Shankara Building Products Limited has informed the Exchange regarding Investor Presentation
Shanllkara®
Building Products Ltd.
Date: 12'" August, 2019
To The Department of Corporate services Bombay Stock i:'.xch<1ng<! Limitad P.J Towers, Dalal Street Mumbai-400001
To National Stock Exchange of India Limited 51h Floor. Exchange Plaza Bandra (E) Mumbai-400051
Scnp Code: - 540425
Scrip Symbol- SHAN KARA
Dear Sir /Madam,
Sub; - Investor's presentation
Please find enclosed Investor's Presentation pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements), Regulation 2015.
You are requested to take note of the same.
Thanking You.
G2 - Farah Winsord, No. 133, Infantry Road, Bangalore - 560 001. Karnataka. Ph: 080 4011 7777, Fax - 080 4111 9317 CIN No. L26922KA199SPLC018990
www.shankarabuildpro.com
Shanlkara
Building Pru.Juel� Ltd.
Q1 FY20 Corporate Result Presentatio Presentation n
May August 2017 2019
...................
Safe Harbor
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.
- .... .,, ....
Improving Profitability & Balance Sheet
3
Revenue (Rs. Mn) Revenue (Rs. Mn)
EBIDTA (Rs. Mn) EBIDTA (Rs. Mn)
6,053
6,197
6,393
Channel
859
Enterprise
1,854
Retail
3,340
838
1,840
3,519
956
1,841
3,596
312
230
164
Q3FY19
Q4FY19
Q1FY20
Q3FY19
Q4FY19
Q1FY20*
PAT from Continuing Operations (Rs. Mn) PAT from Continuing Operations (Rs. Mn)
Net Debt + Acceptances (Rs. Mn) Net Debt + Acceptances (Rs. Mn)
83
4,971
3,678
3,182
25
16
Q3FY19
Q4FY19
Q1FY20*
Q3FY19
Q4FY19
Q1FY20
*Q1FY20 numbers are post Ind AS 116 impact; PBT for Q1FY20 would have been higher by 5.8 Mn before Ind AS 116 impact
-
.
Awards & Accolades
4
Consistently recognized by Suppliers for our Outstanding Performance
Jaquar Group Platinum Dealer bags 4 awards
Kajaria Ceramics Platinum Category (South)
Varmora Tiles Highest Sale Winner
Somany Ceramics Platinum Club
·-··· ...... ,, ....
Customer Outreach Activities Strengthened
5
Customer Meets, Outreach & Orientation Programs at Shankara Buildpro Stores
Organizing customer meets across to showcase the wide
locations range of product offerings
Over 50+ influencer meets held over
the last quarter
Most
of
the meets
held
in
collaboration with partner brands
efforts
Localized marketing – pamphlet inserts, newspaper distribution, direct outreach to construction sites, digital marketing etc.
Product
training
sessions
in collaboration with various brands and for insights on the products we offer and their usage
understanding
better
Click Here for our blog for various Customer Meets, Fares & Event and Training Session
- ........ ,, ....
Other outreach activities , ---- .. 1 Bui dpro • ··--- ---
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6
iiuilq,ro Buy �$1 Buildillg M'1eri.lh At�stP�s
,,;lgxo Bu-, Be� Buildirig l.laterials Without Any Hassle
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We continue to focus on our brand building activities for Shankara Buildpro
Click Here for Awards & CSR Activities across Shankara Building Products
- ... - �� ... - .... � ..
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12
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Our Long Term Focus
7
Ill
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
Shat)._�� ......... ,
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
·- .... .,,. '"
Revenue Break up Q1FY20
8
Q1FY19 Q1FY19 Revenue mix across States Revenue mix across States
13%
12%
12%
45%
13%
6%
Karnataka
Telengana
Andhra Pradesh
Kerala
Q1FY20 Q1FY20 Revenue mix across States Revenue mix across States
12%
49%
15%
10%
6%
9%
Karnataka
Telengana
Andhra Pradesh
Kerala
Tamil Nadu
Other States
Tamil Nadu
Other States
...................
Key Highlights – Retail Business
9
Particulars
No of retail stores
Total Area
Average store size
Average ticket size
Revenue from retail stores
EBITDA
Margin* (%)
EBITDA per store
Units
Nos.
Sq. Ft
Sq. Ft
Rs.
Rs. Mn
Rs. Mn
%
Rs. Mn
Average rental cost per Sq. Ft. per month
Rs.
Q1FY20
Q4FY19
Q1FY19
129
134
132
5,55,622
5,67,202
5,47,864
4,307
27,996
3,596
291
8.1%
2.25
20.2
4,233
4,150
26,704
30,336
3,519
256
7.3%
1.91
19.2
4,019
415
10.3%
3.15
18.6
Comparable sales growth stood at -13% for Q1FY20
*Retail segment EBIDTA before Ind AS 116 impact is 7.2%
- .... .,, ....
Q1FY20 Income Statement
10
Particulars (Rs. Mn)
Q1FY20*
Q1FY19
Y-o-Y (%)
Q4FY19
Q-o-Q (%)
Total Income
Raw Material
Employee Expenses
Other Expenses
EBITDA
EBITDA %
Other Income
Depreciation
Finance Cost
Profit before Tax
Tax
Profit after tax from continuing operations
Profit /(Loss) after tax from discontinued operations
Profit after tax from continuing & Discontinuing operations
6,393
5,785
132
165
312
4.9%
5
85
113
118
36
83
-15
68
7,852
6,901
175
288
488
6.2%
2
45
139
307
112
195
0
195
-18.6%
-36.1%
-130 bps
-61.6%
-57.4%
NA
6,197
5,627
151
254
164
2.7%
22
46
124
16
0
16
0
16
3.2%
89.6%
222 bps
640.7%
409.2%
NA
Net Debt + Acceptances
Q1FY20
3,182
Q1FY19
4,895
Y-o-Y (%)
-35%
Q4FY19
3,678
Q-o-Q (%)
-13%
*Q1FY20 numbers are post Ind AS 116 impact
-
.
Ind AS 116: Impact on Profit & Loss, Balance Sheet & Cash Flows
11
Profit & Loss A/c Impact
Particulars (Rs. in Mn)
Reported as per Ind AS 116
Ind AS 116 Impact
Without Ind AS 116
Rent
Depreciation
Finance Cost
4.3
85.4
113.3
Net Impact
Balance Sheet Impact
45.5
48.3
103.4
PBT would have been higher by 5.8 Mn before the impact of Ind AS 116
+ 41.2
- 37.1
- 9.9
-5.8
Impact
Particulars
Balance Sheet Asset Side
Balance Sheet Liability Side
Right to use Asset created as a separate line item under Fixed Asset up to the tune of Rs. 393.1 Mn for the long-term lease liabilities. Overall balance sheet will increase by the amount of asset created for Leases. This will have an impact on ROCE of the company
Lease liability of Rs. 379.1 Mn created for in favor lessee as against the asset created.
Cash Flow Impact
There would be no change in the cash flow of the company due to changes in accounting standards.
Historical Financial Performan ce
May 2017
Corporate Presentatio n
3
·-··· ...... ,, ....
FY19 Income Statement*
Particulars (Rs. Mn)
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
*Financial Data as per IND AS
13
FY19
26,541
23,594
642
1,109
1,197
4.5%
42
186
567
485
158
327
514
14.33
FY18
25,487
21,986
559
1,189
1,752
6.9%
6
136
463
1,159
421
738
874
32.30
.............. ,,, ..•
FY19 Balance Sheet*
Particulars (Rs. Mn) Total Equity
Equity Share Capital Other Equity Non-Controlling Interest
Non-current liabilities Financial Libilities (i) Borrowings (ii) Other Financial Liabilities
Provisions Deferred Tax Liabilities (Net)
Mar-19 Mar-18 4,558 4,791 228 228 4,329 4,562 1 1
235
24 - 3 206
181
9 - 3 169
Current liabilities
6,094
7,389
Financial Liabilities (i) Borrowings (ii) Trade Payables (iii) Other Financial Liabilities
Provisions Current Tax Liabilities (Net) Other Current Liabilities
Total Liabilities
1,927 3,814 167 20 23 143 11,120
2,420 4,605 189 10 81 85 12,128
*Financial Data as per IND AS
Particulars (Rs. Mn) Non-current assets
Property, Plant and Equipment Investment Property Capital Work in Progress Intangible Assets Goodwill on Consolidation Financial Assets
(i) Trade Receivables (ii) Loans
Other non-current assets
Current assets Inventories Financial Assets
(i) Trade receivables (ii) Cash and cash equivalents (iii) Bank balances other than above (iv) Others financial assets
Other Current Assets Current Assets Net Non Current Assets held for sale
Total Assets
14
Mar-19 Mar-18 3,208 2,773 2,726 2,252 1 71 - 43 104 66 140 140
40 148 14
31 180 26
8,346 3,829
8,919 4,157
3,336 92 83 13 296 7 691 11,120
4,241 12 48 12 450 - - 12,128
..._ .... .,,.".
Maintaining Business Efficiency
15
Working Capital Days are calculated on the basis of revenue *FY18 and FY19 days are not comparable to earlier periods due to GST impact on revenue
Receivable Days Receivable Days
61*
47
48
50
49
46*
Inventory Days Inventory Days
60*
53*
42
43
46
44
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
Creditor Days Creditor Days
42
41
66*
52*
23
25
Working Capital Days Working Capital Days
66
65
54
52
54*
46*
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
.-. ....... ,, ....
Key Ratios
16
Average Return on Capital Employed Average Return on Capital Employed
Average Return on Equity Average Return on Equity
Net Debt : Equity Net Debt : Equity
25%
25%
17%
17%
1.4
21%
15%
1.2
17%
15%
16%
13%
9%
7%
0.8
0.6
0.5
0.4
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
·- .... .,,. '"
Thank You
17
For further information, please contact:
Company :
Investor Relations Advisors :
·-· Shanl<ara .
CIN - L26922KA1995PLC018990
Mr. Alex Varghese – CFO
SGA Strategic Growth Advisors
CIN - U74140MH2010PTC204285
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