Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q3 FY2020 Earnings Presentation
40 slides from Apollo Pipes's earnings presentation, Feb 4, 2020
Slide 1: Apollo Pipes result presentation intimation to exchanges
?POLLO Sudesh Group ? PIPING SYSTEMS /llfade kr tue 35? - February 04, 2020 The National Stock Exchange of India Department of Corporate Services/Listing Limited BSE Limited Exchange Plaza, s" Floor Phiroze Jeejeebhoy Towers, Plot No C/1, G Block Dalal Street, Fort, Bandra-Kurla Complex MUMBAI - 400
Slide 2: Q3 & 9M FY20 Earnings Presentation
APOLLO PIPES LTD. Q3 & 9M FY20 Earnings Presentation
Slide 3: Safe Harbour
2 Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend",
Slide 4: Table of Content
3 Table of Content Apollo Pipes Overview 1 Growth Levers 2 Macro-growth Drivers 3 Future Outlook 4 5 Year Financial highlights 5 Q3 & 9M FY20 Highlights 6
Slide 5: Company Overview
4 Company Overview
Slide 6: Apollo Pipes at a glance
5 Apollo Pipes at a glance leading PVC pipe manufacturers in Capacity* as on 31st December India 2019 Distributors Dealers/ Manufacturing Plants Products Retailers 5-year Volume 5-year Revenues 5-year PAT CAGR CAGR CAGR * Includes acquired 12,000 MTPA capacity unit in Bengaluru
Slide 7: Presence across Sectors
6 Presence across Sectors Agriculture Segment Water Management Segment •Casing pipes •Drip irrigation & •Hot & cold potable water distribution & •Sprinkler system transportation •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils Construction
Slide 8: Product Portfolio - Diversified Basket of 1,000+ Products
7 Product Portfolio - Diversified Basket of 1,000+ Products PIPES uPVC PIPES uPVC COLUMN PIPES DRAINAGE uPVC PIPING SYSTEM uPVC RING FIT PIPES uPVC RIBBED SCREEN PIPES PIPES AND FITTINGS FITTINGS uPVC PLUMBING PIPING SYSTEM uPVC AGRI FITTINGS PIPES cPVC PIPING SYSTEM FITTINGS OPTICAL FIBRE PIPES HDP
Slide 9: Success Milestones
8 Success Milestones • Started manufacturing • Concluded promoter uPVC Plumbing fittings infusion of Rs. 202 crore with 180 MTPA through issuance of Equity capacity Shares and fully • Commenced convertible warrants on • Commenced PVC manufacturing cPVC • Largest plastic piping Preferential basis pip
Slide 10: Experienced Management Team
9 Experienced Management Team Mr. Sameer Gupta Mr. Sanjay Gupta Managing Director Chairman B.Com Honors from Delhi University (SRCC) Mr. Sanjay Gupta is the second generation of the entrepreneurial family Mr. Sameer Gupta joined the family business in the year 2000 and Holds a rich experience of ove
Slide 11: Strong governance and Management
10 Strong governance and Management Board of Directors Promoter Directors Non Executive Directors Independent Directors Mr. Sameer Gupta Mr. Sanjay Gupta Mr. Pradeep Kumar Jain Managing Director Chairman Independent Director Mr. Saket Agarwal Ms. Neeru Abrol Director Independent Director Mr Ramesh C
Slide 12: Our Environment, Social, Governance and Safety Policy
11 Our Environment, Social, Governance and Safety Policy • Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes − Installed rooftop solar plant at Dadri for optimum utilsation of energy − Evaluating opportunities to install rooftop solar plants at Ahmedabad and Bengal
Slide 13: Growth Levers
12 GROWTH LEVERS
Slide 14: Key Business Strengths
13 Key Business Strengths Catering to Strong and Advanced Multiple and Proven expertise multiple sectors – highly equipment & Expanding efficient product in complex Agriculture, Water experienced technology – cost footprint in India offerings – projects Management, Management efficient 1,000+ produc
Slide 15: Strengthening distribution network across India
14 Strengthening distribution network across India to augment presence and improve market penetration Enjoys a dominant and Delhi/NCR leading presence Head Office in North India Dadri (Manufacturing Unit-I) Extensive distribution Tapping newer network markets to reduce significantly inventory cost f
Slide 16: Diversified Product Portfolio with total offerings at 1,000+
15 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri and Ahmedabad • Emphasis on innovation: One of the first companies to launch “Super Lock S
Slide 17: Capacity Expansion to aid long-term growth plan
16 Capacity Expansion to aid long-term growth plan – to achieve 90,000 MTPA in H1 FY21 Available capacity* of 75,000 MTPA Aim to deliver a healthy Primary focus to improve 25%+ CAGR over the next 3 utilization at Dadri, years Ahmedabad and Bengaluru Establishing a manufacturing Undertaking brownfiel
Slide 18: Leverage the 'APL Apollo' brand reach and recall
17 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth The ‘APL Apollo’ Brand Edge enables better reach and product competitiveness Branding Activities – Sports sponsorship Principal Sponsor of Pro Kabbaddi League IPL TVC – Principal sponsor of Delhi Capitals Branding
Slide 19: Macro Growth Drivers
18 MACRO GROWTH DRIVERS
Slide 20: PVC pipe industry
19 PVC pipe industry The Indian PVC pipes and fittings market expected to DEMAND SEGMENTATION – DOMESTIC INDUSTRY register 15% CAGR during FY18 - FY26 Others, 5% Sewerage, 12% • The domestic plastic pipes industry size at ~Rs. 315B Irrigation, 45% • Organized players account for ~60% market share •
Slide 21: At the Forefront of multiple sector trends
20 At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging • Improving irrigation schemes distribution requirements pipelines and installation of for farmers • Water Management, W
Slide 22: Future Outlook
21 Future Outlook
Slide 23: Focus Areas for FY20 & FY21
22 Focus Areas for FY20 & FY21 Penetrate and establish footprint Strengthen foothold in existing into neighboring markets in Central markets of North and Western India and Eastern India Undertake a phase-wise capacity expansion at the existing facilities Improve utilization at the existing over the
Slide 24: 5-Year Financial Highlights
23 5-Year Financial Highlights
Slide 25: Financial Trend
24 Financial Trend CAGR – 43% CAGR – 59% Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 374 13% 14% 14% 12% 301 243 9% 209 90 8 24 32 41 51 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 CAGR – 19% CAGR – 15% PAT (Rs. Cr) Volume (MTPA) 22 24 39,823 33,707 16 26,710 28,941
Slide 26: Financial Trend
25 Financial Trend ROCE (%) ROE (%) 28.0 26.0 25.0 24.0 24.0 19.0 18.0 16.0 15.0 13.0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 Total debt (Rs. Cr) Debt to Equity (x) 0.9 41 34 0.6 30 20 0.3 0.2 -35 -0.2 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY201
Slide 27: 5-year Financial Track-record
26 5-year Financial Track-record Particulars FY2015 FY2016 FY2017 FY2018 FY2019 Net Worth (Rs. Cr) 45.0 55.0 91.4 113.3 229.8 Capex for the year (Rs. Cr) 24.0 12.2 9.1 17.1 48.2 Inventory (Rs. Cr) 24.9 13.7 22.7 44.3 52.3 Inventory Days 101.5 24.0 34.3 55.2 52.7 Debtors (Rs. Cr) 19.7 29.5 34.2 38.5
Slide 28: Operational & Financial Highlights Q3 & 9M FY20
27 Operational & Financial Highlights Q3 & 9M FY20
Slide 29: Q3 FY20 at a glance
28 Q3 FY20 at a glance Volume EBITDA PAT Net Cash 15% yoy increase 25% YoY increase 25% yoy increase Capacity* as on 31st ROCE in FY19 Shares of Apollo Pipes list on the December 2019 National Stock Exchange Launch of Solvent Cement Distributors Net WC days Operating cash flows Products Continuous f
Slide 30: Key Developments
29 Key Developments • Commenced manufacturing of PVC ‘Solvent Cements’ in January 2020 – a superior quality product with excellent installation properties that can be used in various piping applications Strengthening • Key product features: 1) Meets high ASTM International standards used for plastic
Slide 31: Key Developments
30 Key Developments Successfully integrated the • The Company has successfully integrated the recently acquired manufacturing facility recently at Tumkur, Bangalore, in its business operations. The plant has started contributing to acquired 12,000 performance from January 2020 onwards MTPA manufactu
Slide 32: Key Developments
31 Key Developments • Apollo Pipes delivered a healthy volume growth despite the challenging demand conditions in the domestic market. Performance was primarily driven by a steady demand revival across product segments including the high margin product segments. Volumes stood at 10,712 MTPA as again
Slide 33: Key Financial & Operational Parameters
32 Key Financial & Operational Parameters Product-wise Revenue Breakup Product Revenue (excluding Others segment) Break-up –9M FY20 Particulars Y-o-Y Y-o-Y Q3 FY20 Q3 FY19 9M FY20 9M FY19 (Rs. crore) Shift Shift uPVC Pipes 65.45 59.83 9% 221.04 207.24 7% Fittings, 16% cPVC Pipes 5.34 3.08 73% 14.82
Slide 34: Abridged P&L Statement
33 Abridged P&L Statement Particulars (Rs. crore) Q3 FY20 Q3 FY19 Y-o-Y Shift 9M FY20 9M FY19 Y-o-Y Shift Total Income From Operations (Net) 100.02 87.04 15% 313.83 272.41 15% Total Expenditure 89.36 78.51 14% 278.04 243.82 14% Raw Material expenses 69.30 63.34 9% 223.12 198.12 13% Employee benefits
Slide 35: Financial Overview and Discussion (YoY)
34 Financial Overview and Discussion (YoY) Income From Operations during 9MFY20 stood at Rs. 313.8 crore, higher by 15% Y-o-Y; Income from Operations in Q3 higher by 15% at Rs. 100.02 crore • The Company has delivered a healthy operational and financial performance during Q3 & 9M FY20. This was desp
Slide 36: Management's Message
35 Management’s Message “We have delivered an encouraging set of results during quarter despite facing subdued demand conditions and weak market sentiments. In the quarter, volumes stood healthy at 10,712 MTPA, higher by 15% YoY. This volume performance was driven by improving contribution across pr
Slide 37: Conclusion
36 Conclusion
Slide 38: Key Takeaways
37 Key Takeaways Aiming capacity upgradation to the tune of 90,000 MTPA Target to achieve 25%+ sales volume growth CAGR over next three years Value-added product categories to provide impetus to volumes and profitability Increased market presence and improving distributor network to address demand a
Slide 39: About Us
38 About Us Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipes hold
Slide 40: Thank You
Thank You G& APLAP SYSTEMS