Pennar Industries Limited · NSE:PENIND
Pennar Industries — Q3 FY2014 Earnings Presentation
27 slides from Pennar Industries's earnings presentation, 2014
Slide 1: Pennar Industries Limited Investor Presentation Q3FY14
Pennar Industries Limited Engineering Excellence Investor Presentation Q3FY14 1
Slide 2: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Pennar Industries Limited and its subsidiary companies (“Pennar”) future
Slide 3: Agenda
Agenda Quarter Performance • Financial Performance 5–7 • New Customers and Products 8 • Business Verticals: Q3FY14 Highlights 9 – 15 • Continue the move to create an “Engineering Enterprise” 16 • Distributed Manufacturing 17 • Return on Capital Employed 18 • Share Price Performance 19 • Awards and R
Slide 4: Q3FY14 & 9MFY14 Quarter Performance
Q3FY14 & 9MFY14 Quarter Performance 4
Slide 5: Financial Performance – Consolidated
Financial Performance – Consolidated Q3 FY14 9M FY14 o Net Sales of Rs. 273 crores; 2.5% YoY and 14.7% QoQ o Gross Profit of Rs.112 crores o Net Sales of Rs. 765 crores; -5.8% YoY o Gross margin at 41%, up from 37% QoQ o Gross Profit of Rs.297 crores; Gross margin at 39% o EBITDA margin maintained a
Slide 6: Financial Performance – Standalone
Financial Performance – Standalone Q3 FY14 9M FY14 o Net Sales of Rs. 183 crores; -8.6% YoY and 8% QoQ o Net Sales of Rs. 546 crores; -11.6% YoY o Gross Profit of Rs.56 crores; Gross margin at 30% o Gross Profit of Rs.156 crores; Gross margin at 29% o EBITDA margin at 7.2% o EBITDA margin at 7% o St
Slide 7: Segment Performance
Segment Performance Net Revenues (Rs. Crores) and EBITDA margins (%) Steel Products Tubes Industrial Components 18 15.9 20.0% 120 4010.0% 9.0% 106.6 102.0 34.4 16 18.0% 100.0 35 8.0% 100 30.3 14 13.0 16.0% 7.9% 11.9 8.9% 308.0% 7.0% 17.2% 14.0% 12 6.0% 80 256.0% 12.0% 21.7 10 5.0% 12.8% 12.7% 6.6% 2
Slide 8: New Customers and New Products added in Q3FY14
New Customers and New Products added in Q3FY14 ~10% of Q3 revenue came from new products/customers Steel Products Systems and Projects Tubes Wagons: New Product for Burn 20 new Customers standards (S&P) 14 new customers Coaches: several small new products Industrial Components Pre-Engineered Buildin
Slide 9: Business Vertical – Steel Products
Business Vertical – Steel Products Q3 Quarter Highlights o The CR segment has grown consistently. o Growth in both new customers and market. This was done primarily through improving quality and achieving 95% on-time deliveries to customers. o Business for auto profiles has seen a small dip as our c
Slide 10: Business Vertical – Industrial Components
Business Vertical – Industrial Components Q3 Quarter Highlights o White Goods segments shows signs of recovery. o Customer addition and share of business improvement during Q3 will lead to 10% growth in turnover (Honda Scooters account obtained through INEL) o Hydraulics Plant will commission from C
Slide 11: Business Vertical – Tubes
Business Vertical – Tubes Q3 Quarter Highlights o The topline and EBITDA grew despite the slowdown in the automobile and power sectors. In value terms, 55% growth in Q3 as compared with FY2013 o An order book of Rs.24 crores is in the pipeline. o Volumes from CDW tubes have reached a good critical m
Slide 12: Business Vertical – Systems & Projects
Business Vertical – Systems & Projects Q3 Quarter Highlights o Stable and growing Coach business - Rail coach business with Rs.16 crores in Q3FY14 vs. Rs.5.5 Crores in Q3FY13 o Q3 and Q4 are peak seasons for railways and solar, Pennar can leverage this opportunity. Railways Solar • Order book in Q3F
Slide 13: Subsidiary – Pre-Engineered Buildings Systems
Subsidiary – Pre-Engineered Buildings Systems Q3 Quarter Highlights o Added 12 new customers during the quarter Order Inflows o Received repeat order from Ultratech cements for Rs 29 crs o Received order from Nuevosol for design, manufacturing and supply of Solar structures for Rs 18 Crs o Received
Slide 14: PEBS - Completed Projects
PEBS - Completed Projects Tata Steel Processing & Distribution Ltd., Chennai, TN Mandana Industries Ltd. Tarapur near Pune , Maharashtra Schindler, near Pune, Maharashtra • Jayabheri Orange County, Multi-storied building - G + 10, Hyderabad, AP Click here to visit our website for downloading Annual
Slide 15: Subsidiary – Pennar Enviro
Subsidiary – Pennar Enviro Q3 Quarter Highlights o Added 8 new customers during the quarter Order Inflows o Received order from JBF Petrochemicals Limited of 12 Crs o Received order from Shanth ( A Sanofi Group Company ) for Effluent Treatment Plants o Received order from Hetero Drugs for 2 MLD Desa
Slide 16: Continue the move to create an “Engineering Enterprise”
Continue the move to create an “Engineering Enterprise” Component Facility in Hydraulics Chennai Wind Energy Components Tubes Expansion International Business Warehousing Solutions Global Supply Chains, Security Industrial Racking, Material Solutions, Components, ESP, Handling & Warehouse Hydraulics
Slide 17: Distributed Manufacturing
Distributed Manufacturing Chennai Patancheru Coaches CR Components/ Hydraulics Wagons Auto Profiles Compressor Shells Building Products Sheet Piles Solar ESP 4 Locations Tarapur Isnapur Solar CR Auto Profiles Tubes Building Products Profiles ESP Fabrication Solar ……………….DRIVING DOWN OPERATIONAL COST
Slide 18: Return on Capital Employed
Return on Capital Employed 40% 35% 30% 25% 20% 15% 10% 5% 0% FY10 FY11 FY12 FY13 9MFY14 (Last 12 months) Consolidated Standalone PEBS o Consolidated Total Debt as of December 31, 2013: Rs.165 crores o Consolidated Total Equity as of December 31, 2013: Rs.390 crores *ROCE = EBITDA / Average Capital E
Slide 19: Pennar Underperformed BSE Small Cap Index by 6%
Pennar Underperformed BSE Small Cap Index by 6% Stock Movement — Jan 1 2013 to Dec 31 2013 Apr-13 Mar-13 Dec-13 Dec-13 May-13 Aug-13 Jun-13 Oct-13 Jan-13 Jan-13 Nov-13 Feb-13 Jul-13 Sep-13 Pennar Industries Sensex BSE Small Cap *Rebased to 100 Click here to visit our website for downloading Annual R
Slide 20: Awards and Recognition
Awards and Recognition Mr. P V Rao, MD of PEBS Pennar receiving the IEI Industrial Excellence Award 2013 Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 20
Slide 21: Business Structure, Segments & Leadership Team
Business Structure, Segments & Leadership Team 21
Slide 22: Pennar Group – Business Structure, Holdings
Pennar Group – Business Structure, Holdings Shareholding Pattern (Dec 31, 2013) Retail Promoters 17.5% 40.6% Corporate Bodies 11.7% DIIs 0.6% Foreign Funds 7.2% FIIs 22.3% Market Cap as of December 31, 2013 (BSE) : Rs. 2,819 million; ~121 million shares Pennar Industries Limited Steel Products; Stee
Slide 23: Business Segments and Products
Business Segments and Products Diversified Product Portfolio Across Industries Steel Products Systems and Projects Tubes o Automobiles o Railways: Coaches and Wagons o Automobiles o General Engineering o Solar: Solar Mounting Structures o Power o Infrastructure o White Goods Industrial Components Pr
Slide 24: Segment Composition
Segment Composition Transformation through organization structure, engineering capabilities and human capital ... Q3FY14 Net Revenues Pennar Enviro Steel Products o Pennar Enviro: 1% o General Engg: 9% Pre-Engineered Buildings o Automobile: 12% o Pre-Engineered Buildings: 34% o Buildings: 4% o Auto:
Slide 25: Manufacturing Set Up & Footprint
Manufacturing Set Up & Footprint Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 25
Slide 26: Leadership Team; Management
Leadership Team; Management Leadership Team Nrupender Rao Aditya N. Rao Suhas Baxi P. V. Rao Shreepad Purkar Executive Chairman Executive Vice Chairman President and CEO Executive Director President and CEO Pennar Group Pennar Group Pennar Industries PEBS Pennar Pennar Enviro Business Units Dayasaga
Slide 27: Investor Relations Contact Details
Contact Details: Pennar Industries Limited Floor: 3, DHFLVC Silicon Towers Kondapur, Hyderabad - 500 084, Andhra Pradesh Investor Relations investorrelations@pennarindia.com Annual Report FY12-13 – click here to visit our website for downloading Annual Report — TRANSFORM Engineering Excellence