Steelcast Limited has informed the Exchange about Investor Presentation
AC/2079
03.08.2023
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 ended 30th June, 2023 (Q1FY24) 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\2023.08.04\Covering Letter.docx
Investor Presentation Q1 FY24
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.
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Q1 FY24 Financial Performance
3
Q1 FY24 Performance Highlights
Q1 FY24 (Y-o-Y)
Highlights
Revenue 119.5 Crs
EBITDA 32.3 Crs
PAT 20.3 Crs
3.3 %
The Revenue from Operations saw a marginal increase of 3.3% on a Y-o-Y basis. The demand in Global market seems to be slower and surging up in domestic market.
34.2 %
The EBITDA margins for Q1FY24 were strong, reaching a peak of 27.0%, marking a YoY increase of 622 basis points. This growth was primarily driven by the leverage we maintained through cost savings in our power expenses following the commissioning of solar and hybrid power plants, reduced input prices during the quarter, optimized expenses, increased customer pricing, and improved operating margin efficiency.
Company has commissioned its 5 MW Solar Power Plant for captive use effective from 30th March,2023.
43.4 %
Hybrid power plant already commissioned on July 8th but due to State Government regulatory issues, the savings have yet not started.
4
Q1FY24 Consolidated Key Highlights
Revenue (Rs. in Crs)
EBIDTA (Rs. in Crs)
PAT (Rs. in Crs)
-1%
+3%
120.3
119.5
115.6
119.5
+4%
+34%
+4%
+43%
31.0
32.3
32.3
19.5
20.3
20.3
24.1
14.1
Q4FY23
Q1FY24
Q1FY23
Q1FY24
Q4FY23
Q1FY24
Q1FY23
Q1FY24
Q4FY23
Q1FY24
Q1FY23
Q1FY24
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
5
FY23 Consolidated Key Highlights
Revenue (Rs. in Crs)
EBIDTA (Rs. in Crs)
PAT (Rs. in Crs)
58%
476.8
+79%
114.0
112%
70.5
302.0
63.7
33.2
FY22
FY23
FY22
FY23
FY22
FY23
Y-o-Y
Y-o-Y
Y-o-Y
6
Geographical Revenue growth (Y-o-Y)
Exports
-1500 bps
63.0%
48.0%
Domestic
+1500 bps
52.0%
37.0%
Q1FY23
Q1FY24
Y-o-Y
Q1FY23
Q1FY24
Y-o-Y
7
Revenue Breakup (Q1FY24)
Segment-wise Revenue (%)
Geography-wise Revenue (%)
Total revenue Rs. 119.5 Cr
100.0%
OEM Sales
48.0%
Total revenue Rs. 119.5 Cr
52.0%
Domestic Exports
8
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 (₹)
Q1 FY24
Q1 FY23
119.5
115.6
Y-o-Y
3.3%
Q4FY23
120.3
Q-o-Q
-0.7%
28.0
6.6
11.0
13.6
13.7
73.0
46.5
10.1
4.0
32.3
28.5
7.9
11.2
16.4
15.6
79.7
35.9
8.2
3.6
24.1
27.0%
20.8%
4.8
0.2
0.3
27.6
23.1%
0.0
7.3
20.3
17.0%
10.0
4.6
0.7
0.3
19.0
16.4%
0.0
4.8
14.1
12.2%
6.99
29.4
0.5
12.1
15.9
18.4
76.2
29.3%
36.7%
5.3%
34.2%
45.5%
43.4%
9.9
3.2
31.0
25.7%
4.4
0.0
0.1
26.2
21.8%
0.0
6.7
19.5
16.2%
9.66
4.3%
5.1%
3.7%
FY23
476.8
121.4
11.9
45.3
65.2
64.9
308.6
168.2
37.0
17.2
114.0
23.9%
18.1
2.4
1.1
94.6
FY22
302.0
95.0
-26.9
34.4
49.5
48.5
200.5
101.6
28.4
9.5
63.7
21.0%
17.7
1.6
0.3
44.7
19.83%
14.81%
0.0
24.0
70.6
0.0
11.5
33.3
14.80%
11.00%
34.8
16.4
Y-o-Y
57.9%
65.6%
79.0%
111.4%
112.1%
9
Balance Sheet Ratios (FY23)
Long term Debt (Rs. Crs.)
Short term Debt (Rs. Crs)
Debt to Equity
28
63.0
13
9
25.0
17.0
14.0
23.6
0.45
0.40
0.25
0.18
0.10
Mar-19
Mar-20
Mar-21
0 Mar-22
0 Mar-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
RoCE
RoE
Working Capital (in Days)
42.3%
37.9%
147
143
26.6%
28.4%
21.7%
23.3%
14.7%
13.2%
6.8%
9.8%
74
74
83
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
10
Company Overview
11
Diversified Business Model catering to Varied OEMs in Different Industries
Existing Segments*
Earth Moving Industry
Mining
Mineral Processing Industry
Electro Locomotive
Steel Plants
Cement
Construction
* Business done is with all OEMs
12
Diversified Business Model catering to Varied OEMs in Different Industries Continued (Future Growth Drivers)
Foray into New Segments*
Railways
Ground Engaging Tools (GETs)
Defence
* Business done is with all OEMs
13
Presence across the Globe
USA
Mexico
Denmark
Germany
Poland
Slovakia
South Korea
China
Japan
India - Headquartered
Thailand
Singapore
Brazil
Australia
Export Presence
“Two-Star Export House Status holder”
Expected to increase the presence in 15+ countries in the next 1 to 2 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
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1. Key Strengths
Experienced Board back by a strong management team
Well Experienced Team
Unique Business Model
Diversified Business Model, catering to varied sectors
5 MW Solar Power Plant & 4.5 MW Hybrid Power Plant for captive consumption
Green Energy
Technology and R&D
Strong R&D and Technological Capabilities. These also are entry barriers in the business
Supplies to Premium Customer Brands
Marquee Customers
Locational Advantage
Plant situated in Bhavnagar, Gujarat has great connectivity with Ports, major cities through road and rail and through water ways Proximity to raw material source
“Two-Star Export House Status holder” Expected to increase the presence in15+ countries in the next 1-2 years
Global Footprints
Manufacturing Capabilities
Developed path breaking products and process which lead to Scale-up of Business, Reduction of cost which resulted in higher profitability
15
Certifications & Recognitions
Sr. No.
Details
1
2
3
4
5
An ISO: 9001-2015 Company certified by TUV NORD, Germany (for Quality Management).
An ISO:45001-2018 Company certified by TUV NORD Germany (For Occupational Health & Safety Management System)
ISO:14001-2015 Company certified by TUV NORD, Germany (for Environmental
An Management).
An EN:9100:2018 D company certified by TUV NORD Germany (for supplying to Aero Space industries)
An NABL (National Accreditation Board for testing Laboratories) certified company for chemical and mechanical testing of parts for Defense application.
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Certifications & Recognitions
Sr. No.
Details
6
7
8
9
10
11
12
Certified by Transportation & Power Generation Equipment Program, USA for “Foundry, “Heat Treating” &”NDT Testing”
Supplier Excellence Recognition (SER)- Certified level certification by Caterpillar Inc. USA
Class A approved foundry by Ministry of Railways, India
R&D Laboratory approved by The Department of Science & Technology, Government of India.
Two-Star Export House Status holder
Authorized Economic Operator (AEO) Tier 1
Accreditation by Association of American Rail Road (AAR)
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Experienced Board of Directors
Mr. Chetan M. Tamboli, Managing Director & CEO
• Aged 63 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 34 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 (Whole Time Director)
• Aged 34 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
Mrs. Vidhi S Merchant (Non-Executive Non- Independent Director) • Aged 31 years, is a Master of Arts & Master of
Education (Psychology)
• She is having experience as career counselor in India and overseas and is involved in various Corporate Social Responsibility (CSR) activities
Mr. Hemant D Dholakia (Independent Non- Executive Director) • Aged 58 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
Mr. Apurva R Shah (Independent Non- Executive Director) • Aged 53 years, he is a Chartered Accountant, Cost &
Works Accountant and Post Graduate in International Accounting and Finance. He Co-heads an accounting firm Rajendra & Co. He is also an Independent Director at Asian Star Company Limited and Fine-Line Circuits Limited
•
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Experienced Board of Directors
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. Harsh R Gandhi (Independent Non-Executive Director)
• Aged 46 years, is a Bachelor of Science in Management and
Owner President Management from Harvard Business School
•
•
Joint Managing Director, GRP Limited, Mumbai manufacturing sustainable materials, focused on using end of life tyre & plastic waste to make raw materials for automotive, electrical, transportation.
Mr. Ashutosh H Shukla (Executive Director)
Aged 60 years, is a is Mechanical Engineer from M S University and Post Graduate Diploma in Business Administration.
•
Has been with STEELCAST since 1997 and presently looking after complete operations of all the Plants apart from looking after HR.
Mr. Kumar Tipirneni (Permanent Invitee )
• Aged 83 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 more than 50 years in the Company.
• He also served as CFO
Mr. Rajiv D Gandhi (Independent Non- Executive Director)
•
•
- Aged 61 years, is a Commerce Graduate from Bombay University and first generation entrepreneur.
- He is CEO and Managing Director of Hester Biosciences Ltd., Asia’s largest single location animal vaccine and health products manufacturing company.
Mr. Subhash R Sharma (Executive Director & CFO) • Aged 56 years, he is a Master of Commerce and a member of the Institute of Cost Accountants of India (ICAI), formerly known as ICWAI..
•
Has been with STEELCAST since 2016 and looking after all the support services besides discharging duties as CFO. He is presently pursuing Company Secretaryship course
19
Future Strategy
20
Rationalization Measures
Initiated a rationalization plan since last 2 years
01
02
03
04
05
Company has set up 5 MW Solar Power Plant in Gujarat region for captive consumption which will bring savings in excess of Rs 4 cr.
Hybrid plant power already commissioned on July 8th but due to State Government regulatory issues, the savings have yet not started.
Both these plants will meet around 80% of the total power requirement at present capacity utilization and balance 20% will be met through the state electricity board.
Reduction in throughput time for processing of castings – thus unlocking of capital from working capital needs
As a result of our continuous efforts to be a one stop solution for our customers, 70% of our turnover is in the form of machined castings.
21
THANK YOU
Company:
CIN: L27310GJ1972PLC002033
Name: Mr. Subhash Sharma, CFO
Email ID: ss@steelcast.net
Investor Relations Advisors:
Mr. Ronak Jain +91 9820950544 ronak.jain@linkintime.co.in
Mr. Rajesh Agrawal +91 9967491495 rajesh.agrawal@linkintime.co.in
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