Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q1 FY2020 Earnings Presentation
38 slides from Apollo Pipes's earnings presentation, Aug 12, 2019
Slide 1: Tubes for Every Reason - BSE filing intimation
® Tubes for Every Reason August 12, 2019 ELECTRONIC FILING THROUGH BSE LISTING CENTER To Department of Corporate Services/Listing Department BSE Limited P J Towers, Dalal Street, Mumbai - 400001 (SCRIP Code: 531761) Sub: Intimation under Regulation 30 of Securities and Exchange Board of India (Listi
Slide 2: Q1FY20 Result Presentation
APOLLO PIPES LTD. Q1FY20 Result Presentation August 12, 2019
Slide 3: Safe Harbour
2 Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend",
Slide 4: Table of Content
3 Table of Content Q1 FY20 Highlights 1 Company Overview 2 Strategic Growth Pillars 3 Financial Highlights 4 Key Focus Areas 5 Annexure 6
Slide 5: Operational & Financial Highlights Q1 FY20
4 Operational & Financial Highlights Q1 FY20
Slide 6: Q1 FY20 at a glance – Steady start to fiscal year 2020
5 Q1 FY20 at a glance – Steady start to fiscal year 2020 Volume EBITDA PAT Net Cash 20% yoy increase 16% yoy increase 12% yoy increase 14% increase over March 2019 Capacity* as on 12th August ROCE in FY19 Kisan Mouldings Ltd’s 2019 manufacturing unit in Bengaluru for Launch of PVC taps, Faucets unde
Slide 7: Key Developments
6 Key Developments • The acquired plant in Bengaluru has a total installed capacity of 12,000 MTPA and is equipped with manufacturing lines for both uPVC pipes and cPVC pipes, which are key product categories of Apollo Pipes Successfully • The facility has an installed capacity of 9,000 MTPA for uPV
Slide 8: Key Developments
7 Key Developments The Company is • The Company is planning to establish a manufacturing line for its high-margin ‘Fittings’ product at the strategically existing acquired facility in Bengaluru. This plan, currently, is under evaluation evaluating plans to establish • Apollo Pipes continues to see a
Slide 9: Key Developments
8 Key Developments • The Company, in Q4 FY19, had announced its expansion plans. These expansion are marking a healthy progress and is on-track with the proposed timelines for execution Expansion plans at existing • Phase-wise expansion plan of existing facilities in Dadri and Ahmedabad marking prog
Slide 10: Key Developments
9 Key Developments • The Company delivered a healthy improvement of 20% YoY in its sales volumes • The key product segments of uPVC, cPVC and HDPE Pipe segments were the key drivers for the volume growth. Strong uptick in demand for the value-added product segment of Fittings also Began the new assi
Slide 11: Key Financial & Operational Parameters
10 Key Financial & Operational Parameters Product-wise Revenue Breakup Particulars (Rs. crore) Q1 FY20 Q1 FY19 Y-o-Y Shift uPVC Pipes 88.9 81.2 9% cPVC Pipes 3.7 2.5 44% Product Revenue (excluding HDPE Products 7.4 5.4 35% Others segment) Break-up – Q1FY20 Fittings 15.4 10.1 53% Others 2.0 1.8 15% T
Slide 12: Abridged P&L Statement
11 Abridged P&L Statement Particulars (Rs. crore) Q1 FY20 Q1 FY19 Y-o-Y Shift Net Revenue from Operations 117.4 101.1 16% Other Income 2.4 2.5 -4% Total Income From Operations (Net) 119.7 103.6 16% Total Expenditure 102.2 88.1 16% Raw Material expenses 85.4 73.5 16% Employee benefits expense 5.1 4.1
Slide 13: Financial Overview and Discussion (YoY)
12 Financial Overview and Discussion (YoY) Total Income From Operations (Net) during Q1FY20 stood at Rs. 117.4 crore, registering a growth of 16% Y-o-Y; • The Company registered a healthy sales volume growth of 20% in Q1FY20. This growth was driven by a strong contribution from cPVC and HDPE pipes s
Slide 14: Management’s Message
13 Management’s Message “We have begun the year on an encouraging note despite a subdued marco operating environment. During the quarter, our sales volume grew by 20% to 13,953 MTPA. The growth was primarily driven by healthy demand for uPVC, HDPE products Mr. Sameer Gupta, and cPVC pipes. Furthermo
Slide 15: Outlook for FY20
14 Outlook for FY20 Penetrate and establish footprint Strengthen foothold in existing into neighboring markets in Central markets of North and Western India and Eastern India Undertake a phase-wise capacity expansion at the existing facilities Improve utilization at the existing over the next few qu
Slide 16: Company Overview
15 Company Overview
Slide 17: Growth Map
16 Growth Map Figures in Rs. crore Particulars FY2015 FY2016 FY2017 FY2018 FY2019 CAGR Revenues 90 209 243 301 374 43% EBITDA 8 24 32 41 51 59% PAT 12* 10 16 22 24 19% Available Capacity MTPA (~) 35,000 52,000 53,000 60,000 63,000 16% Sales Volume (MTPA) 22,388 26,710 28,941 33,707 39,823 15% • *Inc
Slide 18: Key Strengths
17 Key Strengths Catering to Strong and Advanced Multiple and Proven expertise multiple sectors – highly equipment & Expanding efficient product in complex Agriculture, Water experienced technology – cost footprint in India offerings – projects Management, Management efficient 1,000+ products Infras
Slide 19: Product Portfolio - Diversified Basket of 1,000+ Products
18 Product Portfolio - Diversified Basket of 1,000+ Products PLASTIC TAPS/ uPVC PIPING SYSTEM cPVC PIPING SYSTEM HDPE PRODUCTS FAUCETS/SHOWERS PIPES FITTINGS PIPES FITTINGS FAUCETS SHOWERS ALLIED HDPE PIPING SYSTEM uPVC PIPES uPVC PLUMBING uPVC RING FIT PIPES PIPING SYSTEM uPVC COLUMN PIPES
Slide 20: Product Application across Sectors
19 Product Application across Sectors Agriculture Segment Water Management Segment •Casing pipes •Hot & cold potable water •Drip irrigation & distribution & transportation •Sprinkler system •Residential, commercial installations Apollo Pipes - key focus area Oil & Gas Segment •Conveying edible oils
Slide 21: Aiming Pan-India Distribution Presence
20 Aiming Pan-India Distribution Presence Enjoys a dominant and Delhi leading Head Office presence in Dadri North India (Manufacturing Unit-I) Extensive distribution Tapping newer network markets to reduce significantly inventory cost for reduces delivery Distributors & time to 48 hours Dealers (fro
Slide 22: Manufacturing Facilities
21 Manufacturing Facilities Close-to-demand Best in class distribution Manufacturing network catering Facility, with to key markets of advanced North, West, equipment & Central and South practices India All major certifications/ In-house accreditations manufacturing offers incremental contribution t
Slide 23: Product Development & Handling
22 Product Development & Handling In-house In-house CPVC development of Compounding extrusion moulds for Pipes & for better efficiency Fittings. Strong Technical Solid experience know how of manufacturing among Employee pipes with set base specifications
Slide 24: Strategic Growth Pillars
23 STRATEGIC GROWTH PILLARS
Slide 25: Scale-up distribution network across India to augment presence
24 Scale-up distribution network across India to augment presence and improve market penetration Strengthening Distribution & Footprint Diversified Product Portfolio • Establishing a solid presence in key markets • Strong presence in North India – extending market reach in other parts of India. Focu
Slide 26: Diversified Product Portfolio, aiming for 2,000+ products
25 Diversified Product Portfolio with total offerings at 1,000+, aiming to achieve 2,000+ products to the basket Strengthening Distribution & Footprint • Range of products manufactured at the technologically-advanced manufacturing Diversified facility at Dadri and Ahmedabad Product Portfolio • Empha
Slide 27: Sharp focus on Value-Added Products: Fittings
26 Sharp focus on Value-Added Products: Fittings – to help strengthen the value chain Strengthening Distribution & Footprint Diversified Product Portfolio • Focused approach towards Fittings across uPVC and cPVC that offer significantly higher margins Focus on Value- • High-growth segment – rapidly
Slide 28: Capacity Expansion to achieve 90,000 MTPA by March 2020
27 Capacity Expansion to aid long-term growth plan – to achieve 90,000 MTPA by March 2020 Strengthening Distribution & Footprint • Total available capacity of 63,000 MTPA Diversified • Undertaking a phase-wise capacity expansion at the existing facilities of Dadri Product Portfolio and Ahmedabad ove
Slide 29: Leverage the ‘APL Apollo’ brand reach and recall
28 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth Strengthening Distribution & Footprint • The ‘APL Apollo’ brand has covered several milestones in its journey since inception Diversified • Brand synonymous with quality and reliability of operations Product Portf
Slide 30: Leverage the ‘APL Apollo’ brand: branding activities
29 Efficiently leverage the ‘APL Apollo’ brand reach and recall to drive higher growth Branding Activities Strengthening – Sports Distribution & sponsorship Footprint Diversified Product Portfolio IPL TVC – Principal sponsor of Delhi Focus on Value- Capitals added Products - Fittings Principal Spons
Slide 31: Key Focus
30 Key Focus
Slide 32: Key Focus Areas
31 Key Focus Areas Continuous Branding Activities – To leverage on Brand ‘APL Apollo’ Diversifying brand presence – Catering to Central, Western & Southern India through established facilities located in Ahmedabad & Dadri New Product launches – Targeting a basket of 2,000+ products with immaculate f
Slide 33: Financial Highlights
32 Financial Highlights
Slide 34: Financial Trend
33 Financial Trend CAGR – 43% CAGR – 59% Revenue (Rs. Cr) EBITDA (Rs. Cr) EBITDA Margins (%) 374.0 14% 14% 13% 301.0 12% 243.0 9% 209.0 90.0 8 24 32 41 51 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 CAGR – 14% CAGR – 15% PAT (Rs. Cr) Volume (MTPA) 39,823.0 24 33,707.0 22 26
Slide 35: 5-year Financial Track-record
34 5-year Financial Track-record Particulars FY2015 FY2016 FY2017 FY2018 FY2019 Net Worth (Rs. Cr) 45.0 55.0 91.4 113.3 229.8 Cash and cash equivalents 2.9 2.0 8.0 0.1 0.1 Capex for the year (Rs. Cr) 24.0 12.2 9.1 17.1 48.2 Inventory (Rs. Cr) 24.9 13.7 22.7 44.3 52.3 Inventory Days 101.5 24.0 34.3 5
Slide 36: Annexure
35 Annexure
Slide 37: About Us
36 About Us Apollo Pipes (BSE: 531761), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipes holds a strong reputa
Slide 38: Thank You
Thank You