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Pennar Industries Ltd. — Interim / Quarterly Report 2021
Jun 4, 2021
62596_rns_2021-06-04_9759885e-2c16-4c22-b264-6f15fdc656e4.pdf
Interim / Quarterly Report
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PENNAR INDUSTRIES LIMITED
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Disclaimer
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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.
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Discussion Summary
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- Results Update
Company Overview
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| Q4 & FY21: Consolidated Profit & Loss Statement | Q4 & FY21: Consolidated Profit & Loss Statement | Q4 & FY21: Consolidated Profit & Loss Statement | Q4 & FY21: Consolidated Profit & Loss Statement | ||||
|---|---|---|---|---|---|---|---|
| Particulars (Rs. in Mn) | Q4 FY21 | Q4 FY20 | YoY% | FY21 | FY20 | YoY% | |
| Revenue From Operations (Net of Taxes) | 5,568 | 4,514 | 23.4% | 15,254 | 21,066 | -27.6% | |
| Other Income | 90 | 46 | 96.3% | 187 | 203 | -8.0% | |
| Total Income | 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% | |
| Gross Profit | 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 | |
| Employee Expenses | 334 | 313 | 6.8% | 1,364 | 1,618 | -15.7% | |
| Other Expenses | 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% | |
| Finance Cost | 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% | |
| Tax expense | 111 | 2 | 6061.1% | 8 | 97 | -91.7% | |
| PAT Before MI | 336 | 10 | 3397.9% | 28 | 534 | -94.7% | |
| PAT Margin % | 5.9% | 0.2% | 572 bps | 0.2% | 2.5% | -233 bps | |
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Q4 & FY20: Consolidated Balance Sheet Statement
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| Particulars (Rs. in Mn) | FY21 | FY20 | Particulars (Rs. in Mn) | FY21 | FY20 | ||
|---|---|---|---|---|---|---|---|
| Equity & Liabilities | Property, Plant And Equipment | 5,549 | 5,729 | ||||
| Equity Share Capital Other Equity |
711 6,248 |
726 6,277 |
Right use of asset Capital Work-in-progress |
315 612 |
353 334 |
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| Shareholder’s Equity | 6,958 | 7,003 | Goodwill | 32 | 32 | ||
| Non Cotrolling Interest Total Equity |
9 6,967 |
6 7,009 |
Other Intangible Assets Financial Assets |
132 | 143 | ||
| Non-CurrentLiabilities | |||||||
| Borrowings Lease liability Other Financial Liabilities Provisions Deferred Tax Liabilities (net) Other Non-Current Liabilities |
1,128 267 99 117 153 16 |
1,023 329 92 106 187 28 |
Investments Trade Receivables Other Financial Assets Income Tax Assets (Net) Other Non-current Assets Total Non-Current Assets |
0.2 175 105 33 121 7,075 |
0.2 411 103 282 148 7,536 |
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| Total Non-Current Liabilities | 1,779 | 1,766 | Current Assets | ||||
| Current Liabilities | Inventories | 4866 | 4398 | ||||
| Borrowings | 4,195 | 2,976 | Investments | 176 | 451 | ||
| Trade Payables | 4,427 | 4,789 | Trade Receivables | 4270 | 3961 | ||
| Lease liability | 63 | 39 | Cash And Cash Equivalents | 335 | 390 | ||
| Other Financial Liabilities | 827 | 764 | Other Balances With Banks | 218 | 202 | ||
| Provisions | 64 | 60 | Loans | 79 | 216 | ||
| Income Tax Liabilities | 97 | 328 | Other Financial Assets | 589 | 484 | ||
| Other Current Liabilities | 505 | 804 | Other Current Assets | 1317 | 896 | ||
| Total Current Liabilities | 10,179 | 9,759 | Total Current Assets | 11,850 | 10,998 | ||
| Total Equity & Liabilities | 18,925 | 18,534 | Total Assets | 18,925 | 18,534 |
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Key Business Updates
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- Robust order book position as on 31[st ] March 2021
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- PEBS Division - Rs. 3,690Mn
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-
Enviro Division- Rs. 590Mn
-
oRailways division – Rs. 1,650Mn
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- 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.
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- 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.
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Discussion Summary
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- Results Update
Company Overview
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Diversified Engineering Company With End-To-End Capabilities
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Wide Spectrum of Engineered Products & Customised Turnkey Engineering Solutions Across Diverse Industries
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Strong Pedigree 36+ 1,500+ 1,000+ 8 2,500+
& Engineering Years of Engineered Customers Manufacturing Employee
Excellence Experience Products Across Industries Plants Base
Engineered Products * Engineering Solutions
• Leading player in Pre-Engineered Buildings, Solar
Extensive Product • Wide range of customised engineering EPC, Designing & Engineering Services with
& Service Offerings products catering to diverse sectors presence inUSA
• Water Treatment Solutions (EPC + O&M),
• Strong designing & manufacturing capabilities • Water Treatment Chemicals & Fuel
Additives
Exposure to High Construction & General
Automobiles White Goods Railways Solar
Growth Sectors Infrastructure Engineering
One Works BIM Enertech Pennar Defense and
Subsidiaries Pennar GMBH Pennar Global Inc
Technologies Engineering Systems Private Ltd
Prominent
Clientele
From Diverse
Sectors
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Note: * includes Steel Products BU, Tubes BU, Industrial Components BU, Railways BU, ** includes PEBS Pennar, Pennar Enviro, Pennar Global subsidiaries
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Strong Track Record: Consistent Growth & Improving Profitability
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FY15-16 Figures are as per the I-GAAP, FY17-21 Figures are as per IND-AS
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In Rs Mn
Total Revenues EBITDA & EBITDA Margin PAT Before MI & PAT Margin
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21599 21,268 12.2% 5.0%
18143 11.5% 11.2% 4.4%
15496 15,440 9.3% 3.8%
8.9%
13101
3.1%
7.2%
905
2218 2.5%
1742 1999 1,894 667
1513 582 585 534
1,115
28
0.2%
FY'16 FY'17 FY'18 FY'19# FY'20 FY'21 FY'16 FY'17 FY'18 FY'19# FY'20 FY'21 FY'16 FY'17 FY'18 FY'19# FY'20 FY'21
Return Ratios Leverage Analysis
7009 6967
26.0% 6564 6677 0.72
5995 6041
21.0% 0.59 5033
18.4% 18.0%
16.7% 0.50
15.0% 0.43 0.45 3538 3346 32680.47
2965
9.7% 9.0% 10.0% 9.5% 2573
7.6%
0.4%
FY'16 FY'17 FY'18 FY'19# FY'20 FY'21 FY'16 FY'17 FY'18 FY'19# FY'20 FY'21
ROE ROCE Equity Net Debt Net Debt/Equity
adjusted to exclude exceptional and non-recurring items # Post Merger ROE = PAT / Avg. (Equity + MI), ROCE = EBIT / Avg. Capital Employed (Total Debt + Equity + MI) 9
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Robust Manufacturing Facilities & Strong Sales Network
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| Velchal Patancheru Chennai Sales Network Presence Manufacturing Plants Tarapur Isnapur Mallarpur INDIA USA |
Location Products |
Location Products |
|---|---|---|
| Patancheru, Andhra Pradesh |
Press Components, Profiles, ESP / Building Products, Sheet Piles / Solar, Railway Components, CRSS, Fabrication |
|
| Chennai, TamilNadu |
Coaches, Auto Profiles, Components / Hydraulics, Building Products, Body in white goods |
|
| Isnapur, AndhraPradesh |
CRSS, ERW / CDW Tubes, Profiles, Solar | |
| Velchal, Telangana |
Strip Galvanizing, Hot Dip Galvanizing, Pre engineered building systems |
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| Tarapur, Maharashtra |
Solar, Building Products, Auto Profiles, ESP | |
| Sadashivpet, Telangana |
Pre-Engineered Building Systems, Steel structures and Photo voltaic Module |
|
| Mallapur, Hyderabad |
Fuel Additives, Water Treatment Chemicals & Solutions | |
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| Board of Directors Name Nrupender Rao Aditya N. Rao K Lavanya Kumar |
Board of Directors Name Nrupender Rao Aditya N. Rao K Lavanya Kumar |
Board of Directors Name Nrupender Rao Aditya N. Rao K Lavanya Kumar |
11 Designation Executive Chairman Vice Chairman, Managing Director Executive Director Description •Served asExJointManagingDirectorof Pennar IndustriesLtd. •President and CEO of PennarGlobal,Inc. •30+years ofexperience •Appointed as the Managing Director of the Company in June 1999 and as Group President ( APAC & MEA ) i.e. Signode India, China, MEA, Japan, Korea and ASEAN in 2011. Heretiredfromservice on December31st2020 •Graduate in Engineering in Chemical Technology from Birla Institute of Technology and Science,Pilani •40+years corporate career in HRM across Public,Private and Multi-National Companies •MBA,MA & PhD •Servingas Director on Boards of several Government and Public Sector Undertakings •Distinguished member of the AP Legislative Council and a Senior Spokesperson for his politicalparty •Member of the Prime Ministers Council on Skill Development and has served on the Planning Commission steering committee on labour and employment for the Eleventh five yearplan(2007-12) •He is a member of the CII coregroupon labour reforms •9+years of InvestmentBanking experience •He was one of the founders of myguesthouse.com,acquired byMake MyTrip. •Extensive experiencein ventureinvesting,marketing andfinancialservices. •Masters degrees from The Wharton School of University Pennsylvania and XLRI Jamshedpur |
11 Designation Executive Chairman Vice Chairman, Managing Director Executive Director Description •Served asExJointManagingDirectorof Pennar IndustriesLtd. •President and CEO of PennarGlobal,Inc. •30+years ofexperience •Appointed as the Managing Director of the Company in June 1999 and as Group President ( APAC & MEA ) i.e. Signode India, China, MEA, Japan, Korea and ASEAN in 2011. Heretiredfromservice on December31st2020 •Graduate in Engineering in Chemical Technology from Birla Institute of Technology and Science,Pilani •40+years corporate career in HRM across Public,Private and Multi-National Companies •MBA,MA & PhD •Servingas Director on Boards of several Government and Public Sector Undertakings •Distinguished member of the AP Legislative Council and a Senior Spokesperson for his politicalparty •Member of the Prime Ministers Council on Skill Development and has served on the Planning Commission steering committee on labour and employment for the Eleventh five yearplan(2007-12) •He is a member of the CII coregroupon labour reforms •9+years of InvestmentBanking experience •He was one of the founders of myguesthouse.com,acquired byMake MyTrip. •Extensive experiencein ventureinvesting,marketing andfinancialservices. •Masters degrees from The Wharton School of University Pennsylvania and XLRI Jamshedpur |
11 Designation Executive Chairman Vice Chairman, Managing Director Executive Director Description •Served asExJointManagingDirectorof Pennar IndustriesLtd. •President and CEO of PennarGlobal,Inc. •30+years ofexperience •Appointed as the Managing Director of the Company in June 1999 and as Group President ( APAC & MEA ) i.e. Signode India, China, MEA, Japan, Korea and ASEAN in 2011. Heretiredfromservice on December31st2020 •Graduate in Engineering in Chemical Technology from Birla Institute of Technology and Science,Pilani •40+years corporate career in HRM across Public,Private and Multi-National Companies •MBA,MA & PhD •Servingas Director on Boards of several Government and Public Sector Undertakings •Distinguished member of the AP Legislative Council and a Senior Spokesperson for his politicalparty •Member of the Prime Ministers Council on Skill Development and has served on the Planning Commission steering committee on labour and employment for the Eleventh five yearplan(2007-12) •He is a member of the CII coregroupon labour reforms •9+years of InvestmentBanking experience •He was one of the founders of myguesthouse.com,acquired byMake MyTrip. •Extensive experiencein ventureinvesting,marketing andfinancialservices. •Masters degrees from The Wharton School of University Pennsylvania and XLRI Jamshedpur |
|
|---|---|---|---|---|---|---|
| Name | Designation | |||||
| Nrupender Rao | Executive Chairman | |||||
| Aditya N. Rao | Vice Chairman, Managing Director | |||||
| K Lavanya Kumar | Executive Director | |||||
| Name | Designation | Description | ||||
| P. V. Rao | Non-Executive Director | •Served asExJointManagingDirectorof Pennar IndustriesLtd. | ||||
| Eric James Brown | Non-Executive Director | •President and CEO of PennarGlobal,Inc. | ||||
| •30+years ofexperience | ||||||
| Ravi VenkataSiva Ramakrishna | Additional Non-Executive Independent Director |
•Appointed as the Managing Director of the Company in June 1999 and as Group President ( APAC & MEA ) i.e. Signode India, China, MEA, Japan, Korea and ASEAN in 2011. Heretiredfromservice on December31st2020 |
||||
| •Graduate in Engineering in Chemical Technology from Birla Institute of Technology and Science,Pilani |
||||||
| Chandrasekhar Sripada | Non-Executive Independent Director | •40+years corporate career in HRM across Public,Private and Multi-National Companies | ||||
| •MBA,MA & PhD | ||||||
| B Kamalaker Rao | Non-Executive Independent Director | •Servingas Director on Boards of several Government and Public Sector Undertakings | ||||
| •Distinguished member of the AP Legislative Council and a Senior Spokesperson for his politicalparty |
||||||
| Manish Sabharwal | Non-Executive Independent Director | •Member of the Prime Ministers Council on Skill Development and has served on the Planning Commission steering committee on labour and employment for the Eleventh five yearplan(2007-12) |
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| •He is a member of the CII coregroupon labour reforms | ||||||
| Varun Chawla | Non-Executive Independent Director | •9+years of InvestmentBanking experience | ||||
| •He was one of the founders of myguesthouse.com,acquired byMake MyTrip. | ||||||
| BharatiJacob | Non-Executive Independent Director | •Extensive experiencein ventureinvesting,marketing andfinancialservices. | ||||
| •Masters degrees from The Wharton School of University Pennsylvania and XLRI Jamshedpur |
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| IndependentDirectors |
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Shareholding Structure
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Shareholding Pattern – As on 31[St] March 2021
Key Shareholders – As on 31[st ] March 2021
FPI
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37.69%
47.63%
14.68%
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| Saif India IV FI Holdings Limited | 7.96% |
|---|---|
| Franklin India Smaller Companies Fund | 5.62% |
PROMOTERS INSTITUTIONS PUBLIC
Source: BSE
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Thanking You Thank You
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