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An Integrated Speciality Steel
&
Global Wire Rope Company
STRENGTH THROUGH INTEGRATION
Business Profile
Note: Turnover reported above represents Gross level of activities and are without adjusting inter unit/company sales
Net TurnoverStand AloneRs 1,850 Crs
ConsolidatedRs 2,514 Crs
STRENGTH THROUGH INTEGRATION
Consolidated Key Financials
Rs in Crs
STRENGTH THROUGH INTEGRATION
Net Turnover & EBIDTA Margin
Debt & DE Ratio
PAT & EPS
Financial Trends
ROCE & RONW
R s in C r s
R s in C r s
Rs
R s in C r s
(X )
Global Footprint
Aberdeen, UKGlasgow ,UK
Norway
Baku
Houston
Dubai
Jamshedpur
Bangkok
Johannesburg
Singapore
Sales Office EMMC CentersManufacturing Facilities Distribution Centers
Nottinghamshire,UK
Vietnam
Ranchi
Australia
STRENGTH THROUGH INTEGRATION
Canada
HoshiarpurJakarta
Rotterdam
Agra
Kolkata
Corporate Office
London
5
California
Iron Ore & Coal Mines(Jharkhand)
Value Addition by Value Addition by VolumeVolume
STRENGTH THROUGH INTEGRATION
Value Addition to Steel Consolidated
Revenue Revenue Distribution Distribution
(FY10)(FY10)
Lime Kiln & Producer
Gas 100 TPD
Architecture of Integrated Business
Mineral Resource Power Module Iron Making Module
Distribution Marketing & Service Module
Value Addition Module
Steel MakingModule
SMS I & II EAF 35 T & 40 T
LF & VD 150 x 150 &
110x110 Caster
SMS IIIEAF 70 T LF & VD 360 X 300
Bloom Caster
Blooming & Section
Mill275 KT
Cord 5 KTBright Bar
36 KT OT Wire 6 KT
Ongoing Capex Plan
Iron Ore Mine Est. Reserve 80 MT
Crushing & Screening
25 MWThermal
3.3 MWMBF
15 MWWHRB
20 MWThermal Ranchi
Singapore
Bangkok
Indonesia
Vietnam
Bangladesh
Australia
New Zealand
Dubai
Saudi Arabia
Netherland
South Africa
Glasgow
Houston/ California
Canada
EMMC
Aberdeen
Baku
Norway
30 MWThermal
Total - 93.3 MW
400 KT
Blast Furnace200 KT DRI
300 KT
Sinter Plant
800 KT
1,000 KT Billets
Wire Rod Mill
400 KTSection Bar
Mill50 KT
TMT Bars72 KT
Washing Plant
Coal Block – “A- C” gradeEst. Reserve 40 MT
Oxygen5000 CM/H
Ranchi 174 KTHoshiarpur 52 KTJamshedpur 30 KTBangkok 44 KTUK 10 KTDubai 16 KT
STRENGTH THROUGH INTEGRATION
Production Volume GrowthConsolidated
26%
BilletsRolled
ProductsBright Bars
Wires & Strands
Wire Ropes
Q o QQ o Q
Y o YY o Y
57%
48%
41%
3%
5%
20%
16%
16%
12%
Note: Figures includes production during trial runs.Note: Figures includes production during trial runs.
STRENGTH THROUGH INTEGRATION
Financial Highlights Consolidated
9%
15%
140%
9%
Financial Performance Consolidated
ParticularsQtr IVFY 10
QoQ 12 M FY 10
YoY
Gross Sales 678.82 2630.33
Net Sales 644.47 2514.41
PBDIT% of Sales
141.0521.9 %
495.0119.7 %
PBT 72.58 240.04
Net Profit 69.20 168.62
EPS 2.36 6.46
9 %
38 %
64 %
140 %
105 %
9 %
15 %
7 %
14 %
9 %
13 %
16 %
STRENGTH THROUGH INTEGRATION
Particulars Mar – 10 Mar – 09
ROCE (%) 18.1% 24.1%
RONW (%) 13.7% 19.2%
EPS (FV Rs 1/-) (Rs) 6.5 7.4
Debt Equity Ratio (x) 1.0 2.0
Debt / EBITDA Ratio (x) 3.5 4.3
Interest Cover (x) 3.9 3.7
Financial Ratios Consolidated
Including capex L/C’s
STRENGTH THROUGH INTEGRATION
Sales RealisationQ o PQ (Standalone)
Rs per Mt
Wire Rods & Bar (43%)
Bright Bar (3%)Wire & Strand (24%)
Wire Ropes (30%)
5 % 1 %
1 %3 %
STRENGTH THROUGH INTEGRATION
Sales RealisationQ o Q (Standalone)
Rs per Mt
Wire Rods & Bar (43%)
Bright Bar (3%)Wire & Strand (24%)
Wire Ropes (30%)
1 % 6 %
10 %4 %
STRENGTH THROUGH INTEGRATION
Sales RealisationY o Y (Standalone)
Rs per Mt
Wire Rods & Bar (38%)
Bright Bar (4%)Wire & Strand (23%)
Wire Ropes (35%)
23 % 15 %
10 %18 %
STRENGTH THROUGH INTEGRATION
Key Highlights
Successful commissioning of projects.
MBF, Sinter Plant & 20 MW CPP to be commissioned in H1 & H2 of FY'11.
Coal mines fully operational.
Weak business conditions affecting selling prices & margins though of late indications of improvements.
Equity raising of Rs.468.15 Crs helped to reduce gearing from 2.0 to 1.0, including capex L/Cs.
STRENGTH THROUGH INTEGRATION
STRENGTH THROUGH INTEGRATION
Cost Optimisation Plan
Enhanced capacities with improved business conditions are likely to be positive for performance.
Plans to further increase cost competitiveness by setting up –
Coke Oven Plant
Pellet Pant
DRI Plant
Power Plant
Ore Beneficiation facilities
Estimated project outlay of Rs 1,200 Crores to be funded by Debt & internal accruals over a period of 36 months.