R M Drip And Sprinklers Systems Limited · NSE:RMDRIP
R M Drip And Sprinklers Systems — H1 FY2019-20 Earnings Presentation
27 slides from R M Drip And Sprinklers Systems's earnings presentation, Dec 18, 2019
Slide 1: Investor Presentation cover letter to NSE
R M DRIP AND SPRINKLERS SYSTEMS LIMITED (Formerly Known as R M DRIP AND SPRINKLERS SYSTEMS PRIVATE LIMITED) E-mail ID - rmdrip@gmail.com Website - www.rmdrip.com, Phone - +91 2551 - 218919 CIN - U27200MH2004PLC150101 & Sprinkter Systems Ltd. ed Date: 18" December, 2019 To, National Stock Exchange of
Slide 2: Results & Strategy Presentation December 2019
RM DRIP & SPRINKLER SYSTEMS LTD Results & Strategy Presentation December, 2019
Slide 3: Disclosure
DISCLOSURE This presentation has been made by Valuewise IR in consultation with RM Drip & Sprinkler Systems Ltd. This or any other documentation or information (or any part thereof) provided should not be deemed to constitute an offer. No representation or warranty, express or implied is made as to,
Slide 4: Management Team
MANAGEMENT Team MR. VIJAY H. KSHIRSAGAR (CHAIRMAN) Chairman has experience as a Banker, Teacher, an active Social Worker. He moved to Nashik and ventured initially into trading in industrial goods & later ventured into manufacturing activity / industry. With a strong desire to contribute to the fiel
Slide 5: Management Team
MANAGEMENT Team MR. NIVRUTTI P. KEDAR (VICE CHAIRMAN) The man with a vision and a strong desire is a graduate in Agriculture Sciences, from Maharashtra. Belonging to a farming family, he started his career in agriculture firms. He is also a Board Member in different agriculture based industries. In
Slide 6: Born To Serve The Farming Community
MISSION Statement MANUFACTURE THE WORLD’S BEST QUALITY IRRIGATION PRODUCTS AT COST EFFECTIVE PRICES SHAREHOLDER BE A PROMOTE WEALTH LEADER IN INTELLIGENT USE MAXIMISATION THE INDIAN OF WATER & CUSTOMER MICRO SATISFACTION IRRIGATION SYSTEMS AIM TO BE A RESPECTED EMPLOYER COMMUNITY LEADER 5 Born To Se
Slide 7: What is Micro Irrigation Systems
WHAT IS MICRO IRRIGATION SYSTEMS Micro IRRIGATION Is a coordinated water management system where in water is made to flow through a network of devices called “EMITTERS” or “DRIPPERS” at selected spacing to deliver water in discrete drops, slowly to the soil near the root zone of the plants to keep t
Slide 8: Advantages to Farmers
ADVANTAGS TO FARMERS Efficient Works in Reduced Storage Low Water Rain Pressure Dependence Field Versatile Customisation uses Increases Uniform economical Discharge standard of Farmers Water Saving Targeted Fertilisation Yield Reduced Increase Manpower
Slide 9: Yield Increase Proven Fact
YIELD INCREASE Proven Fact Field Crops Conventional Use Vs Drip Fertilization CROP YIELD KG (PER ACRE) WATER USE (PER ACRE) Surface Drip % More Surface Drip Saving % Sugarcane 30000 70000 133% 9800 4960 49% Cotton 904 1700 88% 3600 1680 53% Onion 14525 22500 55% 2080 1120 46% Patato 6060 10880 80% 2
Slide 10: We Are Transforming
WE ARE TRANSFORMING Our Journey Transforming Target 2022 9
Slide 11: Our Journey
OUR JOURNEY FY04 FY10 FY16 FY18 FY19 FY21 RM Drip Received Micro irrigation Converted Management Registration Incorporated License by supply in the state from Pvt Ltd Focus on in 2 new Bureau of of Gujarat & to Public Ltd restructuring states will be Indian Karnataka. & IPO Company added ie. Standar
Slide 12: Pride in Our Technology
PRIDE IN OUR TECHNOLOGY Technology Tie-up With Global Firms Factory at Sinner, Nasik spread over 4 acres Four Lines of Micro Irrigation Systems Total Capacity of 2400 mt per annum Spacious Storage Area
Slide 13: Major Revenue Contributors
MAJOR REVENUE CONTRIBUTORS Flat Drip Line New & Latest Competitively Approved in 7 40% of Revenues technology priced but States & from Israel, most Gaining Launched in profitable Market share FY17 product Round Drip Line Preferred in 25% of Revenues Competitively Product in 7 low tech priced but
Slide 14: Opportunities
OPPORTUNITIES GOING PAN INDIA EXPORTS Currently registrations are in 7 Targeting US & African Markets. States; major revenues come from Maharashtra (55% of Trial samples already sent for revenues) & Karnataka (35% of customised products, revenues). Products like Sprinkles, Nozzles, New Registration
Slide 15: Pradhan Mantri Krishi Sinchayee Yojna
PRADHAN MANTRI Krishi Sinchayee Yojna Launched in July, 2015, with outlay of Rs.50,000 crores for the period 2015-16 to 2019-20 “to achieve convergence of investment in irrigation at the field level, expand cultivable area under assured irrigation.” Only about 20 percent of rainfall is actually
Slide 16: Challenges
CHALLENGES • Will be a big positive if only the economically backward farmers are Subsidy covered • To offset this we are looking to International markets • Mechanism to implement payments to Delayed Payments MSME • We are focusing on increasing non-credit sales Pan India • Will reduce time taken of
Slide 17: Transforming
TRANSFORMING Current Status Future Outlook Currently capacity 2400 Favourable Entry barrier New States targeted mtpa ; Utilisation is 60% Government 2-3 years Regulation approval Current Capacity sufficient to process Export Market support Sales of Rs.100 crores RM DRIP Integrated Project Sales Exis
Slide 18: Guidance & Targets
GUIDANCE & TARGETS Rs. Crores FY18-19 Est.FY19-20 Est.FY20-21 Turnover 22.3 30 60 PAT -5.4 1.2 3 EBIDTA improving; increasing efficiency in State RM Drip Registration marketing Maharashtra FY11 Raw Material prices softening Madhya Pradesh FY16 PAT margin improving Gujarat FY17 Debt is being
Slide 19: On Track In Current Year
ON TRACK In Current Year REVENUE (Rs.Crores) EBIDTA (Rs.Crores) 50 42.9 6 5.07 40 5 3.85 3.74 28.7 30.0 4 30 23.1 3 20 2 1.36 11.8 1 10 0 -1 FY16 FY17 FY18 FY19 FY20E 0 -2 FY16 FY17 FY18 FY19 FY20E -3 (2.62) -4 PAT (Rs.Crores) RONW% 2 1.57 40% 35% 1.36 1.2 1 0.1 20% 10% 10% 0 4% FY16 FY17 FY18 FY19
Slide 20: Social Responsibility
SOCIAL Responsibility Assist farmers to achieve best practices and cost reduction Working closely with more than thousand farmers in and near Nashik. Providing products at substantially lower rates vs other reputed brands Leads group of farmers towards awareness of irrigation advantages Arra
Slide 21: Awards
AWARDS Awarded the SME Business Awards in 2017 for Out Performance in the Business 17
Slide 22: H1 FY19-20 Result Highlights
H1 FY19-20 Result Highlights (Rs.Crores) Particulars H1FY20 H1FY19 YoY % Gr FY19 FY18 YoY % Gr Revenue from Operations 7.35 7.02 5% 22.39 42.69 -47% Cost of Materials 3.73 5.77 15.19 23.32 Changes in Inventory -0.35 -1.62 2.05 -0.27 Employee cost 1.09 1.27 2.61 2.54 Other Expenses 1.73 2.98 5.87 12.
Slide 23: P&L Highlights
P&L Highlights (Rs.Crores) Particulars (Rs.Crores) FY19 FY18 FY17 FY16 INCOME Revenue from Operations 22.29 42.63 28.34 11.76 Other income 0.84 0.27 0.38 0.04 TOTAL REVENUE 23.13 42.90 28.72 11.80 EXPENSES Cost of materials consumed 15.19 23.32 17.09 7.94 Purchase of stock in trade 0.00 0.00 0.00 0.
Slide 24: Balance Sheet Highlights
BALANCE Sheet highlights (Rs.Crores) Particulars (Rs.Crores) FY19 FY18 FY17 FY16 Equity & Liabilities Shareholders’ funds a. Share capital 6.69 6.69 2.38 1.40 b. Reserves & surplus 4.05 9.49 1.46 1.07 Total Shareholders fund 10.74 16.18 3.84 2.47 Non-current liabilities a. Long-term borrowings 3.81
Slide 25: Cash Flow Highlights
CASH FLOW Highlights (Rs.Crores) Particulars As at March 31, 2017 As at March 31, 2018 As at March 31, 2019 Cash flow from operating activities: Net profit before tax & Interest 1.94 227.24 -542.41 Depreciation & Amortization 0.93 155.22 146.94 Provision for Gratuity 0.05 7.88 -3.78 Interest, Divide
Slide 26: Market Information
MARKET EQUITYInformation Highlights Rs.97.40 was the Highest price of shares on 09.05.2018 Platform Market Price as on 16.12.19 NSE SME Rs.18.25 Market Capitalisation Total No of Shares As on 16.12.19 0.67 Crore Rs.12.21 Crores Promoters Holding Lot Size 70 % 2000 Shares Public Holding Total No of F
Slide 27: Thank You
For any Queries, please contact: Thank You Company Secretary Ms.Anita Pagare ; cs@rmdrip.com Investor Relations Vidit.gupta@valuewiseir.com +91 9082848380 For more details please refer to our website www.rmdrip.com RMDripSprinkle1
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