Birlanu Limited · NSE:BIRLANU
Birlanu — HIL — Q3 FY19 Earnings Presentation
37 slides from Birlanu's earnings presentation, Feb 8, 2019
Slide 1: Cover letter: Investors' presentation for quarter and nine months ended December 2018
HIL TOGETHER, WE BUILD. @ K BIRLA GROUP Date: February 8, 2019. To To The Department of Corporate Services -CRD National Stock Exorange of India Limited Bombay Stock Exchange Ltd 5th Floor, ExchangE Plaza P.J.Towers, Dalal Street Bandra (EL MUMBAI- 400001 MUMBAI- 400 05~ Scrip Code: 509675/HIL; Thro
Slide 2: Q3 & 9M FY19 Result Presentation
Q3 & 9M FY19 Result Presentation
Slide 3: Disclaimer
Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to HIL Ltd. (“HIL”, or “Company”) and its future business, development and economic performance. These statements include descriptions regarding the intent,
Slide 4: Strategic Overview
STRATEGIC OVERVIEW NI (ck BIRLA GROUP | HL
Slide 5: CK Birla Group – A Rich legacy
CK Birla Group – A Rich legacy Over US$2.5 billion Present across Conglomerate Five Continents Over 20,000 Focus on Long-term Employees Values, Trust-based Numerous Relationships & Patents & Awards Philanthropy Entwined with modern history of India 4
Slide 6: Flagship Companies of CK Birla Group
Flagship Companies of CK Birla Group 5
Slide 7: HIL Overview
HIL Overview Strong brand equity • Fibre Cement Sheets Dry Wall: • Engineered Wood Flooring • Revolutionary High • Coloured Steel Sheets • Solid Wall Panels Temperature Insulation • Laminate Flooring • C- Boards • Non-asbestos Cement • Flex-O-Boards • Resilient Flooring based Corrugated Sheets • Sma
Slide 8: HIL's Agenda for Growth
HIL’s Agenda for Growth • Established brands • Committed dealership Pedigree • Momentum in margins through sustainable efficiencies • Drive organic expansion Maintaining Innovation • Augment non-roofing portfolio Leadership • Launch research based green solutions Opportunity • Develop adjacent compl
Slide 9: HIL's Strengths
HIL’s Strengths Defined by strong value- system and parentage Driven by Steered by portfolio of experienced high-quality Management leadership brands Complemented Underlined by by wide advanced distribution research and reach for commercialisati products/solutio on capabilities ns Supported by world
Slide 10: The Superbrands
The Superbrands Out of 4,500 existing brands, only 263 brands have been able to secure the ‘Superbrand’ status A Superbrand is a recognition of a brand's commitment to quality and excellence of products and services. Birla Aerocon and Charminar of HIL have been bestowed upon with the status of ‘CONS
Slide 11: HIL a Trendsetter
HIL a Trendsetter Trendsetter in the building material industry by creating new benchmark in Quality, Processes and Products One amongst only three First company in India to companies in the world manufacture autoclaved flat making AC Steel templates. sheets and sandwich panels. Only Company in the
Slide 12: Distribution Spread
Distribution Spread Key competitive advantage Punjab Uttrakhand Delhi • 22 Manufacturing facilities Rajasthan Uttar Pradesh • 39 Sales depots Bihar • 8 sales offices Gujarat Jharkhand West Bengal Madhya Pradesh • 2,500 loyal stockiest/distributors Orissa • 6,500 sub-dealers Maharashtra • Deeper mark
Slide 13: Manufacturing Prowess
Manufacturing Prowess To insert image for building solutions World-class facilities. Transparent operations 12
Slide 14: Vision and Mission
Vision and Mission “To be a leading, global, innovative, and eco-friendly, building and infrastructure solutions company and create sustainable value for our stakeholders” a) To deliver a diversified portfolio of eco-friendly products and solutions fueled by innovation b) To build a strong corporate
Slide 15: Value and Lineage
Value and Lineage Our Values Excellence Innovation Accountability Integrity Respect Teamwork Mr. CK Birla: Business must be conducted with highest standards of excellence, values, respect for the environment and human health. Business is the means to develop a better society and provide care to all.
Slide 16: Awards
Awards Economic Times – Our MD & CEO Kondapalli Factory – Best Balasore plant – MSME Award recognized as Most Promising Greenery Award Business Leader of Asia Asia’s Most Trusted Brand Award Economic Times – Iconic Brand Kondapalli Factory – Best CSR Partner Award 15
Slide 17: Corporate Social Responsibility
Corporate Social Responsibility RENOVATION OF A RESIDENTIAL UNIT AT SARAS KUNJ, JASIDIH UNDER CSR 2018-19 INSTALLATION OF HAND TUBE WELL AT SANTHALI VILLAGE, Jharkhand UNDER CSR 2018-19 16
Slide 18: Parador Now Part of HIL
17 PARADOR NOW PART OF HIL NI (ck BIRLA GROUP | HL
Slide 19: Acquisition Rationale
Acquisition Rationale Global provider of Building Products and Solutions • HIL Limited, acquires Parador Holdings GmbH (“Parador”) for ~ €82.8 million • Transaction provides a compelling value proposition and underscores HIL’s aspiration of one stop shop for all Building Products & Solutions • To en
Slide 20: Parador: Business Overview
Parador: Business Overview Has one factory each in Coesfeld, Parador has been a Germany and partner of the "Plant- Güssing, for-the-Planet" Parador Holdings GmbH, Foundation, which is Austria founded in 1977, is a active worldwide for Germany based, vertically afforestation and For outstanding integ
Slide 21: Parador: Suite of Products
Parador: Suite of Products Laminate Flooring Engineered wood flooring Resilient Floor Covering 20
Slide 22: Parador: Manufacturing Expertise
Parador: Manufacturing Expertise Germany Austria Coesfeld Gussing Key Facts Key Facts Manufacturing of resilient and laminate Manufacturing of engineered wood Facility area: 136k sqm Facility area: 90k sqm Production area: 55k sqm Production area: 15k sqm Employees: 366 Employees: 128 Capacity Utili
Slide 23: Parador: Global Footprint
Parador: Global Footprint Germany Central Europe Rest of Europe Overseas Though the business in Germany is growing faster than the over all economy growth, Central Europe and Overseas business are the main growth drivers in last 4 years 22
Slide 24: A Strong Fit
A Strong Fit Key Strategic Objectives A Unique Proposition Transform towards becoming a global player in Enable HIL’s transition into a global player in Building Material industry Building Materials segment Facilitates entry into Flooring Solutions segment - Evaluate entry into adjacent categories i
Slide 25: Quarterly Discussion
24 QUARTERLY DISCUSSION NI (ck BIRLA GROUP | HL
Slide 26: Highlights of Q3 & 9M FY19 performance
Highlights of Q3 & 9M FY19 performance In Rs. Crore Highlights Revenue* EBITDA# PBT# Continued growth traction in piping solutions backed by 19 13 282 326 30 32 extensive –brand, product range and network. Building on gains in roofing solutions and building solutions Enhanced operating leverage thro
Slide 27: Financial statements – P&L
Financial statements – P&L Rs. Crore Q3 FY18 Q3 FY19 Y-o-Y 9M FY18 9M FY19 Y-o-Y FY18 Total Revenue 285 327 15% 959 1,151 20% 1,349 Total Expenditure 265 314 18% 869 1,018 17% 1,182 EBITDA* 30 32 4% 129 178 38% 171 PBT* 19 13 -31% 90 134 49% 120 PAT 14 7 -51% 61 86 42% 81 EPS 19.14 9.38 81.18 115.04
Slide 28: Results discussion - segmental
Results discussion - segmental Q3 Q3 9M 9M Rs. Crore FY18 FY19 Y-o-Y FY18 FY19 Y-o-Y Revenues Roofing Solutions 160 174 9% 621 685 10% Building Solutions: - Wet Wall 69 83 20% 113 151 34% - Dry Wall 26 29 11% 44 58 31% - Thermal Insulation Materials 10 9 -8% 26 30 19% Others: Pipes & Fittings 13 29
Slide 29: Results discussion
Results discussion Q3 Q3 9M 9M Rs. Crore FY18 FY19 Y-o-Y FY18 FY19 Y-o-Y EBITDA 30 32* 4% 129 178 38% EBITDA Margin 11% 10% -97bps 13% 15% 197bps * EBITDA is lowered during the quarter on account of reversal of Forex gain of Rs.7.5 Crore booked in Q2FY19 on Euro 20 million loan given to wholly owned
Slide 30: Results discussion
Results discussion Q3 Q3 9M 9M Rs. Crore FY18 FY19 Y-o-Y FY18 FY19 Y-o-Y PBT 19 13* -31% 90 134 49% PBT Margin 7% 4% -272bps 9% 12% 224bps * PBT is lowered during the quarter on account of reversal of Forex gain of Rs.7.5 Crore booked in Q2FY19 on Euro 20 million loan given to wholly owned subsidiar
Slide 31: Operational break-up
Operational break-up Q3 Q3 9M 9M Installed Sales Volume (in ‘000) FY18 FY19 FY18 FY19 Capacities Roofing Solutions Fibre Cement Sheets Tons 151 163 584 630 1,080 Coloured Steel Sheets Tons 2 1 6 4 28 Eco-friendly, Non-asbestos Roofing Tons 0 1 0 1 34 Building Solutions AAC Blocks cubic metres 176 17
Slide 32: Charminar Fortune – Non-asbestos, Green Roofing Launched
Charminar Fortune – Non-asbestos, Green Roofing Launched State-of-the-art eco-friendly roofing solution aimed at growing the market Incubated, developed and manufactured, completely in-house. R&D spend of only Rs. 13 crore Offers superior product attributes vis-à-vis complimentary product at competi
Slide 33: Birla Aerocon Pipes and Fitting
Focus on building the brand recall and presence in the most promising business segment Birla Aerocon Pipes and Fitting 32
Slide 34: Message from Managing Director & CEO
Message from Managing Director & CEO Dhirup Roy Choudhary It is great to be addressing you through this communication. We have done quite well for ourselves in Q3, with performance marked by consistency and momentum. With a defined roadmap for driving operating leverage with optimisation of distribu
Slide 35: Outlook
Outlook Growth from leadership roofing business through optimised distribution and stronger marketing Investment in creating opportunities for growth in Pipes & Fittings by way of capacity expansion Focus on driving non-roofing portfolio comprising Building Solutions Launched advanced research based
Slide 36: Contact Us
Contact Us About Us: Founded in 1946 and having completed 70 glorious years HIL Limited is an integral part of a burgeoning marketplace. It is the flagship company of the C K Birla Group, which is a growing US$2.5 billion conglomerate with diversified interests. With over 20,000 employees, 24 manufa
Slide 37: Thank You
36 THANK YOU NI (ck BIRLA GROUP | HL