kirloskar ferrous industries limited · kirloskar ferrous industries limited 12-jun-2020 this is a...

Kirloskar Ferrous Industries

Limited

Q4 FY20 Investor Meet Presentation

June 12, 2020

Kirloskar Ferrous Industries Limited

12-Jun-2020 This is a proprietary document of Kirloskar

Ferrous Industries Limited 2

Leadership Team Vision and Mission Business Progress and Plan 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 SBU Foundry Solapur

M.G. Nagaraj SBU Pig Iron Plant

C. Ramesh SBU Foundry Koppal

Vision and Mission



MISSION: To become a Billion Dollar company by 2030

Pig Iron

•To be a lowest cost producer

•Expand in to value added products

•To achieve 5,00,000 MT of liquid metal by 2022

Casting

•Exceed customer expectation in Product development, Quality & Delivery

•Expand into new segments of casting and value addition by machining.

•To achieve 1,60,000 MT casting sales by 2025 and 200,000 MT sales by

2030

•Expand into new products beyond iron castings.

To be a preferred Employer & responsible neighbor.

VISION To be a partner of choice with our valued customers for Pig iron, Castings and Machined

components.

VALUES

Customer Centricity

Integrity

Fairness & Partnership

Development

Mutual Trust & Team

Work

Agility with Discipline

KFIL Projects So far Progress and Plan



2008 – 09 HPML at Solapur Rs.170 Cr

2011-12 Sinter Plant Rs.94 Cr

2013-14 Line 2 at Koppal Rs.220 Cr

2016-17 Up-gradation of MBF 1 Rs.36 Cr

2013 & 19 Machine Shop 59 Cr

2018-19 3D Printing 9 Cr

2018-19 Solar Power Plant 44 Cr

2019-20 Railway Siding 17 Cr

Coke Oven with Power Plant Rs.373 Cr

PCI & MBF Upgradation Rs.100 Cr

New Machine Shop Solar power plant

3D Printing Facility Coke Oven Plant

Projects Investme

nt

Status Motive

2 New Foundries 390 Cr Completed Growth

2 New Machine Shops 59 Cr Completed Growth

Sinter Plant 94 Cr Completed Growth & Cost

reduction

MBF-I Upgrdation 36 Cr Completed Growth

Solar Power Plant 44 Cr Completed Cost Reduction

3 D Printing 9 Cr Completed Growth

Railway siding 17 Cr Completed Cost Reduction

Coke Oven with Power Plant 373 Cr Completed Cost Reduction

PCI & MBF-II Upgradation 100 Cr Planned Cost Reduction

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

Facility of producing Prototype castings with 3D printing technology available at Koppal Plant

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



KFIL achieved 496th position in “Fortune 500 India”

Sales of Rs.1850 Crores achieved in FY 2019-20

EBITDA of Rs.231 Crores (12.5% of Sales) achieved in FY 2019-20

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

Commissioned Railway siding project and started movement of Pig Iron and Slag through rakes

Commissioned the 2 Lac MTPA Coke Oven Plant on 31-March-2020 and 20 MW Power Plant project on 11-June-2020 at Koppal unit.

Started reaping the benefits of Green Power installed at Solapur Plant

Executive Summary -

Prototype Castings



Inhouse Proto Machining capability established and

Proto type Orders – Average 5 Projects per month

First SG iron Proto casting produced within 11 days

Established 3D printing facility at Koppal plant for manufacturing of Proto type castings

End use profile



30%

26%

19%

17%

3%

3%

2%

Pig Iron

GENERAL ENGG AUTO

PUMPS STEEL

TEXTIILE PIPES

MACHINE TOOL

End use profile



40%

20%

13%

12%

11%4%

Castings

Tractor Deemed Export CV

Domestic CV Auto (PV & UV)

Engines Off-Highway

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

Cas

tin

gs

Quality capacity with contemporary technology

Prototype castings – 3D printing technology

Faster new product development

Quality Castings

Delivery performance – On Time In Full

- Market share – 22% for KFIL castings

- Rating of AC Nielsen – Customer Satisfaction Survey

report for Casting business shows Eq Index of 88

- Market share of KFIL for Foundry grade Pig iron - 42%

- Rating of AC Nielsen – Customer Satisfaction Survey

report for Pig Iron business shows Eq Index of 85

This is a proprietary document of Kirloskar Ferrous Industries Limited

13

Financials

12-Jun-2020


14

Financials

12-Jun-2020

(Rs. Lakhs)

31-Mar-20 31-Dec-19 31-Mar-19 31-Mar-20 31-Mar-19

Revenue from Operations 44,818 45,525 54,004 1,84,966 2,15,915

Other Income 1,427 46 391 1,564 553

Total income 46,245 45,571 54,395 1,86,530 2,16,468

Expenses

(a) Cost of Materials consumed 25,130 27,186 34,614 1,13,140 1,34,478

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

(c) Changes in inventories of finished goods,

Stock-in -Trade and work-in-progress

(1,162) 627 (380) 167 (859)

(d) Employee benefits expense 2,433 2,281 2,479 9,640 9,374

(e) Finance costs 324 407 436 1,726 1,647

(f) Depreciation and amortisation expense 1,468 1,477 1,429 5,751 5,420

(g) Other expenses 10,923 10,157 12,469 40,488 50,340

Total Expenses 39,116 42,135 51,047 1,70,912 2,01,797

Profit before tax 7,129 3,436 3,348 15,618 14,671

ParticularsQuarter ended Year ended


15

Financials

12-Jun-2020

(% to Sales)

31-Mar-20 31-Dec-19 31-Mar-19 31-Mar-20 31-Mar-19

Material Cost 53.5 61.1 63.4 61.3 62.5

Power Cost 6.5 5.9 5.8 5.9 6.8

Employee benefits expense 5.4 5.0 4.6 5.2 4.3

Finance Cost 0.7 0.9 0.8 0.9 0.8

Profit before tax 15.9 7.5 6.2 8.4 6.8

Profit after tax 12.8 5.1 4.8 6.1 4.5

EBITDA 19.9 11.7 9.7 12.5 10.1

Quarter ended Year endedParticulars

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Sales 251 376 497 483 525 726 699 807 1092 1090 1198 1232 1365 1114 1277 1765 2159 1850

0

500

1000

1500

2000

In R

s. C

r.

Total Sales


16

Financials

12-Jun-2020

“KFIL has grown from Rs.251 Cr to Rs.1850 Cr business in last 18 years”

FY02 to FY19 CAGR 13.14%

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

EBITDA 33 63 42 59 87 93 55 102 103 95 111 115 152 153 178 115 217 231

0

50

100

150

200

250

In R

s. C

rore

s

EBITDA


17

Financials

12-Jun-2020


2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

PBT 3 27 21 40 67 66 20 70 72 56 62 58 72 85 121 54 147 156

0

20

40

60

80

100

120

140

160

180

In R

s. C

rore

s

PBT


18

Financials

12-Jun-2020



19

Financials

12-Jun-2020

0

200

400

600

800

FY 14-

15

FY 15-

16

FY 16-

17

FY 17-

18

FY 18-

19

FY 19-

20

Capital Employed 538 571 664 677 796 997

Rs

Cro

re

Capital Employed

0

5

10

15

20

25

30

35

40

FY 14-

15

FY 15-

16

FY 16-

17

FY 17-

18

FY 18-

19

FY 19-

20

Dividend % 25 25 35 25 40 40

%

DIVIDEND %


20

Top 20 Investors and their holdings (As on 31-Mar-2020)

12-Jun-2020

Mar-20 Dec-19 Mar-19

1 PROMOTER AND PROMOTER GROUP 59.34 59.38 59.41

2 HDFC SMALL CAP FUND 6.25 5.81 3.78

3 DSP BLACKROCK SMALL CAP FUND 3.24 3.24 2.55

4 ARUN NAHAR 1.97 1.97 1.97

5 Idfc Tax Advantage (Elss) Fund 1.45 1.36 0.84

6 INVESTOR EDUCATION AND PROTECTION

FUND AUTHORITY MINISTRY OF CORPORATE

AFFAIRS 1.20 1.20 1.08

7 IDFC STERLING VALUE FUND 1.16 1.11 1.02

8 JAGDISH AMRITLAL SHAH 0.93 0.93 0.93

9 SBI MAGNUM COMMA FUND 0.69 0.69 0.69

10 ANJU AJAY SARAF 0.55 0.55 0.55

11 SHAUNAK JAGDISH SHAH 0.42 0.42 0.42

12 BEAUTIFUL DIAMONDS LTD 0.36 0.36 0.36

13 ZAFAR AHMADULLAH 0.30 0.30 0.30

14 DIANA DHUN RATNAGAR 0.30 0.30 0.30

15 PRINCIPAL TRUSTEE SMALL CAP FUND 0.29 0.29 -

16 AJAY GOVINDAS SARAF 0.20 0.20 0.20

17 RAVINDRANATH VENKATESH GUMASTE 0.28 0.28 0.19

18 NINU S KHANNA - 0.17 0.17

19 SUNDARAM MUTUAL FUND A/C SUNDARAM

SELECT MICRO CAP SERIES - XVI 0.16 0.16 -

20 Vikram Advisory Services Private Ltd 0.18 0.16 0.52

21 Prescient Securities Private Ltd 0.16 0.16 0.16

22 Malti A Hinduja 0.15 0.15 -

TOTAL 79.59 79.22 75.47

Sr.No. Name of Shareholders%


21

Update on

Major Projects

12-Jun-2020


22

Capex outlay

12-Jun-2020

Proposed capex outlay for major projects from the FY 2020-21 to FY 2022-23 is estimated

at around Rs.700 Crores towards backward integration for the Pig Iron & Casting,

machining shop for value addition and balancing equipments in foundry to achieve capacity

utilisation.

The estimated Capex mentioned above will depend on the growth in business and economy

0.2 MTPA Coke oven with 20 MW Power Plant


23 12-Jun-2020

1.Coke Oven:

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

• Presently coke is sourced through Import & domestic coke Procurement

2. Power Plant

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

• To achieve power cost reduction.

Objective :

• Commissioned on 31.03.2020

• Commissioned on 11.06.2020

Mini Blast Furnace-2 Up gradation and

Bell less top for MBFs’


24 12-Jun-2020

Representative image

Projected timeline for completion : FY2021-22

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

MBF-I



Pulverized Coal Injection

Objective :

Reduction in Coke Consumption

Projected timeline for completion : FY 2021-22


26 12-Jun-2020

Awards - FY2019-20

“SUPERIOR PERFORMANCE FY-2019” Award from Mahindra

Award from VECV in New Product Development

category for faster development

“National Energy Conservation award” from

Ministry of Power, Government of India

Awarded as “Fastest growing Steel Company (Small)” by “Construction World (A Largest circulated Construction Business Magazine)”


27 12-Jun-2020

Awards - FY2019-20

KFIL awarded as “Top Organizations with Innovative HR Practices” by “Asia Pacific HRM Congress”

“Unnatha Suraksha Puraskara” from National Safety

Council, Bangalore

“Platinum award” from CII- EXIM Bank Award for

Business Excellence


28 12-Jun-2020

Awards - FY2019-20

“K R SANTHANAM MEMORIAL AWARD- For Foundryman of the Year” from IIF

Green Foundry of the Year Award” from IIF

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.



12-Jun-2020 30 This is a proprietary document of Kirloskar

Ferrous Industries Limited

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kirloskar ferrous industries limited · kirloskar ferrous industries limited 12-jun-2020 this is a...

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