Greenply Industries Ltd · NSE:GREENPLY
Greenply Industries — Q2 FY2020 Earnings Presentation
29 slides from Greenply Industries's earnings presentation, Nov 8, 2019
Slide 1: Cover letter to stock exchanges
Greenply/2019-20 November 8,2019 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 Security Code: 526797 Symbol- GREENPLY
Slide 2: Q2 & H1 FY2020 Financial Results Presentation
Q2 & H1 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 1. FINANCIAL HIGHLIGHTS : CONSOLIDATED & STANDALONE 2. CHAIRMAN & MD’s COMMENTS 3. P&L & BALANCE SHEET 4. SHAREHOLDING PATTERN 5. COMPANY OVERVIEW 6. GROWTH OUTLOOK 7. MANUFACTURING FACILITIES 8. OUR BRANDS 9. MARKETING /ACTIVATION 10. PRODUCT LAUNCH 11. BRAND ACTIVATION - DIGITAL 3
Slide 5: Financial Highlights – Q2 FY 2020
Financial Highlights – Q2 FY 2020 Consolidated Net Sales up by 5.8% YoY to Rs. 378.90 Consolidated Gross margins up by 422 bps YoY to 42.1% crores Standalone Gross margins up by 373 bps YoY to 39.7% Standalone Net Sales up by 2.3% YoY to Rs. 344.11 crores Consolidated EBITDA margins increased 158.5
Slide 6: Consolidated Financial Highlights - Q2 FY 2020
Consolidated Financial Highlights - Q2 FY 2020 Q2 FY20 Q2 FY19 Key Ratios (%) Q2 FY20 Q2 FY19 Gross Margin 42.1 37.9 Net Sales 378.9 358.2 5.8% EBITDA Margin 11.9 10.3 EBIT Margin 10.2 8.7 Net Margin 7.0 4.9 Ad and promotions / Net Sales 3.2 5.6 Gross Profit 17.6% 159.7 135.8 Staff Cost/ Net Sales 1
Slide 7: Consolidated Financial Highlights – H1 FY 2020
Consolidated Financial Highlights – H1 FY 2020 H1 FY20 H1 FY19 Key Ratios (%) H1 FY20 H1 FY19 Gross Margin 42.0 38.0 Net Sales 727.1 665.1 9.3% EBITDA Margin 11.9 8.8 EBIT Margin 10.2 7.1 Net Margin 6.5 4.4 Ad and promotions / Net Sales 3.5 5.2 Gross Profit 21.0% 305.6 252.6 Staff Cost/ Net Sales 11
Slide 8: Standalone Financial Highlights - Q2 FY 2020
Standalone Financial Highlights - Q2 FY 2020 Q2 FY20 Q2 FY19 Key Ratios (%) Q2 FY20 Q2 FY19 Gross Margin 39.7 35.9 Net Sales 344.1 336.4 2.3% EBITDA Margin 11.4 10.7 EBIT Margin 9.8 9.3 Net Margin 6.7 5.4 Ad and promotions / Net Sales 3.5 5.6 Gross Profit 12.9% 136.5 120.9 Staff Cost/ Net Sales 12.0
Slide 9: Standalone Financial Highlights – H1 FY 2020
Standalone Financial Highlights – H1 FY 2020 H1 FY20 H1 FY19 Key Ratios (%) H1 FY20 H1 FY19 Gross Margin 40.1 36.5 Net Sales 648.3 622.0 4.2% EBITDA Margin 11.2 9.5 EBIT Margin 9.6 8.0 Net Margin 6.0 4.5 Ad and promotions / Net Sales 3.9 5.4 Gross Profit 14.8% 260.2 226.7 Staff Cost/ Net Sales 11.8
Slide 10: Financial Highlights – Balance Sheet Perspective
Net worth Total Debt 376.4 364.0 282.5 335.2 331.3 249.0 250.0 287.5 298.5 170.9 156.2 143.6 Financial Highlights – Consolidated Standalone Consolidated Standalone Balance Sheet Capital Employed Cash & Cash equivalents Perspective 658.9 585.2 20.6 536.5 534.9 18.9 18.1 454.7 475.0 16.3 17.3 13.4 Con
Slide 11: Financial Highlights – Balance Sheet Perspective
Receivables Fixed Assets 359.3 305.7 305.1 330.8 290.7 283.4 262.9 269.2 277.8 200.0 172.3 174.3 Financial Highlights – Consolidated Standalone Consolidated Standalone Balance Sheet Payables Inventories Perspective 242.3 169.4 241.5 155.7 161.6 141.6 234.8 131.9 128.2 232.0 219.3 214.0 Consolidated
Slide 12: Financial Highlights – Ratios
Inventories (Days) Debtors (Days) 93 44 44 90 41 39 82 38 80 81 37 79 Financial Consolidated Standalone Consolidated Standalone Highlights – Ratios Creditors (Days) Working Capital Turnover (Days) 75 67 69 69 68 60 62 63 54 57 51 53 Consolidated Standalone Consolidated Standalone Sept’19 Sept’18 Mar
Slide 13: Financial Highlights – Ratios
ROE (%) RoCE Pre-tax (%) 25.2 23.2 23.8 22.7 21.2 22.1 22.2 22.0 20.3 18.6 18.5 19.6 Financial Consolidated Standalone Consolidated Standalone Highlights – RoCE Post-tax (%) Debt/Equity Ratios 17.6 17.6 0.87 16.8 15.3 16.0 0.75 0.75 13.9 0.52 0.47 0.43 Consolidated Standalone Consolidated Standalone
Slide 14: Consolidated Performance – Q2 FY 2020 v/s Q2 FY 2019
Sales 378.9 Gross Profit EBITDA 45.0 344.1 159.7 39.1 136.5 Q2 FY20 34.8 23.2 5.9 Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Performance – Q2 FY 2020 v/s Q2 FY 2019 Sales 358.2 Gross Profit 135.8 35.9 EBITDA 36.9 336.4 120.9
Slide 15: Consolidated Performance – H1 FY 2020 v/s H1 FY 2019
Sales 727.1 Gross Profit EBITDA 86.6 648.3 305.6 72.8 260.2 H1 FY20 78.8 45.3 13.8 Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Greenply Subsidiaries Consolidated Performance – H1 FY 2020 v/s H1 FY 2019 Sales Gross Profit EBITDA 665.1 252.6 59.2 622.0 226.7 58.3
Slide 16: Greenply Standalone Performance
Q2 Q2 H1 H1 Particulars Var (%) Var (%) FY20 FY19 FY20 FY19 Net sales (Rs. crore) 344.11 336.41 2.3 648.34 622.01 4.2 EBITDA margin (%) 11.4 10.7 11.22 9.52 Greenply Standalone EBIT margin (%) 9.8% 9.3% 9.6% 8.0% Performance Annual capacity (million sqm.) 24.9 24.9 24.9 24.9 Production (million sqm.
Slide 17: Chairman & Managing Director's comments
Commenting on the performance for Q2 FY 2020, Mr. Rajesh Mittal, Chairman & Managing Director, Greenply Industries Ltd. said, “We are glad to announce that our performance this quarter has been very good at the top line level with margins continuing to be strong. This performance is a result of sign
Slide 18: Standalone Financial Results – P&L
(₹ in Lakhs) Statement of Unaudited Standalone Financial Results for the quarter and six months ended 30 September 2019 STD 3M STD 3M STD 3M STD 6M STD 6M STD 12M Particulars 30.09.2019 30.06.2019 30.09.2018 30.09.2019 30.09.2018 31.03.2019 Income a) Revenue from operations 34,550.72 30,543.61 34,02
Slide 19: Consolidated Financial Results – P&L
(₹ in Lakhs) Statement of Unaudited Consolidated Financial Results for the quarter and six months ended 30 September 2019 CONS 3M CONS 3M CONS 3M CONS 6M CONS 6M CONS 12M Particulars 30.09.2019 30.06.2019 30.09.2018 30.09.2019 30.09.2018 31.03.2019 Income a) Revenue from operations 38,029.73 34,944.
Slide 20: Financial Results – Standalone and Consolidated Assets and Liabilities
(₹ in Lakhs ) Statement of As s ets and Liabilities Standalone Cons olidated Sr. 30.09.2019 31.03.2019 30.09.2019 31.03.2019 Particulars No. (Unaudited) (Audited) (Unaudited) (Audited) A. ASSETS Non-current as s ets (a) Property, plant and equipment 15,851.04 16,236.08 24,075.40 24,570.47 (b) Capita
Slide 21: Shareholding Pattern
Shareholding Pattern June 2019 September 2019 Public, Public, 17.11% 15.12% Promoter , Promoter , 51.03% 51.70% Institution, Institution, 31.86% 33.18% Promoter holding has increased 0.67% in Q2 FY20 – a reflection of Promoter’s confidence in the strength and prospects of the Company 20
Slide 22: Company Overview
Company Overview CAPACITY UTILIZATION PRODUCTION MODEL RAW MATERIAL SUSTAINABILITY • Plywood 139% utilization (FY 2019) • Plywood – Moving towards an asset light set-up by • Plantation of fast growing and improved species of • Plywood 149% utilization in H1 FY 2020 ; further increasing outsourcing i
Slide 23: 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 24: Manufacturing Facilities / Business Model
Manufacturing Facilities / Business Model Facilities Business Model 64% in-house, 36% outsourced in volume terms Capacity Location (mn sqm.) To increase proportion of outsourcing to 35% (in value Tizit, Nagaland 4.50 terms) from 28% currently over next 3 years PLYWOOD • Asset light model generating
Slide 25: Our Brands
Our Brands gy GREEN pEKENDER fal G ECOTEC Bharsatly a. PLYWOOD & BLOCKBOARD woe, crrests Platinum Durable | Affordable | Dependable
Slide 26: 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. 25
Slide 27: Product launch – Green Club 5 Hundred
Product launch – Green Club 5 Hundred The last word in plywood is here now. In keeping with our tradition of continuous innovation we launched Green Club 5 Hundred on 17th August 2019. As market leaders, our confidence in the product quality allows us to offer Green Club with a 500% Life time warran
Slide 28: 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 29: 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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