Everest Industries Limited · NSE:EVERESTIND
Everest Industries — Q4 FY20 Earnings Presentation
33 slides from Everest Industries's earnings presentation, Jun 2, 2020
Slide 1: Cover letter to stock exchanges
Ref.: H/ NSE/BSE//2020 Date: June 2, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza Plot No. C/1, G Block Phiroze Jeejeebhoy Towers Bandra – Kurla Complex Dalal Street, Mumbai – 400 001 Bandra (E), Mumbai - 400 051 Tel.: 2272 1233/8058 Extn – 8013 Tel.: 2659 8452 Fax No.: 2
Slide 2: Earnings Presentation FY20/Q4-FY20
EVEREST INDUSTRIES LIMITED EARNINGS PRESENTATION FY20/Q4-‐FY20
Slide 3: Executive Summary
Executive Summary Company Overview Everest Industries Limited, incorporated in 1934, has a rich history in the manufacturing of Building products and Steel products. Everest offers a complete range of roofing, ceiling, wall, flooring, and cladding products distributed through a large network, as wel
Slide 4: Company Overview
Company Overview • Everest Industries Limited (Everest) has over 8 decades of experience in building products and is the pioneer of fibre cement products in India. • The company’s business is built on three key pillars: Safety, Speed, and Strength. • The vision of the company is to be the deepest pe
Slide 5: Manufacturing & Distribution Network
Manufacturing & Distribution Network 7,000 33 Dealer Distribution Network Sales Outlets Depots Total Capacity (MTPA) Bhagwanpur, Uttarakhand 9,50,000 MT 600+ 100,000+ Building Product Plants Serving Serving Cities Villages Ranchi, Jharkhand 72,000 MT Kymore, Kolkata, Steel Building Plants Madhya Pra
Slide 6: Key Strengths
Key Strengths Delivering Strength, Speed and Safety Trusted brand for over 8 decades Focus on executing projects with speed, 01 02 Commands market share of 18% in Building strength and safety Products and one of the largest in PEB Complete Building Solutions Provider State-‐of-‐the-‐art manufactu
Slide 7: Business Mix
Business Mix Building Products (66%) Steel Buildings (34%) Roofing Boards and Panels Pre Engineered Buildings Fibre Cement Supercolour Fibre Cement Wall & Cladding Solutions Artestone Cement Wood Planks Everest Artewood Smart Steel Buildings Heavy Duty Wall Boards Rapicon Wall Panels Hi-‐Tech Roofl
Slide 8: Key Financial Highlights – Standalone (INR Mn)
Key Financial Highlights – Standalone (INR Mn) Current Quarter Previous Quarter Current Quarter Current Year Last Year Last Year Particulars Q4-‐FY20* Q3-‐FY20 Q4-‐FY19 FY20* FY19 Total Income 2,908 2,788 3,691 12,928 14,106 EBITDA 17 58 260 521 1,131 EBITDA Margin 0.58% 2.08% 7.04% 4.03% 8.02% N
Slide 9: Key Financial Highlights – Consolidated (INR Mn)
Key Financial Highlights – Consolidated (INR Mn) Current Quarter Previous Quarter Current Quarter Current Year Last Year Last Year Particulars Q4-‐FY20* Q3-‐FY20 Q4-‐FY19 FY20* FY19 Total Income 2,916 2,791 3,699 12,949 14,148 EBIDTA 24 55 260 517 1,110 EBIDTA Margin 0.82% 1.97% 7.03% 3.99% 7.85%
Slide 10: Q4-FY20 – Standalone Income Statement (INR Mn)
Q4-‐FY20 – Standalone Income Statement (INR Mn) Particulars Q4-‐FY20* Q4-‐FY19 Y-‐o-‐Y Q3-‐FY20* Q-‐o-‐Q Total Income 2,908 3,691 (21.2)% 2,788 4.3% Total Expenses 2,891 3,431 (15.8)% 2,730 5.9% EBIDTA 17 260 (93.5)% 58 (69.0)% EBIDTA Margin 0.62% 7.32% (670) Bps 2.08% (146) Bps Depreciation
Slide 11: FY20 – Standalone Income Statement (INR Mn)
FY20 – Standalone Income Statement (INR Mn) Particulars FY20 FY19 Y-‐o-‐Y Total Income 12,928 14,106 (8.6)% Total Expenses 12,407 12,975 (4.4)% EBIDTA 521 1,131 (53.9)% EBIDTA Margin 4.03% 8.02% (399) Bps Depreciation 237 206 15.0% Finance Cost 70 76 (7.9)% PBT 214 849 (74.8)% Tax 73 207 (64.7)% P
Slide 12: Q4-FY20 – Consolidated Income Statement (INR Mn)
Q4-‐FY20 – Consolidated Income Statement (INR Mn) Particulars Q4-‐FY20 Q4-‐FY19 Y-‐o-‐Y Q3-‐FY20 Q-‐o-‐Q Total Income 2,916 3,699 (21.2)% 2,791 4.5% Total Expenses 2,892 3,439 (15.9)% 2,736 5.7% EBIDTA 24 260 (91.2)% 55 (58.2)% EBIDTA Margin 0.82% 7.03% (621)Bps 1.97% (115) Bps Depreciation
Slide 13: FY20 – Consolidated Income Statement (INR Mn)
FY20 – Consolidated Income Statement (INR Mn) Particulars FY20 FY19 Y-‐o-‐Y Total Income 12,949 14,148 (8.5)% Total Expenses 12,432 13,037 (4.6)% EBIDTA 517 1,111 (53.5)% EBIDTA Margin 3.99% 7.85% (386) Bps Depreciation 238 206 15.5% Finance Cost 70 76 (7.9)% PBT 209 829 (74.8)% Tax 74 210 (64.8)%
Slide 14: Challenges in Q4-FY20
Challenges in Q4-‐FY20 Low demand for building products impacted further by lockdown. Liquidity issues with trade. Increase in input costs:-‐ Chrysotile Fibre Cement Steel Steel Buildings business affected by decline in Industry Slowing urban demand for Boards due to COVID 19. Trade typically stoc
Slide 15: Current Market Scenario
Current Market Scenario We were among the first ones to open our factories. Working with Social Distancing and limited Labour. Dispatches have begun from all Plants and Depots. Strong Liquidity Position. Change in hedging strategies due to fluctuation in currency. Company has adequate stocks to take
Slide 16: Q4-FY20 Operational Highlights – Building Products
Q4-‐FY20 Operational Highlights Building Products 15
Slide 17: Building Products Performance - Standalone
Building Products Performance -‐ Standalone Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn) Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn) Note : All numbers as per IND-‐AS
Slide 18: Key Operational Highlights – Building Products Segment
Key Operational Highlights – Building Products Segment Rural areas less effected by Lockdown while high impact on urban Areas. Many Projects in hold or slowdown status. Emergency medical supplies made by Everest at various locations. Good Crops and smooth harvesting. Secondary sales continued at red
Slide 19: Building Products – Roofing and Fibre Cement Boards
Building Products – Roofing and Fibre Cement Boards Everest Roofing Products Everest Supercolour Everest Supercolour Everest Supercolour Poultry Farm -‐ Puri, Odisha B.S. Farms, Village Bhojraj, Haryana BRS Alloys, Hisar Cement Board Cladding Rapicon wall Trade Centre, Sikkim Residential Site, Srin
Slide 20: Q4-FY20 Operational Highlights – Steel Buildings
Q4-‐FY20 Operational Highlights Steel Buildings 19
Slide 21: Steel Building Performance - Standalone
Steel Building Performance -‐ Standalone Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn) 15 1,312 49 11 1,070 32 Q4-‐FY19 Q4-‐FY20 Q4-‐FY19 Q4-‐FY20 Q4-‐FY19 Q4-‐FY20 Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 16 15 1,312 49 11 1,262 1,070 15 13 1,131 1,
Slide 22: Key Operational Highlights – Steel buildings
Key Operational Highlights – Steel buildings Capital investments in manufacturing slowing down. Order book at close of year -‐ 23,000 MT, some customers put orders on hold. This could result in FG and RM inventory increase. Extremely challenging to work at Sites with problem of labour, COVID condit
Slide 23: Steel Buildings
Steel Buildings Everest Steel Buildings A. P. Organics Ltd. Acrysil Limited S1 International Tractors Sangrur, Punjab Bhavnagar, Gujrat Hoshiyarpur, Punjab Devigiri Forgings Pvt. Ltd. S1 Max Polyfims Mascor Precisions Pvt. Ltd. Aurangabad, Maharastra Ropar, Punjab Aurangabad, Maharastra
Slide 24: Financial Statements – Historical
Financial Statements Historical 23
Slide 25: Income Statement – Standalone (INR Mn)
Income Statement – Standalone (INR Mn) Particulars FY18 FY19 FY20 Total Income 12,786 14,106 12,928 Total Expenses 11,797 12,975 12,407 EBIDTA 989 1,131 521 EBIDTA Margin 7.74% 8.02% 4.03% Depreciation 235 206 237 Finance Cost 126 76 70 Exceptional Items 17 -‐ PBT 611 849 214 Tax 104 207 73 Profit
Slide 26: Balance Sheet – Standalone (IND-AS)
Balance Sheet – Standalone (IND-‐AS) Equities & Liabilities (INR Mn) FY19 FY20 Assets (INR Mn) FY19 FY20 Shareholder Funds Non Current Assets Share Capital 156 156 Property, Plant and Equipment 3,355 3,515 Other Equity 4,371 4,390 Intangible Assets 12 6 Total -‐Shareholder Funds 4,527 4,546 Right
Slide 27: Income Statement – Consolidated
Income Statement – Consolidated Particulars (INR Mn) FY18 FY19 FY20 Total Income 13,069 14,148 12,949 Total Expenses 12,070 13,037 12,432 EBIDTA 999 1,111 517 EBIDTA Margin 7.64% 7.85% 3.99% Depreciation 235 206 238 Interest 126 76 70 PBT 638 829 209 Tax 107 210 74 Profit After Tax 531 619 135 PAT M
Slide 28: Balance Sheet – Consolidated (IND-AS)
Balance Sheet – Consolidated (IND-‐AS) Equities & Liabilities (INR Mn) FY19 FY20 Assets (INR Mn) FY19 FY20 Shareholder Funds Non Current Assets Share Capital 156 156 Property, Plant and Equipment 3,355 3,515 Other Equity 4,358 4,370 Intangible Assets 13 6 Total -‐Shareholder Funds 4,514 4,526 Righ
Slide 29: Income Statement – Standalone (INR Mn)
Income Statement – Standalone (INR Mn) Particulars (INR Mn) FY18 FY19 FY20 Total Income 13,069 14,148 12,949 Total Expenses 12,070 13,037 12,432 EBITDA 999 1,111 517 EBITDA Margin 7.64% 7.85% 3.99% Depreciation 235 206 238 Interest 126 76 70 PBT 638 829 209 Tax 107 210 74 Profit After Tax 531 619 13
Slide 30: Financial Performance – Consolidated
Financial Performance – Consolidated Operational Revenue (INR Mn) and EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) Net Debt to Equity Ratio 7% 8% 8% 4% 4% 4% 4% 3% 14,148 619 13,134 531 1% 0.59 12,498 13,069 12,949 0.50 345 0% 135 0.16 0.16 0.14 30 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY2
Slide 31: Capital Market Information
Capital Market Information Share Price Performance (As on 31st March, 2020) 20% 0% -‐20% -‐40% -‐60% -‐80% Apr-‐19 May-‐19 Jun-‐19 Jul-‐19 Aug-‐19 Sep-‐19 Oct-‐19 Nov-‐19 Dec-‐19 Jan-‐20 Feb-‐20 Mar-‐20 Everest Sensex Price Data (As on 31st March, 2020) Shareholding Pattern (As on 31
Slide 32: Q4-FY20 Earnings Call Information
Q4-‐ FY20 Earnings Call Information The earnings call to discuss financial and operational performance for Q4-‐FY20 / FY20 with Mr. Manish Sanghi, Managing Director and Mr. Nikhil Dujari, CFO will be held on: • Date: Wednesday, 3rd June, 2020 • Time: 11:00 AM • Primary Dial-‐in Numbers: +91 22 62
Slide 33: Disclaimer
Disclaimer Everest Industries Limited Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions ar