Astral Limited · NSE:ASTRAL
Astral — Investor Presentation (May 2021)
71 slides from Astral's investor presentation, May 2021
Slide 1: Build. Sustain. Grow. Investor Presentation May 2021
Build. Sustain. Grow. Investor Presentation May 2021
Slide 2: Operating in Four High Growth Categories
OPERATING IN FOUR HIGH GROWTH CATEGORIES
Slide 3: Corporate Structure
CORPORATE STRUCTURE *Winding up of business has been initiated and will be completed in next few quarters.
Slide 4: Astral the Trendsetter
ASTRAL THE TRENDSETTER A, ASTRAL First to introduce CPVC Two water tanks mfg. facilities pipes in India and third is under construction Three adhesives mfg. facilities in India, one in UK and one in USA Introduced countless innovations in pipes category Offers the widest range of Se known for world-
Slide 5: Astral Journey
ASTRAL JOURNEY 1999 First to introduce CPVC in India i Dholka Plant Commissioned ‘Santej Plant = Commissioned i? © 2004 First to launch lead-free uPVC ° piping system 1996" in India | Astral Incorporated e 2009 | 2007 le 2013 | — coisas’ | 2016 2016 | Enters the Fortune India ° smaeweccapzi Bones a
Slide 6: Astral – Vision and Values
ASTRAL - VISION AND VALUES A ASTRAL Safety Y Strive to prevent accidents, injuries, and illness at work. Provide products that meet the highest safety standards. AS Excellence Be trendsetters in the industry by delivering exceptional performance. Deliver quality products and services to our customer
Slide 7: Astral at a Glance
ASTRAL AT A GLANCE A ASTRAL 1996, Astral Incorporated Capacity (Pipes + Water Tanks) ‘ 92,176 M.T. PA Production ., COED Capacity (adhesives a sealants) -s 2,57,946 M.T. PA Production : &> 6 Manufacturing Plants (Pipes) 5 Manufacturing Plants (Adhesives & Sealants) 2 Manufacturing Plants (Water Tank
Slide 8: Awards and Recognition – Astral Pipes
AWARDS AND RECOGNITION – ASTRAL PIPES
Slide 9: Astral – The Torch Bearer in the Pipes Category
ASTRAL – THE TORCH BEARER IN THE PIPES CATEGORY
Slide 10: Astral Pipes - Core Competencies
ASTRAL PIPES - CORE COMPETENCIES 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 11: Astral - Pipes & Water Tanks Manufacturing Units
ASTRAL - PIPES & WATER TANKS MANUFACTURING UNITS
Slide 12: Astral – Adhesives & Sealants Manufacturing Units
ASTRAL – ADHESIVES & SEALANTS MANUFACTURING UNITS
Slide 13: Upcoming Plants – Astral Pipes
UPCOMING PLANTS – ASTRAL PIPES
Slide 14: Pipes Plant at Cuttack to Be Operational by Sept. 2021
PIPES PLANT AT CUTTACK TO BE OPERATIONAL BY SEPT. 2021
Slide 15: Astral Manufacturing Facilities
ASTRAL MANUFACTURING FACILITIES
Slide 16: Astral's Pan India Presence
ASTRAL’S PAN INDIA PRESENCE A. ASTRAL ll Pipes - Plants ™ Adhesives & Sealants @ Pipes - Depots A Adhesives & Sealants @ Pipes - Corporate Office = Adhesives & Sealants @ Pipes - Branch Offices A Adhesives & Sealants @ Water Tanks - Plants - Plants - Depots - Corporate Office - Branch Offices
Slide 17: Astral Pipes Products at a Glance
ASTRAL PIPES PRODUCTS AT A GLANCE
Slide 18: Astral Pipes & Water Tanks Products at a Glance
ASTRAL PIPES & WATER TANKS PRODUCTS AT A GLANCE
Slide 19: Astral Adhesives & Sealants Products at a Glance
ASTRAL ADHESIVES & SEALANTS PRODUCTS AT A GLANCE
Slide 20: Astral Adhesives & Sealants Products at a Glance
ASTRAL ADHESIVES & SEALANTS PRODUCTS AT A GLANCE
Slide 21: New Product Launch – Astral Water Tanks
NEW PRODUCT LAUNCH – ASTRAL WATER TANKS WIDE RANGE OF PRODUCT OFFERING 500L - 700L - 1000L - 1500L - 2000L - 3000L - 5000L
Slide 22: New Product Launch – Astral Multi-Pro
NEW PRODUCT LAUNCH – ASTRAL MULTI-PRO
Slide 23: New Product Launch - Sarita Water Tanks by Astral
NEW PRODUCT LAUNCH - SARITA WATER TANKS BY ASTRAL In the year 2020, Astral acquired Sarita - Aurangabad based a trusted brand name with decades of experience and expertise in manufacturing water tanks. Storage Capacity: 200L - 10,000L Product Range: Vertical - Loft
Slide 24: New Product Launch - Astral Adhesives
NEW PRODUCT LAUNCH - ASTRAL ADHESIVES
Slide 25: New Product Launch – Astral Adhesives
NEW PRODUCT LAUNCH – ASTRAL ADHESIVES
Slide 26: Astral Pipes - Loyalty Program
ASTRAL PIPES - LOYALTY PROGRAM An unique Loyalty Program for plumbers and dealers across l the country The plumbers and dealers can accumulate points based on their purchases of Astral Pipe products and redeem those points to get attractive rewards like appliances, bike, car etc.
Slide 27: Branding and Communications – Astral Pipes
BRANDING AND COMMUNICATIONS – ASTRAL PIPES Ranveer Singh, the new face of Astral Pipes – India’s most trusted pipe Astral Pipes has been awarded as The Most Trusted Pipe Brand by TRA Research for 2019 and 2020. This consumer trust is a result of consistent quality and product innovations and hence,
Slide 28: Branding and Communications – Astral Pipes
BRANDING AND COMMUNICATIONS – ASTRAL PIPES • Astral Pipes Co- Sponsored three IPL Teams in 2020 edition. • Astral Pipes placed branding on jersey sleeve with respect to MI and KKR and on RCB helmet/cap. • IPL 2020 had historically highest viewership and benefitted our brand hugely.
Slide 29: Branding and Communications – Astral Pipes
BRANDING AND COMMUNICATIONS – ASTRAL PIPES Out of the four teams sponsored by Astral, Mumbai Indians and Delhi Capitals reached the Finals and MI became the Champions.
Slide 30: Astral Adhesives - Branding and Communications
ASTRAL ADHESIVES - BRANDING AND COMMUNICATIONS • Astral Adhesives co- sponsored Delhi Capitals and took BondTite branding on jersey sleeve. • The team went on to reach the IPL 2020 finals • Executed successful Astral Adhesives online promotional co-sponsored campaign for Mirzapur 2 Delhi Capitals &
Slide 31: Seeking Growth, the ESG Way
SEEKING GROWTH, THE ESG WAY A, ASTRAL Completed a consolidated 2,414 kWp solar roof top panel at our four manufacturing locations YW? Two manufacturing locations at OW oss. Santej and Dholka are using wind J energy through open Access © Substantial increase in investment for energy conservation to I
Slide 32: Seeking Growth, the ESG Way
SEEKING GROWTH, THE ESG WAY A, ASTRAL 4% increase in headcount £ of women employees a4 & 13% increase in total headcount of permanent employees Financial aid in Covid-19 situation Gi to support plumber community Launched a Sanitizer Resi Shield to help curb the Covid-19 pandemic £4 17% growth in CSR
Slide 33: Covid-19 – Response and Preparedness
COVID 19 – RESPONSE AND PREPAREDNESS Village-Hiwali, Dist-Nasik, Maharashtra. Facing acute water scarcity every summer. Astral Foundation facilitated Well Facilitated Samved, Shalby deepening and installing 2.7 Km and Global Hospitals with pipeline to fetch water to the BIPAP, Ventilators and villag
Slide 34: Covid-19 – Response and Preparedness
COVID 19 – RESPONSE AND PREPAREDNESS • Distributed PayTM vouchers to needy plumbers during the pandemic • Sponsored shop sanitizing for channel partners • Distributed masks and sanitizers to the channel partners • Provided PPE kits to CIMS foundation
Slide 35: Covid-19 – Response and Preparedness
COVID 19 – RESPONSE AND PREPAREDNESS Covid-19 vaccination camps organized at Astral Pipes and Adhesives manufacturing units
Slide 36: CSR Initiative – Water Pipe Line Project Hiwali
CSR INITIATIVE – WATER PIPE LINE PROJECT HIWALI Water Pipeline for Village-Hiwali, Dist-Nasik, Maharashtra. This village faces acute water scarcity every summer. Astral Foundation facilitated Well deepening, pumps, storage and installation of 2.7 Km pipeline to fetch water to the village.
Slide 37: CSR Initiatives - Health
CSR INITIATIVES - HEALTH Facilitated an Providing ambulance nutritional under biscuits to Aarogyam pregnant project to women under District Health Aarogyam Department project Healthy Organized mother consultation healthy baby camp for project - children providing suffering from medical aid to type-1
Slide 38: CSR Initiatives - Health
CSR INITIATIVES - HEALTH Providing Congenital sanitary pads deformity to adolescent corrective girls without surgery camp any cost Dead body van Senior citizen facilitated to cataract AMC for surgery community camp health
Slide 39: CSR Initiatives - Education
CSR INITIATIVES - EDUCATION Smart Class set Supported 123 up provided students for for education scholarship and training to and further various studies institutes Smart Class Renovation of set up for old buildings differently of abled students Angan wadi
Slide 40: CSR Initiatives – Wild Life
CSR INITIATIVES – WILD LIFE Pipeline project using solar Solar pumps powered water pumps to move installation for rain water up so as providing water to maintain water to wildlife at holes for the various places wildlife Project for Rescue and mitigating inter- rehabilitation species disease of disp
Slide 41: CSR Initiatives
CSR INITIATIVES Facilitated with Solar water patrolling heaters vehicles for the provided to old forest guards age homes Vehicle and health care Electrification facilities of camps of provided to anti-poaching orphan guards children living in Shishu Gruh
Slide 42: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Contribution to Brihan Mumbai licensed plumber association for medical and educational aid to the needy people Supported residential doctors of SVP Hospital by providing 100 stethoscopes Provided day-to-day essentials to the home for mentally challenged girls
Slide 43: Financial Highlights
FINANCIAL falleial Mela ts
Slide 44: Industry Outlook - Pipes
INDUSTRY OUTLOOK - PIPES Industry consolidation is likely to consolidate post second Covid-19 wave Regional unorganized players to continue to bleed more Govt. spending under various schemes such a Jal-Se-Nal , low cost housing scheme etc. will spend sizeable amount on pipe installations Pol
Slide 45: Industry Outlook Adhesives & Sealants
INDUSTRY OUTLOOK ADHESIVES & SEALANTS Industry consolidation is likely to consolidate post second Covid-19 wave Regional unorganized players to continue to loose market share Covid-19 second wave will give support to pent up demand due to lock down Higher chemical prices to support financial
Slide 46: Astral Pipes - Revenue Outlook for Next 5 Years
ASTRAL PIPES - REVENUE OUTLOOK FOR NEXT 5 YEARS • Pipes business is likely to double its revenue in next 5 years 1. Overall Industry growth of 9% - 10% 2. Shift from Unorganized to organized sector 3. Higher growth from recently launched products 4. New product launches 5. Decentralization of manufa
Slide 47: Astral - Adhesives Revenue Outlook for Next 5 Years
ASTRAL - ADHESIVES REVENUE OUTLOOK FOR NEXT 5 YEARS Adhesives business is likely to double its revenue in next 4-5 years 1. Overall Industry growth of double digit 2. Shift from unorganized to organized sector 3. Higher growth from recently launched products 4. New product launches 5. Entering into
Slide 48: Astral Pipes - EBIDTA Margin Outlook
ASTRAL PIPES - EBIDTA MARGIN OUTLOOK Decentralization of manufacturing facilities Value added products like Valves / Multi Pro / Fire Pro /Silencio etc. Economies of Scale – Operating leverage Better product mix Based on above margin levers, our EBIDTA Margins to remain on higher teens
Slide 49: Option Value
OPTION VALUE • Huge cash on book Rs. 476 Cr. (Rs.1,000 Cr. by FY-23) – Open opportunity for sizeable acquisition or Green Field Projects • Recently launch products (Tanks / DWC pipes / Multi Pro / Fire Pro / Silencio / Agri etc.) currently accounting for very low share of revenue which can be scaled
Slide 50: Option Value
OPTION VALUE We are likely to launch a few new products in Pipes segment in next 12-18 months time which can generate additional revenue of Rs.300 Cr. over next 5 years time We are also going to launch a few new products in Adhesive & Sealants segment under different chemistry which together wit
Slide 51: Highlights of Q4 (INR Mn.)
HIGHLIGHTS OF Q4 (INR MN.) REVENUE FROM OPERATION Pipes Business Adhesive Business Consolidated 2,333 11,278 9,097 5,057 1,346 6,289 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 EBIDTA Pipes Business Adhesive Business Consolidated 2,178 414 2,592 968 166 1,121 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 F
Slide 52: Pipes Business (INR Mn.)
PIPES BUSINESS (INR MN.) REVENUE FROM OPERATION EBIDTA 5,552 24,863 20,428 19,157 3,806 15,819 3,154 14,767 2,477 2,153 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Sales of FY 18 is regrouped in compliance with Ind AS 115. During the year 18-19, Rex Poly extrusion is amalgamated with the compa
Slide 53: Pipes Business (INR Mn.)
PIPES BUSINESS (INR MN.) PBT (BEFORE EXCEPTIONAL ITEM) PAT 3,269 4,514 2,008 2,570 2,202 1,414 1,836 1,190 1,592 1,066 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018.
Slide 54: Pipes Business (INR Mn. except EPS)
PIPES BUSINESS (INR MN. EXCEPT EPS) EPS (IN INR) CASH PROFIT 4,231 16.27 2,907 10.00 2,085 7.05 1,657 5.96 1,484 5.34 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018. EPS for FY 17 to FY 20 have been adj
Slide 55: Pipes Business - Capacity, Production & Sales Tonnage
PIPES BUSINESS - CAPACITY , PRODUCTION & SALES TONNAGE CAPACITY UTILIZATION (IN ‘000 MT) SALES (IN ‘000 MT) 257.95 238.73 205.29 136.59 132.20 122.99 152.10 103.99 137.71 135.64 130.34 89.45 120.82 105.75 87.69 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 During the year 18-19, Rex Poly extrusi
Slide 56: Pipes Business – Working Capital (in Days)
PIPES BUSINESS – WORKING CAPITAL (IN DAYS) Inventory No. of days Debtors No. of days Net Working Capital No. of days 75 66 61 55 57 53 51 43 49 47 38 27 26 25 18 FY17 FY18 FY19 FY20 FY21 In FY20 Inventory days are higher than normal days mainly because of sudden lock down announced by Govt. Due to C
Slide 57: Pipes Business – Gross Profit and EBIDTA Margin
PIPES BUSINESS – GROSS PROFIT AND EBIDTA MARGIN 36.5% 37.5% 33.1% 31.4% 28.8% 22.3% 18.6% 15.7% 16.5% 14.6% FY17 FY18 FY19 FY20 FY21 GROSS PROFIT MARGIN EBIDTA MARGIN
Slide 58: Adhesives Business Summary of Subsidiaries (INR Mn.)
ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) REVENUE FROM OPERATION EBIDTA 7,345 1,137 6,347 5,830 856 5,265 816 765 4,584 586 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Sales of FY 18 is regrouped in compliance with Ind AS 115.
Slide 59: Adhesives Business – Gross Profit and EBIDTA Margin
ADHESIVES BUSINESS – GROSS PROFIT AND EBIDTA MARGIN 40.9% 36.4% 36.5% 37.4% 35.7% 15.5% 15.5% 12.8% 13.5% 13.1% FY17 FY18 FY19 FY20 FY21 GROSS PROFIT MARGIN EBIDTA MARGIN
Slide 60: Group Revenue Breakup
GROUP REVENUE BREAKUP FY 20-21 FY 19-20 Pipes Pipes 76% 77% Adhesives Adhesives 24% 23%
Slide 61: Consolidated (INR Mn.)
CONSOLIDATED (INR MN.) REVENUE FROM OPERATION EBIDTA 31,763 6,626 25,073 25,779 4,534 20,729 3,967 18,947 3,268 2,703 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Sales of FY 18 is regrouped in compliance with Ind AS 115.
Slide 62: Consolidated (INR Mn.)
CONSOLIDATED (INR MN.) PBT PAT 5,330 4,082 2,496 3,061 2,834 2,481 1,973 1,757 2,007 1,446 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Slide 63: Consolidated (INR Mn. except EPS)
CONSOLIDATED (INR MN. EXCEPT EPS) EPS CASH PROFIT 5,247 20.13 3,575 12.34 2,787 9.76 2,328 8.76 1,948 7.24 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EPS for FY 17 to FY 20 have been adjusted for bonus shares issued in current period.
Slide 64: Group Working Capital (in Days)
GROUP WORKING CAPITAL (IN DAYS) Inventory No. of days Debtors No. of days Net Working Capital No. of days 77 65 63 58 62 55 56 54 54 52 41 49 32 32 27 FY17 FY18 FY19 FY20 FY21 Inventory days are higher than normal days in Mar 20, mainly because of sudden lock down announced by Govt. Due to Covid-19
Slide 65: Consolidated – Gross Profit and EBIDTA Margin
CONSOLIDATED– GROSS PROFIT AND EBIDTA MARGIN 38.1% 38.0% 33.3% 34.3% 31.2% 20.9% 17.6% 15.8% 15.8% 14.3% FY17 FY18 FY19 FY20 FY21 GROSS PROFIT MARGIN EBIDTA MARGIN
Slide 66: Net Debt / Equity Ratio
NET DEBT / EQUITY RATIO PIPES BUSINESS 0.16 Net cash Rs. 2,961 Mn 0.08 0.12 0.04 0.00 FY17 FY18 FY19 FY20 FY21 CONSOLIDATED 0.25 Net cash Rs 4,094 Mn 0.14 0.14 0.04 0.00 FY17 FY18 FY19 FY20 FY21
Slide 67: Market Opportunity vs Astral Market Share (Value in Crores)
MARKET OPPORTUNITY VS ASTRAL MARKET SHARE (VALUE IN CRORES) Plastic and Infra pipes Water tanks Consolidated 2,482 4 7.52% 0.08% 3,176 4.74% 33,000 5,000 92.48% 99.92% Adhesives, sealants and Adhesives, sealants and construction material (India) construction material (UK) 67,000 477 258 3.18% 1.84%
Slide 68: April 21 Performance (in Value Terms %)
APRIL 21 PERFORMANCE (IN VALUE TERMS %) Pipes Business Adhesive Business 151% 154% 100% 100% 32% 7% Apr-19 Apr-20 Apr-21 Apr-19 Apr-20 Apr-21 Consolidated Business 154% 100% 13% Apr-19 Apr-20 Apr-21
Slide 69: Key Take Away
KEY TAKE AWAY • Demand scenario is good in the Industries (Both Pipes & Adhesives) • Regional unorganized players continue to loose market share • Recently launched products continue to give good growth • Plastic storage tank opportunity is 5,000 Cr. in India. Astral is just starting its journey wit
Slide 70: Disclaimer
DISCLAIMER The information in this presentation has been prepared for use in presentations by Astral Limited (the “Company”) for information purposes only and does not constitute, or should be regarded as, or form part of any offer, invitation, inducement or advertisement to sell or issue, or any so
Slide 71: Thank you
A ASTRAL Thank you