Venus Pipes & Tubes Ltd. · NSE:VENUSPIPES
Venus Pipes & Tubes — Q3 FY23 Earnings Presentation
39 slides from Venus Pipes & Tubes's earnings presentation, January 2023
Slide 1: Venus Pipes & Tubes Limited Investor Presentation
VENUS PIPES & TUBES LIMITED Investor Presentation January 2023
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes 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
Slide 3: Q3 & 9M FY23 Financial & Operational Highlights
Q3 & 9M FY23 FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 4: Key Highlights during the quarter
Key Highlights during the quarter On Capex Impetus to the Industry • Our capex for additional manufacturing capacities of Seamless pipes • During the quarter, the Ministry of Finance approved Anti Dumping (along with backward integration) & welded pipes is on track and is Duty (ADD) on seamless stai
Slide 5: Geographical Revenue Split – Q3 & 9MFY23
Geographical Revenue Split – Q3 & 9MFY23 Direct Domestic Sales (in Rs cr) Export Sales (in Rs cr) Sales to Stockists (in Rs cr) ✓ Direct Domestic sales (to brands) grew by 72% YoY in +107% -36% -12% Q3FY23 and 107% YoY in 241.5 26.4 133.9 9MFY23. 117.6 ✓ The reason for growth in selling -90% 17.0 di
Slide 6: State wise Revenue Split – Q3 & 9MFY23
State wise Revenue Split – Q3 & 9MFY23 12.6% 9.4% 16.5% 20.4% 4.7% 3.8% 39.8% 36.9% 11.2% Q3FY22 Q3FY23 9MFY22 10.1% 9MFY23 55.2% 55.7% 28.5% 30.0% 32.5% 32.6% Gujarat Maharashtra Telengana Others ✓ Following the strategy to diversify across states, our share from Maharashtra and Telangana has incre
Slide 7: Product Revenue Split – Q3 & 9MFY23
Product Revenue Split – Q3 & 9MFY23 Seamless Sales (in Rs cr) Welded Sales (in Rs cr) +77% +23% 149.0 198.5 ✓ Sales for seamless pipes up by 161.9 77% YoY in 9MFY23 and 82% YoY in Q3FY23. +82% 84.4 -3% ✓ This segment has better margins 61.3 63.3 61.7 as compared to other categories 33.7 and we aim f
Slide 8: Key Financials – Q3FY23
Key Financials – Q3FY23 Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +36% +34% +30% 376.1 47.5 30.8 ✓ Revenue for Q3FY23 stood at Rs. 136 crs as compared to Rs. 276.8 35.5 23.6 106 crs in Q3FY22, a growth of 28%. +28% +37% +42% ✓ Revenue for 9MFY23 stood at 136.1 17.5 11.3 106.2 12.8 8.0 Rs. 376
Slide 9: Profit & Loss – Q3 & 9MFY23
Profit & Loss – Q3 & 9MFY23 Profit and Loss (in ₹ Cr) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 136.1 106.2 28.1% 126.4 7.7% 376.1 276.8 35.9% Cost of Goods Sold 109.2 86.4 101.3 301.0 226.5 Gross Profit 26.9 19.8 35.7% 25.1 7.2% 75.1 50.3 49.3% Gross Profit Margins (%)
Slide 10: Management Commentary
Management Commentary Commenting on the Q3 & 9MFY23 performance of the company Mr. Arun Kothari, Managing Director for Venus Pipes & Tubes Limited Said, “We are proud to report a growth of 28% in our revenues and 42% increase in bottom-line in Q3FY23 on a YoY basis. During the quarter, the company h
Slide 11: Venus Pipes & Tubes Limited
Venus Pipes & Tubes Limited Making ourselves as first reference and preference in stainless steel pipes 58 105% Vision and tubes manufacturer Clientele base out of PAT CAGR Fortune 500 Companies from FY19 to FY22 in India To provide quality and flawless service for dealing with customer / Diversifie
Slide 12: Product Portfolio & Applications
Product Portfolio & Applications Products manufactured are as per the International Standards to cater both Domestic & International markets Stainless Steel High Precision and Stainless Steel Hydraulic and Stainless Steel Seamless Pipes Stainless Steel Welded Pipes Stainless Steel Box Pipes Heat Exc
Slide 13: Diversified End Use
Multiple End User Industry Diversified End Use Chemical Engineering Fertilisers Pharmaceutical Power Food Processing Paper Oil & Gas Aerospace 13
Slide 14: State of the Art Infrastructure
State of the Art Infrastructure… Strategically located Manufacturing facility at Dhaneti (Kutch) within proximity of Kandla & Mudra ports for enabling imports and exports Facility on a land admeasuring 82,962 Sq. Mt. Surplus land of 60,562 Sq. Mt. available for proposed capacity expansion/integratio
Slide 15: Stringent Quality Inspection & Testing
…with Stringent Quality Inspection & Testing Rigorous testing system for our products to Ensure Finest Quality is delivered for our products Tensile Test Hydro-static Test Quality Tests Hardness Test Eddy Current Test Non-Destructive Tests Destructive Tests IGC Test Air under Water Test Reverse-bend
Slide 16: Marquee Clientele
Marquee Clientele @ AARTI INDUSTRIES LIMITED Ns Navin Fluorine International Limited adani IsGec HEAVY ENGINEERING LTD, OP J ajanta pharma IZ Coromandel = FUTURE POSITIVE MADRAS FERTILIZERS LIMITED e Taste of India GC Dalmia Bharat Sugar AS ITC Limited <p TATA TATA PROJECTS asianpaints (Mi ENGINEERS
Slide 17: New Customers in FY22
New Customers in FY22 We got the privilege to add more feathers in our cap in FY22 by acquiring clients from varied sectors ▪ Toyo Engineering India Private Ltd - Toyo Engineering India P Ltd, ▪ Chemical: Asian Paint, Hikal Ltd, Navin fluorine, Gujarat one of the leading EPC consultants for Oil & ga
Slide 18: Awards & Certifications
Awards & Certifications Calendar Years Certifications & Accreditations Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 9001: 2015, ISO 2016 14001:2015 requirements 2017 Our Company has been verified and recognized as m
Slide 19: Experienced Board of Directors
Experienced Board of Directors Jayantiram M Choudhary Arun Kothari Megharam S Choudhary Dhruv M Patel Chairman and Non-Ex Director Managing Director Whole Time Director Whole Time Director Associated with the Company since its Associated with the Company since 2021 as Associated with our Company sin
Slide 20: Strong Management Team
Strong Management Team Jayantiram M Choudhary Arun Kothari Megharam S Choudhary Dhruv M Patel Chairman and Non-Ex Director Managing Director Whole Time Director Whole Time Director Associated with the Company since Associated with the Company since Associated with our Company Associated with the Com
Slide 21: Delivering Value to Stakeholders
Delivering Value to Stakeholders May 2022 ✓ Listing of Venus Pipes & Tubes Limited ✓ Listing done on BSE & NSE ✓ Fresh Issue of Equity shares aggregating to ₹ 165.4 Cr. ✓ Objects of the Issue : 1. Financing the project cost towards • Capacity expansion • Technological upgradation • Cost optimization
Slide 22: Industry Outlook
INDUSTRY OUTLOOK
Slide 23: Industry Outlook
Industry Outlook ✓ The Indian stainless-steel sector is the 2nd largest producer (till 2020) and consumer in the world and has a total manufacturing capacity of more than 5 Mn tons of stainless steel annually ✓ India’s per capital stainless steel consumption has increased from 1.2 Kg in 2010 to 2.5
Slide 24: Industry Growth Drivers
Industry Growth Drivers Industry Growth Drivers ✓ Significant demand for Pipes & Tubes specifically from industry like chemical , pharma, engineering etc. ✓ In value terms, the size of Chemical industry is currently estimated at USD 178 Bn which is slate to grow to USD 300 Bn by 2025, growing annual
Slide 25: Strategies to Support Growth
STRATEGIES TO SUPPORT GROWTH
Slide 26: Capacity Expansion & Backward Integration
Capacity Expansion & Backward Integration Capacity Expansion for Finished Products (MTPA) Pursuing Capacity Expansion…. Current Post Expansion Particulars 33,600 Size (mm) Capacity Size (mm) Capacity 3.7x Capacity Expansion Seamless 6 – 114.3 3,600 MTPA 6 – 168.3 9,600 MTPA Welded 6 – 219.3 8,400 MT
Slide 27: Geographical Expansion
Geographical Expansion FY22 Exports in More than 20+ Countries 10.5% ₹ 40.4 crs 4.8% ₹ 14.7 crs 3.4% ₹ 6.0 Crs FY20 Contribution from Export Revenue Leverage our Existing Relationship to Deepen our Presence in Export Markets 27
Slide 28: Improving Efficiency & Brand Positioning
Improving Efficiency & Brand Positioning Creating Brand for “VENUS” thereby increasing the Productivity & Efficiency Enhancement contribution from direct sales for higher realizations Install acid regeneration plant for lower consumption of acids to improve operating margins and better plant product
Slide 29: Historical Financial & Operational Highlights
HISTORICAL FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 30: Product Category Split
Product Category Split Revenue (in ₹ Cr) Volume (in MTS) +26% 221 8,506 ✓ Revenue and Volumes have grown 7,412 +40% 7,146 tremendously across both our Welded 139 segments in a short span of just 4 125 4,222 years 81 ✓ Volume growth for Welded has been at a CAGR of 26% and for Seamless FY19 FY20 FY21
Slide 31: Direct Sales Split
Direct Sales Split Direct Domestic Sales Spilt 3.4% ✓ Revenue contribution from Other 6.8% 5.3% 1.1% industries has increased from 4.3% 3.6% 4.3% 2.9% 1.1% in FY20 to 7.4% in FY22 7.4% 30.7% ✓ Revenue dependency from chemical 44.6% FY20 FY21 49.7% FY22 industry has reduced from 44.6% in 38.8% FY20 t
Slide 32: Sales Split across Geography
Sales Split across Geography ✓ Revenue contribution from exports have increased from 3.4% in FY20 to 10.5% in FY22 Geography 40.4% 37.4% 43.8% 45.8% ✓ Direct domestic sales to end consumers FY20 FY21 FY22 have increased from 37.4% in FY21 to 45.8% 56.3% 57.9% in FY22 4.8% ✓ Revenue contribution from
Slide 33: Key Historical Financials
Key Historical Financials Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +48% 387 49 +105% 32 309 +81% 24 35 178 119 12 8 4 4 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Gross Profit Margin EBITDA Margin PAT Margin 18.6% 12.7% 8.2% 11.2% 7.6% 15.5% 14.4% 11.7% 7.0% 6.5% 3.1% 2.3% F
Slide 34: Profit & Loss
Profit & Loss Profit and Loss (in ₹ Cr) FY22 FY21 FY20 FY19 CAGR Revenue from Operations 386.9 309.3 177.8 118.8 Cost of Goods Sold 315.0 261.5 157.0 101.6 Gross Profit 71.9 47.9 20.8 17.1 61% Gross Profit Margins (%) 18.6% 15.5% 11.7% 14.4% 415 bps Employee Cost 6.2 3.2 2.7 2.5 Other Expenses 16.4
Slide 35: Balance Sheet
Balance Sheet Assets (in ₹ Cr) Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (in ₹ Cr) Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 30.4 20.9 17.5 10.0 Total Equity 128.5 39.9 16.3 12.2 Share Capital 15.2 8.7 8.7 8.7 Property Plant & Equipments 21.3 19.5 12.2 9.8 Reserves & Surplus 113.3 31.2
Slide 36: Cashflow Statement
Cashflow Statement Particulars (in ₹ Cr) FY22 FY21 FY20 FY19 Net Profit Before Tax 42.9 31.0 6.5 4.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 5.6 5.1 4.1 2.6 Operating profit before working capital changes 48.5 36.1 10.6 7.6 Changes in working capital -97.4 -24.0 -7.1 -
Slide 37: Key Ratios
Key Ratios ROE* Debt / Equity Ratio ROCE* 59% 2.6 61% 57% 2.4 44% 31% 30% 30% 25% 0.9 0.5 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 *The company had made Private Placement on 21st October 2021 of ₹ 59.443 cr 37
Slide 38: Key Takeaways
Key Takeaways Capacity Expansion Geographical Expansion Brand Value Proposing to expand our existing manufacturing capacity We intend to leverage our existing We intend to make consistent efforts to for welded pipes/tubes and seamless pipes/tubes for relationships to further deepen our strengthen ou
Slide 39: Thank You
Thank You Venus Pipes & Tubes Limited CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna (President – Accounts & Finance) cs@venuspipes.com Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Ms. Saloni Soni sagar.shroff@sgapl.net / saloni.soni@sgapl.net +91 98205 19303 /