West Coast Paper Mills Limited · NSE:WSTCSTPAPR
West Coast Paper Mills — Investor Presentation (March 2023)
54 slides from West Coast Paper Mills's investor presentation, Mar 6, 2023
Slide 1: Covering letter to stock exchanges
ZZQ:BM:36:SHARE:07: March 06, 2023 To: To: BSE Limited National Stock Exchange of India Ltd. Corporate Services Listing Department Floor 25, P.J.Towers, Exchange Plaza Dalal Street Bandra-Kurla Complex, MUMBAI – 400 001 Bandra [East] MUMBAI-400 051 Dear Sirs, Sub: Investor Presentation. We enclose h
Slide 2: Investor Presentation March 2023
Investor Presentation March 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by West Coast Paper Mills Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 4: About West Coast Paper Mills
About West Coast Paper Mills West Coast Paper Mills Limited (WCPM) is one of the oldest and the largest producers of paper for printing, writing, and packaging in India WCPM enjoys a pedigree of standing over the past 68 years. The company's vision in constant upgradation of its process and technolo
Slide 5: Key Highlights: Pulp to Paper Excellence
Key Highlights: Pulp to Paper Excellence 1955 22+ 3,20,000 Countries MTPA Established in Countries Manufacturing capacity 4,000 70+ ISO 9001-2015 QMS ISO 14001-2015 EMS ISO 45001-2018 OH & SMS Employee Our Distribution Certifications Strength Network West Coast Paper Mills Ltd 4
Slide 6: Many Firsts to Our Credit
Many Firsts to Our Credit 1 First in Asia to install twin-wire Papriformer paper machine 2 First to introduce captive plantations in India First in India to introduce a chemical recovery boiler of 1100 TPD 3 First to use synthetic wire on paper machine in India 4 Solids Firing per day capacity First
Slide 7: APL Acquisition: Consolidation of Leadership Position
APL Acquisition: Consolidation of Leadership Position West Coast Paper Mills Andhra Paper Installed Capacity – 3,20,000 Mtpa Installed Capacity – 2,40,000 Mtpa Sales Volume – 3,03,715 Mtpa Sales Volume – 2,40,479 Mtpa Revenue – Rs. 1,985 Crores Revenue – Rs. 1,380 Crores EBITDA – Rs. 436 Crores EBIT
Slide 8: About Andhra Paper Limited
About Andhra Paper Limited Andhra Paper Limited, one of the largest integrated paper and pulp manufacturers in Andhra Pradesh & India was established in 1964 with a production capacity of 240,000 TPA of Paper and 181,500 TPA of Virgin Pulp. It is the only Paper Mill using virgin pulp in AP APL has p
Slide 9: One of the largest Optical Fibre Cable Manufacturer
One of the largest Optical Fibre Cable Manufacturer About Cable Business Product Portfolio • The company under its cable division – ‘West Coast Optilinks’, operates a State of the art 1. Optical Fibre Cables manufacturing facility in a Hi-Tech Electronics zone at Mysuru 2. FRP ROD Cables • The cable
Slide 10: Experienced Board of Directors
Experienced Board of Directors SHRI S.K. BANGUR SMT. SHASHI DEVI BANGUR SHRI VIRENDRAA BANGUR Chairman & Managing Director Director Joint Managing Director He is a well-respected industrialist and philanthropist who serves as the She is a prominent member of the renowned Bangur family and serves as
Slide 11: Experienced Board of Directors
Experienced Board of Directors SHRI SUDARSHAN SOMANI SMT. ARPITA VINAY SHRI SHIV RATAN GOENKA Director Director Director With more than 30 years of experience, he has worked in both London and With over 18 years of experience in financial services, encompassing wealth As Chairman and Managing Direct
Slide 12: Dynamic Management Team
Dynamic Management Team Paper & Paper Board Division Cable Division SHRI RAJENDRA JAIN SHRI. ASHOK KUMAR SHARMA SHRI. PRAMOD SRIVASTAV Executive Director & CFO Sr. VP - Finance & Accounts CEO, West Coast Optilinks A qualified Chartered Accountant and A qualified CA professional with ample With a bac
Slide 13: Industry Dynamics in Our Favour
Industry Dynamics in Our Favour
Slide 14: Industry Dynamics - Consolidation is Inevitable
Industry Dynamics - Consolidation is Inevitable Consolidation in the Industry is Inevitable 2 out of 3 paper mills in India have already been closed Rising literacy rates, increasing [As per IPMA] India is Fastest number of schools and Growing Paper Market universities in the country and in the Worl
Slide 15: Investment Proposition
Investment Proposition Integrated pulp mill Expect favorable paper Pan India Presence for Multiple product Strong Promoter steadily Strong with ample water and cycle to sustain Marketing offerings with a focus Balance Sheet increasing stake in the Credit Rating power profitability on higher margin c
Slide 16: Core Business Strategy
Core Business Strategy Bring strategic alignment Digital Transformation Setting up clear and coherent goals based on sound market Adopting new technologies and processes to analysis and future aspirations and aligning the organisation improve operations, enhance customer experiences, with these goal
Slide 17: What Sets Us Apart
What Sets Us Apart
Slide 18: Wesco Brand Created – Premium Paper Brand
Wesco Brand Created – Premium Paper Brand Exclusive range crafted especially for the hi-tech business Participated in Expo Finest Range of premium office paper of International standards, Tailor-made to suit all kinds of high-end office printers B2B: Copy Plus: Documate: Copy Gold: WESCO Bond: Multi
Slide 19: Product Portfolio Across Different Segments Ranging from 52-600 GSM
Product Portfolio Across Different Segments Ranging from 52-600 GSM Business Stationary Printing & Writing Security & Hi-value Grades Paper MG Varieties (Machine-Glazed) Cup Stock & Coated Duplex Board West Coast Paper Mills Ltd 18
Slide 20: One of the Largest Single Location Plant
One of the Largest Single Location Plant Economies of Scale Benefits Capacity 3,20,000 TPA Favourable plant location provides us an edge in sourcing raw-materials and ensuring adequate water supply Located in ‘Dandeli Town in Uttara Kannada district in Karnataka on a 240 acres of leasehold land’ Las
Slide 21: Self Sufficiency in all Utilities - Water, Power & Steam generation
Self Sufficiency in all Utilities - Water, Power & Steam generation Resources needed 1. Water 2. Power 3. Steam Requirement ~50000 KL/day ~50 MWh ~345 tph ▪ Round the year water ▪ Four coal fired FBC boilers & ▪ Four captive turbo availability from river Kali two chemical recovery In-house Capacitie
Slide 22: Wood Procurement Strategy
Strong Backward Integration for Key Raw Material Supply • Inhouse plantations across 2,463 acres Strong Backward linkages with farming communities/farm forestry is the of land way forward to get key raw material/wood fibre for pulp production • Improving the productivity & profitability of farmlands
Slide 23: Our Manufacturing Facilities
Our Manufacturing Facilities Installed Capacity: 2,60,000 TPA Installed Capacity: 3,20,000 TPA FIBRELINE PAPER MACHINE DUPLEX BOARD MACHINE PAPER CAPACITY UTILISATION OVER THE YEARS 95 98 101 101 91 93 93* 72 FY 18 FY 19 FY20 FY21 FY22 Q1 FY23 Q2 FY23 Q3 FY23 West Coast Paper Mills Ltd *On 23 days A
Slide 24: Images of Our Manufacturing Facility
Images of Our Manufacturing Facility West Coast Paper Mills Ltd 23
Slide 25: Strong Commitment to Quality and R&D
Strong Commitment to Quality and R&D Quality Control Research & Development Strong customer focused research 24x7 Quality Control Activity initiative, comprising a sophisticated Research center and qualified Machines equipped with advanced professionals online process and quality control systems for
Slide 26: One of the Largest Dealer Network in India
One of the Largest Dealer Network in India Distribution Presence across One of the Largest dealer network in the country Key Highlights - Distribution the country Network o Andhra Pradesh – Guntur o Bihar - Patna Network of 70+ dealers and 6 zonal offices in India o Chhattisgarh – Raipur 75% of the
Slide 27: Our Global Footprints
Our Global Footprints Export Regions ✓ Uganda ✓ Ghana ✓ Nigeria ✓ Kenya ✓ Tanzania ✓ Angola ✓ Cameroon ✓ Senegal ✓ Ethiopia ✓ Madagascar ✓ Rwanda ✓ Malawi ✓ Burundi ✓ Mozambique ✓ Congo ✓ Nepal ✓ Sri Lanka ✓ Greece ✓ Turkey ✓ Egypt ✓ Iraq ✓ Qatar West Coast Paper Mills Ltd 26
Slide 28: Testimony to Strive Excellence
Testimony to Strive Excellence National Environmental Special Commendation Awards (IPMA) Award at the Paperex-2015 1st prize in Best State Level Safe Industrial Safety Award Boiler Category (2016) (2017) Award for Rejuvenation of Water Tanks West Coast Paper Mills Ltd 27
Slide 29: Awards & Accolades
Awards & Accolades Safety Award National Safety Facilitation Ceremony “UTTHAMA SURAKSHA Trophy (2019) function held by National PURASKAR” from National Safety Council - Karnataka Safety Council Chapter West Coast Paper Mills Ltd 28
Slide 30: Environmental Sustainability
Environmental Sustainability
Slide 31: Responsible Forestry by Forest Stewardship Council
Responsible Forestry by Forest Stewardship Council Our Certifications The Forest Stewardship Council (FSC) is an international certification system that promotes environmentally appropriate, socially beneficial, and economically viable management of forests and plantations The FSC does this by setti
Slide 32: SARA- Certified for Being a 'Well Managed Group Plantation'
SARA- Certified for Being a ‘Well Managed Group Plantation’ The Society for Afforestation, Research and Allied (SARA) promoted and supported by WCPM has continuously obtained certifications for developing ‘Well Managed Group Plantations’ since 2011 Formed by eminent personalities, which includes for
Slide 33: Tree Improvement Programme
Tree Improvement Programme Research Wing Tree Improvement Programme • Research wing works pro-actively towards the • Provide genetically superior, fast growing, promotion of Technology-based plantations disease resistant and best quality planting stock with local districts, local communities and for
Slide 34: Reduction Burden on Environment
Reduction Burden on Environment Primary Clarifier - Pulp Secondary Clarifier - Pulp Diffused Aeration System Sludge loading Mist Cooling System Greenery at Effluent Treatment Plant Primary Clarifier - Paper Sludge Handling - Paper Dewatered Sludge Bioassay Analysis for Fish Survival Online Continuou
Slide 35: Ensuring Safety and Health in the Workplace
Ensuring Safety and Health in the Workplace Fire Hydrant Point Full-fledged Hospital Villagers' medical check-up Fire Hydrant Pumps near chipper The Mill has adequate fire The Mill has a well aid The Mill has full fledged Regular annual medical fighting facilities. The Disaster Management Plan Hospi
Slide 36: Contribute to the Common Good
Contribute to the Common Good Free Child Health Check-up & Treatment Camp ‘’Serving the community Bus Shelter at Gaonthan, for a better tomorrow..’’ Dandeli Distribution of Desk & Benches to Schools & Colleges Distribution of waste collection bins across Dandeli Tree Plantation initiatives at local
Slide 37: Way Forward
Way Forward
Slide 38: Expansion Plans - Optic Fibre Cable
Expansion Plans - Optic Fibre Cable ESTIMATED TARGET TIMELINE COST PRODUCTS Rs. 120 crores Optical Fibres in Phase I and Optic By July 2024 & Cables Rs. 55 crores in Phase II ESTIMATED SOURCE OF REVENUE FUNDING Revenue of Mix of Debt Rs. 275 crore and Internal Accruals. West Coast Paper Mills Ltd 37
Slide 39: Cost Optimization is Continuous Discipline
Cost Optimization is Continuous Discipline Wood & Pulp Volume Mix (%) Key RM as % of Sales Explanation 55 54 • Sales Performance improved due to 53 53 increase in Sales Realization per 53 tonne 52 -4% 55 51 • Costs per tonne reduced inspite of 51 increase in sales 82 50 50 50 • Improved Wood & Pulp
Slide 40: Expansion and Rebuilt of Machines to Improve Productivity & Efficiency
Expansion and Rebuilt of Machines to Improve Productivity & Efficiency CAPEX of 2,100 Crores (2008-19) Announced Rs. 3300 mn investment towards 2018 PM-6 Rebuild & jobs debottlenecking • Expansion to increase of NFL,Recy & PM capacity to 320,000 2010 TPA PM-3 Rebuild & Jobs of Enmas Recy Boiler • In
Slide 41: Financials Highlights
Financials Highlights
Slide 42: Q3 & 9M FY23 - Highlights (Standalone)
Q3 & 9M FY23 - Highlights (Standalone) Revenue (₹ in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 18.5% 33.7% 17.32% 33.01% 7.74% 21.4% +27% +131% +141% +178% 660 223 218 142 522 97 90 51 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Revenue (₹ in Crs) EB
Slide 43: Income Statement – Q3FY23 (Standalone)
Income Statement – Q3FY23 (Standalone) Particulars (₹ in Crores) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Revenue from Operations 660.43 521.76 723.15 2,043.61 1,340.67 Other Income 7.66 4.17 25.70 36.32 23.74 Total Revenue from Operations 668.09 525.93 27.03% 748.85 -10.78% 2,079.93 1,3
Slide 44: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (₹ in Crores) FY20 FY21 FY22 Revenue from Operations 1981.1 1368.4 1979.5 Revenue from Trading Operations 1.3 0.0 5.7 Revenue from Operations 1982.5 1368.4 1985.2 Other Income 47.6 10.0 30.0 Total Revenue 2030.0 1378.4 2015.2 Cost of Materials consumed
Slide 45: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement Equity & Liabilities (₹ in Crores) Mar’20 Mar'21 Mar’22 Assets (₹ in Crores) Mar’20 Mar'21 Mar’22 Equity Share Capital 13.2 13.2 13.2 Property, plant and equipment 905.2 827.2 723.1 Capital Work-in-Progress 55.3 24.7 14.1 Other Equity 1282.3 1285.2 1494.3 Right of
Slide 46: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (₹ in Crores) FY20 FY21 FY22 Cash Flow from Operating Activities Profit before Tax 290 -18 244 Adjustment for Non-Operating Items 195 -236 80 Operating Profit before Working Capital Changes 485 218 164 Changes in Working Capital 91 21 259 Cash Generated fro
Slide 47: Segmental Performance Trends (Standalone)
Segmental Performance Trends (Standalone) Paper & Paper Board Business Cable Business Revenue (Rs. Crs.) Revenue (Rs. Crs.) 1,861 1,874 1,869 118 116 1,651 109 1,287 81 78 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBIT (Rs. Crs.) EBIT (Rs. Crs.) 350 336 20 297 17 253 11 8 4 43 FY18 FY19 FY20
Slide 48: Q3 & 9M FY23 - Highlights (Consolidated)
Q3 & 9M FY23 - Highlights (Consolidated) Revenue (₹ in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 18.4% 37.2% 18.3% 38.0% 10.1% 25.1% +42% +188% +195% +252% 1,239 461 471 311 872 160 160 88 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Revenue (₹ in Crs
Slide 49: Income Statement – Q3FY23 (Consolidated)
Income Statement – Q3FY23 (Consolidated) Particulars (₹ in Crores) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y Revenue from Operations 1239.16 872.20 1209.97 3563.28 2310.30 Other Income 23.60 10.86 17.02 51.88 36.44 Total Revenue from Operations 1262.76 883.06 43.0% 1226.99 2.92% 3615.16 2
Slide 50: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ in Crores) FY20 FY21 FY22 Revenue from Operations 2489.3 2244.5 3368.0 Revenue from Trading Operations 3.6 0.0 9.6 Revenue from Operations 2492.9 2244.5 3377.7 Other Income 53.6 24.7 58.2 Total Revenue 2546.4 2269.2 3435.9 Cost of Materials consume
Slide 51: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Equity & Liabilities (₹ in Crores) Mar’20 Mar'21 Mar’22 Assets (₹ in Crores) Mar’20 Mar'21 Mar’22 Property, plant and equipment 1697.5 1549.7 1422.3 Equity Share Capital 13.2 13.2 13.2 Capital Work-in-Progress 56.9 32.2 21.8 Other Equity 1375.0 1375.7 1673.0 Righ
Slide 52: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (₹ in Crores) FY20 FY21 FY22 Cash Flow from Operating Activities Profit before Tax 397.02 -26.17 420.40 Adjustment for Non-Operating Items -225.07 -290.08 -222.62 Operating Profit before Working Capital Changes 622.09 263.91 643.03 Changes in Working Capi
Slide 53: Segmental Performance Trends (Consolidated)
Segmental Performance Trends (Consolidated) Paper & Paper Board Business Cable Business Revenue (Rs. Crs.) Revenue (Rs. Crs.) 3,249 129 118 109 2,384 2,163 1,861 75 81 1,633 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBIT (Rs. Crs.) EBIT (Rs. Crs.) 473 21 445 18 348 253 11 9 8 43 FY18 FY19 FY
Slide 54: Thank You
West Coast Paper Mills Limited https://www.westcoastpaper.com/ Investor Relations Advisors : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608 +91 7045121239 Thank You nikunj.jain@linkintime.co.in amar.yardi@linkintime.co.in
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