Grp Ltd · NSE:GRPLTD
Grp — H1 FY2023 Earnings Presentation
48 slides from Grp's earnings presentation, Nov 7, 2022
Slide 1: Cover letter to stock exchanges
07.11.2022 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (E), Mumbai - 400 001. Mumbai - 400 051. Scrip code : 509152 Symbol : GRPLTD – Series: EQ Dear Sir / Madam, Sub: Investor Presentation Pursuant
Slide 2: Investor Presentation – November'22
Investor Presentation – November’22 Click Here for GRP LTD’s Corporate Video PRODUCING SUSTAINABLE MATERIALS FOR A SUSTAINABLE ECONOMY
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by GRP 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 securities, and sh
Slide 4: Performance Highlights
Performance Highlights GRP» IMPACT POSITIVE
Slide 5: Consolidated Q2FY23 Performance (YoY)
Consolidated Q2FY23 Performance ( YoY ) (in Rs. Mn) Revenue Gross Profit EBIDTA PAT +16% +30% 1,170 1,007 +10% 646 499 60 +83% 54 62 34 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Revenue / Profitability ▪ Strong growth in Revenue on the back of increased volumes (5%), higher realization
Slide 6: Consolidated H1FY23 Performance (YoY)
Consolidated H1FY23 Performance ( YoY ) (in Rs. Mn) Revenue Gross Profit EBIDTA PAT +31% +41% +26% +173% 2,412 1,297 121 72 1,838 921 96 27 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 Revenue / Profitability ▪ Revenue growth of 31% YoY is from 12% growth in volume and 19% improvement on
Slide 7: Operational Highlights – H1FY23
Operational Highlights – H1FY23 Volume growth in reclaim business is 10% Volume sales growth in non reclaim business is Power Tariff increase of 9% has resulted in 46% , mainly on account of Engineering Plastics significant increase in energy cost Rs/MT by business 16% Operational Highlights Improve
Slide 8: Standalone - Segment Wise Quarterly Performance Trend
Standalone - Segment Wise Quarterly Performance Trend (in Rs. Mn) Reclaim Rubber Revenue Trend Non-Reclaim Revenue Trend +13% 1,128 1,036 1,043 +53% 921 325 130 820 302 319 113 294 109 270 85 78 734 803 724 627 550 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Domestic Export
Slide 9: Standalone - Segmental Financial Highlights
Standalone - Segmental Financial Highlights Reclaim Rubber Non-Reclaim Rubber Particulars (in Rs. Mn)* Q2FY22 Q2FY23 Q2FY22 Q2FY23 Revenue 921 1043 85 130 Raw Material 466 447 46 83 Other Expenses 414 548 26 34 EBIDTA 41 48 13 13 EBIDTA Margin 5% 5% 15% 10% ✓ Revenue from reclaim rubber business inc
Slide 10: Industry highlights
Industry highlights GRP» IMPACT POSITIVE
Slide 11: Global & Indian Tyre Industry Performance
Global & Indian Tyre Industry Performance Global Tyre Market Global Tyre trends Passenger car/Light truck tire, YTD Sep 2022 CY (% change Y-o-Y, in no. of tyres) ✓ Global OE demand in PCLT, which was down 2% YoY in H1, turned upwards in the Q3 (+26%), led by very Western and Central North & Central
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss (Rs. Mn) Q2FY23 Q2FY22 Y-o-Y Q1FY23 Q-o-Q H1FY23 H1FY22 Y-o-Y Revenue 1,170 1,007 16% 1241 -6% 2412 1838 31% Cost of Goods Sold 524 508 591 1115 917 Gross Profit 646 499 30% 651 -1% 1297 921 41% Gross Profit Margin 55.2% 49.5% 52.4% 53.8% 50.1% Empl
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Mn) Sep-22 Mar-22 Liabilities (Rs. Mn) Sep-22 Mar-22 Non-Current Assets 1,073 1,267 Equity Share Capital 13 13 Property, Plant and Equipment 915 1,085 Other Equity 1,381 1,349 Capital work in progress 17 1 Equity attributable to owners of the 1,394 1,362 Right
Slide 14: Capacity addition and capital expenditure
Capacity addition and capital expenditure Build up additional capacity for Reclaim Rubber and Industrial Polymers Polymers Composities Allied Business over the years (Installed capacity in MT) 3,400 72,000 7,800 10,000 2,800 6,200 1,500 3,000 20,000 21,000 3,400 1,500 2,600 4,800 2,400 2021 2022 Tot
Slide 15: Positive and sustainable outlook…
Positive and sustainable outlook… MoEFC has introduced EPR norms for waste tyres 'Extended Producer Responsibility' means responsibility of producer of tyres to ensure environmentally sound management of waste tyres as per the provisions of this regulation • The obligations to recycle waste tyre dri
Slide 16: Awards & Accolades
Awards & Accolades Best Tyre Recycler 2022: RUNNER UP EcoVadis CSR Rating 2017: BRONZE 2019: SILVER 2017 At GRP, we are committed to transitioning from a ‘recycled material company’ to a ‘Sustainable Raw Material Company’. Therefore, embracing the certifications, partnerships required for achieving
Slide 17: Introduction
Introduction GRP» IMPACT POSITIVE
Slide 18: Tyre Graveyards are increasing across the Globe
Tyre Graveyards are increasing across the Globe 7.6 Billion people 1.7 billion new Creating huge in the world tyres produced a year TYRE GRAVEYARDS… 1.4 Billion Over 1 billion waste vehicles on the road tyres generated per year … HUGE OPPORTUNITY 17
Slide 19: …presenting a HUGE OPPORTUNITY
…presenting a HUGE OPPORTUNITY Huge tyre graveyards that can be seen GRP uses end-of-life tyres to Reclaim rubber, Engineering plastics, Die-cut from Space recycle and manufacture products & Polymer Composite Products 18
Slide 20: …to Reduce, Reuse & Recycle
…to Reduce, Reuse & Recycle REDUCE • Manufactured from 100% recycled rubber POLYMER and plastics COMPOSITES • Product is environmental friendly, strong and durable as a substitute to wood & concrete • Custom die forms engineered from end of life CUSTOM truck and bus bias tyres used in application DI
Slide 21: Our Business
Our Business GRP» IMPACT POSITIVE
Slide 22: Believing in possibility of greener tomorrow
Believing in possibility of greener tomorrow 7 Manufacturing Units with 81,200 Export presence in 60+ Countries tons/year capacity across 400+ customers 18% share in Indian Market & 50% of ~1.2 Mn End-of-Life tyres saved from India’s Export in reclaim rubber reaching landfills Every Year Supplies to
Slide 23: Gearing up Fifth Decade & Counting
Gearing up Fifth Decade & Counting Gujarat Reclaim and 1st Unit at Got its first ever Rubber Products Ankleshwar export order Limited incorporated 1974 1978 1984 2011 2006 1997 4th unit established 3rd Unit established Diversified in at Solapur at Panoli Custom Die Forms 2012 2014 2017 2020 2022 5th
Slide 24: Serving the needs of Global Mobility Industry
Serving the needs of Global Mobility Industry 60+ 400+ Countries Customers Distributors 400+ Panoli Indore across 20 Vendors countries Ankleshwar Mumbai Solapur Headquarters Reclaim Rubber 7 ~1060 C-DF Industrial Polymers Manufacturing R&D Centre Units Employees >75% customers belong to Transportati
Slide 25: Research & Development Capabilities
Research & Development Capabilities Product Process Application ▪ Developing New ▪ Continuous ▪ Automation of Application across Development of New Processes diversified Industries Products ▪ Environment friendly ▪ Products designed ▪ Expansion in New – Zero Discharge based on Customer Product Categ
Slide 26: Reclaim Rubber
Diversified Product Applications across Business Verticals Tyre Application Inner Liner Inner Tubes Tyre Side Walls Tyre Piles Tyre Treads & Retreads Reclaim Rubber Non - Tyre Application Conveyor Belts Adhesives Automotive Roofing Footwear Profiles Moulded Goods Matting 25
Slide 27: …across Business Verticals
…across Business Verticals Industrial Polymers Custom Die Forms Industry Applications Applications Consumer Automotive Link Mats Door Mats Electrical & Electronics Industrial Industrial Mats Dock Bumpers Reprocessed Nylon Reprocessed Nylon Modified Nylon Dock Bumpers Door Mats Harvestor Pads Glass F
Slide 28: …across Business Verticals
…across Business Verticals Polymer Composites Industry Applications Commercial transportation Livestock transportation Military and Government Oil fields Transportation floor beds Oil rigs set back areas Air drop pallets 27
Slide 29: Reputed Tyre and Non Tyre Customers
Reputed Tyre and Non Tyre Customers The Brand Names mentioned are the property of their respective owners and are used here for identification purpose only.28
Slide 30: Global Partnerships for Business Growth
Global Partnerships for Business Growth Reclaim Rubber Polymer Composites Successful in setting up a Contract Manufacturing with an reclaim rubber unit in American company since 2017 to Malaysia and handed over to manufacture polymer composite the local partner products in India Custom Die Form Cont
Slide 31: Distinguished Board of Directors
Distinguished Board of Directors Rajendra Gandhi Harsh Gandhi Hemal Gandhi Rajeev Pandia Managing Director Joint Managing Director Executive Director Independent Director No. of Years of Experience : More No. of Years of Experience : 16 years No. of Years of Experience : More than No. of Years of Ex
Slide 32: Distinguished Board of Directors
Distinguished Board of Directors Vivek Asrani Anshul Mittal Saurabh Shah Independent Director Independent Director Independent Director No. of Years of Experience : More than No. of Years of Experience : More than No. of Years of Experience : More than 37 years in the business of industrial 20 years
Slide 33: with Experienced Management Team
with Experienced Management Team Virendra Rathod President – Marketing Shilpa Mehta Sanjeeb Lahri and Business Kush Giramkar Chief Financial Officer Head HR & Ganesh Ghangurde Development Operations Head Reclaim Administration Rubber Head Chief Compliance Officer Procurement & Logistics • Chemical E
Slide 34: CSR – Impact Positive Initiatives
CSR – Impact Positive Initiatives At GRP, CSR contributes in shaping the ‘How’ and the ‘Why’ of almost every activity we undertake. Over the years, we are happy to have played a role in giving back to the community through our products as well as our CSR activities. We are grateful to have witnessed
Slide 35: Sustainable Development Goals (Adopted By GRP)
Sustainable Development Goals (Adopted By GRP) GRP believes in ‘giving back to the society and the planet’, it has shown a high level of engagement across following six out of the seventeen SDGs adopted by all UN member states to build a better world for people and planet Yoga sessions Educational d
Slide 36: Business Verticals
Business Verticals GRP» IMPACT POSITIVE
Slide 37: Manufacturer of sustainable products through 4 Business Verticals
…Manufacturer of sustainable products through 4 Business Verticals 36
Slide 38: Reclaim Rubber - Industry Leading Technology
Reclaim Rubber - Industry Leading Technology 1ST Company in India to design, fabricate and install an entire plant & machinery for manufacture of reclaim rubber from complete indigenous components VALUE PROPOSITION Strong focus on innovation and R & D with DSIR approved lab, 1st company in India to
Slide 39: Reclaim Rubber – Cost Effective Alternative
Reclaim Rubber – Cost Effective Alternative PRODUCT OFFERING NATURAL RUBBER RECLAIM • Whole Tyre Reclaim • Ultra High & High Tensile Reclaim • Natural Tube Reclaim SYNTHETIC RUBBER RECLAIM • Butyl & Chlorobutyl Reclaim • EPDM Reclaim SPECIALITY RUBBER RECLAIM • NBR Polycoat APPLICATIONS ▪ Tyres ▪ Wa
Slide 40: Industrial Polymer – Valuable Engineering Plastic
Industrial Polymer – Valuable Engineering Plastic INDUSTRY LEADING TECHNOLOGY TARGET MARKET & APPLICATIONS Fasteners, Clips, Bushes, Plugs, 1st Indian company to commercialize the concept of Cable Ties, Sleeves, Main fold recovery and reuse of polyamide from end-of-life AUTOMOTIVE Developed in-house
Slide 41: Custom Die Forms – Diverse Product Portfolio
Custom Die Forms – Diverse Product Portfolio PRODUCTS Converts end-of-life tyres to design products used for civil & agricultural applications Custom Die Forms are meant to absorb vibrations in heavy equipment and for insulation against sound GRP – CDF produces these products in collaboration with l
Slide 42: Polymer Composite
Polymer Composite Polymer Composite Products ▪ GRP is the exclusive manufacturer to a US based company for supply of composite products Plastics Additive ▪ The composite products are manufactured from 100% recycled rubber and plastics Rubber ▪ The product is environmentally friendly, strong and dura
Slide 43: Growth Drivers
Growth Drivers GRP» IMPACT POSITIVE
Slide 44: We have built Sustainable Business
We have built Sustainable Business Brand GRP carries with it Upgradation of Process and Cost Effective by replacing 7 Manufacturing Units, 20 Trust of 4 Decades Products through innovation Virgin Rubber Polymer Distributors and 400 Vendors In-house Manufacturing Brand GRP Cost Technology & Effective
Slide 45: Demand drivers for Reclaim Rubber
Demand drivers for Reclaim Rubber Global Reclaim Rubber Demand Global Reclaim Rubber market is expected to reach USD 6.32 billion by 2025 Global Demand Drivers Global Reclaim Rubber Demand (Kilo Tonnes) ➢ Growing awareness regarding COST - EFFECTIVE and ECO - FRIENDLY alternatives for virgin rubber
Slide 46: With strategic shift towards increasing Reclaim Rubber
With strategic shift towards increasing Reclaim Rubber To Reduce, Reuse and Recycle the use of fossil fuels and strategic shift towards Reclaim Rubber. By 2050 companies envisages higher use of Recycled Rubber Source: Bridgestone Corporate Site 45
Slide 47: By major tyre manufacturing companies
By major tyre manufacturing companies Break-Up of Recycled Raw Materials by Type – Our Eco & Safety strategy starts from raw materials We push innovation to FY22 increase bio-based and recycled materials while decreasing fossils A firm believer that innovation should benefit the environment, Micheli
Slide 48: Contact Us
Contact Us Company : Investor Relations Advisors : CIN: L25191GJ1974PLC002555 CIN: U74140MH2010PTC204285 Mr. Ganesh Ghangurde Mr. Abhishek Shah / Mr. Vatsal Shah Chief Compliance Officer abhishek.shah@sgapl.net / vatsal.shah@sgapl.net ganesh.ghangurde@grpweb.com +91 99306 51660 / +91 88796 59884 www