Pennar Industries Limited Investor Presentation Q4FY17/ FY17 - - PowerPoint PPT Presentation

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Pennar Industries Limited Investor Presentation Q4FY17/ FY17 - - PowerPoint PPT Presentation

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Pennar Industries Limited Investor Presentation Q4FY17/ FY17 PENNAR INDUSTRIES LIMITED Disclaimer This presentation contains forward looking statements including, but without limitation, statements relating to the implementation of

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PENNAR INDUSTRIES LIMITED

Pennar Industries Limited

Investor Presentation Q4FY17/ FY17

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This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Pennar Industries Limited and its subsidiary companies’ (“Pennar”) future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Pennar undertakes no obligation to periodically revise any forward looking statements to reflect future / likely events or circumstances.

Disclaimer

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Q4FY17/ FY17 Snapshot

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Financial Performance –FY17

1,481 1,718 FY16 FY17 986 1,105 FY16 FY17

Gross Revenues Gross Revenues Net Revenue & EBITDA % Net Revenue & EBITDA %

1,310 1,549 11.6% 11.2% FY16 FY17 874 991 9.3% 9.4% FY16 FY17

Consolidated Performance Standalone Performance

In Rs crs

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Financial Performance – Q4FY17

395 440 512 Q4FY16 Q3FY17 Q4FY17 271 275 312 Q4FY16 Q3FY17 Q4FY17 352 395 465 14.9% 11.1% 10.7% Q4FY16 Q3FY17 Q4FY17

Gross Revenues Gross Revenues Net Revenue & EBITDA % Net Revenue & EBITDA %

245 246 282 10.0% 8.1% 11.6% Q4FY16 Q3FY17 Q4FY17

Consolidated Performance Standalone Performance

In Rs crs

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86.2 141.8 14.4% 15.3% Q4FY16 Q4FY17 41.2 36.3 8.2% 10.1% Q4FY16 Q4FY17 91.0 78.2 6.2% 6.3% Q4FY16 Q4FY17 17.6 15.5 17.3% 15.9% Q4FY16 Q4FY17

Segment Performance – Q4FY17

Systems & Projects Tubes Steel Products Industrial Components

Net Revenues (Rs crs) & EBITDA Margin %

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Evolving Business Mix (1/2)

Steel Products 28% Systems and Projects 50% Tubes 13% ICD 6% Scrap 4%

Steel Products Systems and Projects Tubes ICD Scrap

As of 31st March, 2017

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As a Percentage of Standalone Revenues for Q4FY17

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Evolving Business Mix (2/2)

General Engg. 5% Automobile 9% Buildings 3% Auto 3% Infrastructure Profile 2% Others 6%

* Steel Products (28%)

ERW Tubes 9% CDW Tubes 4%

* Tubes (13%)

Solar 34% Railways 16%

* Systems and Projects (50%)

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* As a Percentage of Standalone Revenues for Q4FY17

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Segment Highlights

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Segment-wise Business Review; Outlook

Systems and Projects

  • Railways

Market Share –

25% Coaches; 15% Wagons INR 180.5 crores

FY17 Sales

Outlook for FY18

  • Targeting an increased order book from

Modern Coach Factory, Raebareli during FY18.

  • In the pipeline - Development of CRF Sections

for ongoing/upcoming Metro projects in India and abroad. Expanding production facility to cater new orders.

Business Highlights

Major Customers: Integral Coach Factory, Chennai; Modern Coach Factory, Raebareli; Texmaco Rail & Engineering Ltd., Kolkatta; Hindustan Engineering India Ltd., Kolkatta; Cimmco Ltd., Kolkatta; BEML Ltd, Bangalore

  • Apart from supplying 20 Coaches per month to ICF,

Chennai, Pennar is supplying 30 Roof Assemblies per month to MCF, Raebareli.

  • Rs. 25 Crs. worth orders for various coach applications

are in pipeline to be booked for the tenders participated during Q4.

  • Development orders of 15 under frames completed and

supplied to ICF and MCF.

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Segment-wise Business Review; Outlook

Systems and Projects - Solar

15 Customers INR 253.9

crores FY17 Sales

Solar

  • Repeat customers include Greenko Energy, Sterling Generators, Waree Energy, Tata Power. One new customer

added - Adani Enterprises Pvt Ltd added.

  • Major customers include Sterling & Wilson, L&T, Mahindra Susten, Nuevosol, Sterling & Wilson, Tata Power

India Ltd among others.

Outlook for FY18

  • Strong revenue growth of >50%, predicated on robust order book, capacity expansion completed with three new

mills in Patancheru.

  • CAPEX plan - Cold rolling & skin pass mill strengthening and an additional hydrogen annealing furnace.

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Segment-wise Business Review; Outlook

Tubes

Market share

CDW 8% ERW 5% INR 155.2

crores FY17 Sales

Business Highlights

  • 70% of the orders are from regular major OEAs in the form of monthly schedule and balance 30% are project-

based orders.

  • 2% of total billed quantity is from new customers added in Q4

Outlook

  • Revenue expected to grow 30% in FY18 on addition of new tube mill in Hyderabad; increase in CDW sales to

300 tons a month and a big thrust on exports.

  • CAPEX: Adding a new tube mill, Annealing, ECT Straightener, Testing/Finishing line; To accelerate CDW

growth plan from 1000T to 2000MT/month; Add continuous GP line for additional 700MT of GP tube.

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Segment-wise Business Review; Outlook

Industrial components

4 New

Customers

INR 58.1

crores FY17 Sales

Business Highlights

  • Strong growth seen in White goods segment.
  • Two wheeler segment: Post demonetization, Feb & Mar

showed signs of improvement. Consequently, Yamaha and INEL volumes are on an upswing.

  • New product addition and two wheeler growth helped

swing Endurance Revenue upwards by 20%.

  • Exports ended up Rs. 6 Crs. for the year.
  • New Customers – Comstar (Yoke), Hewlett Packard

(Rollers), Venus (Water heater covers), Dellner (Coupler bar).

Outlook

  • White goods segment: Strong market demand is seen

from March’17 and likely to continue to Q1 with revenue growth of 30%.

  • Two wheeler segment: FY18 seems to be buoyant with

double digit growth.

  • Commercial vehicles: Huge demand inflow from

Wabco Mahindra city exports which will drive growth upto H1 of FY18.

  • Hydraulics exports: Bailey is a success story to

showcase other customers. Bailey business in FY18 is likely to double with export opportunity to increase.

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Segment-wise Business Review; Outlook

Steel Products – Steel

Customers

CRSS: 100 CRFS: 75

CRFS Orders

  • Order in ESP from Thermax, GE Power; Order in Buildings from SNC Pvt Ltd., BTL EPC Ltd.-NTPC Unchahar

project, Indwell Construction, Power Mech-NTPC project; Repeat Orders from regular schedules of Auto & ESP for various projects.

CRSS Orders

  • Orders from Toshiba, IFB Industries, LGB, Luk India; Orders for Special Grade Material (JMT, KM Seat,

Amvian, Promx, DVB, IFB, LGB); Monthly schedule from regular customers continues.

New Customers

  • CRFS - BTP EPC Ltd., Naturo Speed Tech Pvt Ltd., Sreevas Roofing, Grupreet Galvanizing Pvt Ltd., Aero Fibre

Pvt Ltd.

Outlook for FY18

  • Robust growth is expected to be driven by a 20% increase in CRC. GP Strips are expected to be a major driver of

revenues.

  • The aim is to increase EBIDTA margin significantly in the Steel Products business unit.

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INR 309.7

crores FY17 Sales

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Subsidiary Highlights

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Group Subsidiaries

Pre-engineered building systems, Roof Top Solar, Solar EPC Industrial Water Treatment Solutions, Water Treatment Chemicals, Fuel Additives

Pennar Enviro Pennar Engineering Building Systems Pennar Industries Limited

Market Cap as of 31st March, 2017 – INR 493.4 Crs

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Pennar Renewables Private Limited

Solar Power Plants

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Subsidiary Highlights

Pennar Enviro

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New Customers

Repeat Orders:

STEAG Energy Services (India) Pvt. Ltd; Parry Sugar Refinery India Private Ltd; Hatsun Agro Products Ltd; Covalent Laboratories Pvt. Ltd; Sigma Electric Manufacturing;

New Customers:

Heubach Colour Pvt. Ltd., Bharat Oman Refineries Ltd.,Sai Wardha Power Generation Ltd., India Power Corporation (Haldia) Ltd. and Motherson

New product: Cleaning Chemicals

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Subsidiary Highlights, Outlook

PEBS Pennar

Rs 372

crores

Order Book

FY17 Gross Sales of Rs

570.3 crores

New Orders : JSW Cement in Maharashtra, JSW’s Paint in Karnataka, Toyo Engineering India Limited, Amplus

Energy Solutions Pvt Ltd.’s solar project, Hetero Drugs Ltd. for Hyderabad, Aequs SEZ Pvt Ltd.’s Aero System for Bangalore, Shahi Exports Pvt. Ltd. for Ahmedabad and Walmart India Pvt Ltd.’s order in Delhi.

Repeat Orders : JSW Cement, Hetero Drugs, Shapoorji & Pallonji and Aequs SEZ Pvt Ltd. Business Highlights

  • High-Rise Buildings – The Company is currently executing six residential towers and one commercial tower.
  • Telecom Towers - The Company is currently developing models for tower business.
  • Exports – Focusing on export & executed orders worth of 6 Crores.
  • Agreement with the Andhra Pradesh Government for engaging a 75-seater engineering office facility in Vizag

(Andhra Pradesh) under the Software Export Promotion Program over a period of one year, in a phased manner.

Outlook for FY18 - Focus on improving margins

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Projects - Subsidiaries

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Projects – Pennar Enviro

JBF HETERO BIOLOGICAL E-PROJECT ONGC DHUNSERI AGI-CIVIL

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Projects – PEBS

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High-rise structure in Hyderabad COCA COLA TEXPORT HIL SHAPOORJI & PALLONJI VEE RUBBER TVS INFRA ULTRATECH - TADIPATRI

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The Pennar Group

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FY17

Performance

1549.4 Cr.

Net Revenue

74.9 Cr

Cash Profit

11.2%

EBITDA Margin

174.2 Cr.

EBITDA

3 %

PAT Margin

46.7 Cr.

PAT

3.88

EPS

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30

YEARS OF EXPERIENCE

1,000

PRECISELY ENGINEERED PRODUCTS

500

CUSTOMERS

2,000

EMPLOYEES AND GROWING !

2,500

TOOLS & DIES

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Business Segments

Steel Products

  • Automobiles
  • General

Engineering

  • Infrastructure
  • White Goods

Systems and Projects

  • Railway Coaches

and Wagons

  • Solar Mounting

Structures Industrial Components

  • Automobiles
  • Industrial
  • White Goods
  • Hydraulics

Tubes

  • Automobiles
  • Power

z z zv z

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Distributed Manufacturing

Tarapur Chennai Patancheru Isnapur

Tarapur Solar, Building Products, Auto Profiles, ESP Patancheru Press Components, Profiles, ESP / Building Products, Sheet Piles / Solar, Railway Components, CRSS, Fabrication Isnapur CRSS, ERW / CDW Tubes, Profiles, Solar Chennai Coaches, Auto Profiles, Components / Hydraulics, Building Products

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Management Team

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Management Team

Leadership Team

Nru rupen ender Ra Rao Executive Chairman Pennar Group Ad Adity tya N. Ra Rao Vice Chairman, Managing Director, Pennar Industries P.

  • P. V.
  • V. Ra

Rao Managing Director PEBS Pennar Shre reep epad Pu Purk rkar President and CEO Pennar Enviro

Business Heads

Y Nara rasimha Ra Rao Steel Products M.

  • M. Bhoopal Re

Reddy Tubes Shiva Kuma mar K Industrial Components Da Daya yasagar Ra Rao Operations 28

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THANK YOU

Contact Details: Investor Relations – Jill Deviprasad Cell: +91-7718834519 Email: jill@velresearch.com Pennar Industries Limited Floor: 3, DHFLVC Silicon Towers Kondapur, Hyderabad - 500 084, Telangana CIN : L27109AP1975PLC 001919