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Pennar Industries LimitedEngineering Excellence
Investor
Presentation
Q2FY15
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Disclaimer
This presentation contains statements that contain forward looking statements including, bulimitation, statements relating to the implementation of strategic initiatives, and other statemen
Pennar Industries Limited and its subsidiary companies (Pennar) future business developmeperformance.
While these forward looking statements indicate our assessment and future expectations concerndevelopment of our business, a number of risks, uncertainties and other unknown factors could developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental antrends, movements in currency exchange and interest rates, competitive pressures, technologicachanges in the financial conditions of third parties dealing with us, legislative developments, anthat could affect our business and financial performance.
Pennar undertakes no obligation to periodically revise any forward looking statements to reflectevents or circumstances.
PENNAR INDUSTRIES LIMITED
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Agenda
1. Quarter Performance
Financial Performance Segment Performance
Segment Composition
Business Segment: Q2FY15 Highlights
2. Pennar Group Business Structure, Holdings
Business Segments, Subsidiaries
Distributed Manufacturing
Business Structure
Leadership Team
Share Price Performance
PENNAR INDUSTRIES LIMITED
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Q2FY15
Pennar Industries Limited
Quarter Performance
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Financial Performance
Net Sales of INR 289 Crs; 21% YoY ; 5% QoQ
EBITDA margin at 8.4%
Net Sales of Rs. 195 Crs; 15%
EBITDA margin at 8.1%
Consolidated Standalone
PENNAR INDUSTRIES LIMITED
Net Revenues (Rs. Crores) and EBITDA margins (%)
238.3
276.7
289.2
7.8%
8.1%
8.4%
Q2FY14 Q1FY15 Q2FY15
170.1
168.5
7.5%
8.2%
Q2FY14 Q1FY15
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Highlights of Q2FY15 performance
Q2 HIGHLIGHTS
Strong performance during Q2FY15 - 21% YoY; 5% QoQ - driven by all segments, t
Growth driven by new customers and existing customers increasing the scope of o
new orders
Substantial new order wins in Q2
Increasing product portfolio across all four business verticals and two subsidiaries
OTHER HIGHLIGHTS Strong Balance Sheet
CAPEX for new products/business lines entirely funded via internal accruals
PENNAR INDUSTRIES LIMITED
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Segment PerformanceNet Revenues (Rs. Crores) and EBITDA margi
PENNAR INDUSTRIES LIMITED
102.0 101.4
100.2
6.6%6.3%
5.4%
0.0%
1.0%
2.0%
3.0%
4.0%5.0%
6.0%
7.0%
0
20
40
60
80
100
120
Q2FY14 Q1FY15 Q2FY15
Steel Products
30.3
36.233.7
4.8%
6.2%
6.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
5
10
15
20
25
30
35
40
Q2FY14 Q1FY15 Q2FY15
Tubes
11.9
12.6%
0
2
4
6
8
1012
14
16
Q2FY14
Indus
25.8
16.2
48.7
11.7%
18.9%
12.9%
0.0%
5.0%
10.0%
15.0%
20.0%
0
10
20
30
40
50
60
Q2FY14 Q1FY15 Q2FY15
Systems & Projects
70.0
101.391.0
9.0%
8.4%
8.7%
8.0%
8.2%
8.4%
8.6%
8.8%
9.0%
9.2%
0
20
40
60
80
100
120
Q2FY14 Q1FY15 Q2FY15
Pre-Engineered Buildings
0
1
2
3
4
5
6
7
8
Q2FY14 Q
Pen
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Segment Composition
PENNAR INDUSTRIES LIMITED
Outlook
PEBS, PEL and Systems & Projects
share of revenues will increase
further as their growth rates are
higher than the average growth
rate.
Tubes will maintain its revenue
share while improving margins. Steel products will decline in
revenue share as lower margin
segments stagnate.
SteelProducts
34%
Tubes12%
Systems and Projects
IndustrialComponents
Pre-EngineeredBuildings
Pennar Enviro
8%
10%
4
4
3%
5%
9%3%
14%
2%
4%
31%
2% Gener
ERW Tu
CDW Tubes
Solar
Railways
16%
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Business Segment Highlights - Steel Products
Quarter performance
New orders received from Hamon Research, Cottrell,
Cethar Limited, SKS Power Generation Limited, HBL,
Thermax, etc. Existing customers have increased orders in Profiles
sub-segment.
Introducing Special Grade Steels.
Switching to Special Grade while reducing low
contribution products.
Outlook
Major orders for H2 booked already.
Sales for Q2FY15 is at
Rs. 100 Crores
10 % of revenue isfrom new business
To concentrate on
Special Grades
PENNAR INDUSTRIES LIMITED
102.0
6.6%
0
20
40
60
80
100
120
Q2FY14
St
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Business Segment Highlights - Tubes
Quarter performance
ERW saw a growth of 15% compared with Q2FY14
while CDW grew by 50%.
Infra/power sector products were slow moving and
the business vertical did well only in automotive
because of 2-wheeler volumes.
Major customers in Auto - M/s. ALFengg, VECV,
PHI/PHA- Hyundai vendors, Patton, LMW, Bajaj
vendors, Gabriel, M.G/Alma, TVS vendors. In Power -
Isgec, Thermax, BGR, Paharpur, JSW, CPCL, HPCL, SPIC,
Hindalco etc.
Market Share - ERW: 5%; CDW: 6%
Capacity expansion of 300T in CDW and 500T in ERW
by December 2014.
Total Customers >100.
Market Share -
ERW: 5%; CDW: 6%
60% of business is repeatbusiness;
15 new customers added
10% of Q2 businesscame from newproducts/customers
PENNAR INDUSTRIES LIMITED
30.3
4.8%
0
5
10
15
20
25
30
3540
Q2FY14
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Business Segment Highlights-Industrial Compon
Quarter performance
Repeat Orders from existing customers
Expanded business with existing customers.
New orders from large firms for Wedge Barrier, GuideBracket, Yoke Rotor cups and Bead plates.
Automotive showing early signs of recovery.
Focusing on critical high performance components for
brake, suspension and auto electrical applications.
Identifying global sourcing and deemed export
opportunities.
White goods Slide continues
Identifying opportunities of deep-drawn products inother consumer and safety equipment segments.
General Engineering
Identifying sub-assembly opportunities by leveraging
capabilities of fabrication & pressed components.
Hydraulics cylinders
Sample order from Bailey USA received.
Sales for Q2FY15 is at
Rs. 13 Crores
Automotiveshowing signs of mildrecovery
Growing Hydraulicsbusiness
PENNAR INDUSTRIES LIMITED
11.9
12.6%
1
0
2
4
6
8
10
12
1416
Q2FY14 Q
Industri
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Business Segment Highlights - Systems & Proje
Quarter Performance
Railways
Q2 opened with an order book of Rs. 90 crores.
Rs. 18 crores of orders received from wagon builders.
In dialogue for supply of CRF sections for metro coach
applications. Also for CRF sections for Delhi metro.
Order for manufacturing of complete under frame
arrangement for ICF coaches in progress. Additionally,
orders for manufacturing of 68 coach sets of stainless
steel Sidewall and Roof Assemblies in progress.Solar
Received large order from L&T Construction - Solar
Division - to be executed in Q3.
Additional order from L &T to be executed in Nov'14.
Single largest order from Mahindra EPC to be executed
between Dec'14 and Feb'15.
Sales for Q2FY15 up
201% QoQ
Railway businessuptrend visible
Railways is 14 % andSolar is 2% of segmentrevenues
PENNAR INDUSTRIES LIMITED
25.8
11.7%
0
10
20
30
40
50
60
Q2FY14
Syste
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Subsidiary Highlights - PEBS
Quarter Performance
50+ new orders received this quarter
Major orders include - MRF, Reliance Jio Infocomm,
UltraTech Cement, KRIDL, Zillion Infra , L&T, Deify
Infrastructures, Caldreys Refractories, Azure power
etc.
35+ new customers added during quarter.
Repeat orders from 8 existing customers.
Sales for Q2FY15 is at
Rs. 91 Crores
Capacity 90,000 MT
50% of revenue fromnew business/ customers
Total customers at 550
PENNAR INDUSTRIES LIMITED
L&T Metro stati
70.0
9.0%
0
20
40
60
80
100120
Q2FY14
Pre-Eng
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Subsidiary Highlights - Pennar Enviro
Quarter performance
New Customers
Chemicals JSW Bellary, I G Petrochemicals, Jayapee
Balaji Cement, SR International Paper, Amtek Auto
O&M Veeraya Power, Kalpathruvu Distilleries
Projects Lanco Infratech
Repeat Orders
Chemicals - Hero Cycles, Deepak Nitrite Ltd, Goodyear
India Limited
O&M - Silk Road Sugars, SLN coffee
Order book currently at
Rs. 41 Crores
30 % of revenue isfrom new business
Customer base
Chemicals-170,
O&M-40 , Projects - 30
PENNAR INDUSTRIES LIMITED
0
1
2
3
4
5
6
78
Q2FY14
Pe
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Q2FY15
Pennar Industries Limited
Pennar Group
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Business Segments, Subsidiaries
STEEL PRODUCTS
Automobiles General Engineering
Infrastructure
White Goods
Automobiles Industrial
White Goods
Hydraulics
Pre-engineeredbuilding structures
Warehouses
Airports and aircraft
hangers
Turnkey buildings
Leak proof roofing
sheets
INDUSTRIAL
COMPONENTS
Railways: Coachesand Wagons
Solar: Mounting
Structures
SYSTEMS &
PROJECTS
Automobiles Power
TUBES
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Distributed Manufacturing
Coaches
Components/ Hydraulics
Auto Profile
Building Pro
Railway Compone
ESP/ Building
Sheet Piles/ Solar
Press Components
ESPAuto Profiles
Solar
Building Products
CRSS
ProfilesSolar
ERW/ CDW Tubes
Tarapur Chennai
PatancheruIsnapur4 Locations
ProfilesF
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Business Structure
PENNAR INDUSTRIES LIMITED
Pennar Industries Limited
Segments: Steel Products; Tubes;
Systems & Projects; Industrial
Components.
Pre-engineered building
systems (PEBS); Roof Top
Solar, Solar EPC.
Industrial water t
solutions, Water
chemicals and Fu
Market Cap as of Sep
~Rs. 650 C
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Leadership Team
Leadership Team
Nrupend er Rao
Executive Chairman
Pennar Group
Adit ya N. Rao
Vice Chairman,
Managing Director,
Pennar Industries
P. V. Rao
Managing Director
PEBS Pennar
Sh
Pre
Pen
Y Narasimha Rao
Steel Products
M. Bhoopal Reddy
Tubes
Shiva Kumar K
Industrial
Components
Business Heads
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Share Price Performance for Q2FY15
PENNAR INDUSTRIES LIMITED
50
100
150
200
250
300
Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-1
Pennar Sensex BSE Small Cap
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Investor Contacts
PENNAR INDUSTRIES LIMITED
Contact Details:
Pennar Industries Limited
Floor: 3, DHFLVC Silicon Towers
Kondapur, Hyderabad - 500 084, Andhra Pradesh
Investor Relations - [email protected]
mailto:[email protected]:[email protected]