Pokarna Limited · NSE:POKARNA
Pokarna — Q3 FY15 Earnings Presentation
40 slides from Pokarna's earnings presentation, Feb 13, 2015
Slide 1: Cover letter to Bombay Stock Exchange
13.02.2015 Department of Corporate Services, Bombay Stock Exchange Limited, Phiroze Jeebhoy Towers, Dalal Street, Mumbai. Dear Sir, Sub: Q3 & 9M FY15 Results Presentation Ref: Scrip code: 532486 / Pokarna Limited Please find a copy of Q3 & 9M FY 15 Results Presentation. This is for your record and d
Slide 2: Q3 & 9M FY15 Results Presentation
Q3 & 9M FY15 Results Presentation February - 2015
Slide 3: Safe Harbour
Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the
Slide 4: Table of Content
Table of Content Q3 & 9M FY15 Financial Performance 4 Company Overview 10 Industry Overview 17 Business Overview 26 Pokarna Engineered Stone Limited 30 About us & Investor Contacts 38 3
Slide 5: Q3 & 9MFY15 Financial Results
Q3 & 9MFY15 Financial Results
Slide 6: Financial Performance - Consolidated
Financial Performance - Consolidated Rs. crore Particulars Q3 FY15 Q3 FY14 Shift % 9M FY15 9M FY14 Shift % Revenues 78 53 + 47.0 223 163 + 36.5 EBITDA 25 14 + 75.7 59 34 + 73.3 Margin (%) 32.1 26.9 + 520 bps 26.7 21.0 + 570 bps EBIT 20 9 + 120.1 42 19 + 119.6 PBT* 19 2 + 1,082.1 25 3 + 812.8 PAT 15
Slide 7: Financial Performance - Standalone
Financial Performance - Standalone Rs. crore Particulars Q3 FY15 Q3 FY14 Shift % 9M FY15 9M FY14 Shift % Revenues 44 40 + 9.9 138 122 + 12.5 EBITDA 13 9 + 51.8 33 19 + 77.9 Margin (%) 29.8 21.6 + 820 bps 24.3 15.4 + 890 bps EBIT 11 6 + 69.2 25 11 + 114.9 PBT 7 3 + 118.6 15 4 + 307.7 PAT 5 2 + 118.9
Slide 8: Segment Wise - Performance
Segment Wise - Performance Q3 Q3 Shift 9M 9M Shift Revenue FY15 FY14 % FY15 FY14 % Granite 43 38 +14.3 132 110 +19.9 Rs. Crore Quartz 34 13 +163.0 85 41 +107.9 Apparel 1 3 (50.8) 6 12 (54.8) Demand for natural and engineered stone continues to gain traction across Q3 Q3 Shift 9M 9M Shift geographies
Slide 9: Chairman’s Comments
Chairman’s Comments Commenting on the performance, Mr. Gautam Chand Jain, Chairman of Pokarna Limited said “Performance of our stone businesses continued to remain strong with demand growing at a faster clip. Availability of our extensive and distinctive palette across multiple price points has enab
Slide 10: Recent Developments
Recent Developments Biggest Product launch at Marmomacc • Unveiled 16 exotic Quantra® Quartz Surfaces, largest in the Company’s history at Marmomacc, 2014 at Verona, Italy • Marmomacc is the world’s biggest annual event for the stone industry • ‘Ganges Collection’ - Inspired by naturally occurring p
Slide 11: Company Overview
Company Overview POKARNA LIMITED India’s No.1 granite company
Slide 12: Fast Facts
Pokarna Ltd Founded Corporate Headquarters 1991 Secunderabad, India Business Segments Manufacturing Units Granite, Quartz, Apparel Granite – 2; Quartz – 1, Captive Quarries Geographical Presence Customers 50+ Countries National, International & (Granite + Quartz) Global Independent entities Fast Fac
Slide 13: At a Glance
At a Glance……. GRANITE • India’s largest exporter of finished granite • Integrated Facilities - Captive quarries Color Palette Global Presence • Two state-of-the-art manufacturing units (Countries) • Strong presence in Quartz - Pokarna Engineered Stone Ltd (PESL) (100% Subsidiary) • Global Presence
Slide 14: Our Presence
Our Presence Granite Division – Unit - I Survey No.123, Tooprantpet (Village), Choutuppal (Mandal), Nalgonda (District), Telangana State. Granite Division – Unit - II Survey No. 563, 568 & 574, Aliabad Village, Shameerpet, (Mandal), R.R. District, Telangana State. Apparel Division Survey No: 33,39,5
Slide 15: Global Footprint
Global Footprint Norway Finland United Kingdom Netherland Russia Canada Ireland Germany Belgium Poland Ukraine France Slovakia Slovenia Turkey Switzerland Croatia Korea United States of America Spain Italy Cyprus Jorden Greece Palestine Qatar China Bermuda Lebanon Hong Kong Mexico Puerto Rico Algeri
Slide 16: Strengths
Strengths • Multi-faceted team of Professionals • Undertaking projects; strong product pipeline • Innovative product pipeline – over 3,500 Quartz shades developed in house Strong • Presence in more R&D than 50 countries (Granite + Quartz) • Captive quarries • Deeper penetration Global Integrated Pre
Slide 17: Marquee Projects
Marquee Projects Prestige Neptune’s Prestige Bella Vista, Reliant NFL Stadium, Courtyard Chennai Houston, USA Radisson Hotel, Flint, Mumbai International Marriott Irvine - USA Michigan, USA Airport (T2) 16
Slide 18: Industry Overview
Industry Overview POKARNA LIMITED India’s No.1 granite company
Slide 19: World of Surfaces
World of Surfaces • Surface Industry broadly comprises of – • High Dependence on global building market – Flooring & Carpet – Construction of new properties – Countertops – Renovation of existing properties – Walls Flooring & Carpet Countertops • World Demand expected to rise • Demand for natural-st
Slide 20: Countertops – Poised for Growth
Countertops – Poised for Growth • Market Size – Countertop Industry (Global) is US Countertop Demand 2017 estimated to be at USD 74 bn in sales to end (750 million ft2) consumers, based on average installed price Other Tile Materials Cast 2% 6% • Growth Drivers – Renovation & Remodeling of Polymers
Slide 21: Granite Industry
Granite Industry • One of the most traditional materials used as countertop • India accounts for over 20% of the world resources in granite • Characteristics – – Hard – Durable – Resistant to damage from heat, stains & scratches • Primary area of operations – Home building & remodeling, especially r
Slide 22: Engineered Stone /Quartz
Engineered Stone /Quartz • One of the hardest and most abundant natural minerals available in the world • Product Composition – – 93% Quartz particles – 7% binding resins and additives • Fastest growing surfaces category (‘99 –’12) – Quadrupled global market share – 15.8% CAGR growth rate • Characte
Slide 23: Price Comparison
Price Comparison Price-High Marble Quartz Granite SS Traditional Contemporary Laminate Marble Price-Low 22
Slide 24: Quartz as a countertop
Countertop Sales Growth Rates, Quartz vs. Overall Industry, Globally* Quartz as a countertop Countertop Sales Growth Rates, Quartz vs. Overall Industry, Globally 16.4% • Faster than industry growth rate – 16.4% CAGR growth 9.0% rate (1999-2010) on an installed basis globally vis-à-vis 4.4% 3.5% 4.4%
Slide 25: Why Quartz?
Countertop Sales Growth Rates, Quartz vs. Overall Industry, Globally* Why Quartz? • Superior physical attributes relative to other countertop materials key driver of rapid growth • Available in wide array of colors and provides ease of fabrication • Key Physical attributes • Outlook – – Demand for n
Slide 26: Demand drivers
Demand drivers Export Market Domestic Market • Revival in US Housing Sector • Indian real estate sector is one of the fastest growing and globally recognized • Robust demand in the emerging markets sectors • Improvement in residential, non-residential • Ranks Third, for the most LEED (Leadership bui
Slide 27: Business Overview
Business Overview POKARNA LIMITED India’s No.1 granite company
Slide 28: Granite
Granite - Marriot Court Yard - Hyd
Slide 29: Overview
Overview • Pokarna Ltd. – One of the India’s largest exporter of finished granite • Backward Integrated - Sourcing Majority of raw material from captive quarries. • Captive quarries rich in resources – Home to some of the most sought after colors Black Galaxy Steel Grey Coffee Brown Pokarna Green Fl
Slide 30: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities • Manufacturing Process at state of the art integrated facilities • Captive Quarries – Sourcing of raw material from captive mines rich in diversity • Fully automated production line – Cutting edge technology armed with fully computer-controlled high speed p
Slide 31: Pokarna Engineered Stone Limited (Quartz)
Pokarna Engineered Stone Limited (Quartz)
Slide 32: Quartz
Quartz - Avasa Hotels - Hyd
Slide 33: Overview
Overview • Pokarna Engineered Stone Limited (PESL) – wholly owned subsidiary dedicated towards manufacturing Quartz • Raw Material Sourcing – The State of Telangana and Andhra Pradesh are found to be home to some of the best quality quartz • Manufacturing of products using patented Bretonstone® Tech
Slide 34: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities • Fully automated production line • Advantages of Bretonstone® Technology • Best in business technology - Bretonstone® – Final product guarantees an optimum “indoor System of Breton S.p.A, Italy life quality” • Sourcing of Raw Material - Tie-up with some of
Slide 35: Apparels
Apparels POKARNA LIMITED India’s No.1 granite company
Slide 36: Stanza
POKARNA LIMITED
Slide 37: Overview
Overview • Launched in 2004, Stanza focuses on premium product / lifestyle brand category for men • Experienced Management / Promoters – Largest distributor of Raymond Ltd – Successfully turned around two sick units • Range of products include – – Formal & Dress Shirts – Smart Casual & Sport Shirts
Slide 38: Recap
Recap • India’s leading exporter of finished granite • Integrated Facilities – Captive Quarries • Licensee of BRETONSTONE® SYSTEM for manufacturing Quartz • Broad Diversified Product Offerings • World Class R&D and Manufacturing Capabilities • Extensive Domestic and Global Marketing & Distribution P
Slide 39: About Us & Investor Contacts
About Us & Investor Contacts POKARNA LIMITED India’s No.1 granite company
Slide 40: About Us
About Us Pokarna Limited, headquartered in Secunderabad, is the largest exporter of finished granite in India with exports to more than 50 countries (incl. Granite & Quartz) globally across Europe, Middle East and predominantly North America. The Company processes its granite at two state-of-the-art