Hi-tech Pipes Ltd. · NSE:HITECH
Hi-tech Pipes — Q3 FY22 Earnings Presentation
43 slides from Hi-tech Pipes's earnings presentation, Jan 21, 2022
Slide 1: Revised Result Update Presentation cover letter to exchanges
@ +91-11-48440050 eC] ww ii ™M _ info@hitechpipes.in == PIPES = @ hitechpipes.in January 21st, 2022 To, Manager, Listing Department, National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoy Towers, Rotunda Exchange Plaza, Plot No. C/1, G Block, Building, Dalal Street, Fort Bandra Kurl
Slide 2: Investor Presentation – Q3 FY22
Hi-Tech Pipes Limited Providing Innovative Solutions Investor Presentation – Q3 FY22 & IMAGE HERE JAN 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hitech Pipes Ltd. (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: Q3 FY22 Highlights
Q3 FY22 Highlights
Slide 5: Key Performance Indicators – 9M FY22
KEY PERFORMANCE KINDICATOR – 9M FY22 Revenue (Rs. In Cr.) EBITDA (RS. In Cr.) PAT (Rs. In Cr.) +35% +37% +79% 1284 949. 70.66 29.12 .1 51.50 1 16.28 9M FY21 9M FY22 9M FY21 9M FY22 9M FY21 9M FY22 Sales Volume (MT) EBITDA (PMT) -5% +45% 202346 3689 2545 191544 9M FY21 9M FY22 9M FY21 9M FY22 4
Slide 6: Key Performance Indicators – Q3 FY22
KEY PERFORMANCE KINDICATOR – Q3 FY22 Revenue (Rs. In Cr.) EBITDA (RS. In Cr.) PAT (Rs. In Cr.) +8% +10% 25.08 10.17 440 415. 23.22 9.26 7 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Sales Volume (MT) EBITDA (PMT) +37% 82621 65088 3853 2810 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 5
Slide 7: Consolidated Profit & Loss Statement – 9M & Q3 FY22
Consolidated Profit & Loss Statement – 9M & Q3 FY22 Rs. (in Lakhs) Q3 FY22 Q3 FY21 Y-o-Y % Q2 FY22 Q-o-Q % 9M FY22 9M FY21 Y-o-Y % Total Income from 44001.54 41569.58 6% 46079.38 (4.5%) 128407.00 94912.58 Operations 35% Raw Materials 39813.24 37631.00 41483.05 115956.54 85664.75 Employee Cost 513.13
Slide 8: Consolidated Balance Sheet
As on As on As on As on Rs. in Lakhs th st Rs. in Lakhs th st 30 Sept– 21 31 March– 21 30 Sept– 21 31 March– 21 Equity 23618.84 20519.33 Non-current Assets 25969.54 24179.84 Equity Share Capital 1218.61 1120.61 Property, Plant and Equipment 19968.95 20248.95 Other Equity 22400.23 19398.72 Capital Wo
Slide 9: 9M FY22 – Operational Highlights
9M FY22 – Operational Highlights Sales volumes decreased by 5% to 1.92 lakh tonnes as compared to 2.02 lakh tonnes in 9M FY21. Primary reason for decrease in volume is extended monsoon period and wider price gap between primary steel and secondary steel due to which distributor’s and dealer’s has st
Slide 10: Company Overview
Company Overview
Slide 11: Hi-Tech Pipes at a Glance
Hi-Tech Pipes at a Glance Product Portfolio Distribution Network The product portfolio of the company comprises of MS Pipes, The Company has robust distribution network of 390+dealers & Galvanized Iron Pipes, MS Hollow Section, Large Dia Hollow Section, distributors across India with 550+SKUs and 15
Slide 12: Hi-Tech Pipes | Capabilities Built So Far
Hi-Tech Pipes | Capabilities Built So Far Installed Capacity Diversified Presence Business Experience Employees Built Core 5 Plants across 4 Strength 5,80,000 MTPA states 35+ years ~1,100+ Dealers & Distributors SKUs OEM Customers Strong Contractor Consumers Distribution 390+ 550+ 90+ 150+ Product O
Slide 13: 35 Years of Consistent Growth and Innovation
35 Years of Consistent Growth and Innovation 2019-2021 2017-2019 Started Colled Rolling expansion project for Commenced wider product of HRoP, 2012-2016 CRCA, CRFH, GPGC operations at Hindupur (Andhra 2001-2010 Commenced Khopoli, Sikanderabad Unit –II Pradesh) Unit IV Maharashtra facility fa
Slide 14: Continued Investment in Expanding Capacity
Continued Investment in Expanding Capacity Enhancing Capacities Year-on-Year (Metric Tonnes per Annum) One of the India’s leading manufacturer of Steel Pipes with presence in more than 5,000 retail stores 5,80,000 Continuously enhancing manufacturing capabilities 5,00,000 80,000 while diversifying i
Slide 15: Strategic Located plants with Pan-India Presence and Distribution
Strategic Located plants with Pan-India Presence and Distribution Encompassing 580,000 MTPA of production ambience and a strong network of 390+ Dealers & Distributors Pan India Capacity Plant Location Product Portfolio (MTPA) MS Steel Pipes, Hollow Sikandrabad, UP, Sikandrabad, UP 2,55,000 Sections,
Slide 16: Well Established Branded Product Portfolio & User Industries
Well Established Branded product Portfolio & User Industries Agriculture and Agriculture and Commercial Buildings Infrastructure, Airports, Railing, Fencing, Road Water Management Poly Houses and Housing Projects Metro Stations Signs, Cladding, Furniture & Containers, Solar Mounting Structure, Roof
Slide 17: New Products
New Products Corrugated Galvanized Iron or Steel sheets are a Coated Steel Sheet has been used extensively by the lightweight roofing material made of thin sheets, construction industry throughout the world nearly two stiffened by corrugations centuries, because of its excellent corrosion resist
Slide 18: Board of Directors
Board of Directors Mr. Ajay Kumar Bansal Mr. Anish Bansal Chairman & Managing Director Whole-Time Director An Industry stalwart with over 36 years of experience in the B.Sc. (Economics) in Banking & Finance from the Cardiff University, steel industry England, with over 15 years of experience in
Slide 19: Long Standing Relationships with Marquee Clientele
Long Standing Relationships with Marquee Clientele Marquee Clients Marquee Projects which used Hi-Tech Products Crash Barrier at Curtain Walling Structure at Toll Plaza at Fire Fighting Pipes at Grandstand Roofing at Yamuna Expressway Mumbai Int’l Airport Bandra-Worli Sea Link Seven Hills Hospital B
Slide 20: Quality Certifications and Client Awards
Quality Certifications and Client Awards CERTIFICATE EXEMPLARY DNV OF AMONG TOP GROWTH & BUSINESS RECOGNITIO 100 SMEs INNOVATIO ASSURANC N SKOCH N AWARD E MINISTRY OF GROUP SUPER SME CERTIFICAT COMMERCE E INDUSTRY BEST PERFORMANCE COMPANY OF EXCELLENCE AWARD TOP THE YEAR MINISRY OF STEEL, PERFORME A
Slide 21: Recent Developments
Recent Developments
Slide 22: New Value-Added Products addition in Portfolio
New Value-Added Products addition in Portfolio A new product line viz. CR Sheet (used for fabrication of Steel With commissioning of new Khopoli (Maharashtra) Furniture) has been developed and Special Annealing Furnaces has Facility, share of value-added products to increase. been installed at Sikan
Slide 23: Capacity expansion at Khopoli (Maharashtra)
Capacity expansion at Khopoli (Maharashtra) Khopoli (Maharashtra) facility with installed capacity of New Continuous Pickling line with capacity of 2.5 lakh tons 80,000 tonnes per annum has been successfully and Two New CR Slitting Lines wider width with Capacity of 1 commissioned and commercial pro
Slide 24: Cost Optimisation through adding Solar Power Capacities
Cost Optimisation through adding Solar Power Capacities The company has commissioned Roof Top Solar Projects under Opex Model at its Sikanderabad (UP) and Khopoli (Maharashtra) facilities With this, the total Roof Top Solar Power Generation installed capacity has increased to 3,300 KW The increase i
Slide 25: Strategic Focus
Strategic Focus
Slide 26: Efficient sourcing of Raw Materials
Efficient sourcing of Raw Materials Need Based Approach Need-based approach to source raw materials Strong Relationship With large suppliers like SAIL, Tata Steel and ArcelorMittal Stable and Sustainable Supply Work closely with suppliers to ensure stable, high-quality and sustainable supply Environ
Slide 27: Capacity Utilisation Improvement and Cost Optimisation
Capacity Utilisation Improvement and Cost Optimisation Improvement in Capacity Better Utilisation to drive Cost Optimisation Measures Utilisation operating leverage Strong demand for steel With the improvement in With the two newly pipes & tunes and structural capacity utilization and thus commissio
Slide 28: Focus on new value-added products, Strengthening Distribution Network
Focus on new value-added products, Strengthening Distribution Network Focus on expanding share of value-added products With recent capacity expansions, strengthening our base in the Western & Southern market Expanding Value-Added Products where there is a higher demand for value-added galvanized
Slide 29: Increasing Share of Value-Added Products
Increasing Share of Value-Added Products Share of Value Added Products Demand for value-added Products like Galvanised Pipes, Pre-Galvanised Pipes, Metal Beam Crash Guard have been picking up 23% 25% 22% Our target is to increase share of Value- 15% 16% Added Products to 25-30% of the total sales by
Slide 30: EBITDA/tonne Set to Improve
EBITDA/tonne Set to Improve Better Utilisation to drive Efficient Sourcing of Operating Leverage 06 01 Raw Materials Focus on Building Brand Increase in demand and EBITDA/Tonne and Strengthening 05 02 Improvement in Distribution Network set to Improve Capacity Utilisation Cost Optimisation & Increas
Slide 31: Expansion Plan – Target to Reach Capacity of 1 Million Tonnes
Expansion Plan – Target to Reach Capacity of 1 Million Tonnes 12.0 Company’s total capacity stands at 5.8 10.0 10.0 lac tonnes and can be expanded by about 20% more through brownfield 8.0 route and debottlenecking to reach 7.0 7.0 lac tonnes 5.8 6.0 Company’s target is to reach 10 lac 4.0 tonnes ins
Slide 32: Industry Overview & Demand Drivers
Industry Overview & Demand Drivers
Slide 33: Huge Opportunity in the Indian Steel Pipes & Tubes Industry
Huge Opportunity in the Indian Steel Pipes & Tubes Industry Indian Steel Pipes & Tubes Industry Per Capita Consumption (Kgs) - Steel • Market Size: ~Rs 500 billion (~8% of total domestic steel market) 568 • Total Domestic Consumption: ~8.5 million tonnes (FY21) • Growth Rate last 5 years: 6-7% CAGR
Slide 34: Big Push on demand recovery backed by Government Capex revival
Big Push on demand recovery backed by Government Capex revival Indian government to incur capex of Rs 111 lakh crore for infrastructure development under NIP (National Infrastructure Pipeline) over FY20-25E • 24% of this will go towards Energy sector, a big demand driver of steel pipes and tubes 2.0
Slide 35: Revival in Private Capex to drive demand of steel products
Revival in Private Capex to drive demand of steel products • Considerable improvement in external balance position (including Current Account Deficit turning surplus in FY21 at 0.9% of GDP and steep rise in RBI’s forex buffer at USD 610 bn) • Favorable financial conditions have enabled fund raising
Slide 36: Annual Financials
Annual Financials
Slide 37: Key Performance Highlights
Key Performance Highlights Volume ('000 MT) EBITDA per Metric Ton 283.2 3689 269 271.2 226 2789 2518 2661 2611 191.5 2091 137.8 FY17 FY18 FY19 FY20 FY21 9M FY22 FY17 FY18 FY19 FY20 FY21 9M FY22 EBITDA/ton improved sharply in FY22 led by improvement in sales realization; Increase in contribution from
Slide 38: Performance Highlights
Performance Highlights Revenue (Rs. In Cr.) EBITDA (Rs. In Cr.) PAT (Rs. In Cr.) 1360 1016 1209.6 1340.6 1284.1 60 75 59 71 70.67 27.5 22.8 29.13 637 637 21 20.4 637 FY17 FY18 FY19 FY20 FY21 9M FY17 FY18 FY19 FY20 FY21 9M FY17 FY18 FY19 FY20 FY21 9M FY22 FY22 FY22 EBITDA (%) PAT (%) 637 5.9% 5.5% 5.
Slide 39: Performance Highlights
Performance Highlights Networth (Rs. In Cr.) Debt/ Equity (X) 146.8 205.2 236.2 173.6 637 2.21 1.77 637 113.6 1.71 1.45 1.34 FY17 FY18 FY19 FY20 FY21 H1 FY22 FY17 FY18 FY19 FY20 FY21 H1 FY22 ROCE (%) ROE (%) 19.10% 18.70% 22.80% 20.10% 637 13% 15.50% 637 12% 17.20% 12.30% 12.70% FY17 FY18 FY19 FY20
Slide 40: Raising Funds through equity to strengthen the balance sheet
Raising Funds through equity to strengthen the balance sheet Company issued and allotted 13.70 lakh fully convertible warrants at a price of Rs 164 per warrant aggregating up-to Rs 22.468 Crores to the persons belonging to promoter, promoter group and non-promoter group category Of the total 13.
Slide 41: Consolidated P&L – Last 5 Years
Consolidated P&L – Last 5 Years Particulars (Rs crore) FY17 FY18 FY19 FY20 FY21 Total Income from Operations 637.4 1,015.7 1,360.4 1,209.6 1,340.6 Raw Materials 562.7 913.3 1,236.4 1,095.4 1,210.2 Employee Cost 10.6 12.1 13.7 17.8 18.8 Other Cost 24.3 30.1 35.6 37.2 40.8 EBITDA 39.9 60.1 74.8 59.2 7
Slide 42: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (Rs crore) Mar-18 Mar-19 Mar-20 Mar-21 Particulars (Rs crore) Mar-18 Mar-19 Mar-20 Mar-21 Equity 113.6 146.8 173.6 205.2 Non-current Assets 149.4 177.4 209.0 241.8 Equity Share Capital 10.5 10.7 10.9 11.2 Property, Plant and Equipment 123.9 169.1 173
Slide 43: Contact Us
Contact Us For more details, please contact: Company: Hi-Tech Pipes Limited. CIN: L27202DL1985PLC019750 Mr. Arvind Bansal, CFO cfo@hitechpipes.in Phone: 011-48440050 www.hitechpipes.in 42