Pennar Industries Limited · NSE:PENIND
Pennar Industries — Q4 FY2014 Earnings Presentation
25 slides from Pennar Industries's earnings presentation, 2014
Slide 1: Pennar Industries Limited Investor Presentation Q4FY14
Pennar Industries Limited Engineering Excellence Investor Presentation Q4FY14 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: Q4FY14 Highlights 9 – 15 • Continue the move to create an “Engineering Enterprise” 16 • Distributed Manufacturing 17 • Return on Capital Employed 18 • Share Price Performance 19 Pennar’s Busin
Slide 4: Q4 & FY14 Performance
) PENNAR INDUSTRIES LIMITED Q4 & FY14 Performance
Slide 5: Financial Performance – Consolidated
Financial Performance – Consolidated Q4 FY14 FY14 o Net Sales of Rs. 308 crores; 1.0% YoY and 12.6% QoQ o Net Sales of Rs. 1074 crores; -3.9% YoY o Gross Profit of Rs.83 crores; Gross margin at 27% o Gross Profit of Rs.382 crores; Gross margin at 35.6% o EBITDA margin maintained at 9.8% YoY o EBITDA
Slide 6: Financial Performance – Standalone
Financial Performance – Standalone Q4 FY14 FY14 o Net Sales of Rs. 190 crores; -17.7% YoY and 3.2% QoQ o Net Sales of Rs. 737 crores; -13.1% YoY o Gross Profit of Rs.56 crores; Gross margin at 29.7% o Gross Profit of Rs.214 crores; Gross margin at 29% o EBITDA margin at 6.8% o EBITDA margin at 7.1%
Slide 7: Segment Performance
Segment Performance Net Revenues (Rs. Crores) and EBITDA margins (%) 160 Steel Products 7.0% Tubes 25 Industrial Components 16.0% 133.7 40 7.0% 19.5 14.0% 140 6.0% 34.5 14.6% 5.9% 5.0% 34.5 20 35 6.0% 12.0% 120 6.0% 106.8 12.7% 100.0 5.0% 30 28.5 6.0% 14.3 100 5.3% 15 5.0% 13.0 10.0% 25 4.0% 4.0% 8.
Slide 8: New Customers and New Products added in Q4FY14
New Customers and New Products added in Q4FY14 ~10% of Q4 revenue came from new products/customers Steel Products Systems and Projects Tubes New customers in Buildings – 4, 10 new customers Infrastructure, - 1, Auto - 3 and ESP - 1 No new Customer and products in this division for the quarter Indust
Slide 9: Business Vertical – Steel Products
Business Vertical – Steel Products Q4 Quarter Highlights o Sales for Q4FY14 at Rs. 107 crores and FY14 at Rs.428 crores o Buildings segment - orders worth Rs 1 crore bagged for supply of decking sheet for Diamond Engineering o Repeat Orders received from L&T, BGR and Lloyds for supply of Roofing and
Slide 10: Business Vertical – Industrial Components
Business Vertical – Industrial Components Q4 Quarter Highlights o Sales for Q4FY14 at Rs.14 crores and FY14 at Rs.58 crores o White Goods segments shows signs of improvement over Q3 o Automotive business with existing customers showing signs of growth o Repeat orders from Wabcofor, INEL for Honda Pr
Slide 11: Business Vertical – Tubes
Business Vertical – Tubes Q4 Quarter Highlights o Sales for Q4FY14 at Rs.35 crores and FY14 at Rs.132 crores o Posted robust revenues in Q4FY14 & FY14, led by a 30% volume and value growth o Currently at close to 100 customers including: Tata Motors, Thermax, Forbes Marshall, VECV, LMW o Plant utili
Slide 12: Business Vertical – Systems & Projects
Business Vertical – Systems & Projects Q4 Quarter Highlights o Sales for Q4FY14 at Rs.34 crores and FY14 at Rs.120 crores o Growing Coach business – Rail coach business with Rs.22 crores in Q4FY14 vs. Rs.13 crores in Q4FY13 and FY14 at Rs.75 crores Railways Solar • Successfully commissioned the 2.5
Slide 13: Subsidiary – Pre-Engineered Buildings Systems
Subsidiary – Pre-Engineered Buildings Systems Q4 Quarter Highlights o Added 15 new customers during the quarter, existing customer base at ~450. o Engineering services added during the quarter o 60% revenues from new products/customers Order Inflows o Received repeat order from Reliance, Schindler,
Slide 14: PEBS - Completed Projects
PEBS - Completed Projects Click here to visit our website for downloading Annual Report FY 2012 – 13 — TRANSFORM 14
Slide 15: Subsidiary – Pennar Enviro
Subsidiary – Pennar Enviro Q4 Quarter Highlights o Added 4 new customers in the quarter – Kohinoor Group, NSL Group, Radico Distilleries and JSW energy o Total customers: 18 Water Projects and 200+ Chemicals and O&M Order Inflows o Received order from Kohinoor Pulp & Paper – 30 MLD ETP, NSL Sugar –
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 FY14 Consolidated Standalone PEBS o Consolidated Total Debt as of March 31, 2014: Rs.150 crores o Consolidated Total Equity as of March 31, 2014: Rs.413 crores *ROCE = EBITDA / Average Capital Employed Click here to vis
Slide 19: Pennar Underperformed BSE Small Cap Index by 21%
Pennar Underperformed BSE Small Cap Index by 21% Stock Movement — Apr 1 2013 to Mar 31 2014 Apr-13 Apr-13 May-13 Dec-13 Jun-13 Oct-13 Aug-13 Nov-13 Jan-14 Mar-14 Mar-14 Jul-13 Sep-13 Feb-14 Pennar Industries Sensex BSE Small Cap *Rebased to 100 Click here to visit our website for downloading Annual
Slide 20: Business Structure, Segments & Leadership Team
Business Structure, Segments & Leadership Team 20
Slide 21: Pennar Group – Business Structure, Holdings
Pennar Group – Business Structure, Holdings Shareholding Pattern (Mar 31, 2014) Retail Promoters Corporate 17.3% 40.6% Bodies 11.9% DIIs 0.6% Foreign Funds 7.2% FIIs 22.3% Market Cap as of March 31, 2014 (BSE) : Rs.2,921 million Pennar Industries Limited Steel Products; Tubes; Industrial Pre-enginee
Slide 22: 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 23: Segment Composition
Segment Composition Transformation through organization structure, engineering capabilities and human capital ... Q4FY14 Net Revenues Pennar Enviro Steel Products o Pennar Enviro: 3% 3% o General Engg: 8% Pre-Engineered Buildings o Automobile: 9% 33% o Pre-Engineered Buildings: 38% o Buildings: 5% 3
Slide 24: Leadership Team; Management
Leadership Team; Management Leadership Team Nrupender Rao Aditya N. Rao Suhas Baxi P. V. Rao Shreepad Purkar Executive Chairman Vice Chairman & MD President and CEO Executive Director President and CEO Pennar Group Pennar Group Pennar Industries PEBS Pennar Pennar Enviro Business Units Dayasagar Rao
Slide 25: 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