Venus Pipes & Tubes Ltd. · NSE:VENUSPIPES
Venus Pipes & Tubes — Q2 FY25 Earnings Presentation
38 slides from Venus Pipes & Tubes's earnings presentation, Nov 13, 2024
Slide 1: Exchange filing cover letter
Date: November 13,2024 To, Listing Department Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbol: VENUSPIPES Scrip C
Slide 2: Venus Pipes & Tubes Limited Investor Presentation November 2024
VENUS PIPES & TUBES LIMITED Investor Presentation November 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Venus Pipes & Tubes Limited
Venus Pipes & Tubes Limited Vision Mission Core Values Making ourselves as first reference and preference To provide quality and flawless service for Working with the highest ethical standards in in stainless steel pipes and tubes manufacturer dealing with customer / supplier and distributors all as
Slide 5: Key Highlights
Committed on being a leading manufacturer and provider of high-quality Stainless-steel pipes and tubes for demanding and challenging applications Key Operational Highlights Robust Quarterly Performance ✓ Your company reported robust revenue growth of 19.6%, standing Q2FY25 at Rs. 228.9 crores with E
Slide 6: Domestic Market Share Gain
Domestic market share gain in both segments driven by capacity expansion, wider geographical reach & strategic investment in key talent Domestic Market Share Gain Seamless Pipes Market Size (MTPA)* 1.6% 4.4% 3.2% 4.6% 8.0% • Volumes for Seamless pipes grew by ~8x over years resulting in market share
Slide 7: Geographical Expansion
Geographical Expansion Exports in More than 25+ Countries Contribution from Export Revenue (In Crs) 33.0% 12.3% 137 10.5% 99 5.4% 4.8% 3.4% 40 30 15 6 FY20 FY21 FY22 FY23 FY24 H1FY25 ~22x Growth in Exports Increase in Capacity Value Added Products Strong Dealership Network Geographical Expansion 6
Slide 8: Revenue Split across Segment – Q2 & H1FY25
Revenue Split across Segment – Q2 & H1FY25 Seamless (in ₹ Cr) Welded (in ₹ Cr) Others (in ₹ Cr) Total (in ₹ Cr) +21% +13% +200% +26% 266.7 156.5 38.0 469.1 138.3 219.9 370.9 +296% +21% -2% +20% 21.8 130.9 77.5 76.3 229.0 108.3 191.3 12.7 5.5 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2
Slide 9: Revenue Split across Geographies – Q2 & H1FY25
Revenue Split across Geographies – Q2 & H1FY25 Domestic (in ₹ Cr) Exports (in ₹ Cr) Total (in ₹ Cr) +277% -1% +26% 334.7 332.6 136.5 469.1 ✓ Domestic sales were affected due to the spill over of 371.0 -6% +165% +20% orders to next quarters, 75.6 primarily due to heavy 162.8 153.4 228.9 191.4 rainfal
Slide 10: Key Financial Highlights – Q2 & H1FY25
Key Financial Highlights – Q2 & H1FY25 Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) +26% +42% +36% 469.1 88.9 51.2 371.0 62.4 37.7 +20% +18% +17% 228.9 40.9 23.7 191.4 34.8 20.3 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Gross Profit Margin EBITDA Margin
Slide 11: Profit & Loss Account
Profit & Loss Account Profit and Loss (in ₹ Cr) Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Revenue from Operations 228.9 191.4 19.6% 469.1 371.0 26.4% Cost of Goods Sold 151.3 137.0 312.2 275.5 Gross Profit 77.6 54.4 42.6% 156.9 95.5 64.3% Gross Profit Margins (%) 33.9% 28.4% 550 bps 33.4% 25.7% 770 bps Em
Slide 12: Balance Sheet
Balance Sheet Assets (in ₹ Cr) Sep-24 Mar-24 Equity & Liabilities (in ₹ Cr) Sep-24 Mar-24 Non - Current Assets 335.2 302.2 Total Equity 483.2 406.1 Property Plant & Equipment 300.4 281.0 Share Capital 20.4 20.3 CWIP 14.6 12.1 Reserves & Surplus 462.8 385.8 Intangible assets 0.8 0.9 Non-Current Liabi
Slide 13: Cashflow Statement
Cashflow Statement Particulars (in ₹ Cr) H1FY25 H1FY24 Net Profit Before Tax 68.7 50.7 Adjustments for: Non - Cash Items / Other Investment or Financial Items 21.6 11.6 Operating profit before working capital changes 90.3 62.3 Changes in working capital -52.5 -43.9 Cash generated from Operations 37.
Slide 14: Management Commentary
Management Commentary Commenting on the Q2 & H1FY25 performance of the company Mr. Arun Kothari, Managing Director for Venus Pipes & Tubes Limited Said, "Our performance in H1FY25 has been robust, marked by strong revenue growth of 26.4% year-on-year to Rs. 469.1 crore. EBITDA reached Rs. 88.9 crore
Slide 15: Historical Financial Highlights
HISTORICAL FINANCIAL HIGHLIGHTS
Slide 16: Key Historical Financials
Key Historical Financials Revenue (in ₹ Cr) EBITDA (in ₹ Cr) PAT (in ₹ Cr) 802 146 86 +46% 552 +88% +114% 387 69 44 309 49 32 178 35 24 12 4 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Gross Profit Margin EBITDA Margin PAT Margin 28.3% 18.2% 10.7% 7.6% 8.2% 8.0% 18.6%
Slide 17: Historical Profit & Loss Account
Historical Profit & Loss Account Profit and Loss (in ₹ Cr) FY24 FY23 FY22 FY21 FY20 CAGR Revenue from Operations 802.2 552.4 386.9 309.3 177.8 45.7% Cost of Goods Sold 575.3 444.6 315.0 261.5 157.0 Gross Profit 226.9 107.8 71.9 47.9 20.8 81.7% Gross Profit Margins (%) 28.3% 19.5% 18.6% 15.5% 11.7% 1
Slide 18: Historical Balance Sheet
Historical Balance Sheet Assets (in ₹ Cr) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Equity & Liabilities (in ₹ Cr) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Non - Current Assets 302.2 206.6 30.4 20.9 17.5 Total Equity 406.1 322.2 128.5 39.9 16.3 Share Capital 20.3 20.3 15.2 8.7 8.7 Property Plant & Equipments 281
Slide 19: Historical Abridged Cash Flow Statement
Historical Abridged Cash Flow Statement Particulars (in ₹ Cr) FY24 FY23 FY22 FY21 FY20 Net Profit Before Tax 115.6 59.7 42.9 31.0 6.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 29.8 7.1 5.6 5.1 4.1 Operating profit before working capital changes 145.4 66.8 48.5 36.1 10.6
Slide 20: Key Return Ratios
Key Return Ratios ROE Debt / Equity Ratio ROCE 25% 0.5 35% 31% 31% 21% 21% 0.4 0.3 FY22 FY23* FY24 FY22 FY23 FY24 FY22 FY23^ FY24 ROE = PAT / Shareholder’s Equity D/E = Total Debt / Shareholder’s Equity *Excluding Rs. 107.9 crores raised via IPO for Capacity expansions 19 ROCE = EBIT / Tangible Net
Slide 21: Capex Update
Capex Update
Slide 22: Capex Update: Foraying into Fittings Solutions
Capex Update 1 : Foraying into Fittings Solutions Expanding offerings to include comprehensive range of fittings solutions Building on our reputation and execution track record, we are diversifying our product portfolio to encompass a wide selection of fittings , leveraging our expertise to provide
Slide 23: Fitting Project – Key Highlights
Fitting Project – Key Highlights 1 2 Product Range Material Expertise Wide range of fittings such as We will work with various elbows, tees, reducers, joints, metals to ensure flanges etc. designed to meet the compatibility with the specific requirements of different substances being transported ind
Slide 24: Capex Update: Value added Welded Tubes
Capex Update 2 : Value added Welded Tubes Description Details Impact Introducing a specialised product line of stainless and titanium welded tubes Value Added Product Line Capacity Expansion aimed at enhancing our competitive edge and profitability These specialized tubes represent critical innovati
Slide 25: Financial Contours
Financial Contours Phase 1 Phase 2 Funding Fittings, Seamless & Project Details Fittings & Welded Tubes Welded – Pipes / Tubes Project Cost Rs 115 Crores Rs 60 Crores ~40% In form of warrants to be issued to Promoters & others Margins (%) High teens High teens Similar to current asset Similar to cur
Slide 26: Company Overview
Company Overview
Slide 27: Product Portfolio & Applications
Product Portfolio & Applications Products manufactured are as per the International Standards to cater both Domestic & International markets Stainless Steel High Precision and Stainless Steel Hydraulic and Stainless Steel Seamless Pipes Stainless Steel Welded Pipes Stainless Steel Box Pipes Heat Exc
Slide 28: Diversified End Use
Multiple End User Industry Diversified End Use Chemical Engineering Fertilizers Pharmaceutical Power Food Processing Paper Oil & Gas Aerospace 27
Slide 29: State of the Art Infrastructure
State of the Art Infrastructure… Strategically located Manufacturing facility at Dhaneti (Kutch) within proximity of Kandla & Mudra ports for enabling imports and exports Facility on a land measuring 2,02,545 Sq. Mt. 28
Slide 30: Stringent Quality Inspection & Testing
…with Stringent Quality Inspection & Testing Rigorous testing system for our products to Ensure Finest Quality is delivered for our products Tensile Test Hydro-static Test Quality Tests Hardness Test Eddy Current Test Non-Destructive Tests Destructive Tests IGC Test Air under Water Test Reverse-bend
Slide 31: Marquee Clientele
Marquee Clientele » CGC e Q - : F ION EXCHANGE L NAYARA Reliance riven ° save fo ENERGY O) moves = Adani afer Cipla Ni Navin Fluorine International Limiced et aan ——<——$— ISGEC Swe ee ExGINEERING Cro, MADRAS FERTINIZERS: TIMITED PAN a TATA TATA PROJECTS BP. , ENGINEERS: ) INDIA LIMITED: Fk Navraine
Slide 32: Awards & Certifications
Awards & Certifications Calendar Years Certifications & Accreditations Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 9001: 2015 & ISO 2016 14001:2015 requirements 2017 Our Company has been verified and recognized as
Slide 33: Experienced Board of Directors
Experienced Board of Directors Arun Kothari Jayantiram M Choudhary Megharam S Choudhary Dhruv M Patel Chairman & Managing Whole Time Director Whole Time Director Whole Time Director Director Associated with the Company since 2021 as Associated with the Company since its Associated with our Company s
Slide 34: Strong Management Team
Strong Management Team Arun Kothari Jayantiram M Choudhary Megharam S Choudhary Dhruv M Patel Chairman & Managing Whole Time Director Whole Time Director Whole Time Director Director Associated with the Company since Associated with the Company since Associated with our Company Associated with the C
Slide 35: Strategies to Support Growth
STRATEGIES TO SUPPORT GROWTH
Slide 36: Capacity Expansion & Backward Integration
Capacity Expansion & Backward Integration Capacity Expansion for Finished Products (MTPA) Completed Capacity Expansion 3.2x Previous Current 38,400 Particulars ~5x Capacity Expansion Size (mm) Capacity Size (mm) Capacity 24,000 Seamless 6 – 114.3 3,600 MTPA 6 – 219.3 14,400 MTPA Welded 6 – 219.3 8,4
Slide 37: Key Takeaways
Key Takeaways Capacity Expansion Geographical Expansion Brand Value Expanding our existing manufacturing capacity for welded We intend to leverage our existing relationships We intend to make consistent efforts to pipes/tubes (including titanium grade) and seamless to further deepen our presence in
Slide 38: Thank You
Thank You Venus Pipes & Tubes Limited CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna ( Chief Financial Officer ) cs@venuspipes.com Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Mr. Ayush Haria sagar.shroff@sgapl.net / ayush.haria@sgapl.net +91 98205 19303 / +91