Transcription
Investor Update - Q1 FY’17Private and confidential
Skipper: About usIncorporated in 1981,Skipper Limited is theFlagship company of theS.K. Bansal GroupManufactures:Transmission Towers& PolesTubular PolesMonopolesPVC / CPVC Pipes& FittingsSolar StructuresOne of the world's largestIntegrated Transmission Towermanufacturing companies withAngle Rolling, Tower, Accessories& Fastener manufacturing andEPC line constructionOur Transmission Towermanufacturing capacity is amongthe top 3 in India and among thetop 10 in the worldLargest producer of Plastic Pipes &Fittings in West Bengal, the fastestgrowing and second largest inEastern India6 manufacturing plants locatedacross IndiaAwarded as the “Fastestgrowing Transmission Towermanufacturing company inIndia” and “Largest TowerSupplier” to PGCILAwarded as "Best Industry inWater Resources sector" byCentral Board Of Irrigation AndPowerTotal workforce of 1600 members2
Key Market SnapshotParticularsAmountGrowth Highlights3yr CAGR (FY13-16)* Market Cap (INR Mn)15,961FY16 Net Sales (INR Mn)14,624 Revenue – 18% EBITDA - 37% PAT - 72% Order Book - 65%FY16 EBITDA (INR Mn)2,193FY'16 Highlights* Share price (INR)FY16 PAT (INR Mn)156951FY16 Networth (INR Mn)3,778FY16 Debt (INR Mn)4,682 Operating Margins - 13.8% EBITDA Margins – 15.0% Debt by Equity - 1.24 Interest Coverage - 3.51* As per NSE share price as on 5th August 20163
Skipper: Business SegmentsEngg ProductsPolymer Products Infra ProjectsCapacity (MTPA):200,00041,000ProductRange PowerTransmissionTower PowerDistribution Poles Monopoles MS & HighTensile Angles Fasteners TowerAccessories ERW PipesHighlights Ranks among the Strong Dealershipworld's leadingNetwork:transmission tower Aggressivemanufacturer andCapacity expansionTop 3 in Indiaplan: to become apan India player Recently forayedas part of forwardintegration activity. Targeting highmargin businessNet Sales Rs 12,822 Mn Rs 1,525 Mn(3yr CAGR 15.4%) (3yr CAGR 46.9%) Rs 277 Mn(3 yr CAGR gProductsPolymerproductsPVC ProductsInfra ProjectsInfra ProductsBased on FY’16 Annual Financial numbers UPVC Pipes CPVC Pipes SWR Pipes Fittings4 TransmissionLine EPC UndergroundUtility laying byHDD Water EPC
Revenue & Profitability TrendsRs in MnRs in Mn15,0002,10012,5007,500Operating EBITDA (Excl '13FY'14FY'15FY'16Debt / EBITDAEBIDTA& MarginsRsDebt Equity1,5000.0%FY'16Net SalesRs in Mn12.00PBT 3Yr CAGR 73%1,4331,3663Yr CAGR 55%951500FY'13367269FY'149.306.003.00278 1878.729.00PAT 3Yr CAGR 0,415% of Sales13.6%1,70012,70210,00020.0%14,6243Yr CAGR 18%%2.522.72FY'13FY'140.00FY'15FY'16Note: FY’16 & FY’15 includes income from Fwd contracts of Rs 1,814 Mn & Rs 4,201 Mn respectivelyInterest CoveragePBT & PATFY'15ROCEEPS( FV Rs 1/-)55FY'16
Performance & Leverage RatioTimes (X)Times (X)2.502.00Gross Debt Equity Ratio2.001.941.50Net Debt Equity 60.00FY'13FY'15FY'16Debt / EBITDADebtEquityDebt EquityTimes (X)FY'14Debt CE6FY'15FY'16
Performance UpdateQ1 FY’177
Financial Performance – Q1 FY’17Change %Sl. No Profit & Loss SummaryQ1 FY 17Q1 FY 161Net Sales2,826.32,344.220.6%2Operating .86.1187.6153.56.6%6.6%% of Sales3Depreciation4Interest Expenses5Other Income incl. Interest Income6Operating PBT (2-3-4 5)% of Sales7Income from Fwd Contracts8PBT (6 7)9Tax10PAT (8-9)21%YoYNet 231.9%PAT36.9%Note: Operating EBITDA (W/o Other Income) & Operating PBT excludes income from forward contracts8
Financial Highlights – Q1 FY’17Rs in MnNet Sales2,826 Net Sales increased by 21%2,344 Strong Volume Execution, led to growth.Q1 FY 17Operating EBITDAQ1 FY 16(W/o Forex & Other Income)408 Operating Profit grown by 15%353 EBITDA Margin of 14.4%Q1 FY 17Q1 FY 16PBT & PAT188 Profit Before Tax grown by 32%153137100Q1 FY 17PBTPATQ1 FY 16 Profit After Tax grown by 37%
Segment Performance – Q1 FY’17Rs in MnInfra4%SegmentPolymer13%Engg ProductsProfit & Loss SummaryQ1 FY 17Q1 FY 16Change %12M FY 015.0%15.3%378.341.8332.738.611.1%11.6%Net 2,011.114.4%15.1%Net SalesEBITDA% of SalesPVC ProductsNet SalesEBITDA% of SalesInfra ProjectsEngg83%% of SalesNet Sales TotalTotalEBITDA Total% of SalesRevenue Mix – Q1 te: Segment EBIDTA calculation excludes Income from Forward Contracts & Other Income and includes allocation ofUn-allocable expenditure expenses in pro-rata share of sales in the respective segment.10
Business DevelopmentsNew Manufacturing unit in North East: The Company’s board has approved setting up a newManufacturing unit in Guwahati, Assam with a capacity of 30,000 MT of Engineering Products and 7,000 MTof CPVC and UPVC Fittings.This unit is to be commissioned by the end of the current financial year (March’17). The total investmentoutlay for the project is estimated at Rs. 700 million.The Key rationales behind the project are as follows: To tap the growing demands of T&D products in the North East region on account of large upcomingPGCIL & BOO projects; To manufacture high value CPVC & UPVC fittings; to feed all our existing pipe units across the country; To take advantage of all the available Tax exemptions, Incentives and other associated benefits extendedby Centre and State for setting up manufacturing units in the region; To improve on our margin deliverance; The plant margin profile will be a couple of percentage pointshigher than our existing average commanded margins due to focus on manufacturing higher value addedproducts and its associated tax benefits and incentives.11
Business Developments During the quarter, company ventured into Southern India market by setting up its fifth PVCmanufacturing unit in Hyderabad of 6,000 MTPA under its asset light model to increase its totalmanufacturing size to 41,000 MTPA. The unit having a capacity to produce both Plumbing andAgriculture pipes will target the growing demands of the entire southern region states like AndhraPradesh, Telangana, Tamil Nadu, Karnataka and Kerala. During the quarter, the company gained entry into the newer market geographies of Asia & Africa bybagging new orders for Engineering products in the countries of Kenya, Cameroon, Congo, Ghana &Malaysia. The company is increasingly focusing on developing new market geographies to furtherexpands its international reach. The company recently got Power Grid approval for its Distribution Pole Business; enabling to tap thelarge potential Pole requirements for upcoming Power Grid DMS projects in the North Eastern region ofthe country.12
Skipper:Diversified Order Book(March 2016)Rs in MnOrder Mix30,00025,000Growing Order Book SizeOrder BookNet Sales24,48524,2903Yr CAGR 1.51.0FY'16Size to Sales (X)2.5The sector has started witnessing uptick in both ordering and executionand the company expects growth to remain strong and gain further pacewith increased participation opportunities from Power Grid, SEBs, TBCBprojects, Renewable projects & Exports.FY'151.20.60.50.0FY'13FY'1413FY'15FY'16
Awards & Accolades Featured in D&B’s acclaimed publication ‘India’s Top 500 Companies’ (2016 edition).Dun & Bradstreet (D&B) is the world’s leading provider of global business information,knowledge and insight. Won the prestigious “Largest Tower Supplier” award by Power Grid Corporation of India Ltd.(PGCIL) in the Tower Supply category Awarded and recognized as the “Best Industry in Water Resource Sector” in India by CentralBoard of Irrigation and Power. Awarded with “Star Performer Award 2013-14” from EEPC India in the large enterprisecategory. Accorded with coveted status of Two Star Export House by the Ministry of Commerce andIndustry, Government of India. Proud entrant to the NSE elite club of India’s Top 500 companies by market capitalization ason 31st March 2016.14
Proud MomentsPGCIL CMD Mr. IS Jha and Director(Operations & Projects) Mr. RP Sasmalhanding over the award of “LargestTower Supplier” to Mr. Sharan Bansal,Director, Skipper Limited.His excellency Mr. Keshari Nath Tripathi,Hon'ble Governor of West Bengalhanding over the award of “StarPerformer ” to Mr. Sajjan Kumar Bansal,MD and Mr. Devesh Bansal, DirectorHer Excellency the Union Minister ofWater Resources Shrimati Uma Bhartihanding over the award of “BestIndustry in Water Resource Sector” toMr Siddharth Bansal, Director, SkipperLimited.15
Thank youDisclaimer: This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospectiveinvestors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interestedparties should conduct their own investigation and analysis of the Company and the data set forth in this information. Skipper makes no representation or warranty as to the accuracy or completeness ofthis information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oralcommunications transmitted to the recipient in the course of its evaluation of the Company. This Information includes certain statements and estimates provided by the Company with respect to theprojected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions mayor may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligenceinvestigation regarding these and all other matters pertinent to investment in the Company. This presentation may contain statements that are not historical facts, referred to as “forward lookingstatements.” The corporation’s actual future results may differ materially from those suggested by such statements, depending on various factors including statements contained in the Company's filingswith the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any written or oral forward-looking statements that may be made from time to time by or onbehalf of the Company.For any queries please contact :Aditya Dujari (Investor Relations)Skipper Limited3A, Loudon Street, 1St Floor, Kolkata 700 017E-Mail: aditya.dujari@skipperlimited.comTel: 91 33 2289 2327/5731Mobile: 90514 00073
top 10 in the world Largest producer of Plastic Pipes & Fittings in West Bengal, the fastest . Key Market Snapshot Growth Highlights Particulars Amount * Share price (INR) 156 * Market Cap (INR Mn) 15,961 FY16 Net Sales (INR Mn) 14,624 FY16 EBITDA (INR Mn) 2,193 FY16 PAT (INR Mn) 951
