Shaily Engineering Plastics Limited · NSE:SHAILY
Shaily Engineering Plastics — Q2 FY2023 Earnings Presentation
56 slides from Shaily Engineering Plastics's earnings presentation, Nov 12, 2022
Slide 1: Cover letter to stock exchanges: Q2 & HY1 FY23 Investor Presentation
SEPL/SE/Nov/22-23 November 12, 2022 The General Manager, The Manager, Corporate Relations/Listing Listing Department Department National Stock Exchange of India Limited BSE Limited Exchange Plaza,Plot No. C/1, G Block, Floor 25, P.J. Towers, Bandra – Kurla Complex, Dalal Street, Bandra (E), Mumbai –
Slide 2: Investors Presentation November 2022
Shaily Engineering Plastics Ltd Investors Presentation November 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shaily Engineering Plastics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 4: Key Performance Highlights
Key Performance Highlights
Slide 5: Key Financial Highlights – Q2 FY23
Key Financial Highlights – Q2 FY23 Revenues Gross Profit Margin EBITDA +10% +5% 160.0 37.5% 35.2% 23.8 25.1 144.9 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 EBITDA Margins Profit After Tax Cash PAT +1% -10% 16.4% 15.7% 10.5 16.9 17.1 9.4 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 (Rs. Cr.) On Standalo
Slide 6: Key Financial Highlights – H1 FY23
Key Financial Highlights – H1 FY23 Revenues Gross Profit Margin EBITDA +25% +6% 332.0 38.2% 44.0 46.8 265.0 33.9% H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 EBITDA Margins Profit After Tax Cash PAT +5% -9% 16.6% 18.5 30.8 32.2 14.1% 16.8 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 (Rs. Cr.) On Standalo
Slide 7: Credit Rating UPGRADED by CARE
Credit Rating UPGRADED by CARE Particulars Amount Current / Revised Rating Old Rating Rs. 270.17 Crs. Long Term Bank Facilities CARE A; Outlook: Stable CARE A -; Outlook: Positive enhanced from Rs. 261.54 Crs. Short Term Bank Facilities Rs. 35 Crs. CARE A1 CARE A2+ 6
Slide 8: Utilization & Volume
Utilization & Volume 68.8% 62.5%* Machine Utilization 59.7% Across Plants (%) 49.7% 47.2% 44.8% Q2FY22 Q1FY23 Q2FY23 H1FY22 FY22 H1FY23 +14% +36% Volume of Polymers 6,544 19,474 Processed (MT) 5,145 4,498 11,689 8,591 Q2FY22 Q1FY23 Q2FY23 H1FY22 FY22 H1FY23 * Owing to additional capacity in place at
Slide 9: Operational Trends
Operational Trends Machine Utilization Across Plants (%) 74.0% 66.8% 68.5% 63.8% 58.0%* 59.7% 47.2% FY17 FY18 FY19 FY20 FY21 FY22 H1FY23 Volume of Polymers Processed (MT) 19,474 13,293 14,602 13,039 13,258 11,689 10,054 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23 * Owing to additional capacity in place at
Slide 10: Revenue Analysis - Domestic Vs. Exports
Revenue Analysis - Domestic Vs. Exports FY22 H1 FY23 23.9% 22.2% 76.1% 77.8% Export Domestic 9
Slide 11: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. Cr.) Q2 FY23 Q2 FY22 YoY % H1 FY23 H1 FY22 YoY % Revenue 160.0 144.9 10% 332.0 265.0 25% Raw Material 103.7 90.6 219.5 163.7 Employee Expenses 11.6 10.4 23.8 20.7 Other Expenses* 20.4 21.4 44.8 39.1 Other Income 0.9 1.4 3.0 2.6 EBITDA 25.1 23.8 5%
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet Particulars in (Rs. Cr.) Sept-22 Mar-22 Particulars (Rs. Cr.) Sept-22 Mar-22 Assets Equity & Liabilities Non-current Assets 396.6 381.8 Equity 383.7 367.0 Fixed Assets Share Capital 9.2 9.2 Property Plant & Equipment 337.7 323.7 Other Equity 374.5 357.8 Capital WIP 16.2 16.1
Slide 13: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow Statement (Rs. Crore) H1 FY23 H1 FY22 Net Profit Before Tax 23.2 24.4 Adjustments for: Non - Cash Items / Other Investment or Financial Items 21.7 18.9 Operating profit before working capital changes 44.8 43.4 Changes in working capital -12.6 -22.8 Cash gener
Slide 14: Delivering PROFITABLE GROWTH
Delivering PROFITABLE GROWTH Revenues EBITDA 565.9 +15% 89.8 +18% 360.6 59.1 62.1 318.2 338.3 336.0 332.0 55.4 54.4 44.0 46.8 245.9 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 Profit After Tax Cash PAT +17% 35.1 61.6 +16% 24.0 23.6 22.0 41.5 41.5 38.0 34.2 19.3 32.2 1
Slide 15: With sustainable MARGIN Profile and disciplined use of capital
With sustainable MARGIN Profile and disciplined use of capital… Margin Profile 17.4% 17.6% 17.2% 17.9% 15.9% 16.1% 14.1% 10.8% 9.4% 8.9% 9.1% 8.3% 8.2% 7.0% 7.5% 6.1% 6.5% 7.0% 6.2% 5.1% 5.7% FY17 FY18 FY19 FY20 FY21 FY22 H1FY23 EBITDA% PBT% PAT% On Standalone basis 14
Slide 16: DISCIPLINED use of Capital
DISCIPLINED use of Capital RoCE RoE 19.6% 17.7% 17.8% 19.2% 16.9% 16.3% 15.7% 15.8% 15.0% 13.6% 14.2% 12.9% 12.8% 9.1% FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 On Standalone basis 15
Slide 17: Growth Along With Low Leverage
Growth Along With Low Leverage Total Debt : Equity (x) Long Term Debt : Equity (x) Total Debt / EBITDA (x) 1.2 0.7 3.6 0.9 0.9 0.9 0.5 2.4 2.5 2.2 1.9 1.9 0.6 0.6 0.3 1.6 0.5 0.3 0.2 0.2 0.2 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 FY17 FY18 FY19 FY20 FY21 FY22 H1
Slide 18: Strong Focus on Improving Our Key Metrics
Strong Focus on Improving Our Key Metrics Fixed Asset Turnover (x) OCF to EBITDA 3.0 141.8% 126.9% 2.5 2.3 2.2 1.9 1.6 1.7 69.8% 59.1% 48.1% 45.8% 24.0% FY17 FY18 FY19 FY20 FY21 FY22 H1 FY22 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 ✓ The Fixed Asset Turnover has been inching up despite continuous capex
Slide 19: Overview
Overview
Slide 20: About the Company
About the Company Enriching Lives Through Plastics Shaily was established in 1987 with just two moulding machines. Today, its facilities have grown significantly to include more than 175 machines, and Shaily plastics can be found across the globe in products Founded in as diverse as medical devices,
Slide 21: Vision, Mission & Our Values
Vision, Mission & Our Values Vision & Mission ✓ To provide end-to-end solutions in plastics ✓ Deliver superior quality to our customers; higher profitability and value to our shareholders; and sustainability for future generations Our Values Be passionate, Deliver customer Never bypass Always follow
Slide 22: Our Core Capabilities
Our Core Capabilities NPD Manufacturing Quality Sustainability • Tool design • Precision molding • Regulatory compliance • Social compliance • Mold flow • Decoration & • Robust QA/QC processes • Renewable energy • Process design Printing • Testing protocol • Recycled / • Automation • Assembly • Cont
Slide 23: Our Journey from FY15 to FY22 has created a strong base
Our Journey from FY15 to FY22 has created a strong base Consumer Business Healthcare Business Financial Health Accelerated existing Increased utilization De-risked Business Created Financial Flexibility Consumer Business by levels of Healthcare Model and Strong Balance Sheet adding New Customers & b
Slide 24: Our Strong base of last few years makes us Future Ready
Our Strong base of last few years makes us Future Ready… 1 Accelerated existing business with Homes Furnishing major • Strengthened our relationship with Swedish Home Furnishings major • Ventured in Carbon Steel Business for the Homes Furnishing Major Deepening foray in IP related products and Healt
Slide 25: Business Segments
Business Segments Automotive & Consumer Personal Care Healthcare Steel Furniture Engineering Home Furnishings Business High Volume Molding, Drug Delivery Devices Automotive Components Decoration & Assembly Carbon Steel Furniture Toys Business Pharma Packaging Engineering Plastics 24
Slide 26: Quality Certifications
Quality Certifications IATF 16949-2016 ISO 9001 : 2015 ISO 13485 : 2016 ISO 15378 : 2015 MDSAP 25
Slide 27: Certifications
Certifications Security Certifications Social Compliances Certifications Other Certifications AEO T2 Certificate Intertek RD Recognition Letter Star Export House SA-8000 2014 Other Social Compliances Certifications I-WAY GMP 26
Slide 28: Enriching Lives … Through Sustainable Performance
Enriching Lives … Through Sustainable Performance The PLEX Council Award Top Exporter Award Top Exporter Of Engineering (1St Position) For Exports Out Components For Eleven Of Rct, Vadodara By Container Consecutive Years: Corporation Of India Ltd 2005 to 2019 At Concor Awards, 2017 Award for BPC GOL
Slide 29: Awards from Customers
Awards from Customers Top Exporter of Engineering Components. Awarded for design of the Sanofi Award for two years of supplying Shellpak Award won consistently from 2005 – AllStar Pen with 100% product quality 2019 28
Slide 30: Consumer Segment
Consumer Segment Home Furnishings Business Toys Business
Slide 31: Our capabilities in Consumer Segment
Our capabilities in Consumer Segment Our Forte in Consumer Segment Global Quality End to End Solutions Large Volume Environment Friendly Timely Execution Manufacturing High Consistency in Product development Complex Plastic Highly compliant On time delivery by managing production standards capabilit
Slide 32: Home Furnishings Business
Home Furnishings Business Proven execution with our major home furnishing client Home Furnishings Major is our largest customer Associated with the Home Furnishings major as a Long Standing Relationship plastics supplier since 2004 Over the years have Evolved as a Trusted Supplier of Supplier of Cho
Slide 33: Toys Business
Toys Business Toys Segment Scope of growth in Toy Industry About Spin Master The Global Toys market is expected to gain strong momentum in the coming decade Added Spin Master as our 1st client in Toys Business. Spin Master is a leading global, diversified, multi-platform and highly innovative childr
Slide 34: Personal Care
Personal Care
Slide 35: Our Personal Care Clients & Services
Our Personal Care Clients & Services Servicing global FMCG majors such as Unilever and P&G since early 90s Products Manufactured • Primary Packaging for cosmetics • Primary Packaging for Vicks • Razor handles for Gillette • Trigger Sprays & Pumps Disclaimer: The Brand Names and respective Logos ment
Slide 36: Healthcare Segment
Healthcare Segment Pharma Devices Pharma Packaging
Slide 37: Our capabilities in Healthcare Segment
Our capabilities in Healthcare Segment Our Forte in Healthcare Segment Drug Delivery Devices Primary Packaging Dedicated Facility Quality & Compliance - Contract In-House Research & Manufacturing Development Division - IP Related Product Development 36
Slide 38: Drug Delivery Devices
Drug Delivery Devices One of the leading Injection Molding Companies in Medical Devices field Globally Our Value Proposition Manufacturing of complex precision components and assemblies requiring stringent quality and tight tolerances Comprehensive Design Review We have the expertise in assisting cl
Slide 39: Drug Delivery Devices
Drug Delivery Devices Shaily Tristan ShailyPen Harmony ShailyPen Protean ShailyPen Axiom ShailyPen Maxim Autoinjector 0-80 IU Insulin Reusable 0-60 IU Insulin Reusable for hGh, FSH, PTH and 0-80 IU Insulin Reusable 2 step Autoinjector with / Disposable, Single dose / Disposable, Settable for GLP-1 T
Slide 40: Drug Delivery Devices – New Order
Drug Delivery Devices – New Order First Non-European INSULIN PENS ❑ Equipped world’s first Insulin Pen that is made up of 100% plastic components ❑ Pens were designed to meet UL & FDA approvals ❑ Pens are ISO 11608 1,2&3 certified ❑ Shaily is one of the very few manufacturers of Insulin pens in the
Slide 41: Primary Packaging
Primary Packaging Our Competitive Edge Our Capabilities High end vision system Superior Protection for Active Pharmaceutical Ingredients for bottles and closures Value Addition through Expertise in Materials, Manufacturing, Quality and Regulatory Compliance Safer Design with Shaily CRCs Type III Dru
Slide 42: Our Healthcare Clients
Our Healthcare Clients Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only 41
Slide 43: Healthcare segment – Way Forward
Healthcare segment – Way Forward Increasing demand for pharmaceutical devices & packaging products Industry Growth due to rising geriatric population, growing chronic diseases, increasing number of diabetic patients, etc. Expansion of the generic market, technological advancement & Growth Drivers st
Slide 44: Automotive & Engineering
Automotive & Engineering
Slide 45: Automotive & Engineering Business
Automotive & Engineering Business At Shaily our efforts in the automotive segment is geared towards light weighting the vehicle Automotive Engineering Plastics Unique Molding Process Applications in the turbo chargers of high-end luxury Manufacturing high value-added products from ultra- Proprietary
Slide 46: Our Automotive & Engineering Plastics Clients
Our Automotive & Engineering Plastics Clients Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only 45
Slide 47: Steel Furniture
Steel Furniture Carbon Steel Furniture
Slide 48: Building New Capabilities and Diversity in Orderbook
Building New Capabilities and Diversity in Orderbook New Carbon Steel Facility at Halol Newly Added Business Segment ❑ Received confirmation for manufacture & supply of Carbon Steel products from Swedish Home Furnishings Major in Q1FY19 ❑ Signifies immense faith placed by the customer in our capabil
Slide 49: Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
Slide 50: State-of-the-Art Manufacturing Facilities
State-of-the-Art Manufacturing Facilities 7 Facilities with over 180 molding machines ranging from 35 tons to 1,000 tons Rania ❖ Export Oriented Unit ❖ Pharma (Dedicated ISO Class 8 clean room manufacturing facility) ❖ Others Rania Halol GUJARAT Halol (Existing) ❖ Automotive & Engineering Halol (New
Slide 51: We are focused on Sustainable Development
We are focused on Sustainable Development We believe in Business SOCIALLY AND ENVIRONMENT operations that have a RESPONSIBILITY IS OUR DNA positive impact on the Planet and People We have also been successful in being able to convert products manufactured from Our Goal is to constantly improve our v
Slide 52: Board of Directors
Board of Directors Executive Chairman Whole Time Director Managing Director Mr. Mahendra Sanghvi Ms. Tilottama Sanghvi Mr. Amit Sanghvi Executive Director Independent Director Independent Director Mr. Laxman Sanghvi Mr. Milin Mehta Dr. Shailesh Ayyangar Independent Director Independent Director Inde
Slide 53: Strong Credit Rating
Strong Credit Rating* Long and established track record in the plastic LONG TERM BANK FACILITIES injection molding business along with experienced Promoters Rs. 270.17 Crs.; enhanced from Rs. 261.54 Crs. Growth in Total operating income on the back of CARE A; Outlook: Stable increased volumes & high
Slide 54: Our Risk Mitigation Strategy helps us Grow
Our Risk Mitigation Strategy helps us Grow Risk We are a B2B player and are dependent on the success of our customers products in end products as well as Global Economic Environment 1 Revenue Growth Mitigation Strategy: We have diversified our product portfolio across multiple customers, multiple SK
Slide 55: Our Way Forward is… Clear !
Our Way Forward is… Clear ! Revenue Uptick Increased Healthcare Revenue Sustained uptick in Revenue based on New business confirmations, addition of new clients and increased Expect 2-3x revenue growth from Healthcare contribution from New business segment segment on back of faster penetration withi
Slide 56: Contact
Contact Company : Investor Relations Advisors : Shaily Engineering Plastics Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L51900GJ1980PLC065554 CIN - U74140MH2010PTC204285 Mr. Sanjay Shah, Chief Strategy Officer Mr. Shogun Jain/ Mr. Deven Dhruva sanjay@shaily.com shogun.jain@sgapl.net / deven.dhruv
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