Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q4 FY2020 Earnings Presentation
31 slides from Greenply Industries's earnings presentation, Jun 27, 2020
Slide 1: Cover letter to stock exchanges
Greenply/2020-21 June 27, 2020 The Manager The Manager BSELimited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, Bandra Kurla.Complex Floor 25, P. J. Towers, Dalal Street Bandra (E) Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 526797 Symbol- GREENPLY Dear
Slide 2: Q4 & FY2020 Financial Results Presentation
Q4 & FY2020 Financial Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 4: Contents
Contents Business Highlights & Impact of COVID 19 Financial Highlights: Consolidated & Standalone Chairman & MD’s comments Financial Results Shareholding Pattern Company Overview Growth Outlook Manufacturing Facilities Our Brands Marketing /Activation Product Launch Brand Activation - Digital 3
Slide 5: Business Highlights – Q4 FY 2020
Business Highlights – Q4 FY 2020 o Improving environment set back by COVID 19 pandemic o India operations gradually resuming post closure during lock down. Nagaland, Gujarat and West Bengal facilities operating at 50-70% utilizations. Gabon facilities operating at 70-75% utilizations o Cyclone AMPHA
Slide 6: Business Highlights – Q4 FY 2020 – Exceptional item
Business Highlights – Q4 FY 2020 – Exceptional item o Pursuant to an Order passed by the Hon'ble Supreme Court, the Company may have to refund maximum principal amount of Rs. 27.09 crores in respect of excess refund received from the Excise Department for the period from 01.04.2008 to 30.06.2017 o W
Slide 7: Disclosure of material impact of COVID19 pandemic
Disclosure of material impact of COVID19 pandemic o The Company issued COVID-19 alert as per WHO guidelines and adopted suitable policies to safe guard our employees and for smooth functioning of our operations. Adequate safety measures, including social distancing, wearing masks within our premises
Slide 8: Financial Highlights – Q4 FY 2020
Financial Highlights – Q4 FY 2020 Consolidated Net Sales down by 12.0% YoY to Rs. 343.8 Consolidated Gross margins down by 98 bps YoY to 38.9% crores Standalone Gross margins down by 18 bps YoY to 37.1% Standalone Net Sales down 13.6% YoY to Rs. 296.3 crores Consolidated EBITDA margins decreased 343
Slide 9: Consolidated Financial Highlights – Q4 FY 2020
Consolidated Financial Q4 FY20 Q4 FY19 Highlights – Q4 FY 2020 Net Sales 343.8 390.7 (12.0)% Key Ratios (%) Q4 FY20 Q4 FY19 Gross Margin 38.9 39.8 EBITDA Margin 9.1 12.5 Gross Profit (14.2)% 133.6 155.6 EBIT Margin 7.1 11.1 Net Margin (6.3) 7.6 Ad and promotions / Net Sales 3.4 4.1 Staff Cost/ Net S
Slide 10: Consolidated Financial Highlights – FY 2020
Consolidated Financial FY20 FY19 Highlights – FY 2020 Net Sales 1,415.8 1,404.1 0.8% Key Ratios (%) FY20 FY19 Gross Margin 41.0 39.2 EBITDA Margin 11.1 10.5 Gross Profit 5.3% 580.3 551.1 EBIT Margin 9.3 8.9 Net Margin 3.3 5.7 Ad and promotions / Net Sales 3.6 4.2 Staff Cost/ Net Sales 11.5 10.8 EBIT
Slide 11: Standalone Financial Highlights – Q4 FY 2020
Standalone Financial Highlights – Q4 FY 2020 Q4 FY20 Q4 FY19 Net Sales 296.3 342.9 (13.6)% Key Ratios (%) Q4 FY20 Q4 FY19 Gross Margin 37.1 37.3 EBITDA Margin 8.8 10.3 Gross Profit (14.0)% EBIT Margin 7.0 8.9 110.0 127.9 Net Margin (8.3) 5.4 Ad and promotions / Net Sales 4.3 4.6 Staff Cost/ Net Sale
Slide 12: Standalone Financial Highlights – FY 2020
Standalone Financial FY20 FY19 Highlights – FY 2020 Net Sales 1,263.1 1,275.8 (1.0)% Key Ratios (%) FY20 FY19 Gross Margin 38.9 37.2 EBITDA Margin 10.6 9.9 Gross Profit 3.8% 492.0 474.0 EBIT Margin 8.9 8.4 Net Margin 2.6 4.8 Ad and promotions / Net Sales 4.0 4.6 Staff Cost/ Net Sales 11.5 11.0 EBITD
Slide 13: Financial Highlights - Balance Sheet Perspective
Net worth Total Debt 267.4 397.9 250.0 257.7 377.9 381.3 335.2 357.0 331.3 143.1 143.6 150.7 Financial Highlights - Consolidated Standalone Consolidated Standalone Balance Sheet Capital Employed Cash & Cash equivalents Perspective 645.3 585.2 655.6 30.9 532.0 26.0 500.1 474.9 20.6 18.1 10.3 9.7 Cons
Slide 14: Financial Highlights - Balance Sheet Perspective
Receivables Fixed Assets 356.5 319.5 310.5 346.2 305.1 307.9 311.4 269.2 283.4 203.9 200.8 174.3 Financial Highlights - Consolidated Standalone Consolidated Standalone Balance Sheet Payables Inventories Perspective 250.4 177.1 169.4 174.2 241.5 143.8 141.6 142.1 231.7 232.0 233.6 218.4 Consolidated
Slide 15: Financial Highlights - Ratios
Inventories (Days) Debtors (Days) 46 92 45 89 89 89 44 42 41 81 40 79 Financial Consolidated Standalone Consolidated Standalone Highlights - Creditors (Days) Working Capital Turnover (Days) Ratios 69 78 66 70 68 63 63 64 53 63 60 60 Consolidated Standalone Consolidated Standalone Mar’20 Mar’19 Dec’1
Slide 16: Financial Highlights - Ratios
ROE (%) RoCE Pre-tax (%) 23.8 22.2 22.7 22.5 21.4 20.4 18.5 19.5 12.5 12.6 12.6 9.1 Financial Consolidated Standalone Consolidated Standalone Highlights - RoCE Post-tax (%) Debt/Equity Ratios 0.75 0.71 16.8 16.0 17.0 0.65 16.0 10.5 9.9 0.40 0.43 0.40 Consolidated Standalone Consolidated Standalone M
Slide 17: Consolidated Performance - Q4 FY 2020 v/s Q4 FY 2019
Sales Gross Profit 133.6 EBITDA 343.8 296.3 110.0 31.2 26.0 Q4 FY20 47.5 23.6 5.2 Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Performance - Q4 FY 2020 v/s Q4 FY 2019 Sales Gross Profit EBITDA 390.7 155.6 48.8 342.9 127.9 35.2
Slide 18: Consolidated Performance - FY 2020 v/s FY 2019
Sales 1415.8 Gross Profit EBITDA 1263.1 157.7 580.3 133.9 492.0 FY20 152.7 88.3 23.8 Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Performance - FY 2020 v/s FY 2019 Sales 1,404.1 Gross Profit 551.1 EBITDA 1,275.8 474.0 147.3 126
Slide 19: Greenply Standalone Performance
Particulars Q4 FY20 Q4 FY19 Var (%) FY20 FY19 Var (%) Net sales (Rs. crore) 296.3 342.9 (13.6) 1263.1 1275.8 (1.0) EBITDA margin (%) 8.8 10.3 10.6 9.9 Greenply Standalone EBIT margin (%) 7.0 8.9 8.9 8.4 Performance Annual capacity (million sqm.) 24.9 24.9 24.9 24.9 Production (million sqm.) 7.61 9.2
Slide 20: Chairman & MD's comments on Q4 & FY 2020
“Commenting on the performance for Q4 & FY 2020, Mr. Rajesh Mittal, Chairman & Managing Director, Greenply Industries Ltd. said, “Our performance this quarter has been encouraging despite the fact that we were faced with difficulties post the announcement of the lockdown and our factories being forc
Slide 21: Consolidated Financial Results – P&L
(₹ in Lakhs) Statement of Consolidated Financial Results for the Three Months and Year ended 31 March 2020 CONS 3M CONS 3M CONS 3M CONS 12M CONS 12M Particulars 31.03.2020 31.12.2019 31.03.2019 31.03.2020 31.03.2019 Income a) Revenue from operations 34,469.90 34,598.25 39,174.59 142,042.69 141,216.1
Slide 22: Standalone Financial Results – P&L
(₹ in Lakhs) Statement of Standalone Financial Results for the Three Months and Year ended 31 March 2020 STD 3M STD 3M STD 3M STD 12M STD 12M Particulars 31.03.2020 31.12.2019 31.03.2019 31.03.2020 31.03.2019 Income a) Revenue from operations 29,723.48 31,950.05 34,391.36 126,767.86 128,378.83 b) Ot
Slide 23: Shareholding Pattern
Shareholding Pattern March 2020 March 2019 Public, Public, 47.99% 48.97% Promoter , Promoter , 52.01% 51.03% 22
Slide 24: Company Overview
Company Overview CAPACITY UTILIZATION PRODUCTION MODEL RAW MATERIAL SUSTAINABILITY • Plywood 142% utilization in FY 2020 • Plywood – Moving towards an asset light set-up by • Plantation of fast growing and improved species of • Plywood 139% utilization in FY 2019 increasing outsourcing in mid-segmen
Slide 25: Growth Outlook
Growth Outlook ADVERTISING & PROMOTIONAL SPENDS • Continued investments in increasing brand visibility pan-India PRODUCT PROFILE • Maintain Ad spends at around 4% of Net Sales • To improve mix of plywood through increase in mix of value-added products like Green Defender, Green Gold Prima and Natura
Slide 26: Manufacturing Facilities / Business Model
Manufacturing Facilities / Business Model Facilities Business Model 63% Premium products, 37% mid & low end products in Capacity Location volume terms (mn sqm.) Tizit, Nagaland 4.50 72% Premium products, 28% mid & low end products in PLYWOOD value terms Kriparampur, West Bengal 6.00 • Asset light mo
Slide 27: Our Brands
Our Brands gy GREEN pEKENDER fal G ECOTEC Bharsatly a. PLYWOOD & BLOCKBOARD woe, crrests Platinum Durable | Affordable | Dependable
Slide 28: Marketing / Activation
Marketing / Activation o Influencers Program ▪ Maanyata Milan (Carpenter Recognition Program) ▪ Carpenter Meets o Product Promotion – Road Show with product display o Local Branding activity – Wall Paintings, GSB’s Etc. 27
Slide 29: Product launch – Green Club Plus Seven Hundred
Product launch – Green Club Plus Seven Hundred Plywood that cares With the aim to perfect the art and science of plywood so that our customers get only whats best. We launched Green Club Plus Seven Hundred on 10th January 2020. The products conforms to E-0 emission standard, ensuring safer indoor ai
Slide 30: Brand Activation – Digital
Brand Activation– Digital Digital media has been the key focus for us this year launching campaigns almost every quarter. Starting from IPL, World cup to Independence Day & Pujo the brand has constantly engaged with high participation from the audience on topical content to maintain brand relevance.
Slide 31: About Greenply
About Greenply For further information, please contact: Greenply Industries Limited (GIL) enjoys leadership position in plywood for more than 26 percent of the organized plywood Mukesh Agarwal – Chief Financial Officer market in India. Greenply Industries Limited GIL has three state–of-the-art manuf
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