Aksh Optifibre Limited · NSE:AKSHOPTFBR
Aksh Optifibre — Q3 FY2019 Earnings Presentation
38 slides from Aksh Optifibre's earnings presentation, February 2019
Slide 1: Aksh Optifibre Limited Corporate Presentation
AKSH OPTIFIBRE LIMITED Corporate Presentation - 2018-19
Slide 2: Disclaimer
Disclaimer This presentation and its contentsare strictly confidential to the recipient, and is being given solelyfor your information and for your use, and may not be copied, published, distributed, reproduced, redistributed, transmitted or re-transmitted, in whole or in part, to any other person o
Slide 3: Content Index
Content INDEX 23. Ophthalmic Lens & Eyewear Market 4. Organizational & Business Offerings 6. Milestones Achieved 27. Future Demand Drivers 7. Board of Directors & Key Management 28. Upcoming Turnkey Projects 8. Shareholding Distribution 29. Capacity Expansion Plans 9. Unique Efficiencies & Initiativ
Slide 4: Organisational Structure
Organisational Structure Promoters Public 27.95% 72.05% AKSH OPTIFIBRE LIMITED WHOLLY OWNED SUBSIDIARY AKSH COMPOSITES PVT. LTD., AOL TECHNOLOGIES FZE, DUBAI AOL FZE, DUBAI Aksh Technologies (Mauritius) LTD SILVASSA AOL COMPOSITES (JIANGSU) CO. LTD., CHINA 4
Slide 5: Business Offerings
Business Offerings BUSINESS SEGMENTS Aksh Optifibre Ltd. Subsidiaries AKSH COMPOSITES PVT. LTD.,SILVASSA Manufacturing of: Manufacturing Services (1Stop Aksh) • OFC & FRP Rods • Optical Fibre • e-Governance Aksh Technologies (Mauritius) LTD • Optical Fibre Cable • Banking AOLManufacturing Composites
Slide 6: Milestones
Milestones 2016 2018 2019 2000 Oct, 2016 : Acquired FRP Plant in Silvassa, Capacity of 2 Lac June,2018 : OFC Capacity June, 2019 : 4 MFK • IPO Listed in BSE & KM. of 0.7 Mn FKM in of Optical fibre NSE Total issue size $6 Mauritius. capacity planned in million June,2018 : OFC Capacity Jafza, Dubai •
Slide 7: Board of Directors & Key Management Personnel
Board of Directors & Key Management Personnel Dr Kailash S. Choudhari Mr. Satyendra Gupta Mr.B.R. Mr. B.R. Rakhecha Rakhecha Mr. Amrit Nath Chairman Managing Director Non Executive Non Independent Director Independent Director Non Executive Non Independent Director Key founding member of Aksh Optifi
Slide 8: Diverse Shareholding Distribution
Diverse Shareholding Distribution as on Sep 2018 3% FIs/NRIs/OCBs Trusts 0.3% 10% Corporate Bodies Shareholding Public 58% Mix % As on 31st Dec’18 28% Promoters As on 31st December, 2018 Particulars %age holding No. of Shareholders Public 58% 69,864 Promoters 28% 8 Corporate Bodies 10% 789 FIs/NRIs/
Slide 9: Unique Efficiencies & Initiatives
Unique Efficiencies & Initiatives Unique business competencies with backward and forward integration. FRP Market leader, with sizable global market share Loose tube speed capacity augmentation to 800 Mts/Mnts from previous 300 Mts/Mnts LED curing in FRP and Optical Fibre Online colouring and tubing
Slide 10: Vision & Mission
Vision & Mission Vision Mission Become a global leader in Strive to be the most efficient ‘OF’ & enabling simple, innovative ‘OFC’ producer through innovation smart living Sustain global leadership in FRP Rod Business To develop, engage and participate in promoting products and services which smarte
Slide 11: Global Presence
Global Presence Jaipur (Rajasthan) INDIA-Services Jafza UAE- FRP Jafza UAE- OF Reengus (Rajasthan)-FRP Jaingsu (China)-FRP Kahrani (Rajasthan) INDIA -Opthalmic Lens Biwadi (Rajasthan) INDIA - OF/OFC Silvassa- INDIA- FRP Company’s Upcoming Facility Silvassa INDIA -OFC Customer Presence Mauritius- OFC
Slide 12: Manufacturing Facilities Overview
Manufacturing Facilities Overview Bhiwadi, India Reengus, India Optical fibre capacity 3 Mn FKM FRP capacity 2 Mn KM Optical Fibre cable capacity 9 Mn FKM Jiangsu, China FRP Capacity 0.4 Mn KM Jafza, Dubai Existing FRP Capacity 1.4 Mn KM Mauritius Planned Optical Fibre capacity 4 Mn FKM OFC Capacity
Slide 13: Geographical Mix
Geographical mix 62% 60% Domestic Domestic Export Rs. 3,560 Mn Rs. 2,718 Mn 53% Rs. 2,461 Mn 38% 40% Export 47% Domestic Rs. 2,183 Mn Export Rs. 2,330 Mn Rs. 1,666 Mn 2016 2017 2018 69% 53% 62% 38% 40% 60% 47% 31% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Domestic sales % Export sales% 13
Slide 14: Achieving Scale
Achieving Scale Production Particulars Unit 2016-17 2017-18 %age Inc/Dec YTD Dec FY19 CKM 86,127 97,217 12.9% 52,377 OFC FKM 25,62,776 27,01,989 5.4% 16,06,531 FRP KM 13,32,039 16,53,843 24.2% 13,26,480 Sales Particulars Unit 2016-17 2017-18 %age Inc/Dec YTD Dec FY19 CKM 87,677 96,812 10.4% 49,519 O
Slide 15: OFC & FRP Sales
OFC & FRP Sales OFC Sales Mix FY18 FRP Sales Mix FY18 Intended to capture higher OFC share in AKSH being a FRP Market leader, with sizable diverse and fragmented export market global market share Expansion of Optical Fibre capacities Urge for expansion in FRP business with accomplished in FY
Slide 16: Service Division Offerings
Service Division Offerings 1 Stop Aksh Fibre to Home • 100 Mbps Internet Speed E-Governance solutions to the public • Multiple IPTV connections • Project: e-Mitra • State : Rajasthan • District Covered : All (33 Districts) • Block Covered: All (276 Blocks) Banking Correspondent • Gram Panchayat Cove
Slide 17: Key Government Initiative
Key Government Initiative Bharat Net Digital India Bharat Net Deployment 3,50,000 3,13,793 3,00,000 2,54,895 An initiative of the Government of India to connect rural areas with high 2,50,000 speed internet network by improving online infrastructure and increasing 2,00,000 Internet connectivity. 1,5
Slide 18: Demand for Optical Fibre Cable in India
Demand for Optical Fibre Cable in India 35 6.4% 7.00% 4.5% 5.6% 4.4% 5.7% 30 5.4% 6.00% 4.8% in million fiber kilometres 25 4.2% 5.00% 3.8% 20 3.3% 29.0 4.00% 15 2.3% 3.00% 1.9% 10 16.2 19.5 2.00% 9.0 9.4 21.2 5 8.6 15.1 1.00% 6.6 7.2 4.2 5.7 0 0.00% CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16
Slide 19: OF Demand in Major Markets - China, US & Europe
OF Demand in major markets - China, US & Europe China US & North America Europe OF Demand in China over CY05 – CY18 OF Demand in US over CY05 – CY18 OF Demand in Europe over CY05 – CY18 330.3 400 320.0 286.1 350 250.9 300 186.8 250 152.7 134.1 200 112.1 96.9 150 89.4 46.8 100 35.3 23.7 16.7 50 0 CY1
Slide 20: Global Business Partners
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Slide 21: Global Business Partners
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Slide 22: Our Way Forward
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Slide 23: Ophthalmic Lens
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Slide 24: Why Optical Lens?
WHY OPTICAL LENS ? Making India self-reliant (Make in India) No Indian manufacturers with huge capacity Handful of organized players in Indian market Deals with polymer and resins for the production Women empowerment 24
Slide 25: Eyewear Market
Eyewear Market $ 23 $ 34 $ 107 $ 172 Billion Billion Billion Billion 2016 2022 Est. 2016 2021 Est. Global Eyewear Market Indian Eyewear Market Current Indian spectacle lens market is INR 8,230 crores 77% of the organized sector vision care comprises expected to grow at a CAGR of 15% for the next
Slide 26: Aksh's Competitive Advantage From Chinese Imports
AKSH‘s Competitive Advantage From Chinese Imports Chinese Imports Vs AKSH Catering 95% of Indian Demand Offering better margins to Wholesalers Exporting “AB”, “B” Grade Lenses to Indian Utilisation of existing distribution network via E-mitra Market for better reach Distribution through Importers Sh
Slide 27: Future Growth Drivers with 360 Degree Sector Coverage
Future Growth Drivers with 3600 Sector Coverage Military / Aerospace Internet of things (IOT) Others (Infrastructure, IT & Healthcare Mining Fibre being the Future Growth backbone for every Drivers network , leverages the overall sector Utilities wise growth Oil & Gas Blockchain Artificial Technolog
Slide 28: Turnkey Project Details
Turnkey Project Details Key projects under the bidding process/Under Execution Turnkey projects Total Total KM of Expd Completion S.No Tender Project Name Tender each (Including 7 years of . Opening(Tnt) Value Project maintenance) 1 ANDHRA PRADESH STATE FIBERNET LIMITED (APSFL). 3,100 cr. 62,000 Apr
Slide 29: Domestic OFC Market Opportunities
Domestic OFC Market Opportunities Mn FKM Potential Segment/Customer 2018-19 2019-20 BSNL 10.00 20.00 Reliance Jio 7.00 10.00 Other Private Telcos 3.00 5.00 Exports 10.00 15.00 Total 30.00 50.00 EPC tender of 30 Mn FKM for Ribbon/ Duct/ Aerial/ FTTH cables has already been opened. These tenders a
Slide 30: Capacity Expansion Update
Capacity Expansion Update Optical Fibre (MN KMS) Optical Fibre Cable (MN KMS) 1.7 4.0 4.5 OFC 4.5 OFC Capacity OF Capacity Capacity of 10.7 1.5 1.5 of 7 MFKM of 9 MFKM MFKM OF Capacity of 3 MFKM 4.5 4.5 4.5 1.5 1.5 1.5 Pre Sep’17 Apr’19 Pre Oct’17 June’18 FRP Rods (MN KMS) 0.4 1.8 FRP Capacity 0.6 o
Slide 31: Financial Indicators
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Slide 32: Financials Q3 FY19
Financials Q3 FY19 Rs Million Particulars Standalone Financial Results Q3'19 Q2'19 Q3'18 QoQ YoY NM'19 NM'18 YoY Total income 1,397 1,777 1,553 -21% -10% 4,583 4,231 8% EBITDA 264 405 197 -35% 34% 988 479 106% EBITDA Margin 19% 23% 13% 22% 11% PAT 88 169 65 -48% 35% 388 137 183% PAT Margin 6% 10% 4%
Slide 33: Financials Contd..
Financials Contd.. Statement of Profit & Loss Rs. Million Balance Sheet Rs. Million Particulars FY14 FY15 FY16 FY17 FY18 Particulars FY14 FY15 FY16 FY17 FY18 Segmental Revenue % Net Worth 3,754 4,086 4,603 4,623 4,838 OFC 53% 63% 68% 66% 65% Debt 1,353 1,423 1,085 1,157 2,380 FRP 42% 31% 24% 26% 28%
Slide 34: Key Financial Indicators
Key Financial Indicators Debt/Equity Ratio Interest Coverage Ratio 0.28x 6.7x 0.23x 0.20x 0.20x 4.2x 0.14x 3.1x 3.2x 2.7x 2.2x 0.07x FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Net Debt/EBITDA •Tail ended debt profile, which will 2.8x be smoothly re-paid in next 5 years 1.8x 1,963 De
Slide 35: Human Capital & Best Practices
Human Capital & Best Practices PROCESSES CULTURE • Automated Processes • Internal Engagement score=4.07/5 • Effective Business Partnering • Open Door Policy • Organization Benchmarking • Decision Making by consensus & Restructuring • Flat Organization- No Designations only levels • Transparency by m
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility Undertook Massive Plantation drive in Bhiwadi and Reengus Industrial Area, Planted More than 65,000 Trees so far Bhiwadi 740 STUDENT ENROLLMENT IN AKSH’S ADOPTED SCHOOLS 717 655 After Aksh’s adoption Student Enrolment increased by 260 in Santhalka School 587 (57%)
Slide 37: Awards & Accolades
Awards & Accolades Bhamashah Frost & Sullivan Wind Insider Gov of Rajasthan Contribution towards Best OFC Supplier Network Technology know Societal Upliftment Technology Leader how Facilitator 01 02 03 04 CII DGFT - India Manufacturing 5S Excellence Star Export Association Enabler House Status CSR E
Slide 38: Contact
Contact Pavleen Taneja Investor Relations +91-11-26991508/509 Pavleen@akshoptiifbre.com Investor.relations@akshoptifibre.com A-25, 2nd floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi-110044, India www.akshoptifibre.com 38