Steelcast Limited has informed the Exchange about Investor Presentation
AC/2079
28.01.2025
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 attached the Investor Presentation for the Quarter and nine months ended 31st December, 2024 (Q3FY25) 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\2025.01.28\Covering Letter.docx
STEELCAST
INVESTOR PRESENTATION Q3FY25 & 9MFY25
TABLE OF CONTENTS
Company Overview
Financial Performance
Strong Business Model
Outlook & Rationalization Measures
Page 2
01.
Company Overview
Page 3
Steelcast – In a Nutshell
65 Years
Manufacturing Experience
29,000 TPA
Capacity
5 Kgs-2,500 Kgs
Varied Products Weights
9
Sectors Catered Currently
80%
Renewable Power Plants Captive Power Supply
75% Castings shipped as fully machined
shipped as fully machined
Two Star Export House
Competes with Global players
Sand & Shell Casting
Manufacturing Process
4 Production Plants including one Machine shop with latest State of Art Technology Advanced Manufacturing Facility
Page 4 Page ‹#›
Steelcast – Over 6 Decades of Legacy
Company enjoys a Premier Position in the steel Casting Industry in India
Sectors catered
One of the few companies in India and Globally manufacturing structural steelcastings based on sand and shell casting process
Wide range of casting products including Austenitic Manganese Steel and High Chromium ferro alloys
Catering to diverse Industrial sectors like Earth Moving, Mining & Mineral Processing, Locomotives, Rail-Road, construction, Cement and Steel Mfg. etc.
Catering to a host of Original Equipment Manufacturers (OEMs)
Caters to highly reputed multinational clientele both in India and abroad including Fortune 500 companies
Earth Moving
Mining
Mineral Processing
Steel Plants
Cement
Electro Locomotive
Construction
Railway
Defence
37%
Robust 3Y CAGR Revenue in FY24
FY24
₹117 Cr
EBIDTA*
28.6% EBITDA Margin*
₹ 75 Cr PAT
18.3% PAT Margin
* EBITDA and EBITDA margin is excluding Other Income
Page 5 Page ‹#›
02.
Financial Performance (Q3FY25 & 9MFY25)
Page 6
Q3FY25 & 9MFY25 Performance Highlights
5 2 Y F 3 Q
5 2 Y F M 9
Revenue ₹ 101.8 Crs
EBITDA* ₹ 28.3 Crs
PAT ₹ 19.2 Crs
Revenue ₹ 255.4 Crs
EBITDA * ₹ 67.8 Crs
PAT ₹ 45.4 Crs
•
* EBITDA is excluding Other Income
Highlights
The company reported better performance in this quarter on account of supply chain inventory liquidation and improved domestic demand.
Overall profitability improved compared to Q2FY25 driven by higher volumes, Exchange Rate Gain, improved Operational Efficiency and Cost Optimisation.
Steelcast Ltd. has taken major steps in broadening its products, customers & Industry base for its existing & new market set up utilizing its talented & experienced workforce. The company is also dedicated to growing its footprint in the its earnings railway sector, poised significantly. It is also endeavouring to enter into the Ground Engaging tools sector to cater to the replacement market.
to contribute
to
Page 7 Page ‹#›
Q3FY25 Result Highlights
QoQ Highlights
Revenue from Operations (₹ crore)
EBIDTA* (₹ crore) & EBITDA Margin * (%)
PAT (₹ crore) & PAT Margin (%)
101.8
75.9
19.6 25.8%
30.0
25.0
20.0
15.0
10.0
5.0
-
34.1% QoQ
28.3
27.8%
28.0%
27.0%
26.0%
44.7% QoQ
25.0%
24.0%
Q2FY25
Q3FY25
Q2FY25
Q3FY25
YoY Highlights
Revenue from Operations (₹ crore)
EBIDTA * (₹ crore) & EBITDA Margin *(%)
101.8
90.3
12.7% YoY
28.4
28.2
28.0
27.8
27.6
27.4
27.2
27.0
26.8
27.3
30.3%
28.3
27.8%
32.4%
30.4%
28.4%
26.4%
24.4%
22.4%
20.4%
3.6% YoY
19.2
18.9%
13.3
17.5%
Q2FY25
Q3FY25
PAT (₹ crore) & PAT Margin (%)
19.2
18.9%
17.4
19.3%
25.0
20.0
15.0
10.0
5.0
-
19.5
19.0
18.5
18.0
17.5
17.0
16.5
Q3FY24
Q3FY25
Q3FY24
Q3FY25
Q3FY24
Q3FY25
•
* EBITDA and EBITDA margin is excluding Other Income
19.5%
18.5%
17.5%
16.5%
15.5%
14.5%
13.5%
12.5%
11.5%
10.5%
20.2%
19.2%
18.2%
17.2%
16.2%
15.2%
14.2%
44.5% QoQ
10.2% YoY
Page 8 Page ‹#›
Quarterly Profit & Loss Statement
Particulars (Rs.Crs )
Q3FY25
Q3FY24
Y-o-Y
Q2FY25
Q-o-Q
9MFY25
9MFY24
Y-o-Y
Revenue from Operations
Cost of Materials consumed
101.8 90.3
12.7%
75.9
34.1%
255.4
311.4
24.9 18.9
31.3%
18.3
36.2%
58.1
67.7
-18.0%
-14.1%
Changes in Inventories of finished goods & WIP
-6.4 1.6
-503.3%
-6.7
-3.9%
-10.5
13.6
-177.2%
Manufacturing Expense
11.7 9.6
22.1%
9.8
19.3%
30.3
29.8
Power, Fuel & Water Charges
11.8 7.7
53.4%
9.3
27.3%
29.1
33.3
Consumption of Stores & Spares
13.4 11.4
17.7%
11.3
18.6%
34.5
37.0
Total Raw Material and Value Add
55.3 49.2
12.6%
42.0
31.9%
141.5
181.3
Employee Expenses
Other Expenses
12.0 10.3
17.4%
10.4
15.6%
32.6
30.5
6.1 3.6
71.8%
4.0
53.9%
13.4
11.2
1.7%
-12.8%
-6.8%
-22.0%
7.1%
19.7%
EBITDA (Excluding Other Income)
28.3 27.3
3.6%
19.6
44.7%
67.8
88.4
-23.2%
EBITDA % (Excluding Other Income)
27.8%
30.3%
-244 bps
25.8%
203 bps
26.6%
28.4%
-182 bps
Depreciation and Amortisation Expense
Finance Costs
Other Income
PBT
PBT %
Tax Expenses
PAT
PAT %
EPS (₹)
3.2
0.2
0.9
4.4
0.1
0.6
-28.7%
207.3%
55.6%
3.1
0.0
1.5
0.6%
641.5%
-40.6%
9.5
0.4
3.3
13.6
0.8
1.9
25.8 23.4
10.4%
17.9
44.3%
61.2
75.8
25.4%
25.9%
-55 bps
23.6%
178 bps
24.0%
24.3%
6.6 6.0
10.7%
4.6
43.6%
15.8
19.5
19.2 17.4
10.2%
13.3
44.5%
45.4
56.3
18.9%
19.3%
9.49 8.61
-43 bps
10.2%
17.5%
6.57
135 bps
17.8%
18.1%
44.5%
22.45
27.81
-30.3%
-53.6%
73.9%
-19.2%
-37 bps
-19.0%
-19.3%
-29 bps
-19.3%
Page 9 Page ‹#›
Revenue Breakup – 9MFY25
Segment-wise Revenue (%)
Geography-wise Revenue (%)
Total Revenue Rs 255.4 Cr
100%
OEM Sales
49.0%
51.0%
Domestic
Exports
Page 10 Page ‹#›
Quarterly Result analysis
30%
25%
20%
15%
10%
5%
0%
% of Revenue
24.4
24.0
21.0
Q3FY25
Q2FY25
Q3FY24
25.4
25.9
23.6
18.9
19.3
17.5
13.7
11.8
11.4
14.9
13.2
12.6
12.9
11.5
10.6
12.2
11.6
8.5
0.2
0.0
0.1
Materials Consumed
Employee Cost
Finance Cost
Mfg Expense
Power & Fuel
Stores & Spares
Other Exp
PBT
PAT
6.0
5.2
3.9
Page 11 Page ‹#›
Key Highlights for Q3FY25
Operational & Financial Performance
• In Q3FY25, Capacity Utilization increased to 50% compared to 40% in Q2FY25 to meet the growing demand.
• Domestic segment has shown improvement in growth of 53% YoY, contributing 55% to the overall revenue.
• The revenue from operations was at ₹ 101.8 crore, recording a 34.1% growth compared to Q2FY25.
• EBIDTA during the quarter was at ₹ 28.3 crore, a 44.7% growth compared to Q2FY25.
• Our EBITDA margin for the quarter was at 27.8%, well above our guided range of 21-22%.
• PAT during the quarter was at ₹ 19.2 crore, a 44.5% growth compared Q2FY25.
• We continue our efforts to foray into sectors such as Defence, GETs and Railways.
Page 12 Page ‹#›
Five-Year CAGR Snapshot: Unveiling Business Growth Trends
Revenue from operations
EBIDTA (Excluding Other Income)
+19.6%
477
410
302
114
117
+33.1%
64
201
158
37
31
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
EBIT (Excluding Other Income)
96
99
+47.0%
46
PAT
+75.0%
33
71
75
21
18
8
12
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
Page 13 Page ‹#›
03.
Strong Business Model of Steelcast
Page 14
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
Page 15 Page ‹#›
Expanding our footprint to new segments
Foray into New Segments
Railways
Ground Engaging Tools (GETs)
Defence
Page 16 Page ‹#›
Moats
Moats of the company :
Cost Barrier
High margin due to cost plus model
Expertise spanning over decades
Debt Free
Entry barrier due to high replacement cost and Strong R&D and Technological Capabilities.
Customer loyalty
Well Experienced Team & Balanced / professional BOD
Green Energy
Global Footprints - Expected to increase the presence in 18+ countries in the next 1-2 years
Locational Advantage
Page 17 Page ‹#›
Hybrid and Solar Power Plants-Existing
Summary of Hybrid Power Plant
Sr. No.
Offer
Hybrid Capacity MW
Estimated Generation in Cr Units/Yr
Landed Cost Rs/KWH at Consumer Bus
Current cost of power
Saving rate
Total Saving in Cr Rs/Year after fixed charges deduction
1
Group Captive after revised tariff
4.5
2.286
4.22
8.50
4.28
9.78
Summary of Solar Power Plant
Sr. No.
Offer
Solar Capacity MW
Estimated Generation in Cr Units/Yr
Landed Cost Rs/KWH at Consumer Bus
Current cost of power
Saving rate
1
Solar Power Plant
5
0.804
3.17
8.50
5.33
Total Saving/Year (Solar + Hybrid in Group Captive Mode)
Total Saving in Cr Rs/Year after fixed charges deduction
4.29
14.07
Page 18 Page ‹#›
Hybrid and Solar Power Plants-Proposed
Summary of Hybrid Power Plant
Hybrid Capacity MW
Estimated Generation in Cr Units/Yr
Landed Cost Rs/KWH at Consumer Bus
Current cost of power
Saving rate
Total Saving in Rs Cr /Year after fixed charges deduction
Total Investment in Rs Cr.
Payback Period in Years
2.1
0.9306
4.55
8.50
3.95
3.49
2.63
0.75
Summary of Solar Power Plant
Solar Capacity MW
Estimated Generation in Cr Units/Yr
Landed Cost Rs/KWH at Consumer Bus
Current cost of power
Saving rate
Total Saving in Rs Cr /Year after fixed charges deduction
Total Investment in Rs Cr.
Payback Period in Years
Sr. No.
Offer
1
Group Captive after revised tariff
Sr. No.
Offer
1
Solar Power Plant
1.15
0.159
3.16
8.50
5.34
Total (Solar + Hybrid in Group Captive Mode)
0.85
4.33
3.94
6.57
4.64
1.52
Page 19 Page ‹#›
Locational Advantage
Situated in Bhavnagar, Gujarat, which is a power surplus state
Company’s own 66KV power transmission station with 10 MW power available 24*7
The major raw material (scrap) is available with high degree of purity and at competitive price from Bhavnagar & surroundings Rolling mills setup to use scrap from Alang. Asia’s biggest Ship recycling yard, situated just 50 Kms away
Skilled manpower is easily available as per requirement
Well connected with major cities of Gujarat and other places through Rail and Road network
Availability of Natural Gas by Gujarat Gas Limited for all fuel requirements through pipeline
Connectivity to Pipavav Port, which is just 130 Kms away, is one of the most important locational advantages for the company
Connected through water ways with Hazira, Surat, cutting down distance of 370 Kms to 60 Kms. Having regular Ro- Pax ferry services from Ghogha, Bhavnagar to Hazira, Surat
Page 20 Page ‹#›
Presence across the Globe
Canada
USA
Mexico
Denmark Germany
Poland Slovakia
South Korea
India Headquartered
China
Thailand
Singapore
Japan
Brazil
Export Presence
Australia
“Two-Star Export House Status holder”
We have presence in 15 countries, and we expect to increase the same in 18+ 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
Page 21 Page ‹#›
Certifications & Recognitions
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)
An ISO:14001-2015 Company certified by TUV NORD, Germany (for Environmental 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.
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)
Page 22 Page ‹#›
04.
Outlook & Rationalization Measures
Page 23
Building Excellence: Key Pillars of Steelcast's Enduring Success
Reliable quality supplier with long association with marquee customers
Seasoned and experienced management team and skilled work force
China + 1 scenario helping steelcast to be a preferred supplier
Adequate capacity with ramp-up capabilities
Six decades robust experience of surviving and sustaining business cycles
Balanced portfolio of domestic & export customers
Page 24 Page ‹#›
Strategy to Explore Potential Growth Opportunities
Entry in New Geographies
Strengthening business relationship with the existing customers
Adding new sectors
Enhancing component basket through new product development
Provides ready to use/machined parts
Short Term
• Recovery from slow-down is witnessed from
Q3 FY25
• Stable Commodity Prices at the current level • Export demand to bounce back shortly
Future Growth Outlook
Long Term
• Domestic demand to remain at an
elevated level
• Exploring entry into replacement markets
Page 25 Page ‹#›
Safe Harbour
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.
Page 26 Page ‹#›
THANK YOU
Mr. Subhash Sharma, ED & CFO
Email : ss@steelcast.com
Kanav Khanna / Arpit Mundra
Email: kanav.khanna@in.ey.com / arpit.mundra@in.ey.com
Phone Number : +91-9910036240 / +91- 9265185627
Page 27