Finolex Industries Limited · NSE:FINPIPE
Finolex Industries — Q1 FY2014 Earnings Presentation
39 slides from Finolex Industries's earnings presentation, Jun 30, 2013
Slide 1: Investor Presentation Quarter ended 30th June, 2013
Finolex gets people together Investor Presentation Quarter ended 30th June, 2013 1
Slide 2: Interesting Insight
Finolex gets people together Interesting Insight According to a study made by the Ministry of Water Resources (mowr), GOI, the total water demand for agriculture will rise from 656 billion cubic meters (bcm) in 2005 to 979 bcm in 2020 and 1,195 (bcm) in 2030. Out of the total area under agricult
Slide 3: About us
Finolex gets people together About us Businesses Business Outlook Financials 3
Slide 4: About us
Finolex gets people together About us Businesses Business Outlook Financials 4
Slide 5: Leadership & Management
Finolex gets people together Leadership & Management Leadership: 19th largest PVC Pipe company in the global market out of the top 150 PVC Pipe companies as per the report published by The Plimsoll Global Analysis. 25th most profitable company out of top 150 Global PVC Pipe manufacturers as per
Slide 6: Business Snapshot
Finolex gets people together Business Snapshot Business Model: Only company in the industry with a completely backward integrated plant PVC Pipes PVC Power Surplus is sold outside Products: The company manufactures PVC pipes and fittings for • Agriculture • Housing • Building & Construction • Te
Slide 7: Financial Snapshot
Finolex gets people together Financial Snapshot Particulars (INR millions) FY09 FY10 FY11 FY12 FY13 Net sales 14,929 14,549 19,777 20,998 21,448 EBIDTA before forex gain/(loss) 1,974 3,168 2,362 2,314 3,587 EBIDTA after forex gain/(loss) 100 2,628 2,197 2,168 2,626 PAT (379) 1,323 762 752 1,362 Gros
Slide 8: Pan India Reach
Pan India Reach Finolex gets people together Corporate Office: PVC Pipe Finolex Industries Manufacturing Unit Limited, D/10, M.I.D.C. Masar, Gujarat Chinchwad, Pune Maharashtra. PVC Pipe Manufacturing Unit Urse (Pune), Maharashtra Corporate office at Pune PVC & PVC Pipe Works Manufacturing Unit Bran
Slide 9: Installed Capacities
Finolex gets people together Installed Capacities Capacities (MT) 2008-09 2009-10 2010-11 2011-12 2012-13 PVC Pipes & Fittings 97,200 1,14,163 1,22,867 1,80,000 2,10,000 PVC total capacity 2,60,000 2,60,000 2,60,000 2,60,000 2,70,000 Power (MW) - - 43 43 43 PVC Pipes PVC Resin 9
Slide 10: Businesses
Finolex gets people together About us Businesses Business Outlook Financials 10
Slide 11: PVC Pipes
Finolex gets people together PVC Pipes 11
Slide 12: Paradigm shift in business focus
Finolex gets people together Paradigm shift in business focus 12
Slide 13: Shift in focus
Finolex gets people together Shift in focus From a predominant PVC Resin To a fully integrated manufacturer PVC Pipe manufacturer FIL started in 1981 as a Pipe Manufacturer. With the vision to become fully integrated, the company commissioned a state of the art PVC Resin manufacturing unit at Ra
Slide 14: PVC Pipe – Industry Climate
Finolex gets people together PVC Pipe – Industry Climate Total domestic PVC pipe usage - ~75% of PVC Pipes is used in agriculture & segments irrigation segment. FIL has a leadership position in the rural segment. Flexible 3% Others Domestic PVC pipe industry is largely Plumbing 1% fragmented & uno
Slide 15: PVC Pipe – Planned Growth
Finolex gets people together PVC Pipe – Planned Growth FIL’s PVC Pipe Capacity (MMT) 0.49 0.58 0.59 0.67 0.70 0.70 0.97 1.14 1.23 1.80 2.10 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CAGR of 15.67% over the last 10 years Company continues to expand its PVC pipe capacity steadily over the
Slide 16: PVC Pipe – Maintaining Global Standards
Finolex gets people together PVC Pipe – Maintaining Global Standards All PVC pipes manufactured by FIL uses predominantly its own PVC Resin. Consistent quality of raw material translates into consistent quality of PVC pipes. One of the few manufacturers in India maintaining & matching global s
Slide 17: PVC Pipe – Agriculture Sector
Finolex gets people together PVC Pipe – Agriculture Sector Growth Drivers: Rural water management remains one of the focus areas of GOI. Only 40% agricultural land under irrigation. Of this 60% dependent on groundwater for its requirements. GOI continues its endeavor on increasing the total la
Slide 18: PVC Pipe – Building & Construction Sector
Finolex gets people together PVC Pipe – Building & Construction Sector Urban Demand: Total housing shortage in the urban area is ~22 million units. GOI is planning to add ~2.2 million units every year. One unit in urban area consumes ~ 200Kgs. of PVC products like pipes, flooring, door & windo
Slide 19: PVC Pipe – Addressable Market
Finolex gets people together PVC Pipe – Addressable Market Domestic PVC pipe capacity = ~15,00,000 MT Organised Market = 50% Un-organised market = = ~7,50,000 MT ~7,50,000 MT Finolex Industies Limited Others = 2,10,000 MT ~ 25% of the organised market Company likely to benefit due to the overall gro
Slide 20: PVC Pipe – FIL's Position
Finolex gets people together PVC Pipe – FIL’s Position Strong brand loyalty. Company offers a wide range of applications in • Agriculture • Housing • Building & Construction • Telecom Industry FIL is the 1st Indian manufacturer to be awarded IS/ISO 9001:2008. FIL has pioneered the concept of
Slide 21: Product portfolio – Presence throughout the value chain
Product portfolio – Finolex gets people together Presence throughout the value chain Various Applications Rural Housing Irrigation Water Management Urban Housing 21
Slide 22: PVC Fittings
Finolex gets people together PVC Fittings 22
Slide 23: PVC Fittings
Finolex gets people together PVC Fittings PVC Fittings is a high value business for the company. During 2012-13, the company sold 10,961 MT of PVC fittings which came in at a growth of 6% vis-à-vis the previous year. As a result of continuous shift from un-organised to organised markets, overa
Slide 24: PVC
Finolex gets people together PVC 24
Slide 25: PVC – Industry Climate
Finolex gets people together PVC – Industry Climate Global per Capita Consumption (In kgs.) Among different types of plastic pipes, PVC pipes account for ~86% of the India, 1.74 domestic plastic pipe market. Global per capita consumption of PVC in ROW, 5.42 USA, 11.47 India is only 1.74Kgs vs. C
Slide 26: PVC – Industry & FIL's Position
PVC – Industry & FIL’s Position Finolex gets people together Domestic PVC Capacities (KT) FIL has a total PVC capacity of 2,70,000 MT KT 700 650 and is the second largest PVC producer in the country. 600 PVC Resin plant was set up in technical collaboration with Uhde GmbH of Germany 500 under te
Slide 27: Manufacturing Process – PVC Resin
Finolex gets people together Manufacturing Process – PVC Resin PVC is ~90% of the total raw material required On polymerisation to manufacture PVC pipes Cracked at a high temperature Poly Vinyl Chloride Vinyl Chloride (PVC) Ethylene Di Monomer (VCM) Chloride (EDC) Ethylene is Mixed with Chlorine Eth
Slide 28: Power
Finolex gets people together Power 28
Slide 29: Power
Power Finolex gets people together Fully operational captive thermal power plant at Ratnagiri. Imported thermal coal based plant with an installed capacity of 43 MW. Majority of the power generated is used in house & balance is sold. As PVC pipe capacities grow in the coming years, full capa
Slide 30: FIL – Snapshot
FIL – Snapshot Finolex gets people together Only PVC pipe manufacturer in India with a fully backward integrated plant. Complete control on availability of consistent quality raw material. Self sufficient on • Main raw material • Adequate land for any future expansion • Self sufficient on wate
Slide 31: Business Outlook
Finolex gets people together About us Businesses Business Outlook Financials 31
Slide 32: Business Outlook
Finolex gets people together Business Outlook PVC pipe industry witnessing strong demand, and likely to remain robust in coming years. Focus on distribution in the coming few years to increase visibility and reach in North & East India. 20,000 MT pipe capacity to be commissioned by Q3FY14 at M
Slide 33: Financials
Finolex gets people together About us Businesses Business Outlook Financials 33
Slide 34: Results Update – Profit & Loss
Finolex gets people together Results Update – Profit & Loss Particulars (INR millions) Q1FY13 Q4FY13 Q1FY14 YoY Net Sales 5,199 6,296 5,635 8% EBIDTA before forex gain/(loss) 875 1,099 946 8% EBIDTA margins (%) 17% 17% 17% EBIDTA after forex gain/(loss) 573 1,277 407 -29% Depreciation 141 132 146 4%
Slide 35: Quarterly P&L
Finolex gets people together Quarterly P&L Q2 Q3 Q4 Q1 Quarterly PL (INR million) FY13 FY12 FY13 FY12 FY13 FY12 FY14 FY13 Net Income 3,809 4,317 6,144 5,687 6,296 5,930 5,635 5,199 Cost of goods sold 2,742 3,386 4,779 4,582 4,669 4,766 4,307 3,902 Gross Profits 1,068 931 1,366 1,105 1,627 1,164 1,32
Slide 36: Quarterly Segmental P&L
Finolex gets people together Quarterly Segmental P&L Segment wise – Quarterly Q2 Q3 Q4 Q1 PL (INR million) FY13 FY12 FY13 FY12 FY13 FY12 FY14 FY13 Segmental revenues PVC 2,779 2,949 4,406 4,315 4,555 3,970 3,627 3,896 PVC pipes 2,945 2,811 3,558 3,062 4,142 3,447 4,349 3,134 Power 514 432 616 482 54
Slide 37: Profit & Loss – Key indicators
Finolex gets people together Profit & Loss – Key indicators Profit & loss account (INR million) FY09 FY10 FY11 FY12 FY13 Net Income 14,929 14,549 19,777 20,998 21,448 Growth in sales (%) -3% 36% 6% 2% Gross Profits 3,185 4,442 3,878 3,893 5,356 Gross Profit (%) 21% 31% 20% 19% 25% EBIDTA before fore
Slide 38: Balance Sheet – Key indicators
Finolex gets people together Balance Sheet – Key indicators Balance Sheet (INR million) FY09 FY10 FY11 FY12 FY13 Equity and liabilities Share capital 1,240 1,240 1,240 1,241 1,241 Reserves and surplus 3,760 4,637 4,963 5,380 5,971 Long term borrowings 2,430 1,958 1,954 1,896 1,397 Short term borrowi
Slide 39: For further queries
Finolex gets people together For further queries: Finolex Industries Limited S-Ancial Advisors Pvt. Ltd. D-1/10, M.I.D.C. 503, Gundecha Chambers, Chinchwad, Pune 411 019 Fort, Mumbai 400 001 Contact No.: 020 2740 8200 Email: [email protected] Contact No.: 022 6635 1001/2 39