Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q4 FY2019 Earnings Presentation
45 slides from Apollo Pipes's earnings presentation, May 25, 2019
Slide 1: BSE filing letter: Result Presentation
APOLLO® ‘Iuhu for Every Roam May 28, 2019 ELECTRONIC FILING THROUGH BSE LISTING CENTER To Department of Corporate Services/Listing Department BSE Limited P. J. Towers, Dalal Street, Mumbai - 400001 (SCRIP Code: 531761) E: Intimation under Regulation 30 of Securities and Exchange Board of India {List
Slide 2: Apollo Pipes Ltd. Q4 & FY19 Result Presentation
APOLLO PIPES LTD. Q4 & FY19 Result Presentation May 25, 2019
Slide 3: Safe Harbour
2 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 4: Table of Content
3 Table of Content Q4 & FY19 Highlights 1 Company Overview 2 Strategic Growth Pillars 3 Financial Highlights 4 Key Focus Areas 5 Annexure 6
Slide 5: Operational & Financial Highlights Q4 & FY2019
4 Operational & Financial Highlights Q4 & FY2019
Slide 6: Established a strong base in FY2019
5 Established a strong base in FY2019 Sales Volume Revenue EBITDA PAT ROCE (18% y-o-y growth) (28% y-o-y growth) (25% y-o-y growth) (8% y-o-y growth) Available Capacity Net Working Capital Net Debt as on 31st Products Dealers & Distributors Days March 2019 – Increased by more than Debt free Company
Slide 7: Q4 FY19 snapshot
6 Q4 FY19 snapshot Sales Volume Revenue EBITDA PAT (11% y-o-y growth) (20% y-o-y growth)
Slide 8: Cash flows and balance sheet
7 Cash flows and balance sheet EBITDA and Operating cash flow (Rs. Cr) EBITDA Operating Cash Flow 51 41 32 34 24 22 19 18 8 -8 FY2015 FY2016 FY2017 FY2018 FY2019 ROE (%) ROCE (%) 28.0% 25.0% 26.0% 24.0% 24.0% 18.0% 19.0% 16.0% 15.0% 13.0% FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY201
Slide 9: Cash flows and balance sheet
8 Cash flows and balance sheet Debt to EBITDA (ratio) Total debt (Rs. Cr) 41 4.9 30 34 20 -35 1.2 FY2015 FY2016 FY2017 FY2018 FY2019 0.6 0.8 -0.7 FY2015 FY2016 FY2017 FY2018 FY2019 Net working capital cycle Debt to Equity (no of days) 0.9 134 0.6 0.3 0.2 54 51 48 48 -0.2 FY2015 FY2016 FY2017 FY2018
Slide 10: Key Developments
9 Key Developments Board of • Strategic acquisition enables Apollo Pipes to jump-start its plan to establish PAN-India presence Directors approve − Brand recall of group among distributors and customers is very strong in the southern markets acquisition of and is synonymous with high-quality and rel
Slide 11: Key Developments
10 Key Developments • Infusion of Rs. 202 crore by Promoters has been concluded through issuance of Equity Shares and fully convertible warrants on Preferential basis. The details of the allotment are as follows Promoters − 950,000 Equity shares issued at an issue price of Rs. 590 per share complete
Slide 12: Key Developments
11 Key Developments • The Company is undertaking a phase-wise capacity expansion at the existing facilities of Dadri and Ahmedabad over the next few quarters Capacity − To expand Dadri capacity by 7,000 tonne to 60,000 tonne; Ahmedabad facility to be expansion plans expanded by 5,000 tonne to 15,000
Slide 13: Key Developments
12 Key Developments During the year, • New product portfolio of Plastic Taps, Showers, Faucets & accessories have received positive response Apollo Pipes from the market – the Company is targeting rapid market share gain in this premium and high margin product category launched a new products in the
Slide 14: Key Developments
13 Key Developments • The Company‟s future growth strategy focused towards improving utilization levels at the existing manufacturing plants Future growth strategy focused − To first develop new territories in East and Central Indian by catering to demand through already towards established faciliti
Slide 15: Key Financial & Operational Parameters
14 Key Financial & Operational Parameters Product-wise Revenue Breakup Particulars (Rs. Y-o-Y Y-o-Y Q4 FY19 Q4 FY18 FY19 FY18 crore) Shift Shift uPVC Pipes 61.9 55.6 11% 269.1 224.0 20% Product Revenue (excluding cPVC Pipes 4.7 2.9 61% 13.5 8.8 54% Others segment) Break-up –FY19 HDPE Products 6.1 4.
Slide 16: Abridged P&L Statement
15 Abridged P&L Statement Particulars (Rs. crore) Q4 FY19 Q4 FY18 Y-o-Y Shift FY19 FY18 Y-o-Y Shift Net Revenue from Operations 89.4 74.4 20% 361.8 284.5 27% Other Income 2.9 6.2 -53% 12.1 8.1 49% Total Income From Operations (Net) 92.4 80.6 15% 373.9 292.6 28% Total Expenditure Raw Material expense
Slide 17: Balance Sheet
16 Balance Sheet As at 31st As at 31st As at 31st As at 31st Particulars (Rs. Crore) Particulars (Rs. Crore) March 2019 March 2018 March 2019 March 2018 I. ASSETS EQUITY AND LIABILITIES Non-current assets Equity (a) Property, Plant and Equipment 94.9 57.7 (a) Equity Share Capital 12.0 11.0 (b) Capit
Slide 18: Financial Overview and Discussion (YoY)
17 Financial Overview and Discussion (YoY) Total Income From Operations (Net) during FY19 stood at Rs. 374 crore, registering a strong increase of 28% Y-o-Y; Q4 FY19 Total Income From Operations (Net) higher by 15% to Rs. 92 crore • The Company registered a healthy total sales volume growth of 18% i
Slide 19: Management's Message
18 Management’s Message “We have ended the fiscal on a strong note despite macro-economic challenges, especially Mr. Sameer Gupta, in our key product category of uPVC. In FY2019, our sales volume grew by 18% to 39,823 MTPA - the growth was primarily driven by strong demand from HDPE products Managin
Slide 20: Outlook for FY20
19 Outlook for FY20 Penetrate and establish footprint Strengthen foothold in existing into neighboring markets in Central markets of North and Western India and Eastern India Undertake a phase-wise capacity expansion at the existing facilities Improve utilization at the existing over the next few qu
Slide 21: Company Overview
20 Company Overview
Slide 22: One of the leading PVC pipe manufacturers
21 One of the leading PVC pipe manufacturers MTPA - Available Presence in Global Among the fastest turnover Capacity marketplaces time in industry Among the top 10 leading PVC pipe manufacturers in India MTPA - Available capacity Products Targeted Volume CAGR targeted by FY2020 over the next 5 years
Slide 23: Growth Map
22 Growth Map Figures in Rs. crore Particulars FY2015 FY2016 FY2017 FY2018 FY2019 CAGR Revenues 90 209 243 301 374 43% EBITDA 8 24 32 41 51 59% PAT 12* 10 16 22 24 19% Available Capacity MTPA (~) 35,000 52,000 53,000 60,000 63,000 16% Sales Volume (MTPA) 22,388 26,710 28,941 33,707 39,823 15% • *Inc
Slide 24: Key Strengths
23 Key Strengths Catering to Strong and Advanced Multiple and Proven expertise multiple sectors – highly equipment & Expanding efficient product in complex Agriculture, Water experienced technology – cost footprint in India offerings – projects Management, Management efficient 1,000+ products Infras
Slide 25: Product Portfolio - Diversified Basket of 1,000+ Products
24 Product Portfolio - Diversified Basket of 1,000+ Products PLASTIC TAPS/ uPVC PIPING SYSTEM cPVC PIPING SYSTEM HDPE PRODUCTS FAUCETS/SHOWERS PIPES FITTINGS PIPES FITTINGS FAUCETS SHOWERS ALLIED HDPE PIPING SYSTEM uPVC PIPES uPVC PLUMBING uPVC RING FIT PIPES PIPING SYSTEM uPVC COLUMN PIPES
Slide 26: Product Application across Sectors
25 Product Application across Sectors Agriculture Segment Water Management Segment •Casing pipes •Hot & cold potable water •Drip irrigation & distribution & transportation •Sprinkler system •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils
Slide 27: Aiming Pan-India Distribution Presence
26 Aiming Pan-India Distribution Presence Enjoys a dominant and Delhi leading Head Office presence in Dadri North India (Manufacturing Unit-I) Extensive distribution Tapping newer network markets to reduce significantly inventory cost for reduces delivery Distributors & time to 48 hours Dealers (fro
Slide 28: Manufacturing Facilities
27 Manufacturing Facilities Close-to-demand Best in class distribution Manufacturing network catering Facility, with to key markets of advanced North, West, equipment & Central and South practices India All major certifications/ In-house accreditations manufacturing offers incremental contribution t
Slide 29: Product Development & Handling
28 Product Development & Handling In-house In-house CPVC development of Compounding extrusion moulds for Pipes & for better efficiency Fittings. Strong Technical Solid experience know how of manufacturing among Employee pipes with set base specifications
Slide 30: Strategic Growth Pillars
STRATEGIC GROWTH PILLARS 73 eh H/ es. ~ eC = «a Sy
Slide 31: Scale-up distribution network across India
30 Scale-up distribution network across India to augment presence and improve market penetration Strengthening Distribution & Footprint Diversified Product Portfolio • Establishing a solid presence in key markets • Strong presence in North India – extending market reach in other parts of India. Focu
Slide 32: Diversified Product Portfolio with total offerings at 1,000+
31 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket Strengthening Distribution & Footprint • Range of products manufactured at the technologically-advanced manufacturing Diversified facility at Dadri and Ahmedabad Product Portfolio • Empha
Slide 33: Sharp focus on Value-Added Products: Fittings
32 Sharp focus on Value-Added Products: Fittings – to help strengthen the value chain Strengthening Distribution & Footprint Diversified Product Portfolio • Focused approach towards Fittings across uPVC and cPVC that offer significantly higher margins Focus on Value- • High-growth segment – rapidly
Slide 34: Capacity Expansion to aid long-term growth plan
33 Capacity Expansion to aid long-term growth plan – to achieve 90,000 MTPA by March 2020 Strengthening Distribution & Footprint • Total available capacity of 63,000 MTPA Diversified • Undertaking a phase-wise capacity expansion at the existing facilities of Dadri Product Portfolio and Ahmedabad ove
Slide 35: Efficiently leverage the 'APL Apollo' brand reach
34 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth Strengthening Distribution & Footprint • The „APL Apollo‟ brand has covered several milestones in its journey since inception Diversified • Brand synonymous with quality and reliability of operations Product Portf
Slide 36: IPL TVC – Principal sponsor of Delhi Capitals
35 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth Strengthening Distribution & Footprint IPL TVC – Diversified Principal Product Portfolio sponsor of Focus on Value- Delhi added Products - Fittings Capitals in IPL 2019 Capacity Expansion The ‘APL Apollo’ Brand Ed
Slide 37: Key Focus
Key Focus Ree Waar i ty Nyt
Slide 38: Key Focus Areas
37 Key Focus Areas Continuous Branding Activities – To leverage on Brand ‘APL Apollo’ Diversifying brand presence – Catering to Central, Western & Southern India through established facilities located in Ahmedabad & Dadri New Product launches – Targeting a basket of 2,000+ products with immaculate f
Slide 39: Financial Highlights
38 Financial Highlights
Slide 40: Financial Trend
39 Financial Trend CAGR – 43% CAGR – 59% Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 374.0 14% 14% 13% 301.0 12% 243.0 9% 209.0 90.0 8 24 32 41 51 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 CAGR – 14% CAGR – 15% PAT (Rs. Cr) Volume (MTPA) 39,823.0 24 33,707.0 22 26
Slide 41: 5-year Financial Track-record
40 5-year Financial Track-record Particulars FY2015 FY2016 FY2017 FY2018 FY2019 Net Worth (Rs. Cr) 45.0 55.0 91.4 113.3 229.8 Cash and cash equivalents 2.9 2.0 8.0 0.1 0.1 Capex for the year (Rs. Cr) 24.0 12.2 9.1 17.1 48.2 Inventory (Rs. Cr) 24.9 13.7 22.7 44.3 52.3 Inventory Days 101.5 24.0 34.3 5
Slide 42: Annexure
41 Annexure
Slide 43: Conference Call Details
Conference Call Details Apollo Pipes Limited Q4 & FY19 Earnings Conference Call Time • 11:00 am IST on Thursday, May 30, 2019 Local dial-in numbers • +91 22 6280 1141 • +91 22 7115 8042 International Toll Free Number • Hong Kong: 800 964 448 • Singapore: 800 101 2045 • UK: 0 808 101 1573 • USA: 1 86
Slide 44: About Us
43 About Us Apollo Pipes (BSE: 531761), 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 decades of experience in the Indian Pipe Market, Apollo Pipes holds a strong reputa
Slide 45: Thank You
Thank You