Venus Pipes & Tubes Ltd. · NSE:VENUSPIPES
Venus Pipes & Tubes — Q2 FY24 Earnings Presentation
42 slides from Venus Pipes & Tubes's earnings presentation, Oct 26, 2023
Slide 1: Exchange filing cover letter for Q2 FY24 presentation
Date: 26/10/2023 To, Listing Department Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbol: VENUSPIPES Scrip Code: 5
Slide 2: Venus Pipes & Tubes Limited Investor Presentation October 2023
VENUS PIPES & TUBES LIMITED Investor Presentation October 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Q2 & H1FY24 Financial & Operational Highlights
Q2 & H1FY24 FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 5: Key Highlights
Robust Quarterly Performance Committed on being a leading manufacturer and provider of high- quality Stainless-steel pipes and tubes for demanding and challenging applications Q2FY24 Revenue EBITDA PAT Key Operational Highlights Key Highlights ✓ During the quarter, the company witnessed highest ever
Slide 6: Unlocking New Horizons: Tripling Capacity and Beyond
Unlocking New Horizons : Tripling Capacity and Beyond Mother Hollow Pipes Backward Integration : ✓ 100% backward integration with setting up of piercing line to manufacture mother hollow pipes from round bars Capacity increased by ~3.2x from 12,000 ✓ With this, the company will be able to source in
Slide 7: Revenue Split across Segment – Q2 & H1FY24
Revenue Split across Segment – Q2 & H1FY24 Seamless (in ₹ Cr) Welded (in ₹ Cr) Others (in ₹ Cr) Total (in ₹ Cr) +151% +1% -19% +55% 219.9 136.7 138.3 15.7 371.0 12.7 +1% +153% +51% -24% 240.0 76.4 77.5 191.3 108.3 7.2 87.6 5.5 126.4 42.8 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23
Slide 8: Revenue Split across Geographies – Q2 & H1FY24
Revenue Split across Geographies – Q2 & H1FY24 Domestic (in ₹ Cr) Exports (in ₹ Cr) Stockists (in ₹ Cr) Total (in ₹ Cr) +57% +131% +34% +55% 232.7 +1681% 36.2 102.0 371.0 28.5 76.3 +30% +32% +51% 148.0 240.0 110.4 52.4 191.3 15.7 39.6 85.2 126.4 1.6 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H
Slide 9: Key Financial Highlights – Q2 & H1FY24
Key Financial Highlights – Q2 & H1FY24 Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +55% +108% +93% 371.0 62.4 37.7 +51% +125% +97% 240.0 191.4 34.8 20.3 19.5 30.0 126.4 15.5 10.3 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Gross Profit Margin EBITDA Margi
Slide 10: Historical half year performance
Historical half year performance Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) 67% of FY23 90% of FY23 85% of Revenue EBITDA FY23 PAT achieved achieved in achieved in 552.4 69.1 44.2 in H1FY24 H1FY24 H1FY24 387.0 312.4 49.2 39.1 31.7 24.7 (57%) (57%) (56%) 216.4 26.5 16.0 (56%) (54%) (51%) 62.3 3
Slide 11: Profit & Loss Account
Profit & Loss Account Profit and Loss (in ₹ Cr) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 191.4 126.4 51.4% 179.6 6.6% 371.0 240.0 54.6% Cost of Goods Sold 137.0 101.3 138.5 275.5 191.8 Gross Profit 54.4 25.1 116.7% 41.1 32.4% 95.5 48.2 98.1% Gross Profit Marg
Slide 12: Balance Sheet
Balance Sheet Assets (in ₹ Cr) Sep-23 Mar-23 Equity & Liabilities (in ₹ Cr) Sep-23 Mar-23 Non - Current Assets 269.9 206.6 Total Equity 358.9 322.2 Property Plant & Equipments 244.1 59.8 Share Capital 20.3 20.3 CWIP 10.4 121.6 Reserves & Surplus 338.6 301.9 Intangible assets 0.1 0.1 Non-Current Liab
Slide 13: Cashflow Statement
Cashflow Statement Particulars (in ₹ Cr) H1FY24 H1FY23 Net Profit Before Tax 50.7 26.1 Adjustments for: Non - Cash Items / Other Investment or Financial Items 11.6 3.2 Operating profit before working capital changes 62.3 29.3 Changes in working capital -43.9 -32.5 Cash generated from Operations 18.4
Slide 14: Management Commentary
Management Commentary Commenting on the Q2 & H1 FY24 performance of the company Mr. Arun Kothari, Managing Director for Venus Pipes & Tubes Limited Said, “We are happy to report robust financial performance with highest ever Revenues of Rs 191.4 crores growing at 51% Y-o-Y and EBITDA growing at a st
Slide 15: Venus Pipes & Tubes Limited overview
Venus Pipes & Tubes Limited Making ourselves as first reference and preference in stainless steel pipes 58+ 86% Vision and tubes manufacturer Clientele base out of PAT CAGR Fortune 500 Companies from FY19 to FY23 in India To provide quality and flawless service for dealing with customer / Diversifie
Slide 16: Product Portfolio & Applications
Product Portfolio & Applications Products manufactured are as per the International Standards to cater both Domestic & International markets Stainless Steel High Precision and Stainless Steel Hydraulic and Stainless Steel Seamless Pipes Stainless Steel Welded Pipes Stainless Steel Box Pipes Heat Exc
Slide 17: Diversified End Use
Multiple End User Industry Diversified End Use Chemical Engineering Fertilizers Pharmaceutical Power Food Processing Paper Oil & Gas Aerospace 16
Slide 18: State of the Art Infrastructure
State of the Art Infrastructure… Strategically located Manufacturing facility at Dhaneti (Kutch) within proximity of Kandla & Mudra ports for enabling imports and exports Facility on a land admeasuring 92,978 Sq. Mt. 17
Slide 19: Stringent Quality Inspection & Testing
…with Stringent Quality Inspection & Testing Rigorous testing system for our products to Ensure Finest Quality is delivered for our products Tensile Test Hydro-static Test Quality Tests Hardness Test Eddy Current Test Non-Destructive Tests Destructive Tests IGC Test Air under Water Test Reverse-bend
Slide 20: Marquee Clientele
Marquee Clientele Vets @ AARTI eo @\ir= adari ajanta <--> b. 2 “ I% ee ENGINEERS f BifeL Cipla Coromandel f= Dalmia & INDIA LIMITED eee | - ISGEC VAIN JK PAPER LTD. VF IsGec. HEAVY amt pra emt cnt ENGINEERING: LTD, IVC Limited nocleFl sca Py MADRAS « torrent NS Navin Fluorine 6 FERTILIZERS TATA 7 In
Slide 21: Awards & Certifications
Awards & Certifications Calendar Years Certifications & Accreditations Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 9001: 2015 & ISO 2016 14001:2015 requirements 2017 Our Company has been verified and recognized as
Slide 22: Experienced Board of Directors
Experienced Board of Directors Arun Kothari Jayantiram M Choudhary Megharam S Choudhary Dhruv M Patel Chairman & Managing Whole Time Director Whole Time Director Whole Time Director Director Associated with the Company since 2021 as Associated with the Company since its Associated with our Company s
Slide 23: Strong Management Team
Strong Management Team Arun Kothari Jayantiram M Choudhary Megharam S Choudhary Dhruv M Patel Chairman & Managing Whole Time Director Whole Time Director Whole Time Director Director Associated with the Company since Associated with the Company since Associated with our Company Associated with the C
Slide 24: Delivering Value to Stakeholders
Delivering Value to Stakeholders May 2022 ✓ Listing of Venus Pipes & Tubes Limited ✓ Listing done on BSE & NSE ✓ Fresh Issue of Equity shares aggregating to ₹ 165.4 Cr. ✓ Objects of the Issue : 1. Financing the project cost towards • Capacity expansion • Technological upgradation • Cost optimization
Slide 25: Industry Outlook
INDUSTRY OUTLOOK
Slide 26: Industry Outlook
Industry Outlook ✓ The Indian stainless-steel sector is the 2nd largest producer and consumer in the world and has a total manufacturing capacity of more than 6.8 Mn tons of stainless steel annually ✓ India’s per capital stainless steel consumption has increased from 1.2 Kg in 2010 to 2.8 Kg in 2022
Slide 27: Industry Growth Drivers
Industry Growth Drivers Industry Growth Drivers ✓ Significant demand for Pipes & Tubes specifically from industry like chemical , pharma, engineering etc. ✓ In value terms, the size of Chemical industry is currently estimated at USD 178 Bn which is slate to grow to USD 300 Bn by 2025, growing annual
Slide 28: Strategies to Support Growth
STRATEGIES TO SUPPORT GROWTH
Slide 29: Capacity Expansion & Backward Integration
Capacity Expansion & Backward Integration Capacity Expansion for Finished Products (MTPA) Capacity Expansion…. Previous Current Particulars 33,600 ~3x Size (mm) Capacity Size (mm) Capacity ~5x Capacity Expansion Seamless 6 – 114.3 3,600 MTPA 6 – 168.3 9,600 MTPA Welded 6 – 219.3 8,400 MTPA 6 – 1,422
Slide 30: Geographical Expansion
Geographical Expansion FY23 Exports in More than 20+ Countries 5.4% ₹ 29.8 Crs 10.5% ₹ 40.4 Crs 4.8% ₹ 14.7 Crs 3.4% ₹ 6.0 Crs FY21 Contribution from Export Revenue Leverage our Existing Relationship to Deepen our Presence in Export Markets 29
Slide 31: Improving Efficiency & Brand Positioning
Improving Efficiency & Brand Positioning Creating Brand for “VENUS” thereby increasing the Productivity & Efficiency Enhancement contribution from direct sales for higher realizations Install acid regeneration plant for lower consumption of acids to improve operating margins and better plant product
Slide 32: Key Takeaways
Key Takeaways Capacity Expansion Geographical Expansion Brand Value Proposing to expand our existing manufacturing capacity We intend to leverage our existing We intend to make consistent efforts to for welded pipes/tubes and seamless pipes/tubes for relationships to further deepen our strengthen ou
Slide 33: Historical Financial & Operational Highlights
HISTORICAL FINANCIAL & OPERATIONAL HIGHLIGHTS
Slide 34: Product Category Split
Product Category Split Revenue (in ₹ Cr) Volume (in MTS) +16% 253 8,506 +33% 221 7,412 7,757 7,146 Welded ✓ Revenue and Volumes have grown 139 125 4,222 tremendously across both our segments in 81 a short span of just 5 years ✓ Volume growth for Welded has been at a FY19 FY20 FY21 FY22 FY23 FY19 FY2
Slide 35: Direct Sales Split
Direct Sales Split Direct Domestic Sales Spilt 3.4% 6.8% 5.3% 1.1% 11.8% 3.6% 4.3% 2.9% 1.1% 7.4% 30.7% 1.2% 5.0% 32.3% 44.6% FY20 FY21 49.7% FY22 FY23 38.8% 40.6% 59.7% 49.7% Chemicals Engineering Fertilizers Pharma Others ✓ Revenue contribution from Other industries has increased from 4.3% in FY20
Slide 36: Sales Split across Geography
Sales Split across Geography ✓ Revenue contribution from exports have increased from 4.8% in FY21 to 5.4% in 30.0% FY23 Geography 37.4% 43.8% 45.8% ✓ Direct domestic sales to end consumers FY21 FY22 FY23 have increased from 37.4% in FY21 to 64.6% 57.9% 5.4% 64.6% in FY23 4.8% ✓ Revenue contribution
Slide 37: Key Historical Financials
Key Historical Financials Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) 552 69 44 +47% +86% 387 +70% 49 32 309 24 35 178 119 12 8 4 4 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Gross Profit Margin EBITDA Margin PAT Margin +510 bps +550 bps +490 bps 18.6% 19.5% 12.7
Slide 38: Historical Profit & Loss Account
Historical Profit & Loss Account Profit and Loss (in ₹ Cr) FY23 FY22 FY21 FY20 FY19 CAGR Revenue from Operations 552.4 386.9 309.3 177.8 118.8 Cost of Goods Sold 444.6 315.0 261.5 157.0 101.6 Gross Profit 107.8 71.9 47.9 20.8 17.1 58% Gross Profit Margins (%) 19.5% 18.6% 15.5% 11.7% 14.4% 510 bps Em
Slide 39: Historical Balance Sheet
Historical Balance Sheet Assets (in ₹ Cr) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (in ₹ Cr) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 183.5 30.4 20.9 17.5 10.0 Total Equity 322.2 128.5 39.9 16.3 12.2 Share Capital 20.3 15.2 8.7 8.7 8.7 Property Plant & Equipments 59.8 2
Slide 40: Historical Abridged Cash Flow Statement
Historical Abridged Cash Flow Statement Particulars (in ₹ Cr) FY23 FY22 FY21 FY20 FY19 Net Profit Before Tax 59.7 42.9 31.0 6.5 4.9 Adjustments for: Non -Cash Items / Other Investment or Financial Items 8.3 5.6 5.1 4.1 2.6 Operating profit before working capital changes 68.0 48.5 36.1 10.6 7.6 Chang
Slide 41: Key Return Ratios
Key Return Ratios ROE* Debt / Equity Ratio ROCE* 59% 2.6 61% 57% 2.4 44% 31% 30% 30% 25% 24% 0.9 14% 0.5 0.3 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23# *The company had made Private Placement on 21st October 2021 of ₹ 59.443 cr 40 # Excluding CWIP of 121.6 crores fro
Slide 42: Thank You
Thank You Venus Pipes & Tubes Limited CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna ( Chief Financial Officer ) cs@venuspipes.com Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Mr. Ayush Haria sagar.shroff@sgapl.net / ayush.haria@sgapl.net +91 98205 19303 / +91