Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q2 FY2020 Earnings Presentation
37 slides from Apollo Pipes's earnings presentation, Nov 12, 2019
Slide 1: Intimation of Result Presentation to Stock Exchanges
November 12, 2019 ELECTRONIC FILING THROUGH BSE LISTING CENTER The National Stock Exchange of India Department of Corporate Services/Listing Limited BSE Limited Exchange Plaza, 5thFloor Phiroze Jeejeebhoy Towers, Plot No C/1, G Block Dalal Street, Fort, Bandra-Kurla Complex MUMBAI - 400 001 Bandra (
Slide 2: Q2 & H1 FY20 Result Presentation
APOLLO PIPES LTD. Q2 & H1 FY20 Result Presentation November 12, 2019
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 Q2 & H1 FY20 Highlights 1 Company Overview 2 Strategic Growth Pillars 3 Financial Highlights 4 Key Focus Areas 5 Annexure 6
Slide 5: Operational & Financial Highlights Q2 & H1 FY20
4 Operational & Financial Highlights Q2 & H1 FY20
Slide 6: Q2 FY20 at a glance
5 Q2 FY20 at a glance Volume EBITDA PAT Net Cash 11% yoy increase 18% yoy increase 29% yoy increase Capacity* as on 30th ROCE in FY19 Shares of Apollo Pipes list on the September 2019 National Stock Exchange Launch of PVC taps, Faucets Net WC days Operating cash flows Distributors Products Continuou
Slide 7: Key Developments
6 Key Developments • The existing manufacturing facilities at Dadri and Ahmedabad continue to mark a steady operational Improving progress. The Company’s primary focus is to improve utilisation at its existing plants of Dadri, utilization levels Ahmedabad and Bengaluru. The utilization levels at the
Slide 8: Key Developments
7 Key Developments • Apollo Pipes Limited’s shares have begun trading on the National Stock Exchange (NSE) effective at Shares of Apollo the open of markets on November 11, 2019 Pipes list on the • The shares will trade on the NSE under the ticker symbol “APOLLOPIPE” National Stock Exchange • The tr
Slide 9: Key Financial & Operational Parameters
8 Key Financial & Operational Parameters Product-wise Revenue Breakup Particulars (Rs. crore) Q2 FY20 Q2 FY19 Y-o-Y Shift H1 FY20 H1 FY19 Y-o-Y Shift uPVC Pipes 66.71 66.17 1% 155.52 147.41 6% cPVC Pipes 5.80 3.18 83% 9.50 5.72 66% Product Revenue (excluding HDPE Products 5.98 2.51 138% 13.33 7.96 6
Slide 10: Abridged P&L Statement
9 Abridged P&L Statement Particulars (Rs. crore) Q2 FY20 Q2 FY19 Y-o-Y Shift H1 FY20 H1 FY19 Y-o-Y Shift Net Revenue from Operations 96.5 84.3 14% 213.8 185.4 15% Other Income 2.5 3.3 -25% 4.8 5.7 -15% Total Income From Operations (Net) 98.9 87.5 13% 218.6 191.1 14% Total Expenditure 86.7 77.2 12% 1
Slide 11: Abridged Balance Sheet
10 Abridged Balance Sheet As at 30th As at 30th As at 31st As at 31st EQUITY AND LIABILITIES (Rs. September September March 201 March 2019 ASSETS (Rs. Crore) Crore) 2019 2019 (Audited) (Audited) (Unaudited) (Unaudited) (a) Share capital 13.1 11.0 Tangible assets 112.8 92.8 (b) Other equity 280.5 115
Slide 12: Financial Overview and Discussion (YoY)
11 Financial Overview and Discussion (YoY) Income From Operations during H1FY20 stood at Rs. 213.8 crore, higher by 15% Y-o-Y; Income from Operations in Q2 was higher by 14%, stood at Rs. 96.5 crore as against Rs. 84.3 crore in Q2FY19 • The Company delivered a stable operational and financial perfor
Slide 13: Management's Message
12 Management’s Message “We have delivered a steady operational and financial performance during the quarter despite facing external challenges such as muted demand sentiments in the domestic market and impact of heavy monsoons & flooding in key geographies. During the quarter, our sales volume grew
Slide 14: Outlook for FY20
13 Outlook for FY20 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 next few qu
Slide 15: Company Overview
14 Company Overview
Slide 16: Growth Map
15 Growth Map Figures in Rs. crore Particulars FY2015 FY2016 FY2017 FY2018 FY2019 CAGR Revenues 90 209 243 301 374 43% EBITDA 8 24 32 41 51 59% PAT 12* 10 16 22 24 19% Available Capacity MTPA (~) 35,000 52,000 53,000 60,000 63,000 16% Sales Volume (MTPA) 22,388 26,710 28,941 33,707 39,823 15% • *Inc
Slide 17: Key Strengths
16 Key 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+ products Infras
Slide 18: Product Portfolio - Diversified Basket of 1,000+ Products
17 Product Portfolio - Diversified Basket of 1,000+ Products PLASTIC TAPS/ uPVC PIPING SYSTEM cPVC PIPING SYSTEM HDPE PRODUCTS FAUCETS/SHOWERS PIPES FITTINGS PIPES FITTINGS FAUCETS SHOWERS ALLIED HDPE PIPING SYSTEM uPVC PIPES uPVC PLUMBING uPVC RING FIT PIPES PIPING SYSTEM uPVC COLUMN PIPES
Slide 19: Product Application across Sectors
18 Product Application across Sectors Agriculture Segment Water Management Segment •Casing pipes •Hot & cold potable water •Drip irrigation & distribution & transportation •Sprinkler system •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils
Slide 20: Aiming Pan-India Distribution Presence
19 Aiming Pan-India Distribution Presence Enjoys a dominant and Delhi leading Head Office presence in Dadri North India (Manufacturing Unit-I) Extensive distribution Tapping newer network markets to reduce significantly inventory cost for reduces delivery Distributors & time to 48 hours Dealers (fro
Slide 21: Manufacturing Facilities
20 Manufacturing Facilities Close-to-demand Best in class distribution Manufacturing network catering Facility, with to key markets of advanced North, West, equipment & Central and South practices India All major certifications/ In-house accreditations manufacturing offers incremental contribution t
Slide 22: Product Development & Handling
21 Product Development & Handling In-house CPVC In-house Compounding development of for Pipes & extrusion moulds Fittings. for better efficiency Strong Technical Solid experience know how of manufacturing among Employee pipes with set base specifications
Slide 23: Strategic Growth Pillars
22 STRATEGIC GROWTH PILLARS
Slide 24: Scale-up distribution network across India
23 Scale-up distribution network across India to augment presence and improve market penetration Strengthening Distribution & Footprint Diversified Product Portfolio • Establishing a solid presence in key markets • Strong presence in North India – extending market reach in other parts of India. Focu
Slide 25: Diversified Product Portfolio, aiming for 2,000+ products
24 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket Strengthening Distribution & Footprint • Range of products manufactured at the technologically-advanced manufacturing Diversified facility at Dadri and Ahmedabad Product Portfolio • Empha
Slide 26: Sharp focus on Value-Added Products: Fittings
25 Sharp focus on Value-Added Products: Fittings – to help strengthen the value chain Strengthening Distribution & Footprint Diversified Product Portfolio • Focused approach towards Fittings across uPVC and cPVC that offer significantly higher margins Focus on Value- • High-growth segment – rapidly
Slide 27: Capacity Expansion to achieve 90,000 MTPA by March 2020
26 Capacity Expansion to aid long-term growth plan – to achieve 90,000 MTPA by March 2020 Strengthening Distribution & Footprint • Total available capacity of 63,000 MTPA Diversified • Undertaking a phase-wise capacity expansion at the existing facilities of Dadri Product Portfolio and Ahmedabad ove
Slide 28: Leverage the 'APL Apollo' brand reach and recall
27 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth Strengthening Distribution & Footprint • The ‘APL Apollo’ brand has covered several milestones in its journey since inception Diversified • Brand synonymous with quality and reliability of operations Product Portf
Slide 29: Branding Activities - Sports sponsorship
28 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth Branding Activities – Strengthening Sports sponsorship Distribution & Footprint Diversified IPL TVC – Principal Product Portfolio sponsor of Delhi Capitals Focus on Value- added Products - Fittings Principal Spons
Slide 30: Key Focus
29 Key Focus
Slide 31: Key Focus Areas
30 Key Focus Areas Continuous Branding Activities – To leverage on Brand ‘APL Apollo’ Diversifying brand presence – Catering to Central, Western & Southern India through established facilities located in Ahmedabad & Dadri New Product launches – Targeting a basket of 2,000+ products with immaculate f
Slide 32: Financial Highlights
31 Financial Highlights
Slide 33: Financial Trend
32 Financial Trend CAGR – 43% CAGR – 59% Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 374.0 14% 14% 13% 301.0 12% 243.0 9% 209.0 90.0 8 24 32 41 51 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 CAGR – 14% CAGR – 15% PAT (Rs. Cr) Volume (MTPA) 39,823.0 24 33,707.0 22 26
Slide 34: 5-year Financial Track-record
33 5-year Financial Track-record Particulars FY2015 FY2016 FY2017 FY2018 FY2019 Net Worth (Rs. Cr) 45.0 55.0 91.4 113.3 229.8 Cash and cash equivalents 2.9 2.0 8.0 0.1 0.1 Capex for the year (Rs. Cr) 24.0 12.2 9.1 17.1 48.2 Inventory (Rs. Cr) 24.9 13.7 22.7 44.3 52.3 Inventory Days 101.5 24.0 34.3 5
Slide 35: Annexure
34 Annexure
Slide 36: About Us
35 About Us Apollo Pipes (BSE: 531761), 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 holds a strong reputa
Slide 37: Thank You
Thank You