Hariom Pipe Industries Ltd. · NSE:HARIOMPIPE
Hariom Pipe Industries — Investor Presentation (March 2024)
24 slides from Hariom Pipe Industries's investor presentation, March 2024
Slide 1: Hariom Pipe Industries Limited Investor Presentation March 2024
HARIOM PIPE INDUSTRIES LIMITED INVESTOR PRESENTATION March 2024
Slide 2: Vision, Mission and Goal
Vision, Mission and Goal VISION GOAL To be a benchmark in steel pipe industry To reach Rs 2,500 crore for high quality products, customer trust and inclusive growth in Revenue by FY26 without compromising on profitability MISSION To grow sustainably through geographical and value-added product portf
Slide 3: What defines us: A legacy built over 50+ years
What defines us A legacy built over 50+ years From our roots in steel pipes & tubes trading to becoming a producer of premium steel pipes and tubes products, we are defined by our…. • Deep understanding of customer requirements, geography-wise • Persistence & strength in backward integration • Pench
Slide 4: Steel pipe industry is growing – And we are in a strong position
Where we are today Steel pipe industry is growing – And we are in a strong position Our strengths Translating into… One of the most integrated producers of steel pipes with a Higher margin; Low volatility growing basket of value-added products Cold-Rolled and Galvanized steel pipe products to enhanc
Slide 5: 6 strategic pillars underpin our future performance
How we are creating value 6 strategic pillars underpin our future performance 1 2 3 Lead in value- Focused Superior added products expansion customer (Backward, Forward experience and Geographical) 4 5 6 Inclusive Focus on Generating free stakeholder profitability cash flow management 5
Slide 6: Capacity enhancements upgrading our product basket
Pillar 1 – Lead in value-added products Capacity enhancements upgrading our product basket Scaffolding Steel structures Greenhouse frameworks Hoarding structures Auto components Steel furniture 6
Slide 7: Capacity enhancements upgrading our product basket
Pillar 1 – Lead in value-added products Capacity enhancements upgrading our product basket Commercial pipes HVAC ducts Bus body Fencing Staircase Metro stations Crash guards 7
Slide 8: CR Tandem Mill adds new avenues for growth
Pillar 1 – Lead in value-added products CR Tandem Mill adds new avenues for growth • Commissioned state-of-the-art CR Tandem mill in FY24 at the Mahabubnagar Plant, TS • Tandem mill has 3 cold rolling processes to reduce thickness variation to achieve high quality • Produces pipes of thickness as lo
Slide 9: Plan to expand across India while increasing production
Pillar 2 – Focused expansion Plan to expand across India while increasing production Expanded capacity to 701kt, 2.3x since FY22 • GP/GC capacity of 300kt • MS Pipe capacity of 132kt • Focus on production; no growth capex planned Strengthened our Sales and Marketing team; Expanding Building a pan-In
Slide 10: Modern facilities driving sustainable production
Pillar 2 – Focused expansion Modern facilities driving sustainable production Pickling line CGL Slitting Line GP Stockyard 10
Slide 11: Evolving the customer experience
Pillar 3 – Superior Customer experience Evolving the customer experience One stop shop, Meet stringent Loyalty aimed at Enabled by product basket quality standards building and ERP systems for real-time approach of our industries retaining dealers order intimation and billing Comprehensive steel Aut
Slide 12: Aiming for inclusive growth
Pillar 4 – Inclusive stakeholder management Aiming for inclusive growth Customers Dealers Employees • New products • Distribution • Upskilling through • Wider dealer network opportunity training and • Quality standards • Cost-effective solutions development • 24x7 availability • Channel financing •
Slide 13: Cohesive plan to increase EBITDA margin
Pillar 5 – Focus on profitability Cohesive plan to increase EBITDA margin Key levers: Optimised operations Recycled Steel Value added products • Fully integrated MS Billets Hot Rolled MS Pipes and Scaffolding production of MS Strips Tubes Pipes Iron Ore* Sponge Iron Galvanised Coil Galvanised Pipe •
Slide 14: Operating Cash Flow expected to improve progressively
Pillar 6 – Generating free cash flow Operating Cash Flow expected to improve progressively Key levers to achieve higher cash flows Ramp-up Establish Rationalize Improve Prudent Positive Production in Market for RM and FG EBITDA Capital OCF and FCF new units GP/GC and inventories margin allocation an
Slide 15: Highly focused management driven towards value creation
Management Highly focused management driven towards value creation Key Management Over 50+ years of experience in steel pipes industry Young management team A single-minded focus on business Rupesh Kumar Gupta Shailesh Gupta Managing Director Whole Time Director Mr Rupesh Gupta has led the Mr Shaile
Slide 16: Sales and profit margin are expected to grow significantly
Projecting strong financial profile Sales and profit margin are expected to grow significantly • Key drivers include Sales (MT) EBITDA per MT (INR) higher value-added product sales and 8,928 1,38,567 supply chain 7,585 7,260 efficiencies 1,09,085 5,329 5,759 • Economies of scale and geographical 60,
Slide 17: On track to achieve our FY26 goal
Projecting strong financial profile On track to achieve our FY26 goal • Projected 3-year CAGR of 57% Net Revenue, INR Crore EBITDA, INR Crore 822 • Enhanced capacity 100.6 for rapid growth 644 82.7 • Expanded our 431 58.8 portfolio and footprint 254 35.0 23.9 161 • Emphasis on cost efficiency FY20 F
Slide 18: Plan to be LT debt-free by FY27
Projecting strong financial profile Plan to be LT debt-free by FY27 • Debt at peak level; deleveraging over next 2-3years Particulars (Rs. Crore) FY20 FY21 FY22 FY23 9MFY24 Total outside liabilities (ex deferred tax) 89 99 112 330 411 • LT debt-free by FY27 Long-term Debt 25 43 43 146 153 • Raised R
Slide 19: Safe harbour / Disclaimer
Safe harbour / Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by “Hariom Pipe Industries Limited” (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 20: Thank You
Thank You Amitabha Bhattacharya HARIOM PIPE INDUSTRIES LIMITED cfo@hariompipes.com
Slide 21: Appendix
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Slide 22: Progressively adding capacity of value-added products
Key Milestones Progressively adding capacity of value-added products 2020 2022 Acquisition of Sponge Iron Unit situated at Anantapur, A.P., with a capacity of 36,000 MTPA to achieve cost efficiency and better control of the entire value chain Increased Scaffolding Unit capacity to 5000 MTPA 2019
Slide 23: Modern facilities driving efficient and sustainable production
Manufacturing Modern facilities driving efficient and sustainable production Location Products and Installed Capacity Capacity in FY22, Capacity in FY23, Current Capacity, Product MTPA MTPA MTPA M.S. Billets 95,832 1,04,232 1,04,232 HR Strips 84,000 1,24,000 1,24,000 Mahabubnagar, Telangana Integrat
Slide 24: Operational & financial performance
Q3 FY24 summary Operational & financial performance • GP/GC units ramping up; Q3FY24 Q3FY23 % Chg YoY Q2FY24 % Chg QoQ 9M FY24 9M FY23 % Chg YoY maintained a high share of Net Production, MT 53,735 22,528 139 56,552 -5 1,53,840 72,645 112 VAP Sales, MT 48,843 23,538 108 50,435 -3 1,38,567 69,205 100
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