Tinna Rubber & Infrastructure Limited · NSE:TINNARUBR
Tinna Rubber & Infrastructure — Q1 FY25 Earnings Presentation
50 slides from Tinna Rubber & Infrastructure's earnings presentation, Aug 3, 2024
Slide 1: Stock exchange filing letter for investor and earnings presentation
Date: August 03, 2024 To, To, The Manager (Deptt. of Corporate Services) The Secretary, BSE Limited Calcutta Stock Exchange Limited Phiroze Jeejeebhoy Towers, 7, Lyons Range, Dalal Street, Mumbai-400001. Kolkata-700001 Scrip Code: 530475 ISIN: INE015C01016 SUBJECT: INVESTOR AND EARNINGS PRESENTATION
Slide 2: Investor & Earnings Presentation Q1-FY25
INVESTOR & EARNINGS PRESENTATION Q1 -FY25 1
Slide 3: Disclaimer
DISCLAIMER Tinna Rubber and Infrastructure Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinio
Slide 4: Performance Highlights Q1-FY25
PERFORMANCE HIGHLIGHTS Q1-FY25 3
Slide 5: Q1/FY25 Quarterly Highlights – Standalone
Q1/FY25 QUARTERLY HIGHLIGHTS – Standalone Volume (In MT) Revenue from Operation 25%+ 23%+ * Tyre processed in tons (INR Mn) 1,360 Volume Revenue 38,500 1099 Q-o-Q Q-o-Q 30,665 806 22,000 8%+ 1%+ Q1-FY24 Q4-FY24 Q1-FY25 Q1-FY24 Q4-FY24 Q1-FY25 EBITDA PAT Q-o-Q Q-o-Q EBITDA (INR Mn) & EBITDA PAT (INR
Slide 6: Quarterly Key Segment Performance – Infrastructure & Industrial
QUARTERLY KEY SEGMENT PERFORMANCE–Infrastructure & Industrial INFRASTRUCTURE SEGMENT The infrastructure segment has experienced a 65% increase in volume and a 48% increase in Infrastructure Segment revenue on a YoY basis. Revenue (INR Mn) Q1 is the peak season for road infrastructure, and due to the
Slide 7: Quarterly Key Segment Performance – Consumer & Steel
QUARTERLY KEY SEGMENT PERFORMANCE – Consumer & Steel CONSUMER SEGMENT Consumer Segment Revenue (INR Mn) 115 109 The start of the Varle plant has contributed to higher sales in the consumer sector. The consumer segment, particularly turf, rubber tiling, and gym mat applications, has 58 witnessed a 15
Slide 8: Q1-FY25 Key Operational Highlights
Q1-FY25 KEY OPERATIONAL HIGHLIGHTS OPERATIONS There is a 75% volume growth in tyre recycling on a YoY basis. Expanding our operations by adding 5,000 tones of annual capacity of MRP in Chennai, which will be operational within Q2. Volume growth in tyre crushing has provided the benefit of economies
Slide 9: Management Analysis on Operating Margin
Q1-FY25 – MANAGEMENT ANALYSIS ON OPERATING MARGIN Higher freight rates due to unrest in Red Sea region has adversely impacted operating margins in Q1 . In Q1, the following exceptional one time cost impacted the operating margin : a) Provision for performance bonus for employes on account of FY 24.
Slide 10: An Update on Capex
Q1-FY25 – AN UPDATE ON CAPEX An approx. INR 48 crores has been planned towards the CAPEX expenditure in FY 25. An approx. INR 28 crores have already been approved and the works are progressing as follows: • Solar plant set up at Wada and Varle are in the commissioning stage and will be ready within
Slide 11: Company Overview
COMPANY OVERVIEW Founded in 1977, the company has become a ONE OF THE LARGEST pioneer in recycling of End of Life Tyres in most Recycler of "End of Life Tyres" in Asia efficient and environment-friendly manner. FIRST TO MARKET & LARGEST PLAYER Our eco-friendly practices result in Zero Waste, For Rub
Slide 12: Journey So Far
JOURNEY SO FAR Group founded by Introduced light Commenced export Pioneered the Largest CRMB Set up waste Tyre Became the Completed Mr.Bhupinder Kumar weight rubber of Thermo Plastic concept of producer & entered recycling plant at largest acquisition of Sekhri. slippers Rubber Compounds rubberised
Slide 13: Waste to Wealth
WASTE TO WEALTH ELT : WASTE TO WEALT 400%VALUE ADDITION TO WASTE 12
Slide 14: Segment Wise Revenue Sharing Ratio
SEGMENT WISE REVENUE SHARING RATIO FOR FY Q1-FY25 INFRASTRUCTURE INDUSTRIAL STEEL CONSUMER 45% 28% 18% 8% Roads Bitumen Conveyor Steel Roads Belts Abrasives Crumb Gym Tiles Rubber Infill Tyres Steel Scraps Automotive Rubber parts Mats 13
Slide 15: Manufacturing Facilities
MANUFACTURING FACILITIES Source of End of life tyres (Overseas) Panipat Manufacturing Europe (Haryana) facilities Mathura Delhi (Uttar Pradesh) USA Middle Eastern (Headquarters) Countries INDIA OMAN Saham (Al Batnah) Haldia (West Bengal) Varle | Wada South Africa Australlia (Maharashtra) Chile Gummi
Slide 16: Board of Directors
BOARD OF DIRECTORS Mr. Bhupinder Kumar Mr. Gaurav Sekhri Mr. Subodh Kumar Sharma Mrs.Bharati Chaturvedi Sekhri Chairman & Managing Joint Managing Director & Chief Independent Director Director Operating Officer Director Mr. Sanjay Jain Mr. Vaibhav Dange Dr. Krishna Prapoorna Biligiri Independent Ind
Slide 17: Segment Wise Sales and Growth Drivers
SEGMENT WISE SALES AND GROWTH DRIVERS 16
Slide 18: Infrastructure Segment – Product & Sales
INFRASTRUCTURE SEGMENT – PRODUCT & SALES CRUMB RUBBER/ CRUMB RUBBER MODIFIER BITUMEN EMULSION Blend of waste tire rubber, hydrocarbons, Manufactures all grades of Cationic Bitumen and cross-linkers. Emulsions meeting BIS standards. Mixed with bitumen in specific ratios State-of-the-art manufacturing
Slide 19: Infrastructure Segment TAM/Growth Drivers
INFRASTRUCTURE SEGMENT TAM/GROWTH DRIVERS ADDRESSABLE MARKET New Road Construction Speed: 39 kms Per Day POTENTIAL FOR GROWTH Current Modified Bitumen Market: 1,50,000 to 2,00,00 MT (2% of total Bitumen Market) 5X OVER NEXT 2-3 YEARS Potential Market for CRMB: 1 million MT Total Bitumen Market: 8.8
Slide 20: Industrial Segment – Product & Sales
INDUSTRIAL SEGMENT – PRODUCT & SALES MICRONIZED RUBBER POWDER (80-140 MESH) Industrial Segment Sales (In INR Mn) 922 813 Tinna is one of the world's largest MRP producers. 683 Utilizes a indigenously developed Ambient Grinding Process for production. 383 With matured application in tyre/conveyor bel
Slide 21: Industrial Segment TAM/Growth Drivers
INDUSTRIAL SEGMENT TAM/GROWTH DRIVERS INDIAN TYRE INDUSTRY Opportunities for Recycled A vital part of Auto Sector, contributes to 3% of India's manufacturing GDP and 0.5% of the Rubber Materials in the Tyre Sector total GDP directly. In 2020, the Indian tyre market reached 177 million units. Expecte
Slide 22: Consumer Segment – Product & Sales
CONSUMER SEGMENT – PRODUCT & SALES Consumer Segment Sales (In INR Mn) COATED RUBBER Crumb (CRC) 367 Coated Rubber Crumb (CRC) replaces virgin rubber compound. Manufactured by treating Crumb Rubber with a 216 215 proprietary mix of chemicals. Ideally suited for low tensile compounds, solid 115 tyres,
Slide 23: Consumer Segment TAM/Growth Drivers
CONSUMER SEGMENT TAM/GROWTH DRIVERS SPORTS TURF RUBBER MATS/RUBBER TILES Sport and playground surfaces to consume a higher Floor mats application segment quantity of crumb rubber due to minimal buffing, using expected to grow rapidly in the forecast Opportunities for Recycled Rubber over 30,000 MT y
Slide 24: Strategic Action Plan
Caring for Environment STRATEGIC ACTION PLAN
Slide 25: Vision 2027
VISION 2027 VISION 2027 10 CURRENT 30% + Locations 6 27.6% ROCE Locations ROCE FY24 25% + 26% INR136.5 Cr INR 900 Cr Revenue Revenue CAGR Revenues Revenues CAGR (Last 3 years) Q1-FY25 138% 16.82% 33% + Profitability Growth EBITDA 18% (Last 3 years) Margin EBITDA Profitability Q1-FY25 Growth Margin O
Slide 26: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 27.6% 22.24% 20.67% Target ROCE 30% 9.94% 0.99% FY20 FY21 FY22 FY23 FY24 25
Slide 27: Capacity Expansion
CAPACITY EXPANSION Tyre Crushing Capacity (MT) 2,50,000 2,00,000 1,50,000 2,50,000 MT PA 1,00,000 capacity planned by 80,000 FY 2027 72,000 FY22 FY23 FY24 FY25E FY26E FY27E Projected Value E Estimated 26
Slide 28: Update on Projects
• TRIL (PCR TYRE RECYCLING) -VARLE, MH UPDATE ON PROJECTS • GLOBAL RECYCLE -OMAN • TRIL (POLYMERS AND MASTERBATCHES) -PANIPAT , HR 27
Slide 29: Project Update – Varle Plant
PROJECT UPDATE VARLE PLANT – PROGRESS AND MILESTONES TRIL made a capex of IN 440 million to establish a state-of-the-art tyre recycling plant in Varle, Maharashtra. The plant has the capacity to recycle approximately 60,000 MT of passenger radial tyres annually. The plant was commissioned in record
Slide 30: Project Update – Oman Plant
PROJECT UPDATE OMAN PLANT – PROGRESS AND MILESTONES TRIL has acquired its maiden overseas facility in Oman, investing USD 1.5 million, and named it Global Recycle LLC. Global Recycle is the largest operational waste tyre recycling facility in Oman, with a capacity to process 15,000 MT of waste tyres
Slide 31: Project Update – Polymers and Masterbatches
PROJECT UPDATE POLYMERS AND MASTERBATCHES – PROGRESS AND MILESTONES The plant is set up in the existing tyre recycling plant at Panipat. The plant was commissioned and made operational in March 2024. It serves as a pilot plant with a capacity to process 6,000 metric tonnes of plastic/rubber componen
Slide 32: Paving Way for 2027 – International Operations
PAVING WAY FOR 2027 – INTERNATIONAL OPERATIONS OMAN Tinna is further planning to expand their operations in Oman and have applied to the concerned Ministry for allocation of land for setting up OTR tyre recycling We plan to begin operations by Q3 SAUDI ARABIA Tinna Rubber will set up a tyre recyclin
Slide 33: Key Competitive Advantages
7 KEY COMPETITIVE ADVANTAGES Exceptional Product Customization and widest possible application of recycled rubber Diversified Customer network Deep Routed procurement network Strategically Well-Placed Manufacturing Facilities at Port locations World's Largest manufacturer of Micronized Rubber Powder
Slide 34: Moats – Securing Our Leadership
7 MOATS-SECURING OUR LEADERSHIP Pan India Presence Diversified Product Sector Agnostic Applications Applications 45 + Long-standing 45+ years Exceptional Product of industry experience Customization Multinational OEM Approvals Procurement Network 33
Slide 35: Financial Performance
FINANCIAL PERFORMANCE For details, refer Financial Reports section 34
Slide 36: Quarterly Consolidated Financial Performance
QUARTERLY CONSOLIDATED FINANCIAL PERFORMANCE Particulars (INR Mn) Q1 – FY25 Q4 – FY24 Q-o-Q Q1 – FY24 Y-o-Y Operational Income 1,360 1,099 23.7% 805 68.9% Total Expenses 1,113 874 27.3% 688 61.8% EBITDA 247 225 9.8% 177 39.5% EBITDA Margins (%) 18.16% 20.47% (231) Bps 14.53% 363 Bps Other Income 5 5
Slide 37: Historical Consolidated Income Statement
HISTORICAL CONSOLIDATED INCOME STATEMENT Particulars (INR Mn) FY22 FY23 FY24 Q1-FY25 Operational Income 2,292 2,954 3,630 1,360 Total Expenses 1,923 2,587 3,004 1,113 EBITDA 369 367 626 247 EBITDA Margins (%) 16.10% 12.42% 17.25% 18.16% Other Income 34 61 13 5 Depreciation 86 71 64 22 Interest 90 76
Slide 38: Historical Consolidated Balance Sheet
HISTORICAL CONSOLIDATED BALANCE SHEET Particulars (INR Mn) FY22 FY23 FY24 Particulars (INR Mn) FY22 FY23 FY24 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 696 676 1,232 Share Capital 86 86 171 Capital WIP 6 3 66 Other Equity 688 874 1,107 Right of use Assets 18
Slide 39: Historical Financial Performance Charts – P&L Statement
HISTORICAL FINANCIAL PERFORMANCE CHARTS–P&L STATEMENT Revenue From Operations EBITDA (INR Mn) & (INR Mn) EBITDA Margins (%) 3,630 2,954 626 2,292 369 367 1,360 247 16.10% 17.25% 18.16% 12.42% FY22 FY23 FY24 Q1-FY25 FY22 FY23 FY24 Q1-FY25 EBITDA Percentage PAT and Cash Profit (INR Mn) Diluted EPS (IN
Slide 40: Historical Financial Performance Charts – Balance Sheet
HISTORICAL FINANCIAL PERFORMANCE CHARTS-BALANCE SHEET Net D/E (x) ROE (x) 0.96 0.86 31.56% 21.81% 0.66 0.59 23.65% -0.15% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Fixed Asset Turnover (x) Debt (INR Mn) & Interest Coverage Ratio (x) 900 848 9 4.3 800 8.53 8 660 690 587 3.7 700 7 3.4 600 6 4.7 500 5 3.
Slide 41: Capital Market Data
CAPITAL MARKET DATA 1 Year Share Price Performance 800% 700% 600% 500% 400% 300% 200% 100% 0% -100% Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Tinna Rubbers & Infra Ltd BSE Price Data (As on 30th June, 2024) Shareholding Pattern (As on 30th June 2024) Face Va
Slide 42: A Holistic Approach to Business: ESG
A HOLISTIC APPROACH TO BUSINESS: ENVIRONMENT, SOCIAL, AND CORPORATE GOVERNANCE 41
Slide 43: Modern Recycling and Recovery for Sustainable Gains
MODERN RECYCLING AND RECOVERY FOR SUSTAINABLE GAINS CIRCULAR ECONOMY MAKE TRIL business is a prime example of success of circular economy model which involves utilizing existing materials and 6 6** products efficiently through recycling and reusing. Recycling Plants MILLION tyres back in circular RE
Slide 44: Building a Better World
BUILDING A BETTER WORLD REVOLUTIONARY INDUSTRY: ACHIEVING 400% VALUE ADDITION TO WASTE CSR INITIATIVES CREATING AWARENESS We take pride in creating awareness We regularly organize medical checkup, blood donation, and hygiene about circular economy and awareness camps. Our CSR initiatives are mainly
Slide 45: Business for a Cause – CSR Initiatives
BUSINESS FOR A CAUSE – CSR INITIATIVES Chithoornatham Primary School Medical camp conducted by Tinna, Government of Tamilnadu Education Installation of water cooler gmpd unit at nearby village Karambedu, Department, Chithoornatham - Razapur, Panipat, Haryana Chennai Plantation of Vana Uchar Trees in
Slide 46: Nurturing a Culture of Ethics, Accountability, & Transparency
NURTURING A CULTURE OF ETHICS, ACCOUNTABILITY, & TRANSPARENCY Ethical Business Practices: Our Ongoing Efforts to Cultivate Trust Among Shareholders, Employees, Customers, Suppliers, and Stakeholders through Principles of Strong Corporate Governance, including Integrity, Equity, Transparency, Fairnes
Slide 47: TP Buildtech Pvt. Ltd – An Update
TP BUILDTECH PVT. LTD – AN UPDATE COMPANY OVERVIEW STRENGTHS Established in 2012, specializing in Concrete Waterproofing Admixture, Cement Strong presence in Western India. In FY25 ,building Admixture, Superplasticizer Admixture, etc. business in Northern and Eastern India. Manufacturing units in Wa
Slide 48: Financial Performance - YoY
FINANCIAL PERFORMANCE - YOY SALE AND EBITDA 1,882 2,000 1,800 1,542 1,600 EBITA % has increased from Amount in Lakhs 1,400 17% 13% to 17 % on YoY basis 1,200 13% Sales has gone up around 1,000 22% on YoY basis 800 600 320 208 400 200 0 Q1 FY 2024 Q1 Provisional FY 2025 Sale (INR) EBITDA (INR) EBITDA
Slide 49: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE SALE AND EBITDA 6,402 7,000 6,083 6,000 Amount in Lakhs 4,682 5,000 14% EBITDA 4,000 9% 2,799 7% doubled in 3,000 FY24 2,000 3% 924 435 412 1,000 91 0 FY20-21 FY21-22 FY22-23 FY23-24 Sale (INR) EBITDA (INR) EBITDA % Increase 48
Slide 50: Thank You
Lowcsee Caring for Environment THANK YOU 49
Tinna Rubber and Infrastructure — Q1 FY25 Earnings Presentation on 6ix