Vardhman Special Steels Limited · NSE:VSSL
Vardhman Special Steels — H1 FY19 Earnings Presentation
34 slides from Vardhman Special Steels's earnings presentation, Nov 5, 2018
Slide 1: Exchange filing cover letter for investor presentation
Q I Vardhmin VARDHMAN SPECIAL STEELS LIMITED Vardhman I Delivering Excellence. Since I965. CHANDIGARH ROAD LUDHIANA-I4I010. PUNJAB T: +9I-l6I-2228943-48 F: +9l-I61-2601048,22226I6. 260l040 E: secretarial.|ud@vardhman.com I1, fa, SS,L;S,C,:I\LQV:2L18-19 D LIED: 0,5:Noye2918 The Deputy General Manager
Slide 2: Q2 & H1 FY19 Result Update Presentation
Slide 3: Disclaimer
‘ Disclaimer “Q7 AFDHMAN SPECIAL STEELS LTD. " This presentation has been prepared by Vardhman Special Steels 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 ba
Slide 4: Table of Contents
Q VARDHMAN SPECIAL STEELS LTD. Table of Contents 17 A coMMWEm vo 0mm . O Quarterly Financial Highlights I Half Yearly Financial Highlights . Company Overview . Business Overview . Way Ahead
Slide 5: Quarterly Financial Highlights
Slide 6: Management's Message
’/ Q VAHDHMAN SPECIAL STEELS LTD. V Management’s Message Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said — ”The first half of this year has been driven by higher volumes and increase in realizations. The rising cost of key raw materials continued to be a challenge
Slide 7: Financial Highlights Q2 FY19 (YoY)
Q VARDHMAN SPECIAL STEELS LTD. ‘ Financial Highlights V -. — Q2 FY19 (YoY) 11% 43% 6% Volume (MT) Revenue EBTIDA* 42,466 MT Rs. 295.49 or Rs. 15.32 or 21% 9% PAT Basic EPS Rs. 7.07 or Rs. 1.98 vs. Rs. 1.82 Q2 FY18 *EBITDA is excluding Otherlncome /
Slide 8: Financial Highlights Q2 FY19
Q VARDHMAN SPECIAL 57EELS LTD. Financial Highlights — Q2 FY19 Y Y Y Sales Volumes (MT) Y Net Revenue (Rs. Crore) i Y 42,466 i 295.49 41, 587 : 269.50 218.42 231.36 i 207.06 Y I I 38,275 455 l 38,142 Y 3'8 Y I Y I ‘ Y Y : Y Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 : Q2 FY19 02 FY18 QB FY18 Q4 FY18 ‘11 FY19 Qz
Slide 9: Profitability Highlights Q2 FY19
G) VARDHMAN SPECIAL STEELS LTD. ‘ v A :uumm-v in my. ‘ Profitability Highlights — Q2 FY19 0 Income from Operations 295-49 207.06 269.50 Excisg Duty 0.00 0.00 0.00 Net Sales 295.49 207.06 42.71% 269.50 Cost of Materials Consumed 183.15 112.34 169.83 Purchases of Stocks 14.65 0.00 0.00 Changes In Inve
Slide 10: Half Yearly Financial Highlights
Slide 11: Financial Highlights H1 FY19
Q VARDHMAN SPECIAL 57EELS LTD. Financial Highlights — H1 FY19 V 11% 38% 28% Volume (MT) Revenue EBTIDA** 84,053 MT Rs. 564.99 or Rs. 33.16 or 95% 59% PAT EPS Rs. 16.15 or Rs. 4.52 vs. Rs. 2.85 H1 FY18 *Re-ihstated EPS w.r.t. Right Issue; ”EBITDA is excluding Otherlhcome During FY18 Company raised R5
Slide 12: Financial Highlights H1 FY19
G) VARDHMAN SPECIAL STEELS LTD. ‘ ‘ Financial Highlights — H1 FY19 v A CLULHIUE'V in 2mm I Income from Operations 564.99 428.11 Excise Duty 0.00 18.93 Net Sales 564.99 409.18 38.08% Cost of Materials Consumed 352.98 217.66 Purchases of Stocks 14.65 0.00 -29.32 10.47 Changes In Inventory Raw Material
Slide 13: Balance Sheet as on 30th Sept'18
Q I VARDHMAN SPECIAL SYEELS LTD. 5 Balance Sheet as on 30th Sept’18 V » :— 0 355.35 339.32 Non Current Assets 316.26 278.83 Equity* 35.70 Property Plant & Equipment 281.15 24917 Equity Share Capital 3570 Capital work in progress 15.37 6.99 Other Equity 31955 303.62 Other intang‘b'e 6559‘s 0'36 0-29
Slide 14: Company Overview
' . :‘E Company Overview W h u A , r
Slide 15: Company Overview
6.3 VARDHMAN SPECIAL STEELS LTD. V Company Overview Amongst India’s Leading Steel Bar Reputed and long term customers Producer forAutomotive Application - Toyota, Hero Moto Corp, I Incorporated in May 2010 Caterpillar, Hino Motors, Maruti, I Headquartered in Ludhiana, Bajaj and Hyundai, among others
Slide 16: Journey So Far
( a.» VARDHMAN SPECIAL STEELS LTD V Journey So Far fit} I 1973 Commissioning of Oswal - I July 2015 — Installed Fume Faridabad, with initial pollution & Steels. at to . 2010 Incorporated as _ Extraction slystemhfor ust contro wort Rs. 12 produce Crore capacity 50,000 metric tonnes of special & a||oy
Slide 17: Strong & Experienced Board of Directors
Q VARDHMAN SPECIAL STEELS LTD. 36': Strong & Experienced Board of Directors Mr. Rajeev Gupta — Chairman & Independent Mr. Sachit Jain —Vice Chairman & MD B. Tech iElectricali from in, New Delhi, MRAiGold medallisti Director from RM, Ahmedabad and Owner/President Management - B. Tech from BHU/IIT, Va
Slide 18: Strong & Experienced Board of Directors cont.
’/ Q VARDHMAN SPECIAL STEELS LTD. V ii.ii n, Strong & Experienced Board of Directors cont Mr. Sanjeev Pahwa — Director Mr. Sanjoy Bhattacharyya — Director B. Tech from IIT, Delhi - . Renowned industrialist . BachelorofSciencelStatisticsHonoursland MBA from IIM, Ahmdabad Rich Experience ofmore than 2
Slide 19: Business Overview
Slide 20: Wide Range of Sizes for Rolled Products
Q VARDHMAN SPECIAL STEELS LTD, Wide Range of Sizes for Rolled Products v A :C‘.ll.‘lll',‘§ll' Tfl'lw-“il’r Hot Rolled Bars Bright Bars . Diameter Size : Increased from 25-70 Size: 14.66 to 78 mm (Peeled), 21.35 to MM in 2012 to 16-120 MM in 2017-18 50 mm (Drawn) fl
Slide 21: With State-of-the-art manufacturing facilities
Q I VARDHMAN SPECIAL STEELS LTD. With State-of-the-art manufacturing facilities Steel Melting Shop Rolling Mill Bright Bars Annual Capacity: 2,00,000 MT I Annual Capacity: 1,80,000 MT I Annual Capacity : 36,000 MT 30 MT Ultra High Power (UHP) Eccentric I High Rolling Mill installed in 2013 I Bar Pee
Slide 22: Process Flow
Process Flow 97 VARDHMAN SPECIAL STEELS LTD. A conmEm v0 ouww swap, om, ma IRON. A shredded smp v » Exports Domestic Shipment P Final Inspection and Dispatch &1‘ O /— Bright Bar Shop I 'vmum beam-"8 U'“! uadle Iehmng um mou sucmmuumcs Spherodize Annealing (alumnus (mm; mm As Rolled Bar "Hot Rolled"
Slide 23: Steel Melting Shop
Q I VARDHMAN SPECIAL STEELS LTD. Steel Melting Shop W Electric Arc Furnace Ladle Refining Furnace
Slide 24: Rolling Mill & Bright Bars
Q VARDHMAN SPECIAL STEELS LTD. A It‘llflllllfll' TD “1lequ Rolling Mill & Bright Bars A Rolling Mill Bright Bar Shop Spherodizing & Annealing Machines Rolling Mill Bright Bar Shop
Slide 25: Automatic Line of Bar Inspection - NDT Line
Automatic Line of Bar Inspection - NDT Line MFLT Acceptance Criteria: Chamfering 0.2x10mm Bar ends free from Straightening Burr Straightness : 2mm / meter UST Acceptance Criteria: SDH - Shot Blasting 0.8x10mm, FBH - 0.8 & 1.2mm 24
Slide 26: With best in class R&D Facility
Q VARDHMAN SPECIAL STEELS LTD. ‘ With best in class R&D Facility 6 A cunniuw V0 cumin ‘ Spectrometer : ARL 4460:1454 for Chemical Analysis. It can check 32 different elements CS - 230 : Analyzer for Carbon & Sulfur content in steel LECO gas analyzer 7TC 600 HZ, N1, 01 Analyzer Mobile Spectro and XRF
Slide 27: Strategically located Warehousing Facilities
Q VARDHMAN SPECIAL STEELS LTD. ‘ A Strategically located Warehousing Facilities I One Owned Warehouse I Bilaspur Haryana I Five Leased Warehouses in India I Bangalore I Chennai I Rudrapur I Pune I Aurangabad
Slide 28: Key Strengths
I Q VARDHMAN SPECIAL 51'EELS LTD. 6 n ummwvcouxm Key Strengths State ofArt Manufacturing Facilities and advanced R&D Capabilities I Well equipped with latest upgraded Technology Machines C» Diversified Product offerings I Manufactures diverse range of products with wide applications across sectors I
Slide 29: Strong Global Customer Base
Strong Global Customer Base @7—' VMDHMANSPECIAL STEELS LTD.
Slide 30: Reputed & long term customers
Q VAR I DHM §|iEC|AL STEELS LTD. v :JWM‘Hin .: ' Reputed & long term customers 0 Cars Two wheelers HCL/LCV W (4% us‘mmfl Sun] ‘ YAMAHEA .‘ 8 i v“ @ TOYOT HVIJHIJFII ““9“” ASHDK L‘EYLAND Hero BAJAJ TA'I'A ........... ‘. ‘o carnkon “ BKN Automotiv: nra7iam JOHN DEERE TAFE é @ mah ind ra
Slide 31: Quality Certifications
// Q VARDHMAN SPECIAL 51'EELS LTD. Quality Certifications MANAGEMENT svsTEM MANAGEMENT svsTEM CERTIFICATE CERTIFICATE INDIA'S BEST COMPANIES TO WORK FOR 2012 Vardhman Special SteeIs Limited Ranked among Top 50 Companies having uplo ionosmpioym ISO 9001 : 2008 ISO 14001 : 2004 FatimpinngImsmmangywnea
Slide 32: Way Ahead
Slide 33: Way Ahead
Q VARDHMAN SPECIAL STEELS LTD. ‘ V I Way Ahead Capacity Expansion I Increase melting capacity to 2,40,000 MT and Rolling Capacity to 2,20,000 MT over next 3 years - expected capex of approx. Rs. 200 Cr. I Target of achieving full capacity utilization soon after completing capex Joint Venture & Acqui
Slide 34: Thank You
Q VARDHMAN SPECIAL STEELS LTD. 6 ‘ A cmmnmw m cumin Thank You SSE 534392 ENSE v-nfl-rllm‘rmu- .u VSSL B|oornborg VSSLIN REUTERs-B VARM.BO For further information, please contact: Company : Investor Relations Advisors : Vardhman Special Steels Limited Bridge Investor Relations Pvt. Ltd. CIN:L27100PB2
Vardhman Special Steels — H1 FY19 Earnings Presentation on 6ix