Slide 1: Exchange filing cover letter for Investor Presentation
23rct May 2022 BSE Limited National Exchange of India Limited Stock Listing Operations Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalai Street, Sandra Kurla Complex, Sandra (E), Mumbai - 400 001 Mumbai - 400 051 Maharashtra, India Maharashtra, India BSE Script Code: 532864 NSE Sc
Slide 2: Investor Presentation May 2022
Investor Presentation May 2022 BSE: 5 3 2 8 6 4 | NSE: NEL CAST | I SI N: I NE1 8 9 I 0 1 0 2 4 www.nelcast.com ©2022 – All Rights Reserved | www.nelcast.com 1
Slide 3: Company Overview
Company Overview Company at a Glance 03 Key Products 04 Manufacturing Process & the Nelcast Advantage 05 Our Well-Equipped Plants 06 Our Journey 07 ©2022 – All Rights Reserved | www.nelcast.com 2
Slide 4: Company at a glance
Company at a glance Where do we stand today? Commercial Vehicles LARGEST TOP 10 PRODUCER PRODUCER Nelcast Limited is a leading producer of Ductile of Grey Iron Iron Castings Castings of Ductile & Grey Iron Castings in India with an installed capacity of 160,000 Metric Tons/Year. Passenger Tractors V
Slide 5: Key Products
Key Products Commercial Vehicles Tractors Off Highway Equipment Railways Passenger Vehicles Forward Differential Carrier Transmission Housing Trumpet Axle Housing Brake Disc Friction Ring Differential Carrier Rear Differential Carrier Rear Axle Housing Monolithic Axle Housing Bogie Suspension Bracke
Slide 6: Manufacturing Process & the Nelcast Advantage
Manufacturing Process & the Nelcast Advantage Silica Sand Tool Design Core Making Resin Machining In-house Engineering team designs Automated Core Sand Mixers In-House facilities and partnerships tooling with CAD/CAM software Automated Core Machines with top Machining Vendors Silica Sand Bentonite C
Slide 7: Our Well-Equipped Plants
Our Well-Equipped Plants Gudur Ponneri Pedapariya I NSTALLED CAPACI TY I NSTALLED CAPACI TY I NSTALLED CAPACI TY 60,000 Metric Tons per Year 40,000 Metric Tons per Year 60,000 Metric Tons per Year M O UL DI NG L I NE S M OUL DI NG L I NE S M O ULDI NG LI NES ▪ Line 1: DISA Flex 70 with Double Squeez
Slide 8: Our Journey
Our Journey Commencement of Commencement of Commencement of Start of Production at the Nelcast Private Limited exports to the US exports to Europe exports to Thailand Pedapariya (AP) plant with Crossed the Rs.200 was established by P. fourth High Pressure Crores mark in exports Radhakrishna Reddy wi
Slide 9: Why Nelcast?
Why Nelcast? Diversified customer base with strong relationships 10 Strategic Location 11 Strong Business Foundation 12 Strong Export Growth Potential 13 Large Market Opportunity 14 Led by an Experienced Board 15 Focused on a Sustainable Future 16 ©2022 – All Rights Reserved | www.nelcast.com 8
Slide 10: Our Strengths
Our Strengths 1 2 3 Diversified Customer base with strong Strategic Strategic Business relationships Location Foundation 4 5 6 Strong Export Large Market Led by an Growth Potential Opportunity Experienced Board ©2022 – All Rights Reserved | www.nelcast.com 9
Slide 11: Diversified Customer Base with Strong Relationships
1 Diversified Customer Base with Strong Relationships ▪ Customers in Commercial Vehicle, Top OEM Customers Awards Tractor, Off-Highway Equipment, Railways and Passenger Vehicles ▪ Has a distinguished customer base of more than 40 customers that includes OEMs and Tier 1 companies ▪ Serves as a strate
Slide 12: Strategic Location
2 Strategic Location ▪ Plants are in close proximity (37-140 KM) to Chennai, a major manufacturing hub for automotive companies forms both a key customer base for Nelcast and a reliable source of steel scrap, a crucial raw material PL ANT I ▪ All 3 plants are within 15-110KM of Gudur India’s largest
Slide 13: Strong Business Foundation
3 Strong Business Foundation Cash & Cash equivalents (in Rs. Cr.) 65.0 61.4 ▪ Received an investment grade rating for short 58.7 term (A1) and long term (A) fund from ICRA on the back of adequate liquidity, strong relationship 48.0 with major OEMs and a diversified clientele ▪ Installed Capacity has
Slide 14: Strong Export Growth Potential
4 Strong Export Growth Potential ▪ India is being viewed as a key cog in the global automotive supply chain and sourcing machined castings from India is now becoming an attractive option for global customers. ▪ Nelcast is among only a few companies in the industry capable of meeting the requirements
Slide 15: Large Market Opportunity
5 Large Market Opportunity Indian Tractor Industry Indian M&HCV Industry Industry volumes touched all-time high in FY2021; Domestic M&HCV sales to grow at a CAGR of 22% expected to remain healthy between 2020-2025; expected to touch over 600,000 units 7 All Time High 27% 1,000,000 30% 6.1 1-4% 6 20%
Slide 16: Led by an Experienced Board
6 Led by an Experienced Board D. Sesha Reddy P. Deepak P. Divya R. Sridharan A. Balasubramanian Maheswari Mohan Chairman Managing Director Director Director Director Director ▪ Chairman of Dodla ▪ MBA from Kellogg ▪ MS in Network ▪ Graduate from Madras ▪ Bachelors degree in ▪ Post Graduate in M.A Di
Slide 17: Focussed on a Sustainable Future
Focussed on a Sustainable Future ▪ Renewable energy: About 55% of the power requirement ▪ Blood donation camps is met through renewable sources ▪ Providing medical support ▪ Plantation of trees Protecting the Giving back to to hospitals Environment the Community ▪ Core sand reclamation ▪ Supporting
Slide 18: Financials
Financials Profit & Loss Highlights 18 Balance Sheet Highlights 19 ©2022 – All Rights Reserved | www.nelcast.com 17
Slide 19: Profit & Loss Highlights
Profit & Loss Highlights Consolidated (in INR Cr.) FY19 FY20 FY21 FY22 Revenue from Operations 856.27 566.76 614.97 927.34 Total Income 862.21 580.35 619.85 936.74 Total Expenses 804.49 549.55 607.56 917.69 EBITDA 81.82 61.86 51.27 67.49 D&A 17.47 18.53 21.74 22.62 EBIT 64.35 43.33 29.53 44.87 Finan
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Consolidated (in INR Cr.) FY19 FY20 FY21 FY22 Total non-current assets 430.65 474.03 474.28 483.96 Inventories 141.59 128.14 118.41 158.73 Trade receivables 121.17 112.62 164.19 240.35 Cash & cash equivalents 58.65 48.0 65.04 61.39 Total current assets 351.14 304.52 365.45 4
Slide 21: Thank You
Thank You For further details please contact: S.K. Sivakumar Sonia Keswani/Diwakar Pingle Corporate Office 159, TTK Road, Alwarpet, Chennai - 600 018 Nelcast Limited Ernst & Young LLP www.nelcast.com 📞: +91 44 2498 4111 📞: +91 8017393854 📧: nelcast@nelcast.com 📧: Sonia.keswani@in.ey.com 📧…