GRAVITA

GRAVITA INDIA LTD. ~~ GRAVITA Corp. Office :GraVJla Tower, A-27 B, Shanll Path, T1lak Nagar, JAJPUR-30200'1, RajastJ1an (INDIA) Phone ;i9l-14J-2623266,2622697 FAX :i9l-141-2621491 Web : www.cravjt,1lttdi,1.ro.m CIN:-L29308RJ1992PLC006870 23"'1 January, 2023 GIL/2022-23178 To, To The Listing Dcpart111ent The BSE Ltd. The National Stock Exchange of India Ltd. Phirozc Jeejeebhoy Towers Exchange Plaza, C-1, Block-G, Dalal Street MUMBAl-40000 I Bandar-Kurla Complex, Bandar(E) Fax No.: 02222723121 Mumbai-400 051 Company Code: 533282 Fax No.: 022-26598237/38 Company Code: GRAVITA Subject: Intimation under Regulation 30 of SEBI (LODR) Regulation, 2015 Dear Sir/Mada111, In Compliance or Regulation 30 or Schedule Ill or SEBI (Listing Obligation and Disclosure Requ i reme n ts) Rcgu lations, 20 15, we submit herewith the Investor Presentation on the Unaudited Financial Statements of the company for the quarter ended 31111 December, 2022. Yours h1ithlull) For Gravita India Limited Nitin Gupta (Company Secretary) FCS: 9984 Encl.: As Above WORKS & Regd. Office: 'SAURABH', Chillora Road, Digg1 Malpura Road 0 Tehsil: Phagi, JAIPUR-303 904, Raj. (INDIA) We Recycle to Save Environment Phone: +91-141-2623266, 2622697 FAX : +91-141-2621491 Email: companysecretary@gravitaindia.com INVESTOR PRESENTATION Jan 2023 Towards Clean, Green & Sustainable Future GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2 We are on an AMAZING JOURNEY 2 2 Added Rubber 1 New recycling facility at 2 0 2 0 Recycling 2 Mundra port 9 1 Started Aluminium & 0 2 Plastic recycling in Africa 6 1 Added Aluminium 0 2 Recycling 5 Diversified in 1 0 2 3 1 Value added Plastic recycling 0 2 products in Jaipur 0 1 Listed on 0 7 1st recycling 0 2 0 NSE & BSE 2 unit in Ghana 1 0 0 1st Overseas recycling 4 2 Lead recycling 9 9 unit at Sri-Lanka 1 plant in Jaipur 3 VISION 2026 New recycling 25%+ verticals Rubber, Lithium, ROCE Copper & Paper 50%+ 25% + Value added products Revenue CAGR 25%+ 35% + Non-Lead business Profitability Growth ● ● ● Shareholder value Return accretive Judicious use of Our Priorities creation growth capital 4 FINANCIAL Highlights ~ 9% A 26 % Consistent EBITDA margins External credit rating from ICRA Revenue CAGR -5 Yrs Locking the margins 11 Years 34 % Back-to-back hedging mechanism in place History of sustainable dividend payouts PAT CAGR -5 Yrs 75% Profit from overseas business with only 30% of the capital employed PAT (Cr) and PAT Margin (%) Revenue 160 8.00% Capital Employed (Cr) 2216 6.69% 2052 139 137 140 7.00% 898 6.29% 807 120 6.00% 36% 36% 40% 1348 100 5.00% 31% 28% 1410 4.28% 1242 64% 75% 544 1029 29% 80 4.00% 514 25% 33% 3.20% 431 460 29% 23% 67% 28% 64% 60 2.46% 3.001%7% 21% 64% 52 71% 67% 40 44 2.00% 69% 60% 75% 1.25% 33 61% 71% 72% 20 55% 15 48% 25% 36% 1.00 8 % 3% 79% 77% 45% 47% 52% 39% 53% 0 0.00% FY18 FY19 FY20 FY21 FY22 9M FY23 FY18 FY19 FY20 FY21 FY22 9M FY23 FY18 FY19 FY20 FY21 FY22 9M FY23 India Overseas India Overseas PAT Margin India Overseas 5 QUARTERLY HIGHLIGHTS Q3 FY23 - REVENUE (Cr) Changing gears - VISION 2026 789 683 557 34 42 31 28 %+ %+ %+ %+ Volume Revenue EBITDA PAT Q3FY22 Q2FY23 Q3FY23 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 80.00 EBITDA* (Cr) 70.91 12.00% 65.06 54.21 11.00% 60.00 10.00% 40.009.74% 9.53% 8.98% 45% 30% 9.00% Revenue from Value added products Revenue from Overseas Business 20.00 8.00% - 7.00% 40% 65% Q3FY22 Q2FY23 Q3FY23 Domestic scrap collection for Indian Plants Profit from Overseas business EBITDA EBITDA % PAT (Cr) 60.00 7.20% 50.20 50.00 44.57 7.00% EBITDA per MT 40.007.06% 39.32 6.80% VOLUME (MT) 6.53% 28,287 31,060 33,868 30.00 6.36% 6.60% 25,318 20.00 6.40% 17,213 17,010 17,033 15,756 12,404 14,120 10.00 6.20% 10,144 9,339 - 6.00% 3,660 4,331 4,123 5,840 3,398 Q3FY22 Q2FY23 Q3FY23 3,183 PAT PAT% Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Lead Aluminium Plastic Lead Aluminium Plastic 66 *Revenue / EBITDA after adjustment of income/loss from Currency & Metal hedging RETURN ON CAPITAL EMPLOYED 25% + Target ROCE 30% 29% Consolidated Drivers of ROCE 21% ● Improving industry 19% 18% dynamics 16% ● Resultant reduction in working capital 12% ● Improving demand- supply ● Value added products FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 *on Average Capital Employed ● 3 Years ● 25% + ● 8+ Capital Allocation policy for new projects 7 Maximum Payback period ROCE Asset turns Capacity Expansion over the Years 2,40,000 24,600 2,20,000 4,25,000 MTPA 23,400 30,000 2,00,000 Capacity expected by 22,000 1,80,000 1,73,119 FY 2026 26,400 26,400 1,59,519 1,60,000 26,400 19,200 19,200 1,40,000 13,200 1,21,819 1,21,819 1,20,000 1,12,819 1,00,000 FY19 FY20 FY21 FY22 9MFY23 Lead Aluminium Plastic *Figures are in Metric Tons 8 CAPEX Trend over the years Project Updates Senegal -started Aluminium Recycling ● Annual capacity – 4,000 MTPA ● Investment made –Rs.3.5Cr. (from internal accruals) 88.12 ● Expectation of Rs.60 Cr. additional revenues and gross margin of 20% 72.8 67.74 Ghana -started Plastic Recycling ● Annual capacity – Phase 1 –1200MTPA 40.53 ● Further plan to increase capacity to 2,700 MTPA in Phase 2 21.28 ● Investment made –Rs.1.9Cr. (from internal accruals) 14.92 Togo -started Aluminium Recycling ● Annual capacity – 4,000 MTPA FY18 FY19 FY20 FY21 FY22 9M FY23 ● Investment made –Rs.11Cr. (from internal accruals) ● Expectation of Rs.60 Cr. additional revenues and gross margin of 26% *Figures are in INR Cr 9 Leveraging existing GRAVITA’S STRENGTHS Our Entry into new verticals is based on proven, existing Gravita’s Strengths. Diversified Deep Routed Customer procurement network network Operation Excellence 10 Import License OEM in India Approvals Multinational Specialist Procurement Knowledge Network Capability to Time & Cost Industry Specific Develop Customized of Entry Products ENTRY BARRIER 11 GLOBAL & PAN INDIA Operations ● Global spread helps reduce logistics costs and procure material cheaper. ● Start small > grow volumes > establish new plants close to procurement sources. ● Increased flexibility in recycling closest to raw material access and consuming markets. Head Quarters India (Jaipur, RJ) Americas Nicaragua (Managua) Asia Africa India Ghana (Accra) -Kathua(J&K) Senegal (Dakar) -Jaipur (Rajasthan) Mozambique (Maputo) -Jaipur SEZ (Rajasthan) Tanzania (Dar-es-Salam) -Gandhidham(Gujarat) Togo (Lome) -Chittoor (Andhra Pradesh) -Mundra (Gujarat) Sri Lanka (Mirigama) 12 Existing Facilities Upcoming Facilities Deep Routed PROCUREMENT NETWORK 29 1400+ 1,80,000 MT+ Own yards Touch points Scrap collection Europe Touch Points-20+ Scrap collection(MT) -7,000+ Americas Own Yards -4 Touch Points-80+ Scrap collection (MT) -13,000+ Africa Asia Own Yards -24 Touch Points-300+ Own Yards -1 Scrap collection (MT) -50,000+ Touch Points-1000+ Scrap collection(MT) - 110,000+ DeDepe perpes epnrcee isne Ansiac e, A firnic aA , sMiiadd ,le A Eafsrti,c Eaur o,p Me &i dAmdeleric Ea eanssutr,e Es ruawro mpatee r&ial Aatm comerpiectiativ ee pnrsicuesres raw material at 13 competitive prices Diversified CUSTOMER NETWORK - GLOBAL 35 + 300 + 1,30,000 MT + Countries Customers Recycled products delivered Europe Countries -5 Customers -8 Delivered-10,000 MT+ Americas Countries -10 Customers -37 Delivered-11,000 MT + Middle East Countries -6 Customers -23 Asia Delivered-19,000 MT+ Countries -14 Customers -250 Delivered-90,000 MT+ 14 Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : 200+ ● domestic customers in 22 states in India 75 + ● overseas customers in 31 countries. 15 OPERATIONAL EXCELLENCE 4 1400+ 13 Recycling Touch Points Recycling Verticals Globally Plants 43% 2.27 63% 37% Lac+ Customized & MT Production Capacity Overseas Value added Capacity Utilzation Capacity products 1.80 ILA Lac+ 60000 MT+ MT Scrap India’s only Healthy Collection Accredited Orderbook Plant 16 OUR PARTNERS (Strong Partnering Capability) 17 TURNKEY SOLUTIONS Gravita offers for Lead Acid Battery Recycling ● In house Lead Acid Battery Recycling Technology ● Technical Consultancy & Services for Lead Recycling & Smelting ● PLC based Control & Monitor System for advanced set-ups ● Annual Maintenance Contracts ● Executed more than 50 turnkey projects globally including Qatar, UAE, Saudi Arabia, Poland, Chile. ● Helps in reducing capital expenditure ● Regular R&D for cost effective & environment friendly processing. Planning and Design Fabrication Testing Installation Operation Handover 18 Specification ROBUST MANAGEMENT Dr. M. P. Agarwal Rajat Agrawal Chairman Managing Director OTHER SALIENT FEATURES • Top management with an average experience of 400 + 150+ more than 26 Yrs in diversified industries Employees Professionals (CA’s, MBA’s, Engineers) • Separate SBU heads for all verticals • Incentive scheme throughout the organisation 35 Yrs 5 Yrs Average Employee Age Average Employee Association • Creating wealth of employees by granting Employee Stock Options to them • 2% equity holding in Employee Welfare Trust for 14 Yrs 4 rounds long term wealth creation for employees Average Management ESOP’s Association 19 CUSTOMIZED AND VALUE ADDED PRODUCTS Our Capability to produce customized and value added products for diversified customer segments gives us better contributions and larger pie of Customized Lead Alloys Lead Sheets Lead Bricks customer's product mix. Value Added Products % in revenue 50% 44% 43% 45% 42% 42% Red Lead 40% Lead Oxide 34% 35% 32% 28% 30% 25% 20% FY17 FY18 FY19 FY20 FY21 FY22 9M FY23 20 Customized Aluminium Alloys Plastic Granules Pet Flakes -Food grade BACK TO BACK HEDGING Risk Mitigation by mechanism Core Inventory +Back-to-Back Back-to-Back Hedging Hedging • Tomitigate the riskofcommodity pricesfluctuation fromJune. 2016 $ 2379 $ 2283 $ 2093 • Metal equivalent of the scrap bought, is sold on the same $1867 day $ 2122 $1947 9.70% 9.78% • Pricing against Customer contracts – Natural 8.32% 9.78% Hedging 8.61% 9.70% 7.23% • Forward Contracts on LME Exchange for balance 6.50% 6.11% quantity-tillfinalsaletocustomer 7.23% 8.32% • Coreinventorywasnotpartofbacktobackhedging 2.50% • Gravita started hedging of core inventory also in June, 2019 bytakingaforwardcontactonLMEExchange. 5.00% • June, 2019 onwards Gravita is enjoys stable margins and is not -1.50% affectedbythecommoditypricefluctuations FY18 FY19 FY20 FY21 FY22 9M FY23 EBITDA % LME Inventory Gain/Loss Business Margin 21 MARKET DYNAMICS IN RECYCLING - Improving Paradigm Shift Vehicle BWMR EPR Scrappage GST Policy PARADIGM SHIFT More Shift from Tie-ups Reduced Better Improved availability informal to with working capacity logistics of domestic formal OEM's capital cycle utilizations scrap 22 INFORMAL TO FORMAL Shift from With redefining of Battery Waste Management Rules (BWMR) , Extended producersresponsibility (EPR) and stricter implementation of GST, the scrap availability for formal recycling sector has increased and is further expected to grow. Informal Lead recycling trend in India 80% ) r C 75% ( t e Gravita having k 65% r a Pan India M g presence and n i l c association y c e with OEM’s will R 35% d a benefit the most e L n 20% 25% from this shift a i d 9000 12000 13875 n I FY16 FY22 FY26E 23 Formal Segment Market Size Informal Segment *Source -Management estimate DOMESTIC SCRAP More availability of % of Raw materials domestically ● With shift of scrap from Informal to formal for processing collected within India through a authorized recycler. 54% ● Contracts with battery manufacturers 45% ● PAN India collection of scrap from corporates ● Contracts with various chains of workshops 29% 24% 20% 18% Domestic scrap collection partners 14% FY16 FY17 FY18 FY19 FY20 FY21 FY22 Gravita having presence in 240 cities across India for collection of domestic scrap 24 NET WORKING CAPITAL CYCLE Reducing • More domestic scrap & Lower imports reduces transit inventory • Retail scrap collection through OEM’s - Zero working capital 65 Days 80 Days* 95 Days March’26 Sept’22 March’22 9 15 11 34 24 36 35 46 30 Receivables Receivables Receivables Paid Plant Inventory * Paid Plant Inventory * Paid Plant Inventory * Transit Inventory Transit Inventory Transit Inventory • Paid Inventory includes advance to vendors and net off Trade payables 25 • Based on Avg Core working capital ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Focused on Capturing Value from Waste Through Modern Recycling and Recovery Recycling Waste: 4 • Uses scrap of lead, aluminum ,plastic and rubber in manufacturing of finished goods and has a process in Recycling verticals place to collect the scrap and recycle the same • Systems in place to mitigate the exposure risk of hazardous materials 12 Conserving Nature: Recycling Plants • Consciously track usage of these resources – water, energy and raw materials, throughout all operations Energy Conservation: 1,80,000 MT+ • Utilizing alternate sources of energy by installing solar panels for its plants situated at Mundra, Chittoor, Phagi Scrap collection and SEZ Jaipur thereby minimizing the consumption of electricity from commercial electricity boards Alternate Energy Source: • Uses pyrolysis oil generated during waste rubber recycling process as an alternate source of energy for 1,30,000 MT + recycling of Lead & Aluminium ● Judicious use of ORuecryc lePd prrodiuocts rities • Using carbon briquettes as an alternate source of energy during recycling process delivered capital 26 ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Involved in Making Holistic & Meaningful Contributions to Society 4 • Engagement Platforms of Customers & Partners: Customers: Regular business meetings, Customer Round of ESOPs satisfaction survey 2% • Product/Service Safety and Quality: Identify areas for improvement at every stage of manufacturing to Equity holding in Employee provide the best value possible in the products Gravita produce Welfare Trust • Diversity and Inclusion: The Company has 67 permanent women employees as on 31st March, 2022; 4% Women in the total workforce: 4% Women employees • Lower Staff Turnover Rate: Attrition at Ages; Age upto 30 years -3%; age from 31 to 44 years (2%) and OHSAS 18001 age above 44 years (1%) Certified • Employee Well Being Programs: Well-defined policies/principles in place to foster utmost employee safety and wellbeing which not only takes care of the wellness of employees but also the environment Rs. 73 Lakh CSR spending ● Judicious use of Our Prioritie• sCSR Initiatives: Main focus of the CSR activities of the Company is on health, education and environment capital 27 ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Fosters a Culture of High Ethical Standards, Accountability and Transparency 50% • Business Ethics: Always worked towards building trust with shareholders, employees, customers, suppliers Independent directors and other stakeholders based on the principles of good corporate governance, viz., integrity, equity, transparency, fairness, disclosure, accountability and commitment to values A Ratings by Brickworks • Details of Related Party Transactions: Detail of transaction and balance outstanding with related parties is ISO 9001 : 2015 provided in annual report Certified ISO 14001: • Board of Directors: 50% of directors are independent 2015 Certified • Financial Expertise on Audit Committee: All the members of the Audit committee are financially literate ISO 45001 : and possess thorough knowledge of accounting or related financial management expertise 2018 Certified • Executive Pay Performance Alignment Policies:Remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay ILA ● Judicious use of Our Priorities Registered plants capital 28