GRAVITA

GRAVITA INDIA LTD. Corp. Office :Gravita Tower, A-27 B, Shanti Path, Tilak Nagar, JAIPUR-302004, Rajasthan (INDIA) Phone : +91-141-2623266, 2622697 FAX : +91-141-2621491 Web : www.gravitaindia.com CIN:- L29308RJ1992PLC006870 23rd January, 2024 GIL/2023-24/132 To, The BSE Limited The Listing Department Phiroze Jeejeebhoy Towers The National Stock Exchange of India Ltd. Dalal Street, Exchange Plaza, C-1, Block G, Mumbai- 400 001 Bandra- Kurla Complex, Bandra(E) Fax No.: 022-22721919 Mumbai- 400 051 Ref: Company Code: 533282 Fax No.: 022-2659 8120 Ref: Company Code: GRAVITA Subject: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir/Madam, In Compliance of Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith the Investor Presentation on the Un-Audited Financial Results of the Company for the Quarter and Nine months ended 31st December, 2023. Yours Faithfully For Gravita India Limited Nitin Gupta (Company Secretary) FCS: 9984 Encl.: As Above Regd. Offic e: ‘SAURABH’, Chittora Road, Diggi-Malpura Road Tehsil: Phagi, JAIPUR- 303 904, Raj. (INDIA) Phone: +91-141-2623266, 2622697 FAX : +91-141-2621491 Email: companysecretary@gravitaindia.com INVESTOR PRESENTATION Jan 2024 Towards Clean, Green & Sustainable Future GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2 We are on an AMAZING JOURNEY Added Rubber 2 2 Recycling, 1 New recycling facility at 2 0 2 0 Became MCX 2 Mundra port empaneled brand 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 Building a Green World through Recycling Unwavering commitment to sustainability- driven values continues to light the growth path. Vision Core Values Business Verticals To be the most valuable ❖ Fairness Existing: company in the recycling ❖ Trust ❖ Lead space globally. ❖ Respect ❖ Aluminium ❖ Passion ❖ Plastic ❖ Nurturing Relationship Mission ❖ Rubber ❖ Turnkey Solutions Rank among the top five global Social Responsibility recycling companies by 2026, Upcoming Diversifications: driven by ❖ Community development ❖ Lithium-ion ❖ Diversification ❖ Advance education ❖ Steel ❖ Sustainable growth ❖ Combat hunger ❖ Paper ❖ Eco-friendly innovation ❖ Safeguard the environment ❖ Stakeholder value creation 4 Management Commentary & Business Outlook "Gravita is strongly progressing towards achieving its ambitious Clear Vision 2027 focusing on diversifying into new business verticals, attaining a revenue cagr and profitability growth of 25%+ and 35%+. Our strategies of expanding the capacities, increasing the proportion of value-added products and back to back hedging for risk mitigation has shown results in the form of strong and sustainable margins. We are confident that, with the same level of commitment and teamwork, we will achieve our mission to Rank among the top five global recycling companies by 2026. Coming to Q3 & 9MFY24 performance, I am pleased to report that our company has delivered a strong financial & operational performance. Volumes, Revenue, EBITDA and PAT for nine months have increased by 5%, 12%, 19% and 24% resp. ROCE and proportion of Value-added products for 9MFY24 stood strong at 26% and 47% respectively. With the support of all the stakeholders, we are confident that we will be able to achieve our Vision 2027” Yogesh Malhotra Whole Time Director & CEO 5 FINANCIAL Highlights 9-10% A+ 22 % Consistent EBITDA margins External credit rating from ICRA Revenue CAGR -5 Yrs Locking the margins 12 Years 35 % Back-to-back hedging mechanism in place History of sustainable dividend payouts PAT CAGR -5 Yrs 40% 40 Cr + Reduction in Debt in FY 2023 PAT (Cr) and PAT Margin (%) Capital Employed (Cr) Revenue 2801250 8.00% 7.18% 7.00% 201 969 2216 200 6.00% 37% 6.32% 807 5.00% 28% 36% 150 139 51% 39% 1410 31% 1242 25 1 % 348 29% 33% 4.00% 514 544 33% 100 67% 3.20% 75% 460 25% 29% 2.46% 3.00% 23% 29% 21% 63% 69% 61% 64% 52 2.00% 75% 71% 67% 50 1.25% 33 79% 77% 71% 61% 49% 1.00% 15 48% 25% 47% 52% 39% 0 53% 0.00% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 India Overseas India Overseas India Overseas PAT Margin 6 QUARTERLY HIGHLIGHTS Q3 FY24 - REVENUE (Cr) Riding Higher - VISION 2027 836 789 -7 -4 26 20 758 % % %+ %+ Volume Revenue EBITDA PAT Q3FY23 Q2FY24 Q3FY24 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 89.68 100.00EBITDA* (Cr) 11.82%12.00% 79.84 80.00 70.91 11.00% 42% 36% 17% 60.00 10.00% 9.56% 40.00 9.00% 8.98% Revenue from Value Revenue from Y-o-Y Increase in 20.00 8.00% added products Overseas Business Production - 7.00% Q3FY23 Q2FY24 Q3FY24 EBITDA per MT VOLUME (MT) 23,377 EBITDA EBITDA % 38,769 17,010 17,033 17,673 33,868 34,488 80.00 PAT (Cr) 10.00% 60.27 57.86 7.95%8.00% 60.00 50.20 6.92% 11,679 9,339 11,080 9,110 11,073 6.36% 6.00% 40.00 4.00% 20.00 5,840 2.00% 3,398 3,404 3,018 3,264 2,458 - 0.00% Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Lead Aluminium Plastic Lead Aluminium Plastic PAT PAT% 77 *Revenue / EBITDA after adjustment of income/loss from Currency & Metal hedging Project Updates • Started commercial production of plastic at its existing recycling plant Tanzania • Capacity – 1,800 MTPA • Capex – Rs. 2.25 Cr. From internal accruals • Started commercial production of lead from its existing recycling plant Togo • Capacity – 6000 MTPA • Capex – Rs. 3.61 Cr. From internal accruals Chittoor • Increased capacity of Lead recycling to 64,640 MTPA • Capex - Rs.21 Cr. from internal accruals • Started Rubber Recycling Tanzania • Capacity of 3,000 MTPA • Capex – Rs.3.86 Cr. from internal accruals • Increased capacity of Lead recycling to 60,000 MTPA Mundra • Started Value Added Production of Red Lead with a Capacity of 4,800 MTPA • Started Plastic Recycling with a Capacity of 7,500 MTPA • Gravita signed MOU to establish Battery Recycling Plant through JV Oman • Capacity of 6,000 MTPA in Phase 1 • Gravita’s first recycling facility in Middle East 8 VISION 2027 New recycling 25%+ Verticals Lithium, Steel & Paper ROCE 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 9 Capacity Expansion & CAPEX over the Years CAPEX (Rs Cr.) Capacity (MT) 4,34,319 159 148 3,95,319 3,24,319 110 110 105 100 2,33,919 2,04,919 73 45 FY22 FY23 FY24E FY25E FY26E FY22 FY23 FY24E FY25E FY26E Lead Aluminium Plastic Rubber Total Existing Verticals New Verticals Rs. 600+ 4,25,000 MTPA Capacity planned by FY 2026 Cr Capex planned by FY 2026 10 RETURN ON CAPITAL EMPLOYED 25% + Target ROCE Consolidated 29% 29% 26% Drivers of ROCE ● Improving industry 18% dynamics 16% ● Resultant reduction in working capital ● Improving demand- supply ● Value added products FY20 FY21 FY22 FY23 H1 FY24 *on Average Capital Employed ● 3 Years ● 25% + ● 8+ Capital Allocation policy for new projects 11 Maximum Payback period ROCE Asset turns NET WORKING CAPITAL CYCLE Reducing • Processing of Scrap near to the source – Avoid Transits • Retail scrap collection through OEM’s - Zero working capital 65 Days 86 Days* 95 Days March’26 Sep’23 March’22 15 17 15 15 21 34 46 48 35 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 12 • Based on Avg Core working capital 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 13 OEM Approvals Import License in India Takes time to get products Based on past years performance approved from OEM’s Multinational Specialist Knowledge Procurement Network Experience & Technical Know-how Global Presence Capability to Time & Cost of Entry Industry Specific Develop Customized Customer Base,Capacity procurement networks Products ENTRY More Value-added products for better margins BARRIER 14 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) America Dominican Republic Asia Africa India Ghana (Accra) -Kathua(J&K) Senegal (Dakar) -Jaipur (Rajasthan) Mozambique (Maputo) -Jaipur SEZ (Rajasthan) Tanzania (Dar-es-Salam) -Chittoor (Andhra Pradesh) Togo (Lome) -Mundra (Gujarat) -Sri Lanka (Mirigama) -Oman (Muscat) 15 Existing Facilities Upcoming Facilities Deep Routed PROCUREMENT NETWORK 31 1500+ 2,05,000 MT+ Own yards Touch points Scrap collection Europe Touch Points-15+ Scrap collection(MT) -5,500+ Americas Touch Points-75+ Africa Scrap collection (MT) -19,000+ Asia Own Yards -26 Own Yards -5 Touch Points-450+ Touch Points-1000+ Scrap collection (MT) -62,000+ Scrap collection(MT) -118,500+ 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 16 competitive prices Diversified CUSTOMER NETWORK - GLOBAL 38 + 375 + 1,55,000 MT + Countries Customers Recycled products delivered Europe Countries -10 Customers -18 Delivered-17,500 MT+ Americas Countries -9 Middle East Customers -27 Countries -5 Delivered-6,000 MT + Customers -26 Asia Delivered-24,000 MT+ Countries -14 Customers -304 Delivered-1,07,500 MT+ 17 Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : ● 230+ domestic customers in 22 states in India ● 90+ overseas customers in 36 countries. 18 OPERATIONAL EXCELLENCE 4 11 1500+ Recycling Recycling Touch Points Verticals Plants Globally 47% 2.86 57% 29% Lac+ Customized & MT Production Capacity Overseas Value added Capacity* Utilization Capacity* products 2.05 ILA Lac+ 60000 MT+ MT Scrap India’s only Healthy Collection Accredited Orderbook Plants 19 * As on 23rd Jan 2024 OUR PARTNERS (Strong Partnering Capability) 20 TURNKEY SOLUTIONS for Recycling Executed more than 50 turnkey projects globally including Qatar, UAE, Saudi Arabia, In house Recycling Technology Poland, Chile Turnkey Technical Consultancy & Solutions Annual Maintenance Contracts Services for Recycling Regular R&D for cost effective & PLC based Control & Monitor environment friendly processing. System for advanced set-ups Planning and Design Fabrication Testing Installation Operation Handover 21 Specification ROBUST MANAGEMENT & focus on Human Capital 27 Yrs + 175+ Avg Management Experience Professionals in diversified Industries (CA’s, MBA’s, Engineers) Rajat Agrawal Yogesh Malhotra 100% Managing Director Whole Time Director & CEO 5 Yrs Employees covered under Average Employee incentive schemes Association 35 Yrs 15 Yrs Average Management Average Employee Age Association Vijay Pareek Naveen Sharma Rajeev Surana Executive Director* Executive Director* Executive Director* 4 rounds 625 + Employees ESOP’s Sunil Kansal Ajay Thapliyal Chief Financial Officer Vice President 22 * Non-Board Member 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 55% 50% 50% 47% 44% 43% 45% 42% 42% Red Lead Lead Oxide 40% 35% 30% 25% 20% FY20 FY21 FY22 FY23 9M FY24 FY27E 23 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 • To mitigate the risk of commodity prices fluctuation $ 2379 from June. 2016 $2283 $2105 • Metal equivalent of the scrap bought, is sold on the $1867 10.21% same day $ 2122 $1947 9.70% 10.21% • Pricing against Customer contracts – Natural 8.32% 8.61% 9.70% Hedging 7.23% 6.50% 6.11% • Forward Contracts on LME Exchange for balance quantity - till final sale to customer 7.23% 8.32% • Core inventory was not part of back to back 2.50% hedging 5.00% • Gravita started hedging of core inventory also in June, 2019 by taking a forward contact on LME Exchange. -1.50% • June, 2019 onwards Gravita is enjoys stable margins FY18 FY19 FY20 FY21 FY22 FY23 and is not affected by the commodity price fluctuations EBITDA % LME Inventory Gain/Loss Business Margin 24 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 25 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 FY23 FY26E 26 Formal Segment Market Size Informal Segment *Source -Management estimate Sustainable Circular Business Model Lead, Aluminium, Plastic, and Rubber scrap from various sources. Last mile Procurement Segregation / Continuous engagement to ensure customer Customer Sorting / Segregation and sorting of scrap materials Satisfaction / satisfaction along with continual R&D. Quality R&D with rigorous quality inspections. Inspection Business Model Ensuring quality meets industry standards. Quality Eco-friendly Smelting & Refining of Lead and Aluminium, Check & Timely and efficient delivery to OEM’s. Processing Shredding and reprocessing plastic & rubber. Delivery Value Added Products Manufacturing of Lead Alloys, Red Lead and associated products, Aluminium Alloys and Plastic Granules. 27 ENVIRONMENT, Social & Corporate Governance Deriving Value from Waste through Modern Recycling and Recovery 4 11 ISO 2.05 1.55 Lac+ Lac+ 14001:2015 Recycling Recycling MT Scrap MT Products Certified Verticals Plants Collection* Delivered Alternate Energy Source - Clean Technology Waste Recycling Conserving Nature Solar Initiatives • Lead - 113,156 MT recycled ▪ Low energy intensity of 3.4 ▪ 1.4 MW of solar capacity ▪ 100% Zero Discharge GJ/MT of products (Approx installed & expanding – plants 75% less from primary generates 12% power for • Aluminium - 9,419 MT production) Phagi plant recycled • Installed Sewerage & Effluent Treatment Plant • Low water intensity of • Plans underway to install and Neutralization system • Plastics - 13,043 MT 0.233 KL/MT of products solar at Mundra (India) and in factory premises for recycled Ghana facility water treatment. 28 Environment, SOCIAL & Corporate Governance Aiming to make Holistic & Meaningful Contributions to Society 4 6% ISO ₹1.02 CR 45001:2018 Rounds of Women CSR Spending Certified ESOPs Employees Received Euro 34Mn Loan 100% Health insurance Zero fatalities for FY23 from development funds for coverage for employees Africa operations Gurukul platform with 3000+ 60% of input sourced from Best in class dormitories for skill enhancement courses at sustainable means workers working on site free of cost 29 Environment, Social & CORPORATE GOVERNANCE Weaving a Culture Rich in Ethics, Accountability and Transparency Board Composition 50% • 50% Independent Directors on board & 16% board diversity Independent Directors Zero Complaints A+ ▪Zero complaints of ethical breaches and non-compliance with statutory requirements across Ratings by our plants. ICRA Achievements ILA * ▪Recognized as a 4-star Export House by the Government of India. Registered • MCX empaneled brand for refined Lead. Plants MCX Executive Compensation Policy Empaneled ▪Compensation for Directors, KMP, and Senior Management are designed to strike balance Brand between fixed and incentive-based components to drive business growth ISO 9001:2015 Detailed Disclosures Certified • Materiality Policy, Related Party Transactions, Certifications, and other material information are promptly disclosed in all public documents 30 *ILA – International Lead Association, a global Lead trade association Thank You SAVE THE PLANET Company Contact: Investor Relations Contact: Sana Kapoor Sheetal Khanduja Mr. Nitin Gupta (Company Secretary) Gravita India Limited Go India Advisors Go India Advisors CIN:L29308RJ1992PLC006870 sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com companysecretary@gravitaindia.com M:+91 81465 50469 M:+91 97693 64166 M:+91 70733 32660