Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q3 FY23 Earnings Presentation
41 slides from Prince Pipes And Fittings's earnings presentation, Feb 7, 2023
Slide 1: Exchange cover letter for conference call presentation
PPF L/SE/2022-2023/069 February 07, 2023 To, BSE Limited National Stock Exchange of India Limited 25th Floor, P.J Towers, Excha nge Plaza, Bandra Kurla Complex, Dalal St reet, Mumbai-400001 Bandra (E), Mumbai -400051 Scrip Code: 542907 Scrip Code: PRINCEPIPE Dear Sir/Madam, Sub: Presentation at Conf
Slide 2: Investor Presentation Q3 & 9M FY23
Prince Pipes and Fittings Limited INVESTOR PRESENTATION Q3 & 9M FY23
Slide 3: Disclaimer
DISCLAIMER This information may contain certain forward-looking statements/details in the current scenario, which is extremely dynamic and increasingly fraught with risks and uncertainties. Actual results, performances, achievements or sequence of events may be materially different from the views ex
Slide 4: Table of Contents
TABLE OF CONTENTS PERFORMANCE HIGHLIGHTS 04 BUSINESS HIGHLIGHTS 06 FINANCIAL PERFORMANCE 09 INDUSTRY OVERVIEW 13 COMPANY OVERVIEW 15 THE ROAD AHEAD… 25 PRODUCT BASKET 26 SEEKING GROWTH…THE ESG WAY 31 AWARDS AND ACHIEVEMENTS 32 BOARD OF DIRECTORS 35 CORPORATE INFORMATION AND SHAREHOLDING 36 ANNUAL FI
Slide 5: Performance Highlights – Q3 FY23
PERFORMANCE HIGHLIGHTS – Q3 FY23 o Q3 FY23 revenues increased by 6% at ₹ 706 crore as compared to ₹ 664 crore in Q3FY22 o Volumes in Q3 FY23 showed robust growth of 35% YoY at 43,693 MT as compared to 32,435 MT in Q3FY22 ➢ Topline performance led by strong volume growth due to restocking by dealers
Slide 6: Performance Highlights – 9M FY23
PERFORMANCE HIGHLIGHTS – 9M FY23 o Revenues in 9M FY23 grew by 11% YoY to ₹ 1,946 crore from ₹ 1,756 crore in 9M FY22 o Volumes improved by 21% YoY in 9M FY23 to 113,400 MT compared to 93,747 MT in 9M FY22 o EBITDA at ₹ 102 crore in 9M FY23 vs. ₹ 275 crore in 9M FY22 o PAT in 9M FY23 at ₹ 27 crore a
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS o Expansion of new product verticals with the launch of Modern Plumbing division o Initiative is a part of the Company’s growth strategy to bring innovative, global products to the Indian markets o Prince Pipes brings home world class plumbing solutions with German Technology ➢ L
Slide 8: Business Highlights
BUSINESS HIGHLIGHTS o Resilient performance during the quarter led by strong volume growth on account of restocking by dealers and positive demand momentum from end customers ➢ After a steep correction of ~ Rs. 66 per kg from April 22 till November 22, PVC prices have recovered by ~ Rs. 13 per kg in
Slide 9: Business Highlights
BUSINESS HIGHLIGHTS o Mr. Jayant Chheda, Chairman and Managing Director, was bestowed the Lifetime Achievement Award by Modern Plastics India ➢ This award is an expression of appreciation and recognition for his outstanding contributions and long-term commitment to the plastics industry o PPFL’s Har
Slide 10: Financial Performance for Q3 FY23
FINANCIAL PERFORMANCE FOR Q3 FY23 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 43,693 706 111 664 67 32,435 69 35 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 9 INVESTOR PRESENTATION | February 2023
Slide 11: Financial Performance for 9M FY23
FINANCIAL PERFORMANCE FOR 9M FY23 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 275 1,946 161 1,13,400 1,756 93,747 102 27 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 10 INVESTOR PRESENTATION | February 2023
Slide 12: Profit & Loss Statement as on 31st December 2022
PROFIT & LOSS STATEMENT AS ON 31ST DECEMBER 2022 ₹ in Crore Particulars Q3FY23 Q3FY22 Y-o-Y (%) 9MFY23 9MFY22 Y-o-Y (%) Total Sales 706 664 6 1,946 1,756 11 Raw Material Consumed 548 456 20 1,580 1,236 28 Employee benefit expenses 31 32 (3) 85 81 5 Other Expenses 58 65 (11) 179 164 9 EBITDA 69 111 (
Slide 13: Working Capital Cycle
WORKING CAPITAL CYCLE 68 68 58 55 44 36 36* 66 67 78 59 47 70 40 77 59 62 40 66 60 85 77 48 65 44 48 61 65 FY18 FY19 FY20 FY21 FY22 H1FY23 9MFY23 Debtor Days Inventory Days Creditor Days Working Capital Days * Reclassified to 15 days based on regrouping of financials for FY 21 12 INVESTOR PRESENTATI
Slide 14: Industry Overview
INDUSTRY OVERVIEW India's Low per capita pipe Consumption vs World Avg. (in Kg) Domestic Plastic Pipes & Fittings Market Size (₹. in Bn) 12-14% CAGR 110 550 10-12% CAGR 65 World Avg. 30 ~300 270 250 45 225 205 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL
Slide 15: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Jal Jeevan Mission 75% of 600 million budgeted allocation households do increased by 27% to Rs. Significant increase in Indians face allocations for capex not have high to extreme 69,684 crore drinking water By 2030, 40% of spending by 33% to Rs.10 population will stress over
Slide 16: Company Overview
COMPANY OVERVIEW Vision Mission Prince Pipes and Fittings Limited is To be an acknowledged leader in Indian plastic Our mission is to bring a revolution in plastic an Indian manufacturer of polymer piping industry by exceeding customers piping industry through innovative solutions expectations and m
Slide 17: Prince at a Glance
PRINCE AT A GLANCE 1987 7 8 7,200+ Incorporation No. of Facilities Warehouses SKUs ~1,500+ CRISIL A+ Long Term 1,733 Channel Partners Outlook: STABLE Debt Free Employees 6,592 Cr 249 Cr ~3,15,000 MTPA Prince and Market Cap PAT Total installed Trubore (For Dec 31st 2022) (For FY 2022) Capacity Produc
Slide 18: Our Strategy to Success
OUR STRATEGY TO SUCCESS We generate organic growth by focusing on innovation, market proximity, digitalization and our industrial potential. Organic growth 1 2 Promoting clean energy at Manufacturing units Operational Excellence 3 We achieve cost reductions by continuously We cater to new product se
Slide 19: Our Journey
OUR JOURNEY 2000 New plant set up 2018 1987 at Dadra Appointed Akshay Kumar 2020 (Western India) Incorporated as a as Brand Ambassador and for pipe Got listed on BSE & NSE private limited company rolled out campaigns manufacturing with an IPO of ₹ 5bn across platforms 2012 Acquisition of plants in T
Slide 20: Our Manufacturing Capabilities
OUR MANUFACTURING CAPABILITIES Athal 1995 Dadra 2000 Haridwar 2008 Chennai 2012 Product Product Product Product Installed 11,110 Installed 60,286 Installed 89,163 Installed 50,825 Capacity MTPA FITTINGS Capacity MTPA PIPES Capacity MTPA PIPES & Capacity PIPES MTPA FITTINGS Kolhapur 2012 Jaipur 2019
Slide 21: Always Staying Ahead of the Curve
ALWAYS STAYING AHEAD OF THE CURVE 2008 2012 2014 2020 2021 First company to Acquired Chennai & Early movers in Tie up with Lubrizol Commissioning of venture into North Kolhapur plant Eastern India with a to form CPVC Telangana plant, marking India and set up a through inorganic unique asset light co
Slide 22: Strategic Distribution - Expanding Footprints
STRATEGIC DISTRIBUTION - EXPANDING FOOTPRINTS NORTH EAST JAMMKASHMIR First mover in 2008 with Next frontier of growth Haridwar plant HIMACHAL PRADESH Asset light model To scale brand equity in North PUNJAB UTTARAKHAND through outsourcing HARYANA HARIDWAR GHAZIABAD DELHI g CORPORATE OFFICE SILIGURI J
Slide 23: Investment Rationale
INVESTMENT RATIONALE A management Strategic A nationwide Portfolio of Long-term team of experienced placement of robust 7200+ SKUs, partnerships to and skillful manufacturing distribution one of the ensure smooth professionals with plants running network largest amongst and cohesive proven leadershi
Slide 24: Market Consolidation – A Boon for Prince Pipes and Fittings
MARKET CONSOLIDATION – A BOON FOR PRINCE PIPES AND FITTINGS PPFL is one of the front-runners to benefit from these events and has gained significant market share over the last seven years 4 Opportunity to grab major market share as the Nationwide manufacturing and distribution unorganised sector bec
Slide 25: Leadership and Innovation
LEADERSHIP AND INNOVATION Over 3 decades, built a deep knowledge of handling multiple polymers Leading to a transition in polymer profile Largest range of SKU’s across multi polymers Early Adopters Market Leaders Innovative Trendsetters Sustained market share in PP-R In DWC Underground Drainage In A
Slide 26: The Road Ahead… Why Prince FlowGuard Plus?
THE ROAD AHEAD…WHY PRINCE FLOWGUARD PLUS ? 1st Choice World's most World-Class Extreme Globally for preferred range Product now Temperature Potable Water of CPVC Pipes & comes with 30 Resistance for The Inventors World’s Applications Fittings with 50 Years of Trust use upto 93°C India's Leading Pipe
Slide 27: Product Basket
PRODUCT BASKET Plumbing Solutions PPR Plumbing & Low Noise SWR CPVC Plumbing Industrial UPVC Plumbing Underground Drainage Roofwater Piping Systems UPVC Industrial Piping Systems Underground Double Wall Corrugated Pipes Sewage & Underground Drainage Portfolio Reclaim Piping Systems SWR Piping System
Slide 28: Product Basket
PRODUCT BASKET Sewage & Underground Drainage Portfolio Storage Solutions Irrigation Solutions Surface Drainage System Agriculture Piping Systems Manhole & Chamber Covers Solutions FRP Manhole & Chamber Cover Borewell 27 INVESTOR PRESENTATION | February 2023
Slide 29: Technical Collaboration with Tooling Holland
TECHNICAL COLLABORATION WITH TOOLING HOLLAND INNOVATING TO THE NEXT LEVEL PRINCE PIPES TIES UP WITH TOOLING HOLLAND BV Building & offering Great impetus to superior products, aligned Prince Pipes’ to global standards and at Global leaders in Mould growth plans competitive costs Manufacturing Researc
Slide 30: Storefit – Paani Ka Bank
STOREFIT – PAANI KA BANK Launched Range of Tanks under the Brand 30 Years Leveraging experience in Plastics & Building materials offering a wide range of sizes from 500 to 5,000 ltrs Strong Pan India Presence Advantage of Multi-Locations Manufacturing & Marketing Robust Distribution Infrastructure E
Slide 31: Focus on Triple Bottom Line
FOCUS ON TRIPLE BOTTOM LINE 17,296 MT Coal Burned/Year Financial Green Energy 1 Upto Q3 FY23 570 K Tree Seedlings, Grown for a Decade Triple Reduce Green-house Gas Emissions over the past years Bottom-line 2 Environmental Goals 19.83% Carbon emission reduced (MT/MT production) since FY-17 69,300 MT
Slide 32: Seeking Growth – The ESG Way
SEEKING GROWTH – THE ESG WAY… Use Clean Energy Conserve Water Environment Efficient Waste Management The challenging times during the pandemic showcased the value of Manufacture high-quality products environment, sustainability and Contribute towards Social Causes cleanliness. We, at Prince Pipes ar
Slide 33: Awards & Achievements
AWARDS & ACHIEVEMENTS Certificate of appreciation Mr. Parag Chheda - JMD was Digital Transformation for active association at the awarded the ‘Inspiring Awards 2016 – Prince pipes has been awarded 2016 Gujarat Premier 10th Mega Business Leader Award’ at Transformation with 2022 The best channel Loya
Slide 34: Product Branding
PRODUCT BRANDING Auto Branding & Marketing World Plumbing Day Campaign Auto Branding & Marketing Promoting Prince + FGP through shop boards 33 INVESTOR PRESENTATION | February 2023
Slide 35: Pan India Influencer & Channel Engagement Activities
PAN INDIA-INFLUENCER & CHANNEL ENGAGEMENT ACTIVITIES 34 INVESTOR PRESENTATION | February 2023
Slide 36: Board of Directors
BOARD OF DIRECTORS Independent & Nominee Directors Mr. Rajendra Gogri, Mr. Dilip Deshpande, Mr. Jayant S. Chheda Independent Director Independent Director Founder, Chairman and MD He has more than 45 years of experience, having served He has an extensive industry knowledge, more than four He has an
Slide 37: Corporate Information & Shareholding
CORPORATE INFORMATION & SHAREHOLDING Shareholding Pattern (as on 31st December, 2022) Stock Data Institutions Market Cap as on 07th February 2023 ₹ 6,755 Cr. 20% Stock Price as on 07th February 2023 ₹ 610.95 52 Week (High / Low) ₹ 729/513 Others NSE / BSE - Symbol PRINCEPIPE / 542907 17% Promoters 6
Slide 38: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 2,657 12.3%% 12.3% 14.0% 17.5% 15.6% 5.6% 5.3% 6.9% 10.7% 9.4% 2,072 Margin Margin 415 249 1,561 1,631 362 222 1,315 229 162 184 113 74 82 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18
Slide 39: Stakeholder's Value Creation
STAKEHOLDER'S VALUE CREATION A disciplined balance sheet Navigating opportunities across new Strong Corporate Governance 35% geographies 29% Enhancing Brand Highly Scalable Equity Manufacturing Capabilities 243% 36% Prudent Capital Vision-oriented Allocation leadership 38 INVESTOR PRESENTATION | Feb
Slide 40: Outlook
OUTLOOK Expanding our distribution 00 network across target markets Introducing value added products Improving RoCE and RoE ratios to ensure cost efficiency and by monitoring volume and enhanced market share price growth Bringing a more PREMIUM touch to the PRINCE brand Achieving sustainable growth
Slide 41: Thank You
THANK YOU PRINCE PIPES AND FITTINGS LTD. CONTACT DETAILS Mr. Shyam Sharda CFO THE RUBY, 8TH FLOOR, 29, SENAPATI BAPAT MARG Mail: shy@princepipes.com (TULSI PIPE ROAD), DADAR (WEST), MUMBAI- 400028, INDIA. Fax: + 91 22 6602 2220 Mr. Anand Gupta Email: info@princepipes.com Deputy CFO Mail: aag@princep
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