Corporate Office: 510, A Wing, Kohinoor City C—l From GRP Kirol Road, Off L.B.S. Marg, Kurla (W) - 400 070, India Mumbai T: +91 22 6708 2600 / 2500 F: +91 22 6708 2599 IMPACT POSITIVE GRP/Ml 3 H 0 /2019 13.02.2019 To To National Stock Exchange of India Limited BSE Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (E), - 400 001. - 400 051. Mumbai Mumbai Scrip code : 509152 — Series: EQ Symbol : GRPLTD Dear Sir/ Madam, Sub: Investor Presentation Pursuant to regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith investor presentation. The aforesaid presentation has been uploaded the Company’s website on viz., www.grpweb.com You are requested to take the above on record and oblige. Thanking you, Yours truly, For GRP Limited Gainesh A. Ghangur President and Chief Compliance Officer Encl.: As above GRP Ltd. ClN No.: L25191GJ1974PLC002555 Registered Office: - 393 002, Dist. Bharuch, Gujarat. India Plot No. 8, 61.00, Ankleshwar T: +91 2646 250471 / 251204 / 650433 F: +912646 251622 www.grpweb.com
GRP Limited Investor Presentation February 2019
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GRP 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 securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2
Performance Highlights
Performance Highlights for Q3FY19 * (in Rs. Mn) Gross Profit Revenue EBIDTA PAT +9% +12% +46% +59% 976.5 510.7 94.2 35.0 899.0 457.0 64.3 22.0 Q2FY19 Q3FY19 Q2 FY19 Q3 FY19 Q2FY19 Q3FY19 Q2FY19 Q3FY19 Revenue / Profitability • Growth in revenue is a reflection of improved performance from Reclaim as well as Non-Reclaim Rubber businesses • Increase in Revenue was predominantly due to increase in volumes & marginal price hike during this quarter • In addition to above, depreciation in INR has helped improve EBIDTA by 46% on Q-o-Q basis and EBITDA Margins for the quarter increased to 9.6% *On Standalone Basis 4
Growth Momentum Evident (in Rs. Mn) Revenue EBIDTA PAT +31% +65% +528% 976.5 94.2 35.0 899.0 775.4 746.6 64.3 22.0 57.2 53.6 5.6 3.6 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Data On Standalone Basis 5
Operational Highlights Q3FY19 Growth in Demand witnessed in international markets Volumes and Price hike helped gained momentum this Quarter Oil price volatility has helped increase RR consumption among end segments Operational Highlights Oil price rise has also resulted in increase in raw material and fuel price Muted domestic auto industry demand has resulted in low domestic sales & an adverse impact on availability of raw material Benefits of automation lines starting to reflect in costs of manpower 6
Segment Wise Performance Trend* Revenue Revenue Business Segments Break-Up Geographical Break-Up 2.7% 3.3% 3.5% 5.4% 29% 30% 38% 38% 97.3% 96.7% 96.5% 94.6% 71% 70% 62% 62% Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Domestic Non-Reclaim Rubber Export Reclaim Rubber *Data On Standalone Basis 7
Q3 & 9MFY19 Profit & Loss Statement* Profit & Loss (Rs. Mn) Q3 FY19 Q3 FY18 Y-o-Y / Bps Q2 FY19 Q-o-Q / Bps 9M FY19 9M FY18 Y-o-Y /Bps FY18 Revenue from Operations 976.5 727.5 34% 899.0 9% 2,650.9 2,248.0 18% 2,994.5 (Net of Taxes) Raw Material 465.8 321.3 442.1 1,260.0 1,045.4 1,380.5 Employee Cost 160.1 132.4 147.0 439.8 396.2 519.9 Other Expenses 256.4 224.7 245.6 739.0 673.0 903.6 EBIDTA 94.2 49.1 92% 64.3 46% 212.1 133.4 59% 190.5 EBITDA Margin 9.6% 6.8% + 280 bps 7.2% + 240 bps 8.0% 5.9% + 210 bps 6.4% Other Income 2.0 1.3 1.8 5.5 4.5 10.7 Depreciation 32.8 33.9 32.2 96.7 100.2 133.5 Finance Cost 14.4 11.9 16.3 46.0 31.9 43.0 PBT 49.0 4.7 941% 17.6 179% 74.9 5.9 1,177% 24.7 Tax 14.0 7.0 (4.4) 14.4 1.6 14.9 PAT 35.0 (2.3) - 22.0 59% 60.5 4.2 1,325% 9.8 PAT Margin 3.6% (0.3)% + 390 bps 2.4% + 120 bps 2.3% 0.2% + 210 bps 0.3% Cash Profit 67.8 31.6 115% 54.1 25% 157.3 104.4 51% 143.4 *Data On Standalone Basis 8
Segmental Financial Highlights* Reclaim Rubber Non-Reclaim Rubber Particulars (in Rs. Mn)* Q3 FY19 Q2 FY19 % Growth Q3 FY19 Q2 FY19 % Growth 922.3 864.8 6.6% 54.1 34.3 57.7% Revenue (Net of Taxes) Raw Material 447.7 428.8 18.1 13.3 Employee Cost 147.7 137.7 12.4 9.3 Other Expenses 240.8 238.6 15.6 7.0 EBIDTA 86.1 59.7 44.2% 8.0 4.6 73.9% EBIDTA Margin 9.3% 6.9% + 240 bps 14.8% 13.5% + 130 bps Growth in revenue and profitability is witnessed in both our Reclaim and Non-Reclaim Rubber Business Revenue for Q3FY19 for Reclaim Rubber business increased by 6.6% and Non-Reclaim Rubber business increased by 57.7% EBIDTA Margin for Q3FY19 stood at 9.3% & 14.8% for Reclaim and Non-Reclaim Rubber business respectively *Data On Standalone Basis 9
Introduction
Tyre Graveyards are increasing across the Globe 7.6 Billion people 1.7 billion new Creating huge in the world tyres produced a year TYRE GRAVEYARDS… Over 1 billion waste 1.4 Billion tyres generated per year vehicles on the road … HUGE OPPORTUNITY 11
…presenting a HUGE OPPORTUNITY Huge tyre graveyards that can be seen GRP uses end-of-life tyres to Reclaimed rubber, Engineering plastics, from Space recycle and manufacture Die-cut products 12
It is our raison d’etre Recover, Recycle, Reuse ’ is GRP’s raison d’etre as well as mantra for creating a clean planet GRP is one of the leading producers of reclaim rubber It recycles end- of-life tyres, automotive inner tubes, automobile profiles and moulded rubber products to produce consistent quality reclaim rubber The rubber produced emits 95% Lower greenhouse gas v/s virgin polymers 13
…to Reduce, Reuse & Recycle TYRE POLYMER RETREADING COMPOSITES REDUCE • • Process to extend the life of Manufactured from 100% Commercial Vehicle tyres recycled rubber and plastics beyond single use • Product is environmental • Environmental friendly friendly, strong and durable as process ensuring saving in a substitute to wood & valuable resources concrete • Custom die forms engineered from end of life CUSTOM REUSE truck and bus bias tyres used in application DIE FORMS where low cost solutions are a necessity like door mats, impact resistance products and Agricultural equipment's RECLAIM INDUSTRIAL RUBBER POLYMERS • • Produced from end of life Recovery and Reuse of tyres, automotive inner tubes, polyamide from end-of-life RECYCLE automobile profiles and tyres, a key competitive moulded rubber products to advantage is the continuous produce consistent quality availability of in-house raw reclaim rubber materials 14
Our Business
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