Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q1 FY2021 Earnings Presentation
36 slides from Apollo Pipes's earnings presentation, Aug 4, 2020
Slide 1: Apollo Pipes Result Presentation Intimation to Exchanges
C'°'?OLLO Sudesh Group ? PIPING SYSTEMS Made HJf' lile 35? -- August 04, 2020 The National Exchange of India Stock Limited Department of Corporate Services/Listing Exchange Plaza", 5th Floor, BSE Limited Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (East), Dalal Str
Slide 2: Q1FY21 Earnings Presentation
APOLLO PIPES LTD. Q1FY21 Earnings Presentation August 4, 2020
Slide 3: Safe Harbour
2 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 4: Table of Content
3 Table of Content Apollo Pipes Overview 1 Growth Levers 2 Macro-growth Drivers 3 Future Outlook 4 5 Year Financial highlights 5 Q1 FY21 Highlights 6
Slide 5: Company Overview
4 Company Overview
Slide 6: Apollo Pipes at a glance
5 Apollo Pipes at a glance leading PVC pipe manufacturers in Capacity* as on 31st March India 2020 Distributors Manufacturing Plants Dealers Products 5-year Volume 5-year Revenue 5-year PAT CAGR CAGR CAGR
Slide 7: Presence across Sectors
6 Presence across Sectors Agriculture Segment Water Management Segment •Casing pipes •Drip irrigation & •Hot & cold potable water distribution & •Sprinkler system transportation •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils Construction
Slide 8: Product Portfolio - Diversified Basket of 1,000+ Products
7 Product Portfolio - Diversified Basket of 1,000+ Products PIPES uPVC PIPES uPVC COLUMN PIPES DRAINAGE uPVC PIPING SYSTEM uPVC RING FIT PIPES uPVC RIBBED SCREEN PIPES PIPES AND FITTINGS FITTINGS uPVC PLUMBING PIPING SYSTEM uPVC AGRI FITTINGS PVC CEMENT SOLVENT CEMENT uPVC PIPES CEMENT cPVC PIPING S
Slide 9: Success Milestones
8 Success Milestones • Started manufacturing • Concluded promoter uPVC Plumbing fittings infusion of Rs. 202 crore with 180 MTPA through issuance of Equity capacity Shares and fully • Commenced convertible warrants on • Commenced PVC manufacturing cPVC • Largest plastic piping Preferential basis pip
Slide 10: Experienced Management Team
9 Experienced Management Team Mr. Sameer Gupta Mr. Sanjay Gupta Managing Director Non- Executive Chairman B.Com Honors from Delhi University (SRCC) Mr. Sanjay Gupta is the second generation of the entrepreneurial family Mr. Sameer Gupta joined the family business in the year 2000 and Holds a rich ex
Slide 11: Strong governance and Management
10 Strong governance and Management Board of Directors Promoter Directors Non Executive Directors Independent Directors Mr. Sameer Gupta Mr. Sanjay Gupta Mr. Pradeep Kumar Jain Managing Director Chairman Independent Director Mr. Saket Agarwal Ms. Neeru Abrol Director Independent Director Mr. Abhilas
Slide 12: Our Environment, Social, Governance and Safety Policy
11 Our Environment, Social, Governance and Safety Policy • Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes − Installed rooftop solar plant at Dadri for optimum utilisation of energy − Evaluating opportunities to install rooftop solar plants at Ahmedabad and Benga
Slide 13: Growth Levers
12 GROWTH LEVERS
Slide 14: Key Business Strengths
13 Key Business Strengths Catering to Strong and Advanced Multiple and Proven expertise multiple sectors – highly equipment & Expanding efficient product in complex Agriculture, Water experienced technology – cost footprint in India offerings – projects Management, Management efficient 1,000+ produc
Slide 15: Strengthening distribution network across India
14 Strengthening distribution network across India to augment presence and improve market penetration Enjoys a dominant and Delhi/NCR Sikandrabad leading presence Head Office (Manufacturing Unit) in North India Dadri (Manufacturing Unit) Extensive distribution Tapping newer network markets to reduce
Slide 16: Diversified Product Portfolio with total offerings at 1,000+
15 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri, Ahmedabad, Bengaluru and Sikandrabad • Emphasis on innovation: One of the first companies
Slide 17: Capacity Expansion to aid long-term growth plan
16 Capacity Expansion to aid long-term growth plan – to achieve 90,000 MTPA in FY21 Available capacity* of 84,000 MTPA Aim to deliver a healthy Primary focus to improve 25%+ CAGR over the next 3 utilization at Dadri, years Ahmedabad and Bengaluru Establishing a manufacturing Undertaking brownfield l
Slide 18: Efficiently leverage the 'APL Apollo' brand reach and recall
17 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth The ‘APL Apollo’ Brand Edge enables better reach and product competitiveness Branding Activities – Sports sponsorship Principal Sponsor of Pro Kabbaddi League IPL TVC – Principal sponsor of Delhi Capitals Branding
Slide 19: Macro Growth Drivers
18 MACRO GROWTH DRIVERS
Slide 20: PVC pipe industry
19 PVC pipe industry The Indian PVC pipes and fittings market expected to DEMAND SEGMENTATION – DOMESTIC INDUSTRY register 15% CAGR during FY18 - FY26 Others, 5% Sewerage, 12% • The domestic plastic pipes industry size at ~Rs. 315B Irrigation, 45% • Organized players account for ~60% market share •
Slide 21: At the Forefront of multiple sector trends
20 At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging • Improving irrigation schemes distribution requirements pipelines and installation of for farmers • Water Management, W
Slide 22: Future Outlook
21 Future Outlook
Slide 23: Focus Areas for FY20 & FY21
22 Focus Areas for FY20 & FY21 Penetrate and establish footprint Strengthen foothold in existing into neighboring markets in Central markets of North and Western India and Eastern India Undertake a phase-wise capacity expansion at the existing facilities Improve utilization at the existing over the
Slide 24: 5-Year Financial Highlights
23 5-Year Financial Highlights
Slide 25: Financial Trend
24 Financial Trend CAGR – 19% CAGR – 24% Total Revenues (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 418 51 56 374 41 301 243 32 209 24 14% 14% 13% 13% 12% FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 CAGR – 29% CAGR – 14% PAT (Rs. Cr) Volume (MTPA) 28 44,692 22 24 39,823 33,
Slide 26: Financial Trend
25 Financial Trend ROCE (%) ROE (%) 18.0 19.0 28.0 26.0 16.0 15.0 24.0 24.0 20.0 11.7 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 Total debt (Rs. Cr) Debt to Equity (x) 30 34 20 0.6 0.3 0.2 -35 -38 -0.1 -0.2 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2
Slide 27: 5-year Financial Track-record
26 5-year Financial Track-record Particulars FY2016 FY2017 FY2018 FY2019 FY2020 Net Worth (Rs. Cr) 55.0 91.4 113.3 229.8 306.5 Capex for the year (Rs. Cr) 12.2 9.1 17.1 48.2 59.3 Inventory (Rs. Cr) 13.7 22.7 44.3 52.3 82.4 Inventory Days 24 34 55 53 74 Debtors (Rs. Cr) 29.5 34.2 38.5 35.8 59.4 Debto
Slide 28: Operational & Financial Highlights Q1FY21
27 Operational & Financial Highlights Q1FY21
Slide 29: Q1 FY21 at a glance
28 Q1 FY21 at a glance Distributors Products Capacity* as on 31st March 2020 Dealers Volume EBITDA Net Profit Net WC days ROCE in FY20 • Includes acquired 12,000 MTPA capacity unit of Kisan Mouldings in Bengaluru
Slide 30: Q1 FY21 Highlights
Q1 FY21 Highlights Resilience Emerged stronger Future ready Resumed operations in a phased Maintained cash conversion cycle Operated at elevated capacity manner post 24 April 2020 after despite lockdown utilization levels in June 2020 assessing the local situation Supported by actions on working Pla
Slide 31: Key Financial & Operational Parameters
30 Key Financial & Operational Parameters Product-wise Revenue Breakup Product Revenue (excluding Others Y-o-Y segment) Break-up – Q1FY21 Particulars Q1 FY21 Q1 FY20 Shift Solvent, 1% Fittings, (Rs. crore) HDPE 12% uPVC Pipes 67.2 88.9 -24% Products, 5% cPVC Pipes 3.4 3.7 -7% HDPE Products 4.7 7.4 -
Slide 32: Abridged P&L Statement
31 Abridged P&L Statement Particulars (Rs. crore) Q1 FY21 Q1 FY20 Y-o-Y Shift Q4 FY20 Q-o-Q Shift Sales Volume 10,633 13,953 -24% 9,721 9% Total Revenue From Operations 92.5 117.3 -21% 94.1 -2% Total Expenditure Raw Material expenses 72.7 85.4 -15% 65.7 11% Employee benefits expense 5.2 6.0 -14% 6.9
Slide 33: Conclusion
32 Conclusion
Slide 34: Key Takeaways
33 Key Takeaways Aiming capacity upgradation to the tune of 90,000 MTPA Target to achieve 25%+ sales volume growth CAGR over next three years Value-added product categories to provide impetus to volumes and profitability Increased market presence and improving distributor network to address demand a
Slide 35: About Us
34 About Us Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipes hold
Slide 36: Thank You
Thank You G APL PIPING SYSTEMS