Greenpanel Industries Ltd · NSE:GREENPANEL
Greenpanel Industries — Q1 FY2023 Earnings Presentation
57 slides from Greenpanel Industries's earnings presentation, Jul 22, 2022
Slide 1: Greenpanel Investor Presentation cover letter
GREEN PANEf GPtLl2022-2023 July 22,2022 The Manager The Manager BSE Limited National Stock Exchange of lndia Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E), Mumbai-400001 Mumbai - 400051 Scrip Code:542857 Symbol - GREENPA
Slide 2: Performance in Q1 FY2023
_ Brand Greenpanel Performance in Q1 FY2023
Slide 3: Disclaimer
v Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 4: Index
INDEX Contents Page No. Snapshot of the Company 4 Our performance, Q1 FY2023 5 Overview by MD & CEO 14 Greenpanel Brand’s Financial Health 16 The Journey so far 23 Financial Evolution 32 Capital Structure 38 MDF Business 44 Ply Business 50 Achieved so far 55 3
Slide 5: A snapshot of our company
v A snapshot of our company 1 2 3 Brand vision: We envision to About us: Greenpanel is a Management: Greenpanel is led by maintain our Leadership prominent wood panel player Mr. Shiv Prakash Mittal, Executive Position in the Panel Industry in India with a national Chairman, and Mr. Shobhan Mittal, a
Slide 6: Our performance, Q1 FY2023
v Part one Our performance, Q1 FY2023 5
Slide 7: Performance Highlights
v Excellent Performance in a 1 traditionally weak quarter Sustained growth (YoY): Revenue 54% 2 EBITDA 100% PAT 161% Performance Maintained Domestic Highlights 3 Realisations 4 Improved Export Realisations Superior working capital hygiene 5 & a Stronger Net Debt Free Balance Sheet 6
Slide 8: Our financial performance in brief
Our financial performance in brief 138.79 462.75 69.23 299.53 Q1 FY2022 Q1 FY2023 EBITDA (₹ Crores) 77.60 29.74 Q1 FY2022 Q1 FY2023 Q1 FY2022 Q1 FY2023 Net Sales Growth (₹ Crores) PAT (₹ Crores) 7
Slide 9: Our financial performance in brief
Our financial performance in brief 25.9 6.3 13.8 Q1 FY2022 Q1 FY2023 RoCE - Post Tax(%) 2.4 30.1 14.8 Q1 FY2022 Q1 FY2023 Q1 FY2022 Q1 FY2023 Earnings per share (₹) Return on Equity (%) 8
Slide 10: Financial Highlights Q1 FY2023 v/s Q1 FY2022
v Financial Highlights Q1 FY2023 v/s Q1 FY2022 Key Ratios (%) Q1 FY2023 Q1 FY2022 Gross Margin 61.60 56.20 EBITDA Margin 30.00 23.10 EBIT Margin 26.10 17.40 Net Margin 16.80 9.90 Sales Promotion / Net Sales 1.30 1.00 Employee Expenses / Net Sales 7.90 9.40 Logistics Costs / Net Sales 4.60 5.10 EPS (
Slide 11: Segment Performance - MDF
Segment Performance - MDF Particulars Q1 FY2023 Q1 FY2022 Growth Net Sales (₹ Crores) 391.90 254.26 54.10% EBITDA Margin 33.30% 25.30% EBIT Margin 28.90% 19.00% Annual Capacity (CBM) 6,60,000 5,40,000 Production (CBM) 1,33,224 1,22,448 8.80% Sales Volume (CBM) 1,25,029 1,12,735 10.90% Capacity Utili
Slide 12: Segment Performance - MDF
Segment Performance - MDF Particulars FY2022 FY2021 Growth Net Sales (₹ Crores) 1,329.80 783.89 69.60% EBITDA Margin 30.90% 22.90% EBIT Margin 25.80% 15.60% Annual Capacity (CBM) 5,63,000 5,40,000 Production (CBM) 4,89,335 3,71,347 31.80% Sales Volume (CBM) 4,95,041 3,80,431 30.10% Capacity Utilisat
Slide 13: Segment Performance - Plywood
Segment Performance - Plywood Particulars Q1 FY2023 Q1 FY2022 Growth Net Sales (₹ Crores) 70.85 45.27 56.50% EBITDA Margin 11.50% 11.00% EBIT Margin 10.0% 8.10% Annual Capacity (Mn Sqm) 10.50 10.50 Production (Mn Sqm) 2.35 1.61 46.00% Sales Volume (Sqm) 2.51 1.75 43.40% Capacity Utilisation 90% 61%
Slide 14: Segment Performance - Plywood
Segment Performance - Plywood Particulars FY2022 FY2021 Growth Net Sales (₹ Crores) 255.94 217.10 17.90% EBITDA Margin 11.00% 12.40% EBIT Margin 9.00% 9.70% Annual Capacity (Mn Sqm) 10.50 10.50 Production (Mn Sqm) 8.48 7.48 13.40% Sales Volume (Mn Sqm) 9.30 8.48 9.70% Capacity Utilisation 81% 71% Av
Slide 15: Overview by MD & CEO
v Overview by MD & CEO “Excellent performance on all fronts in a traditionally weak quarter. We have achieved our target of becoming net debt free by 30th June 2022.” 14
Slide 16: Overview by MD & CEO
v Overview by MD & CEO “MDF sales volumes grew by 10.90% YoY; “Net debt reduced by ₹ 77 crores during Q1 operating margin improved by 800 basis and closing net debt was (-) ₹ 17 crores as points to 33.30%.” on 30th June 2022.” “Plywood sales volumes grew by 43.4% YoY; “Widening distribution reach an
Slide 17: Greenpanel Brand's Financial Health
v Part two Greenpanel Brand’s Financial Health Brand acceptance has supported sustained growth 16
Slide 18: We strengthened realisations across both product lines
v We strengthened realisations across both product lines MDF 39.1 %, Growth in 31,345 ₹ / cubic meter, average MDF realisations Average realization, Q1 FY2023 Plywood 22,528 ₹ / cubic meter, 8.9 282 259 %, Growth in Average realization, ₹ / square meter, ₹ / square meter, average Average realization
Slide 19: We widened our margins by building a stronger business
We widened our margins by building a stronger business We widened our We continued to margins by building remain principally an a stronger business MDF-driven company 30.0 85 % EBITDA margin, Q1 FY2023 688 bps % of revenues drive from MDF, Q1 FY2023 YoY growth in 30.7 % EBITDA margin, EBITDA margin
Slide 20: We strengthened our working capital hygiene
We strengthened our working capital hygiene Working capital Working capital Inventory cycle productivity 16 6.2 36 Days, working capital Revenue generated Days, Total Inventory cycle from resource from every rupee of expressed in days of purchase to sales working capital turnover equivalent, Q1 rece
Slide 21: We utilized our superior performance to draw debt down
We utilized our Receivables Payables superior performance to 8 28 draw debt down Days, receivables Days, payables expressed in days of turnover equivalent, expressed in days of turnover equivalent, 208 Q1 FY2023 Q1 FY2023 ₹ crores, consolidated gross debt, end of Q1 21 39 FY2023 Days, receivables Da
Slide 22: How we strengthened our liquidity
How we MDF capacity Plywood capacity strengthened utilization utilization our liquidity MDF 45.9 81% PLYWOOD 90% Times or x, interest cover, Q1 FY2023 MDF capacity utilisation, Plywood capacity Q1 FY2023 on enhanced utilisation, Q1 FY2023 capacity 4.9 91% 61% Times or x, interest MDF capacity utilis
Slide 23: Our segment-wise financial growth
Our We enhanced the We enhanced the segment-wise value-added value-added financial growth proportion of our proportion of our business business Superior product mix Superior realisations 43.4% 239 12% YoY growth in plywood of revenues derived from ₹ per sq m, Average volumes, Q1 FY2023 decorative ve
Slide 24: Brand Greenpanel: The Journey So Far
v Part three Brand Greenpanel: The Journey So Far 23
Slide 25: Financial and Business Review
v Financial and Business Review 24
Slide 26: Industry Overview
v Industry Overview 5,000 50 3,200 1.75 2021 2026 INDIA CHINA Size of MDF Market in India (₹ Crores) MDF Consumption (in Million CBM) 25
Slide 27: Industry Overview
v Industry Overview REGIONAL DEMAND FOR MDF IN INDIA Others 10% West 15% South 45% North 30% 26
Slide 28: Industry Overview
v Industry Overview 80 70 50 50 30 20 Plywood market share (%) MDF market share (%) REST OF WORLD INDIA INDIA 2030E REST OF WORLD INDIA INDIA 2030E 27
Slide 29: Industry Overview
v Industry Overview In India, MDF has penetrated all the 5.25 regions in terms of market presence and is rapidly advancing in terms of both consumer demand as well as production capacity. The production capacity has grown by more than 15x from 0.15 million CBM in 2010 2.30 to 2.30 million CBM in 202
Slide 30: Where do we stand…
v Where do we stand… Others 7,40,000 Greenpanel 6,60,000 Century Action Tesa 2,00,000 4,00,000 Rushil Décor 3,30,000 29
Slide 31: Where do we stand…
v Where do we stand… We are now among the top 500 listed companies on NSE based on market capitalisation - Rank as on 31 March 2022 is 396 - Rank as on 31 March 2021 was 573 Credit ratings for “long term credit facilities” have consistently improved A A- BBB+ FY2020 FY2021 FY2022 30
Slide 32: Financial Evolution Areas Highlighted
v Financial Evolution Areas Capital Structure Highlighted MDF Business Ply Business 31
Slide 33: Financial Evolution
GREENPANEL FINANCIAL EVOLUTION
Slide 34: Financial Evolution
v Financial Evolution 28% 1,58,574 21% 20% 1,00,100 84,710 58,262 FY2019 FY2020 FY2021 FY2022 NET SALES (₹ Lacs) CAGR (%) 33
Slide 35: Financial Evolution
v Financial Evolution 27.71% 43,939 49% 20.66% 16.53% 15.46% 32% 20,681 25% 14,000 9,005 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 EBITDA VALUE (₹ Lacs) CAGR (%) EBITDA MARGIN (%) 34
Slide 36: Financial Evolution
v Financial Evolution 36,604 23.08% 13.80% 13,818 8.36% 6.35% 7,084 3,702 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 EBIT VALUE (₹ Lacs) EBIT MARGIN (%) 35
Slide 37: Financial Evolution
v Financial Evolution 15.17% 62% 24,047 26% 6.87% 5.93% -35% 6,881 1.71% 3,457 1,446 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 NET PROFIT (₹ Lacs) CAGR (%) NET PROFIT MARGIN (%) 36
Slide 38: Financial Evolution
v Financial Evolution 7,179 19.61 5.61 1,964 2.82 1.18 351 FY2019 FY2020 FY2021 FY2022 FY 2020 FY 2021 FY 2022 Earnings Per Share (₹) Market Capitalisation (₹ Crores) 37
Slide 39: Capital Structure
GREENPANEL CAPITAL STRUCTURE
Slide 40: Capital Structure
v Capital Structure 23 10 8 6 FY2019 FY2020 FY2021 FY2022 Working Capital Turnover Ratio 39
Slide 41: Capital Structure
v Capital Structure GROSS DEBT EQUITY D/E 0.91 D/E 0.85 D/E 0.61 D/E 0.30 28,265 58,651 56,106 44,688 95,165 64,550 66,164 73,038 FY2019 FY2020 FY2021 FY2022 EQUITY (₹ Lacs) GROSS DEBT (₹ Lacs) 40
Slide 42: Capital Structure
v Capital Structure NET DEBT EQUITY D/E 0.88 D/E 0.81 D/E 0.51 D/E 0.06 6,023 56,666 53,752 37,462 95,165 64,550 66,164 73,038 FY2019 FY2020 FY2021 FY2022 EQUITY (₹ Lacs) NET DEBT (₹ Lacs) 41
Slide 43: Shareholding Pattern
v Shareholding Pattern Shareholding structure (%) 100% 90% 16.44% 17.63% 20.33% 24.53% 80% 10.99% 10.74% 5.84% 70% 4.21% 60% 21.54% 18.53% 18.16% 20.73% 50% 40% 30% 51.03% 53.10% 53.10% 53.10% 20% 10% 0% 15.07.2019 31.03.2020 31.03.2021 31.03.2022 Promoter DII FII / FPI Others 42
Slide 44: Shareholding
v Shareholding 63,467 22,305 19,091 19,607 15.07.2019 FY2020 FY2021 FY2022 Number of Shareholders 43
Slide 45: MDF Business
GREENPANEL MDF Business
Slide 46: MDF Business
v MDF Business 87% 69% 60% 47% FY 2019 FY 2020 FY 2021 FY 2022 MDF CAPACITY UTILISATIONS 45
Slide 47: MDF Business
v MDF Business 3,72,530 1,22,512 2,97,372 1,04,903 83,059 2,11,119 1,54,782 42,981 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF SALES VOLUMES - DOMESTIC (CBM) MDF SALES VOLUMES - EXPORTS (CBM) 46
Slide 48: MDF Business
v MDF Business 23,266 1,09,715 15,428 66,325 12,064 47,736 36,711 7,435 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF SALES VALUE - DOMESTIC (₹ Lacs) MDF SALES VALUE - EXPORTS (₹ Lacs) 47
Slide 49: MDF Business
v MDF Business 18,941 29,451 17,298 14,707 14,431 23,718 22,611 22,304 FY 2019 FY 2020 FY 2021 FY 2022 FY2019 FY2020 FY2021 FY2022 MDF REALISATIONS - DOMESTIC (₹/CBM) MDF REALISATIONS - EXPORTS (₹/CBM) 48
Slide 50: MDF Business
v MDF Business 41,136 30.93% 22.94% 18.13% 16.33% 17,979 11,449 7,210 FY2019 FY2020 FY2021 FY2022 FY 2019 FY 2020 FY 2021 FY 2022 MDF EBITDA (₹ Lacs) MDF EBITDA MARGIN 49
Slide 51: Ply Business
GREENPANEL Ply Business
Slide 52: Ply Business
v Ply Business 9.30 81% 78% 8.51 8.48 71% 57% 5.68 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD CAPACITY UTILISATIONS PLYWOOD SALES VOLUMES (Mn SQM) 51
Slide 53: Ply Business
v Ply Business 275 25,594 21,546 21,710 14,116 256 251 251 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD SALES VALUE (₹ Lacs) PLYWOOD REALISATIONS (₹/SQM) 52
Slide 54: Ply Business
v Ply Business 2,803 12.72% 2,702 2,552 12.45% 1,795 11.84% 10.95% FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 PLYWOOD EBITDA VALUE (₹ Lacs) PLYWOOD EBITDA MARGIN (%) 53
Slide 55: Achieved so far…
v Achieved so far… Annual capacity of MDF increased from 540,000 CBM to 660,000 CBM in FY2022 by installation of MAT pre-heating systems Wax emulsion system installed during the year to reduce Wax consumption in MDF production to the tune of 30% Term loan from LBBW prepaid to the extent of EUR
Slide 56: Our widened distribution network
Our widened distribution network 2,535 Number of dealers as on 31st March 2022 12,500+ Number of retailers as on 31st March 2022 17 Branches pan-India Name of physical branches West & Central: Mumbai, Pune, Indore, Ahmedabad South: Bangalore, Hyderabad, Kochi, Coimbatore, Chennai, Vijayawada North:
Slide 57: Thank you
Mr. V. Venkatramani Chief Financial Officer Greenpanel Industries Limited Thank Corporate Office: Thapar House, 2nd Floor, 163, S.P. Mukherjee Road, Kolkata - 700 026 Contact: (+91) 97484 00606 / (+91) 033 4084 0600 Email: v.venkat@greenpanel.com you Website: www.greenpanel.com Mr. Gavin Desa / Mr.
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