Steelcast Limited has informed the Exchange about Investor Presentation
AC/2079
20.10.2022
The Secretary, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, MUMBAI - 400 001
National Stock Exchange of India Limited, Exchange Plaza, 5th Floor, Plot No.C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
Scrip Code: 513517
Scrip Symbol: STEELCAS
Dear Sir/Madam,
Subject:
Submission of Investor Presentation under Regulation 30 of the SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015.
In accordance with Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find the Investor Presentation for the Quarter and half year ended 30th September, 2022 (Q222-23) as an attachment. This is for the general information of the investors and public at large. This Investor Presentation may also be accessed on the website of the company at www.steelcast.net
We request you to take the same on record and disseminate on your respective websites.
Thanking you,
For STEELCAST LIMITED,
(Umesh V Bhatt) COMPANY SECRETARY
L:\AC\2079\COMPLIANCES\SECRETARIAL\NSE and BSE Announcements\Presentation\2022.10.21\Covering Letter.docx
Bhatt Umeshkumar VasantrayDigitally signed by Bhatt Umeshkumar Vasantray Date: 2022.10.20 19:52:48 +05'30' Investor Presentation – Q2FY23
Safe Harbor
This presentation has been prepared by and is the sole responsibility of Steelcast Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the
trailing restrictions.
This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or subscribe
for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof.
In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty,
express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this
presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or
to otherwise notify the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.
Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward-looking
statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”,
“pursue”, “shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ
materially include, among others: (a) our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the
Company, (d) technological changes, (e) investment income, (f) cash flow projections, and (g) other risks.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company
may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.
2
Q2FY23 Financial Performance
3
Q2FY23 Performance Highlights
Q2FY23 (Y-o-Y)
Highlights
Revenue 121.2 Crs
EBITDA 28.3 Crs
PAT 17.6 Crs
57%
Strong orderbook from customers across all industry has driven good volumes and better operational efficiencies.,
58%
Revenue from Operations for Q2FY23 is Rs.121.2 Crores, an increase of ~57 % compared to Q2FY22 and an increase of ~5 % compared to Q1FY23. With this marginal increase in revenue our PAT Margins have increased to 1.5%
Input prices were in line with the previous quarters during Q2FY23, but Steelcast Ltd has witnessed improved Gross margins of ~36%.
79%
The approval advanced stage and supply expected to commence from Q3FY23
from Association of American Railroad(AAR) is at
4
Q2FY23 Consolidated Key Highlights
Revenue (Rs. in Crs)
EBIDTA (Rs. in Crs)
PAT (Rs. in Crs)
57%
+5%
58%
+18%
79%
+24%
121.2
115.6
121.2
28.3
28.3
17.6
17.6
24.1
14.1
77.4
17.9
9.8
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
5
Geographical Revenue growth (Y-o-Y)
Exports
Domestic
+100 bps
No change
62.0%
63.0%
63.0%
63.0%
-100 bps
No change
38.0%
37.0%
37.0%
37.0%
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Y-o-Y
Q-o-Q
Q2FY22
Q2FY23
Q1FY23
Q2FY23
Y-o-Y
Q-o-Q
6
Revenue Breakup (Q2FY23)
Segment-wise Revenue (%)
Geography-wise Revenue (%)
1.0%
Total revenue Rs. 121.2 Cr
99.0%
OEM Sales Replacement Market
37.0%
Total revenue Rs. 121.2 Cr
63.0%
Domestic Exports
7
Quarterly Profit & Loss Statement
Particulars (Rs.Crs )
Revenue from Operations
Cost of Materials consumed
Changes in Inventories of finished goods & work in progress
Manufacturing Expense
Power, Fuel & Water Charges
Consumption of Stores & Spares
Total Raw Material
Value Addition
Employee Expenses
Other Expenses
EBITDA
EBITDA %
Depreciation and Amortisation Expense
Finance Costs
Other Income
PBT
PBT Margin
Exceptional Items
Tax Expenses
PAT
PAT %
EPS (₹)
Q2 FY23
Q2 FY22
121.2
77.4
Y-o-Y
57%
Q1 FY23
115.6
Q-o-Q
5%
29.6
5.3
11.1
16.1
15.7
77.8
43.3
9.5
5.6
28.3
25.7
-8.9
8.6
12.3
12.8
50.3
27.1
6.8
2.3
17.9
23.4%
23.1%
4.7
0.7
0.6
19.0
16.4%
0.0
6.0
17.6
14.5%
8.68
4.7
0.2
0.1
7.1
13.5%
0.0
3.3
9.8
12.7%
4.85
60%
58%
79%
79%
28.5
7.9
11.2
16.4
15.6
79.7
35.9
8.2
3.6
24.1
20.8%
4.6
0.7
0.3
19.0
16.4%
0.0
4.8
14.1
12.2%
6.99
21%
18%
24%
24%
FY22
302.0
95.0
-26.9
34.4
49.5
48.5
200.5
101.6
28.4
9.5
63.7
21.1%
17.7
1.6
0.3
44.7
14.8%
0.0
11.5
33.3
11.0%
16.4
8
Balance Sheet
Equity & Liabilities (₹ in Cr)
Equity Share Capital Other Equity
Total Equity
Non-Current Liabilities Financial liabilities
(i) Borrowings Provisions Deferred Tax Liabilities, (net) Other Non Current Liabilities
Total Non-Current Liabilities
Current Liabilities
Financial Liabilities
(i) Borrowings (ii) Trade Payables (a) total outstanding dues of micro enterprises and small enterprises (b) total outstanding dues of creditors other than micro enterprises and small enterprises (iii) Other Financial Liabilities Provisions Current Tax Liabilities (net) Other Current Liabilities
Total Current Liabilities
Total Equity & Liabilities
Sep’22
Mar’22
10.1 172.8
182.9
10.1 146.4
156.6
0.0 1.1 6.3 0.0
7.3
0.0 1.1 6.7 0.0
7.8
46.6
62.8
0.0
20.8
16.1 1.1 2.6 0.4
0.0
35.7
10.7 1.1 0.3 1.2
87.6
277.8
111.7
276.0
Assets (₹ in Cr)z
Non – Current Assets
Property, plant and equipment
Capital work‐in‐progress
Intangible Assets
(i) Investments
(ii) Loans
(iii) Other Financial Assets
Non Current Tax Assets (Net)
Other Non‐Current Assets
Total Non-Current Assets
Inventories
Financial Assets
Current Assets
Financial Assets
(i) Trade receivables
(ii) Cash and cash equivalents
(iii) Bank balances other than (ii) above
(iv) Loans
(v) Other Financial Assets
Other Current Assets
Total Current Assets
Total Assets
Sep’22
Mar’22
106.1
108.7
10.2
0.5
4.5
1.0
0.0
0.0
5.0
0.7
0.1
0.0
0.0
0.0
10.5
11.0
132.9
125.5
49.1
61.6
78.4
75.2
0.2
2.5
0.9
0.1
13.8
144.9
277.8
0.1
2.0
0.2
0.0
11.5
150.6
276.0
9
Cash Flow Statement
Cash Flow Statement (Rs. Crs.)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add : Cash and cash equivalents at the beginning of the year
Less : Transferred pursuant to scheme of merger
Cash and cash equivalents at the end of the year
Sep-22
Sep-21
42.5
8.7
51.2
-3.8
47.4
-8.9
38.4
-15.4
-6.8
16.3
-62.7
0.0
-46.4
20.2
9.3
29.6
-41.4
-11.8
-6.1
-17.9
-6.5
-4.2
-28.6
-4.9
0.0
-33.6
10
Balance Sheet Ratios
Long term Debt (Rs. Crs.)
Short term Debt (Rs. Crs)
Debt to Equity
28
No LT debt has been taken Steelcast until now
by
70.0
Short term borrowing has reduced for H1FY23
-26.0%
63.0
0.91
46.6
to
Equity
has Debt reduced by 37.5% from FY22 to H1FY23
14
13
9
Mar-18 Mar-19
Mar-20
Mar-21
0 Mar-22
0 Sep-22
25.0
17.0
14.0
0.45
0.25
0.18
-37.5%
0.40
0.25
Mar-18
Mar-19
Mar-20
Mar-21 Mar-22
Sep-22
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sep-22
RoCE
RoE
Working Capital (in Days)
26.6%
28.4%
22.3%
21.7%
23.3%
147
143
16.8%
14.7%
13.2%
9.8%
6.8%
100
74
74
100
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-18 Mar-19 Mar-20
Mar-21
Mar-22
Sep-22
11
Company Overview
12
Diversified Business Model catering to Varied Industries
Existing Segments*
Earth Moving Industry
Mining
Mineral Processing Industry
Steel Plants
Cement
Construction
Foray into New Segments
Railways
Electro Locomotive
Ground Engaging Tools (GETs)
* Business done is with all OEMs
13
Presence across the Globe
Denmark
USA
Mexico
Brazil
Germany
India - Headquartered
South Korea
China
Japan
Thailand
Singapore
Australia
Export Presence
“Two-Star Export House Status holder”
Expected to increase the presence 15+ countries in the next 5 years
Disclaimer: Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
14
Experienced Board of Directors
Mr. Chetan M. Tamboli, Managing Director & CEO
• Aged 62 years, a third-generation entrepreneur, is a commerce graduate armed with an MBA Finance from USA
• Serving as a CEO since 2003 with total experience of more than 30 years. Looks after strategy, policy making and overall management
• Served as the Chairman Board of Governors, Government Engineering College, Bhavnagar, Gujarat since 2014
Mr. Rushil C Tamboli (Non-Executive Non-Independent Director)
• Aged 33 years, is an Engineering graduate with Industrial Engineering (I.E.)
• Heading various departments and contributed to improve fuel efficiency of heat treatment operations, developing new parts, achieving improvement in Man hours per ton
Mr. Hemant D Dholakia (Independent Non- Executive Director) • Aged 57 years, he has completed his master’s degree in Marketing and Finance
from University of Scranton, USA and has experience in manufacturing industries more than 38 Years. He is the Managing Director at Goran Pharma Pvt. Ltd.
• Director at Hansrx Pvt. Ltd. & Partner at Parag Perfumes, Sihor
Ms. Vidhi C Tamboli (Non-Executive Non-Independent Director) • Aged 30 years, is a Master of Arts & Master of Education (Psychology)
• Heading Human Resource department of the Company
• She is having experience as career counselor in India and overseas and is involved in various
Corporate Social Responsibility (CSR) activities
Mr. Apurva R Shah (Independent Non- Executive Director) • Aged 52 years, he has received his undergraduate degree from London School of Economics
and Political Sciences and has an experience of more than 15 years.
• He is an Independent Director at GRP Limited, Acrysil Limited, Florican Chemicals and
Resins Private Limited
Mrs. Aarushi M Ganatra (Independent Non-Executive Director) • Aged 64 years, is a graduate in Commerce
• She also heads a consultancy firm to advise in business, finance & investments
• Has worked for over 3 decades at various levels in the field of Statutory audits, internal
audits and human resource training.
Mr. T Kumar (Permanent Invitee ) • Aged 82 years, is a B. Tech graduate (IIT, Khadagpur) armed with M.E. (Foundry) (IISc, Bangaluru). He is a permanent Invitee to the Board and its committee meetings since September 2018 with total experience of about 50 years in the Company.
• He also served as CFO
Future Strategy
16
Rationalization Measures
Product Development
Business Development
Initiated a rationalization plan since last 2 years
Company to set up 5 MW Solar Power Plant in Gujarat region for captive consumption which will bring considerable savings.
25 years PPA signed for solar & wind hybrid power project which will bring considerable savings
Reduction in throughput time for processing of castings – thus unlocking of capital from working capital needs
17
THANK YOU
Company:
CIN: L27310GJ1972PLC002033
Name: Mr. Subhash Sharma, CFO
Email ID: ss@steelcast.net
Investor Relations Advisors:
Mr. Faraz Ahmed +91 9619705150 faraz.ahmed@linkintime.co.in
Mr. Rajesh Agrawal +91 9967491495 rajesh.agrawal@linkintime.co.in
18