Sterling Tools Limited has informed the Exchange about Investor Presentation
By NEAPS
National Stock Exchange of India Limited “Exchange Plaza”, Bandra–Kurla Complex, Bandra (E) Mumbai-400051
By Listing Centre
General Manager BSE Limited 1st Floor, P. J. Towers Dalal Street Mumbai – 400001
Security Code No.: STERTOOLS
Security Code No.: 530759
Date: 10th August, 2022
Ref.: STL/2022-2023
Sub: Investor Presentation for Quarter (Q1) ending on 30th June, 2022
Dear Sir/ Madam,
This is in continuation of our letter dated 28th July, 2022 with respect to intimation of Schedule of Analyst / Institutional Investor meeting – Conference Call on 10th August, 2022 at 4.00 p.m.
Further in pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investor Presentation for the quarter (Q1 ) ending on 30th June, 2022 of the Company .
This is for your information and records.
Sincerely For Sterling Tools Limited
Vaishali Singh Company Secretary
Encl.: As above.
z
STERLING TOOLS LTD
INVESTOR PRESENTATION Q1 FY23
AUG 10th, 2022
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About Sterling Tools Ltd
History & Milestones
Board of Directors
Mission & Vision
Fasteners Business
Electric Vehicle Business
Financial Summary
S T N E T N O C F O E L B A T
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About Sterling Tools Ltd (STL)
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STL is the 2nd largest automotive fastener manufacturer in India since last 4 decades
Well diversified presence across all automotive segments and customers
Strategically located 4 Manufacturing facilities- 3 in North India (Faridabad) and 1 in South India (Bangalore)
Rated by ICRA A1+/AA- (Highest short term rating)
One of the largest MCU supplier for electric vehicles in India
Entered the EV space in 2020– Now one of the largest e-2W MCU suppliers in India
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Investor Presentation
Strictly Confidential
History & Milestones
Incorporation as a Pvt Ltd Company
Swaraj Tractors
Eicher Group
Punjab Tractors
Escorts Hero
Third Plant- Prithla (Palwal)
Fourth Plant- Bangalore Plant
SGEM secured an order worth INR 600 mn for MCUs from a leading Indian e2W OEM
1979
1981
1982-1999 Customer Acquisition
1999
2004
2019
2020
2021
2022
First Plant- DLF (Faridabad)
Second Plant- Wire drawing unit at Ballabhgarh (Faridabad)
Ashok Leyland
Isuzu motors
Maruti
M&M
HMSI
Tata Motors
Diversification to Electric Vehicle Components
Strong orderbook position for EVs and working actively with 11 customers
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Investor Presentation
Strictly Confidential
Board Of Directors
Mr. Manohar Lal Aggarwal Chairman Emeritus
Mr. Anil Aggarwal Chairman-cum Managing Director
Mr. Atul Aggarwal Whole Time Director
34+ years of experience, Expertise in Marketing, Banking, Finance, Corporate Affairs, Information Technologies and Export Resources Management.
Mr. Shailendra Swarup Director
50+ years of experience, Expertise in Corporate Law including International Law CEO- Swarup & company.
38+ years of experience Expertise in Manufacturing, Project management, Administration, Product and Project development and Quality control for auto components
Dr. Triloki Nath Kapoor Director
Mr. Chhotu Ram Sharma Director
Ms. Malini Sud Director
50+ years of experience, Expertise in Administration, Management, Regulatory Compliances and Governance related issues. Ex- Vice Chancellor and Dean of Punjab University.
Mr. Rakesh Batra Director
30+ years of experience, Expertise in Consulting and Strong knowledge in Regulatory Compliances Ex- EY Partner and National Leader Auto Sector.
40+ years of experience, Expertise in Banking & Finance Ex- MD & CEO of Bank of Punjab Ltd.
35+ years of experience, Expertise in Corporate Laws Founder- Capex Legal.
Mr. Jaideep Wadhwa Director
Mr. Akhill Aggarwal Director
30+ years of experience, Expertise in International Business Management, Auto & Industrial Component Industry Knowledge. Ex- MD in the Ingersoll Rand.
10+ years of experience, Expertise in Automobile business and other allied services related to the sector.
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Investor Presentation
Strictly Confidential
Our Mission and Vision
Vision
We provide reliable and superior quality auto components to our customers by harnessing best-in-class manufacturing practices, clean and green technology, entrepreneurial spirit, and passion of our people
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Be the most trusted brand for our customers
• Maximize value for our shareholders • Be respected in our community • Bring pride to our people
Mission
360 Degree
Achieving
Engineering
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Investor Presentation
Strictly Confidential
Industry Highlights
Two Wheelers: Favourable monsoon outlook led rural demand recovery, cut in fuel prices and easing commodity prices may support 2W demand; high inflation remains a concern
Passenger Vehicles: The underlying demand for the industry continues to be robust; (Q1FY23 retail sales averaging at ~92% of pre-Covid levels) inventory levels across dealerships have started improving, even as they remain lower than the normal levels at around 15-20 days.
Supply shortage is expected to fully resolve by 2023; the impact of the ongoing Russia Ukraine crisis on chip supplies remains monitorable
Commercial Vehicles: Domestic CV industry volumes are on a recovery track as a result of gradual improvement in the macroeconomic environment and healthy demand from the end user industries.
Tractors: Industry volumes have remained healthy over the past three months, after a period of moderation in volumes, aided by healthy rabi cash flows forecast of normal monsoons and continuation of healthy procurement by the Government to support rural cash flows and industry demand
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Investor Presentation
Source: ICRA Research
Strictly Confidential
Key Operational Highlights For The Quarter
Fasteners Business: •
Increase in SOB with existing customers based on the quality customer relations and services
Electric Vehicle Business: • Order from India’s leading CV OEM for MCUs for LCV • Order for 4in1 (Auxiliary Drives, DC/DC, PDU) from a HCV OEM • Continued inroads into the electric ow speed scooter, high speed scooter,
motorcycle and L5 segments
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Investor Presentation
Strictly Confidential
Key Financial Highlights For The Quarter
Revenues increased by 53% Y-o-Y to
EBITDA increased by 50% Y-o-Y and 16% Q-o-Q to
Rs 138 Cr
Rs 22 Cr
EBITDA Margin increased by 230 bps Q-o-Q to
PAT increased by 97% Y-o-Y and 6% Q-o-Q to
15.6%
Rs 9 Cr
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Investor Presentation
Strictly Confidential
Fasteners Business
Product Range- Fasteners
Bolts and Screws
Size : M5 to M24 and equivalent inch series Lengths: 8 mm to 250 mm
Nuts
M6 to M 22 and equivalent inch series
Engine / Special Fasteners
Standard / Chassis Fasteners
Chassis Fasteners
Engine Fasteners
Special Fasteners
Standards
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Investor Presentation
Indian Standards
German Standards
Japanese Standards
American Standards
British Standards Strictly Confidential
Pan India Presence- Fasteners
Gurugram (3 locations)
Prithla Plant, Distt.-Palwal
Mehsana
Ahmedabad
Nasik
Bhiwandi
Pune
Manufacturing Units- 4
Warehouse- 16 (At 14 locations)
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Investor Presentation
Haridwar
Udham Singh Nagar
Wire Drawing Unit- Faridabad
Faridabad (3 locations)
DLF Plant, Faridabad
Pithampur
Nagpur
Zahirabad
Attibele
Puzhal
Kolar Plant , Bangalore
Strictly Confidential
Manufacturing Facilities
Prithla Plant, Palwal
DLF Plant, Faridabad
Wire Drawing Plant, Faridabad
Prithla Plant, Palwal
Bangalore Plant
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Investor Presentation
Strictly Confidential
Key Clientele- Fasteners
Passenger Vehicles
Two Wheelers
Farm Equipment
Commercial Vehicles
Exports
Construction
STRONGHOLD
Aftermarket
TIER-1
Strong Pan-India presence with 100 Distributors
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Investor Presentation
Strictly Confidential
Well Diversified Revenue Mix
Channel-wise Mix
Segment-wise Mix
87%
10%
3%
23%
18%
19%
2%
3%
8%
25%
OEM
Exports
Replacement
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Investor Presentation
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Investor Presentation
2W
PV
CV
Farm equipment & Off-road
Retail
Exports
Others
Strictly Confidential
Electric Vehicle Business
Sterling Gtake E-mobility Ltd. (SGEM)
Forging The Future
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Partnership between Sterling Tools and Jiangsu Gtake of Shenzhen (China).
Gtake is a technology leader in motor control units for electric and hybrid vehicles and
has a dominant market share in the electric CV space in China.
The agreement calls for the companies to manufacture motor control units domestically
to cater to the Indian automotive market as well as to develop local design (hardware &
software customization) engineering, application support and after-sales service
capabilities.
Installed capacity of 300,000 MCUs facility expansion being planned to further enhance
capacity.
First mover advantage in application support, market development as well as product
Investor Presentation
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localization.
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Investor Presentation
Investor Presentation
Strictly Confidential
About Motor Control Unit (MCU)
A Motor Control Unit (MCU) is an electronic module that interfaces with the Motor as well as the Battery Pack to control the electric vehicle’s speed, acceleration and range based on the throttle input.
MCUs are one of the most important components of an EV and require a combination of power electronics, motor control algorithm and firmware expertise.
In the absence of a VCU, the MCU also controls some basic vehicle level functionality.
EV powertrain usually describes a sub-system consisting of the motor, controller and gearbox/differential. Some EV powertrain suppliers may also include the battery pack, the AC/DC and DC/DC convertors, the wiring harnesses and possibly the instrument cluster so as to provide a comprehensive solution for the entire electrical sub-system.
MCUs make upto 10% of electric 2W cost.
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Investor Presentation
Strictly Confidential
SGEM Product Portfolio
Product: D00 Application: Low Speed Scooter
Product: D06 Application: High Speed Scooter
Product: D03 Application: Performance Scooters & 3W
Product: D04 Application: Light Commercial Vehicles
Product: G05 Application: Passenger Vehicles
Product: G02 Application: Heavy Commercial Vehicles
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Investor Presentation
Strictly Confidential
Product portfolio covers the entire spectrum of applications from 1 KW to 200 KW and 48V to 700V Investor Presentation
SGEM – Forging The Future
SGEM has production orders from 11 EV OEMs.
SGEM is in advanced stages of discussions with more than 30 automobile (EV) OEMs for their MCU requirements for different vehicle segments, including two-wheelers, three-wheelers, passenger vehicles and commercial vehicles.
3 product families are at advanced stages of localization and already compliant or in the process of being compliant with FAMEII requirements.
3 additional product families likely to be localized in FY23 basis finalization of customer programs.
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In-house SMT lines for board population planned.
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Local product development initiated.
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Investor Presentation
Strictly Confidential
Sterling Group EV Vision
Battery / BMS
AC/DC chargers / OBC
Motor
Motor Controller
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Investor Presentation
Strictly Confidential
Financial Summary
Standalone Quarterly Financials
REVENUE
1,286
1,161
904
1,395
1,383
15.9%
17.8%
15.1%
13.3%
15.6%
EBITDA & EBITDA Margin (%)
Rs. In Mn
Margin
228
176
185
216
144
250
200
150
100
50
0
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
PBT & PBT MARGIN%
PAT & PAT MARGIN
6.4%
11.4%
8.0%
7.2%
8.7%
5.0%
8.6%
5.7%
5.5%
6.4%
Margin
146
93
100
120
58
Margin
111
66
76
89
120
100
80
60
40
20
0
45
1,600
1,400
1,200
1,000
800
600
400
200
0
160
140
120
100
80
60
40
20
0
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
Q1FY22
Q2FY22
Q3FY22
Q4FY22
Q1FY23
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Investor Presentation
Strictly Confidential
Safe Harbor Statement
This presentation and the accompanying slides (the "Presentation") have been prepared by Sterling Tools Ltd (the "Company") solely for informational purposes and do not constitute an offer, recommendation, or invitation to purchase or subscribe for any securities, and shall not serve as the basis for any contract or binding commitment.
No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of Presentation.
This Presentation may not this be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, Presentation is expressly excluded.
The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward – looking information contained in this presentation.
Any forward – looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Investor Presentation
Strictly Confidential
Sterling Tools Limited
Mr. Pankaj Gupta (CFO) / Mrs. Vaishali Singh (CS)
Contact No : +91 99717 88441 / +91 99115 10001
E-mail : Pankaj.gupta@stlfasteners.com / vaishalis@stlfasteners.com
Add : Unit No: 515, DLF Tower–A, Jasola District Center, New Delhi- 110025
S-ancial Technologies Pvt Ltd
Mr. Vijay Gyanchandani
Contact No : +91 96194 38448
E-mail : vijay@s-ancial.com
Add : #215, Shiv Shakti Industrial Estate, 2Nd Floor, J R Boricha Marg, Lower Parel, Mumbai - 400011