INVESTOR PRESENTATION th May, 2018, Mumbai

Transcription

1 INVESTOR PRESENTATION th May, 2018, Mumbai

2 ASTRAL, WHERE INNOVATION FLOWS

3 BUSINESS OVERVIEW OPERATING IN TWO HIGH GROWTH BUSINESS CATEGORIES PIPING ADHESIVES

4 CORPORATE STRUCTURE ASTRAL POLY TECHNIK LIMITED ABPL RESINOVA CHEMIE LTD SEAL IT UK APL KENYA 100% 97.45% 80% 50% SEAL IT USA 100%

5 PRESENCE IN 4 COUNTRIES. 10 MANUFACTURING LOCATIONS EMPLOYEES. One of India s fastest growing piping companies A Fortune India 500 company Comprehensive range of piping & adhesives

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

7 ASTRAL GROUP BUSINESS SEGMENTS Plumbing Epoxy Adhesives & Putty Drainage Silicone Sealants Agriculture Construction Chemicals Industrial PVA PIPING Fire Protection Conduit Ancillary ADHESIVES Cyanoacrylate Solvent Cements Tapes Polymeric Filling Compound Anaerobic Adhesives Industrial Adhesives

8 ASTRAL GROUP PRODUCTION FACILITIES

9 GHILOTH PLANT (PIPING), RAJASTHAN To be operational in July 2018 Will strengthen company s presence in North India

10 HOSUR (TAMILNADU) PLANT (PIPING) CAPACITY EXPANSION Added capacity to be operational in September 2018, which will strengthen company s presence in South India

11 DEPOTS AND OFFICES, PIPING AND ADHESIVES

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

13 INTRODUCING RESIQUICK- INSTANT ADHESIVE FEATURES AND BENEFITS Attractive and user-friendly ampule Easy and precise application, single drop accuracy Cost effective due to multiple usage Higher shelf life

14 LAUNCHING SHORTLY -DOUBLE WALL CORRUGATED PIPES FEATURES AND BENEFITS Used mainly for waste water and storm drainage, also used for cable protection Superior alternative to RCC drainage, with high strength, longer life, flexibility and lighter weight

15 BRANDING AND COMMUNICATION BRANDING AND ADVERTISING 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

16 ROBUST DISTRIBUTION NETWORK PIPING: 750+ Distributors More than 28,000 dealers ADHESIVES: 1800 Distributors Approx. 4 lac dealers

17 CORPORATE SOCIAL RESPONSIBILITY YOG SADHAN ASHRAM ACTIVITIES: Yoga classes and workshops Naturopathy Treatment Ayurveda Consultancy Acupressure Treatment Pranik Healing Treatment

18 FINANCIAL HIGHLIGHTS

19 PIPING BUSINESS (INR MN.) NET REVENUE EBIDTA 18,000 16,000 14,000 12,000 10,000 8,000 10,501 12,348 CAGR 11% 13,180 14,767 16,097 3,000 2,500 2,000 1,500 1,505 CAGR 18% 1,670 2,153 2,477 6,000 1,000 4,000 2, FY14 - Figures from FY 16 onwards are as per Ind AS

20 PIPING BUSINESS (INR MN.) PBT (BEFORE EXCEPTIONAL ITEM) PAT 2,000 1,800 1,600 1,592 1,836 1,200 1,100 CAGR 24% CAGR 20% 1,000 1,066 1,190 1,400 1,200 1, , Figures from FY 16 onwards are as per Ind AS

21 PIPING BUSINESS (INR MN. EXCEPT EPS) EPS (IN INR) CASH PROFIT ,700 1, ,600 CAGR 18% ,500 CAGR 18% 1,484 1,400 1, ,200 1,100 1,083 1,019 1, Figures from FY 16 onwards are as per Ind AS

22 PIPING BUSINESS - RATIOS, CAPACITY & PRODUCTION DEBT / EQUITY RATIO CAPACITY UTILIZATION (IN 000 MT) Figures from FY 16 onwards are as per Ind AS 150 SALES (IN 000 MT) CAGR 16% CAGR 15% FY 15 FY 16 FY 17 FY FY16 FY17 FY18 Capacity (In '000 MT) Production Vol. (In '000 MT)

23 PIPING BUSINESS - WORKING CAPITAL RATIO (IN DAYS) Inventory No. of days Debtors No. of days Net Working Capital No. of days Figures from FY 16 onwards are as per Ind AS

24 ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) RESINOVA- NET REVENUE SEAL IT UK & USA NET REVENUE ADHESIVE TOTAL- NET REVENUE 4,000 3,500 3,000 2,500 2,000 CAGR 19% 3,191 2,577 2,291 20% 3,840 1,550 1,500 1,450 1,400 1,350 1,300 1,501 1,363 1,393 6% 1,479 5,500 5,000 4,500 4,000 3,500 CAGR 12% 4,584 3,940 3,793 16% 5,319 1,500 1,250 3,000 Figures from FY 16 onwards are as per Ind AS

25 ADHESIVES BUSINESS SUMMARY OF SUBSIDIARIES (INR MN.) RESINOVA- EBIDTA SEAL IT UK & USA EBIDTA ADHESIVE TOTAL- EBIDTA CAGR 45% CAGR 33% % % % Figures from FY 16 onwards are as per Ind AS

26 SEAL IT KEY FINANCIALS (POUND MN.) Net Revenue EBIDTA

27 GROUP REVENUE BREAKUP - FY Adhesives 26% Piping 74%

28 CONSOLIDATED (INR MN.) NET REVENUE EBIDTA 25,000 3,500 3,268 20,000 15,000 14,100 CAGR 14% 16,778 18,947 21,060 3,000 2,500 2,000 1,683 CAGR 25% 2,035 2,703 10,000 1,500 1,000 5, Figures from FY 16 onwards are as per Ind AS

29 CONSOLIDATED (INR MN.) PBT PAT 3,000 2,000 2,500 1,757 CAGR 31% 1,800 2,481 CAGR 31% 1,600 1,446 2,000 2,007 1,400 1,200 1,019 1,500 1,315 1,000 1, , FY15 FY16 FY17 Figures from FY 16 onwards are as per Ind AS FY18 Figures from FY 16 onwards are as per Ind AS

30 CONSOLIDATED (INR MN. EXCEPT EPS) EPS CASH PROFIT , CAGR 30% CAGR 27% ,400 1, ,900 1,437 1,400 1,146 2, Figures from FY 16 onwards are as per Ind AS

31 GROUP WORKING CAPITAL RATIO (IN DAYS) Inventory No. of days Debtors No. of days Net Working Capital No. of days

32 PIPING & ADHESIVES INDUSTRY AT A GLANCE Present size of plastic piping is approximately INR 300,000 mn. which is expected to 14% CAGR during FY Present size of adhesive, sealants and building chemicals industry is approx. INR 130,000 to 150,000 mn., which is expected to 13-15% CAGR during FY Demand for plastic pipes and adhesives is expected to grow mainly because of following: 1. Surge in construction and infrastructure development in metros as well as tier-ii and tier-iii cities because of various Central, State Government and Municipal Corporation initiatives. (Target to build 50 mn. houses by FY 22). 2. Growth in the net disposable income of household due to GDP expansion and high rate of urbanization (36% by FY 20). 3. Investment in irrigation / agriculture sector is expected to increase at CAGR 12% to 13% till FY 22. (Source: CRISIL Research & World Urbanization Prospects: The 2011 Revision (UN))

33 PIPING & ADHESIVES INDUSTRY AT A GLANCE Present size of CPVC Piping market is approx. INR 35,000 mn. in India, which is expected to grow by 24% - 25% CAGR during FY The unorganized segment in the plastic piping industry accounts for approximately 35% to 40%. GST has given an edge to organized players over unorganized ones. India now happens to be one of the fastest growing markets for adhesives because of growth witnessed in industries like auto, packaging, housing etc. Construction Chemicals industry in India has comparatively low penetration and hence high growth potential. (Source: CRISIL Research & World Urbanization Prospects: The 2011 Revision (UN))

34 GROWTH DRIVERS PIPING BUSINESS New product launches: RECYFIX comprehensive range of surface drainage system PEX-A PRO - Advanced, next generation plumbing system for hot and cold water INSUPRO - XLPE Insulation for hot and cold water piping as well as for HVAC etc. Planning to launch DOUBLE WALL CORRUGATED pipes for underground drainage system that can replace bigger diameter RCC pipes Backward integration in CPVC at all plants. This will help improve in gross margins, which can be observed in results of the last year Upcoming manufacturing facilities: Rajasthan plant for piping to commence production from July 2018 Hosur plant for piping has been added with production capacity; to commence production from September 2018 Exploring to establish footprint in East India by setting up a manufacturing facility

35 GROWTH DRIVERS ADHESIVES BUSINESS Present build-up capacity can generate business around INR 12,000 mn. Currently offering total 642 SKUs Adhesives plant in USA has started operations. With the support of UK operations, EBDITA is expected to grow into double digit Many new products are being developed which will be launched in due course Introduction of new products under construction chemicals segment Successfully launched RESIQUICK 0.5 g ampule pack of Cyanoacrylate Expanding distributor network across India USA products (Silicone Tape etc.) will be launched here in India in Q3 18

36 KEY TAKE AWAYS Decentralization of manufacturing facilities will add to the top line and bottom line growth mainly due to logistics advantage Continuous efforts on branding and creating additional network in piping & adhesives will yield positive results in coming years Rajasthan and Hosur plants operations will add to production capacity and will strengthen the presence in northern/southern markets respectively Introduction of products in India from US and UK operations and vise versa will add to the growth in sales and margins Continuous efforts towards introduction of new products in piping and adhesives will help in improving top line and bottom line

37 THANK YOU astralpipes.com astraladhesives.com