Skipper Limited has informed the Exchange about Investor Presentation in connection with Unaudited Standalone and Consolidated Financial Results for the quarter ended 30" June, 2022
9KIPPER
Limited
Date: 6 August, 2022
The Manager National Stock Exchange of India Limited Exchange Plaza, 5" Floor, Plot No. C-1, Block-G Bandra Kurla Complex, Bandra (E) Mumbai- 400 051
Ref: NSE Scrip Name- SKIPPER/BSE Scrip Code- 538562 Subject: Intimation regarding Investors Presentation
Dear Sir,
The Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai- 400 001
In compliance with the provisions of Regulation 30 read with Schedule Ill of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the copy of Investor Presentation in connection with Unaudited Standalone and Consolidated Financial Results for the quarter ended 30" June, 2022.
Kindly take the same on record.
Thanking you,
Yours faithfully, For Skipper Limited
8
Anu Singh Company Secretary & Compliance Officer
Encl: As above
SKIPPER LIMITED Regd. Office: 3A. Loudon Street, 1st Floor. Kolkata - 700 017 CIN: L40104WB1981 PLC033408 Phone 033 2289 5731 / 5732. Fax 033 2289 5733 Email mail@skipperlimited.com, Website www.skipperlimited.com
Q1 PERFORMANCE, 2022 - 23
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SKIPPER LIMITED INVESTOR PRESENTATION Q1 FY’23 Results
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D I S C L A I M E R
This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Skipper makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This Information includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to investment in the Company. This presentation may contain statements that are not historical facts, referred to as “forward looking statements.” The corporation’s actual future results may differ materially from those suggested by such statements, depending on various factors including statements contained in the Company's filings with the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any written or oral forward-looking statements that may be made from time to time by or on behalf of the Company
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W H O W E A R E
Great Place To Work. Certified
JAN 2022 - JAN 2023
INDIA
Company is India’s largest and world's only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC.
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P R O D U C T O F F E R I N G S
S K I P P E R : O N E - S T O P S O L U T I O N P R O V I D E R
Engineering products
Polymer products
Infrastructure projects
Capacity: 300,000 MTPA • Power Transmission Tower • Power Distribution Poles • Monopoles • Telecom Tower • Railway Structures • MS & High Tensile Angles • Solar Structures • Fasteners • Tower Accessories
Capacity: 51,000 MTPA • UPVC Pipes • CPVC Pipes • SWR Pipes • HDPE Pipes • CP & PTMT • Polymer Water Tanks • Fittings
M I S S I O N
• Transmission Line EPC • Railway Electrification EPC • Underground Utility laying by HDD
Highlights Positioned as one of the world's leading transmission tower manufacturer; largest in India
Highlights • Only polymer pipe company in India to implement TOC in its operations
Highlights • Forward integration activity • Aimed at high-margin projects
Revenues (FY’22) Rs13,218 mn
Revenues (FY’22) Rs3,200mn
Revenues (FY’22) Rs 652 mn
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SKIPPER LIMITED Performance Update
Q1 FY’23 Update Ii- Q. e
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S t a n d A l o n e – F i n a n c i a l P e r f o r m a n c e
Profit & Loss Summary
Q1 FY’23
Q1 FY’22
Change %
Rs in Mn
Sl
1
2
3
4
5 6 7
8
9
Revenues
Operating EBITDA (without Forex)
% of Revenue
Depreciation
Interest Expenses
Other Income Operating PBT (2-3-4+5) Forex Gain / (Loss)
Profit / (Loss) Before Tax (Reported PBT) (6+7)
Tax
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Profit / (Loss) After Tax (Reported PAT) (8-9)
51.5%
315% +750 Bps
4,160.9
490.9 11.8%
126.2
240.4
11.5 135.8 (132.5)
3.3
1.2
2.1
2,746.4
118.3 4.3%
119.2
198.3
8.9 (190.4) 48.8
(141.6)
(48.4)
(93.2)
Forex derivatives MTM gain / loss arising on account of sharp depreciation of rupee against USD has resulted mainly in decrease of profitability of the current year quarter. The nature of impact is largely notional.
Thus all comparative growth numbers are required to be calculated excluding impact of forex gain / loss for better understanding and analysis on like to like basis.
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P E F R O R M A C E H I G H L I G H T S – Q 1 F y ’ 2 3
Strong Revenue Performance across major business segments
Stand Alone - Revenue
Segment - Revenue
Rs in Mn
Rs in Mn
4,161
52%
+ 51 %
3,096
Achieved best ever 1st quarter revenue in polymer segment
2,746
2,048
Q1 FY '23
Q1 FY'22
Engg
+ 75 %
503
879
186
195
Infra
Polymer ■
■
Q1 Fy'23
Q1 Fy'22
• Engineering exports increased to Rs 1,640 mn (+ 255% over corresponding last year
qtr & + 12 % over previous qtr )
• Revenue pie from Polymers increased from to 21 %
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B U S I N E S S U P D A T E – Q 1 F Y ’ 2 3
Performance Update Key Performance Highlights
Strong revenue performance across major business segments in spite of inflationary cost push and geo-
political related challenges;
Stand Alone Operating EBITDA margins improved to 11.8% in compare to 4.3 % in Q1’22 and 10.9 % in
Q4 ’22
The Operating margin of engineering business are back to their normal historical range, Achieved
margin of 13.6% in Engineering segment and 6.9% in the polymer segment during the quarter
Order Book Highlights
Secured new order inflow of Rs 4,030 million during the quarter; Strong growth trajectory in Non T&D
product business and international markets
Highest ever Bidding Pipeline - Actively pursuing projects worth Rs 45,000 million on international front
and about Rs 55,000 million on the Domestic front.
All new large T&D projects in domestic markets now comes along with Design and Load testing scope;
Our new R&D centre will give us distinct advantage over competition. Other Update
The company’s strategy of broad basing its portfolio to include a higher proportion of Non T&D products like Solar, Railways, Telecom and Fasteners have started yielding good results and is helping us to derisk our exposure in T&D.
Share of Non T&D Products in overall order book has increased to 14% Forayed into the manufacturing of Crash Barrier system ; Secured its first order during the quarter Plants operating with strict COVID-19 protocols with contingency planning; Health and safety of
employees and partners remains key focus area for the company
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S E G M E N T R E P O R T
Infra 5%
Polymer 21%
Engg 74%
Revenue Mix – Q1 FY’23
S e g m e n t P e r f o r m a n c e Q 1 F Y ’ 2 3
Rs in Mn
yr
l
Note: Segment EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of Sales and Capital Employed in their respective segment
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SegmentProfit & Loss SummaryQ1 FY'23Q1 FY'22Change %Net Sales3,096.1 2,047.5 51.2%EBITDA - Operating421.0 111.6 277.2%% of Sales13.6%5.5%Net Sales878.8 503.0 74.7%EBITDA - Operating60.7 3.8 1497.4%% of Sales6.9%0.8%Net Sales185.9 195.9 -5.1%EBITDA - Operating9.5 2.9 227.2%% of Sales5.1%1.5%Net Sales Total4,160.9 2,746.4 51.5%EBITDA Total491.2 118.3 315.2%% of Sales11.8%4.3%Engg ProductsPVC ProductsInfra Projects Total @KIPPER ]
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P E F R O R M A C E H I G H L I G H T S
Q4 Fy’22 Revenue performance improved on account of - Q1 Fy’23 EBITDA Margin improved on account of -
Increased share of export business and parting away with majority of old legacy and CIF contracts
aided to better margin performance in engineering business:
Strict control over fixed cost and cost reduction initiatives aided to better margin performance;
Polymer segment attaining Scale and Size, getting benefited from fixed cost getting rationalised over
larger revenue base.
Raw material price volatility & container unavailability continues to remain a challenge, company is
taking adequate measures to mitigate the same
Going forth most of the revenue execution will take place from newer contracts which were secured on FOB terms and at elevated commodity price level aiding to better margin performance
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I M P R O V E M E N T T R E N D S
Op. EBITDA Margin (without Forex)
20.0%
15.0%
10.0%
5.0%
5.5%
4.3% 0.8%
- -
10.5%
10.1%
11.5%
7.5%
5.4%
13.0%
10.9%
5.2%
13.6%
11.8%
6.9%
Q1 Fy’23 Operating EBITDA Margin improved on account of -
0.6%
0.0%
Q1 '22
Q2 '22
Engineering
Q3 '22
Polymer
Q4 '22
Q1 '23
Stand Alone
• Engineering EBITDA margin are back to its normal range , Clocked the desired range for
consecutive quarters
• Polymer Margin at Multi year high level of 7% in Q1 FY’23 on account of operational
consolidation and TOC benefits.
Note: Segment EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of its sales
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O R D E R B O O K P I E
E n g i n e e r i n g P r o d u c t s – O r d e r B o o k C o m p o s i t i o n – J u n e 2 0 2 2
Total Order Book Rs 20,970 million
J
Domestic 53%
Export 47%
Segment Break up
J
47%
r ?)
Order Breakup
27%
12%
14%
■
Domestic
■
Export
■ ■
PGCIL Export
■ ■
SEB & Others Non T&D Domestic
Non T&D Products - Telecom, Railways, Solar, Fasteners & other Steel Structural items
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C o n s i s t e n t O r d e r I n f l o w
E n g i n e e r i n g P r o d u c t s – O r d e r I n f l o w C o m p o s i t i o n
• New Order Intake of Rs 4,030 million in Q1 FY’23 for engineering products supply from PGCIL, SEB’s , Asia
Pacific & LATAM Export markets and Non T&D products (Telecom, Railways, etc)
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T&D Order Book well diversified between Power Grid, Domestic SEB / Private players and international
Strong growth trajectory in Telecom & Railway Business; Share of Non T&D products at 14% in overall order book
The commodity prices have harmonized recently resulting in finalization and awarding of long pending order with them.
Qtr Wise - Consistent Inflow Trend
5,010
4,530
3,810
4,230
4,030
Q1 FY’23 Inflow Composition Rs 4,030 million
2,200 2,300
440
2,710
Q1’23 Inflow Composition
Export 40%
Domestic 60%
Q1 Fy'21
Q2 FY'21
Q3 FY'21
Q4 FY'21
Q1 FY'22
Q2 FY'22
Q3 FY'22
Q4 FY'22
Q1 FY'23
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S t r o n g B i d d i n g P i p e l i n e
Highest Ever Bidding Pipeline of 100,000 Million as on 30th June 2022; International – 45,000 Mn & Domestic - 55,000 Mn
• Expecting International Ordering & Execution to gain pace ;
•
In advanced Stages of negotiation to secure some good size International contract
• Large pent up demand in domestic T&D ; Ordering continues to remain muted
•
Increased focus on building up Engineering capabilities
International Growing global competiveness; Focusing on international markets to drive the ordering growth; Strong Anti China Sentiment; and global supply chain now actively looking for reducing their dependence on China is a great positive outcome of this crisis ; will bring more opportunities on our way Majority of New Transmission lines are now getting built to cater renewables; leading to shorter
execution cycle and faster supplies to meet project deadlines.
Domestic
The domestic T&D actvities are showing signs of rebound, Company’s Order bidding pipe line remains
strong at Rs 55,000 mn.
Tender Pipeline continues to stay strong, Many tenders in the domestic T&D market which got
postponed - now expected to be concluded in next few months.
Strong traction in domestic telecom on account of 5G Rollout / High bandwidth usage. Ahead of the rollout of the high speed 5G network, the government is set to give a massive push to telecom infrastructure across the country with plans to add 8 lac new mobile towers over the next 2 years
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P O LY M E R P R O D U C T S S E G M E N T
SKIPPER’S POLYMER BUSINESS
Polymer manufacturing capacity of 51,000 MTPA
Plants invested state-of-the-art manufacturing technology
Guwahati Fittings Plant enjoys tax exemption
Among few Indian companies assured of CPVC for pipes manufacture
One of few Indian companies with NSF certification
Quality certifications
• ASTM D-1785, ASTM D-2467, ASTM D-2846 • IS: 12818 • IS: 13592 • IS: 4985 • IS: 15778 • IS: 13592 • IS: 14735 • IS: 10124 • IS: 14182 • NSF
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P o l y m e r H i g h l i g h t s
Polymer – Improving Revenue Performance
Major Highlights
TTM Revenue of Rs 3,576 million
Only Polymer Pipe company in India to implement TOC into its operation
Highest Ever Q1 Revenue Performance
Growing National Presence ;
1,177
Deriving 77 % of overall revenue
through TOC channel network in Q1’23
879
Added 2,648 New Retailer Touch point
in the current quarter
n o
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436
311
792
772 748
626
503
Q1 Fy'21
Q2 FY'21
Q3 FY'21
Q4 FY'21
Q1 FY'22
Q2 FY'22
Q3 FY'22
Q4 FY'22
Q1 FY'22
Total Retailer Touch points in excess of 26,900 plus (nos) in June ’22; increased 10(X) fold in last 2 year period
Total Monthly Billed Retailers of 5,000
plus (nos)
Focus on Plumbing Portfolio; 70 :30 Revenue mix share of Plumbing: Agriculture
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T H E O R Y O F C O N S T R A I N T S
OUR USP
Skipper is the only Indian polymer pipe company to implement Theory of Constraints (TOC) approach in an organized manner
Directed to empower the supply chain processes and systems
• Partnering benefits:
• Exponential Sales Growth & Gain in Market Share
• Robust Processes & Systems in place to improve
profitability
• Consistent availability of entire range of products
at billing points
• Improvement in working capital cycle and
reduction of inventory days
• Gain of more output from the current capacity
• Improvement in ROI to dealers and distributors
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B u s i n e s s O u t l o o k
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P E R F O R M A N C E O U T L O O K
Company expects to clock high double digit annual revenue growth in Fy’23 on back of strong pending execution of engineering contracts and strong polymer segment performance ;
Going forth most of the engineering revenue execution will take place from newer contracts which were secured on FOB terms and at elevated commodity price level aiding to continued better margin performance
Targeting Inflow of Rs 22,000 - 25,000 million in Fy’23 , largely on account of international
export orders and rebound in Domestic T&D ordering
Expect good traction in International TL orders to continue, While pending domestic TL
ordering bids are expected to start getting awarded by Q2 / Q3’23
Continuing efforts to further strengthen the international T&D order book ; positioned to grow exports to 50% of engineering revenue in current year (FY’23) and to 75 % by next year (FY’24)
Productivity and cost reduction cost reduction initiatives at the plant and site level are
expected to further improve efficiency in operations and aid to stable margins
Implementation of TOC in both Engineering and Polymer business to significantly improve its
working capital cycle and bottom-line profitability
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S h a r e h o l d i n g P a t t e r n
S h a r e h o l d i n g p a t t e r n a s o n 3 0 t h J u n e 2 2
M a j o r I n s t i t u t i o n a l S h a r e h o l d e r s A s o n 3 0 t h J u n e 2 2
Promoters 71.89%
Name
Baillie Gifford - Pacific Horizon Investment Trust
%
4.31%
Ocean Dial Asset Management India (ICGF) 4.08%
Dovetail India Fund
0.63%
Foreign Portfliio Investors 9.28%
Others 18.83%
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RGD
Future Ready • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
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E X P L O R I N G N E W G E O G R A P H I E S
FOCUS ON GROWING EXPORTS
• Optimistic outlook: Positioned to grow exports to 50% of
Engineering revenue in current year (FY’23) and to 75 % by next year (FY’23).
• Opportunity-ready: Certified by prominent international organizations for confidence-enhancing certifications
• Established traction: Working with over 100 Global EPC player ;
Enlisted 10 Plus prominent customers in past 12 months
• In House Design Capability: With in-house design capability and human capital, we are able to add more value into the projects we bid, offering innovative, bespoke and cost-effective design solutions.
• Creditable beginning: first-time order and enquiries from USA, Germany, Spain, South Korea, Uruguay, Paraguay, Romania, Croatia, Mexico, Panama, Bolivia, Poland, Afghanistan, Russia, Australia and East / West African countries among others
• Competitiveness: Strong Anti-Chinese Sentiment and gradual decoupling from China is also causing many projects to seek alternative supply chains, giving further fuel to business potential coming our way.
• Brand Positioning: Our recently set up R&D Centre and Tower
Testing Station have vastly improved our brand positioning in the export markets, helping us to be taken as a serious contender.
•
International certifications
Certification
CFE/LAPEM CWB DEWA ROHAS CE CERTIFICATION ACHILLES/STATNET Saudi Electric Company The Jordanian Electric Power Company Ltd RETIE EETC BPC KETRACO TCN NGCP DAST
Country
Mexico Canada & USA Dubai Malaysia Europe Nordics Saudi Arabia
Jordan Colombia Egypt Bhutan Kenya Nigeria Philippines European Union
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L E A D E R S H I P P O S I T I O N
S K I P P E R I S C L E A R LY P O I S E D T O B E I N T H E W I N N I N G S P O T I N T H E I N T E R N AT I O N A L T & D S E C T O R
•
•
•
Skipper is the highest accredited manufacturers in India for supplying to global markets
Largest and lowest cost manufacturer out of India and one of the lowest globally
In between 2005 – 15 Skipper supported multiple Indian non integrated T&D EPC Contractors (holding major market share) with low cost reliable Transmission Tower supplies (Towers are almost 50% of the value of any project).
• Currently replicating the same format in International markets with major International EPC
contractors, helping them leverage their relations with the Utilities better
•
Increase in approvals such as CWB (North America), CE & DAST (Europe), Lapem (Central America & Mexico),, DEWA (Middle east), Achilles (Nordic countries) and Sirim (South East Asia) which gives it better access to T&D business in these regions. Continuously increasing , Utility approval list with more key utilities in the European markets
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L E A D E R S H I P P O S I T I O N
S K I P P E R I S C L E A R LY S E T T O B E I N T H E W I N N I N G S P O T I N T H E T E L E C O M S E C T O R
• Large engineering capacity to support manufacturing of Telecom structures
• Proximity to focus Telcos markets - East & North East
• Tie up with one of world's leading tower design company - Ramboll
• Long standing relationships with major telecos in India and abroad
((g))
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-Limited-
T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n
$ $KIPPER
R&D
Skipper boasts of India ‘s largest Tower & Monopole Load Testing Station -
• All new large T&D projects in
domestic markets now comes along with Design and Load testing scope;
• Our R&D centre will give us distinct
advantage over competition.
• Facility running at 100% capacity
Few Power Transmission Towers & Monopoles tested at our Testing Station
765kV S/C Monopole 220kV Transmission
Tower
765kV Transmission Tower
400kV D/C Quad Moose Monopole
L
500kV Transmission Tower
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Thank You
For any queries please contact:
Aditya Dujari (Investor Relations)
Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017
E-Mail: aditya.dujari@skipperlimited.com Tel: + 91 33 2289 2327/5731 Mobile: 9830806906
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