Tinna Rubber & Infrastructure Limited · NSE:TINNARUBR
Tinna Rubber & Infrastructure — Q2 FY25 Earnings Presentation
54 slides from Tinna Rubber & Infrastructure's earnings presentation, Nov 12, 2024
Slide 1: Cover letter to stock exchanges
Date: November 12, 2024 To, To, The Manager (Deptt. of Corporate Services) The Secretary, BSE Limited Calcutta Stock Exchange Limited Phiroze Jeejeebhoy Towers, 7, Lyons Range, Dalal Street, Mumbai-400001. Kolkata-700001 Scrip Code: 530475 ISIN: INE015C01016 SUBJECT: INVESTOR AND EARNINGS PRESENTATI
Slide 2: Investor & Earnings Presentation Q2/H1-FY25
TINNA RUBBER AND INFRASTRUCTURE LIMITED INVESTOR & EARNINGS PRESENTATION Q2/H1 -FY25 1
Slide 3: Disclaimer
DISCLAIMER No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Table of Contents
TABLE OF CONTENTS 04 - 11 01 Performance Highlights Q2/H1FY25 02 Company Overview 12 - 18 19 - 25 03 Segment Wise Sales and Growth Drivers 26 - 29 04 Strategic Action Plan 30 - 36 05 Update on Projects 37 - 44 06 Financial Performance 45 - 49 07 ESG 50 - 52 08 TP Buildtech Pvt. Ltd - Update
Slide 5: Performance Highlights Q2/H1-FY25
PERFORMANCE HIGHLIGHTS Q2/H1-FY25 4
Slide 6: Q2FY25 Quarterly Highlights – Standalone
Q2FY25 QUARTERLY HIGHLIGHTS – Standalone Revenue from Operation 19%+ 46%+ Volume (In MT) Tyre processed in tons (INR Mn) Volume Revenue 34,412* 1,360 32,960 1,171 Y-o-Y Y-o-Y 27,623 804 40%+ 40%+ EBITDA PAT Q2-FY24 Q1-FY25 Q2-FY25 Q2-FY24 Q1-FY25 Q2-FY25 Y-o-Y Y-o-Y EBITDA (INR Mn) & PAT (INR Mn) &
Slide 7: H1FY25 Half-Yearly Highlights – Standalone
H1FY25 HALF-YEARLY HIGHLIGHTS – Standalone Revenue from Operation 25%+ 57%+ Volume (In MT) Tyre processed in tons (INR Mn) Volume Revenue 2,530 67,372 Y-o-Y Y-o-Y 53,964 1,611 64%+ 71%+ EBITDA PAT H1FY24 H1FY25 H1FY24 H1FY25 Y-o-Y Y-o-Y EBITDA (INR Mn) & PAT (INR Mn) & Diluted EPS (INR) 60.00% 400 6
Slide 8: Half-Yearly Key Segment Performance – Infrastructure & Industrial
HALF-YEARLY KEY SEGMENT PERFORMANCE–Infrastructure & Industrial INFRASTRUCTURE SEGMENT Infrastructure Segment H1FY25 experienced significant Volume Growth of 52% and Revenue Growth of 86% over Revenue (INR Mn) H1FY24 1,100 60% volume growth in CRMB processing at Mobile Plants in H1FY25 on YoY basis
Slide 9: Half-Yearly Key Segment Performance – Consumer & Steel
HALF-YEARLY KEY SEGMENT PERFORMANCE – Consumer & Steel CONSUMER SEGMENT Consumer Segment Revenue (INR Mn) 144 154 Consumer Segment experienced strong volume growth of 85% in H1FY25 over H1FY24 Sales to Consumer Segment is stable and will remain our focus area 7% H1FY24 H1FY25 STEEL SEGMENT Steel Seg
Slide 10: Q2/H1-FY25 Key Operational Highlights
Q2/H1-FY25 KEY OPERATIONAL HIGHLIGHTS OPERATIONS H1FY25 experienced 25% growth in Tyre Crushing over H1FY24 Company has qualified and registered with ECHA for export of REACH compliant products to European Union Company has qualified for SA 8000 Certification TRIL has doubled its MRP capacity from 5
Slide 11: Management Analysis on Operating Margin
Q2/H1-FY25 MANAGEMENT ANALYSIS ON OPERATING MARGIN Revenue has grown by 58% in H1FY25 on YoY basis. Cost of material consumed is up which has resulted in drop in Gross Margin on YoY basis. Reasons for increase in cost of raw material are - • Increase in raw material prices • Impact of Red Sea Disrup
Slide 12: An Update on Capex
Q2/H1-FY25 AN UPDATE ON CAPEX An approx. INR 48 crores has been planned towards the CAPEX expenditure in FY 25. An approx. INR 33 crores have already been spent and work is progressing, in addition, approx INR 4 crores is committed for ongoing 7575 work. Company is seriously evaluating other avenues
Slide 13: Company Overview
Caring for Environment COMPANY OVERVIEW
Slide 14: One of Asia's Largest Recycler of End of Life Tyres
ONE OF ASIA’S LARGEST RECYCLER OF “END OF LIFE TYRES (ELT)” 41% 53% 17% 3 Years 3 Years Revenue CAGR EBITDA CAGR EBITDA Margin 45+ Years of Industry Experience; (FY21-FY24) (FY21-FY24) (FY24) Founded in 1977 6 Recycling Plants (India - 5; Oman - 1) 11% 28% 4 Business Segments – Infrastructure, Indus
Slide 15: Journey So Far
JOURNEY SO FAR Group founded by Introduced light Commenced export Pioneered the Largest CRMB Set up waste Tyre Became the Completed Mr.Bhupinder Kumar weight rubber of Thermo Plastic concept of producer & entered recycling plant at largest acquisition of Sekhri. slippers Rubber Compounds rubberised
Slide 16: Waste ELT to Wealth
WASTEELT TO :WEALTH WASTE TO WEALT 400%VALUE ADDITION TO WASTE 15
Slide 17: Segment Wise Revenue Sharing Ratio for FY24
SEGMENT WISE REVENUE SHARING RATIO FOR FY24 INFRASTRUCTURE INDUSTRIAL STEEL CONSUMER 52% 25% 13% 10% Roads Bitumen Roads Conveyor Belts Steel Abrasives Crumb Gym Tiles Rubber Infill Tyres Steel Scraps Automotive Rubber parts Mats * Company has reported Revenue from Operations of INR 364 Cr. in FY24.
Slide 18: Manufacturing Facilities
MANUFACTURING FACILITIES Source of End of life tyres (Overseas) Panipat Manufacturing facilities Europe (Haryana) Mathura Delhi (Uttar Pradesh) USA Middle Eastern Countries (Headquarters) INDIA OMAN Saham (Al Batnah) Haldia (West Bengal) Varle | Wada South Africa Australlia (Maharashtra) Chile Gummi
Slide 19: Board of Directors
BOARD OF DIRECTORS Mr. Bhupinder Kumar Sekhri Mr. Gaurav Sekhri Mr. Subodh Kumar Sharma Mrs.Bharati Chaturvedi Chairman & Managing Joint Managing Director & Chief Independent Director Director Operating Officer Director Mr. Sanjay Jain Mr. Vaibhav Dange Dr. Krishna Prapoorna Biligiri Independent Ind
Slide 20: Segment Wise Sales and Growth Drivers
SEGMENT WISE SALES AND GROWTH DRIVERS 19
Slide 21: Infrastructure Segment – Product & Sales
INFRASTRUCTURE SEGMENT – PRODUCT & SALES CRUMB RUBBER/ CRUMB RUBBER MODIFIER BITUMEN EMULSION Blend of waste tire rubber, hydrocarbons, Manufactures all grades of Cationic Bitumen and cross-linkers. Emulsions meeting BIS standards. Mixed with bitumen in specific ratios State-of-the-art manufacturing
Slide 22: Infrastructure Segment TAM/Growth Drivers
INFRASTRUCTURE SEGMENT TAM/GROWTH DRIVERS ADDRESSABLE MARKET New Road Construction Speed: 39 kms Per Day POTENTIAL FOR GROWTH Current Modified Bitumen Market: 1,50,000 to 2,00,00 MT (2% of total Bitumen Market) 5X OVER NEXT 2-3 YEARS Potential Market for CRMB: 1 million MT Total Bitumen Market: 8.8
Slide 23: Industrial Segment – Product & Sales
INDUSTRIAL SEGMENT – PRODUCT & SALES MICRONIZED RUBBER POWDER (80-140 MESH) Industrial Segment Sales (In INR Mn) 922 813 Tinna is one of the world's largest MRP producers. 683 600 Utilizes a indigenously developed Ambient Grinding Process for production. With matured application in tyre/conveyor bel
Slide 24: Industrial Segment TAM/Growth Drivers
INDUSTRIAL SEGMENT TAM/GROWTH DRIVERS INDIAN TYRE INDUSTRY Opportunities for Recycled A vital part of Auto Sector, contributes to 3% of India's manufacturing GDP and 0.5% of the Rubber Materials in the Tyre Sector total GDP directly. In 2020, the Indian tyre market reached 177 million units. Expecte
Slide 25: Consumer Segment – Product & Sales
CONSUMER SEGMENT – PRODUCT & SALES Consumer Segment Sales (In INR Mn) COATED RUBBER Crumb (CRC) 367 Coated Rubber Crumb (CRC) replaces virgin rubber compound. Manufactured by treating Crumb Rubber with a 216 215 proprietary mix of chemicals. 154 Ideally suited for low tensile compounds, solid tyres,
Slide 26: Consumer Segment TAM/Growth Drivers
CONSUMER SEGMENT TAM/GROWTH DRIVERS SPORTS TURF RUBBER MATS/RUBBER TILES Sport and playground surfaces to consume a higher Floor mats application segment quantity of crumb rubber due to minimal buffing, using expected to grow rapidly in the forecast Opportunities for Recycled Rubber Material over 30
Slide 27: Strategic Action Plan
Caring for Environment STRATEGIC ACTION PLAN
Slide 28: Vision 2027
VISION 2027 VISION 2027 10 CURRENT 30% + Locations 6 27.6% ROCE Locations ROCE FY24 25% + 26% INR 363 Cr INR 900 Cr Revenue Revenues Revenues Revenue CAGR CAGR FY24 (Last 3 years) 138% 17.25% 33% + Profitability Growth EBITDA 18% (Last 3 years) Margin EBITDA Profitability FY24 Growth Margin OUR PRIO
Slide 29: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 27.6% Target ROCE 30% 22.24% 20.67% ROCE Catalyst 9.94% Growth in Value Added Product Supply Streamlining Working Capital 0.99% Enhanced Industry Dynamics FY20 FY21 FY22 FY23 FY24 28
Slide 30: Capacity Expansion
CAPACITY EXPANSION Tyre Crushing Capacity (MT) 250,000 200,000 150,000 2,50,000 MT PA 100,000 capacity planned by 80,000 FY 2027 72,000 FY22 FY23 FY24 FY25E FY26E FY27E Projected Value E Estimated 29
Slide 31: Update on Projects
• TRIL (PCR TYRE RECYCLING) -VARLE, MH UPDATE ON PROJECTS • GLOBAL RECYCLE -OMAN • TRIL (POLYMERS AND MASTERBATCHES) -PANIPAT , HR 30
Slide 32: Project Update – Varle Plant
PROJECT UPDATE VARLE PLANT– PROGRESS AND MILESTONES TRIL made a capex of INR 440 million to establish a state- of-the-art tyre recycling plant in Varle, Maharashtra. The plant has the capacity to recycle approximately 60,000 MT of passenger radial tyres annually. The plant was commissioned in record
Slide 33: Project Update – Oman Plant
PROJECT UPDATE OMAN PLANT– PROGRESS AND MILESTONES TRIL acquired its maiden overseas facility in Oman in 2023, invested USD 1.5 million, and named it Global Recycle LLC. Global Recycle is the largest operational waste tyre recycling facility in Oman, with a capacity to process 15,000 MT of waste tyr
Slide 34: Project Update – Polymer Composite Business
PROJECT UPDATE POLYMER COMPOSITE (PC) BUSINESS – PROGRESS AND MILESTONES The plant is set up in the existing tyre recycling plant at Panipat. The plant was commissioned and made operational in March 2024. It serves as a pilot plant with a capacity to process 6,000 metric tonnes of plastic/rubber com
Slide 35: Paving Way for 2027 – International Operations
PAVING WAY FOR 2027 – INTERNATIONAL OPERATIONS Oman Saudi Arabia South Africa o Plans to further expand and have o Company has been formed with the o Signed Joint Venture Agreement to applied to the concerned Ministry name Tinna Rubber Arabia LLC to set up Tyre Recycling Plant for allocation of land
Slide 36: Key Competitive Advantages
7 KEY COMPETITIVE ADVANTAGES Exceptional Product Customization and widest possible application of recycled rubber Diversified Customer network Deep Routed procurement network Strategically Well-Placed Manufacturing Facilities at Port locations World's Largest manufacturer of Micronized Rubber Powder
Slide 37: Moats – Securing Our Leadership
7 MOATS-SECURING OUR LEADERSHIP Pan India Presence Diversified Product Sector Agnostic Applications Applications 45 + Long-standing 45+ years Exceptional Product of industry experience Customization Multinational OEM Approvals Procurement Network 36
Slide 38: Financial Performance
FINANCIAL PERFORMANCE For details, refer Financial Reports section 37
Slide 39: Quarterly Consolidated Financial Performance
QUARTERLY CONSOLIDATED FINANCIAL PERFORMANCE Particulars (INR Mn) Q2 – FY25 Q1 – FY25 Q-o-Q Q2 – FY24 Y-o-Y Operational Income 1,176 1,360 -14% 797 48% Total Expenses 985 1,113 -12% 667 48% EBITDA 192 247 -22% 130 47% EBITDA Margins (%) 16.29% 18.14% (185) bps 16.31% (0.2) bps Other Income 4 5 -22%
Slide 40: Half Yearly Consolidated Financial Performance
HALF YEARLY CONSOLIDATED FINANCIAL PERFORMANCE Particulars (INR Mn) H1–FY25 H1-FY24 Y-o-Y Operational Income 2,536 1,602 58% Total Expenses 2,098 1,355 55% EBITDA 438 247 77% EBITDA Margins (%) 17.29% 15.43% 186 bps Other Income 10 6 72% Depreciation 45 29 55% Interest 53 35 53% Share of Profit /los
Slide 41: Historical Consolidated Income Statement
HISTORICAL CONSOLIDATED INCOME STATEMENT Particulars (INR Mn) FY22 FY23 FY24 H1-FY25 Operational Income 2,292 2,954 3,630 2,536 Total Expenses 1,923 2,587 3,004 2,098 EBITDA 369 367 626 438 EBITDA Margins (%) 16.10% 12.42% 17.25% 17.29% Other Income 34 61 13 10 Depreciation 86 71 64 45 Interest 90 7
Slide 42: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET Particulars (INR Mn) FY23 FY24 H1-FY25 Particulars (INR Mn) FY23 FY24 H1-FY25 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 676 1,232 1,381 Share Capital 86 171 171 Capital WIP 3 66 202 Other Equity 874 1,107 1,365 Right of
Slide 43: Historical Financial Performance Charts – P&L Statement
HISTORICAL FINANCIAL PERFORMANCE CHARTS–P&L STATEMENT Revenue From Operations EBITDA (INR Mn) & EBITDA Margins (%) (INR Mn) 3,630 2,954 626 2,292 369 367 16.10% 17.25% 12.42% FY22 FY23 FY24 FY22 FY23 FY24 EBITDA Percentage PAT and Cash Profit (INR Mn) Diluted EPS (INR) 467 23.52 403 289 255 218 12.7
Slide 44: Historical Financial Performance Charts – Balance Sheet
HISTORICAL FINANCIAL PERFORMANCE CHARTS-BALANCE SHEET Net D/E (x) Working Capital (Days) ROE (x) 62 60 40 0.86 31.56% 21.81% 41 0.66 23.65% 0.59 34 27 52 51 47 44 40 30 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Receivable Days Inventories Days Payable Days Fixed Asset Turnover (x) Debt (INR Mn) &
Slide 45: Capital Market Data
CAPITAL MARKET DATA 1 Year Share Price Performance 400% 350% 300% 250% 200% 150% 100% 50% 0% -50% Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Tinna Rubbers & Infra Ltd BSE Price Data (As on 30th September, 2024) Shareholding Pattern Shareholding Pattern (As on
Slide 46: A Holistic Approach to Business: Environment, Social, and Corporate Governance
A HOLISTIC APPROACH TO BUSINESS: ENVIRONMENT, SOCIAL, AND CORPORATE GOVERNANCE 45
Slide 47: Modern Recycling and Recovery for Sustainable Gains
MODERN RECYCLING AND RECOVERY FOR SUSTAINABLE GAINS CIRCULAR ECONOMY MAKE TRIL business is a prime example of success of circular economy model which involves utilizing existing materials and 6 6** products efficiently through recycling and reusing. Recycling Plants MILLION tyres REUSE USE back in c
Slide 48: Building a Better World
BUILDING A BETTER WORLD REVOLUTIONARY INDUSTRY: ACHIEVING 400% VALUE ADDITION TO WASTE CSR INITIATIVES CREATING AWARENESS We take pride in creating awareness We regularly organize medical checkup, blood donation, and hygiene about circular economy and awareness camps. Our CSR initiatives are mainly
Slide 49: Business for a Cause
BUSINESS FOR A CAUSE Chithoornatham Primary School Medical camp conducted by Tinna, gmpd Government of Tamilnadu Education Department, Installation of water cooler unit at nearby village Karambedu, Chennai Chithoornatham - Razapur, Panipat, Haryana Plantation of Vana Uchar Trees in unit and near Don
Slide 50: Nurturing a Culture of Ethics, Accountability & Transparency
NURTURING A CULTURE OF ETHICS, ACCOUNTABILITY & TRANSPARENCY Ethical Business Practices: Our Ongoing Efforts to Cultivate Trust Among Shareholders, Employees, Customers, Suppliers, and Stakeholders through Principles of Strong Corporate Governance, including Integrity, Equity, Transparency, Fairness
Slide 51: TP Buildtech Pvt. Ltd – An Update
TP BUILDTECH PVT. LTD – AN UPDATE COMPANY OVERVIEW STRENGTHS Established in 2012, specializing in Concrete Waterproofing Admixture, Cement Strong presence in Western India. In FY25 ,building Admixture, Superplasticizer Admixture, etc. business in Northern and Eastern India. Manufacturing units in Wa
Slide 52: Financial Performance - YoY
FINANCIAL PERFORMANCE - YoY SALE AND EBITDA 2,500 2,021 EBITDA % has increase from 2,000 Amount in Lakhs 12% to 20% on YoY basis 1,378 1,500 20% Sales has gone up around 47% on YoY basis 1,000 12% 395 500 160 0 Q2 FY 2024 Q2 Provisional FY 2025 Sale (INR) EBITDA (INR) EBITDA Margin (%) 51
Slide 53: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE SALE AND EBITDA 6,402 7,000 6,083 6,000 Amount in Lakhs 4,682 5,000 14% EBITDA 4,000 9% 2,799 7% doubled in 3,000 FY24 3% 2,000 924 435 412 1,000 91 0 FY20-21 FY21-22 FY22-23 FY23-24 Sale (INR) EBITDA (INR) EBITDA Margin (%) 52
Slide 54: Thank You
THANK YOU Investor Relations Contact: Go India Advisors Sana Kapoor :Senior Research Analyst +91 81465 50469 sana@goindiaadvisors.com Sheetal Khanduja: Head – IR Practice +91 97693 64166 sheetal@goindiaadvisors.com 53
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