STERTOOLSNSE31 October 2023

Sterling Tools Limited has informed the Exchange about Investor Presentation

Sterling Tools Limited

STERLING TOOLS LIMITED CIN: L29222DL 1979PLC009668 WORKS : 5-A DLF Industrial Estate Faridabad - 121 003 Haryana India Tel: 91-129-227 0621 to 25/225 5551 to 53 Fax: 91-129-227 7359 E-mail . st�rling@stlfasteners.com website : stlfasteners.com

By NEAPS

National Stock Exchange of India Limited "Exchange Plaza", Bandra-Kurla Complex, Sandra (E) Mumbai-400051

By Listing Centre

General Manager BSE Limited pt Floor, P. J. Towers Dalal Street Mumbai - 400001

Security Code No.: STERTOOLS

Security Code No.: 530759

31st October,2023

Sub: Investor Presentation for Quarter (Q2) and half year (H1) ending on 30th September, 2023

Dear Sir/ Madam,

This is in continuation of our letter dated 26 th October 2023 with respect to intimation of Schedule of Analyst/ Institutional Investor meeting - Conference Call on 01 st November, 2023 at 10:30 a.m.

Further in pursuant to Regulation 30 read with Part A of Schedule Ill of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investor Presentation for the quarter (Q2) and half year (H1) ending on 30th September, 2023 of the Company.

This is for your information and records.

Sincerely Fer STERLING Tn

it ha

Company Seer M. No.: A-34399

Encl.: As above.

�

nee Officer

REGO. OFFICE: 515, DLF Tower-A. Jasola District Centre, New Delhi - 110025 Email :csec@stlfasteners.com

STERLING TOOLS LIMITED INVESTOR PRESENTATION Q2 & H1 FY24

t n e t n o C

f o e b a T

01 01

Q2 & H1 FY24 Business Highlights

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.

Q2 & H1 FY24 Business Highlights

MANAGEMENT COMMENTARY

Commenting on the results and performance for Q2 & H1 FY24, Mr. Atul Aggarwal, Whole time

Director of Sterling Tools Ltd. said:

“The consolidated revenues grew by 22.8% from Rs 353.8 crore in H1FY23 to Rs. 434.4 crore in H1FY24. The

EBITDA has also witnessed a growth of 12.6% to Rs 54.4 crore during the first half of the fiscal year. Our

Sterling Gtake E-Mobility (SGEM) subsidiary contributed 30% of consolidated revenue in H1 FY24 vs 17% in

H1 FY23, an indication of how well this new business has performed for us.

On a standalone basis, the topline grew by 3.7% to Rs. 304.0 crores. For the same period, the production

data for the overall auto industry reflects 1% YoY growth. Within the end-user product sub segments we

have either outpaced or been in line with the industry performance.

The Company is introducing STL ESOP plan 2023 wherein the Company shall grant ESOP, subject to

regulatory approvals. The ESOP Plan is being introduced with a view to provide employees, of the Company

and its subsidiaries, with additional

incentives based on productivity and performance and thereby

motivating them to contribute further to the corporate growth and profitability.

Going ahead, our focus will be to increase capacity utilization thereby enabling the company to achieve

operating leverage. We are currently working on a three-pronged strategy of customer acquisition, higher

content per vehicle and new product development”

CONSOLIDATED FINANCIAL HIGHLIGHTS

TOTAL INCOME

434

354

EBITDA

H1FY23

H1FY24

H1FY23

H1FY24

130

PBT before exceptional items

PAT*

H1FY23

H1FY24

H1FY23

H1FY24

*H1FY23 includes Exceptional gain of Rs. 6.7 crores and Rs. 0.4 crore for H1FY24

Revenue Mix H1FY24

304

STL (Standalone)

SGEM

Rs. in Crs.

STANDALONE FINANCIAL HIGHLIGHTS

Rs. in Crs.

TOTAL INCOME

293

304

EBITDA

H1FY23

H1FY24

H1FY23

H1FY24

PBT before exceptional items

PAT*

H1FY23

H1FY24

H1FY23

H1FY24

*H1FY23 includes Exceptional gain of Rs. 6.7 crores and Rs. 0.4 crore for H1FY24

•

As per SIAM, the Automobile Industry production has grown by ~1% YoY for the period of April-September. STL has outperformed the industry, growing by 3.7% YoY in H1FY24

Low revenue growth led to lower absorption of manufacturing expenses as well as (increased) employee costs

STL (Standalone)

SGEM

End-user segment-wise mix H1FY24

WELL DIVERSIFIED REVENUE MIX

Channel-wise mix H1FY24

10%

27%

14%

86%

22%

23%

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 Total Income Cost of Goods Sold Gross Profit Gross Profit Margin Total Expenses EBITDA EBITDA Margin Depreciation and amortisation expenses Finance costs PBT before exceptional items PBT before exceptional items Margin Exceptional item Profit before tax Profit before tax Margin Tax Profit after tax Profit after tax Margin EPS

Q2FY24 211.5 109.5 102.1 48.3% 75.3 26.7 12.6% 8.3 2.6 15.8 7.5% 0.6 16.4 7.8% 4.0 12.5 5.9% 3.46

Q2FY23 179.1 80.5 98.7 55.1% 73.1 25.6 14.3% 8.0 2.4 15.2 8.5% 6.7 21.9 12.2% 5.3 16.6 9.3% 4.61

YoY (%) 18.1%

3.5%

4.6%

4.0%

-25.2%

-24.9%

QoQ (%) -5.1%

-3.7%

-3.3%

-7.8%

-3.1%

-4.6%

Q1FY24 222.8 116.8 106.0 47.6% 78.4 27.7 12.4% 8.1 2.5 17.1 7.7% -0.2 16.9 7.6% 3.9 13.1 5.9% 3.63

H1FY24 434.4 226.3 208.1 47.9% 153.7 54.4 12.5% 16.4 5.0 33.0 7.6% 0.4 33.4 7.7% 7.8 25.5 5.9% 7.09

H1FY23 353.8 167.1 186.6 52.8% 138.3 48.3 13.7% 15.9 4.3 28.1 8.0% 6.7 34.9 9.9% 8.7 26.2 7.4% 7.27

Rs. in Crs.

YoY (%) 22.8%

11.5%

12.6%

17.2%

-4.3%

-2.5%

Consolidated Balance Sheet

Particulars

ASSETS

Non-current assets

Property, Plant and Equipment

279.9

273.9

Investments

Others

15.3

20.8

15.3

24.5

Total Non-current assets

315.9

313.7

Current Assets

Inventories

Trade Receivables

Cash and Bank Balance

Others

Total current assets

TOTAL ASSETS

171.2

163.4

80.3

77.1

29.6

358.1

674.1

81.4

54.9

43.6

343.2

656.9

Sep-23

Mar-23

Particulars

Sep-23

Mar-23

Rs. in Crs.

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

7.2

411.5 418.8

29.7

35.1 64.7

104.9

57.3

28.4 190.6

674.1

7.2

393.2

400.4

36.6

33.6 70.2

95.9

58.4

32.0 186.3

656.9

STANDALONE PROFIT & LOSS STATEMENT

Q2FY24 Q2FY23 154.7 155.4 60.1 69.2 94.6 86.2 61.2% 55.5% 68.8 63.5 25.8 22.7 16.7% 14.6% 7.8 7.9 2.1 2.0 15.9 12.8 10.3% 8.2% 6.7 0.6 22.7 13.4 14.7% 8.6% 5.4 3.4 17.2 10.0 11.1% 6.4% 4.78 2.76

7.9%

0.4%

-8.9%

-2.0%

-12.1%

YoY (%) Q1FY24 QoQ (%) H1FY24 H1FY23 293.0 4.5% 115.9 177.1 60.4% 129.7 47.4 16.2% 15.6 3.9 28.0 9.5% 6.7 34.7 11.8% 8.6 26.1 8.9% 7.24

148.6 60.7 87.9 59.2% 66.9 21.0 14.1% 7.7 2.2 11.1 7.5% -0.2 10.9 7.3% 2.8 8.1 5.4% 2.25

304.0 129.9 174.1 57.3% 130.4 43.7 14.4% 15.6 4.3 23.9 7.9% 0.4 24.3 8.0% 6.3 18.0 5.9% 5.01

-42.2%

-19.7%

-40.9%

23.0%

22.7%

15.1%

Rs. in Crs.

YoY (%) 3.7%

-1.7%

-7.8%

-14.5%

-29.9%

-30.8%

Standalone Balance Sheet

Particulars

ASSETS

Non-current assets

Property, Plant and Equipment

259.4

256.4

Investments

Others

55.8

16.6

55.8

22.1

Total Non-current assets

331.7

334.3

Current Assets

Inventories

Trade Receivables

Cash and Bank Balance

Others

Total current assets

TOTAL ASSETS

108.6

124.4

70.3

69.1

26.5

274.6

606.3

65.2

46.4

6.7

274.5

608.8

Sep-23

Mar-23

Particulars

Sep-23

Mar-23

Rs. in Crs.

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

7.2

405.1

412.3

25.8

26.9

52.8

92.5

26.5

22.3

141.3

606.3

7.2

394.2

401.4

36.6

28.0

64.7

87.1

28.6

26.9

142.7

608.8

HISTORICAL FINANCIALS

FINANCIAL HIGHLIGHTS

Total Income

EBITDA

PBT before exceptional items

PAT

18.2%

18.9%

15.4%

15.3%

14.4%

10.0%

9.4%

8.4%

8.8%

8.0%

7.8%

6.8%

6.3%

6.9%

5.9%

Rs. in Crs.

604

475

370

358

304

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

Total Income

EBITDA

PBT before exceptional items

PAT

18.1%

13.6%

12.5%

9.7%

8.5%

6.8%

7.7%

8.2%

6.6%

5.0%

6.2%

5.9%

775

100

371

359

513

434

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

*H1FY24 pertains to 6 months of FY24, i.e., April to September 2023

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

0.29

2.70

2.05

2.01

1.92

1.94

309

335

363

401

412

1.22

1.49

2.06

1.79

0.17

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24

FY20

FY21

FY22

FY23 H1FY24*

Debt / Equity (x)

Current Ratio (x)

Networth (Rs. Cr.)

Fixed Asset Turnover (x)

0.32

0.31

0.33

0.32

2.78

0.18

2.08

2.06

1.84

1.88

307

331

356

400

419

2.97

2.51

1.25

1.64

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24*

FY20

FY21

FY22

FY23 H1FY24

FY20

FY21

FY22

FY23 H1FY24*

*on TTM basis

ANNEXURE

The image above represents one of STL (Standalone) facility in Bangalore

At a Glance

STL (Standalone) C

CSGEM

▪

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

▪

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

supplies to all major auto OEMs

India

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

▪ Manufacturing facility in Faridabad and R&D centres in Faridabad &

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

Bangalore

quality products

▪ More than 50 personnel 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

▪

16 business awards, 40 live customer programmes

Strong presence in 2W, 3W and LCV segments

Installed capacity of 3,75,000 MCUs per annum, being expanded to

6,00,000 MCUs per annum

SGEM was EBITDA positive in its first full year of operation

STL Group* C

Total Income Rs. 434 Cr

*Figures are as of H1FY24

EBITDA Rs. 54 Cr

PBT before exceptional items Rs. 33 Cr

PAT Rs. 26 Cr

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

- SGEM business secures 16 contracts - Capacity Expansion initiated

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

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

Fourth Plant Bangalore Plant

03 2023

2021 - 03 2022

032020

03 2019

PRODUCT PORTFOLIO

STL (Standalone)

Standard Fasteners

Special Fasteners

Chasis Fasteners

SGEM

Engine Fasteners

Nuts and Bolts

STANDARDS

2W & 3W Segment

PV & LCV Segment

M & HCV Segment

KEY CLIENTELE - STL (Standalone)

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

STL (Standalone)

Manufacturing Plants: - - - -

Faridabad Ballabhgarh Palwal Bangalore

Warehouses at

Locations

SGEM

Manufacturing Plant: -

Faridabad

2 Tech Centres 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

OUR STRENGTHS

Leading player in the automotive fastener segment

• We are second largest manufacturer of automotive

fastener segment

• Long-standing relationships with major Auto OEM’s

enables high share of business

Largest MCU manufacturer in the country

• SGEM is a pioneer in developing MCU’s for the high-speed scooter, 3W and LCV segments • Engineering and supply chain ecosystem to

support volumes

Partnerships

The group continues to explore partnerships to build technical expertise and leverage growth opportunities which will lead to higher share of wallet in the auto component space

Credibility

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

Experienced Manpower

• Our teams showcase our intrinsic growth

potential

• An experienced management coupled with a young and dynamic workforce will enable our company to excel in newer business areas

Sustainable growth and profitability

Our Company is focused on building a healthy mix of premium priced value-added products with healthy margins at the 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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