Ddev Plastiks Industries Limited · NSE:DDEVPLSTIK
Ddev Plastiks Industries — Q1 FY2025 Earnings Presentation
45 slides from Ddev Plastiks Industries's earnings presentation, Aug 26, 2024
Slide 1: Regulation 30 cover letter to BSE
DDEV PLASTIKS Date: 26" August, 2024 To The Manager, Listing Department, BSE Limited, PJ Towers, Dalal Street, Mumbai - 400 001. Scrip Code: 543547/ ISIN: INEOHR601026 Dear Sirs gs held on 2 Sub: Presentation as placed at Analyst / Institutional Investor meetin ure Requirements) Regulat Ref: Regulat
Slide 2: Earning Presentation 1QFY25
Leading Manufacturer Of Compounds Earning Presentation 1QFY25 Visit Our Website www.ddevgroup.in
Slide 3: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Ddev Plastiks Industries Ltd.'s (“Ddev Plastiks” or “DPIL” or the Company
Slide 4: About Us
About Us 4-10
Slide 5: Ddev Plastiks: India's Largest Manufacturer of Polymer Compounds
Ddev Plastiks : India’s Largest Manufacturer of Polymer Compounds o 4 Decade of Operations – current capacity 2,33,400 MTPA (as of June, 2024). FY24 Financial Performance o 5 manufacturing units with state-of-the art machinery, infrastructure, equipment, and R&D facilities. Rs.2,431 cr 28% o Diverse
Slide 6: 1QFY25 Management Commentary
1QFY25 Management Commentary Commenting on the Performance, Narrindra Suranna, Chairman and Managing Director said: “I am pleased to announce that Ddev Plastiks has commenced FY25 with a strong performance. On a consolidated basis, we achieved an EBITDA of INR 65 crores, with a double digit EBITDA m
Slide 7: Our Business Model
Our Business Model • PVC Resin • Polymer Heating Sourcing of raw materials Mixing Compounding Process Grafting in case of XLPE Pelletizing Wire and Cable Compounds, White Good Engineering Plastics, Engineering Compounds, Packaging Compounds , Footwear Compounds
Slide 8: Key USP's
Key USP’s 01 02 03 Operating in five high growth Diversified Revenue Structure; Multi-location setup minimizing categories. Leading supplier of cable transportation costs. compounds in India 04 05 06 Strong R&D Infrastructure. Customisation of products with Highly competitive globally. 200+SKU’s. 7
Slide 9: Operating in 5 High Growth Categories with 200+ SKUs
Operating in 5 High Growth Categories with 200+SKU’s Antifab/Filled Halogen Free Flame Sioplas/XLPE Engineering Plastic Compounds/Master PVC Compounds Retardant Compounds/Semicons Compounds Batches (HFFR) • Niche product with high • Global leader in XLPE and • Widely used in White • Widely used in p
Slide 10: Our Organization & Business Structure
Our Organization & Business Structure Value unlocked by the de-merger Post Demerger Organization & Business Structure Simplified Corporate Structure Kkalpana Industries (India) Ltd Maximizing Shareholders Value Demerger Ratio 1:1 Kkalpana Industries Ddev Plastiks (Listed on CSE &BSE) (Listed on BSE)
Slide 11: Largest Supplier of Cable Compounds in India
Largest Supplier of Cable Compounds in India Revenue by Geography (INR Cr) Revenue distribution by sector (%) Overseas 24% Others INR 18% 625 Packaging Industry Revenue India 3% Distribution 76% according Sales 1QFY25 to top three sectors Revenue by Product Category (INR Cr) Wires and Cable Others I
Slide 12: Investment Thesis
Investment Thesis 12-28
Slide 13: Renewables has emerged as the new unprecedented catalyst
Renewables has emerged as the new unprecedented catalyst Polymer compounding is a preferred material to electrical industry due to properties such as electrical insulation, corrosion inhibition, excellent heat resistance, high tensile and durability and low density. 50% Indian Cable and Wire 817 GW
Slide 14: Sectoral Tailwinds to support growth
Sectoral Tailwinds to support growth Demand Global Polymer Compounding Market Growth (in USD bn) Government Polices • Urbanization • National Infrastructure • Changing consumer Pipeline behavior • Har Ghar Bijlee 115 • Increasing per capita • Capex cycle uptick income CAGR • Electrification • Premiu
Slide 15: Strategically located manufacturing capabilities
Strategically located manufacturing capabilities Installed Name of the Plant Products manufactured Capacity (MTPA) Anti fibrillation Compound 12,000 Dhulagarh – West Bengal Sioplas & Semicon 15,000 PVC Compound 6,000 PVC Compounds Cables 38,000 Dadra and Silvasa - Dadra Plant 1 2 Nagar Haveli HFFR 5
Slide 16: Strong R&D Infrastructure
Strong R&D Infrastructure Strong R&D Capabilities enabling innovation and new products launches Product Pipeline • XLPE Compound suitable for Insulation for Cables upto 132kv to be launched in the next few month. • Next focus would be going up to 220Kv. Powered by robust R&D • Experienced R&D Engine
Slide 17: Profit 6x in 5 years: Focus on High Margin Products
Profit 6x in 5 years: Focus on High Margin Products Net Revenue (INR Cr) EBITDA (Rs Cr) & EBITDA Margin % ~4,500-5,000 CAGR 282 CAGR 9% 36% 12% 10% 186 2,504 128 2,227 2,000 7% 1,711 1,534 6% 82 5% 74 5% 65 625 FY20 FY21 FY22 FY23 FY24 1QFY25 FY30 FY20 FY21 FY22 FY23 FY24 1QFY25 EBITDA EBITDA Margin
Slide 18: Focus on shareholder value creation
Focus on shareholder value creation Margins (%) PAT (INR cr) and EPS (INR per share) 182 20% 18% 14% 13% 13% 13% 12% 104 10% 7% 6% 7% 55 5% 5% 7% 42 4% 27 21 2% 2% 1% 17.56 5.82 11.07 2.93 2.25 4.10 FY20 FY21 FY22 FY23 FY24 1QFY25 FY20 FY21 FY22 FY23 FY24 1QFY25 Gross Margin EBITDA Margin PAT Margin
Slide 19: Strong Balance Sheet to support future growth
Strong Balance Sheet to support future growth Net-worth (INR cr) Leverage Ratios 660 494 1.3 1.2 392 337 316 0.7 0.3 0.3 0.2 0.2 0.1 0.0 FY20 FY21 FY22 FY23 FY24 0.0 FY20 FY21 FY22 FY23 FY24 Net debt to equity Net debt to EBITDA • Strong Balance to support capex plans of ~INR300cr to be done in stag
Slide 20: Strategic Priorities
Strategic Priorities 1. 2. 3. 4. Strong focus on new Maximizing Operating Market Penetration product development Leverage Stakeholder value creation • Improve presence in • Pioneering Product • Capacity and domestic and Launches on the back Capability • Profitable growth and overseas markets. of str
Slide 21: Pioneering Product Launches Powered by Extensive R&D
Pioneering Product Launches Powered by Extensive R&D • Started manufacturing of Anti • Received Third Party Track (Track Resistant) approval for India’s • Started Compound suitable for 36 first locally produced • R&D on • Next focus going manufacturing KV. It will find big demand in Water Tree Retar
Slide 22: Higher Capacity Utilization and Addition to drive future growth
Higher Capacity Utilization and Addition to drive future growth Installed Capacity (MTPA) Utilization (%) 2,39,000 80% 2,37,500 70% 2,37,000 2,37,000 60% 59% 60% 52% 2,33,400 2,33,000 FY20 FY21 FY22 FY23 FY24 1QFY25 FY20 FY21 FY22 FY23 FY24 1QFY25 Antifab/Filled Compounds/Master Batches PVC Compound
Slide 23: Capex
Capex 125 2024: Expansion of HFFR compounding capacity by 5,000 MTPA. Debottlenecking. 2025: New Greenfield Site at East & West 75 70 Debottlenecking. 2026: Expansion of HFFR compounding capacity by 15,000 MTPA. Building space for further capacity for all compounds. 30 2027: Expansion of PE compound
Slide 24: Annual Operational Performance
Annual Operational Performance FYE March, FY20 FY21 FY22 FY23 FY24 Antifab Installed Capacity 50,000 50,000 36,000 36,000 20,500 % Utilization 48% 55% 96% 76% 111% PVC Compounds 40,000 44,000 44,000 44,000 44,000 % Utilization 84% 54% 42% 48% 57% Sioplas/XLPE/Semicons 1,28,500 1,28,500 1,42,500 1,42
Slide 25: Quarterly Operational Performance Trend
Quarterly Operational Performance Trend FYE March, 1QFY24 4QFY24 1QFY25 Antifab Installed Capacity 36,000 20,500 20,500 % Utilization 67% 98% 85% PVC Compounds Installed Capacity 44,000 44,000 44,000 % Utilization 52% 63% 63% Sioplas/XLPE/Semicons Capacity 1,42,500 1,53,500 1,61,500 % Utilization 74
Slide 26: Penetrating in India and overseas markets
Penetrating in India and overseas markets Geographical revenue structure (INR cr) Leading supplier across sectors 1823 1187 1063 968 905 787 Power Oil & Gas Construction Non Metal 671 608 476 349 267 149 FY20 FY21 FY22 FY23 FY24 1QFY25 Revenue from International Business Revenue from Domestic Busine
Slide 27: SWOT
SWOT Strengths Weakness Opportunity Threats • Established market • Supply chain disruption. • Increased replacement of • Increasing wireless position. conventional material in communication • Volatility in raw material various sectors. technology. • Capability of large scale prices. operation allowi
Slide 28: HFFR
HFFR During the times of fire HFFR insulated cables considerably reduces the amount of toxic and corrosive gas emitted during combustion. A low-smoke cable is desirable because it reduces the amount and density of the smoke, which makes exiting a space easier for occupants as well as increases the s
Slide 29: Way Forward
Way Way Forward Forward Overall Industry Shift from unorganized Higher growth New product growth of double digit to organized sector from recently launches launched products Looking ahead, we remain steadfast in our commitment to maintaining a growth and target a revenue to be ~INR5,000cr by FY2030
Slide 30: Financials
Financials 30-33
Slide 31: 1QFY25 Consolidated Key Result Highlights
1QFY25 Consolidated Key Result Highlights Revenue (INR Cr) EBITDA (INR Cr) -2% 6% YoY YoY 65 638 • In the fiscal, we experienced strong 625 61 demand from the Cables segment, and our ongoing efforts to shift the product mix towards niche and high-voltage products led to better 1QFY24 1QFY25 1QFY24 1
Slide 32: Consolidated Q1FY25 Financial Performance
Consolidated Q1FY25 Financial Performance Particulars (INR in Cr) Q1FY25 Q1FY24 YoY% FY24 Revenue from Operations 625 638 -2% 2,431 EBITDA 65 61 6% 282 EBITDA Margin % 10% 10% 74bps 12% Depreciation 3 3 4% 14 Earnings Before Interest & Tax 61 58 6% 268 Interest 4 7 -38% 23 Profit Before Tax 57 51 12
Slide 33: Historical Income Statement
Historical Income Statement Particulars (INR in Cr) FY 21 FY 22 FY 23 FY24 Revenue from Operations 1,534 2,227 2,504 2,431 Gross Profit 199 291 355 475 EBITDA 74 128 186 282 EBITDA Margin % 5% 6% 7% 12% Depreciation 11 12 12 14 Earnings Before Interest & Tax 64 116 174 268 Interest 35 41 33 23 Profi
Slide 34: Historical Balance Sheet
Historical Balance Sheet Particulars (INR in Cr) FY 21 FY 22 FY 23 FY24 Particulars (INR in Cr) FY 21 FY 22 FY 23 FY24 (a) Equity Share Capital 9 9 9 10 Non-Current Assets (b) Other Equity 328 382 485 650 Tangible Assets 201 206 225 231 Total Equity 337 392 494 660 Other Intangible Assets 0 0 0 0 No
Slide 35: Annexures
Annexures 35-43
Slide 36: Major Milestones Achieved
Major Milestones Achieved • Demerger of the two businesses and listing post Demrger. • Set up of Engineering • Started manufacturing of Plastic Compounding Anti Track (Track Resistant) unit at Daman Compound suitable for 36 Started new factory Started new • Started manufacture KV. It will find big d
Slide 37: Experienced Board of Directors
Experienced Board of Directors Mr. Narrindra Suranna Mr. Ddev Surana Chairman & Managing Director Whole Time Director and CEO • Associated with Company since inception. • Dynamic business leader and key driving force of Wide experience in Plastic Industry, Company. Company has reached its present he
Slide 38: Leadership Team
Leadership Team Mr Arihant Bothra Ms. Tanvi Goenka Chief Financial Officer Company Secretary • He is an Associate member of Institute of • She is a graduate in commerce and has received her Chartered Accountants of India and an IIM membership of Institute of Company Secretaries of Calcutta Alumni. V
Slide 39: Accreditations and Industry Recognition
Accreditations and Industry Recognition ISO Certificates KEMA Approval CPRI Approval CACT Approval VDE Approval XLPE ROHS TESTS POWERGRID Approval UL Approval PVC ROHS REACH TESTS ERDA 01 www.ddevgroup.in | 38
Slide 40: Benefits of strong Research and Development Infrastructure
Benefits of strong Research and Development Infrastructure Developments of various grades of PVC & XLPE Maintenance of leading position in the market 1. 8. compounds to meet changing market needs Efficiency and yield improvement, loss 7. Increased output and labor saving reduction and modernization
Slide 41: Awards & Recognitions
Awards & Recognitions Awarded Awarded “Excellence in Sub-Sector- “Excellence in Exports- Plastics Polymers & Polymer Petrochemicals” Processing / Compounding Federation of Indian Chemicals” Federation of Chambers of Commerce Indian Chambers of and Industry (FlCCl) Commerce and Industry (FlCCl) 01 ww
Slide 42: Sustainability at the Core
Sustainability at the Core Distributed balanced nutrition food to Undertaken the CSR Initiative of Planted over 500 trees School Students at Surangi providing Nutrition Supplement to TB at manufacturing units and schools Govt. High School patients in Surangi Village. Installed 1MW Solar Power Panels
Slide 43: Diversified Customers - Domestic
Diversified Customers - Domestic Top clientele constitutes of prominent domestic and global companies Well established relationships with renowned clientele provide stability to revenues and drive business going forward 01 42
Slide 44: Diversified Customers - Exports
Diversified Customers - Exports 43
Slide 45: For further information, please get in touch with
For further information, please get in touch with Saloni Ajmera Tanvi Goenka, CS Go India Advisors Ddev Plastiks Industries Ltd Tel: +91-99305 77801 Email: tanvi.goenka@ddevgroup.in Email: saloni@goindiaadvisors.com Sheetal Khanduja Go India Advisors Arihant Bothra, CFO Tel: +91-97693 64166 Ddev Pla
Ddev Plastiks Industries — Q1 FY2025 Earnings Presentation on 6ix