Venus Pipes & Tubes Ltd. · NSE:VENUSPIPES
Venus Pipes & Tubes — Q1 FY23 Earnings Presentation
35 slides from Venus Pipes & Tubes's earnings presentation, August 2022
Slide 1: Venus Pipes & Tubes Limited Investor Presentation
VENUS PIPES & TUBES LIMITED Investor Presentation August 2022
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes 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 3: Venus Pipes & Tubes Limited
Venus Pipes & Tubes Limited Making ourselves as first reference and preference in stainless steel pipes 58 105% Vision and tubes manufacturer Clientele base out of PAT CAGR Fortune 500 Companies from FY19 to FY22 in India To provide quality and flawless service for dealing with customer / Diversifie
Slide 4: Product Portfolio & Applications
Product Portfolio & Applications Products manufactured are as per the International Standards to cater both Domestic & International markets Stainless Steel High Precision and Stainless Steel Hydraulic and Stainless Steel Seamless Pipes Stainless Steel Welded Pipes Stainless Steel Box Pipes Heat Exc
Slide 5: Diversified End Use
Multiple End User Industry Diversified End Use Chemical Engineering Fertilisers Pharmaceutical Power Food Processing Paper Oil & Gas Aerospace 5
Slide 6: State of the Art Infrastructure
State of the Art Infrastructure… Strategically located Manufacturing facility at Dhaneti (Kutch) within proximity of Kandla & Mudra ports for enabling imports and exports Facility on a land admeasuring 68,090 Sq. Mt. Surplus land of 45,690 Sq. Mt. available for proposed capacity expansion/integratio
Slide 7: Stringent Quality Inspection & Testing
…with Stringent Quality Inspection & Testing Rigorous testing system for our products to Ensure Finest Quality is delivered for our products Tensile Test Hydro-static Test Quality Tests Hardness Test Eddy Current Test Non-Destructive Tests Destructive Tests IGC Test Air under Water Test Reverse-bend
Slide 8: Marquee Clientele
Marquee Clientele > OYKmes gdani aed oe LIMITED rs) anl 2 : 5 . ajanta pharma e Taste of India asianpaints (a8 ae Ci | IZ Dal G li ENGINEERS BHEL IPI coromande! = almia INDIA LIMITED FUTURE POSITIVE Bharat Sugar SF ANavratna Company] ie Z \ @ a marmen = gVisra ro tee Q\ [/ ENGINEERING LTD. ITC Limit
Slide 9: New Customers in FY22
New Customers in FY22 We got the privilege to add more feathers in our cap in FY22 by acquiring clients from varied sectors ▪ Toyo Engineering India Private Ltd - Toyo Engineering India P Ltd, ▪ Chemical: Asian Paint, Hikal Ltd, Navin fluorine, Gujarat one of the leading EPC consultants for Oil & ga
Slide 10: Awards & Certifications
Awards & Certifications Calendar Years Certifications & Accreditations Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 9001: 2015, ISO 2016 14001:2015 requirements 2017 Our Company has been verified and recognized as m
Slide 11: Experienced Board of Directors
Experienced Board of Directors Jayantiram M Choudhary Arun Kothari Megharam S Choudhary Dhruv M Patel Chairman and Non-Ex Director Managing Director Whole Time Director Whole Time Director Associated with the Company since its Associated with the Company since 2021 as Associated with our Company sin
Slide 12: Strong Management Team
Strong Management Team Jayantiram M Choudhary Arun Kothari Megharam S Choudhary Dhruv M Patel Chairman and Non-Ex Director Managing Director Whole Time Director Whole Time Director Associated with the Company since Associated with the Company since Associated with our Company Associated with the Com
Slide 13: Delivering Value to Stakeholders
Delivering Value to Stakeholders May 2022 ✓ Listing of Venus Pipes & Tubes Limited ✓ Listing done on BSE & NSE ✓ Fresh Issue of Equity shares aggregating to ₹ 165.4 Cr. ✓ Objects of the Issue : 1. Financing the project cost towards • Capacity expansion • Technological upgradation • Cost optimization
Slide 14: Industry Outlook
INDUSTRY OUTLOOK
Slide 15: Industry Outlook
Industry Outlook ✓ The Indian stainless-steel sector is the 2nd largest producer (till 2020) and consumer in the world and has a total manufacturing capacity of more than 5 Mn tons of stainless steel annually ✓ India’s per capital stainless steel consumption has increased from 1.2 Kg in 2010 to 2.5
Slide 16: Industry Growth Drivers
Industry Growth Drivers Industry Growth Drivers ✓ Significant demand for Pipes & Tubes specifically from industry like chemical , pharma, engineering etc. ✓ In value terms, the size of Chemical industry is currently estimated at USD 178 Bn which is slate to grow to USD 300 Bn by 2025, growing annual
Slide 17: Strategies to Support Growth
STRATEGIES TO SUPPORT GROWTH
Slide 18: Capacity Expansion & Backward Integration
Capacity Expansion & Backward Integration Capacity Expansion for Finished Products (MTPA) Pursuing Capacity Expansion…. Current Post Expansion Particulars 25,200 Size (mm) Capacity Size (mm) Capacity 3.7x Capacity Expansion Seamless 6 – 114.3 3,600 MTPA 6 – 168.3 9,600 MTPA Welded 6 – 219.3 8,400 MT
Slide 19: Geographical Expansion
Geographical Expansion FY22 Exports in More than 20+ Countries 10.5% ₹ 40.4 crs 4.8% ₹ 14.7 crs 3.4% ₹ 6.0 Crs FY20 Contribution from Export Revenue Leverage our Existing Relationship to Deepen our Presence in Export Markets 19
Slide 20: Improving Efficiency & Brand Positioning
Improving Efficiency & Brand Positioning Creating Brand for “VENUS” thereby increasing the Productivity & Efficiency Enhancement contribution from direct sales for higher realizations Install acid regeneration plant for lower consumption of acids to improve operating margins and better plant product
Slide 21: Q1 FY23 Financial & Operational Highlights
Q1 FY23 FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 22: Operational Highlights - Q1FY23
Operational Highlights - Q1FY23 Geography Wise State Wise 6.6% 21.6% 6.4% 32.1% 32.3% 43.4% Q1FY22 Q1FY22 5.1% Q1FY23 Q1FY23 55.3% 27.9% 61.9% 59.2% 5.9% 12.4% 29.8% Direct Domestic Export Stockist/Traders Gujarat Maharashtra Telengana Others ✓ Trusted brand created for “VENUS” led to increase in di
Slide 23: Key Financials – Q1FY23
Key Financials – Q1FY23 Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +40% +56% +34% ✓ Revenue for Q1FY23 stood at Rs. 114 113.6 14.5 9.1 crs as compared to Rs. 81 crs, a growth 6.8 of 40% 81.1 60.3 9.3 ✓ Change in product mix has led to 46.6 increase in gross margins by 380 bps 17.5 44.8 17.1 ✓
Slide 24: Profit & Loss – Q1FY23
Profit & Loss – Q1FY23 Profit and Loss (in ₹ Cr) Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenue from Operations 113.6 81.1 40.1% 110.2 3.1% Cost of Goods Sold 90.5 67.6 88.6 Gross Profit 23.1 13.4 72.4% 21.6 6.9% Gross Profit Margins (%) 20.4% 16.6% 19.6% Employee Cost 2.3 1.2 2.0 Other Expenses 6.4 2.9 5.9 E
Slide 25: Historical Financial & Operational Highlights
HISTORICAL FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 26: Product Category Split
Product Category Split Revenue (in ₹ Cr) Volume (in MTS) +26% 221 8,506 ✓ Revenue and Volumes have grown 7,412 +40% 7,146 tremendously across both our Welded 139 segments in a short span of just 4 125 4,222 years 81 ✓ Volume growth for Welded has been at a CAGR of 26% and for Seamless FY19 FY20 FY21
Slide 27: Direct Sales Split
Direct Sales Split Direct Domestic Sales Spilt ✓ Revenue contribution from Other 3.4% 6.8% 5.3% 1.1% industries has increased from 4.3% 3.6% 4.3% 2.9% 1.1% in FY20 to 7.4% in FY22 7.4% 30.7% ✓ Revenue dependency from chemical 44.6% FY20 FY21 49.7% FY22 industry has reduced from 44.6% in 38.8% FY20 t
Slide 28: Sales Split across Geography
Sales Split across Geography ✓ Revenue contribution from exports have increased from 3.4% in FY20 to 10.5% in FY22 Geography 40.4% 37.4% 43.8% 45.8% ✓ Direct domestic sales to end consumers FY20 FY21 FY22 have increased from 37.4% in FY21 to 45.8% 56.3% 57.9% in FY22 4.8% ✓ Revenue contribution from
Slide 29: Key Historical Financials
Key Historical Financials Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +48% 387 49 +105% 32 309 +81% 24 35 178 119 12 8 4 4 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Gross Profit Margin EBITDA Margin PAT Margin 18.6% 12.7% 8.2% 11.2% 7.6% 15.5% 14.4% 11.7% 7.0% 6.5% 3.1% 2.3% F
Slide 30: Profit & Loss
Profit & Loss Profit and Loss (in ₹ Cr) FY22 FY21 FY20 FY19 CAGR Revenue from Operations 386.9 309.3 177.8 118.8 Cost of Goods Sold 315.0 261.5 157.0 101.6 Gross Profit 71.9 47.9 20.8 17.1 61% Gross Profit Margins (%) 18.6% 15.5% 11.7% 14.4% 415 bps Employee Cost 6.2 3.2 2.7 2.5 Other Expenses 16.4
Slide 31: Balance Sheet
Balance Sheet Assets (in ₹ Cr) Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (in ₹ Cr) Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 30.4 20.9 17.5 10.0 Total Equity 128.5 39.9 16.3 12.2 Share Capital 15.2 8.7 8.7 8.7 Property Plant & Equipments 21.3 19.5 12.2 9.8 Reserves & Surplus 113.3 31.2
Slide 32: Cashflow Statement
Cashflow Statement Particulars (in ₹ Cr) FY22 FY21 FY20 FY19 Net Profit Before Tax 42.9 31.0 6.5 4.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 5.6 5.1 4.1 2.6 Operating profit before working capital changes 48.5 36.1 10.6 7.6 Changes in working capital -97.4 -24.0 -7.1 -
Slide 33: Key Ratios
Key Ratios ROE* Debt / Equity Ratio ROCE* 59% 2.6 61% 57% 2.4 44% 31% 30% 30% 25% 0.9 0.5 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 *The company had made Private Placement on 21st October 2021 of ₹ 59.443 cr 33
Slide 34: Key Takeaways
Key Takeaways Capacity Expansion Geographical Expansion Brand Value Proposing to expand our existing manufacturing capacity We intend to leverage our existing We intend to make consistent efforts to for welded pipes/tubes and seamless pipes/tubes for relationships to further deepen our strengthen ou
Slide 35: Thank You
Thank You Venus Pipes & Tubes Limited CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna (President – Accounts & Finance) cs@venuspipes.com Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Ms. Saloni Soni sagar.shroff@sgapl.net / saloni.soni@sgapl.net +91 98205 19303 /