Shaily Engineering Plastics Limited · NSE:SHAILY
Shaily Engineering Plastics — Q4 FY2021 Earnings Presentation
57 slides from Shaily Engineering Plastics's earnings presentation, May 29, 2021
Slide 1: Q4FY21 Result & Investor Presentation
Q4FY21 Result & Investor Presentation 29th May, 2021
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shaily Engineering Plastics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 3: Overview
Overview
Slide 4: About the Company
About the Company Enriching Lives Through Plastics Shaily was established in 1987 with just two moulding machines. Today, its facilities have grown significantly to include more than 140 machines, and Shaily plastics can be found across the globe in Founded in products as diverse as medical devices,
Slide 5: Vision Mission & Our Values
Vision Mission & Our Values Our Vision and Mission ▪ To provide end-to-end solutions in plastics ▪ Deliver superior quality to our customers; higher profitability and value to our shareholders; and sustainability for future generations Our Values Deliver customer Be passionate, Always follow delight
Slide 6: Our Core Capabilities
Our Core Capabilities NPD Manufacturing Quality Sustainability • Tool design • Precision molding • Regulatory compliance • Social compliance • Mold flow • Decoration & • Robust QA/QC processes • Renewable energy • Process design Printing • Testing protocol • Recycled / • Automation • Assembly • Cont
Slide 7: Our Journey from FY15 to FY21 has created a strong base
Our Journey from FY15 to FY21 has created a strong base Consumer Business Healthcare Business Financial Health Accelerated existing Increased utilization De-risked Business Created Financial Flexibility Consumer Business by levels of Healthcare Model and Strong Balance Sheet adding New Customers & b
Slide 8: Our Strong base of last few years makes us Future Ready
Our Strong base of last few years makes us Future Ready… 1 Accelerated existing business with Homes Furnishing major • Strengthened our relationship with Swedish Home Furnishings major • Revenues increased from Rs. 120cr in FY15 to over Rs. 200cr in FY21 • Added 30 SKUs taking the total count of pro
Slide 9: Business Segments
Business Segments Automotive & Consumer Personal Care Healthcare Steel Furniture Engineering Home Furnishings Business High Volume Molding, Drug Delivery Devices Automotive Components Decoration & Assembly Carbon Steel Furniture Toys Business Pharma Packaging Engineering Plastics 9
Slide 10: New Business confirmations gaining traction across segments
New Business confirmations… gaining traction across segments Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Home Furnishing FMCG Home Furnishing Toys ✓ Additional business of Rs 60 cr ✓ Consolidation of business with ✓ Confirmation for additional ✓ Started production of 2 products for awarded by Home furnishing in
Slide 11: Quality Certifications
Quality Certifications IATF 16949-2016 ISO 9001 : 2015 ISO 13485 : 2016 ISO 15378 : 2015 MDSAP 11
Slide 12: Certifications
Certifications Security Certifications Social Compliances Certifications Other Certifications AEO T2 Certificate Intertek RD Recognition Letter Star Export House SA-8000 2014 Other Social Compliances Certifications I-WAY GMP 12
Slide 13: Enriching Lives Through Sustainable Performance
Enriching Lives … Through Sustainable Performance The PLEX Council Award Top Exporter Award Top Exporter Of Engineering (1St Position) For Exports Out Components For Eleven Of Rct, Vadodara By Container Consecutive Years: Corporation Of India Ltd 2005 to 2019 At Concor Awards, 2017 Award for BPC GOL
Slide 14: Awards from Customers
Awards from Customers Top Exporter of Engineering Components. Awarded for design of the Sanofi Award for two years of supplying Shellpak Award won consistently from 2005 – AllStar Pen with 100% product quality 2019 14
Slide 15: Consumer Segment
Consumer Segment Home Furnishings Business Toys Business
Slide 16: Our Forte in Consumer Segment
Our capabilities in Consumer Segment Our Forte in Consumer Segment Global Quality End to End Solutions Large Volume Environment Friendly Timely Execution Manufacturing High Consistency in Product development Complex Plastic Highly compliant On time delivery by managing production standards capabilit
Slide 17: Home Furnishings Business
Home Furnishings Business Proven execution with our major home furnishing client Home Furnishings Major is our largest customer Associated with the Home Furnishings major as a Long Standing Relationship plastics supplier since 2004 Over the years have Evolved as a Trusted Supplier of Supplier of Cho
Slide 18: Toys Business
Toys Business Toys Segment Scope of growth in Toy Industry About Spin Master The Global Toys market is expected to gain strong momentum in the coming decade Added Spin Master as our 1st client in Toys Business. Spin Master is a leading global, diversified, multi-platform and highly innovative childr
Slide 19: Personal Care
Personal Care
Slide 20: Personal Care Business – Our Capabilities
Personal Care Business – Our Capabilities Ultrasonic Welding Vacuum Metalising High Speed Rotary Pad Printing Ultrasonic welding service available on a range of Top quality metal finish to plastics through an High-tech printing machines provide a full-colour finish polymers and can be incorporated i
Slide 21: Our Personal Care Clients & Services
Our Personal Care Clients & Services Servicing global FMCG majors such as Unilever and P&G since early 90s Products Manufactured • Primary Packaging for cosmetics • Primary Packaging for Vicks • Razor handles for Gillette • Trigger Sprays & Pumps Disclaimer: The Brand Names and respective Logos ment
Slide 22: Healthcare Segment
Healthcare Segment Pharma Devices Pharma Packaging
Slide 23: Our Forte in Healthcare Segment
Our capabilities in Healthcare Segment Our Forte in Healthcare Segment Drug Delivery Devices Primary Packaging Dedicated Facility Quality & Compliance - Contract In-House Research & Manufactring Development Division - IP Related Product Development 23
Slide 24: Drug Delivery Devices
Drug Delivery Devices One of the leading Injection Molding Companies in Medical Devices field Globally Our Value Proposition Manufacturing of complex precision components and assemblies requiring stringent quality and tight tolerances Comprehensive Design Review We have the expertise in assisting cl
Slide 25: Drug Delivery Devices
Drug Delivery Devices Shaily Tristan ShailyPen Harmony ShailyPen Protean ShailyPen Axiom ShailyPen Maxim Autoinjector 0-80 IU Insulin Reusable 0-60 IU Insulin Reusable / Disposable, Single dose for hGh, FSH, PTH and 0-80 IU Insulin Reusable 2 step Autoinjector with / Disposable, Settable for and Mul
Slide 26: Drug Delivery Devices – New Order
Drug Delivery Devices – New Order First Non-European INSULIN PENS ❑ Equipped world’s first Insulin Pen that is made up of 100% plastic components ❑ Pens were designed to meet UL & FDA approvals ❑ Pens are ISO 11608 1,2&3 certified ❑ Shaily is one of the very few manufacturers of Insulin pens in the
Slide 27: Primary Packaging
Primary Packaging Our Capabilities Our Competitive Edge Superior Protection for Active Pharmaceutical Ingredients High end vision system for bottles and closures Value Addition through Expertise in Materials, Manufacturing, Quality and Regulatory Compliance Safer Design with Shaily CRCs Type III Dru
Slide 28: Our Healthcare Clients
Our Healthcare Clients Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only 28
Slide 29: Healthcare segment – Way Forward
Healthcare segment – Way Forward Increasing demand for pharmaceutical devices & packaging products Industry Growth due to rising geriatric population, growing chronic diseases, increasing number of diabetic patients, etc. Expansion of the generic market, technological advancement & Growth Drivers st
Slide 30: Automotive & Engineering
Automotive & Engineering
Slide 31: Automotive & Engineering Business
Automotive & Engineering Business At Shaily our efforts in the automotive segment is geared towards light weighting the vehicle Automotive Engineering Plastics Unique Molding Process Applications in the turbo chargers of high-end luxury Manufacturing high value-added products from ultra- Proprietary
Slide 32: Our Automotive & Engineering Plastics Clients
Our Automotive & Engineering Plastics Clients Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only 32
Slide 33: Steel Furniture
Steel Furniture Carbon Steel Furniture
Slide 34: Building New Capabilities and Diversity in Orderbook
Building New Capabilities and Diversity in Orderbook New Carbon Steel Facility at Halol Newly Added Business Segment ❑ Received confirmation for manufacture & supply of Carbon Steel products from Swedish Home Furnishings Major in Q1FY19 ❑ Signifies immense faith placed by the customer in our capabil
Slide 35: Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
Slide 36: State-of-the-Art Manufacturing Facilities
State-of-the-Art Manufacturing Facilities 6 Facilities with over 140 molding machines ranging from 35 tons to 1,000 tons Rania ❖ Export Oriented Unit ❖ Pharma (Dedicated ISO Class 8 clean room manufacturing facility) ❖ Others Rania Halol GUJARAT Halol (Existing) ❖ Automotive & Engineering Halol (New
Slide 37: We are focused on Sustainable Development
We are focused on Sustainable Development We believe in Business SOCIALLY AND ENVIRONMENT operations that have a RESPONSIBILITY IS OUR DNA positive impact on the Planet and People We have also been successful in being able to convert products manufactured from Our Goal is to constantly improve our v
Slide 38: Board of Directors
Board of Directors Executive Chairman Whole Time Director Managing Director Mr. Mahendra Sanghvi Ms. Tilottama Sanghvi Mr. Amit Sanghvi Executive Director Independent Director Independent Director Mr. Laxman Sanghvi Mr. Milin Mehta Dr. Shailesh Ayyangar Independent Director Independent Director Mr.
Slide 39: Strong Credit Rating
Strong Credit Rating Long and established track record in the plastic injection molding business along with experienced Promoters Growth in Total operating income on the back of increased volumes & higher exports UPGRADED Bank Facilities Sustainable healthy operating margin along with strengthening
Slide 40: Our Risk Mitigation Strategy helps us Grow
Our Risk Mitigation Strategy helps us Grow Risk We are a B2B player and are dependent on the success of our customers products in end products as well as Global Economic Environment 1 Revenue Growth Mitigation Strategy: We have diversified our product portfolio across multiple customers, multiple SK
Slide 41: Our Way Forward is Clear!
Our Way Forward is… Clear ! Revenue Uptick Increased Healthcare Revenue Sustained uptick in Revenue based on New business Expect 2-3x revenue growth from Healthcare confirmations, addition of new clients and increased segment on back of faster penetration within contribution from New business segmen
Slide 42: Key Financial Highlights
Key Financial Highlights
Slide 43: Witnessed strong Revenue recovery in FY21
Witnessed strong Revenue recovery in FY21 (Rs. Cr.) +4.0% +7% +112% 109.8 105.5 98.7 46.6 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Commercialization of orders, bagged in FY20, led to recovery and sustained uptick in Revenues in FY21 43
Slide 44: Key Financial Highlights – Q4FY21
Key Financial Highlights – Q4FY21 (Rs. Cr.) Revenue Gross Margin % (Rs. Cr.) EBITDA +38% 44.9 +47% 42.4 109.8 38.9 22.1 105.5 18.9 79.6 15.0 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 EBITDA Margin % (Rs. Cr.) PAT Cash PAT # +39% +32% 20.1 9.7 15.3 18.8 17.9 8.0 12.8 7.0 11.6 Q4F
Slide 45: Key Financial Highlights – FY21
Key Financial Highlights – FY21 (Rs. Cr.) Revenue Gross Margin % (Rs. Cr.) EBITDA -2% +5% +7% 41.1 40.3 59.1 62.1 360.6 336.0 FY20 FY21 FY20 FY21 FY20 FY21 EBITDA Margin % (Rs. Cr.) PAT Cash PAT # -2% 0% -7% 17.6 17.2 41.5 41.5 23.6 22.0 FY20 FY21 FY20 FY21 FY20 FY21 45 #Cash PAT includes PAT & Depr
Slide 46: Utilization & Volume
Utilization & Volume 70 Machine Utilization – Across Plants (%) 64 64 58* 56* Q4FY20 Q3FY21 Q4FY21 FY20 FY21 * Owing to additional capacity in place at Rania & Halol, utilization rate has come down, it will ramp up in the coming quarters Volume of Polymers Processed (MT) 14,602 4,444 4,356 13,293 3,
Slide 47: Operational Trends
Operational Trends Machine Utilization (%) 74 67 69 64 58* FY17 FY18 FY19 FY20 FY21 * Owing to additional capacity in place at Rania & Halol, utilization rate has come down, it will ramp up in the coming quarters Volumes of Polymers Processed (MT) 14,602 13,039 13,258 13,293 10,054 FY17 FY18 FY19 FY
Slide 48: Revenue Analysis - Domestic Vs. Exports
Revenue Analysis - Domestic Vs. Exports FY20 FY21 Sales Sales 26% 31% 69% 74% Export Domestic Export Domestic 48
Slide 49: Profit & Loss Statements
Profit & Loss Statements Particulars (Rs. Cr.) Q4FY21 Q4FY20 YoY % Q3FY21 QoQ % FY21 FY20 YoY % Revenue 109.8 79.6 37.9% 105.5 4.0% 360.6 336.0 7.3% Raw Material 63.2 43.9 64.5 215.3 197.9 Employee Expenses 10.1 6.9 9.0 34.2 26.0 Other Expenses* 16.8 13.6 13.2 51.6 54.1 Other Income 2.4 -0.2 0.0 2.6
Slide 50: Balance Sheet
Balance Sheet Particulars in (Rs. Cr.) Mar-21 Mar-20 Particulars (Rs. Cr.) Mar-21 Mar-20 Assets Equity & Liabilities Non-current Assets 290.2 220.9 Equity 181.9 159.4 Fixed Assets Share Capital 8.3 8.3 Property Plant & Equipment 220.9 154.9 Other Equity 173.5 151.1 Capital WIP 23.1 37.2 Non-Current
Slide 51: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Cr.) FY21 FY20 PBT 29.9 30.7 Adjustments 31.2 29.7 Operating profit before working capital changes 61.1 60.4 Changes in working capital -32.6 14.6 Cash generated from operations 28.5 75.0 Direct taxes paid (net of refund) -6.0 -9.0 Net Cash from Operating Activit
Slide 52: Delivering PROFITABLE GROWTH
Delivering PROFITABLE GROWTH Revenue (Rs. Crs.) EBITDA (Rs. Crs.) +10% +9% 338 361 59 62 318 336 55 54 ❑ Revenue growth has 246 44 been aided by growth in business across verticals especially the Healthcare & Toy FY17* FY18* FY19* FY20 FY21 FY17* FY18* FY19* FY20 FY21 segment; we have added new SKUs
Slide 53: With sustainable MARGIN Profile and disciplined use of capital
With sustainable MARGIN Profile and disciplined use of capital… Margins (%) 20% ❑ Better Product mix and 17.4% 17.6% 17.2% economies of scale on account of 18% 17.9% raw materials have led to 16% 16.1% improvement in margin profile 14% from FY16 to FY21 12% 10.8% ❑ FY19 margin was profile impacted 1
Slide 54: DISCIPLINED use of Capital
DISCIPLINED use of Capital ROCE (%) ROE (%) 19.6 19.2 17.7 17.8 16.9 15.7 15.8 15.0 14.2 12.9 FY17* FY18* FY19* FY20* FY21* FY17* FY18* FY19* FY20* FY21* *As per IndAS 54
Slide 55: Growth Along With Low Leverage
Growth Along With Low Leverage Total Debt : Equity (x) Long Term Debt : Equity (x) Total Debt : EBITDA (x) 1.1 0.7 3.2 0.9 0.9 0.9 2.4 0.5 2.2 1.9 0.6 1.6 0.3 0.2 0.2 FY17* FY18* FY19* FY20* FY21* FY17* FY18* FY19* FY20* FY21* FY17* FY18* FY19* FY20* FY21* ❑ The growth in Business has been achieved
Slide 56: Strong Focus on Improving Our Key Metrics
Strong Focus on Improving Our Key Metrics Fixed Asset Turnover (X) FCFF to EBITDA (%) 3.0 87 88 81 2.5 73 2.3 2.2 60 1.6 FY17* FY18* FY19* FY20* FY21* FY17* FY18* FY19* FY20* FY21* ❑ The Fixed Asset Turnover has been inching up despite continuous capex (barring FY19) on back of improving utilization
Slide 57: Contact
Contact Company : Investor Relations Advisors : Shaily Engineering Plastics Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L51900GJ1980PLC065554 CIN - U74140MH2010PTC204285 Mr. Sanjay Shah, Chief Strategy Officer Mr. Shogun Jain/ Ms. Akashi Modi sanjay@shaily.com shogun.jain@sgapl.net / akashi.modi@
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