Venus Pipes & Tubes Limited has informed the Exchange about Investor Presentation
Date: 03/08/2023
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: Q1 FY24 Investor Presentation
With reference to above captioned subject, please find attached Q1 FY24 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 August 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
2
Q1 FY24 FINANCIAL & OPERATIONAL HIGHLIGHTS
s t h g
i l
i
h g H y e K
Committed on being a leading manufacturer and provider of high-quality Stainless-steel pipes and tubes for demanding and challenging applications
Robust Quarterly Performance
Revenue
Rs. 179.6 Crs Up by 58.1% Y-o-Y
EBITDA
Rs. 27.6 Crs Up by 91.7% Y-o-Y
EBITDA Margins 15.4% +269 bps
PAT
Rs. 17.4 Crs Up by 91.2% Y-o-Y
PAT Margins 9.7% +168 bps
Key Operational Updates
✓ Increase in capacity of Seamless Pipes - The company is planning to add further 400 MT per
month of Seamless pipes which is expected to get installed in the coming six months
✓ Increase in size of LSAW Mill - The LSAW plant being proposed initially was to manufacture up to 48-inch dia pipes which has been increased to 56-inch pipes which will increase the SKU’s being offered to the customers
✓ Operational efficiency in Piercing Mill modifications had been done which will ultimately lead to increase production of Mother Hollow Pipes
- During installation of Piercing mill, a few lead to higher operational efficiency and will
✓ Total capex will be in the range of Rs. 40-45 Crs which will be funded from internal accruals
4
Unlocking New Horizons : Tripling Capacity and Beyond
Mother Hollow Pipes Backward Integration :
✓ 100% backward integration with setting up of piercing line to manufacture mother hollow pipes from
round bars
✓ With this, the company will be able to source in house raw material and reduce dependency on China
with expansion in margins
Seamless Pipes Expansion :
✓ The company has almost tripled its capacity of Seamless Pipes from 3,600 MTPA to 9,600 MTPA
✓ The company has also increased the size of seamless pipes and can now manufacture higher
diameter pipes ranging from 6 to 168.3 mm
✓ The company is planning to add further 400 MT per month of Seamless pipes which is expected to
get installed in the coming six months
Welded Pipes Expansion :
✓ The company has also tripled its capacity of Welded Pipes from 8,400 MTPA to 24,000 MTPA
Capacity increased by ~3x from 12,000 MTPA to 33,600 MTPA for Seamless and Welded Pipes
33,600
24,000
9,600
FY24
12,000
8,400
3,600
FY23
✓ The company has also increased the size of welded pipes and can now manufacture higher diameter
Welded
Seamless
pipes ranging from 6 to 1,422.4 mm
✓ The LSAW plant being proposed initially was to manufacture pipes up to 48-inch dia which has been
increased to 56-inch dia pipes which will increase the SKU’s being offered to the customers
✓ This will open doors to expand into multiple segments where higher diameter pipes are required
Along with Backward Integration of Seamless Pipes of 9,600 MTPA for manufacturing of Mother Hollow pipes
5
Revenue Split across Segment
Seamless (in ₹ Cr)
Welded (in ₹ Cr)
Others (in ₹ Cr)
Total (in ₹ Cr)
+149%
+1%
111.6
60.3
60.8
-15%
8.5
7.2
+58%
179.6
113.6
44.8
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Q1FY23
Q1FY24
7%
39%
Q1 FY23
53%
4%
34%
Q1 FY24
62%
✓ Revenue from seamless grew by ~150% on Y-o-Y basis on account of higher penetration for value added products among the existing customer, addition of new customers and capacity expansion
✓ Revenue from welded stood flat, on account of dip in RM prices as compared to Q1FY23. Volumes for welded pipes has witnessed growth on a Y-o-Y basis
✓ Share of Seamless sales of the total revenues increased
from 39% in Q1FY23 to 62% in Q1FY24
Seamless
Welded
Others
6
Revenue Split across Geographies
Domestic (in ₹ Cr)
Exports (in ₹ Cr)
Stockist/Traders (in ₹ Cr)
Total (in ₹ Cr)
+95%
122.3
-45%
14.1
62.8
7.7
+35%
49.6
36.7
+58%
179.6
113.6
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Q1FY23
Q1FY24
32%
12%
Q1 FY23
55%
28%
4%
Q1 FY24
68%
Domestic
Exports
Stockists/Traders
✓ Domestic revenue grew for Q1FY24 stood at Rs. 122.3 crs as compared to 62.8 crs in Q1FY23, a growth of 95% Y-o-Y
✓ Exports saw a drop on account of supply chain disruptions & geo-political uncertainties. As the on- ground situations are improving, company is optimistic of the export revenues to scale exponentially
✓ Stockists formed 28% of sales for Q1FY24 compared 32% for same period last year. However, this channel continues to be a stable source of sales
7
Key Financial Highlights
Revenue (in ₹ Cr)
EBITDA (in ₹ Cr)
+58%
179.6
113.6
+92%
27.6
14.4
9.1
PAT (in ₹ Cr)
+91%
17.4
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Gross Profit Margin
+255 bps
22.9%
20.3%
EBITDA Margin
+269 bps
PAT Margin
+168 bps
15.4%
9.7%
12.7%
8.0%
Q1FY23
Q1FY24
Q1FY23
Q1FY24
Q1FY23
Q1FY24
8
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 (%)
Q1FY24
Q1FY23
179.6
138.5
41.1
22.9%
4.0
9.5
27.6
15.4%
0.5
1.4
26.7
3.3
23.4
6.0
17.4
9.7%
113.6
90.5
23.1
20.3%
2.3
6.4
14.4
12.7%
0.6
0.4
14.6
2.5
12.1
3.0
9.1
8.0%
YoY
58.1%
77.9%
91.7%
82.9%
93.4%
91.2%
Q4FY23
176.3
143.5
32.8
18.6%
3.2
7.9
21.7
12.3%
0.5
0.6
21.6
3.0
18.6
5.1
13.5
7.6%
QoQ
1.9%
25.3%
27.2%
23.6%
25.8%
28.9%
9
Management Commentary
Commenting on the Q1 FY24 performance of the company Mr. Arun Kothari, Managing Director for Venus Pipes & Tubes Limited Said,
“We are happy to report robust financial performance with Revenues growing at 58% Y-o-Y and EBITDA growing at 92% Y-o-Y, whilst EBIDTA margins increasing by ~269 bps Y-o-Y
We started FY24 by commencing operations at our new facilities and now have tripled our capacity along with backward integration of manufacturing of mother hollow pipes. This has not only enhanced our competitiveness but also enabled us to enter new markets and customer segments.
Arun Kothari Managing Director
The industry is witnessing a notable shift towards organized players due to the compulsory BIS certification and the implementation of Anti-Dumping Duty (ADD). This provides us a great opportunity to seize the industry's structural changes. Moreover, the Indian capex cycle is underway, driven by government support and favorable policies, resulting in substantial investments across industries and an increased demand for our products.
With wide range of products SKU’s and enhanced capacities, robust domestic demand and increased opportunities in the exports markets, we are optimistic of sustaining the growth momentum going forward.
We are well positioned to capture new markets, forge stronger partnerships, and continue to raise the bar in terms of product excellence and customer satisfaction. At Venus, the company strives to increase its market share by addition in the product portfolio, expand the client base and serve the existing clients better.”
10
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 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
11
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
12
Multiple End User Industry
e s U d n E d e
i f i s r e v D
i
Chemical
Engineering
Fertilizers
Pharmaceutical
Power
Food Processing
Paper
Oil & Gas
Aerospace
13
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.
14
…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
15
Marquee Clientele
16
Awards & Certifications
Calendar Years
Certifications & Accreditations
2016
2017
2017
2018
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
IBR Certificate
TUV – AD 200 Merkblatt W0
ISO Certificate
17
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.
18
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.
20
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%
41
32
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
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)
Capacity Expansion….
~5x Capacity Expansion
6,900
4,800
2,100 FY19
9,300
7,200
2,100 FY20
10,800
10,800
7,200
3,600
FY21
7,200
3,600
FY22
12,000
8,400
3,600
FY23
33,600
~3x
Particulars
Previous
Current
Size (mm)
Capacity
Size (mm)
Capacity
Seamless
6 – 114.3
3,600 MTPA
6 – 168.3
9,600 MTPA
24,000
9,600
FY24
Welded
6 – 219.3
8,400 MTPA
6 – 1,422.4
24,000 MTPA
Mother Hollow
NA
0
NA
9,600 MTPA
….alongside Backward Integration • Backward integration strategy of setting up a piercing line for manufacturing of
hollow pipes
• With the piercing plant, we are able to produce hollow pipes from SS round bar
To Cater to increasing demand in the Domestic & Export Markets
Increase in Capacity
Increase in Market Share
Backward Integration
Improving Margins
Cost Optimization
Increase in Profitability
25
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
26
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
27
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.
01
03
05
02
04
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.
28
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
81
4,222
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
246
5,370
+49%
3,122
3,079
+65%
96
119
33
33
1,099
1,102
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
d e d e W
l
l
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
30
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%
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
31
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
32
Key Historical Financials
Revenue (in ₹ Cr)
EBITDA (in ₹ Cr)
PAT (in ₹ Cr)
552
+47%
309
387
178
119
69
44
+70%
49
35
+86%
24
32
8
12
4
4
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
33
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
34
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 & Equipments
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
2.9
70.5
10.8
15.2
0.1
57.5
1.4
73.5
0.0
7.3
0.7
-
-
-
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
20.3
301.9
26.7
128.5
15.2
113.3
15.6
39.9
8.7
31.2
19.5
16.3
8.7
7.5
20.1
12.2
8.7
3.4
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
0.4
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
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
35
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
36
Key Return Ratios
ROE*
59%
31%
25%
44%
14%
Debt / Equity Ratio
ROCE*
2.6
2.4
61%
57%
30%
30%
24%
0.9
0.5
0.3
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23#
*The company had made Private Placement on 21st October 2021 of ₹ 59.443 cr # Excluding CWIP of 121.6 crores from Total Capital Employed
37
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
38