STERTOOLSNSE3 August 2023

Sterling Tools Limited has informed the Exchange about Investor Presentation

Sterling Tools Limited

CIN : L29222DL1979PLCO09668 STERLING TOOLS LIMITED 5 ® WORKS : 5-A DLF Industrial Estate Faridabad - 121 003 Haryana India s Tel : 91-129+227 0621 to 25/225 5551 to 53 STENE Fax : 91-129-227 7359 E-mail : sterling@stlfasteners.com website : stlfasteners.com By NEAPS By Listing Centre National Stock Exchange of India Limited “Exchange Plaza’, Bandra—Kurla Complex, Bandra (E) Mumbai-400051 General Manager BSE Limited 18' Floor, P. J. Towers Dalal Street Mumbai — 400001 Security Code No.: STERTOOLS Security Code No.: 530759 Date: 024 August 2023 Sub: Investor Presentation for Quarter ended 30 June 2023 Dear Sir/ Madam, This is in continuation of our letter dated 27" April 2023, with respect to intimation of Schedule of Analyst/ Institutional Investor Meeting —- Conference Call on 03 August 2023 at 10:30 a.m. Further, in pursuance to the Regulation 30 read with Part A Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, please find enclosed herewith Investor presentation for the quarter ended on 30 June 2023. This is for your information and records. Sincerely - For STERLING) OOL LIMITED © ig ~ bhishek (hy ary & Compliance Officer Encl.: As above. REGD. OFFICE : 515, DLF Tower-A, Jasola District Centre, New Delhi - 110025 Email :csec @stlfasteners.comSTERLING TOOLS LIMITED INVESTOR PRESENTATION Q1FY24

t n e t n o C

f o e b a T

01 01

Business Overview

Financial Highlights

03 03

Historical Financials

Annexure

Page No.

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

At a Glance

▪

Fasteners Business C

EV Component Business C

STL is a premier producer of cold forged hi-tensile fasteners and

supplies to all major auto OEMs

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

▪

Sterling Gtake E-mobility Limited (SGEM) : Largest MCU manufacturer

for Hi-speed scooters in India

1 manufacturing plant in Faridabad and 1 R&D centre each in Faridabad

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

& Bangalore

quality products

▪ More than 50 people in Engineering

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

Farm Equipment segments

Long standing relationship with customers over the last four decades

▪

Awarded 16 business awards

40 live customer programmes

Strong presence in 2W, 3W and LCV

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

6,00,000 MCUs per annum

SGEM achieved positive PAT in its first year of operations

STL Group* C

Total Income 222.8 cr

*Figures are as of Q1FY24

EBITDA 27.7 cr

PBT 16.9 cr

PAT 13.1 cr

MANAGEMENT COMMENTARY

Commenting on the results and performance for Q1 FY24, Mr. Atul Aggarwal, Whole time

Director of Sterling Tools Ltd. said:

"We are pleased to share that the overall growth has been on a positive trajectory, with a

topline growth of 27.6% and PAT growth of 36.4% on a YoY basis. Overall auto-industry

growth has been tepid and segments like CV and tractors have witnessed de-growth.

However, we have reported a revenue growth of 7.4% YoY in our fasteners business.

The EV industry witnessed a growth of 77% during the quarter gone by whereas we have

reported a staggering growth of 135% in our EV component segment on a YoY basis. Our EV

business is expanding rapidly and revenue has nearly doubled in Q1FY24 over the

corresponding quarter last year. We remain optimistic about our plans for FY24 both for

fasteners and EV component business.”

CONSOLIDATED FINANCIAL HIGHLIGHTS

TOTAL INCOME

213

223

175

Rs. in Crs.

EBITDA

13.0%

11.0%

12.4%

Q1FY23

Q4FY23

Q1FY24

Q1FY23

Q4FY23

Q1FY24

PBT*

PAT*

Q1FY23

Q4FY23

Q1FY24

Q1FY23

Q4FY23

Q1FY24

* Note – Estimated interest liability of Rs.20.39L recognised by the company on foreclosure of its EPCG License

WELL DIVERSIFIED REVENUE MIX

Fasteners Business

EV Component Business

Channel-wise Mix Q1FY24

10%

86%

Segment-wise Mix Q1FY24

10%

15%

24%

27%

21%

Segment-wise Mix Q1FY24

98%

OEM Exports

Replacement Others

PV 2W CV

Farm Equipment & Off Road Retail Exports

Others

3W & Others*

Note - 100% EV products supplied to OEMs

*3W & others includes sales in EV

FINANCIAL HIGHLIGHTS

CONSOLIDATED PROFIT & LOSS STATEMENT

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

Rs. in Crs.

Q1FY24

Q1FY23

222.8

116.8

106.0

47.6%

78.4

27.7

174.6

86.7

88.0

50.4%

65.2

22.7

12.4%

13.0%

8.1

2.5

16.9

7.6%

3.9

13.1

5.9%

3.63

7.9

1.9

12.9

7.4%

3.3

9.6

5.5%

2.66

YoY

27.6%

20.5%

21.6%

31.0%

36.4%

Q4FY23

212.7

111.0

101.7

47.8%

78.3

23.4

11.0%

7.9

2.2

10.0

4.7%

2.2

7.8

3.7%

2.16

QoQ

4.8%

4.2%

18.2%

69.7%

68.0%

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

* Note – Estimated interest liability of Rs.20.39L recognised by the company on foreclosure of its EPCG License

STANDALONE PROFIT & LOSS STATEMENT

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

Rs. in Crs.

Q1FY24

Q1FY23

148.6

60.7

87.9

59.2%

66.9

21.0

138.3

55.9

82.5

59.6%

60.9

21.6

14.1%

15.6%

7.7

2.2

10.9

7.3%

2.8

8.1

5.4%

2.25

7.8

1.8

12.0

8.7%

3.2

8.9

6.4%

2.46

YoY

7.4%

6.6%

-2.6%

-9.2%

-8.6%

QoQ

-6.3%

3.5%

-0.3%

33.9%

53.8%

Q4FY23

158.7

73.7

85.0

53.5%

63.9

21.1

13.3%

7.6

2.0

8.1

5.1%

2.9

5.3

3.3%

1.46

FY23

603.5

254.4

349.2

57.9%

256.9

92.3

15.3%

30.9

8.1

56.7

9.4%

15.3

41.4

6.9%

11.50

* Note – Estimated interest liability of Rs.20.39L recognised by the company on foreclosure of its EPCG License

HISTORICAL FINANCIALS

FINANCIAL HIGHLIGHTS

E N O L A D N A T S

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

Total Income

EBITDA

PBT*

Rs. in Crs.

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

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

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

The image above represents our fasteners facility in Bangalore

HISTORY & MILESTONES

Incorporation

First Plant- DLF (Faridabad)

Customer Acquisition

Swaraj Tractors Eicher Group of Punjab Tractors Escorts Hero HMSI

Ashok Leyland Isuzu motors Maruti M&M Tata Motors

Second Plant- Wire drawing unit at Ballabhgarh (Faridabad)

Third Plant- Prithla (Palwal)

03 1979

1981 03

1982 - 03 1999

1999 03

2004 03

- MCU business secures more than 15 contracts - Capacity Expansion initiated

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

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

Fourth Plant Bangalore Plant

03 2023

2021 - 03 2022

032020

03 2019

PRODUCT PORTFOLIO

FASTENERS

Standard Fasteners

Special Fasteners

Chasis Fasteners

EV COMPONENT / MCU

Engine Fasteners

Nuts and Bolts

STANDARDS

2W & 3W Segment

PV & LCV Segment

M & HCV Segment

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

PAN INDIA PRESENCE

Fasteners

Manufacturing Plants: - - - -

Faridabad Ballabhgarh Palwal Bangalore

Warehouses at

Locations

EV Component

MCU Manufacturing Plant: -

Faridabad

2 SGEM R&D 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 Rose

OUR STRENGTHS

Leading player in the automotive fastener segment

Credibility

• 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 business

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

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

To partner and explore possible synergies

• To explore growth opportunities and leverage strategic partnerships which will lead to higher share of business in the auto component space

Experienced Manpower

• 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

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

BOARD OF DIRECTORS

Mr. Anil Aggarwal, Chairman-cum Managing Director

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

Mr. Atul Aggarwal, Whole Time Director

Dr. Triloki Nath Kapoor, Director

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.

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

Ms. Malini Sud, Director

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

Mr. Shailendra Swarup, Director

Mr. Rakesh Batra, Director

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

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

Mr. Jaideep Wadhwa, Director

30+ years of experience, Expertise in International Business Management, Auto & Industrial Component Industry Knowledge, Ex- MD in the Ingersoll Rand

Mr. Akhill Aggarwal, Director

10+ years of experience, Expertise in Automobile business and other allied services related to the sector

PREVIOUS ANNUAL RESULTS

Financial Year

PDF Link

FY23

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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