Mmp Industries Ltd. · NSE:MMP
Mmp Industries — Q1 FY2022 Earnings Presentation
27 slides from Mmp Industries's earnings presentation, Aug 23, 2021
Slide 1: Cover letter to NSE
THROUGH ONLINE FILING Ref No.: MMPIL / NSE / 2021/ 046 Date: Monday, the 23 August 2021 The Manager, Listing Department, National Stock Exchange of India Limited “Exchange Plaza”, C - 1, Block G, Bandra – Kurla Complex, Bandra (East), MUMBAI – 400 051 Sub: Investor Presentation on Financial Results
Slide 2: Leadership & Excellence in Aluminium – Investor Presentation August 2021
Leadership & Excellence In Aluminium I N V E S TO R P R E S E N TAT I O N AUGUST 2021 1
Slide 3: Agenda
Agenda About MMP Industries Business/Industry Overview Financial Overview Investment Rationale 2
Slide 4: About MMP Industries Limited (MMPIL)
About MMP Industries Limited (MMPIL) Leading Manufacturer Of • Aluminium Powders • Aluminium Foils • Aluminium Conductors / Cables 3
Slide 5: MMPIL at a glance
MMPIL at a glance ALUMINIUM POWDERS • Significant investment in R&D to develop 3 Y AVG. REVENUE CAPACITY various grades of Aluminium powder and CONTRIBUTION Leading manufacturer of aluminium powders, aluminium 20,000 MTPA 91% related products. foils and aluminium conductors / cables for various indu
Slide 6: Valuable Partners
Valuable Partners MMPIL 01 Promoter Holding: 74.48% | Public Holding: 25.52% STAR CIRCLIPS & ENGINEERING LTD. 02 MMPIL Holding: 26.06% | Promoter Holding: 73.94% • Largest manufacturer of Circlips, retaining rings and carbon steel fasteners in India • Portfolio of 800+ products supplied to the Globa
Slide 7: Leadership Team
Leadership Team Mr. Arun Bhandari, aged 65 years, is a B. Tech in Chemical Engineering from Institute of Technology, Banaras Hindu University, Varanasi with extensive industrial projects, Mr. ARUN BHANDARI operations, and management experience. Mr. Bhandari started his career as a Managing Director
Slide 8: Milestones
Milestones 1981 1990 1996 2004 2011 2016 2020 Technical know- First atomizer ISO 9001 Sales cooperation Setting up of the Joint venture Migrated to Main how agreement commissioned certification with AVL Aluminium Agreement with Board to NSE with AVL Belgium (Belgium) for Conductor Toyo Aluminium var
Slide 9: Manufacturing Units
Manufacturing Units • 3 manufacturing facilities located near Nagpur, Maharashtra Strategic location in central CONCRETE • Unit I – Maregaon, Dist. Bhandara (aluminium powders and aluminium India with proximity to the Presence of leading AAC Manufacturers conductors / cables) manufacturing hub for a
Slide 10: Product Portfolio
Product Portfolio Revenue share by end user EXISTING BUSINESS NEW BUSINESS ALUMINIUM POWDERS ALUMINIUM CONDUCTORS ALUMINIUM FOIL* CAPACITY : 20,000 MTPA CAPACITY : 5,000 MTPA CAPACITY : 7,200 MTPA End User Revenue Share: 7.31% Revenue Share Explosives/ Others 28.85% Mining PHARMACEUTICALS Revenue Sh
Slide 11: Customer and partner logos
HiL / (ff assoc / Wop. | Sis. 8 / parse | biltech / magicrete ‘2, ¢ ts. Fie Toyal Group ‘Sumitomo Chemical AVL SisEr Fabadkogll beLicall cet NATIONAL INDUSTRIES COMPANY
Slide 12: Business & Industry Overview
Business & Industry Overview 11
Slide 13: Aluminium Powders
Aluminium Powders EXPLOSIVE INDUSTRY It is a sensitizer in the production of explosives and provides the energy for explosion and blasting power Set up its first capacity in 1983 for aluminium powders in technical CONSTRUCTION (AAC BLOCK) collaboration with a Belgium company Ets. • Aluminium is used
Slide 14: Aluminium Conductors / Cables
Aluminium Conductors / Cables MMPIL offers transmission and distribution conductors that are used for overhead transmission of power TOTAL INSTALLED Considering growing demand CAPACITY MTPA Company has set-up a forward integration capacity of Aerial Bunch Cables 13
Slide 15: Aluminium Foils (new business)
Aluminium Foils (new business) PHARMACEUTICALS Plain and printed blister & strip packaging in the pharma industry Integrated foil project for making bare foil, converted foil (coated, laminated, printed) FOOD PACKAGING Chocolates and household edibles Building designed to enable double capacity of a
Slide 16: Industry Overview
Industry FOIL STOCK Overview ELECTRICAL 12% 9% PACKAGING High profitability and MACHINERY accretive cash flows 8% expected for aluminium 11% manufacturers DURABLES 6% Half of semi-finished aluminum products consumed by the transport & construction industries Aluminium prices likely to remain elevate
Slide 17: Global Aluminium Industry
CONSUMPTION Global Aluminium PRODUCTION 63 MT 65 MT 65 MT 63 MT Industry 35 37 China 36 38 28 28 World 28 ▪ GLOBAL PRODUCTION GREW 25 ex China FROM 63 MT IN CY19 TO 65 MT IN CY20 CY19 CY20 CY19 CY20 ▪ CONSUMPTION DECLINED BY 3%, LEADING TO SURPLUS OF GLOBAL PRICE OF ALUMINIUM (CASH -$/T ) 2.0 MT ▪ G
Slide 18: Financial Overview
Financial Overview 17
Slide 19: Management Commentary
Management Commentary “We are pleased to report satisfactory performance for the quarter ended 30th June 2021 in-spite of significant disruption due to COVID lockdowns in various parts of the country. The construction and the mining sectors were particularly hard-hit due to the un- availability of l
Slide 20: Quarterly Segmental Performance
Quarterly Segmental Performance ALUMINIUM POWDERS (₹Mn.) ALUMINIUM CONDUCTORS(₹Mn.) ₹707 ₹700 ₹54 ₹50 ₹44 ₹303 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1FY22 ALUMINIUM Foils* (₹Mn.) ₹105 ₹19 *New Business Q4 FY21 Q1 FY22 19
Slide 21: Quarterly Consolidated Income Statement
Particulars (₹ Mn) Q1FY21 Q4FY21 Q1FY22 Total Income 361 773 863 Total Expenses 326 686 780 Quarterly EBITDA 35 87 83 Consolidated EBITDA Margin (%) 10% 11% 10% Income Finance Cost (Net) Depreciation 5 10 6 13 6 14 Statement PBT 19 68 63 Share of Profit / (Loss) -8 17 9 of Associates Tax 5 16 15 PAT
Slide 22: Historical Segmental Performance
ALUMINIUM POWDERS (₹Mn.) ₹2,106 ₹1,971 ₹2,011 ₹1,768 Historical Segmental Performance FY18 FY19 FY20 FY21 ₹576 ₹575 ₹353 ₹169 ALUMINIUM CONDUCTORS(₹Mn.) 21
Slide 23: Historical Consolidated Income Statement
Particulars (₹ Mn) FY19 FY20 FY21 Total Income 2,646 2,448 2,318 Total Expenses 2,315 2,142 2,047 Historical EBITDA 331 306 270 Consolidated EBITDA Margin (%) 13% 12% 12% Income Finance Cost (Net) Depreciation 28 20 23 31 17 45 Statement PBT 283 251 208 Share of Profit / (Loss) 22 -7 17 of Associate
Slide 24: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (₹Mn) FY19 FY20 FY21 Particulars (₹Mn) FY19 FY20 FY21 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's funds Property, Plants and Equipment Share Capital 169 254 254 Tangible Assets 436 885 1,110 Reserves and Surplus 1,618 1,654 1,836 I
Slide 25: Investment Rationale
Investment Rationale 24
Slide 26: Investment Rationale
Foray into Aluminium Foil will not only add a new value added vertical to the business but also boost the top line and margins over the medium term. Increasing demand for foils in the Pharmaceutical sector will provide a huge tailwind to this segment The Joint Venture with Toyo Aluminium is turning
Slide 27: Thank You
Thank You For further information, contact: Sharad Khandelwal Siddesh Chawan CFO, MMP Industries Ltd Christensen Advisory Ph: +91 22 4215 0210 E: sharadk@mmpil.com E: schawan@christensenir.com 26