Grp Ltd · NSE:GRPLTD
Grp — Q3 FY2024 Earnings Presentation
50 slides from Grp's earnings presentation, Feb 16, 2024
Slide 1: Investor Presentation cover letter to stock exchanges
From Corporate Office: 510, A Wing, Kohinoor City C-l Kirol Road, Off L.B.S. Marg, Kurla CW) Mumbai - 400 O70, India T: +91 22 6708 2600 / 2500 IMPACT POSITIVE 16/02/2024 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal
Slide 2: Investor Presentation – February'24
GRP» IMPACT POSITIVE = ~ recat Three eI Ee, ths TINGE iv LOTT RaAa rie i Re ie Investor Presentation — February’24 Click Here for GRP LTD’s Corporate Video
Slide 3: Disclaimer
Disclaimer GRP» IMPACT POSITIVE This presentation and the accompanying slides (the “Presentation”), which have been prepared by GRP Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Performance Highlights
GRP» IMPACT POSITIVE OD) ] dPa i F PA, Poe a ES 7) : 2 an oI Pont id es » Aue SS Performance Highlights Q3 & 9IMFY24
Slide 5: Q3FY24 Performance (YoY) - Consolidated
Q3FY24 Performance ( YoY ) - Consolidated GRP» IMPACT POSITIVE (in Rs. Mn) Total Income Gross Profit EBITDA PAT 25%) S74 : 1,161 1,102 65 | 109 i 612 0 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Income from sale of JV Key Highlights The total revenue includes a component of ocean freigh
Slide 6: 9MFY24 Performance (YoY) - Consolidated
OMFY24 Performance ( YoY ) - Consolidated GRP» IMPACT POSITIVE (in Rs. Mn) Total Income Gross Profit EBITDA PAT 3,638 GB 2,018 3 294 112 110 E 3,249 E 1,747 a ; Q9MFY23 QMFY24 9MFY23 QMFY24 QMFY23 OMFY24 Q9MFY23 QMFY24 Income from sale of JV Key Highlights The decline in income is predominantly attr
Slide 7: Operational Highlights
Operational Highlights GRP» IMPACT POSITIVE The gross margin adjusted for ocean freight has experienced a 5% increase, mainly due to a decrease in raw material costs. This decline in RM costs is driven by decreased demand from China, a fall in crude oil prices, and a rise in the import of raw materi
Slide 8: Segment Wise Quarterly Performance Trend - Standalone
Segment Wise Quarterly Performance Trend - Standalone GRP» IMPACT POSITIVE (in Rs. Mn) C Reclaim Rubber Revenue* Trend » C Non-Reclaim Rubber Revenue* Trend » 1,014 1,02 ,027 960 130 137 116 91 Q3FY23 Q4FY23 QIFY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 QIUFY24 Q2FY24 Q3FY24 ma Domestic ma Exports Key Highligh
Slide 9: Segmental Financial Highlights - Standalone
Segmental Financial Highlights - Standalone Grp» IMPACT POSITIVE (in Rs. Mn) Reclaim Rubber Non-Reclaim Rubber Particulars (in Rs. Mn)* Q3FY23 Q3FY24 Q3FY23 Q3FY24 Total Income 1,026.3 964.6 136.1 138.2 Raw Material 427.5 423.7 82.4 71.5 Other Expenses 530.7 452.2 35.4 43.8 EBIDTA 68.0 88.6 18.2 22.
Slide 10: Profit & Loss Statement - Consolidated
Profit & Loss Statement - Consolidated Grp» IMPACT POSITIVE Profit & Loss (Rs. Mn) Q3FY24 Q3FY23 Q2FY24 eae 1 PL 1) oa Revenue from Operations 1,097 1,143 -4% -4% 3,234 3,555 -9% Other Income 5 18 14 84 Total Income 1,102 1,161 -5% 1,148 -4% 3,249 3,638 -11% Cost of Goods Sold 490 506 541 1501 1,621
Slide 11: Balance Sheet - Consolidated
Balance Sheet - Consolidated Grp» IMPACT POSITIVE Assets (Rs. Mn) ee ee Liabilities (Rs. Mn) Seee Non-Current Assets 1,410 1,248 Equity Share Capital 13 13 Property, Plant and Equipment 1,073 940 Other Equity 1,503 1,461 Capital workin progress 153 110 Coma to owners of the 1,516 1,474 Right of use
Slide 12: Industry Highlights
GRP» IMPACT POSITIVE Industry Highlights
Slide 13: Tyre Graveyards are Increasing across the Globe
Tyre Graveyards are Increasing across the Globe GRP» IMPACT POSITIVE 8 Billion people in 1.7 Billion new Creating huge the world tyres produced a year = S| re > TYRE GRAVEYARDS... 1.4 Billion Over 1 Billion waste vehicles on the road tyres generated per year ... HUGE OPPORTUNITY 12
Slide 14: Presenting a Huge Opportunity
..Presenting a HUGE OPPORTUNITY Grp» IMPACT POSITIVE GRP uses end-of-life tyres to recycle Reclaim rubber, Engineering plastics, Die-cut Huge tyre graveyards that can be seen from space and manufacture products & Polymer Composite products y, J A GRPbsaes GRPbasET GRPP ine «GRPBSE Sans 13
Slide 15: Reduce, Reuse & Recycle
.. 10 Reduce, Reuse & Recycle Grp» IMPACT POSITIVE REDUCE Manufactured from 100% recycled rubber and plastics Product is environmental friendly, strong and durable asa substitute to wood & concrete Custom die forms engineered from end of life truck and bus bias tyres used in application where low co
Slide 16: Global & Indian Tyre Industry Performance
Global & Indian Tyre Industry Performance Grp» IMPACT POSITIVE Global Tyre Market Indian Rubber Consumption (in Kilo Tonnes) Passenger car/Light truck tire (PC/LT), CY23 (% change Y-o-Y, in no. of tyres) ME Tyres North & Central XIE) ME Non-Tyres i Particulars pene i South America (Excl. China & Ind
Slide 17: Positive and Sustainable Outlook: EPR norms for waste tyres
Positive and Sustainable Outlook... Grp» IMPACT POSITIVE MoEFC has introduced EPR norms for waste tyres ‘Extended Producer Responsibility’ means responsibility of producer of tyres to ensure environmentally sound management of waste tyres as per the provisions of this regulation Proposed EPR targets
Slide 18: Our Business
Our Business
Slide 19: GRP in a Nutshell
GRP ina Nutshell GRP» IMPACT POSITIVE ** GRP was established in 1974, it is a diversified Indian corporation manufacturing and providing high quality sustainable materials to global polymer product companies ** GRP operates 5 business vertical (Reclaim Rubber, Engineering plastics, Custom Die Forms,
Slide 20: Gearing Up Towards Fifth Decade & Counting
Gearing Up Towards Fifth Decade & Counting Grp» IMPACT POSITIVE i —— ee i Gujarat Reclaim and Got its first ever Diversified in 1st Unit at Rubber Products export order Custom Die Forms Ankleshwar Limited incorporated i i i i Diversified into 5th Unit established at Ath unit established at 3rd Unit
Slide 21: Strategically Located State of the Art Facilities
Strategically Located State of the Art Facilities G Rp» IMPACT POSITIVE Our Solapur Facility - Maharashtra Our Ankleshwar Facility - Gujarat o @ indore ©} Ankleshwar GipMumbai @solapur & Headquarters @ Reclaim Rubber MH Custom Die Forms A Engineering Plastics @ R&DCentre ® Polymer Composite Our Pano
Slide 22: Research & Development Capabilities
Research & Development Capabilities GRP» IMPACT POSITIVE ~~ New Products — Margin Improvement Customer Relationship (@) @ ge Oy © © » Continuous development of » Automation of processes » Developing new application new products across diversified industries » Expansion in new product » Environment f
Slide 23: Diversified Product Applications - Reclaim Rubber
Diversified Product Applications Across Business Verticals... GRP» IMPACT POSITIVE Reclaim Rubber B Tyre Applications Non - Tyre Applications Tyre Treads & Retreads < Footwear Roofing "7 ST Automotive Profiles ¢) Tyre Piles >i . . . \ hs Matting Inner Tubes Inner Liner \ Adhesives Moulded Goods 22
Slide 24: Diversified Product Applications - Engineering Plastics, Custom Die Forms
Diversified Product Applications Across Business Verticals... GRP» IMPACT POSITIVE Engineering Plastics } Custom Die Forms } Industry Applications Applications Consumer Automotive Link Mats Door Mats Electrical & Electronics Industrial Industrial Mats Dock Bumpers Reprocessed Nylon Reprocessed ifj D
Slide 25: Diversified Product Applications - Polymer Composite, Polyolefins
Diversified Product Applications Across Business Verticals... Grp» IMPACT POSITIVE Polymer Composite } Repurposed Polyolefins } Industry Applications Applications Commercial transportation Livestock transportation Paint Pail Lubricant Pail Military and Government Oil fields Automotive battery cover
Slide 26: Capacity Addition and Capital Expenditure
Capacity Addition and Capital Expenditure GRP» IMPACT POSITIVE . . . ; ; Build up additional capacity for Reclaim Rubber and Engineering Plastics Polymer Composite Repurposed Polyolefins Allied Business over the years (Installed capacity in MT) \ 3,400 72,000 —_ na 2,800 6,200 1,500 3,000 6,000 6,00
Slide 27: Reputed Tyre and Non-Tyre Customers
Reputed Tyre and Non-Tyre Customers IMPACT POSITIVE apollo isi GROWING TOGETHER BRIDGESTONE = =(Ontinental C=AT MRE" GB rvnesil / KM ervree= VW TRELLEBORG bandag de SUMITOMO ose only. 26
Slide 28: Reputed Tyre and Non-Tyre Customers
Reputed Tyre and Non-Tyre Customers Grp» IMPACT POSITIVE ali ~~~ HORIZON “FF | HUTCHINSON’ iGoldmedal @osm a ADDIS TYRE « KORYO G 0 ae rrr melos pe Nitto (ORIENTAL RANIIkamal’ India's Fawourite Furniture Innovation for Customers CONVEY) ALLIJTHE;WAY Mobil Sampertrans’® A MEMBER OF THE SEMPERIT-GROUP
Slide 29: Global Partnerships for Business Growth
Global Partnerships for Business Growth Grp» IMPACT POSITIVE 4} Reclaim Rubber Polymer Composite Successful in setting up a Contract Manufacturing with an reclaim rubber unit in American company since 2017 to Malaysia and handed over to manufacture polymer composite the local partner products in Ind
Slide 30: Board of Directors
Board of Directors Grp» IMPACT POSITIVE Rajendra Gandhi Managing Director More than 40 years in General Management. Graduate engineer from Indian Institute of Technology, Mumbai. Also, a director in Steelcast Ltd. Harsh Gandhi Joint Managing Director 16 years in various Managerial positions. OPM pro
Slide 31: Board of Directors
Board of Directors Grp» IMPACT POSITIVE Rajeev Pandia Vivek Asrani Independent Director Independent Director More than 40 years and been influential in Strategic More than 37 years in the business of industrial Planning, Project Evaluation & Management, stapling, nailing and fastening systems, and K
Slide 32: Awards & Accolades
Awards & Accolades Grp» IMPACT POSITIVE ‘a Crcatat tconony Syroasum aa Grogs: Satatices: Ciating the bang > Th 24 Mowpender, 2021 CERTIFICATE OF ACHIEVEMENT Certified MAR 2022 - MAR 2023 GRP Limited Category: Small and Medium Enterprise IATF 16949:2016, 1S09001:2015 Best Tyre Recycler 2022: RUNNER U
Slide 33: Sustainable Development Goals (Adopted By GRP)
Sustainable Development Goals (Adopted By GRP) Grp» IMPACT POSITIVE GRP believes in ‘giving back to the society and the planet’, it has shown a high level of engagement across following six out of the seventeen SDGs adopted by all UN member states to build a better world for people and planet ea QUA
Slide 34: CSR — Impact Positive Initiatives
CSR — Impact Positive Initiatives G Rp» IMPACT POSITIVE At GRP, CSR contributes in shaping the ‘How’ and the ‘Why’ of almost every activity we undertake. Over the years, we are happy to have played a role in giving back to the community through our products as well as our CSR activities. We are grat
Slide 35: Business Verticals
GRP» IMPACT POSITIVE Business Verticals
Slide 36: Manufacturer of Sustainable Products through Business Verticals
> Manufacturer of Sustainable Products through 5 Business Verticals GRP IMPACT POSITIVE GRPP xan GRP Engineering plastics is a sustainable material solution provider for challenging engineering applications. Our sustainable solutions are based on unfilled, and glass reinforced Polyamide 6 (PA 6), Po
Slide 37: Manufacturer of Sustainable Products through 5 Business Verticals
.. Manufacturer of Sustainable Products through 5 Business Verticals GRP» IMPACT POSITIVE GRP makes custom die forms engineered from end-of-life truck and bus bias tyres used in applications where low-cost solutions are a necessity like door mats, impact resistance products and in conveyor chain ass
Slide 38: Reclaim Rubber - Industry Leading Technology
Reclaim Rubber - Industry Leading Technology GR pb RUBBER 1st Company in India to design, fabricate and installan entire plant & VALUE PROPOSITION machinery for manufacture of reclaim rubber from complete indigenous components Cost-saving compared with virgin rubber Strong focus on innovationand R &
Slide 39: Reclaim Rubber — Cost Effective Alternative
Reclaim Rubber — Cost Effective Alternative GRP steees RUBBER PRODUCT OFFE RI NG ! lreac (Natural Rubber Reclaim) eit Phes (Natural Rubber Reclaim) ey, Side wall (Natural Rubber Reclaim) Natural Rubber Reclaim ® ** Whole Tyre Reclaim “* Ultra High & High Tensile Reclaim oe “* Natural Tube Reclaim oe
Slide 40: Engineering Plastics — Valuable Engineering Plastic
Engineering Plastics — Valuable Engineering Plastic GRPB Asse Industry Leading Technology 1st Indian company to commercialize the concept of recovery and reuse of polyamide from end-of-life tyres Invested substantially in the R&D to recover nylon (polyamide), a valuable engineering plastic out of th
Slide 41: Engineering Plastics — Valuable Engineering Plastic
Engineering Plastics — Valuable Engineering Plastic GRPBRgIes G R p™ ENGINEERING ; Target Market & Applications PLASTICS eS BS Fasteners, Clips, Bushes, Plugs, Cable Ties, Main Developed in-house process to recover nylon fiber from end of life tyres fold, Sleeves. AUTOMOTIVE U i ~ Nylon fiber embedd
Slide 42: Custom Die Forms — Diverse Product Portfolio
Custom Die Forms — Diverse Product Portfolio GR pb DIE FORMS Products Converts end-of-life tyres to design products used for civil & agricultural applications | Custom Die Forms are meant to absorb vibrations in ! | heavy equipment and for insulation against sound | | GRP -— CDF produces these produ
Slide 43: Polymer Composite
Polymer Composite GRP» COMPOSITE GRP is the exclusive manufacturer to a US based company for ! Products Range supply of composite products | The composite products are manufactured from 100% : | recycled rubber and plastics Wf “% Products benefits & features Composite | Wood Impervious To Fluids v x
Slide 44: Repurposed Polyolefins
Repurposed Polyolefins GRPPEeusses82 VALUE PROPOSITION INFINITE CYCLE ENABLING CIRCULAR ECONOMY: Helping customers fulfill their circularity aspirations Helping brand owners to fulfill their EPR (Extended Producer ECONOMIC Responsibility) obligations = oo %%, Saving valuable natural resources by : w
Slide 45: Growth Drivers
GRP» IMPACT POSITIVE eo) f » 7 « hy a el r { S P an i : Ss vA Growth Drivers
Slide 46: We Have Built Sustainable Business
We Have Built Sustainable Business Grp» INT Environment Friendly Brand GRP Lower C02 emissions, more recycling Brand GRP carries close to 5 of end-of-life tyres and other rubbers decades of trust with it High Value Product In-house Technology Opportunity Focuses on innovation to upgrade Multiple pro
Slide 47: Demand Drivers for Reclaim Rubber
Demand Drivers for Reclaim Rubber GRp»> IMPACT POSITIVE Global Reclaim Rubber Demand Global Reclaim Rubber market is expected to reach USD 2.16 billion by 2028 Global Reclaim Rubber Demand (Kilo Tonnes) \ Global Demand Drivers v¥ Growing awareness regarding COST - EFFECTIVE and ECO - FRIENDLY altern
Slide 48: With Strategic Shift Towards Increasing Reclaim Rubber
With Strategic Shift Towards Increasing Reclaim Rubber Grp» IMPACT POSITIVE ZRIDGESTONE Sy MICHELIN To Reduce, Reuse and Recycle the use of fossil fuels and strategic shift towards Reclaim Rubber. By 2050 companies envisages higher use of Recycled Rubber Resource use reduce raw material consumption
Slide 49: By Major Tyre Manufacturing Companies
By Major Tyre Manufacturing Companies GRP (Ontinental. For our four sustainability focus areas we commit to visionary and bold Our Eco & Safety strategy starts from raw materials We push innovation to increase bio-based and recycled ambitions — latest by 2050 and together with our value chain partne
Slide 50: Contact Us
Contact Us GRP» IMPACT POSITIVE Company : Investor Relations Advisors: GR p> S( A Strategic Growth Advisors CIN: L25191GJ1974PLC002555 CIN: U74140MH2010PTC204285 Ms. Shilpa Mehta Mr. Abhishek Shah / Mr. Vatsal Shah Chief Financial Officer abhishek.shah@sgapl.net / vatsal.shah@sgapl.net investor.rela