Steel Strips & Wheels Ltd — Investor Presentation 2024

Jan 17, 2024

STEEL STRIPS WHEELS LTD.

GIN : L271 07P81 985PLG0061 59

Head Office : 150/T516949 Certified SCO 49-50, Sector 26, Madhya Marg, Chandigarh 160 019 (lNDlA)

Tel : +91 172-2793112, 2790979, 2792385 Fax ; +91 172-2794834 | 2790887 Website : www.sswlindia.com

Date: t7.0t.2O24

BSE Limited Department of CorPorate Services, Phiroze JeejeebhoY Towers, Dalal Street, Mumbai - 400 ⁰⁰¹ BSE Code: 5L3262

The National Stock Exchange of India Limited Exchange Plaza, Plot No. C/7, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 ⁰⁵¹ NSE Code: SSWL

subject: Analysts/Institutional Investors Meet - SEBI (Listing obligations and Disclosure Requirements) Regulations, 2015: Intimation

Dear Sir,

pursuant to the provisions of Regulation 30(6) of SEBI (Listing obligation and Disclosure Requirements) Regulations, 2015, we wish lo inform you that the Company's Analysts/ Investors conference call on "Q3 FY24 Earnings Conference Call to discuss results & future outlook of business" has been fixed. The schedule of the said conference call is as follows:

S. No.	Details required	Particulars
1	Details pertaining to the meet/call	SvIfb Limited on Monday, 22nd
		Januarv, 2A24 at 4:00 P.m.
z	Venue	Virtual
J	Mode of attendinq	Conference Call
4	Details pertaininq to registrations
5	D iscl a i mers/note to com p lete/ease reg istratio n/ attendinq the call
6	Detai.ls regarding specific platform	As per details enclosed
	reouirements,if anY
7	inclusions/exclusions of audience/pa rticipants,
	if anv

Note: Changes to the schedule may happen due tO exigencies on part of analysts/investors or the Company.

Further, we are also enclosing herewith the details of the conference call alongwith the presentation to be made to the Analayst/Investors for ready reference and same shall be accessible on the website of the Company i'e' www.sswlindia.com'

Kindly take the same on your records for reference' Thanking you Yours faithfully, For Steel Strips Wheels Limited

Shaman Jindal

rc Company Secretary Jindal)

Digitally signed by Shaman Jindal Date: 2024.01.17 17:32:29 +05'30'

www.smifs.com

Mr. Dheeraj Garg Mr. Mohan Joshi Mr. Naveen Sorot Mr. Pranav Jain	Managing Director Executive Director CFO DGM Finance
Conference Dial-In Numbers
Universal Dial-In Numbers: International Toll Free Numbers:	+91 022 6280 1474 / +91 022 7115 886 Hong Kong : 800964448 Singapore : 8001012045 : 08081011573 UK. USA : 18667462133

STEEL STRIPS WHEELS LIMITED Delivering Value; Seeking Excellence

Investor Presentation

January 2024

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Steel Strips Wheels Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Company Overview

SSWL is a leader in designing & manufacturing Automotive wheels – both Steel & Alloy Wheels category

SSWL aspires to be the Preferred Global Brand of Wheel Solution provider committed to excellence

Logged Highest ever Turnover in FY23 of INR 4,041 Cr with ~176 Lakh wheels units Sold

Strategic Partnerships

TATA Steel Limited, India

6.9% Stake in Steel Strips Wheels Limited

• Tata Steel Limited (through its then wholly-owned subsidiary Company namely Kalimati Investment Company Ltd, which has now merged with Tata Steel Ltd) had entered into a Strategic Alliance Agreement in January 2008 with SSWL
• Through this relationship, Tata Steel supports us with more flexibility in areas such as supply chain management, enjoying priorities and stronger support for new grade developments, etc

Nippon Steel & Sumitomo Metal Corporation, Japan

5.4% Stake in Steel Strips Wheels Limited

• Sumitomo Metal Industries Limited, merged with Nippon Steel Corp and now known as Nippon Steel & Sumitomo Metal Corporation (NSSMC), has entered into a Strategic Alliance Agreement in December 2010
• This relationship helps in bringing international expertise in steel quality and newer technology exploration
• Sumitomo Group, which has 400 years of manufacturing history, founded Sumitomo Metals in 1897 and it is one of the world's leading steelmakers

Incl. Exports

Steel Wheels – Rs. 2,375 crores (~72%) (9M FY24 Revenues)

Product Capacities & Utilization

Map not to scale. All data, information and maps are provide d "as is" without warranty or any represe ntat io n of accuracy, tim eline ss or completen es s.

The Brand Names and Logos mentione d are the property of their respectiv e owners and are used here for identif icat ion purposes o nly.

D o m e s t i c M a r k e t S h a r e
42
%

Passenger Vehicle

MHCV

Key Customers	Key Platforms	Share of Business
Maruti Suzuki	Ciaz, Baleno, Scross, Brezza, Celerio	40%
Hyundai	Venue, Xcent, Grandi10, Verna	40%
Mahindra	KUV, TUV, XUV	64%
Honda	Elevate, Amaze, City	95%
MG Motors	Hector	100%
Kia	Seltos, Carnival, Sonet	35%

Key Customers	Key Platforms	Share of Business
Ashok Leyland	Ecomet, Ross, Viking, Cheetah	68%
TATA Motors	Ultra LPK1512,LPK1518,2518,3718,3118,4218	64%

42 %	70 %
Tractor	OTR

Key Customers	Key Platforms	Share of Business
Mahindra	Jivo, Arjun, Yuvraj, Dhruv	55%
Sonalika	D1745, D16TRX, RX47	45%
Eicher	551, 548, 485	40%
JCB	3DX, 4DX, Export Model	60%
New Holland	5500, 7500	40%

S t e e l W h e e l S a l e s Va l u e

Key Customers	Key Platforms	Share of Business
Piaggio	Ape City, Ape Cargo	54%
HMSI	Activa, Dio, Activa125, Grazia, Aviator	35%
Suzuki Scooters	Access 125	45%
Scooter India	Vikram	100%

Map not to scale. All data, information and maps are provide d "as is" without warranty or any represe ntat io n of accuracy, tim eline ss or completen es s.

Growth Drivers

Sales Mix Shift Shift of Sales Mix towards High Margin Accretive Segments – Alloy Wheel & Exports

Operations Optimization Development of Robotic Automated Operation process for Operating Cost Rationalization

Foray into EV Segment Exploring various avenues to foray into EV Segment

Industry Growth

Steel Wheel Market to grow at 8% p.a. whereas Alloy Wheel Market to grow at 12% p.a. over next 5 years

Improving Returns

Strengthening Balance Sheet thereby Improving Return on Capital Employed & Return on Equity

Shift of Sales Mix to High Margin Alloy Wheels Segment

The Brand Names and Logos mentione d are the property of their respectiv e owners and are used here for identif icat ion purposes o nly.

Shift of Sales Mix to High Margin Exports Segment

9M F Y24 Ex p o rts Vo l ume an d Revenue surpasses fu l l ye ar F Y23 Vo l umes an d Revenue

Strengthening Balance Sheet

In c reasing Cas h Ac c ruals to u ti l ize i n re p ayment o f Lo n g -term D e bt, h e n ce i mp roving Retu rns o n Cap i tal Em ployed an d Retu rns o n Eq u ity

Co n s istent D i vi dend p ai d by th e Co mp any

Q3 & 9M FY24 Financials

Financial Performance Snapshot

65% 73%

Q3FY23 Q3FY24

69% 72%

9MFY23 9MFY24

31% 28%

35% 27%

20

Consolidated Profit & Loss

Particulars (Rs. in Crs)	Q3 FY24	Q3 FY23	Y-o-Y	9M FY24	9M FY23	Y-o-Y
Revenue from Operations	1,110.3	938.4	18.3%	3,288.4	3,035.6	8.3%
Cost of Materials Consumed	741.5	658.4		2,178.0	2,074.3
Changes in Inventory	-25.5	-68.3		-39.9	-69.4
Gross Profit	394.3	348.4	13.2%	1150.4	1030.7	11.6%
Gross Profit Margin	35.5%	37.1%		35.0%	34.0%
Employee Cost	89.9	73.9		267.7	205.2
Other Expenses	187.7	166.6		528.5	491.2
EBITDA	116.7	107.9	8.2%	354.1	334.3	5.9%
EBITDA Margin	10.5%	11.5%		10.8%	11.0%
Depreciation	22.5	20.2		67.4	60.5
Other Income	1.7	2.0		8.9	5.7
EBIT	95.9	89.7	6.9%	295.5	279.6	5.7%
EBIT Margin	8.6%	9.6%		9.0%	9.2%
Finance Cost	25.1	22.0		74.7	60.9
Share of (Profit) / Loss from Associates	-0.1	0.0		-0.4	0.0
Profit before Tax	70.7	67.7	4.4%	220.5	218.7	0.8%
Profit before Tax Margin	6.4%	7.2%		6.7%	7.2%
Tax	11.3	23.9		61.3	72.2
Profit After Tax	59.4	43.8	35.7%	159.1	146.5	8.6%
Profit After Tax Margin	5.4%	4.7%		4.8%	4.8%
EPS (In Rs.)	3.79	2.80		10.16	9.37

Historical Financials

Performance Ratios

Increased from 13% in FY19 to 17% in H1 FY24

Return on Equity (RoE) Return on Capital Employed (RoCE) Fixed Asset Turnover Ratio

Improved from 1.5 in FY19 to 3.3 in H1 FY24

Debt / EBITDA Debt / Equity Current Ratio

Improved from 3.29 in FY19 to 1.63 in H1 FY24

Improved from 1.27 in FY19 to 0.68 in H1 FY24

Improved from 0.93 in FY19 to 1.01 in H1 FY24

24

Historical Profit and Loss

Profit and Loss (Rs in Crs)	FY23	FY22	FY21	FY20	FY19
Revenue from Operations	4,040.5	3,560.0	1,749.4	1,563.3	2,041.2
Cost of Materials Consumed	2,688.3	2,221.6	1,082.4	973.3	1,353.7
Changes in Inventory	-24.7	-34.5	16.7	-7.1	-49.8
Gross Profit	1,376.9	1,372.8	650.3	597.1	737.3
Gross Profit Margin	34.1%	38.6%	37.2%	38.2%	36.1%
Employee Cost	283.7	218.7	152.9	156.1	188.3
Other Expenses	650.4	701.4	293.6	269.7	303.2
EBITDA	442.8	452.8	203.8	171.2	245.9
EBITDA Margin	11.0%	12.7%	11.6%	11.0%	12.0%
Depreciation	80.4	76.9	72.3	71.9	61.9
Other Income	12.4	13.0	16.3	22.1	17.5
EBIT	374.8	388.9	147.8	121.4	201.4
EBIT Margin	9.3%	10.9%	8.5%	7.8%	9.9%
Finance Cost	83.5	85.4	83.9	88.7	92.5
Profit before Tax	291.2	303.5	63.8	32.7	108.9
Profit before Tax Margin	7.2%	8.5%	3.6%	2.1%	5.3%
Tax	97.3	97.8	14.6	11.4	25.4
Prior Period Adjustment	0.1	0.3	0.0	-2.2	1.1
Profit After Tax	193.8	205.5	49.3	23.4	82.4
Profit After Tax Margin	4.8%	5.8%	2.8%	1.5%	4.0%
EPS	12.39	13.16	3.16	1.50	5.29

Assets (Rs. in Crs)	FY23	FY22	FY21	FY20	FY19	Equity & Liabilities (Rs. in Crs)	FY23	FY22	FY21	FY20	FY19
Non - Current Assets		1,603.1 1,497.0 1,425.9 1,412.8			1,400.7	Total Equity	1,134.7	951.8	749.3	698.0	659.9
Property Plant & Equipments		1,347.3 1,358.3 1,257.4 1,304.7			1,327.5	Share Capital	15.7	15.6	15.6	15.6	15.6
						Other Equity	1,119.1	936.2	733.7	682.4	644.3
CWIP	163.4	96.9	109.3	85.5	52.8	Share application money pending allotment	0.0	0.0	0.0	0.0	21.8
Intangible assets	1.3	1.3	1.8	1.8	1.7	Non-Current Liabilities	431.4	548.4	635.1	690.8	659.4
Financial Assets	36.8	30.3	20.7	19.5	17.4	Financial Liabilities
Other Non - Current Assets	54.4	10.1	36.7	1.3	1.4	(i) Borrowings	161.1	279.3	379.8	441.8	458.1
Current Assets		1,178.3 1,204.6	950.8	766.3	752.7	(ii) Other Financial Liabilities	68.3	75.1	80.1	81.8	62.3
Inventories	734.0	647.0	496.5	329.3	338.1	Provisions	30.5	23.5	11.5	13.7	13.3
Financial Assets						Deferred Tax Liabilities ( Net)	171.6	170.6	163.7	153.5	125.7
(i) Trade receivables	348.8	392.3	257.1	209.8	194.0	Current Liabilities	1,215.2 1,201.3		992.3	790.4	812.3
						Financial Liabilities
(ii) Cash and cash equivalents	18.3	23.2	27.9	31.6	36.2	(i) Borrowings	477.2	498.6	557.5	456.6	392.9
(iii) Bank Balance & Other than above	25.7	34.7	25.3	60.2	84.8	(ii) Trade Payables	694.8	659.1	412.2	213.6	257.3
(iv) Loans	4.8	4.1	2.8	3.0	2.8	(iii) Other Financial Liabilities	0.0	0.0	0.0	102.7	136.6
(v) Other Financial Assets	0.0	0.0	0.5	1.5	1.8	Current tax liabilities (net)	0.0	1.8	0.0	0.0	1.4
Current Tax Assets (Net)	3.9	0.0	2.3	2.5	0.0	Provisions	5.1	4.6	6.6	2.7	2.3
Other Current Assets	42.9	103.2	138.4	128.4	95.0	Other current liabilities	38.1	37.2	16.0	14.8	21.8
Total Assets		2,781.4 2,701.6 2,376.7 2,179.1			2,153.4	Total Equity & Liabilities	2,781.4 2,701.6		2,376.7	2,179.1	2,153.4

Cash Flow - Snapshot

Particulars (Rs. in Crs)	FY23	FY22	FY21	FY20	FY19
Net Profit Before Tax	288.6	300.9	63.9	32.3	108.7
Adjustments for: Non -Cash Items / Other Investment or Financial Items	154.8	150.9	144.5	152.3	148.1
Operating profit before working capital changes	443.4	451.8	208.4	184.7	256.8
Changes in working capital	-47.7	0.5	-24.7	-71.5	-46.5
Cash generated from Operations	395.7	452.3	183.7	113.1	210.3
Direct taxes paid (net of refund)	47.6	46.2	14.6	9.3	26.5
Net Cash from Operating Activities	348.1	406.1	169.1	103.9	183.8
Net Cash from Investing Activities	-127.9	-153.5	-37.1	-69.3	-80.5
Net Cash from Financing Activities	-234.1	-247.9	-170.6	-63.9	-112.9
Net Increase/(Decrease) in Cash and Cash equivalents	-13.9	4.7	-38.5	-29.3	-9.6
Add: Cash & Cash equivalents at the beginning of the period	57.9	53.2	91.7	121.0	130.6
Cash & Cash equivalents at the end of the period	43.9	57.9	53.2	91.7	121.0

Consolidated Balance Sheet

Assets (Rs. in Crs)	Sep-23	Mar-23
Non - Current Assets	1,749.8	1,603.1
Property Plant & Equipments	1,301.6	1,347.3
CWIP	353.3	163.4
Intangible assets	1.3	1.3
Financial Assets	38.4	36.8
Other Non - Current Assets	55.3	54.4
Current Assets	1,249.5	1,178.3
Inventories	705.8	734.0
Financial Assets
(i) Trade receivables	464.9	348.8
(ii) Cash and cash equivalents	10.7	18.3
(iii) Bank Balance & Other than above	26.0	25.7
(iv) Loans	6.3	4.8
(v) Other Financial Assets	0.0	0.0
Current Tax Assets (Net)	0.0	3.9
Other Current Assets	35.8	42.9
Total Assets	2,999.3	2,781.4

Equity & Liabilities (Rs. in Crs)	Sep-23	Mar-23
Total Equity	1,223.1	1,134.7
Share Capital	15.7	15.7
Other Equity	1,207.4	1,119.1
Share application money pending allotment	0.0	0.0
Non-Current Liabilities	533.8	431.4
Financial Liabilities
(i) Borrowings	282.5	161.1
(ii) Other Financial Liabilities	50.5	68.3
Provisions	31.7	30.5
Deferred Tax Liabilities ( Net)	169.2	171.6
Current Liabilities	1,242.5	1,215.2
Financial Liabilities
(i) Borrowings	553.9	477.2
(ii) Trade Payables	644.6	694.8
(iii) Other Financial Liabilities	0.0	0.0
Current tax liabilities (net)	5.6	0.0
Provisions	6.2	5.1
Other current liabilities	32.2	38.1
Total Equity & Liabilities	2,999.3	2,781.4

CSR & Awards

CSR

Promotion of Education by strengthening government schools & helping poor students by providing Financial Assistance & providing access to education to Orphan Children who lost their parents due to Covid-19

Providing help to the Mentally Challenged Children in getting special life skills education to make them selfdependable and able to manage the real-life situations at home, in the community and at workplace

Initiated projects worth 8MW in Solar and wind power energy to convert from fossil fuel energy. We expect all of them to be on stream in FY 2022-23 to move towards the ESG goal

Strengthening Community Health Centre at Lalru, Punjab by providing essential medical machineries, equipment's and other items to deal with Covid-19 & other health problems

Ensuring environment sustainability through developing & maintaining green park & cleaning activities. Construction, Renovation & Beautification of government schools

Giving Back to Society is Our Core Value

Awards

Best Quality Performance - JCB

Best Localization Award for the Year 2022 - Hyundai Motor India Limited

THANK YOU

Company: Steel Strips Wheels Limited CIN: L2710PB1985PLC006159

Mr. Naveen Sorot (CFO)/ Mr. Mohan Joshi (ED)

info@sswlindia.com

Tel: +91-172 2790979

Investor Relations: Strategic Growth Advisors (SGA) CIN: U74140MH2010PTC204285

Mr. Harsh Shah / Mr. Deven Dhruva

harsh.shah@sgapl.net / deven.dhruva@sgapl.net

Tel: +91 97689 74808 / +91 98333 73300