VENUSPIPESNSE24 May 2023

Venus Pipes & Tubes Limited has informed the Exchange about Investor Presentation

Venus Pipes & Tubes Limited

Date: 24/05/2023

To,

Listing Department Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 051 Mumbai – 400 001 Symbol: VENUSPIPES Scrip Code: 543528 ISIN- INE0JA001018

Dear Sir/Madam,

Sub: Q4 FY23 Investor Presentation

With reference to above captioned subject, please find attached Q4 FY23 Investor Presentation.

The Presentation will be uploaded on the company’s website at www.venuspipes.com

Request you to kindly take the same on record.

Thanking You,

For Venus Pipes & Tubes Limited

CS Pavan Kumar Jain Company Secretary and Compliance Officer Membership No. A66752

VENUS PIPES & TUBES LIMITED

Investor Presentation May 2023

Safe Harbour

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Venus Pipes & Tubes Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.

All Maps used in the presentation are not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Q4 & FY23 FINANCIAL & OPERATIONAL HIGHLIGHTS

s t h g

i l

h g H y e K

Highest ever Quarterly & Annual Revenue

Q4FY23 Revenue

Rs. 176 Crs Up by 60% Y-o-Y

FY23 Revenue

Rs. 552 Crs Up by 43% Y-o-Y

Highest ever Quarterly & Annual EBIDTA

Q4FY23 EBIDTA

Rs. 22 Crs Up by 57% Y-o-Y

Q4FY23 EBIDTA Margins

12.2%

FY23 EBIDTA

Rs. 69 Crs Up by 40% Y-o-Y

FY23 EBIDTA Margins

12.5%

Capacity Expansion

• Commencement of commercial production from our new plant for seamless & higher

dia welded pipes on 24th May 2023

• Commercial production for our Backward Integration of seamless pipes, i.e. mother hollow pipes started on 24th May FY23. This will eliminate our dependence on China for sourcing of raw materials

• Commercial production for LSaw division (~600 MT) expected to be operational from

coming month

Impetus to the Industry • The Ministry of Finance approved Anti Dumping Duty (ADD) on seamless stainless-steel

pipes & tubes from China for 5 years up to 3,801 USD/MT

• This duty also applies to mother hollow pipes and hence will be difficult for smaller players to procure the same, this will help the market to move from unorganised sector to organised sector

• This antidumping duty will help increase our share in the domestic market and

increased capacities will be utilised at a faster pace than expected

Key Updates

• With our commencement of commercial production to manufacture mother hollow

pipes as a part of our backward integration, we expect exports to pick up for FY24

• The government, w.e.f. 15th December, has also introduced 1% export incentive to

drive exports further

Revenue Split across Channels (1/2)

Domestic Sales (in ₹ Cr)

Exports Sales (in ₹ Cr)

Stockist Sales (in ₹ Cr)

Total Sales (in ₹ Cr)

+90%

115.4

14.0

-9%

12.8

+35%

48.1

35.5

+60%

176.3

110.2

3 2 Y F

4 Q

60.7

Q4FY22

Q4FY23

Q4FY22

Q4FY23

Q4FY22

Q4FY23

Q4FY22

Q4FY23

+102%

356.9

40.4

-26%

29.8

-2%

169.4

165.7

+43%

552.4

386.9

3 2 Y F

177.1

FY22

FY23

FY22

FY23

FY22

FY23

FY22

FY23

✓ Direct Domestic sales to customers across various industries for Q4FY23 grew by 90% YoY and by 102% YoY for FY23

✓ Growth in selling directly to customers is on account of superior product and quality, multiple increased across industries

referrals base

customer

✓ Export growth was suppressed due to impact by inflationary environment and geopolitical tensions in Europe. We expect this to stabilize in FY24.

✓ Exports were also impacted on account acceptance of products made by few raw materials imported by customers global market, in the however our manufacturing of Mother Hollow pipes backward as integration plan, we expect this sales to pick up

our

✓ The share of

stockist

sales have reduced by 2% YoY on a FY23 basis. This channel continues to be a stable supply source but due to lower margins we have reduced its share in the total pie

Revenue Spilt across Channels (2/2)

Q4 FY23

FY23

32.2%

Q4 FY22

55.1%

12.7%

27.3%

Q4 FY23

7.3%

65.5%

43.8%

FY22

45.8%

10.4%

30.0%

FY23

5.4%

64.6%

Direct Domestic

Export

Stockist/Traders

✓ We have significantly increased our domestic sales from 55.1% in Q4FY22 to 65.5% in Q4FY23. Our share of direct domestics sales for FY23 stood at 65%

as compared to 46% in FY22

✓ Sales to stockists have decreased as this channel has relatively lower margins and is used by the company as a stable and minimal source of sales.

✓ On the exports front, there is decline due to geopolitical tensions and supply chain disruptions. Going forward, we expect the exports sales to increase

significantly on the back capacity additions and stable global environment

Revenue Spilt across Geographies

Q4 FY23

FY23

21.6%, 20.8

3.8%, 3.7

Q4 FY22

44.1%, 42.4

30.5%, 29.3

14.8%, 24.2

5.6%, 9.2

Q4 FY23

43.3%, 70.8

36.3%, 59.3

12.8%, 44.4

4.5%, 15.6

FY22

52.5%, 181.9

30.2%, 104.6

18.6%, 97.2

8.7%, 45.5

FY23

38.9%, 203.3

33.8%, 176.6

Gujarat

Maharashtra

Telangana

Others

✓ Following the strategy to diversify across states, our share in Maharashtra, has seen a significant increase from 30.5% in Q4FY22 to 36.3% in Q4FY23. Sales in

Maharashtra recorded a growth of 102% in Q4FY23 & 69% in FY23 on Y-o-Y basis

✓ Revenue from Telangana has increased from Rs. 15.6 crs in FY22 to Rs. 45.5 crs in FY23, a growth of 192% on Y-o-Y basis

✓ At the same time, the revenue share from other states has increased to 18.6% YoY in FY23 from 12.8% during FY22, giving us bigger market to play

✓ While until last year, we were selling majority in Gujarat, now our focus is shifting to other states as well. We have been successful in penetrating deeper on

Pan India basis on the back of our superior product quality & Brand for Venus across markets & industries.

Revenue Spilt across Products

Seamless Welded Others

Q4 FY23 (in ₹ Cr)

+60%

182%

-9%

53%

176

Q4FY23

110

16 Q4FY22

FY23 (in ₹ Cr)

+43%

107%

14%

15%

552

246

253

54 FY23

387

119

221

47 FY22

✓ Sales from high margin seamless pipes for Q4FY23 stood at Ra. 97 crs as compared to Rs. 34 crs in Q4FY22, a growth of 182%

✓ Welded pipes revenues de-grew by 9% on Y-o-Y

basis for Q4FY23 and stood at Rs. 54 crs.

✓ Share of seamless in total revenue increased to

55% in Q4FY23 from 31% in Q4FY22.

With commencement of Commercial production of our new capacity expansion, we envisage volume uptick across our product categories on the back of sustained demand momentum

✓ Revenue from seamless pipes stood at Rs. 246 crs in FY23 as compared to Rs. 119 crs in FY22, a growth of 107%

✓ Welded pipes witnessed a growth of 14% on Y-o-Y

basis for FY23 and stood at Rs. 253 crs

✓ Revenue from other sales stood at Rs. 54 crs

FY23 (Volume in MT)

+13%

13,127

74%

5,370

-9%

7,757

FY23

11,585

3,079

8,506

FY22

✓ Volume for Seamless pipes stood at 5,370 MTPA for FY23, a growth of 74% on a Y-o-Y basis

✓ Volumes for Welded pipes de-grew by 9% for FY23 on Y-o-Y basis. Total sales for Welded pipes stood at 7,757 MTPA for FY23

✓ Going forward, with new capacities in place, we are confident of volume growth across product categories

Seamless Welded

Q4 & FY23 Key Financial Highlights

Revenue (in ₹ Cr)

EBITDA (in ₹ Cr)

PAT (in ₹ Cr)

+43%

552.4

387.0

+40%

69.1

49.2

+40%

44.3

31.7

+60%

176.3

110.2

+57%

21.6

13.7

+67%

13.5

8.1

Q4FY22

Q4FY23

FY22

FY23

Q4FY22 Q4FY23

FY22

FY23

Q4FY22 Q4FY23

FY22

FY23

Gross Profit Margin

EBITDA Margin

PAT Margin

19.6%

18.6%

19.5%

12.5%

12.2% 12.7%

12.5%

7.3%

7.6%

8.2%

8.0%

Q4FY22

Q4FY23

FY22

FY23

Q4FY22

Q4FY23

FY22

FY23

Q4FY22

Q4FY23

FY22

FY23

✓ Revenue for Q4FY23 stood at Rs. 176 crs as compared to Rs. 110 crs in Q4FY22, a growth of 60%

✓ Revenue for FY23 stood at Rs. 552 crs as compared to Rs. 387 crs in FY22, a growth of 43%

✓ EBIDTA for Q4FY23 stood at Rs. 21 crs, an increase of 57% on Y- o-Y basis. EBIDTA for FY23 grew by 40%

✓ EBIDTA margins stood at 12.2% & 12.5% for Q4FY23 & FY23 respectively

✓ PAT for the quarter was up by 67% Y-o-Y and grew 40% on an for FY23 on Y-o-Y basis

Profit & Loss Account

Profit and Loss (in ₹ Cr)

Revenue from Operations

Cost of Goods Sold

Gross Profit

Gross Profit Margins (%)

Employee Cost

Other Expenses

EBITDA

EBITDA Margins (%)

Other Income

Depreciation

EBIT

Finance Cost

Profit before Tax

Tax

Profit After Tax

PAT Margins (%)

Q4FY23

Q4FY22

176.3

143.5

32.7

18.6%

3.2

7.92

21.6

12.2%

0.5

0.6

21.5

3.0

18.5

5.1

13.4

7.6%

110.2

88.6

21.63

19.6%

2.0

5.9

13.7

12.5%

0.6

0.4

14.0

2.8

11.2

3.1

8.1

7.3%

YoY

60.0%

51.4%

57.3%

54.1%

65.6%

66.4%

Q3FY23

136.1

109.2

26.9

19.7%

2.4

7.0

17.5

12.9%

0.3

0.5

17.3

2.3

15.1

3.8

11.3

8.3%

QoQ

29.5%

21.8%

23.1%

24.3%

22.9%

19.1%

FY23

552.4

444.6

107.81

19.5%

10.2

28.5

69.1

FY22

387.0

315.0

71.9

18.6%

6.2

16.4

49.2

12.5%

12.7%

2.4

1.97

69.5

9.8

59.7

15.5

44.2

2.1

1.4

49.9

7.1

42.9

11.2

31.7

8.0%

8.2%

YoY

42.8%

49.9%

40.4%

39.2%

39.6%

Balance Sheet

Assets (in ₹ Cr)

Non - Current Assets

Property Plant & Equipments

CWIP

Intangible assets

Other Non - Current Assets (Net)

Current Assets

Inventories

Financial Assets

(i)Investments

(ii)Trade receivables

(ii)Cash and cash equivalents

(iii)Bank balances other than cash and cash equivalents

Other Financial Assets

Other Current Assets

Total Assets

March-23

March-22

Equity & Liabilities (in ₹ Cr)

March-23

March-22

183.5

59.8

121.6

0.1

2.1

323.9

166.9

2.9

70.5

10.8

15.2

0.1

57.5

507.4

30.4

21.3

7.4

0.1

1.6

217.5

93.5

1.4

73.5

0.0

7.3

0.7

41.1

247.9

Total Equity

Share Capital

Reserves & Surplus

Non-Current Liabilities

Financial Liabilities

(i) Borrowings

(ii) Lease Liabilities

Provisions

Deferred Tax Liabilities

Current Liabilities

Financial Liabilities

(i) Borrowings

(ii) Trade Payables

(iii) Lease

(iii) Other Financial Liabilities

Other Current Liabilities

Current tax liabilities (net)

Total Equity & Liabilities

322.2

20.3

301.9

26.7

24.7

0.0

0.6

1.5

128.5

15.2

113.3

15.5

14.3

0.2

0.3

0.7

158.5

103.9

65.8

74.1

0.0

6.3

6.1

6.2

507.4

49.4

38.5

0.1

0.2

5.5

10.2

247.9

Abridged Cash Flow Statement

Particulars (in ₹ Cr)

Net Profit Before Tax

Adjustments for: Non - Cash Items / Other Investment or Financial Items

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Direct taxes paid (net of refund)

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the period

Cash & Cash equivalents at the end of the period

FY23

59.7

8.3

68.0

-40.4

27.6

18.7

8.9

-27.0

18.9

0.8

0.0

0.8

FY22

42.9

5.6

48.5

-97.4

-49

-11

-60

34.1

25.8

-0.1

0.1

Management Commentary

Commenting on the Q4 & FY23 performance of the company Mr. Arun Kothari, Managing Director for Venus Pipes & Tubes Limited Said,

“We are proud to announce that the company achieved its highest ever Revenue for Q4 FY23 & FY23 registering a growth of 60% & 43% respectively. Our EBIDTA & PAT grew by 40% Y-o-Y for FY23.

We are also delighted to inform that we have started our commercial production for our new capacity of Seamless pipes & higher dia welded pipes on 24th May 2023. Alongside, we have also commenced our production for Mother Hollow pipes as our capacity expansion for backward integration.

Arun Kothari Managing Director

During the year, we were able to diversify and increase our geographical presence in Maharashtra and Telangana. We continue to maintain our strong foothold in state of Gujarat while diversifying our presence across other states such as Madhya Pradesh & Andhra Pradesh.

We have doubled the sales of Seamless Pipes in FY23 on account of our product quality, deep customer connects, addition of new customers & brand created for Venus over the years. Exports sales were impacted during the quarter on account of geo-political tensions and inflationary environment, especially in the European market. We believe that this is temporary in nature and exports sales should start picking up since we have commenced backward integration.

We enter FY24, with positive outlook and continue to grow on the back of our new capacities commencing and backward integration coming into place. We continue to work on our goal of reaching out to as many sectors as we can and maintaining diversity across our products, clients and geographies with high spirits.

Venus Pipes & Tubes Limited

58+

Clientele base out of Fortune 500 Companies in India

Exports to more than

20+ Countries

86%

PAT CAGR from FY19 to FY23

Diversified

End-user Industries

Making ourselves as first reference and preference in stainless steel pipes and tubes manufacturer

Vision

To provide quality and flawless for dealing with customer / supplier and distributors.

service

Mission

Total installed capacity of 12,000 MT p.a. & capacity expansion plans up to 33,600 MT p.a. along with Backward Integration of 9,600 MT p.a.

Manufacturer and Exporter of Stainless Steel Tubes & Pipes in India

Working with the highest ethical in all standards aspects of our activities

Core Values

Product Portfolio & Applications

Products manufactured are as per the International Standards to cater both Domestic & International markets

Stainless Steel High Precision and Heat Exchanger Tubes

Stainless Steel Hydraulic and Instrumentation Tubes

Stainless Steel Seamless Pipes

Stainless Steel Welded Pipes

Stainless Steel Box Pipes

• Heat Exchangers • Pressure Vessels • Chemical and Fertilizer

• Marine Equipment’s • Refinery and Petrochemical • Process Industry

• Dairy/Pharmaceutical

industry

• Nuclear Power Generation • Automotive

• Aerospace

• Nuclear & Thermal Power

generation • Oil and Gas • Process Industries

• Chemical and Fertilizer • Nuclear Power • Food & Beverage Processing

• Automotive • Aerospace • Medical and Pharmaceutical

Applications

• Onshore and Offshore Oil and Gas Production, Exploration and Transport

•

(OCTG – Oil Country Tubular Goods)

• Chemical & Petrochemical

• Energy and Power • Mechanical and Plant

Engineering

• Marine Equipment’s

• Pulp & Paper • Pharmaceutical Industry

• Chemical & Petrochemical • Gas Industry • Power Generation

• Mechanical and Plant

Engineering

• Marine Equipment’s • Pulp & Paper

• Pharmaceutical Industry

• Multiple industries especially

for industries having structural fittings like • Factories • Warehouses

• Temporary structures

Multiple End User Industry

e s U d n E d e

i f i s r e v D

Chemical

Engineering

Fertilizers

Pharmaceutical

Power

Food Processing

Paper

Oil & Gas

Aerospace

State of the Art Infrastructure…

Strategically located Manufacturing facility at Dhaneti (Kutch) within proximity of Kandla & Mudra ports for enabling imports and exports

Facility on a land admeasuring 92,978 Sq. Mt.

Total installed capacity of 12,000 MT per annum with approximate utilization of 92 % for FY23

…with Stringent Quality Inspection & Testing

Rigorous testing system for our products to Ensure Finest Quality is delivered for our products

Tensile Test

Hydro-static Test

Hardness Test

Eddy Current Test

Quality Tests

IGC Test

Air under Water Test

s t s e T e v i t c u r t s e D

Reverse-bend Test

Flattening, Flaring & Flange Test

Spectro Test

Borescopic Test

N o n - D e s t r u c t i v e T e s t s

Marquee Clientele

Awards & Certifications

Calendar Years

Certifications & Accreditations

2016

2017

2018

Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 9001: 2015, ISO 14001:2015 requirements

Our Company has been verified and recognized as material manufacturer according to AD 2000 - Merkblatt W0 by The TÜV NORD Systems GmbH & Co. KG.

Our Company has been certified as quality-assurance system related to the material by The TÜV NORD Systems GmbH & Co. KG.

Our Company has received approval for manufacturing of Carbon Steel, Alloy Steel, Stainless Steel Welded & Seamless Pipes up to 400 mm NB / Tubes up to 101.60 mm O.D. & U-Tubes under inspection of Indian Boiler Regulations – 1950 from the Office of the Director of Boiler, Gujarat.

Our manufacturing facilities at Dhaneti have been accredited with management system standards certificate for compliance with ISO 45001: 2018

ISO Certificate

IBR Certificate

TUV – AD 200 Merkblatt W0

Experienced Board of Directors

Jayantiram M Choudhary

Chairman and Non-Ex Director

Arun Kothari Managing Director

Megharam S Choudhary

Whole Time Director

Dhruv M Patel

Whole Time Director

Associated with the Company since its incorporation. Over ten years of experience in the steel industry and four years as director of Accuracy Shipping Limited

Associated with the Company since 2021 as a Director. A qualified Chartered Accountant and holds a bachelor’s degree in commerce from Rajasthan University

Associated with our Company since its incorporation. Over 15 years of experience in the stainless steel welded pipes and tubes industry.

Associated with the Company since 2015. Holds a bachelor’s degree in engineering from University of Pune and a master’s degree in technology from CEPT University.

Kailash Nath Bhandari

Independent Director

Pranay Ashok Surana

Independent Director

Komal Lokesh Khadaria

Independent Director

Shyam Agarwal

Independent Director

Bachelor’s degree in law from Jodhpur University and has over 18 years of experience in the insurance sector. On the Board of Hindalco Industries Limited as an independent director

Masters in engineering from the Indian Institute of Technology, Bombay. Founder of Flyrobe and has been featured on the coveted Forbes 30 under 30 in the Asia list (2017) and in the India list (2019).

Member of Institute of Companies Secretaries of India (“ICSI”) and holds a bachelor’s degree in commerce. Holding nine years of experience and has held the position of Chairperson of Surat Chapter of ICSI

Doctorate in law from University of Rajasthan and has over fifteen years of experience. A member of the quality review board of the ICAI, New Delhi; and Chairman and independent director of ICMAI Registered Valuers Organization, New Delhi.

Strong Management Team

Jayantiram M Choudhary

Chairman and Non-Ex Director

Arun Kothari Managing Director

Associated with the Company since its incorporation. Over ten years of experience in the steel industry and four years as director of Accuracy Shipping Limited

Associated with the Company since 2021 as a Director. A qualified Chartered Accountant and holds a bachelor’s degree in commerce from Rajasthan University

Megharam S Choudhary

Whole Time Director

Associated with our Company since its incorporation. Over 15 years of experience in the stainless steel welded pipes and tubes industry.

Dhruv M Patel

Whole Time Director

Associated with the Company since 2015. Holds a bachelor’s degree in engineering from University of Pune and a master’s degree in technology from CEPT University.

Pavan Kumar Jain Company Secretary and Compliance Officer

Associated with us as manager (finance and accounts) since August 2020. A qualified company secretary holding three (3) years of experience in finance, accounting and secretarial work

Kumar Shishir C Sinha President (Marketing)

With our Company since March 01, 2021. Holds a degree of bachelors in arts from Magadh University and has over 30 years of experience in the stainless- steel pipes and tubes.

Kunal Bubna President (Finance & Accounts)

Associated with the Company since July 2021. Is a fellow member of the Institute of Chartered Accountants of India and the ICSI with fourteen (14) years of experience.

Om Prakash Mishra Vice President (Operations)

With our Company since December 2021. He holds a degree of bachelors in engineering from University of North Bengal and 23 years of experience in manufacturing industry.

Delivering Value to Stakeholders

May 2022

✓ Listing of Venus Pipes & Tubes Limited

✓ Listing done on BSE & NSE

✓ Fresh Issue of Equity shares aggregating to ₹ 165.4

Cr.

✓ Objects of the Issue :

1. Financing the project cost towards

• Capacity expansion

• Technological upgradation

• Cost optimization of our operations & support to the

manufacturing facility and

• Backward integration for manufacturing of hollow

pipes

2. Long-term working capital requirements

✓ On 21st October 2021, we had made private

placement of ₹ 59.443 Cr.

INDUSTRY OUTLOOK

Industry Outlook

✓ The Indian stainless-steel sector is the 2nd largest producer and consumer in the world and has a total manufacturing capacity of more than 6.8 Mn

tons of stainless steel annually

✓ India’s per capital stainless steel consumption has increased from 1.2 Kg in 2010 to 2.5 Kg in 2022, however its consumption is

comparatively lower compared to world average of 6 Kg per capita

Global Stainless Steel & Pipes Industry (USD bn)

Steel Pipe & Tube Consumption in India (Mn Tons)

+4%

5.0

5.2

4.2

4.3

5.5

5.3

6.7

6.3

5.9

5.4

6.2

5.6

CY2019

CY2025

2016-17

2017-18

2018-19

2019-20

2020-21

FY2022 E

Production

Consumption

Source: Industry reports

Industry Growth Drivers

✓ Significant demand for Pipes & Tubes specifically from industry like chemical , pharma, engineering etc.

✓ In value terms, the size of Chemical industry is currently estimated at USD 178 Bn which is slate to grow to USD 300 Bn by 2025, growing annually by 9% per annum

✓ During FY 2021-30, the annual turnover in Indian Pharmaceutical Industry is expected to grow by a CAGR of 10%, to reach INR 7,840 Bn

Sector specific schemes by Government as below shall act as an aid in generating demand for steel pipes & tubes in India

✓ Chemicals

▪ Chemicals Promotion and Development Scheme (CPDS): ▪ Petroleum, Chemicals, and Petrochemical Investment Regions (PCPIR)

✓ Oil & Gas

▪ Hydrocarbons Exploration Licensing Policy (HELP)

✓ Pharmaceutical

▪ Scheme for Development of Pharmaceutical Industry ▪ Schemes to improve bulk drug production in India

Policies Driving Growth

Major Policies in Steel & Steel Pipes& Tubes Sector

Demand Generation from Government Initiatives

✓ Strengthening the raw material supply chain

✓ Stainless steel pipes notified under Steel Quality Control Order

✓ Anti-Dumping Duty

✓ Domestically manufactured iron and steel products policy (DMISP)

✓ Duty Reduction Structure

✓ Production Linked Incentives (PLI) Scheme The government has announced INR 1.97 Tn to be spent in the next 5 years for PLI schemes in 13 Sectors

✓ Atmanirbhar Bharat Packages

✓ National Manufacturing Policy

✓ National Infrastructure Pipeline (NIP)

Source: Industry reports

STRATEGIES TO SUPPORT GROWTH

Capacity Expansion & Backward Integration

Capacity Expansion for Finished Products (MTPA)

Pursuing Capacity Expansion….

~5x Capacity Expansion

6,900

4,800

2,100 FY19

9,300

7,200

2,100 FY20

10,800

7,200

3,600

FY21

7,200

3,600

FY22

12,000

8,400

3,600

FY23

33,600

~3x

Particulars

Current

Post Expansion

Size (mm)

Capacity

Size (mm)

Capacity

Commencement of Commercial Production

Seamless

6 – 114.3

3,600 MTPA

6 – 168.3

9,600 MTPA

24th May 2023

24,000

9,600

Q1FY24E

Welded

6 – 219.3

8,400 MTPA 6 – 1,219.2

24,000 MTPA

Tube Mills – 24th May 2023, LSAW – Coming month

Mother Hollow

9,600 MTPA

24th May 2023

….alongside Backward Integration

• Backward integration strategy of setting up a piercing line for manufacturing of

hollow pipes

To Cater to increasing demand in the Domestic & Export Markets

• With the piercing plant, will be able to produce hollow pipes from SS round bar

Increase in Capacity

Increase in Market Share

Backward Integration

Improving Margins

Cost Optimization

Increase in Profitability

Geographical Expansion

Exports in More than 20+ Countries

FY23

5.4%

₹ 29.8 Crs

10.5%

₹ 40.4 Crs

4.8%

₹ 14.7 Crs

FY21

3.4%

₹ 6.0 Crs

Leverage our Existing Relationship to Deepen our Presence in Export Markets

Contribution from Export Revenue

Improving Efficiency & Brand Positioning

Productivity & Efficiency Enhancement

Creating Brand for “VENUS” thereby increasing the contribution from direct sales for higher realizations

Install acid regeneration plant for lower consumption of acids to improve operating margins and better plant productivity

Significant Environmental and Economic advantages shall follow from reduced usage of raw acids

Enterprise Resource Planning (“ERP ) to be introduced for efficient control over our manufacturing process & productivity

International Standards

Trade Fares

Exhibitions

Digital Marketing

Customer Centric

Various Brand Building Activities

Key Takeaways

Capacity Expansion

Proposing to expand our existing manufacturing capacity for welded pipes/tubes and seamless pipes/tubes for manufacturing higher diameter pipes/tubes.

Geographical Expansion

We intend to leverage our existing relationships to further deepen our presence in the international market, particularly in the European Union.

Brand Value

We intend to make consistent efforts to strengthen our brand “Venus” and enhance our brand visibility for attaining parity with our industry peers.

Backward Integration We plan to set up a piercing line for manufacturing of hollow pipes with the capacity of 800 MT per month, as our backward integration strategy. With the piercing plant, we will be able to produce hollow pipes from SS round bar.

Better Efficiency We are proposing to install an acid regeneration plant (“ARP”) where the consumption of acid in our manufacturing process shall be reduced substantially, and we believe that the same shall help us in improving our operating margins.

HISTORICAL FINANCIAL & OPERATIONAL HIGHLIGHTS

Product Category Split

Revenue (in ₹ Cr)

Volume (in MTS)

253

+33%

221

+16%

7,412

7,146

8,506

7,757

125

139

4,222

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

246

5,370

+49%

3,122

3,079

+65%

119

1,099

1,102

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

d e d e W

s s e m a e S

✓ Revenue and Volumes have

grown tremendously across both our segments in a short span of just 5 years

✓ Volume growth for Welded has been at a CAGR of 16% and for Seamless the volume growth was 49% CAGR between FY19-FY23

✓ Revenues have also grown at a staggering CAGR of 33% for welded and at CAGR of 65% for seamless between FY19-FY23

Direct Sales Split

Direct Domestic Sales Spilt

6.8% 3.6% 4.3%

FY20

44.6%

40.6%

3.4%

5.3%

2.9%

FY21

49.7%

38.8%

1.1%

7.4%

FY22

59.7%

11.8%

30.7%

1.2% 5.0%

32.3%

FY23

49.7%

Chemicals

Engineering

Fertilizers

Pharma

Others

✓ Revenue contribution from Other industries has increased from 4.3% in FY20 to 11.8% in FY23

✓ Revenue dependency from chemical industry has reduced from 44.6% in FY20 to 32.3% in FY23

✓ Due to the capex cycle revival in India, the share of Engineering has increased from 40.6% in FY20 to 49.7% in FY23

Sales Split across Geography

y h p a r g o e G

e u n e v e r e s i w e t a t S

FY21

57.9%

37.4%

4.8%

43.8%

FY22

45.8%

30.0%

FY23

5.4%

64.6%

10.5%

Domestic

Export

Stockist/Traders

✓ Revenue contribution from exports have increased from 4.8% in FY21 to 5.4% in FY23

✓ Direct domestic sales to end consumers have increased from 37.4% in FY21 to 64.6% in FY23

✓ Revenue contribution from Stockist/Traders has reduced from 57.9% in FY21 to 30% in FY23

5.2%

7.7%

1.0%

19.5%

FY21

9.4%

4.5%

3.4%

FY22

52.5%

15.8%

2.8%

8.7%

38.9%

FY23

66.7%

30.2%

33.8%

✓ Revenue contribution from Other States increased by 3x between FY21 to FY23 aligning with goal of expanding across domestic market

✓ Revenue from states like Maharashtra and Telangana went up significantly giving us better access across regions

Gujarat

Maharashtra

Telangana

Tamil Nadu

Others

Key Historical Financials

Revenue (in ₹ Cr)

EBITDA (in ₹ Cr)

PAT (in ₹ Cr)

552

+47%

309

387

178

119

+70%

+86%

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

Gross Profit Margin

EBITDA Margin

+510 bps

18.6%

19.5%

14.4%

11.7%

15.5%

+550 bps

11.2%

12.7% 12.5%

7.0%

6.5%

PAT Margin

+490 bps

7.6%

8.2%

8.0%

3.1%

2.3%

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23

Historical Profit & Loss Account

Profit and Loss (in ₹ Cr)

Revenue from Operations

Cost of Goods Sold

Gross Profit

Gross Profit Margins (%)

Employee Cost

Other Expenses

EBITDA

EBITDA Margins (%)

Depreciation

Other Income

EBIT

Finance Cost

Share in Profit/(loss) in JV and Associates

Profit before Tax

Tax

Profit After Tax

PAT Margins (%)

FY23

552.4

444.6

107.8

19.5%

10.2

28.5

69.1

12.5%

2.4

1.97

69.5

9.8

0.0

59.7

15.5

44.2

8.0%

FY22

386.9

315.0

71.9

18.6%

6.2

16.4

49.3

12.7%

1.4

2.1

49.9

7.1

0.0

42.9

11.2

31.7

8.2%

FY21

309.3

261.5

47.9

15.5%

3.2

9.9

34.8

11.2%

1.0

2.7

36.5

5.6

0.0

31.0

7.32

23.6

7.6%

FY20

177.8

157.0

20.8

11.7%

2.7

6.5

11.6

6.5%

2.1

1.5

11.0

4.6

0.0

6.5

2.4

4.1

FY19

118.8

101.6

17.1

14.4%

2.5

6.3

8.3

7.0%

2.0

1.8

8.1

3.1

0.0

4.9

1.3

3.7

2.3%

3.1%

CAGR

58%

510 bps

70%

550 bps

71%

87%

86%

490 bps

Historical Balance Sheet

Assets (in ₹ Cr)

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Equity & Liabilities (in ₹ Cr)

Mar-23 Mar-22 Mar-21 Mar-20 Mar-19

Non - Current Assets

Property Plant & Equipment's

CWIP

Intangible assets

Other Financial Assets

Other Non - Current Assets (Net)

Current Assets

Inventories

Financial Assets

(i)Investments

(i)Trade receivables

(ii)Cash and cash equivalents

(iii)Bank balances other than cash and cash equivalents

Other Financial Assets

Other Current Assets

Total Assets

183.5

59.8

121.6

0.1

2.1

30.4

21.3

7.4

0.1

1.7

20.9

19.5

0.1

1.3

323.9

217.5

116.6

166.9

93.5

44.2

17.5

12.2

3.2

0.1

2.0

89.7

44.3

10.0

9.8

0.3

69.1

36.2

1.4

73.5

0.0

7.3

0.7

2.9

70.5

10.8

15.2

0.1

57.5

45.1

30.7

21.6

0.1

4.4

2.6

0.4

5.0

0.0

9.3

0.3

1.5

1.1

8.4

41.1

20.4

Total Equity

Share Capital

Reserves & Surplus

Non-Current Liabilities

Financial Liabilities

(i) Borrowings

(ii) Lease Liabilities

Provisions

Deferred Tax Liabilities

Current Liabilities

Financial Liabilities

(i) Borrowings

(ii) Trade Payables

(iii) Lease

(iii) Other Financial Liabilities

Other Current Liabilities

Current tax liabilities (net)

Provisions

322.2

128.5

20.3

301.9

26.7

15.2

113.3

15.6

39.9

8.7

31.2

19.5

16.3

12.2

8.7

7.5

8.7

3.4

20.1

14.6

24.7

14.3

18.5

18.6

14.4

0.0

0.6

1.5

0.2

0.3

0.7

0.3

0.2

0.4

0.2

0.9

0.1

0.2

158.5

103.7

78.2

70.9

52.3

65.8

74.1

0.0

6.3

6.1

6.2

0.0

54.4

33.5

0.0

0.2

5.5

10.2

0.0

19.0

42.4

0.1

6.2

10.3

0.0

24.0

41.3

0.1

0.0

3.1

2.4

0.0

15.0

32.5

0.1

2.9

1.9

0.0

507.4

247.9

137.5

107.2

79.1

Total Equity & Liabilities

507.4

247.8

137.5

107.2

79.1

Historical Abridged Cash Flow Statement

Particulars (in ₹ Cr)

Net Profit Before Tax

Adjustments for: Non -Cash Items / Other Investment or Financial Items

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Direct taxes paid (net of refund)

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the period

Cash & Cash equivalents at the end of the period

FY23

59.7

8.3

68.0

-40.4

27.6

18.7

8.9

-27.0

18.9

0.8

0.0

0.8

FY22

42.9

5.6

48.5

-97.4

-49.0

11.0

-60.0

34.1

25.8

0.0

0.1

0.0

FY21

31.0

5.1

36.1

-24.0

12.1

0.7

11.3

-2.4

-9.2

-0.3

0.4

0.1

FY20

6.5

4.1

10.6

-7.1

3.5

1.1

2.4

-12.4

10.0

0.1

0.3

0.4

FY19

4.9

2.6

7.6

-12.9

-5.4

1.3

-6.7

-1.4

7.7

-0.3

0.6

0.3

Key Return Ratios

ROE

59%

Debt / Equity Ratio

2.6

2.4

ROCE

61%

31%

25%

21%

0.9

30%

35%

31%

0.5

0.3

FY19

FY20

FY21

FY22

FY23^

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY21

FY22

FY23#

#Excluding CWIP of 121.6 crores from Total Capital Employed; ^Excluding Rs. 107.9 crs raised via IPO for Capacity expansions

Thank You

Venus Pipes & Tubes Limited

CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna (President – Accounts & Finance) cs@venuspipes.com

Strategic Growth Advisors Private Limited

CIN: U74140MH2010PTC204285 Mr. Sagar Shroff / Mr. Ayush Haria sagar.shroff@sgapl.net / ayush.haria@sgapl.net +91 98205 19303 / +91 98204 62966

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