Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q3 FY2019 Earnings Presentation
22 slides from Greenply Industries's earnings presentation, Feb 8, 2019
Slide 1: Cover letter to stock exchanges
Greenply/2018-19 February 8, 2019 The Manager The Manager BSELimited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Floor 25, P. J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Security Code: 526797 Symbol- GREENPLY
Slide 2: Financial Results Presentation Q3 & 9M FY 2019
GREENPLY INDUSTRIES LIMITED FINANCIAL RESULTS PRESENTATION Q3 & 9M FY 2019
Slide 3: Disclaimer
DISCLAIMER • Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those
Slide 4: Contents
CONTENTS • Financial Highlights • Results and Segment details • Segment-wise Performance • Ind AS Impact • Management Commentary • Company Overview • Outlook • Annexure
Slide 5: Financial Highlights – Q3 FY 2019
FINANCIAL HIGHLIGHTS – Q3 FY 2019 • Net Sales up by 15.1% YoY to Rs. 457.85 crores o Plywood revenues up by 18.4% YoY to Rs. 332.72 crores, contributing 72.7% of net sales o MDF revenues up by 7.7% YoY to Rs 123.37 crores, contributing 26.9% to net sales – Unallocated Segment comprising of Wallpaper
Slide 6: Financial Highlights – Q3 FY 2019
FINANCIAL HIGHLIGHTS – Q3 FY 2019 Q3 FY 19 Q3 FY 18 Key ratios (%) Q3 FY19 Q3 FY18 Gross Margin 44.7% 46.5% 15.1% EBITDA Margin 13.1% 16.0% 457.9 NET SALES 397.7 EBIT Margin 8.7% 13.4% 10.7% Net Margin 7.8% 9.1% Ad and promotions / Net 204.9 GROSS PROFIT 185.0 3.2% 1.6% Sales Staff Cost/ Net Sales 1
Slide 7: Financial Highlights – 9M FY 2019
FINANCIAL HIGHLIGHTS – 9M FY 2019 9M FY 19 9M FY 18 Key ratios (%) 9M FY19 9M FY18 Gross Margin 44.9% 47.0% 5.5% EBITDA Margin 11.7% 15.0% 1,298.9 NET SALES 1,231.4 EBIT Margin 7.9% 12.3% 0.6% Net Margin 5.7% 8.4% Ad and promotions / Net Sales 4.1% 3.2% 582.8 GROSS PROFIT 579.3 Staff Cost/ Net Sales
Slide 8: Financial Highlights – B/S Perspective
FINANCIAL HIGHLIGHTS – B/S PERSPECTIVE Balance Sheet Snapshot Dec 31, 2018 Dec 31, 2017 March 31, 2018 (Rs. crore) Net worth 979.94 884.55 915.05 Total debt 750.04 608.80 652.46 Long Term Debt (Including Current Maturity) 571.50 445.03 483.98 Short Term Debt 178.54 163.78 168.48 Capital Employed
Slide 9: Financial Highlights – Ratios
FINANCIAL HIGHLIGHTS – RATIOS Key Ratios Dec 31, 2018 Dec 31, 2017 March 31, 2018 Inventory (days) 65 39 46 Debtor (days) 68 72 63 Creditor (days) 54 43 47 Working Capital Turnover (days) 79 68 62 RoE (%) 10.0% 15.5% 14.8% RoCE – Pre-Tax 7.9% 13.5% 12.7% RoCE – Post-Tax 7.6% 9.9% 9.3% RoE (%) (Excl
Slide 10: Financial Results 9M & Q3 FY 2019
FINANCIAL RESULTS 9M & Q3 FY 2019 (Rs. in lakhs) Particulars 3M 31.12.2018 3M 30.09.2018 3M 31.12.2017 9M 31.12.2018 9M 31.12.2017 12M 31.03.2018 Income a) Revenue from operations 46,285.03 44,830.69 39,929.29 1,31,603.99 1,26,700.21 1,70,413.55 b) Other income 154.82 273.36 100.56 611.73 253.18 378
Slide 11: Segmental Performance – 9M & Q3 FY 2019
SEGMENTAL PERFORMANCE – 9M & Q3 FY 2019 (Rs. in lakhs) Particulars 3M 31.12.2018 3M 30.09.2018 3M 31.12.2017 9M 31.12.2018 9M 31.12.2017 12M 31.03.2018 Segment Revenue a) Plywood and allied products 33,380.06 35,685.20 28,256.02 99,870.39 89,018.11 1,20,320.09 b) Medium density fibreboards and allie
Slide 12: Segment Wise Performance: Plywood and MDF
SEGMENT WISE PERFORMANCE Particulars Q3FY19 Q3FY18 Var (%) 9MFY19 9MFY18 Var (%) Net sales (Rs. crore) 332.72 281.13 18.4% 991.72 855.04 16.0% EBITDA margin (%) 10.2% 9.7% 11.0% 10.3% Plywood EBIT margin (%) 8.4% 7.6% 9.2% 8.2% Annual capacity (million sqm.) 35.4 32.4 35.4 32.4 Production (million s
Slide 13: Joint Managing Director's Message
Joint Managing Director’s Message Commenting on the performance for Q3 FY2019, Mr. Shobhan Mittal, Joint Managing Director and CEO, Greenply Industries Ltd. said, “Net Sales grew by 15% in comparison to the y-o-y quarter. Plywood Sales grew by 18.4% and MDF revenues by 7.7%. However, MDF margins fel
Slide 14: Company Overview
COMPANY OVERVIEW CAPACITY UTILIZATION PRODUCTION MODEL • Plywood 106% utilization (FY 18); further demand being catered through • Plywood – Moving towards an asset light outsourcing set-up by increasing outsourcing in mid- segment • MDF 100% utilization (FY 18); New unit in AP with 360000 CBM capaci
Slide 15: Company Overview
COMPANY OVERVIEW BUSINESS SEGMENTS STRONG INDUSTRY POTENTIAL • Wood based products - Plywood • Plywood industry size – Rs. 180 billion and allied products, Medium MDF industry size – Rs. 17 billion Density Fibreboards (MDF) • Strong demand drivers – rising residential/ commercial construction, incre
Slide 16: Growth Outlook
GROWTH OUTLOOK INDUSTRY DRIVERS PRODUCT PROFILE • Rising demand from the real estate sector • To improve mix of plywood through increase • Increasing urbanisation, higher disposable in mix of value-added products like Green incomes and a growing middle class Defender, Green Gold Prima and Natural •
Slide 17: Annexure
ANNEXURE
Slide 18: Plywood and MDF Manufacturing Facilities / Production Model
MANUFACTURING FACILITIES / PRODUCTION MODEL Facilities Production Model Capacity 70% in-house, 30% outsourced in volume terms Location (mn sqm.) To increase proportion of outsourcing to 30% (in value terms) PLYWOOD Tizit, Nagaland 4.50 from 22% currently over next 3 years Kriparampur, West Bengal 6.
Slide 19: Strong Performance Track Record
STRONG PERFORMANCE TRACK RECORD NET SALES GROSS PROFIT 1,655 1,651 1,646 1,561 775 767 725 651 560 1,390 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBITDA PBT 258 251 243 191 173 201 183 139 110 104 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
Slide 20: Segment-wise Performance FY14–FY18
SEGMENT-WISE PERFORMANCE Particulars FY14 FY15 FY16 FY17 FY18 CAGR Net sales (Rs. crore) 1,037.30 1,152.07 1,175.64 1,167.99 1,147.94 2.6% EBITDA margin (%) 10.3% 9.1% 9.3% 11.2% 10.0% - Plywood EBIT margin (%) 7.9% 6.8% 7.2% 8.9% 7.9% - Annual capacity (million sqm.) 32.4 32.4 32.4 32.4 32.4 - Prod
Slide 21: Our Brands
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Slide 22: About Greenply Industries Limited
ABOUT GREENPLY INDUSTRIES LIMITED Greenply Industries Limited (GIL) enjoys leadership position in plywood and medium density fibreboards (MDF) accounting for almost 26 percent of the organized plywood and 30 percent of the MDF market in India. GIL has four state–of-the-art manufacturing facilities f
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