Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q3 FY2021 Earnings Presentation
31 slides from Apollo Pipes's earnings presentation, Jan 16, 2021
Slide 1: Q3 & 9M FY21 Earnings Presentation
APOLLO PIPES LTD. Q3 & 9M FY21 EARNINGSPRESENTATION January 16, 2021 www.apollopipes.com
Slide 2: Safe Harbour
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 3: Table of Content
TABLE OF CONTENT 4 Future Outlook 5 5 Year Financial Highlights 6 Q3 & 9M FY21 Highlights www.apollopipes.com 3
Slide 4: Company Overview
COMPANY OVERVIEW www.apollopipes.com 4
Slide 5: Apollo Pipes at a Glance
APOLLO PIPES AT A GLANCE Among the Top 10 leading PVC pipe 1,00,000 MTPA 4 600+ manufactures in India Capacity* as on Manufacturing Channel Partners 31 Dec 2020 Plants 1500+ 14% 19% 29% SKU’s 5-year Sales 5-year Revenue 5-year Net Volume CAGR CAGR Profit CAGR www.apollopipes.com 5
Slide 6: Q3 FY21 at a Glance
Q3 FY21 AT A GLANCE ` 11,445 MT 128Cr. 25.5 Cr. Sales Volume Revenue EBITDA* 7% YoY increase 28% YOY increase 138% YoY increase 16.3 Cr. 58 Days 19% PAT Net WC days Continuous ROCE in 9M 145% YoY increase focus on improving WC cycle FY21 *Business EBITDA www.apollopipes.com 6
Slide 7: Presence Across Sectors
PRESENCE ACROSS SECTORS Apollo Pipes - Key Focus Area www.apollopipes.com 7
Slide 8: Product Portfolio
PRODUCT PORTFOLIO Diversified Basket of 1,000+ Products uPVC Piping System CPVC Piping System uPVC Pipes & Fittings | uPVC Column Pipes | S W R Drainage Pipes | uPVC Pressure Pipes CPVC Pipes & Fittings Well Casing Pipes | Underground Drainage Pipes HDPE Piping System Bath Fittings SOLVENT CEMENT Wat
Slide 9: Success Milestone
SUCCESS MILESTONE 2019 2020-21 • Concluded promoter • Concluded the strategic infusion of Rs. 202 crore acquisition of Kisan throughissuance of Mouldings’ manufacturing Equity Shares and fully unit in Bengaluru convertible warrants on • Successful listing of Preferential basis Company’s shares on NS
Slide 10: Our Environment, Social, Governance and Safety Policy
Our Environment, Social, Governance and Safety Policy www.apollopipes.com 10
Slide 11: Growth Levers
GROWTH LEVERS www.apollopipes.com 11
Slide 12: Key Business Strength
Key Business Strength Catering to multiple sectors – Expanding footprint in India Agriculture, Water Management, Infrastructure Proven expertise in Strong and highly experienced complex projects Management Team Advanced equipment & Multiple and efficient product technology – cost efficient offerings – 1,
Slide 13: Strengthening distribution network across India
Strengthening distribution network across India to Augment presence and improve market penetration Enjoys a dominant and leading presence in North India Extensive distribution network significantly reduces delivery time to 4 8 hours Tapping newer (from 10-12 days) markets to reduce inventory cost fo
Slide 14: Diversified Product Portfolio with total offerings at 1,500+
Diversified Product Portfolio with total offerings at 1,500+, Aiming to achieve 2,500+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri and Ahm edabad • Emphasis on innovation: One of the first companies to launch “Super Lock Syste
Slide 15: Capacity Expansion to aid long-term growth plan
Capacity Expansion to aid long-term growth plan – Target to install 125,000 MTPA by March 2021 1,00,000 MTPA www.apollopipes.com 15
Slide 16: Leverage the 'APL Apollo' brand reach and recall
Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth The ‘APL Apollo’ Brand Edg e enables better reach and product competitiveness • Branding Activities – Sports sponsorship • Principal Sponsor of Pro Kabbaddi League • IPL T V C – Principal sponsor of Delhi Capitals • B
Slide 17: Macro Growth Drivers
MACRO GROWTH DRIVERS www.apollopipes.com 17
Slide 18: PVC Pipe Industry
PVC Pipe Industry The Indian PVC pipes and fittings market expected to register 15% CAGR during FY18 - FY26 • The domestic plastic pipes industry size at ~ ₹ 315B • Organized players account for ~60% market share • Key features of plastic pipes against other pipes - Lightweight - Ease of transportati
Slide 19: At the Forefront of multiple sector trends
At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing • Rehabilitation of aging pipelines • Improving irrigation schemes for and distribution requirements and installation of new pipes in farmers • Water Man
Slide 20: Future Outlook
FUTURE OUTLOOK www.apollopipes.com 20
Slide 21: Focus Areas for FY21-22
Focus Areas for FY21-22 Strengthen Undertake a Register solid Penetrate and Improve Undertake foothold in phase-wise growth in establish utilization at various brand existing capacity volumes – footprint into the existing building markets of expansion at the targeting neighboring manufacturing exerc
Slide 22: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS www.apollopipes.com 22
Slide 23: Financial Trend
Financial Trend 9M FY21 ( C A G R - 19%) (CAGR - 24%) EBITDA (Rs. Cr) EBITDA Margin (%) Re ve n u e ( R s . C r ) 60 15% 16% 14% 14% 374 418 40 13% 13% 14% 301 350 270 12% 51 56 53 209 20 41 12% 24 32 0 10% FY16 FY17 FY18 FY19 FY20 9MFY21 FY16 FY17 FY18 FY19 FY20 9MFY21 (CAGR - 29%) ( C A G R - 14%)
Slide 24: Financial Trend: ROCE, ROE, Net Debt
Financial Trend 9M FY21 ROCE (%) ROE (%) 28.0 26.0 19.0 24.0 24.0 18.0 20.0 16.0 15.0 19.2 11.7 11.6 FY16 FY17 FY18 FY19 FY20 9MFY21 FY16 FY17 FY18 FY19 FY20 9MFY21 Net Debt* (Rs.Cr) Debt/Equity Ratio* (x) 30 34 0.6 20 0.3 0.2 FY16 FY17 FY18 FY19 FY20 9MFY21 FY16 FY17 FY18 FY19 FY20 9MFY21 -29 -0.2
Slide 25: Financial Trend: Working Capital, Cashflow
Financial Trend 9M FY21 Op. Cashflow (Rs. Cr) Net Working Capital (Days) 74 108 65 44 52 35 38 32 30 36 20 20 FY16 FY17 FY18 FY19 FY20 9MFY21 FY16 FY17 FY18 FY19 FY20 9MFY21 Interest Coverage Ratio (x) Debt/EBITDA* (x) 12.1 11.9 1.3 8.0 7.0 7.2 0.8 0.6 4.3 FY16 FY17 FY18 FY19 FY20 9MFY21 FY16 FY17 F
Slide 26: Quarterly Performance
Quarterly Performance Sales Volume (Tons) EBITDA (Rs. Cr) 12,268 11,445 25.5 10,306 10,712 9,721 10,633 15.5 9.7 10.7 10.5 6.2 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 EBITDA/Ton (Rs) PAT (Rs. Cr) 22,267 16.3 10,775 12,657 9.5 9,446 9,962 6.7 5,
Slide 27: Abridged P&L Statement
Abridged P&L Statement INR-Crores Particulars Q3FY20 Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Y-o-Y Shift Q-o-Q Shift S a l es V ol u m e 10,712 9,721 44,692 10,633 12,268 11,445 7% -7% Total I n c o m e F r o m Op e ra ti on s ( N e t ) 100 94.1 408.0 92.5 123.3 128.1 28% 4% Raw Material costs 69.3 65.7 28
Slide 28: Conclusion
CONCLUSION www.apollopipes.com 28
Slide 29: Key Takeaways
Key Takeaways Increased market presence Target to achieve and improving 25%+ sales volume distributor network growth C A G R over to address demand next three years across Leveraging ‘APL Value-added pan-India Apollo’ brand Aiming capacity product categories reach and recall upgradation to the to pr
Slide 30: About Us
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 d ec ad e s of experience in the Indian P i pe Market, Apollo Pipes h
Slide 31: Thank You
THANK YOU www.apollopipes.com