Ddev Plastiks Industries Limited · NSE:DDEVPLSTIK
Ddev Plastiks Industries — Q4 FY24 Earnings Presentation
44 slides from Ddev Plastiks Industries's earnings presentation, Jun 12, 2024
Slide 1: Regulation 30 intimation letter to BSE
Date: 14" June, 2024 To The Manager, Listing Department, BSE Limited, PJ Towers, Dalal Street, Mumbai - 400 001. Scrip Code: 543547/ ISIN: INEOHR601026 Dear Sirs Sub: Presentation as placed at Analyst / Institutional Investor meetings held on 12.06.2024 Ref: Regulation 30 of SEBI (Listing Obligation
Slide 2: Ddev Plastiks Earnings Presentation Q4FY24
w= DDEV PLASTIKS Ddev Plastiks Industries Limited Leading Manufacturer Of Compounds Earning Presentation Q4FY24 Visit Our Website www.ddevgroup.in ter
Slide 3: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Ddev Plastiks Industries Ltd.'s (“Ddev Plastiks” or the Company) future b
Slide 4: About Us
About Us 4-10
Slide 5: India's Largest Manufacturer of Polymer Compounds
Ddev Plastiks : India’s Largest Manufacturer of Polymer Compounds FY24 Financial Performance o 4 Decade of Operations – current capacity 2,37,500 MTPA (as of April, 2024). o 5 manufacturing units with state-of-the art machinery, infrastructure, equipment, Rs.2,431 cr 28% and R&D facilities. Revenue
Slide 6: Q4 and FY2024 Management Commentary
Q4 and FY2024 Management Commentary Commenting on the Performance, Narrindra Suranna, Chairman and Managing Director said: I am excited to share another exceptional fiscal of strong performance. We achieved a remarkable 52% EBITDA growth yoy expanding the margin to 12% in FY24; this has been the fir
Slide 7: Our Business Model
Our Business Model • PVC Resin • Polymer Heating Sourcing of raw materials Mixing Compounding Process Grafting in case of XLPE Pelletizing Wire and Cable Compounds, White Good Engineering Plastics, Engineering Compounds, Packaging Compounds , Footwear Compounds
Slide 8: Key USP's
Key USP’s 01 02 03 Operating in five high growth Diversified Revenue Structure; Multi-location setup minimizing categories. Leading supplier of cable transportation costs. compounds in India 04 05 06 Strong R&D Infrastructure. Customisation of products with Highly competitive globally. 200+SKU’s. 7
Slide 9: Operating in 5 High Growth Categories with 200+ SKUs
Operating in 5 High Growth Categories with 200+SKU’s Antifab/Filled Halogen Free Flame Sioplas/XLPE Engineering Plastic Compounds/Master PVC Compounds Retardant Compounds/Semicons Compounds Batches (HFFR) • Niche product with high • Global leader in XLPE and • Widely used in White • Widely used in p
Slide 10: Our Organization & Business Structure
Our Organization & Business Structure Value unlocked by the de-merger Post Demerger Organization & Business Structure Simplified Corporate Structure Kkalpana Industries (India) Ltd Maximizing Shareholders Value Demerger Ratio 1:1 Kkalpana Industries Ddev Plastiks (Listed on CSE &BSE) (Listed on BSE)
Slide 11: Largest Supplier of Cable Compounds in India
Largest Supplier of Cable Compounds in India Revenue by Geography (INR Cr) Revenue distribution by sector (%) Overseas 25% Others INR 18% 2,431 Packaging Revenue India Industry 4% Distribution 75% according Sales FY24 Auto to top three Industry sectors 2% Revenue by Product Category (INR Cr) Wires a
Slide 12: Investment Thesis
Investment Thesis 12-27
Slide 13: Renewables has emerged as the new unprecedented catalyst
Renewables has emerged as the new unprecedented catalyst Polymer compounding is a preferred material to electrical industry due to properties such as electrical insulation, corrosion inhibition, excellent heat resistance, high tensile and durability and low density. 1,20,000 CAGR 817 GW India’s powe
Slide 14: Sectoral Tailwinds to support growth
Sectoral Tailwinds to support growth Demand Global Polymer Compounding Market Growth (in USD bn) Government Polices • Urbanization • National Infrastructure • Changing consumer Pipeline behavior • Har Ghar Bijlee 115 • Increasing per capita • Capex cycle uptick income CAGR • Electrification • Premiu
Slide 15: Strategically located manufacturing capabilities
Strategically located manufacturing capabilities Installed Name of the Plant Products manufactured Capacity (MTPA) Anti fibrillation Compound 12,000 Dhulagarh – West Bengal Sioplas & Semicon 15,000 PVC Compound 6,000 PVC Compounds Cables 38,000 Dadra and Silvasa - Dadra Plant 1 2 Nagar Haveli HFFR 5
Slide 16: Strong R&D Infrastructure
Strong R&D Infrastructure Strong R&D Capabilities enabling innovation and new products launches Product Pipeline • XLPE Compound suitable for Insulation for Cables upto 132kv to be launched in the next few month. • Next focus would be going up to 220Kv. Powered by robust R&D • Experienced R&D Engine
Slide 17: Profit 6x in 5 years: Focus on High Margin Products
Profit 6x in 5 years: Focus on High Margin Products Net Revenue (INR Cr) EBITDA (Rs Cr) & EBITDA Margin % ~4500-5000 CAGR CAGR 9% 36% 282 2,504 12% 2,227 2,431 186 1,711 128 1,534 7% 5% 74 6% 82 5% FY20 FY21 FY22 FY23 FY24 FY30 FY20 FY21 FY22 FY23 FY24 EBITDA EBITDA Margin PAT (INR Cr) & PAT Margin
Slide 18: Focus on shareholder value creation
Focus on shareholder value creation Margins (%) PAT (INR cr) and EPS (INR per share) 182 20% 14% 13% 13% 13% 104 12% PAT 7% EPS 7% 55 5% 6% 5% 4% 27 21 2% 2% 1% 17.56 5.82 11.07 2.93 2.25 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Gross Margin EBITDA Margin PAT Margin Return Ratios (%) 36% RO
Slide 19: Strong Balance Sheet to support future growth
Strong Balance Sheet to support future growth Net-worth (INR cr) Leverage Ratios 660 494 1.3 1.2 392 337 316 0.7 0.3 0.3 0.2 0.2 0.1 0.0 FY20 FY21 FY22 FY23 FY24 0.0 FY20 FY21 FY22 FY23 FY24 Net debt to equity Net debt to EBITDA • Strong Balance to support capex plans of ~INR300cr to be done in stag
Slide 20: Strategic Priorities
Strategic Priorities 1. 2. 3. 4. Strong focus on new Maximizing Operating Market Penetration product development Leverage Stakeholder value creation • Improve presence in • Pioneering Product • Capacity and domestic and Launches on the back Capability • Profitable growth and overseas markets. of str
Slide 21: Pioneering Product Launches Powered by Extensive R&D
Pioneering Product Launches Powered by Extensive R&D • Started manufacturing of Anti • Received Third Party Track (Track Resistant) approval for India’s • Started Compound suitable for 36 first locally produced • R&D on • Next focus going manufacturing KV. It will find big demand in Water Tree Retar
Slide 22: HFFR
HFFR 5,000MTPA FY23 • The HFFR market is poised to grow 7x from ~28,000 MT as of today to ~2 lakh MT by FY30. • It is expected to replace fast PVC House wiring cables and the govt mandate has already come to use/replace in all public places. • We would increase our HFFR capacity in a staggered manne
Slide 23: Higher Capacity Utilization and Addition to drive future growth
Higher Capacity Utilization and Addition to drive future growth Installed Capacity (MTPA) Utilization (%) 2,39,000 70% 60% 59% 60% 2,37,000 2,37,000 52% 2,37,500 2,33,000 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 HFFR Engineering Plastics Compounds HFFR Engineering Plastics Compounds Sioplas
Slide 24: Capex
Capex 125 2024: Expansion of HFFR compounding capacity by 5,000 MTPA. Debottlenecking. 2025: New Greenfield Site at East & West 75 70 Debottlenecking. 2026: Expansion of HFFR compounding capacity by 15,000 MTPA. Building space for further capacity for all compounds. 30 2027: Expansion of PE compound
Slide 25: Operational Performance
Operational Performance FYE March, FY20 FY21 FY22 FY23 FY24 Antifab Installed Capacity 50,000 50,000 36,000 36,000 20,500 % Utilization 48% 55% 96% 76% 111% PVC Compounds 40,000 44,000 44,000 44,000 44,000 % Utilization 84% 54% 42% 48% 57% Sioplas/XLPE/Semicons 1,28,500 1,28,500 1,42,500 1,42,500 1,
Slide 26: Penetrating in India and overseas markets
Penetrating in India and overseas markets Geographical revenue structure (INR cr) Leading supplier across sectors 1,823 1,187 1,063 968 905 671 787 Power Oil & Gas Construction Non Metal 608 349 267 FY20 FY21 FY22 FY23 FY24 Revenue from International Business Revenue from Domestic Business IT Park I
Slide 27: SWOT
SWOT Strengths Weakness Opportunity Threats • Established market • Supply chain disruption. • Increased replacement of • Increasing wireless position. conventional material in communication • Volatility in raw material various sectors. technology. • Capability of large scale prices. operation allowi
Slide 28: Way Forward
Way Forward ~15% We Expect to Continue to Overall Industry Shift from unorganized Higher growth New product Grow at 15% CAGR in Next growth of double digit to organized sector from recently launches 5 Years. launched products Looking ahead, we remain steadfast in our commitment to maintaining a grow
Slide 29: Financials
Financials 29-32
Slide 30: FY24 Consolidated Key Result Highlights
FY24 Consolidated Key Result Highlights Revenue (INR Cr) EBITDA (INR Cr) 52% 282 -3% YoY YoY 2,504 186 • In the fiscal, we experienced strong 2,431 demand from the Cables segment, and our ongoing efforts to shift the product mix towards niche and high-voltage products led to better FY23 FY24 FY23 FY
Slide 31: Consolidated Q4FY24 Financial Performance
Consolidated Q4FY24 Financial Performance Particulars (INR in Cr) Q4FY24 Q4FY23 YoY% FY24 FY23 YoY% Revenue from Operations 597 667 -10% 2,431 2,504 -3% EBITDA 92 75 22% 282 186 52% EBITDA Margin % 15% 11% 401bps 12% 7% 418bps Depreciation 4 3 39% 14 12 17% Earnings Before Interest & Tax 79 63 25% 2
Slide 32: Historical Income Statement
Historical Income Statement Particulars (INR in Cr) FY 21 FY 22 FY 23 FY24 Revenue from Operations 1,534 2,227 2,504 2,431 Gross Profit 199 291 355 475 EBITDA 74 128 186 282 EBITDA Margin % 5% 6% 7% 12% Depreciation 11 12 12 14 Earnings Before Interest & Tax 50 94 148 244 Interest 35 41 33 23 Profit
Slide 33: Historical Balance Sheet
Historical Balance Sheet Particulars (INR in Cr) FY 21 FY 22 FY 23 FY24 Particulars (INR in Cr) FY 21 FY 22 FY 23 FY24 (a) Equity Share Capital 9 9 9 10 Non-Current Assets (b) Other Equity 328 382 485 650 Tangible Assets 201 206 225 231 Total Equity 337 392 494 660 Other Intangible Assets 0 0 0 0 No
Slide 34: Annexures
Annexures 33-42
Slide 35: Major Milestones Achieved
Major Milestones Achieved • Demerger of the two businesses. • Listing post Demerger • Set up of Engineering • Started manufacturing of Plastic Compounding Anti Track (Track Resistant) unit at Daman Compound suitable for 36 Started new factory Started new • Started manufacture KV. It will find big de
Slide 36: Experienced Board of Directors
Experienced Board of Directors Mr. Narrindra Suranna Mr. Ddev Surana Chairman & Managing Director Whole Time Director and CEO • Associated with Company since inception. • Dynamic business leader and key driving force of Wide experience in Plastic Industry, Company. Company has reached its present he
Slide 37: Leadership Team
Leadership Team Mr Arihant Bothra Ms. Tanvi Goenka Chief Financial Officer Company Secretary • He is an Associate member of Institute of • She is a graduate in commerce and has received her Chartered Accountants of India and an IIM membership of Institute of Company Secretaries of Calcutta Alumni. V
Slide 38: Accreditations and Industry Recognition
Accreditations and Industry Recognition ISO Certificates KEMA Approval CPRI Approval CACT Approval VDE Approval XLPE ROHS TESTS POWERGRID Approval UL Approval PVC ROHS REACH TESTS ERDA 01 www.ddevgroup.in | 37
Slide 39: Benefits of strong Research and Development Infrastructure
Benefits of strong Research and Development Infrastructure Developments of various grades of PVC & XLPE Maintenance of leading position in the market 1. 8. compounds to meet changing market needs Efficiency and yield improvement, loss 7. Increased output and labor saving reduction and modernization
Slide 40: Awards & Recognitions
Awards & Recognitions Awarded Awarded “Excellence in Sub-Sector- “Excellence in Exports- Plastics Polymers & Polymer Petrochemicals” Processing / Compounding Federation of Indian Chemicals” Federation of Chambers of Commerce Indian Chambers of and Industry (FlCCl) Commerce and Industry (FlCCl) 01 ww
Slide 41: Sustainability at the Core
Sustainability at the Core Distributed balanced nutrition food to Undertaken the CSR Initiative of Planted over 500 trees School Students at Surangi providing Nutrition Supplement to TB at manufacturing units and schools Govt. High School patients in Surangi Village. Eye check ups of 600 persons and
Slide 42: Diversified Customers - Domestic
Diversified Customers - Domestic Top clientele constitutes of prominent domestic and global companies Well established relationships with renowned clientele provide stability to revenues and drive business going forward 01 41
Slide 43: Diversified Customers - Exports
Diversified Customers - Exports 42
Slide 44: For further information, please get in touch
For further information, please get in touch with Saloni Ajmera Tanvi Goenka, CS Go India Advisors Ddev Plastiks Industries Ltd Tel: +91-99305 77801 Tel: +91 62922 42145 Email: saloni@goindiaadvisors.com Email: tanvi.goenka@ddevgroup.in Sheetal Khanduja Go India Advisors Arihant Bothra, CFO Tel: +91
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