Pennar Industries Limited · NSE:PENIND
Pennar Industries — Q2 FY2014 Earnings Presentation
28 slides from Pennar Industries's earnings presentation, 2013
Slide 1: Pennar Industries Limited Investor Presentation Q2FY14
Pennar Industries Limited Engineering Excellence Investor Presentation Q2FY14 1
Slide 2: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Pennar Industries Limited and its subsidiary companies (“Pennar”) future
Slide 3: Agenda
Agenda Quarter Performance • Financial Performance 5–7 • New Customers and Products 8 • Business Verticals: Q2FY14 Highlights 9 – 15 o Acquisition of Wayne Burt Petro Chemicals 11 • Continue the move to create an “Engineering Enterprise” 16 • “Bachat Program” Update 17 • Share Price Performance 18 •
Slide 4: Q2FY14 & H1FY14 Quarter Performance
Q2FY14 & H1FY14 Quarter Performance 4
Slide 5: Financial Performance – Consolidated
Financial Performance – Consolidated Q2 FY14 H1 FY14 300 11% 12% 600 11% 12% 250 10% 500 10% 8% 7% 200 7% 8% 400 8% 150 6% 300 6% 260 546 254 238 492 100 4% 200 4% 50 2% 100 2% 0 0% 0 0% Q2FY13 Q1FY14 Q2FY14 H1FY13 H1FY14 Net Revenues (Rs. Crs) EBITDA margins Net Revenues (Rs. Crs) EBITDA margins o
Slide 6: Financial Performance – Standalone
Financial Performance – Standalone Q2 FY14 H1 FY14 250 12% 450 12% 10% 10% 400 10% 10% 200 350 7% 8% 300 7% 8% 150 6% 250 6% 6% 200 417 100 198 192 362 170 4% 150 4% 50 100 2% 2% 50 0 0% 0 0% Q2FY13 Q1FY14 Q2FY14 H1FY13 H1FY14 Net Revenues (Rs. Crs) EBITDA margins Net Revenues (Rs. Crs) EBITDA margi
Slide 7: Segment Performance
Segment Performance Net Revenues (Rs. Crores) and EBITDA margins (%) Steel Products Industrial Components Tubes 140 9.0% 35 32.3 8.0% 18.6 18.4 30.3 118.0 20 8.0% 20.0% 7.0% 120 110.7 30 102.0 7.0% 7.7% 7.0% 18.4% 6.0% 100 25 15 6.0% 15.0% 21.7 6.6% 11.9 5.8% 5.0% 80 5.0% 20 5.2% 12.8% 4.8% 4.0% 60
Slide 8: New Customers and New Products added in Q2FY14
New Customers and New Products added in Q2FY14 ~ 8% of Standalone Revenue generated from new customers and new products in Q2FY14 Steel Products Systems and Projects Tubes Products • Track mounted Solar Structures • Propeller Shaft • Schwing Setter (Construction equipment • Door Rails for Coaches •
Slide 9: Business Vertical – Steel Products
Business Vertical – Steel Products Q2 Quarter Highlights o Slowdown in commercial vehicle production has impacted steel products sales o Efforts in expanding customer base/segmental diversification yielding results o Increased market share with existing customers and also penetrated into new areas b
Slide 10: Business Vertical – Industrial Components
Business Vertical – Industrial Components Q2 Quarter Highlights o Acquisition of Wayne Burt Petro Chemicals assets for foray in Hydraulics o Drop in white goods sales owing to customer concentration; addressing this with increase in customer base Road Map of Rs 150 crores by FY15 Base Market Growth
Slide 11: Acquisition of Assets of Wayne Burt Petro Chemicals – Foray into Hydraulics Business
Acquisition of Assets of Wayne Burt Petro Chemicals – Foray into Hydraulics Business Pennar can leverage Wayne Burt’s – 1• Technological ability to operate in US and India with different specifications. Very few companies in the world have that capability. 2• Wide range of sizes – will allow Pennar
Slide 12: Business Vertical – Tubes
Business Vertical – Tubes Q2 Quarter Highlights o Added new customers o Business volumes have stabilized and consolidated. o Stability and increased capacity utilization has led to investments in expansion New initiatives to align with market o Expanding tube capacity and enhancing product range at
Slide 13: Business Vertical – Systems & Projects
Business Vertical – Systems & Projects Q2 Quarter Highlights o Order entry in Aug / Sep is substantially higher compared to June quarter – Presents opportunity for Q3 o Tepid quarter in customer industries due to volatility in currency, leading to weakening and expensive imports o Stable and growing
Slide 14: Subsidiary – Pre-Engineered Buildings Systems
Subsidiary – Pre-Engineered Buildings Systems Q2 Quarter Highlights o Added over 15 new customers during the quarter o Received new orders from Inspira Martifer, RCC Infra, Sobha Developers, Ashirvad Pipes and others o Received repeat orders from L&T, Schindler, and others o Received PEB Contractor
Slide 15: Subsidiary – Pennar Enviro
Subsidiary – Pennar Enviro Q2 Quarter Highlights o Started order booking in water EPC vertical. Booked 2 MLD desalination orders and 2 large scale STP and ETP orders. o Orders worth Rs. 15 crores received during Q2 from customers such as HETERO Drugs, L&T Metro Hyderabad , Holycross Hospital and oth
Slide 16: Continue the move to create an “Engineering Enterprise”
Continue the move to create an “Engineering Enterprise” GOING FORWARD….. Component Facility in Hydraulics Chennai Wind Energy Components Tubes Expansion International Business Warehousing Solutions Global Supply Chains, Security Industrial Racking, Material Solutions, Components, ESP, Hydrau Handlin
Slide 17: The “Bachat Program” update
The “Bachat Program” update Lower Fixed Cost Other Bachat Initiatives 5-day week Power Cost Savings: Rs 25Lakhs pm (2.5 MW Solar power plant live by Jan 2014) Higher Yield (1.4% points improvement) Administration Savings: Rs 15 Lakhs pm 28 Projects Savings: Rs 25Lakhs pm Click here to visit our webs
Slide 18: Pennar Outperformed BSE Small Cap Index by 6%
Pennar Outperformed BSE Small Cap Index by 6% Stock Movement — Oct 1 2012 to Sep 30 2013 120.00 110.00 100.00 90.00 80.00 70.00 60.00 Mar-13 Jan-13 Jun-13 Oct-12 Oct-12 Apr-13 May-13 Nov-12 Feb-13 Jul-13 Aug-13 Sep-13 Sep-13 Dec-12 Pennar Industries Sensex BSE Small Cap *Rebased to 100 Click here to
Slide 19: Awards and Recognitions
Awards and Recognitions o PEB Contractor of the Year Award from o Infrastructure Company of the Year (Runner-Up) “Construction Week India” Award from “Construction Week India” Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 19
Slide 20: Pennar Industries Limited
Contact Details: Pennar Industries Limited Floor: 3, DHFLVC Silicon Towers Kondapur, Hyderabad - 500 084, Andhra Pradesh Ravi Rajgopal +91 994 868 8771 Vice President – Finance & Company Secretary ravirajgopal@pennarindia.com Annual Report FY12-13 – click here to visit our website for downloading An
Slide 21: Business Structure, Segments & Leadership Team
Business Structure, Segments & Leadership Team 21
Slide 22: Pennar Group – Business Structure, Holdings
Pennar Group – Business Structure, Holdings Shareholding Pattern (Sep 30, 2013) Market Cap as of September 30, 2013 (BSE) : Rs. 2,546 million; ~121 million shares Pennar Industries Limited Steel Products; Steel Tubes; Pre-engineered building Systems Industrial water treatment Industrial Components;
Slide 23: Business Segments and Products
Business Segments and Products Diversified Product Portfolio Across Industries Steel Products Systems and Projects Tubes o Automobiles o Railways: Coaches and Wagons o Automobiles o General Engineering o Solar: Solar Mounting Structures o Power o Infrastructure o White Goods Industrial Components Pr
Slide 24: Segment Composition
Segment Composition Q2FY14 Net Revenues Steel Products o General Engg: 15% Pre-Engineered Buildings o Automobile: 11% o Pre-Engineered Buildings: 29% o Buildings: 8% Systems and Projects o Auto: 6% o Railways (Systems): 8% o Infrastructure Profile: 2% o Projects (Solar): 3% Tubes Industrial Componen
Slide 25: Manufacturing Set Up & Footprint
Manufacturing Set Up & Footprint Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 25
Slide 26: Focus on Quality Management
Focus on Quality Management Primary focus is a reduction in waste and improvement in operating efficiencies Total Productive Maintenance (TPM) : Ensures productivity improvement, reduction in number of sporadic failures, reduction in product defects and customer claims, cost reduction, OTIF to 100%,
Slide 27: Goal – Gate to One Billion Dollars
Goal – GATE TO ONE BILLION DOLLARS... Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 27
Slide 28: Leadership Team; Management
Leadership Team; Management Leadership Team Nrupender Rao Aditya N. Rao Suhas Baxi P. V. Rao Shreepad Purkar Executive Chairman Executive Vice Chairman President and CEO Executive Director President and CEO Pennar Group Pennar Group Pennar Industries PEBS Pennar Pennar Enviro Business Units Dayasaga