Skipper Ltd · NSE:SKIPPER
Skipper — Q3 FY2022 Earnings Presentation
34 slides from Skipper's earnings presentation, Jan 25, 2022
Slide 1: Cover letter to stock exchanges
$KIPPER ----Limited---- Date: 25 January 2022 The Manager The Manager National Stock Exchange of India Limited BSE Limited Exchange Plaza, s" Floor, Phiroze Jeejeebhoy Towers, Dalal Street Plot No. C-1, Block-G Mumbai- 400 001 Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Name- SKIPPER/
Slide 2: Q3 & 9M FY'22 Results Investor Presentation
Q3 PERFORMANCE, 2021 - 22 SKIPPER LIMITED INVESTOR PRESENTATION Q3 & 9M FY’22 Results 25th January, 2022
Slide 3: Disclaimer
DISCLAIMER This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to
Slide 4: Who We Are
WHO WE ARE Company is India’s largest and world's only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC. 3
Slide 5: Skipper: One-Stop Solution Provider
PRODUCT OFFERINGS SKIPPER: ONE -STOP SOLUTION PROVIDER Engineering products Polymer products Infrastructure projects Capacity: 300,000 MTPA Capacity: 51,000 MTPA M I S S•I Transmission ON Line EPC • Power Transmission Tower • UPVC Pipes • Railway Electrification EPC • Power Distribution Poles • CPVC
Slide 6: Q3 FY'22 Performance Update
SKIPPER LIMITED Performance Update Q3 FY’22 Update
Slide 7: Stand Alone Financial Performance Q3 FY'22
Stand Alone Financial Performance Q3 FY’22 YoY down by 13 % YoY up by 8 % YoY up 230 bps YoY down by 21 % Net QoQ down by 16 % EBITDA OPM % QoQ up 310 bps PBT QoQ up by 135 % Sales QoQ up by 13 % Rs in Mn YoY QoQ Sl Profit & Loss Summary Q3 FY’22 Q3 FY’21 Change % Q2 FY’22 Change % 1 Revenues 4,005.
Slide 8: Stand Alone Financial Performance 9M FY'22
Stand Alone – Financial Performance 9M FY’22 Rs in Mn Sl Profit & Loss Summary 9M FY’22 9M FY’21 1 Revenues 11,544.3 10,841.5 2 Reported EBITDA 1,061.5 1,009.2 EBITDA Margins (%) 9.2% 9.3% 3 (+) Other Income 29.5 16.4 4 (-) Depreciation 362.8 336.3 5 (-) Finance Cost 675.9 514.0 6 Profit Before Tax
Slide 9: Performance Update: Key Performance Highlights
B U S I N E S S U P D AT E – Q 3 F Y ’ 2 2 Performance Update Key Performance Highlights Consistent revenue performance across major business segments in spite of covid related challenges; Achieved highest ever quarterly revenue performance in Q3 in Polymer segment Unavailability of Sea Containe
Slide 10: Performance Highlights
PEFRORMACE HIGHLIGHTS Q3 Fy’22 Revenue performance was impacted on account of - Unavailability of export containers resulted in Delay in execution of Engineering export contracts (Signs of some ease are visible ) ; Continuing Port Congestion and delays making shipping transit time longer; leadin
Slide 11: Segment Performance Q3 & 9M FY'22
SEGMENT REPORT Segment Performance Q3 & 9M FY’22 Segment Q3 FY'22 Q3 FY'21 Change % 9M FY'22 9M FY'21 Change % Infra 3,105.5 3,544.1 -12.4% 9,096.8 8,321.2 9.3% Polymer 4% Engg 356.5 301.7 18.2% 881.2 681.4 29.3% Products 19% 11.5% 8.5% 9.7% 8.2% 748.2 626.0 19.5% 2,023.0 1,373.5 47.3% PVC 40.4 22.5
Slide 12: Engineering Products – Order Book Composition Dec 2021
ORDER BOOK PIE Engineering Products – Order Book Composition – Dec 2021 Total Order Book Segment Break up Rs 21,220 million Domestic 58% 35% 42% Order Breakup Export 42% 18% 5% Domestic Export PGCIL SEB & Others Export Telecom 11
Slide 13: Rising Order Inflow
Rising Order Inflow Engineering Products – Order Inflow Composition • New Order Intake of Rs 4,230 million in Q2 FY’22 & Rs 13,770 million in 9M Fy’22 for engineering products supply from PGCIL, SEB’s & Telecom Players and for various supplies across Asia Pacific, Middle East, Africa and LATAM marke
Slide 14: Rising Export Share Inflow
ORDER BOOK PIE Rising Export Share Inflow Export Order Inflow Trend Positioned to grow export business to 75% of Engineering revenue in next 2 years 6,110 Secured new export orders in excess of Rs 6,110 million Doubled last year total inflow; with in during H1 Fy’22 and Rs 7,180 million in the tra
Slide 15: Strong Bidding Pipeline
Strong Bidding Pipeline Strong Bidding Pipeline of 53,000 Million as on 30th Dec 2021; International – 38,000 Mn & Domestic - 15,000 Mn • Expecting International Ordering & Execution to gain pace in Q4 FY’22; • In advanced Stages of negotiation to secure some good size International contract • Large
Slide 16: Mitigation Strategy: Managing RM Price Volatility
Ma na gi ng RM P ri c e Vo l ati l i ty The company is taking all necessary steps to tackle & neutralise the impact of this temporary RM volatility / Container Freight issues and protect margins - Securing Newer Contracts at elevated commodity price level Mitigation Strategy Considering lack of cont
Slide 17: Business Outlook: Big Opportunity – USA
Business Outlook With Major Approvals in place and strong relationship been developed with Major USA EPC players and Utilities over the past few years, Company is well poised to target and get benefitted from this massive Power T&D investment plans. Big Opportunity – USA With bipartisan support, the
Slide 18: Major T&D Projects Announcement & Approval
Major T&D Projects Announcement & Approval One Sun One World One Grid Project (OSOWOG) • India and Britain signed a solar power initiative, called One Sun One World One Grid, that envisions an interconnected transnational solar grid. • OSOWOG is India's initiative to build a global ecosystem of inte
Slide 19: Skipper's Polymer Business
P O LY M E R P R O D U C T S S E G M E N T SKIPPER’S POLYMER BUSINESS Polymer Plants invested Guwahati Fittings Among few Indian One of few Indian manufacturing state-of-the-art Plant enjoys tax companies assured companies with capacity of 51,000 manufacturing exemption of CPVC for pipes NSF certifi
Slide 20: Polymer Highlights
Polymer Highlights Polymer – Improving Revenue Performance Major Highlights TTM Revenue of Rs 2,815 million Only Polymer Pipe company in India to implement TOC into its operation Highest Ever Q3 Revenue Performance Growing National Presence ; Deriving 75% of overall revenue through TOC channel
Slide 21: Our USP: Theory of Constraints
THEORY OF CONSTRAINTS OUR USP • Partnering benefits: • Exponential Sales Growth & Gain in Market Share Skipper is the only Indian polymer pipe company to • Robust Processes & Systems in place to improve implement Theory of profitability Constraints (TOC) approach in an organized • Consistent availab
Slide 22: New Polymer Product Addition
New Polymer Product Addition Performance Update Awards & Approvals PTMT BATH ACCESSORIES CISTERN & SEAT COVER 21
Slide 23: Skipper Pipes – Branding Activities
Skipper Pipes – Branding Activities Performance Update Awards & Approvals Added New products in the polymer pipe segment - Launched “Marina” Water Tanks under the Skipper Pipes brand. 22
Slide 24: New Polymer Product Addition
New Polymer Product Addition Performance Update Awards & Approvals 23
Slide 25: Performance Outlook
Business Outlook PERFORMANCE OUTLOOK With majority of our old legacy engineering export orders secured on CIF basis getting executed in 9M Fy’22 ; Going forth most of the revenue execution will take place from newer contracts which were secured on FOB terms and at elevated commodity price level ai
Slide 26: Shareholding Pattern
Shareholding Pattern Shareholding pattern Major Institutional Shareholders a s o n 3 1 st D e c 2 1 A s o n 3 1 st D e c 2 1 Name % Promoters Baillie Gifford - Pacific Horizon Investment 4.49% 71.89% Trust Ocean Dial Asset Management India (ICGF) 4.08% Foreign Portfliio Dovetail India Fund 0.46% Inv
Slide 27: Future Ready
SKIPPER 0 © GK Le SKIPPER } =] ok R&D Future Ready
Slide 28: Focus on Growing Exports
EXPLORING NEW GEOGRAPHIES FOCUS ON GROWING EXPORTS • Optimistic outlook: Positioned to grow exports to 50% of Engineering revenue in current year (FY’22) and to 75 % in next International certifications 2 years. Certification Country • Opportunity-ready: Certified by prominent international CFE/LAPE
Slide 29: Leadership Position in International T&D Sector
LEADERSHIP POSITION S K I P P E R I S C L E A R LY P O I S E D T O B E I N T H E W I N N I N G S P O T I N T H E I N T E R N AT I O N A L T & D S E C T O R • Skipper is the highest accredited manufacturers in India for supplying to global markets • Largest and lowest cost manufacturer out of India a
Slide 30: Telecom Sector: Telecom Tower
TELECOM SECTOR TELECOM TOWER • India needs around 800,000 additional towers to address digital growth and 5G Roll out China 1.4 bn 1.94 mn • National Telecom Policy aims to inspire $100 bn investment in Customers Telecom tower five years • India’s 30 per cent broadband penetration leaves large headr
Slide 31: Leadership Position in the Telecom Sector
LEADERSHIP POSITION S K I P P E R I S C L E A R LY S E T T O B E I N T H E W I N N I N G S P O T IN THE TELECOM SECTOR • Large engineering capacity to support manufacturing of Telecom structures • Proximity to focus Telcos markets - East & North East • Tie up with one of world's leading tower design
Slide 32: Transmission Line Tower Testing Station
T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n Skipper boasts of India ‘s largest Tower & Monopole Load Testing Station - • All new large T&D projects in domestic markets now comes along with Design and Load testing scope; • Our new R&D centre will give us distinct advantage ove
Slide 33: Skipper Vaccination Drive
S K I P P E R VA C C I N AT I O N D R I V E More than 2,200 + Employees and Workers were Vaccinated 32
Slide 34: Contact
For any queries please contact: Aditya Dujari (Investor Relations) Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017 E-Mail: aditya.dujari@skipperlimited.com Tel: + 91 33 2289 2327/5731 Mobile: 9830806906 33