Greenlam Industries Ltd · NSE:GREENLAM
Greenlam Industries — Q1 FY24 Earnings Presentation
26 slides from Greenlam Industries's earnings presentation, Jul 27, 2023
Slide 1: Filing cover letter to stock exchanges
Greenlam/2023-24 July 27, 2023 The Manager The Manager BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Fax No. 022-2272-3121/1278/1557/3354 Fax
Slide 2: Results Presentation Q1 FY24
Bettering Culture of Execution Excellence Results Presentation Q1 FY24 27th, July 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Greenlam Industries 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
Slide 4: Our Journey
Our Journey Set up first laminate unit at Setting up of overseas ▪ Acquisition of Greenlam Decolan SA Setting up of subsidiary in UK Behror, and started commercial subsidiaries in Singapore and US ▪ Incorporation of Greenlam South Limited (GSL) production and exports of Laminates 1992-93 2002 2005-0
Slide 5: Next Orbit
Next Orbit Acquisition of HGIL (Dec-21) Acquired 74.91% equity share capital of HG Industries Limited (formerly Himalaya Granites Limited) (‘HGIL’) and consequently HGIL has become a subsidiary of the Company Capex Announcement (Dec-21) Greenfield expansion of Plywood at Tindivanam, Tamilnadu under
Slide 6: Next Orbit – Larger, Stronger and more Profitable
Next Orbit – Larger, Stronger and more Profitable Capacity Creation Strong Balance Sheet Leadership Position One stop solution Capacity creation ahead of the Growing the business through strong Leadership across existing From standalone surfacing products demand curve balance sheet and cash flows bu
Slide 7: Product Portfolio
Product Portfolio Laminate & Allied Products Veneer & Allied Products Plywood & Allied Products Commodity to Decorative Natural Veneer Plywood Laminates Mikasa Ply Premium products Veneer Teak Veneer Blockboard Engineered Veneer Compact Standard Compact Panels Engineered Wood Floor & Mikasa Floor Pa
Slide 8: Our Brands
Our Brands 7 www.greenlamindustries.com
Slide 9: Manufacturing Capabilities
Manufacturing Capabilities Products UOM Capacity Location Current Capacities Behror, Raj High Pressure Laminate Mn Sheets 21.02 Nalagarh, HP Prantij, GJ Decorative Veneer Mn SQM 4.2 Behror, Raj Engineered Wood Floor Mn SQM 1.0 Behror, Raj Engineered Doors Units 120,000 Behror, Raj Plywood* Mn SQM 18
Slide 10: Financial Performance for last 5 years
Financial Performance for last 5 years +12% 2,026.0 +10% 232.9 +14% 128.0 1,703.4 187.0 178.3 173.3 90.6 1,280.7 1,320.6 158.5 86.7 1,199.6 77.1 73.7 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Revenue (Rs. Crs) *EBITDA (Rs. Crs) PAT (Rs. Crs) 0.60 17.2 18.2 18.0 17.3
Slide 11: Domestic Footprints
Domestic Footprints Nalagarh, Himachal Pradesh DOMESTIC 4 State of the art Manufacturing Facilities Behror, Rajasthan Prantij, 9 Company owned large Regional Distribution Centers Gujarat 23,000+ Distributors, Dealers & Retailers Manufacturing Facilities Over 5,500 Employee base Corporate Office Naid
Slide 12: International Footprints
International Footprints INTERNATIONAL Present in 100+ Countries 4 Company Operated Distribution Centers 15 International Offices 8 Overseas Subsidiaries 130+ Overseas Employees The Maps provided are for pictorial representation only Maps not to scale. All data, information, and maps are provided "a
Slide 13: Business Update
Business Update www.greenlamindustries.com
Slide 14: Business Update – Plywood
Business Update – Plywood ➢ The Company has commissioned India’s largest plywood plant at a single location in Tindivanam, w.e.f. 9th June 2023 ➢ The said manufacturing facility having installed capacity of 18.9 million square meter per annum which has a potential to generate Revenue of Rs. 400 Cror
Slide 15: Key Highlights for Q1FY24
Key Highlights for Q1FY24 ➢ In the current quarter we revamped our flagship catalogue and launched Greenlam Laminates New Collection 2023-25. This collection has 78 new SKUs in several colours, designs and patterns which makes the collection more exemplary in 1.0 mm laminate category ➢ During the qu
Slide 16: Key Highlights for Q1FY24
Key Highlights for Q1FY24 ➢ In the current quarter working capital cycle is higher by 6 days to 72 days as compared to 66 days in Q4FY23 mainly on account of higher inventory stuck at port and lower revenues and inventory being built up for plywood and Naidupeta laminate unit ➢ Net debt as on June 3
Slide 17: Consolidated Financial Performance
Consolidated Financial Performance Profit and Loss Statement INR Crores Q1 FY24 Q1 FY23 YoY% Q4 FY23 QoQ% FY23 Revenue 515.2 470.6 9.5% 533.8 -3.5% 2,026.0 Raw Material 245.9 258.7 273.2 1,079.3 Gross Profit 269.3 211.9 27.1% 260.6 3.4% 946.7 Gross Margin % 52.3% 45.0% 730 bps 48.8% 350 bps 46.7% Em
Slide 18: Consolidated Financial Performance – Laminates & Allied Segment
Consolidated Financial Performance Laminates & Allied Segment INR Crores Q1 FY24 Q1 FY23 YoY% Q4 FY23 QoQ% FY23 Net Revenue from Operations 472.0 430.2 9.7% 491.6 -4.0% 1,852.3 Gross Profit 250.3 196.7 27.2% 241.8 3.5% 876.3 Gross Margin % 53.0% 45.7% 730 bps 49.2% 380 bps 47.3% EBIDTA 69.9 53.4 31.
Slide 19: Consolidated Financial Performance – Laminates & Allied Segment
Consolidated Financial Performance Laminates & Allied Segment Particulars Q1 FY24 Q1 FY23 YoY% Q4 FY23 QoQ% FY23 Annual Installed Capacity (Mn Sheets) 21.02 15.62 19.02 19.02 Production (Mn Sheets) 4.68 4.29 9.1% 4.55 2.8% 17.40 Sales (Mn Sheets) 4.17 3.94 5.8% 4.67 -10.7% 17.04 Capacity Utilization
Slide 20: Consolidated Financial Performance – Veneers & Allied Segment
Consolidated Financial Performance Veneers & Allied Segment INR Crores Q1 FY24 Q1 FY23 YoY% Q4 FY23 QoQ% FY23 Net Revenue from Operations 42.5 40.4 5.3% 42.2 0.8% 173.6 Gross Profit 18.3 15.1 20.9% 18.8 -2.9% 70.4 Gross Margin % 43.0% 37.5% 550 bps 44.6% (160) bps 40.5% EBIDTA (1.6) (2.5) (1.6) (8.7
Slide 21: Consolidated Financial Performance – Decorative Veneers
Consolidated Financial Performance Decorative Veneers Particulars Q1 FY24 Q1 FY23 YoY% Q4 FY23 QoQ% FY23 Annual Installed Capacity (Mn Sqmt) 4.20 4.20 4.20 4.20 Production (Mn Sqmt) 0.26 0.27 -5.0% 0.30 -16.3% 1.24 Sales (Mn Sqmt) 0.27 0.30 -8.1% 0.32 -13.4% 1.21 Capacity Utilization (Annualized) 25
Slide 22: Consolidated Financial Performance – Plywood & Allied Segment
Consolidated Financial Performance Plywood & Allied Segment INR Crores Q1 FY24 Net Revenue from Operations 0.8 Gross Profit 0.2 Gross Margin % 30.1% EBIDTA (4.0) EBIDTA Margin % - Capital Employed 153 21 www.greenlamindustries.com
Slide 23: Operating Parameters - Net Working Capital
Consolidated Financial Performance Operating Parameters - Net Working Capital Particulars Q1 FY24 Q1 FY23 Q4 FY23 FY23 INR Crores Days INR Crores Days INR Crores Days INR Crores Days Inventory *540.0 96 523.1 101 513.5 88 513.5 93 Debtors 143.2 25 134.0 26 144.3 25 144.3 26 Creditors 278.0 49 258.4
Slide 24: Debt Position
Consolidated Financial Performance Debt Position INR Crores Q1FY24 Q1FY23 FY23 Net Debt-Equity Ratio 0.52 Long Term Debt (Including current portion) 149.6 176.7 156.9 0.32 0.32 Long Term Debt (Project) 422.3 - 226.7 Short Term Debt 173.1 140.7 186.2 Total Debt 745.0 317.3 569.9 Q1FY24 Q1FY23 FY23 Ca
Slide 25: Return Ratios – ROCE & ROE
Consolidated Financial Performance Return Ratios – ROCE & ROE INR Crores Q1FY24 Q1FY23 Q4FY23 FY23 ROCE (Ex- Projects) EBIT 51.0 38.0 61.6 187.6 20.0% 17.3% 18.2% PAT 32.2 24.6 46.1 128.0 Capital Employed 1,759.2 1,015.1 1,554.4 1,554.4 *Q1FY24 *Q1FY23 FY23 Capital Employed (Ex- Projects) 1,019.4 87
Slide 26: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Greenlam Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L21016DL2013PLC386045 CIN: U74140MH2010PTC204285 Mr. Ashok Sharma - CFO Mr. Shogun Jain/ Ms. Manasi Bodas Email: ashok.sharma@greenlam.com Shogun.jain@sg