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RUCHIRA PAPERS LIMITED Investor Presentation
s t n e t n o C f o e b a T
l
Company Overview
Business Overview
Financial Overview
2
Company Overview
3
About Us
Incorporated in 1980. We take great pride in creating a quality range of ‘Tree-Free’ papers for writing, high-volume print and packaging
Writing & Printing paper finds its applications in printing and stationery, comprising note books, writing & publishing material, spiral notebooks, greeting cards, coloring books, colored copier paper, bill books, dairies and calendars etc
Kraft paper finds its application in manufacturing of corrugated boxes, cartons and other packaging material
WPP contributed 61% to revenues in 2018-19
One of the Largest manufacturers of ‘Kraft’ and ‘Writing & Printing’ paper in Northern India from Agro Residue
Kraft paper contributed 39% to revenues in 2018-19
Facilities located in Himachal Pradesh for manufacturing of Kraft Paper and Writing and Printing Paper
Pan India presence through strong network of distributors and dealers
A low debt company with Debt to Equity ratio at 0.11x
PAT growing at 25.69% CAGR
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Our Journey
2006-07: Came up with an IPO and got listed on BSE & NSE.
2007-08: Launched Writing & Printing paper production in 2008
by
Production increased de- bottlenecking various at intervals post from 2008 on continuous basis
2015-16: Certified for FSC of chain custody by Rainforest Alliance
Incorporated in 1980
1983- Commenced Commercial production Kraft with 2310 TPA
of Paper
1992-1994 : PM-2 installed for manufacturing of Kraft Paper and production capability increased 21000 TPA
to
a)
De-
2017-18: Implemented Modernization and bottlenecking programmee b) Announced Greenfield for project Writing and Printing Paper Chamkaur at Sahib, Punjab,
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Management Team
Mr. Subhash Chander Garg (Chairman & Whole Time Director)
• Subhash Chander Garg, aged 77 years,
is Law graduate and has expertise in field of taxation. He is one of the Promoters of Ruchira Papers Limited and has been looking after the affairs of the company as a Whole Time Director. He has been looking after the Taxation, Marketing and Sales functions of Ruchira Papers Limited since its inception and has acquired rich marketing experience
Mr. Jatinder Singh (Co-Chairman & Whole Time Director)
• Jatinder Singh, aged 65 years, is an Engineering Graduate from Punjab University. He is one of the Promoters of Ruchira Papers Limited and has been looking after the affairs of the company as a Whole Time Director. Over the years, he has acquired deep insight into the working of Paper Industry. He has been looking after the Finance, Administration and Raw Material Procurement of the company.
Mr. Umesh Chander Garg (Managing Director)
• Umesh Chander Garg, aged 70 years is a Graduate and has been associated with Ruchira Papers Limited right from the conceptual stage. He is controlling day-to-day affairs of the Company as the Managing Director. He has been the key man in the selection of various machineries and all expansion projects were executed under his guidance. He has been looking after the Production, Maintenance and Technical aspects of the company.
Mr. Vipin Gupta (CFO & Whole Time Director)
•Mr. Vipin Gupta, aged 50 Years is working as professional Whole Time Director With the Company. He is heading the Finance and Accounts of the Company. He is associated with the Company for the past 26 Years.. He is a Post Graduate in Commerce.
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Competitive Advantage
Diversified Product Portfolio
Dedicated Workforce
Strong relations with Customers and suppliers
Strategic Location & PAN India Presence
Robust Balance sheet
Ruchira Papers has Ruchira Papers has diversified into better diversified into better product mix across Kraft product mix across Kraft paper and Writing & paper and Writing & Printing paper Printing paper
The Company has a highly The Company has a highly dedicated , skilled and dedicated , skilled and efficient employee base of efficient employee base of 1007 1007
Understanding customer Understanding customer needs, emerging trends and needs, emerging trends and accordingly providing accordingly providing products to customers is the products to customers is the prime responsibility prime responsibility
Plant is located in Himachal Plant is located in Himachal Pradesh and well connected Pradesh and well connected to state and national to state and national highways highways
Ruchira’s debt to equity Ruchira’s debt to equity ratio is the modest in the ratio is the modest in the industry industry
Diversification helps de- Diversification helps de- risking of business in the risking of business in the event of any volatility in event of any volatility in demand and prices demand and prices
Ruchira Papers provides Ruchira Papers provides extensive training to its extensive training to its employees on skill building employees on skill building
Strong relations with Strong relations with suppliers keeps the flow of suppliers keeps the flow of operations smooth operations smooth
The Company has a PAN The Company has a PAN India distribution network to India distribution network to market its products market its products
Ruchira is comfortably Ruchira is comfortably placed in terms of short placed in terms of short term liquidity term liquidity
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Awards & Recognitions
Udyog Ratna Award by Himachal Pradesh in 2005
FSC Certificate (Forest Stewardship Council) from Rain Forest Alliance, New York, USA
ISO 9001 : 2015
Appreciation Award from Himachal Pradesh Corrugated Box Manufactures Association in the year 2009
Certificate of Excellence from INC 500 in 2013
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Business Overview
9
Our Products
Writing & Printing Paper
Manufactured by using agricultural residues, such as wheat straw, Baggase, sarkanda,
Softwood Pulp and other materials
Writing and Printing paper is used in the fabrication of note books and writing & publishing material; coloured paper is used in the fabrication of spiral notebooks, wedding cards, shade cards, children’s colouring books, coloured copier paper and bill books
Contributed 61% of total revenues generated in FY2019 Writing and Printing paper brands are ‘Tarang’.
‘Safeda’,
‘Kora’,
‘Savera’,
‘Karigar’,
‘Gehua’, ‘Mela’, ‘Pahari
Manufactured by using agriculture residues, such as Bagasse, wheat straw, sarkanda and waste paper. The Company also uses some quantity of Imported Waste paper to produce value added products.
Used in the packaging industry especially in making corrugated boxes / cartons and other
packaging requirements
Special features of the Company’s Kraft Paper are the load bearing capacity and tensile
strength, which make it suitable for corrugated packing applications.
Contributed 39% to the revenue in FY2019 Kraft paper brands include ‘Multani’, ‘Maati’, ‘Khadi’. Also manufactures special tube grade paper known as DTY and POY.
Kraft Paper
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Plant Location & Capabilities
•
•
•
•
Plant located at Kala Amb, in District Sirmaur of Himachal Pradesh and
well connected to state and national highways
For Writing Paper & Printing unit the Company has set up 8.1 MW Power
Co-generation plant for captive purpose to get uninterrupted power
supply for its operations.
The Company has set up ‘Chemical Recovery Plant’ for process of black
liquor generated during the process for captive consumption.
The Company ‘s water requirement is
sourced from ground water
through tube-wells.
s e n n o T c i r t e M n
I
140000
120000
100000
80000
60000
40000
20000
0
Production (In MT)
8 0 4 7 9
2 0 1 9 9
1 2 0 4 5
7 8 3 3 4
8 2 0 2 5
4 7 0 7 4
7 5 9 6 1 1
4 2 4 5 1 1
6 2 4 6 6
1 3 5 0 5
9 9 9 7 6
5 2 4 7 4
1 3 8 8 2 1
7 8 2 7 7
4 4 5 1 5
FY15
FY16
FY17
FY18
FY19
Kraft Writing
Total
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Financial Overview
12
Quarterly Highlights
Revenue from Operations (Rs. In cr)
EBIDTA (Rs. In cr)
135
130
125
120
115
110
105
100
10.40 10.20 10.00 9.80 9.60 9.40 9.20 9.00 8.80 8.60 8.40
130.64
128.64
110.92
Q1FY20
Q1FY19
Q4FY19
PAT (Rs. In cr)
10.26
9.74
9.12
20.65
19.63
18.86
Q1FY20
Q1FY19
Q4FY19
PBT (Rs. In cr)
16.54
14.76
13.86
21.00
20.50
20.00
19.50
19.00
18.50
18.00
17.50
17.00 16.50 16.00 15.50 15.00 14.50 14.00 13.50 13.00 12.50
Q1FY20
Q1FY19
Q4FY19
Q1FY20
Q1FY19
Q4FY19
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Q1FY20 Performance Highlights
Q1FY20 Performance Overview:
• Revenue from operations stood at Rs. 130.64 cr.
•
EBIDTA at Rs. 18.86 cr; EBIDTA margins stood at
14.43 %
• PAT at Rs 9.12 cr; PAT margins stood at 6.98 %
•
EPS stood at Rs. 3.76 per share
Production highlights: WPP: Production during Q1FY20 was 13587 MT. Kraft Paper: Production during Q1FY20 was 20769 MT
Net Sales Realization: WPP: NSR for Q1FY20 was Rs. 59,727/- PMT. Kraft Rs. 24,761/- PMT
for Q1FY20 was
Paper: NSR
Commenting on the financial performance of the company Mr. Jatinder Singh, Co-Chairman & Whole Time Director, Ruchira Papers Limited, said, “During the quarter under review, Industry continues to witness a slowdown, resulting Kraft Paper margins under stress, which impacted the bottom line of the Company. However during Q1 of FY 20, the company has registered growth in topline as well as in production. The Company achieved turnover of Rs. 130.64 Crore and production of 34,356 MT for the Q1 FY 20. We are planning to de-risk the seasonality nature of Kraft Paper by modifying our existing paper machine no. 01 to facilitate manufacturing of Cup Stock paper.”
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Revenue Break-up & Margins
16.57%
16.62%
15.33%
13.10%
600
500
400
11.40%
e r o r c n
I
. s R
300
200
100
0
8.50%
8.15%
7.68%
5.37%
3.70%
346.56
362.58
417.1
447.6
493.99
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
)
%
( e g a t n e c r e P
)
%
( e g a t n e c r e P
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
% 1 8 . 8 5
% 9 1 . 1 4
% 5 3 . 2 6
% 9 1 . 2 6
% 5 6 . 7 3
% 1 8 . 7 3
% 3 8 . 7 5
% 7 1 . 2 4
% 0 0 . 1 6
% 0 0 . 9 3
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Total Revenue
EBIDTA Margins (%)
PAT Margins (%)
WPP (% of Revenue)
Kraft Paper (% of Revenue)
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Financial Performance
Total Income (Rs. In cr)
PAT (Rs. In cr)
500 450 400 350 300 250 200 150 100 50 0
90
80
70
60
50
40
30
20
10
0
347.92
363.73
418.10
451.35
495.88
45
40
35
30
25
20
15
10
5
0
32.49
38.02
40.24
12.83
19.47
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
EBIDTA (Rs. In cr)
PBT (Rs. In cr)
74.17
82.12
63.96
39.82
47.48
70
60
50
40
30
20
10
0
58.31
62.42
46.44
31.77
20.44
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
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Key Ratios
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
4.07
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
19.61%
12.19%
21.39%
16.13%
ROE
ROCE
25.15%
25.06%
20.98%
19.98%
23.60%
16.29%
FY15
FY16
FY17
FY18
FY19
Interest Coverage ratio
8.74
7.46
11.37
12.09
0.28
0.28
Debt to Equity
0.22
0.21
0.11
0.3
0.25
0.2
0.15
0.1
0.05
0
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
17
Production Highlights
54.13%
50.71%
51.22%
48.18%
48.46%
19.43%
16.81%
16.85%
16.92%
19.35%
e g a t n e c r e P
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
s n o T c i r t e M n
I
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
1 2 0 4 5
7 8 3 3 4
8 2 0 2 5
4 7 0 7 4
1 5 3 0 5
6 2 4 6 6
9 9 9 7 6
5 2 4 7 4
7 8 2 7 7
4 4 5 1 5
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Raw Material (% of Revenue)
Power & Fuel (% of Revenue)
WPP
Kraft
35000
30000
25000
. s R n
I
20000
15000
10000
5000
0
27676
24702
24863
30434
28323
FY15
FY16
FY17
FY18
FY19
Capital Cost Per Tonne
) e n n o t
r e p s t i n U
( n o i t p m u s n o c
r e w o P
1400
1200
1000
800
600
400
200
0
50.48
45.56
45.62
43.86
1243
18.97
1163
18.8
1141
1200
40.58
1155
14.14
12.51
11.57
449
423
392
400
434
FY15
FY16
FY17
FY18
FY19
WPP
Kraft
WPP.
Kraft.
60
50
40
30
20
10
0
) e n n o t
r e p e b u c e r t e m
( n o i t p m u s n o c
r e t a W
18
Key Statics & Shareholding as on 30th June, 2019
Shareholding (%)
35.26%
0.67%
64.07%
Key Statistics
CMP (Rs.)
As on 16th Aug, 2019 74.30
Market Cap (Rs. In crore)
No. of outstanding shares (Crore)
Face Value BSE Code NSE Code
180
2.42
10.00 532785
RUCHIRA
Promoter & Promoter Group
Institutions
Non- Institutions
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Disclaimer
This presentation and the following discussion may contain “forward looking statements” by Ruchira Papers Limited (“Ruchira” or “RPL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives are based on the current beliefs, assumptions, expectations, estimates and projections of the management of operates. RPL
and markets
in which
business,
industry
about
RPL
the
These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond RPL’s control and difficult to predict, that could cause actual results, performance or achievements to differ statements. the materially
forward
looking
those
from
in
Such statements are not and should not be construed as a representation of future performance or achievements of RPL. In particular, such statements should not be regarded as a projection of future performance of RPL. It should be noted that the actual performance or achievements of RPL may vary significantly from such statements.
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Contact Details
Ruchira Papers Limited Mr. Vipin Gupta (CFO & Executive Director) Email: vipingupta@ruchirapapers.com;
Mr. Vishav Sethi (Company Secretary) Email: cs@ruchirapapers.com
Website : www.ruchirapapers.com
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