Slide 1: Cover letter to stock exchanges
I I Corp. Office: 2nd Floor, Tower• A, Building No. 9, DLF Cyber City, Phase• Ill, Gurugram. 122002 Haryana, Phone: 0124• 4604500, Fax: 0124 • 4218524 E-mail: kamdhenu@kamdhenulimited.com 9th November, 2020 To, To, The Manager- Listing The Manager- Listing National Stock Exchange of India Limited, B
Slide 2: Investor Presentation November 2020
INVESTOR PRESENTATION November 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: Q2 & H1 FY21 Financial Highlights
Q2 & H1 FY21 Financial Highlights
Slide 5: Core Steel TMT Business: Revenue Break-Up
Core Steel TMT Business : Revenue Break-Up Royalty Income through Own Manufacturing Trading Sales Franchisee Sales -15% -12% Increased Focus on Own Manufacturing 89.2 23.4 -99% & Franchisee Based Business 78.9 Q2 FY21 75.9* 20.5* • Improved Margins • Better efficiencies with Higher RoE and RoCE • In
Slide 6: Improved Efficiencies driven by Steel Business
Improved Efficiencies driven by Steel Business Return on Equity (ROE) Return on Capital Employed (ROCE) Debt to Equity Ratio Steel Business + 480 bps + 290 bps 24.5% 25.1% 24.4% 0.6 22.3% 22.9% 22.2% 19.7% 18.4% 18.1% 20.0% 0.4 0.3 0.3 0.2 Mar-17 Mar-18 Mar-19 Mar-20* Sep-20 Mar-17 Mar-18 Mar-19 Mar
Slide 7: Core Steel TMT Business: Delivering Quality Earnings
Core Steel TMT Business : Delivering Quality Earnings Revenue Rs. Crs (Excl. Trading) Royalty Income (Franchise) Rs. Crs PBT Rs. Crs Recouped its business Focus on own manufacturing Improved in sustainability of strategy by reducing B2B and Asset light franchisee based Profits with Quality Earnings*
Slide 8: Paints Business: Key Updates
Paints Business : Key Updates Revenues +6% +1% -16% 46.5 49.2 86.1 86.8 269.8 225.7 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 FY19 FY20 ❑ Update on the Paint Business ▪ During the first quarter of FY20, a major fire broke out in the Paints factory of the Company due to which the inventory at the factory, prop
Slide 9: Scheme of Arrangement
Scheme of Arrangement The Company has acquired 100% shareholding stake at face value in Kamdhenu Ventures Limited, whereby Kamdhenu Ventures Limited has become wholly owned subsidiary company Rationale for the proposed De-merger of Paint Business of of the Company. Further, Kamdhenu Colour and Coati
Slide 10: Overview
Overview Brand Turnover India's Leading Company 75+ Franchise Units to dealing with Manufacturing, manufacture steel rebars, Distribution, Marketing & Rs. 10,800+ Crores in FY20 structural steel products & Colour Branding coated Profile Sheets Volume Sales growth of 6% with 24.9 Lakh TMT sold KAMDHE
Slide 11: Our Journey
Our Journey ▪ 1995- Production of ▪ 2006- IPO – Listed at ▪ 2016- Name Changed from Kamdhenu Steel Bars NSE/BSE Ispat Ltd. to Kamdhenu Ltd. – positioned as branding and marketing ▪ 2000- Certified for ▪ 2008- Forayed into company international quality Decorative Paints standards ISO 9001 & Business
Slide 12: Unique Business Model
Unique Business Model
Slide 13: Asset Light Business Model
Asset Light Business Model… Kamdhenu Group Innovator – We do Research and Franchise Business Model helped in creating introduce new products based on Customer Requirement in the Market BRAND LEADERSHIP in STEEL RETAIL Franchise Dealer Dealers / Distributors Franchise Distributor Manufactures product
Slide 14: Creates Long-term Sustainability
…creates Long-term Sustainability Saving Transportation cost Increase in Market share . Enhanced revenue and increase in Profitability due to Royalty earned Improvement in Brand Equity Advantage to Kamdhenu Easy availability of product in all parts of the country Ensure quick delivery of Products to
Slide 15: Win-win for Franchises
…with win-win for Franchises Expertise & Experience Quality Assurance We provide franchise units with our Expertise Assurance of Quality from Kamdhenu gives and Experience for an efficient business comfort to End Customers Ready Marketplace Centralized Publicity Ready Platform in niche market giving
Slide 16: Pan India Decentralized Manufacturing
Pan India Decentralized Manufacturing Decentralized Outsourced Manufacturing Model ▪ Communication : Working with a local manufacturer makes the communication process easy. Real time conversations result in a better understanding of the specifics and preferences of the products by the Customer ▪ Low
Slide 17: Huge Capacities at Zero Capex
Huge Capacities at ZERO Capex Manufacturing Capacities - Franchises Company Owned - Manufacturing, R&D and T&D Steel Division : Bhiwadi Production Capacity : ▪ Steel Rebars – 33 Lacs MT per annum ▪ Structural Steel – 5 Lacs MT per annum ▪ Increased the production Capacity from 72,000 MT to 156,000 M
Slide 18: Branded Product Portfolio
Branded Product Portfolio
Slide 19: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu – Nxt TMT Kamdhenu – PAS 10000 Next Generation Interlock Steel and Unique Rib design which gives locking of 360 TMT Bars are thermo-mechanically- has got the angular double rib design degree. Its alloy gives it better rust-pro
Slide 20: India's largest Branded TMT Bars
India’s largest Branded TMT Bars India’s Largest brand in TMT (Thermo Mechanically Treated) steel bars BRAND with in-house capacity of 156,000 MT p.a. State-of-the-art Tempcore Technology from CRM, Belgium KAMDHENU PAS 10000 44 Franchisee Units under “KAMDHENU Brand” steel rebars with the production
Slide 21: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Kamdhenu Limited manufactures Structural Steel under franchisee arrangement Description Special Contours ▪ One such product which continues to pioneer new innovations ▪ Production of a multitude of special contours such as: ▪ It is counted as one of the mos
Slide 22: Decorative Paints Among Top Brands in India
Decorative Paints Among Top Brands in India Commenced SKUs Kamdhenu Paints – COLOUR DREAMZ 2008 set up its own unit for 40+ SKUs across 10+ product manufacturing of decorative Paints categories under its flagship brand Dealers Market Position ~4,000+ dealers associated Top Paints Amongst the with th
Slide 23: Extensive Product Range
Extensive Product Range Emulsions Primers Type Premium Regular Type Premium Regular Water Based Exterior Weather Weather Kamo Kamo Dual Primer Kamo Sealer Supreme Classic Shield Solvent Based Wood Primer Red Oxide Universal Primer (ST) Kamo Hi Shine Velvety Sheen & Shine Interior Distempers Distempe
Slide 24: Extensive Product Range
Extensive Product Range Stainers, Specialty and Other Coatings Construction Chemicals Kamoproof ALW Designer & Kamocrete CRP WATER PROOFING Kamo Super Concrete Repair COMPOUND FOR Textured Paints Mettalica Product CEMENT MORTAR AND CONCRETE Wall Putty NC Lacquer Melamine Kamoplast Kamocare Kamwood W
Slide 25: Niche Products with high Potential
Niche Products with high Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer Our specialized water proofing Kamo Floor Coat (KFC) is a It's a unique primer which can be Kamwood Premium Wood finishes solutions are an aid to the specialized paint (based on Fast applied on the
Slide 26: Brand Kamdhenu
Brand “KAMDHENU”
Slide 27: Kamdhenu Brand Sales over Rs. 10,800 crores for FY20
“KAMDHENU” – Brand Sales over Rs. 10,800 crores for FY20 Brand Expenses In Crores Brand Creation over years 103 104 63 69 70 Premiumization of Products 48 33 39 ▪ International Quality with competitive prices FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Brand Expenses to Overall Brand Sales Results Posit
Slide 28: Celebrity Participation in Business events
Participation of Noted Celebrities Celebrity Participation in Business events Kamdhenu has strategically used it’s celebrity repertoire to create visibility at all levels Madhuri Dixit Anil Kapoor Sonam Kapoor Karisma Kapoor Kareena Kapoor Emraan Hashmi Preity Zinta Malaika Arora Sonu Nigam Govinda
Slide 29: Brand Promotions - Print & Outdoor Media
Brand Promotions - Print & Outdoor Media Medium Partner Newspapers National Newspapers Regional Newspapers Rajasthan Patrika (Jansatta) (Punjab Kesari) The Kamdhenu brand is prominent across the country, with wide presence in electronic, print as well as outdoor media – which is complemented by bran
Slide 30: Target Ka Badshah - Dealer/Distributor Awards
TARGET KA BADSHAH - Dealer/Distributor Awards Notable celebrity affiliations through brand promotions, event participations have helped strengthen the emotional connect with dealers where relationships were formative 29
Slide 31: Sustainable growth through Brand Creation
Sustainable growth through Brand Creation Kamdhenu Brand Sales Turnover (In Rs. Crs) *Growth in volume sales increased by 6%, however prices of Steel dropped considerably during FY20 12,027 10,851* CAGR +17% 8,072 5,924 5,968 6,052 5,590 4,735 3,759 2,897 2,274 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY1
Slide 32: Vision 2022
Vision 2022
Slide 33: Vision 2022
Vision 2022 Increased Capacity TMT Increase in Brand Revenue (Rs. Crs) Increase in Royalty Income (Rs. Crs) 33 10,851 94 CAGR +12% CAGR +15% CAGR +21% 11 3,759 8 1,808 16 8 2007 2012 2020 2007 2012 2020 2007 2012 2020 50 Lakh Rs.20,000 crs Rs. 150 crs Metric Tonne by 2022 by 2022 by 2022 32
Slide 34: Growth Drivers
Growth Drivers Affordable Housing The market potential of affordable housing projects in the country is expected to touch Rs 6.25 trillion by 2022 Housing For All India will need to construct 43,000 houses every day until 2022 to achieve the vision of Housing for All by 2022 Construction Sector Prem
Slide 35: Management Team
Management Team
Slide 36: Board of Directors
Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Chairman & Managing Director Whole Time Director Whole Time Director Whole Time Director Mr. Mahendra Kumar Doogar Mr. Ramesh Chand Surana Mr. Ramesh Chandra Jain Mrs. Nishal Jain Mr. Harish Ku
Slide 37: Awards & Acknowledgements
Awards & Acknowledgements World's Greatest Brands World's Greatest Asia's Most Promising Brand Indian Power Brand 2017-18 amongst Asia & Brands 2015 amongst 2015-16 by World Consulting & 2016 Award GCC for Steel as well as Asia & GCC Research Corporation Paints Division 36
Slide 38: Financials
Financials
Slide 39: Q2 & H1 FY21 - Statement of Profit & Loss
Q2 & H1 FY21 - Statement of Profit & Loss^ Particulars (Rs. Crs.) Q2 FY21 Q2 FY20 Q1 FY21 H1 FY21 H1 FY20 Net Revenue from Operations 146.4 238.0 88.1* 234.5* 461.0 Cost of Material Consumed 78.8 81.0 33.6 112.3 158.3 Purchase of Stock-in-Trade 14.0 109.1 9.5 23.5 200.7 Change in Inventories 0.5 -13
Slide 40: Balance Sheet as on 30th September 2020
Balance Sheet as on 30th September 2020^ Particulars (Rs. Crs.) Sep 2020 Mar 2020 Particulars (Rs. Crs.) Sep 2020 Mar 2020 Equity Share Capital 26.9 26.5 Non Current assets Property, Plant and Equipment's 76.7 79.4 Other Equity 156.7 154.2 Capital Work in Process 1.5 1.1 Total Equity 183.7 180.7 Rig
Slide 41: Cash Flow Statement as on 30th September 2020
Cash Flow Statement as on 30th September,2020^ Particulars (Rs. Crs.) Sep-20 Sep-19 Net Profit Before Tax 5.8 14.2 Adjustments for: Non Cash / Other Items 11.7 12.7 Operating profit before working capital changes 17.5 26.9 Changes in working capital -0.2 -25.1 Cash generated from operations 17.3 1.8
Slide 42: Consistent Financial Performance
Consistent Financial Performance^ Revenue - Steel business Total Revenue Segmental Breakup - FY13 +101% 736.3 33% +76% 962.0 365.7 67% FY13 FY20 Steel Paints Revenue - Paint business 547.5 Segmental Breakup – FY20 +24% 23% 225.7 181.8 77% FY13 FY20 FY13 FY20 Steel Paints In Rs. Crs 41 ^On Standalone
Slide 43: Consistent Financial Performance
Consistent Financial Performance^ EBIT PAT EBIT - Steel business +109% +181% 36.6 +364% 43.2 22.3 17.6 15.4 FY13 FY20 FY13 FY20 PBT RoCE (%) – Steel business +274% 22.9% 24.7 16.3% 4.8 6.6 FY13 FY20* FY13 FY20* FY13 FY20 42 In Rs. Crs Excluding Exceptional Items & Tax calculated at normal tax rate a
Slide 44: Historical Profit & Loss Trend
Historical Profit & Loss Trend^ Particulars (Rs. Crs) FY20 FY19 FY18 FY17 FY16 FY15 FY14 FY13 Revenue 962.0 1,232.4 1,179.8 824.9 841.2 968.0 921.7 547.5 Total Raw Material Cost 710.5 972.9 968.8 634.8 667.8 821.9 793.8 427.8 Employee Expenses 50.2 47.2 40.5 34.0 30.9 24.1 21.9 21.2 Other Expenses 1
Slide 45: For further Information, please contact
For further Information, please contact : CIN: L27101RJ1994PLC067034 CIN: U74140MH2010PTC204285 Mr. Harish Kumar Agarwal Mr. Deven Dhruva / Ms. Khushbu Shah Group CFO & Head-Legal +91 9833373300 / +9820601181 hkagarwal@kamdhenulimited.com deven.dhruva@sgapl.net / khushbu.shah@sgapl.net www.kamdhenul