Pennar Industries Limited · NSE:PENIND
Pennar Industries — FY2010 Earnings Presentation
40 slides from Pennar Industries's earnings presentation, May 28, 2010
Slide 1: Analysts' Presentation FY'10
Pennar Industries Ltd. Analysts’ Presentation FY -’10 28th May 2010
Slide 2: Outline
Outline • Pennar Industries Today • Opportunities in Railway Sector • Pennar Engineered Buildings • Key Financial Results • Overall Business Strategy
Slide 3: Pennar's Transformation
Pennar’s Transformation from a Steel Strip Company to a Company making Value Added Products for Engineering, Heavy Engineering, Infrastructure and Construction Sectors
Slide 4: Pennar Industries - Today
Pennar Industries -Today • Multi Product, Multi Location Company with Customers in diverse industrial segments • Knowledge Based • 1,000 + Precision Engineered Products • 2,500 + Tools and Dies • 300 + Customers • 1,400 + Employees
Slide 5: Diversified Product Range
Diversified Product Range Heavy Pre- Engineered Infrastructure Engineering engineered Products Products Products Buildings Automobile Panels Rail Wagons Building Components and Profiles Turnkey Buildings Body & Profiles Components for Road Safety Systems General Engineering Coach Body & Leak proof C
Slide 6: Six Manufacturing Locations
Six Manufacturing Locations Patancheru Plant (Hyderabad) Isnapur Plant (Hyderabad) • 125,000MT Capacity • 52,860 MT • 45 Acres • 27 Acres Tarapur (Maharashtra) • 14,000MT • 5 Acres Chennai Plant Sadashivpet Plant • 30,000 MT (Hyderabad) • 35 Acres • 30,000MT • 26 Acres *The company also has a press
Slide 7: Engineered Products
Engineered Products Automobile Panels and Profiles General Engineering Components Precision Tubes Rolled Steel Products
Slide 8: Heavy Engineering Products
Heavy Engineering Products Rail Wagons Rail Coaches Under frame Assembly
Slide 9: Infrastructure Products
Infrastructure Products ESP Electrodes Road Safety Systems Building Components Heavy Structures
Slide 10: Key Customers
Key Customers Tata Motors Tecumseh L&T –ECC Division BPL Ashok Leyland FL Smidth TVS Motors Electrolux India Alstom Power Vijai Electricals Eicher Motors Bosch Chassis Systems Mahindra & Hindustan Construction Mahindra Hero Honda Thermax Ltd Integral Coach Factory Kirloskar Copeland Lucas TVS Voltas
Slide 11: Pennar - Growth and Milestone Achievements
Pennar - Growth and Milestone Achievements Pre Engg Building Systems, Sadashivpet, 30,000 TPA Profiles, Profiles, Components Components and sub- and sub- assemblies, assemblies, Chennai, Chennai, 30,000 TPA 30,000 TPA Precision Precision Precision Component, Component, Component, Hosur, 2,000 Hosur,
Slide 12: Pennar's dynamic sales growth
Pennar’s dynamic sales growth 2500 2000 2000 In Rs. crores 1500 1200 1000 1060 860 730 641 500 560 480 370 175 110 0 FY '03 FY '04 FY '05 FY '06 FY '07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 12
Slide 13: Revenue Segment wise
Revenue Segment wise Roads Auto (profiles and 3% components) ESP and fab 4% 10% Building 12% Auto (CRSS) 13% Bearings 2 % Packaging 1% Electrical 11% Railways 33% White Goods 3% General Engineering 8%
Slide 14: Outline
Outline • Pennar Industries Today • Opportunities in Railway Sector • Pennar Engineered Buildings • Key Financial Results • Overall Business Strategy
Slide 15: Riding the growth in the railways sector
Riding the growth in the railways sector Strong opportunity for sustained growth Indian Railways o Has announced plans to invest heavily on infrastructural projects during the 11th Five Year Plan (2007-2012) o Will acquire 18,000 wagons in the fiscal year 2010/11, up by 11,000 from last year. o Plan
Slide 16: Railway sector.. Our position of strength
Railway sector.. Our position of Strength • Strong relationships with leading wagon/coach manufacturers like ICF, Texmaco & railway workshops. • Chennai facility expansion underway to meet increase in demand • Current products portfolio o Engineered high strength-light weight chassis members, coach
Slide 17: Outline
Outline • Pennar Industries Today • Opportunities in Railway Sector • Pennar Engineered Buildings • Key Financial Results • Overall Business Strategy
Slide 18: Pennar Engineered Building Systems - Poised for Growth
Pennar Engineered Building Systems – Poised for Growth • A subsidiary of PIL that designs, manufactures and erects engineered buildings. • Commissioned first phase 30,000 tpa plant in January 2010 • Technical Collaboration with NCI Building Systems one of the largest PEB companies in the world with
Slide 19: Expanding opportunities for PEBs
Expanding opportunities for PEBs • Logistics sector for rapid buildup of warehousing capacity Warehousing market is expected to grow at 40% from Rs 10000 crore in 2008 to Rs 27500 crore in 2013 Capacity expansion to handle 35 million metric tonnes by 2012 Rs 2,500 crore expected to be invested in ne
Slide 20: Technical Association with NCI Building Systems
Technical Association with NCI Building Systems NCI Building Systems • One of the largest integrated manufacturers of custom designed engineered building systems with around USD 1 Billion in revenue in 2009. • NCI’s business divisions include coil coating, component manufacture and pre- engineered b
Slide 21: PEB Products
PEB Products PRIMESUILD | Double-Lok® Standing Seam Roofing with 10 years leak proof warranty by PEBS Pennar APPROVED Purlins/Girts/Eave struts are pre-galvanized with 275 gsm Primary structures shot-blasted to Swedish standard SA 2.5 with epoxy primer* Continuous supervision at site during installa
Slide 22: Orders procured
Orders procured – Rs. 120 crore • Following are some of our prestigious customers UltraTech Dr Reddy’s Latur Integrated L and T Buzurga Plaza Textile park Pvt. Cement Labs Ltd. Core Green My Home AL Hatimy Sugars & Fuels Samyu Glass Industries Ltd. Developers Ltd Ltd. Prime Fuel Pvt. Ltd. La Kairo L
Slide 23: Pennar to offer Green buildings
Pennar to offer Green buildings • PEBS believes in the cause for a green future. • Buildings fabricated by the company have innate features that make them green to large extent. • First pre engineered building in the sector to offer comprehensive solutions for LEED compliance • Member of Indian Gree
Slide 24: Outline
Outline • Pennar Industries Today • Opportunities in Railway Sector • Pennar Engineered Buildings • Key Financial Results • Overall Business Strategy
Slide 25: Our Transformation in numbers FY'10
Our Transformation in numbers FY ‘10 Net Income Rs. Crores 900 800 797.96 EBIDTA (Rs. Crores) 700 653.27 600 560.22 120 503.28 109.8 500 422.99 400 100 75.83 300 66.32 80 200 53.04 100 60 0 37.53 2005-06 2006-07 2007-08 2008-09 2009-10 40 20 0 2005-06 2006-07 2007-08 2008-09 2009-10
Slide 26: Our Transformation in numbers FY 2010
Our Transformation in numbers FY 2010 EBIDTA Margin in % 16 13.76 14 Cash Profit in Rs. Crores 12 11.84 11.61 10.54 80 75.54 10 8.87 70 55.53 8 60 45.18 50 6 35.78 40 26.91 4 30 2 20 0 10 2005-06 2006-07 2007-08 2008-09 2009-10 0 2005-06 2006-07 2007-08 2008-09 2009-10
Slide 27: Our Transformation in numbers FY 2010
Our Transformation in numbers FY 2010 Post tax profit Rs. Crores 60 50.07 50 Post - tax profit margin % 38.09 40 30.81 7 6.27 30 22.31 5.83 6 5.5 13.73 5 4.43 20 4 10 3.25 3 0 2 2005-06 2006-07 2007-08 2008-09 2009-10 1 0 2005-06 2006-07 2007-08 2008-09 2009-10
Slide 28: Our Transformation in numbers FY 2010
Our Transformation in numbers FY 2010 EPS per share of Rs. 5/- 4.5 4.1 4 3.5 3.09 3.01 3 2.5 2.31 2 1.88 Return on Capital Employed (%) 1.5 45 39.5 1 40 0.5 35 30.27 29.16 0 30 24.97 2005-06 2006-07 2007-08 2008-09 2009-10 19.89 25 20 15 10 5 0 2005-06 2006-07 2007-08 2008-09 2009-10
Slide 29: Looking Ahead...
Looking Ahead… Profitable growth through margin expansion – Increasing revenue contribution from value-added products – Revenue contribution from value-added products slated to go up from 70 % to 80 % by 2011 Sustained growth through increasing sales from the rail sector – Railway sector relatively
Slide 30: Financial Results - 2010
Financial Results - 2010 Sales – • Rs. 861.1 cr - Increase of 17.8% over FY 09 EBIDTA – • 109 cr – increase of 45% over FY 09 PBT – • 85.6 cr – increase of 62% over FY 09 Net Profit - • Rs. 50 crore – increase of 31% over FY09 Basic EPS • Rs. 4.1 per share of 5/- increase of 36 over FY09
Slide 31: Outline
Outline • Pennar Industries Today • Opportunities in Railway Sector • Pennar Engineered Buildings • Key Financial Results • Overall Business Strategy
Slide 32: Overall business strategy
Overall business strategy • Margin expansion – Concentration on higher margin value-added products • Steady growth in revenues – Increase product range for existing customers across verticals • Opening up new product and business segments – Expand pre-engineered building systems business. – Diversif
Slide 33: Business Strategy
` Economic Economic Inorganic growth Inorganic growth - Robust - Robust Growth Growth of of Economy - Rail Sector poised for big Economy -Acquisition of Engineering -Acquisition of Engineering - Railgrowth Sector poised for big CompaniesCompanies growth-Infrastructure sector to -Diversify into Non c
Slide 34: Summary
Summary Pennar • Transformed from a CR Steel to a company making Engineering, Heavy Engineering and fabricated products • Pennar Engineered buildings – Construction has enormous scope for growth • Major Customers segment – Railways, Auto and Infrastructure expected to grow at a rapid rate
Slide 35: Summary....
Summary…. • Adequate manufacturing capacity at six plants and well qualified engineering man power. • Financially strong with very low long term debt • Pennar on a rapid growth path and is preparing to double its sales to Rs. 2000 crores in five years time
Slide 36: Pennar is all about Engineering.......
Pennar is all about Engineering……. Pre Engineered Building Road safety Barriers on Brahmaputra river 80 feet exhaust stack PEB Roof in Tanzania, Africa
Slide 37: Pennar is all about Engineering.......
Pennar is all about Engineering……. Side walls for wagons Load bodies for Truck ESP electrodes for export Pressed Components
Slide 38: New market segments
New market segments • Precision Engineering • Aerospace • Defence • Nuclear
Slide 39: For more Information please visit
For more Information please visit: www.pennarindia.com www.pebspennar.com
Slide 40: Thank You
gp Pennar Pennar Industries Ltd.