Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q2 FY25 Earnings Presentation
38 slides from Apollo Pipes's earnings presentation, Oct 25, 2024
Slide 1: Exchange filing cover letter
October 25, 2024 The National Stock Exchange of India Department of Corporate Services/Listing Limited BSE Limited Exchange Plaza”, 5 Floor, th Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 SCRIP Code: 531
Slide 2: Q2FY25 Earnings Presentation
APOLLO PIPES LTD. Q2FY25 EARNINGS PRESENTATION Oct 2024 www.apollopipes.com 1
Slide 3: Safe harbour
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
Table of Content 1 Apollo Pipes Overview 2 Growth Levers 3 Macro-Growth Drivers 4 5 6 www.apollopipes.com Future 5 Year Financial Q2FY25 Outlook Highlights Highlights 3
Slide 5: Company Overview
www.apollopipes.com COMPANY OVERVIEW 4
Slide 6: Apollo Pipes at a Glance
Apollo Pipes at a Glance Amongst the Top 7 8 leading PVC pipe 2,16,000 Ton 1,000+ manufactures in India Capacity Manufacturing Plants Channel Partners 15% 22% 20% www.apollopipes.com 2,600+ 5-year Sales Volume 5-year Revenue 5-year EBITDA SKU’s CAGR CAGR CAGR 5
Slide 7: Q2FY25 at a Glance
Q2FY25* AT A GLANCE ₹250.4 Cr 20,152 MT ₹19.4 Cr 7.7% Sales Volume EBITDA EBITDA Margin Revenue 2% YoY increase 20% YoY decline 193bps YoY decline Unchanged YoY 24% QoQ decline 33% QoQ decline 164bps QoQ decline 19% QoQ decline ₹4.2 Cr ₹14.8Cr 7.6% 4.6% PAT Cash Profit **ROCE in H1FY25 ROE in H1FY25
Slide 8: H1FY25 at a Glance
H1FY25* AT A GLANCE ₹558.9 Cr 46,727 MT ₹48.4 Cr 8.7% Sales Volume EBITDA EBITDA Margin Revenue 14% YoY increase 4% YoY decline 121bps YoY decline 10%YoY increase ₹16.7 Cr ₹37.2Cr 7.6% 4.6% PAT Cash Profit **ROCE in H1FY25 ROE in H1FY25 38% YoY decline 9% YoY decline 6.4% in FY24 10.1% in FY24 www.a
Slide 9: Apollo Pipes at a Glance: Key Focus Areas
Apollo Pipes at a Glance Agriculture Segment Water Management Construction Segment Oil & Gas Segment Telecom Ducting Segment • Casing pipes • Hot & cold potable water • Sanitation & Sewage pipes Conveying edible oils and • Drip irrigation & distribution & transportation • Plumbing Pipes chemicals &
Slide 10: Product Portfolio
Product Portfolio Diversified Basket of 2,600+ Products UPVC PIPING PPR-C PLUMBING CPVC PIPING SYSTEM SYSTEM SYSTEM uPVC Pipes & Fittings | uPVC Column Pipes | S W R Drainage Pipes | uPVC Pressure Pipes PPR-C Pipes & Fittings CPVC Pipes & Fittings Well Casing Pipes | Underground Drainage Pipes HDPE P
Slide 11: Product Portfolio and Milestones
Product Portfolio Commercial PVC pipe • Started manufacturing UPVC • Largest plastic piping Concluded promoter Commissioned the Raipur manufacturing operations Plumbing Pipes fittings with solution company infusion of Rs. 142 crore plant to tap Central and Established 3600 MTPA in 180 MTPA capacity
Slide 12: Brand Ambassador Amitabh Bachchan
Announced Mr. Amitabh Bachchan as 1 Brand Ambassador New Tv Commercial Launched on 2 19th December 2023 3 6.3 Million Views 4 2.1 Million Views www.apollopipes.com 11
Slide 13: Raveena Tandon Brand Ambassador
1 Raveena Tandon Appointed as Brand Ambassador 2 Social Media campaign launched in Q3FY22 continue to garner good response 8.5 Million Followers Bath Fitting 3 (On Raveena’s Platform) 6.8 Million Followers www.apollopipes.com Digital Campaign, Packaging promotions 4 etc 12
Slide 14: Environment, Social, Governance and Safety Policy
Our Environment, Social, Governance and Safety Policy Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes • Installed rooftop solar plant at Dadri for optimum utilsation of energy Apollo Pipes Ltd. achieves 62nd • Evaluating opportunities to install rooftop solar pla
Slide 15: Growth Levers
www.apollopipes.com GROWTH LEVERS 14
Slide 16: Strategic acquisition of Kisan Mouldings
Strategic acquisition of Kisan Mouldings • Established in 1982 with 40+ yr. old legacy brand • Have a capacity of ~60k Ton • Apollo pipes invested Rs 118 Cr for acquiring majority stake (54%) in Kisan. • Wide range of SKU’s including Plastic Pipes and fittings for building and agricultural purposes.
Slide 17: Key Business Strength
Key Business Strength Expanding footprint in India Catering to multiple sectors – Agriculture, Water Management, Infrastructure Proven expertise in complex Strong and highly experienced Management projects Team Multiple and efficient product offerings – Advanced equipment & technology – 2,600+ products
Slide 18: Diversified Product Portfolio
Diversified Product Portfolio with total offerings at 2,600+, Aiming to achieve 4,000+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri & Sikandrabad at U.P., Ahmedabad at Gujarat, Tumkur (Bangalore) at Karnataka, Raipur at Chatti
Slide 19: Capacity Expansion to aid long-term growth plan
Capacity Expansion to aid long-term growth plan Available Capacity 2,16,000 MTPA Ahmedabad, Bengaluru and Raipur www.apollopipes.com line for the value-added products at new locations 18
Slide 20: Macro Growth Drivers
MACRO GROWTH DRIVERS www.apollopipes.com 19
Slide 21: PVC Pipe Industry
PVC Pipe Industry The Indian PVC pipes and fittings market expected to register 15% CAGR during FY 24 - FY27 • The domestic plastic pipes industry size at ~ ₹ 350Bn • Organized players account for ~70% market share • Key features of plastic pipes against other pipes - Lightweight - Ease of transporta
Slide 22: At the Forefront of multiple sector trends
At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging pipelines and • Improving irrigation schemes for distribution requirements installation of new pipes in transportation farm
Slide 23: Future Outlook
www.apollopipes.com FUTURE OUTLOOK 22
Slide 24: Capacity expansion plan
Capacity expansion plan Existing capacity Ongoing expansion Organic growth Capacity expansion Brownfield expansion Current capacity 41,500 ton 28,500 ton 2,16,000 ton Greenfield Varanasi Plant 30,000 Ton by FY26 Existing Apollo Pipes Ltd plants 1,56,000 Ton New Products- Total capacity Kisan Mouldin
Slide 25: Focus Areas for FY25
Focus Areas for FY25 Strengthen Undertake a Register solid Penetrate and Improve Undertake foothold in Pan phase-wise growth in sales – establish utilization at the various brand India capacity expansion targeting revenue footprint into existing building at the existing growth of around neighboring
Slide 26: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS www.apollopipes.com 25
Slide 27: Quarterly Performance
Quarterly Performance Sales Volume (Tons) Revenue (Rs. Cr) 26,575 308.5 260.3 249.5 255.6 250.4 21,219 21,345 20,152 19,803 18,868 221.6 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1FY25 Q2FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1FY25 Q2FY25 EBITDA (Rs. Cr) PAT (Rs. Cr) 13.9 12.9 12.5 29.0 26.2 24.1 25.4 9.1 20.
Slide 28: Financial Trend
Financial Trend Volume (Tons) Revenue (Rs. Cr) 81,235 987 915 66,567 784 53,849 44,692 47,333 46,727 518 559 408 FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY22 FY23 FY24 H1FY25 EBITDA (Rs. Cr) PAT (Rs.Cr) 93 96 50 44 43 74 68 48 29 46 24 www.apollopipes.com 17 FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY
Slide 29: Financial Trend
Financial Trend Op. Cashflow (Rs. Cr) Net Working Capital (Days) 74 74 195 68 56 54 68 47 40 19 22 (32) FY20 FY21 FY22 FY23 FY24 H1FY25 FY20 FY21 FY22 FY23 FY24 H1FY25 ROE (%) ROCE** (%) Net Debt/ (Net cash) (Rs.Cr) 21.1 71 18.6 19.0 13.5 13.2 10.6 9.5 10.1 7.6 9 7 www.apollopipes.com 5.5 6.4 4.6 -1
Slide 30: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (Rs Cr) Q4FY24 Q1FY25 Q2FY25 FY24 H1FY25 Sales Volume (Ton) 21,345 26,575 20,152 81,235 46,727 Total Income From Operations (Net) 256 308 250 987 559 Total Expenditure 230 280 231 891 511 Raw Material expenses 188 216 169 714 385 Employee expense 14
Slide 31: Balance Sheet & Cash flow (Consolidated)
Balance Sheet & Cash flow (Consolidated) Balance Sheet - Assets (Rs Cr) FY24 H1FY25 Cashflow Statement (Rs Cr) FY24 H1FY25 Cash & Bank Balance 56 67 EBITDA 96 50 Receivables 80 83 Change in receivables 19 -2 Inventories 199 246 Change in Inventory 13 -47 Other current assets 37 51 Other WC changes 8
Slide 32: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) Q2FY25 (Rs Cr) Apollo pipes (Ex- Kisan) Kisan Mouldings Sales Volume (Ton) 16,430 3,722 Total Income From Operations (Net) 201 51 Total Expenditure 182 50 Raw Material expenses 138 33 Employee expense 16 6 Other expenses 28 11 EBITDA 18.1 1.3 EBITDA margin (%) 9.
Slide 33: Conclusion
CONCLUSION 32 www.apollopipes.com
Slide 34: Key Takeaways
Key Takeaways Increased market presence and Target to achieve improving 25%+ revenue distributor network growth CAGR over to address demand next three years across Leveraging ‘APL Value-added pan-India Apollo’ brand Available Capacity product categories reach and recall of 2,16,000 Ton to provide im
Slide 35: About Us
About Us Apol l o Pipes (BSE: 531761; NSE: APOLLOPIPE), 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 Pip e Market, Ap ollo Pipes hol
Slide 36: Thank You
www.apollopipes.com THANK YOU 35
Slide 37: Press Release: Q2FY25 Consolidated Business Performance
Apollo Pipes Limited A- 140, Sector 136. Noida, Uttar Pradesh- 201301 Q2FY25 Consolidated Business Performance • Sales volume higher 2% YoY to 20,152 Ton • Revenue unchanged YoY to Rs 2.5 Bn • EBITDA declined 20% YoY to Rs 194 Mn • PAT declined 68% YoY to Rs 42 Mn H1FY25 Performance • Sales volume i
Slide 38: Press Release: Management comment and About the Company
we have started to see the demand traction specialy the agriculture sector from Oct’24 which will boost our volumes going forward. The company has a robust pipeline of innovative products. We continue to make strong inroads across cPVC, PVC-O Pipe and other value product segments. We are on track to