Pennar Industries Ltd. — Interim / Quarterly Report 2021

Aug 11, 2021

Disclaimer

This presentation and the accompanying slides (the "Presentation") have been prepared by Pennar Industries Limited ("Pennar" or the "Company") solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever.

The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm.

You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this Presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this Presentation and any liability in respect of the Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expressly disclaimed.

Certain statements contained in this Presentation may be statements of the Company's beliefs, plans and expectations about the future and other forward looking statements that are based on management's current expectations or beliefs as well as a number of assumptions about the Company's operations and factors beyond the Company's control or third party sources and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward looking statements. Forward looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this Presentation.

Discussion Summary

• Results Update
• Company Overview

Q1 FY22: Consolidated Profit & Loss Statement

Particulars (Rs. inMn)	Q1FY22	Q1 FY21	YoY%	FY21	FY20	YoY%
Revenue From Operations (Net ofTaxes)	4,883	1,662	193.8%	15,254	21,066	-27.6%
OtherIncome	25	28	-8.3%	187	203	-8.0%
TotalIncome	4,908	1,690	190.5%	15,440	21,268	-27.4%
COGS	3,018	1,011	198.5%	9,199	12,578	-26.9%
GrossProfit	1,891	679	178.6%	6,241	8,690	-28.2%
Gross Margin%	38.5%	40.2%	-164 bps	40.4%	40.9%	-44 bps
EmployeeExpenses	404	311	29.7%	1,364	1,618	-15.7%
OtherExpenses	1,086	500	117.2%	3,762	5,178	-27.3%
EBITDA	401	-133	-402.1%	1,115	1,894	-41.1%
EBITDA Margin%	8.2%	-7.85%	1602 bps	7.2%	8.9%	-168 bps
Depreciation	128	121	5.7%	482	428	12.5%
FinanceCost	183	198	-7.5%	797	835	-4.5%
Exceptional item	-	-	0.0%	200	0	100.0%
PBT	90	-451	-120.0%	36	631	-94.2%
Taxexpense	27	-111	-124.4%	8	97	-91.7%
PAT BeforeMI	63	-340	-118.6%	28	534	-94.7%
PAT Margin%	1.3%	-20.1%	2144 bps	0.2%	2.5%	-233 bps

Key Business Updates

• Current order book position:
  • o PEBS Division Rs. 3,190Mn
  • o Enviro Division- Rs. 510Mn
  • o Railways division Rs. 1,400Mn
  • o The Company sold a freehold land situated at Bandalguda, Hyderabad. Upon sale, resultant profit of ₹ 1,996 lakhs has been disclosed as an exceptional item for the quarter and year ended March 31, 2021.
  • o Ascent Buildings LLC wholly owned subsidiary of the Company Pennar Global INC, USA to invest additional 4.3 Million USD for setting up PEB plant in USA.

Discussion Summary

• Results Update
• Company Overview

Diversified Engineering Company With End-To-End Capabilities

Note: * includes Steel Products BU, Tubes BU, Industrial Components BU, Railways BU, ** includes PEBS Pennar, Pennar Enviro, Pennar Global subsidiaries

Strong Track Record: Consistent Growth & Improving Profitability

FY15-16 Figures are as per the I-GAAP, FY17-21 Figures are as per IND-AS

ROE = PAT / Avg. (Equity + MI), ROCE = EBIT / Avg. Capital Employed (Total Debt + Equity + MI) * adjusted to exclude exceptional and non-recurring items # Post Merger

Robust Manufacturing Facilities & Strong Sales Network

Location	Products
Patancheru,AndhraPradesh	Press Components, Profiles, ESP / Building Products, Sheet Piles/Solar, Railway Components, CRSS,Fabrication
Chennai,TamilNadu	Coaches, Auto Profiles, Components / Hydraulics,Building Products, Body in whitegoods
Isnapur,	CRSS, ERW / CDW Tubes, Profiles,
AndhraPradesh	Solar
Velchal,	Strip Galvanizing, Hot Dip Galvanizing, Pre engineered
Telangana	building systems
Tarapur,Maharashtra	Solar, Building Products, Auto Profiles, ESP
Sadashivpet,	Pre-Engineered Building Systems, Steel structures and
Telangana	Photo voltaic Module
Mallapur,	Fuel Additives, Water Treatment Chemicals &
Hyderabad	Solutions

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Board of Directors

Name	Designation
NrupenderRao	Executive Chairman
Aditya N. Rao	Vice Chairman, Managing Director
K Lavanya Kumar	Executive Director

Name	Designation	Description
P. V. Rao	Non-Executive Director	•Served as Ex Joint Managing Director of PennarIndustries Ltd.
Eric James Brown	Non-Executive Director	•President and CEO of Pennar Global, Inc.•30+ years of experience
Ravi VenkataSiva Ramakrishna	Additional Non-ExecutiveIndependent Director	•Appointed as the Managing Director of the Company in June 1999 and as GroupPresident ( APAC & MEA ) i.e. Signode India, China, MEA, Japan, Korea and ASEAN in2011.He retired from service on December 31st 2020•Graduate in Engineering in Chemical Technology from Birla Institute of Technology andScience, Pilani
Chandrasekhar Sripada	Non-Executive Independent Director	•40+ years corporate career in HRM across Public, Private and Multi-National Companies•MBA, MA & PhD
B KamalakerRao	Non-Executive Independent Director	•Serving as Director on Boards of several Government and Public Sector Undertakings•Distinguished member of the AP Legislative Council and a Senior Spokesperson for hispolitical party
Manish Sabharwal	Non-Executive Independent Director	•Member of the Prime Ministers Council on Skill Development and has served on thePlanning Commission steering committee on labour and employment for the Eleventh fiveyear plan (2007-12)
VarunChawla	Non-Executive Independent Director	•He is a member of the CII core group on labourreforms•9+ years of Investment Banking experience•He was one of the founders of myguesthouse.com, acquired by Make My Trip.
BharatiJacob	Non-Executive Independent Director	•Extensive experience in venture investing, marketing and financial services.•Masters degrees from The Wharton School of University Pennsylvania and XLRIJamshedpur
IndependentDirectors		10

Shareholding Structure

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Sunil Kuram VicePresident Email ID: sunil.kuram@pennarindia.com