Hle Glascoat Ltd · NSE:HLEGLAS
Hle Glascoat — Investor Presentation (November 2021)
38 slides from Hle Glascoat's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
INVESTOR PRESENTATION November 2021 HLE Glascoat Limited (Formerly known as Swiss Glascoat Equipments Ltd.)
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of HLE Glascoat Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or induc
Slide 3: Financial Performance
Financial Performance Key Operating Ratios and Financial Statements 3
Slide 4: Financial Performance: Q2 FY22 Segmental Performance
Financial Performance: Q2 FY22 Revenue from Operations EBITDA Profit After Tax Rs. 124 crores Rs. 23 crores Rs. 13 crores +2% +7% +12% Filtration, Drying and Other Equipment Glass Lined Equipment Rs. In Crs Segmental Performance +23% 0% 72.8 50.1 50.2 Segment Revenue 59.4 Q2 FY21 Q2 FY22 Q2 FY21 Q2
Slide 5: Financial Performance: H1 FY22 Segmental Performance
Financial Performance: H1 FY22 Revenue from Operations EBITDA Profit After Tax Rs. 248 crores Rs. 48 crores Rs. 27 crores +21% +31% +49% Filtration, Drying and Other Equipment Glass Lined Equipment Rs. In Crs Segmental Performance +30% +36% 138.2 107.4 Segment Revenue 106.1 78.7 H1 FY21 H1 FY22 H1 F
Slide 6: Profit & Loss: Q2 & H1 FY22
Profit & Loss: Q2 & H1 FY22 Particulars (in Rs. Crs) Q2 FY22 Q2 FY21 Y-o-Y H1 FY22 H1 FY21 Y-o-Y Revenue from Contract with Customers 124.02 121.51 2.1% 248.25 205.26 20.9% Other Income 1.02 0.78 2.12 1.40 Total Revenues 125.04 122.29 2.3% 250.37 206.66 21.2% Cost of Materials Consumed 78.22 55.03 1
Slide 7: Balance Sheet: As on 30th September 2021
Balance Sheet: As on 30th September 2021 Particulars (in Rs. Crs) Sept-21 Mar-21 Particulars (in Rs. Crs) Sept-21 Mar-21 Non-Current Assets Equity Share Capital 13.65 13.08 Property, Plant and Equipment 115.01 110.08 Other Equity 202.64 121.61 Capital Work-in-Progress 22.13 3.12 Non Controlling Inte
Slide 8: Strong Operating Cashflows and Returns
Strong Operating Cashflows and Returns Return on Average Capital Return on Average Equity Employed (RoCE) (RoE) Fixed Asset Turnover 35.0% 44.8% 3.8x Total Debt Debt to Equity Rs. 75 Crs 0.35x Debt / EBITDA Net Debt / EBITDA Cash & Cash Equivalents 0.78x 0.1x Rs. 62 Crs 8 On Consolidated Basis as on
Slide 9: Higher Operating Levels – A precursor to Future Revenue Growth
Higher Operating Levels – A precursor to Future Revenue Growth ▪ The Company predominantly manufactures Filtration and Drying equipment specific to customer orders and Rs. Crs specifications in both segments +50.4% 45 Material Consumed for production 36 +26.7% 30 ▪ The high production levels indicat
Slide 10: Record Orderbook Position
Record Orderbook Position Order book (No. of months) Working Capital (Rs. In Crs.) Inventory Break-up (Rs. In Crs.) 9 176 53 14 57 176 81 84 6 6 97 72 Higher Inventory on Higher Production the back of strong has resulted in order book increase in the WIP and Finished Goods Inventory Trade Advances T
Slide 11: Acquisition of the global business of Thaletec GmbH
Acquisition of the global business of Thaletec GmbH 11
Slide 12: Acquisition of the global business of Thaletec GmbH
Acquisition of the global business of Thaletec GmbH The acquisition will enhance efficiencies The Closing procedures are progressing well. The Company intends to provide its global and combine similar business interests for It is expected that the 100% acquisition will be expertise and management ca
Slide 13: Valuation and Terms of Acquisition
Valuation and Terms of Acquisition Acquisition of Target Company shares from HLE Glascoat will purchase 100% of As a part of the deal, both Selling Shareholders the equity shares in Thaletec, from companies have mutually agreed the Selling Shareholders. that Thaletec will continue to have its distin
Slide 14: About Thaletec GmbH
About Thaletec GmbH Thaletec is engaged in the business It is a market leader in the Glass Lined Particulars 2018 2019 2020 of manufacturing specialized process Equipment business in the highly (Euro Mn.) equipment/ reactors and has its sophisticated market of Germany manufacturing facility in Germa
Slide 15: Evolution of the Group
Evolution of the Group From Chemicals to Excellence in Engineering 15
Slide 16: Foundation of Patel Group in 1951
FOUNDATION OF PATEL GROUP in 1951 “ A farmer’s son, who obtained his PhD in Chemical Engineering from Columbia University New York, returned home in the year 1950 to contribute to a newly independent India. ▪ The foundation of Patel Group was laid by late Dr. K. H. Patel in 1951 with – ▪ ” Over the
Slide 17: Evolution from Chemicals to Engineering
Evolution from Chemicals to Engineering 1960 1981 2003 2017 2019 2021 CDCC HL Engineers HL Equipments & HLE acquires Glascoat HLE Glascoat Thaletec GmbH Turnkey HLE begins operations, R&D Facility HLE expands into Glass Lined Ltd Definitive Chemical Plants manufactures machinery Engineering business
Slide 18: Merger of Leaders: Combined Performance is Greater than Individual
Merger of Leaders: Combined Performance is Greater than Individual In 2017, HLE Engineers Pvt. Ltd. acquired a controlling stake in Swiss Glascoat Equipments Ltd. • Market leader in filtration and drying • In 2019, the businesses of HLE • Second largest manufacturer of equipment with over 60% share.
Slide 19: Industry Reference for Excellence in Engineering
Industry Reference for Excellence in Engineering Market Leader in Filtration & Second Largest manufacturer of Drying Equipment with more than Glass Lined Equipment in India 60% share of the Indian Market. with nearly 30% market share. Customer Acquisition and Technology and Automation Procurement an
Slide 20: Preferred Supplier: Largest Player in Filtration & Drying
Preferred Supplier: Largest Player in Filtration & Drying Largest Technology HLE Glascoat market share Leader Competitor 1 “Preferred Supplier” Competitor 2 Others World’s Largest 0% 20% 40% 60% 80% Manufacturer of ANFDs Filtration & Drying Market Share in India 500 Filters p.a. 17% CAGR Over the pa
Slide 21: Preferred Supplier: Glass Lined Equipment
Preferred Supplier: Glass Lined Equipment 2nd Largest Player In Glass Lined Equipment ~30% Market Share In Glass Lined Equipment in India 21
Slide 22: De-risking and Diversification: A Business Imperative
De-risking and Diversification: A Business Imperative Product-wise Revenue Break- Industry-wise Revenue Break- up ANF up GLRs 8% 30% Others API & 5% Pharma Not more than 35% 37% Revenue is generated ANFD from a single 37% Speciality product Chemicals 42% GL Tanks & Others Other 16% Engineering produ
Slide 23: Foundation for Growth
Foundation for Growth Enabling us to adapt to the changing needs of the business 23
Slide 24: Diversified Product Portfolio
Diversified Product Portfolio Filtration Glass Lined Equipment Agitated Nutsche Filters GL Reactors Agitated Nutsche Filter-Dryers GL Tanks Kilo-lab Filter-Dryers GL Heat Exchangers GL Columns GL Pipes & Fittings Drying GL Filters & Dryers Rotary Vacuum Paddle Dryers Rapid Disc Dryers/Coolers Spheri
Slide 25: Capabilities: Filtration, Drying and More
Capabilities: Filtration, Drying and More Continuous Pan Filter Oyster Filter Canada Germany 6m diameter pan for a continuous type 6m Diameter rotating type continuous filter rotating within the tolerance of filter, compliant with ASME, CE and JIS 3mm Standards MOC: Inconel MOC: SS316L High Pressure
Slide 26: Marquee Projects: Glass Lined Equipment
Marquee Projects: Glass Lined Equipment 32KL GMP Reactors 50KL Tank We consistently India India One of the largest glass lined One of the largest glass lined deliver GMP reactors manufactured vessel supplied in the Indian and sold in the country. market followed by a repeat order. Largest Project Or
Slide 27: State-of-the-art Manufacturing Facilities
State-of-the-art Manufacturing Facilities MAROLI WORKS ANAND WORKS HL EQUIPMENTS, SILVASSA • 10,000 m2 built-up area with nearly 8,000 m2 • 20,000 m2 floor area covered by 33 EOT cranes. • 4,200 m2 floor area covered by 8 EOT cranes. covered under 26 EOT cranes. • Five state-of-the-art SCADA control
Slide 28: Competitive Edge: Product Engineering
Competitive Edge: Product Engineering “ Pilot Plant and R&D Facility: ▪ The only pilot plant & R&D Facility of its kind among any process equipment manufacturer. Chemical Engineering Solution ▪ Our pilot plant enables our customers to conduct thorough Providers and not just ” trials on out ANFDs and
Slide 29: Competitive Edge: Process Engineering
Competitive Edge: Process Engineering Special Purpose Machines (SPMs) and Tooling ▪ Optimized every step of the fabrication process with SPMs developed and built by our team of process engineers. ▪ Our SPMs dramatically reduce the manhours required for a job and increase process repeatability. At th
Slide 30: Geographical Diversification
Geographical Diversification Strong Domestic Sales Network and Global Footprint Canada Europe Russia Channel Partner Channel Partner Channel Partner Delhi NCR Sales Office USA Ahmedabad Channel Partner Channel Partner Vadodara Thailand Anand Channel Partner Israel Channel Regd. Office Channel Partne
Slide 31: Marquee Client Relationships
Marquee Client Relationships 31
Slide 32: Experienced Management Team
Experienced Management Team Himanshu Patel He is a qualified Electrical Engineer graduating from the University of Bombay in the year 1976 and has more than 45 years of experience in the business of chemicals and engineering. Nilesh Patel He has completed his BSc (Chemistry) from the University of B
Slide 33: Professional Management Team
Professional Management Team Vice President Vice President Sr. Vice President Strategic Advisor Engineering Sales & Marketing Corporate Development Total Experience: 35 years+ Total Experience: 32 years+ Total Experience: 20 years+ Total Experience: 18 years+ B.Com, CA B.E Mechanical B Com. PG - IT
Slide 34: Robust Systems
Robust Systems 101 ASME Accreditation Authorized to use ASME ‘U’, ‘NB’ and ‘R’ Stamps for pressure vessels. 202 CE Compliance Designing and manufacturing in compliance with CE as per Pressure Equipment, ATEX, Machinery, Electromagnetic, Low Voltage and other Directives. 303 JIS Compliance Designing
Slide 35: Future Outlook
Future Outlook Responding to the Large Orderbook by ramping up capacities 35
Slide 36: Identified Thrust Areas for Growth
Identified Thrust Areas for Growth Industry Potential Strong Balance Sheet Tailwinds in the various chemical sectors will continue to drive Robust liquidity position with increasing profit margins growth. Recent policy changes and need for domestic combined with a reducing working capital cycle will
Slide 37: Capacity Ramp-up for future growth
Capacity Ramp-up for future growth Fabrication Shop at Maroli Assembly Shed at Anand The project for addition of the manufacturing sheds adjacent to the Commissioned assembly shed at Anand thereby existing facility at Maroli adding over 25% more floor area for enhancing the assembly capacity by arou
Slide 38: Thank You
Thank You Company Name: HLE Glascoat Limited (Formerly known as Swiss Glascoat Equipments Ltd.) CIN: L26100GJ1991PLC016173 Contact Person: Email Address: Mr. K.V. Unnikrishnan, CFO investor.relations@glascoat.com Investor Relations Advisors : Mr. Payal Dave +91 9819916314 Payal.dave@linkintime.co.in