VISAKAINDNSE10 February 2020

Visaka Industries Limited has informed the Exchange regarding Investor Presentation

Visaka Industries Limited

------VISAKA INDUSTRIES LlMITEIf _____ _ CORP OFF : ' VISAKA TOWER", 1-8-303169/3, S. P. ROAD, SECUNDERABAD - 500 003 . TEL : +91 -40-27813833,2781 3835, FAX: +91 -40-2781 3837 , 2789 1833, www.visaka.ca E-mail : vll@Visaka.in

Ref' VIUSEC/ST -EX/Pre sentatlOn/2019-20/46 Ta

Date 10 02 2020

National Stock Exchange of India Limited , Exchange Plaza , 5th Floor, Plot No C/1 G Block, Sandra Kurla Complex , Bandra (East), Mumbai - 400 051 Scrip Code - VISAKAIND

Bombay Stock Exchange Limited , The Se nior General Manager, Listing Compliances, Floor 25, P. J . Towers, Dalal Street, Mumbai - 400 001 Scrip Cod e - 509055

Sub : Presentation - ICICI Securities Conference Call dated 10.02.2020

Ref: Regulation 30 read with Sc hedule III to SEBI (lODR) Regulations , 2015

Dear Sirls,

With reference to above herewith enclosed presentation on Q3FY20 Results

This is for your information and records please.

Thanking you,

Yours faithfully,

far VISAKA 'N9U I mIES~~IMIJ"~

~~ ~'

,'I) '1/

Authoris ed Signatory

Ene!. Presentati on

Regd. OtfIce & Faclory Factory : A.C . Diyision n Factory : A.C. Division III FaclDfy : A.C. Division N Factofy : A.C, Diyisfon V FactOf)' : A.C. Division VI Factory : A.C, Division VII FactOI)' : A.C. Division YIII FactOI}' : 18)(tlle DiYlslon Factory : V·Boards Division I : GaJalapurlm Village, Peddadevalapalty Post, Trlpurarnam Nandal, Near Miryalaguda. Nalgonda Dist. IS, Pin SO! 207. Factory : Y·Boards Division II : Gate No : 262 to 269, Detwadi Village, Daund Taluq, Pune Dist, Maharashtra, Pin 412 214.

: A.C. OMsion I, SUrley No. 315, Yelumala Village, R.C, Puram Mandai, Sanga Reddy District, IS, Pin 502 300. : Behind Super Gas, Manlkanlham Village, Paramathl-Velllr Taluq, Namakkal Distrlcl. Tamil Nadu, Pin 637 2{)7. : 70f3A, 70/3, Sahajpur Industrial Area, Nandllf Vlllaga, Oaund Taluka, Pune DIstrict, Maharashtra, Pin 412 020. : Changsole Mouta, Banklbundh, G.P. No. 4, Salibtlnlbloclt, Mldnapore Wesl. W.B, Pin 721 147. : No. 2111, G. NagenahalU Village, Kora Hobl~ Tumlwr, Karnataka, Pin 572138. : Vilt. Kannawan, PS B.achrawan, Tehsll MaharaJgunj, Dist Raebarell, U.P, Pin 229 301 . : SUrley No. 385, 386, JulJuru M, Chennaropalem (PI, Veerulapadu (MI, Near Kanchika Cherla, KrIshna Di5t. A.P, Pin 521181 . : Plot No. 2006, 1994, Khau No. 450, At·Paramanapuf ManeJwan, Nayamunda VIllage Sambalpur Dlsl. Odlsha, Pin 768 200. : Survey No. 179 & 180, Chlruva Village, Mouda TalulI, NagpIJr DIstrict, Maharashtra, Pin 441104.

Q3FY20 R E S U L T S P R E S E N T A T I O N F E B R U A R Y 2 0 2 0

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.

TABLE OF CONTENTS

Operational Metrics

Result Highlights

Financial Summary

Annexure

Brands & Offerings

R E S U L T H I G H L I G H T S

QUARTERLY FINANCIAL HIGHLIGHTS

Operating Revenue (₹ mn)

0.6%

EBITDA (%)

-128 bps

PAT (₹ mn)

-32.3%

2,399

2,414

10.7

9.4

90.9

61.5

Q3FY19

Q3FY20

Q3FY19

Q3FY20

Q3FY19

Q3FY20

9MFY20 FINANCIAL HIGHLIGHTS

Operating Revenue (₹ mn)

-1.7%

*EBITDA (%)

-230 bps

13.0

8,367

8,227

10.7

534

PAT (₹ mn)

-20.5%

424

9MFY19

9MFY20

9MFY19

9MFY20

9MFY19

9MFY20

*EBITDA excludes other income

FY19FINANCIAL HIGHLIGHTS

Operating Revenue (₹ mn)

12.3%

11,364

10,123

*EBITDA (%)

-219 bps

14.8

12.6

PAT (₹ mn)

1.2%

666

674

FY18

FY19

FY18

FY19

FY18

FY19

*EBITDA excludes other income

QUARTERLY SEGMENT MIX

Building Product Revenues (Rs mn)

Building EBIT (Rs mn)

2,613

2,135

2,144

1,970

1,694

2,956

2,960

2,401

447.4

506.7

1,913 1,890

1,885

1,756

312.6

279.6 297.8

328.8

406.6

290.8

235.3

187.8

125.8

79.4

Synthetic Revenues (Rs mn)

Synthetic EBIT (Rs mn)

597

568

501

510

529

530

485

408

449

452

317

74.5

53.2

52.8

78.9

62.3

65.3

43.7

35.1

27.3

9.8

11.8

6.0

9M SEGMENT MIX

Building Products Revenues (Rs mn)

Building EBIT (Rs mn)

6,758.4

6,600.9

1,024.8

929.8

6,276.4

611.8

9MFY18

9MFY19

9MFY20

9MFY18

9MFY19

9MFY20

Synthetic Revenues (Rs mn)

Synthetic EBIT (Rs mn)

1,608.1

1,625.9

1,250.8

206.4

171.4

9MFY18

9MFY19

9MFY20

9MFY18

9MFY19

9MFY20

45.1

MANAGEMENT COMMENTARY

•

In Q3FY20, revenues was flat at 0.6% YoY

ATUM (Solar Roofing Product) Sales in Kw increased 172% YoY at 827kw

Segment EBIT margin for building products was 6.7% in Q3FY20 vs 9.9% in Q3FY19

Synthetic yarns EBIT higher by 22.7% YoY with margins of 12.3% in Q3FY20 vs. 10.4% in Q3FY19

Cash profit in Q3FY20 is at Rs 18.5 cr vs. 20.6 cr in Q3FY19

Boards revenue grew 22% in Q3FY20 with EBITDA margin entering double digit at 11%

Synthetic yarn revenue grew at 3.9% in Q3FY20 vs Q3FY19 with EBITDA of 14.98% vs 12.50% in Q3FY19

The outlook for VISAKA remains buoyant

CURRENT MARKET SHARE OF BUSINESS SEGMENT

•

Cement Asbestos market share stays at 18% in FY19

Boards and Panels market share at 32%

Visaka’s spinning business is a unique technology and hence not affected significantly by the textile industry movements

O P E R A T I O N A L M E T R I C S

OPERATIONAL METRICS - QUARTERLY

Operational Metrics (₹ 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 Synthetic Yarn – Spinning Positions

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

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

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

2,960.5 567.8

1,755.6 528.6

1,884.9 529.6

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%

406.6 62.3

79.4 78.9

13.7% 11.0%

4.5% 14.9%

931,750 30,000

2,752

931,750 30,000

2,752

931,750 30,000

2,752

931,750 30,000

981,750 30,000

9,81,750 30,000

2,752

125.8 65.3

6.7% 12.3%

9,81,750 30,000

2,752

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

237,613 1,245 2,849

209,922 1,658 2,979

219,140 521 2,838

2,39,356 120 2,765

1,85,061 964 2,815

1,67,900 149 2,905

276,107 0 2,723

176,009 25 2,981

173,941 304 2,474

227,163 190 3,043

2,78,988 241 2,903

1,58,859 456 2,683

1,74,757 827 2,711

81% 82%

89% 85%

119% 91%

76% 99%

75% 82%

93% 101%

114% 97%

65% 89%

71% 90%

OPERATIONAL METRICS – HALF YEARLY & 9M

Operational Metrics (₹ mn)

H1FY18

H1FY19

H1FY20

9MFY18

9MFY19

9MFY20

Segmental revenues

Building Products

Synthetic Yarn

Segmental Profits

Building Products

Synthetic Yarn

Segmental EBIT margins

Building Products

Synthetic Yarn

Installed capacity in MT

4,306.7

802.2

4,868.9

1,098.3

4716.0

1096.3

6,276.4

1,250.8

6,758.4

1,608.1

6600.9

1625.9

727.0

17.8

16.9%

2.2%

742.0

118.2

15.2%

10.8%

486.0

141.2

10.3%

12.9%

1,024.8

45.1

16.3%

3.6%

929.8

171.4

13.8%

10.7%

611.8

206.4

9.3%

12.7%

Building Products

9,81,750

ATUM (Solar Panels) – KW

Synthetic Yarn – Spinning Positions

30,000

2,752

30,000

2,752

30,000

2,752

30,000

2,752

30,000

2,752

30,000

2,752

OPERATIONAL METRICS – ANNUALLY

Operational Metrics (₹ mn) Segmental revenues Building Products Synthetic Yarn

Segmental Profits Building Products Synthetic Yarn

Segmental EBIT margins Building Products Synthetic Yarn

FY14

FY15

FY16

FY17

FY18

7,047.9 1,781.3

8,334.6 1,796.4

8,179.7 1,715.8

244.6 268.6

3.5% 15.1%

486.3 216.3

5.8% 12.0%

531.3 262.4

6.5% 15.3%

7,817.3 1,788.3

1,009.0 172.0

12.9% 9.6%

Installed capacity in MT Building Products ATUM (Solar Panels) – KW Synthetic Yarn - Spinning Positions

881,750

931,750

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%

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%

SOLUTION PROVIDER

Fibre Cement Roof

V Next by Visaka

A T U M by V Next

The Wonder Yarn

PROFIT & LOSS STATEMENT - QUARTERLY

Profit & Loss (₹ mn)

Q3FY18

Q4FY18

Q1FY19

Q2FY19

Q3FY19

Q4FY19

Q1FY20

Q2FY20

Q3FY20

Income from Operations

2,418.4

2,596.0

3,456.9

2,510.4

2399.3

2,997.5

3,528.2

2,284.1

2,414.4

Other Income

Total Income

9.9

9.8

69.1

20.0

13.4

17.9

14.9

20.3

14.3

2,428.2

2,605.8

3,526.0

2,530.3

2412.7

3,015.4

3,543.1

2,304.5

2,428.7

Operating Expenses

2,074.1

2,239.0

2,924.9

2,192.7

2155.4

2,655.0

3,040.8

2,101.6

2,200.6

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

Interest %

PBT

Margin %

Tax

PAT

Margin %

EPS

354.1

366.9

601.1

337.6

257.4

360.4

14.6

86.6

14.1

84.9

17.4

86.0

13.4

84.8

10.7

89.3

12.0

93.5

267.5

281.9

515.2

252.8

168.0

266.9

11.1

48.7

2.0

10.9

54.2

2.1

218.8

227.7

9.0

76.1

8.8

75.8

142.7

151.9

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

502.3

14.2

108.5

393.9

11.2

43.9

1.2

350.0

9.9

119.2

230.8

6.5

14.5

202.9

8.9

101.5

101.4

4.4

41.0

1.8

60.5

2.6

-71.7

132.1

5.8

8.3

228.1

9.4

100.3

127.8

5.3

42.6

1.8

85.2

3.5

23.7

61.5

2.5

3.9

PROFIT & LOSS STATEMENT – HALF YEARLY & 9M

Profit & Loss (₹ mn)

Income from Operations

Other Income

Total Income

Operating Expenses

EBITDA

Margin %

Depreciation

EBIT

Margin %

Financial Charges

Interest %

PBT

Margin %

Tax

PAT

Margin %

EPS

H1FY18

5,103.1

26.0

5,129.1

4,302.7

826.4

16.2

176.8

649.6

12.7

79.6

1.6

570.0

11.2

198.9

371.0

7.3

23.4

H1FY19

5,967.2

89.1

6,056.3

5,117.6

938.7

15.7

170.7

768.0

12.9

95.4

1.6

672.6

11.3

229.8

442.8

7.4

27.9

H1FY20

5,812.3

35.3

5,847.6

5,142.4

705.2

12.1

209.9

495.3

8.5

84.8

1.5

410.5

7.1

47.6

362.9

6.2

22.9

9MFY18

7,521.4

35.9

7,557.4

6,376.9

1,180.5

15.7

263.4

917.1

12.2

128.4

1.7

788.7

10.5

275.0

513.7

6.8

32.3

9MFY19

8,366.6

102.5

8,469.1

7,273.0

1,196.1

14.3

260.1

936.0

11.2

146.3

1.7

789.7

9.4

256.1

533.6

6.4

33.6

9MFY20

8,226.8

49.5

8,276.3

7,343.0

933.4

11.3

310.3

623.1

7.6

127.4

1.5

495.7

6.0

71.3

424.4

5.2

26.7

PROFIT & LOSS STATEMENT – ANNUALLY

Profit & Loss (₹ 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

FY16

10,211.3

10,048.5

24.2

10,235.5

9,252.3

27.3

10,075.8

9,096.2

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

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 (₹ 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

FY14

6.2

3.6

0.87

2.9

77.0

40.0

19.0

FY15

159.2

3,162.6

1,193.9

3,386.5

7,902.2

3,464.4

4,437.8

7,902.20

FY15

8.0

6.4

1.00

4.5

89.0

46.0

21.0

FY16

159.2

3,311.4

758.9

3,959.6

8,189.2

3,368.8

4,820.4

8,189.2

FY16

8.6

7.0

1.02

4.6

84.0

53.0

23.0

FY17

159.2

3,719.5

999.3

2,812.9

7,690.8

3,563.7

4,127.1

7,690.8

FY17

13.4

10.9

0.64

6.3

74.0

59.0

29.0

FY18

159.2

4,297.4

1,090.4

3,298.3

8,845.3

4,258.3

4,587.0

8,845.3

FY18

16.3

14.9

0.63

8.5

85.0

53.0

34.0

FY19

159.2

4,835.8

982.9

3,283.2

9,261.1

4,339.1

4,922.0

9,261.1

FY19

14.9

13.5

0.57

7.8

88.0

50.0

25.0

A N N E X U R E

STOCK INFORMATION

Market cap (₹) 4,154 mn (as on 7st Feb 2020)

Shares outstanding 15.9mn (31st Dec 2019)

NSE code VISAKAIND

BSE code 509055

Shareholding Pattern as on 31st Dec 2019

Relative stock price vs BSE Small Cap

Visaka Ltd

BSE Small Cap Index

Promoters

Retail

FPI

Others

18.01

1.53

38.30

42.16

300

250

200

150

100

Price as on 7th Feb 2020)

KEY MANAGERIAL TEAM

SHRI. DR G. VIVEKANAND Vice Chairman

An MBBS graduate from Osmania University and a former Member of first-generation a 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.

SHRI. G. VAMSI KRISHNA Joint Managing Director

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 joint managing director. He spearheaded the growth the V-next business and invented of in ATUM. He and repositioning introduction of ATUM.

responsible company

was the

SHRI. VEPA VALLINATH Whole Time Director & CFO

He is a member of 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.

B R A N D O F F E R I N G S

PRESTIGIOUS BRANDS OF VISAKA INDUSTRIES

VISAKA & SHAKTI

V-Next

V-Board

V-Plank

ATUM

V-Premium

V-Panel

V-Infill

GREEN PRODUCTS FOOTPRINTS 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 RESIDENTIALS

AWARDS AND ACCOLADES



Silver Winner-Spot light awards by LACP -Under Category Annual Report for 2011-12

 Awareness Centre of Environment- World Environment day – 2006

 AP Distinguished industrial award from Exhibition Society in the year 2003.



The Exhibition Society – AP Distinguished Industrialist Award – 2003 (Large)

 All India Manufacturers Association – Best performance in Large and Medium scale- 2001

 Man of the Millennium award 2000

 Council for Industrial Development & Trade – Industrial Promotion Gold Medal Award– 1990



Productivity award from the Andhra Pradesh Federation of Chamber of Commerce in 1987.

FAPCCI – The Best Industrial Productivity Effort in the state – 1987 (Large)

Best management award from the government of Andhra Pradesh in 1987

 Award from Council for Industrial Development in 1985

CONTACT INFORMATION

INVESTOR RELATIONS CONTACT

Name : V. Vallinath (Whole Time Director & CFO) Email id : vallinath@visaka.in Phone : 040-27813833

ADDRESS

Visaka Industries Limited. Visaka towers",1-8-303/69/3, S.P. Road, Secunderabad - 500003

Thank You

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