Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q4 FY23 Earnings Presentation
43 slides from Prince Pipes And Fittings's earnings presentation, May 25, 2023
Slide 1: Cover letter to stock exchanges
""PRINCE® --=--- PIP ING SYSTEMS PPFL/SE/2023-2024/ O l _s May 25, 2023 To, BSE Limited National Stock Exchange of India Limited 25th Floor, P.J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai-400001 Bandra (E), Mumbai -400051 Scrip Code: 542907 Scrip Code: PRINCEPIPE Dear Sir/Mad
Slide 2: Investor Presentation Q4 & FY23
Prince Pipes and Fittings Limited INVESTOR PRESENTATION Q4 & FY23
Slide 3: Disclaimer
DISCLAIMER This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
Slide 4: Table of Contents
TABLE OF CONTENTS PERFORMANCE HIGHLIGHTS 04 BUSINESS HIGHLIGHTS 06 FINANCIAL PERFORMANCE 10 INDUSTRY OVERVIEW 14 COMPANY OVERVIEW 16 THE ROAD AHEAD… 26 PRODUCT BASKET 27 SEEKING GROWTH…THE ESG WAY 32 AWARDS AND ACHIEVEMENTS 33 BOARD OF DIRECTORS 38 CORPORATE INFORMATION AND SHAREHOLDING 39 ANNUAL FI
Slide 5: Performance Highlights – Q4 FY23
PERFORMANCE HIGHLIGHTS – Q4 FY23 o Q4 FY23 revenues at ₹ 764 crore as compared to ₹ 901 crore in Q4 FY22 o Volumes in Q4 FY23 at 44,317MT as compared to 45,287 MT in Q4 FY22 o EBITDA for Q4 FY23 improved by 6% YoY at ₹ 148 crore versus ₹ 140 crore in Q4 FY22 ➢ Margins enhanced significantly by 380 b
Slide 6: Performance Highlights – FY23
PERFORMANCE HIGHLIGHTS – FY23 o Revenues in FY23 grew by 2% YoY to ₹ 2,711 crore from ₹ 2,657 crore in FY22 o Volumes improved by 13% YoY in FY23 to 157,717 MT compared to 139,034 MT in FY22 o EBITDA at ₹ 250 crore in FY23 vs. ₹ 415 crore in FY22 o PAT in FY23 at ₹ 121 crore as compared to ₹ 249 cro
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS o Performance for FY23 was adversely impacted by sharp decline in PVC prices leading to destocking and inventory losses severely impacting performance in H1 FY23. ➢ After a steep correction of ~ Rs. 66 per kg from April till November 2022, PVC prices recovered by ~ Rs. 11 per kg
Slide 8: Business Highlights
BUSINESS HIGHLIGHTS o Bathware division launch planned towards end of Q1 FY24 - Focus on bringing innovative and elegant products backed by robust service infrastructure. ➢ Vendors and designs have been finalized. ➢ Core team including key state heads have been appointed. o Company migrating to a gl
Slide 9: Business Highlights
BUSINESS HIGHLIGHTS o Launched WireFIT, range of Electrical Conduit Pipes & Fittings o WireFIT is the latest addition to the wide range of piping solutions within the Prince brand and brings an assurance of quality, reliability and durability o It offers great chemical resistance, good impact streng
Slide 10: Business Highlights – Awards, Recognitions & Green Initiative
BUSINESS HIGHLIGHTS Awards, Recognitions & Green Initiative o Chennai plant achieved IGBC Gold Rated Green Factory Building certification by the Indian Green Building Council (IGBC). o Earlier Jaipur plant had achieved Platinum rated Green Building certification by IGBC. o Won the Best Channel Loyal
Slide 11: Financial Performance for Q4 FY23
FINANCIAL PERFORMANCE FOR Q4 FY23 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 45,287 44,317 901 148 94 140 88 764 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 10 INVESTOR PRESENTATION | May 2023
Slide 12: Financial Performance for FY23
FINANCIAL PERFORMANCE FOR FY23 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 415 2,711 1,57,717 2,657 249 1,39,034 250 121 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 11 INVESTOR PRESENTATION | May 2023
Slide 13: Profit & Loss Statement as on 31st March 2023
PROFIT & LOSS STATEMENT AS ON 31ST MARCH 2023 ₹ in Crore Particulars Q4 FY23 Q3 FY23 Q4FY22 Y-o-Y (%) FY23 FY22 Y-o-Y (%) Total Sales 764 706 901 (15) 2,711 2,657 2 Raw Material Consumed 512 548 655 (22) 2,092 1,892 11 Employee benefit expenses 31 31 35 (11) 116 116 - Other Expenses 73 58 71 (3) 253
Slide 14: Working Capital Cycle
WORKING CAPITAL CYCLE 68 58 57 55 36 36* 66 67 78 59 47 70 40 77 59 62 40 66 60 85 77 56 57 56 FY18 FY19 FY20 FY21 FY22 FY23 Debtor Days Inventory Days Creditor Days Working Capital Days * Reclassified to 15 days based on regrouping of financials for FY 21 13 INVESTOR PRESENTATION | May 2023
Slide 15: Industry Overview
INDUSTRY OVERVIEW India's Low per capita pipe Consumption vs World Avg. (in Kg) Domestic Plastic Pipes & Fittings Market Size (₹. in Bn) 12-14% CAGR 110 550 10-12% CAGR 65 World Avg. 30 ~300 270 250 45 225 205 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL
Slide 16: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Jal Jeevan Mission 75% of 600 million budgeted allocation households do increased by 27% to Rs. Significant increase in Indians face allocations for capex not have high to extreme 69,684 crore drinking water By 2030, 40% of spending by 33% to Rs.10 population will stress over
Slide 17: Company Overview
COMPANY OVERVIEW Vision Mission Prince Pipes and Fittings Limited is To be an acknowledged leader in Indian plastic Our mission is to bring a revolution in plastic an Indian manufacturer of polymer piping industry by exceeding customers piping industry through innovative solutions expectations and m
Slide 18: Prince at a Glance
PRINCE AT A GLANCE 1987 7 9 7,200+ Incorporation No. of Facilities Warehouses SKUs ~1,500+ CRISIL A+ Long Term 1,752 Channel Partners Outlook: STABLE Debt Free Employees 5,998 Cr 121 Cr ~3,15,000 MTPA Prince and Market Cap PAT Total installed Trubore (For March 31st 2023) (For FY 2023) Capacity Prod
Slide 19: Our Strategy to Success
OUR STRATEGY TO SUCCESS We generate organic growth by focusing on innovation, market proximity, digitalization and our industrial potential. Organic growth 1 2 Promoting clean energy at Manufacturing units Operational Excellence 3 We achieve cost reductions by continuously We cater to new product se
Slide 20: Our Journey
OUR JOURNEY 2000 New plant set up 2018 1987 at Dadra Appointed Akshay Kumar 2020 (Western India) Incorporated as a as Brand Ambassador and for pipe Got listed on BSE & NSE private limited company rolled out campaigns manufacturing with an IPO of ₹ 5bn across platforms 2012 Acquisition of plants in T
Slide 21: Our Manufacturing Capabilities
OUR MANUFACTURING CAPABILITIES Athal 1995 Dadra 2000 Haridwar 2008 Chennai 2012 Product Product Product Product Installed 11,110 Installed 60,286 Installed 89,163 Installed 50,825 Capacity MTPA FITTINGS Capacity MTPA PIPES Capacity MTPA PIPES & Capacity PIPES MTPA FITTINGS Kolhapur 2012 Jaipur 2019
Slide 22: Always Staying Ahead of the Curve
ALWAYS STAYING AHEAD OF THE CURVE 2008 2012 2014 2020 2021 First company to Acquired Chennai & Early movers in Tie up with Lubrizol Commissioning of venture into North Kolhapur plant Eastern India with a to form CPVC Telangana plant, marking India and set up a through inorganic unique asset light co
Slide 23: Strategic Distribution - Expanding Footprints
STRATEGIC DISTRIBUTION - EXPANDING FOOTPRINTS NORTH EAST JAMMKASHMIR First mover in 2008 with Next frontier of growth Haridwar plant HIMACHAL PRADESH Asset light model To scale brand equity in North PUNJAB UTTARAKHAND through outsourcing HARYANA HARIDWAR GHAZIABAD DELHI g CORPORATE OFFICE SILIGURI J
Slide 24: Investment Rationale
INVESTMENT RATIONALE A management Strategic A nationwide Portfolio of Long-term team of experienced placement of robust 7200+ SKUs, partnerships to and skillful manufacturing distribution one of the ensure smooth professionals with plants running network largest amongst and cohesive proven leadershi
Slide 25: Market Consolidation – A Boon for Prince Pipes and Fittings
MARKET CONSOLIDATION – A BOON FOR PRINCE PIPES AND FITTINGS PPFL is one of the front-runners to benefit from these events and has gained significant market share over the last seven years 4 Opportunity to grab major market share as the Nationwide manufacturing and distribution unorganised sector bec
Slide 26: Leadership and Innovation
LEADERSHIP AND INNOVATION Over 3 decades, built a deep knowledge of handling multiple polymers Leading to a transition in polymer profile Largest range of SKU’s across multi polymers Early Adopters Market Leaders Innovative Trendsetters Sustained market share in PP-R In DWC Underground Drainage In A
Slide 27: The Road Ahead…Why Prince FlowGuard Plus?
THE ROAD AHEAD…WHY PRINCE FLOWGUARD PLUS ? 1st Choice World's most World-Class Extreme Globally for preferred range Product now Temperature Potable Water of CPVC Pipes & comes with 30 Resistance for The Inventors World’s Applications Fittings with 50 Years of Trust use upto 93°C India's Leading Pipe
Slide 28: Product Basket
PRODUCT BASKET Plumbing Solutions PPR Plumbing & Low Noise SWR CPVC Plumbing Industrial Underground Drainage Roofwater CPVC Industrial Plumbing Systems Piping Systems UPVC Industrial Piping Systems Underground Double UPVC Plumbing Wall Corrugated Pipes Sewage & Underground Drainage Portfolio Reclaim
Slide 29: Product Basket
PRODUCT BASKET Cable Protection Storage Solutions Cable Ducting Pipes Irrigation Solutions Surface Drainage System Agriculture Piping Systems Manhole & Chamber Covers Solutions Borewell FRP Manhole & Chamber Cover 28 INVESTOR PRESENTATION | May 2023
Slide 30: Technical Collaboration with Tooling Holland
TECHNICAL COLLABORATION WITH TOOLING HOLLAND INNOVATING TO THE NEXT LEVEL PRINCE PIPES TIES UP WITH TOOLING HOLLAND BV Building & offering Great impetus to superior products, aligned Prince Pipes’ to global standards and at Global leaders in Mould growth plans competitive costs Manufacturing Researc
Slide 31: Storefit – Paani Ka Bank
STOREFIT – PAANI KA BANK Launched Range of Tanks under the Brand 30 Years Leveraging experience in Plastics & Building materials offering a wide range of sizes from 500 to 5,000 ltrs Strong Pan India Presence Advantage of Multi-Locations Manufacturing & Marketing Robust Distribution Infrastructure E
Slide 32: Focus on Triple Bottom Line
FOCUS ON TRIPLE BOTTOM LINE 12,871 MT Coal Burned/Year Financial Green Energy 1 up to Q4 FY23 419 K Tree Seedlings, Grown for a Decade Triple Reduce Green-house Gas Emissions over the past years Bottom-line 2 Environmental Goals 23.35% Carbon emission reduced (MT/MT production) since FY-17 76,378 MT
Slide 33: Seeking Growth – The ESG Way
SEEKING GROWTH – THE ESG WAY… Use Clean Energy Conserve Water Environment Efficient Waste Management The challenging times during the pandemic showcased the value of Manufacture high-quality products environment, sustainability and Contribute towards Social Causes cleanliness. We, at Prince Pipes ar
Slide 34: Awards & Achievements
AWARDS & ACHIEVEMENTS Certificate of appreciation Mr. Parag Chheda - JMD Digital Transformation for active association at the was awarded the Awards 2016 – 2016 Gujarat Premier 10th Mega ‘Inspiring Business Leader Transformation with Industrial Exhibition VCCI Award’ at the Economic Cloud Networking
Slide 35: Awards & Achievements
AWARDS & ACHIEVEMENTS Prince Pipes has been Prince Pipes Jaipur plant awarded the best channel achieved IGBC Platinum rated 2022 Loyalty Program in the Green Building certification customer FEST Awards from the Indian Green Building Council (IGBC) Prince Pipes has been awarded Prince Pipes Chennai p
Slide 36: Product Branding
PRODUCT BRANDING Storefit Promotion Through Social Media World Plumbing Day Campaign Building Wrap 35 INVESTOR PRESENTATION | May 2023
Slide 37: Product Branding
PRODUCT BRANDING Cab Branding Bus Shelter Branding Hoarding Branding Bus Branding Train Branding 36 INVESTOR PRESENTATION | May 2023
Slide 38: Pan India Influencer & Channel Engagement Activities
PAN INDIA-INFLUENCER & CHANNEL ENGAGEMENT ACTIVITIES 37 INVESTOR PRESENTATION | May 2023
Slide 39: Board of Directors
BOARD OF DIRECTORS Independent & Nominee Directors Mr. Rajendra Gogri, Mr. Dilip Deshpande, Mr. Jayant S. Chheda Independent Director Independent Director Founder, Chairman and MD He has more than 45 years of experience, having served He has an extensive industry knowledge, more than four He has an
Slide 40: Corporate Information & Shareholding
CORPORATE INFORMATION & SHAREHOLDING Shareholding Pattern (as on 31st March, 2023) Stock Data Institutions Market Cap as on 24th May 2023 ₹ 6,432 Cr. 22% Stock Price as on 24th May 2023 ₹ 581.75 52 Week (High / Low) ₹ 652.80 / 513.10 Others NSE / BSE - Symbol PRINCEPIPE / 542907 Promoters 17% 61% No
Slide 41: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 2,657 2,711 5.3% 6.9% 10.7% 9.4% 4.5% 12.3% 14.0% 17.5% 15.6% 9.2% 2,072 Margin Margin 415 249 1,561 1,631 362 222 229 250 184 113 121 82 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 F
Slide 42: Outlook
OUTLOOK Expanding our distribution 00 network across target markets Introducing value added products Improving RoCE and RoE ratios to ensure cost efficiency and by monitoring volume and enhanced market share price growth Bringing a more PREMIUM touch to the PRINCE brand Achieving sustainable growth
Slide 43: Thank You
THANK YOU PRINCE PIPES AND FITTINGS LTD. CONTACT DETAILS Mr. Shyam Sharda CFO THE RUBY, 8TH FLOOR, 29, SENAPATI BAPAT MARG Mail: shy@princepipes.com (TULSI PIPE ROAD), DADAR (WEST), MUMBAI- 400028, INDIA. Fax: + 91 22 6602 2220 Mr. Anand Gupta Email: info@princepipes.com Deputy CFO Mail: aag@princep
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