SGILNSE7 February 2025

Synergy Green Industries Limited has informed the Exchange about Investor Presentation

Synergy Green Industries Limited

Investor Presentation

Q3 FY 2025

Disclaimer

This presentation has been prepared by Synergy Green Industries Ltd (SGIL) solely for informational purposes. The information contained herein does not constitute or form part of any offer or invitation to sell, or any solicitation of an offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

The information contained in this presentation is provided as of the date hereof and is subject to change without notice. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief, or current expectations of the Company or its officers and may involve risks and uncertainties. Such forward-looking statements are not guarantees of future performance, and actual results may differ materially from those projected. Factors that could cause actual results to differ materially from those indicated in such forward-looking statements include, but are not limited to, changes in global and national economic conditions, changes in market conditions, competitive developments, regulatory changes, and other unforeseen events.

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. Neither the Company nor any of its affiliates, advisers, or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation should not be construed as legal, tax, investment, or other advice. Each recipient should conduct its own investigation and analysis of the Company and the information contained herein, and is advised to seek its own professional advice on the legal, tax, regulatory, financial, and accounting implications of any investment decision.

The distribution of this presentation in certain jurisdictions may be restricted by law, and recipients of this presentation should inform themselves about, and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction.

By attending or receiving this presentation, you agree to be bound by the foregoing limitations.

Industry Overview

Company Profile

Business Performance

Climate Change is not the future but PRESENT…

FLOOD

HEATWAVE

CYCLONE

DROUGHT

…14.5 Millions deaths by 2050 (Equivalent to World War)

Energy transition to Renewables

Global Economy

$112 Tn

(by 2025)

Energy Share

Renewable Growth Drivers

World Electricity Generation by Power Sources (1980-2050)

Units: PWh/yr

70%

• Fights against climate Change

50%

• Competitive Energy Cost over

Conventional fuels

25%

16%

1980 Offshore Wind

1990

2000 Onshore Wind

2010

2020

2030

2040

2050

Solar

Hydropower

Conventional Energy

Renewables will be 70% by 2050

Source: Global Data / DNV.GL, 09/2018

• Energy without depletion of

Natural Resources

• Reduces Oil & Coal imports and Saves Foreign exchange

The World is betting on Renewables

L A B O L G

Net zero Country-wise goals of reaching net zero emissions

Paris Agreement Goal of keeping global warming within 1.5°C

India net zero Achieve net zero by 2070

Climate finance Goal of mobilizing at least $100 billion in climate finance each year

India renewables target Source 50% of energy from renewables by 2030

Country emissions goal Reduce projected emissions by 1 billion tons by 2030

Deforestation Goal of halting & reversing deforestation and land degradation by 2030

India green electricity Install 500 GW of non- fossil fuel electricity capacity by 2030

Country carbon target Reduce carbon intensity by 45% by 2030

N D A “ P A N C H A M R I T ” a t C O P 2 6

India and Global Wind Installations

India Wind Installations

Global Wind Installations

Units: GW

Onshore

India installations in 2024: 3.42 GW

Units: GW Onshore Offshore

India and Global wind installations have grown over 50% during 2023

2.04

2.00

1.12

1.50

71%

3.42

95.3 6.9

88.4

93.6

21.1

77.6 8.8

72.5

68.8

60.8 6.2

54.6

182

171

159

148

50%

116.6 10.8

131

105.8

113

124

130

140

145

2020 Source: MNRE

2021

2022

2023

2024

2019

2020

2021

2022

2023

2024e

2025e

2026e

2027e

2028e

Source: GWEC Wind Report 2024

Growth Drivers

Domestic

- 10 GW of annual wind bids & Wind RPO up to 2030 - Minimum Renewable mandate to DISCOM - Increase in renewables from 145 GW to 500 GW by 2030 with 50% mix, Carbon Neutral by 2070

Global

COP28 adoption to triple annual installation from 117 GW to ~350 GW by 2030 should accelerate global volumes

We are diversified to cater to broader castings market

Country wise Total Castings Demand

Sector wise Major Consumers of Castings

48.79

Total demand: 110 Mn MT

11.49

10.78

5.23

4.95

China

India

USA

Japan

Germany

27.86

Rest of World

Grey Iron

Ductile

Steel

Aluminium

Others

Power

10%

Railways

Auto

32%

Pipes & Fittings

Industrial M/c

Electrical Equip

Machine Tools – 2% 3%

Sanitary

Agricultural M/c

Earthmoving - 2% Pumps & Compressors

Diesel Engine

Valves

Casting Market Size & Growth Forecast

Sources: Indian Institute of Foundrymen reporting, Foundry Planet

Casting market 2023 Global: $ 155 bn India: $ 19.5 bn

Next 10 years growth Global: $ 378 bn @ 8.7% India: @ 10.3%

Wind demand is 1.5 Mn MT (1.4%) and estimated to cross 2.3 Mn MT in next 5 years

Large castings market is estimated to be over 8 Mn MT (7%)

Industry Overview

Company Profile

Business Performance

Brief overview

SGIL is one of India’s leading manufacturers of large-size critical castings for wind and general engineering products.

Product Profile –

• Weight Range: 3 MT to 30 MT

• Materials: SG Iron, Cast Iron and Steel

• Capacity: 30,000 TPA (45,000 TPA in Progress)

We have state of the art facilities

FACILITIES

SOFTWARE

QUALITY

All the Equipment from leading Brands in the world

Best in Class IT

NABL Certified Quality Testing facilities

Quality Certifications

Production Line

ATAS

Simulation

I S O 9 0 0 1 I S O 1 4 0 0 1 I S O 1 8 0 0 1 T P G C e r t i f i c a t i o n I S O 2 7 0 0 1 I S O 5 0 0 0 1

Our Products

Wind Castings

Non-Wind Castings

Wind Castings (70%) + Gear Box Castings (15%)

Rotor Hub

Main Frame

Gear Box PLC

Mining

Plastic Injection Machines

Pumps

Our Customers

50% of Top 10 Global wind OEMs are our customers

Leading Wind OEMs in 2023

Our Customers

16.4

15.4

13.4

10.4

Goldwind

Envision

Vestas

Windey

Mingyang

Sany

Siemens Gamesa

Nordex

Dongfang

8.1

7.9

7.7

6.7

6.0

Clients Onboarding In Progress

Clients Onboarded

Onshore Offshore

Wind

Non Wind

SWOT Analysis

STRENGTH

WEAKNESS

• Ability to Produce large castings up to 30 MT • Established products with Top Global OEMs • Efficient Foundry and achieved growth in 11 out of last 12 years

revenue

OPPORTUNITY

•

Excellent growth opportunities in Renewable’s with high entry barriers India is being converted as manufacturing Hub offers growing casting demand Trade wars/Global Sentiments favors demand

India’s

S W O T

•

Limited Capacity compared to peers (scaling up from 30,000 TPA to 45,000 TPA) Currently 100% machining (~20,000 TPA in-house machining planned)

is outsourced

THREAT

•

80% of business from wind industry (facilities can produce large castings to any other industries)

• Volatile

Commodity

impact profitability (Key commodities are hedged with customers on quarterly basis)

prices

can

Industry Overview

Company Profile

Business Performance

Summary of unaudited financial results 9M FY25

All figures in Rs Crore

Particulars

Quarter Ended (3 Months)

9M Ended (9 Months)

FY 2023-24

Period

31.12.24

30.09.24

31.12.23

31.12.24

30.12.23

(12 Months)

Total Income

Profit before Depreciation, Interest and Tax (PBDIT)

PBDIT Margin

Depreciation & Amortization Expenses

Finance Costs

Profit/(Loss) before Tax

Tax Expenses Deferred Tax Liability/(Asset)

Profit/(Loss) after Tax

97.84

14.65

14.97%

3.60

4.04

7.01

1.07

5.95

10.5% 89.01

45.4%

13.21 359 bps 14.84%

3.24

3.74 61.2% 6.23

2.08 128% 4.15

88.54

265.77

244.81

328.13

8.6%

26%

10.08

38.39

30.47

41.10

11.38%

14.44%

12.45%

12.53%

200 bps

3.13

3.35

4.35

99.1

2.61

9.87

11.20

17.32

1.41

13.07

49%

57%

8.87

9.98

11.62

3.31

8.31

12.09

13.35

15.66

4.09

11.56

Disclaimer: The aforesaid projections/information are prudent estimates of the Company Management based on 9 month unaudited results and present business conditions. As such the members and investors are advised to take note of it before any decision of investments.

Brief overview of financials

Revenue streams (in Rs Cr) and Estimate

PBDIT over the period (in Rs Cr)

Executable Orderbook Projection

450

370

10.5%

266 26

41.1

15.66

26.8 0.69

14.08

13.35

26%

38.39

17.32

30.47

11.62

9.98

11.20

25.2

5.25

11.44

25.3 3.14

11.50

8.50

10.64

11.99

12.09

8.87

9.87

285

31 39

137

290

33 15

200

34 16

31 27

328

245

Are

33 25 46

FY 20-21

FY 21-22

FY 22-23

FY 23-24

9M FY24* 9M FY25* FY 24-25E^ FY 25-26E^

FY 20-21

FY 21-22

FY 22-23

FY 23-24

9M FY 24*

9M FY 25*

Wind Domestic

OEM Export

Direct Export

Gear Box

Non Wind

Depreciation

Interest

PBT

9M Results of FY 24 & FY 25 results are unaudited ^ Executable Orderbook Projection is based on Orderbook Projections/Schedules available with management on the date of publishing and may be subject to change based on market conditions

* 9M Results of FY 24 & FY 25 results are unaudited

9M FY25 recorded a revenue growth of 10.5% over corresponding period of previous year.

During 9M FY25, PBDIT margins expanded by 200 bps from 12.44% to 14.44%. Margins are projected to remain stable.

Cost structure and CAPEX plans

Area

Foundry

Captive renewable power

Capex and margin expansion plan ~Rs 197 Cr

CAPEX

Target

Rs. 60 Crore

Rs. 30 Crore

Capacity expansion 30,000 to 45,000 MT Completion: Q1 FY 26

Increase from 2 MW to 10 MW solar project Completion: Q4 FY 25

In-house machining*

Phase 1: Rs. 67 Crore Phase 2: Rs. 30 Crore

In-house machining facility Phase 1: 10,000 TPA (by Q2 FY 26) Phase 2: 10,000 TPA ( by Q4 FY 26)

Initiatives to triple bottom line (Planet, People, Profit)

Carbon Footprint (Renewables)

Technology Leadership

carbon

Reduce through renewables and achieve 50% green production by 2030

footprint

Process Automation & Digitization

Waste Management

Energy Optimization

•

Thermal reclamation to improve Sand Recycling from 92% to 98%

• Material recycling and waste

management

•

14 MW Dedicated Express feeder

Equipment balancing like 15 MT Furnace

Centralized Energy Monitoring System

Environment goes hand-in-hand with Economics

The Path Ahead

FY 2024-25 Performance Outlook

Medium Term Capacities (MT/Annum)

~13% projected revenue growth for the year, based on present order book status

Export revenue estimated to grow to 25% as against 11.5% in previous year

Presently Raw material prices are stable. PBDIT margins are estimated to expand by 200 bps from present 12.5% levels supported by revenue growth and increase in export business proportion

100,000

75,000

45,000

30,000

15,000

FY 17-18

FY 19-20

FY 24-25

FY 26-27

FY 27-28

During the next 3 years, there is an opportunity for one more greenfield expansion to increase our capacity to 100,000 MT

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Synergy Green Industries Limited has informed the Exchange about Investor Presentation

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