GRAVITA

GRAVITA INDIA LTD. ~~ GRAVITA Corp. Office : 402. Gravlta Tower. A-2:7 B. Shantl Path. Tllak Nagar. JAIPUR-302 004. Rajasthan (INDIA) Phone : +91-141-2623266. 2622697 FAX : +91-141-2621491 E-mail : lnfo@gravltalndla.com Web.: www.gravltalndla.com CIN : l29308RJI992PLC006870 1'1 November· 2021 GIL/2021-22/151 To, To The Listing Department The BSE Ltd. The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block-G, Dalal Street MUMBAI-400001 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/Madam, In Compliance of Regulation 30 of Schedule III of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we submit herewith the Investor Presentation on the Unaudited Financial Statements of the company for the quarter ended 30'h September, 2021. Yours Faithfully For Gravita India Limited N~ (Company Secretary) FCS: 9984 Encl.: As Above Works & Regd. Office : 'SAURABH', Chlttora Road, Dlggi-Malpura Road Tehsll : Phagl. JAIPUR-303 904. Raj. (INDIA) y We Recycle to Save Environment Phone : +91-9928070682 Email : works@gravltalndla.com INVESTOR PRESENTATION Nov 2021 Towards Clean, Green & Sustainable Future GRAVITA, Started In 1992 by First Generation Entrepreneur RAJAT AGRAWAL at JAIPUR 2 We are on an AMAZING JOURNEY 9 1 Started Aluminium & 6 0 1 Added Aluminium 2 0 Plastic recycling in 2 Recycling Africa 5 Diversified in 1 0 2 3 1 Value added Plastic recycling 0 2 products in Jaipur 0 1 Listed on 0 2 NSE & BSE 7 1st recycling 0 0 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 2025 New recycling 25%+ verticals E-Waste, Lithium, ROCE Rubber, 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 8-9% A 27% Consistent EBITDA margins External credit rating Revenue CAGR -5 Yrs Locking the margins 10 Years 64% Back-to-back hedging mechanism in place History of sustainable dividend payouts PAT CAGR -5 Yrs 60%+ Profit from overseas business with only 25% of the capital employed Capital Employed (Cr) Revenue PAT (Cr) and PAT Margin (%) 544 1410 60 6.00% 514 1348 1242 52 460 50 4.99% 431 29% 29% 33% 44 5.00% 23% 1029 25% 21% 17% 40 4.28% 61% 322 28% 33 33 4.00% 54% 16% 656 75% 71% 67% 30 67% 45% 50% 3.72% 3.0 2 1 0 3 8 % % 0 83% 79% 77% 71% 29% 431 72% 20 15 84% 2.46% 44% 71% 10 5 55% 46% 53% 50% 39% 2.0802%% 56% 148% 1.27% 1.25% 46% 1.00% 0 -48% FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 -10 0.00% India Overseas India Overseas 5 India Overseas PAT Margin QUARTERLY HIGHLIGHTS Q2 FY22 - REVENUE (Cr) 546 Changing gears - VISION 2025 446 339 30 61 61 221 %+ %+ %+ %+ Volume Revenue EBITDA PAT Q2 FY21 Q1 FY22 Q2FY22 Y-o-Y Y-o-Y Y-o-Y Y-o-Y 60.00 EBITDA* (Cr) 10.00% 50.26 50.00 9.20% 9.20% 37.40 9.00% 40.00 31.26 30.00 8.38% 8.00% 20.00 42% 36% 7.00% 10.00 Revenue from Value added products Revenue from Overseas Business - 6.00% Q2 FY21 Q1 FY22 Q2FY22 59% 77% EBITDA EBITDA % Domestic scrap collection for Indian Plants Profit from Overseas business 40 PAT (Cr) 36.95 8.00% 6.76% 30 6.00% 4.88% EBITDA per MT VOLUME (MT) 26,687 20 3.39% 21.77 4.00% 22,779 19,928 11.5 19,707 15,309 15,522 15,676 16,851 10 2.00% 12,585 9,994 7,336 0 0.00% 2,074 4 ,144 3,100 3,820 2,543 4,556 Q2 FY21 Q1 FY22 Q2FY22 PAT PAT% Q2 FY21 Q1 FY22 Q2FY22 (5,666) Q2 FY21 Q1 FY22 Q2FY22 Lead Aluminium Plastic Lead Aluminium Plastic 66 *EBITDA after adjustment of income/loss from Currency & Metal hedging RETURN ON CAPITAL EMPLOYED 25% Target ROCE 21% Consolidated 19% 18% 16% Drivers of ROCE 15% ● Improving industry 13% dynamics ● Resultant reduction in working capital ● Improving demand- supply 5% ● Value added products FY16 FY17 FY18 FY19 FY20 FY21 H1 FY22 ● 3 Years ● 25% + ● 8+ Capital Allocation policy for new projects 7 Maximum Payback period ROCE Asset turns Improving LEVERAGE & CASH FLOW Debt and Equity Operational Cash Flow (Cr) 273 256 66 250 43 233 28 -2 47 15 57 230 -20 218 222 68 21 199 21 166 49 4 41 26 19 20 15 146 103 1.26 6 1.23 1.21 97 1.1 0.95 0.87 FY16 FY17 FY18 FY19 FY20 FY21 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 Short Term Debt Long Term Debt Debt/Equity Free Cash Flow Capex *Short term Debt includes current maturities and is backed by inventory which is 100% hedged More Domestic Reduce Lower working Lower Improved Low short volumes imports capital cycle Logistic cost cash flow term debt 88 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 9 Import License OEM in India Approvals Multinational Specialist Procurement Knowledge Network Capability to Time & Cost Industry Specific Develop Customized of Entry Products ENTRY BARRIER 10 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) -Chittoor (Andhra Pradesh) -Mundra (Gujarat) Sri Lanka (Mirigama) 11 Existing Facilities Upcoming Facilities Deep Routed PROCUREMENT NETWORK 27 1400+ 1,60,000 MT+ Own yards Touch points Scrap collection Europe Touch Points-20+ Scrap collection(MT) -9,000+ Americas Own Yards -4 Touch Points-80+ Scrap collection (MT) -18,000+ Africa Asia Own Yards -22 Touch Points-300+ Own Yards -1 Scrap collection (MT) -33,000+ Touch Points-1000+ Scrap collection(MT) - 100,000+ 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 12 competitive prices Diversified CUSTOMER NETWORK - GLOBAL 40 + 300 + 1,05,000 MT + Countries Customers Recycled products delivered Europe Countries -6 Customers -8 Delivered-10,000 MT+ Americas Countries -12 Customers -37 Delivered-18,000 MT + Middle East Countries -7 Customers -23 Asia Delivered-16,000 MT+ Countries -16 Customers -250 Delivered-71,000 MT+ 13 Diversified CUSTOMER NETWORK- INDIA Gravita with pan India presence enjoys the logistic benefits by serving : 200+ ● domestic customers in 18 states in India 60+ ● overseas customers in 20 countries. 14 OPERATIONAL EXCELLENCE 3 1400+ 11 Recycling Touch Points Recycling Verticals Globally Plants 45% 1.82 73% 33% Lac+ Customized & MT Production Capacity Overseas Value added Capacity Utilzation Capacity products 1.60 1st ILA Lac+ 60000 MT+ MT Scrap Asia’s Healthy Collection Accredited Orderbook Plant 15 OUR PARTNERS (Strong Partnering Capability) 16 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 17 Specification ROBUST MANAGEMENT Dr. M. P. Agarwal Rajat Agrawal Chairman Managing Director OTHER SALIENT FEATURES • Top management with an average experience of 350 + 150+ more than 25 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 12 Yrs 4 rounds long term wealth creation for employees Average Management ESOP’s Association 18 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% 45% 44% 45% 42% Red Lead Lead Oxide Lead Balls 40% 34% 35% 32% 28% 30% 26% 25% 20% FY16 FY17 FY18 FY19 FY20 FY21 H1 FY22 19 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 $2005 $ 1947 • Metal equivalent of the scrap bought, is sold on the same $ 2379 $1867 $2122 day 8.32% 8.05% • Pricing against Customer contracts – Natural 8.61% 7.23% 8.32% Hedging 6.50% 6.05% 6.11% • Forward Contracts on LME Exchange for balance quantity-tillfinalsaletocustomer 7.23% • Coreinventorywasnotpartofbacktobackhedging 5.00% 2.50% • Gravita started hedging of core inventory also in June, 2019 2% bytakingaforwardcontactonLMEExchange. • June, 2019 onwards Gravita is enjoys stable margins and is not affectedbythecommoditypricefluctuations -1.50% FY17 FY18 FY19 FY20 FY21 EBITDA % Inventory Gain/Loss Business Margin 20 LME 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 21 INFORMAL TO FORMAL Shift from With redefining of Battery Waste Management Rules (BWMR) , Extended producers responsibility (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% ) 75% r C 70% ( t e Gravita having k r a Pan India M g presence and n i l c association y c e with OEM’s will R 30% d a benefit the most 25% e 20% L from this shift n a 9000 11550 13875 i d n FY16 FY21 FY25E I Formal Segment Market Size Informal Segment 22 *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. 56% ● 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 H1 FY22 Gravita having presence in 240 cities across India for collection of domestic scrap 23 NET WORKING CAPITAL CYCLE Reducing • More domestic scrap & Lower imports reduces transit inventory • Retail scrap collection through OEM’s - Zero working capital 63 Days 77 Days* 90 Days Future Current Earlier 30 18 25 35 27 25 35 24 20 Receivables Receivables Receivables Paid Plant Inventory ** Paid Plant Inventory ** Paid Plant Inventory ** Transit Inventory Transit Inventory Transit Inventory * After reducing inventory for the upcoming MundraPlant | ** Paid Inventory is net off Trade payables 24 ENVIRONMENT, SOCIAL & CORPORATE GOVERNANCE Focused on Capturing Value from Waste Through Modern Recycling and Recovery Recycling Waste: 3 • Uses scrap of lead, aluminum and plastic in manufacturing of finished goods and has a process in place to collect the scrap and recycle the same Recycling verticals • Systems in place to mitigate the exposure risk of hazardous materials Conserving Nature: 11 • Consciously track usage of these resources – water, energy and raw materials, throughout all operations Recycling Plants Energy Conservation: • Variable Frequency Drives are being used for all large process fan motors 1,60,000 MT+ Scrap collection • Optimization of motor and gearbox in Aluminium Ingot Casting Machine thereby reducing the power consumption of driving motor Alternate Energy Source: 1,05,000 MT + ● • Utilizing alternate sources of energy and has plans to install solar panels at the roofJ ouf dwicorioksuhso pu sshee do ff or its ORuecryc lePd prrodiucots rities delivered plants situated at Chittoor, Phagi and SEZ Jaipur thereby minimizing the consumpti c o a n p o i f t a el l ectricity from 25 commercial electricity boards 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 52 permanent women employees as on 31st March, 2021; 4.7% Women in the total workforce: 4.8% 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. 110 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 26 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 pa●y ILA Judicious use of Our Priorities Registered plants capital 27