kirloskar ferrous industries limited...machine shop at kfil this is a proprietary document of...
TRANSCRIPT
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
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 3
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
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 4
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
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 5
Foundry Grade
S. G. Grade
Basic Grade
PIG IRON
CASTINGS
Executive Summary
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 6
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
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 7
47%
25%
11%
9%
3%
2%
2%
1%
Pig Iron
AUTOMOBILE
PUMPS
GENERAL ENGG
STEEL
PIPES
DIESEL ENGINES
AGRICULTURE
TEXTILES
End use profile
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 8
63%
31%
6%
Castings
Commercial Vehicles
Tractor
Diesel Engine
Competitive edge
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 9
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
18
Update on
Major Projects
31-May-2019
This is a proprietary document of Kirloskar Ferrous Industries Limited
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.
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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’
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 25
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
31-May-2019 This is a proprietary document of Kirloskar
Ferrous Industries Limited 26
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
This is a proprietary document of Kirloskar Ferrous Industries Limited
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 This is a proprietary document of Kirloskar
Ferrous Industries Limited 28
31-May-2019 29 This is a proprietary document of Kirloskar
Ferrous Industries Limited
Thank you