Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q1 FY2022 Earnings Presentation
40 slides from Greenply Industries's earnings presentation, Aug 4, 2021
Slide 1: Greenply covering letter to stock exchanges
Greenply/2021-22 August 4,2021 The Manager The Manager BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 526797 Symbol- GREENPLY Dear
Slide 2: Q1 FY2022 Financial Results Presentation
Q1 FY2022 Financial Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 4: Contents
Contents Business Outlook Financial Highlights: Consolidated & Standalone Financial Results Chairman & MD’s comments Shareholding Pattern Company Overview Growth Outlook Manufacturing Facilities Our Brands Marketing /Activation New Announcement-Foray into MDF Boards Business 3
Slide 5: Business Outlook
Business Outlook- o Focused strategic initiatives- Product expansion, process improvement, financial discipline. o Focus on sustainability-The company is continuously working towards enhancing its product portfolio with focus on sustainability and operational efficiencies that will support in mainta
Slide 6: Financial Highlights – Q1 FY 2022
Financial Highlights – Q1 FY 2022 Consolidated Gross margins decline by 330 bps YoY to 43.2% Consolidated Net Sales grown by Standalone Gross margins up by 178 Consolidated EBITDA margins stood 96.7% YoY to Rs. 260.1 crore bps YoY to 42.9% at 5.9% vs -2.0% in Q1FY21 Standalone Net Sales grown by 98.
Slide 7: Consolidated Financial Highlights – Q1 FY 2022
Consolidated Financial Highlights – Q1 FY 2022 Figures in Rs crore Q1 Q1 Q4 Q1 Q1 Q4 Key Ratios (%) FY22 FY21 FY21 FY22 FY21 FY21 Net Sales 260.1 132.2 96.7% 395.6 -34.3% Gross Margin 43.2 46.5 39.8 EBITDA Margin 5.9 -2.0 12.5 Gross Profit 112.3 61.5 82.7% 157.5 -28.7% EBIT Margin 3.5 -5.9 10.9 Net
Slide 8: Standalone Financial Highlights – Q1 FY 2022
Standalone Financial Highlights – Q1 FY 2022 Figures in Rs crore Q1 Q1 Q4 Q1 Q1 Q4 FY21 Key Ratios (%) FY22 FY21 FY22 FY21 FY21 Net Sales 212.6 107.1 98.6% 358.3 -40.6% Gross Margin 42.9 41.2 39.1 EBITDA Margin 5.6 -4.7 13.0 Gross Profit 91.3 44.1 107.1% 140.2 -34.9% EBIT Margin 3.5 -8.0 11.7 Net Ma
Slide 9: Financial Highlights – Balance Sheet Perspective
Financial Highlights – June’21 June’20 March’21 Balance Sheet Perspective Capital Employed Figures in Rs crore 632.0 628.4 598.2 472.0 449.2 469.2 Net worth Total Debt 445.2 230.7 436.7 418.0 410.7 367.5 186.8 191.7 Consolidated Standalone 347.3 101.9 54.0 58.5 Cash & Cash equivalents & Bank balance
Slide 10: Financial Highlights – Balance Sheet Perspective
Financial Highlights – June’21 June’20 March’21 Balance Sheet Perspective Inventories Figures in Rs crore 208.9 187.0 179.2 162.0 137.8 131.4 Receivables Payables 269.8 204.3 200.4 228.9 196.0 193.9 Consolidated Standalone 150.3 163.3 181.2 118.1 178.2 173.1 Fixed Assets 314.7 316.8 314.7 Consolidat
Slide 11: Financial Highlights – Ratios
Financial Highlights - June’21 June’20 March’21 Ratios Inventories (Days) 129 117 73 69 56 47 Debtors (Days) Creditors (Days) 151 135 Consolidated Standalone 186 194 74 72 63 64 53 61 51 59 Working Capital Turnover (Days) 180 160 Consolidated Standalone Consolidated Standalone 63 53 46 34 Consolidat
Slide 12: Financial Highlights – Ratios
Financial Highlights – June’21 June’20 March’21 Ratios RoCE Post-tax (%) 14.7 12.3 4.7 5.0 ROE (%) RoCE Pre-tax (%) Consolidated Standalone 13.9 14.1 19.1 -3.9 15.6 -4.8 3.6 4.1 5.7 6.4 Debt/Equity Consolidated Standalone 0.63 Consolidated Standalone -12.3 -10.9 0.44 -6.0 -7.7 0.42 0.29 0.13 0.14 Co
Slide 13: Consolidated Performance - Q1 FY 2022 v/s Q1 FY 2021
Consolidated Performance - Q1 FY 2022 v/s Q1 FY 2021 Greenply Subsidiaries Consolidated Figures in Rs crore Q1 FY22 Sales Gross Profit EBITDA 260.1 112.3 15.3 212.7 91.3 11.9 47.4 21.0 3.4 Q1 FY21 Sales Gross Profit EBITDA 132.2 2.3 61.5 107.1 44.1 17.4 25.1 -2.7 -5.0 12
Slide 14: Greenply Standalone Performance
Greenply Standalone Performance Particulars Q1 FY22 Q1 FY21 Var(%) FY21 FY20 Var(%) Net sales (Rs. crore) 212.7 107.1 98.6 1,011.7 1,263.1 -19.9 EBITDA margin (%) 5.6 -4.7 10.5 10.6 EBIT margin (%) 3.5 -8.0 8.8 8.9 Annual capacity (million sqm.)* 34.9 34.9 34.9 34.9 Production (million sqm.) 6.01 3.
Slide 15: Consolidated Financial Results – P&L Q1 FY 2022
Consolidated Financial Results – P&L Q1 FY 2022 Statement of Consolidated Financial Results for the three months ended 30 June 2021 (₹ in Lakhs) Corresponding Three Previous Three Three months months ended Year ended months ended Sr. ended 30.06.2021 30.06.2020 in the 31.03.2021 Particulars 31.03.20
Slide 16: Standalone Financial Results – P&L Q1 FY 2022
Standalone Financial Results – P&L Q1 FY 2022 Statement of Standalone Financial Results for the three months ended 30 June 2021 (₹ in Lakhs) Corresponding Three Previous Three Three months months ended Year ended months ended Sr. ended 30.06.2021 30.06.2020 in the 31.03.2021 Particulars 31.03.2021 N
Slide 17: Chairman & MD's comments on Q1 FY2022
“Commenting on the performance for Q1FY2022, Mr. Rajesh Mittal, Chairman & Managing Director, Greenply Industries Ltd. said, “Our performance reflects our continued effort and focus for maintaining strong cost and operational efficiencies which is an integral part of our transformational journey. Fu
Slide 18: Shareholding Pattern
Shareholding Pattern June 2021 June 2020 47.78% 52.22% 47.98% 52.02% Public Promoter Public Promoter 17
Slide 19: Company Overview
➢ CAPACITY UTILIZATION* ➢ STRONG INDUSTRY POTENTIAL ▪ Plywood 69% utilization in Q1 FY2022 ▪ Plywood industry size – Rs. 190 billion ▪ Plywood 36% utilization in Q1 FY2021 ▪ Strong demand drivers – rising residential/ commercial construction, increasing ➢ PRODUCTION MODEL urbanization, high disposab
Slide 20: Growth Outlook
Growth Outlook PRODUCT ADVERTISING & IT DISTRIBUTION FINANCIAL INDUSTRY PROFILE PROMOTIONAL INITIATIVES NETWORK PERFORMANCE DRIVERS SPENDS ➢ To improve mix ➢ Continued ➢ Upgraded IT ➢ To increase the ➢ Margin expected ➢ Rising demand of plywood investments in infrastructure – number of to improve po
Slide 21: Manufacturing Facilities / Business Model
Manufacturing Facilities / Business Model Facilities Business Model Capacity Location (mn sqm.) 62% Manufacturing products, 38% trading products in volume terms in Plywood Tizit, Nagaland 8.1 Q1 FY22 Kriparampur, West Bengal 11.0 71% Manufacturing products, 29% trading products in value terms in Q1
Slide 22: Our Brands
optim: ES Bhaosaply fm PLYWOOD & BLOCKBOARD 21
Slide 23: First in Indian Wood Panel Industry to receive FSC-FM Certification
First in Indian Wood Panel Industry to receive the FSC® - FM Certification Awarded with Prestigious FSC® - Certification in forest management, the first in the Indian wood & panel industry 22
Slide 24: Outdoor Educative Video
Outdoor Educative Video E-0 Lab Test Video 23
Slide 25: Influencer Marketing
a Influencer Marketing Foamy Gauri Khan Designs x Abu Jani Sandeep Khosla x Greenply - E-O0 Chuno Khul... Greenply | E-0 Chuno,... Plywood Masterclass Design Pataki x Greenply - Sanjay Puri Architects X E-O0 Chuno Khulke Saans Lo! Greenply - E-0 Chuno.... 43K views - onth ag
Slide 26: E-0 - Khul ke saans lo
# E-0 - Khul ke saans lo This quarter we focussed on Zero emission campaign implementation aiming to create awareness about Greenply’s competitive advantage of E-0. Meeting the highest level of global Emission Standards of E-0, safeguards the indoor air quality The film starring Boman Irani brings o
Slide 27: Greenply Forays into MDF Business
Greenply Forays into MDF Business 26
Slide 28: Project Brief
Project Brief Particulars Details Product Medium Density Fiber Board (MDF) Location Vadodara Distt., Gujarat, India Capacity 800 CBM / day Capex Amount Rs 548 Crore Revenue Potential Rs 600 - 650 Crore pa Expected Timeline 1.75 years – Expected Commercial operations by March’23 Funding Debt & Equity
Slide 29: Project Brief
Project Brief Land Details Advantages Location Village Sherpura,Tehsil Proximity Savli, Distt,Vadodara Area Approx.75 acres ▪ Strategically located near to the source of raw-material ▪ Proximity to the ports and national highways. Nearest major Port Dahej (160 Km) Nearest Airport Vadodara Nearest Hi
Slide 30: Sources of Fund
Sources of Fund (In Rs. Crores) Sources of Funds Total Amount FY-22 FY-23 Internal Accrual- Equity 192 192 - Quasi Equity/ Loans Term Loans from Banks/ 356 178 178 Financial Institutions Total 548 370 178 29
Slide 31: Industry Scenario
Industry Scenario India’s MDF capacity (‘000 cbm) India’s MDF market is highly under-penetrated 1500 150% CAGR 10% 1052 93% 100% 20% 1000 517 50% 374 80% 7% 500 0% Global India 0 2009 2015 2020 MDF Other wood panel products MDF Per capita consumption (in Rs.) ▪ The outlook for MDF board remains opti
Slide 32: Industry Scenario
Industry Scenario Wide Application of MDF products Modular Furniture Offices Educational institutions Kitchens, Cabinet & entry doors Factories Medical institutions Bathroom & Bedroom Warehouses Public utility places(libraries, Exteriors such as play areas, lobbies Hotels & restaurants airports etc)
Slide 33: Production Process Flow Chart
Production Process Flow Chart 1 1 2 Glue Energy Plant Kitchen Wooden Logs Chipper 3 6 4 Refiner 5 Dryer Cyclone Shifter Chip Silo Vibrating Screen Chip Preparation & Transport Refining Gluing Drying & Shifting 7 8 10 9 Mat Former Forming Pre Press Pressing Cooling Stacking Automatic Storage 13 14 12
Slide 34: SWOT
SWOT S- (Strength) ▪ The proposed plant is located in the agricultural belt. It ensures easy procurement of raw materials through agro forestry plantation timber. ▪ Proposed location of the unit is covered by 3 neighboring states with proximity to Sea Port and National Highways. Proximity to seaport
Slide 35: SWOT
SWOT W-(Weakness) ▪ Competition from the unorganized sector, which is selling cheaper product with poor quality plywood, particle boards and similarly with imported MDF Boards. O-(Opportunity) ▪ Construction development is a thrust area for the government and is under active implementation. For such
Slide 36: SWOT
SWOT T- (Threat) ▪ Delay in implementation of the project may lead to cost escalation and may affect overall production and profitability of the Company. ▪ Change in Government policy for antidumping duty, power supply etc. ▪ Entry of big players in panel industries market. 35
Slide 37: SWOT-Greenply Advantage
SWOT-Greenply Advantage Leadership • One of the largest Interior infrastructure brands in India • Differentiated & eco-friendly products. Launched India’s first Zero Innovation Emission plywood E-O range • Strategically located plant, Pan India reach, proximity to raw Experience of Sustainability ma
Slide 38: Management Comment
Management Comment Commenting on the announcement, Mr. Manoj Tulsian, JMD & CEO, said, “With the change in consumers demand in the current scenario, MDF industry is expected to grow rapidly due to its versatile application and this trend is here to persist. This investment will help us to capitalize
Slide 39: About Greenply
About Greenply Greenply Industries Limited (GIL) enjoys leadership position in plywood around 26 percent of the organized plywood market in India. Greenply Industries Limited (GIL), having leadership position in plywood industry with three state–of-the-art manufacturing facilities spread across the
Slide 40: Thank You
Thank You
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