Venus Pipes & Tubes Limited has informed the Exchange about Investor Presentation
Date: 26/10/2023
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: Q2 FY24 Investor Presentation
With reference to above captioned subject, please find attached Q2 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 October 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
Q2 & H1FY24 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
Key Operational Highlights ✓ During the quarter, the company witnessed highest ever quarterly revenue of Rs 191.4 crores with EBITDA margins surpassing 18%. For H1 FY24, the revenues stood at Rs. 371 crores witnessing a growth of 54.6% Y-o-Y with margins of 16.8%
✓ Revenues for Q2FY24 from Stainless steel seamless and Welded pipes
witnessed a growth of 153% and 1% Y-o-Y respectively
✓ Volume for Seamless Pipes witnessed a growth of more than 100% and Welded Pipes witnessed a growth in high teens for Q2FY24 compared to same period last year
✓ Venus has experienced remarkable export growth, thanks to our strong on-ground team and consistent dedication to quality. Exports made up ~15% of the total revenues for Q2FY24 standing at Rs 28.5 crores vs Rs 1.6 crores for Q2FY23
✓ We reported a positive net cashflow from operations of Rs 6.5 crores for
H1FY24
✓ The planned capex to add an additional 400 MTPM of seamless pipes is
on schedule and is poised for completion by Q4FY24
Robust Quarterly Performance
Q2FY24
Revenue
EBITDA
PAT
Rs. 191.4 Crs Up by
51.4% Y-o-Y
Rs. 34.8 Crs Up by 124.5% Y-o-Y
Rs. 20.3 Crs
Up by 97.1% Y-o-Y
EBITDA Margins 18.2% +592 bps
PAT Margins 10.6% +246 bps
Revenue
Rs. 371.0 Crs Up by
54.6% Y-o-Y
H1FY24
EBITDA
Rs. 62.4 Crs Up by 108.0% Y-o-Y
PAT
Rs. 37.7 Crs
Up by 93.3% Y-o-Y
EBITDA Margins 16.8% +432 bps
PAT Margins 10.2% +204 bps
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
imports 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 adding further 400 MT per month of Seamless pipes which is expected to get
installed by Q4 FY24
Welded Pipes Expansion :
✓ The company has also tripled its capacity of Welded Pipes from 8,400 MTPA to 24,000 MTPA
Capacity increased by ~3.2x from 12,000 MTPA to 38,400 MTPA for Seamless and Welded Pipes
~3.2x
33,600
24,000
9,600
FY24
38,400
24,000
14,400
FY25E
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 – Q2 & H1FY24
Seamless (in ₹ Cr)
Welded (in ₹ Cr)
Others (in ₹ Cr)
Total (in ₹ Cr)
+151%
219.9
+1%
136.7
138.3
+153%
108.3
87.6
42.8
+1%
76.4
77.5
-19%
15.7
12.7
+55%
371.0
-24%
7.2
5.5
+51%
191.3
240.0
126.4
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
6%
Q2 FY23
34%
60%
3%
7%
3%
40%
Q2 FY24
57%
36%
H1 FY23
57%
38%
H1 FY24
59%
Seamless
Welded
Others
6
Revenue Split across Geographies – Q2 & H1FY24
Domestic (in ₹ Cr)
Exports (in ₹ Cr)
Stockists (in ₹ Cr)
Total (in ₹ Cr)
+57%
232.7
+30%
148.0
110.4
85.2
+131%
36.2
+1681%
28.5
15.7
1.6
+34%
102.0
76.3
+32%
52.4
39.6
+55%
371.0
+51%
191.3
240.0
126.4
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
31%
1%
Q2 FY23
68%
27%
15%
Q2 FY24
58%
32%
6%
27%
H1 FY23
H1 FY24
62%
10%
63%
Domestic
Exports
Stockists
7
Key Financial Highlights – Q2 & H1FY24
Revenue (in ₹ Cr)
EBITDA (in ₹ Cr)
PAT (in ₹ Cr)
+55%
371.0
+108%
62.4
+93%
37.7
+51%
191.4
240.0
126.4
+125%
34.8
30.0
+97%
20.3
19.5
15.5
10.3
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Gross Profit Margin
EBITDA Margin
PAT Margin
+857 bps
28.4%
+566 bps
25.7%
+592 bps
18.2%
+432 bps
16.8%
19.9%
20.1%
12.3%
12.5%
+246 bps
+204 bps
10.6%
10.2%
8.1%
8.1%
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
Q2FY23
Q2FY24
H1FY23
H1FY24
8
Historical half year performance
Revenue (in ₹ Cr)
EBITDA (in ₹ Cr)
PAT (in ₹ Cr)
67% of FY23 Revenue achieved in H1FY24
370.9
552.4
312.4 (57%)
240.0 (43%)
FY23
H1 FY24
387.0
216.4 (56%)
170.5 (44%)
FY22
90% of FY23 EBITDA achieved in H1FY24
62.3
69.1
39.1 (57%)
30.0 (43%)
FY23
H1 FY24
H2
H1
49.2
26.5 (54%)
22.7 (46%)
FY22
85% of FY23 PAT achieved in H1FY24
37.7
44.2
24.7 (56%)
19.5 (44%)
FY23
H1 FY24
31.7
16.0 (51%)
15.6 (49%)
FY22
✓ Historically, H2 has always been a stronger half as compared to H1.
✓ With all our capacities operational in May 2023 & July 2023 along with backward integration of seamless pipes, we anticipate not only
sustaining but enhancing this positive trajectory
✓ Improving demand environment and order visibility, we are optimistic of growth momentum to sustain going forward
✓ Increased capacities and increasing utilization will drive the revenues and margins going froward
9
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 (%)
Q2 FY24
Q2 FY23
Y-o-Y
51.4%
116.7%
Q1 FY24
179.6
138.5
41.1
Q-o-Q
6.6%
32.4%
H1 FY24
H1 FY23
371.0
275.5
95.5
240.0
191.8
48.2
Y-o-Y
54.6%
98.1%
126.4
101.3
25.1
19.9%
856.5 bps
22.9%
553.8 bps
25.7%
20.1%
565.8 bps
2.3
7.3
15.5
4.0
9.5
27.6
9.5
23.6
62.4
4.6
13.6
30.0
26.1%
124.5%
108.0%
191.4
137.0
54.4
28.4%
5.5
14.1
34.8
18.2%
12.3%
591.9 bps
15.4%
281.4 bps
16.8%
12.5%
431.9 bps
0.5
2.9
32.4
5.1
27.3
7.0
20.3
10.6%
1.0
0.5
16.0
2.1
13.9
3.6
10.3
8.1%
102.5%
96.4%
97.1%
245.7 bps
0.5
1.4
26.7
3.3
23.4
6.0
17.4
9.7%
1.0
4.3
59.1
8.4
50.7
13.0
37.7
21.3%
16.7%
16.7%
91.8 bps
10.2%
1.5
0.8
30.7
4.6
26.1
6.6
19.5
8.1%
92.5%
94.3%
93.3%
203.7 bps
10
Balance Sheet
Assets (in ₹ Cr)
Non - Current Assets
Property Plant & Equipments
CWIP
Intangible assets
Other Financial 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
Sep-23
Mar-23
Equity & Liabilities (in ₹ Cr)
Sep-23
Mar-23
269.9
244.1
10.4
0.1
4.2
11.1
377.6
192.0
3.0
133.6
3.1
6.6
0.3
39.0
647.5
206.6
59.8
121.6
0.1
2.1
23.0
300.9
166.9
2.9
70.5
10.8
15.2
0.1
34.5
Total Equity
Share Capital
Reserves & Surplus
Non-Current Liabilities
Financial Liabilities
Borrowings
Provisions
Deferred Tax Liabilities
Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Other Financial Liabilities
Other Current Liabilities
Current tax liabilities (net)
Provisions
358.9
20.3
338.6
35.2
29.9
0.8
4.5
322.2
20.3
301.9
26.8
24.7
0.6
1.5
253.4
158.5
115.7
121.9
3.8
7.7
4.3
0.0
65.8
74.1
6.3
6.1
6.2
0.0
507.5
Total Equity & Liabilities
647.5
507.5
11
Cashflow 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
H1FY24
H1FY23
50.7
11.6
62.3
-43.9
18.4
-11.9
6.5
-61.8
47.6
-7.7
10.8
3.1
26.1
3.2
29.3
-32.5
-3.2
-9.6
-12.8
-118.9
136.3
4.6
0
4.6
12
Management Commentary
Commenting on the Q2 & H1 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 highest ever Revenues of Rs 191.4 crores growing at 51% Y-o-Y and EBITDA growing at a staggering 124.5% Y-o-Y, whilst EBIDTA margins stood at 18.2% for Q2FY24. Revenues for H1 FY24 stood at Rs 371 crores witnessing a growth of 54.6% Y-o-Y with EBITDA margins standing at 16.8%
Arun Kothari Managing Director
During the quarter, we witnessed a solid growth in exports front, forming 15% of our revenues largely due to our backward integration of seamless pipes resulting in increased acceptance for our products primarily in European markets. We are optimistic of this momentum to persist going forward and continue to focus on expanding our share of exports.
Additionally, the imposition of ADD on seamless pipes and mother hollow pipes has benefited us immensely. As Venus being among very few players with backward integration in stainless steel seamless pipes. Welded pipes also witnessed a strong volume growth with increased demand.
Historically, H2 has been a stronger half of the year, and we are optimistic of the same for this year as well. Our growth trajectory remains strong as we actively pursue expansion into new sectors and geographies. Our commitment to delivering best-in-class products remains unwavering, and we are dedicated to elevating the Venus brand to new heights.”
13
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
14
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
15
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
16
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.
17
…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
18
Marquee Clientele
19
Awards & Certifications
Calendar Years
Certifications & Accreditations
2016
2017
2017
2018
2018
2022
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
Our company received approval of Bureau of Indian Standard (BIS) for Stainless steel Seamless and Welded Pipes and Tubes
IBR Certificate
TUV – AD 200 Merkblatt W0
ISO Certificate
BIS Certification for Seamless Pipes
BIS Certification for Welded Pipes
20
Experienced Board of Directors
Arun Kothari Chairman & Managing Director
Jayantiram M Choudhary
Whole Time Director
Megharam S Choudhary
Whole Time Director
Dhruv M Patel
Whole Time Director
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 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 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.
21
Strong Management Team
Arun Kothari Chairman & Managing Director
Associated with the Company since 2021 as a Director. A qualified Chartered Accountant and holds a bachelor’s degree in commerce from Rajasthan University
Jayantiram M Choudhary
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
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.
Kunal Bubna Chief Financial Officer
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.
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.
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.
23
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 2.8 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
28
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
29
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
30
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.
31
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
33
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
34
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
35
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
36
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
37
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
38
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
39
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
40
Thank You
Venus Pipes & Tubes Limited
CIN: L74140GJ2015PLC082306 Mr. Kunal Bubna ( Chief Financial Officer ) 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
41