Slide 1: Stock exchange cover letter for investor presentation
Date: 12th November, 2024 Listing Compliance Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower, Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai – 400001 Mumbai – 400051 Scrip Code: 544198 Symbol: DEEDEV Sub: Invest
Slide 2: Q2 & H1 FY25 Earnings Presentation
DEE Development Engineers Limited Q2 & H1 FY25 Earnings Presentation
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation may contain certain “forward-looking statements” within the meaning of applicable securities laws and regulations, which may include those describing the Company’s strategies, strategic direction, objectives, future projects and/or prospects, estimates etc. In
Slide 4: Agenda
Agenda About DEE Key Financial Highlights Why DEE Shareholding Summary Annexures 3
Slide 5: Management Commentary
Management Commentary “We are pleased to report that the company demonstrated robust growth in the quarter gone by, with Revenue from Operations increasing by 4.9% QoQ & 8.6% YoY to ₹ 1,940 Mn and by 12.8% YoY in H1 FY25, reaching ₹ 3,790 Mn. The order book as on 30th September 2024 stood at ₹ 11,92
Slide 6: About DEE
About DEE
Slide 7: DEE | An engineering company providing specialized process piping solutions
DEE | An engineering company providing specialized process piping solutions DEE Development Engineers Limited was Incorporated by the Chairman & Managing Director Mr. K.L. Bansal in the year 1988. Over three and a half decades Largest player in process piping solutions in India, in terms of installe
Slide 8: Major events and milestones
Major events and milestones 2024 2020 ● Commenced business operations at ● Commenced business operations at Anjar Heavy Fabrication Facility in Gujarat Numaligarh Facility in Assam. ● Recently started operations at the New Anjar Facility I 2014 ● Listed on 26th June 2024 on BSE & NSE ● Commenced rec
Slide 9: Key Financial Highlights
Key Financial Highlights Q2 & H1 FY25
Slide 10: Financial Highlights – Q2 & H1 FY25
Financial Highlights – Q2 & H1 FY25 In INR Millions Revenue from Operating Profit Before Profit After Cash Particulars Operations EBITDA Tax Tax Profit1 Q2 FY25 1,940 298 261 223 348 Growth (YOY) 8.6% 24.5% 141.0% 125.2% 69.7% Growth (QOQ) 4.9% 20.2% 494.8% 598.8% 121.5% Margin2(%) 15.4% 12.4% 10.6%
Slide 11: Financial Highlights – Q2 & H1 FY25
Financial Highlights – Q2 & H1 FY25 In INR Millions Particulars 31-Mar-24 30-June-24 30-Sep-24 RONW(%)2,5 ROCE(%)2,4 Net Worth 5 4,415 7,462 7,717 8.7% 9.3% 8.4% 6.1% 6.0% Total Borrowings 4,384 3,390 3,502 Total Lease Liabilities 221 230 225 2.1% Cash & Cash Equivalents 1 25 95 188 Mar'24 Jun'24 Se
Slide 12: Financial Highlights – Segmental Revenue Breakup
Financial Highlights – Segmental Revenue Breakup In INR Millions Particulars Piping Division Power Division Heavy Fabrication Q2 FY25 1,588 217 134 Sales Contribution 81.9% 11.2% 6.9% Q1 FY25 1,492 208 149 Sales Contribution 80.7% 11.3% 8.1% Q2 FY24 1,567 193 26 Sales Contribution 87.8% 10.8% 1.4% H
Slide 13: Summary of Profit and Loss Statement
Summary of Profit and Loss Statement In INR Millions Particulars Q2 FY25 Q2 FY24 YoY Change Q1 FY25 QoQ H1 FY25 H1 FY24 YoY Change FY24 Revenue from Operations 1,940 1,786 8.6% 1,850 4.9% 3,790 3,359 12.8% 7,888 Operating EBITDA 298 239 24.5% 248 20.2% 546 380 43.6% 1,025 Operating EBITDA1 (%) 15.4%
Slide 14: Why DEE
Why DEE
Slide 15: Why DEE: key strengths
Diverse Portfolio Industry Leader Wide range of specialized Leading Indian manufacturer of product offerings and services specialized process piping solutions, making DEE a comprehensive known for its extensive production solution provider capabilities and significant entry barriers in the industry.
Slide 16: Wide range of specialized product offerings and services
Wide range of specialized product offerings and services… Piping Spools Modular Piping (Skids and Modules) Induction Pipe Bends Industrial Pipe Fittings Industrial Stacks and Wind Turbine Towers Pressure Vessels DEE handles complex metals such as varying grades of carbon steel, stainless steel, supe
Slide 17: …across a spectrum of industries
…across a spectrum of industries Oil & Gas Power (including Nuclear) Process industries (incl. sugar, specialty chemicals & distilleries) Chemical Recently expanded into new business vertical of design, engineering, fabrication and manufacturing of Pilot Plants. DEE intends to develop pilot plants w
Slide 18: Leading player in an industry with significant barriers to entry (1/2)
Leading player in an industry with significant barriers to entry (1/2) Leadership Largest player in process piping solutions in India, in terms of installed capacity * Currently ranked as one of the leading process pipe solution providers in the world, in terms of technical capability to address com
Slide 19: Leading player in an industry with significant barriers to entry (2/2)
Leading player in an industry with significant barriers to entry (2/2) Barriers to entry DEE Manufacturing Facilities have a good mix of Requirement of skilled labour with automation and manual processes complex manufacturing technology High capital investment DEE has made and expects to continue ma
Slide 20: Long standing customer relationships with a strong order book
Long standing customer relationships with a strong order book… Length of Relationship in years with key customers As on Sep 30, 2024 – DEE had an order book of INR 11,921 Mn Order Book Contribution across Sectors in which DEE’s customers operate – Figures in INR Mn 12 years 62.9 1,786.0 Oil and gas
Slide 21: Diversified customers spread across geographies and sectors
…supplemented by diversified customers spread across geographies and sectors As of Sep 30, 2024, DEE has served customers across 27 countries Select Countries served in September’24 Revenue from Operations Split by Geography (H1 FY25) 42.3% Germany 57.7% INR Switzerland 3,790 Italy Mn USA Japan Indi
Slide 22: Strategically located state-of-the-art manufacturing facilities
DEE operates through strategically located state-of-the-art manufacturing facilities… Seven strategically located Manufacturing Facilities at Palwal in Haryana, Anjar in Gujarat, Barmer in Rajasthan, Numaligarh in Assam and Bangkok in Thailand Manufacturing Facility Heavy Fabrication Facility 89,000
Slide 23: Good mix of automation and manual processes
…equipped with a good mix of automation and manual processes DEE’s manufacturing facilities have a good mix of automation and manual processes Fully automated robotic Automatic GMAW Welding Fully CNC heat treatment welding systems System furnaces (gas and electric) Semi-automatic shot blasting In-ho
Slide 24: Installed Capacity & Capacity Utilization
Installed Capacity & Capacity Utilization CURRENT Capacity : 103,500 MT H1 FY25 FY 2024 Facilities Installed Capacity Installed Capacity Capacity Utilization* Capacity Utilization (in MT) (in %) (in MT) (in %) Palwal Facility I 9,000 6.3% 9,000 5.7% Palwal Facility II 3,000 50.9% 3,000 54.2% 1,88,99
Slide 25: Experienced promoter and skilled management team (1/2)
Experienced & dedicated promoter and skilled management team with deep domain expertise (1/2) Krishan Lalit Bansal - Promoter, Chairman & Managing Director ❖ Has been associated with the Company since its inception in 1988 and has experience in prefabricated piping systems and bio-mass power sector
Slide 26: Experienced promoter and skilled management team (2/2)
Experienced & dedicated promoter and skilled management team with deep domain expertise (2/2) Pankaj Agarwal – Chief Operating Officer Charu Agarwal– Vice President (Accounts) ❖ He has been associated with the Company since July 25, 1994 and ❖ She is involved in strategic planning for the developmen
Slide 27: Resilient Financials
Resilient Financials In INR Millions Revenue from operations Op. EBITDA & Op. EBITDA Margin PAT & PAT Margin Op EBITDA Op EBITDA Margin (%) PAT (INR Mn) PAT Margin (%) 16.8% 6.4% 7,888 24.1% 14.4% 14.0% 22.6% 3.2% 11.6% 5,955 262 255 10.8% 13.0% 4,952 4,609 2.8% 692 2.1% 646 1.7% 546 3,790 537 142 1
Slide 28: Powerful Industry Tailwinds: global process piping market
Powerful Industry Tailwinds The global market for process piping systems is expected to reach USD 54.5bn by 2030* Demand for process piping is triggered by capacity expansion Global Process Piping solutions market is valued at ~USD projects in industrial sector 39.2bn in 2023E Year-on-Year Change :
Slide 29: Powerful Industry Tailwinds: Indian process piping market
Powerful Industry Tailwinds Indian process piping solutions market is expected to register a CAGR of nearly 6.1% between FY2023 and FY2030* By 2030, Indian market for process piping solutions is expected to reach INR 38,400 crs Indian Process Piping Industry – segmentation Indian Process Piping Indu
Slide 30: Capex growth in Oil & Gas, Petroleum and Power Sectors
Powerful Industry Tailwinds Growth driven by new wave of Capital Expenditure in the Oil & Gas, Petroleum and Power Sectors Indian Power Project Pipeline– INR Crore 1 ▪ India, the second-largest refiner in Asia, has established itself as a global powerhouse in oil processing. With an extensive refini
Slide 31: Capital build up in Indian Chemical and Pharmaceutical Sectors
Powerful Industry Tailwinds …and strong capital built up in the Indian Chemical and Pharmaceutical Sectors Indian Chemical Industry 2 Indian Chemicals & Pharmaceuticals Capex Pipeline – INR Crore 1 In USD $ billion 8.5% 349 Till FY26 77,648 1,58,906 2,36,554 297 7.4% 252 231 178 Beyond FY26 49,994 2
Slide 32: DEE's strategy to capitalize on the accelerating Capex Cycle
Robust Growth Outlook DEE’s strategy to capitalize on the accelerating Capex Cycle in its Key Sectors DEE’s Capital Expenditure in line with the Industry Capex Cycle Launch pilot plant offerings in the near future Anticipating growth in the power sector, DEE had invested in expanding its capacity, p
Slide 33: Expansion into adjacent business verticals
Robust Growth Outlook Expansion into adjacent business verticals DEE recently expanded its business by entering a new business vertical of design, engineering, fabrication and manufacturing of pilot plants Process to manufacture pilot plants As part of DEE’s growth strategy, the Company has recently
Slide 34: Shareholding Pattern (Sep 2024)
Shareholding Pattern (Sep 2024) Non-Promoter Shareholding Key Institutional Shareholders FIIs Kotak Mahindra Mutual Fund 7.5% Mutual Funds / AIF 37.0% LIC Mutual Fund Banks, NBFCs & Insurance Aditya Birla Mutual Fund Body Corporate 54.2% Total Shareholding Tata Mutual Fund Others 0.0% 1.3% 0.4% HDFC
Slide 35: Thank You!
Thank You! Chief Financial Officer Investor Relations Advisor Sameer Agarwal Sanjeev Sancheti sameer.agarwal@deepiping.com ir@uirtus.in www.deepiping.com www.uirtus.in
Slide 36: Annexures
Annexures
Slide 37: IPO Fund Utilization
IPO Fund Utilization In INR Millions Amount to be utilized from Amount Utilized as on Total Un-utilized amount as on Objects of the Issue as per Prospectus Net Proceeds* 30.09.2024 30.09.2024 Funding Working Capital requirements of our Company 750.00 750.00 - Prepayment or repayment of all or a port
Slide 38: Overview of Process Piping
Overview of Process Piping A process piping system is a specialized piping system that is exclusively used in an industrial plant for transporting input materials that goes into the actual production process. Process piping system typically consists of a network of interlinked piping system comprisi
Slide 39: Manufacturing Facilities (1/2)
Manufacturing Facilities (1/2) - Largest player in process piping solutions in India providing specialized process solutions in terms of installed capacity Anjar Heavy Palwal Facility I Palwal Facility II Palwal Facility III Barmer Facility Anjar Facility I Bangkok Facility Numaligarh Facility New A
Slide 40: Manufacturing Facilities (2/2) – Two biomass power generation plants
Manufacturing Facilities (2/2) – Two biomass power generation plants Abohar Biomass Power Plant Muktsar Biomass Power Plant • Abohar Biomass Power Plant spans an area of approximately 205,681.48 • Muktsar Biomass Power Plant spans an area of approximately 141,829.67 square meters. square meters. • A