Sg Mart Ltd · NSE:SGMART
Sg Mart — Investor Presentation (February 2024)
25 slides from Sg Mart's investor presentation, Feb 28, 2024
Slide 1: SG Mart Limited investor presentation cover letter
To February 28, 2024 Secretary Listing Department BSE Limited Department of Corporate Services Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 512329 Sub: Investor presentation In terms of Regulation 30 of the Listing Regulations read with Schedule III to the Listing regulation
Slide 2: A B2B marketplace for construction materials
A B2B marketplace for construction materials
Slide 3: Section 1: Industry Overview
Section 1: Industry Overview Tech enabled B2B market-place focussed on construction materials
Slide 4: Addressable market - INR 6 Trillion B2B construction material Industry
Addressable market - INR 6 Trillion B2B construction material Industry Break up of downstream steel segment - FY 24 2024 Market 2027E Market Market size Products Components in constructional steel INR 6 Trillion INR 8 Trillion (INR Bn) TMT Bars 2,900 Downstream steel INR 4.1 trillion INR 5.6 Trillio
Slide 5: Drivers for SG Mart B2B marketplace model
India is the 7th largest manufacturing hub and the 5th largest retail distribution market Drivers for SG Mart B2B globally marketplace model Sector yet to be disrupted by technology, with the penetration of B2B marketplaces at c.1% today v. China / USA, where digital adoption is as high as 20% Facto
Slide 6: Indian B2B marketplaces experiencing strong macro tailwinds
Indian B2B marketplaces experiencing strong macro tailwinds Covid disruption; Buyer embracing digital Supportive Regulatory Environment • Traditional supply chains disrupted during COVID; • Product linked Incentive (PLI) schemes worth INR 2 significant push towards digital commerce trillion across 1
Slide 7: Section 2: Company background
Section 2: Company background Tech enabled B2B market-place focussed on construction materials
Slide 8: SG Mart – Revenue Model
SG Mart – Revenue Model No of customers – 550+ No of suppliers – 75+ SKUs – 1,795 Distribution model Wholesale model Problem solved - Fragmented Demand and Fragmented Supply Problem solved – A large trading house required to support India’s growing manufacturing capacity Private label products Distr
Slide 9: SG Mart – B2B marketplace
SG Mart – B2B marketplace Steel Construction and other Building Materials Manufacturers Warehouse Dealers/ Traders/Wholesalers/ Contractors/Developers 1 2 3 4 Provides a platform to Delivering products Caters to traders, No minimum manufacturers across the country of highest quality contractors, dev
Slide 10: SG Mart solutions to challenges faced by the industry
SG Mart solutions to challenges faced by the industry Industry issues Our value proposition 1. Fragmented supplier base 1. One stop solution for all construction needs 2. Limited vertical integration between different stages of 2. Tech enabled onsite material transformation and its delivery final us
Slide 11: Product Portfolio
Product Portfolio Construction steel products Fixtures, fittings and tiles TMT Wire mesh Binding Wire HR Sheet Bath fittings Tiles Cement And many more… Light Structure - MS Checkered Sheet Welding Rod Tapping Screws Angle, Bar, channel Laminates Paint
Slide 12: TMT 550D - Industry size of INR 2.9 Trillion
TMT 550D - Industry size of INR 2.9 Trillion Premium quality MS TMT Rebars from 8-32 mm • Cost Effective • Better Weldability • Earthquake Resistant • Unbreakable Ductility • Superior Bonding Strength
Slide 13: Binding Wire - Industry size of INR 90bn
Binding Wire - Industry size of INR 90bn Premium quality MS Binding wires from 18-22 gauge (0.71 to 1.22 mm) • Consistent size • Ductile and strong • Easy to use • Reduces cost • Quicker tying • Longer lengths • Secure packaging • Bundle packing of 25 kg
Slide 14: Wiremesh – Industry size of INR 50bn
Wiremesh – Industry size of INR 50bn MS steel wire mesh in different sizes. used in construction and infrastructure, agricultural fencing, industrial use • Square woven, Square welded:4’x8’, 4’x10’, 5‘x10’ • Hardware & Industrial: • Sheet - 3’x8’, 4’x8’, 4’x10’, 4’x12’, 5’x10’, 6’x10’, 6’x12’ • Coil
Slide 15: HR Sheet – Industry size of INR 550 bn
HR Sheet – Industry size of INR 550 bn Primary Hot Rolled Sheet size from 1.8-2.5 mm
Slide 16: MS Checkered Sheet – Industry size of INR 50 bn
MS Checkered Sheet – Industry size of INR 50 bn • Steel plates with diamond shapes on the surface for slip resistance • Used for industrial flooring, factory stair boards, truck & bus body, decorative sheets as wall guard • The plates are easy to form, durable and come with an aesthetic finish Thick
Slide 17: Welding Rods – Industry size of INR 60 bn
Welding Rods – Industry size of INR 60 bn • Cellulosic type deep penetrating electrode for all positions welding. • Stable arc at lower amperage particularly in vertical & over head positions. • Weld metal is of radiographic quality, ductile and gives excellent toughness at subzero temperatures. • S
Slide 18: Tapping Screws – Industry size of INR 20 bn
Tapping Screws – Industry size of INR 20 bn Self Drilling screws are of high-quality range & are used for roofing applications Better corrosion protection
Slide 19: Light Structure – Industry size of INR 400 bn
Light Structure – Industry size of INR 400 bn • Ductile and strong • Faster erection • Reduces cost MS Angle • Quicker Joints • Secure packaging Bar MS Light structures like Angle, channel and bars are key structural members of any engineering infrastructure Channel
Slide 20: Brands partners in Tiles and Fittings
Brands partners in Tiles and Fittings
Slide 21: At a Glance – Q3 FY24
At a Glance – Q3 FY24 (Second Quarter of operation) ₹ 7.5 Bn ₹170 Mn 2.3% ₹ 172 Mn Revenue EBITDA EBITDA Margin Net Profit 2.3% ₹ 173 Mn -13 days 25% Cash profit *ROCE for FY24E Net Profit Margin Net WC days as on 31-Dec 2023 7% ₹8 Bn 550+ 75+ *ROE for FY24E Net cash as on Customers by end Vendors b
Slide 22: Growing strength to strength
Growing strength to strength Revenue (Rs Mn) EBITDA (Rs Mn) 7,483 170 5,062 112 1,509 18 Q1FY24 Q2FY24 Q3FY24 Q1FY24 Q2FY24 Q3FY24 PAT (Rs Mn) No of customers 426 172 315 90 170 13 Q1FY24 Q2FY24 Q3FY24 Q1FY24 Q2FY24 Q3FY24
Slide 23: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs Mn) Q1FY24 Q2FY24 Q3FY24 9MFY24 Net Revenue 1,509 5,062 7,483 14,054 Raw Material Costs 1,479 4,939 7,287 13,704 Employee Costs 5 9 15 29 Other expenses 7 2 10 19 EBITDA 18 112 170 301 EBITDA Margin % 1.2% 2.2% 2.3% 2.1% Other Income 0 11 96 107 Interest Cost
Slide 24: Provisional Balance Sheet & Cash flow – 31 Dec'23
Provisional Balance Sheet & Cash flow – 31 Dec’23 Balance Sheet - Assets (Rs mn) 31 Dec’23 Cashflow Statement (Rs mn) 31 Dec’23 EBITDA 301 Cash & Bank Balance 10,034 Accounts receivables -768 Receivables 768 Inventory -340 Inventories 340 Other WC changes -1,007 Other current assets 2,822 Tax -94 Fi
Slide 25: Thank You
Thank You For further information, please contact: Shivkumar Niranjanlal Bansal-Joint MD Sachin Kumar-CS SG Mart Limited Tel: +91 9205556113 Email: [email protected]