Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q4 FY2024 Earnings Presentation
41 slides from Apollo Pipes's earnings presentation, May 20, 2024
Slide 1: Exchange filing cover letter
May 20, 2024 The National Stock Exchange of India Department of Corporate Services/Listing Limited BSE Limited Exchange Plaza”, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 SCRIP Code: 531761 N
Slide 2: Q4FY24 Earnings Presentation
APOLLO PIPES LTD. Q4FY24 EARNINGS PRESENTATION May’2024 www.apollopipes.com 1
Slide 3: Safe harbour
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
Table of Content 1 Apollo Pipes Overview 2 Growth Levers 3 Macro-Growth Drivers 4 5 6 www.apollopipes.com Future 5 Year Financial Q4FY24 Outlook Highlights Highlights 3
Slide 5: Company Overview
www.apollopipes.com COMPANY OVERVIEW 4
Slide 6: Apollo Pipes at a Glance
Apollo Pipes at a Glance Among the Top 10 5 leading PVC pipe 1,56,000 Ton 700+ manufactures in India Capacity Manufacturing Plants Channel Partners 15% 22% 19% www.apollopipes.com 1600+ 5-year Sales Volume 5-year Revenue 5-year EBITDA SKU’s CAGR CAGR CAGR 5
Slide 7: Q4FY24 at a Glance
Q4FY24 AT A GLANCE ₹245.8 Cr 20,550 MT ₹24.9 Cr 10.1% Sales Volume EBITDA EBITDA Margin Revenue 10% YoY increase 15% YoY decline 154bps YoY decline 2% YoY decline 9% QoQ increase 24% QoQ increase 105bps QoQ incresae 11% QoQ increase ₹6.5 Cr ₹14.9Cr 12.6% 8.2% PAT Cash Profit *ROCE *ROE 57% YoY decli
Slide 8: FY24 at a Glance
FY24 AT A GLANCE ₹977.1 Cr 80,440 MT ₹95.3 Cr 9.8% Sales Volume EBITDA EBITDA Margin Revenue 21% YoY increase 40% YoY increase 232bps YoY increase 7% YoY increase ₹42.4 Cr ₹72.2Cr 12.6% 8.2% PAT Cash Profit *ROCE *ROE 77%YoY increase 38% YoY increase 5.5% was in FY23 9.5% was in FY23 www.apollopipes
Slide 9: Apollo Pipes Key Focus Areas
Apollo Pipes at a Glance Agriculture Segment Water Management Construction Segment Oil & Gas Segment Telecom Ducting Segment • Casing pipes • Hot & cold potable water • Sanitation & Sewage pipes Conveying edible oils and • Drip irrigation & distribution & transportation • Plumbing Pipes chemicals &
Slide 10: Product Portfolio
Product Portfolio Diversified Basket of 1,600+ Products UPVC PIPING PPR-C PLUMBING CPVC PIPING SYSTEM SYSTEM SYSTEM uPVC Pipes & Fittings | uPVC Column Pipes | S W R Drainage Pipes | uPVC Pressure Pipes P P R -C Pipes & Fittings C P V C Pipes & Fittings Well Casing Pipes | Underground Drainage Pipes
Slide 11: Product Portfolio and Company Milestones
Product Portfolio Commercial PVC pipe • Started manufacturing UPVC • Largest plastic piping Concluded promoter Commissioned the Raipur manufacturing operations Plumbing Pipes fittings with solution company infusion of Rs. 142 crore plant to tap Central and Established 3600 MTPA in 180 MTPA capacity
Slide 12: Brand Ambassador Amitabh Bachchan and TV Commercial
Announced Mr. Amitabh Bachchan as 1 Brand Ambassador of APL Apollo New Tv Commercial Launched on 2 19th December 2023 3 6.3 Million Views 4 2.1 Million Views www.apollopipes.com 11
Slide 13: Raveena Tandon Brand Ambassador
1 Raveena Tandon Appointed as Brand Ambassador 2 Social Media campaign launched in Q3FY22 continue to garner good response 8.5 Million Followers Bath Fitting 3 (On Raveena’s Platform) 6.8 Million Followers Digital Campaign, Packaging promotions www.apollopipes.com 4 etc 12
Slide 14: Environment, Social, Governance and Safety Policy
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 Apollo Pipes Ltd. achieves 62nd • Evaluating opportunities to install rooftop solar pla
Slide 15: Growth Levers
www.apollopipes.com GROWTH LEVERS 14
Slide 16: Strategic acquisition in Kisan Mouldings
Strategic acquisition in Kisan Mouldings • Established in 1982 with 40+ yr. old legacy brand • Have a capacity of ~60k Ton • Apollo pipes invested Rs 118 Cr for acquiring majority stake (54%) in Kisan for modernization. • Kisan expected to reach Rs 900 Cr of Revenue by FY27E with 10% EBITDA Margin (
Slide 17: Fund infusion plan in Kisan Mouldings
Fund infusion plan in Kisan Mouldings Region/ capacity Capex/ modernization Timeline First 2 year for plant Maharashtra (West) Rs 30 Cr modernization Capacity modernization/ Further 2-3 yr for plant enhancement in next 5 capacity ramp up years www.apollopipes.com 16
Slide 18: Key Business Strength
Key Business Strength Expanding footprint in India Catering to multiple sectors – Agriculture, Water Management, Infrastructure Proven expertise in complex Strong and highly experienced Management projects Team Multiple and efficient product offerings – Advanced equipment & technology – 1,600+ products
Slide 19: Strengthening distribution network across India
Strengthening distribution network across India to Augment presence and improve market penetration Enjoys a Dadri& Sikandrabad dominant and (Manufacturing Unit) leading presence in North India Extensive distribution network significantly reduces delivery time to 4 8 hours Tapping newer (from 10-12 d
Slide 20: Diversified Product Portfolio
Diversified Product Portfolio with total offerings at 1,600+, Aiming to achieve 2,500+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri & Sikandrabad at U.P., Ahmedabad at Gujarat, Tumkur (Bengaluru) at Karnataka and Raipur at Chh
Slide 21: Capacity Expansion to aid long-term growth plan
Capacity Expansion to aid long-term growth plan Available Capacity 1,56,000 MTPA Ahmedabad, Bengaluru and Raipur www.apollopipes.com line for the value added products at new locations 20
Slide 22: Macro Growth Drivers
MACRO GROWTH DRIVERS www.apollopipes.com 21
Slide 23: PVC Pipe Industry
PVC Pipe Industry The Indian PVC pipes and fittings market expected to register 15% CAGR during FY24 - FY27 • The domestic plastic pipes industry size at ~ ₹ 350Bn • Organized players account for ~70% market share • Key features of plastic pipes against other pipes - Lightweight - Ease of transportat
Slide 24: At the Forefront of multiple sector trends
At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging pipelines and • Improving irrigation schemes for distribution requirements installation of new pipes in transportation farm
Slide 25: Future Outlook
www.apollopipes.com FUTURE OUTLOOK 24
Slide 26: Capacity expansion plan
Capacity expansion plan Existing capacity Ongoing expansion Organic growth Capacity expansion Current capacity 41,500 ton 2,16,000 ton Greenfield Varanasi Plant 30,000 Ton by FY26 Existing Apollo Pipes Ltd plants 1,56,000 Ton New Products- Total capacity Kisan Mouldings Ltd* PVC-O Pipes, Window & do
Slide 27: Focus Areas for FY25
Focus Areas for FY25 Strengthen Undertake a Register solid Penetrate and Improve Undertake foothold in Pan phase-wise growth in sales – establish utilization at the various brand India capacity expansion targeting revenue footprint into existing building at the existing growth of around neighboring
Slide 28: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS www.apollopipes.com 27
Slide 29: Quarterly Performance
Quarterly Performance Q4FY24 Sales Volume (Tons) Revenue (Rs. Cr) 21,219 260.3 20,550 251.9 249.5 19,803 245.8 236.7 18,685 18,868 18,011 221.6 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 EBITDA (Rs. Cr) PAT (Rs. Cr) 29.4 15.0 13.9 26.2 24.1 24.9 1
Slide 30: Financial Trend
Financial Trend Q4FY24 Volume (Tons) Revenue (Rs. Cr) 5 Yr. CAGR 15% 5 Yr. CAGR 22% 80,440 977 915 66,567 784 53,849 44,692 47,333 518 39,823 362 408 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 EBITDA (Rs. Cr) PAT (Rs.Cr) 5 Yr. CAGR 19% 5 Yr. CAGR 12% 50 93 95 44 42 74 68 28 46 24 24
Slide 31: Financial Trend
Financial Trend Q4FY24 Op. Cashflow (Rs. Cr) Net Working Capital (Days) 161 74 74 68 59 56 68 47 23 40 24 22 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 ROE (%) ROCE** (%) Net Debt/ (Net cash) (Rs.Cr) 41 23.9 21.1 18.6 19.0 13.9 13.5 13.2 12.6 9 10.6 www.apollopipes.com 9.5 8.2 5.5 F
Slide 32: Profit & Loss Statement (standalone)
Profit & Loss Statement (standalone) www.apollopipes.com 31
Slide 33: Balance Sheet and Cash flow Statement (standalone)
Balance Sheet and Cash flow Statement (standalone) www.apollopipes.com *Rs 38 Cr of capital advances has been adjusted in Capex from Other Non-current assets 32
Slide 34: Profit & Loss Statement (Consol. with Kisan Mouldings)
Profit & Loss Statement (Consol. with Kisan Mouldings) www.apollopipes.com Apollo Pipes acquired 53.57% stake in Kisan Mouldings on 26th March’24 33
Slide 35: Balance Sheet and Cash flow Statement (Consol.)
Balance Sheet and Cash flow Statement (Consol. with Kisan Mouldings) www.apollopipes.com *Rs 38 Cr of capital advances has been adjusted in Capex from Other Non-current assets 34
Slide 36: Conclusion
CONCLUSION 35 www.apollopipes.com
Slide 37: Key Takeaways
Key Takeaways Increased market presence and Target to achieve improving 25%+ revenue distributor network growth CAGR over to address demand next three years across Leveraging ‘APL Value-added pan-India Apollo’ brand Available Capacity product categories reach and recall of 1,56,000 Ton to provide im
Slide 38: About Us
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 d ec ad es of experience in the Indian P ip e Market, Apollo Pipes ho
Slide 39: Thank You
www.apollopipes.com THANK YOU 38
Slide 40: Press Release: FY24 and Q4FY24 results
Apollo Pipes Limited A- 140, Sector 136. Noida, Uttar Pradesh- 201301 Noida, May 20, 2024: Apollo Pipes Limited, among the top 10 leading piping solution providing Company in India, announced its financial results for the quarter and financial year ended March 31, 2024. FY24 Financial performance hi
Slide 41: Press Release: Management message and About the Company
from 156,000 Ton currently (216,000 Tons including Kisan Mouldings Ltd), we remain confident that our product portfolio along with other value-added offerings like fittings, solvents, bath fittings, adhesives, taps and faucets will enhance our reach and strengthen sales. In addition, we are aiming t