Jyoti Resins & Adhesives Ltd. · BSE:JYOTIRES
Jyoti Resins & Adhesives — Q2 FY22 Earnings Presentation
36 slides from Jyoti Resins & Adhesives's earnings presentation, Nov 16, 2021
Slide 1: Q2 F.Y. 21-22 Investor Presentation filing letter to BSE
| EURO | 4a JYOTI RESINS & — Wy ADHESIVES LTD. SYNTHETIC WOOD ADHESIVE Regd. Office : Survey No. 873, Village : Santej, Tal.: Kalol, Dist.: Gandhinagar. Pin : 382721 Phone : (02764) 286327, (M) : 94273 58400 Administrative Office : 1104-1112, ELITE, Nr. Shapath Hexa Opp. Kargil Petrol Pump, Nr. Sola
Slide 2: Jyoti Resins and Adhesives Ltd Q2FY22 Investor Presentation
Jyoti Resins and Adhesives Ltd Q2FY22 Investor Presentation 1 Refer to Disclaimer Investor Presentation
Slide 3: Disclaimer
DISCLAIMER This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of Jyoti Resins and Adhesives Ltd.(“Euro7000” or "Company“), nor shall part, or all, of this document form the basis of, or be relied on in conne
Slide 4: Core Topics
CORE TOPICS 01 Company background About Us | Our Journey | Our Network | Manufacturing Our strengths & commitment | Management Team 02 Business Model Business Model | Our competitive edge 03 Performance highlights Quarter Performance snapshot | Financial highlights Annual Performance snapshot | Fina
Slide 5: Company background
Company background 4 Investor Presentation
Slide 6: About Us
About Us The company launched its brand “Euro • JYOTI RESINS AND ADHESIVES LTD is a manufacturer of synthetic resin 7000” in 2006, and is now the second adhesives. The Company manufactures various types of wood adhesives (white glue) largest (No 2) selling wood adhesive (white glue) brand in India i
Slide 7: Our Journey
Our Journey 2016-2017 Company 2018-2019 Company 2021 Company expands production presence grows to 12 states initiates plans to capacity to 500 TPM & expands capacity to 1000 increase capacity to TPM 1500 TPM 8 9 10 7 2012 Company forays into Maharashtra 6 5 4 and other key markets 3 2010 – Company 2
Slide 8: Our Network today
Our Network today 12 300 STATES SALES FORCE 22 10,000 BRANCHES RETAILERS 50 DISTRIBUT- 300,000 ORS CARPEN- TERS 7 Investor Presentation
Slide 9: Manufacturing & operations
Manufacturing & operations Manufacturing Plant Our manufacturing plant at Santej, Ahmedabad, Gujarat is currently a 1000 TPM manufacturing facility and is being expanded to 1500 TPM during FY22. Administrative Offices Our corporate office is at Ahmedabad, Gujarat. We also have a Head Office in Mumba
Slide 10: Our strength & commitment
Our strength & commitment 12 50 22 STATES DISTRIBUT- BRANCHES ORS Best Customer Strong Technical High Standard Raw Service Support Material High Quality Quick Delivery Strong Warehousing Machines Facilities 300 300,000 10,000 SALES CARPEN- RETAILERS FORCE TERS 9 Investor Presentation
Slide 11: Management Team
Management Team Jagdish N Patel Chairman and Managing Director Mr Jagdish N Patel is the first generation entrepreneur and started this company in 1994 eyeing the huge opportunity he saw in the market for organized players in adhesives. With his financial prowess and effective team management capabi
Slide 12: Management Team
Management Team Utkarsh J Patel Executive Director In 2005, Mr. Utkarsh Patel, Executive Director, joined the business, after completing his Chemical Engineering and Management courses in the field of Marketing and International Business Management. He is currently driving the business on all fronts
Slide 13: Business Model & Our Edge
Business Model & Our Edge 12 Investor Presentation
Slide 14: Business Model
Business Model The company imports raw materials from several The company also has an efficient carpenter countries. The raw materials are then processed reward model system which is a royalty program and white glue is manufactured in their plant at for carpenters. On every bucket / drums purcha
Slide 15: Our competitive edge
Our competitive edge 01 Low cost manufacturing; Asset light 02 Our network - Overall manpower costs is limited to 15-16% of revenues - Presence in 12 states - Selling and Distribution expenses maintained under 12% - Operating through 50 distributors for smaller cities - Asset turnover is at 8x - Ope
Slide 16: Q1FY22 Performance Highlights
Q1FY22 Performance Highlights 15 Investor Presentation
Slide 17: Performance Snapshot
Performance Snapshot Revenue growth was up 98.3% YoY led by significant revival 98.3% 11.6% in demand post Wave 2 of Covid. Growth in EBITDA Revenue Margin Hardening of raw material prices due to supply disruptions and sharp increase in freight rates led to compression in Gross Margins, thereby impa
Slide 18: Quarterly Financial highlights
Quarterly Financial highlights Particulars (Rs mn) Q2FY22 Q1FY22 Q2FY21 YoY% H1FY22 H1FY21 YoY% Net Sales 486.2 270.1 245.2 98.3% 756.3 332.0 127.8% Expenditure 430.0 230.4 200.4 114.5% 660.4 277.9 137.6% EBITDA 56.2 39.7 44.8 25.5% 95.9 54.1 77.3% EBITDA Margin (%) 11.57 14.69 18.27 -671 bps 12.68
Slide 19: Annual Performance Highlights
Annual Performance Highlights 18 Investor Presentation
Slide 20: Annual Performance Snapshot
Annual Performance Snapshot +75% Revenue crossed important milestone of Rs 100 cr in FY21 Return on Capital Employed for FY21 2nd Largest brand in India Consistent growth in Operating & Net Profits & Margin. 2nd largest selling Wood Adhesive brand Both have increased by 4x in last three years in Ind
Slide 21: Annual Income Statement
Annual Income Statement PARTICULARS (INR Mn) FY17 FY18 FY19 FY20 FY21 Net Sales 423.5 542.3 686.9 735.4 1012.9 Expenditure 410.6 525.0 658.3 618.9 908.6 EBITDA 12.9 17.4 28.6 116.5 104.4 EBITDA Margin (%) 3.1% 3.2% 4.2% 15.8% 10.3% Other Income 0.2 0.1 5.3 13.5 46.3 Depreciation 0.8 1.1 2.5 4.8 6.2
Slide 22: Financial highlights (1/3)
Financial highlights (1/3) Revenues EBITDA & EBITDA Margins 1,100.0 140 18.0 1,012.9 1,000.0 15.8 16.0 120 900.0 14.0 800.0 100 722.2 686.9 12.0 700.0 10.3 Rs mn 80 10.0 600.0 542.3 Rs mn (%) 500.0 470.9 423.5 60 8.0 400.0 6.0 300.0 266.0 40 4.2 3.4 3.1 3.2 4.0 200.0 2.6 20 100.0 2.0 - 0 - FY15 FY16
Slide 23: Financial highlights (3/3)
Financial highlights (3/3) Net Profit & PAT Margin (%) (excl exceptional Earnings per share (Rs) 120.0 11.3 12.0 30.0 10.2 100.0 10.0 25.0 80.0 8.0 20.0 Rs mn (Rs) (%) 60.0 6.0 15.0 40.0 3.3 4.0 10.0 1.9 20.0 2.0 5.0 1.0 0.8 0.5 - - - FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20
Slide 24: Financial highlights (2/3)
Financial highlights (2/3) Net worth and Return Ratios (Average) Net Debt Equity ratio & Interest Coverage 300.0 93.9 100.0 0.6 250 232.0 90.0 0.5 250.0 0.5 75.2 80.0 0.4 200 70.0 160.1 200.0 0.4 60.0 150 Rs mn (%) 150.0 46.3 50.0 0.3 40.0 100 31.6 100.0 27.7 0.2 26.2 30.0 44.9 14.1 20.0 50 50.0 0.1
Slide 25: Dividend History
Dividend History Dividend Paid (% of face value Rs 10) 25% 30% FY2019-20 FY2020-21 24 Investor Presentation
Slide 26: Way Forward
Way Forward 25 Investor Presentation
Slide 27: Way forward
Way forward ENHANCE PRODUCTION CAPACITY BY 50% 1 Owing to sharp demand and growth in our products, we have undertaken the process to increase our production capacity from 1000 TPM to 1500 TPM 2 EXPAND DISTRIBUTION NETWORK AND OUR BRANCHES We are looking to expand our reach in a few more states as we
Slide 28: Product Portfolio
Product Portfolio 27 Investor Presentation
Slide 29: Diversified Product Portfolio
Diversified Product Portfolio Anti termite Water proof, Anti termite, Cold & Hot press Waterproof, Anti termite, applications Heat & fungal resistant applications Fast drying (2-3 hours) Waterproof, Anti termite, For PVC and Acrylic sheet Waterproof, Anti termite, Waterproof, Anti termite, Heat & fu
Slide 30: New Product Launches (last 6 months)
New Product Launches (last 6 months) EXTREME 3 HI STRONG THREE BENEFITS IN ONE ADHESIVE Fast Drying Adhesive 2-3 hours handling strength Waterproof adhesive Anti termite formula EURO EWR COLD PRESS EXPERT Suitable for cold press Economy grade with extra strength Use for furniture industr
Slide 31: Applications
Applications USAGE OF OUR PRODUCT PAKKA JOD, HAMESHA 30 Investor Presentation
Slide 32: Events
Events Dealers meet – Ahmedabad - 2020 Contractor Meet – Mumbai - 2020 Contractor Meet – Nagpur - 2020 Contractor meet – Ahmd, Rajkot, Baroda - 2020 ACETECH Exhibition – 2019 - Mumbai Sponsoring festivals and events 31 Investor Presentation
Slide 33: Connecting users & dealers digitally
Connecting users & dealers digitally Scan barcode % collect Loyalty Points Like, Share & Follow our facebook page 32 Investor Presentation
Slide 34: Shareholding Pattern & Relative Price Performance
Shareholding Pattern & Relative Price Performance 33 Investor Presentation
Slide 35: Shareholding & Relative Price performance
Shareholding & Relative Price performance Shareholding pattern (%) Relative Price Performnace 53.40% 52.79% 51.02% 46.60% 47.21% 48.98% Jun'19 Jun'20 Jun'21 Promoter Public 34 Investor Presentation
Slide 36: Thank You
Thank You FOR FURTHER INFORMATION PLEASE CONTACT JYOTI RESINS & ADHESIVES LTD KAPTIFY Consulting Email: info@euro7000.com Strategy & Investor Relation Advisory | Consulting Website: www.euro7000.com Email: contact@kaptify.in Tel: +91 8452886099 Website: www.kaptify.in 35 Investor Presentation
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