Shankara Building Products Limited has informed the Exchange regarding Investor Presentation
Shanlkara®
Building Products Ltd.
Date: 8th February, 2019
To The Department of Corporate services Bombay Stock Exchange Limited P.J Towers, Dalal Street Mumbai-400001
To National Stock Exchange of India Limited 5th Floor, Exchange Plaza Sandra (E) Mumbai-400051
Scrip Code: - 540425
Scrip Symbol- SHANKARA
Dear Sir/Madam,
Sub: - Investor's presentation
Please find enclosed Investor's Presentation in relation to the Financial Results of the Company for the quarter and nine months ended 31" December, 2018.
You are requested to take note of the same.
Thanking You
G2 • Farah Winsford, No. 133, Infantry Road, Bangalore - 560001. Karnataka. Ph : 080 4011 7777, Fax - 080 4111 9317 CIN No. L26922KA1995PLC016990
www.shankarabuildpro.com
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Shan koro
Building Products Ltd.
Q3 & 9MFY19 Corporate Result Presentatio Presentation n
Buildpro
1
February May 2019 2017
Safe Harbor
Shan ara
Building Products Ltd.
2
This presentation and the accompanying slides (the “Presentation”), which has been prepared by Shankara Building Products Limited (the “Company”), has 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 tire 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.
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Our current focus areas
Shan ara
Building Products Ltd.
3
INCREASE in share of Retail Business
REDUCTION in Debtors
51%
53%
55%
418
365
Rs. in Crs
343
Q1FY19
Q2FY19
Q3FY19
Q1FY19
Q2FY19
Q3FY19
Conscious DEFOCUS on Channel Business
Rationalizing Debt:Equity Ratio
129
0.70
0.72
0.70
Rs. in Crs
102
86
su1lcipro
Q1FY19
Q2FY19
Q3FY19
Q1FY19
Q2FY19
Q3FY19
Processing business highlights
Shan ara
Building Products Ltd.
4
Processing business has been unstable in the last few quarters
Lower margins in processing has an impact on segment margins of retail, channel & enterprise
Higher reliance on own processing also led to lower creditors with increased cash purchase of raw material
Lot of measures as indicated below started in December. Positive impact to continue in Q4 FY 19
Processing Business
Q1FY19
Q2FY19
Q3FY19
Effect on Margins
Processing Margins (in %)
Retail Segment Margins (in %) (Impact of lower processing margins on retail business)
4.9%
10.3%
4.1%
9.7%
2.3%
7.9%
Rationalizing production volumes
Strong focus on trimming expenses
Key Measures
Rationalizing sales of certain lower margin steel products
Increasing third party purchases for steel products
Increasing focus on newer product categories
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Customer outreach activities strengthened
5
Shan ara
Building Products Ltd.
Customer meets
Orientation sessions
Organizing
customer meets
across locations to showcase the wide range of product offerings
Customer outreach
Over 50 influencer meets held over last
3 months
Direct
outreach
to
over
1,000+
influencers
Most of the meets held in collaboration
with partner brands
Localized
marketing inserts, newspaper distribution, direct construction sites etc.
efforts
– pamphlet to
outreach
Product
training
sessions
in collaboration with various brands for better understanding and insights on the products we offer and their usage
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su1lcipro
Click Here for our blog for various Customer Meets, Fares & Event, Training Session and Recognition received from Suppliers and Customers
Long term focus areas
Shan ara
Building Products Ltd.
6
One stop shop
Offering end to end Home Improvement & Building Material products being a One Stop Shop Solution for building products for our customers
Product Offerings
Increasing Product Offerings and Creating Depth in the existing product categories to create an engaging shopping experience for customers
Shan�ara
Building Products Ltd.
e
Retail Presence
Expanding Retail Presence through organic and inorganic routes to address the growing demand for home building and improvement products
Brand Equity
Enhancing the Brand Equity of our Shankara Buildpro stores to ensure high level of trust, authenticity and selection of various products and brands
Financial Prudence
With expansion in our retail presence, customer base and geography, our core focus will be to continue on a Financially Prudent Path
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Revenue break up 9MFY19
Shan �ara
Building Products ltd.
7
Rs. in Mn
Retail Revenue
Enterprise Revenue
Channel Revenue
Total Revenue
+28%
+12%
-16%
+14%
10,792
6,380
3,773
5,688
3,172
17,879
20,344
8,419
9MFY18
9MFY19
9MFY18
9MFY19
9MFY18
9MFY19
9MFY18
9MFY19
Overall company revenues grew by 14% for 9M FY 19
Retail segment is a strong focus area for the Company and grew by 28% in 9M FY 19
Channel business is being consciously shrunk and has declined by 16%
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Revenue break up 9MFY19
Shan ara
Building Products Ltd.
8
9MFY18 Revenue mix across States
11.0%
10.7%
11.1%
48.3%
12.1%
6.8%
Karnataka
Telengana
Andhra Pradesh
Kerala
9MFY19 Revenue mix across States
12.4%
11.8%
10.6%
45.8%
13.4%
6.1%
Karnataka
Telengana
Andhra Pradesh
Kerala
Tamil Nadu
Other States
Tamil Nadu
Other States
Telengana and Tamil Nadu have recorded strong growth
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Key Highlights – Retail Business
Shan ara
Building Products Ltd.
9
Particulars
No of retail stores
Total Area
Average store size
Average ticket size
Revenue from retail stores
EBITDA
Margin (%)
Average rental cost per Sq. Ft. per month
Units
Nos.
Sq. Ft
Sq. Ft
Rs.
Rs. Mn
Rs. Mn
%
Rs.
9MFY19
9MFY18
134
124
5,65,202
4,73,034
4,218
28,454
10,792
1,010
9.4%
19.14
3,815
24,382
8,419
897
10.7%
17.62
Y-o-Y
8.1%
19.5%
10.6%
16.7%
28.2%
12.6%
su1lcipro
Comparable sales growth stood at 12.1% for 9MFY 19
Q3 & 9MFY19 Income Statement
Shan ara
Building Products Ltd.
10
Particulars (Rs. Mn)
Q3 FY19
Q3 FY18
Total Income
Raw Material
Employee Expenses
Other Expenses
EBITDA
EBITDA %
Other Income
Depreciation
Finance Cost
Profit before Tax
Tax
Profit after Tax
Cash Profit
EPS
6,053
5,396
167
260
230
6,246
5,407
161
270
408
3.8%
6.5%
4
49
152
34
9
25
74
2
33
110
268
91
177
210
Y-o-Y
-3.1%
-43.6%
-87.2%
-85.7%
9M FY19
9M FY18
20,344
17,966
513
835
1,030
5.1%
22
140
443
469
158
311
451
17,879
15,401
438
829
1,211
6.8%
5
93
326
797
275
522
615
1.11
7.73
13.62
22.84
Y-o-Y
13.8%
-15.0%
FY18
25,487
21,986
592
1,157
1,752
6.9%
6
136
463
-41.1%
1,159
-40.4%
421
738
874
32.3
su1lcipro
Note: Brand amortization expenses for Vaigai and JP stood at Rs. 9 mn for Q3 FY 19
Shan sore
Building Products Ltd.
11
For further information, please contact:
Company :
Investor Relations Advisors :
Shan ara
Building Products Ltd.
S GA Strategic Growth Advisors
CIN - U26922KA1995PLC018990
CIN - U74140MH2010PTC204285
Mr. Alex Varghese – CFO
Mr. Sagar Shroff /Mr. Shogun Jain sagar.shroff@sgapl.net / shogun.jain@sgapl.net +91 98205 19303 / +91 77383 77756
www.shankarabuildpro.com
www.sgapl.net
Buildpro