Finolex Industries Limited · NSE:FINPIPE
Finolex Industries — Q2 FY2019 Earnings Presentation
23 slides from Finolex Industries's earnings presentation, October 2018
Slide 1: Q2FY19 Results
FINOLEX INDUSTRIES LIMITED Q2FY19 RESULTS
Slide 2: Q2FY19 – Business Performance Highlights
Q2FY19 – Business Performance Highlights Revenue - Revenue registered a y-o-y growth of 14.2% to Rs. 5,426 mn Volume - PVC Resin volume registered a y-o-y increase of 7.2% to 43,461 MT. - Pipe and Fittings volume registered a y-o-y decline of 4.2% to 45,272 MT, mainly due to monsoon pattern. Operati
Slide 3: Business Performance – Q2FY19
Business Performance – Q2FY19 * Including inter segment transfer 3
Slide 4: Q2 & H1 FY19 Results Summary
Q2 & H1 FY19 Results Summary Volumes (MT) Pipes & Fittings Volumes (MT) PVC Resin * Revenue (excl. duties and taxes) (INR Mn) EBITDA (INR Mn) PAT (INR Mn) * Including inter segment transfer 4
Slide 5: Profit & Loss Account – Q2FY19
Profit & Loss Account – Q2FY19 Inc / Dec Particulars (INR Mn) Q2FY19 Q2FY18 (%) Total Income from operations * 5,426 4,753 14.2% EBIDTA 1,249 496 151.8% EBIDTA margin (%) 23.0% 10.4% Depreciation 166 151 EBIT 1,083 345 213.9% EBIT % 20.0% 7.3% Other Income 123 109 Finance costs 29 38 PBT 1,177 416 1
Slide 6: Profit & Loss Account – H1FY19
Profit & Loss Account – H1FY19 Inc / Dec Particulars (INR Mn) H1FY19 H1FY18 (%) Total Income from operations * 13,705 12,059 13.6% EBIDTA 3,188 1,802 76.9% EBIDTA margin (%) 23.3% 14.9% Depreciation 328 296 EBIT 2,860 1,506 89.9% EBIT % 20.9% 12.5% Other Income 260 148 Finance costs 81 68 Profit bef
Slide 7: EBIDTA Bridge Chart Q2FY19
EBIDTA Bridge Chart Q2FY19 (INR Mn) IND AS 7
Slide 8: Business Performance Trends
Business Performance Trends Pipes & Fittings Volumes (MT) PVC (USD/MT) Source: Platts Polymerscan weekly reports PVC Volumes (MT) PVC/EDC Delta (USD/MT) * 8
Slide 9: Quarterly - Profit & Loss
Quarterly - Profit & Loss Particulars (INR Mn) Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Total income from operations * 4,568 5,765 8,877 7,307 4,753 7,227 8,091 8,278 5,426 EBIDTA 870 1,296 1,785 1,306 496 1,133 1,879 1,939 1,249 EBIDTA margins (%) 19.0% 22.5% 20.1% 17.9% 10.4%
Slide 10: Quarterly segmental - Profit & Loss
Quarterly segmental - Profit & Loss Particulars (INR Mn) Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Segmental revenues * PVC 2,564 4,043 5,572 5,137 2,742 4,598 5,158 5,042 3,266 PVC pipes & fittings 3,628 3,954 6,191 6,104 4,250 5,320 6,827 7,225 4,705 Power 321 378 361 382 259
Slide 11: Profit & Loss - Key Indicators
Profit & Loss - Key Indicators Profit & loss account (INR Mn) FY13 FY14 FY15 FY16* FY17* FY18* Revenue from Operations (excl. excise duty) 21,448 24,531 24,762 24,819 26,024 27,378 Growth in sales (YoY %) 2.15% 14.37% 0.94% 0.23% 4.85% 5.20% EBIDTA before exceptional items 3,587 3,966 2,111 4,044 5,
Slide 12: Balance sheet - Key Indicators
Balance sheet - Key Indicators Balance Sheet (INR Mn) FY13 FY14 FY15 FY16* FY17* FY18* H1FY19 Equity and liabilities Share capital 1,241 1,241 1,241 1,241 1,241 1,241 1,241 Reserves and surplus 5,971 6,656 6,633 14,458 21,673 26,405 25,634 Long term borrowings 1,397 2,322 1,837 - - - - Short term bo
Slide 13: Trend in Key Ratios
Trend in Key Ratios 10424 EBITDA Margin* Gross Debt (INR Mn) 8394 21.6% 7466 7134 6371 16.7% 16.2% 16.3% 17.7% 11.9% 2117 11.0% 942 1007 8.5% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Debt/Equity (x) 1.60 1.20 1.20 0.90 0.80 0.13 0.04 0.04 FY11 FY12 FY13 FY14 FY
Slide 14: Key Strategies
Key Strategies EXPANDING FOOTPRINT CAPACITY EXPANSION CASH-N-CARRY BRANDING Expand distribution Increase installed Follow Cash-n-carry Promote brand and network in all geographies capacities of PVC pipes model to keep the quality consciousness with higher focus in the and fittings in order to balanc
Slide 15: Opportunities – Agriculture sector … continues to be thrust area
Opportunities – Agriculture sector … continues to be thrust area Total allocation for Rural, Agriculture Under the Pradhan Mantri Krishi Niti Ayog, in consultation with Extend facility of Kisan Credit sector is Rs.14.34 lakh crore. Sinchai Yojana, 48 AIBP priority Central and State Governments, will
Slide 16: Opportunities - Non-Agriculture sector i.e. housing and infrastructure
Opportunities - Non - Agriculture sector i.e. housing and infrastructure … also continues to be thrust area Under the Prime Minister Awas Scheme it is proposed During the year, the Company tied-up with to complete construction of one crore houses by 2019 Swachh Bharat Mission (Gramin) has the Americ
Slide 17: Distribution reach Offices, Works and Warehouses
Distribution reach Offices, Works and Warehouses • FIL is on track in terms of expanding its scale of operations by increasing production capacity and distribution reach • Wide network of 18,000 retail touch points Delhi Masar Indore Cu ack Pune Urse Ratnagiri Corporate Office at Pune Works Warehous
Slide 18: Branding & advertisements in Q2FY19
Branding & advertisements in Q2FY19 Sponsorship of Lokmat Aaple Bappa Ambaji Padyatra branding Pandharpur Wari Rath Yatra branding activity included Finolex Pipes participated in Agri onground event, print campaign, activation included outdoor marketing campaign outdoor branding, auto branding, Asia
Slide 19: Branding & advertisements in Q2FY19
Branding & advertisements in Q2FY19 As an on-going brand building To support the upcoming sports talent in the country, Society Gates with Finolex Pipes branding were installed as a brand recall initiative, especially for Tier 2 Finolex Pipes honored the achievers of Asian Games initiative across 20
Slide 20: CSR activities in Q2 FY19 – some snapshots
CSR activities in Q2 FY19 – some snapshots Chief Minister of Maharashtra – Shri FIL & MMF supported Kerala Flood relief FIL & MMF were invited by Govt. Bhumipujan of Centre of ‘Excellence for Devendra Fadnavis applauds Ritu initiative by providing aid to more than of Maharashtra to sign MOUs for Mot
Slide 21: Shareholding Pattern as on September 30, 2018
Shareholding Pattern as on September 30, 2018 Promoters Others 36% 52% 3% Foreign Portfolio Investors 9% 4.02% Mutual Funds 21
Slide 22: Finolex Industries Limited
Agri Pipes and Fittings Column Pipes Casing Pipes ASTM Pipes and Fittings CPVC Pipes and Fittings Sewerage Pipes Solvent Cement SAFE HARBOR STATEMENT: No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from Finolex Industries L
Slide 23: Finolex Industries Ltd. – Volume Data
Finolex Industries Ltd. Volume Data Sr. No. Particulars Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 1 Production in MT a PVC Resin 67,892 80,147 59,756 40,937 83,266 67,143 63,805 34,528 81,839 82,672 52,757 45,839 b PVC pipes & fittings 45,089 63,144 66,693 4