Maharashtra Seamless Limited · NSE:MAHSEAMLES
Maharashtra Seamless — Investor Presentation (November 2018)
19 slides from Maharashtra Seamless's investor presentation, November 2018
Slide 1: Investor Presentation
India’s Largest Seamless Pipes Manufacturer Investor Presentation November 2018 Stock Code: BSE: 500265 NSE: MAHSEAMLES
Slide 2: Forward Looking & Disclaimer Statement
Forward Looking & Disclaimer Statement This document contains “forward-looking statements” about our business, financial performance, skills and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, prediction or similar expression for the future are forward-looking st
Slide 3: Maharashtra Seamless: Overview
Maharashtra Seamless: Overview #1 producer of seamless pipes in India, Market cap: Rs. 3,300 crore capacity 550 ktpa “MAHA” Major producer of ERW pipes in India, A globally recognised brand Regular dividends since IPO; capacity 200 ktpa 25% payout ratio for FY2018 H1 FY2019 Revenues: Rs. 1,310 crore
Slide 4: Key Milestones
Key Milestones JV with Hydril to manufacture 20 MW Solar Power 7” Seamless pipe plant at project in Jodhpur, Nagothane, Maharasthra premium connections used in O&G industry Rajasthan and 1MW Roof 150 ktpa Top Solar plant at Nagothane factory 7MW Wind Power plant at Satara, Maharashtra 1989-1992 2000
Slide 5: Manufacturing Facilities
Manufacturing Facilities Jodhpur Facility Products Capacity Seamless 350 kMTPA Jaisalmer Rajasthan Nagothane, Raigad ERW 200 kMTPA Bhagad, Mangaon Seamless 200 kMTPA Durjani, Jodhpur Solar Power 20 MW Nagothane Maharashtra Pokaran, Jaisalmer Solar Power 5 MW Beed Naigaon, Beed and Mangaon Solar Powe
Slide 6: Seamless Pipes Industry in India
Seamless Pipes Industry in India Indian Market for Seamless Pipes Indian Market Breakdown by Segments 800 kt 17% Met by 300 600 kt Imports 37% 100 Exported 30% Met by Domestic 16% 500 500 Production Domestic Sales Oil & Gas Power Industries Infrastructure/Others Domestic Demand India Seamless Pipes
Slide 7: Industry and Market Trends
Industry and Market Trends Government Regulations Higher Demand • Anti-dumping duty in 2016 and National steel policy in • Bounce back in energy prices generating strong demand 2017 increased domestic demand for pipes from O&G industry globally • Anti-dumping duties imposed by US and Europe on • Ind
Slide 8: Near Term Strategic Priorities
Near Term Strategic Priorities Strong Order Book of Rs. 950 crore • Continued production ramp-up to cater to strong Rs. Crore demand for Seamless pipes 1,021 948 95 o 200 kMTPA Mangaon plant was re-started in Q3 113 FY2018. Expected to reach full capacity in 2019 567 o 350 kMTPA Nagothane plant expe
Slide 9: Production and Utilization
Production and Utilization Seamless Pipes Production (kt) ERW Pipes Production (kt) 72 294 62 57 56 210 172 150 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 9
Slide 10: Consolidated Key Metrics
Consolidated Key Metrics Net Debt/ Equity (x) ROCE (%) 0.14x 8.83% 7.53% 0.09x 0.06x 2.03% FY16 FY17 FY18 FY16 FY17 FY18 Net Debt/ EBITDA (x) Asset Turnover (x) 0.55x 4.05x 0.42x 0.30x 1.36x 1.08x FY16 FY17 FY18 FY16 FY17 FY18 10
Slide 11: Standalone Key Metrics
Standalone Key Metrics Net Debt/ Equity (x) ROCE (%) 10.05% 8.36% 0.004x 0.001x 0.002x 2.26% FY16 FY17 FY18 FY16 FY17 FY18 Net Debt/ EBITDA (x) Asset Turnover (x) 0.64x 0.10x 0.49x 0.36x 0.05x 0.02x FY16 FY17 FY18 FY16 FY17 FY18 11
Slide 12: Operational and Financial Performance
Operational and Financial Performance Particulars Q2 FY19 Q2 FY18 Q1 FY19 Seamless ERW Seamless ERW Seamless ERW Production (kMT) 64 18 72 14 75 16 • Dispatches of pipes higher in Q2 Sales Volume (kMT) 76 19 69 15 65 16 • Income from operations up 45% yoy EBITDA (Rs. Cr) 104 11 52 2 121 12 mainly du
Slide 13: Operational and Financial Performance
Operational and Financial Performance Standalone Particulars (Rs. Cr) H1 FY19 H1 FY18 YoY Growth Income from Operations 1,310 965 35.7% EBITDA 272 121 124.8% EBITDA Margin 20.7% 12.5% PAT 189 71 165.1% PAT Margin 14.4% 7.4% EPS (Rs.) 28.19 10.63 165.2% 13
Slide 14: Maharashtra Seamless: Investment Case
Maharashtra Seamless: Investment Case 1 5 India’s largest seamless pipes producer, and 50% of FY 2018 Revenues were from Exports and one of the largest welded pipes producers Deemed Exports 2 6 Strong operational, financial and dividend track Lowest cost producer of seamless pipes in India record of
Slide 15: Appendix
Appendix
Slide 16: Select Customers
Select Customers Oil and Gas Infrastructure 16
Slide 17: Products and Industries Served
Products and Industries Served Industries Seamless ERW Others (Coated and Premium Connection Served Pipes Pipes Pipes and Pipe Fittings) Agriculture P P Automotive P P Bearing P Chemical P Engineering P P P Fertilizers P Housing P P Irrigation P P Mechanical P P P Oil and Gas P P P Petrochemical P P
Slide 18: Shareholding Structure
Shareholding Structure 28.60% Select Major Investors % O/S Mutual Funds L&T Mutual Fund 4.79% IDFC Sterling Value Fund 1.39% 61.78% BNP Paribas Mutual Fund 0.29% 7.25% 2.37% DSP Black Rock Small Cap Fund 0.78% Total 7.25% Promoters FII Mutual Funds Others Note: As of September 30, 2018 18
Slide 19: www.jindal.com
ASHOK SONI SANJIV GUPTA CFO - D.P. Jindal Group DGM - Finance Tel. No.: 91-124-4624320 Tel. No.: 91-124-4624321 E-Mail : ashok@mahaseam.com E-Mail : sanjiv@mahaseam.com ASHWIN BAJAJ Churchgate Partners AJAY TAMBHALE T: +91-22-6169-5988 E: msl@churchgatepartners.com W: www.churchgatepartners.com www.
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