Shiv Aum Steels Limited has informed the Exchange about Investor Presentation

SANJAY NARENDRA BANSALDigitally signed by SANJAY NARENDRA BANSAL Date: 2023.11.21 18:25:04 +05'30'Shiv Aum Steels Limited

H1 FY24 Investor Presentation

Excellence in Solutions, Supply and Service

Disclaimer

This presentation has been prepared by Shiv Aum Steels Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. 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 this Presentation. This Presentation may not 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, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. 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.

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Company Overview

About Us

Amongst India’s Leading Steel Service Centers with a vast range of products  Incorporated in 2002, promoted by Mr. Sanjay Bansal & Mr.

Jatin Mehta

 Corporate office at Mumbai, Maharashtra

Strategically Located business operations  Strategically located in Panvel, Maharashtra with warehouse

of 9,500 sq. mtrs.  Storage Capacity

 Long Steel Products - 7000-8000 Tons  Flat Steel Products – 10,000-20,000 Tons

Specialized Product offerings  Engaged in trading of mild steel

products such as Angles, Beams, Coils, Plates, Channels, Thermo Mechanically Treated Bars and Columns & Rails

Strong Supplier Base  Jindal Steel & Power Ltd., Steel

Authority of India (SAIL), Rashtriya Ispat Nigam Ltd. (RINL) and Vandana Ispat Ltd.(VIL)

Experienced Management Team  Significant experience in Steel Industry  Long term vision and proven ability to achieve

ambitious goals for the Company

1,000+ Reputed and long-term customers  Maharashtra Seamless, Kone Cranes, Dogus Soma JV, L&T STEC JV, IPCA Labs, Thermax, UPL, Phillip Carbon Black, Surpreme Petrochem, Kalyani Technoforge, Enpro Industries, MPIL Steel Structures, RIL, GMR, Atul Ltd. and ITD Cementation etc.

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Journey So Far

 Commenced

operations as a partnership firm by Bansal and Mehta families

 Signed MOU and became the dealers for Steel Authority of India Limited (SAIL)

 Signed MOU and became the dealers for Jindal Steel & Power Limited

 Expanded into

Flat Products by Entering into an MOU with SAIL

 Achieved

turnover of Rs. 200 crs for the first time

 Signed MOU and became the dealers for Rashtriya Ispat Nigam Limited (RINL) and Monnet Ispat

 Listed on SME Platform of NSE

 Highest

turnover & profit until date

1982

1998

2007

2012

2015

2019

2022

1995

2002

2009-10

2014

2016

2020

 Signed MOU

and became the dealers for Vandana Ispat Limited

 Incorporated as a Company under the Companies Act, 1956

 Achieved

turnover of Rs. 100 crs for the first time  Commenced

operations from Taloja Steel Service Center

 Increased range in

 Become

plates and expanded into H R Coils and CHQ Coils with SAIL & JSPL

authorized Distributors for JSPL Panther TMT for Maharashtra

 Added Special Grade & High tensile plates to further improve product range

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Experienced Board of Directors

Sanjay Bansal (Whole Time Director)

 Arts graduate & over 40 years of experience in steel product trading industry  One of the founders of SASL  Looks after sourcing of raw materials domestically as well as overseas and responsible for efficient mobilization of

funds

Jatin Mehta (Whole Time Director)

 Science graduate & over 43 years of experience in steel product trading industry  One of the founders of SASL  Looks after overall sourcing of mild steel products and responsible for diversification of the Company in various

mild steel products

Krishna Mehta (Whole Time Director)

 Over 43 years of experience in steel product trading industry  Oversees sales department and manages customer relationships  His expertise lies in identifying products which are in demand

Rishabh Jatin Mehta (Whole Time Director)

 Holds engineering degree and over 7 years of experience in the industry  Currently works with procurement division of Company and involved in identifying/modifying existing product

base of the Company

Utsav Sanjay Bansal (Whole Time Director)

 Holds bachelor’s degree in financial markets and has been associated with the Company for past 5 year period  Involved in day to day operations with focus on MIS which includes sales, purchase, Debtor Position, Stock Position

and availability of funds

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Key Strengths

Wide Product offerings 

Trading of various mild steel products such as angles, plates, channels and thermo mechanically treated bars Enables company to cater to a larger customer base and also various requests of a single customer

Strategic Locations  Warehouse located in Taloja, near Panvel, which is less than 20 Km from the National Highway 48 (NH-48) - connects Mumbai directly with major cities in the Northern and Southern India

Strong Supplier Base 

Authorized MOU holders for selling steel products of Jindal Steel & Power Ltd., Steel Authority of India (SAIL), Rashtriya Ispat Nigam Ltd. (RINL) and Vandana Ispat Ltd.(VIL) Associations with renowned manufacturers give exclusive rights to market and sell their quality products to our customers

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Experienced Promoter and Management  More than four decades of rich experience in

trading of steel and have established long-standing relations with various suppliers and customers Dedicated and skilled employee base

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Scalable Business Model  Meeting customer demand in different industry

segments comprises optimum utilization of skilled procuring abilities, providing required goods with minimal delays to achieve consequent economies of scale

Established and diversified clientele base  Over 1,000 customers with repeat business which helps to maintain long term working relationship and improve customer retention strategy Customer base from varied industries also helps in managing credit risk from a particular sector

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02

Business Overview

Diversified & Wide range of Products…

Long Steel Products

Flat Steel Products

Angles

Universal Beams

Channels

Plates

Coils

TMT Bars

Rails

Universal Columns

Chequered Sheets

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..With a Unique Business Process..

Purchase of Traded Goods/ Project specific required goods

Storage in Warehouse

Enquiry from Potential Customers

Quantity Confirmation and Quotation

Payment

Dispatch of Order

Confirmation of Order

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…Adding value to the customer…

Producers of Steel

Value Addition Need in Intermediate Services

Supply chain management Stocking Customization

Procurement Technical services & processing Just in Time Delivery

Final Consumer

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..from a State of Art Strategic Location…

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Largest steel service center based in and around Mumbai with associate offices in Nagpur and Raipur

Large godowns at Kalamboli, Taloja and Panvel besides the one at Ready Road

 Maintaining an inventory of over 12,000 to 15,000 Tons at any given time, with a product mix including long and flat products from all top manufacturers in the Country

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.. Combined with a Strong Supplier Base..

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One of India’s major steel producers with a significant presence in sectors like Mining, Power Generations and Infrastructure Categorized as a ‘major steel producer’ and an ‘Integrated Steel Producer’ by JPC(Joint Plant Committee) under the aegis of the Ministry of Steel in the category of ‘Primary Steel Producer’ Operating largest coal – based sponge iron plant in the world with installed capacity of 3 MTPA of steel in Raigarh in Chhattisgarh PANTHER – TMT REBARS – Strong brand with single clear objective to provide emerging Indians with state of the art TMT Rebars for their housing development needs

India’s largest steel producing Company with a turnover of Rs. 49,350 Crore, the company is among seven Maharatnas of the country’s Central Public Sector Enterprises Five integrated steel plants, three special plants and one subsidiary in different parts of the country

 Popularly known as “Vizag Steel” is a leading central PSU under the Ministry of Steel with a turnover of over 10,000 crores  Well known for its quality and customer service and has been supplying various grades of steel for construction of projects of

national importance including Metros, Power Sector, Bridges and several others

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..enables us to serve Marquee Customers across India

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03

Industry Overview

Indian overview of steel industry



India is currently the world’s second largest producer of crude steel, producing 118.20 million tons (mt) crude steel with growth rate 17.9% over the corresponding period last year (CPLY). India’s finished steel consumption is anticipated to increase to 230 MT in 2030-31 from 133.596 MT in FY22.

Key steel producing states in FY22 MT - Top 10 states

27239

18537

19995

16585

16464

12739

14266

12677

10884

8670

12337

8232

10128

7312

6300

5233

3878

3435

Odisha

Jharkhand

Chhattisgarh

Karnataka

Maharashtra

Gujarat

West Bengal

Andhra Pradesh

Punjab

Capacity

Production

Production trend, growth projection and forecast

109

97

111

103

100

88

118

104

126

114

137

123

145

132

154

141

2018

2019

2020

2021

2022

2023E

2024E

2025E

Source : EY Report

Note: Demand – finished steel, Production – crude steel

Production

Demand

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Indian overview of steel industry

Outlook

Major investments

Growth Drivers

 Annual production of steel is anticipated to exceed 300 million tonnes by 2030– 2031



By 2030–31, crude steel production is projected to reach 255 million tonnes at 85% capacity utilisation achieving 230 million tonnes of finished steel production, assuming a 10% yield loss or a 90% conversion ratio for conversion of raw steel to finished steel

 With net exports of 24 million tonnes, consumption is expected to reach 206 million tonnes by years 2030–1931

 As a result, it is anticipated that per-

person steel consumption will grow to 160 kg.



In FY22, demand for steel was expected to increase by 17% to 110 million tonnes, driven by rising construction activities

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67 applications from 30 companies have been selected under Production Linked Incentive (PLI) Scheme for Specialty Steel. This will attract committed investment of Rs. 42,500 crore (US$ 5.19 billion) with a downstream capacity addition of 26 million tonnes and employment generation potential of 70,000

In September 2022, Steel Authority of India Limited (SAIL), a Maharatna PSU, supplied 30,000 tonnes of entire DMR grade specialty steel for the nation’s first indigenously built Aircraft Carrier INS Vikrant

 Growing demand in the construction

industry

 As per the Union Budget 2019-20,

Government’s push to infrastructure sector will increase demand for steel 100% FDI in the steel sector

  Government released National Steel Policy 2017 and laid down a broad strategy for encouraging long term growth for Indian steel industry by 2030-31 Rising investment from domestic and foreign players Increasing number of MoUs signed to boost investment in steel Foreign investment of nearly US$ 40 billion committed in steel sector

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In August 2022, Tata Steel signed an MoU with Punjab Government to set up a steel scrap based electric arc furnace steel plant

 Growth in automobile production is also expected to augment growth in steel production. Automobile production in India stood at 22.93 million units in FY22

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Growth of Steel Service Centers in India Set of 1st SSC in the organized sector by Mahindra in partnership with Mitsubishi Corporation & Nisho Iwai Corporation

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Current Situation Approx. 300,000 firms buy large portion of their metal requirements from SSCs

 Before 1993 SSC

industry was highly fragmented & unorganized

After 1993 with growth of automobile, white goods segment & entry of MNCs, there were stringent quality requirements, tight delivery commitments & expectation of professional service leading to organized SSCs

Estimated that SSCs will process around 25% of Indian steel output with growing demand for smaller batch and shorter lead times

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04

Financial Highlights

Management Comment

Commenting on this, Mr. Sanjay Bansal, Whole time Director, Shiv Aum Steels Ltd said:

“During the first half of this financial year our revenue increased by ~19% YoY mainly due to higher volumes coupled with better realizations. Higher raw material cost offset the impact of lower employee and other expenses, exerting pressure on margins. This first half of the financial year we registered 42,031 tonnes of sales as compared to 37,271 tonnes in the previous corresponding half year.

I am excited to share the recent key developments at Shiv Aum Steel as we embark on a journey of expansion and innovation. Our commitment to growth and adaptability has led us to new horizons, and I am proud of the strides we are making as a company. Expansion has been a key focus for us, and I am pleased to announce that our efforts are coming to fruition. Our team's hard work and dedication have paved the way for us to broaden our presence in the market. By venturing into new territories, we are not only expanding our footprint but also solidifying our position as a leader in the industry.

In a world that is moving towards digital, it is imperative for businesses to evolve and embrace technological advancements. I am pleased to announce that Shiv Aum Steel is not only keeping up with the times, but also forging ahead by marking our course on online platform. This platform is more than just a digital storefront; it represents our commitment to providing our customers with a seamless and efficient experience. Through this platform, we aim to enhance accessibility, streamline processes, and create new avenues for growth.

I want to express my gratitude to each member of the Shiv Aum Steel family for their hard work and dedication. It is your collective efforts that make these milestones possible. As we navigate this exciting phase of expansion and digital transformation, let's continue to collaborate, innovate, and uphold the values that define us.

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Financial Highlights – Half Yearly

Rs. Crore

Income from Operations

Other Operating Income

Total Income

Raw Materials

Employee Cost

Other Expenses

Total Expenditure

EBITDA (Excluding Other Income)

EBIDTA Margin (%)

Other Income

Depreciation

Interest

Profit Before Tax

Tax

Profit After Tax

Profit After Tax Margin%

EPS (In Rs.)

H1 FY23 - 24

H1 FY22 -23

Y-o-Y %

H2 FY22-23

278.82

0.00

278.82

262.88

2.16

2.33

267.37

11.45

4.11%

0.76

0.23

2.62

9.36

2.32

7.04

2.52%

5.18

234.93

0.00

234.93

211.79

3.27

3.95

219.01

15.92

6.78%

0.62

0.28

2.22

14.04

3.55

10.49

4.47%

7.71

260.99

0.00

260.99

247.30

1.12

4.76

253.19

7.80

2.99%

0.69

0.29

2.89

5.31

1.48

3.83

1.47%

3.23

18.68%

(28.08%)

(32.90%)

(32.81%)

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Financial Highlights – Annual

Rs. Crore

Income from Operations

Other Operating Income

Total Income

Raw Materials

Employee Cost

Other Expenses

Total Expenditure

EBITDA (Excluding Other Income)

EBIDTA Margin (%)

Other Income

Depreciation

Interest

Profit Before Tax

Tax

Profit After Tax

Profit After Tax Margin%

Basic EPS in Rs.

FY23

495.93

0.00

495.93

459.09

4.40

8.71

472.20

23.73

4.78%

1.31

0.57

5.11

19.35

5.03

14.32

2.89%

10.53

FY22

406.83

0.00

406.83

371.14

3.68

11.41

386.23

20.59

5.06%

0.71

0.62

4.17

16.52

4.03

12.49

3.07%

9.18

Y-o-Y %

21.90%

15.21%

14.63%

14.71%

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Annual Financial Highlights

Revenue (Rs. Crore)

EBITDA* (Rs. Crore)

371.73

339.15

266.99

495.93

406.83

23.73

20.59

15.34

12.02

7.00

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

PAT (Rs. Crore)

14.32

12.49

5.72

5.07

2.17

FY19

FY20

FY21

FY22

FY23

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Balance Sheet Highlights as on 31st March 2023

As on 30th September 2023

st As on 31 March 2023

Rs. Crore

As on 30th September 2023

st As on 31 March 2023

Rs. Crore

Shareholder’s Funds

Share capital

Reserves & Surplus

Non-current liabilities

Financial Liabilities

Long term borrowings

Long-Term Provisions

Current liabilities

Short Term Borrowings

Trade Payables

Other Current liabilities

Short-term provisions

102.79

13.60

89.19

9.20

9.00

0.20

65.67

58.00

1.60

3.73

2.35

95.75

13.60

82.15

9.20

9.00

0.20

58.05

49.87

0.52

2.67

4.99

Total Equities & Liabilities

177.66

163.01

Total Assets

Non-current assets

Tangible Assets (-) Accumulated Depreciation

Intangible Assets

Non-current Investments

Deferred Tax Assets (Net)

Long-term loans & advances

9.94

4.40

0.00

5.33

0.17

0.05

9.75

4.21

0.00

5.33

0.17

0.05

Current assets

Current Investments

Inventories

Trade receivables

Cash & Cash equivalents

Short-term loans & Advances

167.72

153.26

2.83

80.04

60.97

1.50

22.38

177.66

1.94

89.11

34.76

0.34

27.09

163.01

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Balance Sheet Highlights as on 31st March 2023

RoE(%)

12.3%

15.3%

15.0%

7.6%

3.2%

RoA(%)

9.3%

8.8%

4.4%

4.1%

1.8%

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

RoCE(%)

12.7%

10.3%

6.2%

17.0%

16.4%

FY19

FY20

FY21

FY22

FY23

RoE = Net Profit/Net Worth | RoA = Net Profit/Average Total Assets / RoCE = EBIT/(Shareholders Fund + Total Debt-non current investments)

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05 Way Ahead

Way Ahead

Focus on increasing Operational efficiencies 

Increase in functional output through continuous process improvement, quality control activities, customer service, consistent quality and technological development

 Managerial expertise, trained workforce and modernization of the loading / unloading and delivery process results in consistent high level of

productivity

Leveraging our Market skills and Relationships 

Continuous process of upskilling in our organization allows us to impart to our people an understanding of how best to meet customer and supply needs and expectations

 We plan to increase our customer base by increasing our product range to meet an even more varied requirement, meeting orders in hand

on time and further strengthening our relationships with existing buyers

Optimal Utilization of Resources  We constantly endeavors to improve our service process, and its procurement process to optimize the utilization of resources  We have invested significant resources, and intend to further invest in our activities to develop customized systems and processes to ensure

effective management control

Aspiring to be the largest Service center for steel industry 

Plans to leverage on its reputation and diversified product base by using latest technologies like laser cutting, magnetic lifting which are expected to help the company cater to a greater number of client requirements and further expand our customer base

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Thank you！

Company :

Investor Relations Advisors :

Shiv Aum Steels Limited.

Adfactors PR Pvt. Ltd.

Ms. Aarti Agarwal

cs@shivaumsteels.com

Ms. Savli Mangle / Mr. Rupesh Rege

savli.mangle@adfactorspr.com rupesh.rege@adfactorspr.com

www.shivaumsteels.com

www.adfactorspr.com