Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q3 FY2020 Earnings Presentation
37 slides from Prince Pipes And Fittings's earnings presentation, Feb 11, 2020
Slide 1: Presentation at Conference Call for Analyst and Investors (cover letter)
~PRINCE® --=--- PIPING SYSTEMS PPFL/SE/2019-2020/ l 0 February 11, 2020 To, BSE Limited National Stock Exchange of India Limited 25th Floor, P.J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai-40000 l Bandra (E), Mumbai -400051 Scrip Code: 542907 Scrip Code: PRINCEPIPE Dear Sir/Ma
Slide 2: Swachh Bharat Mission, AMRUT and Smart City Mission
SWACHH BHARAT MISSION To achieve universal sanitation coverage. and to put focus on sanitation” Budget - Rs 12,294 er i AMRUT Providing basic civic amenities like water supply, sewerage, urban transport, parks as to improve the quality of life: get - Rs 77,640 or oe eT , SMART CITY MISSION To drive
Slide 3: Jab piping systems honge leak-free, India banega disease-free
Jab piping systems honge leak-free, India banega disease-free.
Slide 4: Prince Piping Systems Q3 & 9M FY 2020
yd PRINCE’ PIPING SYSTEMS = INVESTOR PRESENTATION Q3 & 9M FY 2020
Slide 5: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 6: Index
Index Industry About Us Key Leadership Overview Strengths Profile Financials Outlook 5
Slide 7: Industry Overview
Industry Overview India’s low Per Capita Plastic Consumption vs World Avg. Domestic Plastic Pipes & Fittings Market Size (In Kg) (Rs. bn) 110 World Avg. 30 550 65 ~300 45 250 270 205 225 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL Research 6
Slide 8: Types of Polymers & Applications
Types of Polymers & Applications 7
Slide 9: Multiple Growth Drivers
Multiple Growth Drivers Substitution Demand Irrigation from Metal Pipes superior advantages over Irrigation Investment to grow metal pipes at 10%-11% (FY18-FY23) Replacement demand of older Fiscal 2018 Budget increased pipes with plastic pipes allocation to PMKSY Government Initiatives Real Estate S
Slide 10: Big getting Bigger
Big getting Bigger Prince Pipes is amongst the Front Government Initiatives like Unorganised Organised Runner Beneficiary Pan India manufacturing and distribution network focusing on Service + Scale + Range GST, Demonetisation Major market share up BIS Strict implementation of Building a strong bran
Slide 11: About Us
About Us Promoted by More than 3 Largest Chheda decades of Range of Family Operations SKU’s Amongst Top Strategic Industry’s 5 Processor in located Most Piping Manufacturing Trusted Industry units Brand Over 3 decades of experience A wide range of 7,167 SKU’s Pan India distribution network 6 State o
Slide 12: Strategic Distribution & Factory Network
Strategic Distribution & Factory Network Upcoming Manufacturing Channel Depots Plant Plants Partners Strategic Manufacturing locations Pan India • Freight is a significant part of our Cost structure • Plants located near raw material sources/ports and principal markets to improve cost efficiencies U
Slide 13: Our Journey
Our Journey ad PRINCE’ PIPING SYSTEMS 1987 2000 2010 2018 Incorporated as a New plant set up at Nominated for the Best Appointed Akshay Kumar Private Limited Dadra for pipe SME Emerging India as Brand Ambassador and Company manufacturing Award 2010 by ICICI rolled out print and ad film Bank, CNBCTV
Slide 14: Continuous Innovation through Thought Leadership
Continuous Innovation through Thought Leadership 13
Slide 15: Sustained Thought Leadership and Execution Capabilities
Sustained Thought Leadership and Execution Capabilities 14
Slide 16: Quality & Reliability – Our Cornerstones
Quality & Reliability – Our Cornerstones 15
Slide 17: Scaling through Jaipur Plant
Scaling through Jaipur Plant ~40 kT • Production at Jaipur plant commenced in Sept, 2019 – Installed capacity of ~40kT in next 2-3 year horizon • Being first mover in North India since 2008 with Haridwar • Strong first mover advantage and unparalleled brand equity in • northern India Jaipur plant- F
Slide 18: Scaling through Telangana Plant
Scaling through Telangana Plant Upcoming integrated 2012 Approx. 50 kT manufacturing Pipe and Acquired Chennai & Fitting facility in Telangana Kolhapur from Chemplast Sanmar Inorganic growth To bolster our endeavour in strategy for South India scaling up our distribution reach and market 2020 Way Fo
Slide 19: Brand Play - Winning In Many Indias
Brand Play - Winning In Many Indias 18
Slide 20: I. Multiple States - Single Strategy: Transit Media
I. Multiple States - Single Strategy: Transit Media 19
Slide 21: II. Digital Marketing Campaign
II. Digital Marketing Campaign 20
Slide 22: III. Brand Association – Mission Mangal
III. Brand Association – Mission Mangal 21
Slide 23: IV. Pan India Influencer & Channel Engagement Activities
IV.Pan India-Influencer & Channel Engagement Activities 22
Slide 24: Channel Partners: Pan India Presence and Strategy
Pan India Presence and Strategy • First mover in 2008 FY15 Sales Profile Geographical spread Key with Haridwar plant Strengths • To scale brand 35.8% equity in North 33.9% 24.7% • 3 Plants across • Next frontier of NORTH different states to growth capture rapid WEST EAST • Asset light model urbaniza
Slide 25: Multi Polymer Product Basket
Multi Polymer Product Basket Key Strengths Wide Range of Pipes & Fittings SKUs 8,085 7,167 7,000 1,600 P1 P2 PRINCE P3 Source: Annual Reports 24 Note: P1 to P3 represents our Peers
Slide 26: Market share gain on multi pronged growth approach
Market share gain on multi pronged growth approach Chart Title PRINCE PIPES INCREASING MARKET SHARE v/s PEERS SET Key 100% Strengths 90% 12.9% 14.2% 14.4% 13.2% 80% 14.6% 16.7% 15.3% 15.2% 16.7% 70% 14.6% 60% 50% 40% 34.6% 33.2% 34.9% 34.0% FY16 FY19 30% 20% 38.0% 37.3% 35.5% 36.1% 10% Market share
Slide 27: Margin Levers
Execution capability with thrust on margin …..due to improvement in product-mix with rising share of Plumbing/SWR pipes Key Strengths Margin Levers 1.0% 1.1% 1.3% 3.2% 64.4% 63.5% 65.0% 65.5% Product Mix Improvement 34.6% 35.4% 33.7% 31.3% FY16 FY17 FY18 FY19 Brand Monetization Agri Plumbing + SWR O
Slide 28: Improvement of cash conversion cycle
Improvement of cash conversion cycle Debtor Days Inventory Days 87 74 67 Key 68 66 59 50 47 Strengths 36 37 FY16 FY17 FY18 FY19 9MFY20 FY16 FY17 FY18 FY19 9MFY20 Creditor Days Working Capital Days 78 74 77 70 60 55 49 51 42 36 FY16 FY17 FY18 FY19 9MFY20 FY16 FY17 FY18 FY19 9MFY20 27
Slide 29: Board of Directors
Board of Directors Directors Work Experience Background • Associated with the company since Mr. Jayant S. Chheda incorporation Founder, Chairman and MD • Awarded the Lifetime Achievement Award‘ at Exp. : 40+ Years the Vinyl India Conference, 2014 • Associated with company since 1996, holds an Mr. Pa
Slide 30: Independent Directors
Independent Directors Directors Work Experience Directorship & Past Affiliation Background Mr. Ramesh Chandak KEC INTERNATIONAL LTD., PARAG MILK • Directorship in multiple corporates and Independent Director FOODS LTD., RR GLOBAL Chartered Accountant Exp. : 40+ Years Mr. Mohinder Pal Bansal ALLCARGO
Slide 31: Strong Core Professional Team
Strong Core Professional Team CXO Work Experience Past Affiliations Background Mr. Shyam Sharda • CA in Accounts & Finance Management – Chief Financial Officer UNITED PHOSPHOROUS LTD, S. KUMARS LTD., ICAI Age : 48 Years; Exp. : 22+ Years • ICWA in Costing & Finance – ICWAI (Intern) Mr. Vininder Sing
Slide 32: Key Highlights 9M FY20
Key Highlights 9M FY20 • For 9M FY20, revenue at Rs. 1,205 crore compared to Rs. 1,073 crore in 9M FY19, growth of 12% • Volume growth for the same period at 11% • For 9M FY20, EBIDTA at Rs. 171 crore compared to Rs. 126 crore in 9M FY19, growth of 36% • EBIDTA margin for 9M FY20 at 14.2% an increas
Slide 33: Financial Matrix - P&L 9M FY20
Financial Matrix - P&L 9M FY20 Growth % Particulars 9M FY20 9M FY19 Y-O-Y Revenue from Operation 1204.9 1072.9 12% EBIDTA 171.1 125.8 36% EBITDA % 14.2% 11.7% 248 bps Other Income 1.8 5.2 -66% Depreciation 37.6 32.2 17% Finance Cost 25.0 27.4 -9% PBT 110.4 71.4 55% PBT % 9.2% 6.7% 251 bps TAX 26.1 1
Slide 34: Financial Matrix - P&L Q3 FY20
Financial Matrix - P&L Q3 FY20 Growth % Particulars Q3 FY20 Q3 FY19 Y-O-Y Revenue from Operation 395.9 361.0 10% EBIDTA 53.3 43.2 23% EBITDA % 13.5% 12.0% 150 bps Other Income 0.8 4.0 -81% Depreciation 13.3 10.9 22% Finance Cost 8.9 9.2 -3% PBT 31.9 27.1 18% PBT % 8.1% 7.5% 54 bps TAX 7.6 9.9 -23% P
Slide 35: Q3 & 9M FY20 Financial Highlights
Q3 & 9M FY20 Financial Highlights Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) Q3 Q3 Q3 5% 396 24 361 29,617 31,122 43 53 17 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 FY20 Q3 FY19 Q3 FY20 9M FY19 9M FY20 9M FY19 9M FY20 Revenue (₹ in Crs.) Sa
Slide 36: Financial Track Record
Financial Track Record ₹ in Crs. Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 1,800 Margin 9.7% 12.9% 12.3% 11.8% 14.2% Margin 150 2.9% 5.9% 5.6% 5.3% 7.0% 1,600 200 130 1,400 1,561 180 184 110 160 1,200 1,315 161 162 171 1,000 1,247 1,202 140 120 90 1,007 70 82 84 800 100 74 74
Slide 37: Thank You!
Thank You! Contact Details: Mr. Shyam Sharda Mr. Rabindra Basu VP & Group CFO Investor Relations :cfo@princepipes.com : investor@princepipes.com 36
Prince Pipes and Fittings — Q3 FY2020 Earnings Presentation on 6ix