Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q2 FY2024 Earnings Presentation
36 slides from Apollo Pipes's earnings presentation, Oct 27, 2023
Slide 1: Exchange filing cover letter
October 26, 2023 The National Stock Exchange of India Department of Corporate Services/Listing Limited BSE Limited Exchange Plaza”, 5 Floor, th Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 SCRIP Code: 531
Slide 2: Apollo Pipes Q2FY24 Earnings Presentation
APOLLO PIPES LTD. Q2FY24 EARNINGS PRESENTATION Oct’2023 1
Slide 3: Safe harbour
Safe harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Table of Content
Table of Content 1 Apollo Pipes Overview 2 Growth Levers 3 Macro-Growth Drivers 4 5 6 www.apollopipes.com Future 5 Year Financial Q2FY24 Outlook Highlights Highlights 3
Slide 5: Company Overview
www.apollopipes.com COMPANY OVERVIEW 4
Slide 6: Apollo Pipes at a Glance
Apollo Pipes at a Glance Among the Top 10 5 700+ leading PVC pipe 1,36,000 MTPA Manufacturing Plants Channel Partners manufactures in India Capacity www.apollopipes.com 1600+ 15% 26% 16% 5-year Sales Volume 5-year Revenue 5-year EBITDA SKU’s CAGR CAGR CAGR 5
Slide 7: Q2FY24 at a Glance
Q2FY24 AT A GLANCE Rs. 249.5 Cr. 19,803 MT Rs. 24.1 Cr. 9.7% Sales Volume EBITDA EBITDA Margin Revenue 28% YoY increase 8.7x YoY increase 847bps YoY increase 20% YoY increase 7% QoQ decline 8% QoQ decline 38bps QoQ decline 4% QoQ decline Rs. 12.9 Cr Rs.20.2Cr 15.8% 10.6% PAT Cash Profit *ROCE *ROE (
Slide 8: Apollo Pipes at a Glance: Key Focus Areas
Apollo Pipes at a Glance Agriculture Segment Water Management Construction Oil & Gas Segment Telecom Ducting Segment Segment •Casing pipes •Hot & cold potable water •Sanitation & Sewage pipes •Conveying edible oils and •Drip irrigation & distribution & transportation •Plumbing Pipes chemicals & corr
Slide 9: Product Portfolio: Diversified Basket of 1,600+ Products
Product Portfolio Diversified Basket of 1,600+ Products PPR-C PLUMBING CPVC PIPING uPVC Piping System SYSTEM SYSTEM uPVC Pipes & Fittings | uPVC Column Pipes | S W R Drainage Pipes | uPVC Pressure Pipes P P R - C Pipes & Fittings C P V C Pipes & Fittings Well Casing Pipes | Underground Drainage Pipes
Slide 10: Product Portfolio and Company Milestones
Product Portfolio Commercial PVC pipe • Started manufacturing UPVC • Largest plastic piping Concluded promoter Commissioned the Raipur manufacturing operations Plumbing Pipes fittings with solution company infusion of Rs. 142 crore plant to tap Central and Established 3600 MTPA in 180 MTPA capacity
Slide 11: Tiger Shroff Appointed as Brand Ambassador
Tiger Shroff Appointed as Brand Ambassador Social Media campaign launched in Q3FY22 continue to garner good response 8.9 Million Views On Tiger Shroff’s : Water Tank 4.2 Million Views Water Tank: 3 Million Views (On Apollo Platform) 9.2 Million Views Pipes: 1 Million Views 13.4 Million Views Pipes 3
Slide 12: Raveena Tandon Appointed as Brand Ambassador
Raveena Tandon Appointed as Brand Ambassador Social Media campaign launched in Q3FY22 continue to garner good response 6.8 Million Followers Bath Fitting (On Raveena’s Platform) 8.5 Million Followers Digital Campaign, Packaging promotions etc. www.apollopipes.com #Amazing Everyday 11
Slide 13: Environment, Social, Governance and Safety Policy
Our Environment, Social, Governance and Safety Policy Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes • Installed rooftop solar plant at Dadri for optimum utilsation of energy • Evaluating opportunities to install rooftop solar plants at Ahmedabad and Bengaluru i
Slide 14: Growth Levers
www.apollopipes.com GROWTH LEVERS 13
Slide 15: Key Business Strength
Key Business Strength Catering to multiple sectors – Expanding footprint in India Agriculture, Water Management, Infrastructure Proven expertise in Strong and highly experienced complex projects ManagementTeam Advanced equipment & technology Multiple and efficient product www.apollopipes.com – cost effi
Slide 16: Strengthening distribution network across India
Strengthening distribution network across India to Augment presence and improve market penetration Enjoys a Dadri& Sikandrabad domin an t an d (Manufacturing Unit) leading presence in North India Extensive distribution network significantly reduces delivery time to 4 8 hours Tapping newer (from 10-1
Slide 17: Diversified Product Portfolio aiming for 2,500+ products
Diversified Product Portfolio with total offerings at 1,600+, Aiming to achieve 2,500+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri & Sikandrabad at U.P., Ahmedabad at Gujarat, Tumkur (Banglore) at Karnataka and Raipur at Chat
Slide 18: Capacity Expansion to aid long-term growth plan
Capacity Expansion to aid long-term growth plan Available Capacity 1,36,000MTPA Ahmedabad, Bengaluru and Raipur www.apollopipes.com line for the value added products at new locations 17
Slide 19: Macro Growth Drivers
MACRO GROWTH DRIVERS www.apollopipes.com 18
Slide 20: PVC Pipe Industry
PVC Pipe Industry The Indian PVC pipes and fittings market expected to register 15% CAGR during FY22 - FY26 • The domestic plastic pipes industry size at ~ ₹ 350Bn • Organized players account for ~70% market share • Key features of plastic pipes against other pipes - Lightweight - Ease of transportat
Slide 21: At the Forefront of multiple sector trends
At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging pipelines and • Improving irrigation schemes for distribution requirements installation of new pipes in transportation farm
Slide 22: Future Outlook
www.apollopipes.com FUTURE OUTLOOK 21
Slide 23: Capacity expansion plan
Capacity expansion plan ONGOING EXPANSION CAPEX Dadri-2 Dadri-1 & Tumkur (Greenfield) (Brownfield) Rs 100 cr. 25,000 Ton Current capacity: Total capacity: 286,000 ton 136,000 ton FUTURE EXPANSION in 3-4 years 125,000 Ton Rs 400 crores West South East Capex to be funded from equity infusion of Rs 260
Slide 24: Focus Areas for FY24
Focus Areas for FY24 Strengthen Undertake a Register solid Penetrate and Improve Undertake foothold in Pan phase-wise growth in sales – establish utilization at the various brand India capacity expansion targeting revenue footprint into existing building at the existing growth of around neighboring
Slide 25: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS www.apollopipes.com 24
Slide 26: Quarterly Performance
Quarterly Performance Q2FY24 Sales Volume (Tons) Revenue (Rs. Cr) 21,219 251.9 260.3 249.5 19,803 236.7 18,011 18,685 218.9 207.0 15,465 14,406 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 EBITDA (Rs. Cr) PAT (Rs. Cr) 29.4 15.0 26.2 13.9 12.9 24.1 2
Slide 27: Financial Trend
Financial Trend H1FY24 4 Y r . C A G R ( F Y 1 9 - 2 3 ) i s 1 4% 4 Yr. CAGR(FY19-23) is 26% 66,567 Volume (Tons) Revenue (Rs. Cr) 915 53,849 784 44,692 47,333 39,823 41,022 518 510 408 362 FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 H1FY24 4 Yr. CAGR(FY19-23) is 15% 4 Yr. CAGR(FY19-23)
Slide 28: Financial Trend: Cash Flow, Working Capital, Returns
Financial Trend H1FY24 Net Working Capital (Days) Op. Cashflow (Rs. Cr) 74 74 68 68 59 56 47 49 40 24 22 17 FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 H1FY24 Return Ratios Net Debt* (Rs.Cr) 23.9 21.1 9 18.6 19.0 15.8 13.9 13.5 13.2 10.6 10.6 FY19 FY20 FY21 FY22 -3 FY23 H1FY24 9.5 -10 5
Slide 29: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs Cr) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Sales Volume 15,465 18,011 18,685 21,219 19,803 Total Income From 207.0 236.7 251.9 260.3 249.5 Operations (Net) Total Expenditure 204.5 220.6 222.5 234.2 225.3 Raw Material expenses 166.8 179.4 181.0 190.4 178.2 Employee
Slide 30: Balance Sheet and Cash flow Statement
Balance Sheet and Cash flow Statement Balance Sheet - Assets (Rs Cr) H1FY24 FY23 Cashflow Statement (Rs Cr) H1FY24 FY23 Cash & Bank Balance 57 35 EBITDA 50 68 Receivables 72 66 Change in receivables -7 5 Inventories 184 171 Change in Inventory -14 -39 Other current assets* 35 59 Change in other WC -
Slide 31: Conclusion
CONCLUSION 30 www.apollopipes.com
Slide 32: Key Takeaways
Key Takeaways Increased market presence and Target to achieve improving 25%+ revenue distributor network growth CAGR over to address demand next three years across Leveraging ‘APL Value-added pan-India Apollo’ brand Available Capacity product categories reach and recall of 136,000MTPA to provide imp
Slide 33: About Us
About Us Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of exper ience in the Indian Pipe Market, Apollo Pipes holds
Slide 34: Thank You
ananane THANK YOU PIPING SYSTEMS GE@exvouc Made tor lite
Slide 35: Press release: Q2FY24 results
Apollo Pipes Limited A- 140, Sector 136. Noida, Uttar Pradesh- 201301 Q2FY24 Sales volume higher by 28% Y-o-Y to 19,803 Ton Revenue increased by 20% Y-o-Y to Rs 2.5Bn EBITDA increased by 8.7x Y-o-Y to Rs 0.2Bn Noida, Oct 26, 2023: Apollo Pipes Limited, among the top 10 leading piping solution provid
Slide 36: About the Company
About the Company Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipe