Greenpanel Industries Ltd · NSE:GREENPANEL
Greenpanel Industries — Q3 FY2023 Earnings Presentation
61 slides from Greenpanel Industries's earnings presentation, Jan 30, 2023
Slide 1: Presentation on Q3 and nine months FY2023 results
GPIL/2022-2023 January 30, 2023 The Manager The Manager BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E), Mumbai-400001 Mumbai - 400051 Scrip Code: 542857 Symbol - GREENPANEL Dea
Slide 2: Performance in Q3 & 9M FY2023
v Performance in Q3 & 9M FY2023 1
Slide 3: Disclaimer
v Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 4: Index
INDEX Contents Page No. Snapshot of our Company 4 Overview by MD & CEO 5 Improving Brand Visibility 8 Our Performance, Q3 FY 2023 12 Greenpanel Brand’s Financial Health 21 The Journey so far 27 Financial Evolution 36 Capital Structure 42 MDF Business 48 Ply Business 54 Achieved so far 58 3
Slide 5: A snapshot of our company
v A snapshot of our company 1 2 3 Brand vision: We envision to About us: Greenpanel is a Management: Greenpanel is led by maintain our Leadership prominent wood panel player Mr. Shiv Prakash Mittal, Executive Position in the Panel Industry in India with a national Chairman, and Mr. Shobhan Mittal, a
Slide 6: Overview by MD & CEO
v Part one Overview by MD & CEO 5
Slide 7: MD & CEO quote on Q3 performance
v “MDF Export Volumes rose by 24% while domestic volumes fell by 7%. MDF EBITDA Margins (excluding forex loss / gain) were lower by 353 bps q-o-q and 452 bps y-o-y at 25.6% due to fall in domestic volumes and price cuts taken in export realisations.” “ PAT was impacted by Forex Loss of Rs 17.29 cror
Slide 8: Overview by MD & CEO
Overview by MD & CEO v “MDF sales volumes fell by 2%. MDF Ebitda Margins (excluding forex loss / gain) were “Cash Generated ₹ 94 crores during Q3. Net down by 353 bps q-o-q at 25.6% due to fall debt reduced to negative ₹ 145 crores as on in domestic volumes and reduction in export 31st December 2022
Slide 9: Increasing Brand Visibility
v Part Two Increasing Brand Visibility 8
Slide 10: Greenpanel Indian Premier League partners
5 GREENPANEL’ INDIAN ~“ PREMIER LEAGUE
Slide 11: Greenpanel partners with Delhi Capitals as principal sponsor
v GREENPANEL partners with Delhi Capitals as PRINCIPAL SPONSOR (chest) for 3 Years 10
Slide 12: Advantages of the sponsorship partnership
v This Partnership will Give us the following Advantages: • Increase and Enhance our Brand’s Visibility • Positive Brand Imagery rub-off's through Various Aspects visible During IPL • ON AIR Visibility • ON GROUND Perimeter Boards • Brand Zone in the Stadium • Branding visible at all 7 Delhi Matches
Slide 13: Our performance, Q3 FY2023
v Part Three Our performance, Q3 FY2023 12
Slide 14: Our financial performance in brief
Our financial performance in brief 112.09 417.43 419.10 0.40% 96.50 Q3 FY2022 Q3 FY2023 EBITDA - adjusted for FOREX Loss/Gain (₹ Crores) 63.07 37.53 Q3 FY2022 Q3 FY2023 Q3 FY2022 Q3 FY2023 Net Sales Growth (₹ Crores) PAT (₹ Crores) 13
Slide 15: Our financial performance in brief: RoCE
Our financial performance in brief 21.6 32.0 17.2 23.4 Q3 FY2022 Q3 FY2023 Q3 FY2022 Q3 FY2023 RoCE - Pre Tax (%) RoCE - Post Tax(%) 14
Slide 16: Reduction in net debt
v REDUCTION IN NET DEBT Rs Crores PARTICULARS Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Q4 FY 2022 Q3 FY 2022 GROSS DEBT 194.83 201.65 208.21 282.65 280.48 BANK BALANCES 339.50 260.38 225.44 222.42 136.87 NET DEBT (-) 144.67 (-) 58.73 (-) 17.23 60.23 143.61 15 15
Slide 17: Financial Highlights Q3 FY2023 vs Q3 FY2022
v Financial Highlights Q3 FY2023 v/s Q3 FY2022 Key Ratios (%) Q3 FY2023 Q3 FY2022 Gross Margin 58.20 57.00 EBITDA Margin (Excl Forex Loss / Gain) 23.00 26.90 EBIT Margin (Excl Forex Loss / Gain) 18.70 22.40 Net Margin 9.00 15.10 Sales Promotion / Net Sales 1.00 1.20 Employee Expenses / Net Sales 8.4
Slide 18: Segment Performance - MDF (Quarter)
Segment Performance - MDF (Quarter) Particulars Q3 FY2023 Q3 FY2022 Growth Net Sales (₹ Crores) 361.57 350.40 3.20% EBITDA Margin (Excl Forex) 25.60% 30.10% EBIT Margin (Excl Forex) 20.80% 25.20% Annual Capacity (CBM) 6,60,000 5,40,000 Production (CBM) 1,25,188 1,15,652 8.20% Sales Volume (CBM) 1,18
Slide 19: Segment Performance - MDF (9 Months)
Segment Performance - MDF (9 Months) Particulars 9M FY 2023 9M FY 2022 Growth Net Sales (₹ Crores) 1148.57 940.00 22.20% EBITDA Margin (Excl Forex) 29.10% 29.10% EBIT Margin (Excl Forex) 24.60% 23.70% Annual Capacity (CBM) 6,60,000 5,40,000 Production (CBM) 3,81,040 3,66,617 3.90% Sales Volume (CBM)
Slide 20: Segment Performance - Plywood (Quarter)
Segment Performance - Plywood (Quarter) Particulars Q3 FY2023 Q3 FY2022 Growth Net Sales (₹ Crores) 57.53 67.04 -14.20% EBITDA Margin 7.00% 9.90% EBIT Margin 5.20% 8.00% Annual Capacity (Mn Sqm) 10.50 10.50 Production (Mn Sqm) 1.73 2.33 -25.80% Sales Volume (Mn Sqm) 1.99 2.47 -19.40% Capacity Utilis
Slide 21: Segment Performance - Plywood (9 Months)
Segment Performance - Plywood (9 Months) Particulars 9M FY 2023 9M FY 2022 Growth Net Sales (₹ Crores) 189.41 185.48 2.10% EBITDA Margin 8.80% 11.60% EBIT Margin 7.10% 9.50% Annual Capacity (Mn Sqm) 10.50 10.50 Production (Mn Sqm) 5.87 6.36 -7.70% Sales Volume (Mn Sqm) 6.55 6.83 -4.10% Capacity Util
Slide 22: Greenpanel Brand's Financial Health
v Part Four Greenpanel Brand’s Financial Health Brand acceptance has supported sustained growth 21
Slide 23: We strengthened realisations across both product lines
v We strengthened realisations across both product lines MDF 5.4 %, Growth in 30,585 ₹ / cubic meter, average MDF realisations Average realization, Q3 FY2023 Plywood 29,025 ₹ / cubic meter, 6.3 289 272 %, Growth in Average realization, ₹ / square meter, ₹ / square meter, average Average realization,
Slide 24: Gross Margins were up
Gross Margins were up Gross Margins improved by 115 We continued to basis points from remain principally an 57% to 58.2%. Ebitda MDF-driven company margins, excluding forex and other income, were impacted due to 86 % of revenues drive increased imports from MDF, Q3 FY2023 and slowdown in US & Europe
Slide 25: We maintained working capital hygiene
We maintained working capital hygiene Working capital Inventory Receivables cycle 23 38 7 Days, receivables Days, Total Inventory Days, working capital expressed in days of expressed in days of cycle from resource turnover equivalent, turnover equivalent, Q3 purchase to sales Q3 FY2023 FY2023 receip
Slide 26: We utilized our superior performance to draw debt down
We utilized our Payables superior performance to draw debt down 22 Days, payables expressed in days of 195 turnover equivalent, ₹ crores, consolidated Q3 FY2023 gross debt, end of Q3 FY2023 24 Days, payables expressed in days of 280 turnover equivalent, ₹ crores, consolidated Q2 FY2023 gross debt, e
Slide 27: MDF and plywood capacity utilization
MDF capacity Plywood capacity utilization utilization MDF PLYWOOD 76% 66% MDF capacity utilisation, Plywood capacity Q3 FY2023 on enhanced utilisation, Q3 FY2023 capacity 86% 89% MDF capacity utilisation, Plywood capacity Q3 FY2022 utilisation, Q3 FY2022 26
Slide 28: Brand Greenpanel: The Journey So Far
v Part Five Brand Greenpanel: The Journey So Far 27 27
Slide 29: Financial and Business Review
v Financial and Business Review 28
Slide 30: Industry Overview
v Industry Overview 5,000 50 3,200 1.75 2021 2026 INDIA CHINA Size of MDF Market in India (₹ Crores) MDF Consumption (in Million CBM) 29
Slide 31: Industry Overview: Regional demand for MDF
v Industry Overview REGIONAL DEMAND FOR MDF IN INDIA Others 10% West 15% South 45% North 30% 30
Slide 32: Industry Overview
v Industry Overview 80 70 50 50 30 20 Plywood market share (%) MDF market share (%) REST OF WORLD INDIA INDIA 2030E REST OF WORLD INDIA INDIA 2030E 31
Slide 33: Industry Overview
v Industry Overview 3.50 In India, MDF has penetrated all the regions in terms of market presence and is rapidly advancing in terms of 2.30 both consumer demand as well as production capacity. The production capacity has grown by more than 15x from 0.15 million CBM in 2010 to 2.30 million CBM in 202
Slide 34: Where do we stand…
v Where do we stand… Others 7,40,000 Greenpanel 6,60,000 Century Action Tesa 2,00,000 4,00,000 Rushil Décor 3,30,000 33
Slide 35: Where do we stand…
v Where do we stand… We are now among the top 500 listed companies on NSE based on market capitalisation - Rank as on 31 March 2022 is 396 - Rank as on 31 March 2021 was 573 We are now a “USD 1 billion” company in terms of market capitalisation as on 31st March 2022 Credit ratings for “long te
Slide 36: Financial Evolution: areas highlighted
v Financial Evolution Areas Capital Structure Highlighted MDF Business Ply Business 35
Slide 37: Financial Evolution
GREENPANEL FINANCIAL EVOLUTION
Slide 38: Financial Evolution: Net Sales
v Financial Evolution 28% 1,58,574 21% 20% 1,00,100 84,710 58,262 FY2019 FY2020 FY2021 FY2022 NET SALES (₹ Lacs) CAGR (%) 37
Slide 39: Financial Evolution: EBITDA
v Financial Evolution 27.71% 43,939 49% 20.66% 16.53% 15.46% 32% 20,681 25% 14,000 9,005 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 EBITDA VALUE (₹ Lacs) CAGR (%) EBITDA MARGIN (%) 38
Slide 40: Financial Evolution: EBIT
v Financial Evolution 36,604 23.08% 13.80% 13,818 8.36% 6.35% 7,084 3,702 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 EBIT VALUE (₹ Lacs) EBIT MARGIN (%) 39
Slide 41: Financial Evolution: Net Profit
v Financial Evolution 15.17% 62% 24,047 26% 6.87% 5.93% -35% 6,881 1.71% 3,457 1,446 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 NET PROFIT (₹ Lacs) CAGR (%) NET PROFIT MARGIN (%) 40
Slide 42: Financial Evolution: EPS and Market Capitalisation
v Financial Evolution 7,179 19.61 5.61 1,964 2.82 1.18 351 FY2019 FY2020 FY2021 FY2022 FY 2020 FY 2021 FY 2022 Earnings Per Share (₹) Market Capitalisation (₹ Crores) 41
Slide 43: Capital Structure
GREENPANEL CAPITAL STRUCTURE
Slide 44: Capital Structure
v Capital Structure 23 10 8 6 FY2019 FY2020 FY2021 FY2022 Working Capital Turnover Ratio 43
Slide 45: Capital Structure: Gross Debt and Equity
v Capital Structure GROSS DEBT EQUITY D/E 0.91 D/E 0.85 D/E 0.61 D/E 0.30 28,265 58,651 56,106 44,688 95,165 64,550 66,164 73,038 FY2019 FY2020 FY2021 FY2022 EQUITY (₹ Lacs) GROSS DEBT (₹ Lacs) 44
Slide 46: Capital Structure: Net Debt and Equity
v Capital Structure NET DEBT EQUITY D/E 0.88 D/E 0.81 D/E 0.51 D/E 0.06 6,023 56,666 53,752 37,462 95,165 64,550 66,164 73,038 FY2019 FY2020 FY2021 FY2022 EQUITY (₹ Lacs) NET DEBT (₹ Lacs) 45
Slide 47: Shareholding Pattern
v Shareholding Pattern Shareholding structure (%) 100% 90% 16.44% 17.63% 20.33% 24.53% 80% 10.99% 10.74% 5.84% 70% 4.21% 60% 21.54% 18.53% 18.16% 20.73% 50% 40% 30% 51.03% 53.10% 53.10% 53.10% 20% 10% 0% 15.07.2019 31.03.2020 31.03.2021 31.03.2022 Promoter DII FII / FPI Others 46
Slide 48: Shareholding
v Shareholding 63,467 22,305 19,091 19,607 15.07.2019 FY2020 FY2021 FY2022 Number of Shareholders 47
Slide 49: MDF Business
GREENPANEL MDF Business
Slide 50: MDF Business: Capacity Utilisations
v MDF Business 87% 69% 60% 47% FY 2019 FY 2020 FY 2021 FY 2022 MDF CAPACITY UTILISATIONS 49
Slide 51: MDF Business: Sales Volumes
v MDF Business 3,72,530 1,22,512 2,97,372 1,04,903 83,059 2,11,119 1,54,782 42,981 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF SALES VOLUMES - DOMESTIC (CBM) MDF SALES VOLUMES - EXPORTS (CBM) 50
Slide 52: MDF Business: Sales Value
v MDF Business 23,266 1,09,715 15,428 66,325 12,064 47,736 36,711 7,435 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF SALES VALUE - DOMESTIC (₹ Lacs) MDF SALES VALUE - EXPORTS (₹ Lacs) 51
Slide 53: MDF Business: Realisations
v MDF Business 18,941 29,451 17,298 14,707 14,431 23,718 22,611 22,304 FY 2019 FY 2020 FY 2021 FY 2022 FY2019 FY2020 FY2021 FY2022 MDF REALISATIONS - DOMESTIC (₹/CBM) MDF REALISATIONS - EXPORTS (₹/CBM) 52
Slide 54: MDF Business: EBITDA
v MDF Business 41,136 30.93% 22.94% 18.13% 16.33% 17,979 11,449 7,210 FY2019 FY2020 FY2021 FY2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF EBITDA (₹ Lacs) MDF EBITDA MARGIN 53
Slide 55: Ply Business
GREENPANEL Ply Business
Slide 56: Ply Business: Capacity Utilisations and Sales Volumes
v Ply Business 9.30 81% 78% 8.51 8.48 71% 57% 5.68 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD CAPACITY UTILISATIONS PLYWOOD SALES VOLUMES (Mn SQM) 55
Slide 57: Ply Business: Sales Value and Realisations
v Ply Business 275 25,594 21,546 21,710 14,116 256 251 251 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD SALES VALUE (₹ Lacs) PLYWOOD REALISATIONS (₹/SQM) 56
Slide 58: Ply Business: EBITDA
v Ply Business 2,803 12.72% 2,702 2,552 12.45% 1,795 11.84% 10.95% FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD EBITDA VALUE (₹ Lacs) PLYWOOD EBITDA MARGIN (%) 57
Slide 59: Achieved so far…
v Achieved so far… Annual capacity of MDF increased from 540,000 CBM to 660,000 CBM in FY2022 by installation of MAT pre-heating systems Wax emulsion system installed during the year to reduce Wax consumption in MDF production to the tune of 30% Term loan from LBBW prepaid to the extent of EUR
Slide 60: Our widened distribution network
Our widened distribution network 2,535 Number of dealers as on 31st March 2022 12,500+ Number of retailers as on 31st March 2022 17 Branches pan-India Name of physical branches West & Central: Mumbai, Pune, Indore, Ahmedabad South: Bangalore, Hyderabad, Kochi, Coimbatore, Chennai, Vijayawada North:
Slide 61: Thank you
Mr. V. Venkatramani Chief Financial Officer Greenpanel Industries Limited Thank Corporate Office: Thapar House, 2nd Floor, 163, S.P. Mukherjee Road, Kolkata - 700 026 Contact: (+91) 97484 00606 / (+91) 033 4084 0600 Email: v.venkat@greenpanel.com you Website: www.greenpanel.com Mr. Gavin Desa / Mr.
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