Hariom Pipe Industries Ltd. · NSE:HARIOMPIPE
Hariom Pipe Industries — Q3 FY2024 Earnings Presentation
24 slides from Hariom Pipe Industries's earnings presentation, Feb 12, 2024
Slide 1: Exchange filing cover letter for investor presentation
Date: February 12, 2024 To, Listing Department Corporate Relationship Department The National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra East, Mumbai – 400051 Dalal Street, Mumbai - 400 001 NSE Symbol – HARIOMPIPE BSE Scrip C
Slide 2: Hariom Pipe Industries Limited Investor Presentation February 2024
HARIOM PIPE INDUSTRIES LIMITED INVESTOR PRESENTATION February 2024
Slide 3: Vision, Mission and Goal
Vision, Mission and Goal VISION GOAL To be a benchmark in steel pipe industry To reach Rs 2,500 crore for high quality products, customer trust and inclusive growth in Revenue by FY26 without compromising on profitability MISSION To grow sustainably through geographical and value-added product portf
Slide 4: A legacy built over 50+ years
What defines us A legacy built over 50+ years From our roots in steel pipes & tubes trading to becoming a producer of premium steel pipes and tubes products, we are defined by our…. • Deep understanding of customer requirements, geography-wise • Persistence & strength in backward integration • Pench
Slide 5: Steel pipe industry is growing – And we are in a strong position
Where we are today Steel pipe industry is growing – And we are in a strong position • One of the most integrated producers of steel pipes with a growing basket of value-added products • Cold-Rolled and Galvanized steel pipe products to enhance our product portfolio and fill gaps in demand-supply • E
Slide 6: 6 strategic pillars underpin our future performance
How we are creating value 6 strategic pillars underpin our future performance 1 2 3 Lead in value- Focused Superior added products expansion customer (Backward, Forward experience and Geographical) 4 5 6 Inclusive Focus on Generating free stakeholder profitability cash flow management 5
Slide 7: Building the Hariom brand as a synonym for high-quality
Pillar 1 – Lead in value-added products Building the Hariom brand as a synonym for high-quality Scaffolding Steel structures Greenhouse frameworks Hoarding structures Auto components Steel furniture 6
Slide 8: Building the Hariom brand as a synonym for high-quality
Pillar 1 – Lead in value-added products Building the Hariom brand as a synonym for high-quality Commercial pipes HVAC ducts Bus body Fencing Staircase Metro stations Crash guards 7
Slide 9: Plan to expand across India while increasing production
Pillar 2 – Focused expansion Plan to expand across India while increasing production Expanded capacity to 701kt, 2.3x since FY22 • GP/GC capacity of 300kt • MS Pipe capacity of 132kt Building a professional Building a pan-India dealer network leadership team to drive • Strengthening presence in Sout
Slide 10: Modern facilities driving sustainable production
Pillar 2 – Focused expansion Modern facilities driving sustainable production Pickling line CGL Slitting Line GP Stockyard 9
Slide 11: Evolving the customer experience
Pillar 3 – Superior Customer experience Evolving the customer experience One stop shop, Meet stringent Loyalty aimed at Enabled by product basket quality standards building and ERP systems for real-time approach of our industries retaining dealers order intimation and billing Comprehensive steel Aut
Slide 12: Aiming for inclusive growth
Pillar 4 – Inclusive stakeholder management Aiming for inclusive growth Customers Dealers Employees • New products • Distribution • Upskilling through • Wider dealer network opportunity training and • Quality standards • Cost-effective solutions development • 24x7 availability • Channel financing •
Slide 13: Cohesive plan to increase EBITDA margin
Pillar 5 – Focus on profitability Cohesive plan to increase EBITDA margin Key levers: Optimised operations Recycled Steel Value added products • Fully integrated MS Billets Hot Rolled MS Pipes and Scaffolding production of MS Strips Tubes Pipes Iron Ore* Sponge Iron Galvanised Coil Galvanised Pipe •
Slide 14: CR Tandem Mill as example of profit focus in the core
Pillar 5 – Profit Focus CR Tandem Mill as example of profit focus in the core • The CR mill at the ISP at Mahabubnagar, TS is a tandem mill, wherein 3 cold rolling processes reduce thickness variation • This process results in high- quality products • Produces pipes of thickness as low as 0.4mm, whi
Slide 15: Operating Cash Flow expected to improve progressively
Pillar 6 – Generating free cash flow Operating Cash Flow expected to improve progressively Key levers to achieve higher cash flows Ramp-up Establish Rationalise Improve Prudent Positive Production Market for RM and FG EBITDA Capital OCF and FCF of new units GP/GC and inventories margin allocation by
Slide 16: Highly focused management driven towards value creation
Management Highly focused management driven towards value creation Key Management Over 50+ years of experience in steel pipes industry Young management team Shailesh Gupta A single-minded focus on business Rupesh Kumar Gupta Managing Director Whole Time Director Mr Rupesh Gupta has led the Mr Shaile
Slide 17: Sales and profit margin are expected to grow significantly
Projecting strong financial profile Sales and profit margin are expected to grow significantly • Key drivers include Sales (MT) EBITDA per MT (INR) higher value-added product sales and 8,928 138,567 supply chain 7,585 7,260 efficiencies 109,085 5,329 5,759 • Economies of scale and geographical 65,84
Slide 18: On track to achieve our FY26 goal
Projecting strong financial profile On track to achieve our FY26 goal • Enhanced capacity for rapid growth Net Revenue, INR Crore EBITDA, INR Crore 822 • Expanded our 100.6 portfolio and 644 82.7 footprint 431 58.8 • Emphasis on cost efficiency 254 35.0 23.9 161 • Put in place levers for margin expa
Slide 19: Operational & financial performance
Q3 FY24 summary Operational & financial performance • GP/GC units ramping up as Q3FY24 Q3FY23 % Chg YoY Q2FY24 % Chg QoQ 9M FY24 9M FY23 % Chg YoY per plan; maintained a high Net Production, MT 53,735 22,528 139 56,552 -5 1,53,840 72,645 112 share of VAP Sales, MT 48,843 23,538 108 50,435 -3 1,38,56
Slide 20: Safe harbour / Disclaimer
Safe harbour / Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by “Hariom Pipe Industries Limited” (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 21: Thank You
Thank You Amitabha Bhattacharya HARIOM PIPE INDUSTRIES LIMITED cfo@hariompipes.com
Slide 22: Appendix
Appendix
Slide 23: Progressively adding capacity of value-added products
Key Milestones Progressively adding capacity of value-added products 2020 2022 Acquisition of Sponge Iron Unit situated at Anantapur, A.P., with a capacity of 36,000 MTPA to achieve cost efficiency and better control of the entire value chain Increased Scaffolding Unit capacity to 5000 MTPA 2019
Slide 24: Modern facilities driving efficient and sustainable production
Manufacturing Modern facilities driving efficient and sustainable production Location Products and Installed Capacity Capacity in FY22, Capacity in FY23, Current Capacity, Product MTPA MTPA MTPA M.S. Billets 95,832 1,04,232 1,04,232 HR Strips 84,000 1,24,000 1,24,000 Mahabubnagar, Telangana Integrat
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