Aeron Composite Limited · NSE:AERON
Aeron Composite — H1 FY2025 Earnings Presentation
36 slides from Aeron Composite's earnings presentation, November 2024
Slide 1: Aeron Composite Limited Investor Presentation
AERON COMPOSITE LIMITED Advanced Composite solutions 1 For sustainable future Investor Presentation November 2024 https://www.aeroncomposite.com
Slide 2: Table of Content
Table of Content Business Overview & 01 Financials 4-18 02 Strategic Updates 19-26 03 Performance Snapshot 26-30 03 Annexures 31-35 HTTPS://WWW.AERONCOMPOSITE.COM 2
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by and is the sole responsibility of Aeron Composite Limited. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducement to sell
Slide 4: Business Overview & Financials
Business Overview & Financials https://www.aeroncomposites.com 4 https://www.aeroncomposite.com
Slide 5: Aeron - Leading the Future of Composite Solutions
AERON - LEADING THE FUTURE OF COMPOSITE SOLUTIONS Business Summary Financial Highlights (During the FY 2023-24) Established in 2011, manufactures and Rs 200 Cr Rs 15.5 Rs 10.1 supplies Fiber Glass Reinforced Cr Cr Polymer (FRP) products Revenue EBITDA PAT The range of FRP products includes Pultruded
Slide 6: FRP (Fiber-reinforced polymer)
FRP (Fiber-reinforced polymer) Providing long lasting and new age ‘GREEN’ solution to aging Infrastructure 6 https://www.aeroncomposite.com
Slide 7: Pioneering Excellence: Among India's Largest Composite Providers
PIONEERING EXCELLENCE: AMONG INDIA'S LARGEST COMPOSITE PROVIDERS FIBER GLASS REINFORCED FRP Rods FRP Moulded POLYMER PULTRUDED Gratings PRODUCTS Applications: In industrial structures, utility Applications poles, railway structures, chemical processing Provides support and Applications - Flooring, w
Slide 8: Advantages of FRP/GRP/Fiberglass
ADVANTAGES OF FRP/GRP/FIBERGLASS Electrical Non Corrosion/ High Strength Light Weight Conductivity Chemical Resistance Thermal Non EMI/RFI Ease of Low Life Conductivity Transparent Fabrication Cycle Cost Less Termite Flame Environmental Proof Retardant Impact 8 https://www.aeroncomposite.com
Slide 9: Comparison with Conventional Materials
COMPARISON WITH CONVENTIONAL MATERIALS Aeron FRP Steel Aluminium Timber Corrosion High Low Medium Low Resistance Strength High High High Low Weight Low High Low Medium Electrical Low High High Moderate Conductivity Thermal Very Low High High Low Conductivity EMI/RFI Yes No No Yes Transparency Fabric
Slide 10: Leading to Diverse Application Portfolio
LEADING TO DIVERSE APPLICATION PORTFOLIO Aeron Composite Ltd. boasts a diverse application portfolio, serving a wide range of industries including telecommunications, oil & gas, and renewable energy. The company's ability to tailor its FRP solutions to specific industry requirements demonstrates its
Slide 11: Serving International and Domestic Clients
SERVING INTERNATIONAL AND DOMESTIC CLIENTS 11 https://www.aeroncomposite.com
Slide 12: Strong Industry Tailwinds
STRONG INDUSTRY TAILWINDS India's composite sector is experiencing rapid growth, positioning the country favorably in the global market Global Fiber Reinforced Polymer Indian Fiber Reinforced Polymer Composites (FRP) Composites (FRP) (in Billions) (in Billions) 2022 2032 2021 2026 1.9 1 0% 447.3 . 3
Slide 13: Creating Superior Shareholder Value (1/2)
CREATING SUPERIORS SHAREHOLDER VALUERevenue (1/2) EBITDA Profit after Tax 16 200 10 179 10 7 108 79 6 6 4 3 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Export vs Domestic Net Profit Ratio ROCE Exports Domestic 32.2% 5.1% 28.0% 48% 44% 64% 3.7% 20.0% 21.0% 65% 3.2% 3.3% 52% 56% 36% 35
Slide 14: Creating Superior Shareholder Value (2/2)
CREATING SUPERIORS SHAREHOLDER VALUE (2/2) Working Capital Days Net Debt Ratios Receivable days Inventory Days Payable Days 88 84 1.95 81 76 74 74 72 68 65 63 1.47 60 53 1.23 0.43 898 1,167 1,204 674 FY21 FY22 FY23 FY24 Net debt (INR Lakhs) 14 https://www.aeroncomposite.com
Slide 15: Strengthening Balance Sheet
STRENGTHENING BALANCE SHEET Debt Equity Ratio 0.86x 0.81x 0.55x 0.33x FY 2021 FY 2022 FY 2023 FY 2024 15 https://www.aeroncomposite.com
Slide 16: Maintaining Strong Margins
MAINTAINING STRONG MARGINS 22.2% 33.2% 32.3% 21.7% 20.4% 32.2% 17.9% 27.5% 26.2% 23.5% 21.0% 20.0% 7.8% 7.8% 5.5% 5.5% 5.1% 3.2% 3.7% 3.3% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Gross Margin EBITDA margin PAT Margin ROE ROCE 16 https://www.aeroncomposite.com
Slide 17: Competitive Advantages
COMPETITIVE ADVANTAGES Diversified Market, Revenue Diverse range of Fiber Glass Branding and from various countries Reinforce Polymer Products promotional activities across the Globe Aeron’s diversified global Aeron manufactures a diverse Aeron’s increased branding and presence, with significant rev
Slide 18: Strategic Priorities
STRATEGIC PRIORITIES 01 02 03 04 Continue to Setup of new Augmenting Continue to strengthen our integrated growth in invest in existing product manufacturing domestic and R&D portfolio and unit global markets capabilities diversify into new product lines Currently in the Market products to Dedicated
Slide 19: Aeron – USPs and Strategic Priorities
Aeron – USPs and Strategic Priorities 19 https://www.aeroncomposite.com
Slide 20: Aeron - Integrated Business Model
AERON - INTEGRATED BUSINESS MODEL Vertically Customer Centric Sustainability and Integrated Approach Longevity Focus Strong Integrate You can edit this Technical d Quality text Expertise Control FRP Rods Resin Fully Integrated Manufacturing FRP Mouldings Glass Fibers Plant with State-of-the-Art Tech
Slide 21: Excels in Production of FRP Products
EXCELS IN PRODUCTION OF FRP PRODUCTS Raw Materials Pultrusion Process o Resin System o Glass Mat Support o Polyester Fibres Framework Heated o Vinyl Ester o Other Fibre Infeed Pultrusio Additives formation andn Die (VE) impregnation o Epoxy (EP) Main Control Roving Creel Pendant Stand Twin Resin rec
Slide 22: State of the Art Manufacturing Facilities - Upgrading
STATE OF THE ART MANUFACTURING FACILITIES - UPGRADING Installed Capacity Actual Production Capacity Utilization (in Mt) (in Mt) (in %) 18,845 61.3 11,555 16,503 54.0 14,550 14,550 8,906 43.5 6,330 31.4 4,570 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 22 https://www.aeroncomposite.co
Slide 23: New Products Pipeline
NEW PRODUCTS PIPELINE The Company’s new product line will be started in this new manufacturing unit FRP Carbon Rebar Fiber Products Timeline- Product introduced by the end of FY 2025 Product introduced by mid of FY2026 Use Cases- Approved by material quality check Auto/Railways, Custom Parts, Windmi
Slide 24: Competitive Products for Exports
COMPETITIVE PRODUCTS FOR EXPORTS Revenue from Domestic and Exports (in Cr) 109.5 At the close of FY 93.1 2024, the company 84.6 87.5 generated 70.1 approximately 82.7%, 85.8%, 90.7%, and 49.8 85.8% of its total revenue from sales in 37.3 28.4 its top five markets: India, USA, Australia, UK, and Qata
Slide 25: Strong Future Growth
STRONG FUTURE GROWTH 15%+ Key Drivers Revenue Through strategic alliances with top industry players and research institutions, Aeron Composite enhances its R&D Growth capabilities, fostering continuous technological advancements (3 Years The burgeoning demand for lightweight, high-performance CAGR)
Slide 26: Performance Snapshot
Performanc e Snapshot 26 https://www.aeroncomposite.com
Slide 27: Key Performance Indicators
KEY PERFORMANCE INDICATORS (In ₹Cr except percentages and ratios) Key Financial FY 21 FY 22 FY 23 FY24 H1FY25 Performance Revenue from operations 78.8 108.3 179.4 199.7 107.9 EBITDA (excluding other 6.1 6 9.8 15.5 9.9 income) EBITDA Margin 7.8% 5.5% 5.5% 7.8% 9.2% PAT 2.6 3.6 6.6 10.1 6.7 PAT Margin
Slide 28: Profit & Loss for H1FY25
PROFIT & LOSS FOR H1FY25 Particulars H2FY24 H1FY24 H1FY25 YoY Revenue from operations 117.7 82.1 107.9 Other income 1 0.9 2.3 Total Income 118.7 83 110.2 32.8% Cost of materials consumed 71.7 57.7 66.3 Changes in inventories of finished goods, work-in- (1.7) (7.2) (3.1) progress and stock-in-trade E
Slide 29: Assets and Liabilities as of H1FY25
ASSETS AND LIABILITIES AS OF H1FY25 H1FY2 H1FY2 Particulars FY 21 FY 22 FY 23 FY24 Particulars FY 21 FY 22 FY 23 FY24 5 5 Equity and Non Current assets Liabilities Shareholders’ funds PPE & intangibles 7.9 7.5 9.6 21.8 28.2 a. Share capital 1.3 1.3 1.6 1.6 17 Long term loans and b. Reserves and 0.9
Slide 30: Statement of Profit & Loss
STATEMENT OF PROFIT & LOSS Particulars FY21 FY22 FY23 FY24 Revenue from operations 78.8 108.3 179.4 199.7 Other income 0.2 1.6 2.6 2.0 Total Income 79.1 109.9 182.0 201.7 Cost of materials consumed 48.4 82.0 122.1 129.4 Changes in inventories of finished goods, work-in- 0.9 (7.3) 2.8 (8.8) progress
Slide 31: Annexure
Annexure 31 https://www.aeroncomposite.com
Slide 32: Meet the Doers and Builders
MEET THE DOERS AND BUILDERS Dilipkumar Ratilal Chirag Chandulal Pankaj Shantilal Ravi Pankajkumar Patel Patel Dadhaniya Patel Chairman & Non- Managing Director Whole Time Whole Time Executive Director Over 14 years of Director Director 45+ years of experience, experience, he oversees MBA graduate wi
Slide 33: Story So Far
STORY SO FAR Started Moved to IPO: Productio new - Conversion of n of manufacturi Recognition the Company Moulded ng unit. by from Private Gratings Significant Department Limited to Executed increase in of Scientific Public first the capacity and Limited Incorporatio Started Export of Industrial Com
Slide 34: Quality & System Certifications
QUALITY & SYSTEM CERTIFICATIONS GOV. RECO. RoHS ISO 9001:2015 CE REACH EXPORT HOUSE 34 https://www.aeroncomposite.com
Slide 35: Branding and Promotional Activities
BRANDING AND PROMOTIONAL ACTIVITIES AIA Expo, 2024 ChemTech Mumbai, 2024 https://www.aeroncomposites.com Dahej Indusrial Expo, 2023 IFAT Mumbai, 2023 35 https://www.aeroncomposite.com
Slide 36: For further information, please contact
Aeron Composite Limited Tel: +91-9909988266 Email: cs@aeroncomposite.com www. aeroncomposite.com https://www.aeroncomposites.com 36 For further information, please contact +91 22 62640831 Sakshi Katoch www.goindiaadvisors.com Email: sakshi@goindiaadvisors.com https://www.aeroncomposite.com