Pokarna Limited · NSE:POKARNA
Pokarna — Q4 FY15 Earnings Presentation
44 slides from Pokarna's earnings presentation, May 26, 2015
Slide 1: Cover letter to Bombay Stock Exchange
26.05.2015 Department of Corporate Services Bombay Stock Exchange Limited Phiroze Jeejebhoy Towers Dalal Street Mumbai Dear Sir, Ref: Scrip no. 532486/Pokarna Limited Sub: Corporate Presentation. Please find the enclosed Q4 and FY 15 Corporate presentation. This is for your record and dissemination.
Slide 2: Q4 & FY15 Results Presentation
Q4 & FY15 Results Presentation May – 2015 CIN: L14102TG1991PLC013299
Slide 3: Safe Harbour
Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the
Slide 4: Table of Content
Table of Content Year at a glance 4 Q4 & FY15 Financial Performance 6 Company Overview 13 Industry Overview 20 Business Overview 30 Pokarna Engineered Stone Limited 34 About us & Investor Contacts 42 3
Slide 5: Year at a glance
Year at a glance POKARNA LIMITED India’s No.1 granite company
Slide 6: Year at a glance: Key Performance Indicators
Year at a glance Key Performance Indicators Revenue EBITDA PAT Rs.50.88* Earnings Per Share *Inclusive of extraordinary item Rs.3.00 Dividend Per Share 5
Slide 7: Q4 & FY15 Financial Results
Q4& FY15 Financial Results POKARNA LIMITED India’s No.1 granite company
Slide 8: Financial Performance - Consolidated
Financial Performance - Consolidated Rs. crore Particulars Q4 FY15 Q4 FY14 Shift % FY15 FY14 Shift % Revenues 103 67 +53.7 326 231 +41.13 EBITDA 31 13 +138.4 91 47 +93.62 Margin (%) 30.1 19.4 +1070 bps 27.9 20.3 +760.00 bps EBIT 26 8 +225.0 *76 *35 +117.14 PBT 19 0.1 +18900.0 *43 *3 +1333.33 PAT 14
Slide 9: Financial Performance - Standalone
Financial Performance - Standalone Rs. crore Particulars Q4 FY15 Q4 FY14 Shift % FY15 FY14 Shift % Revenues 53 47 +12.8 191 169 +13.0 EBITDA 15 9 +66.7 49 27 +81.5 Margin (%) 28.3 19.1 +920 Bps 25.7 16.0 +970 bps EBIT 13 6 +116.7 38 18 +111.1 PBT* 10 4 +150.0 25 7 +257.1 PAT 6 2 +200.0 16 5 +220.0 E
Slide 10: Segment Wise - Performance
Segment Wise - Performance Q4 Q4 Shift Shift Revenue FY15 FY14 FY15 FY14 % % Consistent demand and Granite 51 45 +133.3 183 155 +18.1 greater usage of raw Rs. Crore Quartz 50 20 +150.0 136 61 +122.9 material from captive Apparel 2 2 +0 7 14 -50.0 quarries to improve profitability of natural stone bu
Slide 11: Chairman’s Comments
Chairman’s Comments Commenting on the performance, Mr. Gautam Chand Jain, Chairman of Pokarna Limited said “FY15 has been an extremely good year for the Company with solid revenue and profitability growth underpinned by strong performance of our core stone businesses. Demand for both the stone produ
Slide 12: Recent Developments
Recent Developments Biggest Product launch at Marmomacc • Unveiled 16 exotic Quantra® Quartz Surfaces, largest in the Company’s history at Marmomacc, 2014 at Verona, Italy • Marmomacc is the world’s biggest annual event for the stone industry • ‘Ganges Collection’ - Inspired by naturally occurring p
Slide 13: Recent Developments
Recent Developments FCCB Retirement • Successfully completes FCCB redemption • Concluded redemption in 4 tranches • USD 3.700 million on December 28, 2012 • USD 3.762 million on May 15, 2013 • USD 2.077 million on May 20, 2013 • USD 2.461 million on December 19, 2014 • Raised zero coupon FCCB aggreg
Slide 14: Company Overview
Company Overview POKARNA LIMITED India’s No.1 granite company
Slide 15: Fast Facts
Pokarna Ltd Founded Corporate Headquarters 1991 Secunderabad, India Business Segments Manufacturing Units Granite, Quartz, Apparel Granite – 2; Apparel – 1 Quartz – 1, Captive Quarries Geographical Presence Customers 50+ Countries National, International & (Granite + Quartz) Global Independent entit
Slide 16: At a Glance
At a Glance……. GRANITE • India’s largest exporter of finished granite • Integrated Facilities - Captive quarries Color Palette Global Presence • Two state-of-the-art manufacturing units (Countries) • Strong presence in Quartz - Pokarna Engineered Stone Ltd (PESL) (100% Subsidiary) • Global Presence
Slide 17: Our Presence
Our Presence Granite Division – Unit - I Survey No.123, Tooprantpet (Village), Choutuppal (Mandal), Nalgonda (District), Telangana State. Granite Division – Unit - II Survey No. 563, 568 & 574, Aliabad Village, Shameerpet, (Mandal), R.R. District, Telangana State. Apparel Division Survey No: 33,39,5
Slide 18: Global Presence
Global Presence Exports (Granite): 50+ countries; Exports (Quartz): 20+ countries 17
Slide 19: Strengths
Strengths • Multi-faceted team of Professionals • Undertaking projects; strong product pipeline • Innovative product pipeline – over 3,500 Quartz shades developed in house Strong • Presence in more R&D than 50 countries (Granite + Quartz) • Captive quarries • Deeper penetration Global Integrated Pre
Slide 20: Marquee Projects
Marquee Projects Prestige Neptune’s Prestige Bella Vista, Reliant NFL Stadium, Courtyard Chennai Houston, USA Radisson Hotel, Flint, Mumbai International Marriott Irvine - USA Michigan, USA Airport (T2) 19
Slide 21: Industry Overview
Industry Overview POKARNA LIMITED India’s No.1 granite company
Slide 22: World of Surfaces
World of Surfaces • Surface Industry broadly comprises of – • High Dependence on global building market – Flooring & Carpet – Construction of new properties – Countertops – Renovation of existing properties – Walls Flooring & Carpet Countertops • World demand for floor covering is • Global demand fo
Slide 23: Countertop Industry - 2014
Countertop Industry - 2014 • Market Size – Global countertop industry generated 2014 Global Countertop Demand Marble ~$81 bn in sales to end consumer in 2014 (based on 2% Quartz Granite average installed cost including installation & other 10% 27% related costs) Laminate 15% • Amongst the surfaces,
Slide 24: Countertops – Poised for Growth
Countertops – Poised for Growth • Road Ahead – – According to latest Freedonia report, Global demand for countertops is projected to grow at 4.3 percent annually through 2018 to 505 million square meters – Pick up in building construction activities particularly in developed areas is expected to be
Slide 25: Granite Industry
Granite Industry • One of the most traditional materials used as countertop • India accounts for over 20% of the world resources in granite • Characteristics – – Hard – Durable – Resistant to damage from heat, stains & scratches • Primary area of operations – Home building & remodeling, especially r
Slide 26: Engineered Stone /Quartz
Engineered Stone /Quartz • One of the hardest and most abundant natural minerals available in the world • Product Composition – – 93% Quartz particles – 7% binding resins and additives • Fastest growing surfaces category (‘99 –’12) – Quadrupled global market share – 15.8% CAGR growth rate • Characte
Slide 27: Price Comparison
Price Comparison Price-High Marble Quartz Granite SS Traditional Contemporary Laminate Marble Price-Low 26
Slide 28: Quartz as a countertop
Quartz as a countertop Quartz penetration in key markets (For the year ended December 31) • Market penetration: 10% market share during 39% 35% 32% 2014 (in terms of sales) 86% 85% • Growing Market Share: Fastest growing 82% surface category (‘99-’14) Increased at 15.7% CAGR Israel Australia 18%
Slide 29: Why Quartz?
Why Quartz? • Superior physical attributes relative to other countertop materials key driver of rapid growth • Available in wide array of colors and provides ease of fabrication • Key Physical attributes • Outlook – – Demand for natural-stone countertops in US market is expected to grow at a CAGR of
Slide 30: Demand drivers
Demand drivers Export Market Domestic Market • Revival in US Housing Sector • Indian real estate sector is one of the fastest growing and globally recognized • Robust demand in the emerging markets sectors • Improvement in residential, non-residential • Ranks Third, for the most LEED (Leadership bui
Slide 31: Business Overview
Business Overview POKARNA LIMITED India’s No.1 granite company
Slide 32: Granite
Granite - Marriot Court Yard - Hyd
Slide 33: Overview
Overview • Pokarna Ltd. – One of the India’s largest exporter of finished granite • Backward Integrated - Sourcing Majority of raw material from captive quarries. • Captive quarries rich in resources – Home to some of the most sought after colors Black Galaxy Steel Grey Coffee Brown Pokarna Green Fl
Slide 34: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities • Manufacturing Process at state of the art integrated facilities • Captive Quarries – Sourcing of raw material from captive mines rich in diversity • Fully automated production line – Cutting edge technology armed with fully computer-controlled high speed p
Slide 35: Pokarna Engineered Stone Limited (Quartz)
Pokarna Engineered Stone Limited (Quartz)
Slide 36: Quartz
Quartz - Avasa Hotels - Hyd
Slide 37: Overview
Overview • Pokarna Engineered Stone Limited (PESL) – wholly owned subsidiary dedicated towards manufacturing Quartz • Raw Material Sourcing – The State of Telangana and Andhra Pradesh are found to be home to some of the best quality quartz • Manufacturing of products using patented Bretonstone® Tech
Slide 38: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities • Fully automated production line • Advantages of Bretonstone® Technology • Best in business technology - Bretonstone® – Final product guarantees an optimum “indoor System of Breton S.p.A, Italy life quality” • Sourcing of Raw Material - Tie-up with some of
Slide 39: Apparels
Apparels POKARNA LIMITED India’s No.1 granite company
Slide 40: Stanza
POKARNA LIMITED Stanza
Slide 41: Overview
Overview • Launched in 2004, Stanza focuses on premium product / lifestyle brand category for men & children • Experienced Management / Promoters – Largest distributor of Raymond Ltd – Successfully turned around two sick units • Range of products include – – Formal & Dress Shirts – Smart Casual & Sp
Slide 42: Recap
Recap • India’s leading exporter of finished granite • Integrated Facilities – Captive Quarries • Licensee of BRETONSTONE® SYSTEM for manufacturing Quartz • Broad Diversified Product Offerings • World Class R&D and Manufacturing Capabilities • Extensive Domestic and Global Marketing & Distribution P
Slide 43: About Us & Investor Contacts
About Us & Investor Contacts POKARNA LIMITED India’s No.1 granite company
Slide 44: About Us
About Us Pokarna Limited, headquartered in Secunderabad, is the largest exporter of finished granite in India with exports to more than 50 countries (incl. Granite & Quartz) globally across Europe, Middle East and predominantly North America. The Company processes its granite at two state-of-the-art