Interarch Building Solutions Ltd · NSE:INTERARCH
Interarch Building Solutions — Interarch Building Products — Q2 FY2025 Earnings Presentation
40 slides from Interarch Building Solutions's earnings presentation, Oct 29, 2024
Slide 1: Cover letter to stock exchanges
Date: 29/10/2024 Listing Compliance Department To, To, National Stock Exchange of India Ltd., BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E), Dalal Street Mumbai – 400 051 Mumbai- 400001 NSE Scrip Symbol: INTERARCH BSE Scrip Code 544232 Subject:
Slide 2: Interarch Building Products Limited, October 2024
INTERARCH BUILDING PRODUCTS LIMITED October 2024 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Interarch Building Products Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Contents
Contents 1 Performance Highlights – Q2 & H1 FY25 04 2 Company Overview 12 3 Industry Overview 16 4 Key Strengths 23 5 Growth Strategies 35 3
Slide 5: Performance Highlights Q2 & H1FY25
Performance Highlights Q2 & H1FY25 4
Slide 6: MD's Commentary
MD’s Commentary “We are pleased to report a steady business growth for the second quarter of FY25 backed by higher volume growth of 17.6% as compared to revenue growth due to softening of steel prices. Total revenue grew by 8.5% on YoY basis to INR 323 Cr. inching our EBITDA and PAT by 32% and 36% r
Slide 7: Q2FY25 Performance Highlights
Q2FY25 Performance Highlights Revenue (INR Cr.) Revenue Breakup – End User Industry (%) Industrial/Manufacturing Building +9% 323 Infrastructure Others 298 1% 3% 0% 2% 29% 25% 67% 73% Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 EBITDA (INR Cr.) & EBITDA Margins (%) PAT (INR Cr.) & PAT Margins (%) 6.4% 7.8% 5.0%
Slide 8: H1FY25 Performance Highlights
H1FY25 Performance Highlights Revenue (INR Cr.) Revenue Breakup – End User Industry (%) Industrial/Manufacturing Building +6% 627 Infrastructure Others 592 1% 2% 0% 2% 24% 30% 72% 68% H1 FY24 H1 FY25 H1 FY24 H1 FY25 EBITDA (INR Cr.) & EBITDA Margins (%) PAT (INR Cr.) & PAT Margins (%) 7.5% 8.3% 5.8%
Slide 9: Order Book Details
Order Book Details Order Wins (Rs in Crs) Major Customers – End User Industry In Q2FY25 250 Infrastructure Industrial Renewable Post Q2FY25 (Till 28th October, 2024) 214 Auto Logistics Total Order Wins 464 17% 24% Order wins from Key Customers Vinplex India Horizon Industrial Parks 12% Vallam Logist
Slide 10: Recent Developments
Recent Developments Recently Inaugurated Phase 1 of its 5th State-of-the-Art PEB Manufacturing plant (4th fully integrated unit) in Athivaram, Andhra Pradesh Phase 1 – Commissioned on September 04, 2024 • Phase 1 covers 4 acres out of the 10 acres of the plot and has been built at an investment of I
Slide 11: Profit & Loss Statement – Q2 & H1FY25
Profit & Loss Statement – Q2 & H1FY25 Particulars (INR Cr.) Q2 FY25 Q2 FY24 YoY H1 FY25 H1 FY24 YoY Revenue from Operations 323.3 297.8 8.5% 626.7 591.5 5.9% Cost of Goods Solds 190.5 189.5 381.5 373.8 Employee Cost 37.0 29.1 68.7 55.3 Other Expenses 70.6 60.1 124.2 118.1 EBITDA 25.2 19.2 31.7% 52.3
Slide 12: Balance Sheet Statement
Balance Sheet Statement Assets (INR Cr.) Sept – 24 Mar – 24 Equity & Liabilities (INR Cr.) Sept – 24 Mar – 24 Non - Current Assets 296.8 240.4 Total Equity 676.4 444.6 Property Plant & Equipment 146.3 106.4 Share Capital 16.6 14.4 Capital work-in-progress 0.1 12.7 Other Equity 659.7 430.2 Investment
Slide 13: Cash Flow Statement
Cash Flow Statement Particulars (INR Cr.) Sept – 24 Sept – 23 Profit Before Tax 54.8 46.1 Adjustments for: Non -Cash Items / Other Investment or Financial Items 1.1 3.8 Operating profit before working capital changes 55.9 49.9 Changes in working capital 40.3 22.5 Cash generated from Operations 96.3
Slide 14: Proposed Utilisation of IPO Proceeds
Proposed Utilisation of IPO Proceeds Amount to be funded Proposed Utilization in Proposed Utilization in Particulars (INR Cr.) from Net Proceeds* FY25 FY26 Financing the capital expenditure towards setting up the Project 58.5 53.6 5.0 Financing the capital expenditure towards upNegradation of the Ki
Slide 15: Company Overview
Company Overview 14
Slide 16: Company Evolution
Company Evolution 2020-2023 2021: Expansion of Kiccha 1993 2005 Facility Introduced brand TRACDEK® for Set up of Pantnagar 2008 metal roofing and cladding Manufacturing Facility Set up of Kiccha Manufacturing 2023: Revenue from operations systems Facility cross Rs 1,000 crores(1) 1983 2000 2007 2009
Slide 17: Company Overview
Company Overview One of the leading turnkey pre-engineered steel construction solutions providers in India with integrated facilities for design and engineering, manufacturing, on-site project management capabilities for the installation and erection of pre-engineered steel buildings ("PEB") 2nd 3rd
Slide 18: Business Overview
Business Overview PEB Contracts PEB Sales 1. Metal Ceilings & Roofing ✓ TRAC® – Metal suspended ceiling systems ✓ TRACDEK® – Metal roofing & cladding systems ✓ TRACDEK® Bold Rib – Permanent / metal decking (lost shuttering) over steel framing Complete PEBs on a turn-key basis with on-site project ma
Slide 19: Industry Overview
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Slide 20: Global Pre-engineered Steel Buildings Market – Overview
Global Pre-engineered Steel Buildings Market – Overview Global Pre-engineered Steel Buildings Market USD Bn 32-34 Key Growth Drivers The industrial and commercial sector, the mainstay of the global PEBs market, is 22-24 expected to drive demand for pre-engineered steel buildings 19-21 15-17 Increasi
Slide 21: Indian Construction Sector – Overview
Indian Construction Sector – Overview Breakup of the Domestic Construction Sector Growth Drivers Infrastructure Building Construction Industrial/ Manufacturing INR 74-76 Tn 5-7% 24-26% INR ~46-48 Tn 8% Increased Smart City Growing Investments Increased Spending Favourable Urbanisation Mission in Ren
Slide 22: India's Pre-engineered Steel Buildings Market – Overview
India’s Pre-engineered Steel Buildings Market – Overview Pre-engineered Steel Building Industry in India Organised Sector Remains Superior to Unorganised Sector INR ~130 Bn INR ~195 Bn INR ~330-340 Bn 6.0-7.0% CAGR: 11-14% CAGR: 10-14% 7.5-8.5% 8.0-9.0% 40- 45% FY24E Other Top 6 Players 27.0-30.0% C
Slide 23: India's Pre-engineered Steel Buildings Market – Growth Drivers
India’s Pre-engineered Steel Buildings Market – Growth Drivers Low share of pre-engineered construction in overall construction indicates high growth potential Low steel consumption in India Share of pre-engineered construction in overall construction Apparent steel use (Kg per capita) for CY23 628
Slide 24: Pre-engineered Steel Buildings – Advantages and Cost Savings
Pre-engineered Steel Buildings – Advantages and Cost Savings Advantages of Pre-engineered Steel Buildings over Traditional Construction Cost Saving ✓ Cost-saving advantages of PEB increases as the span of the structure increases till an inflection TECHNICAL DIFFICULTIES AND SHORTAGE OF LABOUR IN TRA
Slide 25: Comparison Between RCC and Pre-engineered Steel Construction
Comparison Between RCC and Pre-engineered Steel Construction Parameter Traditional RCC Construction Pre-engineered Steel Construction MAJOR COMPONENT ✓ Concrete and reinforced steel bars ✓ Steel and metal accessories RAW MATERIALS USED ✓ Cement, steel, sand, bricks, etc ✓ Steel, anchors, channels, c
Slide 26: Key Strengths
Key Strengths 25
Slide 27: Key Strengths
Key Strengths Significantly integrated manufacturing Market position and established brand operations, backed by in-house design presence in the growing pre-engineered and engineering, on-site project steel building industry in India management and sales and marketing capabilities Demonstrated track
Slide 28: Market Position and Established Brand Presence (1/2)
Market Position and Established Brand Presence in The Growing Pre-engineered Steel Building Industry in India (1/2) 2nd 3rd 6.5% 677 30+ Years Largest aggregate installed Ranked among integrated Market share among Completed execution of Presence in the PEB capacity of 161,000 MTPA PEB players in Ind
Slide 29: Market Position and Established Brand Presence (2/2)
Market Position and Established Brand Presence in The Growing Pre-engineered Steel Building Industry in India (2/2) The PEB Market in India – Segments Growing Shift towards the Organised Sector CAGR for CAGR for FY24 FY19-FY24E FY24E-FY29P Others Rs ~130 Bn Rs ~195 Bn Rs ~330-340 Bn 15-20% 6.0-7.0%
Slide 30: Significantly Integrated Manufacturing Operations
Significantly Integrated Manufacturing Operations, Backed by In-house Design and Engineering, On-site Project Management and Sales & Marketing Capabilities Manufacturing Facilities Design & Engineering Centers Installed Utilizable Pantnagar (Uttarakhand) Set up Facility capacity capacity Year Kichha
Slide 31: Demonstrated Track Record of Execution
Demonstrated Track Record of Execution Backed by On-site Project Management Capabilities Extensive Track Record of Delivering Significant / Complex Projects across India AIRPORT At Delhi AIR CONDITIONING MANUFACTURING UNIT PAINTS MANUFACTURING At Sri City Andhra Pradesh In Haryana, Punjab, Karnataka
Slide 32: Experienced & Qualified Promoters and Management Team
Experienced & Qualified Promoters and Management Team Promoters ARVIND NANDA GAUTAM SURI VIRAJ NANDA ISHAAN SURI Managing Director Whole-time Director Non-Executive Director Non-Executive Director ▪ Responsible for overall business decision- ▪ Responsible for critical technical business ▪ Bachelors’
Slide 33: Diverse Customer Base and Long-standing Relationships with Key Customers
Diverse Customer Base and Long-standing Relationships with Key Customers Revenue from Operations by End-use Sectors Repeat Orders as a % of Revenue from Operations(1) Revenue from Top 5 Customer Groups Diverse Customer Groups featuring in Repeat Orders 26% 20% 19% 41% 1,293 1% FY22 1,124 2% 1% 835 2
Slide 34: Demonstrated Financial Performance and A Robust Order Book
Demonstrated Financial Performance and A Robust Order Book Revenue from Operations (INR Cr.) & Growth Net Debt (INR Cr.) & Net Debt / EBITDA Ratio Net Debt Net Debt / EBITDA 1,293 1,124 (32) (41) (48) 835 (0.4x) (0.4x) (1.0x) FY22 FY23 FY24 FY22 FY23 FY24 EBITDA (INR Cr.) & EBITDA Margin RoCE & RoE
Slide 35: Profit & Loss Statement
Profit & Loss Statement Particulars (INR Cr.) FY24 FY23 FY22 Revenue from Operations 1,293.3 1,123.9 834.9 Cost of Goods Solds 823.8 732.5 564.8 Employee Cost 119.0 93.4 89.2 Other Expenses 237.6 191.7 148.0 EBITDA 113.0 106.4 32.9 EBITDA Margin 8.7% 9.5% 3.9% Other Income 13.0 12.5 5.9 Depreciation
Slide 36: Balance Sheet Statement
Balance Sheet Statement Assets (INR Cr.) FY24 FY23 FY22 Equity & Liabilities (INR Cr.) FY24 FY23 FY22 Non - Current Assets 240.4 211.3 190.2 Total Equity 444.6 399.3 318.3 Property Plant & Equipment 106.4 103.9 99.0 Share Capital 14.4 15.0 15.0 Capital work-in-progess 12.7 0.0 0.0 Other Equity 430.2
Slide 37: Cash Flow Statement
Cash Flow Statement Particulars (INR Cr.) FY24 FY23 FY22 Profit Before Tax 115.9 109.0 22.60 Adjustments for: Non -Cash Items / Other Investment or Financial Items 1.0 0.5 17.6 Operating profit before working capital changes 116.9 109.5 40.20 Changes in working capital -5.0 -58.4 -6.0 Cash generated
Slide 38: Growth Strategies
Growth Strategies 37
Slide 39: Growth Strategies
Growth Strategies Continue to invest in our technology Capitalize on industry tailwinds, Expanding geographical footprint to infrastructure to enhance in-house including through proposed expansion Expand customer base and increase cater to strategic markets in India and design and engineering and an
Slide 40: Thank You
Thank You Interarch Building Products Ltd. CIN – L45201DL1983PLC017029 Mr. Pushpendra Kumar Bansal/ Mr. Anil Kumar Chandani Email ID: pushpendra.bansal@interarchbuildings.com / anil.chandani@interarchbuildings.com www.interarchbuildings.com Investor Relations Advisors : http://www.sgapl.net/images/s
Interarch Building Products — Q2 FY2025 Earnings Presentation on 6ix