Everest Industries Limited · NSE:EVERESTIND
Everest Industries — Investor Presentation (September 2019)
42 slides from Everest Industries's investor presentation, Sep 18, 2019
Slide 1: Exchange covering letter: Presentation to Analyst/Institutional Investors
Ref. : NSE / BSE/ 46/ 2019 Date : 18th September, 2019 National Stock Exchange of India Limited BSE Limited Exchange Plaza ' Phiroze Jeejeebhoy Towers Plot N o. C / 1, G Block Dalal Street, Mumbai — 400 001 Bandra — Kurla Complex Tel.: 2272 1233/ 8058 Extn — 8013 Bandra (E), Mumbai - 400 051 Fax N o
Slide 2: Everest Industries Limited Investor Presentation – September 2019
EVEREST INDUSTRIES LIMITED INVESTOR PRESENTATION – SEPTEMBER 2019
Slide 3: Executive Summary
Executive Summary Company Overview: Everest Industries Limited, incorporated in 1934, has a rich history in the manufacturing of Building products and Steel products. Everest offers a complete range of roofing, ceiling, wall, flooring, and cladding products distributed through a large network, as we
Slide 4: Company Overview
Company Overview 3
Slide 5: Company Overview
Company Overview • Everest Industries Limited (Everest) has over 8 decades Revenue (INR Mn) and EBITDA Margin (%)* of experience in building products and is the pioneer of fibre cement products in India. • The company’s business is built on three key pillars: Safety, Speed, and Strength. • The visio
Slide 6: History and Milestones
History and Milestones -Established Pre- -Introduced Non- Engineered asbestos Roofing -Introduced Hi-Tech -Launched Solid Building (PEB) -Incorporation -Equity Publicly Sheets and Fibre -Established R&D -Initiated exports of Roofing with HIPP Wall Panels Division listed Cement boards centre Boards t
Slide 7: Board of Directors and Key Management Team
Board of Directors and Key Management Team Mr. Narotam Sekhsaria - Director • Bachelor’s in Chemical Engineering from UDCT • Doyen of the Indian Cement Industry. He introduced new standards in manufacturing, management, marketing efficiency and corporate social responsibility to an industry he has h
Slide 8: Board of Directors and Key Management Team
Board of Directors and Key Management Team Bhavna G Doshi - Independent Director • Chartered Accountant and fellow member of Institute of Chartered Accountants of India • Expert in taxation, restructuring, and business valuation • 25 years experience as an advisor to KPMG Mr. Alok Nanda - Independen
Slide 9: Manufacturing & Distribution Network
Manufacturing & Distribution Network Distribution Network Total Capacity (MTPA) Sales Depots Steel Building Plants 32 Bhagwanpur, Uttarakhand 72,000 MT Dealer Outlets 6,000 Ranchi, Building Product Plants Kymore, Jharkhand Dahej, Serving Cities 9,50,000 MT Madhya Pradesh Gujarat Kolkatta, 600+ West
Slide 10: Marquee Clients
i __ Marquee Clients EVEREST Z,) Bence rN Walmart ><. IFB Simplex Infrastructures Limited Industries Limited @ acisifep, HYATT yi ACC : F/p) CAPITAL Pidilite ~ Mahindra GATE a | = Whirl ool ssvorasi RELIANCE x « a We ® Bye (e2z2"] LY usr A Maharatna Company Y Aa BRITANNIA NOVOTEL Gelebrate Cite/ ITC
Slide 11: Key Strengths
Key Strengths Delivering Strength, Speed and Safety to its customers • Focus on executing projects with speed, strength and safety Trusted brand for over 8 decades Complete Building Solutions Provider • Commands market share of 18% • Strong portfolio of products and in Building Products and one of s
Slide 12: Awards & Recognitions
Awards & Recognitions Everest Foundation has been Everest Foundation has received recognized by Government of the prestigious “Mahatma Gandhi India as a progressive training Tobacco Free Service Award” from partner in the field of Skills the Government of Maharashtra for Training by the Construction
Slide 13: Recent Awards and Activities
Recent Awards and Activities Everest SUPER TV Everest was awarded Campaign in Tamil the challenger Trophy Nadu garnered 1100+ at Construction World GRPs. Awards 2018. Everest SUPER brand visibility activities across West Bengal Boards & Panels during Durga Puja. team displayed entire solutions range
Slide 14: Business Overview
Business Overview 13
Slide 15: Indian Economy and Everest
Indian Economy and Everest • IMF, in its latest Update, has forecast that India will grow at 7.2% in 2020. • Services expected to grow at 8% plus • Exports has increased 8.73% y-o-y in 2018-2019 (up to February 2019) to USD 484 Bn and expected to reach 540 by 2018-2019 end. • Government is committed
Slide 16: Business Mix
Business Mix Building Products Steel Buildings & Products (65%) (35%) Boards and Pre Engineered Roofing Panels Buildings Fibre Cement Ceiling Wall & Flooring Smart Steel Roofing Solutions Cladding Solutions Buildings Solutions Supercolour Fibre Standard Floor Boards Primasteel Roofs Cement Roofing C
Slide 17: Building Products
Building Products • Everest offers a wide range of building products & solutions to meet the requirements of both, Building products*-Sales (`000 MT) commercial and residential segments. • Manufacturing presence across 8 states in India provides logistical advantage to the 798 704 707 company as the
Slide 18: Roofing Products
Roofing Products Everest Super Colour Fibre Cement Everest Fibre Cement Roofing Roofing Everest Hi-Tech Roofing Everest Rooflight & Accessories Everest corrugated sheets are made Everest Super Colour Roofs brings Everest Corrugated cement Hi-Tech Everest Rooflights are High quality from the highest
Slide 19: Roofing - Industry Overview
Roofing - Industry Overview Growth Drivers • As per census of India 2011, ~54% of rural people use thatched roof/tiles which are kuccha and need replacement every 2-3 years. • AC Roofing is the most long lasting and affordable roofing option for people. • As per the National Housing Board, roofing c
Slide 20: Boards and Panels – Everest Wall Solutions
Boards and Panels – Everest Wall Solutions Everest wall solutions are made from High Pressure Steam Curing technology. They offer Dry Wall construction capabilities. They can be combined with Timber, Steel or Aluminum framework to provide strength to dry wall construction. These solutions offer Fast
Slide 21: Boards and Panels – Everest Wall Solutions
Boards and Panels – Everest Wall Solutions Everest wall solutions are made from High Pressure Steam Curing technology. They offer Dry Wall construction capabilities. They can be combined with Timber, Steel or Aluminum framework to provide strength to dry wall construction. These solutions offer Fast
Slide 22: Boards and Panels – Everest Ceiling and Floor Solutions
Boards and Panels – Everest Ceiling and Floor Solutions The new-age Everest Fibre Cement Board is manufactured using the revolutionary HPSC technology, which makes them totally resistant against moisture, fire, and termites. Allowing the finish of your choice, Everest Fibre Cement Boards give you th
Slide 23: Building Products – New Product Launch
Building Products – New Product Launch Everest Artewood Planks • Manufactured using state-of-the art technology, Artewood planks are fine specimens of new-age building materials that are responsible, revolutionary, and eco-friendly. • Available in 3 different colours, Everest Artewood is a luxury pr
Slide 24: Building Products – Roofing and Fibre Cement Boards
Building Products – Roofing and Fibre Cement Boards Everest Roofing Products Everest Super Everest Super Everest Super Manufacturing Plant, Taran Singh Marriage Hall, Punjab Farm House, Jalandar Gidderbaha, Punjab Fibre Cement Boards and Panels Artewood Cladding Fibre Cement Boards W Hotel, Goa Dist
Slide 25: Boards and Panels - Industry Overview
Boards and Panels - Industry Overview Growth Drivers Fast Paced • The Indian Boards & Panels industry is dominated by wood based products like Execution plywood, MDF, particle boards. New age material like fibre cement boards and gypsum boards are becoming popular. • There are 4 significant players
Slide 26: Steel Buildings
Steel Buildings Pre Engineered Buildings Steel buildings* - Sales (`000 MT) • Everest is one of the largest players in the Pre-Engineered Buildings industry in India. 55 58 57 • 3 manufacturing plants – 2 Steel building plants, 1 metal roofing plant (Capacity – 72,000 MTPA). 52 • More than 2,300 pro
Slide 27: Steel Buildings Contd.
Steel Buildings Contd. Pre-engineered Buildings (PEB) Smart Steel Buildings Pre-engineered buildings are pre fabricated and ready to install 100% customized steel Buildings. Light gauge steel structures do not buildings. Each building is fine tuned as per clients requirements rot, shrink, warp, or d
Slide 28: Steel Buildings
Steel Buildings Tata Power – Bangalore, Rockman – Tirupati, Reliance – Jhajjar, Haryana Karnataka Andhra Pradesh Gokaldas Warehousing Godrej Agrovet – Chintapuli Mascor Precisions Pvt Ltd – Corporation – Mewat, Haryana Mandal, Andhra Pradesh Aurangabad, Maharastra 27
Slide 29: Steel Buildings Contd.
Steel Buildings Contd. Growth Drivers • Global PEB market expected to grow at a CAGR of 12% during the 2016 – 2020 period. • Conversion to PEB and new applications are expected to drive PEB growth in INDIA for next 5-7 years at a much higher rate. • Growth is primarily driven by Industrial and Infra
Slide 30: Steel Buildings - Industry Overview Contd.
Steel Buildings - Industry Overview Contd. Iron / Steel & Steel Structures Policy Support • Large infrastructure projects in the PPP Competitive Advantage mode are formed. • National steel policy • India is the world’s implemented to Increasing Investments 4th largest producer encourage the industry
Slide 31: Strategic Overview
Strategic Overview 30
Slide 32: Strategic Overview
Strategic Overview Changing Trends Building Products Steel Buildings • Conventional Products to Superior • Speed of construction through • Increased requirement of speedy Quality Products: With the focus ready to install products yet safe construction of the government on providing low cost housing,
Slide 33: Future Growth Strategy
Future Growth Strategy Building Products • Deeper penetration to popularise use of dry wall construction, rapid wall erection, ceilings solutions and moisture protection, by upgrading construction techniques to western lifestyle and product usage. • Increase sales in international markets – the comp
Slide 34: Financial Overview
Financial Overview 33
Slide 35: Income Statement – Standalone (INR Mn)
Income Statement – Standalone (INR Mn) Particulars FY17# FY18# FY19# Q1-FY20# Total Income* 12,372 12,786 14,106 4,344 Total Expenses 11,856 11,797 12,975 3,905 EBITDA 516 989 1,131 439 EBITDA Margin 4.17% 7.74% 8.02% 10.11% Depreciation 255 236 206 60 Finance Cost 208 126 76 16 Exceptional Items -
Slide 36: Balance Sheet – Standalone (INR Mn) IND-AS
Balance Sheet – Standalone (INR Mn) IND-AS Equities & Liabilities FY18 FY19 Assets FY18 FY19 Shareholder Funds Non Current Assets Share Capital 156 156 Property, Plant and Equipment 3,385 3,355 Other Equity 3,814 4,371 Intangible Assets 21 12 Total -Shareholder Funds 3,970 4,527 Capital Work In Prog
Slide 37: Historical Income Statement – Consolidated (INR Mn)
Historical Income Statement – Consolidated (INR Mn) Particulars FY17# FY18# FY19# Q1-FY20 Total Income* 12,498 13,069 14,148 4,352 Total Expenses 11,990 12,070 13,037 3,919 EBITDA 508 999 1,111 433 EBITDA Margin 4.06% 7.64% 7.85% 9.95% Depreciation 255 235 206 60 Interest 208 126 76 16 PBT 45 638 82
Slide 38: Balance Sheet – Consolidated (INR Mn) IND-AS
Balance Sheet – Consolidated (INR Mn) IND-AS Equity & Liabilities FY18 FY19 Assets FY18 FY19 Shareholder's Funds Assets Share Capital 156 156 Non-Current Assets Other Equity 3,824 4,358 Property, Plant and Equipment 3,385 3,355 Minority Interest - - Intangible Assets 21 13 Total Shareholder's Fund 3
Slide 39: Financial Performance – Consolidated
Financial Performance – Consolidated Revenue (INR Mn) and EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) Net Debt to Equity Ratio ROE & RoCE Operating Cash Flow (INR Mn) Working Capital Days Note: FY17 and FY18 numbers As per IND-As 38
Slide 40: Capital Market Information
Capital Market Information SHARE PRICE PERFORMANCE (AS ON 30TH JUNE, 2019) LARGEST INSTITUTIONAL INVESTORS (AS ON 30TH JUNE, 2019) 60% 40% 20% Vijay Kishanlal Kedia 6.08% 0% -20% HDFC Small Cap Fund 2.63% Everest Industries Sensex PRICE DATA (AS ON 30TH JUNE, 2019) SHAREHOLDING PATTERN (AS ON 30TH J
Slide 41: Disclaimer
Disclaimer Everest Industries Limited 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 opinions ar
Slide 42: Thank You
THANK YOU 41
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