Skipper Ltd · NSE:SKIPPER
Skipper — Q2 & H1 FY2024 Earnings Presentation
42 slides from Skipper's earnings presentation, Nov 7, 2023
Slide 1: Exchange filing cover letter - Investor Presentation
9KIPPER L4fnited Date: 7th November, 2023 The Manager The Manager National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Dalal Street Plot No. C-1, Block-G Mumbai- 400 001 Bandra Kurla Complex, Bandra (E) Scrip Code- 538562 Mumbai- 400 051 Symbol-
Slide 2: Investor Presentation Q2 & H1 FY'24 Results
Great Place To Work. Certified DEC 2022 - DEC 2023 INDIA Rediscovering Roots Embracing Triumph, Shaping Tomorrow INVESTOR PRESENTATION Q2 & H1 FY’24 Results 7th November 2023
Slide 3: About Us
About Us 9KIPPER Limited Vision Mission To produce world - class 1 2 3 4 5 quality products ensuring To continue to To continue to To continue to To ensure the To reduce carbon robust National add value-added focus on sectors tap newer greater scale and footprints, and Infrastructure products and of
Slide 4: Core Strengths
Core Strengths 9KIPPERL4fnitet 41+ India’s largest and world's only Integrated T&D company having its own Structure Largest rolling, manufacturing, Tower Load Testing A manufacturer of Station & Transmission Line EPC T&D structures Years of Excellence ■ I I I I in India Awarded as “Largest Tower Sup
Slide 5: Inflection Point with Growth Ahead
Sustainable, diversified Confidence Boost with International & profitable businesses well- winning key projects puts domestic opportunities positioned to continue to us as front runner in for growth in key segments Inflection generate compelling long- term growth key segments – Power Transmission, T
Slide 6: Management
Management 9KIPPER -- Limited -- Independent Mr. Amit Kiran Deb Mrs. Mamta Binani Mr. Raj Kumar Patodi Mr. Ashok Bhandari Sri Pramod Kumar Shah Chairman Independent Director Independent Director Independent Director Independent Director Independent Director Whole Time Sajan Kumar Bansal Sharan Bansa
Slide 7: Core differentiators
Core differentiators 9KIPPER L4fnitet Broad Based Portfolio Exciting Opportunities Ahead Our Ability to Win Enhanced Profitability Diversified Products Build on Long-Standing India’s largest and world's only end Operational delivering sustainable Relationships with our to end Integrated T&D company
Slide 8: Product Portfolio
Product Portfolio @KIPPER Limited Engineering Infrastructure Polymer Power Transmission Railway Transmission UPVC Tower Structures Line EPC Pipes MS & Power High Distribution Tensile Telecom CPVC Poles Angles EPC Pipes Test Station and R&D Railway HDPE Monopoles Center Electrification Pipes Fastener
Slide 9: Core Competencies
Core Competencies @KIPPER Limited Modern Technology: Our Value Chain Automated State-of-the-Art Equipment • The company utilizes cutting-edge automated equipment, representing the latest advancements in technology. Value Optimization: Engineering and Design Excellence • Engineering and design excell
Slide 10: R&D Capabilities
R&D Capabilities $ &Pren - gKIpPpER R6D Limited Leading through innovation Tested towers & monopoles • We have strengthened our • We are assuring our clients by innovation capabilities backed by our talented designing and R&D conducting prototype tests in our state-of-art test centers. 765 kV S/C 22
Slide 11: Performance & Financial Highlights – Q2 & H1'24
Performance & Financial Highlights – Q2 & H1’24 .--- % l l ·, 4 4 $ 4 1 I ' t 'a;• ' 4 I I ---------· t $ « ' v - .•@, gig ·.--�
Slide 12: Business Update – Q2 FY'24
Business Update– Q2 FY’24 9KIPPER -- Limited -- Revenue Performance Highlights - Company registered its best ever revenue quarter of Rs 7,724 million on back of strong performance across all its major business segments; achieved growth of 67 % over previous year quarter period. - Engineering busines
Slide 13: Business Update – H1 FY'24
Business Update– H1 FY’24 9KIPPER -- Limited -- Revenue Performance Highlights -- Revenue of H1 Fy’24 increased to Rs 13,270 million against Rs 8,781 million in H1 FY’23, registering a growth of 51 % Engineering business segment achieved Revenue of Rs 10,124 million against Rs 6,895 million in the p
Slide 14: Order Book Highlights – 30th Sep 2023
Order Book Highlights – 30th Sep 2023 @KIPPER L4fnitet - Order Book Highlights The company has secured new orders worth Rs 15,290 million, during the - The current closing order book stands at an All time high level of Rs 60,740 million. - The company has a robust bidding pipeline, actively pursuing
Slide 15: Consolidated Financial Performance Q2 FY'24
Consolidated Financial Performance Q2 FY’24 Rs in Mn 9KIPPER L4fnitet YoY QoQ Sl Profit & Loss Summary Q2 FY’24 Q2 FY’23 Q1 FY’24 Change % Change % 1 Revenues 7,723.7 4,620.0 67.2% 5,545.8 39.3% 2 Operating EBITDA (without forex & JV) 724.1 519.6 39.4% 566.4 27.8% Operating EBITDA Margins (%) 9.4% 1
Slide 16: Consolidated Financial Performance H1 FY'24
Consolidated Financial Performance H1 FY’24 Rs in Mn 9KIPPERL4fnitet YoY Sl Profit & Loss Summary H1 FY’24 H1 FY’23 Change % 1 Revenues 13,269.5 8,780.9 51.1% 2 Operating EBITDA (without forex & JV) 1,290.6 1,010.5 27.7% Operating EBITDA Margins (%) 9.7% 11.5% 3 (+) Other Income 33.4 23.2 4 (-) Depr
Slide 17: Segment Report
Segment Report 9KIPPER L4fnitet Segment I Profit & Loşs Summary I Q2 FY'24 I Q2 FY'23 I Change % H1 FY24 H1 FY'23 Change % Net Sales 5,959.0 3,798.4 56.9% 10,124.1 6,894.6 46.8% Engg Products EBITDA - Operating 656.8 505.7 29.9% 1,125.6 926.7 21.5% % of Sales 11.0% 13.3% 11.1% 13.4% Infra Polymer 6%
Slide 18: Performance highlights – Q2 FY'24
9KIPPER Performance highlights – Q2 Fy ’24 L4fnitet Strong Revenue Performance across major business segments Stand Alone - Revenue D ii I Rs in Mn Segment - Revenue w I Rs in Mn 7,724 67 % + 57 % 5,959 4,620 3,798 + 58 % + 490 % 1,123 713 642 109 Q2 FY '24 Q2 FY'23 Engg Polymer Infra ■ Q2 Fy'24 ■ Q
Slide 19: Improvement Trends
Improvement Trends 9KIPPER L4fnitet Consistent & Improved Operating Margin Performance 15.0% 12.7% 12.8% 10.8% 10.7% 11.1% 10.0% 8.8% 11.0% 9.8% 11.1% 9.7% 8.7% 7.3% 5.0% 5.8% 4.8% 4.1% 3.4% 3.3% 2.1% 0.0% Fy'19 Fy'20 Fy'21 Fy'22 Fy'23 H1 FY'24 Stand Alone Engineering Polymer • Engineering Segment -
Slide 20: Debt Details
Debt Details 9KIPPER L4fnitet Standalone Debt Details Inc / (Dec) 30.09.23 30.09.2022 YoY Long Term Debt 2,325 2,269 56 Current Maturities of Long Term 522 639 (117) Debt Total Long Term Debt 2,847 2,908 (61) Short Term Debt 4,289 2,945 1,344 Gross Debt Level 7,136 5,853 1,283 • Long term debt reduc
Slide 21: Order Book Composition
Order Book Pie 9KIPPER L4fnitet Engineering Products – Current Order Book Composition Total Order Book Segment Break up Rs 60,740 million 17% Export 17% Domestic 83% Order Breakup 42% 41% ■ Domestic ■ Export ■ T&D ■ Export ■ Non T&D Domestic Non T&D Products includes - Telecom, Railways, Solar, Fast
Slide 22: Order Inflow Trend
Order Inflow Trend 9KIPPERL4fnitet H1 ’24 Vs H1’23 Total inflows - Rs 27,440 Mn Vs Rs 8,630 Mn, Up 218% Achieved highest ever Export Inflow - Rs 6,020 Mn Vs Rs 3,560 Mn, Up 67% order inflow for any 28,630 quarter Achieved Best ever Rs in Miilion Second Quarter & H1 Inflow 15,290 Consistently clocked
Slide 23: Strong Bidding Pipeline
Strong Bidding Pipeline 9KIPPERL4mite Strong Bidding Pipeline of 126,200 Million as on 30th Sep 2023; International – 80,200 Mn & Domestic - 46,000 Mn Expecting International Ordering & Execution to gain further pace in FY’24; In advanced Stages of negotiation to secure some good size International
Slide 24: Emphasizing Export Expansion
Emphasizing Export Expansion 9KIPPER L4fnitet - Increased Export Growth Potential - Favorable Business Climate - Enhanced Brand Positioning - Confidence-Boosting Certifications Targeting a significant increase in Post Covid India has emerged as a Recent establishment of an R&D Centre Certified by pr
Slide 25: Global Footprints
Global Footprints $KIPPERL4fnt(@t Middle East Africa • Jordan • Kenya South America Europe • Saudi Arabia • Egypt • Peru • UK • UAE • Ghana • Colombia • •Spain Nigeria • Qatar • Chile • •Finland Zambia • Oman • Paraguay • Sierra Leone • Kuwait Africa • Panama • Guinea • Iraq • Uruguay •Kenya • South
Slide 26: Power T&D Lines – A Multi Decadal Opportunity
Power T&D Lines – A Multi Decadal Opportunity 9KIPPER --- Limited --- Key Growth Drivers Load growth Generation and increased capacity electrification addition Multilateral Growth in Renewable funding energy support demand for development transmission equipment Reforming Technology markets developme
Slide 27: Importance of New Transmission Lines for Renewables
Importance of New Transmission lines for Renewables @KIPPER L4fnitet Resource Location • Many renewable sources are in remote areas I • Transmission lines bridge the gaps to where energy is needed Energy Reliability • Renewables can be intermittent due to weather • New line help balance supply and d
Slide 28: Optimistic Sector Outlook
Optimistic Sector Outlook 9KIPPER -- Limited The massive global and Post Covid India has emerged domestic focus and as a preferred sourcing location India‘s plans to generate and integrate 500 GW Of India’s Power Sector demand peaking at 236.6 GW in August Our global investment on building vis-a-vis
Slide 29: Polymer Products Business
Polymer Products Business >
Slide 30: Polymer Highlights
Polymer Highlights 9KIPPER -- Limited - Leading manufacturer of polymer pipes and - Cumulative Production Capacity of 62,000 - Only Polymer Pipe company in India to - Growing National Presence with Over 31,000 Retail - One of the Country’s most organized channel fittings, catering to both TPA implem
Slide 31: Polymer Performance Highlights
Polymer Performance Highlights @KIPPER L4mite Achieved Best ever 2nd Quarter & H1 Revenue performance on back of exponential volume growth Q2 ‘24 vs Q2’23 H1’24 vs H1’23 Sales Tonnage (MT) Revenue (Rs in Mn) Sales Tonnage (MT) Revenue (Rs in Mn) 16,751 2,405 1,123 • 7,872 '99 0 6 0 713 8,643 1,592 3
Slide 32: Polymer Growth Drivers
Polymer Growth Drivers @KIPPERL4fnitet - The PVC and Fittings market, estimated to be worth approximately Rs 300 billion in FY 2020, is - Growing PVC pipe demand in India fueled by government initiatives like - The Jal Jeevan Mission (JJM) initiative aims to provide tap water predicted to reach Rs 5
Slide 33: Skipper Pipes – 100% Lead Free Campaign
Skipper Pipes – 100% Lead Free Campaign 9KIPPER -- Limited SKIPPER --PIPES-- SKIPPER FOR LIFE Skipper Pipes have been certified with highest standard SKIPPER CPVC PIPES - of NSF 14. 700% LEAD FRE Toll Free: 1800 889 9779 www.skipperpipes.in 32
Slide 34: Skipper Pipes – 100% Lead Free Campaign
Skipper Pipes – 100% Lead Free Campaign 9KIPPER L4fnitet $KIPPER Pp[S- • Skipper Pipes brand campaign as India’s safest pipes with Brand Ambassador MS Dhoni & Chris Gayle is paying rich dividends • Higher growth witnessed in campaign markets indicating campaign effectiveness. • Company intends to in
Slide 35: Future Performance Outlook
Future Performance Outlook 9KIPPER Limited - Company expects to clock revenue growth in excess of 25% CAGR for the next 3 financial year on back of buoyant market environment and future prospects, strong pending execution of engineering contracts and strong polymer segment performance - Foresee a ro
Slide 36: Shareholding Pattern
Shareholding Pattern 9KIPPERL4fnitet Shareholding pattern As on 30th Sep’ 23 Major Shareholders Name % Promoters 72% Baillie Gifford - Pacific Horizon 3.8% Investment Trust Foreign Portfliio India Capital Growth Fund (ICGF) 3.0 % Investors 8% Ajay Upadhyaya 1.7% Crux Global Fund 1.0 % Others 20% 35
Slide 37: Social and Environment Initiatives
Social and Environment Initiatives 9KIPPER L4fnitet Skipper cares Our company's journey towards contributing to society began long ago, and we have always believed that it's an integral part of our ecosystem. To ensure that our efforts are focused and effective, we have developed a CSR Framework in
Slide 38: Social and Environment Initiatives
Social and Environment Initiatives 9KIPPER Limited - � BETI PADHAO , ABHIY 37
Slide 39: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 9KIPPER -- Limited In April 2022, installed 90 KLD capacity STP to promote water conservation and explore opportunities for reusing of treated sewage water. Especially designed engineered bacteria have been used for treatment of generated sewage Clean Fuel
Slide 40: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 9KIPPER --- Limited --- TATA POWER SLAROOF .r. TATA t @) suPERGAs' gs .5 •'1;-· ANNUAL CARBON SAVINGS CERTIFICATE , ,e;:,.. ~A congratulations M/s Skipper Limited for f continuing your Carbon Reduction through LPG g Your carton oftset in this process is_508
Slide 41: Recognition
Recognition 9KIPPER Limited Recognized Great place to work 2 years consecutively Great Place To AWARD: THE LARGEST TOWER SUPPLIER FOR 3rd AWARD: EMERGING POWER EPC AWARD: GLOBAL HR AWARD: NO. 1 EMERGING BRAND Work.Image to Come CONSECUTIVE YEAR GIVEN BY: PLAYER GIVEN BY: EPC WORLD EXCELLENCE GIVEN B
Slide 42: Thank you / Disclaimer
DISCLAIMER This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to