Shaily Engineering Plastics Limited · NSE:SHAILY
Shaily Engineering Plastics — Q2 FY24 Earnings Presentation
54 slides from Shaily Engineering Plastics's earnings presentation, Nov 7, 2023
Slide 1: Q2FY24 Result Presentation cover letter
SEPL/SE/Nov/23-24 November 07, 2023 The General Manager, The Manager, Corporate Relations/Listing Listing Department Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block, Floor 25, P.J. Towers, Bandra – Kurla Complex, Dalal Street, Bandra (E), Mumbai
Slide 2: Shaily Engineering Plastics Ltd Investors Presentation November 2023
Shaily Engineering Plastics Ltd Investors Presentation November 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shaily Engineering Plastics Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 4: Key Performance Highlights
Key Performance Highlights
Slide 5: Key Financial Highlights – Q2 & H1 FY24 (Consolidated)
Key Financial Highlights – Q2 & H1 FY24 (Consolidated*) Revenues Gross Profit Margin EBITDA +220 bps +480 bps -2% -6% +3% +8% 161.3 157.6 336.3 314.9 35.7% 37.9% 39.5% 25.9 26.6 50.2 54.2 34.7% Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 EBITDA Margins Profit
Slide 6: Key Financial Highlights – Q2 & H1 FY24 (Standalone)
Key Financial Highlights – Q2 & H1 FY24 (Standalone) Revenues Gross Profit Margin EBITDA +200 bps +440 bps -3% -7% +2% +5% 160.0 155.7 332.0 308.5 35.2% 37.2% 38.3% 25.1 25.5 46.8 49.2 33.9% Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2FY24 H1FY23 H1FY24 EBITDA Margins Profit Aft
Slide 7: Key Business Updates for Q2 FY24
Key Business Updates for Q2 FY24 Pharma Home Furnishing (Plastics) Automotive New Applicator Project New Business (Supplies start Q2FY25) 3 New Components confirmed (Supplies start Q2FY25) Total Business Value Total Business Value Total Business Value Rs. 35 crores per annum Rs. 50 crores per annum
Slide 8: Utilization & Volume
Utilization & Volume 50.4% 47.8% Machine Utilization Across Plants (%) 45.1% 41.5% 39.9% Q2FY23 Q1FY23 Q2FY24 H1FY23 H1FY24 56% of FY23 Volumes Volume of Polymers 6,760 11,905 Processed (MT) 11,495 5,673 5,145 Q2FY23 Q1FY23 Q2FY24 H1FY23 H1FY24 On Standalone basis * Owing to additional capacity in p
Slide 9: Operational Trends
Operational Trends Machine Utilization Across Plants (%) 58.0% 59.7% 42.2% 41.5% FY21 FY22 FY23 H1FY24 Volume of Polymers Processed (MT) 19,474 20,615 14,602 11,495 FY21 FY22 FY23 H1FY24 On Standalone basis * Owing to additional capacity in place at Rania & Halol, utilization rate has come down, it
Slide 10: Revenue Analysis - Domestic Vs. Exports
Revenue Analysis - Domestic Vs. Exports FY23 H1 FY24 23.0% 25.5% 77.0% 74.5% Export Domestic On Standalone basis 9
Slide 11: Profit & Loss Statement
Profit & Loss Statement Standalone Consolidated Particulars (Rs. Cr.) Q2 FY24 Q2 FY23 YoY % H1 FY24 H1 FY23 YoY % Q2 FY24 Q2 FY23 YoY % H1 FY24 H1 FY23 YoY % Revenue 155.7 160.0 -3% 308.5 332.0 -7% 157.6 161.3 -2% 314.9 336.3 -6% Raw Material 97.8 103.7 190.5 219.5 97.8 103.7 190.5 219.5 Employee Ex
Slide 12: Balance Sheet
Balance Sheet Particulars Sep-23 Mar-23 Particulars Sep-23 Mar-23 Non Current assets Equity Property, Plant and Equipments 332.7 348.6 Equity Share Capital 9.2 9.2 Capital Work in Process 95.5 49.0 Other Equity 403.7 386.5 Intangible assets 13.6 13.8 Total Equity 412.9 395.6 Investments 20.6 15.4 No
Slide 13: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Cr.) H1 FY24 H1 FY23 Profit Before Tax 24.8 23.2 Adjustments 23.2 21.7 Operating profit before working capital changes 48.0 44.8 Changes in working capital -8.6 -12.6 Cash generated from operations 39.4 32.3 Direct taxes paid (net of refund) -3.9 -4.6 Net Cash fr
Slide 14: Delivering PROFITABLE GROWTH
Delivering PROFITABLE GROWTH Revenues EBITDA EBITDA Margin +29% +21% 599.7 89.8 91.1 17.2% 565.9 62.1 16.0% 360.6 49.2 15.2% 308.5 15.9% FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 FY24 Profit After Tax Cash PAT Margin Profile +17% +23% 8.3% 8.2% 8.0% 35.1 61.6 63.2 6.7% 30.0 6.1
Slide 15: Growth Along With Low Leverage
Growth Along With Low Leverage RoCE RoE 15.7% 16.3% 12.9% 12.8% 14.0% 12.5% 9.3% 7.9% FY21 FY22 FY23 H1 FY24* FY21 FY22 FY23 H1 FY24* Total Debt : Equity (x) Long Term Debt : Equity (x) Total Debt / EBITDA (x) 1.2 0.7 3.6 1.9 2.0 2.1 0.5 0.5 0.5 0.3 0.2 0.2 FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1 F
Slide 16: Strong Focus on Improving Our Key Metrics
Strong Focus on Improving Our Key Metrics Fixed Asset Turnover (x) OCF to EBITDA 1.7 1.7 93.0% 1.6 69.8% 72.3% 0.9 45.8% FY21 FY22 FY23 H1 FY24 FY21 FY22 FY23 H1FY24 ✓ The Fixed Asset Turnover has been inching up despite continuous capex (barring FY19) on back of improving utilization levels to cate
Slide 17: Overview
Overview
Slide 18: About the Company
About the Company Enriching Lives Through Plastics Shaily was established in 1987 with just two moulding machines. Today, its facilities have grown significantly to include more than 175 machines, and Shaily plastics can be found across the globe in products Founded in as diverse as medical devices,
Slide 19: Vision, Mission & Our Values
Vision, Mission & Our Values Vision & Mission ✓ To provide end-to-end solutions in plastics ✓ Deliver superior quality to our customers; higher profitability and value to our shareholders; and sustainability for future generations Our Values Be passionate, Deliver customer Never bypass Always follow
Slide 20: Our Core Capabilities
Our Core Capabilities NPD Manufacturing Quality Sustainability • Tool design • Precision molding • Regulatory compliance • Social compliance • Mold flow • Decoration & • Robust QA/QC processes • Renewable energy • Process design Printing • Testing protocol • Recycled / • Automation • Assembly • Cont
Slide 21: Our Journey from FY15 to FY22 has created a strong base
Our Journey from FY15 to FY22 has created a strong base Consumer Business Healthcare Business Financial Health Accelerated existing Increased utilization De-risked Business Created Financial Flexibility Consumer Business by levels of Healthcare Model and Strong Balance Sheet adding New Customers & b
Slide 22: Our Strong base of last few years makes us Future Ready
Our Strong base of last few years makes us Future Ready… 1 Accelerated existing business with Homes Furnishing major • Strengthened our relationship with Swedish Home Furnishings major • Ventured in Carbon Steel Business for the Homes Furnishing Major Deepening foray in IP related products and Healt
Slide 23: Business Segments
Business Segments Automotive & Consumer Personal Care Healthcare Steel Furniture Engineering Home Furnishings Business High Volume Molding, Drug Delivery Devices Automotive Components Decoration & Assembly Carbon Steel Furniture Toys Business Pharma Packaging Engineering Plastics 22
Slide 24: Quality Certifications
Quality Certifications IATF 16949-2016 ISO 9001 : 2015 ISO 13485 : 2016 ISO 15378 : 2015 MDSAP 23
Slide 25: Certifications
Certifications Security Certifications Social Compliances Certifications Other Certifications AEO T2 Certificate Intertek RD Recognition Letter Star Export House SA-8000 2014 Other Social Compliances Certifications I-WAY GMP 24
Slide 26: Enriching Lives … Through Sustainable Performance
Enriching Lives … Through Sustainable Performance The PLEX Council Award Top Exporter Award Top Exporter Of Engineering (1St Position) For Exports Out Components For Eleven Of Rct, Vadodara By Container Consecutive Years: Corporation Of India Ltd 2005 to 2019 At Concor Awards, 2017 Award for BPC GOL
Slide 27: Awards from Customers
Awards from Customers Top Exporter of Engineering Components. Awarded for design of the Sanofi Award for two years of supplying Shellpak Award won consistently from 2005 – AllStar Pen with 100% product quality 2019 26
Slide 28: Consumer Segment
Consumer Segment Home Furnishings Business Toys Business
Slide 29: Our capabilities in Consumer Segment
Our capabilities in Consumer Segment Our Forte in Consumer Segment Global Quality End to End Solutions Large Volume Environment Friendly Timely Execution Manufacturing High Consistency in Product development Complex Plastic Highly compliant On time delivery by managing production standards capabilit
Slide 30: Home Furnishings Business
Home Furnishings Business Proven execution with our major home furnishing client Home Furnishings Major is our largest customer Associated with the Home Furnishings major as a Long Standing Relationship plastics supplier since 2004 Over the years have Evolved as a Trusted Supplier of Supplier of Cho
Slide 31: Toys Business
Toys Business Toys Segment Scope of growth in Toy Industry About Spin Master The Global Toys market is expected to gain strong momentum in the coming decade Added Spin Master as our 1st client in Toys Business. Spin Master is a leading global, diversified, multi-platform and highly innovative childr
Slide 32: Personal Care
Personal Care
Slide 33: Our Personal Care Clients & Services
Our Personal Care Clients & Services Servicing global FMCG majors such as Unilever and P&G since early 90s Products Manufactured • Primary Packaging for cosmetics • Primary Packaging for Vicks • Razor handles for Gillette • Trigger Sprays & Pumps Disclaimer: The Brand Names and respective Logos ment
Slide 34: Healthcare Segment
Healthcare Segment Pharma Devices Pharma Packaging
Slide 35: Our capabilities in Healthcare Segment
Our capabilities in Healthcare Segment Our Forte in Healthcare Segment Drug Delivery Devices Primary Packaging Dedicated Facility Quality & Compliance - Contract In-House Research & Manufacturing Development Division - IP Related Product Development 34
Slide 36: Drug Delivery Devices
Drug Delivery Devices One of the leading Injection Molding Companies in Medical Devices field Globally Our Value Proposition Manufacturing of complex precision components and assemblies requiring stringent quality and tight tolerances Comprehensive Design Review We have the expertise in assisting cl
Slide 37: Drug Delivery Devices
Drug Delivery Devices Maxim Protean Axiom Toby Auto-Injector Tristan Auto-Injector Premium reusable / disposable pen Cost-effective disposable / Fixed-dose pen 1.0ml – 3.0ml PFS & Cartridge 1.0ml – 3.0ml PFS and cartridge based injector reusable pen injector injector based auto-injector auto-injecto
Slide 38: Drug Delivery Devices – New Order
Drug Delivery Devices – New Order First Non-European INSULIN PENS ❑ Equipped world’s first Insulin Pen that is made up of 100% plastic components ❑ Pens were designed to meet UL & FDA approvals ❑ Pens are ISO 11608 1,2&3 certified ❑ Shaily is one of the very few manufacturers of Insulin pens in the
Slide 39: Primary Packaging
Primary Packaging Our Competitive Edge Our Capabilities High end vision system Superior Protection for Active Pharmaceutical Ingredients for bottles and closures Value Addition through Expertise in Materials, Manufacturing, Quality and Regulatory Compliance Safer Design with Shaily CRCs Type III Dru
Slide 40: Our Healthcare Clients
Our Healthcare Clients Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only 39
Slide 41: Healthcare segment – Way Forward
Healthcare segment – Way Forward Increasing demand for pharmaceutical devices & packaging products Industry Growth due to rising geriatric population, growing chronic diseases, increasing number of diabetic patients, etc. Expansion of the generic market, technological advancement & Growth Drivers st
Slide 42: Automotive & Engineering
Automotive & Engineering
Slide 43: Automotive & Engineering Business
Automotive & Engineering Business At Shaily our efforts in the automotive segment is geared towards light weighting the vehicle Automotive Engineering Plastics Unique Molding Process Applications in the turbo chargers of high-end luxury Manufacturing high value-added products from ultra- Proprietary
Slide 44: Our Automotive & Engineering Plastics Clients
Our Automotive & Engineering Plastics Clients Disclaimer: The Brand Names and respective Logos mentioned are the property of their respective owners and are used here for identification purposes only 43
Slide 45: Steel Furniture
Steel Furniture Carbon Steel Furniture
Slide 46: Building New Capabilities and Diversity in Orderbook
Building New Capabilities and Diversity in Orderbook New Carbon Steel Facility at Halol Newly Added Business Segment ❑ Received confirmation for manufacture & supply of Carbon Steel products from Swedish Home Furnishings Major in Q1FY19 ❑ Signifies immense faith placed by the customer in our capabil
Slide 47: Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
Our Manufacturing Capabilities, Key Differentiators & Growth Drivers
Slide 48: State-of-the-Art Manufacturing Facilities
State-of-the-Art Manufacturing Facilities 7 Facilities with over 180 molding machines ranging from 35 tons to 1,000 tons Rania ❖ Export Oriented Unit ❖ Pharma (Dedicated ISO Class 8 clean room manufacturing facility) ❖ Others Rania Halol GUJARAT Halol (Existing) ❖ Automotive & Engineering Halol (New
Slide 49: We are focused on Sustainable Development
We are focused on Sustainable Development We believe in Business SOCIALLY AND ENVIRONMENT operations that have a RESPONSIBILITY IS OUR DNA positive impact on the Planet and People We have also been successful in being able to convert products manufactured from Our Goal is to constantly improve our v
Slide 50: Board of Directors
Board of Directors Executive Chairman Whole Time Director Managing Director Mr. Mahendra Sanghvi Ms. Tilottama Sanghvi Mr. Amit Sanghvi Executive Director Independent Director Independent Director Mr. Laxman Sanghvi Mr. Milin Mehta Dr. Shailesh Ayyangar Independent Director Independent Director Inde
Slide 51: Strong Credit Rating
Strong Credit Rating* Long and established track record in the plastic LONG TERM BANK FACILITIES injection molding business along with experienced Promoters Rs. 283 Crs.; enhanced from Rs. 243.17 Crs. Growth in Total operating income on the back of CARE A; Outlook: Stable increased volumes & higher
Slide 52: Our Risk Mitigation Strategy helps us Grow
Our Risk Mitigation Strategy helps us Grow Risk We are a B2B player and are dependent on the success of our customers products in end products as well as Global Economic Environment 1 Revenue Growth Mitigation Strategy: We have diversified our product portfolio across multiple customers, multiple SK
Slide 53: Our Way Forward is… Clear !
Our Way Forward is… Clear ! Revenue Uptick Increased Healthcare Revenue Sustained uptick in Revenue based on New business confirmations, addition of new clients and increased Expect 2-3x revenue growth from Healthcare contribution from New business segment segment on back of faster penetration withi
Slide 54: Contact
Contact Company : Investor Relations Advisors : Shaily Engineering Plastics Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L51900GJ1980PLC065554 CIN - U74140MH2010PTC204285 Mr. Sanjay Shah, Chief Strategy Officer Mr. Shogun Jain / Mr. Deven Dhruva sanjay@shaily.com shogun.jain@sgapl.net / deven.dhru
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