Shankara Building Products Ltd. · NSE:SHANKARA
Shankara Building Products — Q4 FY2024 Earnings Presentation
21 slides from Shankara Building Products's earnings presentation, May 20, 2024
Slide 1: Investor Presentation Q4 FY24 Results filing letter
Shonkoro Building Products Limited Date: 20th May, 2024 To To Department of Corporate services Listing Department BSE Limited National Stock Exchange of India Limited 1st Floor, New Trading Ring, Exchange Plaza, Plot No. C-1, Rotunda Building, Phiroze Jeejeebhoy G Block, Bandra Kurla Complex, Towers
Slide 2: Investor Presentation Q4 & FY2024
Slide 3: Disclaimer
Disclaimer The statements contained in this document speak only as at the date as of which they are made and certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ with
Slide 4: Highlights for the Year
Highlights for the Year Financial Highlights ▪ Highest-ever annual revenues and profits ▪ Healthy RoCE of 18% ▪ Board recommends dividend of Rs. 3 per share Business Highlights ▪ Steel volume growth at 27% during the year; Value added steel volumes grew by 43% ▪ Non-steel revenue growth at 30% YoY;
Slide 5: Financial Highlights Q4 FY24 and FY24
Financial Highlights Revenue EBITDA PAT 4,828 156 81 FY24 +20% YoY +25% YoY +29% YoY Steel Volume +27% YoY EBITDA Margin 3.24% PAT Margin 1.68% Non-Steel Revenue +30% YoY 1,377 45 24 Q4 FY24 +14% YoY +24% YoY +27% YoY +17% QoQ +13% QoQ +13% QoQ EBITDA Margin 3.30% PAT Margin 1.76% Figures in Rs. Cro
Slide 6: Record revenues and profits during the year, diversified business model
Record revenues and profits during the year, while consciously building a diversified business model Record Revenue in FY2024 Highest ever Annual PAT EBITDA PAT +33% CAGR 200 +27% CAGR 3.2% 1.7% 5.0 % 180 4.0 % 160 140 3.0 % 4,828 120 81 4,030 100 2.0 % 80 63 156 2,418 34 125 1.0 % 2,038 60 40 77 14
Slide 7: Strategically growing value-added products within steel aggressively
Strategically growing value-added products within steel aggressively Steel Volume (kT) 6% Steel Tubes & Pipes 7% FY2024 +27% | 3Y CAGR +24% 7% 233 Steel-Flat Products STEEL 163 Roofing 15% 423 352 65% TMT FY21 FY22 FY23 FY24 Steel-Long Products Steel Pipes & Tubes Value Added Steel Steel Revenue (Rs
Slide 8: Expanding market share in higher margin non-steel business
Expanding market share in higher margin non-steel business Diversifying portfolio to non-steel building products NON-STEEL 471 Sanitaryware FY24 +30% | 3Y CAGR +51% 20% Revenue (Rs. Crore) 362 Tiles 1% 42% 4% PVC Pipes & Fittings Electricals 33% FY21 FY22 FY23 FY24 Sanitaryware Tiles PVC Pipes & Fit
Slide 9: Strategic initiatives aimed at improving value-added portfolio
Strategic initiatives aimed at improving value-added portfolio ❑ Fotia Ceramica, our private label, is a strategic expansion in tile segment ❑ Strengthening premium range with addition of brands like ❑ After successful ramp up in Kerala and Tamil Nadu, Fotia is Duravit, Hans Grohe, Kohler, Grohe exp
Slide 10: Building an omnichannel marketplace for building materials
Building an omnichannel marketplace for building materials 125 21 91 13 Fulfillment Centers Warehouses Retail Stores Processing Units 13.2 lakh sq ft 5.0 lakh sq ft 4.6 lakh sq ft 3.6 lakh sq ft Processing Facilities Vishal Precision ▪ Processing of tube and cold Steel Tubes & rolled strip Suppliers
Slide 11: Online presence becoming a key enabler for future growth
With online presence becoming a key enabler for future growth Online Discovery of wide range of products Offline Push through Fulfillment Centers Anytime, Anywhere With launch of “BuildPro” app (Google Play & App Store) and website: • Shankara has evolved from a traditional marketplace to online mar
Slide 12: Retail model remains resilient, while growing non-retail business
Retail model remains resilient, while steadily growing non-retail business Revenue (Rs. Crore) EBITDA (Rs. Crore) Retail Parameters FY24 FY23 Change YoY Retail Stores (No.) 91 91 - Steel Non-Steel 5.7% 2,556 Retail Area (lakh sq ft) 4.64 4.58 1% Retail 5.6% 6.0 0% 2,236 140 4.0 0% No. of Transaction
Slide 13: Strong position in South, expanding presence in other regions
Built a strong position in South, and expanding presence in other regions Karnataka 10/1 4% Tamil Nadu 5% Kerala Warehouses Maharashtra 8% Processing Units States/UT Revenue Telangana 52% Andhra Pradesh BuildPro Store Mix 45 11% Madhya Pradesh Gujarat 13% Goa Cities Other States South India (~86%) W
Slide 14: Driving growth, while keeping balance sheet efficient
Driving growth, while keeping balance sheet efficient EFFICIENT WORKING STRENGTHENED SUSTAINED DEBT ASSET OPTIMIZED CAPITAL MANAGEMENT EQUITY BASE REDUCTION BUSINESS MODEL 18% 65 15% 53 Around 30-days 798 136 643 115 556 10% 31 31 522 71 7% 49 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 F
Slide 15: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Change Change Particulars (Rs. Crore) Q4 FY24 Q4 FY23 FY24 FY23 YoY YoY Revenue from Operations 1,377 1,210 14% 4,828 4,030 20% Other Income 2 1 184% 5 8 (32%) Cost of Materials Consumed 1,298 1,146 13% 4,552 3,806 20% Employee Expenses 14 13 14% 55 48 14% Other
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crore) Mar-24 Mar-23 Particulars Mar-24 Mar-23 Shareholders Equity 798 643 Non-current assets 315 301 Non-current liabilities 25 40 Property, Plant & Equipment (incl. CWIP) 268 256 Borrowings 14 27 Investment Property 8 10 Right of use Assets 3 4 Lease & O
Slide 17: Demerger Update
Demerger Update Creating two distinct focused entities
Slide 18: Demerger to create two separate entities
Demerger to create two separate entities, focused on building materials marketplace and manufacturing respectively Building Materials Marketplace Post segregation, Shankara Building Products Ltd (with its omnichannel presence) will be will be a focused listed entity for traditional separated to crea
Slide 19: Balance Sheet split (as of March 31, 2024)
Balance Sheet split (as of March 31, 2024) Current Post-demerger* Current Post-demerger* Building Building Overall Materials Manufacturing Overall Materials Manufacturing Marketplace Marketplace Total Equity 798 400 398 Net Block 296 43 253 Trade Total Debt 83 75 8 Receivables 686 634 91 Capital Emp
Slide 20: Implementation timeline
Implementation timeline Estimated timeline for the demerger: 10-14 months from Board Approval date Dec-23 Q4 FY2024 FY2025 Board Approval Filing of Application with Stock Exchanges NOC from SEBI Filing with NCLT Shareholders/ Creditors Meeting NCLT Approval RoC Intimation Listing & Trading Appointed
Slide 21: Thank You
Thank You Scan the QR to experience the Shankara Building Products Limited CIN: L26922KA1995PLC018990 Mr. Alex Varghese, Chief Financial Officer ir@shankarabuildpro.com www.shankarabuildpro.com Android iOS
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