Slide 1: Indag Rubber Limited FY17 Investor Presentation
INDAG RUBBER LIMITED Safety & Reliability Mile After Mile..... FY17 Investor Presentation
Slide 2: 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 3: About Retreading
About Retreading
Slide 4: Retreading
Retreading ➢ Precured rubber of high density & available in various tread designs is lined with cushion gum before applying to a buffed casing COLD PROCESS Retreading is a technology ➢ Curing is done in a pressure chamber at where the old tyres are low temperature 100°C & pressure made serviceable b
Slide 5: 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 6: Benefits of Retreading
Benefits of Retreading In retread tyre only 25% Natural 30%-50% of the price of rubber is used whereas; in new New tyre with life nearly Appropriate tread can tyre around 80% of Natural the same as New tyre last nearly the same rubber is required as new tyre 02 04 06 SAVES LOW COST - DURABLE MONEY P
Slide 7: Business Overview
Business Overview
Slide 8: Company Overview
Company Overview 01 02 03 04 05 06 8
Slide 9: 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 10: Products
Products UN – VUNCUNIZED RUBBER STRIP GUM UNIVERSAL SPRAY ➢ Capacity of 1,800MT CEMENT ➢ Bonding gum for curing ➢ Capacity of 1,800KL process ➢ Solution available in ➢ Specifically manufactured Ready to use and to provide longer shelf life Thick forms PRECURED TREAD RUBBER ENVELOPE ➢ Capacity of 20,
Slide 11: 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 12: 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. J K Jain Mr. Nirmal Chaturvedi Mrs. Manali D Bijlani Chief Fina
Slide 13: Manufacturing Facilities
Manufacturing Facilities Single State of the art manufacturing unit Located at Nalagarh Industrial Estate in Himachal Pradesh Advanced Technology in terms of machinery and equipment's Modern Retreading Cum- Training centre to impart high quality Brand – Indag, Zoma & Maxmile Use superior raw materia
Slide 14: 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 15: Key Strengths & Opportunities
Key Strengths & Opportunities
Slide 16: Our Key Strengths
Our Key Strengths STRONG DISTRIBUTION NETWORK We have a PAN India TRAINING Presence with over 25 IMPARTED depots Training imparted by Engineers who has unique qualifications of INNOVATION Retreading to achieve Highest standards of Quality while re-treading COST Innovations & Invention of Different R
Slide 17: Strong Distribution Network
Strong Distribution Network 1200+ PAN India Retreaders Presence 100-150 Dealers 25 Depots PAN India basis 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 18: Training Retreaders
Training Retreaders Training imparted by Engineers To achieve Highest standards of who have long experience of Quality while re-treading retreading under experts ✓ Retreaders also get after-sales Training Centre and support services Safety in all areas & High Marketing the Product & Standard Product
Slide 19: 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 20: Opportunities
Opportunities Increase in Commercial Vehicle Sales especially the MHCV segment Implementation of GST will narrow the pricing difference Improving roads and support between the organised and infrastructure the un-organised 01 03 02 04 Reduction in influx/dumping of Chinese Increase in Radialisation t
Slide 21: Increase in CV Sales
Increase in CV Sales CV Production Trends As Industrial Activity Picks up – More Demand for Commercial Vehicles for Movement of Goods – More 832,649 782,814 810,281 Tires worn out – Retreading done on Tires 699,035 698,298 IIP Growth Rate 2.8% 2.4% FY13 FY14 FY15 FY16 FY17 -0.1% CV Domestic Sales Tr
Slide 22: Increase in Radialisation
Increase in Radialisation Radialisation in Truck & Bus 80 77% Radialisation requires: Better Road 75 72% conditions, No overloading & Proper 70 67% Maintenance of Vehicles 65 60% 60 Better Road Conditions - Faster 55 53% vehicles, running on radials will 50 consume tyres more frequently, 45 44% narr
Slide 23: GST - A Game Changer
GST - A Game Changer Retreading was dominated by Unorganised Players – Slow Shift towards Organised • 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 implementation would Expensi
Slide 24: Financial Highlights
Financial Highlights
Slide 25: Financial Highlights
Financial Highlights (Rs. In crs) Revenue* EBITDA* 96.5 190.0 16.2 35.0 18.8 93.5 H1 FY17 H2 FY17 FY17 H1 FY17 H2 FY17 FY17 EBIT Profit After Tax 14.7 32.1 9.8 22.1 17.4 12.3 H1 FY17 H2 FY17 FY17 H1 FY17 H2 FY17 FY17 25 *incl. Other Income
Slide 26: Financial Highlights
Financial Highlights 50.0% 45.0% 47.2% 45.0% 40.0% 41.0% 39.9% 35.0% 30.0% 25.0% 21.1% 19.2% 20.0% 18.4% 19.4% 15.1% 15.0% 17.8% 16.9% 14.7% 13.5% 10.0% 11.7% 11.1% 9.1% 5.0% 0.0% Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Gross Profit % EBITDA % EBIT % PAT % 26 *incl. Other Income
Slide 27: Financial Highlights – Q4 FY17
Financial Highlights – Q4 FY17 Particulars (Rs. In Crs) Q4 FY17 Q3 FY17 Q-o-Q Total Revenue from Operations 49.57 45.01 Other Income 1.10 0.81 Total Revenue (incl. Other Income) 50.67 45.82 11% Raw Material 29.90 27.52 Gross Profit 20.77 18.30 14% Gross Profit % 40.99% 39.93% Employee Expenses 4.70
Slide 28: Financial Highlights – FY17
Financial Highlights – FY17 Particulars (Rs. In Crs) FY17 FY16 Total Revenue from Operations 183.90 252.80 Other Income 6.08 5.08 Total Revenue (incl. Other Income) 189.99 257.88 Raw Material 107.89 150.69 Gross Profit 82.10 107.19 Gross Profit % 43.21% 41.57% Employee Expenses 19.35 21.02 Other Exp
Slide 29: Balance Sheet
Balance Sheet Liabilities (Rs. crs) Mar-17 Mar-16 Assets (Rs. crs) Mar-17 Mar-16 Share Capital 5.25 5.25 Fixed Assets 30.98 31.80 Non Current Investments 61.63 53.70 Total Reserves 166.34 151.87 Long Term Loans & Advances 0.90 1.23 Shareholder's Funds 171.59 157.12 Other Non-Current assets 0.31 0.04
Slide 30: Consistent Dividend Pay-out
Consistent Dividend Pay-out Dividend Pay-Out 19% 15% 17% 19% 19% 20% 29% 12.6 12.2 10.7 9.5 8.4 8.0 4.2 2.4 2.4 2.4 2.0 1.6 1.2 0.8 FY11 FY12 FY13 FY14 FY15 FY16 FY17 EPS DPS *Adjusted EPS & DPS for the split 30
Slide 31: 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) Ms. Neha Shroff / Mr. Deven Dhruva anil@indagrubber.com neha.shroff@sgapl.net /