Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q3 FY2020 Earnings Presentation
28 slides from Greenply Industries's earnings presentation, Feb 12, 2020
Slide 1: Greenply/2019-20 results submission letter to exchanges
Greenply/2019-20 February 11, 2020 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 - 400 001 Mumbai - 400 051 Security Code: 526797 Symbol - GREEN
Slide 2: Q3 & 9M FY2020 Financial Results Presentation
Q3 & 9M FY2020 Financial Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 4: Contents
Contents Financial Highlights: Consolidated & Standalone Chairman & MD’s comments Financial Results Shareholding Pattern Company Overview Growth Outlook Manufacturing Facilities Our Brands Marketing /Activation Product Launch Brand Activation - Digital 3
Slide 5: Financial Highlights – Q3 FY 2020
Financial Highlights – Q3 FY 2020 Consolidated Net Sales down by 1.0% YoY to Rs. 344.9 crores Consolidated Gross margins down by 7 bps YoY to 40.9% Standalone Net Sales up by 2.4% YoY to Rs. 318.4 crores Standalone Gross margins down by 18 bps YoY to 38.2% Consolidated EBITDA margins increased 3 bps
Slide 6: Consolidated Financial Highlights – Q3 FY 2020
Consolidated Financial Highlights – Q3 FY 2020 Q3 FY20 Q3 FY19 Key Ratios (%) Q3 FY20 Q3 FY19 Gross Margin 40.9 41.0 Net Sales 344.9 348.4 1.0% EBITDA Margin 11.6 11.6 EBIT Margin 9.7 9.9 Net Margin 6.2 6.0 Ad and promotions / Net Sales 4.0 2.8 Gross Profit 1.2% 141.2 142.8 Staff Cost/ Net Sales 11.
Slide 7: Consolidated Financial Highlights – 9M FY 2020
Consolidated Financial Highlights – 9M FY 2020 9M FY20 9M FY19 Key Ratios (%) 9M FY20 9M FY19 Gross Margin 41.7 39.0 Net Sales 1072.0 1013.4 5.8% EBITDA Margin 11.8 9.7 EBIT Margin 10.0 8.1 Net Margin 6.4 4.9 Ad and promotions / Net Sales 3.7 4.4 Gross Profit 13.0% 446.7 395.5 Staff Cost/ Net Sales
Slide 8: Standalone Financial Highlights – Q3 FY 2020
Standalone Financial Highlights – Q3 FY 2020 Q3 FY20 Q3 FY19 Key Ratios (%) Q3 FY20 Q3 FY19 Gross Margin 38.2 38.4 Net Sales 318.4 310.9 2.4% EBITDA Margin 11.0 10.3 EBIT Margin 9.4 8.7 Net Margin 5.8 4.9 Ad and promotions / Net Sales 4.3 3.1 Gross Profit 1.9% 121.8 119.5 Staff Cost/ Net Sales 11.2
Slide 9: Standalone Financial Highlights – 9M FY 2020
Standalone Financial Highlights – 9M FY 2020 9M FY20 9M FY19 Key Ratios (%) 9M FY20 9M FY19 Gross Margin 39.5 37.1 Net Sales 966.7 932.9 3.6% EBITDA Margin 11.2 9.8 EBIT Margin 9.5 8.3 Net Margin 5.9 4.6 Ad and promotions / Net Sales 4.0 4.6 Gross Profit 10.3% 382.0 346.2 Staff Cost/ Net Sales 11.6
Slide 10: Financial Highlights - Balance Sheet Perspective
Net worth Total Debt 397.9 276.2 381.3 257.7 250.0 335.2 307.4 313.0 331.3 150.7 173.5 143.6 Financial Highlights - Consolidated Standalone Consolidated Standalone Balance Sheet Capital Employed Cash & Cash equivalents Perspective 655.6 583.6 585.2 30.9 532.0 26.0 486.5 475.0 20.6 18.1 13.1 11.3 Con
Slide 11: Financial Highlights - Balance Sheet Perspective
Receivables Fixed Assets 346.2 310.5 314.0 305.0 311.4 267.6 269.2 285.8 283.4 200.8 174.5 174.3 Financial Highlights - Consolidated Standalone Consolidated Standalone Balance Sheet Payables Inventories Perspective 250.4 245.9 191.6 174.2 169.4 165.1 241.6 241.5 142.1 141.6 232.0 233.6 Consolidated
Slide 12: Financial Highlights - Ratios
Inventories (Days) Debtors (Days) 89 89 52 49 45 44 40 41 85 84 81 79 Financial Consolidated Standalone Consolidated Standalone Highlights - Ratios Creditors (Days) Working Capital Turnover (Days) 71 69 70 70 63 63 62 67 66 53 64 60 Consolidated Standalone Consolidated Standalone Dec’19 Dec’18 Mar’1
Slide 13: Financial Highlights - Ratios
ROE (%) RoCE Pre-tax (%) 23.0 23.8 21.7 23.1 20.0 22.7 18.3 18.5 22.2 21.6 21.1 19.7 Financial Consolidated Standalone Consolidated Standalone Highlights - RoCE Post-tax (%) Debt/Equity Ratios 0.90 17.1 16.8 17.5 16.0 0.75 14.3 14.6 0.65 0.55 0.40 0.43 Consolidated Standalone Consolidated Standalone
Slide 14: Consolidated Performance - Q3 FY 2020 v/s Q3 FY 2019
Sales Gross Profit 141.2 EBITDA 344.9 318.4 121.8 39.9 35.1 Q3 FY20 19.4 4.8 26.5 Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Performance - Q3 FY 2020 v/s Q3 FY 2019 Sales 348.4 Gross Profit 142.9 EBITDA 310.9 119.5 40.2 31.9
Slide 15: Consolidated Performance - 9M FY 2020 v/s 9M FY 2019
Sales 1072.0 Gross Profit 446.7 EBITDA 126.5 966.7 382.0 107.9 9M FY20 105.3 64.7 18.6 Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Performance - 9M FY 2020 v/s 9M FY 2019 Sales Gross Profit EBITDA 1,013.4 395.5 98.5 932.9 91.2
Slide 16: Greenply Standalone Performance
Q3 Q3 9M 9M Particulars Var (%) Var (%) FY20 FY19 FY20 FY19 Net sales (Rs. crore) 318.4 310.9 2.4 966.7 932.9 3.6 EBITDA margin (%) 11.0 10.3 11.2 9.8 Greenply Standalone EBIT margin (%) 9.4 8.7 9.5 8.3 Performance Annual capacity (million sqm.) 24.9 24.9 24.9 24.9 Production (million sqm.) 9.19 8.9
Slide 17: Chairman & Managing Director's comments on Q3 FY 2020
Commenting on the performance for Q3 FY 2020, Mr. Rajesh Mittal, Chairman & Managing Director, Greenply Industries Ltd. said, “We are happy to announce another quarter of progressive performance. We continue to make progress in all our Tier 1, 2 and Tier 3 brands and are encouraged by the response t
Slide 18: Consolidated Financial Results – P&L
(₹ in Lakhs) Statement of Unaudited Consolidated Financial Results for the quarter and nine months ended 31 December 2019 CONS 3M CONS 3M CONS 3M CONS 9M CONS 9M CONS 12M Particulars 31.12.2019 30.09.2019 31.12.2018 31.12.2019 31.12.2018 31.03.2019 Income a) Revenue from operations 34,598.25 38,029.
Slide 19: Standalone Financial Results – P&L
(₹ in Lakhs) Statement of Unaudited Standalone Financial Results for the quarter and nine months ended 31 December 2019 STD 3M STD 3M STD 3M STD 9M STD 9M STD 12M Particulars 31.12.2019 30.09.2019 31.12.2018 31.12.2019 31.12.2018 31.03.2019 Income a) Revenue from operations 31,950.05 34,550.72 31,19
Slide 20: Shareholding Pattern
Shareholding Pattern March 2019 December 2019 Public, Public, 17.56% 14.48% Promoter , Promoter , 51.03% 51.80% Institution, Institution, 33.72% 31.41% 19
Slide 21: Company Overview
Company Overview CAPACITY UTILIZATION PRODUCTION MODEL RAW MATERIAL SUSTAINABILITY • Plywood 148% utilization in 9M FY 2020 ; further • Plywood – Moving towards an asset light set-up by • Plantation of fast growing and improved species of demand being catered through outsourcing increasing outsourci
Slide 22: Growth Outlook
Growth Outlook ADVERTISING & PROMOTIONAL SPENDS • Continued investments in increasing brand visibility pan-India PRODUCT PROFILE • Maintain Ad spends at around 4% of Net Sales • To improve mix of plywood through increase in mix of value-added products like Green Defender, Green Gold Prima and Decora
Slide 23: Manufacturing Facilities / Business Model
Manufacturing Facilities / Business Model Facilities Business Model 63% Premium products, 37% mid & low end products in Capacity Location volume terms (mn sqm.) Tizit, Nagaland 4.50 72% Premium products, 28% mid & low end products in PLYWOOD value terms Kriparampur, West Bengal 6.00 • Asset light mo
Slide 24: Our Brands
Our Brands gy GREEN pEKENDER fal G ECOTEC Bharsatly a. PLYWOOD & BLOCKBOARD woe, crrests Platinum Durable | Affordable | Dependable
Slide 25: Marketing / Activation
Marketing / Activation o Influencers Program Maanyata Milan (Carpenter Recognition Program) Carpenter Meets o Product Promotion – Road Show with product display o Local Branding activity – Wall Paintings, GSB’s Etc. 24
Slide 26: Product launch – Green Club 5 Hundred
Product launch – Green Club 5 Hundred The last word in plywood is here now. In keeping with our tradition of continuous innovation we launched Green Club 5 Hundred on 17th August 2019. As market leaders, our confidence in the product quality allows us to offer Green Club with a 500% Life time warran
Slide 27: Brand Activation – Digital
Brand Activation– Digital Digital media has been the key focus for us this year launching campaigns almost every quarter. Starting from IPL, World cup to Independence Day & Pujo the brand has constantly engaged with high participation from the audience on topical content to maintain brand relevance.
Slide 28: About Greenply
About Greenply For further information, please contact: Greenply Industries Limited (GIL) enjoys leadership position in plywood for more than 26 percent of the organized plywood Mukesh Agarwal – Chief Financial Officer market in India. Greenply Industries Limited GIL has three state–of-the-art manuf
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