Prakash Industries Limited · NSE:PRAKASH
Prakash Industries — Q4 FY2017 Earnings Presentation
22 slides from Prakash Industries's earnings presentation, Jul 20, 2017
Slide 1: Q4FY17/FY2017 Result Presentation
Prakash Industries Limited People... Prosperity... Progress… Q4FY17/FY2017 Result Presentation
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Prakash Industries Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall n
Slide 3: Agenda
Agenda 01 Result Highlights 02 Company Overview 3
Slide 4: Result Highlights
Result Highlights 4
Slide 5: Financial Highlights – FY2017
Financial Highlights – FY2017 Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) + 292% YoY + 36% YoY + 6 % YoY 265 78 195 2,415 2,281 20 FY16 FY17 FY16 FY17 FY16 FY17 5
Slide 6: Financial Highlights – Q4FY17
Financial Highlights – Q4FY17 Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +112% YoY +49% YoY +29% YoY 699 88 34 540 59 16 Q4FY16 Q4FY17 Q4FY16 Q4FY17 Q4FY16 Q4FY17 6
Slide 7: Business Updates
Business Updates Enhancing Sponge Iron and Power co-generation capacity • Successfully commissioned Sponge Iron Rotary Kiln No 5 project in May-17 Execution of Iron Ore Mining Lease • Executed Mining Lease for Sirkaguttu Iron ore mine – expected to be operational in H2FY18 Securing Long Term Coal Li
Slide 8: Debt Updates
Debt Updates Restructuring of Term Loans • Term Loan accounts with Corporation Bank and Rural Electrification Corporation Ltd. (REC) restructured • Total rupee liability repayment aligned with the projected cash flows of the company Issuance of FCCBs • Issuance of New FCCBs in lieu of outstanding 5.
Slide 9: Profitability Highlights
Profitability Highlights Rs. in Cr Q4FY17 Q4FY16 YoY FY17 FY16 YoY Revenues 700 543 29% 2,418 2,286 6% Raw Material 421 327 1,482 1,460 Employee Expenses 42 35 155 144 8% Other Operating Expenses 148 123 517 487 6% EBITDA 88 59 51% 265 195 36% EBITDA Margin (%) 12.6% 10.8% 10.9% 8.5% Depreciation 26
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights Rs. Crore Mar-17 Mar-16 Rs. Crore Mar-17 Mar-16 Shareholder’s Funds 2,221 2,137 Non-current assets 3,093 2,951 Share capital 139 134 Fixed assets 2,771 2,617 Other Equity 2,082 2,003 Non Current Tax Asset 3 3 Other non-current assets 319 331 Non-current liabilities 694 658 L
Slide 11: Company at Glance
Company at Glance 11
Slide 12: Company Overview
Company Overview One of the Largest Integrated Steel Manufacturers in India Strategically located plants in Chhattisgarh, one of the major coal and Iron ore belts Captive Iron ore mines in Odisha & Chhattisgarh; Step towards Backward integration 230MW captive power plant at its integrated steel plan
Slide 13: Diversified Business Segments
Diversified Business Segments Steel Power PVC Pipes Revenue Share as on Revenue Share as on Revenue Share as on FY17 - 77% FY17 - 13% FY17 – 10% 13
Slide 14: Integrated Steel Business
Integrated Steel Business 01 Fully Integrated steel plant at Chhattisgarh 02 Produces steel through coal based Sponge Iron Route ; Technical collaboration with Lugri GmbH, Germany Secured Supply of Key Raw material – (i) Iron Ore through allotted mines in the state of 03 Chhattisgarh & Odisha (ii) C
Slide 15: Steel Business – Product Offerings
Steel Business – Product Offerings Wire Rods HB Wire Structural Steel TMT bars Ferro Alloy 15
Slide 16: Power Business
Power Business Operating 230 MW captive power at its Integrated Steel Plant Power generated partly by harnessing waste gases emanating from Sponge Iron process and partly through Thermal route Newly commenced Fifth Sponge Iron Rotary Kiln generating additional 15MW power 16
Slide 17: Key Growth Drivers – Steel & Power Business
Key Growth Drivers – Steel & Power Business National Steel Policy 2017 Focus on Affordable Housing & Infrastructure Build a globally competitive industry with a crude steel Emphasis on Housing for All by 2022 by the Government capacity of 300 MT by 2030-31 Aim to build 50 million new low-cost houses
Slide 18: Rigid PVC Pipes Business
Rigid PVC Pipes Business Plant Strategically located in Uttrakhand; with current capacity of 55,000 MTPA Strong Brand presence in the states of UP, Uttrakhand, Delhi, Haryana & Punjab Witnessing Revenue Growth of 16% CAGR in last 5 years Operating profit margin growth at 26% CAGR since last 5 years
Slide 19: Rigid PVC Pipes – Product Portfolio
Rigid PVC Pipes – Product Portfolio UPVC Pipes Column Pipes SWR Pipes UPVC Fittings Plumbing Pipes Casing Pipes 19
Slide 20: Key Growth Drivers – PVC Pipes Business
Key Growth Drivers – PVC Pipes Business Government thrust on Agriculture & Infrastructure Swachh Bharat Abhiyan “Affordable Housing” and “Housing for All” Higher Union Budget allocation for Irrigation sector GST to give edge to the organised players over unorganised sector 20
Slide 21: Capacity Expansion Update
Capacity Expansion Update Existing Future Product Location Total Capacity Time Line Capacity Capacity Integrated Steel Raipur, Finished Steel 1.1 Mn Tons - 1.1 Mn Tons - Chhattisgarh Champa, 0.2 Mn – Sponge Iron 1.0 Mn Tons 0.20 Mn Tons 1.2 Mn Tons Chhattisgarh March, 2019 Champa, Steel Billets 1.1
Slide 22: Thank You
Thank You For more information visit: www.prakash.com 22