Pokarna Limited · NSE:POKARNA
Pokarna — Q2 FY15 Earnings Presentation
40 slides from Pokarna's earnings presentation, Nov 11, 2014
Slide 1: Cover letter to Bombay Stock Exchange
) POKARNA LIMITED 11.11.2014 Department of Corporate Services, Bombay Stock Exchange Limited, Phiroze Jeebhoy Towers, Dalal Street, Mumbai. Dear Sir, Sub: Q2 & H1 FY15 Results Presentation Ref: Scrip code: 532486 / Pokarna Limited Please find a copy of Q2 & H1 FY15 Results Presentation. This is for
Slide 2: Q2 & H1 FY15 Results Presentation
Q2 & H1 FY15 Results Presentation November - 2014
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 Company Overview 4 Industry Overview 11 Business Overview 20 Pokarna Engineered Stone Limited 24 Q2 & H1 FY15 Financial Performance 32 About us & Investor Contacts 38 3
Slide 5: Company Overview
Company Overview POKARNA LIMITED India’s No.1 granite company
Slide 6: 2014 Fast Facts
Pokarna Ltd Founded 1991 Corporate Headquarters Secunderabad, India Business Segments Granite, Quartz, Apparel Geographical Presence 69 Countries Customers (Granite + Quartz) National, International & Global Independent entities 2014 Fast Facts 5
Slide 7: 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) • PESL exclusive l
Slide 8: 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 9: 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 10: 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 69 R&D countries (Granite + Quartz) • Captive quarries • Deeper penetration Global Integrated Presence Faci
Slide 11: Marquee Projects
Marquee Projects Prestige Neptune’s Prestige Golfshire, Reliant NFL Stadium, Courtyard Bengaluru Houston, USA Radisson Hotel, Flint, Mumbai International Marriott Irvine - USA Michigan, USA Airport (T2) 10
Slide 12: Industry Overview
Industry Overview POKARNA LIMITED India’s No.1 granite company
Slide 13: 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 14: 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 15: 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 16: 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 17: Price Comparison
Price Comparison Price-High Marble Quartz Granite SS Traditional Contemporary Laminate Marble Price-Low 16
Slide 18: 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 19: 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 20: Demand drivers
Demand drivers Export Market US Housing Activity Forecast (‘000) • Revival in US Housing Sector 2014 2015 2016 Total Housing Starts 1,001 1,239 1,544 • Robust demand in the emerging markets Single Family 649 875 1,173 Multifamily 352 364 370 • Improvement in residential, non- New Single Family Sales
Slide 21: Business Overview
Business Overview POKARNA LIMITED India’s No.1 granite company
Slide 22: Granite
Granite - Marriot Court Yard - Hyd
Slide 23: Granite 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 24: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities • Manufacturing Process at state of the art integrated facilities Leading Tile • Captive Quarries – Sourcing of raw material from captive Manufacturing Unit mines rich in diversity • Fully automated production line – Cutting edge technology armed with fully
Slide 25: Pokarna Engineered Stone (Quartz)
Pokarna Engineered Stone (Quartz)
Slide 26: Quartz
Quartz - Avasa Hotels - Hyd
Slide 27: Quartz Overview
Overview • Pokarna Engineered Stone Limited (PESL) – wholly owned subsidiary dedicated towards manufacturing Quartz • Raw Material Sourcing – The State of Telangana and Andhra Pradesh is found to be home to some of the best quality quartz • Exclusive Licensee – Manufacturing of products using patent
Slide 28: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities Breton’s KG 2000 • Exclusive licensee agreement with Breton S.p.A, Slab Polishing Italy; Pokarna is the only Company to use this Line technology in India • Manufacturing process using world renowned BRETONSTONE® SYSTEM, patented technique of Breton S.p.A, It
Slide 29: Apparels
Apparels POKARNA LIMITED India’s No.1 granite company
Slide 30: Stanza
POKARNA LIMITED Stanza
Slide 31: Stanza 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 32: Recap
Recap • India’s leading exporter of finished granite • Integrated Facilities – Captive Quarries • Exclusive Licensee for manufacturing Quartz - BRETONSTONE® SYSTEM • Broad Diversified Product Offerings • World Class R&D and Manufacturing Capabilities • Extensive Domestic and Global Marketing & Distr
Slide 33: Q2 & H1FY15 Financial Results
Q2 & H1FY15 Financial Results
Slide 34: Financial Performance - Standalone
Financial Performance - Standalone Rs. Million Particulars Q2 FY15 Q2 FY14 Shift % H1 FY15 H1 FY14 Shift % Revenues 503.4 415.8 +21.07 932.3 819.2 +13.81 EBITDA 110.5 63.6 +73.74 201.6 100.6 +100.40 Margin (%) 22.0 15.3 +43.79 21.6 12.3 +75.61 EBIT 83.6 39.1 +113.81 140.5 52.0 +170.19 PBT 46.7 13.4
Slide 35: Segment Wise - Performance
Segment Wise - Performance Q2 Q2 Shift H1 H1 Shift Rs. Million Revenue FY15 FY14 % FY15 FY14 % Granite 488 362 +34.81 890 724 +22.93 Apparel 15 53 -71.70 42 94 -55.32 Q2 Q2 Shift H1 H1 Shift Rs. Million EBIT FY15 FY14 % FY15 FY14 % Granite 107 68 +57.35 195 104 +87.50 Apparel -23 -29 -20.69 -54 -52
Slide 36: Balance Sheet
Balance Sheet Rs. Million Unaudited Audited Sources of Funds 30th Sept. 2014 31st March 2014 Share Capital 62 62 Reserves & Surplus 911 877 Shareholders’ Funds 973 939 Long term Debt 555 549 Short term Debt 340 343 Total Debt 895 892 Non current Liabilities 103 109 Total Liabilities 1971 1940 Unaudi
Slide 37: Consolidated performance overview
Consolidated performance overview • H1 FY15 Consolidated revenues improve by 31.43% over H1 FY14 to stand at Rs 1444 million • Q2 FY 15 Consolidated revenues improve by 41.88% over Q2 F.Y. 14 to stand at Rs. 827 million. • Revenues from Engineered Stone business (PESL) up by 82.47% • H1 FY15 EBITDA
Slide 38: Chairman's Comments
Chairman’s Comments Commenting on the performance, Mr. Gautam Chand Jain, Chairman at Pokarna Limited said “We maintained positive momentum in our core business segments during the quarter. Our diversified product portfolio coupled with strong brand connect with our customers resulted in delivering
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 over 69 countries (incl. Granite & Quartz) globally across Europe, Middle East and predominantly North America. The Company processes its granite at two state-of- the-art man