Hi-tech Pipes Ltd. · NSE:HITECH
Hi-tech Pipes — Q1 FY22 Earnings Presentation
41 slides from Hi-tech Pipes's earnings presentation, July 2021
Slide 1: Result Update Presentation cover letter to NSE
@ +91-11-48440050 a , as Fli- O- | Mi info@hitechpipes.in p LPrES ._.= ® hitechpipes.in To, 29-July-2021 National Stock Exchange of India Limited Exchange Plaza, Plot No.C/1, G Block, Bandra Kurla Complex (E), Mumbai-400051, Symbol: HITECH Subject: Result Update Presentation Dear Sir/ Madam, In refe
Slide 2: Hi-Tech Pipes Limited Investor Presentation – Q1FY22
Hi-Tech Pipes Limited Providing Innovative Solutions Investor Presentation – Q1FY22 IMAGE HERE July 2021
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hitech Pipes Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: Q1FY22 Highlights
Q1FY22 Highlights
Slide 5: Key Performance Indicators – Q1 FY22
Key Performance Indicators – Q1 FY22 Revenue (Rs in Cr) EBITDA (Rs in Cr) PAT (Rs in Cr) +152% +134% 391.5 383.3 21.4 17x 8.9 19.3 6.5 151.2 9.1 0.5 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Sales Volume (MT) EBITDA Per MT (Rs) 67,500 3,467 61,591 2,861 2,606 35,030 Q1FY21 Q4FY2
Slide 6: Consolidated Profit & Loss Statement – Q1 FY22
Consolidated Profit & Loss Statement – Q1 FY22 Particulars (Rs crore) Q1 FY22 Q1 FY21 Y-o-Y % Q4 FY21 Q-o-Q % FY21 Total Income from Operations 383.26 151.88 152.35% 391.51 -2.11% 1340.63 Raw Materials 346.60 132.80 160.99% 353.55 -1.97% 1210.20 Employee Cost 4.51 3.19 41.21% 6.01 -24.99% 18.78 Othe
Slide 7: Q1 FY22 – Operational Highlights
Q1 FY22 – Operational Highlights Sales volumes increased by 76% to 0.62 lakh tonnes as compared to 0.35 lakh tonnes in Q1FY21 Capacity Utilisation stood at 42% in Q1FY22, improved from 28% in Q1FY21 Sales Realisation improved by 51% to Rs 63,674/tonne as against Rs 42,134/tonne in Q1FY21 Total Cost/
Slide 8: Company Overview
Company Overview
Slide 9: Hi-Tech Pipes at a Glance
Hi-Tech Pipes at a Glance Product Portfolio Distribution Network The product portfolio of the company comprises of MS Pipes, The Company has robust distribution network of 390+dealers & Galvanized Iron Pipes, MS Hollow Section, Large Dia Hollow Section, distributors across India with 550+SKUs and 15
Slide 10: Hi-Tech Pipes | Capabilities Built So Far
Hi-Tech Pipes | Capabilities Built So Far Installed Capacity Diversified Presence Business Experience Employees Built Core 5 Plants across 4 Strength 5,80,000 MTPA states 35+ years ~1,100+ Dealers & Distributors SKUs OEM Customers Strong Contractor Consumers Distribution 390+ 550+ 90+ 150+ Product O
Slide 11: 35 Years of Consistent Growth and Innovation
35 Years of Consistent Growth and Innovation 2019-2021 2017-2019 ▪ Started Colled Rolling expansion project for ▪ Commenced wider product of HRoP, 2012-2016 CRCA, CRFH, GPGC operations at Hindupur (Andhra 2001-2010 ▪ Commenced Khopoli, ▪ Sikanderabad Unit –II Pradesh) Unit IV Maharashtra facility fa
Slide 12: Continued Investment in Expanding Capacity
Continued Investment in Expanding Capacity Enhancing Capacities Year-on-Year (Metric Tonnes per Annum) One of the India’s leading manufacturer of Steel Pipes with presence in more than 5,000 retail stores 5,80,000 Continuously enhancing manufacturing capabilities 5,00,000 80,000 while diversifying i
Slide 13: Strategic Located plants with Pan-India Presence and Distribution
Strategic Located plants with Pan-India Presence and Distribution Encompassing 580,000 MTPA of production ambience and a strong network of 390+ Dealers & Distributors Pan India Capacity Plant Location Product Portfolio (MTPA) MS Steel Pipes, Hollow Sikandrabad, UP, Sikandrabad, UP 2,55,000 Sections,
Slide 14: Well Established Branded product Portfolio & User Industries
Well Established Branded product Portfolio & User Industries Agriculture and Agriculture and Commercial Buildings Infrastructure, Airports, Railing, Fencing, Road Water Management Poly Houses and Housing Projects Metro Stations Signs, Cladding, Furniture & Containers, Solar Mounting Structure, Roof
Slide 15: Upcoming Products
Upcoming Products ▪ Corrugated Galvanized Iron or Steel sheets are a ▪ Coated Steel Sheet has been used extensively by the lightweight roofing material made of thin sheets, construction industry throughout the world nearly two stiffened by corrugations centuries, because of its excellent corrosion r
Slide 16: Board of Directors
Board of Directors Mr. Ajay Kumar Bansal Mr. Anish Bansal Chairman & Managing Director Whole-Time Director ▪ An Industry stalwart with over 36 years of experience in the ▪ B.Sc. (Economics) in Banking & Finance from the Cardiff University, steel industry England, with over 15 years of experience in
Slide 17: Long Standing Relationships with Marquee Clientele
Long Standing Relationships with Marquee Clientele Marquee Clients Marquee Projects which used Hi-Tech Products Crash Barrier at Curtain Walling Structure at Toll Plaza at Fire Fighting Pipes at Grandstand Roofing at Yamuna Expressway Mumbai Int’l Airport Bandra-Worli Sea Link Seven Hills Hospital B
Slide 18: Quality Certifications and Client Awards
Quality Certifications and Client Awards CERTIFICATE EXEMPLARY DNV OF AMONG TOP GROWTH & BUSINESS RECOGNITIO 100 SMEs INNOVATIO ASSURANC N SKOCH N AWARD E MINISTRY OF GROUP SUPER SME CERTIFICAT COMMERCE E INDUSTRY BEST PERFORMANCE COMPANY OF EXCELLENCE AWARD TOP THE YEAR MINISRY OF STEEL, PERFORME A
Slide 19: Recent Developments
Recent Developments
Slide 20: New Value-Added Products addition in Portfolio
New Value-Added Products addition in Portfolio A new product line viz. CR Sheet (used for fabrication of Steel With commissioning of new Khopoli (Maharashtra) Furniture) has been developed and Special Annealing Furnaces has Facility, share of value-added products to increase. been installed at Sikan
Slide 21: Capacity expansion at Khopoli (Maharashtra)
Capacity expansion at Khopoli (Maharashtra) Khopoli (Maharashtra) facility with installed capacity of New Continuous Pickling line with capacity of 2.5 lakh tons 80,000 tonnes per annum has been successfully and Two New CR Slitting Lines wider width with Capacity of 1 commissioned and commercial pro
Slide 22: Cost Optimisation through adding Solar Power Capacities
Cost Optimisation through adding Solar Power Capacities The company has commissioned Roof Top Solar Projects under Opex Model at its Sikanderabad (UP) and Khopoli (Maharashtra) facilities With this, the total Roof Top Solar Power Generation installed capacity has increased to 3,300 KW The increase i
Slide 23: Strategic Focus
Strategic Focus
Slide 24: Efficient sourcing of Raw Materials
Efficient sourcing of Raw Materials Need Based Approach Need-based approach to source raw materials Strong Relationship With large suppliers like SAIL, Tata Steel and ArcelorMittal Stable and Sustainable Supply Work closely with suppliers to ensure stable, high-quality and sustainable supply Environ
Slide 25: Capacity Utilisation Improvement and Cost Optimisation
Capacity Utilisation Improvement and Cost Optimisation Improvement in Capacity Better Utilisation to drive Cost Optimisation Measures Utilisation operating leverage Strong demand for steel With the improvement in With the two newly pipes & tunes and structural capacity utilization and thus commissio
Slide 26: Focus on new value-added products, Strengthening Distribution Network
Focus on new value-added products, Strengthening Distribution Network ▪ Focus on expanding share of value-added products ▪ With recent capacity expansions, strengthening our base in the Western & Southern market Expanding Value-Added Products where there is a higher demand for value-added galvanized
Slide 27: Increasing Share of Value-Added Products
Increasing Share of Value-Added Products 22% Demand for value-added Products like 16% 15% Galvanised Pipes, Pre-Galvanised Pipes, Metal Beam Crash Guard have been picking up Our target is to increase share of Value- Added Products to 25-30% of the total sales by FY23E Q1FY21 FY21 Q1FY22 Higher propo
Slide 28: EBITDA/tonne Set to Improve
EBITDA/tonne Set to Improve Better Utilisation to drive Efficient Sourcing of Operating Leverage 06 01 Raw Materials Focus on Building Brand Increase in demand and EBITDA/Tonne and Strengthening 05 02 Improvement in Distribution Network set to Improve Capacity Utilisation Cost Optimisation & Increas
Slide 29: Expansion Plan – Target to Reach Capacity of 1 Million Tonnes
Expansion Plan – Target to Reach Capacity of 1 Million Tonnes 12.0 Company’s total capacity stands at 5.8 10.0 10.0 lac tonnes and can be expanded by about 20% more through brownfield 8.0 route and debottlenecking to reach 7.0 7.0 lac tonnes 5.8 6.0 Company’s target is to reach 10 lac 4.0 tonnes ins
Slide 30: Industry Overview & Demand Drivers
Industry Overview & Demand Drivers
Slide 31: Huge Opportunity in the Indian Steel Pipes & Tubes Industry
Huge Opportunity in the Indian Steel Pipes & Tubes Industry Indian Steel Pipes & Tubes Industry Per Capita Consumption (Kgs) - Steel • Market Size: ~Rs 500 billion (~8% of total domestic steel market) 568 • Total Domestic Consumption: ~8.5 million tonnes (FY21) • Growth Rate last 5 years: 6-7% CAGR
Slide 32: Big Push on demand recovery backed by Government Capex revival
Big Push on demand recovery backed by Government Capex revival Indian government to incur capex of Rs 111 lakh crore for infrastructure development under NIP (National Infrastructure Pipeline) over FY20-25E • 24% of this will go towards Energy sector, a big demand driver of steel pipes and tubes 2.0
Slide 33: Revival in Private Capex to drive demand of steel products
Revival in Private Capex to drive demand of steel products • Considerable improvement in external balance position (including Current Account Deficit turning surplus in FY21 at 0.9% of GDP and steep rise in RBI’s forex buffer at USD 610 bn) • Favorable financial conditions have enabled fund raising
Slide 34: Annual Financials
Annual Financials
Slide 35: Key Performance Highlights
Key Performance Highlights Volume (‘000 MT) EBITDA Per Metric Ton 283.2 2,789 269.0 271.2 2,661 2,611 2,518 226.0 2,091 137.8 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA/ton improved sharply in FY21 led by improvement in sales realization; Increase in contribution from Value Added Produ
Slide 36: Performance Highlights
Performance Highlights Revenue (Rs in Cr) EBITDA (Rs in Cr) PAT (Rs in Cr) +20% +15% +22% 1360.0 1340.6 74.8 70.8 27.5 1209.6 22.8 1016.0 60.1 59.2 21.0 20.4 39.9 637.0 10.4 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA (%) PAT (%) 6.3% 2.1% 5.9% 5.5% 5.3% 4.9% 1.
Slide 37: Performance Highlights
Performance Highlights Networth (Rs in Cr) Debt/Equity (x) 205.2 2.2 2.2 +28% 173.6 1.8 1.7 146.8 1.5 113.6 76.6 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 ROCE (%) ROE (%) 19.1% 18.7% 22.8% 15.8% 20.1% 12.3% 13.0% 14.5% 12.7% 12.0% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 36
Slide 38: Raising Funds through equity to strengthen the balance sheet
Raising Funds through equity to strengthen the balance sheet ▪ Company issued and allotted 13.70 lakh fully convertible warrants at a price of Rs 164 per warrant aggregating up-to Rs 22.468 Crores to the persons belonging to promoter, promoter group and non-promoter group category ▪ Of the total 13.
Slide 39: Consolidated P&L – Last 5 Years
Consolidated P&L – Last 5 Years Particulars (Rs crore) FY17 FY18 FY19 FY20 FY21 Total Income from Operations 637.4 1,015.7 1,360.4 1,209.6 1,340.6 Raw Materials 562.7 913.3 1,236.4 1,095.4 1,210.2 Employee Cost 10.6 12.1 13.7 17.8 18.8 Other Cost 24.3 30.1 35.6 37.2 40.8 EBITDA 39.9 60.1 74.8 59.2 7
Slide 40: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (Rs crore) Mar-18 Mar-19 Mar-20 Mar-21 Particulars (Rs crore) Mar-18 Mar-19 Mar-20 Mar-21 Equity 113.6 146.8 173.6 205.2 Non-current Assets 149.4 177.4 209.0 241.8 Equity Share Capital 10.5 10.7 10.9 11.2 Property, Plant and Equipment 123.9 169.1 173
Slide 41: Contact Us
Contact Us For more details, please contact: Company: Investor Relations Advisors: Hi-Tech Pipes Limited. Strategic Growth Advisors Pvt. Ltd. CIN: L27202DL1985PLC019750 CIN: U74140MH2010PTC204285 Mr. Arvind Bansal, CFO Mr. Vijay Goel / Mr. Aakash Mehta cfo@hitechpipes.in vijay.goel@sgapl.net / aakas