Investor Presentation Q4FY16/FY16 - Pennar · Investor Presentation Q4FY16/FY16 . ... Shrivari Energy, Bhushan Power & Steel, Thiraviam ... Pennar Q4FY15 INV PPT Author: Vinay

PENNAR INDUSTRIES LIMITED

Pennar Industries Limited

Investor Presentation

Q4FY16/FY16

Disclaimer

This presentation contains “forward looking statements” including, but without limitation, statements relating to

the implementation of strategic initiatives, and other statements relating to Pennar Industries Limited and its

subsidiary companies’ (“Pennar”) future business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations concerning the

development of our business, a number of risks, uncertainties and other unknown factors could cause actual

developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory

trends, movements in currency exchange and interest rates, competitive pressures, technological developments,

changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors

that could affect our business and financial performance.

Pennar undertakes no obligation to periodically revise any forward looking statements to reflect future / likely

events or circumstances.

PENNAR INDUSTRIES LIMITED 2

Agenda

1. Q4FY16 & FY16 Performance Financial Performance

Segment Performance

Segment Composition

Segment Highlights

2. Pennar Group Business Segments, Subsidiaries

Distributed Manufacturing

Business Structure

Leadership Team

Share Price Movement

3 PENNAR INDUSTRIES LIMITED

Q4FY16/FY16 Performance

Financial Performance – FY16

Consolidated Standalone

5

Net Revenues (Rs. Crores) and EBITDA margins (%)


1,270.8

1,310.1 9.5%

11.6%

1,230.0

1,250.0

1,270.0

1,290.0

1,310.0

1,330.0

1,350.0

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

FY15 FY16

829.4

873.7

8.5%

9.3%

790.0

800.0

810.0

820.0

830.0

840.0

850.0

860.0

870.0

880.0

890.0

5.0%

7.0%

9.0%

11.0%

FY15 FY16

Financial Performance – Q4FY16

Consolidated Standalone

6

Net Revenues (Rs. Crores) and EBITDA margins (%)


368.6 343.7

352.4

12.8%

11.2%

14.9%

Q4FY15 Q3FY16 Q4FY16

234.3 225.8 243.2

10.3%

9.1%

10.1%


Q4FY16 Segment performance Net Revenues (Rs. Crores) and

EBITDA margins (%)


89.9

77.3

91.0

7.3%

6.4% 6.2%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

0

20

40

60

80

100


Steel Products

35.8 33.9

41.2

7.7% 7.5%

8.2%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%10.0%11.0%12.0%

0

10

20

30

40

50


Tubes

17.8

12.6

17.6

15.9% 15.1%

17.3%

8.0%9.0%10.0%11.0%12.0%13.0%14.0%15.0%16.0%17.0%18.0%19.0%20.0%

0

5

10

15

20


Industrial Components

81.7

94.8 86.2

13.8%

11.6%

14.4%

6.0%7.0%8.0%9.0%10.0%11.0%12.0%13.0%14.0%15.0%16.0%

0

20

40

60

80

100


Systems & Projects

Steel Products

37%

Tubes 17%

Systems & Projects

35%

4%

11%

6%

5%

2%

10%

12% 5%

14%

21%

7% 3%

General Engg

Automobile

Buildings

Auto

Infrastructure Profile

Others

ERW Tubes CDW Tubes

Solar

Railways

Industrial Components Scrap

Segment Composition – Industry-wise breakup


Percentage of Standalone Revenues for Q4FY16

Segment Highlights - Steel Products

Sales for Q4FY16 is at

Rs. 91 Crores

Customers -

CRSS ~ 100, CRFS ~

75

6.2 %

EBITDA Margin


89.9

77.3

91.0

7.3%

6.4% 6.2%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

0

20

40

60

80

100


Steel Products

CRFS Orders :-

Hamon

Helious Infra

Bhavani Erectors

Elecon EPC Projects

Gammon India

L&T

RR Construction

Repeat Orders from IVRCL, Phoenix Construction & Powermech Projects for various projects.

CRSS Orders:-

Monthly schedule from regular customers.

Also from IFB Industries, LGB, Toshiba, Luk India

New customers added

Shrivari Energy, Bhushan Power & Steel, Thiraviam Engineering, Bhavani Erectors, Elecon EPC Projects, CIPL JVK, Emenent Engineers.

Segment Highlights – Tubes

Major Customers

Auto, Power, General Engineering, Textile, Earth Moving Equipment industries

VECV, Mahindra, Gabriel, Endurance, Bajaj, Hyundai, TVS, Thermax, Reiter, LMW, Isgec, Rajwest, Hindalco, Tata Vendors

New Customers added

Tenneco, Rajshriya, Sigma Electric, SPIC, Mega Rubber, Kerala Automobiles, Thai Summit, Indian Rubber, Susira and Presscomp

5% of total billed qty. is from new customers added in Q4

New Products in Development

Market Share

ERW: 5%; CDW: 6%

10 new customers

added

70% of orders from

regular major OEA’s


Propeller Shaft

Front Fork

Drag Links Tubes

35.8 33.9

41.2

7.7% 7.5%

8.2%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%10.0%11.0%12.0%

0

10

20

30

40

50


Tubes

Segment Highlights - Industrial Components Expansion in the business with existing customers like

WABCO and FSTVS

Major Customers

Emerson Climate Technologies, Tecumseh, India Nippon Electricals, Endurance, Wabco, FSTVS, Xylem & Bailey

Outlook

The Bailey business is expected to increase with new cylinder variants

Based on Bailey’s success, in the process of developing a hydraulic requirement from Cargotec.

New projects like the Yoke (Comstar), Torque Arm (Bonfiglioli), Strainer (Xylem), Agri-components (TAFE), Rollers (HP), Beadplate (Firestone - USA), Piston, NPP and APP (Knorr Bremse - Czech) and Hydraulic Cylinders (Cargotec), are all expected to add to the growth of this vertical.

Sales for Q4FY16 is at

Rs. 17.6 crs

Capacity Utilisation

Chennai - 90%

Patancheru - 65%

10 new projects active


17.8

12.6

17.6

15.9% 15.1%

17.3%

8.0%9.0%10.0%11.0%12.0%13.0%14.0%15.0%16.0%17.0%18.0%19.0%20.0%

0

5

10

15

20



In Railways vertical, repeat orders were booked from Integral Coach Factory, Modern Coach Factory, Texmaco Rail & Engineering Ltd., Hindustan Engineering India Ltd., and BEML Ltd

Major Solar Customers

Sterling & Wilson, L&T, Mahindra Susten, Nuevosol, Sun Edison, Acme, Tata Power India Ltd

Received Solar orders from -

Belectric

L&T

Sun Mount

Nuevosol

New Customers added

Sun Mount Engineering & Simha Solutions

New Products added

2mm Thickness Bare galvalume Hat sections

Segment Highlights - Systems & Projects

14.4 %

EBITDA Margin

Solar is 21% of

segment standalone revenues

Railways is 14% of

segment standalone revenues


81.7

94.8 86.2

13.8%

11.6%

14.4%

6.0%7.0%8.0%9.0%10.0%11.0%12.0%13.0%14.0%15.0%16.0%

0

20

40

60

80

100


Systems & Projects

Subsidiary Highlights – PEBS Major Orders

L&T Construction, TVS Infrastructure, Gamesa, My Home, Hetero Drugs, Annora Pharma, Himedia Laboratories, SRR Projects, RKV Developers, Indus Projects, Ashapura Group, Avenue Supermarts

In Engineering Services, received new orders from Tekla Structures and Dollar General

Expansion

Presently increasing manpower at Vishakhapatnam office to provide engineering services to our US-based clients

Third-party Baroda factory taken for production (on job-work basis model) – Orders in and around Madhya Pradesh, Gujarat and North are being manufactured at this facility

Board has approved the signing of a term sheet with an engineering services firm.

Order book at

Rs. 424 Crs

Current Manpower for

NCI Jobs – 84 at both locations

PENNAR INDUSTRIES LIMITED 13

Subsidiary Highlights – Pennar Enviro Major Orders Hetero Labs, Gammesa, Lanco Infratech Ltd , Illioss

Power and Snehi Engineers

Repeat orders from Hetero, Lanco, Mishra Dattu

Nigam Ltd. and Balaji Paper & Newsprint

Future Outlook

Focus on the Municipal segment and large value jobs

with the help of JVs.

Repeat Orders from Existing clients

New Customers

3 in Projects, 6 in

Chemicals & 4 in O&M

13 New customers


Pennar Group

30 YEARS OF

EXPERIENCE

1,000 PRECISELY

ENGINEERED

PRODUCTS

500 CUSTOMERS

2,000 EMPLOYEES AND

GROWING !

2,500 TOOLS &

DIES

Business Segments, Subsidiaries

STEEL PRODUCTS

• Automobiles

• General Engineering

• Infrastructure

• White Goods

• Automobiles

• Industrial

• White Goods

• Hydraulics

• Pre-engineered building structures

• Warehouses

• Airports and aircraft hangers

• Turnkey buildings

• Leak proof roofing sheets

• EPC turnkey solutions - water and waste water treatment viz. WTPs, STPs, ETPs, ERPs, ZLDPs

• Manufacture and supply of fuel additive and water treatment chemicals

INDUSTRIAL COMPONENTS

• Railways: Coaches and Wagons

• Solar: Mounting Structures

SYSTEMS & PROJECTS

• Automobiles

• Power

TUBES


Distributed Manufacturing

Coaches

Components/ Hydraulics

Auto Profiles

Building Products

CRSS Railway Components

ESP/ Building Products

Sheet Piles/ Solar

Press Components

ESP Auto Profiles

Solar

Building Products

CRSS

Profiles Solar

ERW/ CDW Tubes

Tarapur Chennai

Patancheru Isnapur 4 Locations

Profiles Fabrication


Business Structure

19

Pennar Industries Limited Segments: Steel Products; Tubes;

Systems & Projects; Industrial

Components.

Pre-engineered building

systems (PEBS); Roof Top

Solar, Solar EPC.

Industrial water treatment

solutions, Water treatment

chemicals and Fuel additives.

Market Cap as of March 31, 2016 (BSE): ~Rs. 569 Crores


Leadership Team

Leadership Team

Nrupender Rao

Executive Chairman

Pennar Group

Aditya N. Rao

Vice Chairman,

Managing Director,

Pennar Industries

P. V. Rao

Managing Director

PEBS Pennar

Shreepad Purkar

President and CEO

Pennar Enviro

Y Narasimha Rao

Steel Products

M. Bhoopal Reddy

Tubes

Shiva Kumar K


Business Heads

20

Dayasagar Rao

Operations


Share Price Movement

21

*Rebased to 100


60

70

80

90

100

110

120

130

140

Pennar Industries Sensex BSE Small Cap

Investor Contacts

22

Contact Details:

Pennar Industries Limited

Floor: 3, DHFLVC Silicon Towers

Kondapur, Hyderabad - 500 084, Telangana

CIN : L27109AP1975PLC 001919

Investor Relations - [email protected]


mailto:[email protected]

Documents

Investor Presentation Q4FY16/FY16 - Pennar · Investor Presentation Q4FY16/FY16 . ... Shrivari Energy, Bhushan Power & Steel, Thiraviam ... Pennar Q4FY15 INV PPT Author: Vinay