Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q4 FY2020 Earnings Presentation
46 slides from Prince Pipes And Fittings's earnings presentation, Jun 25, 2020
Slide 1: Presentation at Conference Call for Analyst and Investors
\61PRINCE® --=----- PIPING SYSTEMS PPFL/SE/2020-2021/iS5'f June 25, 2020 To, BSE Limited National Stock Exchange of India Limited J,' 25th Floor, P.J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai-400001 Bandra (E), Mumbai -400051 Scrip Code: 542907 Scrip Code: PRINCEPIPE Dear Si
Slide 2: Swachh Bharat Mission, AMRUT and Smart City Mission
SWACHH BHARAT MISSION To achieve universal sanitation coverage. and to put focus on sanitation” Budget - Rs 12,294 er i AMRUT Providing basic civic amenities like water supply, sewerage, urban transport, parks as to improve the quality of life: get - Rs 77,640 or oe eT , SMART CITY MISSION To drive
Slide 3: Jab piping systems honge leak-free, India banega disease-free
Jab piping systems honge leak-free, India banega disease-free.
Slide 4: Q4 & FY 2020
yd PRINCE’ PIPING SYSTEMS INVESTOR PRESENTATION Q4 & FY 2020
Slide 5: 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 6: Index
Index Industry About Us Key Leadership Overview Strengths Profile Financials Outlook 5
Slide 7: Industry Overview
Industry Overview India’s low Per Capita Plastic Consumption vs World Avg. Domestic Plastic Pipes & Fittings Market Size (In Kg) (Rs. bn) 110 World Avg. 30 550 65 ~300 45 250 270 205 225 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL Research 6
Slide 8: Types of Polymers & Applications
Types of Polymers & Applications 7
Slide 9: Multiple Growth Drivers
Multiple Growth Drivers Substitution Demand Irrigation from Metal Pipes superior advantages over Irrigation Investment to grow metal pipes at 10%-11% (FY18-FY23) Replacement demand of older Fiscal 2018 Budget increased pipes with plastic pipes allocation to PMKSY Government Initiatives Real Estate S
Slide 10: Big getting Bigger
Big getting Bigger Prince Pipes is amongst the Front Government Initiatives like Runner Beneficiary Unorganised Organised Pan India manufacturing and distribution network focusing on Service + Scale + Range GST, Demonetisation Major market share up BIS Strict implementation of Building a strong bran
Slide 11: About Us
About Us Promoted by More than 3 Largest Chheda decades of Range of Family Operations SKU’s Amongst Top Strategic Industry’s 5 Processor in located Most Piping Manufacturing Trusted Industry units Brand Over 3 decades of experience A wide range of 7,167 SKU’s Pan India distribution network 6 State o
Slide 12: Strategic Distribution & Factory Network
Strategic Distribution & Factory Network Upcoming Manufacturing Channel Depots Plant Plants Partners Strategic Manufacturing locations Pan India • Freight is a significant part of our Cost structure • Plants located near raw material sources/ports and principal markets to improve cost efficiencies U
Slide 13: Our Journey
Our Journey 1987 Incorporated as a Private Limited Company 1995 plastic injection moulding and extrusion unit in Athal BUILDING BLOCK OF A LEGACY Set up a large scale \ad PRINCE’ PIPING SYSTEMS 2000 2010 2018 New plant set up at Nominated for the Best Appointed Akshay Kumar Dadra for pipe SME Emergi
Slide 14: Continuous Innovation through Thought Leadership
Continuous Innovation through Thought Leadership 13
Slide 15: Sustained Thought Leadership and Execution Capabilities
Sustained Thought Leadership and Execution Capabilities 14
Slide 16: Quality & Reliability – Our Cornerstones
Quality & Reliability – Our Cornerstones 15
Slide 17: Scaling through Jaipur Plant
Scaling through Jaipur Plant • Production at Jaipur plant commenced in Sept, 2019 – Installed capacity • • of ~40kT in next 2-3 year horizon Being first mover in North India since 2008 with Haridwar • Strong first mover advantage and unparalleled brand equity in northern India Jaipur plant- Further
Slide 18: Scaling through Telangana Plant
Scaling through Telangana Plant Upcoming integrated 2012 manufacturing Pipe and Acquired Chennai & Fitting facility in Telangana Kolhapur from Chemplast Approx. 50 kT Sanmar Inorganic growth To bolster our endeavour in strategy for South India scaling up our distribution reach and market 2020 Way Fo
Slide 19: Brand Play - Winning In Many Indias
Brand Play - Winning In Many Indias 18
Slide 20: I. Multiple States - Single Strategy: Transit Media
I. Multiple States - Single Strategy: Transit Media 19
Slide 21: II. Digital Marketing Campaign
II. Digital Marketing Campaign 20
Slide 22: III. Brand Association – Mission Mangal
III. Brand Association – Mission Mangal 21
Slide 23: IV. Pan India Influencer & Channel Engagement Activities
IV.Pan India-Influencer & Channel Engagement Activities 22
Slide 24: Channel Partners: Pan India Presence and Strategy
Pan India Presence and Strategy • First mover in 2008 FY15 Sales Profile Geographical spread Key with Haridwar plant Strengths • To scale brand 35.8% equity in North 33.9% 24.7% • 3 Plants across • Next frontier of NORTH different states to growth capture rapid WEST EAST • Asset light model urbaniza
Slide 25: Why Tanks? Product portfolio diversification - Storefit
Product portfolio diversification - STOREFIT Experience in Plastics and Building Material Pan India Network of Manufacturing and Marketing WHY TANKS? Disruption in Tank Segment So, it’s the perfect time for a National Brand like PRINCE to Enter 24
Slide 26: Way Forward - Storefit
Way Forward - STOREFIT Launched Range of Tanks under the Brand Strong Robust 30 Years Leveraging experience Pan India Presence Advantage of Multi- Distribution Infrastructure Efficient Selling with #Brand An opportunity for a National brand like in Plastics & Building Locations Manufacturing Minimal
Slide 27: Strategic Launch - Storefit
Strategic Launch - STOREFIT Pilot Launch in Gujarat Market Will Gradually move to other markets Wide Range of Sizes (Ltr.) 500 750 1000 1500 2000 3000 Gradually expand range and markets post response from the launch 26
Slide 28: Focus on Premium & Quality Products
Focus on Premium & Quality Products Key Features UV stabilized material and Multiple plumbing inlet & Build-in ventilators all the Safe for drinking water make sure there is no outlet provision made for water to stay fresh, also applications physical damage to the tank. easy installation helps to av
Slide 29: Covid Readiness - Hands Free Sanitiser - Sanifit
Covid Readiness - Hands Free Sanitiser - SANIFIT Introduced Hand Sanitizers Hands-Free Pedal Pushing Eco Heavy Eco Light Eco Compact Extensively Tested for Durability and Effective usage Hands-Free units Designed & Manufactured Advantages over Metal Dispensing Maintenance Free Easy To Store Order Re
Slide 30: Social Awareness & Impact - Sanifit
Social Awareness & Impact - SANIFIT CSR INITIATIVES DM Office Bewell Hospital Chandgad Police Station Haridwar Annanagar Kolhapur ATS Units Polic Station Kauvery Hospital Mumbai Silvassa Alwarpet 29
Slide 31: Multi Polymer Product Basket
Multi Polymer Product Basket Key Strengths Wide Range of Pipes & Fittings SKUs 8,085 7,167 7,000 1,600 P1 P2 PRINCE P3 Source: Annual Reports 30 Note: P1 to P3 represents our Peers
Slide 32: Market share gain on multi pronged growth approach
Market share gain on multi pronged growth approach Chart Title PRINCE PIPES INCREASING MARKET SHARE v/s PEERS SET Key 100% Strengths 90% 12.9% 14.2% 14.4% 13.2% 80% 14.6% 15.3% 15.2% 16.7% 14.6% 16.7% 70% 60% 50% 34.6% 33.2% 34.9% 34.0% 40% 30% FY16 FY19 20% 38.0% 37.3% 35.5% 36.1% 10% Market share
Slide 33: Margin Levers
Execution capability with thrust on margin …..due to improvement in product-mix with rising share of Plumbing/SWR pipes Key Strengths Margin Levers 1.0% 1.1% 1.3% 3.2% 64.4% 63.5% 65.0% 65.5% 66.4% Product Mix Improvement 34.6% 35.4% 33.7% 31.3% 34.0% FY16 FY17 FY18 FY19 FY20 Brand Monetization Agri
Slide 34: Improvement of cash conversion cycle
Improvement of cash conversion cycle Debtor Days Inventory Days 87 77 68 67 Key 66 Strengths 59 50 47 40 36 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Creditor Days Working Capital Days 78 74 77 70 59 55 58 49 42 36 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 33
Slide 35: Board of Directors
Board of Directors Directors Work Experience Background • Associated with the company since Mr. Jayant S. Chheda incorporation Founder, Chairman and MD • Awarded the Lifetime Achievement Award‘ at Exp. : 40+ Years the Vinyl India Conference, 2014 • Associated with company since 1996, holds an Mr. Pa
Slide 36: Independent Directors
Independent Directors Directors Work Experience Directorship & Past Affiliation Background Mr. Ramesh Chandak KEC INTERNATIONAL LTD., PARAG MILK • Directorship in multiple corporates and Independent Director FOODS LTD., RR GLOBAL Chartered Accountant Exp. : 40+ Years Mr. Mohinder Pal Bansal ALLCARGO
Slide 37: Strong Core Professional Team
Strong Core Professional Team CXO Work Experience Past Affiliations Background Mr. Shyam Sharda • CA in Accounts & Finance Management – Chief Financial Officer UNITED PHOSPHOROUS LTD, S. KUMARS LTD., ICAI Age : 48 Years; Exp. : 22+ Years • ICWA in Costing & Finance – ICWAI (Intern) Mr. Vininder Sing
Slide 38: Key Highlights FY20
Key Highlights FY20 • For FY20, revenue at Rs. 1,636 crore compared to Rs. 1,572 crore in FY19, growth of 4.1% • Sales volume growth 2.9% at 132,816 MT in FY20 as compared to 129,111 MT in FY19 • Gross sales of ~Rs. 130 crore impacted in the month of March’20 owing to Covid lockdown • For FY20, EBID
Slide 39: Financial Matrix - P&L FY20
Financial Matrix - P&L FY20 Growth % Particulars FY20 FY19 Y-O-Y Revenue from Operation 1635.7 1571.9 4% EBIDTA 228.8 184.1 24% EBITDA % 14.0% 11.7% 228 bps Other Income 6.9 7.1 -2% Depreciation 52.0 43.6 19% Finance Cost 33.2 36.3 -9% PBT 150.6 111.3 35% PBT % 9.2% 7.1% 212 bps TAX 38.1 29.2 30% PA
Slide 40: Financial Matrix - P&L Q4 FY20
Financial Matrix - P&L Q4 FY20 Growth % Particulars Q4 FY20 Q4 FY19 Y-O-Y Revenue from Operation 430.8 499.0 -14% EBIDTA 57.6 58.3 -1% EBITDA % 13.4% 11.7% 169 bps Other Income 5.2 1.9 174% Depreciation 14.4 11.3 27% Finance Cost 8.2 8.9 -8% PBT 40.2 40.0 1% PBT % 9.3% 8.0% 132 bps TAX 11.9 10.0 19%
Slide 41: COVID Impact on sales of March'20
COVID Impact on sales of March’20 Our performance in Q4 factors in the impact due to the lockdown driven by Covid-19 Pandemic which affected our sales figures in the month of March-2020. As evident from our performance for Q4 2019- 20 in the months of January and February 2020 the company has report
Slide 42: Anti-dumping duty (ADD) Impact on Q4FY20
Anti-dumping duty(ADD) Impact on Q4FY20 The Ministry of Finance (Department of Revenue) issued notification on 26.08.2019 levying provisional anti-dumping duty under the Customs Tariff Act, 1975 on imports of Chlorinated Polyvinyl Chloride (CPVC). Accordingly, the Company has paid Rs. 7.65 crore as
Slide 43: Key Balance Sheet Details
Key Balance Sheet Details Key Balance Sheet 31-Mar-20 31-Dec-19 30-Sep-19 31-Mar-19 Details (Rs. In crore) Net worth 837.7 821.7 459.5 398.9 Long Term Debt (Including Current 56.0 108.3 150.7 151.2 Maturity) Short Term Debt 203.8 194.4 171.7 145.7 Total debt 260.9 302.7 322.4 296.9 Cash and cash 0.1
Slide 44: Q4 & FY20 Financial Highlights
Q4 & FY20 Financial Highlights Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) Q4 Q3 -1% 499 -5.4% 431 39,641 58 58 33,140 30 28 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 FY19 FY20 FY19 FY20 Revenue (₹ in Crs.) Sales Volu
Slide 45: Financial Track Record
Financial Track Record ₹ in Crs. Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 1,800 150 Margin 9.7% 12.9% 12.3% 11.8% 14.0% Margin 2.9% 5.9% 5.6% 5.3% 6.9% 1,600 250 130 1,400 1,561 1,631 110 1,200 200 229 113 1,247 1,315 90 1,000 150 184 70 800 1,007 161 162 82 50 74 74 600 100
Slide 46: Thank You!
Thank You! Contact Details: Mr. Shyam Sharda Mr. Rabindra Basu VP & Group CFO Investor Relations :cfo@princepipes.com : investor@princepipes.com 45
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