West Coast Paper Mills Limited · NSE:WSTCSTPAPR
West Coast Paper Mills — Investor Presentation (June 2024)
57 slides from West Coast Paper Mills's investor presentation, Jun 5, 2024
Slide 1: Exchange filing cover letter
ZZR:AIM:273:SHARE:07 June 5, 2024 To: To: BSE Limited National Stock Exchange of India Ltd. Corporate Services Listing Department Floor 25, P.J.Towers, Exchange Plaza Dalal Street Bandra-Kurla Complex, MUMBAI – 400 001 Bandra [East] MUMBAI-400 051 Dear Sirs, Sub: Investor Presentation May 2024 We su
Slide 2: Investor Presentation | May 2024
Investor Presentation | May 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by West Coast Paper Mills Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 4: About West Coast Paper Mills
About West Coast Paper Mills West Coast Paper Mills Limited (WCPM) is one of the oldest and the largest producers of paper for printing, writing, and packaging in India WCPM enjoys a pedigree of standing over the past 69 years. The company's vision in constant upgradation of its process and technolo
Slide 5: Key Highlights: Pulp to Paper Excellence
Key Highlights: Pulp to Paper Excellence 1955 22+ 3,20,000 Countries MTPA Established in Countries Manufacturing capacity 4,000+ 70+ ISO 9001-2015 QMS ISO 14001-2015 EMS ISO 45001-2018 OH & SMS Employee Our Distribution Certifications Strength Network 4
Slide 6: A Look Back at Our Company's History
A Look Back at Our Company's History 2008 : Production capacity increased to 2019: Applied for permission from 1,80,000 TPA pollution control board to increase 2009 : Raised INR 855 crores via production to 450,000 TPA in Preference shares, non- existing plant 1995 : Installed 1.05 MW wind power con
Slide 7: Many Firsts to Our Credit
Many Firsts to Our Credit 1 First in Asia to install twin-wire Papriformer paper machine 2 First to introduce captive plantations in India First in India to introduce a chemical recovery boiler of 1100 TPD Solids 3 First to use synthetic wire on paper machine in India 4 Firing per day capacity First
Slide 8: Consolidation of Leadership Position
Consolidation of Leadership Position West Coast Paper Mills Andhra Paper Installed Capacity – 3,20,000 Mtpa Installed Capacity – 2,40,000 Mtpa Sales Volume – 3,03,766 Mtpa Sales Volume – 2,35,749 Mtpa Revenue – ₹ 2,623 Crores Revenue – ₹ 1,801 Crores EBITDA – ₹ 752 Crores EBITDA – ₹ 526 Crores PAT –
Slide 9: About Andhra Paper Limited
About Andhra Paper Limited Andhra Paper Limited, one of the largest integrated paper and pulp manufacturers in Andhra Pradesh & India was established in 1964 with a production capacity of 240,000 TPA of Paper and 181,500 TPA of Virgin Pulp. It is the only Paper Mill using virgin pulp in AP APL has p
Slide 10: Business Diversification via Optical Fibre Cable Manufacturing
Business Diversification via Optical Fibre Cable Manufacturing About Cable Business Product Portfolio • The company under its cable division – ‘West Coast Optilinks’, operates a State of the art 1. Optical Fibre Cables manufacturing facility in a Hi-Tech Electronics zone at Mysuru and Hyderabad 2. F
Slide 11: Experienced Board of Directors
Experienced Board of Directors SHRI S.K. BANGUR SMT. SHASHI DEVI BANGUR SHRI VIRENDRAA BANGUR Chairman & Managing Director Director Joint Managing Director He is a well-respected industrialist and philanthropist who serves as the She is a prominent member of the renowned Bangur family and serves as
Slide 12: Experienced Board of Directors
Experienced Board of Directors SMT. SUDHA G. BHUSHAN SHRI SHIV RATAN GOENKA SHRI ASHOK KUMAR GARG Director Director Director A highly respected Finance professional and co-founder of Taxpert As Chairman and Managing Director of Bengal Beverages Private Limited, With over 39 years of diverse banking
Slide 13: Dynamic Management Team
Dynamic Management Team Paper & Paper Board Division Cable Division SHRI RAJENDRA JAIN SHRI. RAJESH BOTHRA SHRI. PRAMOD SRIVASTAV Executive Director Chief Financial Officer CEO – Cable Division A qualified Chartered Accountant and A qualified CA professional with over 34 With a background in the tel
Slide 14: Industry Dynamics in Our Favour
Industry Dynamics in Our Favour
Slide 15: Paper Industry & Consumption
Paper Industry & Consumption INDIAN PAPER MARKET RISING PRODUCTION OF CONSUMPTION PAPER INDUSTRY 24.4 Newsprint 10% 22 20 Specialty paper (Tissue paper and others) 10% 10.11 Packaging: Carton 4.87 Boards & 2.43 Container Boards 0.75 1.1 Writing & Printing (Corrugated Boards) 0.11 0.34 Paper (coated
Slide 16: Domestic Paper Demand & Trends
Domestic Paper Demand & Trends Trends in Overall Paper Industry Key Growth Drivers Barriers to Growth FY21 and FY22 saw export growth from Indian paper mills due to capacity expansion, tech India’s per capita paper consumption low at ~14 Rising prices of raw materials due to inflationary upgrades, a
Slide 17: Industry Dynamics - Consolidation is Inevitable
Industry Dynamics - Consolidation is Inevitable Consolidation in the Industry is Inevitable Rising literacy rates, increasing India is Fastest Growing number of schools and universities Paper Market in the in the country and higher student High Capital Intensity World enrolments Economies of Scale R
Slide 18: Investment Proposition
Investment Proposition Integrated pulp mill Expect favorable paper Pan India Presence for Multiple product Strong Promoter steadily Strong with ample water and cycle to sustain Marketing offerings with a focus on Balance Sheet increasing stake in the Credit Rating power profitability higher margin p
Slide 19: Core Business Strategy
Core Business Strategy Bring strategic alignment Digital Transformation Setting up clear and coherent goals based on sound market Adopting new technologies and processes to improve analysis and future aspirations and aligning the organisation with operations, enhance customer experiences, and drive
Slide 20: What Sets Us Apart
What Sets Us Apart
Slide 21: Wesco Brand Created – Premium Paper Brand
Wesco Brand Created – Premium Paper Brand Exclusive range crafted especially for the hi-tech business Participated in Expo Finest Range of premium office paper of International standards, Tailor-made to suit all kinds of high-end office printers B2B: Copy Plus: Documate: Copy Gold: WESCO Bond: Multi
Slide 22: Product Portfolio Across Different Segments Ranging from 52-600 GSM
Product Portfolio Across Different Segments Ranging from 52-600 GSM Business Stationary Printing & Writing Security & Hi-value Grades Paper MG Varieties (Machine-Glazed) Cup Stock & Coated Duplex Board 21
Slide 23: One of the Largest Single Location Plant
One of the Largest Single Location Plant Economies of Scale Benefits Capacity 3,20,000 TPA Favourable plant location provides us an edge in sourcing raw-materials and ensuring adequate water supply Located in ‘Dandeli Town in Uttara Kannada district in Karnataka on a 240 acres of leasehold land’ Las
Slide 24: Self Sufficiency in all Utilities - Water, Power & Steam generation
Self Sufficiency in all Utilities - Water, Power & Steam generation Resources needed 1. Water 2. Power 3. Steam Requirement ~50000 KL/day ~50 MWh ~345 tph Round the year water Four coal fired FBC boilers & Four captive turbo generators availability from river Kali two chemical recovery boilers
Slide 25: Wood Procurement Strategy
Strong Backward Integration for Key Raw Material Supply • Distribution of Seedlings/Sapling across 3785 Strong Backward linkages with farming communities/farm forestry is the way Hectares land during FY 2023-24. forward to get key raw material/wood fibre for pulp production Paper Making Process • Im
Slide 26: Our Manufacturing Facilities
Our Manufacturing Facilities Installed Capacity: 2,60,000 TPA Installed Capacity: 3,20,000 TPA FIBRELINE PAPER MACHINE DUPLEX BOARD MACHINE PAPER CAPACITY UTILISATION OVER THE YEARS (%) 95 98 93 98 95 91 72 FY 18 FY 19 FY20 FY21 FY22 FY23 FY24 25
Slide 27: Images of Our Manufacturing Facility
Images of Our Manufacturing Facility 26
Slide 28: Strong Commitment to Quality and R&D
Strong Commitment to Quality and R&D Quality Control Research & Development Strong customer focused research 24x7 Quality Control Activity initiative, comprising a sophisticated Research center and qualified Machines equipped with advanced professionals online process and quality control systems for
Slide 29: One of the Largest Dealer Network in India
One of the Largest Dealer Network in India Distribution Presence across the One of the Largest dealer network in the country Key Highlights - Distribution country Network o Andhra Pradesh o Assam Network of 70+ dealers and 6 zonal offices in India o Haryana o Dadra & Nagar Haveli 75% of the dealers
Slide 30: Our Global Footprints
Our Global Footprints Export Regions Uganda Ghana Nigeria Kenya Tanzania Angola Cameroon Senegal Ethiopia Madagascar Rwanda Malawi Burundi Mozambique Congo Nepal Sri Lanka Greece Turkey Egypt Iraq Qatar 29
Slide 31: Testimony to Strive Excellence
Testimony to Strive Excellence National Environmental Awards Special Commendation Award (IPMA) at the Paperex-2015 1st prize in Best State Level Safety Safe Industrial Award (2016) Boiler Category (2017) Award for Rejuvenation of Water Tanks 30
Slide 32: Awards & Accolades
Awards & Accolades Safety Award National Safety Trophy Facilitation Ceremony function “UTTHAMA SURAKSHA (2019) held by National Safety Council - PURASKAR” from National Karnataka Chapter Safety Council 31
Slide 33: Environmental Social Governance
Environmental Social Governance
Slide 34: Responsible Forestry by Forest Stewardship Council
Responsible Forestry by Forest Stewardship Council Our Certifications The Forest Stewardship Council® (FSC) is an international certification system that promotes environmentally appropriate, socially beneficial, and economically viable management of forests and plantations The FSC does this by sett
Slide 35: SARA- Certified for Being a 'Well Managed Group Plantation'
SARA- Certified for Being a ‘Well Managed Group Plantation’ The Society for Afforestation, Research and Allied (SARA) promoted and supported by WCPM has continuously obtained certifications for developing ‘Well Managed Group Plantations’ since 2011 Formed by eminent personalities, which includes for
Slide 36: Tree Improvement Programme
Tree Improvement Programme Research Wing Tree Improvement Programme • Research wing works pro-actively towards the • Provide genetically superior, fast growing, disease promotion of Technology-based plantations with local resistant and best quality planting stock for improving districts, local commu
Slide 37: Reduction Burden on Environment
Reduction Burden on Environment Primary Clarifier - Pulp Secondary Clarifier - Pulp Diffused Aeration System Sludge loading Mist Cooling System Greenery at Effluent Treatment Plant Primary Clarifier - Paper Sludge Handling - Paper Dewatered Sludge Bioassay Analysis for Fish Survival Online Continuou
Slide 38: Ensuring Safety and Health in the Workplace
Ensuring Safety and Health in the Workplace Fire Hydrant Point Full-fledged Hospital Villagers' medical check-up Fire Hydrant Pumps near chipper The Mill has adequate fire The Mill has a well aid The Mill has full fledged Regular annual medical fighting facilities. The existing Disaster Management P
Slide 39: Contribute to the Common Good
Contribute to the Common Good Free Child Health Check-up & Treatment Camp ‘’Serving the community Bus Shelter at Gaonthan, for a better tomorrow..’’ Dandeli Distribution of Desk & Benches to Schools & Colleges Distribution of waste collection bins across Dandeli Tree Plantation initiatives at local
Slide 40: Way Forward
Way Forward
Slide 41: Expansion Plans - Optic Fibre Cable at Hyderabad
Expansion Plans - Optic Fibre Cable at Hyderabad ESTIMATED TARGET TIMELINE COST PRODUCTS ₹ 120 crores in Optical Fibre Phase 1 By July Phase I and Optic 2024 & Fibre Cables ₹ 55 crores in Phase 2 Phase II completed on 15 Feb 2024 ESTIMATED SOURCE OF REVENUE FUNDING Revenue of Mix of Debt and ₹ 275 c
Slide 42: Cost Optimization is Continuous Discipline
Cost Optimization is Continuous Discipline Wood & Pulp Volume Mix (%) Sales & Raw Material Explanation (in ₹ Crore) 3000 • Sales Performance improved due to 2500 increase in Sales Realization per tonne 2000 over the years 1500 • Improved Wood & Pulp Costs as high-cost Imports were replaced with the
Slide 43: Expansion & Rebuilding of Machines to Improve Productivity & Efficiency
Expansion & Rebuilding of Machines to Improve Productivity & Efficiency CAPEX of 2,408 Crores (2008-24) ₹3300 mn investment towards 2019 PM-6 Rebuild & jobs debottlenecking and modernization of NFL,Recy & PM • Expansion to increase 2010 capacity to 320,000 TPA PM-3 Rebuild & Jobs of Enmas Recy Boile
Slide 44: Financial Highlights
Financial Highlights
Slide 45: Q4 & FY24 Financial Highlights (Standalone)
Q4 & FY24 Financial Highlights (Standalone) Revenue (₹ in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 35.1% 20.7% 34.2% 20.1% 21.4% 11.5% -9% -46% -46% -50% 767 272 265 166 701 148 144 82 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Revenue (₹ in Crs) E
Slide 46: Standalone Income Statement – Q4FY24 & FY24
Standalone Income Statement – Q4FY24 & FY24 Particulars (₹ in Crores) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 701 767 565 2623 2810 Other Income 15 9 18 97 46 Total Revenue from Operations 716 776 -7.8% 582 22.9% 2720 2,856 -4.8% Cost of Material Consumed 340 302 284
Slide 47: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (₹ in Crores) FY21 FY22 FY23 FY24 Revenue from Operations 1368.4 1985.2 2810.3 2623.0 Other Income 10.0 30.0 45.7 96.8 Total Revenue 1378.4 2015.2 2856.0 2719.9 Cost of Materials consumed 688.7 988.5 1221.5 1250.7 Purchase of stock-in-trade 0.0 5.5 7.3
Slide 48: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement Equity & Liabilities (₹ in Crores) FY21 FY22 FY23 FY24 Assets (₹ in Crores) FY21 FY22 FY23 FY24 Equity Share Capital 13.2 13.2 13.2 13.2 Property, plant and equipment 827.2 723.1 642.6 647.6 1285.2 1494.3 2037.3 Capital Work-in-Progress 24.7 14.1 23.9 91.2 Other Eq
Slide 49: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (₹ in Crores) FY21 FY22 FY23 FY24 Cash Flow from Operating Activities Profit before Tax -17.6 244.4 799.4 624.3 Adjustment for Non-Operating Items 218.0 164.5 108.2 35.9 Operating Profit before Working Capital Changes 200.4 408.9 907.5 660.1 Changes in Work
Slide 50: Segmental Performance Trends (Standalone)
Segmental Performance Trends (Standalone) Paper & Paper Board Business Cable Business Revenue (₹ in Crs) Revenue (₹ in Crs) 2,616 195 2,434 189 1,861 1,874 1,869 118 109 116 1,287 81 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 EBIT (₹ in Crs) EBIT (₹ in Crs) 803 24 20 570 17 15 350 3
Slide 51: Q4 & FY24 Financial Highlights (Consolidated)
Q4 & FY24 Financial Highlights (Consolidated) Revenue (₹ in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 37.5% 20.2% 35.6% 19.7% 23.2% 11.6% -21% -56% -55% -59% 1,357 518 492 321 1,070 228 223 130 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Revenue (₹ i
Slide 52: Consolidated Income Statement – Q4 & FY24
Consolidated Income Statement – Q4 & FY24 Particulars (₹ in Crores) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 1070 1357 1045 4448 4921 Other Income 59 26 41 170 78 Total Revenue from Operations 1,129 1383 -18.4% 1,087 3.9% 4618 4998 -7.6% Cost of Material Consumed 522
Slide 53: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ in Crores) FY21 FY22 FY23 FY24 Revenue from Operations 2,244.5 3,377.7 4,920.8 4447.7 Other Income 24.7 58.2 77.6 170.3 Total Revenue 2,269.2 3,435.9 4,998.4 4618.0 Cost of Materials consumed 1,095.0 1,641.6 2,063.2 2144.1 Purchase of stock-in-trad
Slide 54: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Equity & Liabilities (₹ in Crores) FY21 FY22 FY23 FY24 Assets (₹ in Crores) FY21 FY22 FY23 FY24 Equity Share Capital 13.2 13.2 13.2 13.2 Property, plant and equipment 1,549.7 1,422.3 1,338.0 1573.4 Capital Work-in-Progress 32.2 21.8 53.3 205.1 Other Equity 1,375.
Slide 55: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (₹ in Crores) FY21 FY22 FY23 FY24 Cash Flow from Operating Activities Profit before Tax -26.1 420.4 1477.8 1053.3 Adjustment for Non-Operating Items -290.1 -222.6 -176.7 45.9 Operating Profit before Working Capital Changes 263.9 643.0 1654.5 1099.2 Change
Slide 56: Segmental Performance Trends (Consolidated)
Segmental Performance Trends (Consolidated) Paper & Paper Board Business Cable Business Revenue (₹ in Crs) Revenue (₹ in Crs) 4,712 208 213 4,235 3,249 118 129 2,384 2,163 109 1,861 81 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 EBIT (₹ in Crs) EBIT (₹ in Crs) 1,516 27 21 1,000 18 18
Slide 57: Thank You
Company : West Coast Paper Mills Limited Mr. Akhil Saraff Email: akhil.saraff@westcoastpaper.com Website: www.westcoastpaper.com Investor Relations Advisors : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608 nikunj.jain@linkintime.co.in +91 7045121239 amar.yard
West Coast Paper Mills — Investor Presentation (June 2024) on 6ix