Vardhman Special Steels Limited has informed the Exchange regarding Investor Presentation on Business Development and Financial Performance given by the Company at its Investor and Analyst Meet held o...

VARDHMANSPECIALSTEELSLlMiTEDVamhmmDeliveringExcellence.Sincel965.CHANDIGARHROADLUDHIANA-HIGH),PUNjABT:+9l~l6l—2228943-48F:+9l—l6l—260l048,22226l6,260l040E:secretarial.lud@vardhman.comRef.vssuscv:FEB:zoIS-IqQajgdj-il-QZJMQTheNationalStockExchangeofindiaLtd,TheDeputyGeneralManager,“Exchangeplaza,CorporateRelationshipDeptt,Bandra-KurlaComplex,BombayStockExchangeLimited,Bandra(East),1stFloor,NewTradingRing,MLJMBAI~4Q~O_o5_IRotundaBuilding,P.JTowers,DalalStreet,Fort,MUMBAl—4ooom.ScripCode:VSSLScripCode:534392SUB:COMPLIANCEUNDERREGULATION30OFTHESEBl(LISTINGOBLIGATIONSANDDISCLOSLBEREQLLLBEMENTS_)BLE.G_ULATlO_N§FZD_15c-LPursuanttoRegulation30readwithPartAOfScheduleIIIofSEBl(ListingObligationsandDisclosureRequirements)Regulations,2015,pleasefindattachedherewithacopyofthepresentationgivenbytheCompanyatitsinvestorandAnalystMeetheldon11thFebruary,2019regardingBusinessDevelopmentandFinancialPerformanceforQ3&9MOfFY19.KindlynoteanddisplaythenoticeonyournoticeboardfortheinformationOfthemembersofyourexchangeandgeneralpublic.Thankingyou,Yoursfaithfully,FORVARDHMANSPECIALSTEELSLlMlTEDW"(SonamTaneja)CompanySecretary‘t’ARNSlFIRBRiCSETHREADSiGARMENTSiFiBRESiSTEELSPANNO.:AADCV48IZBCIN:L27l00PBZOIOPLC033930WWW.VARDHMANSTEEL.COM3“VARDHMAMSPECiALS'EELSCD'VardhmanSpecialSteelsLimitedInvestors&AnalystsMeetPresentation11thFebruary2019DiSCIaimerammmmsmastmThispresentatianhasbeenpreparedbyVardhmanSpecialSteelsLimited(the”Campany”)salelyfarinfarmatianpurpasesanddaesnatcanstituteanyaffer,recammendatianarinvitatiantapurchasearsubscribefaranysecurities,andshallnatfarmthebasisarbereliedanincannectianwithanycantractarbindingcammitmentwhatsaever.NaafferingafsecuritiesaftheCampanywillbemadeexceptbymeansafastatutaryafferingdacumentcantainingdetailedinfarmatianabauttheCampany.ThisPresentatianhasbeenpreparedbytheCampanybasedaninfarmatiananddatawhichtheCampanycansidersreliable,buttheCampanymakesnarepresentatianarwarranty,expresscrimplied,whatsaever,andnarelianceshallbeplacedan,thetruth,accuracy,campleteness,fairnessandreasanablenessafthecantentsafthisPresentatian.ThisPresentatianmaynatbeallinclusiveandmaynatcantainallaftheinfarmatianthatyaumaycansidermaterial.AnyliabilityinrespectafthecantentsbfUranyamissianfram,thisPresentatianisexpresslyexcluded.CertainmattersdiscussedinthisPresentatianmaycantainstatementsregardingtheCampany’smarketappartunityandbusinesspraspectsthatareindividuallyandcallectivelyfarwardrlaakingstatements.Suchfarwardrlaakingstatementsarenatguaranteesaffutureperfarmanceandaresubjecttaknawnandunknawnrisks,uncertaintiesandassumptiansthataredifficulttapredict.Theserisksanduncertaintiesinclude,butarenatlimitedta,theperfarmanceaftheIndianecanamyandaftheecanamiesafvariausinternatianalmarkets,theperfarmanceaftheindustryinIndiaandwar/drwide,campetitian,thecampany’sabilitytasuccessfullyimplementitsstrategy,theCampany’sfuturelevelsafgrawthandexpansian,technalagicalimplementatian,changesandadvancements,changesinrevenue,incamearcashflaws,theCampany’smarketpreferencesanditsexpasuretamarketrisks,aswellasatherrisks.TheCampany’sactualresults,levelsafactivity,perfarmancearachievementscaulddiffermateriallyandadverselyframresultsexpressedinarimpliedbythisPresentatian.TheCampanyassumesnaabligatiantaupdateanyfarwardrlaakinginfarmatiancantainedinthisPresentatian.AnyfarwardrlaakingstatementsandprajectiansmadebythirdpartiesincludedinthisPresentatianarenatadaptedbytheCampanyandtheCampanyisnatrespansiblefarsuchthirdpartystatementsandprajectians.TableofContents(0‘0-6-0‘7.CompanyOverview.“ABusinessOverview..FinancialHighlights..WayAhead.VARDHMANSPECIALSTEESLTD‘AbOUtU5(0‘VARDHMANSPECIALST‘EHSLTDState-of-artmanufacturingfacilitiesIBillets—2.00.000TPAIRolledBars—1.80.000TPAIBrightBars—36.000TPAAmongstIndia'sLeadingSteelBarProducersforAutomotiveApplicationsSpecializedProductofferings......—Steelbars&rods200+ReputedandlongtermcustomersStrongDomestic&InternationalCustomerBaseforforgingapplicationsExperiencedManagementTeamQualityStandards&AssuranceWhatWewere...19737StartedasOswalSteels750.000TPAcapacityofspecial&alloysteels19867AcquiredMohtaAlloyswithcapacityof1.00.000TPA19957InstalledmodernSteelMeltingShopwithElectromagneticStirrer20007CommissionedVacuumDegassingSystem20017Strengthenedproductportfolio7addedBrightBarFacility2010-IndependentidentityunderVardhmanGroupJourneySoFar...QmVIApril20177RightsIssueofRs67.85Cr.IOct.20177Purchased~8acresofadjoininglandforRs.36Cr.IFeb.20187QIPofRs50Cr.IJune20187CRISILupgradedcreditratingIAugust20187ChangeinStatutoryAuditorstoM/sB.S.R.&Co.LLPI2019—FortifiedBoardofDirectors7oneIndependentWomanDirectorappointedVARDHMANSPECIALSEELTD.IJuly20157InstalledFumeExtractionsystemIAug20157IncreasedBrightbarscapacityto36.000TPA&1.80.000TPAforHotRolledIDec20167Upgradedtransformer&allied1.50.000TPA8.equipmenttoreduceMagnafluxleakagemeltingtime&testingsystem(Dr..TGSUltlngin5M5FoersterGermany).andcapacityto1.55.0002017—Ti”DateUltrasonicTestingfromTPA(Olympus.Canada)2015-2012012-2014TransformingintooneofIndia’sleadingsteelbarproducers2012-ListedonBSE&NSE20137Installedfullyautomaticrollingmillwithcapacityof...ClearfocusonlongtermValueCreationQvmmmmmmRs.Jan—Dec1109‘1,65,7682,00,0001,80,000‘0.81*2018C’mreTonsTPATPAListedonStock1IIExchange‘‘~_~~"________’'“5-|93,1691,00,00080,400‘128527CroreTPATPA'2012TonsRevenueSalesInstalledInstalledDebttoVolumeCapacity-Capacity-Equity(x)BilletsRolledProducts*Ason31‘|Dec2018StrongExperiencedBoardofDirectorsMr.RajeevGuptaChairman&IndependentDirectorIB.TechfromBHU/IIT.VaranasiandMBA(IIM.Ahmedabad)IRichexperienceofmorethan35years»OneofCountry'stopmostInvestmentBankersMs.SuchitaJainNon-ExecutiveDirectorIMaster'sdegreeinCommercefromPunjabUniversity.ChandigarhIOver25yearsofrichexperienceintextileindustryIRepresentativeofVardhmanGroup0-9-0QVARDHMANSPECIALSTEELELTD|Mr.SachitJainViceChairman&MDIB.Tech(Electrical)»IIT.NewDelhi.MBA(Goldmedallist)»IIM.AhmedabadandOwner/PresidentManagementProgram7Harvard»Experienceofover29yearsinTextile&SteelIChairmanofCII.NorthernRegionMr.RajinderKumarJainNon-ExecutiveDirectorICharteredMechanicalEngineerfromInstituteofMechanicalEngineersLondonIRetiredasGeneralManagerfromIndianRailwaysafter3SyearsofserviceStrongExperiencedBoardofDirectorscontd...0mnmmnmml0-6-0'Mr.B.K.ChoudharyMr.RakeshJainNon-ExecutiveDirectorIndependentDirectorIDegreeinB.Sc..M.Com&MBAPh.dinPolymersfromtheUniversityofAkronIRichexperienceofmorethan44yearsinSteelWorkedintheAdvancedTechnologyGroupat&TextileindustryGEElectro»materialsDivision(EMD)inCoshocton.OH.USA&AdityaBirlaGroup(ABG)asMDofIndoGulfFertilizersLtdMr.SanjeevPahwaMr.SanjoyBhattacharyyaIndependentDirectorIndependentDirectorIBTechfromIlTDelhiExperienceofmore'B.Sc(StatisticsHonours)andMBA.fromIIM.than26yearsinbicycle/automobiletyresandAhmedabadtubesindustry'Morethan21yearsofexperienceinequitiesIChairmancumMDofRalson(India))Ltd7&investmentmanagement»AmongleadingLargesttyremanufacturer'IntheWorldstockmarketGurusMs.ShubhraBhattacharyaIndependentDirectorIBachelor'sdegreeinMathematicsandMBAfromXavier'sLaborRelationsInstituteIMorethan25yearsofexperienceinHumanResourceManagementWideRangeofRolled&BrightBarsProductsHotRolledBarsW.|BrightBarsAxleGearsKnuckleSpindleConnectingRodCenterVelocityJointDifferentialGearsDiverseapplicationsofourproductsVMDHIMNSPECMLSTESLTR|IfDrive-ShaftBearingsAxleShaftSteering-Yoke>—-l|0State-of-artManufacturingfacilities...QwwwwspmsmmIV,,RollingMillCapacity:2.00.000TPACapacity:1.80.000TPACapacity:36.000TPA...Withln-HouseSteelMeltingShopQvmuumuspscmmsuuo—e—oV'‘LadleRefiningFurnace...AndbestinclassR&DFacility0-9-0Spectrometer:ARL4460:1454forChemicalAnalysis-cancheck32differentelements-CS-230:AnalyzerforCarbon&SulfurcontentinsteelLECOgasanalyzer—TC600Hz,N2,02AnalyzerMechanicalandMetallurgicalTestingLabMetallurgicalMicroscopewithImageAnalyzerRADLAB-lGAMMARAYSpectrometer.ForTestingSteelSamplesforRadiologicalContent—canidentifydifferenttypesofIsotopespresent.Samplescanbecertifiedwith300SecondscaninRadLab"Well”XRFSpectrometer-Higherrange&A||input/outputmaterialcanbechecked...ensuringhighestlevelsofqualityandcompliance130-9-0EIOneOwnedWarehouseIBilaspurHaryanaIFiveLeasedWarehousesinIIndiaIBangaloreIChennaiIRudrapurIPune_IAurangabad_'..............................................a-14200+Reputed&Longtermcustomers....(0‘vmmmnmmlTwoWheelersHCL/LCVs’H:MARU'I'ITOYOTAHYIJI'IDFIISUZUKIOYAMAHAMama/awHeroBAJAJTATAASHDKLEYLANDsmanalmazna“EmuuJOHNDEERETAFEgQ)I‘I'Iallindra15AcrossaStrongGlobalCustomerBaseQvmmmm0-9-0‘7Amuma’nmmI_____________________________________________________________[9MFY19Exportcontributes}16I!:sm:s2.L’Ian:r072':rP'-InQuarterlyFinancialHighlights(.5mnwmnmm0-9-0‘7«may,SalesVolumes(MT)RevenuefromOperations(Rs.Crore)312.52295.49269.50218.42231.36|l|l|llllQ3FY18Q4FY18Q1FY19Q2FY19*Q3FY19*41,58642:46943'2“38,27538,455|||Q3FY18Q4FY18Q1FY19Q2FY19Q3FY19*Includessaleofrawmaterialandtradedgoods18QuarterlyFinancialHighlights60mmmcmmm0-9-0‘7may.”EBITDA(Rs.Crore)#.PAT(Rs.Crore)#EBITDAisincludingotherIncome-1922.3819.8819_491952|||16.55iiii|iiQ3FY18Q4FY18Q1FY19Q2FY19Q3FY199.549.037-217.07II6.21iiiiiI‘Q3FY18Q4FY18Q1FY19Q2FY19Q3FY19FinancialHighlights—9MFY19vs9MFY18e]mnmmnmml0-6-0''12%40%21%Volume(MT)RevenuefromOperations*EBITDA#1,27,313MTRs.877.51croreRs.58.54crore25%6%PATBasicEPSRs.22.36croreRs.6.26vs.Rs.5.939MFY18°IncreaseinRevenuemainlyonaccountofincreaseinsalesvolumesandhigherrealizations°EBITDAgrowthdrivenbyhigheroperationalefficiencies,despiteincreaseinrawmaterialcosts20"Includessaleofrawmaterialandtradedgoods;”EBITDAisincludingotherIncomeRevenueBreakup—SectorWiseGW”“WWW”,mV“w9MFY19TwoWheelers,32%v,FY18TwoWheelers,32%CommercCommercialVehicles,20%Bearings,4%PassengVehicles,43%Vehicles,34%FinanCialHighlights(6‘vmnmmspscmsrmsm‘7“(WWr.Volume(MT)RevenuefromOperations(Rs.Crore)1,108.87858.96656.34652.74673-81I‘I‘I‘I‘‘FY15FY16FY17FY18Jan-Dec20181,65,7681,52,1621,31,6361,16,4011,21,451IFY15FY16FY17FY18Jan-Dec201822FinanCialHighlights(0‘vmummspscmsmsm‘7“(WWr,EBITDA(Rs.Crore)#PAT(Rs.Crore)78.0329.5725.0319.154.22IFY16FY17FY18Jan-Dec201868.0365.4944.2618.97I‘‘‘‘FY15FY16FY17FY18Jan-Dec2018-15.1223”EBITDAisincludingotherIncomeAnnualBalancesheetHighlights—FY15to18e]mummmmmRoCE(%112-75%12.16%8.81%3.80‘VFY15FY16FY17FY18*RoE|%)_NetDebttoEguity9.67%738%1-981.82159W5FFY16FY17FY18*‘‘‘3.91%FY15FY16FY17FY18**DuringFY18CompanyraisedRs.58athroughRightsIssueandRs.50c:tnmugnaIP(subscribedbyDSPBlackmdtMFandSundammMF)Ra:=NetProfit/NetWorth,-RaCE=EEITDA/(NW+TatalDebt-Investments),-NetDebt=TotalDebt(includesCurrentMaturityafLTDebt)-Investments24InvestinginOurRealAssetsQ7VardhmanLeadershipDevelopmentProgramanPlazamm.“is”mzo‘mum20V)CCL-USbasedOrganisation—ITrainingprograms—INewlnitiativeundertakenoffersleadershipprograms....across160countries,FTtop10L::::::;::t::::a:l,_sklllIFormalizedtrainingprogramsinexecutiveeducationwith_:acrossalllevelsofemloeesthatfOCUSontechnlcal500Kalumniover50yearsPyknowledge,enhanceskillsets....'ISpecialized&customizedEEandproductiveefficienciesofICustomlzedleadershlptralnlng55~for12seniormanagementprograms".personnel'..........................................................£25WayAheadQvmwmspscmswasunmVlCapacityExpansionIIncreasemeltingcapacityto2,40,000TPAandRollingCapacityto2,20,000TPAbyFY21—expectedcapexofapprox.Rs.200Cr.ITargetofachievingfullcapacityutilizationsoonaftercompletingcapexJointVenture&TechnicalAllianceIIndownstreamvalueaddedproductsnamelyBrightBarsIBuildstrongtechnicalalliancewithglobalplayerIExplorevalueaddedproductslikehighalloysteelthroughingotcastingrouteovertimeDe-riskingBusinessIExploreavenues—increasehighmarginproducts,enterintonewgeographies,changeincustomermixandexpandintonewindustryapplications27ThankYou630+0‘7VARDHMANSPECIALSTEELSLTD‘SSE534392'NSEVSSLBlootnborgvss|_|N..UT..5...VARM.BOForfurtherinformation,pleasecontact:Company:InvestorRelationsAdvisors:VardhmanSpecialSteelsLimitedBridgeInvestorRelationsPvt.Ltd.CIN:L27100PB2010PLC033930CIN:U74900MH2016PTC273679Mr.SanjeevSinglaMr.AmitSharmasan'eevsinglangardhmanLomamithbridge-ircom02226873003www.vardhmansteel.comMr.SmitShahsmithbridge-ircom02226873003www.bridge-ir.com28ProcessFlow0-6-0590"",w,916mow.5mmSwap»DomesticShipmentIFinalInspectionandDispatch6‘C[—BrighlBilShop'wIONmememmm“SpherodileAnnealingVWV“09'3““!9""maleHellmn.umlCommons(mmmum,AsRolled83!¢/"HalRolled"sum/ReheatFurnaceRollingMillAutomaticLineofBarInspection-NDTLine0-6-0MFLT,AcceptanceCriteria:Chamferlng0_2X10mmBarendsfreefromBurrStraighteningStraightness:2mm/meterAcceptanceCriteria:SDH-ShotBlasting0.8x10mm,FBH-0.8&1.2mm31QuarterlyProfit&LossO-e-OQVARANSPECIALSTESLTD.RevenuefromOperations312.52*218.4243.08%295.49*ExciseDuty0.000.000.00OtherIncome0.400.981.23TotalIncome312.92219.4042.63%296.72CostofMaterialsConsumed235.67123.61183.15PurchasesofStocks17.110.0014.65ChangesInInventory(60.01)(9.25)(15.68)RawMaterialExpenses192.77114.36182.12EmployeeExpenses12.6411.8213.44Power&Fuel32.1934.5735.01OtherExpenses52.9438.7749.60TotalExpenditure290.54199.52280.17EBITDA22.3819.8812.58%16.55Depreciation6.205.715.98Interest/FinanceCost6.544.635.64PBT9.649.541.05%4.93Tax3.430.00(2.14)PAT6.219.54(34.91)%7.07BasicEPSinRs.1.742.971.98°DeferredtaxaccountedinQ3FY19asaainstnotaxaidinQ3FY18(duetoaccumulatedlosses)*Includessale32NineMonthsProfit&LossGVVMMMMSPECIALSTESLTD..9..:IncomefromOperations877.51*646.53ExciseDuty0.0018.93RevenuefromOperations877.51627.6039.82%OtherIncome1.333.81TotalIncome878.84631.4139.19%CostofMaterialsConsumed588.65341.27PurchasesofStocks31.760.00ChangesInInventory(89.33)1.22RawMaterialExpenses531.08342.49EmployeeExpenses38.8134.53Power&Fuel100.5199.82OtherExpenses149.90106.03TotalExpenditure820.30582.87EBITDA58.5448.5420.60%Depreciation17.8415.20Interest/FinanceCost17.0515.52PBT23.6517.82Tax1.290.00PAT22.3617.8225.48%BasicEPSinRs.6.265.935.56%33*IncludessaleafrawmaterialandtradedgoodsBalanceSheetason30thSeptember2018QVARDHMINSWImmEquity*355.35339.32NonCurrentAssets316.26278.83EquityShareCapital35703570PropertyPlantKiEquipment281.15249.27OtherEquity319.65303.62Capitalworkinprogress15.376.99Non-currentliabilities142.75102.33OI‘her[ma“gib'e3556‘s036“-29FinancialLiabilitiesFinanCIalAssets.LongTermLoans0.881.42(a)Borrowmg141'“101'46DeferredTaxAssets(Net)2.200.00(b)OtherFinancialliabilities0.050.00OtherNonCurrentAssets16.3020.86Provisions0-960-85CurrentAssets454.08397.82OtherCurrentLiabilities0.000.02Inventories200.81158.60Currentliabilities272.24235.00FinancialassetsFinancialLiabilitiesInvestments0'018-16(a)Borrowings12730118.50Tradereceivables203.26194.55(b)TradePayables1091560.61CashKiCashequivalents0.207.49IIIIIIOtherBankBalance0.040.00(c)OtherFinanCIalLiabilities33.0452.25Loans115102Provisions0‘490‘62Otherfinancialassets4.175.92OtherCurrentLiabilities2.103.02Currenttaxassets0.000.36CurrentTaxLiability(Net)0-160-00OtherCurrentAssets44.4421.72TotalEquities&Liabilities770.34676.65TotalAssets770.34676.65*DuringmsCompanyraisedRs.58cl.throughRightsIssueandRs.50a.throughQIP(subscribedbyDSPaludaackMFandsundurumMF)