Pennar Industries Limited · NSE:PENIND
Pennar Industries — Q1 FY2014 Earnings Presentation
21 slides from Pennar Industries's earnings presentation, 2013
Slide 1: Pennar Industries Limited Investor Presentation Q1FY14
Pennar Industries Limited Engineering Excellence Investor Presentation Q1FY14 1
Slide 2: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Pennar Industries Limited and its subsidiary companies (“Pennar”) future
Slide 3: Agenda
Agenda • Pennar Group – Business Structure, Holdings 4 • Q1FY14 Financial Performance 5 • Business Segments and Products 6 • Segment Composition 7 • New Customers and New Products 8 • Business Verticals: Q1 Updates 9 – 13 • Return on Capital Employed 14 • Share Price Performance 15 • Focus on Qualit
Slide 4: Pennar Group – Business Structure, Holdings
Pennar Group – Business Structure, Holdings Shareholding Pattern (June 30, 2013) PENNAR GROUP Market Cap as of June 30, 2013: Rs. 3,112 million; 122 million shares STANDALONE COMPANY www.pennarindia.com www.pebspennar.in www.pennarenviro.com Steel Products; Steel Tubes; Pre-engineered building Indus
Slide 5: Q1FY14 Financial Performance
Q1FY14 Financial Performance Consolidated Standalone 350 12% 250 12% 300 10% 10% 200 250 8% 8% 150 200 Rs. crores Rs. crores 6% 6% 150 100 4% 4% 100 50 2% 2% 50 0 0% 0 0% Q1 FY2013 Q4 FY2013 Q1 FY2014 Q1 FY2013 Q4 FY2013 Q1 FY2014 Net Revenues Gross Profit Net Revenues Gross Profit EBITDA margins Ne
Slide 6: Business Segments and Products
Business Segments and Products Diversified Product Portfolio Across Industries 12% 12% 52% 38% 14% 18% QoQ Steel Products YoY QoQ Systems and Projects YoY QoQ Tubes YoY o Automobiles o Railways: Coaches and Wagons o Automobiles o General Engineering o Solar: Solar Mounting Structures o Power o
Slide 7: Segment Composition
Segment Composition Transformation through organization structure, engineering capabilities and human capital ... Q1FY14 Net Revenues Steel Products o Cold Rolled Steel Strips: 24% o Auto: 6% Pre-Engineered Buildings o General Engineering Profiles: 2% o Pre-Engineered Buildings: 27% o Infrastructure
Slide 8: Over 110 new customers added in Q1 alone
New Customers and New Products – as a way to counter low demand from key segments 10% of Revenue for PIL standalone from New Customers & New Products PENNAR INDUSTRIES New Products and Associated Customers in Q1FY14 New Products added in Industrial Components: Over 110 new customers added in Q1 alon
Slide 9: Business Vertical – Steel Products
Business Vertical – Steel Products Net Revenues (Rs. Crores) EBITDA (Rs. Crores) and margins (%) 160 14 12.5 10% 134.4 133.7 140 9% 118.0 12 9.3% 120 8% 10 7% 100 8.0 8 6% 80 6.0% 6.1 5% 60 6 4% 5.2% 40 4 3% 2% 20 2 1% 0 0 0% Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 Quarter Highlights o Lower volum
Slide 10: Business Vertical – Systems & Projects
Business Vertical – Systems & Projects Net Revenues (Rs. Crores) EBITDA (Rs. Crores) and margins (%) 50.0 48.7 8 25% 38.3 7 6.4 40.0 20% 6 5.2 30.0 5 15% 23.6 4 20.0 13.6% 13.1% 3 10% 1.9 2 10.0 8.2% 5% 1 0.0 0 0% Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 Coaches Wagons Solar Quarter Highlights o So
Slide 11: Business Vertical – Tubes
Business Vertical – Tubes Net Revenues (Rs. Crores) EBITDA (Rs. Crores) and margins (%) 35 32.3 3 2.4 10% 30 27.4 28.4 2 1.9 8% 8.8% 25 1.6 20 2 6% 5.4% 5.8% 15 1 4% 10 1 2% 5 0 0 0% Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 Quarter Highlights o Growth in CDW product area o Tubes grew by 18% over Q1
Slide 12: Business Vertical – Industrial Components
Business Vertical – Industrial Components Net Revenues (Rs. Crores) EBITDA (Rs. Crores) and margins (%) 25 3.0 15% 2.5 19.5 13% 18.7 18.4 2.5 2.2 20 13.5% 11% 12.1% 2.0 15 9% 1.5 1.4 7% 10 6.9% 5% 1.0 3% 5 0.5 1% 0 0.0 -1% Q1FY13 Q4FY13 Q1FY14 Q1FY13 Q4FY13 Q1FY14 Quarter Highlights o Significantly
Slide 13: Segment – Pre-Engineered Buildings
Segment – Pre-Engineered Buildings Net Revenues (Rs. Crores) EBITDA (Rs. Crores) and margins (%) 100 15 20% 87.5 13.0 90 13 80 71.2 67.3 70 11 15% 60 9 8.0 14.9% 50 6.3 7 11.8% 10% 40 30 5 8.8% 20 3 5% 10 1 0 Q1FY13 Q4FY13 Q1FY14 -1 Q1FY13 Q4FY13 Q1FY14 0% Quarter Highlights o Net Revenues up by 6%
Slide 14: Return on Capital Employed
Return on Capital Employed 40% 35% 30% 25% 20% 15% 10% 5% 0% FY10 FY11 FY12 FY13 Q1FY14 (Last 12 months) Consolidated Standalone PEBS o Consolidated Total Debt as of June 30, 2013: Rs.161 crores o Consolidated Total Equity as of June 30, 2013: Rs.354 crores *ROCE = EBITDA / Average Capital Employed
Slide 15: Pennar Outperformed BSE Small Cap Index by 8.3%
Pennar Outperformed BSE Small Cap Index by 8.3% Stock Movement — Jul 1 2012 to Jun 30 2013 120.00 115.00 110.00 105.00 100.00 95.00 90.00 85.00 80.00 75.00 Sep-12 Nov-12 Jan-13 Mar-13 Feb-13 May-13 Jun-13 Jul-12 Jul-12 Aug-12 Apr-13 Dec-12 Oct-12 Pennar Industries Sensex BSE Small Cap *Rebased to 10
Slide 16: Focus on Quality Management
Focus on Quality Management India Nippon Electricals Limited (INEL) Visit to Chennai Plant INEL Line exclusive for XLS Auditing the process Inspecting the quality of the product Verification of the corrective actions taken in the tools Click here to visit our website for downloading Annual Report FY
Slide 17: Focus on Quality Management
Focus on Quality Management 1S Drive – “My Machine Campaign” Other initiatives @ Pennar Open House Programme for Workers India’s First IGBC Factory, PEBS Plant at Sadashivpet Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 17
Slide 18: Focus on Quality Management
Focus on Quality Management Improvement Project Surface improvement at Pickling At Skin-Pass Mill Packing Improvements Before - Un-pickled surface Before - Waviness & Camber Before - Poor Packing After - Bright surface finish After - Waviness & Camber After - Good Packing eliminated Click here to vi
Slide 19: Leadership Team; Management
Leadership Team; Management Leadership Team Nrupender Rao Aditya N. Rao Suhas Baxi P. V. Rao Shreepad Purkar Executive Chairman Executive Vice Chairman President and CEO Executive Director President and CEO Pennar Group Pennar Group Pennar Industries PEBS Pennar Pennar Enviro Management Team with ri
Slide 20: Awards and Recognitions
Awards and Recognitions o Mr. Nrupender Rao, Chairman of Pennar o Mr. P V Rao, Managing Director of PEBS Pennar, Industries, received FAPCII award for Best chosen by Hyderabad Management Association Allround Performance – Pennar Industries (HMA) as Manager of the Year for 2013 Click here to visit ou
Slide 21: Pennar Industries Limited Contact Details
Contact Details: Pennar Industries Limited Floor: 3, DHFLVC Silicon Towers Kondapur, Hyderabad - 500 084, Andhra Pradesh Ravi Rajgopal +91 994 868 8771 Vice President – Finance & Company Secretary ravirajgopal@pennarindia.com Annual Report FY12-13 – click here to visit our website for downloading An