kirloskar ferrous industries limited - kfil · our products water-jacketed blocks non...

Kirloskar Ferrous Industries

Limited

Q4 FY19 Analyst Meet Presentation

May 31, 2019

Kirloskar Ferrous Industries Limited

31-May-2019 This is a proprietary document of Kirloskar

Ferrous Industries Limited 2

Leadership Team

Business and Products

Executive summary

End use profile

Competitive edge

Financials

Top 20 Investors

Update on Major Projects

Awards

R.V.Gumaste Managing Director

Leadership Team



Narayana P Head H.R

R.S.Srivatsan CFO

N.B.Ektare Plant Head - Koppal

S.L.Kulkarni Plant Head - Solapur

C.S.Panicker Company Secretary

Our Business



The Company has advanced manufacturing facility at Koppal and Solapur.

Koppal plant is strategically located near Hospet-Bellary-Sandur iron ore area.

Pig iron - Capacity-3,91,400 MT

Casting - Capacity-90,000 MT

The Solapur plant has casting manufacturing facility - Capacity-40,000 MT

Both Koppal and Solapur units have forward integration to machining facility for castings

Our Products

Water-jacketed Blocks

Non Water-jacketed Blocks

Cylinder Heads

Housings



Foundry Grade

S. G. Grade

Basic Grade

PIG IRON

CASTINGS

Executive Summary



Highest Sales of Rs.2159 Crores achieved in 2018-19

Both Pig Iron and Castings sales increased by 28% in terms of value compared to previous year

Highest PBT of Rs.147 Crores achieved in 2018-19

Credit rating of [ICRA]AA- for long term and [ICRA]A1+ for short term maintained

Commissioned 10 MW (AC) Solar Plant at Solapur unit

Commenced 2 Lac MTPA Coke Oven Plant and 20 MW Power Plant project at Koppal unit

End use profile



47%

25%

11%

9%

3%

2%

2%

1%

Pig Iron

AUTOMOBILE

PUMPS

GENERAL ENGG

STEEL

PIPES

DIESEL ENGINES

AGRICULTURE

TEXTILES

End use profile



63%

31%

6%

Castings

Commercial Vehicles

Tractor

Diesel Engine

Competitive edge



Pig

Iro

n

Quality – customised product

Commitment to Quality, Cost, Delivery and Service

Long term customer relationship

Zero customer complaints

Good Market network C

asti

ngs

Quality capacity with contemporary technology

Prototype castings – 3D printing technology

Faster new product development

Quality Castings

Delivery performance – On Time In Full

Market share – 17% for KFIL castings

Market share of KFIL for Foundry grade Pig

iron – 29%~31%

This is a proprietary document of Kirloskar Ferrous Industries Limited

10

Financials

31-May-2019


11

Financials

31-May-2019

(Rs. Lakhs)

31-Mar-19 31-Dec-18 31-Mar-18 31-Mar-19 31-Mar-18

Revenue from Operations 54,004 58,252 47,980 2,15,915 1,76,519

Other Income 391 44 314 553 516

Total income 54,395 58,296 48,294 2,16,468 1,77,035

Expenses

(a) Cost of Materials consumed 34,614 36,236 29,671 1,34,478 1,08,870

(b) Purchase of stock-in-trade - - - 1,397 5,986

(c) Changes in inventories of finished goods,

Stock-in -Trade and work-in-progress (380) 764 800 (859) 26

(d) Employee benefits expense 2,479 2,290 2,167 9,374 8,066

(e) Finance costs 436 461 303 1,647 1,097

(f) Depreciation and amortisation expense 1,429 1,401 1,268 5,420 4,953

(g) Other expenses 12,469 11,916 11,915 50,340 42,595

Total Expenses 51,047 53,068 46,124 2,01,797 1,71,593

Profit before tax 3,348 5,228 2,170 14,671 5,442

ParticularsQuarter ended Year ended


12

Financials

31-May-2019

% to Sales

31-Mar-19 31-Dec-18 31-Mar-18 31-Mar-19 31-Mar-18

Material Cost 63.4% 63.5% 63.5% 62.5% 65.1%

Power Cost 5.8% 6.0% 7.6% 6.8% 7.7%

Employee benefits expense 4.6% 3.9% 4.5% 4.3% 4.6%

Finance Cost 0.8% 0.8% 0.6% 0.8% 0.6%

Profit before tax 6.2% 9.0% 4.5% 6.8% 3.1%

Profit after tax 4.8% 5.9% 3.1% 4.5% 2.2%

EBITDA 9.7% 12.2% 7.8% 10.1% 6.5%

Quarter ended Year endedParticulars


13

Financials

31-May-2019

0

500

1000

1500

2000

2500

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Company 1,365 1,114 1,277 1,765 2,159

Pig Iron 844 626 665 916 1,176

Castings 474 461 583 721 923

Others 47 27 28 128 60

Rs.

Cro

re

Sales


14

Financials

31-May-2019

0

20

40

60

80

100

120

140

160

180

200

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

EBITDA 152 153 178 115 217

% to sales 11.1% 13.7% 13.9% 6.5% 10.1%

Rs.

Cro

re

EBITDA

0

20

40

60

80

100

120

140

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

PBT 72 85 121 54 147

% to sales 5.3% 7.7% 9.5% 3.1% 6.8%

Rs.

Cro

re

PBT


15

Financials

31-May-2019

Includes current maturities of Term Loan shown under the head Other Current Liabilities

0

200

400

600

800

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Capital Employed 538 571 664 677 796

Rs

Cro

re

Capital Employed

0

50

100

150

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Total 133 108 111 72 127

Term Loans 60 10 - - 53

Working Capital Loans 72 98 111 72 74

Rs.

Cro

re

Borrowings


16

Financials

31-May-2019

0

5

10

15

20

25

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

ROCE % 18.9 19.0 19.8 9.7 20.5

%

ROCE %

0

5

10

15

20

25

30

35

40

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Dividend % 25 25 35 25 40

%

DIVIDEND %

FY 2018-19 – 20% Interim Dividend and 20% Final Dividend subject to approval in AGM


17

Top 20 Investors and their holdings (As on 31-Mar-2019)

31-May-2019

Mar-19 Dec-18 Mar-18

1 PROMOTER AND PROMOTER GROUP 59.42 59.56 59.56

2 HDFC SMALL CAP FUND 3.78 3.15 -

3 DSP BLACKROCK SMALL CAP FUND 2.55 2.56 2.56

4 ARUN NAHAR 1.97 1.98 1.93

5 PRINCIPAL TRUSTEE COMPANY PVT LTD-PRINCIPAL BALANCED FUND 1.43 1.31 0.84

6 INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY MINISTRY OF CORPORATE AFFAIRS 1.08 1.08 0.96

7 IDFC STERLING EQUITY FUND 1.02 1.02 0.95

8 JAGDISH AMRITLAL SHAH 0.93 0.93 0.93

9 IDFC TAX ADVANTAGE (ELSS) FUND 0.85 0.81 0.73

10 PRINCIPAL MULTI CAP GROWTH FUND 0.80 0.74 -

11 SBI MAGNUM COMMA FUND 0.69 0.69 -

12 ANJU AJAY SARAF 0.55 0.55 0.55

13 SHAUNAK JAGDISH SHAH 0.42 0.42 0.42

14 BEAUTIFUL DIAMONDS LTD 0.36 0.36 0.36

15 ZAFAR AHMADULLAH 0.31 0.31 0.31

16 DIANA DHUN RATNAGAR 0.30 0.30 0.30

17 PRINCIPAL TRUSTEE CO. PVT LTD -PRINCIPAL LARGE CAP FUND 0.26 0.25 0.22

18 AJAY GOVINDAS SARAF 0.20 0.20 0.20

19 RAVINDRANATH VENKATESH GUMASTE 0.19 - -

20 NINU S KHANNA 0.17 0.17 -

% Sr.No. Name of Shareholders


18

Update on

Major Projects

31-May-2019


19

Capex outlay

31-May-2019

Proposed capex outlay for major projects from the FY 2019-20 to FY 2021-22 is

estimated at around Rs.500 Crores towards backward integration for the Pig Iron &

Casting, machining shop for value addition and balancing equipments in foundry to

achieve capacity utilisation.


20

Railway Siding

31-May-2019

Objective :

Estimated timeline : Rolling completed. Station code and commercialization by Q2- FY 2019.

To enable bulk movement of goods and to achieve logistic cost benefits

0.2 MTPA Coke oven with 20 MW Power Plant


21 31-May-2019

Estimated timeline for completion : Q4 of FY 2019- 20

Actual Site Photos

1.Coke Oven:

• To Reduce dependency on imported coke by installing coke oven plant

• Presently coke is sourced through

• a) Import & domestic coke Procurement

• b) conversion of coal to coke from merchant cokeries

2. Power Plant

• a) To achieve self-sufficiency on power from installation of power plant

• b) To achieve power cost reduction.

Objective :

Mini Blast Furnace-2 Up gradation and

Bell less top for MBFs’


22 31-May-2019

Representative image

Estimated timeline for completion : Q3 of FY2020-21

Objective :

Production capacity enhancement from 3,91,400 TPA to 4,25,000 TPA

Reduction in coal/coke consumption

Achieve better productivity

Increased life of refractory lining

Representative image

Solar Power Plant at Solapur - 10 MW


23 31-May-2019

Objective :

Commissioned in September 2018

Captive power consumption of around 50% of total Solapur Unit power requirement

Power cost reduction

Machine shop at KFIL


24 31-May-2019

Objective :

To offer machined castings to customers and to achieve higher realisation and value addition

Estimated time line for completion

Phase 1 : Q2 – FY 2018-19

Phase 2 : Q1 – FY 2019-20



Line-II Capacity enhancement - Furnace Up gradation

Objective :

Increase in liquid metal production from

340MT to 430MT/ Day- Phase 1

430MT to 520MT/ Day –Phase 2

( considering Liquid metal support of 140 MT / day from MBF & Cupola ).

Estimated time line for completion

Phase 1 : Q1 – FY 2019-20

Phase 2 : Q3 – FY 2019-20



Line-II Capacity enhancement - Core Shop Extension

Objective :

Line II CORE SHOP EXTENSION WITH WATER JACKET CORE ROBOTIC CELL .

Increase in production of Line II from 4000MT to 6000MT per Month

Estimated timeline for completion : Q3 – FY 2019-20


27 31-May-2019

“Outstanding Contribution in NPD” from VECV, 2018

`Best Delivery Performance” Award from TAFE -2018

“Best Business Partner” award from M&M Ltd – Tractor Division, 2018

`Our State, Our Organization” Award in category of large

industry, 2018

MSES “B” Level certification award from M&M Ltd, 2018

Awards - FY2018-19

National Energy conservation award from Director General - Bureau of Energy Efficiency -

New Delhi

Disclaimer

Statements in this presentation, particularly those which relate to management’s

views and analysis, describing the Company’s objectives, projections, estimates

and expectations may constitute “forward looking statements” within the meaning

of applicable laws and regulations. Actual results might differ materially from

those either expressed or implied.



31-May-2019 29 This is a proprietary document of Kirloskar

Ferrous Industries Limited

Thank you

kirloskar ferrous industries limited - kfil · our products water-jacketed blocks non...

Documents