Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q1 FY23 Earnings Presentation
38 slides from Prince Pipes And Fittings's earnings presentation, Aug 9, 2022
Slide 1: Stock exchange cover letter for conference call presentation
~PRIN --=--- PIPING SYSTEMS E® PPFL/SE/2022-2023/034 August 09, 2022 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/Madam,
Slide 2: Investor Presentation Q1 FY23
Prince Pipes and Fittings Limited INVESTOR PRESENTATION Q1 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 05 FINANCIAL PERFORMANCE 06 INDUSTRY OVERVIEW 10 COMPANY OVERVIEW 12 THE ROAD AHEAD… 22 PRODUCT BASKET 23 SEEKING GROWTH…THE ESG WAY 28 AWARDS AND BRANDING 29 BOARD OF DIRECTORS 32 CORPORATE STRUCTURE AND SHAREHOLDING 33 ANNUAL FINANCIA
Slide 5: Performance Highlights
PERFORMANCE HIGHLIGHTS o For Q1FY23, revenue at ₹ 604 crore compared to ₹ 331 crore in Q1FY22, grew by 83% o Sales volume increased by 69% at 31,250 MT in Q1FY23 as compared to 18,466 MT in Q1FY22 o For Q1FY23, EBITDA at ₹ 44 crore compared to ₹ 41 crore in Q1FY22, increase by 7% o EBITDA margin for
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS o Prince Pipes announces entry into Bathware Sector - natural extension of product portfolio into faucets and sanitaryware ➢ The initiative is a part of our growth strategy to offer a complete range of bathroom solutions & leverage pan-India network of dealers o Renewal of Akshay
Slide 7: Financial Performance for Q1 FY2023
FINANCIAL PERFORMANCE FOR Q1 FY2023 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 604 50 31,250 45 44 18 41 16 40 35 18,466 30 331 25 20 15 10 5 - Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 6 INVESTOR PRESENTATION | August 2022
Slide 8: Financial Performance for FY2022
FINANCIAL PERFORMANCE FOR FY2022 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 1,38,289 1,39,034 2,657 415 249 362 222 2,072 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 7 INVESTOR PRESENTATION | August 2022
Slide 9: Profit & Loss Statement as on 30th June, 2022
PROFIT & LOSS STATEMENT AS ON 30TH JUNE, 2022 ₹ in Crore Particulars Q1FY23 Q1FY22 Y-o-Y (%) Total Sales 604 331 83% Raw Material Consumed 478 233 105% Employee benefit expenses 26 21 24% Other Expenses 56 36 56% EBITDA 44 41 7% EBITDA Margin (%) 7.3 12.5 (520) Bps Depreciation 20 16 25% EBIT 24 25
Slide 10: Working Capital Cycle
WORKING CAPITAL CYCLE 88 68 58 55 36 36* 66 67 78 59 47 70 40 77 59 62 40 66 60 85 77 48 78 38 FY18 FY19 FY20 FY21 FY22 Q1FY23 Debtor Days Inventory Days Creditor Days Working Capital Days * Reclassified to 15 days based on regrouping of financials for FY 21 9 INVESTOR PRESENTATION | August 2022
Slide 11: 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 12: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Swachh Bharat Mission 75% of 600 million – To achieve universal households do sanitation coverage and Smart City Mission – To Indians face drive economic growth not have high to extreme to put focus on drinking water By 2030, 40% of and improve the quality stress over Sanitat
Slide 13: 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 14: Prince at a Glance
PRINCE AT A GLANCE 1987 7 8 7,200+ Incorporation No. of Facilities Warehouses SKUs ~1,500+ CRISIL A+ Long Term 1,660 Channel Partners Outlook: STABLE Debt Free Employees 6,613 Cr 249 Cr ~3,09,000 MTPA Prince and Market Cap PAT Total installed Trubore (For June 30th 2022) (For FY 2022) Capacity Produ
Slide 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: Product Basket
PRODUCT BASKET Plumbing Solutions PPR Plumbing & Low Noise SWR CPVC Plumbing Industrial UPVC Plumbing Underground Drainage Roofwater Piping Systems UPVC Industrial Piping Systems Underground Double Wall Corrugated Pipes Sewage & Underground Drainage Portfolio Reclaim Piping Systems SWR Piping System
Slide 25: Product Basket
PRODUCT BASKET Sewage & Underground Drainage Portfolio Irrigation Solutions Storage Solutions Agriculture Piping Systems Manhole & Chamber Covers Solutions Borewell FRP Manhole & Chamber Cover 24 INVESTOR PRESENTATION | August 2022
Slide 26: 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 27: 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 28: Focus on Triple Bottom Line
FOCUS ON TRIPLE BOTTOM LINE 8,898 MT Coal Burned/Year Financial Green Energy 1 Equal To 293 K Tree Seedlings, Grown for a Decade Triple Bottom-line 2 Environmental Reduce Green-house Gas Emissions over the past years Goals 4.8% Carbon Footprints reduced in 1 year 61,041 MT Carbon Footprints saved in
Slide 29: 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 30: Awards & Achievements
AWARDS & ACHIEVEMENTS Certificate of appreciation Mr. Parag Chheda - JMD was Digital Transformation for active association at the awarded the ‘Inspiring Awards 2016 – Prince pipes has been awarded 2016 Gujarat Premier 10th Mega Business Leader Award’ at Transformation with 2022 The best channel Loya
Slide 31: Product Branding
PRODUCT BRANDING Auto Branding & Marketing Targeting Regional Festivals Promoting Prince + FGP through shop boards Auto Branding & World Plumbing Day Marketing Campaign 30 INVESTOR PRESENTATION | August 2022
Slide 32: Pan India Influencer & Channel Engagement Activities
PAN INDIA-INFLUENCER & CHANNEL ENGAGEMENT ACTIVITIES 31 INVESTOR PRESENTATION | August 2022
Slide 33: 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 34: Corporate Information & Shareholding
CORPORATE INFORMATION & SHAREHOLDING Shareholding Pattern (as on 30th June, 2022) Stock Data Institutions Market Cap as on 08th August 2022 ₹ 7,022 Cr. 19% Stock Price as on 08th August 2022 ₹ 635.20 52 Week (High / Low) ₹ 897.0/549.3 Others NSE / BSE - Symbol PRINCEPIPE / 542907 18% Promoters 63% N
Slide 35: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 2,657 12.3%% 12.3% 14.0% 17.5% 15.6% 5.6% 5.3% 6.9% 10.7% 9.4% 2,072 Margin Margin 415 249 1,561 1,631 362 222 1,315 229 162 184 113 74 82 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18
Slide 36: Stakeholder's Value Creation
STAKEHOLDER'S VALUE CREATION A disciplined balance sheet Navigating opportunities across new Strong Corporate Governance 35% geographies 29% Enhancing Brand Highly Scalable Equity Manufacturing Capabilities 257% 36% Prudent Capital Vision-oriented Allocation leadership 35 INVESTOR PRESENTATION | Aug
Slide 37: 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 38: 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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