Hariom Pipe Industries Ltd. · NSE:HARIOMPIPE
Hariom Pipe Industries — Investor Presentation (December 2023)
23 slides from Hariom Pipe Industries's investor presentation, December 2023
Slide 1: Hariom Pipe Industries Limited Investor Presentation
HARIOM PIPE INDUSTRIES LIMITED INVESTOR PRESENTATION December 2023
Slide 2: Vision, Mission and Goal
Vision, Mission and Goal VISION GOAL To be a benchmark in steel pipe industry To reach Rs 2,500 crore for high quality products, customer trust and inclusive growth in Revenue by FY26 without compromising on profitability MISSION To grow sustainably through geographical and value-added product portf
Slide 3: What defines us
What defines us A legacy built over 50+ years From our roots in steel pipes & tubes trading to becoming a producer of premium steel pipes and tubes products, we are defined by our…. • Deep understanding of customer requirements, geography-wise • Persistence & strength in backward integration • Pench
Slide 4: Where we are today
Where we are today Steel pipe industry is growing – And we are in a strong position • One of the most integrated producers of steel pipes with a growing basket of value-added products • Cold-Rolled and Galvanized steel pipe products to enhance our product portfolio and fill gaps in demand-supply • E
Slide 5: 6 strategic pillars underpin our future performance
How we are creating value 6 strategic pillars underpin our future performance 1 2 3 Lead in value- Focused Superior added products expansion customer (Backward, Forward experience and Geographical) 4 5 6 Inclusive Focus on Generating free stakeholder profitability cash flow management 5
Slide 6: Building the Hariom brand as a synonym for high-quality
Pillar 1 – Lead in value-added products Building the Hariom brand as a synonym for high-quality Scaffolding Steel structures Greenhouse frameworks Hoarding structures Auto components Steel furniture 6
Slide 7: Building the Hariom brand as a synonym for high-quality
Pillar 1 – Lead in value-added products Building the Hariom brand as a synonym for high-quality Commercial pipes HVAC ducts Bus body Fencing Staircase Metro stations Crash guards 7
Slide 8: Plan to expand across India while increasing production
Pillar 2 – Focused expansion Plan to expand across India while increasing production Expanded capacity to 701kt, 2.3x since FY22 • GP/GC capacity of 300kt • MS Pipe capacity of 132kt Building a professional Building a pan-India dealer network leadership team to drive • Strengthening presence in Sout
Slide 9: Modern facilities driving sustainable production
Pillar 2 – Focused expansion Modern facilities driving sustainable production Pickling line CGL Slitting Line GP Stockyard 9
Slide 10: Evolving the customer experience
Pillar 3 – Superior Customer experience Evolving the customer experience One stop shop, Meet stringent Loyalty aimed at Enabled by product basket quality standards building and ERP systems for real-time approach of our industries retaining dealers order intimation and billing Comprehensive steel Aut
Slide 11: Aiming for inclusive growth
Pillar 4 – Inclusive stakeholder management Aiming for inclusive growth Customers Dealers Employees • New products • Distribution • Upskilling through • Wider dealer network opportunity training and • Quality standards • Cost-effective solutions development • 24x7 availability • Channel financing •
Slide 12: Cohesive plan to increase EBITDA margin
Pillar 5 – Focus on profitability Cohesive plan to increase EBITDA margin Key levers: Optimised operations Value added Recycled Steel products • Fully integrated MS Billets Hot Rolled MS Pipes and Scaffolding production of MS Strips Tubes Sponge Iron Pipes Iron Ore* Galvanised Coil Galvanised Pipe •
Slide 13: CR Tandem Mill as example of profit focus in the core
Pillar 5 – Profit Focus CR Tandem Mill as example of profit focus in the core • The CR mill at the ISP at Mahabubnagar, TS is a tandem mill, wherein 3 cold rolling processes reduce thickness variation • This process results in high- quality products • Produces pipes of thickness as low as 0.4mm, whi
Slide 14: Operating Cash Flow expected to improve progressively
Pillar 6 – Generating free cash flow Operating Cash Flow expected to improve progressively Key levers to achieve higher cash flows Ramp-up Establish Rationalise Improve Prudent Positive Production Market for RM and FG EBITDA Capital OCF and FCF of new units GP/GC and inventories margin allocation by
Slide 15: Highly focused management driven towards value creation
Management Highly focused management driven towards value creation Key Management Over 50+ years of experience in steel pipes industry Young management team A single-minded focus on business Rupesh Kumar Gupta Shailesh Gupta Managing Director Whole Time Director Mr Rupesh Gupta has led the Mr Shaile
Slide 16: Sales and profit margin are expected to grow significantly
Projecting strong financial profile Sales and profit margin are expected to grow significantly • Key drivers include Sales (MT) Blended EBITDA per MT higher value-added 1,09,085 product sales and 8,929 89,723 supply chain 7,585 7,357 efficiencies 65,845 60,740 5,329 5,759 • Economies of scale and ge
Slide 17: On track to achieve our FY26 goal
Projecting strong financial profile On track to achieve our FY26 goal • Enhanced capacity EBITDA (Rs. Crore) for rapid growth Net Reveue (Rs. Crore) CAGR: 41% 644.46 CAGR: 36% 82.74 • Expanded our 544.32 66.01 portfolio and 58.79 footprint 433.28 254.56 34.98 • Emphasis on cost 161.15 23.92 efficien
Slide 18: Safe harbour / Disclaimer
Safe harbour / Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by “Hariom Pipe Industries Limited” (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 19: Thank You
Thank You Amitabha Bhattacharya HARIOM PIPE INDUSTRIES LIMITED cfo@hariompipes.com
Slide 20: Appendix
Appendix
Slide 21: Progressively adding capacity of value-added products
Key Milestones Progressively adding capacity of value-added products 2020 2022 l Acquisition of Sponge Iron Unit situated at Anantapur, A.P., with a capacity of 36,000 MTPA to achieve cost efficiency and better control of the entire value chain l Increased Scaffolding Unit capacity to 5000 MTPA 2019
Slide 22: Modern facilities driving efficient and sustainable production
Manufacturing Modern facilities driving efficient and sustainable production Location Products and Installed Capacity Capacity in FY22, Capacity in FY23, Current Capacity, Product MTPA MTPA MTPA M.S. Billets 95,832 1,04,232 1,04,232 HR Strips 84,000 1,24,000 1,24,000 Mahabubnagar, Telangana Integrat
Slide 23: Operational & financial performance
Q2 FY24 summary Operational & financial performance Q2FY24 Q2FY23 % Chg YoY Q1FY24 % Chg QoQ H1 FY24 H1 FY23 % Chg YoY Net Production, MT 56,552 25,565 121.2 43,553 29.8 1,00,105 50,117 99.7 Delivered highest-ever Sales, MT 50,435 21,528 134.3 39,289 28.4 89,723 45,668 96.5 production and sales Shar
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