This document summarizes information about Nelcast, an Indian manufacturer of ductile iron and grey iron castings. It discusses Nelcast's background, facilities, clients, finances, business strategy, and technology capabilities. Some key points include: - Nelcast was established in 1982 and owns two manufacturing plants in Tamil Nadu and Andhra Pradesh. - It caters to clients in commercial vehicle, tractor, off-highway, and railway industries. - The foundry industry in India has over 4,500 foundries and is expected to grow due to increasing automobile production and government infrastructure projects. - Nelcast's net sales increased from Rs. 515 crores in FY 2013-14 to Rs

1. PROJECT BY:
IMON B (ROLL NO. 05)
&
SMIT ANAM (ROLL NO. 03)
Moulding Perfection in every cast.

2. ABOUT THE COMPANY:
 Established in 1982, Nelcast engages in manufacturing and sales of Ductile Iron and Grey
Iron castings.
 Largest producer of Ductile iron castings in India.
 Caters to clients in Commercial Vehicle, Tractor, Off-highway and Railway industries.
 Owns two (2) manufacturing plants at Ponneri, TN and Gudur, AP.
 Awarded the best vendor award by TAFE limited and outstanding supplier by Eicher
Motors Limited.

4. Indian Foundry and Iron Forging
Industry
 India currently has over 4,500 foundries in the small, medium and large scale
sectors.
 Highly capital and labor intensive industry.
 Major Players: Bharat Forge, Nelcast, Electrosteel Castings Ltd, Hinduja
Foundries Ltd.
 Automobile sector, accounts for 57% of all castings, is expected to grow at
7.42% in the coming years.

5. KEY GROWTH FACTORS OF FOUNDRY
INDUSTRIES:
 Increasing production of light vehicles worldwide is acting as a key growth
driver for the global foundry market.
 The market is set to expand predominantly owing to:
 growing automobile production
 growth in end-user segments & MSME sector
 availability of low cost labour & improved technology and production facility
upgradation.
 Expansion of infrastructure and demand for machinery by the Indian
Government.

6. THREATS TO FOUNDRY INDUSTRY
 Medium capacity utilization
 High input costs of the foundry industry.
 The major demand (57%) is through Automobile industry consisting of HCV,
LCV, tractors, and two wheelers.

7. GUDUR PLANT
PONNERI PLANT
CHENNAI PORT
COMPANY’S MANUFACTURING FACILITIIES:

10. BUSINESS STRATEGY AND FUTURE ROADMAP:
Increase business from existing clients and getting new clients
Diversifying to new geographies
Expanding product range
Capacity Expansion
Increase share in value added machine components

11. Strengths:
 Workforce
 Highly skilled and experienced workforce.
 Technology:
 Continuously upgrades its existing machinery and processes
 Development Lead Time
 Average development time is 8 Weeks, lower than Industry average
of 12 Weeks.
 Logistics
 Well connected to Chennai Port and airports.

12. TECHNOLOGY CAPABILITIES:

13. CLIENT BASE:

14. KEY FINANCIALS:
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
Net Sales (in Rs. Crores) 515.16 544.89 624.61 637.64 760.07
0
100
200
300
400
500
600
700
800
InRs.Crores
Net Sales (in Rs. Crores)

15. KEY FINANCIALS:
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
EBITDA Margins (%) 9.69 8.55 10.97 11.2 10.24
0
2
4
6
8
10
12
EBITDA Margins (%)

16. KEY FINANCIALS:
47.35
43.91
47.2
30
32
34
36
38
40
42
44
46
48
50
FY 2015-16 FY 2016-17 FY 2017-18
Raw Material Cost as Percentage of Sales
Raw Material Cost as Percentage of Sales

17. KEY FINANCIALS:
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
Earnings Per Share (Rs.) 2.59 2.52 3.66 3.91 4.34
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Earnings Per Share (Rs.)

18. KEY FINANCIALS:
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
Interest Payment (in Rs. Crores) 1.85 4.68 6.96 6.15 2.92
0
1
2
3
4
5
6
7
8
Interest Payment (in Rs. Crores)

19. KEY FINANCIALS:
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
Interest Coverage Ratio 6.5 4.05 5.87 6.46 11.15
0
2
4
6
8
10
12
Times
Interest Coverage Ratio

20. Mar-15 Mar-16 Mar-17 Mar-18
Cash Flow From Operations 25.97 45.19 28.03 33.25
Cash Flow From Investing -19.44 -27.95 -10 -43.36
Cash Flow From Financing -6.69 -16.48 -16.8 17.65
-50
-40
-30
-20
-10
0
10
20
30
40
50
InRs.Crores Annual Cash Flow (in Rs. Crores)

22. PRICE COMPARISON WITH BHARAT FORGE

23. ShareHolding as on June 2018
Promoters Public DII
Promoter Group Shareholding
P. Deepak P. Divya P. Deepak HUF
SHAREHOLDING PATTERN

24. NELCAST DIVIDEND HISTORY
EX-DIVIDEND DATE AMOUNT PER
SHARE (IN RS.)
August 6, 2018 1
July 27, 2017 .9
July 28, 2016 .4
March 22, 2016 .4
July 30,, 2015 .7
July 30, 2014 .7
July 18, 2013 .5
July 19, 2012 .8
October 24, 2011 1
July 28, 2011 3
January 25, 2011 12
July 15, 2010 1.5
July 16, 2009 1

25. RECENT ANNOUNCEMENTS:
 The Board of Directors of Nelcast approved setting up a new state of the art
Greenfield Manufacturing Plant in Andhra Pradesh.
 Expected to commence commercial production by September 2018.
 Capacity of the plant: 54000 Tonnes per annum.
 Proposed dividend of 1 Rs. Per Share as on 6th August, 2018.

26. THANK YOU