Shivalik Bimetal Controls Limited has informed the Exchange about Investor Presentation
SBCL/BSE & NSE /2023-24/15
18th May, 2023
To, BSE Limited Corporate Relationship Deptt. PJ Towers, 25th Floor, Dalal Street, Mumbai – 400 001 Code No. 513097
Dear Sir,
To, National Stock Exchange of India Ltd. Exchange Plaza, Plot No.C/1, G-Block Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 Code No. SBCL
Sub: Submission of Analysts/Investors Presentation
Ref: Letter dated May 16, 2023 providing details of the Investor Conference Call – Standalone and Consolidated Audited Financial Results for the quarter and year ended March 31, 2023
In continuation to our letter dated May 16, 2023, please find enclosed a presentation on the Audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2023.
The presentation www.shivalikbimetals.com.
is also being made available on
the Company's website at
You are requested to take the same on record. Thanking you,
Yours truly,
For Shivalik Bimetal Controls Limited
Aarti Sahni Company Secretary
Encl: As above
SHIVALIK BIMETAL CONTROLS LIMITED
INVESTOR PRESENTATION
Q4 & FY2023
FORWARD LOOKING STATEMENTS
SHIVALIK BIMETAL CONTROLS LIMITED
This presentation and the following discussion may contain “forward- looking statements” by “Shivalik Bimetal Controls Limited” that are not historical in nature.
Such forward-looking statements are subject to certain risks and uncertainties such as government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements.
“Shivalik Bimetal Controls Limited” will not be in any way be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
1
INVESTMENT RATIONALE
07
Enjoying strong ‘Relationship Capital” with limited domestic competition, where customers thriving on the “Make in India” opportunity
01
Enjoying an R&D-centric Technological Moat in a fast-growing niche market
06
Machine building capability of critical processes at a cost which is a fraction of global alternatives, thus enjoying a CAPEX advantage
SHIVALIK BIMETAL CONTROLS LIMITED
02
Riding the "Electrification Everywhere” wave, where everything that ran on fossil fuels is electricity driven
05
Enjoying Technological Leadership Status in Global Markets with Reputed OEMs, at the forefront of India’s prominent growth presence
03
Enjoying a strong Balance Sheet with headroom to raise capital to match global demand growth
04
Using "Energy and Resources Light” Manufacturing processes, which are sustainable
2
SHIVALIK BIMETAL CONTROLS LIMITED
FORGING AHEAD
a niche technology pioneer at the tipping point of quantum growth
LEVERAGING DIFFERENTIATED
INTELLECTUAL CAPITAL 1
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION 2
PREPARED FOR SUSTAINED GROWTH 3
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE 4
3
SHIVALIK BIMETAL CONTROLS LIMITED
LEVERAGING DIFFERENTIATED
INTELLECTUAL CAPITAL 1
4
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
DELIVERING QUANTUM & QUALITY GROWTH
SHIVALIK BIMETAL CONTROLS LIMITED
We make state-of-the-art electro-mechanical components that are at the heart of battery management systems
Over the past year, Shivalik has made significant strides in the evolving landscape of technological applications, achieving quantum growth through innovation and quality. Our expertise in Bimetal, Trimetal Strips and Shunt Resistors has been instrumental in facilitating advancements in sectors such as switchgear, energy meters, and battery management systems.
Over the last few years, we've diversified our product range to meet market trends and customer needs, delivering tailored solutions to leading OEMs. Our commitment to manufacturing excellence ensures consistent quality and reliability, positioning us as a valued partner across various industries.
Looking forward, Shivalik is committed to driving quantum and quality growth. We plan to broaden our capabilities, pioneer R&D, build new alliances, and explore untapped markets, persistently generating value for our stakeholders.
With its technological prowess and customer relationships, Shivalik can harness the potential growth in diverse segments such as automotive, defence, medical, and electrical appliances, whilst also capitalising on the ongoing electrification wave.
Paving the way for a dynamic and prosperous future.
5
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
KEY MILESTONES
SHIVALIK BIMETAL CONTROLS LIMITED
1984-1986
1994-2000
2002-2003
2005-2008
A niche technology leader with global presence
•
Incorporated as a private limited company in June 1984
• Converted into a public limited
company in May 1986
• Set up first plant in Asia to manufacture Thermostatic Bimetals in Oct 1986
• Launch of a new product
• The Company’s in House
• Entered into a Joint
R&D units stands recognised by the government on 17th May 2002
Cathode Ray Tube business line for parts
•
Integrated manufacturing process
• Acquired New Technology & Know how of Electron Beam Welding in 2000
Venture agreement with Checon Corporation USA in the year 2006 to manufacture silver contacts
• Entered into a Joint
venture with ArcelorMittal Stainless & Nickel Alloys and Dnick Holding Plc. to manufacture cladding material at SEZ Pithampur, Indore, MP
• A 100% subsidiary
company named Shivalik Bimetal Engineers Pvt. Ltd. was incorporated during FY 2007-08 for providing technical and engineering services
6
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
KEY MILESTONES
SHIVALIK BIMETAL CONTROLS LIMITED
2009-2011
2015-2020
2021-2023
A diversified product reengineering player with global presence
• Acquired the equipment’s of
• Launch new product line i.e, Shunt resistor
Sandvik Heating Technology, AB, Sweden, for manufacturing bimetals / tri- metals through cold bonding process in 2011
• Expanded Product portfolio i.e., Thermostatic Bimetal, Tri-
metal, Coil & Spring, SMD, Shunt
• Commencement of New
Factory
• Established largest EBW / Bonding / Stamping capacity across the globe
• Achieved Net Worth of
INR 230 Crores+
• Listed on National Stock
Exchange of India Limited
7
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
OUR BUSINESS MODEL CANVAS
SHIVALIK BIMETAL CONTROLS LIMITED
8
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
ADVANCED MANUFACTURING CAPABILITIES
SHIVALIK BIMETAL CONTROLS LIMITED
People: 650
5 main technologies:
1. Diffusion Bonding
2. Cold Bonding
3. Electron Beam Welding
4. Braizing & Welding
5. High precision strip
processing
Head Office
Shivalik Bimetal 1 & 2
SEPPL Plant 3
ICS
Shivalik Bimetal Controls Ltd. (SBCL) Plant 1 Solan, HP, India
Shivalik Bimetal Controls Ltd. (SBCL) Plant 2 Solan, HP, India
Shivalik Engineered Products Pvt. Ltd., (SEPPL) Plant 3 Solan, HP, India
Innovative Clad Solutions Private Limited (ICS) (joint venture) Indore, MP, India Head Office New Delhi, India
“The strength of our balance sheet places us in a position for sustainable and exciting growth going into the future.”
Chairman Mr. S.S. Sandhu
“We are committed to being at the forefront of the technology curve that is relevant to our core products.”
Managing Director Mr. N. S. Ghumman
9
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
STATE-OF-THE-ART FACILITIES
SHIVALIK BIMETAL CONTROLS LIMITED
• World’s Largest Capacity and
Plant 1
Plant 2
Plant 3
Modern Manufacturing Facilities with unique capabilities
Production of Strip Electronic Beam Welding Inhouse stamping shop
Inhouse R&D and Innovation
Inhouse Reliability Testing
Inhouse Tooling and Design
•
•
•
•
Location
Product Type
Solan, Himachal Pradesh
Solan, Himachal Pradesh
Solan, Himachal Pradesh
EB welded Shunt Resistor Strip
Thermostatic Bimetal Strips
Electrical Contacts
Revenue Capacity Post Expansion
INR 700 Cr
INR 600 Cr
INR 300 Cr
Quantum capacity growth from optimized CAPEX
•
•
INR 75 crores of capex already spent over FY 2021 to FY 2023
INR 20 to 30 crores to be spent for optimization and to improve productivity over FY 2024 to FY 2026
• Sales Potential post expansion – INR 1,600 Crores
10
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
HIGHLY SPECIALIZED IN MANUFACTURING PRECISION ENGINEERED SOLUTIONS
SHIVALIK BIMETAL CONTROLS LIMITED
Our Technical know how is a moat reflected by our expertise in Bimetals and our first mover advantage for Shunt Resistors
Shunt Resistors are manufactured through Electron Beam Welding (EBW) Process
Thermostatic Bimetals are manufactured through Diffusion Bonding Process
Electrical Contacts are key components which act as connecting points in a switchgear
• EBW is a highly specialized process where
a cloud of electrons emitted from a tungsten cathode are accelerated in high vacuum for joining strips
• The company can deliver customized Shunt Resistors due to the precision welding process along with down the line finishing capabilities
• Metals are joined to best take advantage of the “Bimetal Effect” i.e., movement caused by their different coefficients of expansion as they respond to temperature changes
• Post bonding, all finishing processes
including component manufacturing are done in house
• The contact materials used in such
components is typically made of different types of precious metal alloys
• These materials are then joined on to copper
or copper alloy substrates using various methods such as welding, cold bonding, hot bonding, or riveting
11
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
PRECISION ENGINEERED SOLUTIONS FOR DIVERSIFIED END APPLICATIONS
SHIVALIK BIMETAL CONTROLS LIMITED
Only company in the world to provide a portfolio of Shunt Resistors, Thermostatic Bimetals and Electrical Contacts under one roof
Shunt Resistors
Thermostatic Bimetals
Electrical Contacts
• Shunt Resistors are electrical components that “regulate
• Thermostatic Bimetals are “critical components used in
the flow of electrical current” in an electrical circuit
overload protection devices”
• Electrical contacts are key components which are connecting points when a switch is turned on or off
Product Description
• Thermostatic Bimetals are formed by mechanically
• The contact materials are typically made of different
•
It is used to measure and sense the flow of current and create a low resistance path for electric current to pass through it
diffusing two or more alloys to combine their individual properties
• Shivalik, one of the preferred supplier globally, produces a wide range of highly dependable Resistors that are used in electronics, electrical, and automotive industry
• Shivalik is the largest supplier of Thermostatic Bimetal in India with more than grades and possesses the potential to satisfy global demand
types of precious metal alloys. These materials are then joined on to copper alloy substrates using various methods
• Shivalik specializes in the production of electrical contacts with its core competency focused on specialized joining processes
Electric Vehicle
Smart Meters
Energy Storage
Power Modules
Switchgear
Electrical Appliances
Smart Meters
Switchgears
Medical Devices
Automotive
Wires &Accessories
Electrical Appliances
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End Applications
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
A GLIMPSE OF TRADITIONAL END-APPLICATIONS
SHIVALIK BIMETAL CONTROLS LIMITED
ICE & Electric Car
EB Welded Applications
-Energy Meters -AC/DC Converters -Automotive BMS / Electric Charger IBS Power Modules
-Inverters UPS Frequency Converters -Low Inductance Applications
Thermostatic Bimetal Applications
-Industrial -Automotive -Switchgear Inverter -Electrical Appliances
Electrical Contacts
-Switching Mechanisms -Switchgear Metering (Relays) Gas Meter -Industrial Instruments
-Appliances -Automotive Switches
Electric Meter
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1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
OUR COMPETITIVE EDGE
SHIVALIK BIMETAL CONTROLS LIMITED
01
Precision Engineered Manufacturing Solutions • Leading supplier of critical components for Electric Vehicles, Energy Storage Devices, Switchgear, Electrical Appliances and Smart Meters
04
Long Standing Relationship with Marquee Global Customers • 30+ years of customer relationships focused on offering customized solutions alongside growing customer base
02
Technology Focused Skillset • Operating in a niche segment with core
05
Adept Human Capital • Presence of technocrat promoters with
competence of joining metals by highly complex processes like Diffusion Bonding and Electron Beam Welding
experienced management and highly skilled production team
Shunt Resistors
Thermostatic Bimetals
03
Product Portfolio with Diversified Grades • Thermostatic Bimetal/Trimetal, Shunt Resistor
Snap Action Disc, Coil & Spring etc.
06
Focus on R&D and Strategic Innovation • Capabilities across design, development, testing,
validation, manufacturing and delivery
Electrical Contacts
• Proprietary tooling design technology to
• Focus on R&D and continuous improvement in
significantly enhance productivity and profitability
product performance, cost & reliability and quality
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1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
PROTECTED THROUGH STRONG DEFENSIVE MOATS
SHIVALIK BIMETAL CONTROLS LIMITED
Global pioneer in bonding & welding
Differentiated through aggressive R&D
SBCL is a global pioneer in joining metals to form bimetal and trimetal strips and components which use niche technology such as electron beam welding, hot diffusion bonding, resistance welding, and continuous brazing. These are critical components used in switchgear, automobiles (including EVs), and in Energy Meters.
The Company enjoys a culture of rigorous R&D with talented people that have decades of experience that is hard to replicate. This gives Shivalik an intellectual capital advantage in maintaining its pole position amongst peers. It has an established presence with major technologies under one roof.
Cemented as a technology leader in a difficult-to- enter industry
Shivalik is a niche technology-based business, with expertise accumulated over decades in metallurgical innovations involving diffusion bonding and electron beam welding of metals. These are complex processes with high barriers of entry.
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1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
PROTECTED BY R&D AND MANUFACTURING CAPABILITIES
SHIVALIK BIMETAL CONTROLS LIMITED
A PIONEER USER OF CUTTING- EDGE PROCESSES WITH VETERAN CREDENTIALS
Highly trained and experienced base of 650 people
07
01
Master in Diffusion bonding
• A leading supplier of
thermostatic bimetals with 77 grades of Bimetals and Trimetals.
• An IATF16949, ISO 45001, ISO18001 & ISO 9001 Certified Company
• ‘Here to stay’ process
technology, resulting in a window of stability enjoyed by Shivalik in their technology domain
In-house Reliability Testing
06
UNMATCHED MANUFACTURING PROWESS
02
World’s largest capacity and production of high quality strip Electron Beam Welding
Strong ability to design and manufacture tools in-house with quick delivery turnaround
05
03
Most experienced/ highest cumulative kilometres of welding
04
Integrated processes with in-house Stamping Capabilities
16
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
DRIVEN BY OUR TALENTED PEOPLE POOL
SHIVALIK BIMETAL CONTROLS LIMITED
Top-notch promoters
Veteran Experience embedded into the company
Professional Teams
Investing in a diversity of capabilities & skillsets
Supporting our people to produce Innovative offerings
By actively investing in each member of Shivalik, we aim to build an inherently capable and agile organisation.
Best-in-Class services for Global clients
High-value & Customisable offerings
Long-term relationships with OEMs
17
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
EXPERIENCED TECHNOCRAT PROMOTERS AND SEASONED MANAGEMENT
SHIVALIK BIMETAL CONTROLS LIMITED
First Generation Entrepreneurs
Mr. S. S Sandhu Chairman and Whole Time Director
Mr. N.S Ghumman Managing Director
• 50 years of experience in the field of Banking,
Finance, Legal and Corporate Financial Management
• 49 years of experience in the field of engineering, R&D, manufacturing operations and Product Development
• Bachelor of Arts
• BTech in Mechanical Engineering (Hons)
Second Generation Entrepreneurs
Mr. Kabir Ghumman Head of Manufacturing & Engineering
Mr. Kanav Anand Head of Sales and Marketing
Mr. Sumer Ghumman Managing Director of SEPPL
Mr. Rajeev Ranjan Chief Financial Officer
• 14 years of experience
• 20 years of experience in the industry
• 14 years of experience
• 12 years of experience
• B Tech, Mechanical Engineering
• BSc (Hons) in Business Management
• Graduate in Accounting and Finance
• Chartered Professional, Executive Study in Finance and Financial Management Services
18
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
WELL-POSITIONED FOR FUTURE GROWTH
SHIVALIK BIMETAL CONTROLS LIMITED
Global Presence with exports to over 30+ countries
Domestic and Export Sales Mix
Extending to a global scale with increase in Exports
48%
FY 2018
52%
Export
Domestic
Russia
Japan
South Korea
Taiwan
China
Singapore
India
Manufacturing Locations
Sales Offices
35%
•
Italy / EU
• Russia
• Singapore
• South Korea
• Taiwan
• Japan
• China
FY 2023
65%
Export
Domestic
19
USA
Italy/ EU
Brazil
Sales Office
• Brazil
• USA
1
LEVERAGING DIFFERENTIATED INTELLECTUAL CAPITAL
EXPANDING OUR GLOBAL REACH & MARKET VISIBILITY
1
being relevant to market needs i.e. EVs and smart metering
3
by being ambitious in research and technological innovation
5
maximising operating leverage in specialised components
2
by being a key player at global exhibitions to gain more visibility
4
Expanding our visibility & market reach
SHIVALIK BIMETAL CONTROLS LIMITED
Fostering deep relationships with leading system manufacturers & OEMs globally
20
SHIVALIK BIMETAL CONTROLS LIMITED
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION 2
21
2
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION
RISK MANAGEMENT POLICY TO ENSURE SMOOTH LONG-TERM CONTINUITY
SHIVALIK BIMETAL CONTROLS LIMITED
Shivalik is exposed to various risks in daily conduct of its business. However, it has policies in place to ensure the company is insulated from any risk affecting its operations
01
Commodity Risk
03
Currency Risk
• The prices of raw materials procured by Shivalik are
index linked thereby reducing the risk of price volatility
• The Company has diverse set of suppliers thereby
reducing the risk of shortage of raw materials
• Shivalik is able to transfer price volatility as it enters into back-to-back contracts with its customers
Risk Management
• Shivalik has been maintaining its gross margins
at ~50% consistently
• The Company enjoys an import-export ratio that provides a natural hedge for price fluctuation
• Shivalik also enters forwards and options
contracts for mitigating the risk to an extent
• The Company has a strong hedging policy in
place
02
Credit Risk
04
Liquidity Risk
• Shivalik customers include global marquee names
with high credit ratings
• The Company does not offer credit to new
customers
• For other export customers with long standing relationship, Shivalik offers a credit period of 30 days post receiving ECGC cover
• Efficient utilization of working capital facility
• Company has a healthy ratio of EBITDA to Cash
conversion
• Furthermore, the Company does not have
substantial term loans
22
2
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION
A VALUABLE LONG-TERM PLAYER SHIELDED BY A NETWORK OF LOYAL CLIENTS
SHIVALIK BIMETAL CONTROLS LIMITED
01
02
03
Early-stage involvement
Engaging with clients at an early stage of their product development cycle
Studying OEM Insights
Kick-starting the building of solutions around the needs & gaps of industry segments
Becoming an Invaluable Partner
Ensuring trust & reliability that clients place in Shivalik for their long-term planning
Direct Long-Term OEM Engagement
Establishing reliability with long-
term clients
Partnering with clients for bespoke applications
Expanding mandates with existing clients towards more innovative capabilities
Key Drivers for Repeat Business
Timely delivery of customized products with consistent quality
Regular interactions with client for their feedback
Ability to drive innovation in the existing product segment
Presence of unique technical knowhow
Extensive Accreditation Process (Build to Specify Model)
Conceptualize
Design
Prototype
Pilot & Sampling
Mass Production
23
2
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION
SUPPORTING LONG-TERM CLIMATE CHANGE COMMITMENTS
SHIVALIK BIMETAL CONTROLS LIMITED
SHIVALIK IS AT THE WAYPOINT FOR THE ELECTRIFICATION OF THE GLOBAL ECONOMY
The global Electric Vehicle Market size is projected to grow from 8,151 thousand units in 2022 to 39,208 thousand units by 2030, at a CAGR of 21.7% (2022-2030)
“Electric Vehicle Market Share, Size, Trends – (2022-2030)”
04 A huge global opportunity going forward into the next 3-4 decades. The shift towards Electrification from all major fossil fuel- based energy applications is driving our growth.
03 Shivalik is a proxy to the auto ancillary industry that will benefit highly from the electrification of the global vehicles market
01 Everything going the electrical way is going to utilise Shivalik’s devices; EVs, EV infrastructure, and storage solutions
Demand for Electric Storage Solutions
Demand for Electric Vehicle Production
Demand for Charging Network Infrastructure
02 Shivalik is placed in a sweet spot for delivering sustained growth into the future
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2
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION
APPLICATIONS OF SHUNT RESISTORS IN AUTOMOBILES
SHIVALIK BIMETAL CONTROLS LIMITED
Battery Management Systems SBF, SBG, SBI
Autonomous Driving SBF, SBG, SBI
DC/DC Converter SBC, SBG, SBF
EPS Electric Power Steering SBA, SBC
Air Conditioning Systems SBA, SBF
Restraint Systems (SRS) SBG, SBC, SBI
Seat Belt Pretensioners SBA, SBF
Laser Lighting Systems SBA, SBF
Door/Mirror Control Modules SBA, SBF, SBB
HVAC Systems / Blowers SBF, SBG, SBI
Transmission Control SBA, SBF
Integrated Starter Generators (ICE) SBZ
Oil Pump (ICE) SBF, SBG, SBI
AC/DC Converter SBC, SBG, SBF
Energy Measurement Sensor SBZ
Electromechanical Roll Stabiliser SBA, SBD
Electronic Braking Systems SBD, SBI
25
2
BUILT FOR SUSTAINABLE LONG-TERM VALUE CREATION
SIZEABLE GLOBAL ADDRESSABLE MARKET
SHIVALIK BIMETAL CONTROLS LIMITED
Total Global Addressable Market of the company was $1.23 Bn as of FY 2022 which is expected to grow at a CAGR of ~9% to $2.4 Bn by FY 2030
Shunt Resistors
In $ Millions
CAGR = 14%
650
230
Thermostatic Bimetals
Electrical Contacts
In $ Millions
CAGR = 7%
350
200
In $ Millions
CAGR = 7%
1,400
800
FY 2022
FY 2030
FY 2022
FY 2030
FY 2022
FY 2030
Source: Company Estimates
End Industry Market Size
Key Growth Drivers For Total Addressable Market In Future
Electric Vehicle
CAGR - 24.3% (2021-2028)
Energy Storage
CAGR - 30.0% (2021-2030)
Switch Gear
CAGR - 6.9% (2021-2031)
Medical Devices
CAGR - 5.5% (2021-2029)
Smart Meter
CAGR – 7.0% (2022-2028)
Electrical Appliances
CAGR – 15.0% (2022-2030)
Growing demand for electric vehicles and charging stations
High demand due to exponential growth in infrastructure sector
Growing demand for electric vehicles and charging stations
High demand due to exponential growth in infrastructure sector
Source: Market Reports
Source: Company
26
SHIVALIK BIMETAL CONTROLS LIMITED
PREPARED FOR SUSTAINED GROWTH 3
27
3
PREPARED FOR SUSTAINED GROWTH
CATALYSING GROWTH THROUGH A SERIES OF STRATEGIC ACQUISITIONS & ALLIANCES
SHIVALIK BIMETAL CONTROLS LIMITED
• Shivalik’s strategic acquisition of
CHECON’s (USA) stake in SEPPL expands the Company’s offerings to manufacture and design Silver and Silver Alloy based electrical contacts and assemblies.
• Shivalik has a joint venture with Arcleor Mittal Stainless & Nickel Alloys called ICS located in Indore, MP, India.
• Both these initiatives broaden
Shivalik’s offerings and provide entry into complementary market segments alongside bimetal, trimetal, and shunt resistors.
In partnership with Arcleor Mittal Stainless & Nickel Alloys
Acquisition of CHECON Corp. (USA) stake in SEPPL
Catalysts for entry into complementary market segments
28
3
PREPARED FOR SUSTAINED GROWTH
WHILE STAYING FRIENDLY TO THE ENVIRONMENT
SHIVALIK BIMETAL CONTROLS LIMITED
The technology required for these products is not energy- guzzling and is sustainability friendly leading Shivalik into a strong ESG position.
As per its EHS Policy, Shivalik commits to operating Plants and facilities to minimize the environmental impact and to ensure the health and safety of our employees, our community, and our customers.
01
Shivalik’s Environmental Stewardship
04
03
Committed to combating climate change by improving energy efficiency and the use of renewable energy.
The Company is sourcing 100% of its power from renewable sources (hydroelectric) leading to a relatively low carbon footprint.
Shivalik’s emissions are well within the prescribed standards by the Pollution Control Board and wastes are being disposed to authorized recyclers and disposal agencies.
29
3
PREPARED FOR SUSTAINED GROWTH
AND BY SUSTAINING SHIVALIK’S CORE ADVANTAGES
SHIVALIK BIMETAL CONTROLS LIMITED
POSITIONED FOR ROBUST GROWTH
Future Ready
A STRONG ECONOMIC MOAT WITH HEADROOM TO RAISE CAPITAL AS AND WHEN NEEDED
Shivalik enjoys an economic moat
Access to capital if required
TECHNOLOGY + PEOPLE + BUSINESS STRENGTH + ENTRENCHED CLIENT RELATIONSHIPS
Access to low cost manufacturing
High-value intellectual capital
long-term contracts are creating durable cash flows
Economic Moats:
i. Highly differentiated Intellectual capital = niche industry value creation
ii. 20+ years of experience
iii. Extensive Investment in R&D
iv. Efficient scale from specialisation
v. High-switching costs for clients
vi. Contracts structured where price volatility is borne by the client
30
SHIVALIK BIMETAL CONTROLS LIMITED
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE 4
31
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
FY23: KEY FINANCIAL HIGHLIGHTS (Standalone)
SHIVALIK BIMETAL CONTROLS LIMITED
In ₹ crore
Revenue & GM
EBITDA & EBITDA Margin
PBT & PBT Margin
Pat & Pat Margin
51.20
120.00
50.98
51.00
100.00
24.84
25.50
120.00
25.00
24.50
24.00
100.00
80.00
23.50
60.00
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
50.29
29.70%
50.80
50.60
50.40
50.20
50.00
80.00
60.00
40.00
20.00
49.80
0.00
22.70
41.92%
23.00
22.50
22.00
21.50
40.00
21.56
20.00
0.00
39.14%
23.13
23.50
80.00
23.00
22.50
70.00
60.00
50.00
22.00
40.00
21.50
21.00
30.00
20.00
10.00
20.50
0.00
16.06
39.57%
17.28
17.40
17.20
17.00
16.80
16.60
16.40
16.20
16.00
15.80
15.60
15.40
FY21-22
FY22-23
FY21-22
FY22-23
FY21-22
FY22-23
FY21-22
FY22-23
Revenue
Gross Margin %
EBITDA
EBITDA Margin %
PBT
PBT Margin %
PAT
PAT Margin %
Revenues surged by 29.70% YoY to ₹ 420.23 crore in FY23 led by strong growth with the addition of new mandates from prominent clients.
EBITDA grew by 41.92% YoY from ₹ 73.54 crore in FY22 to ₹ 104.37 crore in FY23.
PBT grew by 39.14% YoY from ₹ 69.85 crore in FY22 to ₹ 97.19 crore in FY23, fuelled by volume growth and tight control on input costs.
Gross Margin improved marginally by 69 bps YoY to 50.98% in FY23, despite cost pressures faced during the period through astute management of raw material and processing input costs.
EBITDA Margin expanded significantly by 214 bps YoY to 24.84% in FY23, driven by manufacturing efficiencies from greater economies of scale, and effective cost management in a challenging global macro- economic environment.
PBT Margin improved significantly by 157 bps to 23.13% in FY23 due to improvements in EBITDA.
PAT surged by 39.57% YoY from ₹ 52.04 crore in FY22 to ₹ 72.63 crore in FY23.
PAT margin increased by 122 bps YoY to 17.28% in FY23.
32
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
Q4 & FY23: SEGMENTWISE HIGHLIGHTS
SHIVALIK BIMETAL CONTROLS LIMITED
Performance by Revenue (In ₹ crore)
450
400
350
300
250
200
150
100
50
0
23.30%
45.09
44.23
56.96
53.18
Q4FY21-22
Q4FY22-23
29.70%
209.34
152.88
171.11
FY22
210.89
FY23
Shunt
Bimetal
Revenues: Shivalik experienced secular growth across both Shunts and Bimetals in both Q4FY23 (up by 23.30% YoY) and FY23 (up by 29.70% YoY) in terms of Value (Rs. in crore).
33
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
FY23: SEGMENT SHARE
SHIVALIK BIMETAL CONTROLS LIMITED
Segment Share by Volume (Kgs)
Segment Share by Revenue (In ₹ crore)
FY23 (Vol-Kgs)
FY23 (Value in Cr.)
Bimetal 52%
Shunt 48%
Bimetal 50%
Shunt 50%
Shunt
Bimetal
Shunt
Bimetal
While the Bimetals segment continues to be the long-term growth engine for the Company, Shunts have become a fast growing and meaningful growth driver for Shivalik, and has emerged as an equal to its Bimetals business within a relatively short space of time. With multiple growth drivers propelling Shivalik forward, the Company is ideally placed at the waypoint for the electrification of the Global Economy.
Launched just five years ago, our Shunt Resistors business now contributes around 50% of our total business in value terms.
34
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
FY23: WORKING CAPITAL
Calculated on average inventory, receivables and creditors
SHIVALIK BIMETAL CONTROLS LIMITED
Working Capital Efficiency Ratios For FY23
260
44
216
252
22
230
74
56
67
69
300
250
200
150
100
50
0
Accounts Payable (Days)
Collection Period (Days)
Inventory (Days)
Net Working Capital (Days)
FY22
FY23
Inventory Days for the FY23 period has reduced by 44 days to 216.
Net Working Capital (Days) for the FY23 period has reduced by 22 days to 230.
35
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
Q4 FY23: BIMETALS/TRIMETALS + SHUNT RESISTOR BUSINESS DEEP DIVE
SHIVALIK BIMETAL CONTROLS LIMITED
45
40
35
30
25
20
15
10
5
0
Thermostatic Bimetals/Trimetals
Shunt Resistor
39.42% [%]
[34%]
38.3
[14%]
[10%]
32.07%
29
10.01
7.18
8.91
8.65
-2.90%
[8%] [14%]
[43%] [43%]
Americas
[42%] [36%] Europe
Q4FY21-22
Q4FY22-23
[7%]
Asia/Australia
[7%] %Change
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
-10.00%
35
30
25
20
15
10
5
0
31.29
52.11%
20.57
29.20%
19.62
16.67
5.22
4.04
-15.04%
Americas
Europe
Asia/Australia
Q4FY21-22
Q4FY22-23
%Change
In ₹ crore
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
The Americas show a significant rise in the Thermostatic Bimetal/Trimetal segment for Q4FY23
Europe demonstrates a steady rise for the Shunt Resistor segment for Q4FY23
36
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
FY23: BIMETALS/TRIMETALS + SHUNT RESISTOR BUSINESS DEEP DIVE
SHIVALIK BIMETAL CONTROLS LIMITED
Thermostatic Bimetals/Trimetals
Shunt Resistor
140
120
100
80
60
40
20
0
155.34%
[26%]
[32%]
121.34
104.21
54.77
21.45
33.23
27.22
22.10%
16.44%
24.68%
114.83
92.1
180.00%
160.00%
140.00%
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
140
120
100
80
60
40
20
0
22.70%
76.15
62.78
21.30%
19.91
16.23
Americas
Europe
Asia/Australia
Americas
Europe
Asia/Australia
FY22
FY23
%Change
[6%]
FY22
FY23
%Change
In ₹ crore
25.00%
24.00%
23.00%
22.00%
21.00%
20.00%
19.00%
The Americas show a significant rise in the Thermostatic Bimetal/Trimetal segment for FY23
Asia/Australia demonstrates a steady rise for the Shunt Resistor segment for FY23
37
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
Q4 & FY23: CONSOLIDATED PROFIT & LOSS STATEMENT
SHIVALIK BIMETAL CONTROLS LIMITED
Particulars
Q4FY23
Q4FY22
Revenue From Operation
COGS
Gross Profit
Gross Margin %
Employee Expenses
Other Expenses
EBIDTA
EBIDTA Margin %
Finance Cost
Depreciation
Other Income
Profit Before Tax
Profit Before Tax Margin
Taxes
Profit after Tax*
PAT Margin %
*Includes Other Comprehensive Income
50.13%
(235 bps)
123.60
64.55
59.05
47.78%
11.29
19.91
27.85
89.32
44.54
44.78
7.21
18.18
19.39
22.53%
21.71%
1.64
2.76
2.22
25.67
20.77%
4.17
21.50
17.39%
1.19
1.88
2.82
19.14
21.43%
4.53
14.61
16.36%
YOY
38.38%
44.93%
31.87%
56.59%
9.52%
43.63%
82 bps
37.82%
46.81%
-21.28%
34.12%
(66 bps)
-7.95%
47.16%
103 bps
FY23
470.37
245.16
225.21
47.88%
38.10
78.57
108.54
23.08%
7.04
10.55
10.95
101.90
21.66%
23.20
78.70
16.73%
FY22
323.99
161.06
162.93
50.29%
27.11
62.27
73.55
22.70%
2.76
6.38
8.96
73.37
22.65%
18.19
55.18
17.03%
YOY
45.18%
52.22%
38.23%
(241 bps)
40.54%
26.18%
47.57%
38 bps
155.07%
65.36%
22.21%
38.89%
(99 bps)
27.54%
42.62%
(30 bps)
38
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
CONSOLIDATED BALANCE SHEET
Particulars Assets Tangible Fixed Assets Intangible Assets Non-Current Financial Assets Other Non-Current Assets Total Non-Current Assets Inventories Trade Receivables Cash and Cash Equivalent Other Financial Assets Other Current Assets Total Current Assets Assets Classified as Held for Sale (C) Total Assets Equity & Liabilities Equity Share Capital Other Equity Net Worth Long Term Borrowings Other Non-Current Liabilities Total Non-Current Liabilities Short Term Borrowings Trade Payables Other Current Liabilities Total Current Liabilities Total Equity and Liabilities
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
49 1 8 1 59 41 34 0 1 10 86 2 147
8 75 83 7 6 13 23 17 11 51 147
50 1 11 0 63 69 35 0 0 7 112 2 177
8 97 105 7 7 14 33 15 10 58 177
60 1 13 1 75 51 31 0 0 6 88 0 163
8 108 115 10 6 16 10 12 10 32 163
67 1 15 2 86 70 43 16 0 6 135 0 221
8 132 139 8 6 14 14 35 19 68 221
83 1 18 6 108 115 59 11 0 15 200 0 308
8 184 192 15 6 21 42 42 11 95 308
SHIVALIK BIMETAL CONTROLS LIMITED
In ₹ crore
FY 2023
115 7 10 4 136 132 93 18 0 11 254 0 390
12 254 266 22 7 29 36 42 17 95 390
39
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
CONSOLIDATED CASH FLOW STATEMENT
Figures given below are in INR Crores
SHIVALIK BIMETAL CONTROLS LIMITED
Particulars Cash flow from Operating Activities Net Profit Before Tax- Adjustments: Depreciation and Amortization Share of Profit and Loss in JV Gain on Fair Valuation of previous held equity Interest Interest Expense Operating Profit Before WC Changes Working Capital Adjustments Trade Receivables Inventories Trade Payables Other Assets Other Liabilities Cash generated from operations Income Tax Paid Net Cash generated from operations Cash Flow from Investing Activities Capex investment Payment for Acquisition of Subsidiary(s) Capital Advances Investments in JV Net Cash generated from investing Cash Flow from Financing Activities Long Term Borrowings Short Term Borrowings Interest Paid Dividend Paid Net Cash from Financing Activities Net Increase in Cash and Cash Equivalent Opening Balance Cash and Cash Equivalents Acquired in Business Combination Closing Balance
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
Figures given below are in INR crores
23
5 (1) - 3 30
(7) (15) 9 (6) (1) 10 (5) 6
(8) - - - (7)
4 3 (3) (2) 1 0 1
-
0
40
34
5 (2) - 4 40
(1) (29) (3) 4 1 13 (9) 4
(6) - - (1) (7)
(1) 11 (4) (3) 3 0 0
-
0
17
6 (1) - 3 26
4 19 (3) 2 (0) 47 (6) 41
(14) - - - (14)
3 (23) (4) (2) (27) 0 0
-
0
34
6 (2) - 2 40
(12) (20) 23 (0) 6 37 (8) 30
(13) - (2) - (15)
(1) 4 (3) (1) 0 15 0
-
16
73
6 (4) - 2 78
(16) (45) 7 (9) (1) 14 (17) (3)
(22) - (2) - (24)
9 19 (2) (3) 23 (5) 16
-
11
102
11 (1) (3) 7 116
(22) (7) (5) 5 6 93 (27) 66
(32) (13) 1 - (43)
10 (17) (7) (5) (19) 4 11
3
18
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
Q4 & FY23: STANDALONE PROFIT & LOSS STATEMENT
SHIVALIK BIMETAL CONTROLS LIMITED
Particulars
Q4FY23
Q4FY22
Revenue From Operation
COGS
Gross Profit
Gross Margin %
Employee Expenses
Other Expenses
EBIDTA
EBIDTA Margin %
Finance Cost
Depreciation
Other Income
Profit Before Tax
Profit Before Tax Margin
Taxes
Profit after Tax*
PAT Margin %
*Includes Other Comprehensive Income
110.13
53.78
56.35
51.17%
10.12
19.22
27.01
89.32
44.53
44.79
50.15%
7.21
18.20
19.38
24.53%
21.70%
1.59
2.23
1.62
24.81
22.53%
5.91
18.90
17.16%
1.19
1.88
1.53
17.84
19.97%
4.43
13.41
15.01%
YOY
23.30%
20.77%
25.81%
102 bps
40.36%
5.60%
39.37%
283 bps
33.61%
18.62%
5.88%
39.07%
256 bps
33.41%
40.94%
215 bps
FY23
420.23
205.99
214.24
50.98%
33.95
75.92
104.37
24.84%
6.64
8.47
7.93
97.19
23.13%
24.56
72.63
17.28%
FY22
323.99
161.06
162.93
50.29%
27.11
62.28
73.54
22.70%
2.76
6.38
5.45
69.85
21.56%
17.81
52.04
16.06%
YOY
29.70%
27.90%
31.49%
69 bps
25.23%
21.90%
41.92%
214 bps
140.58%
32.76%
45.50%
39.14%
157 bps
37.90%
39.57%
122 bps
41
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
STANDALONE BALANCE SHEET
Particulars Assets Tangible Fixed Assets Intangible Assets Non-Financial Assets Other Non-Current Assets Total Non-Current Assets Inventories Trade Receivables Cash and Cash Equivalent Other Financial Assests Other Current Assets Total Current Assets Assets Classified as Held for Sale (C) Total Assets Equity & Liabilities Equity Share Capital Other Equity Net Worth Long Term Borrowings Other Non-Current Liabilities Total Non-Current Liabilities Short Term Borrowings Trade Payables Other Current Liabilities Total Current Liabilities Total Equity and Liabilities
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
49 1 8 1 59 41 34 0 1 10 86 2 147
8 77 85 7 5 12 23 17 10 50 147
50 1 11 0 62 69 35 1 1 7 113 2 177
8 98 106 7 6 13 33 15 10 58 177
60 1 13 0 74 51 31 0 0 6 88 0 162
8 108 116 10 5 15 9 12 10 31 162
67 1 15 1 84 70 43 16 0 6 135 0 219
8 132 140 8 4 12 14 35 19 68 219
83 1 12 6 102 115 59 11 0 15 200 0 302
8 179 187 15 4 19 42 42 11 95 302
SHIVALIK BIMETAL CONTROLS LIMITED
In ₹ crore
FY 2023
102 2 26 3 133 122 80 17 0 10 229 0 362
12 243 255 21 4 25 32 35 14 81 362
42
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
STANDALONE CASH FLOW STATEMENT
Figures given below are in INR Crores
SHIVALIK BIMETAL CONTROLS LIMITED
Particulars
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
Figures given below are in INR crores
Cash flow from Operating Activities
Net Profit before tax- Adjustments : Depreciation and Amortisation Unrealised foreign exchange loss/(gain) on borrowings Interest Income Interest Paid Dividend received Operating Profit Before WC Changes Working Capital Adjustments Trade receivables Inventories Trade Payables
Other Assets Other Liabilities Cash generated from operations Income Tax Paid Net Cash generated from operations Cash Flow from Investing Activities Capex investment Payment for Acquisition of Subsidiary(s) Capital Advances Interest Income Investment in Joint venture Dividend received Net Cash generated from investing Cash Flow from Financing Activities Long Term Borrowings Short Term Borrowings Principal payment of lease liability Interest Paid Dividend Paid Net Cash from Financing Activities Net Increase in Cash and Cash Equivalent Opening Balance Closing Balance
22
5 0 0 3 0 30
(7) (15) 9
(6) (1) 10 (5) 5
(8) 0 1 0 0 0 (7)
4 3 0 (3) (2) 2 0 0 0
43
33
5 (1) 0 4 0 40
0 (29) (3)
4 1 13 (9) 4
(6) 0 0 0 (1) 0 (7)
(1) 11 0 (4) (3) 3 0 0 0
17
6
0 3 0 26
4 19 (3)
2 (1) 47 (6) 41
(14) 0 0 0 0 0 (14)
3 (24) (1) (3) (2) (27) 0 0 0
33
6 (1) 0 2 0 40
(12) (20) 23
0 6 37 (8) 29
(13) 0 (2) 0 0 0 (15)
0 4 0 (2) (1) 0 15 0 16
70
6 0 (1) 3 0 78
(16) (45) 7
(9) (1) 14 (17) (3)
(23) 0 (2) 1 0 0 (24)
8 20 0 (3) (3) 22 (5) 16 11
98
9 1 (1) 7 (1) 112
(21) (7) (7)
4 6 87 (26) 61
(27) (13) 1 0 0 1 (38)
10 (16) 0 (7) (5) (18) 6 11 17
4
PERSISTENT FINANCIAL & OPERATIONAL PERFORMANCE
BUSINESS STRATEGY & OUTLOOK
SHIVALIK BIMETAL CONTROLS LIMITED
Building strength in new niche applications and markets
• Continue to build niche value added products for high-growth market segments
01
• Charting strategies to penetrate new geographies
02
Keep growing our brand reputation and margins profile • Expanding our geographical reach using existing reputation and relationships
• The two-fold strategy of further penetrating existing markets and entering new
markets for customisation from design-stage for products
03
Our commitment to R&D for maintaining pole position • Continuing process innovation in our technological capabilities
•
Investing in AI optimisation and forefront technology to enhance processes
Continue to build on organic and inorganic growth strategies • Accelerated focus on cash flow positivity
04
• Margin improvements
• Analysing opportunities for meaningful inorganic growth
44
SHIVALIK BIMETAL CONTROLS LIMITED
Rajeev Ranjan rranjan@shivalikbimetals.com
THANK YOU
www.shivalikbimetals.com
Shankhini Saha shivalik@dickensonworld.com