Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q4 FY2021 Earnings Presentation
32 slides from Apollo Pipes's earnings presentation, May 4, 2021
Slide 1: Q4 & FY21 Earnings Presentation
APOLLO PIPES LTD. Q4 & FY21 EARNINGS PRESENTATION May 04, 2021 www.apollopipes.com 1
Slide 2: Safe Harbour
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 3: Table of Content
TABLE OF CONTENT 4 Future Outlook 5 5 Year Financial Highlights 6 Q4 & FY21 Highlights www.apollopipes.com 3
Slide 4: Company Overview
COMPANY OVERVIEW www.apollopipes.com 4
Slide 5: Apollo Pipes at a Glance
APOLLO PIPES AT A GLANCE Among the Top 10 leading PVC pipe 1,18,000 MTPA 4 600+ manufactures in India Capacity* as on Manufacturing Channel Partners 31 March 2021 Plants 1500+ 13% 21% 30% SKU’s 5-year Sales 5-year Revenue 5-year Net Volume CAGR CAGR Profit CAGR www.apollopipes.com 5
Slide 6: FY21 at a Glance
FY21 AT A GLANCE ` 47,333 MT 518.1 Cr. 74.3 Cr. Sales Volume Revenue EBITDA 27% YoY increase 60% YoY increase 6% YoY increase 44.5 Cr. 58 Days 21.1% PAT Net WC days Continuous ROCE in FY21 vs 56% YoY increase focus on improving WC cycle 19.8% in FY20 www.apollopipes.com 6
Slide 7: Q4 FY21 at a Glance
Q4 FY21 AT A GLANCE ` 12,987 MT 174.2Cr. 27Cr. Sales Volume Revenue EBITDA 85% YoY increase 158% YoY increase 34% YoY increase 16.6 Cr. 58 Days 21.1% PAT Net WC days Continuous ROCE in FY21 vs 169% YoY increase focus on improving WC cycle 19.8% in FY20 www.apollopipes.com 7
Slide 8: Presence Across Sectors
PRESENCE ACROSS SECTORS Apollo Pipes - Key Focus Area www.apollopipes.com 8
Slide 9: Product Portfolio
PRODUCT PORTFOLIO Diversified Basket of 1,500+ Products uPVC Piping System CPVC Piping System uPVC Pipes & Fittings | uPVC Column Pipes | S W R Drainage Pipes | uPVC Pressure Pipes C PVC Pipes & Fittings Well Casing Pipes | Underground Drainage Pipes HDPE Piping System Bath Fittings SOLVENT CEMENT Wa
Slide 10: Success Milestone
SUCCESS MILESTONE 2019 2020-21 • Concluded promoter • Concluded the strategic infusion of Rs. 202 crore acquisition of Kisan throughissuance of Mouldings’ manufacturing Equity Shares and fully unit in Bengaluru convertible warrants on • Successful listing of Preferential basis Company’s shares on NS
Slide 11: Our Environment, Social, Governance and Safety Policy
Our Environment, Social, Governance and Safety Policy www.apollopipes.com 11
Slide 12: Growth Levers
GROWTH LEVERS www.apollopipes.com 12
Slide 13: Key Business Strength
Key Business Strength Catering to multiple sectors – Expanding footprint in India Agriculture, Water Management, Infrastructure Proven expertise in Strong and highly experienced complex projects Management Team Advanced equipment & Multiple and efficient product technology – cost efficient offerings – 1,
Slide 14: Strengthening distribution network across India
Strengthening distribution network across India to Augment presence and improve market penetration Enjoys a dominant and leading presence in North India Extensive distribution network significantly reduces delivery time to 4 8 hours Tapping newer (from 10-12 days) markets to reduce inventory cost fo
Slide 15: Diversified Product Portfolio, Aiming for 2,500+ Products
Diversified Product Portfolio with total offerings at 1,500+, Aiming to achieve 2,500+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri and Ahmedabad • Emphasis on innovation: One of the first companies to launch “Super Lock System
Slide 16: Capacity Expansion to aid long-term growth plan
Capacity Expansion to aid long-term growth plan – Target to install 125,000 MTPA by May 2021 1,18,000 MTPA *Excluding Additions for Raipur unit www.apollopipes.com 16
Slide 17: Macro Growth Drivers
MACRO GROWTH DRIVERS www.apollopipes.com 17
Slide 18: PVC Pipe Industry
PVC Pipe Industry The Indian PVC pipes and fittings market expected to register 15% CAGR during FY18 - FY26 • The domestic plastic pipes industry size at ~ ₹ 315B • Organized players account for ~60% market share • Key features of plastic pipes against other pipes - Lightweight - Ease of transportati
Slide 19: At the Forefront of multiple sector trends
At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing • Rehabilitation of aging pipelines • Improving irrigation schemes for and distribution requirements and installation of new pipes in farmers • Water Man
Slide 20: Future Outlook
FUTURE OUTLOOK www.apollopipes.com 20
Slide 21: Focus Areas for FY21-22
Focus Areas for FY21-22 Strengthen Undertake a Register solid Penetrate and Improve Undertake foothold in phase-wise growth in establish utilization at various brand existing capacity volumes – footprint into the existing building markets of expansion at the targeting neighboring manufacturing exerc
Slide 22: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS www.apollopipes.com 22
Slide 23: Financial Trend
Financial Trend FY21 ( 5 Y r. C A G R - 2 1 %) ( 5 Y r. C A G R - 2 5 % ) Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margin (%) 518 100 14% 16% 362 408 284 13% 13% 14% 241 50 11% 12% 74 12% 31 33 39 46 0 10% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 ( 5 Y r. C A G R - 3 0 % ) ( 5 Y r. C A G R -
Slide 24: Financial Trend: ROCE, ROE, Net Debt
Financial Trend FY21 ROCE (%) ROE (%) 26.1 23.8 24.7 21.1 19.4 19.8 17.2 12.7 10.4 9.3 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Net Debt/Cash* (Rs.Cr) Net Debt/Equity Ratio** (x) 34 0.29 20 0.21 FY17 FY18 FY19 FY20 FY21 10 FY17 FY18 FY19 FY20 FY21 35 0.15 0.12 0.03 38 *Negative due to Net c
Slide 25: Financial Trend: Working Capital, Cash Flow
Financial Trend FY21 Net Working Capital (Days) Net Op. Cashflow (Rs. Cr) 58 58 96 50 49 48 39 24 26 12 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Interest Coverage Ratio (x) 14.9 Net Debt/EBITDA* (x) 12.1 8.0 7.0 7.2 1.0 0.6 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 0.1 0.9 0.8 *Nega
Slide 26: Quarterly Performance
Quarterly Performance Q4 FY21 Sales Volume (Ton) EBITDA (Rs. Cr) 12,268 12,987 25.5 27.0 10,633 11,445 9,721 15.5 10.5 6.2 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 EBITDA/Ton (Rs) PAT (Rs. Cr) 16.3 16.6 22,267 20,828 12,657 9.5 10,775 6.2 5,821 2.0 Q4 FY20 Q1 FY
Slide 27: Abridged P&L Statement
Abridged P&L Statement Particulars (Rs Cr) Q4 FY21 Q3FY21 Q4 FY20 Y-o-Y Shift Q-o-Q Shift FY21 FY20 Y-o-Y Shift Net Revenue from Operations 174.2 128.1 94.1 85% 36% 518.1 408.0 27% Total Expenditure 147.1 102.6 83.7 76% 43% 443.8 361.6 23% Raw Material expenses 125.9 79.2 65.7 92% 59% 361.8 288.8 25
Slide 28: Abridged Balance Sheet and Cash Flow Statement
Abridged Balance Sheet and Cash Flow Statement Balance Sheet - Assets (Rs Cr) FY21 FY20 Cash Flow Statement (Rs Cr) FY21 FY20 Cash & Bank Balance 72.5 128.1 EBITDA 74.3 46.4 Receivables 62.7 59.4 Changes in Accounts receivables -3.3 -23.6 Inventories 78.2 82.4 Changes in Inventory 4.2 -30.2 Other cu
Slide 29: Conclusion
CONCLUSION www.apollopipes.com 29
Slide 30: Key Takeaways
Key Takeaways Increased market presence Target to achieve and improving 25%+ sales volume distributor network growth C A G R over to address demand next three years across Leveraging ‘APL Value-added pan-India Apollo’ brand Aiming capacity product categories reach and recall upgradation to the to pr
Slide 31: About Us
About Us Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), 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 d e c ad e s of experience in the Indian P ip e Market, Apollo Pipes
Slide 32: Thank You
THANK YOU www.apollopipes.com 32