INVESTOR MEET THROUGH WEBINAR 26 th MAY 2020 OPERATING IN THREE - - PowerPoint PPT Presentation

Astral, where innovation flows…

INVESTOR MEET THROUGH WEBINAR

26th MAY 2020

PIPING PIPING ADHESIVES & SEALANTS ADHESIVES & SEALANTS INFRASTRUCTURE PRODUCTS INFRASTRUCTURE PRODUCTS

OPERATING IN THREE HIGH GROWTH BUSINESS CATEGORIES

CORPORATE STRUCTURE ASTRAL POLY TECHNIK LIMITED

ABPL

100%

RESINOVA CHEMIE LTD

97.45%

SEAL IT UK

80%

APL KENYA

50%

SEAL IT USA

100%

• One of India’s fastest growing piping

companies

• A Fortune India 500 company
• Comprehensive range of piping & adhesives

THE MOST TRUSTED PIPE BRAND 2019 CONSUMER VALIDATED SUPERBRANDS INDIA 2019

ASTRAL THE TRENDSETTER

First to introduce CPVC piping in India Introduced countless innovations in piping category Offers the widest piping product range Six piping mfg. units in India - and one abroad Three adhesives mfg. units in India – and two abroad Always ahead on the technology curve Known for zero-compromise quality and service Robust network of channel partners

ASTRAL GROUP – BUSINESS SEGMENTS

Plumbing

• CPVC, PVC & Pex

Drainage

• SWR, Low Noise drainage,

Sewerage, Storm-water Agriculture Industrial Fire Protection Conduit & Cable Protection Ancillary Infrastructure DWC Piping Ducting Telerex Epoxy Adhesives & Putty Silicone Sealants Construction Chemicals PVA Cyanoacrylate Solvent Cements Tapes Polymeric Filling Compound Anaerobic Adhesives Industrial Adhesives Instant Hand Sanitizer

ASTRAL GROUP – PRODUCTION FACILITIES

COMING SOON – PLANT IN EAST INDIA

The company has purchased approx. 100,000 sq. yard land to establish manufacturing facility in Bhubaneswar, Odisha (East India). Construction will start in current year, plant will be ready by March 2021.

NEW PIPING PLANT COMING UP AT BHUBANESHWAR, ODISHA, TO CATER TO NORTH EAST MARKETS

ASTRAL GROUP – PAN INDIA PRESENCE

CORE COMPETENCIES, ADVANTAGE ASTRAL

Seamless backward integration World-class mfg. capabilities & technical tie-ups Product innovations & value engineering Strong brand equity Wide and deep distribution reach Unbeatable quality

ASTRAL LOYALTY PROGRAM

India’s first and an unique loyalty program for plumbers across the country

• TV and print ads
• Outdoor brand promotion
• Radio ads
• Trade exhibitions
• Dealer shop branding
• In-film product integration
• On-ground cricket match branding
• Brand association – IPL
• Dealer meets
• Plumber meets
• Consultant meets
• Digital Marketing

BRANDING AND ADVERTISING

BRANDING AND COMMUNICATIONS

BRANDING AND COMMUNICATIONS

BRANDING AND COMMUNICATIONS Ranveer Singh comes aboard as brand ambassador of Astral Pipes

PIPING:

 800+ Distributors  31,000+ Dealers

ROBUST DISTRIBUTION NETWORK

ADHESIVES:

 1300+ Distributors  130,000+ Dealers

COVID-19 PREPAREDNESS & RESPONSE An instant hand sanitizer for Astral strong protection!

COVID-19 PREPAREDNESS & RESPONSE

• Very cost effective tool

for hand hygiene

• Made from PVC pipes and fittings
• Easy to install and carry

COVID-19 PREPAREDNESS & RESPONSE

• Contributed to PM Cares Fund, CM’s Relief Fund and Collector’s Funds.
• Provided cash vouchers to needy plumbers across the country
• Took care of meals of daily wagers stuck at manufacturing units
• Distributed ration kits in nearby areas of our manufacturing units
• Provided stethoscopes to hospitals

CORPORATE SOCIAL RESPONSIBILITY

ACTIVITIES CARRIED OUT AT ASTRAL CHARITABLE TRUST

• Regular Yoga and Meditation

sessions conducted.

• Health experts invited to conduct

informative sessions on various health related issues.

CORPORATE SOCIAL RESPONSIBILITY

ICU on Wheels – Donated to CIMS Hospital, Ahmedabad.

CORPORATE SOCIAL RESPONSIBILITY

DISTRIBUTION OF RATION KIT TO BLIND COUPLES THROUGH NAVJYOT TRUST DISTRIBUTION OF HEARING AID KITS

CORPORATE SOCIAL RESPONSIBILITY

DONATED VEHICLES TO RANTHAMBORE TIGER RESERVE FOR PATROLLING INSTALLATION OF SOLAR PUMPS IN VARIOUS NATIONAL PARKS AND SANCTUARIES

CORPORATE SOCIAL RESPONSIBILITY

• Distribution of sanitary pads among municipal school girls
• Ration kit distribution to needy segments
• Project Jaldhara – community owned water harvesting – created check

dam in Malakhera, Rajasthan

• Contribution to Earth Brigade Foundation for wild life conservation
• Contribution to Wild Life Trust of India towards flood relief in Assam
• Project Ujala – lighting up tribal villages in Karnataka
• Providing insulin and its treatment to needy patients
• Contribution to Gujarat Cancer Society
• Installation of 1KV Solar Power Stations to 5 anti-poaching camps

CORPORATE SOCIAL RESPONSIBILITY

• Water purifiers donated to Guardbook Conservation Foundation
• Cotton carry bags distributed in villages to reduce plastic bag usage
• Schools upgradation program under which modern equipment were

donated to 15 Government Primary Schools in Gandhinagar district

• Contribution made to Health and Care Foundation and Blind Peoples

Association for C3 Ophthalmic Screening Device

• Partnered with Gujarat CSR Authority, Govt. of Gujarat for Khoj Museum to

be constructed at riverfront, Ahmadabad

• Contributed to Rotary club Ahmadabad Metro Charitable Trust for

“Prosthetic Hand Camp“

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FINANCIAL HIGHLIGHTS

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Sales of FY 18 is regrouped in compliance with Ind AS 115. During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018.

NET REVENUE NET REVENUE EBIDTA EBIDTA

13,180 14,767 15,819 19,157 20,428

FY16 FY17 FY18 FY19 FY20

1,670 2,153 2,477 3,154 3,806

FY16 FY17 FY18 FY19 FY20

PIPING BUSINESS (INR MN.)

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PBT (BEFORE EXCEPTIONAL ITEM) PBT (BEFORE EXCEPTIONAL ITEM) PAT PAT

During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018.

1,039 1,592 1,836 2,202 2,570

FY16 FY17 FY18 FY19 FY20

729 1,066 1,190 1,414 2,008

FY16 FY17 FY18 FY19 FY20

PIPING BUSINESS (INR MN.)

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EPS (IN INR) EPS (IN INR) CASH PROFIT CASH PROFIT

During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018. EPS for FY 16 to FY 19 have been adjusted for bonus shares issued in current period.

4.89 7.11 7.94 9.40 13.33

FY16 FY17 FY18 FY19 FY20

1,083 1,484 1,657 2,085 2,907

FY16 FY17 FY18 FY19 FY20

PIPING BUSINESS (INR MN. EXCEPT EPS)

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DEBT / EQUITY RATIO DEBT / EQUITY RATIO CAPACITY UTILIZATION (IN ‘000 MT) CAPACITY UTILIZATION (IN ‘000 MT) SALES (IN ‘000 MT) SALES (IN ‘000 MT)

During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018.

0.23 0.18 0.12 0.17 0.09

FY16 FY17 FY18 FY19 FY20

127.76 137.71 152.10 205.29 238.73

77.91 87.69 105.75 120.82 135.64

FY 16 FY 17 FY 18 FY19 FY20

77.94 89.45 103.99 122.99 132.20

FY16 FY17 FY18 FY19 FY20

PIPING BUSINESS - RATIOS, CAPACITY & PRODUCTION

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• Inventory days are higher than normal days mainly because of sudden lock down announced by Government due to COVID-19 pandemic during the

pick sales period of March End, Similarly Receivables days have come down proportionately.

• Sales of FY 18 is regrouped in compliance with Ind AS 115.
• During the year 18-19, Rex Poly extrusion is amalgamated with the company w.e.f. July 10, 2018.

58 49 61 57 75 49 66 51 43 25 34 55 47 38 27

FY16 FY17 FY18 FY19 FY20 Inventory No. of days Debtors No. of days Net Working Capital No. of days

PIPING BUSINESS – WORKING CAPITAL IN DAYS

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26.6% 28.8% 31.4% 33.1% 36.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% FY16 FY17 FY18 FY19 FY20

PIPING BUSINESS – GROSS PROFIT MARGIN

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NET REVENUE NET REVENUE

Sales of FY 18 is regrouped in compliance with Ind AS 115.

EBIDTA EBIDTA

3,940 4,584 5,265 6,347 5,830

FY16 FY17 FY18 FY19 FY20

420 586 816 856 765

FY16 FY17 FY18 FY19 FY20

ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.)

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31.7% 36.4% 36.5% 35.7% 40.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% FY16 FY17 FY18 FY19 FY20

ADHESIVES BUSINESS – GROSS PROFIT MARGIN

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Piping 77% Adhesives 23%

GROUP REVENUE BREAKUP – FY 19-20

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NET REVENUE NET REVENUE EBIDTA EBIDTA

Sales of FY 18 is regrouped in compliance with Ind AS 115.

16,778 18,947 20,729 25,073 25,779

FY16 FY17 FY18 FY19 FY20

2,035 2,703 3,268 3,967 4,534

FY16 FY17 FY18 FY19 FY20

CONSOLIDATED (INR MN.)

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PBT PBT PAT PAT

1,315 2,007 2,481 2,834 3,061

FY16 FY17 FY18 FY19 FY20

1,019 1,446 1,757 1,973 2,496

FY16 FY17 FY18 FY19 FY20

CONSOLIDATED (INR MN.)

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CONSOLIDATED (INR MN. EXCEPT EPS)

EPS EPS CASH PROFIT CASH PROFIT

6.77 9.65 11.68 13.01 16.45

FY16 FY17 FY18 FY19 FY20

1,437 1,948 2,328 2,787 3,575

FY16 FY17 FY18 FY19 FY20

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60 52 63 58 77 49 65 54 49 32 41 62 55 56 41

FY16 FY17 FY18 FY19 FY20 Inventory No. of days Debtors No. of days Net Working Capital No. of days

• Inventory days are higher than normal days mainly because of sudden lock down announced by Government due to COVID-19 pandemic during the

pick sales period of March End, Similarly Receivables days have come down proportionately.

GROUP WORKING CAPITAL IN DAYS

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28.4% 31.2% 33.3% 34.3% 38.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% FY16 FY17 FY18 FY19 FY20

CONSOLIDATED– GROSS PROFIT MARGIN

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COVID-19, THE IMPACT ANALYSIS ON SALES

PIPING BUSINESS (ASTRAL STANDALONE) ADHESIVES BUSINESS (RESINOVA + SEAL IT)

2019-20 2018-19 % of change 2019-20 2018-19 % of change April to Feb 123,978 105,524 17.5% 19,284 16,453 17.2% March 8,222 17,464

• 52.9%

1,144 2,704

• 57.7%

Total 132,200 122,988 7.5% 20,428 19,157 6.6% Sales (Rs. In Million) Month Sales (In M.T.)

2019-20 2018-19 % April to Feb 5,514 5,561

• 0.8%

March 316 786

• 59.8%

Total 5,830 6,347

• 8.1%

Month Sales (Rs. In Million)

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Particulars (Rs. in Million)

Long Term Borrowings 1,655 Short Term Borrowings 201 Total Debt 1,856 Less: Cash Bank and Other Bank Balances 1,301

Net Debt 555

CONSOLIDATED– NET DEBT AS AT 31.03.2020

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KEY TAKE AWAY AND WAY FORWARD

• Company was consistently growing in double digit till February, only due to March

the numbers got converted into negative for Q-4.

• Due to multiple manufacturing facilities and depots, the company is quite confident

that in this tough environment also it will be delivering the goods to its customers in timely manner.

• Our focus will be on Balance Sheet Quality and Working Capital Management. One

can see in this tough environment also we have not compromised this aspect.

• As a part of company strategy, we have acquired additional land measuring

157,648 Sq. meter adjacent to our plants located at Sangli/Hosur/Santej/Odisha.

• Company’s solar plant will start giving revenue from 1st July, for which company

has already done capex. ( 8.23 MW).

• Due to robust systems, company is in a position to deliver work from Home

without any disturbances as all employees are connected with Laptop & PC from home.

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KEY TAKE AWAY AND WAY FORWARD

• Consistent improvement in Gross Margin will help company in coming years.
• There are a lot of cost elements which company can cut in this environment if

required.

• The benefits of Loyalty Programme for Plumbers & Dealers App will be

available to company now and substantial transparency in data will help company to grow market in a planned manner.

• Unorganised share in Plastic Pipe Industry is very High (40% Approx.), Post

Covid-19 lockdown even many organised players will have trouble due to their quality of Balance Sheet, Both will give good opportunity to company to grow its market share over a period of time.

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