Skipper Ltd · NSE:SKIPPER
Skipper — Q2 FY2023 Earnings Presentation
28 slides from Skipper's earnings presentation, Nov 12, 2022
Slide 1: Skipper Limited Investor Presentation Q2 & H1 FY'23 Results
Q2 & H1 PERFORMANCE, 2022 - 23 SKIPPER LIMITED INVESTOR PRESENTATION Q2 &H1 FY’23 Results 12th November, 2022
Slide 2: Disclaimer
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-inclusive or to
Slide 3: Who We Are
WHO WE ARE Company is India’s largest and world's only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC. 3
Slide 4: Skipper: One-Stop Solution Provider
PRODUCT OFFERINGS SKIPPER: ONE -STOP SOLUTION PROVIDER Engineering products Polymer products Infrastructure projects Capacity: 300,000 MTPA Capacity: 51,000 MTPA M I S S•I Transmission ON Line EPC • Power Transmission Tower • UPVC Pipes • Railway Electrification EPC • Power Distribution Poles • CPVC
Slide 5: Performance Update Q2 & H1 FY'23
SKIPPER LIMITED Performance Update Q2 & H1 FY’23 Update
Slide 6: Stand Alone Financial Performance Q2 FY'23
Stand Alone Financial Performance Q2 FY’23 Rs in Mn YoY QoQ Sl Profit & Loss Summary Q2 FY’23 Q2 FY’22 Q1 FY’23 Change % Change % 1 Revenues 4,620.0 4,792.9 -3.6% 4,160.9 11.0% 2 Operating EBITDA (without forex) 519.7 358.2 45.1% 490.9 5.9% Operating EBITDA Margins (%) 11.2% 7.5% + 377 Bps 11.8% -55
Slide 7: Stand Alone Financial Performance - H1 FY'23
Stand Alone Financial Performance - H1 Fy’23 Rs in Mn Sl Profit & Loss Summary H1 FY’23 H1 FY’22 Change % 1 Revenues 8,780.9 7,539.3 16.5% 2 Operating EBITDA (without Forex) 1,010.5 476.5 112.1 % % of Revenue 11.5% 6.3% +520 Bps 3 (+) Other Income 23.2 18.9 4 (-) Depreciation 240.2 241.1 5 (-) Finan
Slide 8: Performance Highlights – H1 FY'23
PEFRORMACE HIGHLIGHTS – H1 Fy’23 Strong Revenue Performance across major business segments Rs in Mn Rs in Mn Stand Alone - Revenue Segment - Revenue 8,781 17% 9,000 + 15 % 7,539 8,000 6,895 7,000 5,991 6,000 5,000 + 25 % 4,000 3,000 1,592 1,275 +8% 2,000 1,000 295 273 0 H1 FY '23 H1 FY'22 Engg Polym
Slide 9: Key Performance Highlights and Order Book Highlights
B U S I N E S S U P D AT E – Q 2 & H 1 F Y ’ 2 3 Performance Update Key Performance Highlights Strong revenue performance across major business segments in spite of inflationary cost push and geo- political related challenges; Stand Alone Operating EBITDA margins improved to 11.2% in compare to
Slide 10: Performance Highlights
PEFRORMACE HIGHLIGHTS Q4 Fy’22 Revenue performance improved on account of - Q2 & H1 Fy’23 EBITDA Margin improved on account of - Increased share of Engineering export business and parting away with majority of old legacy and CIF contracts aided to better margin performance in engineering business:
Slide 11: Consistent & Improved Operating Margin Performance
IMPROVEMENT TRENDS Consistent & Improved Operating Margin Performance 15.0% 11.8% 10.9% 11.2% 10.1% 10.0% 7.5% 5.0% 4.3% 0.0% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Stand Alone Operating EBITDA (Without Forex) Note: Operating EBITDA is net of Forex derivative gain / (loss) 11
Slide 12: Segment Performance Q2 & H1 FY'23
SEGMENT REPORT Segment Performance Q2 & H1 FY’23 Rs in Mn Infra 3% Segment Profit & Loss Summary Q2 FY'23 Q2 FY'22 Change % H1 FY'23 H1 FY'22 Change % Net Sales 3,798.4 3,943.8 -3.7% 6,894.6 5,991.3 15.1% Engg EBITDA - Operating 505.7 413.1 22.4% 926.7 524.7 76.6% Products Polymer % of Sales 13.3% 1
Slide 13: Efficient Debt Management
Efficient Debt Management Rs in Million Debt Details 30.09.2022 30.09.2021 Inc / (Dec) Long Term Debt 2,269 2,059 210 Current Maturities of Long 639 648 (9) Term Debt Total Long Term Debt 2,908 2,707 201 Short Term Debt 2,945 3,576 (631) Gross Debt Level 5,853 6,283 (430) Debt Equity Ratio (X) 0.79
Slide 14: Engineering Products – Order Book Composition – Sep 2022
ORDER BOOK PIE Engineering Products – Order Book Composition – Sep 2022 Total Order Book Segment Break up Rs 21,630 million Domestic 55% 45% 29% Order Breakup Export 45% 14% 12% Domestic Export PGCIL SEB & Others Export Non T&D Domestic Non T&D Products - Telecom, Railways, Solar, Fasteners & other
Slide 15: Consistent Order Inflow
Consistent Order Inflow Engineering Products – Order Inflow Composition • New Order Intake of Rs 4,605 million in Q2 FY’23 and YTD inflows of Rs 8,630 million for engineering products supply from PGCIL, SEB’s , South East Asia, Asia Pacific, Middle East, Africa & LATAM Export markets and Non T&D pro
Slide 16: Strong Bidding Pipeline
Strong Bidding Pipeline Highest Ever Bidding Pipeline of 105,000 Million as on 30th Sep 2022; International – 54,000 Mn & Domestic - 51,000 Mn • Expecting International Ordering & Execution to gain pace in H2 FY’23 ; • In advanced Stages of negotiation to secure some good size International contract
Slide 17: Skipper's Polymer Business
P O LY M E R P R O D U C T S S E G M E N T SKIPPER’S POLYMER BUSINESS Polymer Plants invested Guwahati Fittings Among few Indian One of few Indian manufacturing state-of-the-art Plant enjoys tax companies assured companies with capacity of 51,000 manufacturing exemption of CPVC for pipes NSF certifi
Slide 18: Our USP: Theory of Constraints
THEORY OF CONSTRAINTS OUR USP • Partnering benefits: • Exponential Sales Growth & Gain in Market Share Skipper is the only Indian polymer pipe company to • Robust Processes & Systems in place to improve implement Theory of profitability Constraints (TOC) approach in an organized • Consistent availab
Slide 19: Polymer Highlights
Polymer Highlights Polymer – Improving Revenue Performance Major Highlights TTM Revenue of Rs 3,517 million Only Polymer Pipe company in India to implement TOC into its operation Growing National Presence ; Deriving 85 % of overall revenue through 1,592 25 % TOC channel network Rs in Miilion 1
Slide 20: Performance Outlook
Business Outlook PERFORMANCE OUTLOOK Company expects to clock high double digit annual revenue growth in Fy’23 on back of strong pending execution of engineering contracts and strong polymer segment performance ; Going forth most of the engineering revenue execution will take place from newer co
Slide 21: Shareholding Pattern
Shareholding Pattern Shareholding pattern Major Institutional Shareholders a s o n 3 1 st O c t o b e r 2 2 A s o n 3 1 st O c t o b e r 2 2 Name % Promoters Baillie Gifford - Pacific Horizon 4.3% 71.89% Investment Trust Ocean Dial Asset Management India 4.1% Foreign (ICGF) Portfliio Investors Crux
Slide 22: Future Ready
SKIPPER 0 © GK Le SKIPPER } =] ok R&D Future Ready
Slide 23: Focus on Growing Exports
EXPLORING NEW GEOGRAPHIES FOCUS ON GROWING EXPORTS • Optimistic outlook: Positioned to grow exports to 50% of Engineering revenue in current year (FY’23) and to 75 % by International certifications next year (FY’24). Certification Country • Opportunity-ready: Certified by prominent international CFE
Slide 24: Leadership Position
LEADERSHIP POSITION S K I P P E R I S C L E A R LY P O I S E D T O B E I N T H E W I N N I N G S P O T I N T H E I N T E R N AT I O N A L T & D S E C T O R • Skipper is the highest accredited manufacturers in India for supplying to global markets • Largest and lowest cost manufacturer out of India a
Slide 25: Telecom Sector
TELECOM SECTOR TELECOM TOWER • India needs around 800,000 additional towers to address digital growth and 5G Roll out China 1.4 bn 1.94 mn • National Telecom Policy aims to inspire $100 bn investment in Customers Telecom tower five years • India’s 30 per cent broadband penetration leaves large headr
Slide 26: Leadership Position in the Telecom Sector
LEADERSHIP POSITION S K I P P E R I S C L E A R LY S E T T O B E I N T H E W I N N I N G S P O T IN THE TELECOM SECTOR • Large engineering capacity to support manufacturing of Telecom structures • Proximity to focus Telcos markets - East & North East • Tie up with one of world's leading tower design
Slide 27: Transmission Line Tower Testing Station
T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n Skipper boasts of India ‘s largest Tower & Monopole Load Testing Station - • All new large T&D projects in domestic markets now comes along with Design and Load testing scope; • Our new R&D centre will give us distinct advantage ove
Slide 28: Contact
For any queries please contact: Aditya Dujari (Investor Relations) Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017 E-Mail: [email protected] Tel: + 91 33 2289 2327/5731 Mobile: 9830806906 28