Skipper Limited has informed the Exchange about Investor Presentation
$KIPPER
----Limited----
Date: 4 May 2021
The Manager National Stock Exchange of India Limited Exchange Plaza, s" Floor, Plot No. C-1, Block-G Bandra Kurla Complex, Bandra (E) Mumbai- 400 051
The Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai- 400 001
NSE Scrip Name- SKIPPER/BSE Scrip Code- 538562
Re: Investors Presentation
Dear Sir,
We are forwarding herewith Investors Presentation on the financial performance of the Company for the quarter and year ended 31 March 2021.
Kindly take the same on record.
Thanking you,
Yours faithfully, For Skipper Limited
. t, A <f" � cJ,.._
Manish Agarwal Company Secretary & Compliance Officer
Encl: As above
SKIPPER LIMITED Regd. Office : 3A, Loudon Street, 1st Floor, Kolkata - 700 017 CIN: L40104WB1981 PLC033408 Phone: 033 2289 2327 / 5731 / 5732, Fax: 033 2289 5733 Email : mail@skipperlimited com, Website : www.skipperlimited com
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Q4 & 12 M PERFORMANCE, 2020 - 21
SKIPPER LIMITED INVESTOR PRESENTATION Q4 & 12 M FY’21 Results
D I S C L A I M E R
This Investor Presentation has been prepared by Skipper Limited for investors, solely for informational purposes. The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this information. Skipper makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. This Information includes certain statements and estimates provided by the Company with respect to the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by management concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted their own due diligence investigation regarding these and all other matters pertinent to investment in the Company. This presentation may contain statements that are not historical facts, referred to as “forward looking statements.” The corporation’s actual future results may differ materially from those suggested by such statements, depending on various factors including statements contained in the Company's filings with the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any written or oral forward-looking statements that may be made from time to time by or on behalf of the Company
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W H O W E A R E
Company is India’s largest and world's only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC.
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P R O D U C T O F F E R I N G S
S K I P P E R : O N E - S T O P S O L U T I O N P R O V I D E R
Engineering products
Polymer products
Infrastructure projects
Capacity: 300,000 MTPA • Power Transmission Tower • Power Distribution Poles • Monopoles • MS & High Tensile Angles • Solar Structures • Fasteners • Tower Accessories • Railway Structures
Capacity: 51,000 MTPA • UPVC Pipes • CPVC Pipes • SWR Pipes • HDPE Pipes • Fittings
M I S S I O N
• Transmission Line EPC • Railway Electrification EPC • Underground Utility laying by HDD
Highlights Positioned as one of the world's leading transmission tower manufacturer; largest in India
Highlights • Only polymer pipe company in India to implement TOC in its operations
Highlights • Forward integration activity • Aimed at high-margin projects
SKIPPER LIMITED Performance Update
Q4 & 12M FY’21 Update
B U S I N E S S R E P O R T C A R D
F i n a n c i a l P e r f o r m a n c e Q 4 ’ 2 1
Sl
Profit & Loss Summary
1
2
3
4
5
Revenues
Reported EBITDA
EBITDA Margins
(+) Other Income
(-) Depreciation
(-) Finance Cost
Finance Cost as % to Revenue
6
Profit Before Tax (2+3-4-5)
7
8
PBT Margins
Tax
Profit After Tax (8-9)
PAT Margins
Q4 FY’21
4,973.5
427.9
8.6%
23.8 116.4
209.5
4.2%
125.9
2.5%
35.0
90.8
1.8%
Rs in Mn
Q4 FY’20
Change %
4,388.5
272.0
6.2%
3.0 96.8
198.6
4.5%
(20.4)
-0.5%
(294.3)
273.9
6.2%
13.3%
57.3%
5.5%
-66.8%
Reported EBITDA includes derivative and foreign exchange Gain / (loss) of Rs 14.6 mn & (Rs 194.5 mn) in Q4 Fy’21 & Q4 Fy’20 respectively
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B U S I N E S S R E P O R T C A R D
F i n a n c i a l P e r f o r m a n c e F Y ’ 2 1
Rs in Mn
Sl
Profit & Loss Summary
FY’21
FY’20
Change %
1
2
3
4
5
Revenues
Reported EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
Finance Cost as % to Revenue
6
Profit Before Tax (2+3-4-5)
7
8
PBT Margins (%)
Tax
Profit After Tax (8-9)
PAT Margins (%)
15,815.1
1,437.1
13,905.1
1,391.3
13.7%
3.3%
9.1%
40.2 452.6
723.6
4.6%
301.2
1.9%
90.4
210.8
1.3%
10.0%
19.6 381.0
847.6
6.1%
182.3
1.3%
(232.6)
414.9
3.0%
-14.6%
65.2%
-49.2%
Reported EBITDA includes derivative and foreign exchange Gain / (loss) of Rs 279.1 mn & (Rs 155.1 mn) in FY’21 & FY’20 respectively
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C o n s i s t e n t & I m p r o v e d R e v e n u e P e r f o r m a n c e Tr e n d A c h i e v e d 1 4 % r e v e n u e g r o w t h ( Y o Y ) i n F Y ’ 2 1 d e s p i t e o f c o v i d r e l a t e d l o c k d o w n & c h a l l e n g e s
4598
13 %
4974
4,388
Rs in Mn
3,386
- 35 %
2207
29 %
4036
53 %
3,133
2,998
Q1
Q2
Q3
Q4
•
Increased focus on Engineering Exports – Full year export revenue achieved Rs 3,506 mn Vs 1,488 mn in FY’20 (+136%)
FY 20
Fy 21
• Strong traction in Polymer business led to improved performance – Full Year Revenue
Rs 2,165 mn Vs Rs 1,363 mn in FY’20 (+59%)
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P E F R O R M A C E H I G H L I G H T S – Q 4 F y ’ 2 1
Strong Revenue Performance across all business segments
Stand Alone - Revenue
Segment - Revenue
Rs in Mn
Rs in Mn
4,974
13%
+ 3 %
3,665
3,565
4,388
Achieved highest ever net revenue quarter in polymer segment
+ 81 %
+ 34 %
792
438
517
385
Q4 FY '21
Q4 FY'20
Engg
Polymer
Infra
Q4 Fy'21
Q4 FY'20
• Engineering exports increased to Rs 1,246 mn vs Rs 321 mn in Q4 FY’20 (+ 288%) • Revenue pie from Polymers increased from 10 % to 16%
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S E G M E N T R E P O R T
S e g m e n t P e r f o r m a n c e Q 4 & 1 2 M F Y ’ 2 1
Polymer 14%
Infra 10%
Engg 76%
Revenue Mix – 12M FY’21
Note: Segment Operating EBITDA is net of Forex and includes allocation of un-allocable expenditure in pro-rata share of Sales & Capital Employed in their respective segment
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SegmentProfit & Loss SummaryQ4 FY'21Q4 FY'20Change %12M FY'2112M FY'20Change %Net Sales3,665.0 3,565.0 2.8%11,986.2 11,425.5 4.9%EBITDA - Operating364.5 429.0 -15.0%1,057.0 1,452.1 -27.2%% of Sales9.9%12.0%8.8%12.7%Net Sales791.9 438.2 80.7%2,165.4 1,363.2 58.8%EBITDA - Operating46.5 30.9 50.5%70.5 55.5 27.0%% of Sales5.9%7.1%3.3%4.1%Net Sales516.6 385.4 34.0%1,663.5 1,116.4 49.0%EBITDA - Operating2.3 6.5 -64.2%30.5 38.9 -21.6%% of Sales0.5%1.7%1.8%3.5%Net Sales Total4,973.5 4,388.6 13.3%15,815.0 13,905.1 13.7%EBITDA Total413.3 466.4 -11.4%1,158.0 1,546.5 -25.1%% of Sales8.3%10.6%7.3%11.1%Engg ProductsPVC ProductsInfra Projects Total E f f i c i e n t D e b t M a n a g e m e n t
Debt Details
Rs in Million
31.03.2021
31.03.20
Inc / (Dec)
Long Term Debt
Current Maturities of Long Term Debt
Total Long Term Debt
Short Term Debt
Gross Debt Level
Debt Equity Ratio (X)
2,563
586
3,149
1,236
4,385
0.62
1,569
344
1,913
2,624
4,537
0.66
994
242
1,236
(1,388)
(152)
(0.04)
Gross Debt reduced by Rs 152 million during the period, on account of better working
capital utilisation.
Reduction in overall finance cost by 15 % in compare to previous year 12 months period,
despite of growth in revenue.
Efforts continues on cash flow & balance sheet consolidation, focus to improve bottom-line
profitability
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K E Y P E F R O R M A C E H I G H L I G H T S
Performance Update
Key Highlights
Skipper became World’s only Integrated T&D company having its own structure rolling, Tower & Pole
manufacturing, Tower Load Testing Station & Transmission Line EPC under the same brand.
Fully operationalized state of art Transmission Line Tower Testing Station (DSIR recognised).
First Company in India and one of the first in world to have successfully designed, fabricated and type
tested a 400 KV / 765 KV S/C Monopole
The Company’s external credit rating has been assigned as “A-”/Stable by ACUITE against CARE BBB+ on account of improved operational & financial performance in conjunction with better growth prospects.
Company opened its marketing office in Canada and even secured its first ever Tower & Monopole orders
from North American markets
Only polymer product manufacturing company to implement Theory of Constraints (TOC) in an organized
manner, Retailer touch points increased 10(X) fold in last 2 year period
Awards & Recognition
Business Leadership Award conferred to our MD Sri Sajan Kumar Bansal by CMA Management Excellence
Awards (March 21)
Awarded with " Best Award Brand" by World Marketing Congress (March 21)
Awarded with "West Bengal Best Employer Award" by 15th Employer Branding Awards (March 21)
Awarded with “Dream Companies to Work” by Economic Times National Feather Award (April 21)
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P E F R O R M A C E H I G H L I G H T S
FY’21 - Performance Update
Strong Revenue performance across all the business segments ; Achieved highest ever quarterly
revenue performance in Q4 in Polymer segment
Focus continues on Bottom-line improvement; PBT grew significantly in compare to previous year
quarter and 12 months period
Interest cost as % of sales reduced to 4.6 % against 6.1 % in previous year
Secured new orders of Rs 3,810 million in Q4 FY’21 for Engineering products supplies from PGCIL,
SEB’s, Telecom and for supplies across various export markets ; YTD inflow at 8,750 million
Actively pursuing projects worth Rs 27,000 million on international front and about Rs 11,000
million on the Domestic front
Stronger expected execution in both Engineering & Polymers segment going forth coupled with Productivity and cost reduction initiatives at the plant and site level are expected to further improve efficiency in operations and aid to stable margins
Unprecedented commodity price rally in our Key raw material items (i.e Steel, Zinc & Resin), higher ocean freight rates and Non Clarity of Remission of Duties and Taxes on Export Products (RoDTEP) adversely impacted profitability
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S t r o n g B i d d i n g P i p e l i n e
Strong Bidding Pipeline of 38,000 Million as on 31st March 2021; International – 27,000 Mn & Domestic - 11,000 Mn
•
•
•
•
Expecting International Ordering & Execution to gain pace in FY’22;
In advanced Stages of negotiation to secure some good size International contract
Large pent up demand in domestic T&D ; Ordering continues to remain muted
Increased focus on building up Engineering capabilities
International
Growing global competiveness; Focusing on international markets to drive the ordering growth;
Strong Anti China Sentiment; and global supply chain now actively looking for reducing their dependence on China is a great positive outcome of this crisis ; will bring more opportunities on our way
Majority of New Transmission lines are now getting built to cater renewables; leading to shorter
execution cycle and faster supplies to meet project deadlines.
Domestic
After a 2 years lull, The domestic T&D actvities are showing signs of rebound
Large bunching up of order that remained postponed + Rs 500,000 million of GEC related projects to
come up for bidding will provide much needed boost to the domestic transmission industry
Tender Pipeline continues to stay strong, Many tenders in the domestic T&D market which got
postponed, largely GEC related projects – now expected to be concluded by H1’22 .
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O R D E R B O O K P I E
E n g i n e e r i n g P r o d u c t s – O r d e r B o o k C o m p o s i t i o n – M a r 2 0 2 1
Total Order Book Rs 16,020 million
T&D Order Book Rs 14,120 million
3%
9%
88%
T&D Breakup
T&D
Domestic – 67%
Telecom
Railways
Export – 33%
40%
22%
38%
PGCIL
SEB & Others
Export
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O R D E R B O O K P I E
E n g i n e e r i n g P r o d u c t s – O r d e r I n f l o w C o m p o s i t i o n
FY’21 Qtr Wise - Order Inflow Total – Rs 8,750 million
3,810
2,200
2,300
n o
i l i i
M n
i
s R
440
Q1 Fy'21
Q2 FY'21
Q3 FY'21
Q4 FY'21
YTD inflow at Rs 8,750 million (Rs 12,410 mn in FY’20) was lower than usual due to the following reasons –
A large percentage of orders available in the market are on fixed price basis and cautious is adopting a company approach intake new in considering volatile commodity market scenario
present
order
the
Majority of New Transmission lines are now getting built to cater renewables; leading to shorter execution cycle and faster supplies to meet project deadlines.
Bid to - order life cycle prolonged due to
covid led disruption
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M a c r o F a c t o r A f f e c t i n g I n p u t C o s t
Billet Domestic INR /MT
37,120
38,579
33,998
35,346
38,056
46 %
27,643
28,254
27,904
26,400
29,875
29,577
30,540
Rs/ MT
40,000
35,000
30,000
25,000
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Domestic Billet Prices Rs per MT (Ex Raipur)
Source – Steelmint
USD/ MT
LME Zinc USD / MT
3,000
2,600
2,200
1,800
1,975
2,026
1,903
2,177
2,672
2,782
2,705
2,745
2,792
47%
2,414
2,442
2,441
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Source – IMF
Zinc LME USD per MT
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M a n a g i n g R M P r i c e V o l a t i l i t y
The company is taking all necessary steps to tackle & neutralise the impact of this temporary RM volatility issues in its Fixed Type Contracts and protect margins -
Mitigation Strategy
Securing Newer Contracts at elevated price level
Taking advantage of low working capital debt level of company to keep higher raw material inventory so that a larger portion of the fixed price contracts are covered with the inventory
Hedging Zinc & Flat Steel Exposure through Vendor & commodity exchange
Negotiating firm prices contract with raw material supplier for longer duration
Expanding Raw material supplier base
Forging Tie-ups with major raw material suppliers with minimum up-liftment commitment to gain maximum possible rebates and discounts.
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B u s i n e s s O u t l o o k
P E R F O R M A N C E O U T L O O K
Company expects to clock double digit annual revenue growth in FY’22 on back of strong pending execution of engineering contracts and strong polymer segment performance;
Expect good traction in International TL orders, While
pending domestic TL ordering bids are expected to start getting awarded by Q1’22 / Q2’22
Focus on mechanisation and automation along with several cost reduction initiatives to further improve efficiency in operations and aid to stable margins
Implementation of TOC in both Engineering and Polymer business to significantly improve its working capital cycle and bottom-line profitability
Continuing efforts to further strengthen the international T&D order book ; positioned to grow exports to 50% of engineering revenue in next 2 years
Tweet dated 03rd May 2021
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S h a r e h o l d i n g P a t t e r n
S h a r e h o l d i n g p a t t e r n a s o n 3 1 s t M a r c h 2 1
M a j o r I n s t i t u t i o n a l S h a r e h o l d e r s A s o n 3 1 s t M a r c h 2 1
Promoters 71.89%
Name
%
Ocean Dial Asset Management India (ICGF) 5.33%
Baillie Gifford - Pacific Horizon Investment Trust
IDFC Sterling Value Fund
Polus Global Fund
2.72%
1.85%
0.78%
Mutual Funds 1.85%
Foreign Portfliio Investors 8.97%
Others 17.29%
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Fully Integrated In-House Research & Development Centre
Future Ready
F U T U R E R E A D Y
Skipper boasts of largest Tower & Monopole Load Testing Station in India, which is also one of the largest in the world.
Started Operations in the state of art Transmission Line Tower Testing Station is spread across 14 acres of land in Howrah, West Bengal commissioned in March’20.
Approved and recognized by Dept. of Scientific and Industrial Research (DSIR), Govt. Of India.
One of the largest Testing facilities of India and first of its kind in Eastern India
Capable of Full scale load testing, a reliable tool for validating the structural design
The facility is designed to Test all kinds of Lattice Towers, Monopoles & Guyed Towers with World
Class Technical Parameters
Ultimate Destination for OHTL Contractors & Manufacturers for Prototype Testing
For the first time ever, all new large T&D projects in domestic markets comes along with Design and Load testing scope; Our new R&D centre will give us distinct advantage over competition.
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T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n
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T r a n s m i s s i o n L i n e To w e r Te s t i n g S t a t i o n
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For any queries please contact:
Aditya Dujari (Investor Relations)
Skipper Limited 3A, Loudon Street, 1St Floor, Kolkata 700 017
E-Mail: aditya.dujari@skipperlimited.com Tel: + 91 33 2289 2327/5731 Mobile: 9830806906
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