VISAKAINDNSE12 February 2019

Visaka Industries Limited has informed the Exchange regarding Investor Presentation

Visaka Industries Limited

_________ VISAKA INDUSTRIES LIMITED __ C_IN,_L5_2_52_0T_G l_98_1P_LC_OO_30_72_ CORP OFF: "VISAKA TOWER", 1-8-303/69/3, S. P. ROAD , SECUNDERABAD - 500 003. TEL : +91-40-2781 3833,2781 3835, FAX : +91-40-2781 3837,27891833, www.visaka.co E-mai l: vil @visaka.in

Ref: VIUSEC/ST-EXIPresentationl/2018-19/47 To ,

Date: 12.02.2019

National Stock Exchange of India Limited, Bombay Stock Exchange Lim ited , Exchange Plaza , 5th Floor, Plot No. C/l G Block, Bandra Kurla Compl ex, Listing Compliances , Floor 25, P. J . Towers, Bandra (East) , Mumbai - 400051 Scrip Code VISAKAIND

Dalal Street, Mumbai - 400 001 Scrip Code - 509055

The Senior General Manager,

Sub: Presentation - Centrum Conference Call dated 12.02.2019

Ref: Regulation 30 read with Schedule III to SEBI (LODR) Regulations , 2015

Dear Sir/s ,

With reference to above , we herewith enclosed a presentation in connection with the said conference.

This is for your information and records please.

Thanking you ,

Yours faithfully,

Encl. Presentation

Regd. Office & Factory Factory : A.C. Division II Factory: A.C. Division ill Factory : A.C. Division IV Factory : A.C. Division V Factory : A.C. Division VI Factory: A.C. Division VII Factory : A.C. Division Viii Factory : Texlile Division Factory : V-Boards Division I : Gajalapuram Village, Peddadevaiapally Posl, Tripuramam Mandai, Near Mlryalaguda. Nalgonda Dist, 1S, Pin 508 207. Factory: V-Boards Division II : Gale No: 262 to 269, Deiwadi Village, Daund Taluq, Pune Disl, Maharashlra, Pin 412 214.

: A.C. Division I, Survey No. 315, Yelumala Village, R.C. Puram Mandai, Sanga Reddy District, 1S, Pin 502 300. : Behind Super Gas, Manikantham Village, Paramathi-Velur Taluq, Namakkal District, Tamil Nadu, Pin 637 207. : 70/3A, 70/3, Sahajpur Industrial Area, Nandur Village, Daund Taluka, Pune District, Maharashtra, Pin 412 020. : Changsole Mouza, Bankibundh, G.P. No. 4, Saliboniblock, Midnapore West, W.B, Pin 721147. : No. 27/1, G. Nagenahalli Village, Kora Hobli, Tumkur, Karnataka, Pin 572138. : Viii. Kannawan, PS Bachrawan, Tehsil Maharajgunj, Dist Raebareli, U.P, Pin 229 301. : Survey No. 385, 386, Julluru (V), Chennaropaiem (P), Veerulapadu (M), Near Kanchika Cherla, Krishna Dist, A.P, Pin 521181 . : Plot No. 2006, 1994, Khata No. 450, At-Paramanapur Manejwan, Navamunda Village Sambalpur Disl, Odisha, Pin 768 200. : Survey No. 179 & 180, Chlruva Village, Mouda Taluk, Nagpur Distric~ Maharashlra, Pin 441104.

VISAKA INDUSTRIES LIMITED Q3FY19 RESULTS PRESENTATION

12th February, 2019

Disclaimer

This Information Package is distributed by Visaka Industries Ltd. on a strictly confidential basis for information only. This Information Package should not be disclosed, reproduced or used in whole or in part for any purpose whatsoever or furnished to any other persons without the express prior written permission of Visaka Industries Ltd. This Information Package is distributed by Visaka Industries Ltd. upon the express understanding that no information herein contained has been independently verified. Further, no representation or warranty expressed or implied is made nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information. Also, no representation or warranty, express or implied, is made that such information remains unchanged in any respect as of any date or dates after those stated herein with respect to matters concerning any statement made in this Information Package. This Information Package contains several forward looking statements, there is no express or implied warranty that such forward looking statements would materialize or that Visaka Industries Ltd would achieve the same, wholly or in part or at all. All forward looking statements are subject to changes and modifications (including the risk of discontinuation) based on several factors, both internal and external. No duty is owed to any person to update, from the date hereof, as regards any changes or modifications (including discontinuance) in forward looking statements in this Information Package. Certain visual representations of properties under construction/ yet to be constructed herein are merely artists’ impressions. We cannot assure that the completed projects would resemble the artists’ impression. The charts and maps herein are merely indicative of what they depict, and may not necessarily be proportionate or to scale. Visaka Industries Ltd and its directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied), forward looking statements arising out of, contained in or derived from, or for any omissions from the Information Package. All recipients of the Information Package should make their own independent evaluations and should conduct their own investigation and analysis and should check the accuracy, reliability and completeness of the Information and obtain independent and specific advice from appropriate professional advisers, as they deem necessary. Where this Information Package summarizes the provisions of any other document, that summary should not be relied upon and the relevant documentation must be referred to for its full effect.

Index

Result Highlights

Operational Metrics

Financial Summary

Annexure

Brands & Offerings

Result Highlights

Quarterly financial highlights

Operating Revenue (INR mn)

EBITDA (%)

PAT (INR mn)

-0.8%

-391 bps

-36.3%

2,418

2,399

3,100

2,400

1,700

1,000

20.0

15.0

14.6

10.0

5.0

10.7

Q3FY18

Q3FY19

Q3FY18

Q3FY19

143

155

120

RoCE (%)

-700 bps

15.3

8.3

20.0

15.0

10.0

5.0

Q3FY18

Q3FY19

Q3FY18

Q3FY19

9MFY19 financial highlights

Operating Revenue (INR mn)

EBITDA (%)

PAT (INR mn)

11.1%

-139 bps

3.9%

8,367

7,528

8,500

6,000

3,500

1,000

19.0

14.0

9.0

4.0

600

514

534

15.7

14.3

450

300

150

RoCE (%)

- 206 bps

17.5

15.5

19.0

16.0

13.0

10.0

9MFY18

9MFY19

9MFY18

9MFY19

9MFY18

9MFY19

9MFY18

9MFY19

Management commentary

•

Operating Revenue dipped 0.8% YoY in Q3FY19 to Rs 2,399 mn against Rs 2,418 mn in Q3FY18

EBIT dipped by 3.9% YoY in Q3FY19

RoCE (Annualised) for 9MFY19 was 15.5% against 9MFY18 of 17.5%

ROE (Annualised) for 9MFY19 was 14.6% against 9MFY18 of 16.0%

The volume dip is considered temporary, margins were affected primarily due to exchange fluctuations, volume reduction, increased cost like selling expenses etc. Management intends to monitor them more effectively

The outlook for the future continues to be positive

Current market share of business segments

•

Cement Asbestos market share stays at 18%

Boards and Panels retains a market share at 26% in Q3FY19 with higher domestic market share

Revenue contribution shifting to higher margin offerings

Cement Asbestos (% Sales)

Fibre Cement (% Sales)

Textiles (% Sales)

FY14

FY15

FY16

FY17

FY18

FY14

FY15

FY16

FY17

FY18

FY14

FY15

FY16

FY17

FY18

Cement asbestos continues its flattish revenue share

De-risking the business operations by focusing on non-asbestos businesses

Operational Metrics

Operational Metrics - Quarterly

Operational Metrics (INR mn)

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Segmental revenues

Building Products

Synthetic Yarn

Segmental Profits

Building Products

Synthetic Yarn

Segmental EBIT margins

Building Products

Synthetic Yarn

Installed capacity in MT

Building Products

Synthetic Yarn – Spinning capacity

Production in MT

Building Products

Synthetic Yarn

Sales in MT

Building Products

Synthetic Yarn

Utilization (on sales)

Building Products

Synthetic Yarn

2,134.9

407.6

2,613.1

485

1,693.6

317.2

1,969.7

448.7

2,143.7

452.3

2,956.0

500.8

1,912.9

597.5

1,889.5

509.8

312.6

9.8

14.6%

2.4%

447.4

11.8

17.1%

2.41%

279.6

6.0

16.5%

1.9%

297.8

27.3

15.1%

6.1%

328.8

35.1

15.3%

7.8%

506.7

43.7

17.1%

8.7%

235.3

74.5

12.3%

12.5%

187.8

53.2

9.9%

10.4%

931,750

2,752

931,750

2,752

931,750

2,752

931,750

2,752

931,750

2,752

931,750

2,752

931,750

2,752

931,750

2,752

186,142

2,634

235,987

2,743

187,343

2,568

211,361

2,892

202,529

2,488

228,330

2,717

237,613

2,849

209,922

2,979

218,445

2,137

252,816

2,646

157,967

1,738

188,508

2,461

208,408

2,537

276,107

2,723

176,009

2,981

173,941

2,474

94%

71%

109%

88%

68%

58%

81%

82%

89%

85%

119%

91%

76%

99%

75%

82%

Operational Metrics - Annually

Operational Metrics (INR mn)

FY14

FY15

FY16

FY17

FY18

9MFY19

Segmental revenues

Building Products

Synthetic Yarn

Segmental Profits

Building Products

Synthetic Yarn

Segmental EBIT margins

Building Products

Synthetic Yarn

Installed capacity in MT

Building Products

Synthetic Yarn - Spinning Positions

Production in MT

Building Products

Synthetic Yarn

Sales in MT

Building Products

Synthetic Yarn

Utilization (on sales)

Building Products

Synthetic Yarn

7,047.9

1,781.3

8,334.6

1,796.4

8,179.7

1,715.8

244.6

268.6

3.5%

15.1%

881,750

2,032

664,436

8,614

697,714

8,522

79%

96%

486.3

216.3

5.8%

12.0%

931,750

2,032

855,293

8,900

805,604

8,958

86%

101%

531.3

262.4

6.5%

15.3%

931,750

2,176

797,157

9,290

796,238

9,199

85%

97%

7,817.3

1,788.3

1,009.0

172.0

12.9%

9.6%

931,750

2,752

800,817

9,985

787,481

9,453

85%

79%

8,420.0

1,703.2

1,353.6

80.1

16.1%

4.7%

931,750

2,752

837,220

10,691

807,700

9,382

87%

78%

6,758.5

1,608.1

929.8

171.4

13.8%

10.7%

931,750

2,752

675,864

8,545

626,057

8,178

90%

91%

Financial Summary

Profit & Loss statement - Quarterly

Profit & Loss (INR mn)

Income from Operations

Other Income

Total Income

Operating Expenses

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

Interest %

PBT

Margin %

Tax

PAT

Margin %

EPS

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

2,542.5

3,092.3

2,010.8

2,418.4

2,596.0

3,456.9

8.3

15.9

10.2

9.9

9.8

69.1

Q2FY19

2,510.4

20.0

2,550.8

3,108.2

2,020.9

2,428.2

2,605.8

3,526.0

2,530.3

2,232.3

2,625.2

1,677.6

2,074.1

2,239.0

2,924.9

2,192.7

318.5

12.5

91.0

227.5

8.9

54.8

2.2

172.7

6.8

68.6

104.2

4.1

6.6

483.1

15.6

90.5

392.6

12.7

39.7

1.3

352.9

11.4

123.3

229.6

7.4

14.5

343.3

17.1

86.3

257.0

12.8

39.9

2.0

217.1

10.8

75.7

141.4

7.0

8.9

354.1

14.6

86.6

267.5

11.1

48.7

2.0

366.9

14.1

84.9

281.9

10.9

54.2

2.1

218.7

227.7

9.0

76.1

8.8

75.8

142.6

151.9

5.9

9.0

5.9

9.6

601.1

17.4

86.0

515.2

14.9

51.8

1.5

463.4

13.4

160.0

303.4

8.8

19.1

337.6

13.4

84.8

252.8

10.1

43.6

1.7

209.2

8.3

69.8

139.4

5.6

8.8

Q3FY19

2399.3

13.4

2412.7

2155.4

257.4

10.7

89.3

168.0

7.0

50.9

2.1

117.1

4.9

26.3

90.9

3.8

5.7

Profit & Loss statement - Annually

Profit & Loss (INR mn)

Income from Operations

Other Income

Total Income

Operating Expenses

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

Interest %

PBT

Margin %

Tax

PAT

Margin %

EPS

FY14

8,921.0

53.6

8,974.6

8,348.1

626.5

7.0

224.6

401.9

4.5

214.0

2.4

188.0

2.1

68.3

119.7

1.3

7.5

FY15

10,211.3

24.2

10,235.5

9,252.3

983.3

9.6

430.9

552.4

5.4

220.3

2.2

332.1

3.3

119.7

212.4

2.1

13.3

FY16

10,048.5

27.3

10,075.8

9,096.2

979.6

9.7

363.0

616.6

6.1

212.9

2.1

403.7

4.0

159.4

244.4

2.4

15.3

FY17

9,605.7

57.1

9,662.8

8,433.8

1,229.0

12.8

340.8

888.2

9.2

196.0

2.0

692.2

7.2

264.4

427.9

4.5

26.9

FY18

10,123.2

45.7

10,168.9

8,621.6

1,547.3

15.3

348.4

1,199.0

11.8

182.6

1.8

1,016.3

10.0

350.8

665.6

6.6

41.8

Balance sheet & Key Ratios

Balance Sheet (INR mn)

Share capital

Reserves and Surplus

Non-current liabilities

Current liabilities

Total Equity and Liabilities

Non-current assets

Current assets

Total Assets

Key Ratios

RoCE (%)

RoE (%)

Debt to equity (x)

Interest coverage (x)

Inventory days

Receivable days

Payable days

FY14

159.2

3,174.5

3,132.2

818.3

7,284.2

3,877.8

3,406.4

7,284.2

FY14

6.2

3.6

0.9

2.9

77.0

40.0

19.0

FY15

159.2

3,162.6

3,521.4

1,059.0

7,902.2

3,464.4

4,437.8

7,902.2

FY15

8.0

6.4

1.0

4.5

89.0

46.0

21.0

FY16

159.2

3,311.4

3,354.2

1,364.4

8,189.2

3,368.7

4,820.4

8,189.2

FY16

8.6

7.0

1.0

4.6

84.0

53.0

23.0

FY17

159.2

3,766.5

1,828.8

1,848.9

7,603.4

3,546.0

4,057.4

7,603.4

FY17

13.4

10.9

0.6

6.3

74.0

59.0

29.0

FY18

159.2

4,297.4

2,109.5

2,279.2

8,845.3

4,258.3

4,587.0

8,845.3

FY18

16.3

14.9

0.6

8.5

85.0

53.0

34.0

Annexure

Stock information

• •

Market cap (INR) – 5,341 mn (as on 11th Feb 2018) Shares outstanding– 15.9mn (31th Dec 2018)

• •

BSE code: 509055 NSE code: VISAKAIND

Shareholding Pattern as on 31th Dec 2018

Relative stock price vs BSE Sensex (as on 11th Feb 2019 )

Visaka

Sensex

16%

39%

42%

Promoters

Retail

FPI

Others

300

250

200

150

100

122

103

Key Managerial Team

Shri. Dr G. Vivekanand Vice Chairman

Shri. G. Vamsi Krishna Joint Managing Director

Shri. Vepa Vallinath Whole Time Director & CFO

is a

An MBBS graduate from Osmania University and a former Member of first-generation Parliament entrepreneur playing a pivotal role in the company growth. It is under his leadership and guidance, Visaka Industries has grown multifold and diversified into building products and synthetic blended yarn with a prominent position in both industries.

He is a science graduate from Purdue University, USA. He joined Visaka in June 2010 as a management trainee and was later promoted as Chief Business strategist then as whole time director and he is currently He joint managing spearheaded the growth of the V- next business and invented ATUM. He was responsible in repositioning the company and introduction of ATUM.

director.

is a member of

He Institute of Chartered Accountants of India and Institute of Cost Accountants of India. He has a rich and varied experience of over 33 years spreading over various key operations of Finance, Business Strategy, Costing etc.

Brands & Offerings

Prestigious Brands of VISAKA Industries

VISAKA & SHAKTI

V-Next

V-Board

V-Plank

ATUM

V-Premium

V-Panel

V-Infill

Green products footprint increasing

Vnext by Visaka products are manufactured using Cellulose fiber and are Green Pro Certified product (V board, V designer, V plank & V premium, and V panel) by CII-IGBC, the first and only company to be certified Green Products in the category of FCB. With use of V board, you save huge amount of electricity and water as our product is dry wall construction. Due to shortage of Red Sand for construction, Vnext is an ideal ecofriendly product for future generations to come.

Revolutionizing use of energy efficiently-ATUM

ATUM PLANT ROOFING with the ATUM product

Revolutionizing use of energy efficiently-ATUM

ATUM ROOFING PANELS ROOFING WITH THE ATUM PANELS

ADMINSTRATIVE BLOCK – JHAJJAR PLANT

AN APPLICATION AT HYDERABAD

Multifarious use of Boards and Panels

Mezzanine Flooring with V-Boards Kitchen cabinets rich look with V-Boards

Aesthetic offering with V-Boards & Panels

Wall Paneling with V-Boards

Roof Underlay with V-Premium

Partitions, False Ceiling, Mezzanine flooring, Shelves in House Boat with V-Board

Investor Relations contact

Address

Name : V. Vallinath (Whole Time Director & CFO) Email id : vallinath@visaka.in Phone : 040-27813833

Visaka Industries Limited. Visaka towers",1-8-303/69/3, S.P. Road, Secunderabad - 500003

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