Indag Rubber Limited · BSE:INDAG
Indag Rubber — H1 FY2021 Earnings Presentation
33 slides from Indag Rubber's earnings presentation, December 2020
Slide 1: Investor Presentation – Q2 & H1 FY21
INDAG RUBBER LIMITED The only alternative to new tyres….since 1978 Investor Presentation – Q2 & H1 FY21 December 2020
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Indag Rubber 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 securiti
Slide 3: Q2 & H1 FY21 Financial Highlights
Q2 & H1 FY21 FINANCIAL HIGHLIGHTS
Slide 4: CEO’s Message
CEO’s Message Commenting on the Result, Mr. K. K. Kapur CEO, Indag Rubber Limited said, “After a subdued performance in Q1 due to Covid-19 led disruptions with partial shutdown of operations, logistics and supply chain issues and lower demand, our Company’s manufacturing facilities resumed partially
Slide 5: Q2 FY21 Financial Highlights
Q2 FY21 Financial Highlights Rs. Crs. Revenue* EBITDA* Profit after Tax +22.9% +7.7% -7.5% 53.0 7.8 4.7 49.0 4.4 6.3 +79.2% 27.4 +814.1% 0.9 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 -0.3 Q2 FY20 Q1 FY21 Q2 FY21 EBITDA Margin* (%) PAT Margin (%) +390 bps +140 bps 15.8% 9.7% 11.9% 8.3% +1270 bp
Slide 6: Consolidated Financials – Q2 & H1 FY21
Consolidated Financials – Q2 & H1 FY21 Particulars (Rs. In Crs.) Q2 FY21 Q2 FY20 Y-o-Y Q1 FY21* Q-o-Q H1 FY21 H1 FY20 Y-o-Y Total Revenue from Operations 46.8 52.0 26.7 73.5 102.2 Other Income 2.3 1.0 0.7 2.9 2.6 Total Revenue (incl. Other 49.0 53.0 -7% 27.4 79% 76.4 104.8 -27% Income) Raw Material
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities (Rs. In Crs.) Sep-20 Mar-20 Assets (Rs. In Crs.) Sep-20 Mar-20 Equity Non Current assets Share Capital 5.3 5.3 Property, Plant and Equipments 41.5 40.8 Other Equity 189.9 182.0 Capital Work-In-Progress 13.1 10.1 Goodwill 0.4 0.4 Equity attributable to the 195.2
Slide 8: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. In Crs.) Sep-20 Sep-19 Net Profit Before Tax 5.8 9.3 Adjustments for: Non Cash / Other Items 0.3 0.7 Operating profit before working capital changes 6.0 10.0 Changes in working capital 15.8 -1.8 Cash generated from operations 21.8 8.2 Direct taxes pai
Slide 9: Consistent Dividend Pay-out
Consistent Dividend Pay-out Dividend 19% 15% 17% 19% 19% 20% 29% 40% 59% 18% Pay-Out 12.6 12.2 10.7 9.5 8.4 8.0 6.0 5.1 4.2 4.1 2.4 2.4 2.4 2.4 2.4 2.0 1.6 1.2 0.9 0.8 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 EPS DPS The Board has approved Interim Dividend for the Financial Year 2020-2021 o
Slide 10: Indag Disinvests in Solar Business
Indag Disinvests in Solar Business Indag Rubber Limited has announced the disinvestment/sale of 100% shareholding in its step-down subsidiary, Samyama Jyothi Solar Energy Private Limited by SUN-AMP Solar India Private Limited (subsidiary) to NextPower III Singapore Holdco. Pte. Ltd., for a considera
Slide 11: Who we are…
Who we are… India’s Most Trusted Tread Manufacturing Company 1,500+ Pioneered Cold Retreading Technology in India Retreaders Best Quality with Reasonable Pricing 40+ Presence in All types of Commercial Vehicle Tyre Segments Years in Business “Lowest Cost Per Kilometre” 18+ VISION & MISSION VALUES De
Slide 12: About Retreading
THE ONLY ALTERNATIVE TO NEW TYRES INDAG SINCE 1978 ABOUT RETREADING
Slide 13: What is Retreading
What is Retreading COLD PROCESS HOT PROCESS • Uncured rubber is added to a • Precured rubber of high density & available in various tread designs Retreading is a technology buffed casing & cured in the is lined with cushion gum before where the old tyres are made mould at temperatures of serviceable
Slide 14: Retreading Process
Retreading Process Final Enveloping & Rim Mounting Inspection & Building Painting Curing by Tread Buffing Chamber Rubber Initial Inspection Cementing and Filling Repairs & Skiving Collection of Casings
Slide 15: Benefits of Retreading
Benefits of Retreading Saves Money 30%-50% of the price of New tyre with life nearly the same as New tyre Durable Appropriate tread can last nearly the same as new tyre 01 02 Safety Tested to same stringent 06 Benefits of performance criteria as new tyre Retreading 03 Environment Friendly Requires ~
Slide 16: Flow of Business
Flow of Business Treads wear out Fleet Owners after certain Run the Vehicles usage Retread the same Buy new Tire Old Tire Indag manufactures and supplies Best Quality retreading products to the retreaders at a Reasonable Price If Cost of New Tyre is Savings Cost of Rs. 100 50-70% Retreaded Tyre Rs.
Slide 17: Business Overview
THE ONLY ALTERNATIVE TO NEW TYRES INDAG SINCE 1978 BUSINESS OVERVIEW
Slide 18: Our Journey
Our Journey Included as one of the best “Under 2016 1Bn” company by Forbes Asia Certificate of Excellence from Inc 500 in 2012 & 2013 Expanded Capacity from 13,800 MT to 20,000 MT JV was terminated with Bandag 2015 1978 - Incorporated as JV between Khemka Group took over Khemka Group & M/s Bandag In
Slide 19: Our Products
Our Products PRECURED TREAD UN – VUNCUNIZED UNIVERSAL SPRAY TYRE ENVELOPES RUBBER RUBBER CEMENT STRIP GUM • Capacity of 20,000 MT • Capacity of 1,800 KL • Capacity of 1,800MT Various allied products and • Radial and Bias Range • Solution available in • Bonding gum for spare tools used in • Range fro
Slide 20: Superior Technology
Superior Technology Indag uses advanced technology in terms of machinery, equipment and raw materials Our products give mileage that result in LOWEST COST PER KILOMETER Our processes have been certified as ISO 9001:2015 compliant Continuously engaged in R&D to develop and deliver superior compounds
Slide 21: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities State of the art manufacturing unit Located at Nalagarh Industrial Estate in Himachal Pradesh Advanced Technology in terms of machinery and equipment Modern Retreading Cum-Training centre to impart high quality of training Only company who uses curing temperatur
Slide 22: Focused Management
Focused Management Mr. Nand Khemka Mr. K K Kapur Mr. Uday Khemka Mr. Shiv Khemka Chairman & Managing Director CEO & Whole Time Director Director Director • M.S. in Foreign Trade & MBA in • With the company since 2001, • Son of Mr. Nand Khemka • Vice Chairman of SUN Production Management from the ser
Slide 23: Focused Management
Focused Management Ms. Bindu Saxena Mr. P R Khanna Mr. R Parameswar Non-Executive Director Non-Executive Director Non-Executive Director (Independent) (Independent) (Independent) Mr. Harjiv Singh Mr. Vijay Shrinivas Mrs. Manali D Bijlani Non-Executive Director Chief Commercial Officer Company Secret
Slide 24: Key Strengths
THE ONLY ALTERNATIVE TO NEW TYRES INDAG SINCE 1978 KEY STRENGTHS
Slide 25: Our Key Strengths
Our Key Strengths STRONG DISTRIBUTION TRAINING IMPARTED INNOVATION NETWORK Training imparted by Engineers We have a PAN India Presence who has unique qualifications Innovations & Invention with over 18 depots of Retreading to achieve of Different Recipes & Patterns Highest standards of Quality while
Slide 26: Strong Distribution Network
Strong Distribution Network 1,500+ PAN India Retreaders Presence 200+ Dealers 18+ Depots across India 50+ Sales Team Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, tim eliness or completeness.
Slide 27: Training Retreaders
Training Retreaders Training imparted by To achieve Highest standards Engineers who have long of Quality while re-treading experience of retreading under experts Training Centre Marketing the Product & Safety in all areas & High Differentiating from Standard Products & Service Others Delivery Consul
Slide 28: What our Clients say
What our Clients say “Strongly recommend Indag's retreads as they perform exceptionally well, upto 85% of new tyre mileage. Extremely satisfied with Indag's ZZYL 240 RRR tread for tubeless Radial tyres.” Bhagwati Air Express Pvt. Ltd., Delhi ( Fleet Owner ) “Upon using 80+ tyres of Indag ZZYL and ZZ
Slide 29: Opportunities
Opportunities Increase in Commercial Vehicle Sales Implementation of GST has especially the MHCV segment narrowed the pricing difference between the organised and the Improving roads and support un-organised infrastructure 01 03 02 04 Reduction in influx/dumping of tyres in Increase in Radialisation
Slide 30: CV Sale Trends
CV Sale Trends CV Production Trends As Industrial Activity Picks up – More Demand for 11,12,405 Commercial Vehicles for Movement of Goods – More Tires worn out – Retreading done on Tires 8,95,448 8,32,649 7,86,692 8,10,253 7,52,022 6,99,035 6,98,298 IIP Growth Rate 4.6% 4.3% 3.3% 4.6% 4.0% 2.8% FY13
Slide 31: Increase in Radialisation
Increase in Radialisation Radialisation in Truck & Bus 48% 49% 50 44% 45 38% 40 36% 33% 35 30 26% 25 21% 18% 20 15 10 5 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Source: ATMA Better Road Conditions No Overloading & Proper Radialisation Requires Faster vehicles, running on Maintenance of Ve
Slide 32: GST - A Game Changer
GST - A Game Changer Retreading was dominated by Unorganised Players There has been a Slow Shift towards Organised Players • Difference in Pricing between Organised and • Quality Precured Tread Unorganised is mainly due – Longer Life of Tire to taxes • As Radial Tires are Quality Pricing • GST imple
Slide 33: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : Indag Rubber Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L74899DL1978PLC009038 CIN: U74140MH2010PTC204285 Mr. Anil Bhardwaj, G.M. (Finance) Mr. Varun Divadkar / Ms. Khushbu Shah anil@indagrubber.com varun.divadkar@sgapl