Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q1 FY22 Earnings Presentation
40 slides from Prince Pipes And Fittings's earnings presentation, August 2021
Slide 1: Investor Presentation Q1 FY22
Prince Pipes and Fittings Limited INVESTOR PRESENTATION Q1 FY22
Slide 2: Disclaimer
DISCLAIMER This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
Slide 3: Table of Contents
TABLE OF CONTENTS Q1 FY22 FINANCIAL PERFORMANCE HIGHLIGHTS 04 INDUSTRY OVERVIEW 10 UNION BUDGET 2021-22 HIGHLIGHTS AND RELEVANCE 12 COMPANY OVERVIEW 13 LEADERSHIP, INNOVATION AND EXECUTION 23 PRODUCT BASKET 24 THE ROAD AHEAD… 25 SEEKING GROWTH…THE ESG WAY 31 AWARDS AND BRANDING 32 CORPORATE SOCIAL R
Slide 4: Q1FY22 Performance Highlights
Q1FY22 PERFORMANCE HIGHLIGHTS o For Q1FY22, revenue at ₹ 331 crore compared to ₹ 302 crore in Q1FY21, grew by 9% • Led by the plumbing and SWR portfolios delivering healthy performance o Sales volume reduced by 26% at 18,466 MT in Q1FY22 as compared to 24,792 MT in Q1FY21 o Volume was impacted owing
Slide 5: Q1FY22 Business Highlights
Q1FY22 BUSINESS HIGHLIGHTS o Prince Pipes Launches Prince OneFit with Corzan CPVC Technology ➢ Prince OneFit Corzan is licensed from Corzan® CPVC Technology of Lubrizol Corporation -- preferred global partner of Prince Pipes ➢ Prince Onefit Industrial Piping Systems offer high-performance, user-frie
Slide 6: Financial Performance for Q1 FY2022
FINANCIAL PERFORMANCE FOR Q1 FY2022 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 300 00 24792 18 250 00 200 00 18466 150 00 11 100 00 302 331 500 0 41 32 0 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 6 INVESTOR PRESENTATION | Aug 2021
Slide 7: Financial Performance for Year Ended FY2021
FINANCIAL PERFORMANCE FOR YEAR ENDED FY2021 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 1,38,289 2,072 1,32,816 362 222 1,636 229 113 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 7 INVESTOR PRESENTATION | Aug 2021
Slide 8: Profit & Loss Statement as on 30th June, 2021
PROFIT & LOSS STATEMENT AS ON 30TH JUNE, 2021 ₹ in Crore Particulars Q1FY22 Q1FY21 Y-o-Y (%) Total Sales 331 302 9% Raw Material Consumed 233 220 6% Employee benefit expenses 21 22 -3% Other Expenses 36 29 23% EBITDA 41 32 30% EBITDA Margin (%) 12.5% 10.5% 200 bps Depreciation 16 14 14% EBIT 25 18 4
Slide 9: Working Capital Cycle
WORKING CAPITAL CYCLE 116 58 77 55 36 36 68 50 42 66 67 78 59 47 70 40 77 59 62 40 66 57 128 69 FY17 FY18 FY19 FY20 FY21 Q1FY22 Debtor Days Inventory Days Creditor Days Working Capital Days 9 INVESTOR PRESENTATION | Aug 2021
Slide 10: Industry Overview
INDUSTRY OVERVIEW India's Low per capita pipe Consumption vs World Avg. (in Kg) Domestic Plastic Pipes & Fittings Market Size (₹. in Bn) 12-14% CAGR 110 550 10-12% CAGR 65 World Avg. 30 ~300 270 250 45 225 205 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL
Slide 11: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Swachh Bharat Mission 75% of 600 million – To achieve universal households do sanitation coverage and Smart City Mission – To Indians face drive economic growth not have high to extreme to put focus on drinking water By 2030, 40% of and improve the quality stress over Sanitat
Slide 12: Union Budget 2021-22 Highlights and Relevance
UNION BUDGET 2021-22 HIGHLIGHTS AND RELEVANCE PLUMBING PIPE INFRASTRUCTURE PIPE AGRICULTURE PIPE o The Urban Swachh Bharat o Enhancement in the Agricultural Mission 2.0, on the other hand, o Ministry of Housing and Urban Credit to Rs. 16.5 Lakh crores in will be undertaken with a affairs has been al
Slide 13: Company Overview
COMPANY OVERVIEW Vision Mission Prince Pipes and Fittings Limited is To be an acknowledged leader in Indian plastic Our mission is to bring a revolution in plastic an Indian manufacturer of polymer piping industry by exceeding customers piping industry through innovative solutions expectations and m
Slide 14: Prince at a Glance
PRINCE AT A GLANCE 1987 7 11 7,200+ Incorporation No. of Facilities Warehouses SKUs ~1,500+ CRISIL A Long term 1,706 Channel Partners Outlook: POSITIVE Debt free Employees 7,896 Cr 222 Cr ~2,59,000 MTPA Prince and Market Cap PAT Total installed Trubore (For June 30th 2021) (For FY 2021) Capacity Pro
Slide 15: Our Strategy to Success
OUR STRATEGY TO SUCCESS We generate organic growth by focusing on innovation, market proximity, digitalization and our industrial potential. Organic growth 1 2 Promoting clean energy at Manufacturing units Operational Excellence 3 We achieve cost reductions by continuously We cater to new product se
Slide 16: Our Journey
OUR JOURNEY 2000 New plant set up 2018 1987 at Dadra Appointed Akshay Kumar 2020 (Western India) Incorporated as a as Brand Ambassador and for pipe Got listed on BSE & NSE private limited company rolled out campaigns manufacturing with an IPO of ₹ 5bn across platforms 2012 Acquisition of plants in T
Slide 17: Our Manufacturing Capabilities
OUR MANUFACTURING CAPABILITIES Athal 1995 Dadra 2000 Haridwar 2008 Chennai 2012 Product Product Product Product Installed 15,982 Installed 56,381 Installed 82,224 Installed 55,836 Capacity MTPA FITTINGS Capacity MTPA PIPES Capacity MTPA PIPES & Capacity PIPES MTPA FITTINGS Kolhapur 2012 Jaipur 2019
Slide 18: Strategic Distribution - Expanding Footprints
STRATEGIC DISTRIBUTION - EXPANDING FOOTPRINTS NORTH EAST JAMMKASHMIR First mover in 2008 with Next frontier of growth HIMACHAL PRADESH Haridwar plant Asset light model To scale brand equity in North PUNJAB through outsourcing HARYANA UTTARAKHAND HARIDWAR g CORPORATE OFFICE DELHI GHAZIABAD JAIPUR RAJ
Slide 19: Commissioning of Telangana Plant - Opportunity Up for Grabs
COMMISSIONING OF TELANGANA PLANT - OPPORTUNITY UP FOR GRABS The Telangana plant has commenced its operations way before our time schedule and is currently operating at 4,000 MT. The total capacity of ~50 KT will be executed in a phased manner over the next 2-3 years This move shall aid us to discove
Slide 20: Always Staying Ahead of the Curve
ALWAYS STAYING AHEAD OF THE CURVE 2008 2012 2014 2020 2021 First company to Acquired Chennai & Early movers in Tie up with Lubrizol Commissioning of venture into North Kolhapur plant Eastern India with a to form CPVC Telangana plant in India and set up a through inorganic unique asset light compound
Slide 21: Investment Rationale
INVESTMENT RATIONALE A management Strategic A nationwide Portfolio of Long-term team of experienced placement of robust 7200+ SKUs, partnerships to and skillful manufacturing distribution one of the ensure smooth professionals with plants running network largest amongst and cohesive proven leadershi
Slide 22: Market Consolidation – A Boon for Prince Pipes & Fittings
MARKET CONSOLIDATION – A BOON FOR PRINCE PIPES & FITTINGS PPFL is one of the front-runners to benefit from these events and has gained significant market share over the last seven years 4 Opportunity to grab major market share as the Nationwide manufacturing and distribution unorganised sector becom
Slide 23: Leadership and Innovation
LEADERSHIP AND INNOVATION Over 3 decades, built a deep knowledge of handling multiple polymers Leading to a transition in polymer profile Largest range of SKU’s across multi polymers Early Adopters Market Leaders Innovative Trendsetters Sustained market share in PP-R In DWC Underground Drainage In A
Slide 24: Product Basket
PRODUCT BASKET Plumbing Solutions Sewage & Underground Drainage Portfolio Irrigation Solutions CPVC Plumbing SWR Piping Agriculture Piping UPVC Plumbing Low Noise SWR Borewell Storage Solutions PPR Plumbing & Underground Drainage industrial Piping Underground Double Roofwater Wall Corrugated Pipes 2
Slide 25: The Road Ahead…Why Prince FlowGuard Plus?
THE ROAD AHEAD…WHY PRINCE FLOWGUARD PLUS ? 1st Choice World's most World-Class Extreme Globally for preferred range Product now Temperature Potable Water of CPVC Pipes & comes with 30 Resistance for The Inventors World’s Applications Fittings with 50 Years of Trust use upto 93°C India's Leading Pipe
Slide 26: Technical Collaboration with Tooling Holland
TECHNICAL COLLABORATION WITH TOOLING HOLLAND INNOVATING TO THE NEXT LEVEL PRINCE PIPES TIES UP WITH TOOLING HOLLAND BV Building & offering Great impetus to superior products, aligned Prince Pipes’ to global standards and at Global leaders in Mould growth plans competitive costs Manufacturing Researc
Slide 27: Cementing Relationship
CEMENTING RELATIONSHIP Prince Pipes will leverage the Ultratech Building Solutions (UBS) relationship of dealers registered platform has a vast dealership network on its UBS platform of 2,000+ dealers Aligned with our strategy of ”winning in many Indias” UBS-Prince Pipes synergy is a Penetration in
Slide 28: Prince Pipes Launches Prince OneFit Corzan CPVC Technology
PRINCE PIPES LAUNCHES PRINCE ONEFIT CORZAN CPVC TECHNOLOGY Prince Pipes is now India’s only Corzan® CPVC Technology has been company to offer 3 polymer solutions globally adopted as the preferred high- for Industrial applications through performance piping technology across EASYFIT in PVC, GREENFIT
Slide 29: Storefit – Paani Ka Bank
STOREFIT – PAANI KA BANK Launched Range of Tanks under the Brand 30 Years Leveraging experience in Plastics & Building materials offering a wide range of sizes from 500 to 5,000 ltrs Strong Pan India Presence Advantage of Multi-Locations Manufacturing & Marketing Robust Distribution Infrastructure E
Slide 30: Focus on Triple Bottom Line
FOCUS ON TRIPLE BOTTOM LINE 2.7M Pounds Coal Burned/Year Financial Solar Energy 1 Equal To 40K Trees Seedlings, Grown for a Decade Triple Reduce Green-house Gas Emissions over the Bottom-line Goals 2 Environmental 23% past 4 years 32% Carbon Footprints reduced in 1 year 38,873 Carbon Footprints save
Slide 31: Seeking Growth – The ESG Way
SEEKING GROWTH – THE ESG WAY… Use Clean Energy Conserve Water Environment Efficient Waste Management The challenging times during the pandemic showcased the value of Manufacture high-quality products environment, sustainability and Contribute towards Social Causes cleanliness. We, at Prince Pipes ar
Slide 32: Awards & Achievements
AWARDS & ACHIEVEMENTS Certificate of appreciation Mr. Parag Chheda - JMD was Digital Transformation for active association at the awarded the ‘Inspiring Awards 2016 – 2016 Gujarat Premier 10th Mega Business Leader Award’ at Transformation with Industrial Exhibition VCCI the Economic Times Cloud Netw
Slide 33: Product Branding
PRODUCT BRANDING Auto Branding & Marketing Maha Kumbh, Ab Ghar Ghar Mein Ganga Campaign Promoting Prince + FGP through shop boards Outdoor Hoardings Creatives Auto Branding & Marketing Outdoor Hoardings Creatives 33 INVESTOR PRESENTATION | Aug 2021
Slide 34: Pan India Influencer & Channel Engagement Activities
PAN INDIA-INFLUENCER & CHANNEL ENGAGEMENT ACTIVITIES 34 INVESTOR PRESENTATION | Aug 2021
Slide 35: Pledge to Donate Oxygen Concentrators for Bihar, Rajasthan and Telangana
PLEDGE TO DONATE OXYGEN CONCENTRATORS FOR BIHAR, RAJASTHAN AND TELANGANA Prince Pipes & Fittings Limited (PPF) announced that the company is airlifting oxygen concentrators from international partners to contribute to India’s relief efforts in fighting the surging second wave of Covid-19. 100 Oxygen
Slide 36: Board of Directors
BOARD OF DIRECTORS Independent & Nominee Directors Mr. Ramesh Chandak, Mr. Dilip Deshpande, Mr. Jayant S. Chheda Independent Director Independent Director Founder, Chairman and MD With past affiliations at KEC International Ltd., Parag He has more than 45 years of experience, having served Milk Food
Slide 37: Governed with Strong Management Team
GOVERNED WITH STRONG MANAGEMENT TEAM Strong Core Professional Team Mr. Shyam Sharda, Mr. Vininder Singh Baweja, Mr. Ashok Mehra, Chief Financial Officer Chief Operations Officer Vice President– Sales & Marketing - He is a commerce graduate from Jodhpur (Rajasthan) An IIT Roorkee graduate in MBA and
Slide 38: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 12.9% 12.3% 11.8% 14.0% 17.5% 5.9% 5.6% 5.3% 6.9% 10.7% 2,068 Margin Margin 1,561 1,631 362 222 1,247 1,315 229 184 113 161 162 82 74 74 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY
Slide 39: Outlook
OUTLOOK Expanding our distribution 00 network across target markets Introducing value added products Improving RoCE and RoE ratios to ensure cost efficiency and by monitoring volume and enhanced market share price growth Bringing a more PREMIUM touch to the PRINCE brand Achieving sustainable growth
Slide 40: Thank You
THANK YOU PRINCE PIPES AND FITTINGS LTD. CONTACT DETAILS Mr. Shyam Sharda THE RUBY, 8TH FLOOR, 29, SENAPATI BAPAT MARG CFO (TULSI PIPE ROAD), DADAR (WEST), MUMBAI- 400028, INDIA. Mail: shy@princepipes.com Fax: + 91 22 6602 2220 Email: info@princepipes.com Mr. Anand Gupta Deputy CFO Mail: aag@princep
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