Q3FY18 RESULTS Results Summary Operating Highlights Financial - PowerPoint PPT Presentation

FINOLEX INDUSTRIES LIMITED Q3FY18 RESULTS

Results Summary Operating Highlights Financial Summary Key Strategies Appendix Q3FY18 Results Summary 50.2 % 26.5% 50.2 % 61,514 71,107 Pipes and 56,226 40,966 Fittings volume Q3FY17 Q3FY18 Q3FY17 Q3FY18 Volumes (MT) P & F # Volumes (MT) PVC resin* 1,297 25.4% 1,133 7,227 5,765 719 695 12.6 % 3.3 % Q3FY17 Q3FY18 Q3FY17 Q3FY18 Q3FY17 Q3FY18 Revenue (excl. duties and taxes) (INR Mn) EBITDA (INR Mn) PAT (INR Mn) # P&F represents Pipes and Fittings Management Comments: Our focus on volume growth in the pipe s and fittings segment has yielded a healthy growth of over 50% * Including inter segment transfer during the quarter. For nine months of FY18 the volume growth was 24%. We expect the demand to continue to be robust. 2

Results Summary Operating Highlights Financial Summary Key Strategies Appendix 9MFY18 Results Summary 24.0 % 17.7% 24.0 % 180,278 186,644 Pipes and 158,563 145,357 Fittings volume FY17 FY18 FY17 FY18 Volumes (MT) P & F # Volumes (MT) PVC resin* 13.0 % 19,287 2,213 3,759 1,776 2,936 17,062 21.9% 19.7% FY17 FY18 FY17 FY18 FY17 FY18 PAT (INR Mn) EBITDA (INR Mn) Revenue (excl. duties and taxes) (INR Mn) # P&F represents Pipes and Fittings * Including inter segment transfer 3

Results Summary Operating Highlights Financial Summary Key Strategies Appendix Profit & Loss Account Particulars (INR Mn) Q3FY18 Q3FY17 Total Income from operations * 7,227 5,765 EBIDTA 1,133 1,297 EBIDTA margin (%) 15.68% 22.50% Depreciation 154 140 EBIT 979 1,157 EBIT % 13.55% 20.07% Other Income 103 29 Finance costs (4) 59 PBT 1,086 1,126 PBT % 15.02% 19.53% Tax 390 407 PAT 695 719 PAT % 9.62% 12.47% * excluding duties and taxes 4

Results Summary Operating Highlights Financial Summary Key Strategies Appendix Profit & Loss Account Particulars (INR Mn) 9MFY18 9MFY17 Total Income from operations * 19,287 17,062 EBIDTA 2,936 3,759 EBIDTA margin (%) 15.22% 22.03% Depreciation 450 412 EBIT 2,486 3,347 EBIT % 12.89% 19.62% Other Income 250 150 Finance costs 65 142 PBT 2,671 3,355 PBT % 13.85% 19.66% Tax 895 1,142 PAT 1,776 2,213 PAT % 9.21% 12.97% * excluding duties and taxes 5

Results Summary Operating Highlights Financial Summary Key Strategies Appendix EBITDA Bridge Chart Q3FY18 (INR Mn) 1,462 1,133 1,297 IND AS EBIDTA Q3FY17 Sales Cost of material Employee benefit Other expenses EBIDTA Q3FY18 consumed expenses -39 -138 -1,450 6

Operating Highlights Results Summary Financial Summary Key Strategies Appendix Business Scenario 1100 71518 67693 66125 1050 63982 61514 1000 47246 950 42445 40966 900 38266 850 800 750 700 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Pipes & Fittings Volumes (MT) PVC (USD/MT) 83093 900 76541 74998 Source: Platts Polymerscan weekly reports 71107 800 62435 60542 56226 700 40539 39902 600 500 400 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 PVC Volumes (MT) PVC/EDC Delta (USD/MT) 7

Financial Summary Results Summary Operating Highlights Key Strategies Appendix Quarterly - Profit & Loss Particulars (INR Mn) Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Total income from operations * 8,094 6,728 4,568 5,765 8,877 7,307 4,753 7,227 EBIDTA 1,156 1,592 870 1,296 1,785 1,306 496 1,133 EBIDTA margins (%) 14.3% 23.7% 19.0% 22.5% 20.1% 17.9% 10.4% 15.7% Depreciation 127 133 139 140 139 145 151 154 Other Income 198 32 89 29 94 38 109 103 Finance costs 45 50 33 59 11 30 38 (4) PBT 1,181 1,441 788 1,126 1,729 1,170 416 1,086 PBT margins (%) 14.6% 21.4% 17.3% 19.5% 19.5% 16.0% 8.8% 15.0% Tax 361 461 275 407 496 372 133 390 PAT 820 980 513 719 1,233 798 283 695 EPS 6.6 7.9 4.1 5.8 9.9 6.4 2.3 5.6 * excluding duties and taxes 8

Financial Summary Results Summary Operating Highlights Key Strategies Appendix Quarterly segmental - Profit & Loss Particulars (INR Mn) Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Segmental revenues * PVC 4,538 4,048 2,564 4,043 5,572 5,137 2,742 4,598 PVC pipes & fittings 5,585 5,829 3,628 3,954 6,191 6,104 4,250 5,320 Power 355 388 321 378 361 382 259 377 Segmental profits PVC 548 890 552 933 1,147 951 372 802 % of Revenues 12.1% 22.0% 21.5% 23.1% 20.6% 18.5% 13.6% 17.4% PVC pipes & fittings 536 568 252 303 590 290 136 296 9.6% 9.7% 6.9% 7.7% 9.5% 4.8% 3.2% 5.6% % of Revenues Power 92 129 58 86 56 50 (7) 20 % of Revenues 25.9% 33.3% 18.1% 22.8% 15.5% 13.1% (2.7%) 5.3% Capital employed PVC 5,660 5,214 5,056 6,354 5,623 5,660 4,007 3,858 PVC pipes & fittings 4,337 5,210 5,218 5,860 5,683 5,449 5,939 5,946 Power 2,527 2,674 2,374 2,375 2,170 2,328 2,138 2,124 *excluding duties and taxes 9

Financial Summary Results Summary Operating Highlights Key Strategies Appendix Profit & Loss - Key Indicators Profit & loss account (INR Mn) FY12 FY13 FY14 FY15 FY16* FY17* Revenue from Operations (excl. excise duty) 20,997 21,448 24,531 24,762 24,819 26,024 Growth in sales (YoY %) 6.16% 2.15% 14.37% 0.94% 0.23% 4.85% EBIDTA before exceptional items 2,313 3,587 3,966 2,111 4,044 5,630 EBIDTA margins before exceptional items 11.02% 16.72% 16.17% 8.53% 16.29% 21.63% (%) EBIDTA after exceptional items 2,168 2,626 3,268 1,896 4,289 5,630 PBT 967 1,902 2,419 808 3,733 5,170 PBT Margin (%) 4.60% 8.87% 9.86% 3.26% 15.04% 19.87% PAT 752 1,361 1,701 478 2,544 3,522 PAT Margin (%) 3.58% 6.35% 6.93% 1.93% 10.25% 13.53% *Figures as per IndAS 10

Financial Summary Results Summary Operating Highlights Key Strategies Appendix Balance sheet - Key Indicators Balance Sheet (INR Mn) FY12 FY13 FY14 FY15 FY16* FY17* H1FY18* Equity and liabilities Share capital 1,241 1,241 1,241 1,241 1,241 1,241 1,241 Reserves and surplus 5,381 5,971 6,656 6,633 14,458 21,673 21,499 Long term borrowings 1,896 1,397 2,322 1,837 - - - Short term borrowings (incl. loans repayable in 8,528 6,997 4,812 4,534 1,117 942 2,094 one year) Total borrowings 10,424 8,394 7,134 6,371 1,117 942 2,094 Assets Fixed assets (Net block) 7,840 8,795 9,052 8,678 8,496 8,551 8,683 Capital WIP 854 506 325 104 66 217 473 Non current investments 1,221 1,274 1,274 1,246 6,485 11,656 12,115 Current investments 3,711 2,322 941 551 1,687 566 1,569 *Figures as per IndAS 11

Financial Summary Results Summary Operating Highlights Key Strategies Appendix Key Ratios Gross Debt (INR Mn) 10,424 EBITDA Margin* 8,394 21.6% 7,466 7,134 6,371 16.7% 16.2% 16.3% 11.9% 11.0% 8.5% 2,117 942 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Debt/Equity (x) Fixed Asset Turnover (x) 1.60 3.32 3.41 1.20 1.20 0.90 2.82 0.80 2.62 2.42 2.31 2.29 0.13 0.04 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 *Standalone EBITDA Margin (EBITDA before Exceptional item and other income) 12

Key Strategies Results Summary Operating Highlights Financial Summary Appendix Key Strategies EXPANDING FOOTPRINT CAPACITY EXPANSION CASH-N-CARRY BRANDING Increase installed Follow Cash-n-carry Promote brand and Expand distribution capacities of PVC pipes model to keep the quality consciousness network in all geographies and fittings in order to balance sheet light. amongst consumer. with higher focus in the capture expected northern and eastern increase in demand. regions 13

Key Strategies Results Summary Operating Highlights Financial Summary Appendix Opportunities – Agriculture sector … continues to be thrust area Total allocation for Rural, Under the Pradhan Mantri Niti Ayog, in Extend facility of Kisan Agriculture sector is Rs.14.34 Krishi Sinchai Yojana, 48 consultation with Credit cards to farmers lakh crore . Institutional credit AIBP priority projects of Rs. Central and State to help them meet their for agriculture sector raised to 15,000 crore to be Governments, will put in working capital needs. Rs. 11 lakh crore for 2018-19. completed by December place a fool proof Small and marginal Scope of Long Term Irrigation 2019 and utilisation of mechanism so that farmers to benefit, Fund to be expanded to cover irrigation potential of 15 farmers to get adequate specified command area lakh hectares (har khet ko price for their produce. development projects. An Agri- pani) a project of Rs. 2,300 Market Infrastructure Fund crores to be undertaken. with a corpus of Rs. 2,000 Irrigation projects of Rs. crore to be set up for 4,000 crore covering 17.2 developing and upgrading lakh hectares to be agricultural marketing implemented infrastructure. 14