Venus Pipes & Tubes Ltd. · NSE:VENUSPIPES
Venus Pipes & Tubes — Q4 FY24 Earnings Presentation
37 slides from Venus Pipes & Tubes's earnings presentation, May 9, 2024
Slide 1: Exchange filing cover letter for Q4 FY24 investor presentation
Date: 09/05/2024 To, Listing Department Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbol: VENUSPIPES Scrip Code: 5
Slide 2: Venus Pipes & Tubes Limited Investor Presentation May 2024
VENUS PIPES & TUBES LIMITED Investor Presentation May 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Venus Pipes & Tubes Limited
Venus Pipes & Tubes Limited Vision Mission Core Values Making ourselves as first reference and preference To provide quality and flawless service for Working with the highest ethical standards in in stainless steel pipes and tubes manufacturer dealing with customer / supplier and distributors all as
Slide 5: Q4 & FY24 Operational & Financial Highlights
Q4 & FY24 Operational & Financial Highlights Revenue EBITDA PAT Rs. 224.1 Crores Rs. 45.0 Crores 20.1% Rs. 25.0 Crores 11.2% Q4FY24 27.1% 108.6% +785 bps 86.4% +355 bps Rs. 802.2 Crores Rs. 146.3 Crores 18.2% Rs. 85.9 Crores 10.7% FY24 45.2% 111.7% +570 bps 94.3% +270 bps ✓ During the quarter, the c
Slide 6: Capex Update: Foraying into Fittings Solutions
Capex Update 1 : Foraying into Fittings Solutions Expanding offerings to include comprehensive range of fittings solutions Building on our reputation and execution track record, we are diversifying our product portfolio to encompass a wide selection of fittings , leveraging our expertise to provide
Slide 7: Fitting Project – Key Highlights
Fitting Project – Key Highlights 1 2 Product Range Material Expertise Wide range of fittings such as We will work with various elbows, tees, reducers, joints, metals to ensure flanges etc. designed to meet the compatibility with the specific requirements of different substances being transported ind
Slide 8: Capex Update: Value added Welded Tubes
Capex Update 2 : Value added Welded Tubes Description Details Impact Introducing a specialised product line of stainless and titanium welded tubes Value Added Product Line Capacity Expansion aimed at enhancing our competitive edge and profitability These specialized tubes represent critical innovati
Slide 9: Financial Contours
Financial Contours Phase 1 Phase 2 Funding Fittings, Seamless & Project Details Fittings & Welded Tubes Welded – Pipes / Tubes Project Cost Rs 115 Crores Rs 60 Crores ~40% In form of warrants to be issued to Promoters & others Margins (%) High teens High teens Similar to current asset Similar to cur
Slide 10: Q4 & FY24 Financial & Operational Highlights
Q4 & FY24 FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 11: Revenue Split across Segment – Q4 & FY24
Revenue Split across Segment – Q4 & FY24 Seamless (in ₹ Cr) Welded (in ₹ Cr) Others (in ₹ Cr) Total (in ₹ Cr) +87% +24% -46% +45% 459.7 313.2 53.9 802.2 252.5 -57% 552.4 246.0 29.3 +28% +65% 25.3 +27% 124.0 89.2 224.1 97.0 54.1 10.9 176.3 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24
Slide 12: Revenue Split across Geographies – Q4 & FY24
Revenue Split across Geographies – Q4 & FY24 Domestic (in ₹ Cr) Exports (in ₹ Cr) Total (in ₹ Cr) +35% +231% +45% 703.5 98.7 802.2 522.6 552.4 +20% +113% +27% 196.8 27.3 29.8 224.1 163.5 176.3 12.8 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 7% 5% 12% 12% Q4 FY23 Q4 FY24
Slide 13: Product Category Split
Product Category Split Revenue (in ₹ Cr) Volume (in MTS) +24% +49% 313 11,557 • Volume for Welded Pipes stood at 11,557 253 MTPA for FY24, an increase of 49% with Welded 7,757 corresponding revenue increase of 24% for the same period on account of decrease in commodity prices FY23 FY24 FY23 FY24 +87
Slide 14: Key Financial Highlights – Q4 & FY24
Key Financial Highlights – Q4 & FY24 Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +45% +112% +94% 802.2 146.3 85.9 552.4 +27% +109% 69.1 +86% 44.2 224.1 45.0 25.0 176.3 21.6 13.4 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Gross Profit Margin EBITDA Margin PAT Margin
Slide 15: Profit & Loss Account
Profit & Loss Account Profit and Loss (in ₹ Cr) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 224.1 176.3 27.1% 207.1 8.2% 802.2 552.4 45.2% Cost of Goods Sold 153.2 143.5 146.5 575.3 444.6 Gross Profit 70.9 32.7 116.5% 60.6 17.0% 226.9 107.8 110.5% Gross Profit Margins
Slide 16: Balance Sheet
Balance Sheet Assets (in ₹ Cr) Mar-24 Mar-23 Equity & Liabilities (in ₹ Cr) Mar-24 Mar-23 Non - Current Assets 302.2 206.6 Total Equity 406.1 322.2 Property Plant & Equipment 281.0 59.8 Share Capital 20.3 20.3 CWIP 12.1 121.6 Reserves & Surplus 385.8 301.9 Intangible assets 0.9 0.1 Non-Current Liabi
Slide 17: Cashflow Statement
Cashflow Statement Particulars (in ₹ Cr) FY24 FY23 Net Profit Before Tax 115.6 59.7 Adjustments for: Non - Cash Items / Other Investment or Financial Items 29.8 7.1 Operating profit before working capital changes 145.4 66.8 Changes in working capital -73.1 -39.4 Cash generated from Operations 72.3 2
Slide 18: Key Return Ratios
Key Return Ratios ROE Debt / Equity Ratio ROCE 25% 0.5 35% 31% 31% 21% 21% 0.4 0.3 FY22 FY23* FY24 FY22 FY23 FY24 FY22 FY23^ FY24 ROE = PAT / Shareholder’s Equity D/E = Total Debt / Shareholder’s Equity *Excluding Rs. 107.9 crores raised via IPO for Capacity expansions 17 ROCE = EBIT / Tangible Net
Slide 19: Management Commentary
Management Commentary Commenting on the Q4 & FY24 performance of the company Mr. Arun Kothari, Managing Director for Venus Pipes & Tubes Limited Said, We are delighted to conclude this fiscal year on a high note, showcasing exceptional financial performance. Our revenues have surged to Rs 802.2 Cr,
Slide 20: Product Portfolio & Applications
Product Portfolio & Applications Products manufactured are as per the International Standards to cater both Domestic & International markets Stainless Steel High Precision and Stainless Steel Hydraulic and Stainless Steel Seamless Pipes Stainless Steel Welded Pipes Stainless Steel Box Pipes Heat Exc
Slide 21: Diversified End Use
Multiple End User Industry Diversified End Use Chemical Engineering Fertilizers Pharmaceutical Power Food Processing Paper Oil & Gas Aerospace 20
Slide 22: State of the Art Infrastructure
State of the Art Infrastructure… Strategically located Manufacturing facility at Dhaneti (Kutch) within proximity of Kandla & Mudra ports for enabling imports and exports Facility on a land measuring 1,24,037 Sq. Mt. 21
Slide 23: Stringent Quality Inspection & Testing
…with Stringent Quality Inspection & Testing Rigorous testing system for our products to Ensure Finest Quality is delivered for our products Tensile Test Hydro-static Test Quality Tests Hardness Test Eddy Current Test Non-Destructive Tests Destructive Tests IGC Test Air under Water Test Reverse-bend
Slide 24: Marquee Clientele
Marquee Clientele >> GC «& Q CJ = : y N NAYARA Reliance [riveni GION CHANCE BL wouresTons TD & TITAGARH Industries Limited O) ames — adani Tap | Bail 3p ajanta pharma asianpaints GAIL (India) Limited PATANJALD, INDIA LIMITED emami UTURE POSITIVE Bharat Soger Fes rensne Comoe | emami agrotech Itd. se
Slide 25: Awards & Certifications
Awards & Certifications Calendar Years Certifications & Accreditations Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 9001: 2015 & ISO 2016 14001:2015 requirements 2017 Our Company has been verified and recognized as
Slide 26: Experienced Board of Directors
Experienced Board of Directors Arun Kothari Jayantiram M Choudhary Megharam S Choudhary Dhruv M Patel Chairman & Managing Whole Time Director Whole Time Director Whole Time Director Director Associated with the Company since 2021 as Associated with the Company since its Associated with our Company s
Slide 27: Strong Management Team
Strong Management Team Arun Kothari Jayantiram M Choudhary Megharam S Choudhary Dhruv M Patel Chairman & Managing Whole Time Director Whole Time Director Whole Time Director Director Associated with the Company since Associated with the Company since Associated with our Company Associated with the C
Slide 28: Strategies to Support Growth
STRATEGIES TO SUPPORT GROWTH
Slide 29: Capacity Expansion & Backward Integration
Capacity Expansion & Backward Integration Capacity Expansion for Finished Products (MTPA) Completed Capacity Expansion 3.2x Previous Current 38,400 Particulars ~5x Capacity Expansion Size (mm) Capacity Size (mm) Capacity 24,000 Seamless 6 – 114.3 3,600 MTPA 6 – 219.3 14,400 MTPA Welded 6 – 219.3 8,4
Slide 30: Geographical Expansion
Geographical Expansion Exports in More than 20+ Countries Contribution from Export Revenue (In Crs) 12.3% 10.5% 99 5.4% 4.8% 40 3.4% 30 15 6 FY20 FY21 FY22 FY23 FY24 Increase in Capacity Value Added Products Strong Dealership Network Geographical Expansion 29
Slide 31: Key Takeaways
Key Takeaways Capacity Expansion Geographical Expansion Brand Value Expanding our existing manufacturing capacity for welded We intend to leverage our existing relationships We intend to make consistent efforts to pipes/tubes (including titanium grade) and seamless to further deepen our presence in
Slide 32: Historical Financial Highlights
HISTORICAL FINANCIAL HIGHLIGHTS
Slide 33: Key Historical Financials
Key Historical Financials Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) 802 146 86 +46% 552 +88% +114% 387 69 44 309 49 32 178 35 24 12 4 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Gross Profit Margin EBITDA Margin PAT Margin 28.3% 18.2% 10.7% 7.6% 8.2% 8.0% 18.6%
Slide 34: Historical Profit & Loss Account
Historical Profit & Loss Account Profit and Loss (in ₹ Cr) FY24 FY23 FY22 FY21 FY20 CAGR Revenue from Operations 802.2 552.4 386.9 309.3 177.8 45.7% Cost of Goods Sold 575.3 444.6 315.0 261.5 157.0 Gross Profit 226.9 107.8 71.9 47.9 20.8 81.7% Gross Profit Margins (%) 28.3% 19.5% 18.6% 15.5% 11.7% 1
Slide 35: Historical Balance Sheet
Historical Balance Sheet Assets (in ₹ Cr) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in ₹ Cr) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Non - Current Assets 302.2 206.6 30.4 20.9 17.5 Total Equity 406.1 322.2 128.5 39.9 16.3 Share Capital 20.3 20.3 15.2 8.7 8.7 Property Plant & Equipments 281
Slide 36: Historical Abridged Cash Flow Statement
Historical Abridged Cash Flow Statement Particulars (in ₹ Cr) FY24 FY23 FY22 FY21 FY20 Net Profit Before Tax 115.6 59.7 42.9 31.0 6.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 29.8 7.1 5.6 5.1 4.1 Operating profit before working capital changes 145.4 66.8 48.5 36.1 10.6
Slide 37: Thank You
Thank You Venus Pipes & Tubes Limited CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna ( Chief Financial Officer ) cs@venuspipes.com Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Mr. Ayush Haria sagar.shroff@sgapl.net / ayush.haria@sgapl.net +91 98205 19303 / +91