Steelcast Limited has informed the Exchange about Investor Presentation
AC/2079
14.02.2024
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:
Intimation of Analyst / Institutional Investor meetings under the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015
Pursuant to Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015, it is hereby informed that the Official(s) of the Company will be interacting with Investor(s) in person on a one-to-one meeting on Monday, 19th February, 2024 & Tuesday, 20th February, 2024 in Mumbai.
This is to further inform that the copy of the Investor Presentation to be referred during the meeting has been attached herewith and also uploaded on the Company’s website (www.steelcast.net).
We request you to kindly take the same on record and disseminate the same on your respective websites.
Note: The above meeting’s schedule is subject to change, which may happen due to exigencies on the part of the Company or Investor(s).
Thanking you,
For STEELCAST LIMITED,
(Umesh V Bhatt) COMPANY SECRETARY
L:\AC\2079\COMPLIANCES\SECRETARIAL\NSE and BSE Announcements\Presentation\2024.02.19\ SteelcastExchangePrior Intimation19022024.docx
STEELCAST LIMITED
Investor Presentation | February 2024
Safe Harbor
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.
Investor Presentation | February 2024
2
Company Overview
STEELCAST in 1960 and Now
Investor Presentation | February 2024
4
Over 7 decades of legacy …
One of the few companies in India and Globally manufacturing Steelcastings based on Sand and Shell Molding Process
Premier Position Company enjoys a Premier Position in the steel Casting Industry in India
Wide Range of Casting Products Wide range of casting products including Austenitic Manganese Steel and High Chromium ferro alloys
Diverse Industrial Sectors Catering to diverse Industrial sectors like Earth Moving, Mining & Mineral Processing, Locomotives, Rail Road, construction, Cement and Steel Mfg. etc.
Caters to a host of OEMs Catering to a host of Original Equipment Manufacturers (OEMs)
Highly Reputed Multinationals Clientele Caters to highly reputed multinational clientele both in India and abroad including Fortune 500 companies
Recognitions & Certifications
Investor Presentation | February 2024
5
Steelcast at a Glance
Manufacturing Experience
63 Years
Capacity 30,000 TPA
Varied Products Weights
5 Kgs-2,500 Kgs
Manufacturing Process
Machining Excellence
Sand & Shell Molding
70% Castings shipped as fully machined
Sectors Catering
9
Captive Power Supply from Renewable Power Plants 80%
Advanced Manufacturing Facility
3 Production Plants and one Machine shop with latest State of Art Technology
Competes with Global players Two Star Export House
Investor Presentation | February 2024
6
We’re growing steadily…
Started business as a Partnership Firm
Converted into a Private Limited Company
Setting up of Shell Moulding Facility (Plant - 2)
Commissioning of State of Art in- house CNC Machine Shop & Expansion of Shell Moulding facility
Installing and commissioning of State of Art Automated No-Bake Flaskless Moulding Line. Class A Foundry Certification accorded by Indian Railways (RDSO)
Accreditation by Transport & Power Generation Programme (TPG) for “Casting”, “Heat Treating” & “No Destructive Testing”
Accreditation of Laboratory by National Accreditation Board for Testing & Calibration Laboratories (NABL)
1960
1962
1972
1977
1993
2001
2006
2007
2011
2012
2014
2015
2018
2023
Collaboration for Technical Knowhow with an Indian firm Mukand Limited
Recognition of Steelcast 'Research & Development Laboratory” by the Department of Science & Technology, Government of India
Large Scale development of high integrity structural castings
Setting up of Plant-3 (Sand Castings)
Accreditation by Association of American Rail Road (AAR) for “Quality Assurance Certification as per M1003” facilitating manufacturing of Side Frame & Bolsters for American Railroad Freight & Locomotive Industry
Accreditation for “Supplier Quality Excellence Program (SQEP) Bronze certificate by Caterpillar, USA
Accreditation by Association of American Rail Road (AAR) for “Quality Assurance Certification as per M1003”
Investor Presentation | February 2024
7
Locational Advantage
Situated in Bhavnagar, Gujarat, which is a power surplus state
01
02
Company’s own 66KV power transmission station with 10 MW power available 24*7
Scrap - the major raw material is available with high degree of purity and at competitive price from Bhavnagar & surrounding Rolling mills setup to use scrap from Alang. Asia’s biggest Ship recycling yard, situated just 50 Kms away
Skilled manpower is easily available with minimal labor cost
03
05
04
06
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
07
08
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
Investor Presentation | February 2024
8
Preferred choice of Customers – Steelcast
Quality Products •Delivered at competitive price & right time
Manufacturing facilities approved by Quality Assurance organisations & clients
Adequate Capacity
Reliable Alternate source
Transparent dealing
Responsible and Competent Team
Investor Presentation | February 2024
9
Strong presence amongst peers
Recognized player in steel castings business
Experienced Management Team & Board of Directors
State of the art manufacturing and R & D facilities
Significant product development capacity
i. Leadership position in
Domestic market
ii. Recognized position in export
market
i. Strong Management and Board with balanced composition, vast experience and domain expertise
ii. Localized experienced work
force with greater loyalty and minimum attrition
i. Three state of the art
i. Developed parts in excess of
5000
ii. Product Development Cycle ranging from 6 to 9 months.
manufacturing plants with one machine shop situated at single strategic location which helps reduce logistics time & cost
ii. Adequate capacities to take any volume ramping up
opportunity
Investor Presentation | February 2024
10
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
Investor Presentation | February 2024
11
Expanding our footprint to new segments
Foray into New Segments
Railways
Ground Engaging Tools (GETs)
Defence
Investor Presentation | February 2024
12
Presence across the Globe
Denmark Germany
Poland Slovakia
South Korea
“Two-Star Export House Status holder”
USA
Mexico
Brazil
India Headquartered
China
Thailand
Singapore
Japan
Australia
Expected to increase the presence in 15+ countries in the next 1 to 2 years
Export Presence
Disclaimer: Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness
Investor Presentation | February 2024
13
Key Strengths
Well Experienced Team
Experienced Board backed by a strong management team
Unique Business Model
Diversified Business Model, catering to varied sectors
Green Energy
Technology and R&D
5 MW Solar Power Plant & 4.5 MW Hybrid Power Plant for captive consumption
Strong R&D and Technological Capabilities. These also are entry barriers in the business
Marquee Customers
Supplies to Premium Customer Brands
Locational Advantage
Plant situated in Bhavnagar, Gujarat has great connectivity with Ports, major cities through road and rail and through water ways Proximity to raw material source
Global Footprints
Manufacturing Capabilities
“Two-Star Export House Status holder” Expected to increase the presence in15+ countries in the next 1-2 years
Developed path breaking products and process which lead to Scale-up of Business, Reduction of cost which resulted in higher profitability
Investor Presentation | February 2024
14
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
Investor Presentation | February 2024
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)
15
Experienced Board of Directors
Mr. Chetan M. Tamboli Managing Director & CEO
Mr. Rushil C Tamboli Whole Time Director
Mr. Hemant D Dholakia Independent Non- Executive Director
Mrs. Vidhi S Merchant Non-Executive Non-Independent Director
Mr. Apurva R Shah Independent Non- Executive Director
o Aged 63 years, a third-
generation entrepreneur, is a commerce graduate armed with an MBA Finance from USA
o Serving as a CEO since 2003
with total experience of more than 34 years. Looks after strategy, policy making and overall management
o Served as the Chairman Board of Governors, Government Engineering College, Bhavnagar, Gujarat since 2014
o Aged 34 years, is an
Engineering graduate with Industrial Engineering (I.E.)
o Heading various
departments and contributed to improve fuel efficiency of heat treatment operations, developing new parts, achieving improvement in Man hours per ton
o Aged 58 years, he has completed his master’s degree in Marketing and Finance from University of Scranton, USA and has experience in manufacturing industries more than 38 Years. He is the Managing Director at Goran Pharma Pvt. Ltd.
o Director at Hansrx Pvt. Ltd. & Partner at Parag Perfumes, Sihor
o Aged 31 years, is a Master of Arts & Master of Education (Psychology)
o She is having experience as
career counselor in India and overseas and is involved in various Corporate Social Responsibility (CSR) activities
o Aged 53 years, he has
received his undergraduate degree from London School of Economics
o and Political Sciences and has an experience of more than 15 years.
o He is also an Independent Director at Asian Star Company Limited and Fine-Line Circuits Limited .
Investor Presentation | February 2024
16
Experienced Board of Directors
Mrs. Aarushi M Ganatra Independent Non-Executive Director
Mr. Kumar Tipirneni Permanent Invitee
Mr. Harsh R Gandhi Independent Non-Executive Director
Mr. Rajiv D Gandhi Independent Non-Executive Director
Mr. Ashutosh H Shukla Executive Director
Mr. Subhash R Sharma Executive Director & CFO
o Aged 64 years, is a graduate in
Commerce
o She also heads a consultancy firm to advise in business, finance & investments
o Has worked for over 3
decades at various levels in the field of Statutory audits, internal
o Aged 83 years, is a B. Tech graduate (IIT, Khadagpur) armed with M.E. (Foundry) (IISc, Bangaluru). He is a permanent Invitee to the Board and its committee meetings since September 2018 with total experience of more than 50 years in the Company.
o audits and human resource
o He also served as CFO
training.
o Aged 46 years, is a Bachelor of Science in Management and Owner President Management from Harvard Business School
o Joint Managing Director, GRP
Limited, Mumbai manufacturing sustainable materials, focused on using end of life tyre & plastic waste to make raw materials for automotive, electrical, transportation.
o Aged 61 years, is a Commerce Graduate from Bombay University and first generation entrepreneur.
o He is CEO and Managing
Director of Hester Biosciences Ltd., Asia’s largest single location animal vaccine and health products manufacturing company.
o Aged 60 years, is a is
Mechanical Engineer from M S University and Post Graduate Diploma in Business Administration.
o Has been with STEELCAST since 1997 and presently looking after complete operations of all the Plants apart from looking after HR.
o Aged 56 years, he is a Master of Commerce and a member of the Institute of Cost Accountants of India (ICAI), formerly known as ICWAI..
o Has been with STEELCAST
since 2016 and looking after all the support services besides discharging duties as CFO.
Investor Presentation | February 2024
17
Our Niche Product Portfolio (1/7)
OEMs Earth Moving:
Front Support Wt. 780 Kg
Axle Housing Wt. 1669 Kg
Bracket Wt. 450 Kg
Cap Assy. Wt. 82 Kg
Rear Spindle Wt. 2228 Kg
Steering Arm Wt. 456 Kg
Spindle Wt. 1795 Kg
Pivot Eye Wt. 363 Kg
Investor Presentation | February 2024
18
Our Niche Product Portfolio (2/7)
OEMs Mining:
Track Shoe Wt. 750 Kg
Adjusting Block Wt. 257 Kg
Track Shoe Wt. 1300 Kg
Guide Rail Wt. 412 Kg
Crowd Sheave Wt. 1830 Kg
Boom Foot Wt. 1630 Kg
Idler Wt. 1422 Kg
Sprocket Wt. 1566 Kg
Investor Presentation | February 2024
19
Our Niche Product Portfolio (3/7)
OEMs Construction:
Pivot Eye Wt. 12 Kg
Pivot Boss Wt. 23 Kg
Tipping Lever Wt. 12 Kg
FD Cover Wt. 125 Kg
Boom Nose Wt. 84 Kg
Boom Foot Wt. 34 Kg
Boom Center Wt. 32 Kg
Boom Trunnion Wt. 17 Kg
Investor Presentation | February 2024
20
Our Niche Product Portfolio (4/7)
OEMs Railways & Locomotives:
Front Draft Lug Wt. 18 Kg
Striker Casting Wt. 50 Kg
Transition Casting Wt. 22 Kg
Cast Container Wt. 100 Kg
Cylinder Head Wt. 41 Kg
Coupler Body Wt. 168 Kg
Side Frame Wt. 477 Kg
Bolster Wt. 716 Kg
Investor Presentation | February 2024
21
Our Niche Product Portfolio (5/7)
OEMs Defence:
Track Shoe (T72) Wt. 15 Kg
Mortar Bomb Wt. 5 Kg
Track Shoe (MBT) Wt. 21 Kg
Aerial Bomb Wt. 230 Kg
HR Rocket Body Wt. 48 Kg
Transfer Gear Box Wt. 11 Kg
Head Casting Wt. 6 Kg
Aerial Bomb Wt. 420 Kg
Investor Presentation | February 2024
22
Our Niche Product Portfolio (6/7)
OEMs GET:
Lower Shroud Wt. 65 Kg
Adapter Wt. 236 Kg
End Bits Wt. 150 Kg
Wear Cap Wt. 32 Kg
C Clamp Wt. 27 Kg
Investor Presentation | February 2024
23
Our Niche Product Portfolio (7/7)
OEMs Cement:
Inclined Blast Grate Wt. 30 Kg
Grate Plate Wt. 25 Kg
Grate Plate Wt. 27 Kg
RFT Grate Plate Wt. 19 Kg
OEMs Steel:
OEMs Transportation:
Grate Bar Wt. 4 Kg
Investor Presentation | February 2024
Grate Bar Wt. 3 Kg
Spring Seat Wt. 7 Kg
Spring Seat Wt. 10 Kg
24
Financial & Operating Highlights Q3FY24 & 9M FY24
Q3 & 9MFY24 Performance Highlights
4 2 Y F 3 Q
4 2 Y F M 9
Revenue 90.3 Crs
EBITDA 27.3 Crs
PAT 17.4 Crs
Revenue 311.4 Crs
EBITDA 88.4 Crs
PAT 56.3 Crs
Highlights
The revenue dropped both on Y-o-Y and Q-o-Q basis indicating impact of anticipated slow-down on account of global turmoil. We are hopeful of improvement in global situation from Q3FY25 onwards.
Despite de-growth in revenue, EBITDA and PAT margins have shown improvement in Q3 and stood at 30.8% and 19.3% respectively due to power cost savings, cost optimization, operational efficiency & reduced input costs
In the face of revenue de-growth in FY24, we remain confident in preserving our bottom line
Our conscious and continuous efforts towards development of new customers, new sectors and new parts as a part of our de-risking excercise is helping the Company’s turnover to be less volatile compared to the past.
Investor Presentation | February 2024
26
Q3 FY24 Consolidated Key Highlights
Revenue (Rs. in Crs)
EBIDTA (Rs. in Crs)
PAT (Rs. in Crs)
-24.6%
119.7
-4.9%
28.7
27.3
27.3
-10.8%
30.7
-6.4%
18.6
17.4
17.4
-9.6%
19.3
-11.1%
101.6
90.3
90.3
Q3FY24
Q2FY24
Q3FY24
Q3FY23
Q3FY24
Q2FY24
Q3FY24
Q3FY23
Q3FY24
Q2FY24
Q3FY24
Q3FY23
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Investor Presentation | February 2024
27
9M FY24 Consolidated Key Highlights
Revenue (Rs. in Crs)
EBIDTA (Rs. in Crs)
PAT (Rs. in Crs)
-12.7%
311.4
356.5
88.4
6.4%
83.0
10.4%
56.3
51.0
9M FY24
9M FY23
9M FY24
9M FY23
9M FY24
9M FY23
Y-o-Y
Y-o-Y
Y-o-Y
Investor Presentation | February 2024
28
Geographical Revenue growth (Y-o-Y)
Exports (Rs. in Crs)
Domestic (Rs. in Crs)
-23.7%
70.9
54.1
54.1
-30.6%
78.0
+17.9%
-13.2%
41.7
36.2
36.2
30.7
Q3FY24
Q2FY24
Q3FY24
Q3FY23
Q3FY24
Q2FY24
Q3FY24
Q3FY23
Q-o-Q
Y-o-Y
Q-o-Q
Y-o-Y
Investor Presentation | February 2024
29
Revenue Breakup (Q3FY24)
Segment-wise Revenue (%)
Geography-wise Revenue (%)
Total Revenue Rs 90.3 Cr
100.0%
OEM Sales
40.0%
60.0%
Domestic
Exports
Investor Presentation | February 2024
30
Quarterly Profit & Loss Statement
Particulars (Rs.Crs )
Q3 FY24
Q3 FY23
Revenue from Operations
Cost of Materials consumed
Changes in Inventories of finished goods & work in progress
Manufacturing Expense
Power, Fuel & Water Charges
Consumption of Stores & Spares
Total Raw Material
Value Addition
Employee Expenses
Other Expenses
EBITDA
EBITDA %
Depreciation and Amortisation Expense
Finance Costs
Other Income
PBT
PBT Margin
Tax Expenses
PAT
PAT %
EPS (₹)
90.3
18.9
1.6
9.6
7.7
11.4
49.2
41.1
10.3
3.6
27.3
119.7
33.9
-1.9
10.9
16.8
15.2
74.9
44.8
9.4
4.8
30.7
30.3%
25.6%
4.4
0.0
0.5
23.4
25.9%
6.0
17.4
19.3%
8.61
4.4
0.5
0.1
25.8
21.5%
6.5
19.3
16.1%
9.53
Y-o-Y
-24.6%
-8.3%
-10.8%
-9.2%
-9.6%
19.8%
Q2 FY24
101.6
20.7
5.3
9.2
12.1
11.8
59.1
42.5
10.1
3.6
28.7
28.3%
4.4
0.1
0.6
24.8
24.5%
6.2
18.6
18.3%
9.19
Q-o-Q
-11.1%
9M FY24 9M FY23
311.4
356.5
Y-o-Y
-12.7%
67.7
13.6
29.8
33.3
37.0
181.3
130.1
30.5
11.2
88.4
92.0
11.4
33.2
49.3
46.5
232.4
124.1
27.1
14.0
83.0
28.4%
23.3%
13.6
0.3
1.4
75.8
24.3%
19.5
56.3
18.1%
27.81
13.8
2.0
1.0
68.3
19.2%
17.3
51.0
14.3%
25.19
4.8%
6.4%
11.1%
10.4%
-3.2%
-4.9%
-5.8%
-6.4%
Investor Presentation | February 2024
31
Q3 FY24 Result analysis
30%
% of Revenue
28.3
Q3FY24
Q2FY24
Q3FY23
21.0
20.4
25%
20%
15%
10%
5%
0%
Materials Consumed Investor Presentation | February 2024
25.9
24.5
21.5
19.3
18.3
16.1
11.4
10.0
7.9
10.6
9.0
9.1
8.5
14.0
11.9
12.6
11.7
12.7
0.0
0.1
0.5
Employee Cost
Finance Cost
Mfg Expense
Power & Fuel
Stores & Spares
Other Exp
PBT
PAT
32
3.9
3.6
4.0
Balance Sheet Ratios
Long term Debt (Rs. Crs.)
Short term Debt (Rs. Crs)
Debt to Equity (x)
The company has been long term debt-free for the past three years
13
9
Repaid Short term debt and the Company is totally debt free
63.0
23.6
14.0
17.0
0.10
0.00
0.40
0.25
0.18
Sep-23
Mar-23
Mar-22
Mar-21
Mar-20
Sep-23
Mar-23
Mar-22
Mar-21
Mar-20
Sep-23
Mar-23
Mar-22
Mar-21
Mar-20
41.2%
42.3%
RoCE
28.4%
RoE
23.3%
37.9%
31.9%
13.2%
14.7%
9.8%
6.8%
Working Capital (in Days)
146
122
75
67
74
Sep-23
Mar-23
Mar-22
Mar-21
Mar-20
Sep-23
Mar-23
Mar-22
Mar-21
Mar-20
Sep-23
Mar-23
Mar-22
Mar-21
Mar-20
Investor Presentation | February 2024
33
Domestic Vs. Export Sales (Quantity in Tons)
Region
22-23 (Actual)
23-24
24-25
25-26
26-27
27-28
Financial Year
Domestic
Export
Total
Tons
Tons
Tons
Tons
Tons
Tons
7,902
50
6,500
50
8,281
54
8,980
7,838
50
6,500
50
7,054
46
9,729
48
52
11,225
48
13,190
47
12,161
52
14,874
53
15,740
100
13,000
100
15,335
100
18,709
100
23,386
100
28,064
100
Annual Growth Rate (AGR)
Base Year 23-24
18.0
22.0
25.0
20.0
Compound Annual Growth Rate (CAGR) over 4 Years
Base Year 23-24
21.2
Investor Presentation | February 2024
34
Industry wise Revenue (%)
Industry
Mining
Earth Moving
Locomotive
Transport
Construction
Railway
GET
Cement
Steel
Defence
12-13
84.0
0.0
0.5
0.0
8.4
0.0
0.0
3.7
3.4
0.0
Financial Year
22-23
23-24
24-25
25-26
26-27
27-28
25.1
51.7
4.0
0.4
13.4
2.2
1.2
1.5
0.0
0.5
21.0
47.0
3.0
0.4
20.0
6.0
2.0
0.5
0.0
0.1
21.2
47.2
2.7
0.5
20.6
5.6
1.6
0.5
0.0
0.1
19.7
44.2
2.5
0.4
17.6
9.0
6.0
0.5
0.0
0.1
21.2
43.2
2.5
0.3
16.5
10.3
5.4
0.5
0.0
0.1
19.1
39.2
2.1
0.3
15.1
19.0
4.7
0.4
0.0
0.1
Grand Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Investor Presentation | February 2024
35
Installed & Utilized Capacity
Installed Capacity (Tons Per Annum)
Facility
22-23
23-24
24-25
25-26
26-27
27-28
Semi-Automated No Bake Line (P1) + Automated No Bake Loop Line (P5)
Shell Molding Plant (P2)
Total
21,850
7,150
29,000
Utilized Capacity Existing & Future: (Tons)
21,850
21,850
21,850
21,850
21,850
7,150
29,000
7,150
29,000
7,150
29,000
7,150
29,000
7,150
29,000
Plant
Overall
Capacity Utilisation (%)
Investor Presentation | February 2024
22-23
23-24
24-25
25-26
26-27
27-28
15,740
13,000
15,335
18,709
23,386
28,064
54
45
53
65
81
97
36
Yearwise CAPEX Plan FY 23-24 TO 27-28 (Rs. In Cr) *
CAPEX for the Year →
Financial Year
2023-24
2024-25
2025-26
2026-27
2027-28
Plant ↓
1
2
5
7
9
4.48
0.71
0.94
7.83
3.09
1.75
1.63
0.11
3.32
3.19
2.56
0.41
0.09
0.19
6.76
3.33
-
0.09
0.02
6.56
-
-
-
-
-
Total
17.05
10.00
10.00
10.00
15.00
* Mainly De-bottlenecking and Capital Maintenance.
Investor Presentation | February 2024
37
Hybrid and Solar Power Plants
Summary of Hybrid offers
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
8.51
4.29
9.81
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
8.51
5.34
Total Saving (Solar + Hybrid in Group Captive Mode)
Investor Presentation | February 2024
Total Saving in Cr Rs/Year after fixed charges deduction
4.29
14.10
38
CARE Rating (October 23)
Facility
Amount (in Cr.)
Rating*
109.65
31.25
140.90
CARE A-; Stable/ CARE A2+
LT / ST Fund Based Bank Facility (EPC/PSC)
LT / ST Non-Fund Based Bank Facility (BG/LC)
Total
LT - AAA is the highest (AAA, AA, A, BBB, BB, B, C, D)
ST - A1 is the highest (A1, A2, A3, A4)
("+" (plus) / "-"(minus) can be used with the rating symbols for the categories CARE AA to CARE C & CARE A1 to A4)
*These ratings reaffirmed on 11th October, 2023.
Investor Presentation | February 2024
39
Treasury Policy
Treasury Policy encompasses deployment of surplus money in various investment products like money market instruments, fixed deposits in Government Securities and Banks. The Policy sets out the basic principles of a prudent system to control the risks in investment.
The Company has a separate Foreign Exchange Risk Management Policy in practice. As the Company is short term and long term debt free effective from 31st August, 2023, we will start generating free reserves effective from September, 2023 in excess of Rs. 100 Crores in next 18 months.
Considering these developments, the Company has framed an Investment policy to deploy the surplus funds based on the principle of safety, liquidity and returns.
To start with, the Company plans to do all Maintenance CAPEX from cash accruals. Hence, free reserves generated by the Company will be invested in Government Securities and Bank Fixed Deposits. This is being done as it is risk free in nature and easy to retrieve and hence can be deployed for our capital projects under consideration at any given time.
Investor Presentation | February 2024
40
Free Reserves in Fixed Income Securities
Sr. No
Name of Bank /Securities
Amount Invested (Rs. in Cr.)
Investment Date
Annual Rate of Interest/Estimated Returns (%)
Maturity Date
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
ICICI
RBL
RBL
RBL
RBL
SCB
SCB
RBL
SBI MAGNUM
KOTAK GILT
DSP MUTUAL
NIPPON INDIA
ABSL Overnight Fund
SBI Overnight Fund
ABSL Overnight Fund
SBI Overnight Fund
Total
0.50
0.50
0.90
1.00
0.45
1.00
2.01
0.50
1.00
1.00
1.00
1.00
0.75
0.75
2.54
2.54
17.44
30-Dec-22
11-Sep-23
20-Oct-23
21-Oct-23
25-Oct-23
30-Oct-23
10-Nov-23
13-Dec-23
20-Nov-23
20-Nov-23
20-Nov-23
20-Nov-23
28-Dec-23
28-Dec-23
15-Jan-24
15-Jan-24
7.00
7.80
7.80
7.80
7.80
7.25
7.35
8.00
9.31
8.03
7.89
7.61
6.75
6.75
6.75
6.75
30-Mar-24
11-Dec-24
20-Jan-25
21-Jan-25
25-Jan-25
23-Nov-24
24-Jun-24
13-Jun-25
-
-
-
-
-
-
-
-
Investor Presentation | February 2024
41
Outlook & Rationalization Measures
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
Investor Presentation | February 2024
43
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 Lerm • Recovery from current slow-down expected
by 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
•
Investor Presentation | February 2024
44
Rationalization Measures
01
02
03
04
05
Company has set up 5 MW Solar Power Plant in Gujarat region for captive consumption which will bring estimated annual savings in excess of Rs 4 cr.
Investor Presentation | February 2024
Hybrid power plant is commissioned in July, 2023. Annual Savings in power cost estimated to be realised in excess of Rs 9 crores.
Both these plants meet around 80% of the total power requirement at present capacity utilization and balance 20% being met through the state electricity board.
Reduction in throughput time for processing of castings – thus unlocking of capital from working capital needs
As a result of our continuous efforts to be a one stop solution for our customers, 70% of our turnover is in the form of machined castings.
45
Five-Year CAGR Snapshot: Unveiling Business Growth Trends
Revenue from Operations (Rs. in Cr.)
EBITDA (Rs. in Cr.)
+10.7%
477
+18.1%
114
318
302
201
158
59
64
37
31
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
EBIT (Rs. in Cr.)
PAT (Rs. in Cr.)
+21.5%
97
44
46
22
19
71
+29.7%
33
25
8
12
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Investor Presentation | February 2024
46
Company:
CIN: L27310GJ1972PLC002033 Name: Mr. Subhash Sharma, ED & CFO Email ID: ss@steelcast.net
Investor Relations Advisors:
Mr. Ronak Jain +91 9820950544 ronak.jain@linkintime.co.in
Mr. Rajesh Agrawal +91 9967491495 rajesh.agrawal@linkintime.co.in
THANK YOU