Pennar Industries Ltd. — Interim / Quarterly Report 2021

Jun 4, 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

Q4 & FY21: Consolidated Profit & Loss Statement

Particulars (Rs. inMn)	Q4 FY21	Q4 FY20	YoY%	FY21	FY20	YoY%
Revenue From Operations (Net ofTaxes)	5,568	4,514	23.4%	15,254	21,066	-27.6%
OtherIncome	90	46	96.3%	187	203	-8.0%
TotalIncome	5,658	4,560	24.1%	15,440	21,268	-27.4%
COGS	3,407	2,651	28.5%	9,199	12,578	-26.9%
GrossProfit	2,251	1,909	17.9%	6,241	8,690	-28.2%
Gross Margin%	39.8%	41.9%	-209 bps	40.4%	40.9%	-44 bps
EmployeeExpenses	334	313	6.8%	1,364	1,618	-15.7%
OtherExpenses	1,371	1,287	6.5%	3,762	5,178	-27.3%
EBITDA	546	310	76.4%	1,115	1,894	-41.1%
EBITDA Margin%	9.7%	6.79%	286 bps	7.2%	8.9%	-168 bps
Depreciation	118	115	2.3%	482	428	12.5%
FinanceCost	181	183	-1.0%	797	835	-4.5%
Exceptional item	200	-	100.0%	200	0	100.0%
PBT	447	11	3818.4%	36	631	-94.2%
Taxexpense	111	2	6061.1%	8	97	-91.7%
PAT BeforeMI	336	10	3397.9%	28	534	-94.7%
PAT Margin%	5.9%	0.2%	572 bps	0.2%	2.5%	-233 bps

Q4 & FY20: Consolidated Balance Sheet Statement

Particulars (Rs. inMn)	FY21	FY20
Equity &Liabilities
Equity ShareCapital	711	726
OtherEquity	6,248	6,277
Shareholder'sEquity	6,958	7,003
Non CotrollingInterest	9	6
TotalEquity	6,967	7,009
Non-CurrentLiabilities
Borrowings	1,128	1,023
Leaseliability	267	329
Other FinancialLiabilities	99	92
Provisions	117	106
Deferred Tax Liabilities(net)	153	187
Other Non-CurrentLiabilities	16	28
Total Non-CurrentLiabilities	1,779	1,766
CurrentLiabilities
Borrowings	4,195	2,976
TradePayables	4,427	4,789
Leaseliability	63	39
Other FinancialLiabilities	827	764
Provisions	64	60
Income TaxLiabilities	97	328
Other CurrentLiabilities	505	804
Total CurrentLiabilities	10,179	9,759
Total Equity &Liabilities	18,925	18,534

Particulars (Rs. inMn)	FY21	FY20
Property, Plant AndEquipment	5,549	5,729
Right use of asset	315	353
CapitalWork-in-progress	612	334
Goodwill	32	32
Other Intangible Assets	132	143
FinancialAssets
Investments	0.2	0.2
TradeReceivables	175	411
Other FinancialAssets	105	103
Income Tax Assets(Net)	33	282
Other Non-currentAssets	121	148
Total Non-CurrentAssets	7,075	7,536
CurrentAssets
Inventories	4866	4398
Investments	176	451
TradeReceivables	4270	3961
Cash And CashEquivalents	335	390
Other Balances WithBanks	218	202
Loans	79	216
Other FinancialAssets	589	484
Other CurrentAssets	1317	896
Total CurrentAssets	11,850	10,998
TotalAssets	18,925	18,534

Key Business Updates

• Robust order book position as on 31st March 2021
  • o PEBS Division Rs. 3,690Mn
  • o Enviro Division- Rs. 590Mn
  • o Railways division Rs. 1,650Mn
  • 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

9

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

10

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 and
Chandrasekhar Sripada	Non-Executive Independent Director	Science, Pilani•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		11

Shareholding Structure

FPI

Saif India IV FI HoldingsLimited	7.96%
Franklin India Smaller CompaniesFund	5.62%

Source:BSE

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