Hi-tech Pipes Ltd. · NSE:HITECH
Hi-tech Pipes — FY2020 Earnings Presentation
31 slides from Hi-tech Pipes's earnings presentation, Jun 27, 2020
Slide 1: Result Update Presentation cover letter to NSE
= @ +91-11-48440050 Fli- eo : | Mi info@hitechpipes.in —=—PIPES = & hitechpipes.in TO; 2'7-June-2020 National Stock Exchange of India Limited Exchange Plaza, Plot No.C/1, G Block, Bandra Kurla Complex (E), Mumbai-40005 1, Symbol: HITECH Subject: Result Update Presentation Dear Sir/ Madam, In referen
Slide 2: Hi-Tech Pipes Limited FY 2019-20
Hi-TECH PIPES LIMITED FY 2019-20
Slide 3: Forward looking statements disclaimer
Certain statements in this report concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risk and uncertainties relating to these
Slide 4: Power of Positive Leadership
Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sikanderabad business Power of Power of Power of Power of Power of Positive Strong Opportunity Return Trust Leadership Brand S
Slide 5: Leadership team
Ajay Kumar Bansal Started Manufacturing of Acquisition of ‘Lloyd’ Hollow Sections at Sikanderabad Anish Bansal, Director consumer durable business P.K. Saxena, xBanker Vivek Goyal, FCA Neerja Aggarwal,xBanker ,Advocate Started Manufacturing of Cold Rolled Coils & * Divestment of ‘Sylvania’ Strips an
Slide 6: PAN India presence, manufacturing and experience
PAN India presence Direct marketing presence in over 17 States with more then 350 Distributors. PAN India Manufacturing Four strategically located manufacturing plant with large scale manufacturing with high standards of quality assurance Long Experience Incorporated in 1985 & having exp
Slide 7: Manufacturing plants and installed capacity
• Manufacturing plant Sikandrabad, Uttar • Manufacturing unit in Hindupur Pradesh (UP) • Installed capacity of 1,20,000 mtpa • Installed capacity of 2,55,000* mtpa • Manufacturing unit in Sanand (Gujarat) • Installed capacity of 1,25,000 mtpa
Slide 8: Company milestones timeline
Installation of Hot Commenced Operations at Dipped Galvanised Hindupur(A.P.) Facility Modernisation of Cold Started production of Rolling Mill at Sikandrabad Highway Crash Barriers Plant Started production of Commissioning ERW Pipe Hollow sections and manufacturing at Hindupur Solar Moun
Slide 9: Government infrastructure and demand drivers
Uddan - 100 New Airports in next 3-5 years Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sikanderabad Nal Se Jal – 3.5 Lacs Crore spending by Government by 2024 business Ho
Slide 10: Steel pipes and tubes, cold rolled coils and strips applications
Bore well & Home Poly Houses Started Appliances Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Railings & Sikanderabad business Windows Transformers Cold Rolled Coils & Strips & Mot
Slide 11: Global and India steel and pipe scenario
1942 Steel 300 40 2000 Steel 225 300 1800 1712 35 Pipe Figures Pipe 250 230 1600 175 30 are in 1400 Million Global Scenario INDIA - Scenario 1232 200 25 Metric 1200 125 20 Tons 1000 208 150 140 130 33 800 141 75 15 100 24 600 105 10 400 25 50 13 10 5 200 0 0 0 -25 2004 2018 2030 E FY 18 FY 21 FY 26
Slide 12: Started manufacturing of ERW pipes
Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sikanderabad business Started Manufacturing * Launched Fans & of Cold Rolled Coils & * Divestment of ‘Sylvania’ Lighting Strip
Slide 13: Product launches timeline
2012: Hollow Pipes 2016: GP Pipes 2017 : GI Pipes in South 2015: Metal Beam Crash Guard 2019 : CR Coils 1250mm
Slide 14: Vision to add capacity for value added products
Started Master Started Stroke of Manufacturing Manufacturing of 240 Hollow Sections at 140 ERW Pipes at 60 Sikanderabad Sikanderabad 2018 2020 2022 Annealing Slitting CR Strips Vision Started Manufacturing * Launched Fans & to add * Divestment of ‘Sylvania’ of Cold Rolled Coils & Lighting capacity f
Slide 15: CR mill with AGC system and high margin products
Strong Network of Distributors & Dealers in North India Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable of ‘Sylvania’ Installation of latest CRSikanderabad Sikanderabad Mill with AGC system from USA wi
Slide 16: Power of Strong Brand
Power of Strong Brand Jal Shakti Customer’s Meet @ Davangere, Karnatka Customer’s Meet @ Bangalore Customer’s Meet @ Salem Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sik
Slide 17: Customer and fabricator meets
Customer’s Meet @ Daman Poly House Fabricator’s Meet Participated in National Horticulture Fair Started Started @ Bangalore Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sikanderabad busin
Slide 18: Started manufacturing of ERW pipes
Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sikanderabad business Started Manufacturing * Launched Fans & of Cold Rolled Coils & * Divestment of ‘Sylvania’ Lighting Strip
Slide 19: Value for Money
Started Started Annual MoU Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired with global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad ofDistributors ‘Sylvania’ Sikanderabad business Increasing Continuously satisfaction expanding level of end Distribution con
Slide 20: Shareholding Pattern as on 31.03.2020
Shareholding Pattern As on 31.03.2020 Promoters- single business focus Transparent and detailed communication to Foreign Financial shareholders Portfolio Institutions/ Investors Banks Committed to high standards of corporate and 1% 0% shareholder governance Individuls Non institution Well ex
Slide 21: Certificates and awards
DNV BUSINESS ASSURANCE CERTIFICATE OF RECOGNITION EXEMPLARY GROWTH & AMONG TOP 100 SMEs CERTIFICATE MINISTRY OF COMMERCE INNOVATION AWARD SKOCH GROUP INDUSTRY SUPER SME BEST COMPANY OF THE YEAR TOP PERFORMER AWARD AWARD PERFORMANCE EXCELLENCE AWARD FROM SAIL IBC CORPORATION, USA MINISRY OF STEEL, GO
Slide 22: Our Esteemed Customers
Our Esteemed Customers on és, pet ttc ncn nnn nnn nn nnn nnn nn nnn nn nnn nn nnn nnn nnn nnn nn nnn nn nnn nnn nnn nnn nn nnn nena, “ ‘s Qe ‘ H - ‘ 7 RELIANCE Reliance = BSAMARIES (=) BAJAJ I acc ae GAR | ane ” . airtel | wadidigi ® LARSEN & TOUBRO NTPC «Je Fr TATA &5 — puniewonsrepatmen si“ ‘C‘<s)
Slide 23: Started manufacturing of ERW pipes
Started Started Manufacturing of Manufacturing of Acquisition of ‘Lloyd’ Acquired global business ERW Pipes at Hollow Sections at consumer durable Sikanderabad of ‘Sylvania’ Sikanderabad business * Launched Fans & * Divestment of ‘Sylvania’ Lighting * Focus on domestic * Set up plants for expansion
Slide 24: Financials
FINANCIALS PIPES
Slide 25: Q4 and FY20 financial highlights
Sales Volume (MT) Net Revenues (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) 380.4 300.0 8.34 80050 69660 20.64 4.21 14.48 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 5.4% 4.8% 2.19% 1.40% Margin as % of Net Revenue 74.95 27.53 59.23 20.39 1360 283200 1210 269100 FY19 FY20 FY19
Slide 26: Consolidated profit and loss Q4 FY20
Rs. in Cr Q4 FY20 Q4 FY19 Y-o-Y % Q3 FY20 Q-o-Q % FY20 FY19 Y-o-Y % Total Income from 299.78 380.4 (21.2%) 311.0 (3.6 %) 1209.6 1360.4 Operations (11 %) Raw Materials 271.95 346.32 280.75 1095.5 1236.4 Employee Cost 5.32 3.15 4.08 17.78 13.7 Other Cost 8.03 10.29 11.04 37.15 35.6 Total Expenditure 2
Slide 27: Balance sheet
As on As on As on As on Rs. in Cr st st Rs. in Cr st st 31 Mar – 20 31 Mar – 19 31 Mar – 20 31 Mar – 19 Equity 173.60 146.7 Non-current Assets 209.02 177.4 Equity Share Capital 10.93 10.7 Property, Plant and Equipment 172.97 169.1 Other Equity 162.6 136.1 Capital Work in Progress 29.40 3.7 Liabiliti
Slide 28: Volume, revenue, EBITDA and PAT trends
Volume MT (in 000’s) Revenue (Rs. Cr) 1360 500 1210 Capacity 425 1015.7 300 300 283.0 240 269.0 226.0 637.4 180 503.9 137.8 158.4 458.4 100.1 FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 EBITDA (Rs. Cr) / Margin (%) PAT (Rs. Cr) / Margin (%) 80 12% 70 2.10% 2.00% 60 6.3% 6.3% 8% 1.60%
Slide 29: ROA, RoCE and RoE
ROA (%) RoCE (%) 5.4% 4.7% 19.1% 18.9% 3.6% 14.7% 15.2% 15.8% 2.9% 11.9% 12.3% 2.3% 2.3% 1.2% FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY14 FY15 FY16 FY17 FY18 FY19 FY20 RoE (%) 22.1% 20.8% 14.5% 11.9% 11.4% 12.7% 7.8% FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 30: Annual profit and loss FY20 vs FY19
Rs. in Cr FY20 FY19 Y-o-Y % Sales Volume ( in MT ) 283200 269100 5.25 % Total Income from Operations 1209.6 1360.4 -11.08 % Raw Materials 1095.47 1236.4 Employee Cost 17.8 13.7 Other Cost 37.15 35.6 Total Expenditure 1150.42 1285.7 EBITDA 59.2 74.8 -20.86 % Other Income 1.3 1.4 Depreciation 6.5 5.3
Slide 31: Covid-19
Covid- 19 Q4-FY 20 has been impacted by outbreak of Covid 19 Corona Virus. The outbreak of COVID-19 globally and resultant lockdown in many countries, including from 22th March 2020 in India, has had impact on the business of the Company. Consequently lower production for its steel products has impa