Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q2 FY2021 Earnings Presentation
40 slides from Apollo Pipes's earnings presentation, Oct 29, 2020
Slide 1: Intimation under Regulation 30 to NSE and BSE
€'PLAPOU Sudesh Group ? PIPING SYSTEMS Mo.de kr /tie. 35 ?:tti October 29, 2020 The National Exchange of India Stock Limited Department of Corporate Services/Listing Exchange Plaza", s" Floor, BSE Limited Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Sandra (East), Dalal St
Slide 2: Q2 & H1 FY21 Earnings Presentation
APOLLO PIPES LTD. Q2 & H1 FY21 Earnings Presentation October 29, 2020
Slide 3: Safe Harbour
2 Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend",
Slide 4: Table of Content
3 Table of Content Apollo Pipes Overview 1 Growth Levers 2 Macro-growth Drivers 3 Future Outlook 4 5 Year Financial highlights 5 Q2 & H1 FY21 Highlights 6
Slide 5: Company Overview
4 Company Overview
Slide 6: Apollo Pipes at a glance
5 Apollo Pipes at a glance leading PVC pipe manufacturers in Capacity* as on 30th September India 2020 Distributors Manufacturing Plants Dealers Products 5-year Volume 5-year Revenue 5-year PAT CAGR CAGR CAGR • Includes acquired 12,000 MTPA capacity unit of Kisan Mouldings in Bengaluru
Slide 7: Presence across Sectors
6 Presence across Sectors Agriculture Segment Water Management Segment •Casing pipes •Drip irrigation & •Hot & cold potable water distribution & •Sprinkler system transportation •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils Construction
Slide 8: Product Portfolio - Diversified Basket of 1,000+ Products
7 Product Portfolio - Diversified Basket of 1,000+ Products PIPES uPVC PIPES uPVC COLUMN PIPES DRAINAGE uPVC PIPING SYSTEM uPVC RING FIT PIPES uPVC RIBBED SCREEN PIPES PIPES AND FITTINGS FITTINGS uPVC PLUMBING PIPING SYSTEM uPVC AGRI FITTINGS PVC CEMENT SOLVENT CEMENT uPVC PIPES CEMENT cPVC PIPING S
Slide 9: Success Milestones
8 Success Milestones • Started manufacturing • Concluded promoter uPVC Plumbing fittings infusion of Rs. 202 crore with 180 MTPA through issuance of Equity capacity Shares and fully • Commenced convertible warrants on • Commenced PVC manufacturing cPVC • Largest plastic piping Preferential basis pip
Slide 10: Experienced Management Team
9 Experienced Management Team Mr. Sameer Gupta Mr. Sanjay Gupta Managing Director Non- Executive Chairman B.Com Honors from Delhi University (SRCC) Mr. Sanjay Gupta is the second generation of the entrepreneurial family Mr. Sameer Gupta joined the family business in the year 2000 and Holds a rich ex
Slide 11: Strong governance and Management
10 Strong governance and Management Board of Directors Promoter Directors Non Executive Directors Independent Directors Mr. Sameer Gupta Mr. Sanjay Gupta Mr. Pradeep Kumar Jain Managing Director Chairman Independent Director Mr. Saket Agarwal Ms. Neeru Abrol Director Independent Director Mr. Abhilas
Slide 12: Our Environment, Social, Governance and Safety Policy
11 Our Environment, Social, Governance and Safety Policy • Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes − Installed rooftop solar plant at Dadri for optimum utilisation of energy − Evaluating opportunities to install rooftop solar plants at Ahmedabad and Benga
Slide 13: Growth Levers
12 GROWTH LEVERS
Slide 14: Key Business Strengths
13 Key Business Strengths Catering to Strong and Advanced Multiple and Proven expertise multiple sectors – highly equipment & Expanding efficient product in complex Agriculture, Water experienced technology – cost footprint in India offerings – projects Management, Management efficient 1,000+ produc
Slide 15: Strengthening distribution network across India
14 Strengthening distribution network across India to augment presence and improve market penetration Enjoys a dominant and Delhi/NCR Sikandrabad leading presence Head Office (Manufacturing Unit) in North India Dadri (Manufacturing Unit) Extensive distribution Tapping newer network markets to reduce
Slide 16: Diversified Product Portfolio with total offerings at 1,000+
15 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri, Ahmedabad, Bengaluru and Sikandrabad • Emphasis on innovation: One of the first companies
Slide 17: Capacity Expansion to aid long-term growth plan
16 Capacity Expansion to aid long-term growth plan – to exceed 100,000 MTPA by March 2021 Available capacity* of 84,000 MTPA Aim to deliver a healthy Primary focus to improve 25%+ CAGR over the next 3 utilization at Dadri, years Ahmedabad and Bengaluru Establishing a manufacturing Undertaking Greenf
Slide 18: Leverage the 'APL Apollo' brand reach and recall
17 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth The ‘APL Apollo’ Brand Edge enables better reach and product competitiveness Branding Activities – Sports sponsorship Principal Sponsor of Pro Kabbaddi League IPL TVC – Principal sponsor of Delhi Capitals Branding
Slide 19: Macro Growth Drivers
18 MACRO GROWTH DRIVERS
Slide 20: PVC pipe industry
19 PVC pipe industry The Indian PVC pipes and fittings market expected to DEMAND SEGMENTATION – DOMESTIC INDUSTRY register 15% CAGR during FY18 - FY26 Others, 5% Sewerage, 12% • The domestic plastic pipes industry size at ~Rs. 315B Irrigation, 45% • Organized players account for ~60% market share •
Slide 21: At the Forefront of multiple sector trends
20 At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging • Improving irrigation schemes distribution requirements pipelines and installation of for farmers • Water Management, W
Slide 22: Future Outlook
21 Future Outlook
Slide 23: Focus Areas for FY21
22 Focus Areas for FY21 Penetrate and establish footprint Strengthen foothold in existing into neighboring markets in Central markets of North and Western India and Eastern India Undertake phase-wise capacity Improve utilization at the existing expansions at the new and existing manufacturing plants
Slide 24: 5-Year Financial Highlights
23 5-Year Financial Highlights
Slide 25: Financial Trend
24 Financial Trend CAGR – 19% CAGR – 24% Total Revenues (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 418 51 56 374 41 270 301 32 209 24 14% 14% 13% 13% 12% FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 CAGR – 29% CAGR – 14% PAT (Rs. Cr) Volume (MTPA) 28 44,692 22 24 39,823 33,
Slide 26: Financial Trend
25 Financial Trend ROCE (%) ROE (%) 18.0 19.0 28.0 26.0 16.0 15.0 24.0 24.0 20.0 11.7 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 Total debt (Rs. Cr) Debt to Equity (x) 30 34 20 0.6 0.3 0.2 -35 -38 -0.1 -0.2 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2
Slide 27: 5-year Financial Track-record
26 5-year Financial Track-record Particulars FY2016 FY2017 FY2018 FY2019 FY2020 Net Worth (Rs. Cr) 55.0 91.4 113.3 229.8 306.5 Capex for the year (Rs. Cr) 12.2 9.1 17.1 48.2 59.3 Inventory (Rs. Cr) 13.7 22.7 44.3 52.3 82.4 Inventory Days 24 34 55 53 74 Debtors (Rs. Cr) 29.5 34.2 38.5 35.8 59.4 Debto
Slide 28: Operational & Financial Highlights Q2 & H1 FY21
27 Operational & Financial Highlights Q2 & H1 FY21
Slide 29: Q2 FY21 at a glance
28 Q2 FY21 at a glance Distributors Products Capacity* as on 30th September 2020 Dealers Volume Revenue from Operations (INR) EBITDA (INR) PAT (INR) 19% yoy increase 28% YoY Increase 43% YoY Increase 64% YoY increase ` Net WC days improved by Net Cash (INR) 23 days as compared to 58 Operating cash f
Slide 30: Key Developments
29 Key Developments Company on- track to achieve a production • The Greenfield facility at Raipur is marking steady improvement and the Company capacity remains on track to fully operationalise the plant by March 2021. The facility, with a proposed installed capacity of 7,200 MTPA, is strategically
Slide 31: Key Developments
30 Key Developments • The Company’s newly launched product – water storage tanks has seen strong acceptance in the domestic market and the product contributed to improved sales during the quarter Apollo Life – water storage • In order to address the increased demand for this product, the Company is
Slide 32: Key Financial & Operational Parameters
31 Key Financial & Operational Parameters Product-wise Revenue Breakup Product Revenue (excluding Others Particulars Y-o-Y Y-o-Y segment) Break-up – H1 FY21 Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 (Rs. crore) Shift Shift uPVC Pipes 76.2 66.7 14% 143.4 155.5 -8% Fittings, 16% cPVC Pipes 7.4 5.8 27% 10.8 9.5
Slide 33: Abridged P&L Statement
32 Abridged P&L Statement Particulars (Rs. crore) Q2 FY21 Q2 FY20 Y-o-Y Shift H1 FY21 H1 FY20 Y-o-Y Shift Net Revenue from Operations 123.3 96.5 28% 215.8 213.8 1% Other Income 1.9 2.5 -21% 4.1 4.8 -16% Total Income From Operations (Net) 125.2 98.9 27% 219.9 218.6 1% Total Expenditure 107.8 86.7 24%
Slide 34: Consolidated Balance Sheet
33 Consolidated Balance Sheet As at 30th As at 31st March As at 30th As at 31st Particulars (Rs. Crore) Particulars (Rs. Crore) September 2020 2020 September 2020 March 2020 EQUITY AND LIABILITIES ASSETS Equity Non-current assets (a) Share Capital 13.1 13.1 (a) Tangible Assets 150.4 123.0 (b) Other
Slide 35: Q2 FY21 - Financial Overview and Discussion (YoY)
34 Q2 FY21 - Financial Overview and Discussion (YoY) Total Income from Operations in Q2FY21 higher by 27% at Rs. 125.2 crore • The Company delivered an encouraging and healthy operational and financial performance during the quarter led by an uptick in demand and consumption in the domestic markets
Slide 36: Management's Message
35 Management’s Message “We have reported an encouraging performance during the quarter led by a robust uptick in consumption in the domestic markets. During the quarter, our sales volume grew by 19% to 12,268 MTPA, driven by a healthy contribution from the cPVC, HDPE pipe and value-added Mr. Sameer
Slide 37: Conclusion
36 Conclusion
Slide 38: Key Takeaways
37 Key Takeaways With planned upgradation, Company to exceed 100,000 MTPA capacity by March 2021 Target to achieve 25%+ sales volume growth CAGR over next three years Value-added product categories and new launches to provide impetus to volumes and profitability Increased market presence and improvi
Slide 39: About Us
38 About Us Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipes hold
Slide 40: Thank You
APOLLO PIPING SYSTEMS Made tor lite