Visaka Industries Ltd. · NSE:VISAKAIND
Visaka Industries — Investor Presentation (August 2017)
40 slides from Visaka Industries's investor presentation, Aug 11, 2017
Slide 1: Investor Presentation
Investor Presentation
Slide 2: Disclaimer
Disclaimer This Information Package is distributed by Visaka Industries Ltd. on a strictly confidential basis for information only. This Information Package should not be disclosed, reproduced or used in whole or in part for any purpose whatsoever or furnished to any other persons without the expres
Slide 3: Table of Contents
Table of Contents Section Particulars Page No. 1 Company Overview 4 2 Business Verticals 10 3 Key Financials 25 4 Key Strengths 31 5 Business Strategy 36 6 Way Forward 38 3
Slide 4: Company Overview
Section 1 Company Overview 4
Slide 5: Company Overview
Company Overview Overview Shareholding Structure as on 30th June, 2017 About Visaka: Visaka Industries, established in 1985, is engaged in two attractive businesses. Building products - cement asbestos products and fibre cement flat products (V-Boards and V-Panels) and Synthetic yarns for the text
Slide 6: Board of Directors
Board of Directors Shri Bhagirat B. Merchant Non Executive Independent Director Chairman Dr. G. Vivekanand Non – Executive Non–Independent Director Vice Chairman Smt. G. Saroja Vivekanand Managing Director Shri Gusti J Noria Non – Executive Independent Director Shri V. Pattabhi Non – Executive Indep
Slide 7: Awards & Certificates
Awards & Certificates SILVER Winner for the Best Presentation of Annual Report 2011-12 from LACP(League of American Communications Professionals) Bags award for “Best Practices in Investor Relations in Fibre Cement Sheets Industry Category – 2012 by the IR Society” Awareness Centre of Environme
Slide 8: Important Corporate Information
Important Corporate Information Our Big Numbers in FY17 at a Glance The Company engaged Ernst & Young as the ASP-GSP service provider for filing and managing GST returns. PWC commenced the Audit and the June 2017 quarter results were audited by them. Working Capital days for FY17 was 104 days
Slide 9: GST Impact
GST Impact GST Rate of Visaka Products Vs Competing Products TOTAL TAX PRODUCT EX-DUTY VAT GST SLAB DIFFERENCE COMPETING (Incl Tax on ED) WITH A C SHEETS (VISAKA) 12.50 14.50 28.81 18.00 -10.81 ↓ - C C SHEETS 12.50 5.00 18.13 18.00 -0.13 ↓ AC SHEETS ALUMINIUM SHEETS 12.50 5.00 18.13 18.00 -0.13 ↓ AC
Slide 10: Business Verticals
Section 2 Business Verticals 10
Slide 11: Business Verticals
Business Verticals Cement Asbestos V-Next Products Yarn •Corrugated Cement Fiber Sheets •Close Fitting Adjustable Ridges •Apron Piece •V-Board •Cladding/Walling •V-Premium •Cotton-Touch Airjet Spun •North Light Ridges •V-Designer Polyester yarns •Barge Boards •V-Plank •North Light Curve •V-Panel •Se
Slide 12: Building Products - Cement Asbestos
Building Products - Cement Asbestos Overview The Company possessed 802,000 TPA of installed Net Revenue(Rs. in mn) capacity of cement asbestos products. The company has depots in 36 major cities and towns, country-wide to ensure smooth supply of its 8,000.00 products. 6,842.00 6,000.00 7,173.30 6,29
Slide 13: Building Products - Vnext
Building Products - Vnext Overview Net Revenue(Rs. in mn) V-Next products come with unmatched quality, aesthetics, style and durability and is the ideal choice of smart and good looking interiors and 1,500.00 exteriors. V-Boards and V-Panels have fire, water and termite resistance 1,406.84 character
Slide 14: V-Boards (Plain Boards, Designer Boards, Premium Boards)
V-Boards (Plain Boards, Designer Boards, Premium Boards) V-Board is non-asbestos, autoclaved, fiber cement board manufactured using Hatschek Process and High Pressure Steam Curing(HPSC) technology. V-Board Advantages: Exova Warrington fire-rating and TUV-PSB certified Asbestos Free Fire Resist
Slide 15: V-Board Applications: Roof Underlay, Mezzanine Flooring, Acoustic Partitions
Roof Underlay - (V-Board - premium) Mezzanine flooring - (V-Board) Acoustic partitions - (V-Board) 15
Slide 16: V-Board Applications: False Ceiling, Wall Paneling, Duct Covering
Concealed Grid False Ceiling - (V-Board/V-Designer) Wall Paneling - (V-Board) Duct Covering - (V-Board - Premium) 16
Slide 17: Kitchen Cabinets and Shelves
Kitchen Cabinets and Shelves The triple advantages-water, termite and fire resistance of V-Board can appropriately fulfill the conditions to make it an ideal application for kitchen cabinets and other moisture prone areas.(16mm, 18mm) 17
Slide 18: V-Planks
V-Planks Good looking exteriors traditionally come at the cost of quality and are prone to moisture damage. Fibre cement boards are the answer to this problem. Being resistant to the elements of weather, these strong fibre cement boards are ideal for external embellishments to modern buildings. V-Pl
Slide 19: V-Plank Applications: Gate Cladding, Garden Fencing, Façade
Gate Cladding - (V-Plank) Garden Fencing - (V-Plank) Façade - (V-Plank ) 19
Slide 20: V-Panels
V-Panels V-Panel can be used with the aim of achieving cost effective and time saving solution for construction of dry walls. V-Panel has all the advantages of a masonry wall with added qualities preferred for construction. V-Panel is a user friendly product for installation and proves to be a bette
Slide 21: V-Panel Applications: Internal Partitions, External Walls
Internal partition - (V-Panel) Internal partition - (V-Panel) Internal Partitions for a School - (V-Panel ) External Walls for a Resort - (V-Panel ) Roof Top Extension - (V-Panel ) 21
Slide 22: Textile Products - Yarn
Textile Products - Yarn Overview The textile division manufactures yarns using Net Revenue(Rs. in mn) state-of-the-art twin air jet spinning machines (Murata, Japan) with 41 MTS Machines (equivalent to 82,560 ring spindles) where yarn 2,000.00 quality is superior to conventional ring frame 1,796.40
Slide 23: Textile Products - Yarn
Textile Products - Yarn In an ever changing landscape of customer demands, managed to diversify into niche sector, with better contributions without stock accumulation. Quality conscious customers – many customers continuing to be with us for more than 5 years. Cream of customers in Automobile
Slide 24: Textile Products - Yarn
Textile Products - Yarn Anti-pilling nature of yarn makes Visaka yarn a perfect ingredient for Home Textiles and Automotive Fabrics. Cotton-Touch and Wicking properties of Visaka yarn are the salient features of the Table Linen Fabrics used in Hospitality Industry and the sheer curtains used in
Slide 25: Key Financials
Section 3 Key Financials 25
Slide 26: Revenue Breakup Business Wise
Revenue Breakup Business Wise FY13 FY14 FY15 FY16 FY17 Q1FY18 Business Segments Rs in Mn % Rs in Mn % Rs in Mn % Rs in Mn % Rs in Mn % Rs in Mn % Cement Asbestos 6,842.00 75% 6,290.00 71% 7,173.30 71% 6,784.28 69% 6,415.13 67% 2,156.01 73% V-Boards and V-Panels 605.54 7% 757.87 9% 1,161.15 11% 1,395
Slide 27: Key Financial Indicators
Key Financial Indicators EBIDTA(Rs in Mn) Book Value of Share(Rs.) 1,185.22 1200 1092.22 250 244 983.27 979.64 1000 240 230 800 626.51 219 220 600 209 209 205 210 400 200 200 190 0 180 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Cash Profit(Rs in Mn) Dividends % 60% 60% 1200 60% 942.12 1004.73
Slide 28: Yearly Financial Highlights
Yearly Financial Highlights * As per Ind AS Profit & Loss (INR in Mn) FY13 FY14 FY15 FY16 FY17 * Q1FY18 Income from Operation 9,156.03 8,921.03 10,211.32 10,048.53 9,667.32 3,407.20 Other Income 25.56 53.59 24.20 27.27 37.69 15.89 Total Income 9,181.59 8,974.62 10,235.52 10,075.80 9,705.01 3,423.09
Slide 29: Production, Turnover & Operating Margin – Segment Wise
Production, Turnover & Operating Margin(EBIDT) – Segment Wise * As per Ind AS Building Products FY 13 FY 14 FY 15 FY16 FY17 * Q1FY18 Installed Capacity (TPA) 809,750 881,750 931,750 931,750 931,750 931,750 Production (MT) 796,948 664,437 855,293 797,157 800,817 235,987 Turnover (Rs.Millions) 7,447 7
Slide 30: ROE % and ROCE %
ROE % and ROCE % Particulars FY 13 FY 14 FY 15 FY 16 FY17 *Q1FY18 Particulars FY 13 FY 14 FY 15 FY 16 FY17 *Q1FY18 ROE 15.55% 3.59% 6.39% 7.04% 10.52% 5.70% ROCE 13.78% 6.17% 8.02% 8.60% 12.83% 6.53% ROE % ROCE % 15.55% 13.78% 16% 14% 12.83% 14% 12% 12% 10.52% 10% 8.60% 8.02% 10% 7.04% 8% 6.17% 6.53
Slide 31: Key Strengths
Section 4 Key Strengths 31
Slide 32: Key Strengths
Key Strengths Corporate Product Profile: The Company manufactures products that capitalise on an ongoing improvement in lifestyle standards in India and abroad. Diversified: Visaka is a diversified company engaged in the manufacture of building products and synthetic blended yarn. The former acc
Slide 33: Key Strengths
Key Strengths Building Products Division Position: The Company was the seventh largest cement asbestos product manufacturer in India in 1996; it is the second largest today. Technological excellence: Visaka’s automated fibre cement plant incorporates sophisticated technologies; its consistency i
Slide 34: Key Strengths
Key Strengths Building Products Division Superior quality: The Company’s fibre cement plant is certified by the ISI. The V-Board division possesses HPSC technology conforming to IS 14862-2000 norms. Advantages of ACS over metal sheets: Sound proof, Fire proof, rust proof. Life of this product on
Slide 35: Key Strengths
Key Strengths Textiles Business High margins: The Company manufactures value-added yarn, enjoying some of the highest margins in its segment. Engineering excellence: The Company successfully produced dyed yarn at speeds higher than the equipment manufacturer’s recommendation. Large scale: The
Slide 36: Business Strategy
Section 5 Business Strategy 36
Slide 37: Overview: Business Strategy
Overview : Business Strategy Increasing network of business Increasing turnover of capital constituents Expanding in other states of Execution of projects in time India Focus on direct contracts rather Increasing the order book than sub contracting work Increasing sectoral coverage Moving up the val
Slide 38: Way Forward
Section 6 Way Forward 38
Slide 39: Way Forward
Way Forward Going by the positive statistics on macro data - GDP, IIP, Inflation and Policy rates - by the IMF and the World Bank, there is likely to be an upward surge in housing and infrastructure sector resulting in higher utilization levels for its asbestos cement product business coupled with
Slide 40: Thank You
Thank You 40
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