Prince Pipes And Fittings Ltd · NSE:PRINCEPIPE
Prince Pipes And Fittings — H1 FY2021 Earnings Presentation
44 slides from Prince Pipes And Fittings's earnings presentation, November 2020
Slide 1: Swachh Bharat, AMRUT and Smart City Missions
SWACHH BHARAT MISSION To achieve universal sanitation coverage. and to put focus on sanitation” Budget - Rs 12,294 er i AMRUT Providing basic civic amenities like water supply, sewerage, urban transport, parks as to improve the quality of life: get - Rs 77,640 or oe eT , SMART CITY MISSION To drive
Slide 2: Jab piping systems honge leak-free, India banega disease-free
Jab piping systems honge leak-free, India banega disease-free.
Slide 3: Investor Presentation Q2 & H1 FY 2021
yd PRINCE’ PIPING SYSTEMS INVESTOR PRESENTATION Q28&H1 FY 2021
Slide 4: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 5: Index
Index Industry About Us Key Strategic Overview Strengths Way Forward Leadership Financials Outlook Profile 5
Slide 6: Industry Overview
Industry Overview India’s low Per Capita Plastic Consumption vs World Avg. Domestic Plastic Pipes & Fittings Market Size (In Kg) (Rs. bn) 110 World Avg. 30 550 65 ~300 45 250 270 205 225 33 180 11 US Europe China Brazil India FY14 FY15 FY16 FY17 FY18 FY19 FY24P Source: CRISIL Research 6
Slide 7: Big getting Bigger
Big getting Bigger Market consolidation to further accelerate post Covid-19 Prince Pipes is amongst the Front Government Initiatives like Runner Beneficiary Unorganised Organised Pan India manufacturing and distribution network focusing on Service + Scale + Range GST, Demonetisation Major market sha
Slide 8: About Us
About Us Promoted by More than 3 Largest Chheda decades of Range of Family Operations SKU’s Amongst Top Strategic Industry’s 5 Processor in located Most Piping Manufacturing Trusted Industry units Brand Over 3 decades of experience A wide range of 7,167 SKU’s Pan India distribution network 6 State o
Slide 9: Strategic Distribution & Factory Network
Strategic Distribution & Factory Network Upcoming Manufacturing Channel Depots Plant Plants Partners Strategic Manufacturing locations Pan India • Freight is a significant part of our Cost structure • Plants located near raw material sources/ports and principal markets to improve cost efficiencies U
Slide 10: Our Journey
Our Journey 1987 Incorporated as a Private Limited Company 1995 plastic injection moulding and extrusion unit in Athal BUILDING BLOCK OF A LEGACY Set up a large scale \ad PRINCE’ PIPING SYSTEMS 2000 2010 2018 New plant set up at Nominated for the Best Appointed Akshay Kumar Dadra for pipe SME Emergi
Slide 11: Continuous Innovation through Thought Leadership
Continuous Innovation through Thought Leadership 11
Slide 12: Sustained Thought Leadership and Execution Capabilities
Sustained Thought Leadership and Execution Capabilities 12
Slide 13: Quality & Reliability – Our Cornerstones
Quality & Reliability – Our Cornerstones 13
Slide 14: Scaling through Jaipur Plant
Scaling through Jaipur Plant • Production at Jaipur plant commenced in Sept, 2019 – Installed capacity • • of ~40kT in next 2-3 year horizon Being first mover in North India since 2008 with Haridwar • Strong first mover advantage and unparalleled brand equity in northern India Jaipur plant- Further
Slide 15: Scaling through Telangana Plant
Scaling through Telangana Plant Upcoming integrated 2012 manufacturing Pipe and Acquired Chennai & Fitting facility in Telangana Kolhapur from Chemplast Approx. 50 kT Sanmar Inorganic growth To bolster our endeavour in strategy for South India scaling up our distribution reach and market 2020 Way Fo
Slide 16: Brand Play - Winning In Many Indias
Brand Play - Winning In Many Indias 16
Slide 17: Pan India-Influencer & Channel Engagement Activities
Pan India-Influencer & Channel Engagement Activities 17
Slide 18: Channel Partners: Pan India Presence and Strategy
Pan India Presence and Strategy • First mover in 2008 FY15 Sales Profile Geographical spread Key with Haridwar plant Strengths • To scale brand 35.8% equity in North 33.9% 24.7% • 3 Plants across • Next frontier of NORTH different states to growth capture rapid WEST EAST • Asset light model urbaniza
Slide 19: Multi Polymer Product Basket
Multi Polymer Product Basket Key Strengths Wide Range of Pipes & Fittings SKUs 8,085 7,167 7,000 1,600 P1 P2 PRINCE P3 Source: Annual Reports 19 Note: P1 to P3 represents our Peers
Slide 20: Margin Levers
Execution capability with thrust on margin …..due to improvement in product-mix with rising share of Plumbing/SWR pipes Key Strengths Margin Levers 1.0% 1.1% 1.3% 3.2% 1.0% 64.4% 63.5% 65.0% 65.5% 66.0% Product Mix Improvement 34.6% 35.4% 33.7% 31.3% 33.0% FY16 FY17 FY18 FY19 FY20 Brand Monetization
Slide 21: Strategic Way Forward
STRATEGIC WAY FORWARD Lubrizol: A Partnership to transform plumbing products Tooling Holland BV: B Technical tie-up to bolster manufacturing best practices Solar Energy: C Triple bottom-line goals achievement StoreFit: D Seizing the opportunity 21
Slide 22: The Partnership That's Going to Change Plumbing Forever
THE PARTNERSHIP THAT’S GOING TO CHANGE PLUMBING FOREVER A The Inventors World’s Largest India's Leading Pipes Manufacturers of CPVC and Fittings Brand Compounds A Technology A Product CPVC PLUMBING SYSTEMS A COMBINATION FIRST CHOICE WORLD'S MOST WORLD-CLASS CHANGING THE EXTREME GLOBALLY FOR YEARS OF
Slide 23: Why Prince Flowguard Plus?
Why PRINCE FLOWGUARD® PLUS? A Manufactured from 50 years of life Suitable for use up to High tensile and Freedom from toxicity, Lubrizol's NSF 93°C impact strength odours and tastes approved compound THE ‘PLUS’ in FLOWGUARD® Low thermal Light in weight Quick and easy to Low transportation UV resista
Slide 24: Choose Better. Choose Prince Flowguard Plus.
50+ Years of Proven Technology CHOOSE BETTER. World’s first CPVC CHOOSE PRINCE FLOWGUARD® PLUS. Highest numbers of project in the World and India Regular upgradation of Compounds & Technical Services Finished compound for consistent quality Lubrizol takes equal responsibility for Training & Educatio
Slide 25: Flowguard Plus: Branding
FLOWGUARD® PLUS: Branding A 25
Slide 26: Prince Pipes Ties Up with Tooling Holland BV
TECHNICAL COLLABORATION WITH GLOBAL LEADERS TOOLING HOLLAND B Global leaders in Researcher & Mould Manufacturing Innovator INNOVATING TO THE NEXT LEVEL PRINCE PIPES TIES UP WITH TOOLING HOLLAND BV 40+ Rich Experience in Pioneers in many Good potential in Tool Mould Making critical Technologies Room
Slide 27: Bringing Global Best Practices to India via Synergy
Bringing Global Best Practices to INDIA via synergy B ► Great impetus to Prince Pipes’ growth plans ► Building & offering superior products, aligned to global standards and at competitive costs ► Prince Pipes enable to sharpen competitive edge ► Own technical know-how upgradation with productivity i
Slide 28: Triple Bottom Line: Focus on Clean Energy & Environment
TRIPLE BOTTOM LINE: Focus on Clean Energy & Environment C Triple Bottom-line Goals 2.7M Pounds IMPACT Coal Burned/Year 40K Trees Solar Energy Seedlings, Grown Financial Environmental Social Equal To for a Decade Reduce Green-house Gas 23% Emissions By Over The Past 4 Years Replacing Conventional Hig
Slide 29: Product Portfolio Diversification - StoreFit
Product Portfolio Diversification - STOREFIT D Experience in Plastics and Building Material Pan India Network of Manufacturing and Marketing WHY TANKS? Disruption in Tank Segment So, it’s the perfect time for a National Brand like PRINCE to Enter 29
Slide 30: Way Forward - StoreFit
Way Forward - STOREFIT D Launched Range of Tanks under the Brand Strong Robust 30 Years Leveraging experience Pan India Presence Advantage of Multi- Distribution Infrastructure Efficient Selling with #Brand An opportunity for a National brand like in Plastics & Building Locations Manufacturing Minim
Slide 31: Strategic Launch - StoreFit
Strategic Launch - STOREFIT D Pilot Launch in Gujarat Market Will Gradually move to other markets Wide Range of Sizes (Ltr.) 500 750 1000 1500 2000 3000 Gradually expand range and markets post response from the launch 31
Slide 32: Covid Readiness - Hands Free Sanitiser - Sanifit
Covid Readiness - Hands Free Sanitiser - SANIFIT Introduced Hand Sanitizers Hands-Free Pedal Pushing Eco Heavy Eco Light Eco Compact Extensively Tested for Durability and Effective usage Hands-Free units Designed & Manufactured Advantages over Metal Dispensing Maintenance Free Easy To Store Order Re
Slide 33: Social Awareness & Impact - Sanifit
Social Awareness & Impact - SANIFIT CSR INITIATIVES DM Office Bewell Hospital Chandgad Police Station Haridwar Annanagar Kolhapur ATS Units Polic Station Kauvery Hospital Mumbai Silvassa Alwarpet 33
Slide 34: Board of Directors
Board of Directors Directors Work Experience Background • Associated with the company since Mr. Jayant S. Chheda incorporation Founder, Chairman and MD • Awarded the Lifetime Achievement Award‘ at Exp. : 40+ Years the Vinyl India Conference, 2014 • Associated with company since 1996, holds an Mr. Pa
Slide 35: Independent & Nominee Directors
Independent & Nominee Directors Directors Work Experience Directorship & Past Affiliation Background Mr. Ramesh Chandak KEC INTERNATIONAL LTD., PARAG MILK • Directorship in multiple corporates and Independent Director FOODS LTD., RR GLOBAL Chartered Accountant Exp. : 40+ Years Mr. Mohinder Pal Bansa
Slide 36: Strong Core Professional Team
Strong Core Professional Team CXO Work Experience Past Affiliations Background Mr. Shyam Sharda • CA in Accounts & Finance Management – Chief Financial Officer UNITED PHOSPHOROUS LTD, S. KUMARS LTD., ICAI Age : 48 Years; Exp. : 22+ Years • ICWA in Costing & Finance – ICWAI (Intern) Mr. Vininder Sing
Slide 37: Key Highlights Q2 & H1 FY21
Key Highlights Q2 & H1 FY21 • For Q2FY21, revenue at Rs. 459 crore compared to Rs. 429 crore in Q2FY20, grew by 7% • For H1FY21, revenue at Rs. 761 crore compared to Rs. 809 crore in H1FY20, contracted by 6% • Sales volume increased by 2% at 35,142 MT in Q2FY21 as compared to 34,553 MT in Q2FY20 • S
Slide 38: Financial Matrix - P&L Q2 FY21
Financial Matrix - P&L Q2 FY21 ₹ in Crore Growth % Particulars Q2FY21 Q2FY20 Y-O-Y Revenue from Operation 459 429 7% EBIDTA 80 65 23% EBITDA margin % 17.5% 15.2% 230 bps Other Income 3 0.6 4x Depreciation 15 12 25% Finance Cost 5 9 -44% PBT 63 45 40% PBT margin % 13.7% 10.4% 330 bps TAX 16 11 46% PA
Slide 39: Financial Matrix - P&L H1 FY21
Financial Matrix - P&L H1 FY21 ₹ in Crore Growth % Particulars H1FY21 H1FY20 Y-O-Y Revenue from Operation 761 809 -6% EBIDTA 112 118 -5% EBITDA margin % 14.7% 14.6% 10 bps Other Income 8 1 7x Depreciation 29 24 21% Finance Cost 12 16 -25% PBT 79 78 1% PBT margin % 10.4% 9.7% 70 bps TAX 21 19 11% PAT
Slide 40: Key Balance Sheet Details
Key Balance Sheet Details ₹ in Crore Key Balance Sheet Details 30-Sep-20 31-Mar-20 31-Dec-19 30-Sep-19 Net worth 895.4 837.7 821.7 459.5 Long Term Debt (Including Current Maturity) 42.2 56.0 108.3 150.7 Short Term Debt 143.7 203.8 194.4 171.7 Total debt 185.9 260.9 302.7 322.4 Cash and cash equivale
Slide 41: Q2 & H1 Financial Highlights
Q2 & H1 FY20 Financial Highlights Q2 FY20 Q2 FY21 Q1 FY20 Q1 FY21 Revenue (₹ in Crs.) Sales Volume (MT) EBITDA (₹ in Crs.) PAT (₹ in Crs.) Q2 2% 7% 34,553 35,142 47 429 459 80 33 65 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 Revenue (₹ in Crs.) Sa
Slide 42: Improvement of Cash Conversion Cycle H1FY21
Improvement of Cash Conversion Cycle H1FY21 Debtor Days Inventory Days 87 77 68 67 66 61 59 50 47 40 41 36 FY16 FY17 FY18 FY19 FY20 Sep-20 FY16 FY17 FY18 FY19 FY20 Sep-20 Creditor Days Working Capital Days 78 74 77 70 59 55 58 53 49 49 42 36 FY16 FY17 FY18 FY19 FY20 Sep-20 FY16 FY17 FY18 FY19 FY20 S
Slide 43: Annual Financial Track Record
Annual Financial Track Record ₹ in Crore Net Revenue from Products EBITDA & EBITDA Margin PAT & PAT Margin 1,800 150 Margin 9.7% 12.9% 12.3% 11.8% 14.0% Margin 2.9% 5.9% 5.6% 5.3% 6.9% 1,600 250 130 1,400 1,561 1,631 110 200 229 1,200 1,315 113 1,000 1,247 150 184 90 800 1,007 161 162 70 82 600 100
Slide 44: Thank You!
Thank You! Contact Details: Mr. Shyam Sharda Mr. Rabindra Basu CFO Investor Relations :cfo@princepipes.com : investor@princepipes.com 44
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