Greenpanel Industries Ltd · NSE:GREENPANEL
Greenpanel Industries — Q2 FY2022 Earnings Presentation
34 slides from Greenpanel Industries's earnings presentation, Sep 30, 2021
Slide 1: How it outperformed in Q2, FY 2021-22
v How it outperformed in Q2, FY 2021-22 A brief report for stakeholders Greenpanel Industries Limited
Slide 2: 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 3: A snapshot of our company
v A snapshot of our company 1 2 3 Brand vision: Every organisation in About us: Greenpanel is a Management: Greenpanel is led by the world, irrespective of its size and prominent wood panel player Mr. Shiv Prakash Mittal, Executive domain, strives towards building a in India with a national Chairman
Slide 4: Product offerings
v Product offerings 5 4 3 Greenpanel 1 2 MDF 1 Greenpanel 2 wood floors Greenpanel 3 plywood Greenpanel 4 veneers Greenpanel 5 doors
Slide 5: Our performance in Q2, FY 2022
v Part one Our performance in Q2, FY 2022
Slide 6: Highlights of Brand Greenpanel's performance, Q2 of FY 2021-22
v Best quarter in the 1 company’s existence Profitable growth (265% profit 2 growth > 87% revenue growth) Sharp increase in capacity utilization, highlights of Brand 3 offtake and realisations Greenpanel’s performance, Q2 of FY 2021-22 Superior working 4 capital hygiene Stronger Balance 5 Sheet
Slide 7: Overview by the MD and CEO
v Overview by the MD and CEO "Our business accelerated momentum in Q2 following increased vaccinations.”
Slide 8: Overview by the MD and CEO (continued)
v “MDF volumes grew 66.9% 2021. We prepaid four German year-on-year; operating Bank loan instalments margins improved 860 basis amounting to Euro 8.91 Mn points to 31.4%.” (INR 78 crores) in October “Plywood volumes grew 22.4% 2021; we are targeting to be although operating margins fell net debt-fre
Slide 9: Our financial performance in brief
Our financial performance in brief Our revenue growth Our profit growth EBITDA Profit after tax 408.51 115.29 67.06 Rs crore, Profit after tax, Rs crore, Net Sales, Rs crore, Earnings before interest, depreciation, taxes and Q2 FY 2021-22 Q2 FY 2021-22 amortization, Q2 FY 2021-22 218.50 46.43 Rs cro
Slide 10: Our financial performance in brief
Our financial performance in brief Our shareholder RoCE (Post Tax) % Return on equity value growth (RoE) Earnings per share 5.47 22.8 % Return on capital 32.4 % Return on equity, Rs, Earnings per share, employed, Q2 FY 2022 Q2 FY 2022 Q2 FY 2021-22 1.50 10.6 11.4 % Return on equity, Rs, Earnings per
Slide 11: The Greenpanel Brand: Attributes
v Part two The Greenpanel Brand: Attributes
Slide 12: The Greenpanel Brand: Attributes
v The Greenpanel What Brand Brand: Attributes Greenpanel successfully Evangelist: Championing the cause of MDF over cheap demonstrated in plywood Q2 FY 22 Value-enhancing: Enhancing Resilience: Ability to absorb ease of access, availability unexpected shocks and affordability (slowdown and lockdown)
Slide 13: We grew revenues faster than the growth of the Indian economy
We grew revenues faster than the growth of the Indian economy 7.9 % (projected), growth of 87 %, YoY growth of the Indian economy in Greenpanel Q2, FY 2022. revenues in Q2, FY 2022. Source: Live Mint
Slide 14: The health of the real estate sector
v The health of the real estate sector Sector performance and reforms 59 %, YoY growth in residential real estate 29 225 INR billion, Indian sales, Q2 FY 2022 INR billion, Indian MDF plywood market market size, 2021 (Source: Moneycontrol, size, 2021 Statista)
Slide 15: Regulatory and consumption triggers
Regulatory and consumption triggers Engineering exports of a record Stricter GST 100 Smart Cities in the USD 9.14 billion in July implementation pipeline 2021 (42.5% growth YOY) (Source: Business Standard)
Slide 16: MDF preference over plywood
v Increased MDF resources: Grown on 1 commercial plantations, enhancing quality and availability. Safety from COVID-19: Consumer shift from 2 traditional plywood to engineered wood readymade furniture Competitive: MDF as good as plywood; 3 better price-value proposition; upfront 40% saving and total
Slide 17: Brand Greenpanel's health
v Part three Brand Greenpanel’s health How our brand acceptance has helped create a stronger company
Slide 18: We strengthened realisations across both product lines
v We strengthened realisations across both product lines MDF 22 %, Growth in 24,446 average MDF realisations Rs / cubic meter, Average realization, Q2, FY 2021-22 Plywood 20,030 Rs / cubic meter, 13.4 %, Growth in 279 246 Average realization, Rs / cubic meter, Rs / cubic meter, average Average reali
Slide 19: We widened our margins by building a stronger business
We widened our margins by building a stronger business We widened our We continued to margins by building remain principally an a stronger business 697 bps MDF-driven company 28.2 % EBITDA margin, YoY growth in 82 EBITDA margin % of revenues drive Q2, FY 2021-22 over Q2 FY from MDF, Q2 FY 2022 21.3
Slide 20: We strengthened our working capital hygiene
We strengthened our working capital hygiene Working capital Working capital Inventory cycle productivity 14 6.44 36 Days, working capital Revenue generated Days, finished goods cycle from resource from every rupee of inventory expressed in purchase to sales working capital days of turnover receipt,
Slide 21: We utilized our superior performance to draw debt down
We utilized our Receivables Payables superior performance to 11 33 draw debt down Days, receivables Days, payables expressed in days of turnover equivalent, expressed in days of turnover equivalent, 344 Q2, FY 2022 Q2, FY 2022 Rs crores, consolidated debt, end of Q2, FY 2022 20 46 405 Days, receivab
Slide 22: How we strengthened our liquidity
How we We strengthened We strengthened strengthened our capacity our capacity our liquidity utilization utilization 54.95 MDF PLYWOOD Times or x, interest 95% 92% MDF capacity utilisation, cover, Q2, FY 2022 Plywood capacity Q2 FY 2021-22 utilisation, Q2 FY 2021-22 2.29 59% 78% Times or x, interest
Slide 23: Our segment-wise financial growth
Our We enhanced the We enhanced the segment-wise value-added value-added financial growth proportion of our proportion of our business business SUPERIOR REALISATIONS SUPERIOR PRODUCT MIX 50% 240 11% YoY growth in plywood of revenues derived from Rs per sq m, Average volumes, H1 FY 2021- decorative v
Slide 24: Brand Greenpanel: Strengths and attributes
v Part four Brand Greenpanel: Strengths and attributes
Slide 25: Brand credentials
Brand v credentials Largest Indian MDF brand by capacity Scaled from scratch to leadership in just three of faith to invest in the best manufacturing 5,40,000 years – unprecedented technologies Cubic meters per annum, success installed capacity as on 31 Positioned itself as a March 2021 Arguably the
Slide 26: Pureplay brand positioning and large addressable market
Pureplay brand positioning Large addressable market 82 22 Per cent of revenues derived USD billion, estimated size of India’s from MDF, Q2, FY 22 interior design market, 2021 (Source: PRNewsWIre) 76 783 Per cent of revenues derived from Rs crores, MDF revenues reported by MDF, Q2, FY 21 Greenpanel i
Slide 27: Our widened distribution network
Our widened distribution network 2,084 Number of dealers as on 31st March 2021 10,000+ Number of retailers as on 31st March 2021 15 Branches pan-India Name of physical branches West & Central: Mumbai, Nagpur, Pune, Indore South: Bangalore, Hyderabad, Kochi, Coimbatore, Chennai North: Jaipur, Chandig
Slide 28: Addressing a penetration mismatch
Addressing a penetration mismatch 20,762 million cubic meters, estimated size of China’s MDF market, 2019 105.16 million cubic meters, estimated (Source: Globenewswire) size of India’s MDF market, 2020 (Source: Mordor Intelligence)
Slide 29: Sustainability and operational initiatives
v The Company implemented 5S and trained employee in stronger house-keeping 4.6 Logistics cost as a % The Company supplied fly of overall revenues, ash (generated from the Q2, FY 22 energy plant) to brick 130,000 manufacturers The Company developed a 4.9 green belt at various Cubic metres, Total loc
Slide 30: How we intend to grow Brand Greenpanel
v Part five How we intend to grow Brand Greenpanel
Slide 31: Evangelise MDF, expand capacity, leverage SAP network, reduce debt
v 1 2 3 Evangelise MDF Expand our manufacturing Leverage the SAP network • Capitalise on the growing capacity • We intend to leverage our preference of MDF (over • We intend to enhance our existing SAP network plywood) manufacturing capacity from • The SAP network will be 540,000 cubic m to 660,000
Slide 32: What stakeholders can expect
v Part six What stakeholders can expect
Slide 33: What stakeholders can expect
What stakeholders can expect Real estate fit-outs to grow Our value-creation journey • Sustained MDF traction based on • Near-rated utilization of MDF a buying preference for capacity engineered furniture products • Increased brand-driven offtake of • Protected realisations based on value-added prod
Slide 34: 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 you Email: v.venkat@greenpanel.com Website: www.greenpanel.com Mr. Gavin Desa / Mr.
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