Kamdhenu Limited · NSE:KAMDHENU
Kamdhenu — H1 FY20 Earnings Presentation
45 slides from Kamdhenu's earnings presentation, Nov 12, 2019
Slide 1: Kamdhenu Limited filing cover letter
DHENU KAMDHENU LIMITED 2nd Floor, Tower - A, Building No. 9, DLF Cyber City, Phase - Ill, Gurugram GROUP PIN: 122002, (Haryana) Phone: - 0124 - 4604500, Fax: 0124 - 4218524 E-mail: kamdhenu@kamdhenulimited.com, website: www.kamdhenulimited.com lih November, 2019 To, To, The Manager- Listing The Mana
Slide 2: Investor Presentation November 2019
INVESTOR PRESENTATION November 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kamdhenu 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 securities,
Slide 4: Q2 & H1 FY20 Financial Highlights
Q2 & H1 FY20 Financial Highlights
Slide 5: Core Steel TMT Business: Delivering Quality Earnings
Core Steel TMT Business : Delivering Quality Earnings Revenue Rs. Crs (Excl. Trading) Royalty Income (Franchise) Rs. Crs PBT Rs. Crs Recouped its business Focus on own manufacturing Improved in sustainability of strategy by reducing B2B and Asset light franchisee based Profits with Quality Earnings
Slide 6: Core Steel TMT Business: Revenue Break-Up
Core Steel TMT Business : Revenue Break-Up Royalty Income through Trading Sales Own Manufacturing Franchisee Sales -4% +23% Increased Focus on Own Manufacturing -52% 93.0 89.2* 23.4 & Franchisee Based Business 164.8 Q2 FY20 18.9 • Improved Margins • Better efficiencies with Higher RoE and RoCE • Inc
Slide 7: Improved Efficiencies driven by Steel Business
Improved Efficiencies driven by Steel Business Return on Equity (ROE) Return on Capital Employed (ROCE) Debt to Equity Ratio Steel Business + 560 bps + 600 bps 25.3% 25.1% 24.4% 26.0% 0.6 19.7% 18.4% 18.1% 20.0% 0.3 0.3 0.2 Mar-17 Mar-18 Mar-19 Sep-19 Mar-17 Mar-18 Mar-19 Sep-19 Mar-17 Mar-18 Mar-19
Slide 8: Paints Business: Key Updates
Paints Business : Key Updates ❑ Hive-off of the Paint Division through a de-merger into a Revenues separate mirror image shareholding company ▪ Better scope for independent growth of Steel & Paint Divisions -16% -18% 55.3 104.7 ▪ This is expected to result in independent and better management focus
Slide 9: Overview
Overview Brand Turnover India's Leading Company 75+ Franchise Units to dealing with Manufacturing, manufacture steel rebars, Distribution, Marketing & Rs. 8,000+ Crores in FY18 structural steel products & Colour Branding coated Profile Sheets Rs. 12,000+ Crores in FY19 KAMDHENU is Largest TMT sellin
Slide 10: Our Journey
Our Journey ▪ 1995- Production of ▪ 2006- IPO – Listed at ▪ 2016- Name Changed from Kamdhenu Steel Bars NSE/BSE Ispat Ltd. to Kamdhenu Ltd. – positioned as branding and marketing ▪ 2000- Certified for ▪ 2008- Forayed into company international quality Decorative Paints standards ISO 9001 & Business
Slide 11: Unique Business Model
Unique Business Model
Slide 12: Asset Light Business Model
Asset Light Business Model… Kamdhenu Group Innovator – We do Research and Franchise Business Model helped in creating introduce new products based on Customer Requirement in the Market BRAND LEADERSHIP in STEEL RETAIL Franchise Dealer Dealers / Distributors Franchise Distributor Manufactures product
Slide 13: Creates Long-term Sustainability
…creates Long-term Sustainability Saving Transportation cost Increase in Market share . Enhanced revenue and increase in Profitability due to Royalty earned Improvement in Brand Equity Advantage to Kamdhenu Easy availability of product in all parts of the country Ensure quick delivery of Products to
Slide 14: Win-win for Franchises
…with win-win for Franchises Expertise & Experience Quality Assurance We provide franchise units with our Expertise Assurance of Quality from Kamdhenu gives and Experience for an efficient business comfort to End Customers Ready Marketplace Centralized Publicity Ready Platform in niche market giving
Slide 15: Pan India Decentralized Manufacturing
Pan India Decentralized Manufacturing Decentralized Outsourced Manufacturing Model ▪ Communication : Working with a local manufacturer makes the communication process easy. Real time conversations result in a better understanding of the specifics and preferences of the products by the Customer ▪ Low
Slide 16: Huge Capacities at ZERO Capex
Huge Capacities at ZERO Capex Manufacturing Capacities - Franchises Company Owned - Manufacturing, R&D and T&D Steel Division : Bhiwadi Production Capacity : ▪ Steel Rebars – 33 Lacs MT per annum ▪ Structural Steel – 5 Lacs MT per annum ▪ Recently increased Capacity from 72,000 MT to 156,000 MT per
Slide 17: Branded Product Portfolio
Branded Product Portfolio
Slide 18: Strong Product Portfolio for all User Segments
Strong Product Portfolio for all User Segments Kamdhenu TMT Bars Kamdhenu SS 10000 TMT Bars Kamdhenu – Nxt TMT Next Generation Interlock Steel and TMT Bars are thermo-mechanically- TMT Bars are thermo-mechanically- has got the angular double rib design treated through leading world treated through l
Slide 19: India's largest Branded TMT Bars
India’s largest Branded TMT Bars India’s Largest brand in TMT (Thermo Mechanically Treated) steel bars BRAND with in-house capacity of 156,000 MT p.a. State-of-the-art Tempcore Technology from CRM, Belgium 44 Franchisee Units under “KAMDHENU Brand” steel rebars with the production capacity of 33 Lac
Slide 20: Structural Steel - Fastest growing segment
Structural Steel - Fastest growing segment Kamdhenu Limited manufactures Structural Steel under franchisee arrangement Description Special Contours ▪ One such product which continues to pioneer new innovations ▪ Production of a multitude of special contours such as: ▪ It is counted as one of the mos
Slide 21: Decorative Paints Among Top Brands in India
Decorative Paints Among Top Brands in India Commenced SKUs Kamdhenu Paints – COLOUR DREAMZ 2008 set up its own unit for 40+ SKUs across 10+ product manufacturing of decorative Paints categories under its flagship brand Dealers Market Position ~4,000+ dealers associated Top Paints Amongst the with th
Slide 22: Extensive Product Range
Extensive Product Range Emulsions Primers Type Premium Regular Type Premium Regular Water Based Exterior Weather Weather Kamo Exterior Sealer 1st Quality Universal Primer Supreme Classic Shield Solvent Based Wood Primer Red Oxide Universal Primer (ST) Kamo Shine Velvety Sheen & Shine Interior Distem
Slide 23: Extensive Product Range
Extensive Product Range Stainers, Specialty and Other Coatings Construction Chemicals Kamo Replica Kamometallica Kamoshoraseal Designer & Kamocrete CRP Anti Efflouroscent The Special Effect Metallic Lustre Concrete Repair Primer Textured Paints Paint Paint Product Kamoproof ALW Kamoroofcoat NC Lacqu
Slide 24: Niche Products with high Potential
Niche Products with high Potential Premium Wood Finish Water Proofing Solutions Floor Coat Dual Primer Our specialized water proofing Kamo Floor Coat (KFC) is a It's a unique primer which can be Kamwood Premium Wood finishes solutions are an aid to the specialized paint (based on Fast applied on the
Slide 25: Brand Kamdhenu
Brand “KAMDHENU”
Slide 26: Kamdhenu Brand Sales over Rs. 12,000 crores
“KAMDHENU” – Brand Sales over Rs. 12,000 crores Brand Expenses In Crores Brand Creation over years 103 69 70 63 Premiumization of Products 48 33 39 ▪ International Quality with competitive prices FY13 FY14 FY15 FY16 FY17 FY18 FY19 Brand Expenses to Overall Brand Sales Results 1.1% 1.1% Positive Rela
Slide 27: Celebrity Participation in Business events
Participation of Noted Celebrities Celebrity Participation in Business events Kamdhenu has strategically used it’s celebrity repertoire to create visibility at all levels Madhuri Dixit Anil Kapoor Sonam Kapoor Karisma Kapoor Kareena Kapoor Emraan Hashmi Preity Zinta Malaika Arora Sonu Nigam Govinda
Slide 28: Brand Promotions - Print & Outdoor Media
Brand Promotions - Print & Outdoor Media Medium Partner Newspapers National Newspapers Regional Newspapers Rajasthan Patrika (Jansatta) (Punjab Kesari) The Kamdhenu brand is prominent across the country, with wide presence in electronic, print as well as outdoor media – which is complemented by bran
Slide 29: Target Ka Badshah - Dealer/Distributor Awards
TARGET KA BADSHAH - Dealer/Distributor Awards Notable celebrity affiliations through brand promotions, event participations have helped strengthen the emotional connect with dealers where relationships were formative 28
Slide 30: Sustainable growth through Brand Creation
Sustainable growth through Brand Creation Kamdhenu Brand Sales Turnover (In Rs. Crs) 12,027 CAGR +20% 8,072 5,924 5,968 6,052 5,590 4,735 3,759 2,897 2,274 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 29
Slide 31: Vision 2022
Vision 2022
Slide 32: Vision 2022
Vision 2022 Increased Capacity TMT Increase in Brand Revenue (Rs. Crs) Increase in Royalty Income (Rs. Crs) 33 12,027 84 CAGR +13% CAGR +17% CAGR +22% 11 3,759 8 16 1,808 8 2007 2012 2019 2007 2012 2019 2007 2012 2019 50 Lakh Rs.20,000 crs Rs. 150 crs Metric Tonne by 2022 by 2022 by 2022 31
Slide 33: Paint Premiumization
Paint Premiumization Breakup of Revenue 2010 2019 A targeted dealer network with a core focus on Water Based 43% Products premium products 35% Premium and High Margin Products ▪ Penetration can be easily tripled in 5 years through 10% Powder based 14% new dealers. Currently there are 50,000 + Dealer
Slide 34: Growth Drivers
Growth Drivers Affordable Housing The market potential of affordable housing projects in the country is expected to touch Rs 6.25 trillion by 2022 Housing For All India will need to construct 43,000 houses every day until 2022 to achieve the vision of Housing for All by 2022 Construction Sector Prem
Slide 35: Management Team
Management Team
Slide 36: Board of Directors
Board of Directors Mr. Satish Kumar Agarwal Mr. Sunil Kumar Agarwal Mr. Saurabh Agarwal Mr. Sachin Agarwal Chairman & Managing Director Whole Time Director Whole Time Director Whole Time Director Mr. Mahendra Kumar Doogar Mr. Ramesh Chand Surana Mr. Ramesh Chandra Jain Mrs. Nishal Jain Mr. Harish Ku
Slide 37: Awards & Acknowledgements
Awards & Acknowledgements World's Greatest Brands World's Greatest Asia's Most Promising Brand Indian Power Brand 2017-18 amongst Asia & Brands 2015 amongst 2015-16 by World Consulting & 2016 Award GCC for Steel as well as Asia & GCC Research Corporation Paints Division 36
Slide 38: Financials
Financials
Slide 39: Q2 & H1 FY20 - Statement of Profit & Loss
Q2 & H1 FY20 - Statement of Profit & Loss Particulars (Rs. Crs.) Q2 FY20 Q2 FY19 Y-o-Y Q1 FY20 Q-o-Q H1 FY20 H1 FY19 Y-o-Y Net Revenue from Operations 238.0* 332.1 -28% 223.0* 7% 461.0* 731.9 -37% Cost of Material Consumed 81.0 100.6 77.2 158.3 192.9 Purchase of Stock-in-Trade 109.1 166.6 91.6 200.7
Slide 40: Balance Sheet as on 30th September, 2019
Balance Sheet as on 30th September, 2019 Particulars (Rs. Crs.) 30th Sep 2019 31st Mar 2019 Particulars (Rs. Crs.) 30th Sep 2019 31st Mar 2019 Equity Share Capital 26.5 26.4 Non Current assets Other Equity 165.0 154.7 Property, Plant and Equipment's 73.8 89.7 Total Equity 191.5 181.1 Capital Work in
Slide 41: Cash Flow Statement as on 30th September, 2019
Cash Flow Statement as on 30th September,2019 Particulars (Rs. Crs.) Sep-19 Sep-18 Net Profit Before Tax 14.2 17.3 Adjustments for: Non Cash / Other Items 12.7 11.5 Operating profit before working capital changes 26.9 28.9 Changes in working capital -25.1 -30.8 Cash generated from operations 1.8 -2.
Slide 42: Consistent Financial Performance
Consistent Financial Performance Revenue - Steel business Total Revenue Segmental Breakup - FY13 +163% 962.6 33% +125% 1232.4 365.7 67% FY13 FY19 Steel Paints Revenue - Paint business Segmental Breakup - FY19 +48% 22% 547.5 269.8 181.8 78% FY13 FY19 FY13 FY19 Steel Paints In Rs. Crs 41
Slide 43: Consistent Financial Performance
Consistent Financial Performance EBIT PAT EBIT - Steel business +165% +178% 46.5 +368% 42.8 22.5 17.6 15.4 FY13 FY19 FY13 FY19 PBT RoCE (%) – Steel business +429% 24.4% 34.9 16.3% 4.8 6.6 FY13 FY19 FY13 FY19 FY13 FY19 In Rs. Crs 42
Slide 44: Historical Profit & Loss Trend
Historical Profit & Loss Trend Particulars (Rs. Crs) FY19* FY18* FY17* FY16 FY15 FY14 FY13 Revenue 1,232.4 1,179.8 824.9 841.2 968.0 921.7 547.5 Total Raw Material Cost 972.9 968.8 634.8 667.8 821.9 793.8 427.8 Employee Expenses 47.2 40.5 34.0 30.9 24.1 21.9 21.2 Other Expenses 158.8 126.8 123.5 110
Slide 45: For further Information, please contact
For further Information, please contact : CIN: L27101DL1994PLC134282 CIN: U74140MH2010PTC204285 Mr. Harish Kumar Agarwal Mr. Deven Dhruva / Mr. Rohan Adhiya Group CFO & Head-Legal +91 9833373300 / +91 9833219522 hkagarwal@kamdhenulimited.com deven.dhruva@sgapl.net / rohan.adhiya@sgapl.net www.kamdhe