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25yearsShanlll araBuilding Products Ltd.Q2 FY21 Results
Safe HarborShan araBuilding Products Ltd.This presentation and the accompanying slides (the “Presentation”), which has been prepared by Shankara Building Products Limited (the “Company”),has been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for anysecurities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities ofthe 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 norepresentation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness andreasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you mayconsider 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 areindividually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject toknown and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, theperformance 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, technologicalimplementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to marketrisks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely fromresults expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in thisPresentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company andthe Company is not responsible for such third party statements and projections.su1lcipro2
Impact of COVID on financialsShan araBuilding Products Ltd.The impact of the pandemic continued to be felt on the Company's operations for Q2 FY 21. Some states andlocations did have partial lockdowns in the month of July. The impact of COVID-19, however, was less ascompared to the previous quarter. Liquidity continued to be sluggish. By September, 2020 there was an uptakein demand by certain industries like automobile and the infrastructure sector. Further, there have been somegreen shoots visible in the construction industry. That Company continues to take a partial wait and watchpolicy while taking adequate measures to ensure operations run in a smooth manner.su1lcipro3
Leading Building Material Retailer4Shan araBuilding Products Ltd.Retail space0.52 mn sqftProducts75 Mysore, KarnatakaThiruvalla, KeralaNellore, Andhra PradeshChennai, Tamil NaduSKUs30,000 States / UT9/1su1lcipro
Strong recovery in Q2 FY 215Shan araBuilding Products Ltd.RevenueEBITDAPAT* 41.0%488620 Partial demand recovery acrossall segments Tier 2 and 3 demand nearing346normal Pickupseeninconstructionactivity and in the Q2FY21Q1FY21Q2FY21
Pickup across all segments5Shan araBuilding Products Y21 Individual house building picking up Budget housing segment showing signs of recovery Housing finance rates have come down and banks are encouraging home loans Good monsoon augurs well for rural demandsu1lciproQ1FY21Q2FY21
Strong Focus on Balance Sheet7Shan araBuilding Products Ltd.DebtorsInventoryH1 FY 21 Operating cash flow40%16%27%stood strong at428400292Rs. 61 Crs257FY20H1FY21FY20H1FY21 With our continuous focus on balance sheet and demand traction , we have been able to reduce Debtors by Rs. 172 crs & Inventory by Rs. 108 crs as compared to March 2020 Our overall net debt acceptances has reduced by 14% as of end September 2020 as compared to March 2020. Net debt acceptancesstands at Rs. 292 crores as on end September 2020 We have ensured timely payment for all our banking commitments and all our trade creditors Fresh capex plans are on holdsu1lciproQ2FY21 and Q2FY20 NWC days calculated on annualized basis
Revenue Break-UpShan ara8Building Products ltd.Revenue across VerticalsRevenue as a % of last year %23%Channel147EnterpriseTotalRevenue across Locations (H1FY21)Revenues share across Verticals (H1FY21)29% Revenues are at 75%compared to last year370196 28%-12%-34%Tier 1Tier 2Tier 3Total59%*Note: % of Sales as compared to same period last year Tier 2 & 3 demand ahs picked up Auto and end customer segmenthas picked up in Q2 FY 21 Increase in share of sales fromchannel segment from 15% to 23%FY2115%Retaillevels
Revenue Break up H1FY218Shan araBuilding Products Ltd.H1FY20Revenue mix across StatesH1FY21Revenue mix across natakaAndhra PradeshKarnatakaAndhra PradeshTelenganaKeralaTelenganaKeralaTamil NaduOther StatesTamil NaduOther StatesDue to all India Lockdown on account of Covid-19 Pandemic, the figures for Q1FY21 & Q1FY20 are not comparable
Key Highlights – Retail Business9Shan araBuilding Products Ltd.UnitsQ2FY21Q2FY20No of retail storesNos.115129Total AreaSq. Ft520,576555,622Average store sizeSq. Ft4,5274,307Average ticket sizeRs.30,64028,156Rs. in Crs283347Rs.15.920.0ParticularsRevenue from retail storesAverage rental cost per Sq. Ft. per monthSignificant savings in rental costs achievedsu1lciproDue to all India Lockdown on account of Covid-19 Pandemic, the figures for Q1FY21 & Q1FY20 are not comparable
Q2 FY21 Income Statement10Shan araBuilding Products Ltd.Particulars (Rs. in Crs)Q2FY21Q2FY20Q1FY21487.9633.1346.1Other Income1.60.61.0Raw Material448.5576.8340.0Employee Expenses8.313.97.3Other Expenses12.515.79.2EBITDA20.127.3(9.3)EBITDA %4.1%4.3%-2.7%Depreciation6.655.726.7Finance 0.40(0.2)Profit After Tax6.259.82(25.2)Profit After Tax (%)1.3%1.6%-7.3%Total IncomeProfit before TaxExtraordinary expensessu1lciproDue to all India Lockdown on account of Covid-19 Pandemic, the figures for Q2FY21 & Q2FY20 are not comparableEBITDA marginsat last year levels
Balance Sheet11Shan araBuilding Products Ltd.Particulars (Rs. in Crs)Non-current assetsProperty, plant and equipmentInvestment PropertyCapital work-in-progressRight of use assetsGoodwill on ConsolidationIntangible AssetsFinancial Assets(i) Trade Receivables(ii) LoansOther non-current assetsDeferred tax Assets 0.0Current AssetsInventoriesFinancial Assets(i) Trade receivables(ii) Cash and cash 27.30.831.70.5873.52.821.70.91174.6(iii) Bank balances other than above(iv) Others financial assetsOther Current AssetsCurrent Assets NetTotal Assetssu1lciproParticulars (Rs. in Crs)30-Sep-2031-Mar-20Total EquityEquity Share CapitalOther Equity488.622.8465.7507.522.8484.6Non-current liabilitiesFinancial Libilities(i) Borrowings(ii) Lease Liabilities(iii) Other Financial LiabilitiesProvisionsDeferred Tax Liabilities nt liabilitiesFinancial Liabilities(i) Borrowings(ii) Trade Payables(iii) Lease Liabilities(iv) Other Financial LiabilitiesProvisionsCurrent Tax Liabilities (Net)Other Current LiabilitiesTotal .5238.1360.32.312.61.91.96.41174.6
12ShansoreBuilding Products Ltd.For further information, please contact:Company :ShanaraBuilding Products Ltd.CIN - L26922KA1995PLC018990Mr. Alex Varghese – CFOwww.shankarabuildpro.comBuildproInvestor Relations Advisors :S GA Strategic Growth AdvisorsCIN - U74140MH2010PTC204285Mr. Sagar Shroff /Mr. Shogun Jainsagar.shroff@sgapl.net / shogun.jain@sgapl.net 91 98205 19303 / 91 77383 77756www.sgapl.net
representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and . Tier 2 & 3 demand ahs picked up Auto and end customer segment has picked up in Q2 FY 21 . Average rental cost per Sq. Ft. per month Rs. 15.9 20.0
