Skipper Ltd · NSE:SKIPPER
Skipper — Q2 FY2019 Earnings Presentation
36 slides from Skipper's earnings presentation, Nov 13, 2018
Slide 1: Covering letter to stock exchanges on investor presentation
SKILPpER Date: 13 November, 2018 The Manager The Manager National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Dalal Street Plot No. C-1, Block-G Mumbai- 400 001 Bandra Kurla Complex, Bandra (E) Mumbai- 400 051 NSE Scrip Name- SKIPPER / BSE Scrip
Slide 2: Growing Tall – Investor Update Q2 FY'19
GR WING TALL Investor Update – Q2 FY’19 www.skipperlimited.com www.skipperlimited.com
Slide 3: About us
About us Incorporated in 1981, Skipper Limited is the Flagship company of the S.K. Bansal Group. One of the world's largest Integrated Transmission Tower manufacturing companies with Angle Rolling, Tower, Accessories & Fastener manufacturing and EPC line construction . Largest manufacturer of
Slide 4: Business Segments
Business SEGMENTS Engg Products Polymer Products Infra Projects Capacity (MTPA): 265,000 51,000 Product • Power • UPVC Pipes • Transmission Range Transmission Tower • CPVC Pipes Line EPC • Power Distribution • SWR Pipes • Underground Poles • HDPE Pipes Utility laying by HDD 10% • Monopoles • Fitting
Slide 5: Global Foot Prints
OUR PRODUCTS HAVE MADE A POSITIVE Global Foot Prints DIFFERENCE IN MAJOR PARTS OF THE WORLD! SOUTH AMERICA Peru, Colombia, Chile EUROPE UK, Germany, Spain AFRICA Kenya, Egypt, Ghana, Nigeria, Zambia, Sierra Leone Guinea, South Africa, Botswana MIDDLE EAST Jordan, Saudi Arabia, UAE SOUTH AND SOUTH EA
Slide 6: Order Book
Order Book Total Order Book Size: 26,270 Million Diversified Order Book (March 2018) Rs in Mn Growing Engineering Order Book Size 30,000 25,890 26,270 25,000 24,485 24,290 20,000 17,782 15,000 13,993 12,913 12,822 11,343 9,554 10,000 5,000 0 FY'14 FY'15 FY'16 FY'17 FY'18 Order Book Sales 5 www.skipp
Slide 7: Engineering Products: Sector Outlook & Growth Drivers
Engineering Products Sector Outlook & Growth Drivers 6 www.skipperlimited.com
Slide 8: Power T&D
Focus on Global Power Global electricity demand is expected to increase by 71.1% from 20,140 TWh in 2013 to approximately 34,460 TWh by 2040 at an average of 2.6% per year. Generation Capacity : Growth in global installed capacity by 71.5% from 6,163 GW in 2014 to approximately 10,570 GW by 2040, wi
Slide 9: Growth Drivers
Growth Drivers 60% www.skipperlimited.com 8
Slide 10: Outlook: A $One Trillion Global and Indian Opportunity
Outlook A $ One Trillion Global and Indian Opportunity $1trn Investment in global T&D Global T&D sector is projected to attract investment of over $1trillion over the next 5-6 years. Mounting demand for power in Asia and Africa; Increasing demand for clean energy; cross-border power networks,
Slide 11: Growth Drivers: Global Power
Global Power Growth Sector Investments (2015-40) Drivers Global Investment in Power Sector Policies Global Investment in Power Sector Policies $8.4 trn Investment in global T&D Total USD 19.7 Trillion Global T&D sector is projected to attract investment of over $1trillion over the next 5- 6 years. T
Slide 12: Global T&D Investment (2015-40)
Global T&D INVESTMENT (2015-40) According to World Energy Outlook (WEO) 2015, a total of US$ 8.4 trillion investments are expected to flow in the global T&D investments between 2015 and 2040, averaging US$320 billion per year. 60% www.skipperlimited.com 11
Slide 13: India: Exponential power transmission sector opportunities
India: Exponential power transmission sector opportunities ● Power-evacuation constraints and high T&D ● In each Transmission Line project (excluding losses have attracted the attention of policy- substations), portion of towers is about 40% . makers for more investment in transmission Conductors an
Slide 14: India: Exponential power transmission sector opportunities
India: Exponential power transmission sector opportunities • Establishment of dedicated green energy transmission corridors to cater to the massive renewable power generation target of 1,75,000 MW by 2022 • Growing interest in tariff-based competitive bidding (TBCB) by several private sector giants
Slide 15: Engineering Products: Non T&D Products – Emerging Growth Driver
Engineering Products Non T&D Products – Emerging Growth Driver 14 www.skipperlimited.com
Slide 16: Emerging Growth Driver: Railway Electrification
Emerging Growth Driver Railway Electrification • Indian Railways has prepared an action plan to electrify 38,000 km route in next four years at a total capital outlay of over Rs 35,000 crores. • The pace of electrification has been increased to achieve 100 per cent electrification of broad gauge (BG
Slide 17: Emerging Growth Driver: Telecom Tower
Emerging Growth Driver Telecom Tower • India's Telecom tower industry requires a massive investment of Rs 20,000 crore in the next few years to keep pace with the burgeoning growth in data on mobile and advent of new technologies. • The need for constant expansion in 4G mobile services and a future
Slide 18: Polymer Business Brand Architecture Overhaul
Polymer Business Brand Architecture Overhaul 17 www.skipperlimited.com
Slide 19: Partnering with Vector Consulting Group
IND AS - Applicab Partnering with Vector ABSTRACT Consulting Group Profile: Vector Consulting Group assists Skipper Pipes has partnered with Vector Consulting Group, a leading companies to achieve quantum management consulting firm in India to exponentially increase its market improvements in operat
Slide 20: Supply Chain Transformation with Theory of Constraints
IND AS - Applicab Empowering ABSTRACT Supply Chain Transformation Only Polymer Pipe Exponential Sales Growth & Gain in Market Share Company in India to Robust Processes & Systems in place to improve profitability implement Theory of Consistent availability of entire range of Constraints (TOC) produc
Slide 21: Steps to Overhaul: From – To
IND AS - –Applicab Polymer ABSTRACT Steps to Overhaul From To Push Sales – Sales driven on the basis of target Pull Sales – Sales driven by improving availability and other enablers Focus on Primary Sales Focus on Secondary / Retail Sales Partnering Benefits Monthly billing to the Distributors Regul
Slide 22: Steps to Overhaul: Structural & Strategic Changes
IND AS - –Applicab Polymer ABSTRACT Steps to Overhaul Structural & Strategic changes been implemented to achieve the objective : Shift of focus from Agriculture to more margin enumerative Plumbing Pipes & Fittings Focusing towards building a Strong Retail Presence in Plumbing Pipes & Fittings
Slide 23: Outcome of Sales Pilot Project
Post Implementation Period - Aug’18 - Oct’18 Outcome of Sales Pilot ABSTRACT IND AS - Applicab Project (In Rollout zone of Kolkata & Hooghly markets) Reach (Outlets Billed) Range (Unique SKUs Ordered) 100 200 167% 17% 75 175 50 150 125 Partnering Benefits 25 0 100 Pre-implementation Post-implementat
Slide 24: Demerger of Polymer Business
Demerger of Polymer Business 23 www.skipperlimited.com
Slide 25: Demerger Scheme
Demerger Scheme IND AS - Applicab ABSTRACT The Board of Directors of Skipper Limited has approved a business restructuring scheme to demerge the “Polymer Products Division (except Palasbari unit at Assam)” into Skipper Pipes Limited (SPL) in their meeting held on 31st October 2018. The company has s
Slide 26: Rationale of Demerger
Rationale of Demerger ABSTRACT IND AS - Applicab The separation of the demerged undertaking would lead to significant benefits for both the business. Clear Definition of the • Clarity based on business operations • Creating Independent companies with well defined verticals Business Partnering Benefi
Slide 27: Performance Update Q2 & H1 FY'19
Performance Update Q2 & H1 FY’19 26 www.skipperlimited.com
Slide 28: Financial Performance Q2 FY'19
Financial IND Performance AS - Applicab Q2 FY 19 ABSTRACT Rs in Mn Sl. Profit & Loss Summary Q2 FY’19 Q2 FY’18 Note : 1 Net Revenue (Excl Excise Duty) 5,239.6 5,156.2 Forex derivatives MTM gain/loss arising on 2 Operating EBITDA (without Forex) 534.6 658.1 account of sharp depreciation of rupee has
Slide 29: Financial Performance H1 FY'19
Financial IND Performance AS - Applicab H1 FY 19 ABSTRACT Rs in Mn Sl. Profit & Loss Summary H1 FY’19 H1 FY’18 Note : 1 Net Revenue (Excl Excise Duty) 10,026.6 9,483.4 Forex derivatives MTM gain/loss arising on 2 Operating EBITDA (without Forex) 1,043 1,064.8 account of sharp depreciation of Rupee h
Slide 30: Performance Highlights: Revenue
IND AS - Applicab Performance HighlightsABSTRACT Revenue performance remained muted on account of the following: Revenue Performance Engineering Segment • Lack of short term orders in market Rs in Million • Slower Project Execution on account of Strong Monsoon and hurdles in multiple regions owi
Slide 31: Performance Highlights: EBITDA and PBT
IND AS - Applicab Performance HighlightsABSTRACT Operating EBITDA margins of 10.2 % during the quarter, growth impacted due to - Operating EBITDA (without Forex) • Sustained high raw material prices of both Steel & Zinc had its impact on Fixed 658 Price contracts Rs in Million 535 • Slow off take
Slide 32: Segment Performance Q2 & H1 FY'19
Segment IND AS - Performance Applicab Q2 & H1 FY 19 ABSTRACT Infra Rs in Mn 3% Polymer 9% Segment Financial Summary Q2 FY'19 Q2 FY'18 Change % H1 FY'19 H1 FY'18 Change % Net Revenue 4,776.1 4,633.7 3.1% 8,817.0 7,994.8 10.3% Engg Products EBITDA (without Forex) 526.5 599.7 -12.2% 1,004.6 940.3 6.8%
Slide 33: Balance Sheet
Balance Sheet ABSTRACT Figures based on Ind AS Rs in Mn Debt Details Particulars 31.03.18 30.9.2018 31.03.18 30.9.2018 Shareholders Funds Share Capital 102.6 102.7 Networth 6,373 6,247 Reserves & Surplus 6,270.2 6,144.6 Net Debt 4,796 6,351 Total 6,372.8 6,247.3 Net Debt Equity Ratio 0.75 1.02 Debt
Slide 34: Engineering Products – Order Inflow
Engineering Products – IND AS - Applicab ABSTRACT Order Inflow (July – Sep 2018) • Order Intake of Rs 410 Crores in Q2 FY’19 for engineering products supply from Power Grid Corporation of India Limited (PGCIL), SEB’s & Railway Projects and for various supplies across South America & South East Asia.
Slide 35: Awards
AWARDS Awards Recent Felicitations AWARD: AWARD: AWARD: AWARD: THE LARGEST TOWER SUPPLIER EMERGING POWER GLOBAL HR EXCELLENCE NO. 1 EMERGING BRAND IN FOR 3rd CONSECUTIVE YEAR EPC PLAYER GIVEN BY: POLYMER PIPES & FITTINGS GIVEN BY: GIVEN BY: WORLD HRD CONGRESS GIVEN BY: POWER GRID CORPORATION EPC WOR
Slide 36: Thanks
Thanks Disclaimer: This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusi