Kirloskar Ferrous Industries Limited€¦ · KFIL Projects So far Progress and Plan 18-Feb-2020 This is a proprietary document of Kirloskar Ferrous Industries Limited 5 2008 – 09

Kirloskar Ferrous Industries

Limited

Q3 FY20 Investor Meet Presentation

February 18, 2020

Kirloskar Ferrous Industries Limited

18-Feb-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



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

and Machined components.

VISION

Pig Iron

•To be a lowest cost producer

•Expand in to value added products

•To achieve 425,000 MT of liquid metal by 2020

Casting

•Exceed customer expectation in new product development

•Exceed customer expected level of quality

•On time in full delivery performance

•To achieve 150000 MT casting sales by 2021 and 200,000 MT sales by 2025

• Expand in to new segments of vehicle components.

To be a preferred Employer & responsible neighbor.

MISSION: To become a Billion Dollar company by 2030

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 In progress Cost Reduction

PCI & MBF-II Upgradation 100 Cr In progress 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.1401 Crores achieved in Nine months

(i.e. From Apr-19 to Dec-19)

EBITDA of Rs.142 Crores (10.1% of Sales) achieved for Nine months

(i.e. From Apr-19 to Dec-19)

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

Commissioning the 2 Lac MTPA Coke Oven Plant and 20 MW Power Plant project at Koppal unit. Currently is in advance stage of erection

Executive Summary -

Pig Iron



MBF – I upgraded to 300 Cubic meters in FY 2016-17

MBF – I Bell less top to be commissioned in FY 2021-22

MBF – II Upgradation with Bell less top to be commissioned in FY 2021-22

Pulverized Coal Injection for both MBF-I & II in FY 2021-22

Koppal Plant close to self sufficient on Power with commissioning of Waste Heat Recovery Power Plant along with Coke Oven

Executive Summary -

Castings



Upgraded all the 4 Furnaces at Koppal unit to have efficient melting and power benefit

Started sand reclamation and achieved 1500 MT per month of sand at both locations to recycle the core sand

KFIL enters Large Castings business and started producing 525 KG casting. First casting was poured on January-2020

Started reaping the benefits of Green Power installed at Solapur plant

DV10 CC

Executive Summary -

Castings



6

8

8

9

8

8

4

4

4

5

7

9

3

3

3

3

3

3

1

1

1

2

2

2

14

16

16

19

20

22

0 5 10 15 20 25

0 5 10 15 20 25

FY15

FY16

FY17

FY18

FY19

FY20

Number of Customer Base increased from 14 in FY 2015 to 22 in FY 2020

Auto UV & CV Tractor Diesel Engine Construction Equiment

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



37%

21%

19%

14%

5%

3%

1%

Pig Iron

AUTOMOBILE GENERAL ENGG

PUMPS STEEL

TEXTILES PIPES

MACHINE TOOLS

End use profile



47%

39%

10%

4%

Castings

Commercial Vehicles

Tractor

Diesel Engine

Others

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 – 20% 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 - 40%

- 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

16

Financials

18-Feb-2020


17

Financials

18-Feb-2020

(Rs. Lakhs)

Year ended

31-Dec-19 30-Sep-19 31-Dec-18 31-Dec-19 31-Dec-18 31-Mar-19

Revenue from Operations 45,525 46,424 58,252 1,40,148 1,61,911 2,15,915

Other Income 46 53 44 137 162 553

Total income 45,571 46,477 58,296 1,40,285 1,62,073 2,16,468

Expenses

(a) Cost of Materials consumed 27,186 28,962 36,236 88,010 99,864 1,34,478

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

(c) Changes in inventories of finished goods,

Stock-in -Trade and work-in-progress

627 1,604 764 1,329 (479) (859)

(d) Employee benefits expense 2,281 2,545 2,290 7,207 6,895 9,374

(e) Finance costs 407 505 461 1,402 1,211 1,647

(f) Depreciation and amortisation expense 1,477 1,400 1,401 4,283 3,991 5,420

(g) Other expenses 10,157 9,037 11,916 29,565 37,871 50,340

Total Expenses 42,135 44,053 53,068 1,31,796 1,50,750 2,01,797

Profit before tax 3,436 2,424 5,228 8,489 11,323 14,671

ParticularsQuarter ended Period ended


18

Financials

18-Feb-2020

(% to Sales)

Year ended

31-Dec-19 30-Sep-19 31-Dec-18 31-Dec-19 31-Dec-18 31-Mar-19

Material Cost 61.1 65.8 63.5 63.7 62.2 62.5

Power Cost 5.9 5.6 6.0 5.7 7.1 6.8

Employee benefits expense 5.0 5.5 3.9 5.1 4.3 4.3

Finance Cost 0.9 1.1 0.8 1.0 0.7 0.8

Profit before tax 7.5 5.2 9.0 6.1 7.0 6.8

Profit after tax 5.1 2.8 5.9 3.9 4.4 4.5

EBITDA 11.7 9.3 12.2 10.1 10.2 10.1

Quarter ended Period endedParticulars


19

Financials

18-Feb-2020

2001-02

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

Sales 227 251 376 497 483 525 726 699 807 1092 1090 1198 1232 1365 1114 1277 1765 2159

0

500

1000

1500

2000

In R

s. C

r.

Total Sales

“KFIL has grown from Rs.227 Cr to Rs.2159 Cr business in last 18 years”

FY02 to FY19 CAGR 14.18%


20

Financials

18-Feb-2020


2001-02

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

EBITDA 24 33 63 42 59 87 93 55 102 103 95 111 115 152 153 178 115 217

% to Sales 10.7% 13.1% 16.9% 8.5% 12.2% 16.7% 12.8% 7.9% 12.7% 9.4% 8.7% 9.2% 9.3% 11.1% 13.7% 13.9% 6.5% 10.1%

0

50

100

150

200

250

In R

s. C

rore

s


21

Financials

18-Feb-2020


2001-02

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

PBT -14 3 27 21 40 67 66 20 70 72 56 62 58 72 85 121 54 147

% to Sales -6.0% 1.4% 7.2% 4.2% 8.2% 12.7% 9.1% 2.9% 8.7% 6.6% 5.1% 5.2% 4.7% 5.3% 7.7% 9.5% 3.1% 6.8%

-40

-20

0

20

40

60

80

100

120

140

160

In R

s. C

rore

s


22

Financials

18-Feb-2020

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 %

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


23

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

18-Feb-2020

31-Dec-19 30-Sep-19 31-Dec-18

1 Promoters and Promoters Group 59.38 59.41 59.56

2 HDFC Small Cap Fund 5.81 4.63 3.15

3 DSP Blackrock Micro Cap Fund 3.24 2.55 2.56

4 Arun Nahar 1.97 1.97 1.98

5 IDFC Tax Advantage (Elss) Fund 1.36 1.35 0.93

6 IDFC Sterling Value Fund 1.11 1.11 -

7 Investor Education & Protection Fund 1.20 1.08 1.08

8 Jagdish Amritlal Shah 0.93 0.93 1.02

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 0.31 0.31

14 Diana Dhun Ratnagar 0.30 0.30 0.30

15 Principal Small Cap Fund 0.23 0.23 -

16 Ajay Gvondas Saraf 0.20 0.20 0.20

17 Ravindranath Venkatesh Gumaste 0.19 0.19 -

18 Ninu S Khanna 0.17 - 0.17

19 Vikram Advisory Services Pvt Ltd 0.16 - -

20 Sundaram Mutual Fund 0.16 - -

78.76 76.30 73.28

Sl Name of Shareholder%

Total


24

Update on

Major Projects

18-Feb-2020


25

Capex outlay

18-Feb-2020

Proposed capex outlay for major projects from the FY 2020-21 to FY 2021-22 is

estimated at around Rs.600 Crores towards backward integration for the Pig Iron &

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

achieve capacity utilisation.

0.2 MTPA Coke oven with 20 MW Power Plant


26 18-Feb-2020

Estimated timeline for completion : 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 Import & domestic coke Procurement

2. Power Plant

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

• To achieve power cost reduction.

Objective :

Mini Blast Furnace-2 Up gradation and

Bell less top for MBFs’


27 18-Feb-2020

Representative image

Estimated 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

Estimated timeline for completion : FY 2021-22


29 18-Feb-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)”


30 18-Feb-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

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.



18-Feb-2020 32 This is a proprietary document of Kirloskar

Ferrous Industries Limited

Thank you

Kirloskar Ferrous Industries Limited€¦ · KFIL Projects So far Progress and Plan 18-Feb-2020 This is a proprietary document of Kirloskar Ferrous Industries Limited 5 2008 – 09

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