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

PENNAR INDUSTRIES LIMITED

Pennar Industries Limited

Investor Presentation

Q3FY16

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.

2 PENNAR INDUSTRIES LIMITED

Agenda

1. Q3FY16 Performance Financial Performance

Segment Composition

Segment Highlights

2. Pennar Group Business Segments, Subsidiaries

Distributed Manufacturing

Business Structure

Leadership Team

Shareprice Movement


Q3FY16 Performance

Financial Performance – Q3FY16

Consolidated Standalone

5

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


306.5 339.8 343.7

8.4%

10.1% 11.2%

Q3FY15 Q2FY16 Q3FY16

205.0 217.5 225.8

7.88% 8.99% 9.03%


HIGHLIGHTS

EBITDA Margin expands to double-digit at Consolidated level.

Segment Composition – Industry-wise break-up


Steel Products

21%

Tubes 9%

Pre-Engineered Buildings

Pennar Enviro 3%

6%

3%

3%

6%

6%

3%

7%

19% 3%

2%

31%

8%

General Engg Automobile

Buildings

Auto

Others

ERW Tubes

CDW Tubes

Solar

Railways

S&P

25%

Industrial Components

Scrap

Percentage of Consolidated Revenues for Q3FY16

Segment Highlights - Steel Products Quarter performance CRFS Orders :-

Received orders from Hamon, Thermax for Collecting electrodes

Received orders Tata Projects, Phenix Construction Tech, Taiin Steel Fab for Deck & Roofing Sheets.

Received orders from Rithwik Projects, HCC for Sheet Piles.

New customers added

Turbovent, NFF Industrial Corporation, Taiin Steel Fab, Phenix Construction Tech.

New Products added

Sales for Q3FY16 is at

Rs. 77.3 crs

4 New Customers added

6.4 % EBITDA Margin

PENNAR INDUSTRIES LIMITED 7

4mm thickness IS2062 Top Hangers – Thermax Ltd.

98.9 92.2

77.3

6.2% 5.9%

6.4%

4.0%

5.0%

6.0%

7.0%

8.0%

0

20

40

60

80

100

120


Steel Products

Segment Highlights – Tubes Major Customers

Auto, power, general engineering, textile and earth moving equipment industries.

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

New Customers added

M/s.Tenneco, M/s.Rajshriya, M/s.Sigma electric, M/s.SPIC, M/s.Mega rubber, Kerala Automobiles, Thai summit, Indian rubber, Susira, Presscomp.

Approximately 5% of total billed quantity is from new customers added in Q3.

210 + customers in

domestic & exports

10 new customers

added

70% of the orders –

from major OEAs


32.8 34.2 33.9

7.1% 7.4% 7.5%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

5

10

15

20

25

30

35

40


Tubes

Segment Highlights - Industrial Components Quarter Performance Wabco schedule has increased from Rs. 40 lacs per

month to Rs. 100 lacs per month.

Major Customers

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

New Customers

FSTVS, Yamaha, Bailey Hydraulics and Letrika Roots.

Outlook

Based on Bailey’s success, taken up hydraulic requirement from Cargotec – under development.

Farm sector is doing well, we plan to crack this segment through with leading tractor manufacturers in the country.

With the new addition of 260T Link Motion Press, we are exploring new business opportunities with several auto companies.

Sales for Q3FY16 is at

Rs. 12.6 crs

White Goods Share of

Business - 75%


4 new customers

added

15.7 16.7

12.6

14.0% 14.9% 15.1%

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%21.0%22.0%

0

5

10

15

20



Segment Highlights - Systems & Projects (Railways) Quarter Performance Ramped up the production of Stainless Steel Coach

Supplied during Q3.

Railways – Major orders Wagon Builders, BEML for DMRC RS13 project

Outlook To supply 25+ Coaches per month with the installation

of new Spot Welding Machine at Chennai plant and Laser Cutting Machine at Patancheru plant.

Production of stainless steel coaches to increase futher in Q4..

ICF approval for Patancheru plant is under process for manufacturing and supply of Stainless Steel Sidewall & Roof Assemblies.

S&P (Railways + Solar) sales for Q3FY16 at

Rs. 94.8 crs

Rs 35 crs orders for

coach applications in pipeline for Q4


Rs 46 crs orders for

various Coach Applications in Q3

20.8

32.6

24.3 16.1%

18.9%

19.3%

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

25

30

35


Systems

27.5 31.2

70.5 7.7%

9.3% 9.0%

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

0

20

40

60

80


Projects

Segment Highlights - Systems & Projects (Solar) Major Customers’ List Sterling & Wilson, L&T, Mahindra Susten, Nuevosol, Sun

Edison, Acme, Waaree Energies , Tata Power India Ltd.

Received large orders from – Belectric, L&T, Waaree

Energies, Nuevosol, Mahindra, VSM Weaves, RB Wovens

and others.

New Customers added

Belectric, VSM Weaves and RB Wovens.

New Products added:

Solar sales for Q3FY16 at

Rs. 70.45 crs

3 New Customers added

Solar is 19% of segment standalone revenues


0.9mm/1.0mm thickness Bare Galvalume Hat Sections.

Subsidiary Highlights – PEBS

Received Orders from - Pharma, Engineering & Construction Company,

Electronics, Infrastructure and Tyre manufacturing companies.

Other Highlights -

The margin expansion continues its upward trend.

Opened Engineering office in Vishakhapatnam to provide

engineering services to US based clients.

Increased revenue from Engineering services division this

quarter.

Firming up plans to set up a North India plant.

Order book at

Rs. 415 crs

IEI Industry Excellence

Award 2015 - 3rd

consecutive time


Sales for Q3FY16 at

Rs. 116.49 crs

108.6 110.6 116.5

8.4%

11.8% 12.6%

5.0%6.0%7.0%8.0%9.0%10.0%11.0%12.0%13.0%14.0%15.0%

0

20

40

60

80

100

120

140


Pre-Engineered Buildings

Subsidiary Highlights – Pennar Enviro Major Orders :- JSW, Lanco Amarkantak, Lanco Babandh, Lanco

Vidarbha, RL Finechem, JFE and SMK Petrochemicals.

Projects - Repeat Orders from JSW and Lanco

Chemicals & O&M - Repeat orders from MK Petrochemicals , MRF, USL and Silk Road Sugars

Major Customers :- Projects - Lanco, JSW Power, JFE, L&T, Essar Oil, RL

Finechem, Hetero and Biological E.

Chemicals & O&M - SMK Petrochemicals, MRF, Kottayam, Hatsun Agro – Palacode, Kothari Fermentation, USL and Silk Road Sugars.

New Customers :- Projects - JFE and Biological E

Chemicals & O&M - Mohit Paper, Harmony Air Conditioning, Prince TMT Steels, Aditya Aquachem.

Sales for Q3FY16 at

Rs. 29.31 crs

EBITDA Margin at

10.1%

6 New customers


6.8

12.8

29.3 5.3%

6.6%

10.1%

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

0

5

10

15

20

25

30

35


Pennar Enviro

Pennar Group

30 YEARS OF

EXPERIENCE

1,000 PRECISION

ENGINEERED

PRODUCTS

600 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

18

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 December 31, 2015 (BSE):

~Rs. 664 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

19

Dayasagar Rao

Operations


Shareprice Movement


Rebased to 100 60

70

80

90

100

110

120

130

140

Pennar Industries Sensex BSE Small Cap

Investor Contacts

21

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]

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