Astral Limited · NSE:ASTRAL
Astral — Investor Presentation (November 2019)
50 slides from Astral's investor presentation, November 2019
Slide 1: Analysts' Meet Investor Presentation November 2019
Analysts’ Meet INVESTOR PRESENTATION 22/05/2019 November 2019 Mumbai
Slide 2: Astral, Where Innovation Flows
ASTRAL, WHERE INNOVATION FLOWS
Slide 3: Business Overview: Three High Growth Business Categories
BUSINESS OVERVIEW PIPING OPERATING IN THREE HIGH GROWTH ADHESIVES & SEALANTS BUSINESS CATEGORIES INFRASTRUCTURE PRODUCTS
Slide 4: Corporate Structure
CORPORATE STRUCTURE ASTRAL POLY TECHNIK LIMITED RESINOVA SEAL IT APL ABPL CHEMIE LTD UK KENYA 100% 97.45% 80% 50% SEAL IT USA 100%
Slide 5: Presence in 4 Countries, 12 Manufacturing Locations
PRESENCE IN 4 COUNTRIES. 12 MANUFACTURING LOCATIONS. 4000+ EMPLOYEES. • One of India’s fastest growing piping companies • A Fortune India 500 company • Comprehensive range of piping & adhesives
Slide 6: Brand Astral Has Earned Reputation of Performance and Reliability
BRAND ASTRAL HAS EARNED REPUTATION OF PERFORMANCE AND RELIABILITY THE MOST TRUSTED CONSUMER VALIDATED FORTUNE INDIA PIPE BRAND 2019 SUPERBRANDS INDIA 2019 500 COMPANY
Slide 7: Astral, The Trendsetter
ASTRAL, THE TRENDSETTER First to introduce CPVC piping Three adhesives mfg. units in in India India – and two abroad Introduced countless Known for zero-compromise innovations in piping category quality and service Offers the widest Always ahead on the piping product range technology curve Six pipin
Slide 8: Astral Group – Business Segments
ASTRAL GROUP – BUSINESS SEGMENTS Plumbing Epoxy Adhesives & Putty • CPVC, PVC & Pex Silicone Sealants Drainage Construction Chemicals • SWR, Sewerage, Storm- PVA water ADHESIVES PIPING Cyanoacrylate Agriculture Solvent Cements Industrial Tapes Fire Protection Polymeric Filling Compound Conduit & Cab
Slide 9: Astral - Production Facilities
ASTRAL - PRODUCTION FACILITIES
Slide 10: New Plant @ Ghiloth (Rajasthan)
NEW PLANT @ GHILOTH (RAJASTHAN) State-of-the-art Manufacturing facility - Operational since July 2018. This plant strengthens company’s presence in North India
Slide 11: New Hosur Plant & Depot (Tamilnadu)
NEW HOSUR PLANT & DEPOT (TAMILNADU) Additional capacity – now operational from FY19 Q2 which further strengthens company’s presence in South India
Slide 12: Coming Soon – Plant in East India
COMING SOON – PLANT IN EAST INDIA The company has purchased land approx. 100,000 sq. yard to establish manufacturing facility in Bhubaneswar, Odisha (East India). Construction will start in current year , plant will be ready by September 2020. NEW PLANT COMING UP AT BHUBANESHWAR, ODISHA, TO CATER TO
Slide 13: Depots and Offices, Piping and Adhesives
DEPOTS AND OFFICES, PIPING AND ADHESIVES
Slide 14: Core Competences, Advantage Astral
CORE COMPETENCES, ADVANTAGE ASTRAL Seamless backward Unbeatable integration quality Wide and deep World-class mfg. distribution capabilities & reach technical tie-ups Product innovations Strong brand & value engineering equity
Slide 15: New Product Launch
NEW PRODUCT LAUNCH ANASTRAL
Slide 16: Pex-A Pro: A Revolutionary Plumbing System
PEX-A PRO A REVOLUTIONARY PLUMBING SYSTEM WITH EXPANSION RING TECHNOLOGY
Slide 17: Infrastructure Products
INFRASTRUCTURE PRODUCTS PVC SUCTION HOSES FOR CORRUGATED DOUBLE MINING AND PLASTIC AND PIPES FOR WALLED NON-AGRI SHEATHING DISCHARGE SUCTION CORRUGATED DUCTS HOSES APPLICATIONS APPLICATIONS PIPING POLYOLEFIN DOUBLE POLYETHYLENE CABLE PACKAGE PERFORATED WALLED PIPING CHANNELS SEWAGE CORRUGATED CORRUG
Slide 18: Infrastructure Products: D-Rex, Dyna Rex
INFRASTRUCTURE PRODUCTS D-REX DYNA REX DOUBLE WALLED CORRUGATED PIPES PVC CORRUGATED PERFORATED & FOR SEWERAGE NON-PERFORATED PIPES FOR RAIL AND ROAD DRAINAGE
Slide 19: Infrastructure Products: Georex, Aqua Rex
INFRASTRUCTURE PRODUCTS GEOREX AQUA REX PLASTIC CORRUGATED LATERAL DRAIN UNIQUE DRAIN BELT FOR DRAINING PIPE WITH PERFORATION OF EXCESSIVE SOIL WATER
Slide 20: Infrastructure Products: Pre-Stirex, Stirex
INFRASTRUCTURE PRODUCTS PRE-STIREX PLUS STIREX HDPE/PP CORRUGATED DUCTS FOR ENHANCED VERSION OF POST PRE-STRESSING AND POST-TENSIONING TENSIONING CORRUGATED TENDONS HDPE/PP DUCTS
Slide 21: Infrastructure Products: Tele Rex, Multirex
INFRASTRUCTURE PRODUCTS TELE REX MULTIREX HDPE PIPES FOR UNDERGROUND POLYOLEFIN PIPES FOR UNDERGROUND CABLE DUCTING CABLE PROTECTION
Slide 22: Rescue Tape - Multi-Purpose Repair Tape
RESCUE TAPE- MULTI-PURPOSE REPAIR TAPE FEATURES AND BENEFITS • Simply stretch and wrap for permanent waterproof and airtight seal • Self fusing • Resists upto 260° C • 700 PSI Tensile Strength • Insulation 8000 volts • Resists fuel, oil, acids, solvents, salt water and UV rays
Slide 23: Resiquick - Instant Adhesive
RESIQUICK- INSTANT ADHESIVE FEATURES AND BENEFITS • Attractive and user-friendly ampule • Easy and precise application, single drop accuracy • Cost effective due to multiple usage • Higher shelf life
Slide 24: Resiwood - PVA Adhesive
RESIWOOD- PVA ADHESIVE PVA – WHITE SYNTHETIC ADHESIVE RANGE FOR WOOD WORKING AND FURNITURE MAKING
Slide 25: Branding and Communication
BRANDING AND COMMUNICATION • TV and print ads • On-ground cricket match branding BRANDING • Outdoor brand promotion • Brand association – IPL • Radio ads • Dealer meets AND • Trade exhibitions • Plumber meets ADVERTISING • Dealer shop branding • Consultant meets • In-film product integration • Digit
Slide 26: Branding and Communication
ZNASTRAL PIPES» ADHESIVES BRANDING AND COMMUNICATION ASTRAL PIPES THE CHOICE OF PROFESSIONALS FOR HOT & COLD WATER PLUMBING. WIDEST RANGE OF PLUMBING, DRAINAGE & AGRICULTURE PIPES
Slide 27: Branding and Communication
BRANDING AND COMMUNICATION
Slide 28: Branding and Communication: L Band IPL 2019
BRANDING AND COMMUNICATION L BAND – IPL 2019 ON STAR SPORTS NETWORK
Slide 29: Branding and Communication
BRANDING AND COMMUNICATION ASASTRAL INDIA’S WIDEST EPOXY ADHESIVES’ RANGE. —— BONDYTITE] | ANASTRAL PIPES ADHESIVES — A\ASTRAL ADHESIVES ~ JODEIN EKDUM SOLID HOVO ©7311 103331 © 9099 666666 «
Slide 30: Robust Distribution Network
ROBUST PIPING: ADHESIVES: 800 Distributors 1800 Distributors DISTRIBUTION More than 30,000 dealers Approx. 4 lac dealers NETWORK
Slide 31: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY YOG SADHAN ASHRAM WILD-LIFE SUPPORT AND CONSERVATION • Yoga classes and workshops • DONATION OF VEHICLES FOR WILD-LIFE RESEARCH • Naturopathy Treatment • INSTALLATION OF SOLAR PUMPS IN WILD-LIFE • Ayurveda Consultancy SANCTUARIES FOR PROVIDING WATER TO THE ANIMALS • A
Slide 32: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY SUPPORTED AN NGO FOR DOING ANTI-DRUGS CAMPAIGN THROUGHOUT THE CITY OF AHMEDABAD
Slide 33: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Donated State-of-the-art ICU on wheels to CIMS Hospital, Ahmedabad.
Slide 34: Financial Highlights
ANASTRAL FINANCIAL [alfeatileja tis
Slide 35: Piping Business: Net Revenue and EBITDA
PIPING BUSINESS (INR MN.) NET REVENUE EBIDTA CAGR 13.3% CAGR 23.6% 3,154 19,157 2,477 15,819 2,153 14,767 13,180 1,816 1,670 10,171 FY16 FY17 FY18 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY20 Sales of FY 18 is regrouped in compliance with Ind AS 115. During the year 18-19, Rex Poly extrusion is amalgama
Slide 36: Piping Business: PBT and PAT
PIPING BUSINESS (INR MN.) PBT (BEFORE EXCEPTIONAL ITEM) PAT CAGR 28.4% 2,202 CAGR 24.7% 1,415 1,836 1,190 1,592 1,066 1,038 1,250 729 1,039 FY16 FY17 FY18 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY20 During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018.
Slide 37: Piping Business: EPS and Cash Profit
PIPING BUSINESS (INR MN. EXCEPT EPS) EPS (IN INR) CASH PROFIT 9.40 CAGR 24.3% CAGR 24.4% 2,086 7.94 7.11 6.89 1,657 1,484 1,467 4.89 1,083 FY16 FY17 FY18 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY20 During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018. EPS for H
Slide 38: Piping Business - Ratios, Capacity & Production
PIPING BUSINESS - RATIOS, CAPACITY & PRODUCTION DEBT / EQUITY RATIO CAPACITY UTILIZATION (IN ‘000 MT) 0.23 0.18 0.17 0.13 CAGR 15.7% 220.99 205.29 0.12 FY16 FY17 FY18 FY19 H1 FY20 152.10 137.71 136.71 * 127.76 120.82 105.75 SALES (IN ‘000 MT) 87.69 77.91 CAGR 16% 122.99 89.45 103.99 77.94 66.35 FY 1
Slide 39: Piping Business – Working Capital Days
PIPING BUSINESS – WORKING CAPITAL DAYS Inventory No. of days Debtors No. of days Net Working Capital No. of days 66 66 61 58 57 55 51 49 49 43 47 32 38 34 29 FY16 FY17 FY18 FY19 H1 FY20 Sales of FY 18 is regrouped in compliance with Ind AS 115. During the year 18-19, Rex Poly extrusion is amalgamate
Slide 40: Adhesives Business Summary of Subsidiaries: Net Revenue
ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) RESINOVA- SEAL IT – UK & USA ADHESIVE TOTAL- NET REVENUE NET REVENUE NET REVENUE CAGR 19.2% CAGR 13.2% CAGR 17.2% 4,370 6,347 3,786 1,977 5,265 3,191 4,584 1,363 1,393 1,479 3,940 2,577 1,065 2,925 1,860 FY16 FY17 FY18 FY19 H1 FY16 FY17 FY18 FY19
Slide 41: Adhesives Business Summary of Subsidiaries: EBITDA
ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) RESINOVA- SEAL IT – UK & USA ADHESIVE TOTAL- EBIDTA EBIDTA EBIDTA CAGR 32.8% CAGR 11.1% CAGR 26.8% 181 732 856 675 816 132 125 509 586 84 77 420 412 288 287 FY16 FY17 FY18 FY19 H1 FY16 FY17 FY18 FY19 H1 FY16 FY17 FY18 FY19 H1 FY20 FY20 FY20 Sales
Slide 42: Group Revenue Breakup – H1 FY 19-20
GROUP REVENUE BREAKUP – H1 FY 19-20 Piping 77% Adhesives 23%
Slide 43: Consolidated: Net Revenue and EBITDA
CONSOLIDATED (INR MN.) NET REVENUE EBIDTA CAGR 14.3% CAGR 24.9% 3,968 25,073 20,729 3,268 18,947 2,703 16,778 2,215 12,849 2,035 11,024 1,792 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 Sales of FY 18 is regrouped in compliance with Ind AS 115.
Slide 44: Consolidated: PBT and PAT
CONSOLIDATED (INR MN.) PBT PAT CAGR 29.2% 2,834 CAGR 24.6% 1,973 2,481 1,757 2,007 1,446 1,301 1,537 1,315 1,019 1,170 827 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20
Slide 45: Consolidated: EPS and Cash Profit
CONSOLIDATED (INR MN. EXCEPT EPS) EPS CASH PROFIT CAGR 24.3% 13.01 CAGR 24.7% 2,788 11.68 2,328 9.65 1,948 8.57 1,817 6.77 1,437 5.45 1,197 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 EPS for H1 FY20 is not annualised. EPS for FY 16 to FY 19 have been adjusted for bonus s
Slide 46: Group Working Capital Days
GROUP WORKING CAPITAL DAYS Inventory No. of days Debtors No. of days Net Working Capital No. of days 69 65 63 60 58 62 55 56 52 54 50 49 49 41 39 FY16 FY17 FY18 FY19 H1 FY20 Sales of FY 18 is regrouped in compliance with Ind AS 115.
Slide 47: Opportunities in Piping Industry
OPPORTUNITIES IN PIPING INDUSTRY • Initiatives like “Housing of All by 2022” and “Smart Cities Mission” is driving residential development and will direct growth of the Infrastructure Sector. • 100% FDI is permitted through the Automatic route in the Infrastructure Sector. • Government has sanction
Slide 48: Opportunities in Piping Industry
OPPORTUNITIES IN PIPING INDUSTRY • In the recent budget, Pradhan Mantri Awas Yojana (PMAY) has received allocation of Rs. 25,853 Cr. • Government programs like PMKSY, PMAY-U, PMAY-G and AMRUT & Smart City are supportive to the industry. • Under AMRUT, Smart City Development, HRIDAY – Total 482 Citie
Slide 49: Opportunities in Infrastructure
OPPORTUNITIES IN INFRASTRUCTURE • Under Pradhan Mantri Gram Sadak Yojana, government has allocated Rs. 19000 Cr. For 2019-20 • Construction of rural road has been tripled under Pradhan Mantri Gram Sadak Yojana. • Budget allocation to highways increase to nearly Rs. 83000 Cr. • Government has announc
Slide 50: Thank You
THANK YOU astralpipes.com | astraladhesives.com