact
For further information, please contact: Company Investor Relations Advisors: Maithan Alloys Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L27101WB1985PLC039503 CIN: U74140MH2010PTC204285 Mr. Rajesh K. Shah Ms. Neha Shroff/ Mr. Viraj Shah rajesh@maithanalloys.com neha.shroff@sgapl.net / viraj.shah@s
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