Hi-tech Pipes Ltd. · NSE:HITECH
Hi-tech Pipes — Q1 FY23 Earnings Presentation
32 slides from Hi-tech Pipes's earnings presentation, Aug 10, 2022
Slide 1: Result Update Presentation cover letter to exchanges
> ff & +91-11-48440050 M% info@hitechpipes.in “ . . . [ [= ws Ly ——= STEEL PIPES—— &ms ~www.hitechpipes.in August 10th, 2022 To, Manager, . | Listing Department, National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Rotunda Exchange Plaza, Plot No. C/1, G Block, Building, D
Slide 2: Hi-Tech Pipes Limited Investor Presentation Q1FY23
Hi-TOCHI == STEEL PIPES — HI-TECH PIPES LIMITED Investor Presentation-Q1FY23 AUGUST 2022
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hi-Tech Pipes Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall
Slide 4: Agenda
• Q1FY23 Highlights • Financial Performance • Operational Highlights • Company Overview • New Initiatives • Strategic Focus & Future Prospects • Historic Financial Performance • Team Hi-Tech
Slide 5: Q1FY23 Highlights
Q1FY23 Highlights Revenue (Rs Crore) EBITDA (Rs Crore) PAT (Rs Crore) +34.67% -16.52% -49.60% 21.35 8.89 516.17 383.26 4.48 17.83 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Sales Volume (MT) EBITDA Per MT (Rs) -26.60% +13.75% KEY 3467 70063 2545 PERFORMANCE 61591 INDICATOR- CONSOLIDATED Q1FY22 Q1FY23
Slide 6: Financial Performance - Profitability Highlights Q1 FY23
FINANCIAL PERFORMANCE-Profitability Highlights – Q1 & FY23 Particulars (Rs crore) Consolidated Standalone Q1 FY23 Q1 FY22 Y-o-Y % Q1 FY23 Q1 FY22 Y-o-Y % Total Income from Operations 516.17 383.26 34.67% 407.19 304.78 33.60% Raw Materials 476.43 346.60 37.45% 377.05 278 35.62% Employee Cost 5.62 4.5
Slide 7: Operational Highlights
OPERATIONAL HIGHLIGHTS Sales volumes increased by 14% to 70063 tonnes as compared to 61591 tonnes in Q1FY22 Sales Realisation improved by 18% to Rs 73794/tonne as against Rs 62227/tonne in Q1FY22 EBITDA/tonne reduced to Rs 2545/ tonne from Rs 3467/ tonne in Q1FY22 Net WC Days reduced to 64 from 67 d
Slide 8: Company Overview
COMPANY OVERVIEW 2021-2022 2019-2021 Started Continuous 2017-2019 Started Colled Galvanizing Line at Rolling expansion Sikandarabad Unit 2012-2016 project for wider Listing of Company Commenced product of HRoP, at Bombay stock operations at CRCA, CRFH, GPGC Exchange. Sikanderabad Unit –II
Slide 9: 580,000 MTPA capacity and strong dealer network
Encompassing 580,000 MTPA of production ambience and a strong network of 400+ Dealers & Distributors Pan India Capacity Plant Location Product Portfolio (MTPA) MS Steel Pipes, Hollow Sections, GI Pipes, Cold Sikandrabad, UP 2,55,000 Rolled Coils & Strips, GP Coils, GC Sheets, Crash Barriers MS Steel
Slide 10: Enhancing Capacities Year-on-Year
Enhancing Capacities Year-on-Year (Metric Tonnes per Annum) One of the India’s leading manufacturer of Steel Pipes with presence in more than 5,000 retail stores 5,80,000 Continuously enhancing manufacturing capabilities while diversifying into various product categories 5,00,000 80,000 4,25,000 120
Slide 11: Our Manufacturing Facilities
Our Manufacturing Facilities Hindupur, Andhra Pradesh Khopoli, Maharashtra Sanand, Gujarat Sikandrabad, Uttar Pradesh Unit-1 Sikandrabad, Uttar Pradesh Unit-2 10
Slide 12: Built Core Strength
Built Core Installed Capacity Diversified Presence Business Experience Employees Strength 5,80,000 MTPA 5 Plants across 4 states 35+ years ~1,150+ Strong Dealers & Distributors SKUs Contractor Consumers OEM Customers Distribution 400+ 590+ 100+ 160+ Credit Ratings Product Strong Brands Products avai
Slide 13: Widening and Deepening the Product Range
Widening and Deepening the Product Range for Diversified Applications Coated Products Cold Rolled Coils & Strips GP COILS GC COILS Cold Rolled Strips Metal Beam Cold Rolled Coils Crash Guard Emerged as a holistic pipe solution provider with 590+ SKUs…. Steel Pipes and Tubes MS Steel Pipes Steel Holl
Slide 14: Application Based Product Portfolio
Application Based Product Portfolio Product: GI Pipes Product: MS & GI Pipes Product: Large Dia Hollow Section Product: MS & GI Casing Pipes Application: Borewell, Application: Fire Safety - Buildings Application: Infra, Airport, Metro Station Application: Borewell Water, Agriculture Product: GI Pip
Slide 15: New Initiatives: Khopoli Plant Update
Khopoli Plant Update NEW INITIATIVES The Company has started Commercial Production of ERW & GP Pipes in its Khopoli Facility, Maharashtra in Q4FY21 The Company is targeting the Maharashtra & Goa markets as these markets have highest utilization rate of GP Pipes. With the help of this facility the co
Slide 16: Update on Colour Coated Sheet Project
Update on Colour Coated Sheet Project KEY FEATURES: The Company is on the Stage of commencing of this Color Coated Line at its SKD facility with the Annual Capacity of 50,000 MTPA. Colour Coated Roofing Sheets will be a Value Added Product for the Company and this will help in not only improving cap
Slide 17: Large Dia Pipe Mill, Makhiyav
Hi-Tech Pipes- Large Dia Pipe Mill, Makhiyav The Company is commissioning the Large Dia Pipes Project at its strategic location of Makhiyav, Sanand. Green Field setup at Makhiyav, Sanand, Ahmedabad mainly to Cater West India and Export Market. Entry into Large Dia segment within (8 to 16 inches) rou
Slide 18: Social Media Campaign Update
Social Media Campaign Update- ACTIVE LINKS OF SOCIAL MEDIA PLATFORMS OF HI-TECH PIPES https://instagram.com/hitechpipesofficial We all know the power of Social Media, ?igshid=YmMyMTA2M2Y= The company is aggressively using this strong tool towards the company’s growth and Brand Building. https://www.
Slide 19: Huge Opportunity in the Indian Steel Pipes & Tubes Industry
Huge Opportunity in the Indian Steel Pipes & Tubes Industry Indian Steel Pipes & Tubes Per Capita Consumption (Kgs) - Steel Industry 568 • Market Size: ~Rs 500 billion (~8% of total domestic steel market) • Total Domestic Consumption: ~8.5 million tonnes (FY21) • Growth Rate last 5 years: 6-7% CAGR
Slide 20: Huge demand from various sectors aided by Government Schemes
Huge demand from various sectors aided by Government Schemes Infrastructure & Housing Urban development program – Smart cities, Amrut Scheme, Hriday, National Infrastructure Pipeline (NIP) Growing vertical mode of development – increased spending on Skyscrapers Increasing Warehousing demand du
Slide 21: Big Push on demand recovery backed by Government Capex revival
Big Push on demand recovery backed by Government Capex revival Indian government to incur capex of Rs 111 lakh crore for infrastructure development under NIP (National Infrastructure Pipeline) over FY20-25E • 24% of this will go towards Energy sector, a big demand driver of steel pipes and tubes 2.0
Slide 22: Focus on new value-added products, Strengthening Distribution Network
Focus on new value-added products, Strengthening Distribution Network Focus on expanding share of value-added products With recent capacity expansions, strengthening our base in the Western & Southern market Expanding Value-Added Products where there is a higher demand for value-added galvanized
Slide 23: EBITDA/tonne Set to Improve
EBITDA/tonne Set to Improve Better Utilisation to drive Efficient Sourcing of Operating Leverage 06 01 Raw Materials Focus on Building Brand Increase in demand and EBITDA/Tonne and Strengthening 05 02 Improvement in Distribution Network set to Improve Capacity Utilisation Cost Optimisation & Increas
Slide 24: Historic Financial Performance Key Performance Highlights
HISTORIC FINANCIAL PERFORMANCE Key Performance Highlights Volume (‘000 MT) EBITDA Per Metric Ton 3,634 283.20 277.00 269.00 271.20 226.00 2,789 2,661 2,611 2,091 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA/ton improved sharply in FY22 led by improvement in sales realization; Increase in
Slide 25: Key Performance Highlights Continued
Key Performance Highlights Continued….. Revenue EBITDA & EBITDA Margin % 1878.85 5.3% 5.5% 5.3% 100.52 1360.00 1340.60 1209.60 5.9% 4.9% 74.8 70.8 1016.00 60.1 59.2 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT & PAT Margin % Networth 2.15% 40.3 258.6 2.1% 1.6% 1.7% 1.7% 27.5 205.2 21 20.4 2
Slide 26: Key Financial Ratios
Key Financial Ratios Debt/ Equity (x) EPS (Rs.) 2.24 33.77 1.76 1.7 1.45 1.42 25.79 20.39 20.85 18.85 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Return on Capital Employed % Return on Equity % 19% 18.70% 22.10% 20.80% 16.20% 17.41 12.30% 13% 12.70% 12% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20
Slide 27: Consolidated P&L – Last 5 Years
Consolidated P&L – Last 5 Years Particulars (Rs crore) FY18 FY19 FY20 FY21 FY22 Total Income from Operations 1,015.7 1,360.4 1,209.6 1,340.6 1878.84 Raw Materials 913.3 1,236.4 1,095.4 1,210.2 1699.28 Employee Cost 12.1 13.7 17.8 18.8 21.98 Other Cost 30.1 35.6 37.2 40.8 57.07 EBITDA 60.1 74.8 59.2
Slide 28: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (Rs crore) Mar-19 Mar-20 Mar-21 Mar-22 Particulars (Rs crore) Mar-19 Mar-20 Mar-21 Mar-22 Equity 146.8 173.6 205.2 258.61 Non-current Assets 177.4 209.0 241.8 278.95 Equity Share Capital 10.7 10.9 11.2 12.27 Property, Plant and Equipment 169.1 173.0
Slide 29: Team HI-TECH: Board of Directors and KMPs
Team HI-TECH: Board of Directors and KMPs… Mr. Ajay Kumar Bansal Mr. Anish Bansal Chairman & Managing Director Whole-Time Director An Industry stalwart with over 37 years of experience B.Sc. (Economics ) in Banking & Finance graduate from in the steel industry the Cardiff University, England, wi
Slide 30: Marquee Projects and Marquee Clients
…Leading to Long Standing Relationships with Marquee Clientele.. Marquee Clients Marquee Projects which used Hi-Tech Products Crash Barrier at Curtain Walling Structure at Toll Plaza at Fire Fighting Pipes at Grandstand Roofing at Yamuna Expressway Mumbai Int’l Airport Bandra-Worli Sea Link Seven Hi
Slide 31: Quality Certifications and Client Awards
…Validated by Quality Certifications and Client Awards CERTIFICATE EXEMPLARY DNV OF AMONG TOP BUSINESS GROWTH & RECOGNITIO 100 SMEs ASSURANCE INNOVATION N SKOCH AWARD CERTIFICATE MINISTRY OF GROUP SUPER SME COMMERCE INDUSTRY BEST COMPANY OF THE YEAR AWARD IBC CORPORATION, PERFORMANCE TOP USA EXCELLE
Slide 32: Thank You
Thank You For Further Information, Please Contact: Mr. R N Maloo, ED & GCFO rnmaloo@hitechpipes.in For more details please visit www.hitechpipes.in