Apl Apollo Tubes Limited · NSE:APLAPOLLO
Apl Apollo Tubes — Investor Presentation (February 2017)
40 slides from Apl Apollo Tubes's investor presentation, February 2017
Slide 1: APL Apollo Tubes Ltd. Investor Presentation February 2017
APL APOLLO TUBES LTD. Investor Presentation February 2017 Infrastructure Construction Automobiles Energy Agriculture
Slide 2: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 3: Table of Content
Table of Content 1 Company Overview 2 Growth Drivers 3 Way Forward 4 Financial Highlights 5 Conclusion 6 Annexure 3
Slide 4: APL Apollo Business Overview
APL Apollo Business Overview Infrastructure Construction Automobiles Energy Agriculture
Slide 5: India's Leading Branded Steel Tubes Manufacturer
India’s Leading Branded Steel Tubes Manufacturer Technology-focused Company – at the forefront of launching innovative product offerings Catering to an array of sectors – Infrastructure, Construction, Automobile, Energy, Agriculture, etc. Close-to-Demand Pan-India Presence – only player with facilit
Slide 6: One-stop shop for a wide spectrum of steel structural products
‘One-stop shop’ for a wide spectrum of steel structural products Catering to key sectors of the Indian economy Infrastructure Construction Automobiles Energy Agriculture • Metros • Conduit • Truck & Bus body • Power • Agriculture • Buildings • Support Structures • Heavy Vehicle Axles • Water Transpo
Slide 7: Close-to-Demand Pan-India Footprint
Close-to-Demand Pan-India Footprint Local Market Presence aided by 3-tier Distribution and Solid Supply Chain Mechanism Direct, 20% (Unit 1) Sikandarabad Uttar Pradesh (Apollo Metalex) 225,000 Sikandarabad State wise Wholesalers Uttar Pradesh 225,000 Retailers District wise Distributors Raipur (Lloy
Slide 8: Milestones
Milestones o Acquired Apollo o Name changed to APL Metalex Private Apollo Tubes Limited Limited from Bihar Tubes o Year of o Commissioned a o Awarded Star o Received UL, CE & SGF Incorporation new tube mill Export House France certifications and modern status along with other o Set-up the first gall
Slide 9: Industry Parameters
Industry Parameters Steel pipes and tube manufacturing among the fastest growing industries across the globe India is one of the leading ERW steel tubes manufacturing hubs in the world - Domestic production at ~7 million TPA Ever-increasing pent-up demand led by increased infrastructure construction
Slide 10: Growth Drivers
Growth Drivers Infrastructure Construction Automobiles Energy Agriculture
Slide 11: Pillars of Growth
Pillars of Growth The ‘APL Apollo’ Brand Edge Unlocking New Markets Pan India Presence APL Apollo India’s Leading Branded Steel Tubes Manufacturer Niche Innovative Strategic Offerings Capacity Addition Adoption of Latest Technologies 11
Slide 12: APL Apollo Brand – Leading the Shift from Commodity to Branded
APL Apollo Brand – Leading the Shift from a Commodity to a Value-Added Branded product • Developed a focused Branding Strategy in the year 2013, serving a two-fold objective: – Creating awareness and visibility of the brand – Providing consumers a first-hand feel of products • Constantly driving the
Slide 13: Strengthening Brand Reach
Strengthening Brand Reach • Driving market share gains through various brand building and brand awareness initiatives • Brand building programs include, – Large scale Fabricator meets – Participation in global and domestic exhibitions – Rural brand van activation programs • Appointed Marketing Consu
Slide 14: Expansive Manufacturing & Distribution Footprint
Expansive Manufacturing & Distribution Footprint • India’s largest tubes player with a capacity of 1.3 MTPA Current capacity of 1.3 MTPA across plants • Lower freight costs as facilities and depots are close to demand (MTPA) hubs Murbad (Lloyds Linepipes) 350,000 • Operating six strategically locate
Slide 15: Capacity Expansion Plan
Capacity Expansion Plan • Expanding capacity from 1.3 MTPA to 2 MTPA by FY2018 • Tapping Easter markets - Greenfield plant in Raipur to be Upcoming Capacities (MTPA) operational by Q4 FY17 Raipur (Greenfield Capacity) 200,000 – Allocated Rs. 125 crore of capex for the upcoming Raipur plant • Consoli
Slide 16: Pioneer in Instituting the Latest Technology
Pioneer in Instituting the Latest Technology • Leader in adopting the latest technology from around the globe – Introduced latest technologies – High speed mills from Europe (increased speed by 5x), Strip Galvanizing lines, and the unique Rotary Sizing Mills – In 2016, the Company introduced the lat
Slide 17: Direct Forming Technology
Direct Forming Technology Hollow Sections Rollover time Latest Global of varying Customized reduced to ~20 Technology for shapes / sizes / Results in direct orders / small min from 48 making Hollow thickness are material savings orders also hours Sections of formed directly of ~3-7% accepted (conven
Slide 18: In-line Galvanizing Technology
In-line Galvanizing Technology Latest zinc plating and coating technology Inline hot-dip galvanizing process performed on mill CUSTOMER BENEFITS • Minimal human error Tube making & zinc plating simultaneously performed • Time savings • Cost-effective Secondary operations of hot-dip galvanizing after
Slide 19: Path-breaking Product Offerings
Path-breaking Product Offerings • Only company to offer a vast product portfolio of over 400 varieties Products Portfolio • Product portfolio at 2x the product basket of the closest competitor • Launched colour coated pipes in India for the 1st time Black Hollow Section • First to introduce pre-galv
Slide 20: Robust Product Offerings across 400+ varieties
Robust Product Offerings across 400+ varieties Continuously augmenting the product basket New Patented Designs Double At least Door Frame D Shape Hand Rail 30% Section savings as Narrow compared Sections to Normal wood Single Door Frame Z Shape L Section Section Paint Pipe T Shape Elliptical Coated
Slide 21: Unlocking Opportunities – OEMs, Exports & Untapped markets
Unlocking Opportunities – OEMs, Exports & Untapped markets • Tapping potential across newer areas such as Original OEM 2% Equipment Manufacturers (OEMs), Export Markets & Untapped 10% markets – key for driving value growth across business • Focus on OEMs & Export Markets 2016 2020 P – Introduction o
Slide 22: Growth Strategy
Growth Strategy Internal Growth Levers Customer, Areas & Products Brand Development (CAP) Monetizing Tapping Preferred Targeting new Expanding know-how to Export & supplier Higher brand Customer footprint in launch New OEMs among visibility Relations New Areas Products opportunities distributors Sol
Slide 23: Way Forward
Way Forward Infrastructure Construction Automobiles Energy Agriculture
Slide 24: Vision 2020
Vision 2020 Well-defined strategy with tangible targets 2.5 million ton Strong Balance- production by FY2020 Sheet Targeting above industry average To become debt-free growth rates / Roadmap for and reduced Working capacity expansion in place Capital cycle Margin Strengthen product accretive and cor
Slide 25: Vision 2020: Notable shift towards Value-Added Products
Vision 2020: Notable shift towards Value-Added Products FY2016 FY2020 Projection 9 Lakh Tons Per Annum 25 Lakh Tons Per Annum Break Up Product-wise Break Up Product-wise (P) 25% 25% 25% 25% 20% 20% 15% 15% 10% 10% 10% 0% 0% 0% Hollow Sections Hollow Sections DFT Technology Pre-galvanized Round Pipes
Slide 26: Financial Highlights
Financial Highlights Infrastructure Construction Automobiles Energy Agriculture
Slide 27: Consistently Delivering Strong Performance
Consistently Delivering Strong Performance Particulars 2007 2010 2012 2015 2016 CAGR Sales (Rs. Crore) 230 666 1, 536 3,482 4,656 40% EBITDA (Rs. Crore) 15 66 115 186 292 39% PAT (Rs. Crore) 7 30 49 64 101 35% Net Worth (Rs. Crore) 16 191 299 495 568 49% EPS (Rs.) 21 15 23 27 43 Ratios ROCE (%) 55 1
Slide 28: Strong Financial Track-record
Strong Financial Track-record Revenues Production (MTPA) 5,000 CAGR: 32% 4,656 1,000,000 CAGR: 32% 898,690 4,000 800,000 682,193 3,182 Rs. crore Rs. crore 2,862 572,000 3,000 600,000 464,000 2,247 2,000 1,536 400,000 294,300 1,000 200,000 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 F
Slide 29: Manufacturing Revenue Breakup & Margin Profile
Manufacturing Revenue Breakup & Margin Profile Revenue Revenue Revenue Revenue Products Contribution Contribution Contribution Contribution FY14 (%) FY15 (%) FY16 (%) 9M FY17 (%) Hollow Sections 32 34 43 46 Round Pipes (Black) 22 23 19 15 Pre-galvanized Tubes (GP) 24 24 20 23 Galvanized Tubes (GI) 1
Slide 30: Financial Parameters
Financial Parameters ROCE (%) RONW (%) 30% 25% 26% 21% 21% 25% 21% 20% 18% 20% 20% 18% 18% 15% 14% 15% 15% 10% 10% 5% 5% 0% 0% FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Networth (Rs. Crore) Long-term Debt-Equity Ratio 600 568 0.35 0.33 0.33 495 0.28 500 0.30 425 0.25 0.23
Slide 31: Financial Parameters
Financial Parameters F. Asset Turnover Ratio Inventory Days Debtor Days 7 6.3 6.1 50 47 46 5.9 6 5.6 41 5.0 40 36 36 37 35 5 32 4 30 20 18 3 20 2 10 1 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 31
Slide 32: Operating Parameters
Operating Parameters Capacity (MTPA) Distributors (Nos) 1,400 1,300 700 600 Thousands 1,200 1,050 600 1,000 800 500 375 800 600 400 300 500 275 600 300 200 400 200 200 100 - 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 Warehouses (Nos) 30 26 26 26 25 19 20 15 15 10 5 0 FY2
Slide 33: Conclusion
Conclusion Infrastructure Construction Automobiles Energy Agriculture
Slide 34: The 'APL Apollo' Edge
The ‘APL Apollo’ Edge PROFICIENT EXECUTION CYCLE ECONOMIES OF SCALE Best-in-Industry Capacity Utilization Capacity of 1.3 MTPA of Steel across plants, leading to an order Pipe – more than double the book turnaround of ~8 hours closest competitor PIONEER IN INTRODUCING NEW COST ADVANTAGES TECHNOLOGIE
Slide 35: Annexure
Annexure Infrastructure Construction Automobiles Energy Agriculture
Slide 36: Key Market Statistics
Key Market Statistics As on Top Public Shareholders (more than % Key Market Statistics December 31, 2016 1%) held BSE/NSE Ticker 533758 / APLAPOLLO Kitara 16.3% Building Materials / Industry IDFC 6.5% Infrastructure CMP (Rs.) 915 DSP Blackrock 5.9% Market Cap (Rs. Crore) 2,159 HDFC Trustee Fund 4.9%
Slide 37: Board of Directors
Board of Directors Executive / Promoter Independent Directors Directors Mr. Sanjay Gupta Anil Kumar Bansal Executive Chairman Independent Director Mr. Ashok K. Gupta Abhilash Lal Managing Director Independent Director Vinay Gupta S. T. Gerela Director Independent Director Romi Sehgal Neeru Abrol Dir
Slide 38: Management Team
Management Team Mr. Sanjay Gupta Mr. Ashok K. Gupta Sharad Mahendra Romi Sehgal Executive Chairman Managing Director Director Director Deepak Goyal Arun Agrawal Ajay Garg Shiv Kumar Bansal CFO VP Operations VP Operations VP Sales J P Singh Dinesh Talniya Amit Kapoor HRD Head IT Head RM South Buildin
Slide 39: About Us
About Us APL Apollo Tubes Limited (APL Apollo) [BSE: 533758, NSE: APLAPOLLO] is India’s Leading Branded Steel Tubes Manufacturer. Headquartered at Delhi NCR, the Company operates six manufacturing facilities with a total capacity of 1.3 Million TPA. It has a PAN-Indian presence with units strategica
Slide 40: Thank You
Thank You Infrastructure Construction Automobiles Energy Agriculture
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