BMW Industry Limited (BMWIL) is a prominent steel processing company in India.
Incorporated in 1981, it operates multiple manufacturing units in the steel sector.
Engaged in the manufacturing and processing of various steel products, including HRPO Coils, CR Coils, GP Coils, GC Sheets, MS and GI pipes, and TMT rebars.
Operates one of the largest independent cold rolling and galvanizing facilities in India.
Focuses on value addition of semi-finished goods to maintain stable margins.
Strategic manufacturing locations near steel hubs reduce manufacturing turnaround time and transportation costs.
Trusted partner of leading steel players, including Tata Steel Limited and a joint venture with Steel Authority of India Limited (SAIL).
Key milestones include commissioning various steel production facilities and expanding services to customers.
BMWIL is well-positioned in the steel processing value chain, ensuring stability.
Maintains stable margins despite volatile steel prices.
Strong revenue growth with a CAGR of 18.9% over the last
three years.
Gross profit increased with a CAGR of 19.7%.
Gross profit margin remained healthy at around 60.6%.
Operating EBITDA showed steady growth, with a CAGR of 16.5%.
Operating EBITDA margin was around 23.1%.
Positive PAT margin at 9.5% in FY23.
The company turned profitable in FY22 and continued this
positive trend in FY23.
CRM Complex contributed significantly to revenue, showing a
2-year CAGR of 13.65%.
Rolling Mill segment demonstrated impressive growth with a
2-year CAGR of 55.08%.
A relatively smaller portion of revenue came from Pipes
& Tubes.
The Logistics and Miscellaneous segments also played a role
in revenue growth.
Net worth steadily increased over the years, reaching Rs.
60,373 lacs in FY23.
Gross debt reduced from Rs. 27,892 lacs to Rs. 23,759 lacs
between FY21 and FY23.
Net debt also decreased significantly, reaching Rs. 22,998
lacs in FY23.
Capital employed increased over time, reaching Rs. 88,464
lacs in FY23.
Net fixed assets remained stable.
Net current assets increased, reflecting a healthier working
capital situation.
Total assets showed consistent growth.
Current ratio improved from 1.30 in FY21 to 1.72 in FY23.
Fixed asset turnover ratio increased from 0.76 to 1.19,
indicating more efficient asset utilization.
Sales/Capital Employed ratio grew from 0.43 to 0.65,
indicating better capital utilization.
The cash conversion cycle decreased, showing more efficient
cash management.
Net debt/equity reduced from 0.54 in FY21 to 0.38 in FY23,
indicating a stronger financial position.
Net debt/operating EBITDA improved from 2.92 to 1.77.
Interest coverage ratio increased significantly from 1.80 to
4.14.
ROCE improved from 5.8% in FY21 to 11.5% in FY23, reflecting
increased operational efficiency.
ROE turned positive, reaching 9.4% in FY23.
Capacity expansion plans in the CRM Complex, Rolling Mill,
and Pipes & Tubes segments.
Focus on proximity to customers and efficient distribution
networks.
Entry barriers in terms of geographical advantage,
relationships, and cost-effective production.
Asset-light model and an efficient outsourcing strategy.
Brand building and penetration into underserviced geographies.
BMWIL has a proven track record of efficient operations and a focus on safety measures.
Strategic location advantages for raw material access and cost-effective product transportation.
India's steel industry is experiencing significant growth, driven by sectors like construction, automotive, and capital goods.
Government policies, such as FDI in the steel sector, have attracted foreign investment.
The National Steel Policy aims to increase per capita steel consumption in India.
BMWIL generates strong and consistent operating cash flows.
The company has a stable net debt to equity and net debt to operating EBITDA ratio.
It has adopted a dividend payout policy.
BMWIL plans to expand its Pipes & Tubes capacity and TMT rebar production.
The company follows an asset-light model, efficiently outsourcing manufacturing and building a distribution network.
BMWIL aims to establish brand value in the steel industry.