Madhav Copper Ltd. · NSE:MCL
Madhav Copper — Investor Presentation (January 2020)
34 slides from Madhav Copper's investor presentation, Jan 22, 2020
Slide 1: Madhav Copper Limited Investor Presentation
MADHAV COPPER LIMITED Investor Presentation January, 2020
Slide 2: Safe Harbour Statement
Safe Harbour Statement This Investor Presentation has been prepared by Madhav Copper Limited (MCL) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or suppli
Slide 3: Executive Summary
Executive Summary Manufacturer of various types Manufacturing facility spread of Copper fabricated products over 49,979 sq. Mts. Listed on NSE EMERGE Bhavnagar based in February, 2017 company having strong presence in Gujarat Continuous expansion ISO 9001:2015, with backward 14001:2015 and integrati
Slide 4: Company Overview
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Slide 5: Our Journey – Continuous Evolvement
Our Journey – Continuous Evolvement • Opened Branch office in Ahmedabad, Gujarat • License IS 8783 from Bureau of Indian Standards • Opened Branch office in (BIS) Coimbatore, Tamil Nadu • Crossed T/o of INR 100 Cr. • Conversion into Public Limited • Expansion of product portfolio and backward Compan
Slide 6: Business Overview
Business Overview Manufacturer of Copper Bus bars, Copper Rods, Profiles, Bars, Flats, Sections, Copper fabricated Products, Tapped Insulated Copper Conductors, Paper Insulated Copper Conductors, Kapton Insulated Copper Conductors, Enamelled Copper Wires and Submersible winding wires. In 2018, Compa
Slide 7: Geographical Presence
Geographical Presence Geographical break-up of our Revenue Amount (Rs. in Lakhs) Particulars FY 18-19 FY 17-18 FY 16-17 Gujarat 17,392.93 16,409.81 7,102.89 Maharashtra 3,278.18 - - Tamil Nadu 509.63 310.15 41.4 Andhra Pradesh 79.32 - - Madhya Pradesh 23.33 65.75 - Karnataka 14.54 3.33 - Delhi 0.38
Slide 8: Business Strategies
Business Strategies Strengthen our brand value and create awareness for our products Improve operational and Expanding our distribution functional efficiency reach Increasing product base Make optimum utilization of our production capacity 8
Slide 9: Product Portfolio (1/2)
Product Portfolio (1/2) Enamelled Copper Wire Submersible Winding Wire Continuous Cast Copper Rod: • Polyurethane, polyester, • Specially insulated with • Made from 100% LME registered polyester imide, Theic Polyester film & Biaxial grade “A” copper cathode. Polyester based enamelling of Oriented Po
Slide 10: Product Portfolio (2/2)
Product Portfolio (2/2) Copper Bus Bars & Strip Copper Profile Copper Anodes Copper Earth Rod: • High conductivity • Extruded and drawn • Made from high purity • Optimum electrical electrolytic tough pitch versions for specific copper cathode with a conductivity. (MCL-ETP) and high applications. pur
Slide 11: Product Segment
Product Segment Product Segment wise break-up of revenue Capacity utilization Amount Rs. In Lakhs Submersible and Enamelled Copper winding wire and Copper Wire FY 18-19 2018-19 ₹ 354.12 Installed Actual Capacity capacity Production (in Utilization (%) ₹ 4,379.66 (in MT)* MT)* ₹ 1,314.61 ₹ 4,800.00 3
Slide 12: Manufacturing Facility
Manufacturing Facility 12
Slide 13: Industry Overview
Industry Overview Industry Overview 13
Slide 14: Industry Snapshot
Industry Snapshot Global Copper Industry Indian Copper Industry • Global Copper mine production reached 20.0 million tonnes • Copper is the second largest non-ferrous metal in India in in 2017. terms of production. • Refinery Production in 2017 increased to 23.5 million • India ranks seventh in glob
Slide 15: End Use of Copper In Indian Market
End Use of Copper In Indian Market Copper and copper alloys are transformed by downstream industries for use in end-use products such as automobiles, appliances, electronics, wires and cables and a whole range of other copper dependent products. Demand for primary copper has grown at a CAGR of 14% o
Slide 16: Our Management
Our Management = = z = : - : z = 16
Slide 17: Visionary Promoters & Management
Visionary Promoters & Management Nilesh Patel Rohit Chauhan, Divya Monpara Chairman & Whole Time Managing Director Non Executive Director Director • Bachelor of Engineering * Associated with Company since (Production) and Post Graduate incorporation as director. • Experience of more than decade in D
Slide 18: Financial Performance
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Slide 19: Financial Snapshot (1/2)
Financial Snapshot (1/2) RoNW (%) RoCE (%) 32.04% 44.27% 37.97% 21.95% 16.51% 24.85% 21.45% 12.38% FY 16-17 FY 17-18 FY 18-19 September FY 16-17 FY 17-18 FY 18-19 September 30, 2019 * 30, 2019 * Debt Equity Ratio NAV per share (in Rs.) – After bonus & split effect 1.59 6.39 5.34 0.91 3.63 0.81 0.76
Slide 20: Financial Snapshot (2/2)
Financial Snapshot (2/2) Amount Rs. In Lakhs Amount Rs. In Lakhs Total Revenue PAT 21,305.04 16,910.63 421.42 9,434.48 7,162.87 260.13 196.23 86.38 FY 16-17 FY 17-18 FY 18-19 September 30, 2019 * FY 16-17 FY 17-18 FY 18-19 September 30, 2019 * Amount Rs. In Lakhs EBITDA Networth Amount Rs. In Lakhs
Slide 21: Balance Sheet
Balance Sheet (Amount Rs. In lakhs) Particulars September 30, 2019 March 31, 2019 March 31, 2018 March 31, 2017 Equity & Liabilities Share Capital 616.08 616.08 205.36 205.36 Reserves & Surplus 959.36 699.23 688.52 492.29 Non-current Liabilities Long Term Borrowings 281.96 289.60 159.98 178.95 Defer
Slide 22: Profit & Loss Statement
Profit & Loss Statement (Amount Rs. In lakhs) September 30, Particulars March 2019 March 2018 March 2017 2019 Revenue from operations 9,374.17 21,298.55 16,881.94 7,144.29 Other Income 60.31 6.50 28.69 18.58 Total Revenue 9,434.48 21,305.04 16,910.63 7,162.87 Cost of material consumed 4,900.18 17,63
Slide 23: Statement of Cash Flow (1/2)
Statement of Cash Flow (1/2) (Amount Rs. In lakhs) Particulars September 30, 2019 March 2019 March 2018 March 2017 Cash Flow from Operating Activities Net Profit for the period from continuing operations 341.78 604.02 321.54 114.88 Adjustments for - Income Tax 91.58 174.01 86.82 34.92 Interest cost
Slide 24: Statement of Cash Flow (2/2)
Statement of Cash Flow (2/2) (Amount Rs. In lakhs) Particulars September 30, 2019 March 2019 March 2018 March 2017 Income Tax Paid (Net) 110.57 129.30 59.08 32.25 Net Cash from Operating Activities (A) 282.06 661.05 741.81 (580.41) Cash Flow from Investing Activities (Increase)/Decrease in Non-Curre
Slide 25: Capital Market Outlook
Capital Market Outlook = = z = : - : z = 25
Slide 26: FPO Highlights
FPO Highlights Particulars Details Issuer Madhav Copper Limited Issue Type Book Built Issue Issue Size* ₹ 2,549.59 lakhs Price Band Rs. 100 - Rs. 102 per Equity Share Issue Opens Monday, January 27, 2020 Issue Closes Thursday, January 30, 2020 Lot Size 1,200 Equity Shares and in multiple thereof Sto
Slide 27: Issue Structure
Issue Structure Details Reservation Categories Number of Equity Shares reserved Market Maker Portion 1,26,000 Equity Shares Retail Portion 11,86,800 Equity Shares Issue Structure Non-Retail Portion 11,86,800 Equity Shares Total 24,99,600 Equity Shares Shareholding Pattern Pre FPO Post FPO 26.96% 33.
Slide 28: Objects of The Issue
Objects of The Issue General Pre/Re – ₹ Purchase of ₹ ₹ Working ₹ Corporate Payment of Purpose & Plant 648.83 secured 200.00 Capital 1,100.00 600.76 Requirement other & Machinery Lakhs borrowings Lakhs Lakhs expenses Lakhs Total Fund raising - ₹ 2,549.59 Lakhs* *Calculated on Cap price 28
Slide 29: Peer Comparison
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Slide 30: Peer Comparison
Peer Comparison Particulars (FY 18 - 19) Madhav Copper Precision Wires Ram Ratna Wire Hindustan Copper Profitability & Operating Ratios Total Revenue (in lakhs) 21,305.04 1,75,941.58 1,25,355.09 1,85,291.59 EBITDA Margin 4.25% 5.37% 5.11% 29.07% PAT Margin 1.98% 2.38% 1.27% 7.85% RONW 32.04% 15.76%
Slide 31: Stock Data Snapshot
Stock Data Snapshot a en ec 31
Slide 32: Growth Decoded - Return on Investment
Growth Decoded - Return on Investment Particulars Details 1518 1448 All time High ₹ 1679 140413841376 1424 1335 CAGR Return 156.88% (Since IPO till 1216 January 17, 2020) CRISIL Stable Rating of BB+ 1065 973 975 Average Daily Volume 22,560 Equity Shares 783 535 446 425 437 432 384 367 374 352 279 30
Slide 33: Why Invest in Madhav Copper
Investment Rationale Why Invest in Madhav 1 Experienced Promoters supported by qualified human resources Copper Manufacturing facility spread over 49,979 sq. Mts. and 2 in-house testing laboratory Backward integration and new product induction in 3 portfolio in 2018 Listed company with established t
Slide 34: Thank You
THANK YOU For further information contact: Madhav Copper Limited Registered Office : Plot No. 2107/D, Office No. 203, 2nd Floor, D&I Excelus, Waghawadi Road, Bhavnagar, Gujarat – 364001, India Website: www.madhavcopper.com; Email: info@madhavcopper.com Contact Number: +91 278 2221034 34