Interarch Building Solutions Ltd · NSE:INTERARCH
Interarch Building Solutions — Interarch Building Products — Q1 FY25 Earnings Presentation
38 slides from Interarch Building Solutions's earnings presentation, Sep 16, 2024
Slide 1: Exchange intimation letter for revised presentation
Date: 16/09/2024 Listing Compliance Department To, To, National Stock Exchange of India Ltd., BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E), Dalal Street Mumbai – 400 051 Mumbai- 400001 NSE Scrip Symbol: INTERARCH BSE Scrip Code 544232 Subject:
Slide 2: Interarch Building Products Limited
INTERARCH BUILDING PRODUCTS LIMITED September 2024 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Interarch Building Products Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Contents
Contents 1 Performance Highlights – Q1FY25 04 2 Company Overview 12 3 Industry Overview 16 4 Key Strengths 23 5 Growth Strategies 35 3
Slide 5: Performance Highlights Q1FY25
Performance Highlights Q1FY25 4
Slide 6: MD's Commentary
MD’s Commentary “The quarter represents a significant milestone for our company with its successful listing on the stock exchanges. We would like to express heartfelt gratitude to all stakeholders for their continuous support. Despite uncertain weather conditions and elections, we are pleased to rep
Slide 7: Listed on NSE and BSE on 26th August 2024
Listed on NSE and BSE on 26th August 2024 • Raised Rs 600 crores through IPO o Fresh Issue of Rs 200 crores o Offer for sale of Rs 396 crores • Utilization of Net proceeds from Fresh issue of shares will be for o Financing the capital expenditure towards setting up the Project o Financing the capita
Slide 8: Proposed Utilisation of IPO Proceeds
Proposed Utilisation of IPO Proceeds Amount to be funded Proposed Utilization in Proposed Utilization in Particulars (Rs. Cr) from Net Proceeds* FY25 FY26 Financing the capital expenditure towards setting up the Project 58.5 53.6 5.0 Financing the capital expenditure towards upNegradation of the Kic
Slide 9: Q1FY25 Performance Highlights
Q1FY25 Performance Highlights Revenue (Rs in Crs) Revenue Breakup – End User Industry (%) Margin Industrial/Manufacturing Building +3% 303 Infrastructure Others 294 0% 2% 0% 2% 20% 36% 77% 62% Q1FY24 Q1FY25 Q1FY24 Q1FY25 EBITDA (Rs in Crs) & EBITDA Margins (%) PAT (Rs in Crs) & PAT Margins (%) 8.6%
Slide 10: New Order wins year till date
New Order wins year till date Order Wins (Rs in Crs) Major Customers – End User Industry In Q1FY25 341 Renewable Auto Railway Post Q1FY25 (Till 14th September, 2024) 293 EV Defense Food Infra Industrial Total Order Wins 634 3% 3% 5% 3% Order wins from Key Customers 11% Reliance Industries Brit Logis
Slide 11: Recent Developments
Recent Developments Recently Inaugurated Phase 1 of its 5th State-of-the-Art PEB Manufacturing plant (4th fully integrated unit) in Athivaram, Andhra Pradesh Phase 1 – Commissioned on September 04, 2024 • Phase 1 covers 4 acres out of the 10 acres of the plot and has been built at an investment of R
Slide 12: Quarterly Consolidated Profit & Loss Statement
Quarterly Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q1 FY25 Q1 FY24 YoY Revenue from Operations 303.4 293.7 3.3% Cost of Goods Solds 191.0 184.3 Employee Cost 31.7 26.2 Other Expenses 53.7 58.0 EBITDA 27.1 25.2 7.4% EBITDA Margin 8.9% 8.6% 30 bps Other Income 3.0 3.1 Depreciation
Slide 13: Company Overview
Company Overview 12
Slide 14: Company Evolution
Company Evolution 2020-2023 2021: Expansion of Kiccha 1993 2005 Facility Introduced brand TRACDEK® for Set up of Pantnagar 2008 metal roofing and cladding Manufacturing Facility Set up of Kiccha Manufacturing 2023: Revenue from operations systems Facility cross Rs 1,000 crores(1) 1983 2000 2007 2009
Slide 15: Company Overview
Company Overview One of the leading turnkey pre-engineered steel construction solutions providers in India with integrated facilities for design and engineering, manufacturing, on-site project management capabilities for the installation and erection of pre-engineered steel buildings ("PEB") 2nd 3rd
Slide 16: Business Overview
Business Overview PEB Contracts PEB Sales 1. Metal Ceilings & Roofing ✓ TRAC® – Metal suspended ceiling systems ✓ TRACDEK® – Metal roofing & cladding systems ✓ TRACDEK® Bold Rib – Permanent / metal decking (lost shuttering) over steel framing Complete PEBs on a turn-key basis with on-site project ma
Slide 17: Industry Overview
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Slide 18: Global Pre-engineered Steel Buildings Market – Overview
Global Pre-engineered Steel Buildings Market – Overview Global Pre-engineered Steel Buildings Market USD Bn 32-34 Key Growth Drivers The industrial and commercial sector, the mainstay of the global PEBs market, is 22-24 expected to drive demand for pre-engineered steel buildings 19-21 15-17 Increasi
Slide 19: Indian Construction Sector – Overview
Indian Construction Sector – Overview Breakup of the Domestic Construction Sector Growth Drivers Infrastructure Building Construction Industrial/ Manufacturing INR 74-76 Tn 5-7% 24-26% INR ~46-48 Tn 8% Increased Smart City Growing Investments Increased Spending Favourable Urbanisation Mission in Ren
Slide 20: India's Pre-engineered Steel Buildings Market – Overview
India’s Pre-engineered Steel Buildings Market – Overview Pre-engineered Steel Building Industry in India Organised Sector Remains Superior to Unorganised Sector INR ~130 Bn INR ~195 Bn INR ~330-340 Bn 6.0-7.0% CAGR: 11-14% CAGR: 10-14% 7.5-8.5% 8.0-9.0% 40- 45% FY24E Other Top 6 Players 27.0-30.0% C
Slide 21: India's Pre-engineered Steel Buildings Market – Growth Drivers
India’s Pre-engineered Steel Buildings Market – Growth Drivers Low share of pre-engineered construction in overall construction indicates high growth potential Low steel consumption in India Share of pre-engineered construction in overall construction Apparent steel use (Kg per capita) for CY23 628
Slide 22: Pre-engineered Steel Buildings – Advantages and Cost Savings
Pre-engineered Steel Buildings – Advantages and Cost Savings Advantages of Pre-engineered Steel Buildings over Traditional Construction Cost Saving ✓ Cost-saving advantages of PEB increases as the span of the structure increases till an inflection TECHNICAL DIFFICULTIES AND SHORTAGE OF LABOUR IN TRA
Slide 23: Comparison Between RCC and Pre-engineered Steel Construction
Comparison Between RCC and Pre-engineered Steel Construction Parameter Traditional RCC Construction Pre-engineered Steel Construction MAJOR COMPONENT ✓ Concrete and reinforced steel bars ✓ Steel and metal accessories RAW MATERIALS USED ✓ Cement, steel, sand, bricks, etc ✓ Steel, anchors, channels, c
Slide 24: Key Strengths
Key Strengths 23
Slide 25: Key Strengths
Key Strengths Significantly integrated manufacturing Market position and established brand operations, backed by in-house design presence in the growing pre-engineered and engineering, on-site project steel building industry in India management and sales and marketing capabilities Demonstrated track
Slide 26: Market Position and Established Brand Presence (1/2)
Market Position and Established Brand Presence in The Growing Pre-engineered Steel Building Industry in India (1/2) 2nd 3rd 6.5% 677 30+ Years Largest aggregate installed Ranked among integrated Market share among Completed execution of Presence in the PEB capacity of 161,000 MTPA PEB players in Ind
Slide 27: Market Position and Established Brand Presence (2/2)
Market Position and Established Brand Presence in The Growing Pre-engineered Steel Building Industry in India (2/2) The PEB Market in India – Segments Growing Shift towards the Organised Sector CAGR for CAGR for FY24 FY19-FY24E FY24E-FY29P Others Rs ~130 Bn Rs ~195 Bn Rs ~330-340 Bn 15-20% 6.0-7.0%
Slide 28: Significantly Integrated Manufacturing Operations
Significantly Integrated Manufacturing Operations, Backed by In-house Design and Engineering, On-site Project Management and Sales & Marketing Capabilities Manufacturing Facilities Design & Engineering Centers Installed Utilizable Pantnagar (Uttarakhand) Set up Facility capacity capacity Year Kichha
Slide 29: Demonstrated Track Record of Execution
Demonstrated Track Record of Execution Backed by On-site Project Management Capabilities Extensive Track Record of Delivering Significant / Complex Projects across India AIRPORT At Delhi AIR CONDITIONING MANUFACTURING UNIT PAINTS MANUFACTURING At Sri City Andhra Pradesh In Haryana, Punjab, Karnataka
Slide 30: Experienced & Qualified Promoters and Management Team
Experienced & Qualified Promoters and Management Team Promoters ARVIND NANDA GAUTAM SURI VIRAJ NANDA ISHAAN SURI Managing Director Whole-time Director Non-Executive Director Non-Executive Director ▪ Responsible for overall business decision- ▪ Responsible for critical technical business ▪ Bachelors’
Slide 31: Diverse Customer Base and Long-standing Relationships
Diverse Customer Base and Long-standing Relationships with Key Customers Revenue from Operations by End-use Sectors Repeat Orders as a % of Revenue from Operations(1) Revenue from Top 5 Customer Groups Diverse Customer Groups featuring in Repeat Orders 26% 20% 19% 41% 1,293 1% FY22 1,124 2% 1% 835 2
Slide 32: Demonstrated Financial Performance and A Robust Order Book
Demonstrated Financial Performance and A Robust Order Book Revenue from Operations (in Rs crs) & Growth Net Debt (Rs crs) & Net Debt / EBITDA Ratio Net Debt Net Debt / EBITDA 1,293 1,124 (32) (41) (48) 835 (0.4x) (0.4x) (1.0x) FY22 FY23 FY24 FY22 FY23 FY24 EBITDA (Rs crs) & EBITDA Margin RoCE & RoE
Slide 33: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs in Crs) FY24 FY23 FY22 Revenue from Operations 1,293.3 1,123.9 834.9 Cost of Goods Solds 823.8 732.5 564.8 Employee Cost 119.0 93.4 89.2 Other Expenses 237.6 191.7 148.0 EBITDA 113.0 106.4 32.9 EBITDA Margin 8.7% 9.5% 3.9% Other Income 13.0 12.5 5
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. in Crs) FY24 FY23 FY22 Equity & Liabilities (Rs. in Crs) FY24 FY23 FY22 Non - Current Assets 240.4 211.3 190.2 Total Equity 444.6 399.3 318.3 Property Plant & Equipment 106.4 103.9 99.0 Share Capital 14.4 15.0 15.0 Capital work-in-progess 12.7 0.0 0.0 Other Equ
Slide 35: Cash Flow Statement
Cash Flow Statement Particulars (Rs in Crs) FY24 FY23 FY22 Profit Before Tax 115.9 109.0 22.60 Adjustments for: Non -Cash Items / Other Investment or Financial Items 1.0 0.5 17.6 Operating profit before working capital changes 116.9 109.5 40.20 Changes in working capital -5.0 -58.4 -6.0 Cash generat
Slide 36: Growth Strategies
Growth Strategies 35
Slide 37: Growth Strategies
Growth Strategies Continue to invest in our technology Capitalize on industry tailwinds, Expanding geographical footprint to infrastructure to enhance in-house including through proposed expansion Expand customer base and increase cater to strategic markets in India and design and engineering and an
Slide 38: Thank You
Thank You Interarch Building Products Ltd. CIN – L45201DL1983PLC017029 Mr. Pushpendra Kumar Bansal Email ID: pushpendra.bansal@interarchbuildings.com www.interarchbuildings.com Investor Relations Advisors : http://www.sgapl.net/images/sgapl_logo.jpg Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH
Interarch Building Products — Q1 FY25 Earnings Presentation on 6ix