Ruchira Papers Limited has informed the Exchange regarding Investor Presentation
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RUCHIRA PAPERS LIMITED Presentation of the financial results for Q3/9M of FY 20
An Introduction
● Incorporated in 1980. We take great pride in creating a quality range of ‘Tree-Free’ papers for writing, high-volume print and packaging.
● Facilities
located
for manufacturing of Kraft Paper and Writing and Printing Paper
in Himachal
Pradesh
● Pan India presence through strong network of
distributors and dealers
Key Statistics
CMP (Rs.)
Market Cap (Rs. In crore)
No. of outstanding shares (Crore)
Face Value
BSE Code
NSE Code
As on 10th Feb, 2020
66.20
160.55
2.42
10.00
532785
RUCHIRA
Shareholding Dec - 2019 (%)
● WPP contributed
61%, while Kraft paper
contributed 39% to revenues in 2018-19
35.24%
● A low debt company with Debt to Equity ratio at
64.07%
0.11x
● Total Income growing at CAGR of 5.34% and Profits growing at CAGR of 25.69% over previous 5 years.
0.69%
Promoter & Promoter Group
Institutions
Non- Institutions
2
Management Team
Mr. Subhash Chander Garg (Chairman & Whole Time Director)
Mr. Jatinder Singh (Co-Chairman & Whole Time Director)
Mr. Umesh Chander Garg (Managing Director)
Subhash Chander Garg, aged 77 years, is Law graduate and has expertise in field of taxation and marketing. 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.
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.
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.
3
Competitive Advantage
Diversified Product Portfolio
Dedicated Workforce
Strong relations with Customers and suppliers
Strategic Location & PAN India Presence
Robust Balance sheet
Ruchira Papers has diversified into better product mix across Kraft Paper and Writing & Printing Paper
Diversification helps de- risking of business in the event of any volatility in demand and prices
The Company has a highly dedicated , skilled and efficient employee base.
Understanding customer needs, emerging trends and accordingly providing products to customers is the prime responsibility
Plant is located in Himachal Pradesh and well connected to state and national highways
Ruchira’s debt to equity ratio is the modest in the industry
Ruchira Papers provides extensive training to its employees on skill building
Strong relations with suppliers keeps the flow of operations smooth
The Company has a PAN India distribution network to market its products
Ruchira is comfortably placed in terms of short term liquidity
4
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
5
Plant Location & Capabilities
• Plant is located at Kala Amb, in District Sirmaur of Himachal
Pradesh and well connected to state and national highways
• For Writing & Printing Paper 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
processing of black liquor generated during the process.
• The Company‘s water requirement is sourced from ground
water through tube-wells.
• Raw materials for writing and printing paper comprises
agriculture residue i.e. wheat straw, baggase and sarkanda,
imported softwood pulp and other fillers.
• Raw materials for kraft paper comprise waste paper (Indian
and Imported) and agriculture residue like bagasse, wheat
straw and sarkanda.
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Our Products
s e n n o T c i r t e M n
I
140000 120000 100000 80000 60000 40000 20000 0
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
Writing & Printing Paper
● Manufactured by using agricultural residues, such as wheat Softwood Pulp and other
straw, Baggase, sarkanda, 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’. ‘Kora’, ‘Savera’, ‘Karigar’, ‘Gehua’, ‘Mela’, ‘Pahari
‘Safeda’,
Kraft Paper
● Manufactured by using waste paper and agriculture residues, such as Bagasse, wheat straw, sarkanda. The Company also uses some quantity of Imported Waste paper to produce value added products.
● Used in the packaging industry especially in making packaging cartons
boxes/
other
and
corrugated 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.
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Quarterly Highlights
126
124
122
120
118
116
114
18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00
Revenue from Operations (Rs. In cr)
124.97
124.44
117.95
Q3FY20
Q2FY20
Q3FY19
PAT (Rs. In cr)
16.21
9.34
1.42
EBIDTA (Rs. In cr)
19.30
13.02
6.81
Q3FY20
Q2FY20
Q3FY19
PBT (Rs. In cr)
14.05
8.02
1.90
25.00
20.00
15.00
10.00
5.00
0.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
Q3FY20
Q2FY20
Q3FY19
Q3FY20
Q2FY20
Q3FY19
8
Q3 & 9months FY20 Performance Highlights
Q3FY20 Performance Overview: • Revenue from operations stood at Rs. 117.95 cr.
•
EBIDTA at Rs. 6.81 cr; EBIDTA margins stood at 5.78 %
• PAT at Rs 1.42 cr; PAT margins stood at 1.20 %
•
EPS stood at Rs. 0.58 per share
9months FY20 Performance Overview:
• Revenue from operations stood at Rs. 373.56 cr.
•
EBIDTA at Rs. 38.69cr; EBIDTA margins stood at 10.36%
• PAT at Rs 26.75 cr; PAT margins stood at 7.16%
•
EPS stood at Rs. 11.03 per share
Production highlights: WPP: Production during Q3FY20 was 13299 MT & 9mFY20 was 39794 MT. Kraft Paper: Production during Q3FY20 was 20379 MT & 9mFY20 was 63290MT.
Net Sales Realization: WPP: NSR for Q3FY20 was Rs. 51,178/- PMT & for 9mFY20 was Rs. 54,716/- Kraft for Q3FY20 was Rs. 22,571/- PMT & for 9mFY20 was Rs 23,788/- PMT.
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, we have been able to utilize our production capabilities at optimum level. Sharp decline in NSR affected the topline and bottom line of Company adversely. ”
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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
38.24
40.24
32.05
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
10
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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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
12
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%
FY15
FY16
FY17
FY18
FY19
Raw Material (% of Revenue)
Power & Fuel (% of Revenue)
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
s n o T c i r t e M n
I
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
) 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
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
WPP
Kraft
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
13
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.
14
Thank You
Contact Details:-
Ruchira Papers Limited Mr. Vishav Sethi (Company Secretary) Email: cs@ruchirapapers.com
IR - Kirin Advisors Mr Sonal Kumar Shrivastava +91- 93247 48334 Email: sonalkumar@kirinadvisors.com
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