Salasar Techno Engineering Ltd. · NSE:SALASAR
Salasar Techno Engineering — Q1 FY18 Earnings Presentation
36 slides from Salasar Techno Engineering's earnings presentation, September 2017
Slide 1: Cover letter to stock exchanges
SALASAR 5'h September, 2017 To, The Manager - Listing The Secretary National Stock Exchange of India Ltd. Corporate Relationship Dept. Exchange Plaza, Bandra Kurla Complex BSE Limited Bandra East P.J. Tower, Dalal Street, Mumbai — 400051 Mumbai — 400001 Symbol — SALASAR Scrip Code: 540642 SUB: Inves
Slide 2: Salasar Techno Engineering Limited Investor Presentation
SALASAR Salasar Techno Engineering Limited Investor Presentation September 2017
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Salasar Techno Engineering Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection
Slide 4: Agenda
Disclaimer Company Overview 01 Business Overview 02 Industry Overview 03 Financial Highlights 04 Way Ahead 05 3
Slide 5: Company Overview
Company Overview
Slide 6: Company Overview
Company Overview manufacturing/fabrication ISO 9001: 2015, 14001: 2015 One of India's face and OHSAS 18001: 2007 certified Focus on Innovative Products for Ramboll's technical expertise in Telecom towers structural Provider of customised partners Increased steel fabrication and design capacity from
Slide 7: Timeline
Timeline FY 13 FY 18 Ventured into FY 16 Received Approved transmission Bagged Rs. 228 cr Vendor status from business, 1st order project s for Rural PGCIL for 70 km line from Electrification st 1 order for FY 11 RRVPNL , Rajasthan from PVVNL, U.P. FY 17 Transmission Line (Funded under Ventured into
Slide 8: Management Team
Management Team Mr. Kamlesh Kumar Mr. Alok Kumar Mr. Shashank Agarwal Mr. Shalabh Agarwal Ms. Tripti Gupta Sharma Chairman & Jt. Managing Director Director Director Chief Finance Officer Managing Director • B.Sc. from Punjab • B.E. (Mech.) from MIT, • B.Tech from MIT, Manipal • MBA in Finance & • Me
Slide 9: Business Overview
Business Overview
Slide 10: Business Verticals
Business Verticals Transmission Solar Structures Telecom Tower Poles EPC Installation and Project Execution
Slide 11: Product Portfolio
Product Portfolio • Customized Galvanized and Non-galvanized steel structures • Process of applying a protective zinc coating to steel or iron, to prevent rusting • Forms a coating of zinc which serves as a sacrificial anode and protects its base metal by corroding before iron Telecommunication Towe
Slide 12: Product Portfolio contd…
Product Portfolio contd… • Transmission Towers and • Solar Module Mounting • Feeder Segregation and Rural • Lighting Poles for Smart Cities - Substation Structures - Structures - Solar module Electrification – Carrying out Lighting Pole is raised source of Transmission line tower or racking (also ca
Slide 13: Product Portfolio contd…
Product Portfolio contd… Smart Poles • Used in places where aesthetic requirements are high • Practical substitute, is combination of Telecom Poles, Wi-Fi, Smart Lighting, Local Area Monitoring and environmental census • Can be design as per requirement arising of local conditions 12
Slide 14: Key Strengths
Key Strengths Partnership with Ramboll • Manufacturing partner for Ramboll's technical expertise in Structural Design of Tubular Telecom Towers • Ramboll market leader in innovative design & Strong Financial Capabilities supply of tower solutions • Upward trend in EBITDA Margins • Strong return rati
Slide 15: State of the art Manufacturing Facilities
State of the art Manufacturing Facilities Location • Unit-I, Khasra No. 265, 281 & 283, Parsaun, Jindal Nagar, Dasna, Hapur-201313, Uttar Pradesh (UP) • Unit-II, Khasra No. 1184, 1185, Khera, Pilkhuwa, Hapur-245304. Uttar Pradesh (UP) • Unit-III, Khasra No. 686/6, Khera, Pilkhuwa , Hapur-245304, Utt
Slide 16: Certifications
Certifications Unit 1 ISO 14001:2015 Unit 2 ISO 14001:2015 Unit 1 ISO 9001:2015 Unit 2 ISO 9001:2015 Environmental Management Environmental Management Quality Management System Quality Management System System System 15
Slide 17: Awards & Recognitions
Awards & Recognitions • Best Tower Partner award from Indus Towers for the period 2014-15 • Excellence thru Collaboration award from Indus in 2014 • Best Partners award from Bharti Infratel for the period 2014-15 • One of the Top PAN India Tower Supplier in VIOM and ATC 16
Slide 18: Bouquet of Satisfied Customers
Bouquet of Satisfied Customers 17
Slide 19: Industry Overview
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Slide 20: Industry Overview
Industry Overview Strong economic • Supported by strong government reforms fundamentals • RBI's inflation focus supported by benign global commodity prices • Forecasted growth of 8 % on an average from fiscal 2016 to 2020 Robust Growth • Powered by greater access to banking, technology adoption, urb
Slide 21: Industry Overview
Industry Overview • Total mobile services market revenue in India is expected to touch US$ 37 billion in 2017 • Compound Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC Strong Prospects for • Indian telecommunication services market will grow by 10.3 %
Slide 22: Industry Opportunities
Industry Opportunities • Strong growth expected telecom infrastructure industry - new technologies, such as 4G & expansion in rural areas to boost this growth • Around 70 per cent of India’s 4,00,000 towers are owned and operated by tower companies • Governments initiatives to electrify rural areas
Slide 23: Q1FY18 & Annual Financial Highlights
Need high resolution company picture Q1FY18 & Annual Financial Highlights Need updated Financials upto FY17
Slide 24: Management Comment
Management Comment Commenting on this development, Mr Shashank Agarwal, Joint Managing Director, Salasar Techno Engineering Ltd. said, “We are glad to report our first quarter results after a phenomenal listing on both the exchanges. We continue to focus on profitable growth amidst challenges & head
Slide 25: Consolidated Financials Highlights – Q1 FY18
Consolidated Financials Highlights – Q1 FY18 +51.01% +60.88% +60 bps Rs 125.06 Cr Rs. 12.21 Cr 9.76% Revenue EBITDA EBITDA Margin +76.52% +71 bps +77.97% Rs. 6.11 Cr 4.89 % Rs 6.14 vs Rs 3.45 Q1 FY17 PAT PAT Margin EPS Strong growth driven by increase in order book execution, higher contribution of
Slide 26: Consolidated Financials Highlights – Q1 FY18
Consolidated Financials Highlights – Q1 FY18 Rs. Cr Q1 FY18 Q1 FY17 Y-o-Y(%) Q4 FY17 Q-o-Q(%) Revenue 125.06 82.82 51.01% 145.90 (14.28%) Raw Materials 84.93 56.42 89.14 Employee Cost 4.96 3.14 4.63 Manf. & Operating Expense 14.17 12.03 26.69 Other Cost 8.80 3.65 11.69 Total Expenditure 112.86 75.23
Slide 27: Consolidated Financial Highlights - Annual
Consolidated Financial Highlights - Annual Production (MT) Revenue (Rs. Crs) 45,395 39,398 416.24 36,332 30,992 330.11 310.00 292.37 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 EBITDA (Rs. Crs) / Margin (%) PAT (Rs. Crs) / Margin (%) 50 12% 25 6% 9.38% 9.32% 40 8.47% 4.51% 7.91% 20 38.79 8% 3.56% 18.78
Slide 28: Consolidated Financial Highlights - Annual
Consolidated Financial Highlights - Annual +34.27% +33.46% +68.00% Rs 416.24 Cr Rs. 38.79 Cr Rs.18.78Cr Revenue EBITDA PAT +90 bps +70.06% 4.51 % Rs 18.86 vs Rs 11.09 FY16 PAT Margin EPS 27
Slide 29: Consolidated Financial Highlights - Annual
Consolidated Financial Highlights - Annual Rs. Cr FY17 FY16 Y-o-Y (%) Total Income from Operations 416.24 310.00 34.27%% Raw Materials 270.93 211.00 Employee Cost 14.25 11.14 Manufacturing & Operating Expense 69.67 42.56 Other Cost 22.60 16.24 Total Expenditure 377.45 280.94 EBITDA 38.79 29.06 33.46
Slide 30: Segmental Performance
Segmental Performance Revenue Break-up – FY16 Revenue Break-up – FY17 Transmission, Other, 5.6% Transmission, Other, 3.2% Telecom, Telecom, 9.5% 73.0% 24.5% 53.3% Solar, 11.9% Solar, 19.0% 29
Slide 31: Revenue Contribution – Govt. Vs Private
Revenue Contribution – Govt. Vs Private Revenue Break-up – FY16 Revenue Break-up – FY17 Government, Government, 6.5% 23.8% Private, 76.2% Private, 93.4% 30
Slide 32: Key Financials Ratios
Key Financials Ratios ROA (%) RoCE (%) 30.55% 7.22% 6.26% 28.74% 27.18% 3.34% 26.75% 3.03% FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 RoE (%) 19.38% 14.62% 11.00% 9.72% FY14 FY15 FY16 FY17 31
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights Rs. Crs Mar-17 Mar-16 Rs. Crs Mar-17 Mar-16 Shareholder’s Funds 95.84 75.12 Non-current assets 67.42 56.01 Share capital 9.96 4.98 Fixed assets 61.58 55.03 Reserves & Surplus 85.88 70.14 Goodwill on consolidation 0.00 0.03 Non-current liabilities 21.51 15.53 Non-current Inve
Slide 34: Way Ahead
Way Ahead
Slide 35: Way Ahead
Way Ahead Utilisation of Incremental Capacity and Expanding Product Portfolio Utilise additional 50,000 MT Galvanizing plant Continue to expand product portfolio by upgrading 01 existing products and introducing new ones to maintain market share and engage new customers Expanding Design & Engine
Slide 36: Thank You
Thank You SALASAR 540642 SALASAR IN SALASAR BO For further information, please contact: Company : Investor Relations Advisors : Salasar Techno Engineering Limited Bridge Investor Relations Pvt. Ltd. CIN No. U23201DL2001PLC174076 CIN No. U74900MH2016PTC273679 Mr. Kamlesh Kumar Sharma Mr. Amit Sharma
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