Carysil Limited · NSE:CARYSIL
Carysil — Acrysil — Q1 FY21 Earnings Presentation
42 slides from Carysil's earnings presentation, August 2020
Slide 1: Leader in Lifestyle Kitchen Products
Leader in Lifestyle Kitchen Products August 2020
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Acrysil Limited. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Q1 FY21 Highlights
Q1 FY21 Highlights
Slide 4: Q1 FY21 Performance
Q1 FY21 Performance “Efficiency drive EBITDA Improvement by 320 bps on y-o-y basis to 21%” Key Highlights Comments from Chairman & MD “The first Quarter of FY21 has been impacted due to Covid led lockdown which • Company reported profit of Rs. 4.6 crores for Q1 FY21 impacted Revenue and Profitabilit
Slide 5: Q1 FY21 Standalone Performance
Q1 FY21 Standalone Performance Rs. Crores Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) -2.3% +13.0% -33.3% 54.2 8.7 8.5 4.0 3.6 36.2 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) -27.6% +37.2% +136.3% 49.9 8.5 4.0 36.2 6.2 1.7 Q4FY20 Q1FY21 Q4FY
Slide 6: Efficiency led to Margin Improvement
Efficiency led to Margin Improvement Gross Margin (%) EBITDA Margin (%) PAT Margin (%) +790 bps +750 bps +450 bps 57.9% 23.6% 11.1% 50.0% 16.1% 6.6% Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Gross Margin (%) EBITDA Margin (%) PAT Margin (%) +550 bps +1120 bps +770 bps 57.9% 23.6% 11.1% 52.4% 1
Slide 7: Quarterly Performance – Standalone Performance
Quarterly Performance – Standalone Performance Rs. Crores Revenue* EBITDA PAT 54.2 55.4 55.4 8.7 8.8 8.8 8.5 4.5 4.5 49.9 4.0 3.6 36.2 6.2 1.7 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Domestic Revenue* Exports Revenue* -55.6% -21.5% 17.
Slide 8: Q1 FY21 Consolidated Result Highlights
Q1 FY21 Consolidated Result Highlights Rs. Crores Revenue (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) -32.4% -20.5% -20.5% 68.0 12.2 5.8 9.7 4.6 46.0 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Gross Margin (%) EBITDA Margin (%) PAT Margin (%) +340 bps +320 bps +150 bps 49.9% 53.3% 21.2% 10.0% 18.0
Slide 9: Quarterly Performance – Consolidated Performance
Quarterly Performance – Consolidated Performance Rs. Crores Revenue* EBITDA PAT After MI 70.7 73.2 12.2 12.2 12.3 6.8 68.0 64.4 9.7 5.8 5.6 9.6 46.0 4.6 3.9 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Domestic Revenue* Exports Revenue* -65
Slide 10: Consistent Growth
Consistent Growth Rs. Crores Revenue EBITDA 276 +17.2% 252 46 +16.5% 40 181 197 174 29 127 24 26 26 106 19 FY14 FY15 FY16 FY17* FY18* FY19* FY20* FY14 FY15 FY16 FY17* FY18* FY19* FY20* PAT After MI Cash PAT After MI 22 34 +19.1% +18.1% 17 26 12 19 11 16 8 9 8 13 13 14 FY14 FY15 FY16 FY17* FY18* FY19
Slide 11: Revenue Mix
Revenue Mix Geography-wise Revenue Product-wise Revenue FY20 Export 11% 73% 26% Domestic 16% 74% Quartz Sink Steel Sink Appliances & Others Q1 FY21 5% 95% 9% 79% 12% Strengthening ‘Carysil’ Brand Quartz Sink Steel Sink Appliances & Others 11 Consolidated Financials
Slide 12: Standalone Profit & Loss
Standalone Profit & Loss Particulars (Rs. Crs.) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q FY20 Revenue 36.2 54.2 -33.3% 49.9 -27.6% 214.4 Raw Material 15.2 27.1 23.7 103.7 Employee Expenses 3.3 3.7 4.5 16.7 Other Expenses 9.1 14.7 15.5 62.0 EBITDA 8.5 8.7 -2.3% 6.2 37.2% 31.9 EBITDA Margin (%) 23.6% 16.1% 12
Slide 13: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crs.) Q1FY21 Q1FY20 Y-o-Y Q4FY20 Q-o-Q FY20 Revenue 46.0 68.0 -32.4% 64.4 -28.6% 276.2 Raw Material 21.5 34.1 30.9 137.4 Employee Expenses 4.2 5.2 5.9 22.2 Other Expenses 10.5 16.6 18.0 70.3 EBITDA 9.7 12.2 -20.5% 9.6 1.1% 46.4 EBITDA Margin (%) 21.2% 18.0
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Mar-20 Mar-19 Liabilities (Rs. Crs.) Mar-20 Mar-19 Non-current assets 138.8 126.7 Total Equity 160.2 136.5 Property Plant & Equipment 97.8 94.2 Share capital 5.3 5.2 Right to use of assets 1.4 0.0 Other Equity 152.5 127.7 Goodwill 23.9 23.5 Minority Inter
Slide 15: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. Crs.) Mar-20 Mar-19 Net Profit For The Year 22.9 17.5 Adjustments for: Non-Cash Items / Other Investment or Financial Items 29.1 23.0 Operating profit before working capital changes 51.9 40.5 Changes in working capital -14.4 -22.7 Cash generated from
Slide 16: COVID-19 Business Update
COVID-19 Business Update Business Operations: Demand for its products/ services: • From April 14, 2020 partially started manufacturing Supply Chain: operations to meet export orders backlog • Demand in export market is adequate however domestic demand is expected to improve once the • We have not ob
Slide 17: Safety measure implemented to fight against Covid-19
Safety measure implemented to fight against Covid-19 Work from Home • Implemented work from home during the nationwide lockdown • Post lockdown we have re-started Corporate offices with limited workforce • Bhavnagar plant is operating in 3 shifts Sanitization & Social Distancing at workplaces • Regu
Slide 18: Incorporation of a Wholly Owned Subsidiary
Incorporation of a Wholly Owned Subsidiary • Acrysil has incorporated a Wholly Owned Subsidiary (WOS) namely “ACRYSIL USA Inc” under Business Corporation Law of the State of New York • It was incorporated on April 30, 2020 • Major purpose is for expansion of our presence in USA. The Subsidiary will
Slide 19: Strengthening “STERNHAGEN” Brand
Strengthening “STERNHAGEN” Brand “Unveiling the new Rose Gold collection of Premium Sanitary ware and Bath fittings” 19
Slide 20: Strengthening “STERNHAGEN” Brand
Strengthening “STERNHAGEN” Brand • Acrysil has signed an agreement with Farah Ali Khan a well-known Jewellery Designer and Indian Gemologist for their brand Sternhagen • Farah Ali Khan has been designing the jewellery for India’s top business families and famous Bollywood stars. • The Company will p
Slide 21: Business Overview
Business Overview
Slide 22: Numero Uno Position
Numero Uno Position India’s 1st state of art Show Room Only manufacturer in India & cum Experience Center in Exclusive product galleries for Asia in Quartz Sink Ahmedabad & Mumbai ‘Carysil’ Certification for ISO 9001:2008, ISO Quartz Sink Capacity : 500,000 sinks Brands - “CARYSIL” & per annum in FY
Slide 23: Acrysil – Over the Years
Acrysil – Over the Years Today, Acrysil is India’s only indigenous brand of kitchen sinks made of Quartz Acrysil started its first 2020 international subsidiary in 2019 Incorporation Germany – of a Wholly Acrysil GmbH. owned Launched 2018 Started Entered into Subsidiary Kitchen commercial an agreeme
Slide 24: Pillars of Integrated Business
Pillars of Integrated Business Brand Manufacturing Facilities & Technology ▪ Brand promotion on TV and in print, along with exposure ▪ Quartz Sinks: 500,000 pa , Stainless Steel : 75,000 pa and through sponsorship of events like Times Food and Appliances : 7,000 pa MasterChef Australia ▪ Enjoy in-ho
Slide 25: Increasing Product Portfolio
Increasing Product Portfolio Product Segment Kitchen Bathroom Suits Bath Sinks Appliances Fittings APPLIANCES 25
Slide 26: Sinks
Sinks
Slide 27: Only Company to make Quartz Sinks in Asia
Only Company to make Quartz Sinks in Asia Capacity of Quartz Sinks (per annum) The only company in all of Asia and among a few companies worldwide: High Margin manufacturing quartz kitchen sinks to global standards of Product quality, durability and visual appeal 5,00,000 4,00,000 3,25,000 Asset Tur
Slide 28: Stainless Steel Sinks – Quadro Sinks the Focus Area
Stainless Steel Sinks – Quadro Sinks the Focus Area Stainless-Steel Sinks Contribution: 12% to Consolidated revenue * Production Capacity : 75,000 sinks per annum Target Market for Quadro (Designer) Sinks: Caters to high end segment who are willing to pay a premium for superior quality, design and f
Slide 29: Kitchen Appliances
Kitchen Appliances
Slide 30: Kitchen Appliances – Multifold Growth Opportunity
Kitchen Appliances – Multifold Growth Opportunity Poised to become a significant player in the overall Kitchen Segment: Manufacturing and Trading of Appliances Chimneys Dish Washer Cook Tops Expansion of Appliances Range Currently Constant Innovation, Research, contributing ~4% Development & Design
Slide 31: Bath Segment
Bath Segment
Slide 32: Bath Segment – Synergetic Move to Leverage Quartz Technology
Bath Segment – Synergetic Move to Leverage Quartz Technology Achievements Won 52 international awards, among them the Red Dot Award (Best of the Best) ✓ Brand owned by Acrysil’s Wholly owned Subsidiary in Germany, ‘Acrysil Synergy GmbH’ Synergy in Quartz Sink Technology helped in developing patented
Slide 33: Products with Global Standards sold in 55 Countries
Products with Global Standards sold in 55 Countries Company presently exports to over 55 countries. Plan to expand further by acquiring new customers and penetrating in new geographies Sales Network Global Offices 33 Map not to scale. All data, information and maps are provided “as is” without warra
Slide 34: Domestic Presence - Strengthening of our Brands
Domestic Presence - Strengthening of our Brands Dealer Network 1500 1500 1300 1200 800 550 400 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-2020 Distributor Network 80 82 82 60 65 ARABIAN BAY OF 45 SEA BENGAL 30 Sales Distributor 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-2020 34 M
Slide 35: Moulds an Integral Part of Manufacturing Process
Moulds an Integral Part of Manufacturing Process Input Processing Output Variety of Moulds Production Capacity ▪ Has more than 130 moulds 500,000 units per ▪ 350+ SKU’s annum All the Moulds are imported Place: Bhavnagar, Gujarat Purchase of Moulds A Mould can be Made as per the utilized for 15+ year
Slide 36: Presence in UK through Acrysil Products Ltd.
Presence in UK through Acrysil Products Ltd. (formerly known as Homestyle Products Ltd.) Acrysil holds 100% in Homestyle Products through Acrysil UK Limited The name of Homestyle Products Limited has been changed to Acrysil Products Limited Products sold under Acrysil Products Ltd. Revenues (Mn. GBP
Slide 37: Our Distribution Model
Our Distribution Model International Domestic Strong Foothold in India STRATERGIC Acquisition of 65 Franchise Significant Presence in UK 1,500 Dealers 80 Gallery Homestyle UK Limited Shop (now known as Acrysil Products Limited - A Market kitchen products distribution company) 82 Distributors 5 Offic
Slide 38: Multiple Growth Drivers
Multiple Growth Drivers 01 Strong Distribution 02 Branding & 03 Huge Product Network Technology Range Short Term Strengthen the Distribution Entry into the kitchen network by tie up with Focused on capturing appliances market with Homestyle and plan to add the Brand Mindspace innovation, R&D and new
Slide 39: Board of Directors
Board of Directors Mr. Chirag A. Parekh Mr. Jagdish R. Naik ▪ A Chartered Accountant, was a partner of a reputed ▪ He holds a BBA Degree from premier ' European University’ Accounting firm - M/s S.V. Ghatalia & Associates for more than ▪ After joining the company in 1993, he successfully steered it
Slide 40: Awards & Certifications
Awards & Certifications Award Certificate for Manufacturing Innovation & Design If Design Award to Sternhagen SaniQ kristall wash basin FGI’s Award for ‘Best Exports Performance & Promotion’ IPF Fastest growing Manufacturing Company Award Certificate for ‘Best CSR practices’ by Rotary Club FGI’s Awa
Slide 41: Regular Dividend Payout
Regular Dividend Payout Dividend 21.2% 22.8% 27.8% 21.7% 18.1% 14.3% Payout (excl. DDT) 21.9 18.9 18.0 8.4 6.6 5.0 5.0 4.6 4.0 1.0 1.2 1.2 2015 2016 2017 2018# 2019# 2020# EPS DPS 41 *EPS for FY17 is on basis of I-GAAP Financials #Adjusted for Split from Face value of Rs. 10 to Face value of Rs. 2
Slide 42: ACRYSIL LIMITED
ACRYSIL LIMITED For further information, please contact Company : Investor Relations Advisors : Acrysil Limited Strategic Growth Advisors Private Limited CIN: L26914MH1987PLC042283 CIN: U74140MH2010PTC204285 Mr. Anand Sharma - CFO Ms. Neha Shroff/ Ms. Khushbu Shah [email protected] [email protected]