Hariom Pipe Industries Ltd. · NSE:HARIOMPIPE
Hariom Pipe Industries — Investor Presentation (May 2024)
25 slides from Hariom Pipe Industries's investor presentation, May 2024
Slide 1: Hariom Pipe Industries Limited Investor Presentation May 2024
HARIOM PIPE INDUSTRIES LIMITED INVESTOR PRESENTATION May 2024
Slide 2: Vision, Mission and Goal
Vision, Mission and Goal VISION GOAL To be a benchmark in steel pipe industry To reach Rs 2,500 crore for high quality products, customer trust and inclusive growth in Revenue by FY26 without compromising on profitability MISSION To grow sustainably through geographical and value-added product portf
Slide 3: Q4FY24 and FY24 performance summary: Operational performance
Q4FY24 and FY24 performance summary Operational performance Best-ever volume delivered by ramp-up of new units • Successful ramp-up of GP, MS pipe & GP/GI Q4FY24 Q4FY23 Q3FY24 FY24 FY23 units; maintained a high Net Production, MT 59,376 47,874 53,735 2,13,216 1,20,518 share of Value Added Sales, MT
Slide 4: Q4FY24 and FY24 performance summary: Financial performance
Q4FY24 and FY24 performance summary Financial performance Record FY24 performance drives higher profitability and positive Operating Cash Flow • Increase in RoCE on the back of effective INR in Lakhs unless stated otherwise utilisation of resources Q4FY24 Q4FY23 Q3FY24 FY24 FY23 Total Income 33,206.
Slide 5: Q4FY24 and FY24 performance summary: Financial performance
Q4FY24 and FY24 performance summary Financial performance INR in Lakhs unless stated otherwise FY24 FY23 • Operating cash flows turns Balance Sheet positive, led by new GP project in Net Working Capital 19,502.09 22,662.94 TL and working capital 37,088.54 29,601.80 rationalization Total Debt Total O
Slide 6: What defines us: A legacy built over 50+ years
What defines us A legacy built over 50+ years From our roots in trading of steel pipes & tubes to becoming a producer of premium steel pipes and tubes products, we are defined by our…. • Deep understanding of customer requirements, geography-wise • Persistence & strength in backward integration • Pe
Slide 7: Steel pipe industry is growing – And we are in a strong position
Where we are today Steel pipe industry is growing – And we are in a strong position Our strengths Translating into… One of the most integrated producers of steel pipes with a Higher margin; Low volatility growing basket of value-added products Cold-Rolled and Galvanized steel pipe products to enhanc
Slide 8: 6 strategic pillars underpin our future performance
How we are creating value 6 strategic pillars underpin our future performance 1 2 3 Lead in value- Focused Superior added products expansion customer (Backward, Forward experience and Geographical) 4 5 6 Inclusive Focus on Generating free stakeholder profitability cash flow management 8
Slide 9: Capacity enhancements upgrading our product basket
Pillar 1 – Lead in value-added products Capacity enhancements upgrading our product basket Scaffolding Steel structures Greenhouse frameworks Hoarding structures Auto components Steel furniture 9
Slide 10: Capacity enhancements upgrading our product basket
Pillar 1 – Lead in value-added products Capacity enhancements upgrading our product basket Commercial pipes HVAC ducts Bus body Fencing Staircase Metro stations Crash guards 10
Slide 11: CR Tandem Mill adds new avenues for growth
Pillar 1 – Lead in value-added products CR Tandem Mill adds new avenues for growth • Commissioned state-of-the-art CR Tandem mill in FY24 at the Mahabubnagar Plant, TS • Tandem mill has 3 cold rolling processes to reduce thickness variation to achieve high quality • Produces pipes of thickness as lo
Slide 12: Plan to expand across India while increasing production
Pillar 2 – Focused expansion Plan to expand across India while increasing production Expanded capacity to 701kt, 2.3x since FY22 • GP/GI capacity of 300kt • MS Pipe capacity of 132kt • Focus on production; no growth capex planned Strengthened our Sales and Marketing team; Expanding Building a pan-In
Slide 13: Modern facilities driving sustainable production
Pillar 2 – Focused expansion Modern facilities driving sustainable production Pickling line CGL Slitting Line GP Stockyard 13
Slide 14: Evolving the customer experience
Pillar 3 – Superior Customer experience Evolving the customer experience One stop shop, Meet stringent Loyalty aimed at Enabled by product basket quality standards building and ERP systems for real-time approach of our industries retaining dealers order intimation and billing Comprehensive steel Aut
Slide 15: Aiming for inclusive growth
Pillar 4 – Inclusive stakeholder management Aiming for inclusive growth Customers Dealers Employees • New products • Distribution • Upskilling through • Wider dealer network opportunity training and • Quality standards • Cost-effective solutions development • 24x7 availability • Channel financing •
Slide 16: Cohesive plan to increase EBITDA margin
Pillar 5 – Focus on profitability Cohesive plan to increase EBITDA margin Key levers: Optimised operations Recycled Steel Value added products • Fully integrated MS Billets Hot Rolled MS Pipes and Scaffolding production of MS Strips Tubes Pipes Iron Ore* Sponge Iron Galvanised Coil Galvanised Pipe •
Slide 17: Operating Cash Flow expected to improve progressively
Pillar 6 – Generating free cash flow Operating Cash Flow expected to improve progressively Key levers to achieve higher cash flows Ramp-up Establish Rationalise Improve Prudent Positive Production in Market for RM and FG EBITDA Capital OCF and FCF new units GP/GI and inventories margin allocation an
Slide 18: Sales and profit margin expected to continually improve
Projecting strong financial profile Sales and profit margin expected to continually improve Key drivers: EBITDA per MT (INR) Sales (MT) • Higher value-added 8,928 product sales 1,99,016 7,585 • Supply chain 7,225 efficiencies 5,759 5,329 • Economies of scale 1,09,085 • Wider geographical 60,740 65,8
Slide 19: On track to achieve our FY26 goal
Projecting strong financial profile On track to achieve our FY26 goal • Enhanced capacity for rapid growth Net revenue, INR Crore EBITDA, INR Crore 143.8 • Expanded our 1,158 portfolio and footprint 644 82.6 • Emphasis on cost 58.8 efficiency 431 35.0 161 254 23.9 • Put in place levers for margin ex
Slide 20: Highly focused management driven towards value creation
Management Highly focused management driven towards value creation Key Management Over 50+ years of experience in steel pipes industry Young management team A single-minded focus on business Rupesh Kumar Gupta Shailesh Gupta Managing Director Whole Time Director Mr Rupesh Gupta has led the Mr Shaile
Slide 21: Safe harbour / Disclaimer
Safe harbour / Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by “Hariom Pipe Industries Limited” (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 22: Thank You
Thank You Amitabha Bhattacharya HARIOM PIPE INDUSTRIES LIMITED cfo@hariompipes.com
Slide 23: Appendix
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Slide 24: Progressively adding capacity of value-added products
Key Milestones Progressively adding capacity of value-added products 2020 2022 Acquisition of Sponge Iron Unit situated at Anantapur, A.P., with a capacity of 36,000 MTPA to achieve cost efficiency and better control of the entire value chain Increased Scaffolding Unit capacity to 5000 MTPA 2019
Slide 25: Modern facilities driving efficient and sustainable production
Manufacturing Modern facilities driving efficient and sustainable production Location Products and Installed Capacity Capacity in FY22, Capacity in FY23, Capacity in FY24, Product MTPA MTPA MTPA M.S. Billets 95,832 1,04,232 1,04,232 HR Strips 84,000 1,24,000 1,24,000 Mahabubnagar, Telangana Integrat
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