Eastern Treads Limited · BSE:EASTRED
Eastern Treads — Investor Presentation (July 2016)
32 slides from Eastern Treads's investor presentation, July 2016
Slide 1: Corporate Presentation July 2016
CORPORATE PRESENTATION July - 2016
Slide 2: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause actual r
Slide 3: Index
Index Financial Performance 04 Company Overview 09 Retreading Industry 22 Going Forward 29 About Us 31 3
Slide 4: Financial Performance
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Slide 5: Q1 FY17 Performance
Q1 FY17 Performance Q1 FY17 Highlights • Revenue at Rs. 21.98 Crore, up 8.5% YoY • EBITDA (excluding Other Income) at Rs. 2.05 Crore, higher by 23.5% YoY – EBITDA margins expand by 114 bps to 9.3% • PAT enhanced by 20.0% to Rs. 0.91 Crore from Rs. 0.76 Crore in Q1FY16 • Q1FY17 EPS at Rs. 1.74 in the
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q1FY17 performance, Mr. Navas M Meeran – Chairman of Eastern Treads Ltd. said: “The Company has delivered a robust performance in the quarter under review where enhanced volumes aided higher utilizations levels leading to margin expansion and improved profit generati
Slide 7: Five-Year Financial Trend
Five-Year Financial Trend Revenue (Rs. in crore) EBITDA (Rs. in crore) 85.33 89.25 87.61 87.59 7.68 65.00 4.90 4.09 2.32 2.60 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 PAT (Rs. in crore) EPS (in Rs.) 3.41 6.52 1.64 1.58 1.06 1.07 3.07 3.01 2.05 2.02 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY
Slide 8: Five-Year Financial Trend
Five-Year Financial Trend Net Worth (Rs. in crore) Debt (Rs. in crore) 11.77 19.16 9.21 15.06 16.38 13.34 7.18 12.00 5.87 4.34 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 8
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Slide 10: Eastern Treads Ltd. (ETL)
Eastern Treads Ltd. (ETL) Pioneers in Manufacturing and Marketing of Tread Rubber used for Retreading Tyres •Over two decades of growing presence with strong customer focus •ISO 9001-2008 certified production capacity of 12,000 tons per annum at Oonnukal, Kerala Building Comprehensive Ecosystem acro
Slide 11: Creating a Sustainable Ecosystem
Creating a Sustainable Ecosystem • ETL is transitioning from a tread rubber manufacturer to a leading enabler of tyre retreading ecosystem in India. • For retread partners, ETL enables access to high quality tread rubber supply and world-class retreading equipment with low capital deployment. • Part
Slide 12: Milestones
Milestones • Production capacity at • Opened 12,000 MT first company- 2016 owned • Initiated rereading export outlet operations by entering 2015 • Incorporated as a • Distribution UAE private limited expanded market company outside 2014 • Initiated cold press Kerala market 2012 retread manufacturing
Slide 13: Tyre Retreading Products
Tyre Retreading Products Precured Tread Rubber • Guaranteed high mileage performance aiding reduction in operating cost • Uniform tread wear providing good directional stability • Consistency in quality & supply • Product range from Auto to JCB • Excellent grip for safety Black Vulcanising Cement Bo
Slide 14: Production Facility
Production Facility • Capacity 1,000 tons per month at Oonnukal, Kerala - Tread Rubber- 810 tons, Bonding gum- 78 tons and Black Vulcanizing Cement – 112 KL - Current utilization at ~45% • Set up optimal manufacturing process driven by a technically proficient workforce and backed by extensive inves
Slide 15: PreCured Treads – Extensive Product Portfolio
PreCured Treads – Extensive Product Portfolio Truck Nylon Tyre 17 Patterns Truck Exports Radial 24 Patterns 27 Patterns Pre Cured Treads Truck Car & Auto Mines 14 Patterns 8 Patterns LCV 18 Patterns 15
Slide 16: Distribution and Support Channels
Distribution and Support Channels • 84 dealers servicing 1,500 plus multi branded retreaders across 17 states – this open market channel Dealers constitutes the traditional sales network that uses ETL’s products in the retreading process on a non-exclusive basis. Exclusive • 32 Exclusive Retreaders
Slide 17: Wide Distribution Presence
Wide Distribution Presence Dealers 84 Exclusive Retreaders 32 Infinity Zones 25 RTC relationships 6 Company Outlets 2 Company Own Depots 10 Punjab C&F 1 Delhi Rajasthan Uttar Pradesh Madhya Pradesh Assam Gujarat Jharkhand West Bengal Maharashtra Odisha Goa Chhattisgarh Andhra Pradesh Karnataka Telan
Slide 18: Board of Directors & Management Team
Board of Directors & Management Team Mr. Navas M Meeran - Chairman Mr. M.E Mohamed - Managing Director & WKMP Chairman of Eastern Group of Companies with substantial Retired from Kerala State Housing Board as Executive Engineer experience in leading businesses across verticals Vast experience in pla
Slide 19: Board of Directors & Management Team
Board of Directors & Management Team Mr. K.S. Neelacanta Iyer - Independent Director Mr. Naiju Joseph - Director Vast experience and expertise in finance, accounts and company Hails from a business family of Vazhakulam engaged primarily law matters in tyre retreading industry Practicing Chartered Ac
Slide 20: Strengths - One Stop Solution For All Retreading Needs
Strengths - One Stop Solution For All Retreading Needs Ensure Quality Raw Focus on R&D Material - High Quality Tread Rubber • Experts For Grading Rubber • Stringent Quality Plan Experts For Grading Rubber For Incoming, In process & Finished Product Testing Invests heavily on employee • Testing And L
Slide 21: Shareholding Pattern & Share Price Movement
Shareholding Pattern & Share Price Movement Others (including corporate Share Price movement for 1 year bodies) 300 6% 250 200 Public < 2 lakh Base 100 21% 150 100 Promoter 50 54% Public > 2 lakh 0 8% BSE 500 KSIDC 12% 21
Slide 22: Retreading Industry
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Slide 23: Retreading and its types
Retreading and its types Retreading is a safe, efficient and environmentally friendly way to breathe new life into worn tyres: The "worn-out" tread of the tyre is replaced with a brand-new one and this means that the tyre can be used again! There are two techniques for retreading: Cold Hot Process P
Slide 24: Retreading Process
Retreading Process RE-CAPPING INSPECTION New tread is then wrapped and bonded Carefully around the freshly inspected worn buffed surface using out tyres (known heat and pressure with as casings) are computer aided used for quality inspection to retreading ensure high performance QUALITY BUFFING CONT
Slide 25: Retreading - Global Usage
Retreading - Global Usage Europe • 4.7 million truck tyres were retreaded in the European Union in 2014 United States • Truck tyres are designed to be retreaded 3-5 times, aircraft tyres • Retreading saves $ 3 billion annually upto 10 times for the US trucking industry • 40-45% of truck tyres in the
Slide 26: Industry Trends
Industry Trends Expanding Road Networks • Government’s targeted construction momentum now 30 kms per day, new project awards of 10,000 kms in F16 and targeted 12,000 kms in FY17 • Revival of stalled projects and new project momentum has led to completion of 6,300 kms in FY16, 10,000 kms targeted for
Slide 27: Industry Trends
Industry Trends More Radialization of Tyres in India • Improving highway and city road conditions are leading to more radialization of truck tyres • By 2020, 50% of tyres on Indian roads are expected to be radial tyres, from 25% today • Radial tyres have 20% longer life and provide better riding com
Slide 28: Benefits of Retreading
Benefits of Retreading • Retreaded popular truck tyres cost 30%-50% of the price of new tyre Cost Efficiency • During a 3 tyre run (1,80,000 km) cycle, about Rs. 43,000 can be saved by a popular size truck • Conserves natural resources –Rubber and Oil • Reduces environmental pressure from elongating
Slide 29: Going Forward
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Slide 30: Outlook
Outlook • Monetary advantages and environmental considerations are aiding popularity of retreaded tyres Retreading gaining • Improving road network, increased economic activity, higher radialisation prominence in the and potential implementation of GST are all positives for long term growth of the s
Slide 31: About Eastern Treads Limited (ETL)
About Eastern Treads Limited (ETL) ETL, a brand from the bouquet of the Eastern Group, focuses on manufacturing and marketing tyre-retreading materials like pre-cured rubber, bonding gum, vulcanizing solutions and many other accessories. The Company has a national presence across 17 States having ti
Slide 32: Thank You
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