Kamdhenu Limited · NSE:KAMDHENU
Kamdhenu — Q3 FY2018 Earnings Presentation
43 slides from Kamdhenu's earnings presentation, February 2018
Slide 1: Investor Presentation
Investor Presentation February 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Q3 & 9M FY18 Financial Highlights
Q3 & 9M FY18 Financial Highlights
Slide 4: Consistent Growth – Q3 FY18
Consistent Growth – Q3 FY18 Revenue Profit Before Tax Profit after Tax +38% +118% +76% 305.1 6.6 4.1 221.8 2.3 3.0 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Rs. Crores 38% 118% 76% 4
Slide 5: Consistent Growth – 9M FY18
Consistent Growth – 9M FY18 Revenue Profit Before Tax Profit after Tax +38% +80% +60% 802.8 15.7 10.0 583.2 6.2 8.7 9M FY17 9M FY18 9M FY17 9M FY18 9M FY17 9M FY18 Rs. Crores 38% 80% 60% 5
Slide 6: Overview
Overview Brand Turnover India's Leading Company over 75+ Franchise Units to dealing with Manufacturing, manufacture steel rebars, Distribution, Marketing & Rs. 6,000 Crores structural steel products & Colour Branding coated Profile Sheets KAMDHENU is Largest TMT 6,500 Dealers of Steel across selling
Slide 7: Our Journey
Our Journey ▪ 2016- Name Changed from Kamdhenu ▪ 2006- IPO – Listed at Ispat Ltd. to Kamdhenu Ltd. – ▪ 1995- Production of NSE/BSE positioned as branding and marketing Steel Bars company ▪ 2008- Forayed into ▪ 2000- Certified for Decorative Paints ▪ 2017- Launched Kamdhenu Nxt – TMT international qu
Slide 8: Unique Business Model
Unique Business Model
Slide 9: Asset Light Business Model
Asset Light Business Model… Kamdhenu Group Innovator – We do Research and Franchise Business Model helped in creating introduce new products based on Customer Requirement in the Market BRAND LEADERSHIP in STEEL RETAIL Franchise Dealer Dealers / Distributors Franchise Distributor Manufactures product
Slide 10: …creates Long-term Sustainability
…creates Long-term Sustainability Saving Transportation cost Increase in Market share . Enhanced revenue and increase in Profitability due to Royalty earned Improvement in Brand Equity Advantage to Kamdhenu Easy availability of product in all parts of the country Ensure quick delivery of Products to
Slide 11: …with win-win for Franchises
…with win-win for Franchises Expertise & Experience Quality Assurance We provide franchise units with our Expertise Assurance of Quality from Kamdhenu gives and Experience for an efficient business comfort to End Customers Ready Marketplace Centralized Publicity Ready Platform in niche market giving
Slide 12: Pan India Decentralized Manufacturing
Pan India Decentralized Manufacturing Decentralized Outsourced Manufacturing Model ▪ Communication : Working with a local manufacturer makes the communication process easy. Real time conversations result in a better understanding of the specifics and preferences of the products by the Customer ▪ Low
Slide 13: Huge Capacities at ZERO Capex
Huge Capacities at ZERO Capex Manufacturing Capacities - Franchises Company Owned - Manufacturing, R&D and T&D Steel Division : Bhiwadi Production Capacity : ▪ Steel Rebars – 25 Lacs MT per annum ▪ Structural Steel – 5 Lacs MT per annum ▪ Small capacity of 72,000 MTPA to support innovation and produ
Slide 14: Branded Product Portfolio
Branded Product Portfolio
Slide 15: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu SS 10000 TMT Bars Kamdhenu – Nxt TMT Next Generation Interlock Steel and TMT Bars are thermo-mechanically- TMT Bars are thermo-mechanically- has got the angular double rib design treated through leading world treated through l
Slide 16: India’s largest Branded TMT Bars
India’s largest Branded TMT Bars India’s Largest brand in TMT (Thermo Mechanically Treated) steel bars BRAND with in-house capacity of 72,000 MT p.a. State-of-the-art Tempcore Technology from CRM, Belgium 44 Franchisee Units under “KAMDHENU Brand” steel rebars with the production capacity of 25 Lacs
Slide 17: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Kamdhenu Limited manufactures Structural Steel under franchisee arrangement Description Special Contours ▪ One such product which continues to pioneer new innovations ▪ Production of a multitude of special contours such as: ▪ It is counted as one of the mos
Slide 18: Decorative Paints Among Top Brands in India
Decorative Paints Among Top Brands in India Commenced SKUs Kamdhenu Paints Kamdhenu Paints – COLOUR DREAMZ 2008 set up its own unit for 40+ SKUs across 10+ product Designer Gallery manufacturing of decorative Paints categories under its flagship brand 30 designer galleries in operation Dealers acros
Slide 19: Extensive Product Range
Extensive Product Range Emulsions Primers Type Premium Regular Type Premium Regular Water Based Exterior Weather Weather Kamo Exterior Sealer 1st Quality Universal Primer Supreme Classic Shield Solvent Based Wood Primer Red Oxide Universal Primer (ST) Kamo Shine Velvety Sheen & Shine Interior Distem
Slide 20: Extensive Product Range
Extensive Product Range Stainers, Specialty and Other Coatings Construction Chemicals Kamo Replica Kamometallica Designer & The Special Effect Metallic Lustre Kamocrete CRP Textured Paints Paint Paint Concrete Repair Product Kamoshoraseal Anti Efflouroscent Primer Kamo Dampguard NC Lacquer Melamine
Slide 21: Niche Products with high Potential
Niche Products with high Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer Our specialized water proofing It's a unique primer which can be Kamwood Premium Wood solutions are an aid to the applied on the walls at exteriors Aimed at the segment having finishes works to pro
Slide 22: Brand “KAMDHENU”
Brand “KAMDHENU”
Slide 23: “KAMDHENU” – Brand Sales over Rs. 6,000 crores
“KAMDHENU” – Brand Sales over Rs. 6,000 crores Brand Expenses In Crores Brand Creation over years 69 63 48 39 Premiumization of Products 33 ▪ International Quality with competitive prices 2013 2014 2015 2016 2017 Brand Expenses to Sales Results 8.4% Positive Relationship 7.5% ▪ Enhances Brand Associ
Slide 24: Participation of Noted Celebrities
Participation of Noted Celebrities Celebrity Participation in Business events Bipasha Basu Shilpa Shetty Kangana Ranaut Malaika Arora Dia Mirza Sonu Nigam Kanika Kapoor Sunidhi Chauhan Neha Kakkar Shweta Tiwari Kamdhenu has strategically used it’s celebrity repertoire to create visibility at all lev
Slide 25: Brand Promotions - Print & Outdoor Media
Brand Promotions - Print & Outdoor Media Medium Partner Newspapers National Newspapers Regional Newspapers Rajasthan Patrika (Jansatta) (Punjab Kesari) The Kamdhenu brand is prominent across the country, with wide presence in electronic, print as well as outdoor media – which is complemented by bran
Slide 26: TARGET KA BADSHAH - Dealer/Distributor Awards
TARGET KA BADSHAH - Dealer/Distributor Awards Notable celebrity affiliations through brand promotions, event participations have helped strengthen the emotional connect with dealers where relationships were formative 26
Slide 27: Sustainable growth through Brand Creation
Sustainable growth through Brand Creation Kamdhenu Brand Sales Turnover (In Rs. Crs) 5,924 5,968 6,052 5,590 CAGR +17% 4,735 3,759 2,842 2,897 2,263 2,274 1,808 1,112 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 27
Slide 28: Vision 2020
Vision 2020
Slide 29: Vision 2020
Vision 2020 Increase in Franchise with Increased Capacity Increase in Brand Revenue (Rs. Crs) Increase in Royalty Income (Rs. Crs) 72 6052 41 CAGR +11% CAGR +13% CAGR +18% 48 3759 16 25 1808 8 2007 2012 2017 2007 2012 2017 2007 2012 2017 100 Rs.10,000 crs Rs. 100 crs by 2020 by 2020 by 2020 29
Slide 30: Paint Premiumization
Paint Premiumization Breakup of Revenue 2010 2017 A targeted dealer network with a core focus on Water Based 43% Products premium products 34% Premium and High Margin Products ▪ Penetration can be easily tripled in 5 years through 10% Powder based 31% new dealers. Currently there are 50,000 + Dealer
Slide 31: Growth Drivers
Growth Drivers Affordable Housing The market potential of affordable housing projects in the country is expected to touch Rs 6.25 trillion by 2022 Housing For All India will need to construct 43,000 houses every day until 2022 to achieve the vision of Housing for All by 2022 Construction Sector Prem
Slide 32: Management Team
Management Team
Slide 33: Board of Directors
Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Chairman & Managing Director Whole Time Director Whole Time Director Whole Time Director Mr. Mahendra Kumar Doogar Mr. Radha Krishna Pandey Mr. Ramesh Chand Surana Mrs. Nishal Jain Mr. Harish K
Slide 34: Awards & Acknowledgements
Awards & Acknowledgements World's Greatest Asia's Most Promising Brand Indian Power Brand Brands 2015 amongst 2015-16 by World Consulting & 2016 Award Asia & GCC Research Corporation 34
Slide 35: Financials
Financials
Slide 36: Q3 & 9M FY18 - Statement of Profit & Loss
Q3 & 9M FY18 - Statement of Profit & Loss* Particulars (Rs. Crs) Q3 FY18 Q3 FY17 Y-o-Y 9M FY18 9M FY17 Y-o-Y Net Revenue from Operations 305.1 221.8 38% 802.8 583.2 38% Cost of Material Consumed 69.2 54.3 186.2 149.6 Purchase of Stock-in-Trade 185.7 120.2 475.6 311.3 Change in Inventories -4.0 -0.7
Slide 37: Balance Sheet as on 30th September, 2017
Balance Sheet as on 30th September, 2017* Particulars (Rs. Crs.) 30-Sept-2017 Particulars (Rs. Crs.) 30-Sept-2017 Equity Share Capital 23.4 Non Current assets Other Equity 98.3 Property, Plant and Equipment's 68.5 Total Equity 121.7 Financial Assets 0.0 Financial Liabilities Investments 4.1 Borrowin
Slide 38: Consistent Financial Performance
Consistent Financial Performance Revenue - Steel business Total Revenue Segmental Breakup - FY13 In Rs. Crs +66% 31% 678.5 +51% 825.5 409.0 69% FY13 FY17 547.5 Steel Paints Revenue - Paint business Segmental Breakup - FY17 +4% 22% 181.8 188.6 78% FY13 FY17 FY13 FY17 Steel Paints 38
Slide 39: Consistent Financial Performance
Consistent Financial Performance EBIT PAT EBIT - Steel business +60% +124% +104% 34.5 28.1 9.8 17.6 15.4 FY13 FY17 FY13 FY17 PBT RoCE (%) – Steel business 4.8 +120% 28.7% 14.5 16.3% 6.6 FY13 FY17 FY13 FY17 FY13 FY17 In Rs. Crs 39
Slide 40: Consistent Financial Performance
Consistent Financial Performance Fixed Asset Turnover (X) ROCE (%) ROE (%) FY13 11.1 FY13 10.6% FY13 5.5% FY14 18.6 FY14 11.4% FY14 6.3% FY15 20.3 FY15 12.5% FY15 8.1% FY16 18.0 FY16 12.6% FY16 7.7% FY17 19.0 FY17 12.7% FY17 8.5% 40
Slide 41: Profit & Loss
Profit & Loss Particular (Rs. Crs) FY17 FY16 FY15 FY14 FY13 Revenue 825.5 841.2 968.0 921.7 547.5 Total Raw Material Cost 637.9 667.8 821.9 793.8 427.8 Employee Expenses 34.1 30.9 24.1 21.9 21.2 Other Expenses 120.3 110.9 92.1 81.0 77.5 Other Income 0.4 0.5 0.4 0.4 0.9 Depreciation 5.4 5.2 5.4 4.7 4
Slide 42: Balance Sheet
Balance Sheet Particular (Rs. Crs) FY17 FY16 Particular (Rs. Crs) FY17 FY16 Total Shareholders Fund 115.5 105.7 Total Non Current Assets 52.2 56.6 Share Capital 23.4 23.4 Fixed Assets 43.4 46.8 Reserves & Surplus 92.1 82.3 Non Current Investments 3.4 3.4 Total Non Current Liabilities 15.3 15.7 Long
Slide 43: For further Information, please contact
For further Information, please contact : CIN: L27101DL1994PLC134282 CIN: U74140MH2010PTC204285 Mr. Harish Kumar Agarwal Ms. Payal Dave / Mr. Deven Dhruva Group CFO & Head-Legal 022 61146679 / +91 9833373300 hkagarwal@kamdhenulimited.com payal.dave@sgapl.net / deven.dhruva@sgapl.net www.kamdhenulimi