STERTOOLSNSE8 May 2023

Sterling Tools Limited has informed the Exchange about Investor Presentation

Sterling Tools Limited

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Q4 & FY23

t n e t n o C f o e b a T

01 01

Business Overview

Q4 & FY23 Standalone Financials

03 03

Q4 & FY23 Consolidated Financials

Historical Financials

Annexure

Page No.

04 04

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.

Business Overview

This image belongs to Fasteners plant in Bangalore

At a Glance

STL Group

Years of rich legacy

Fasteners Business

EV Component Business

2nd

Largest automotive fastener manufacturer in India

MCU supplier for high-speed scooter

0.3x

Debt to Equity ratio

Rs 775 Cr

Total Income

Manufacturing Facilities: 3 in Faridabad 1 in Kolar (Bangalore)

Rs 604 Cr

Total Income

1 manufacturing plant in Faridabad

2 R&D Centre: Faridabad Bangalore

Rs 171 Cr

Total Income

Our Strengths

Leading player in the automotive fastener segment

business

• We are second largest player in the automotive fastener segment • A long-standing relationship with major Auto OEM’s enables in increasing its share of

First Mover Advantage in EV Component

• SGEM is a pioneer in developing MCU’s in the 2W:

• High speed scooter segment (>~50 kmph) - ~50% market share • Overall - ~30% market share • Engineering and Ecosystem to support volumes

Credibility

amongst all the stakeholders

• Four decades of market presence helped the company to demonstrate strong credibility

Sustainable growth and profitability

• The Company is focused on building a healthy mix of premium priced value-added

products with healthy margins at portfolio level

Experienced Manpower

To partner and explore possible synergies

• Our teams demonstrate our intrinsic growth potential • An experienced management coupled with a young and dynamic workforce will enable

our company to excel into newer business areas

• To explore growth opportunities and leverage strategic partnerships which will lead to

higher share of business in the auto component space

Well Diversified Revenue Mix

Fasteners Business

EV Component Business

Channel-wise Mix FY23

11%

Segment-wise Mix FY23

11%

24%

16%

20%

85%

25%

Segment-wise Mix FY23

1% 1%

98%

OEM Exports

Replacement Others

PV 2W CV

Farm Equipment & Off Road Retail Exports

Others

LCV

Note - 100% EV products supplied to OEMs

Q4 & FY23 Standalone Financials

Standalone Financial Highlights

TOTAL INCOME

EBITDA

PBT*

PAT*

152

159

15.7%

13.3%

9.1%

5.1%

6.6%

3.3%

Rs. in Crs.

Q3FY23

Q4FY23

Q3FY23

Q4FY23

Q3FY23

Q4FY23

Q3FY23

Q4FY23

TOTAL INCOME

EBITDA

PBT*

PAT*

140

159

13.3%

7.2%

5.1%

5.5%

3.3%

e c n a m r o f r e P Q o Q

e c n a m r o f r e P Y o Y

Q4FY22

Q4FY23

Q4FY22

Q4FY23

Q4FY22

Q4FY23

Q4FY22

Q4FY23

* Note – PBT and PAT of Q4FY23 includes an exceptional items of Rs 3.44 crores : a. b.

Insurance claim of Rs 6.73 crores received pertaining to a fire incident in earlier year at one of the company’s manufacturing facility Estimated interest liability of Rs 3.29 crores recognised by the company on foreclosure of one authorisation under Export Promotion Capital Goods scheme

Standalone Profit and Loss Statement

Rs. in Crs.

Particulars (Rs Crs)

Total Income

Cost of Goods Sold

Gross Profit

Gross Profit Margin

Total expenses

EBITDA

EBITDA Margin

Depreciation and amortisation expenses

Finance costs

Profit before tax*

Profit before tax Margin

Tax

Profit after tax*

Profit after tax Margin

EPS

Q4FY23 Q4FY22

158.7

139.5

73.7

85.0

61.5

77.9

53.5%

55.9%

63.9

21.1

59.4

18.5

13.3%

7.6

2.0

8.1

5.1%

2.9

5.3

3.3%

1.46

7.0

1.6

10.0

7.2%

2.4

7.6

5.5%

2.11

YoY

14%

-18%

-31%

Q3FY23

151.8

64.7

87.1

57.4%

63.3

23.8

15.7%

7.7

2.2

13.9

9.1%

3.8

10.1

6.6%

2.80

QoQ

-2%

-11%

-41%

-48%

FY23

603.5

254.4

349.2

57.9%

256.9

92.3

FY22

474.6

189.9

284.8

60.0%

211.5

73.3

15.3%

15.4%

30.9

8.1

56.7

9.4%

15.3

41.4

6.9%

11.50

27.0

6.6

39.7

8.4%

9.9

29.7

6.3%

8.25

YoY

27%

23%

26%

43%

39%

* Note – PBT and PAT of Q4 & FY23 includes an exceptional items of Rs 3.44 crores : a. b.

Standalone Balance Sheet

Particulars

ASSETS

Non-current assets

FY23

FY22

Property, Plant and Equipment

256.4

265.8

Investments

Others

55.8

22.1

36.3

13.9

Total Non-current assets

334.3

315.9

Current Assets

Inventories

Trade Receivables

Cash and Bank Balance

Others

Total current assets

TOTAL ASSETS

124.4

102.4

65.2

46.4

6.7

274.5

608.8

57.0

19.6

30.6

246.7

562.6

Particulars EQUITY AND LIABILITIES Equity Equity Share Capital Other Equity Total Equity Liabilities Non current liabilities Borrowings – (Long Term) Others Total Non current liabilities Current liabilities Borrowings – (Short Term) Trade payables Others Total Current Liabilities TOTAL EQUITY AND LIABILITIES

Rs. in Crs.

FY23

FY22

7.2 394.2 401.4

36.6 28.0 64.7

87.1 28.6 26.9 142.7 608.8

7.2 355.9 363.1

42.9 34.0 76.9

80.4 26.0 16.2 122.6 562.6

Q4 & FY23 Consolidated Financials

Consolidated Financial Highlights

TOTAL INCOME

EBITDA

PBT*

PAT*

208

213

13.8%

11.0%

8.9%

4.7%

6.7%

3.7%

Rs. in Crs.

Q3FY23

Q4FY23

Q3FY23

Q4FY23

Q3FY23

Q4FY23

Q3FY23

Q4FY23

TOTAL INCOME

EBITDA

PBT*

PAT*

213

170

10.6%

11.0%

5.4%

4.7%

4.0%

3.7%

e c n a m r o f r e P Q o Q

e c n a m r o f r e P Y o Y

Q4FY22

Q4FY23

Q4FY22

Q4FY23

Q4FY22

Q4FY23

Q4FY22

Q4FY23

* Note – PBT and PAT of Q4FY23 includes an exceptional items of Rs 3.44 crores : a. b.

Consolidated Profit and Loss Statement

Rs. in Crs.

Particulars (Rs Crs)

Total Income

Cost of Goods Sold

Gross Profit

Gross Profit Margin

Total expenses

EBITDA

EBITDA Margin

Depreciation and amortisation expenses

Finance costs

Profit before tax*

Profit before tax Margin

Tax

Profit after tax*

Profit after tax Margin

EPS

Q4FY23 Q4FY22

212.7

111.0

101.7

170.1

88.8

81.3

47.8%

78.3

23.4

63.4

17.9

11.0%

10.6%

7.9

2.2

10.0

4.7%

2.2

7.8

3.7%

2.16

7.1

1.7

9.1

5.4%

2.2

6.9

4.0%

1.91

YoY

25%

30%

10%

13%

QoQ

-18%

-46%

-44%

Q3FY23

208.5

110.5

97.9

47.0%

69.2

28.7

13.8%

7.9

2.3

18.5

8.9%

4.6

13.9

6.7%

3.86

FY23

774.9

388.6

386.2

49.8%

285.8

100.4

13.0%

31.7

8.8

63.3

8.2%

15.4

47.9

6.2%

13.29

FY22

512.6

224.0

288.6

56.3%

219.0

69.6

13.6%

27.3

6.9

34.8

6.8%

9.2

25.5

5.0%

7.09

YoY

51%

34%

44%

82%

87%

* Note – PBT and PAT of Q4 & FY23 includes an exceptional items of Rs 3.44 crores : a. b.

Consolidated Balance Sheet

Particulars

ASSETS

Non-current assets

FY23

FY22

Property, Plant and Equipment

273.9

280.0

Investments

Others

15.3

24.5

14.6

16.8

Total Non-current assets

313.7

311.5

Current Assets

Inventories

Trade Receivables

Cash and Bank Balance

Others

Total current assets

TOTAL ASSETS

163.4

116.1

81.4

54.9

43.6

343.2

656.9

62.7

24.2

52.1

255.2

566.6

Rs. in Crs.

FY23

FY22

7.2 393.2 400.4

36.6

33.6 70.2

95.9 58.4 32.0 186.3 656.9

7.2 348.6 355.8

42.9 36.2 79.1

82.8 31.8 17.1 131.7 566.6

Historical Financials

Financial Highlights

Total Income

EBITDA

PBT*

PAT*

18.1%

13.6%

15.4%

15.3%

10.0%

9.4%

8.4%

9.4%

8.7%

7.5%

6.3%

6.9%

604

475

370

358

Rs. in Crs.

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Total Income

18.2%

18.9%

13.6%

13.0%

9.7%

8.5%

6.8%

8.2%

6.8%

5.0%

6.2%

EBITDA

PBT*

PAT*

775

100

513

371

359

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

* Note – PBT and PAT for FY23 includes an exceptional items of Rs 3.44 crores : a. b.

E N O L A D N A T S

D E T A D I L O S N O C

Key Ratios

E N O L A D N A T S

D E T A D I L O S N O C

Debt / Equity (x)

Current Ratio (x)

Networth (Rs. Cr.)

Fixed Asset Turnover (x)

0.31

0.34

0.31

2.70

2.05

2.01

1.92

309

335

401

363

1.79

1.49

1.22

0.17

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Debt / Equity (x)

Current Ratio (x)

Networth (Rs. Cr.)

Fixed Asset Turnover (x)

0.32

0.31

0.33

2.78

2.08

2.06

1.84

307

331

400

356

0.18

2.51

1.25

1.64

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Annexure

About Us

Sterling Tools Limited (STL)

Sterling Gtake E-mobility Limited (SGEM)

Second largest automotive fastener manufacturer in India with a rich legacy of over four decades

Technical Collaboration with Jiangsu Gtake Electric Company Ltd.

Offers a comprehensive product portfolio consisting of Standard, Chassis, Special and Engine Fasteners

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

Strategically located 4 manufacturing facilities- 3 in Faridabad (Haryana) and 1 in Kolar (Bangalore)

Strategically located 1 manufacturing plant in Faridabad (Haryana) and 2 R&D centre (Faridababd & Bangalore)

STL caters to major OEMs across PVs, CVs, 2Ws, Construction and Farm Equipment segments

Installed capacity of 3,00,000 MCUs per annum being expanded to 5,00,000 MCUs per annum

Business Verticals

FASTENERS

•

STL is a premier producer of cold forged hi-tensile fasteners and supplies to all major auto OEMs

State of the Art manufacturing facilities to provide reliable and high-quality products

Diversified into multiple categories across Fasteners

Long standing relationship with customers over the last four decades

EV Component

•

Sterling Gtake E-mobility Limited (SGEM) is the largest MCU manufacturer for Hi-speed scooters in India

EV is STL’s growth engine in exploring other ventures in the EV powertrain domain

Strong Tech team of 30 engineers focusing on product development and application support

SGEM turned PBT positive in its first year of operations

History & Milestones

2004 Third Plant- Prithla (Palwal)

1982 - 1999 Customer Acquisition Swaraj Tractors Eicher Group Punjab Tractors Escorts Hero HMSI

Ashok Leyland Isuzu motors Maruti M&M Tata Motors

2020 Diversification into EV Components – under 100% subsidiary of Sterling Gtake E-Mobility Ltd. (SGEM)

2019

Fourth Plant Bangalore Plant

1979 Incorporation

1999 Second Plant- Wire drawing unit at Ballabhgarh (Faridabad)

1981 First Plant- DLF (Faridabad)

2023 • Revenue from

MCUs grew 3.5x from Last year

• MCU business

secures more then 15 contracts

• Capacity Expansion

initiated

2021 - 2022

• SGEM secured its first order worth Rs. 600 mn for MCUs from a leading Indian e2W OEM

Pan India Presence

Fasteners

EV Component

Manufacturing Plants: - - - -

Faridabad Ballabhgarh Palwal Bangalore

Warehouses at

Locations

MCU Manufacturing Plant

Faridabad

SGEM Tech Centre Faridabad - Bangalore -

Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness Note – Company’s presence in marked in Red

Product Range - Fasteners

Nuts

Engine Fasteners

Bolts & Screws

Standard / Chassis Fasteners

Special Fasteners

Standards

Key Clientele - Fasteners

r e g n e s s a P

s e l c i h e V

a i c r e m m o C

s e l c i h e V

s t r o p x E

m r a F

t n e m p u q E

STRONGHOLD

o w T

s r e e e h W

1 - R E I T

n o i t c u r t s n o C

Aftermarket: Strong Pan-India presence with 100+ Distributors

MCU Portfolio

HCV & MUV segment

PC & LCV segment

2W LS | HS & 3W segment

Board of Directors

Mr. Anil Aggarwal Chairman-cum Managing Director

Mr. Atul Aggarwal Whole Time Director

38+ years of experience Expertise in Manufacturing, Project management, Administration, Product and Project development and Quality control for auto components

34+ years of experience, Expertise in Marketing, Banking, Finance, Corporate Affairs, Information Technologies and Export Resources Management.

Mr. Chhotu Ram Sharma Director

40+ years of experience, Expertise in Banking & Finance Ex- MD & CEO of Bank of Punjab Ltd.

Ms. Malini Sud Director

35+ years of experience, Expertise in Corporate Laws Founder- Capex Legal

Dr. Triloki Nath Kapoor Director 50+ years of experience, Expertise in Administration, Management, Regulatory Compliances and Governance related issues. Ex- Vice Chancellor and Dean of Punjab University

Mr. Shailendra Swarup Director

50+ years of experience, Expertise in Corporate Law including International Law CEO- Swarup & company

Mr. Rakesh Batra Director

Mr. Jaideep Wadhwa Director

Mr. Akhill Aggarwal Director

30+ years of experience, Expertise in Consulting and Strong knowledge in Regulatory Compliances Ex- EY Partner and National Leader Auto Sector

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

Previous Annual Results

Financial Year

PDF Link

FY22

FY21

FY20

FY19

STL Group :

Investor Relations Advisors :

For further information, please contact

Sterling Tools Limited

CIN: L29222DL1979PLC009668

CIN: U74140MH2010PTC204285

Mr. Pankaj Gupta (Group Chief Financial Officer) Mr. Abhishek Chawla (Company Secretary) pankaj.gupta@stlfasteners.com / abhishekc@stlfasteners.com +91 (0) 129 – 227 0621/25

Mr. Karan Thakker Mr. Aakash Mehta karan.thakker@sgapl.net / aakash.s.m@sgapl.net +91 81699 62562 / +91 98706 79263

www.stlfasteners.com

www.sgapl.net

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Sterling Tools Limited has informed the Exchange about Investor Presentation

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