VISAKAINDNSE4 May 2019

Visaka Industries Limited has informed the Exchange regarding Investor Presentation 2018-19-Q4

Visaka Industries Limited

+®

---------VISA KA I rt DUSTRIES LIMITED __ CI_N:_L5_25_2_0T_Gl_98_1P_L_CO_03_07_2_ 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.visa ka.co E-mail : vil@visaka.in

Ref: V I LIS E C/ST -EX/P resentati on/2 0 19-2 % 7 To ,

Date: 04.05.2019

National Stock Exchange of India Limited, Exchange Plaza , 5th Floor, Plot No. C/1 G Block , Band ra Kurla Complex , Bandra (East) , Mumbai - 400051 Scrip Code - VISAKAIND

Bombay Stock Exchange Limited , The Senior General Manager, Listing Compliances, Floor 25 , P. J. Towers , Dalal Street, Mumbai - 400001 Scrip Code - 509055

Sub: Presentation - ICICI Securities Conference Call dated 06.05.2019

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

Dear Sir/s,

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

This is for your information and records please .

Thanking you ,

Yours faithfully ,

for VISAKA INDUSTRIES LIMITED

Encl. Presentation

Regd. Office & Factory Factory: A.C. Division II Factory : A.C. Division III 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 : Textile Division Factory: V-Boards Division I : Gajalapuram Village, Peddadevalapally Post, Tripuramam Mandai, Near Miryalaguda. Nalgonda Dist, I S, Pin 508 207. Factory: V-Boards Division II : Gate No : 262 to 269, Delwadi Village, Daund Taluq, Pune Dist, Maharashtra, Pin 412 214.

: A.C. Division I, Survey No. 315, Yelumala Village, R.C. Puram Mandai, Sanga Reddy District, T.S, 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 7211 47. : No. 27/1, G. Nagenahalli Village, Kora Hobl i, Tumkur, Karnataka, Pin 572138. : ViII. Kannawan, PS Bachrawan, Tehsil Maharajgunj, Dist Raebareli, U.P, Pin 229 301. : Survey No. 385, 386, Jujjuru (V), Chennaropalem (P), Veerulapadu (M), Near Kanch ika Cherla, Krishna Dist, A.P, Pin 521181. : Plot No. 2006, 1994, Khata No. 450, At-Paramanapur Manejwan, Navamunda Village Sambalpur Dist, Odisha, Pin 768 200. : Survey No. 179 & 180, Chiruva Village, Mouda Taluk, Nagpur District, Maharashtra, Pin 441 104.

VISAKA INDUSTRIES LIMITED Q4FY19 RESULTS PRESENTATION

3rd May, 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)

-208 bps

-7.6%

15.2%

3,100

2,998

20.0

2,602

2,400

1,700

1,000

15.0

14.1

12.0

10.0

5.0

Q4FY18

Q4FY19

Q4FY18

Q4FY19

152

140

190

155

120

RoCE (%)

-210 bps

15.3

13.2

20.0

15.0

10.0

5.0

Q4FY18

Q4FY19

Q4FY18

Q4FY19

FY19 financial highlights

Operating Revenue (INR mn)

EBITDA (%)

PAT (INR mn)

12.3%

-158 bps

1.2%

666

674

11,000

10,123

11,364

8,500

6,000

3,500

1,000

15.3

13.7

19.0

14.0

9.0

4.0

750

600

450

300

150

RoCE (%)

- 140 bps

16.3

14.9

19.0

16.0

13.0

10.0

FY18

FY19

FY18

FY19

FY18

FY19

FY18

FY19

Management commentary

•

In FY19, Operating Revenue grew 12.3% YoY comprising of Cement asbestos growing 7% ,V-Next increasing 17% and synthetic yarns rising 29%

In FY19, Debt to Equity ratio improved to 0.57x over 0.63x in FY18

Commercial production in Jhajjar Plant on 11th March 2019 and ATUM (Solar Roofing Product) on 28th September 2018

Advertisement and Sales Promotion (ANP) expenditure doubled from Rs 10cr in FY18 to Rs 20cr in FY19

The outlook for the future continues to be positive

Current market share of business segments

•

Cement Asbestos market share stays at 18% in FY19

Boards and Panels retains a market share at 26% in FY19 became the largest manufacturer of Boards and Panels in India, with manufacturing capacity 32% of the industry as on 31st March 2019

Revenue contribution shifting to higher margin offerings

Cement Asbestos (% Sales)

Fibre Cement (% Sales)

Textiles (% Sales)

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) 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

ATUM (Solar Panels) – KW

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

2,134.9 407.6

2,613.1 485.0

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

2,400.9 596.7

312.6 9.8

14.6% 2.4%

447.4 11.8

17.1% 2.4%

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%

290.8 52.8

12.1% 8.8%

Synthetic Yarn – Spinning Positions

2,752

931,750

931,750 30,000 2,752

981,750 30,000 2,752

Production in MT Building Products ATUM (Solar Panels) – KW Synthetic Yarn

Sales in MT Building Products ATUM (Solar Panels) – KW Synthetic Yarn

Utilization (on sales) Building Products Synthetic Yarn

186,142

235,987

2,634

2,743

187,343 182 2,568

218,445

252,816

157,967

2,137

2,646

1,738

211,361 235 2,892

188,508 2 2,461

202,529 165 2,488

208,408 6 2,537

228,330 88 2,717

276,107 0 2,723

237,613 1,245 2,849

176,009 25 2,981

209,922 1,658 2,979

173,941 304 2,474

219,140 521 2,838

227,163 190 3,043

94% 71%

109% 88%

68% 58%

81% 82%

89% 85%

119% 91%

76% 99%

75% 82%

93% 101%

Operational Metrics - Annually

Operational Metrics (INR mn) 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

ATUM (Solar Panels) – KW

FY14

7,047.9 1,781.3

244.6 268.6

3.5% 15.1%

FY15

8,334.6 1,796.4

486.3 216.3

5.8% 12.0%

FY16

8,179.7 1,715.8

531.3 262.4

6.5% 15.3%

FY17

7,817.3 1,788.3

1,009.0 172.0

12.9% 9.6%

881,750

931,750

Synthetic Yarn - Spinning Positions

2,032

2,176

2,752

Production in MT

Building Products

ATUM (Solar Panels) – KW

Synthetic Yarn

Sales in MT Building Products ATUM (Solar Panels) – KW Synthetic Yarn

Utilization (on sales) Building Products ATUM (Solar Panels) – KW Synthetic Yarn

664,436

855,293

797,157

800,817

8,614

8,900

9,290

9,985

697,714

805,604

796,238

787,481

8,522

8,958

9,199

9,453

79%

96%

86%

101%

85%

97%

85%

79%

FY18

8,420.0 1,703.2

1,353.6 80.1

16.1% 4.7%

931,750

30,000

2,752

837,220

582

10,691

807,700 8 9,382

86.7%

78.2%

FY19

9159.3 2204.8

1,220.6 224.2

13.3% 10.2%

981,750

30,000

2,752

895,004

3,512

11,383

853,220 519 11,221

86.9% 1.7% 93.5%

Financial Summary

Profit & Loss statement - Quarterly

Profit & Loss (INR mn)

Income from Operations

Other Income

Total Income

Q4FY17

Q1FY18

Q2FY18

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

2,542.5

3,092.3

2,010.8

2,418.4

2,596.0

3,456.9

2,510.4

2399.3

2,997.5

8.3

15.9

10.2

9.9

9.8

69.1

20.0

13.4

17.9

2,550.8

3,108.2

2,020.9

2,428.2

2,605.8

3,526.0

2,530.3

2412.7

3,015.4

Operating Expenses

2,232.3

2,625.2

1,677.6

2,074.1

2,239.0

2,924.9

2,192.7

318.5

483.1

343.3

354.1

366.9

601.1

337.6

12.5

91.0

15.6

90.5

17.1

86.3

14.6

86.6

14.1

84.9

17.4

86.0

13.4

84.8

2155.4

257.4

10.7

89.3

2,655.0

360.4

12.0

93.5

227.5

392.6

257.0

267.5

281.9

515.2

252.8

168.0

266.9

8.9

54.8

2.2

172.7

6.8

68.6

104.2

4.1

6.6

12.7

39.7

1.3

352.9

11.4

123.3

229.6

7.4

14.5

12.8

39.9

2.0

11.1

48.7

2.0

10.9

54.2

2.1

217.1

218.8

227.7

10.8

75.7

9.0

76.1

8.8

75.8

141.4

142.7

151.9

7.0

8.9

5.9

9.0

5.9

9.6

14.9

51.8

1.5

463.4

13.4

160.0

303.4

8.8

19.1

10.1

43.6

1.7

7.0

50.9

2.1

8.9

53.2

1.8

209.2

117.1

213.7

8.3

69.8

139.4

5.6

8.8

4.9

26.3

90.9

3.8

5.7

7.1

73.3

140.5

4.7

8.8

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

Interest %

PBT

Margin %

Tax

PAT

Margin %

EPS

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

119.6

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

244.3

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

427.8

4.5

26.9

FY18

10,123.2

45.7

10,168.9

8,621.6

1,547.3

15.3

348.4

FY19

11,364.1

120.4

11,484.5

9,927.9

1,556.5

13.7

353.6

1,198.9

1,203.0

11.8

182.6

1.8

10.6

199.5

1.8

1,016.3

1,003.5

10.0

350.8

665.5

6.6

41.8

8.8

329.4

674.1

5.9

42.5

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

1,258.2

2692.3

7,284.2

3,877.8

3,406.4

7,284.2

FY15

159.2

3,162.6

1,193.9

3,386.5

7,902.2

3,464.4

4,437.8

7,902.20

FY16

159.2

3,311.4

758.9

3,959.6

8,189.2

3,368.8

4,820.4

8,189.2

FY17

159.2

3,719.5

999.3

2,812.9

7,690.8

3,563.7

4,127.1

7,690.8

FY18

159.2

4,297.4

1,090.4

3,298.3

8,845.3

4,258.3

4,587.0

8,845.3

FY19

159.2

4,835.8

982.9

3,283.2

9,261.1

4,339.1

4,922.0

9,261.1

FY14

FY15

FY16

FY17

FY18

FY19

6.2

3.6

0.87

2.9

77.0

40.0

19.0

8.0

6.4

1.00

4.5

89.0

46.0

21.0

8.6

7.0

1.02

4.6

84.0

53.0

23.0

13.4

10.9

0.64

6.3

74.0

59.0

29.0

16.3

14.9

0.63

8.5

85.0

53.0

34.0

14.9

13.5

0.57

7.8

88.0

50.0

25.0

Annexure

Stock information

• •

Market cap (INR) – 6,193 mn (as on 3rd May 2019) Shares outstanding– 15.9mn (31th March 2019)

• •

BSE code: 509055 NSE code: VISAKAIND

Shareholding Pattern as on 31th March 2019

16.7%

3.1%

41.7%

38.5%

Promoters

Retail

FPI

Others

300

250

200

150

100

Relative stock price vs BSE Sensex (as on 3rd May 2019 )

Visaka

Sensex

130

119

7 1 / y a M

7 1 / n u J

7 1 / l u J

7 1 / g u A

7 1 / p e S

7 1 / t c O

7 1 / v o N

7 1 / c e D

8 1 / n a J

8 1 / b e F

8 1 / r a M

8 1 / r p A

8 1 / y a M

8 1 / n u J

8 1 / l u J

8 1 / g u A

8 1 / p e S

8 1 / t c O

8 1 / v o N

8 1 / c e D

9 1 / n a J

9 1 / b e F

9 1 / r a M

9 1 / r p A

9 1 / y a M

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

Aesthetic appearance with the V-boards and Panels

Increased Acceptance of Visaka’s offerings in residential’s

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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Visaka Industries Limited has informed the Exchange regarding Investor Presentation 2018-19-Q4

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