Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — Q3 FY2021 Earnings Presentation
39 slides from Prince Pipes And Fittings's earnings presentation, February 2021
Slide 1: Prince Pipes and Fittings Limited Investor Presentation Q3 & 9MFY21
Prince Pipes and Fittings Limited INVESTOR PRESENTATION Q3 & 9MFY21
Slide 2: 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 3: Table of Contents
TABLE OF CONTENTS Q3 & 9M FY21 FINANCIAL PERFORMANCE HIGHLIGHTS 04 INDUSTRY OVERVIEW 10 UNION BUDGET 2021-22 HIGHLIGHTS AND RELEVANCE 12 COMPANY OVERVIEW 13 LEADERSHIP, INNOVATION AND EXECUTION 22 PRODUCT BASKET 24 THE ROAD AHEAD… 25 SEEKING GROWTH…THE ESG WAY 29 AWARDS AND BRANDING 30 BOARD OF DIRE
Slide 4: Q3FY21 Performance Highlights
Q3FY21 PERFORMANCE HIGHLIGHTS o For Q3FY21, revenue at ₹ 549 crore compared to ₹ 396 crore in Q3FY20, grew by 39% o For 9MFY21, revenue at ₹ 1,310 crore compared to ₹ 1,205 crore in 9MFY20, grew by 9% o Sales volume increased by 18% at 36,711 MT in Q3FY21 as compared to 31,122 MT in Q3FY20 o Sales v
Slide 5: Q3FY21 Business Highlights
Q3FY21 BUSINESS HIGHLIGHTS o Seventh manufacturing facility inaugurated in Sangareddy, Telangana and commenced commercial production ahead of schedule. The plant is expected to have total installed capacity of approximately 50,000 tons per annum and capacity ramp up will be implemented in a phased m
Slide 6: Financial Performance for Q3 FY-2021
FINANCIAL PERFORMANCE FOR Q3 FY-2021 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 36,711 549 103 67 31,122 396 53 24 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 6 INVESTOR PRESENTATION | February 2021
Slide 7: Financial Performance for 9M FY-2021
FINANCIAL PERFORMANCE FOR 9M FY-2021 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) 1,310 215 99,676 125 96,645 1,205 171 84 9M FY20 9M FY21 9M FY20 9M FY21 9M FY20 9M FY21 9M FY20 9M FY21 7 INVESTOR PRESENTATION | February 2021
Slide 8: Profit & Loss Statement as on 31st December, 2020
PROFIT & LOSS STATEMENT AS ON 31ST DECEMBER, 2020 ₹ in Crore Particulars Q3FY21 Q2FY21 Q3FY20 Y-o-Y (%) 9MFY21 9MFY20 Y-o-Y (%) Total Sales 549 459 396 39% 1,310 1,205 9% Raw Material Consumed 356 307 267 33% 883 827 7% Employee benefit expenses 27 23 23 17% 72 63 15% Other Expenses 63 49 53 19% 140
Slide 9: Improvement in Working Capital Cycle
IMPROVEMENT IN WORKING CAPITAL CYCLE 77 58 74 55 36 28 87 36 49 68 50 42 66 67 78 59 47 70 40 77 59 39 46 57 FY16 FY17 FY18 FY19 FY20 9MFY21 Debtor Days Inventory Days Creditor Days Working Capital Days 9 INVESTOR PRESENTATION | February 2021
Slide 10: Industry Overview
INDUSTRY OVERVIEW (in Kg) (₹. in Bn) India's Low per capita pipe Consumption vs World Avg. Domestic Plastic Pipes & Fittings Market Size 12-14% CAGR 110 550 10-12% CAGR World Avg. 30 65 ~300 270 250 45 225 205 180 33 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P 10 INVESTOR PRE
Slide 11: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Swachh Bharat Mission 75% of 600 million – To achieve universal households do sanitation coverage and Smart City Mission – To Indians face drive economic growth not have high to extreme to put focus on drinking water By 2030, 40% of and improve the quality stress over Sanitat
Slide 12: Union Budget 2021-22 Highlights and Relevance
UNION BUDGET 2021-22 HIGHLIGHTS AND RELEVANCE PLUMBING PIPE INFRASTRUCTURE PIPE AGRICULTURE PIPE o The Urban Swachh Bharat o Enhancement in the Agricultural Mission 2.0, on the other hand, o Ministry of Housing and Urban Credit to Rs. 16.5 Lakh crores in will be undertaken with a affairs has been al
Slide 13: 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 14: Prince at a Glance
PRINCE AT A GLANCE 1987 6+1 11 7,200+ Incorporation No. of Facilities* Warehouses SKUs ~1,500++ CRISIL A- 0.31x 1,784 For Long Term Channel Partners Debt to Equity Employees Facilities 3,281 Cr 113 Cr ~2,55,000 MTPA Prince and Market Cap PAT Total installed Trubore (For Dec 31st 2020 ) (For FY 2020)
Slide 15: 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 16: Our Manufacturing Capabilities
OUR MANUFACTURING CAPABILITIES Athal 1995 Dadra 2000 Haridwar 2008 Chennai 2012 Installed #Capacity Installed #Capacity Installed #Capacity Installed #Capacity Product Product Product Product Capacity Utilization Capacity Utilization Capacity Utilization Capacity Utilization 15,982 FITTINGS 59,232 P
Slide 17: Strategic Distribution - Expanding Footprints
STRATEGIC DISTRIBUTION - EXPANDING FOOTPRINTS NORTH EAST JAMMKASHMIR First mover in 2008 with Next frontier of growth HIMACHAL PRADESH Haridwar plant Asset light model To scale brand equity in North PUNJAB through outsourcing HARYANA UTTARAKHAND Legend HARIDWAR DELHI GHAZIABAD JAIPUR CORPORATE OFFIC
Slide 18: Commissioning of Telangana Plant - Opportunity Up for Grabs
COMMISSIONING OF TELANGANA PLANT - OPPORTUNITY UP FOR GRABS We are happy to announce that the Telangana Plant has commenced its operations way before of our time schedule. This move shall aid us to discover more opportunities in the Southern Market. SIGNIFICANT COST SAVINGS IN LOGISTICS SUPERIOR AND
Slide 19: 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 in India and set up a through inorganic unique asset light compound
Slide 20: 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 21: Market Consolidation – A Boon for Prince Pipes & Fittings
MARKET CONSOLIDATION – A BOON FOR PRINCE PIPES & 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 becom
Slide 22: 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 23: Execution Capability with Thrust on Margin
EXECUTION CAPABILITY WITH THRUST ON MARGIN …..due to improvement in product-mix with rising share of Plumbing/SWR pipes Margin Levers 1.1% 1.3% 3.2% 1.0% 63.5% 65.0% 66.0% 65.5% Enhancing industry Product Mix Brand Favourable Operating 35.4% influence by Improvement Monetization Leverage due to volu
Slide 24: Product Basket
PRODUCT BASKET Plumbing Solutions Sewage & Underground Drainage Portfolio Irrigation Solutions CPVC Plumbing SWR Piping Agriculture Piping UPVC Plumbing Low Noise SWR Borewell Storage Solutions PPR Plumbing & Underground Drainage industrial Piping Underground Double Roofwater Wall Corrugated Pipes 2
Slide 25: 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 26: 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 27: Storefit – Paani Ka Bank
STOREFIT – PAANI KA BANK Launched Range of Tanks under the Brand Wide Range of Sizes (Ltr.) 500 30 Years 750 Leveraging experience in Plastics & Building materials 1000 Strong Pan India Presence Advantage of Multi-Locations Manufacturing & Marketing 1500 Robust Distribution Infrastructure Efficient
Slide 28: Focus on Triple Bottom Line
FOCUS ON TRIPLE BOTTOM LINE 2.7M Pounds Coal Burned/Year Financial Solar Energy 1 Equal To 40K Trees Seedlings, Grown for a Decade Triple Bottom-line 2 Environmental Goals 23% Reduce Green-house Gas Emissions By Over The Past 4 Years 3 Social Replacing Conventional High Energy Consumption Equipment
Slide 29: 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 30: Awards & Achievements
AWARDS & ACHIEVEMENTS Award for outstanding quality Mr. Jayant Chheda - CMD was National Awards for Excellence in contribution in the pipe sector in awarded the ‘Lifetime Learning & Development 2010 EPC World Awards, 2010 2014 Achievement Award’ at the Vinyl 2015 India Conference, 2014 Silver certif
Slide 31: Product Branding
PRODUCT BRANDING Outdoor Hoardings Creatives Auto Branding & Marketing Auto Branding & Marketing Outdoor Hoardings Creatives Promoting Prince + FGP through shop boards Outdoor Hoardings Creatives 31 INVESTOR PRESENTATION | February 2021
Slide 32: Pan India-Influencer & Channel Engagement Activities
PAN INDIA-INFLUENCER & CHANNEL ENGAGEMENT ACTIVITIES 32 INVESTOR PRESENTATION | February 2021
Slide 33: Board of Directors
BOARD OF DIRECTORS Mr. Jayant S. Chheda Mr. Parag J. Chheda Founder, Chairman and MD Joint Managing Director He has an extensive industry knowledge, more than An MBA graduate from Oakland Community College. four decades of experience and has been associated Associated with the company since 1996 and
Slide 34: Independent & Nominee Directors
INDEPENDENT & NOMINEE DIRECTORS Mr. Ramesh Chandak, Mr. Mohinder Pal Bansal, Mrs. Uma Mandavgane, Independent Director Independent Director Independent Director With past affiliations at KEC International Ltd., Parag Milk He has served as a Director and Chartered Accountant in With an experience of
Slide 35: Strong Core Professional Team
STRONG CORE PROFESSIONAL TEAM Mr. Shyam Sharda, Mr. Vininder Singh Baweja, Mr. Ashok Mehra, Chief Financial Officer Chief Operations Officer Vice President– Sales & Marketing - Prince He is a commerce graduate from Jodhpur (Rajasthan) University An IIT Roorkee graduate in MBA and Marketing &IT, with
Slide 36: Corporate Information & Shareholding
CORPORATE INFORMATION & SHAREHOLDING Shareholding Pattern (as on 31st December, 2020) Stock Data Institutions Market Cap as on 2nd February, 2021 3,564 Cr. 17% Stock Price as on 2nd February, 2021 ₹ 324 52 Week (High / Low) ₹ 346.50/75.0 Others 20% NSE / BSE - Symbol PRINCEPIPE / 542907 Promoters 63
Slide 37: Annual Financial Performance
ANNUAL FINANCIAL PERFORMANCE ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 1,631 3.7% 12.9% 12.3% 11.8% 14.0% 2.9% 5.9% 5.6% 5.3% 6.9% 1,561 Margin Margin 1,247 1,315 113 229 1,007 184 82 161 162 74 74 98 29 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 F
Slide 38: Stakeholder's Value Creation
STAKEHOLDER'S VALUE CREATION A disciplined balance sheet Navigating opportunities across new Strong Corporate Governance 11 Crores geographies 19.5% Enhancing Brand Highly Scalable Equity Manufacturing Capabilities 112.6% 20% Prudent Capital Vision-oriented Allocation leadership 38 INVESTOR PRESENTA
Slide 39: Thank You
THANK YOU PRINCE PIPES AND FITTINGS LTD. CONTACT DETAILS S-ANCIAL TECHNOLOGIES PVT. LTD. (INVESTOR RELATIONS) THE RUBY, 8TH FLOOR, 29, SENAPATI BAPAT MARG Mr. Shyam Sharda (TULSI PIPE ROAD), DADAR (WEST), MUMBAI- 400028, INDIA. CFO 215, Shivshakti Industrial Estate, J. R. Boricha Marg, Fax: + 91 22
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