Sterling Tools Limited has informed the Exchange about Investor Presentation
STERLING TOOLS LIMITED CIN : 129222DL1979PLC009668 WORKS : 5-A DLF Industrial Estate Faridabad - 121 003 Haryana India Tel : 91-129-227 0621 t0 25/225 5551 to 53 Fax : 91-129-227 7359 E-mail : starling@stifasteners.com website : stifasteners.com
A " Tsrene®
By NEAPS
National Stock Exchange of India Limited “Exchange Plaza”, Bandra—Kurla Complex, Bandra (E) Mumbai-400051
By Listing Centre
General Manager BSE Limited 1t Floor, P. J. Towers Dalal Street Mumbai — 400001
Security Code No.: STERTOOLS
Security Code No.: 530759
Date: 04" February 2025
Sub: Investor Presentation for third quarter and nine months ended 315t December 2024
Dear Sir/ Madam,
This is in continuation of our letter dated 30" January 2025 with respect to the intimation of schedule of Analyst / Institutional Investor Meeting- Earnings Conference Call to be held on Wednesday, 05" February 2025 at 11:00 a.m.
In this regard, pursuant to Regulation 30 read with Part A of Schedule IIl of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Investor Presentation for third quarter and nine months ended 315t December 2024 of the Company.
This is for your information and records.
Sincerely I-or Sterling Tools Limiled
R, %”%ML ./Abhishek Chawla
Company Secretary & Compliance Officer M. No. A 34399
Encl.: As above.
REGD. OFFICE : DJ-1210, 12th Flnor, DLF Tower-8 Jasola Distric Centre, New Delhi - 110025
DRIVING TRANSFORMATION, POWERING THE FUTURE
Sterling Tools Limited
Investor Presentation
February 2025
TABLE OF CONTENTS
1
2
3
4
Q3 & 9M FY25 Business Highlights
Financial Highlights
Historical Financials
Annexure
Page No.
04
10
13
17
DRIVING TRANSFORMATION, POWERING THE FUTURE
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.
DRIVING TRANSFORMATION, POWERING THE FUTURE
Q3 & 9M FY25 Business Highlights
Management Commentary
Commenting on the results and performance for Q3 & 9M FY25, Mr. Atul Aggarwal,
Managing Director of Sterling Tools Ltd. said:
“During 9M FY25, our consolidated total income grew by 24.5% to Rs 832.3 crore on a YoY basis. The topline growth is mainly driven by SGEM which witnessed a revenue uptick of 56% to Rs 345.9 crore in 9M FY25 against corresponding period last year. The company registered an Adjusted EBITDA growth of 25.8% YoY to Rs 105.9 crore in 9M FY25. Our standalone business continues to exhibit steady performance with topline growth of 8.9% YoY in 9M FY25. The growth is attributable to a higher share of business with existing customers as well as addition of new customers.
We have a deep commitment to the EV industry and to localization. We believe there are several unserved product opportunities in the EV space that we can address. With this thought process, we have announced multiple strategic collaborations in last few quarters to address dynamically evolving needs of the EV industry. We have signed a MOU with MOTIVELINK Co., Ltd (Erstwhile Yongin Electronics Co. Ltd) to manufacture entire portfolio of magnetic components required for various applications in India’s EV and electronics manufacturing industry. Furthermore, the company through its subsidiary Sterling Tech-Mobility Limited (STML) has partnered with China’s Kunshan GLVAC Yuantong New Energy Technology Co. Ltd to manufacture HVDC Contactors and Relays in India. Recently, STML has also partnered with Zhejiang Meishuo Electric Technology Co. Ltd., China to locally manufacture Latching Relays for the energy sector, industrial grids, and other applications in India. These associations will drive import substitution and will align with the Atmanirbhar Bharat vision of Government of India and help in building a self-reliant ecosystem for the Electric Vehicles, Hybrid Electric Vehicles, Industrial and White Goods Industries.
Moving ahead, we shall continue with our focus towards exploring new growth frontiers and delivering sustainable performance through both organic as well as strategic initiatives.”
DRIVING TRANSFORMATION, POWERING THE FUTURE
5
Consolidated Financial Highlights
Total Income
Adjusted EBITDA*
262.7
234.0
668.3
832.3
12.0%
12.1%
12.6%
12.7%
105.9
28.1
31.7
84.2
TOTAL INCOME MIX 9M FY25
Rs. in Crore
Q3 FY24 Q3 FY25
9M FY24
9M FY25
Q3 FY24 Q3 FY25
9M FY24 9M FY25
345.9
PBT before exceptional items
PAT
486.4
7.5%
6.8%
7.6%
7.8%
64.7
5.8%
5.2%
5.9%
5.9%
49.5
17.5
17.8
50.5
13.6
13.6
39.1
STL (Standalone)
SGEM
Q3 FY24 Q3 FY25
9M FY24
9M FY25
Q3 FY24 Q3 FY25
9M FY24
9M FY25
*Adjusted EBITDA excludes ESOP expenses
DRIVING TRANSFORMATION, POWERING THE FUTURE
6
Standalone Financial Highlights
Total Income
EBITDA
142.7
155.1
446.7
486.4
14.9%
13.2%
21.3
20.5
14.5%
64.9
14.4%
69.9
Rs. in Crore
Q3 FY24
Q3 FY25
9MFY24
9MFY25
Q3 FY24
Q3 FY25
9M FY24
9M FY25
PBT before exceptional items
PAT
8.2%
7.5%
11.7
11.6
8.0%
35.6
8.9%
43.1
6.2%
5.4%
6.0%
6.5%
8.8
8.3
31.6
26.8
Q3 FY24
Q3 FY25
9M FY24
9M FY25
Q3 FY24
Q3 FY25
9M FY24
9M FY25
DRIVING TRANSFORMATION, POWERING THE FUTURE
7
Well Diversified Revenue Mix
STL (Standalone)
SGEM
Channel-wise mix 9M FY25
End-user segment-wise mix 9M FY25
End-user segment-wise mix 9M FY25
10%
2%
2%
10%
30%
14%
17%
88%
27%
OEM Exports Replacement
PV 2W CV
Farm Equipment & Off Road Retail Exports
3%
3%
94%
2W 3W LCV/HCV
Note - 100% EV products supplied to OEMs
DRIVING TRANSFORMATION, POWERING THE FUTURE
8
STL Group - Straddling the EV Value Chain
Legacy Business Legacy Business
New businesses to drive growth
Focus Areas
Partnership with Jiangsu Gtake Electric Co. Ltd.
• Largest MCU manufacturer in India having strong presence
in 2W, 3W and LCV / HCV segments
• SGEM’s 9M FY25 revenue increased by 56% over 9M FY24
Sterling Tools Limited
A premier manufacturer of cold forged, hi-tensile fasteners supplying to all major auto OEMs
MoU with MOTIVELINK Co., Ltd (Erstwhile Yongin Electronics Co. Ltd)
• Will manufacture entire portfolio of magnetic components
for India’s EV and electronics manufacturing industry
• The MoU will help STL to strengthen its EV component
portfolio, its presence & offerings with a revenue potential of ~Rs. 200 crore p.a. in the next 5 years
Partnership with Kunshan GLVAC Yuantong New Energy Technology Co., Ltd. (GLVAC YT)
• STL through its subsidiary STML, partnered with GLVAC
• To manufacture HVDC Contactors and Relays in India with a
revenue potential of ~Rs. 250 crore p.a. by FY30
• To offer comprehensive product portfolio and increase Sterling Group’s brand equity
• Expanding footprint beyond automobile industry
• Well positioned to
capture incremental market share via leveraging our core strengths
Partnership with Zhejiang Meishuo Electric Technology Co., Ltd. (Meishuo)
• STL through its subsidiary STML, partnered with Meishuo
• To manufacture Latching Relays for the energy sector, industrial grids, and other applications in India with a revenue potential of around ~Rs. 200 crore p.a. by FY30
DRIVING TRANSFORMATION, POWERING THE FUTURE
9
FINANCIAL HIGHLIGHTS
Consolidated Profit & Loss Statement
Particulars
Total Income
Cost of Goods Sold
Gross Profit
Gross Profit Margin
Total Expenses
Adjusted EBITDA*
Adjusted EBITDA Margin
ESOP Expenses
EBITDA
EBITDA Margin
Depreciation and amortisation expenses
Finance costs
PBT before exceptional items
PBT before exceptional margin
Exceptional item
Profit before tax
Profit before tax Margin
Tax
Profit after tax
Profit after tax Margin
EPS
*Adjusted EBITDA excludes ESOP expenses
Rs. in Crore
Q3FY25
Q3FY24
YoY (%)
Q2FY25
QoQ (%)
9MFY25
9MFY24
YoY (%)
262.7
133.4
129.2
49.2%
97.6
31.7
12.1%
3.1
28.6
234.0
120.9
113.1
48.3%
85.0
28.1
12.0%
0.0
28.1
10.9%
12.0%
8.4
2.4
17.8
6.8%
0.0
17.8
6.8%
4.2
13.6
5.2%
3.78
8.4
2.1
17.5
7.5%
0.0
17.5
7.5%
3.9
13.6
5.8%
3.77
12.3%
14.3%
13.0%
2.0%
1.4%
1.4%
0.1%
285.9
138.5
147.4
51.5%
110.2
37.2
13.0%
3.1
34.1
11.9%
8.7
2.4
23.1
8.1%
0.0
23.1
8.1%
5.6
17.5
6.1%
4.85
-8.1%
-12.3%
-14.8%
-16.1%
-22.9%
-22.9%
-22.2%
832.3
421.7
410.6
49.3%
304.7
105.9
12.7%
9.1
96.8
11.6%
24.8
7.2
64.7
7.8%
0.0
64.7
7.8%
15.3
49.5
5.9%
13.74
668.3
347.1
321.2
48.1%
237.0
84.2
12.6%
2.0
82.2
12.3%
24.8
6.9
50.5
7.6%
0.4
50.9
7.6%
11.8
39.1
5.9%
10.86
24.5%
27.8%
25.8%
17.8%
28.2%
27.2%
26.5%
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11
Standalone 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
Profit before exceptional items
Profit before exceptional items Margin
Exceptional item
Profit before tax
Profit before tax Margin
Tax
Profit after tax
Profit after tax Margin
EPS
Rs. in Crore
Q3FY25
Q3FY24
YoY (%)
Q2FY25
QoQ (%)
9MFY25
9MFY24
YoY (%)
155.1
64.0
91.1
142.7
53.4
89.3
58.7%
62.6%
70.6
20.5
13.2%
7.6
1.3
11.6
7.5%
0.0
11.6
7.5%
3.3
8.3
5.4%
2.31
68.0
21.3
14.9%
7.9
1.7
11.7
8.2%
0.0
11.7
8.2%
2.9
8.8
6.2%
2.44
8.7%
1.9%
-4.0%
-1.1%
-1.1%
-5.4%
168.4
66.0
102.3
60.8%
77.0
25.3
15.0%
7.8
1.4
16.1
9.5%
0.0
16.1
9.5%
4.2
11.9
7.1%
3.30
-7.9%
486.4
-11.0%
193.0
293.3
446.7
183.2
263.4
-19.2%
-27.8%
-27.8%
-30.1%
60.3%
59.0%
223.5
69.9
198.5
64.9
14.4%
14.5%
22.3
4.4
43.1
23.4
5.9
35.6
8.9%
8.0%
0.0
43.1
8.9%
11.5
31.6
6.5%
8.78
0.4
36.0
8.1%
9.2
26.8
6.0%
7.45
8.9%
11.4%
7.6%
21.1%
19.7%
17.8%
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12
HISTORICAL FINANCIALS
Consolidated Financial Highlights
Rs. in Crore
Total Income
Adjusted EBITDA*
938.5
832.3
774.9
512.6
358.5
18.1%
13.6%
13.0%
12.4%
12.7%
100.4
116.3
105.9
64.8
69.6
FY21
FY22
FY23
FY24
9M FY25
FY21
FY22
FY23
FY24
9M FY25
PBT before exceptional items
PAT
8.5%
6.8%
7.7%
7.7%
7.8%
6.6%
5.0%
6.2%
5.9%
5.9%
59.9
71.8
64.7
47.9
55.4
49.5
30.3
34.8
24.4
25.5
FY21
FY22
FY23
FY24
9M FY25
FY21
FY22
FY23
FY24
9M FY25
*Adjusted EBITDA excludes ESOP expenses
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14
Standalone Financial Highlights
Total Income
EBITDA
603.5
613.7
18.9%
15.4%
15.3%
14.8%
14.4%
474.6
486.4
358.1
67.5
73.3
69.9
92.3
90.6
Rs. in Crore
FY21
FY22
FY23
FY24
9MFY25
FY21
FY22
FY23
FY24
9MFY25
PBT before exceptional items
PAT
9.4%
8.4%
8.8%
8.4%
8.9%
6.8%
6.3%
6.9%
6.3%
6.5%
33.6
39.7
53.3
51.7
43.1
24.0
29.7
41.4
38.8
31.6
FY21
FY22
FY23
FY24
9MFY25
FY21
FY22
FY23
FY24
9MFY25
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15
Key Ratios
Debt / Equity (x)
Current Ratio (x)
Networth (Rs. Cr.)
Net Fixed Asset Turnover (x)
0.31
0.34
0.31
0.23
0.19
2.05
2.01
1.92
2.25
2.46
334.6
363.1
401.4
431.6
452.0
2.23
2.39
2.52
1.76
1.45
FY21
FY22
FY23
FY24 H1 FY25
FY21
FY22
FY23
FY24 H1 FY25
FY21
FY22
FY23
FY24 H1 FY25
FY21
FY22
FY23
FY24 H1 FY25
Debt / Equity (x)
Current Ratio (x)
Networth (Rs. Cr.)
Net Fixed Asset Turnover (x)
0.32
0.31
0.33
0.26
0.27
2.08
2.06
1.84
2.04
2.13
331.5
355.8
400.4
447.1
480.0
3.63
3.28
2.70
1.81
1.38
E N O L A D N A T S
D E T A D I L O S N O C
FY21
FY22
FY23
FY24 H1 FY25
FY21
FY22
FY23
FY24 H1 FY25
FY21
FY22
FY23
FY24 H1 FY25
FY21
FY22
FY23
FY24 H1 FY25
H1 FY25 on TTM basis
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16
ANNEXURE
At A Glance
STERLING GROUP One of the leading Auto Component Player with a legacy of more than 4 decades
1
Sterling Tools Limited (STL) is a premier manufacturer of cold forged, hi-tensile fasteners and supplies to all major auto OEMs
2
STL’s state of the art manufacturing facilities to provide reliable and high-quality products
3
STL caters to major OEMs across PVs, CVs, 2Ws, Construction and Farm Equipment segments
Rs. 939 Cr.* Total Income
One of the largest Manufacturer of Fasteners & MCUs
4 Manufacturing plants for Fasteners
4
Sterling Gtake E-mobility Limited (SGEM) is the largest MCU manufacturer in India having strong presence in 2W, 3W and LCV / HCV segments
700+ Employees
1 HVDC & Latching Relay plant under commissioning in Bengaluru
1 Manufacturing plant for MCU 2 Power Electronics and Application Engineering Tech centers
*Consolidated STL Group turnover for FY24
5
SGEM looking to add additional EV Powertrain and Power Electronics components to the portfolio
6
Incorporated a subsidiary Sterling Tech-Mobility Limited (STML) to manufacture HVDC Contactor and power transmission solutions
7
STML will start production in its new facility in Bengaluru in Q2 FY26
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18
History & Milestones
1999 - 2019
▪ Second Plant - Wire
drawing unit at Ballabhgarh (Faridabad)
▪ Third Plant - Prithla
(Palwal)
▪ Fourth Plant - Kolar
(Bangalore)
2020 - 2023
▪ Diversification into EV Components – through 100% subsidiary Sterling Gtake E-Mobility Ltd. (SGEM)
▪ SGEM’s first full year of operations with positive Net Profit
▪ SGEM secured
business from 20 customers
1979-1981
▪ STL Incorporation
▪ First Plant - DLF
(Faridabad)
1982 - 1999
Customer Acquisition ▪ Maruti Suzuki ▪ M&M ▪ HMSI ▪ Hero Moto Corp ▪ Suzuki Motorcycle ▪ Swaraj Tractors ▪ Tata Motors ▪ Ashok Leyland ▪ Volvo Eicher ▪ Daimler India ▪ Cummins ▪ SML Isuzu ▪ CNH ▪ Escorts ▪ Swaraj Engines
2024 - 2025
▪ SGEMs MCU capacity enhanced
to 6,00,000 units/pa
▪ Signed MoU with MOTIVELINK Co., Ltd (Erstwhile Yongin Electronics Co. Ltd) to manufacture magnetic components for automotive and electronic industries
▪ Sterling tools through its wholly owned subsidiary Sterling Tech- Mobility Ltd (STML) partners with GLVAC YT to manufacture advance high voltage DC contactors and relays in India for electric and hybrid vehicles
▪ Sterling tools through its wholly owned subsidiary Sterling Tech- Mobility Ltd (STML) partners with China’s Zhejiang Meishuo Electric Technology Co., Ltd for power transmission solutions in India
▪ New facility for HVDC Contactors under commissioning in Bengaluru
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19
Product Portfolio
Quality & Reliability
Certified Products
Wide Range Applications
Competitive Pricing
Preferred supplier to OEM
AXLE BOLTS
ENGINE BOLTS
SPECIAL FASTENERS
INDIAN STANDARDS
AMERICAN STANDARDS
S D R A D N A T S
STANDARD BOLTS
WHEEL BOLTS
SEALANT PARTS
GERMAN STANDARDS
JAPANESE STANDARDS
BRITISH STANDARDS
2W & 3W SEGMENT
LCV SEGMENT
M & HCV SEGMENT
L T S
) E N O L A D N A T S (
M E G S
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20
Key Clientele – STL (Standalone)
r e g n e s s a P
s e l c i h e V
l
a i c r e m m o C
s e l c i h e V
1
-
r e T
i
m r a F
t n e m p u q E
i
o w T
l
s r e e e h W
s t r o p x E
n o i t c u r t s n o C
The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
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21
Aftermarket: Strong Pan-India presence with 100+ Distributors
Pan India Presence
STL (STANDALONE)
4 Manufacturing Plants • Faridabad • Ballabhgarh • Palwal • Bengaluru 18 Warehouses at 14 Locations
SGEM
1 Manufacturing Plant • Faridabad
2 Tech Centres • Faridabad • Bengaluru
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
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22
Our Key Strengths
Growth through Partnerships
STL has leveraged strategic partnerships to tap growth opportunities and drive higher share of business in the auto component space in EV, ICE and future green technologies
Leading player in the automotive fasteners business
STL is one of the leading player in the automotive fasteners business
A long-standing relationship with major Auto OEM’s enables in increasing its share of business
First Mover Advantage in EV Component and others
SGEM is market leader in MCU business offering range of products for 2W, 3W, eSCV, eLCV & MHCV
High speed scooter segment (>~60-100 kmph) –~36% share; Overall, ~30% market share
Diversifying into new products such as HVDC Contactors and Relays, Latching Relays and Magnetics
Team Credibility
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
Four decades of market presence helped the company to demonstrate strong credibility amongst all the stakeholders
An experienced management coupled with a young and dynamic workforce will enable our company to excel into newer business areas
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23
Board Of Directors
Mr. Anil Aggarwal, Chairman & Whole Time Director
Mr. Atul Aggarwal, Managing Director
38+ years of experience, Expertise in Manufacturing, Project Mgmt, Administration, Product and Project development and Quality control for auto components
34+ years of experience, Expertise in Marketing, Banking, Finance, Corporate Affairs, Information Technologies and Export Resources Management
Mr. Akhill Aggarwal,Whole Time Director
Mr. Rakesh Batra, Director
Mr. Jaideep Wadhwa, Director
Mr. Shailendra Swarup, Director
13+ years of experience, Expertise in Automobile business and other allied services related to the sector
30+ years of experience, Expertise in Consulting and Strong knowledge in Regulatory Compliances. Ex- EY Partner and National Leader Auto Sector
30+ years of experience, Expertise in International Business Mgmt, Auto & Industrial Component Industry Knowledge, Ex- MD in the Ingersoll Rand
50+ years of experience, Expertise in Corporate Law including International Law CEO- Swarup & company
Ms. Rashmi Urdhwareshe, Director
Mr. Vijay Madhav Paradkar, Director
Mr. Sanjiv Garg, Director
Mr. Anish Agarwal, Director
40+ years of experience, Expertise in automotive domain. Ex - Director ARAI (Automotive Research Association of India)
35+ years of experience, Expertise in Institutional & Corporate Finance, Funds Mgmt, Investment Banking & M&A. Ex- VP & Head of M&A at Corporate Mahindra & Mahindra Limited
40+ years of experience, Expertise in Process Mgmt, Software Development, Greenfield Initiatives, and technological innovations. Founder of JindalX, Co- Founder of Wisdom Analytics Inc.
10+ years of experience, Expertise in Automobile business along with electric and hydrogen vehicles
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24
Annual Results
Financial Year
PDF Link
FY24
FY23
FY22
FY21
FY20
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25
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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