Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q4 FY2020 Earnings Presentation
41 slides from Apollo Pipes's earnings presentation, May 2, 2020
Slide 1: Cover letter to stock exchanges: Result Presentation
May 2, 2020 The National Stock Exchange of India Limited Department of Corporate Services/Listing Exchange Plaza”, 5th Floor, BSE Limited Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex,Bandra (East), Dalal Street, Fort, MUMBAI – 400 051 MUMBAI – 400 001 NSE Symbol: APOLLOPIPE
Slide 2: Apollo Pipes Ltd. Q4 & FY20 Earnings Presentation
APOLLO PIPES LTD. Q4 & FY20 Earnings Presentation May 2, 2020
Slide 3: Safe Harbour
2 Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend",
Slide 4: Table of Content
3 Table of Content Apollo Pipes Overview 1 Growth Levers 2 Macro-growth Drivers 3 Future Outlook 4 5 Year Financial highlights 5 Q4 & FY20 Highlights 6
Slide 5: Company Overview
4 Company Overview
Slide 6: Apollo Pipes at a glance
5 Apollo Pipes at a glance leading PVC pipe manufacturers in Capacity* as on 31st March India 2020 Distributors Dealers/ Manufacturing Plants Products Retailers 5-year Volume 5-year Revenues 5-year PAT CAGR CAGR CAGR * Includes acquired 12,000 MTPA capacity unit in Bengaluru
Slide 7: Presence across Sectors
6 Presence across Sectors Agriculture Segment Water Management Segment •Casing pipes •Drip irrigation & •Hot & cold potable water distribution & •Sprinkler system transportation •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils Construction
Slide 8: Product Portfolio - Diversified Basket of 1,000+ Products
7 Product Portfolio - Diversified Basket of 1,000+ Products PIPES uPVC PIPES uPVC COLUMN PIPES DRAINAGE uPVC PIPING SYSTEM uPVC RING FIT PIPES uPVC RIBBED SCREEN PIPES PIPES AND FITTINGS FITTINGS uPVC PLUMBING PIPING SYSTEM uPVC AGRI FITTINGS PIPES cPVC PIPING SYSTEM FITTINGS OPTICAL FIBRE PIPES HDP
Slide 9: Success Milestones
8 Success Milestones • Started manufacturing • Concluded promoter uPVC Plumbing fittings infusion of Rs. 202 crore with 180 MTPA through issuance of Equity capacity Shares and fully • Commenced convertible warrants on • Commenced PVC manufacturing cPVC • Largest plastic piping Preferential basis pip
Slide 10: Experienced Management Team
9 Experienced Management Team Mr. Sameer Gupta Mr. Sanjay Gupta Managing Director Chairman B.Com Honors from Delhi University (SRCC) Mr. Sanjay Gupta is the second generation of the entrepreneurial family Mr. Sameer Gupta joined the family business in the year 2000 and Holds a rich experience of ove
Slide 11: Strong governance and Management
10 Strong governance and Management Board of Directors Promoter Directors Non Executive Directors Independent Directors Mr. Sameer Gupta Mr. Sanjay Gupta Mr. Pradeep Kumar Jain Managing Director Chairman Independent Director Mr. Saket Agarwal Ms. Neeru Abrol Director Independent Director Mr. Abhilas
Slide 12: Our Environment, Social, Governance and Safety Policy
11 Our Environment, Social, Governance and Safety Policy • Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes − Installed rooftop solar plant at Dadri for optimum utilisation of energy − Evaluating opportunities to install rooftop solar plants at Ahmedabad and Benga
Slide 13: Growth Levers
12 GROWTH LEVERS
Slide 14: Key Business Strengths
13 Key Business Strengths Catering to Strong and Advanced Multiple and Proven expertise multiple sectors – highly equipment & Expanding efficient product in complex Agriculture, Water experienced technology – cost footprint in India offerings – projects Management, Management efficient 1,000+ produc
Slide 15: Strengthening distribution network across India
14 Strengthening distribution network across India to augment presence and improve market penetration Enjoys a dominant and Delhi/NCR leading presence Head Office in North India Dadri (Manufacturing Unit-I) Extensive distribution Tapping newer network markets to reduce significantly inventory cost f
Slide 16: Diversified Product Portfolio aiming for 2,000+ products
15 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri and Ahmedabad • Emphasis on innovation: One of the first companies to launch “Super Lock S
Slide 17: Capacity Expansion to achieve 90,000 MTPA in FY21
16 Capacity Expansion to aid long-term growth plan – to achieve 90,000 MTPA in FY21 Available capacity* of 84,000 MTPA Aim to deliver a healthy Primary focus to improve 25%+ CAGR over the next 3 utilization at Dadri, years Ahmedabad and Bengaluru Establishing a manufacturing Undertaking brownfield l
Slide 18: Leverage the 'APL Apollo' brand reach and recall
17 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth The ‘APL Apollo’ Brand Edge enables better reach and product competitiveness Branding Activities – Sports sponsorship Principal Sponsor of Pro Kabbaddi League IPL TVC – Principal sponsor of Delhi Capitals Branding
Slide 19: Macro Growth Drivers
18 MACRO GROWTH DRIVERS
Slide 20: PVC pipe industry
19 PVC pipe industry The Indian PVC pipes and fittings market expected to DEMAND SEGMENTATION – DOMESTIC INDUSTRY register 15% CAGR during FY18 - FY26 Others, 5% Sewerage, 12% • The domestic plastic pipes industry size at ~Rs. 315B Irrigation, 45% • Organized players account for ~60% market share •
Slide 21: At the Forefront of multiple sector trends
20 At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging • Improving irrigation schemes distribution requirements pipelines and installation of for farmers • Water Management, W
Slide 22: Future Outlook
21 Future Outlook
Slide 23: Focus Areas for FY20 & FY21
22 Focus Areas for FY20 & FY21 Penetrate and establish footprint Strengthen foothold in existing into neighboring markets in Central markets of North and Western India and Eastern India Undertake a phase-wise capacity expansion at the existing facilities Improve utilization at the existing over the
Slide 24: 5-Year Financial Highlights
23 5-Year Financial Highlights
Slide 25: Financial Trend
24 Financial Trend CAGR – 19% CAGR – 24% Total Revenues (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 418 14% 14% 374 301 13% 13% 209 243 12% 24 32 41 51 56 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 CAGR – 29% CAGR – 14% PAT (Rs. Cr) Volume (MTPA) 28 44,692 22 24 39,823 33,
Slide 26: Financial Trend
25 Financial Trend ROCE (%) ROE (%) 18.0 19.0 28.0 26.0 16.0 15.0 24.0 24.0 20.0 11.7 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 Total debt (Rs. Cr) Debt to Equity (x) 30 34 20 0.6 0.3 0.2 -35 -38 -0.1 -0.2 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2
Slide 27: 5-year Financial Track-record
26 5-year Financial Track-record Particulars FY2016 FY2017 FY2018 FY2019 FY2020 Net Worth (Rs. Cr) 55.0 91.4 113.3 229.8 306.5 Capex for the year (Rs. Cr) 12.2 9.1 17.1 48.2 59.3 Inventory (Rs. Cr) 13.7 22.7 44.3 52.3 82.4 Inventory Days 24 34 55 53 74 Debtors (Rs. Cr) 29.5 34.2 38.5 35.8 59.4 Debto
Slide 28: Operational & Financial Highlights Q4 & FY20
27 Operational & Financial Highlights Q4 & FY20
Slide 29: Q4 FY20 at a glance
28 Q4 FY20 at a glance Distributors Products Capacity* as on 31st March 2020 Dealers Volume EBITDA PAT Net Cash 1% yoy increase -1% YoY decrease 16% yoy increase Net WC days Operating cash flows Continuous focus on ROCE in FY20 improving WC cycle • Includes acquired 12,000 MTPA capacity unit of Kisa
Slide 30: Key Developments
29 Key Developments • Despite a challenging environment, Apollo Pipes reported steady volumes at 9,721 MTPA in Q4 FY20 as against 9,613 MTPA in Q4FY19 • Volumes for the quarter, especially in the month of March were impacted due to the plant closures and suspension of logistics activities caused by
Slide 31: Key Developments
30 Key Developments • The Company had allotted 2,485,000 fully convertible warrants, in addition to 950,000 equity shares, on preferential basis to Promoters and promoter group in October 2018 at a price of ₹590 per share, which were to be converted into equity within 18 months from the date of allo
Slide 32: Key Developments
31 Key Developments • In light of the Covid-19 pandemic and in compliance with government advisories and directives issued in this regard, the Company had temporarily suspended manufacturing operations at its facilities across India from March 22, 2020 till April 23, 2020. The Company, however, purs
Slide 33: Key Financial & Operational Parameters
32 Key Financial & Operational Parameters Product-wise Revenue Breakup Product Revenue (excluding Others segment) Break-up – FY20 Particulars Y-o-Y Y-o-Y Q4 FY20 Q4 FY19 FY20 FY19 (Rs. crore) Shift Shift uPVC Pipes 56.4 61.9 -9% 277.4 269.1 3% Fittings, 16% cPVC Pipes 6.6 4.7 40% 21.4 13.5 59% HDPE
Slide 34: Abridged P&L Statement
33 Abridged P&L Statement Particulars (Rs. crore) Q4 FY20 Q4 FY19 Y-o-Y Shift FY20 FY19 Y-o-Y Shift Total Income From Operations (Net) 94.1 89.4 5% 408.0 361.8 13% Total Expenditure Raw Material expenses 65.7 64.4 2% 288.8 262.5 10% Employee benefits expense 6.9 5.4 29% 26.4 20.7 27% Other expenses
Slide 35: Balance Sheet
34 Balance Sheet As at 31st As at 31st As at 31st As at 31st Particulars (Rs. Crore) Particulars (Rs. Crore) March 2020 March 2019 March 2020 March 2019 I. ASSETS EQUITY AND LIABILITIES Non-current assets Equity (a) Property, Plant and Equipment 123.0 94.9 (a) Equity Share Capital 13.1 12.0 (b) Capi
Slide 36: Financial Overview and Discussion (YoY)
35 Financial Overview and Discussion (YoY) Income From Operations during FY20 stood at Rs. 408.0 crore, higher by 13% Y-o-Y; Income from Operations in Q4 higher by 5% at Rs. 94.1 crore • The Company has delivered a steady operational and financial performance during Q4 & FY20. Volumes for the quarte
Slide 37: Management's Message
36 Management’s Message “We are currently facing an unparalleled disruption due to the COVID-19 pandemic. Interrupted supply chains, halted production and lock-downs across India have significantly impacted our ability to conduct business. Our primary focus during these challenging times was towards
Slide 38: Conclusion
37 Conclusion
Slide 39: Key Takeaways
38 Key Takeaways Aiming capacity upgradation to the tune of 90,000 MTPA Target to achieve 25%+ sales volume growth CAGR over next three years Value-added product categories to provide impetus to volumes and profitability Increased market presence and improving distributor network to address demand a
Slide 40: About Us
39 About Us Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipes hold
Slide 41: Thank You
Thank You Gx: SYSTEMS