Greenpanel Industries Ltd · NSE:GREENPANEL
Greenpanel Industries — Q3 FY2022 Earnings Presentation
34 slides from Greenpanel Industries's earnings presentation, Dec 31, 2021
Slide 1: We outperformed in Q3 FY 2022
v We outperformed, in Q3 FY 2022 A brief report for stakeholders Greenpanel Industries Limited
Slide 2: Disclaimer
v Disclaimer Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve number of risks, uncertainties and other factors that could cause actual results to differ materially from those s
Slide 3: A snapshot of our company
v A snapshot of our company 1 2 3 Brand vision: We envision to About us: Greenpanel is a Management: Greenpanel is led by maintain our Leadership Position in prominent wood panel player Mr. Shiv Prakash Mittal, Executive the Panel Industry and supply best in India with a national Chairman, and Mr. S
Slide 4: Our Products
v Our Products 1 MDF 2 Flooring 3 Plywood 4 Veneers 5 Doors
Slide 5: Our performance, Q3 FY 2022
v Part one Our performance, Q3 FY 2022
Slide 6: Performance Highlights Q3 FY 2022
v Excellent quarter, inspite of the MDF unit 1 at Uttarakhand being inoperative for nearly half the quarter Sustained growth: Revenue 34% 2 EBITDA 65% PAT 107% Steep increase in MDF realisation Performance Highlights 3 44.1% YOY and 18.7% QOQ Q3 FY 2022 Superior working 4 capital hygiene Stronger Ba
Slide 7: Our financial performance in brief
Our financial performance in brief Revenue growth Profitability growth EBITDA Profit after tax 417.44 113.37 63.07 Rs crores, Profit after tax, Rs crores, Net Sales, Rs crores, Earnings before interest, depreciation, taxes and Q3 FY 2022 Q3 FY 2022 amortization, Q3 FY 2022 311.87 68.81 Rs crores, Ea
Slide 8: Our financial performance in brief: shareholder value proposition
Our financial performance in brief Shareholders value proposition Earnings per Share RoCE-Post Tax % Return on Equity 5.14 22.0 % Return on capital 28.3 % Return on equity, Rs, Earnings per share, Q3 FY 2022 employed, Q3 FY 2022 Q3 FY 2022 2.48 15.3 18.1 % Return on equity, Rs, Earnings per share, %
Slide 9: Financial Highlights Q3 FY 2022 vs Q3 FY 2021
v Financial Highlights Q3 FY 2022 vs Q3 FY 2021 Key Ratios (%) Q3 FY 2022 Q3 FY 2021 Gross Margin 57.0 54.8 EBITDA Margin 27.2 22.1 EBIT Margin 22.7 16.5 Net Margin 15.1 9.8 Sales Promotion / Net Sales 1.2 1.3 Employee Expenses / Net Sales 7.9 8.1 Logistics Costs / Net Sales 5.7 5.7 EPS (Rs.) 5.14 2
Slide 10: Segment Performance - MDF
Segment Performance - MDF Particulars Q3 FY 22 Q3 FY 21 Var (%) 9M FY 22 9M FY 21 Var (%) Net Sales (Rs. Crores) 350.40 249.88 40.2% 940.00 482.28 94.9% EBITDA Margin 30.5% 23.9% 29.4% 19.4% EBIT Margin 25.6% 17.5% 24.0% 9.6% Annual Capacity (CBM) 540,000 540,000 540,000 540,000 Production (CBM) 115
Slide 11: Segment Performance - Plywood
Segment Performance - Plywood Particulars Q3 FY 22 Q3 FY 21 Var (%) 9M FY 22 9M FY 21 Var (%) Net Sales (Rs. Crores) 67.04 62.00 8.1% 185.48 134.36 38.0% EBITDA Margin 9.9% 14.7% 11.6% 10.6% EBIT Margin 8.0% 12.4% 9.5% 7.2% Annual Capacity (Mn Sqm) 10.50 10.50 10.50 10.50 Production (Mn Sqm) 2.33 2.
Slide 12: Overview by MD & CEO
v Overview by MD & CEO “Business environment improved during the period. However, our MDF unit at Uttarakhand remained inoperative for nearly half the quarter impacting MDF volumes.”
Slide 13: Overview by MD & CEO
v Overview by MD & CEO “MDF sales volumes de-grew by 2.4% YoY; “Net debt reduced by Rs. 85 crores during Q3 to Rs. operating margins improved 657 basis points to 144 crores as on 31st December 2021. We prepaid 30.5%.” four instalments of German Bank loan amounting to Euro 8.91 Mn (Rs. 78 crores) in
Slide 14: Greenpanel Brand's Financial Health
v Part two Greenpanel Brand’s Financial Health Brand acceptance has supported sustained growth
Slide 15: We strengthened realisations across both product lines
v We strengthened realisations across both product lines MDF 44 %, Growth in average MDF 29,025 Rs / cubic meter, realisations Average realization, Q3 FY 2022 Plywood 20,138 Rs / cubic meter, 11.5 272 244 %, Growth in Average realization, Rs / square meter, Rs / square meter, average Average realiza
Slide 16: We widened our margins by building a stronger business
We widened our margins by building a stronger business We widened our We continued to margins by building remain principally an a stronger business MDF-driven company 27.2 % EBITDA margin, 510 bps 84 % of revenues drive Q3 FY 2022 YoY growth in from MDF, Q3 FY 2022 22.1 % EBITDA margin, EBITDA margi
Slide 17: We strengthened our working capital hygiene
We strengthened our working capital hygiene Working capital Working capital Inventory cycle productivity 13 7.57 35 Days, working capital Revenue generated Days, Total Inventory cycle from resource from every rupee of expressed in days of purchase to sales working capital turnover equivalent, Q3, re
Slide 18: We utilized our superior performance to draw debt down
We utilized our Receivables Payables superior performance to 8 30 draw debt down Days, receivables Days, payables expressed in days of turnover equivalent, expressed in days of turnover equivalent, 248 Q3, FY 2022 Q3, FY 2022 Rs crores, consolidated debt, end of Q3, FY 2022 25 52 Days, receivables e
Slide 19: How we strengthened our liquidity
How we We strengthened We strengthened strengthened our capacity our capacity our liquidity utilization utilization MDF 71.42 86% PLYWOOD 89% Times or x, interest MDF capacity utilisation, cover, Q3, FY 2022 Q3 FY 2022 Plywood capacity (Note: Uttarakhand MDF utilisation, Q3 FY 2022 plant was inopera
Slide 20: Our segment-wise financial growth
Our We enhanced the We enhanced the segment-wise value-added value-added financial growth proportion of our proportion of our business business Superior product mix Superior realisations 26% 227 12% YoY growth in plywood of revenues derived from Rs per sq m, Average volumes, 9M FY 2022 decorative ve
Slide 21: Brand Greenpanel: Strengths and attributes
v Part three Brand Greenpanel: Strengths and attributes
Slide 22: Brand credentials
Brand v credentials Largest Indian MDF brand by capacity Unprecedented Success – Scaled to Demonstrated foresight – to invest in 5,40,000 leadership in just best manufacturing Cubic meters per annum, three years technologies installed capacity as on 31 March 2021 Fastest growing brand Invested in th
Slide 23: Pureplay brand positioning and large addressable market
Pureplay brand positioning Large addressable market 84 22 Per cent of revenues derived USD billion, estimated size of India’s from MDF, Q3 FY 22 interior design market, 2021 (Source: PRNewsWIre) 80 783 Per cent of revenues derived from Rs. crores, MDF revenues reported by MDF, Q3 FY 21 Greenpanel in
Slide 24: Our widened distribution network
Our widened distribution network 2,084 Number of dealers as on 31st March 2021 10,000+ Number of retailers as on 31st March 2021 16 Branches pan-India Name of physical branches West & Central: Mumbai, Nagpur, Pune, Indore South: Bangalore, Hyderabad, Kochi, Coimbatore, Chennai North: Jaipur, Chandig
Slide 25: Addressing a penetration mismatch
Addressing a penetration mismatch 20,762 million cubic meters, estimated size of China’s MDF market, 2019 105.16 million cubic meters, estimated (Source: Globenewswire) size of India’s MDF market, 2020 (Source: Mordor Intelligence)
Slide 26: Environmental initiatives and rainwater harvesting
v 5S: The Company implemented 5S and trained employees Zero Waste: The Company supplied fly ash (generated from energy plant) to brick manufacturers, ensuring no wastage 130,000 Green Belt: The Company developed green belt at various locations Cubic metres, Total rainwater harvesting Energy Optimisa
Slide 27: The Greenpanel Brand: Attributes
v The Greenpanel What Brand Brand: Attributes Greenpanel successfully Evangelist: Championing the cause of MDF over cheap demonstrated in plywood Q3 FY 22 Value-enhancing: Enhancing Resilience: Ability to absorb ease of access, availability unexpected shocks and affordability (slowdown and lockdown)
Slide 28: We grew revenues faster than the growth of the Indian economy
We grew revenues faster than the growth of the Indian economy 6.6 % (estimated), growth of 34 %, YoY growth of the Indian economy in Greenpanel Q3, FY 2022. revenues in Q3, FY 2022. Source: Financial Express / RBI
Slide 29: MDF preference over plywood
v Increased MDF resources: Grown on 1 commercial plantations, enhancing quality and availability. Safety from COVID-19: Consumer shift from 2 traditional plywood to engineered wood readymade furniture Competitive: MDF as good as plywood; 3 better price-value proposition; upfront 40% saving and total
Slide 30: How we intend to grow Brand Greenpanel
v Part four How we intend to grow Brand Greenpanel
Slide 31: Evangelise MDF, expand capacity, leverage SAP network, reduce debt
v 1 2 3 Evangelise MDF Expand our manufacturing Leverage the SAP network • Capitalise on the growing capacity • We intend to leverage our preference of MDF (over • We are enhancing our existing SAP network plywood) manufacturing capacity from • The SAP network will be 540,000 cubic m to 660,000 • We
Slide 32: What stakeholders can expect
v Part five What stakeholders can expect
Slide 33: What stakeholders can expect
What stakeholders can expect Real estate fit-outs to grow Our value-creation journey • Sustained MDF traction based on • Near-rated utilization of MDF a buying preference for capacity engineered furniture products • Increased brand-driven offtake of • Protected realisations based on value-added prod
Slide 34: Thank you
Mr. V. Venkatramani Chief Financial Officer Greenpanel Industries Limited Thank Corporate Office: Thapar House, 2nd Floor, 163, S.P. Mukherjee Road, Kolkata - 700 026 Contact: (+91) 97484 00606 / (+91) 033 4084 0600 Email: v.venkat@greenpanel.com you Website: www.greenpanel.com Mr. Gavin Desa / Mr.
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