Astral Limited · NSE:ASTRAL
Astral — Astral Poly Technik — Investor Presentation (May 2018)
37 slides from Astral's investor presentation, May 30, 2018
Slide 1: Investor Presentation 2018
INVESTOR PRESENTATION 2018 30th May, 2018, Mumbai
Slide 2: Astral, Where Innovation Flows
ASTRAL, WHERE INNOVATION FLOWS
Slide 3: Business Overview: Operating in Two High Growth Business Categories
BUSINESS OVERVIEW OPERATING PIPING IN TWO HIGH GROWTH BUSINESS CATEGORIES ADHESIVES
Slide 4: Corporate Structure
CORPORATE STRUCTURE ASTRAL POLY TECHNIK LIMITED RESINOVA SEAL IT APL ABPL CHEMIE LTD UK KENYA 100% 97.45% 80% 50% SEAL IT USA 100%
Slide 5: Presence in 4 Countries, 10 Manufacturing Locations
PRESENCE IN 4 COUNTRIES. 10 MANUFACTURING LOCATIONS. 4000+ EMPLOYEES. • One of India’s fastest growing piping companies • A Fortune India 500 company • Comprehensive range of piping & adhesives
Slide 6: Astral, The Trendsetter
ASTRAL, THE TRENDSETTER First to introduce CPVC piping Three adhesives mfg. units in in India India – and two abroad Introduced countless Known for zero-compromise innovations in piping category quality and service Offers the widest Always ahead on the piping product range technology curve Four pipi
Slide 7: Astral Group – Business Segments
ASTRAL GROUP – BUSINESS SEGMENTS Plumbing Epoxy Adhesives & Putty Drainage Silicone Sealants Agriculture Construction Chemicals Industrial PVA ADHESIVES PIPING Fire Protection Cyanoacrylate Conduit Solvent Cements Ancillary Tapes Polymeric Filling Compound Anaerobic Adhesives Industrial Adhesives
Slide 8: Astral Group – Production Facilities
ASTRAL GROUP – PRODUCTION FACILITIES
Slide 9: Ghiloth Plant (Piping), Rajasthan
GHILOTH PLANT (PIPING), RAJASTHAN To be operational in July 2018 Will strengthen company’s presence in North India
Slide 10: Hosur (Tamilnadu) Plant (Piping) – Capacity Expansion
HOSUR (TAMILNADU) PLANT (PIPING)– CAPACITY EXPANSION Added capacity to be operational in September 2018, which will strengthen company’s presence in South India
Slide 11: Depots and Offices, Piping and Adhesives
DEPOTS AND OFFICES, PIPING AND ADHESIVES
Slide 12: Core Competences, Advantage Astral
CORE COMPETENCES, ADVANTAGE ASTRAL Seamless backward Unbeatable integration quality Wide and deep World-class mfg. distribution capabilities & reach technical tie-ups Product innovations Strong brand & value engineering equity
Slide 13: Introducing Resiquick - Instant Adhesive
INTRODUCING RESIQUICK- INSTANT ADHESIVE FEATURES AND BENEFITS • Attractive and user-friendly ampule • Easy and precise application, single drop accuracy • Cost effective due to multiple usage • Higher shelf life
Slide 14: Launching Shortly - Double Wall Corrugated Pipes
LAUNCHING SHORTLY -DOUBLE WALL CORRUGATED PIPES FEATURES AND BENEFITS • Used mainly for waste water and storm drainage, also used for cable protection • Superior alternative to RCC drainage, with high strength, longer life, flexibility and lighter weight
Slide 15: Branding and Communication
BRANDING AND COMMUNICATION • TV and print ads • On-ground cricket match branding BRANDING • Outdoor brand promotion • Brand association – IPL • Radio ads • Dealer meets AND • Trade exhibitions • Plumber meets ADVERTISING • Dealer shop branding • Consultant meets • In-film product integration • Digit
Slide 16: Robust Distribution Network
ROBUST PIPING: ADHESIVES: 750+ Distributors 1800 Distributors DISTRIBUTION More than 28,000 dealers Approx. 4 lac dealers NETWORK
Slide 17: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY YOG SADHAN ASHRAM ACTIVITIES: • Yoga classes and workshops • Naturopathy Treatment • Ayurveda Consultancy • Acupressure Treatment • Pranik Healing Treatment
Slide 18: Financial Highlights
AX ASTRAL PIPES ADHESIVES FINANCIAL failed ati eda tks) |
Slide 19: Piping Business (INR Mn.)
PIPING BUSINESS (INR MN.) NET REVENUE EBIDTA 18,000 3,000 16,097 16,000 CAGR 11% 14,767 CAGR 18% 2,477 2,500 14,000 13,180 2,153 12,348 12,000 2,000 10,501 1,670 10,000 1,505 1,500 8,000 6,000 1,000 4,000 500 2,000 - - FY14 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Figures from FY 16 onwards are as pe
Slide 20: Piping Business (INR Mn.)
PIPING BUSINESS (INR MN.) PBT (BEFORE EXCEPTIONAL ITEM) PAT 2,000 1,190 1,200 1,836 1,800 1,100 1,066 CAGR 24% CAGR 20% 1,592 1,000 1,600 900 1,400 800 729 1,200 688 1,039 700 1,000 966 600 800 500 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Figures from FY 16 onwards are as per Ind AS
Slide 21: Piping Business (INR Mn. except EPS)
PIPING BUSINESS (INR MN. EXCEPT EPS) EPS (IN INR) CASH PROFIT 11 1,700 1,657 9.94 10 1,600 CAGR 18% 8.90 CAGR 18% 1,484 9 1,500 1,400 8 1,300 7 6.03 6.12 1,200 6 1,083 1,100 1,019 5 1,000 4 900 3 800 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Figures from FY 16 onwards are as per Ind AS
Slide 22: Piping Business - Ratios, Capacity & Production
PIPING BUSINESS - RATIOS, CAPACITY & PRODUCTION DEBT / EQUITY RATIO CAPACITY UTILIZATION (IN ‘000 MT) 0.30 0.27 160 152.10 0.23 0.18 137.71 0.20 140 127.76 0.12 0.10 120 105.75 102.37 CAGR 15% 100 87.69 - 77.91 FY15 FY16 FY17 FY18 80 69.93 Figures from FY 16 onwards are as per Ind AS 60 SALES (IN ‘0
Slide 23: Piping Business - Working Capital Ratio (in Days)
PIPING BUSINESS - WORKING CAPITAL RATIO (IN DAYS) 100 90 80 66 70 60 58 60 60 55 50 55 50 47 49 49 40 46 30 34 20 FY15 FY16 FY17 FY18 Inventory No. of days Debtors No. of days Net Working Capital No. of days Figures from FY 16 onwards are as per Ind AS
Slide 24: Adhesives Business Summary of Subsidiaries (INR Mn.)
ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) RESINOVA- SEAL IT – UK & USA ADHESIVE TOTAL- NET REVENUE NET REVENUE NET REVENUE 4,000 3,840 1,550 5,500 5,319 1,501 CAGR 19% 1,500 1,479 CAGR 12% 3,500 5,000 3,191 4,584 1,450 3,000 4,500 1,393 1,400 2,577 1,363 3,940 2,500 4,000 3,793 2,291 20%
Slide 25: Adhesives Business Summary of Subsidiaries (INR Mn.)
ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) RESINOVA- SEAL IT – UK & ADHESIVE TOTAL- EBIDTA USA EBIDTA EBIDTA 800 140 132 900 732 816 700 120 110 800 CAGR 45% CAGR 33% 600 100 700 509 84 77 586 500 80 600 400 44% 60 500 420 39% 288 9% 300 239 40 400 350 200 20 300 100 - 200 FY15 FY16 FY17 F
Slide 26: Seal IT – Key Financials (Pound Mn.)
SEAL IT – KEY FINANCIALS (POUND MN.) 20 18 17.29 15.89 16 15.01 13.78 14 12 10 8 6 4 2 1.10 1.28 0.93 1.01 0 FY15 FY16 FY17 FY18 Net Revenue EBIDTA
Slide 27: Group Revenue Breakup - FY '17-'18
GROUP REVENUE BREAKUP - FY ‘17-’18 Adhesives 26% Piping 74%
Slide 28: Consolidated (INR Mn.)
CONSOLIDATED (INR MN.) NET REVENUE EBIDTA 25,000 3,500 3,268 CAGR 14% 21,060 3,000 CAGR 25% 18,947 2,703 20,000 16,778 2,500 14,100 2,035 15,000 2,000 1,683 1,500 10,000 1,000 5,000 500 - - FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Figures from FY 16 onwards are as per Ind AS
Slide 29: Consolidated (INR Mn.)
CONSOLIDATED (INR MN.) PBT PAT 3,000 2,000 1,757 CAGR 31% 1,800 CAGR 31% 2,481 2,500 1,600 1,446 2,007 1,400 2,000 1,200 1,019 1,500 1,315 1,000 1,095 782 800 1,000 600 500 400 200 - - FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Figures from FY 16 onwards are as per Ind AS Figures from FY 16 onwards are
Slide 30: Consolidated (INR Mn. except EPS)
CONSOLIDATED (INR MN. EXCEPT EPS) EPS CASH PROFIT 16.00 2,900 14.62 14.00 CAGR 30% CAGR 27% 2,328 12.08 2,400 12.00 1,948 10.00 8.49 1,900 8.00 6.64 1,437 6.00 1,400 1,146 4.00 900 2.00 - 400 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Figures from FY 16 onwards are as per Ind AS
Slide 31: Group Working Capital Ratio (in Days)
GROUP WORKING CAPITAL RATIO (IN DAYS) 75 69 70 65 65 62 60 60 60 62 55 55 60 49 50 52 53 45 41 40 35 FY15 FY16 FY17 FY18 Inventory No. of days Debtors No. of days Net Working Capital No. of days
Slide 32: Piping & Adhesives Industry at a Glance
PIPING & ADHESIVES INDUSTRY AT A GLANCE Present size of plastic piping is Present size of adhesive, sealants and approximately INR 300,000 mn. building chemicals industry is approx. INR which is expected to grow @ 14% 130,000 to 150,000 mn., which is expected CAGR during FY ‘18-’22. to grow @ 13-15%
Slide 33: Piping & Adhesives Industry at a Glance
PIPING & ADHESIVES INDUSTRY AT A GLANCE Present size of CPVC Piping market is India now happens to be one of the approx. INR 35,000 mn. in India, which is fastest growing markets for expected to grow by 24% - 25% CAGR during adhesives because of growth FY ‘18-’22. witnessed in industries like auto,
Slide 34: Growth Drivers – Piping Business
GROWTH DRIVERS – PIPING BUSINESS New product launches: Planning to launch ‘DOUBLE WALL • ‘RECYFIX’ – comprehensive range of CORRUGATED ‘ pipes for underground surface drainage system drainage system – that can replace • ‘PEX-A PRO’ - Advanced, next bigger diameter RCC pipes generation plumbing syste
Slide 35: Growth Drivers – Adhesives Business
GROWTH DRIVERS – ADHESIVES BUSINESS Present build-up capacity can generate Introduction of new products business around INR 12,000 mn. under construction chemicals Currently offering total 642 SKUs segment Successfully launched ‘RESIQUICK’ Adhesives plant in USA has started 0.5 g ampule pack of Cyan
Slide 36: Key Take Aways
KEY TAKE AWAYS Decentralization of manufacturing facilities will add to the top line and bottom line growth mainly due to logistics advantage Continuous efforts on branding and creating additional network in piping & adhesives will yield positive results in coming years Rajasthan and Hosur plants’ o
Slide 37: Thank You
THANK YOU astralpipes.com | astraladhesives.com
Astral Poly Technik — Investor Presentation (May 2018) on 6ix