Indag Rubber Limited · BSE:INDAG
Indag Rubber — Q3 FY2020 Earnings Presentation
33 slides from Indag Rubber's earnings presentation, Jan 24, 2020
Slide 1: Indag Rubber Limited - Letter to Bombay Stock Exchange
indag Rubber Limited Regd. Office: Khemka House, 11, Community Centre, Saket, New Delhi - 110017, India Phone :26963172-73,26961211,26863310,41664818,41664043, Fax: 011-26856350 E-mail: info@indagrubber.com, Website: www.indagrubber.com. CIN-L74899DL1978PLC009038 Works: Village Jhiriwala, Tehsil, Na
Slide 2: Investor Presentation – Q3 & 9M FY20
INDAG RUBBER LIMITED Safety & Reliability Mile After Mile..... Investor Presentation – Q3 & 9M FY20 January 2020
Slide 3: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Indag Rubber 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 securiti
Slide 4: About Retreading
INDIA'S MOST TRUSTED RETREAD About Retreading
Slide 5: Retreading
Retreading Retreading is a technology where the old tyres are made serviceable by removing worn out and damaged treads and replacing it with new treads COLD PROCESS HOT PROCESS • Precured rubber of high density & available in • Uncured rubber is added to a buffed casing & various tread designs is li
Slide 6: Retreading Process
Retreading Process Final Inspection Enveloping & Rim Mounting & Painting Building Curing by Tread Rubber Buffing Chamber Initial Inspection Cementing and Filling Repairs & Skiving Collection of Casings 5
Slide 7: Benefits of Retreading
Benefits of Retreading Appropriate tread can last nearly the same as new tyre Requires ~7 gallons of crude Only required on the part Durable Environment oil to produce a retread as of the retreading plant (no Friendly opposed to 22 gallons of oil to expensive moulds) manufacture a new tyre Low Inves
Slide 8: Business Overview
INDIA'S MOST TRUSTED RETREAD Business Overview
Slide 9: Company Overview
Company Overview India’s Most Trusted Tread Manufacturing Company Pioneered Cold Retreading technology in India Presence in All types of Commercial Segments Best Quality with Reasonable Pricing “Lowest Cost Per Kilometre” Distributing through 25 Depots across Country 8
Slide 10: History
History ▪ 1978- Incoporated as JV between Khemka Group & M/s Bandag Inc, (USA) ▪ Increased capacity at Nalagarh plant from 6000 MT to 13800 MT ▪ 1979- Set up plant at Bhiwadi (Rajasthan) ▪ Foray into Foreign market with ▪ Expanded Capacity from ▪ 1984- Listed on BSE launch of “Zoma” Brand 13,800 MT
Slide 11: Products
Products PRECURED UN – VUNCUNIZED UNIVERSAL ENVELOPE TREAD RUBBER RUBBER SPRAY CEMENT STRIP GUM ▪ Capacity of 20,000 ▪ Capacity of ▪ Capacity of ▪ Various allied MT 1,800MT 1,800 KL products and spare tools ▪ Radial and Bias ▪ Bonding gum for ▪ Solution used in Range curing process available in retr
Slide 12: Focused Management
Focused Management Mr. Nand Khemka Mr. K K Kapur Chairman & Managing Director CEO & Whole Time Director • M.S. in Foreign Trade & MBA in • With the company since 2001, served as the Production Management from the CMD of GAIL & MD of Enron India (NG) until Columbia University, New York, U.S.A. 1998 •
Slide 13: Focused Management
Focused Management Ms. Bindu Saxena Mr. P R Khanna Mr. R Parameswar Mr. Harjiv Singh Non Executive Director Non Executive Director Non Executive Director Non Executive Director (Independent) (Independent) (Independent) (Independent) Mr. Vijay Shrinivas Mr. J K Jain Mrs. Manali D Bijlani Chief Commer
Slide 14: Manufacturing Facilities
Manufacturing Facilities State of the art manufacturing unit Located at Nalagarh Industrial Estate in Himachal Pradesh Advanced Technology in terms of machinery and equipment Modern Retreading Cum- Training centre to impart high quality of training Brand – Indag & Zoma Use superior raw material and
Slide 15: Flow of Business
Flow of Business Fleet Owners Run Treads get Worn the Vehicles after certain Usage Retread the same Old Buy new Tire Tire Manufactures & Supplies the Best Quality with Reasonable Pricing Retreading Products to Retreaders If Cost of Savings Cost of Retreaded New Tyre is 50-70% Tyre Rs. 30-50 14 Rs. 1
Slide 16: Key Strengths & Opportunities
Key Strengths & Opportunities
Slide 17: Our Key Strengths
Our Key Strengths STRONG DISTRIBUTION We have a PAN India Presence with over 25 NETWORK depots Training imparted by Engineers who TRAINING has unique qualifications of IMPARTED Retreading to achieve Highest standards of Quality while re-treading INNOVATION Innovations & Invention Cost Efficiencies h
Slide 18: Strong Distribution Network PAN India
Strong Distribution Network PAN India 1500+ Retreaders Presence 200+ Dealers 25 Depots PAN India basis 50+ Sales Team 17 Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness.
Slide 19: Training Retreaders
Training Retreaders Training imparted by To achieve Highest Engineers who have long standards of Quality while experience of retreading re-treading under experts Training Centre Marketing the Product Safety in all areas & High & Differentiating from Standard Products & Others Service Delivery Retrea
Slide 20: Capacity Expanded
Capacity Expanded Added Capacity in order to be Addition Existing ahead of the curve 20,000 6,200 13,800 4,850 8,950 6,550 2,400 13,800 3,050 8,950 3,500 2,000 1,500 6,550 3,500 2,000 1983-84 1989-90 2005-06 2006-07 2009-10 2015-16 • Capacity expansion of 6,200 MTPA is on stream from Q1 FY17 • Capex
Slide 21: Opportunities
Opportunities Increase in Commercial Vehicle Implementation of GST has Sales especially the MHCV segment narrowed the pricing difference between the Improving roads and support organised and the un- infrastructure organised 01 03 02 04 Reduction in influx/dumping of Chinese Increase in Radialisation
Slide 22: Increase in CV Sales
Increase in CV Sales CV Production Trends 11,12,176 As Industrial Activity Picks up – More Demand for 8,95,448 Commercial Vehicles for Movement of Goods – More 8,32,649 7,86,692 8,10,253 Tires worn out – Retreading done on Tires 6,99,035 6,98,298 IIP Growth Rate 4.6% 4.3% 3.3% 4.0% 2.8% FY13 FY14 FY
Slide 23: Increase in Radialisation
Increase in Radialisation Radialisation in Truck & Bus 70 62% 58% 60 53% 46% 48% 50 44% 40 33% 30 26% 22% 17% 19% 20 11% 10 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E Source: SIAM and Industry Reports Better Road Conditions No Overloading & Proper Radialisation Requires Fas
Slide 24: GST - A Game Changer
GST - A Game Changer Retreading was dominated by Unorganised Players There has been a Slow Shift towards Organised Players • Difference in Pricing between Organised and • Quality Precured Tread Unorganised is mainly due – Longer Life of Tire to taxes • As Radial Tires are Quality Pricing • GST imple
Slide 25: Financial Highlights
INDIA'S MOST TRUSTED RETREAD Financial Highlights
Slide 26: CEO’s Message
CEO’s Message Commenting on the Result, Mr. K. K. Kapur CEO, Indag Rubber Limited said, “Our Company has grown by 16% to a Revenue of Rs. 53 crores with EBITDA and PAT of Rs. 7 crores and Rs. 4 crores respectively during the last quarter despite challenging business environment. We have received STU
Slide 27: Financial Highlights – Q3 FY20
Financial Highlights – Q3 FY20 Rs. Crs. Revenue* EBITDA* Profit after Tax +16% +61% +84% 52.8 6.9 4.1 45.3 4.3 2.2 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 EBITDA Margin* (%) PAT Margin (%) +39% +58% 13.2% 7.8% 9.5% 4.9% Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 *incl. Other Income 26 On Consolidated B
Slide 28: Financial Highlights – 9M FY20
Financial Highlights – 9M FY20 Rs. Crs. Revenue* EBITDA* Profit after Tax +18% +22% +30% 157.6 19.3 11.6 133.2 15.8 8.9 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 EBITDA Margin* (%) PAT Margin (%) +3% +10% 11.9% 12.3% 7.3% 6.7% 9M FY19 9M FY20 9M FY19 9M FY20 *incl. Other Income 27 On Consolida
Slide 29: Financial Highlights – Q3 & 9M FY20
Financial Highlights – Q3 & 9M FY20 Particulars (Rs. In Crs.) Q3 FY20 Q3 FY19 Y-o-Y 9M FY20 9M FY19 Y-o-Y Total Revenue from Operations 52.2 44.1 18% 154.4 129.8 19% Other Income 0.6 1.2 3.2 3.4 Total Revenue (incl. Other Income) 52.8 45.3 16% 157.6 133.2 18% Raw Material 33.0 29.9 99.8 85.8 Gross P
Slide 30: Balance Sheet
Balance Sheet Liabilities (Rs. In Crs.) Sep - 19 Mar-19 Assets (Rs. In Crs.) Sep-19 Mar-19 Equity Non Current assets Share Capital 5.3 5.3 Property, Plant and Equipments 42.2 42.9 Other Equity 187.7 185.6 Capital Work-In-Progress 3.8 0.9 Equity attributable to the shareholders Goodwill 0.4 0.4 193.0
Slide 31: Consolidated Cashflow Statement
Consolidated Cashflow Statement Particulars (Rs. In Crs.) Sep-19 Sep-18 Mar-19 Net Profit Before Tax 9.3 8.7 14.1 Adjustments for: Non Cash / Other Items 0.7 0.7 0.9 Operating profit before working capital changes 10.0 9.4 15.1 Changes in working capital -1.8 -7.4 -10.6 Cash generated from operation
Slide 32: Consistent Dividend Pay-out
Consistent Dividend Pay-out Dividend 15% 17% 19% 19% 20% 29% 40% 59% 19% Pay-Out 12.6 12.2 10.7 9.5 8.4 8.0 6.0 4.2 4.1 2.4 2.4 2.4 2.4 2.4 2.0 1.6 1.2 0.8 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 EPS DPS The Board has approved Interim Dividend for the Financial Year 2019-2020 of Rs. 0.90/- per
Slide 33: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : Indag Rubber Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L74899DL1978PLC009038 CIN: U74140MH2010PTC204285 Mr. Anil Bhardwaj, G.M. (Finance) Mr. Deven Dhruva / Ms. Khushbu Shah anil@indagrubber.com deven.dhruva@sgapl.net