Stylam Industries Limited has informed the Exchange about Investor Presentation
Ref. No. : slLl cHD I 2021,'22 I 221021' Dated :22.1,0.2021.
The President, Corporate Relation DePartment, Bombay Stock Exchange Limited, P h iroze JeejeebhoY Towers, 25th Floor, Dalal Street, Mumbai-400001
The Manager, Listing Department, National Stock Exchange of lndia Ltd.(NSE) Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra, Mumbai-400051
BSE Scrip Code: 526951
Trading Symbol: STYLAMIND
Sub : lnvestor Presentation for the Quarter September, 2021
& Half Year ended on 30th
Dear Sir/Mam,
Pursuant to Regulation 30 of SE Bl (Listlng Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Presentation for the Quarter & Half Year ended on 30th SePtember, 2021.
Please take the same on record
Thanking You,
For
m lndustries Limited
u pta
Jagdish Managing Director
Stylam lndustries Limited Regd,offi(e: sCO 14, Sector 7 C, Madhya Marg, Chandigarh (lNDlA)-l60019 T: +9'l-172 ' 502'l 555/5021666 t: +91-'172-5021495 Work l: Plot No. 192 ' '193, lndustrial Area Phase -'l Panchkula (Haryana) INDIA - 1 34109 T: +91- 1 72-2563907 /2565387 Work ll: Village Manak Tabra towards Raipur Rani, Mattewala Chowk, Distt. Panchkula (Haryana) W: www.stylanr.com (ll{: 12021 1CH199l PLCo1 1732 (Govt. of lndia recognised Star Export House)
S T Y L A M I N D U S T R I E S L I M I T E D
I N V E S T O R P R E S E N T A T I O N
Q 2 F Y 2 2 - O c t
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Table of Contents
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C O R P O R A T E O V E R V I E W
P R O D U C T P O R T F O L I O
I N F R A S T R U C T U R E & P R E S E N C E
M A R K E T I N G I N I T I A T I V E S
C E R T I F I C A T I O N S & A W A R D S
F I N A N C I A L U P D A T E S
V I S I O N 2 0 2 5
S H A R E H O L D E R S V A L U E C R E A T I O N
Stylam Industries Limited
2
Corporate Overview
•
Stylam Industries is the one of the fastest growing companies in the high-quality decorative laminates and allied products industry.
• We operate Asia’s largest single location laminate manufacturing plant with a diverse product portfolio, catering to a wide range of customer preferences, built with over 29 years of experience in the industry.
• We are a pioneer in India for introducing the PU+ Lacquer Coating process thereby producing high quality, high value-add laminate finishes. Apart from laminates, we have state of the art technologies and manufacturing facilities for Solid Acrylic Surfaces and Panels.
• We also diversified into a new segment and added a short cycle press capacity for lamination
of impregnated paper on Medium Density Fiber (MDF) panels.
• About two-third of our revenues are derived from exports to over 65 countries; the balance
being derived from our presence across the Indian subcontinent.
Stylam Industries Limited
3
Diversified Product Portfolio (1/3)
Stylam laminates have set benchmarks in the past because of the unique design range and consistently high quality.
FASCIA brings a unique façade system, manufactured using special quality resins, thereby providing effective weather protection.
CUBOID - modular restroom and locker cubicle systems. The range has been crafted with the finest materials and highest quality of fixtures and fittings.
Marvella Solid Surfaces; the perfect recipe for an exquisite décor. These surfaces offer unseen and spellbinding patterns along with long-lasting sturdiness.
Anti-Fingerprint Laminates are used in the most demanding interior design applications. A unique technology during manufacturing ensures that finger marks are almost never visible.
GLOSSPRO+ Laminates are crafted with State-of-the-art machines having a cutting- edge German Technology. The brilliance of gloss shall stay through years without any signs of wearing out.
Granex Solid Surfaces is an extremely versatile product - tough, durable, non-porous and repairable, that can be customized to integrate seamlessly.
ANTI-BACTERIAL & ANTI-FUNGIE LAMINATES
Anti-bacterial & Anti-fungie Laminates are intended for applications where there is a need for additional protection on the surfaces against bacteria/fungie.
Stylam Industries Limited
4
Diversified Product Portfolio (2/3)
What makes UNICORE unique is the identical colour of the decorative surface and its core layers as well.
Digital Laminates have just the features everyone has needed. A whole new world of creative and quality laminates among customized designs.
Stylam Synchro Laminates have the real feel of wood and an elegant natural look while carrying all advantages of a laminate.
Plus Guard Stylam Laminate provides a highly durable surface in lab conditions and has better abrasion and scratch resistance.
SYNCHRO LAMINATES
CHEMICAL RESISTANT LAMINATES
POST FORMING LAMINATES
MAGNETIC LAMINATES
MIRROR SHIELD LAMINATE
CHALK BOARDS & MARKER BOARDS
Post Forming Laminates enhance the decorative property of the edges of any regular laminate by ensuring no seams around the corners and a smooth, evenly laminated surface.
Magnetic Laminates have a strong magnetic effect and can be written on with chalks or special board markers. They are ideal for a wide variety of applications.
Mirror laminates are considered ideal for adding flair to light duty, horizontal or vertical applications. They can be used on walls, furniture, retail fixtures, signages, exhibits and display areas.
Chalkboard Laminate is the perfect solution for any space or application that demands a durable and affordable writing surface.
Stylam Industries Limited
5
Diversified Product Portfolio - Multiple Applications (3/3)
Stylam Industries Limited
6
Manufacturing Infrastructure: One of the largest in Asia (1/2)
Stylam Industries Limited
7
Manufacturing Infrastructure: State of the Art Facilities (2/2)
• Stylam operates one of the largest single location laminate manufacturing plants in Asia,
spread across 44 acres having an annual capacity of 14.3 mn sheets.
• We are a Global Pioneer for the ‘Hot Coating Process’ of PU+ Lacquer coating on thin laminates. This one-of-a-kind Hot Coating Process machine is made with a patented technology by KLEIBERIT and BARBERAN.
• We are also a Pioneer in India for Solid Acrylic Surfaces, setting up the first production line to
manufacture these products in India.
• We recently received a Certification from NSF International, USA for our Solid Acrylic Surface
products
• Over 1,200 employees devote themselves to Stylam and its vision with a smile daily.
Stylam Industries Limited
8
Strong Global & Domestic Presence
Well penetrated globally as well as a wide domestic presence
Global presence in over 65 countries across Europe, Middle & Far East, the Americas (North and South), Asia, Africa and other geographies;
Increasing domestic presence across the country.
Stylam Industries Limited
9
Marketing Initiatives
Stylam Industries Limited
1 0
Recent Certifications
• Stylam’s status has been upgraded to “Three Star Export House” from the earlier
“Two Star Export House” as per the Foreign Trade Policy provisions.
• NSF International, USA recognized and certified Stylam authorizing the
Company to bear the NSF mark.
• Our Company is certified under the AEO programme (Authorized Economic
Operator) by the Indian Customs.
Stylam Industries Limited
1 1
Awards & Recognitions
“Over the last three decades we have strived to achieve our dream which has been a constant endeavor. We aim to improve each day and these recognitions motivate us to aim higher and perform better.”
The ISO 9001:2015 certification is a hallmark of integrity, quality and reliability. The design and efficiency of the laminates have earned us the CE Marking Award.
Stylam takes pride in being recognized as:
Export House by the Government of India, meeting all the quality, safety and green standard requirements while operating as a responsible corporate citizen.
Recognised by Financial Times and Statista as one of the FT 1,000 High-
Growth Companies Asia-Pacific 2018.
Honored with the Power Brands Rising Star Award 2016.
Honoured by the Renewable Energy Department for commendable work in
adopting energy conservation measures under the L.T. Industry Category.
Stylam Industries Limited
1 2
Summary Financial Performance (Consolidated)
(₹ crore)
Net Revenue
EBITDA
PAT
(₹ crore)
Net Revenue
EBITDA
PAT
Q1FY22
Q2FY22
Q3FY22
Q4FY22
YTD FY22
131
26
14
172
24
15
-
-
-
-
-
-
Q1FY21
Q2FY21
Q3FY21
Q4FY21
70
15
6
115
24
14
124
25
12
167
31
23
303
50
29
FY21
476
95
55
Stylam Industries Limited
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Quarterly Sales Performance
115
85
30
124
84
40
70
56
14
167
103
64
131
92
39
172
104
68
Q1FY21
Q2FY21
Q3FY21
Domestic
Q4FY21
Q1FY22
Q2FY22
Exports
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
1 4
Profit and Loss (Consolidated)
(₹ crore)
Net Revenue
Material Consumption
Contribution
Contribution Margin (%)
Employee Expenses
Other Expenses
EBITDA
EBITDA Margin (%)
Other Income
Finance Costs
Depreciation and Amortization
Less: Exceptional Items
PBT
PBT Margin (%)
Tax Expense
PAT
PAT Margin (%)
Sheets Sold (# mn)
Stylam Industries Limited
Q2FY22
Q1FY22
Q2FY21
H1FY22
172
101
71
41.5
14
33
24
14.2
4
2
6
-
21
12.1
6
15
8.5
2.7
131
69
62
47.2
12
24
26
20.0
0
2
6
-
19
14.6
5
14
10.6
2.0
115
58
57
49.6
9
24
24
21.3
0
2
6
-
18
15.4
4
14
11.9
1.8
303
170
133
43.9
26
57
50
16.5
4
4
12
-
40
13.2
11
29
9.6
4.7
FY21
476
247
229
48.2
38
96
95
20.0
5
6
23
-
71
14.8
16
55
11.5
6.8
1 5
Balance Sheet (Consolidated)
ASSETS (₹ crore)
H1FY22
Fixed assets
Capital work in progress
Investment in property
Other non-current assets
Total non-current assets
Inventory
Trade receivables
Cash and bank
Other current assets
Total current assets
Total assets
185
-
-
4
188
107
105
11
38
260
449
FY21
188
-
-
6
193
72
99
15
27
213
407
LIABILITIES (₹ crore)
H1FY22
FY21
Equity share capital
Other equity
Net Worth
Long term borrowings*
Short term borrowings
Total Debt
Trade payables
Other current liabilities
Other non - current liabilities
Total liabilities
8
276
284
14
54
68
61
14
22
97
8
251
260
21
38
59
51
16
21
88
Total equity and liabilities
449
407
Note - *Long Term Borrowings include current maturities
Stylam Industries Limited
1 6
Historical Sales Performance
338
230
108
FY18
294
204
90
FY17
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
460
462
302
308
158
FY19
154
FY20
Exports
Domestic
476
328
148
FY21
1 7
Improving Margin Profile
95
20.0%
80
17.3%
80
17.2%
15.5%
46
FY17
49
14.5%
FY18
FY19
FY20
FY21
EBITDA
EBITDA Margin
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
1 8
Balance Sheet Transformation
183
77
146
126
186
187
204
112
FY17
FY18
FY19
FY20
Net Worth
Net Debt
260
44
FY21
Figures in ₹ crore unless mentioned otherwise
Stylam Industries Limited
1 9
Improving Return Profile
23.8%
21.3%
17.4%
18.1%
17.5%
12.7%
FY20
FY21
H1FY22*
RoE
RoCE (post-tax)
Note – RoE and RoCE for FY20 has been computed without considering exceptional item for better comparison; *H1FY22 RoE and RoCEs are on an annualised basis.
Stylam Industries Limited
2 0
Review of Financial Performance (Q2FY22)
• Despite the COVID backdrop, our sales for the quarter were INR 172 crore registering a strong growth (50% YoY and
31% QoQ).
•
•
•
The export sales were INR 104 crore (23% YoY and 13% QoQ). Domestic sales witnessed strong growth at INR 68 crore (126% YoY and 74% QoQ). This was bolstered by the strong opening of markets post second wave and surge in housing demand.
Stylam sold 2.7 million sheets of laminates during the quarter (vs. 1.8 million in Q2FY21). Per sheet average realizations vary based on the product mix during the period.
The industry has witnessed massive adverse movement in raw materials, significantly impacting margins. This can be attributed to the supply chain constraints witnessed world over. To exacerbate the situation, due to the ongoing container crisis, logistics and freight costs have skyrocketed.
• Consequently, we have seen a drop in our contribution margins to 41.5% (800 bps decline YoY). Our EBITDA for the quarter was INR 24.5 crore which was flat compared to the same period in FY21. However, in terms of EBITDA margins, it declined to 14.2% compared to 21.3% in Q2FY21.
• Working capital cycle stood at 92 days (vs. 95 days for Q1FY22).
Stylam Industries Limited
2 1
Update: Foray into Plywood
•
•
•
The global Plywood market is estimated at USD 43 billion in 2020 and is projected to reach USD 58 billion by 2026.
The Indian Plywood market is estimated at approximately INR 25,000 crore (as per Plyreporter) as compared to other panels (MDF, Particle board etc.) which is about INR 6,000 crore.
India is predominantly a Plywood consuming market with the mix of Plywood to other panels (MDF, PB etc.) being about 80:20.
• Given the long-term thesis and the recent pick-up in construction activity, home renovations and the building
materials sector as a whole, we are confident of setting up and scaling this new vertical.
•
Stylam received an approval from the Board on the 27th of May 2021 to expand into the Plywood segment with an estimated outlay of upto INR 60 crores.
• Consequently, the Company set up a wholly owned subsidiary, Stylam Panels Limited with an authorized capital of
INR 2 crores with a face value of INR 10 each.
•
The Company envisages its entry into the premium plywood segment in addition to the mass consumption market and the industrial commercial segment.
Stylam Industries Limited
2 2
Vision 2021-2025
•
•
Increase capacity utilisation on the back of completed expansion (capacities in place to double revenues).
Improve and enhance share of value-add products in the product mix as well as expanding the product range.
• Strengthen domestic presence with a deeper reach and penetration and creation of a strong brand.
• Expand coverage across newer exports regions along with increasing business with existing partners.
• Setting up the Plywood manufacturing facility - Stylam Panels Limited incorporated
• On track to be net debt free by the end of fiscal 2022.
Stylam Industries Limited
2 3
Value Creation for Shareholders
1,817
1,183
223
FY20
FY21
Q2FY22
Market Capitalization (₹ crore)
• During
Q4FY21,
Company completed its sub-division of shares (i.e. share split).
the
• One share with Face Value INR 10 was
split into two shares of INR 5 each.
•
The total outstanding shares of the company increased from 84,74,030 to 1,69,48,060.
• Current Market Capitalization is
INR 1,799 crore basis closing price of October 21, 2021.
Stylam Industries Limited
2 4
Safe Harbor Statement
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Stylam Industries Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied on in connection with any contract or binding commitment whatsoever. The Presentation is not intended to form the basis of any investment decision by a prospective investor. 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, reliability or fairness 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. In particular, but without prejudice to the generality of the foregoing, no representation or warranty whatsoever is given in relation to the reasonableness or achievability of the projections contained in the Presentation or in relation to the bases and assumptions underlying such projections and you must satisfy yourself in relation to the reasonableness, achievability and accuracy thereof.
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 wind power industry in India and world-wide, 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.
No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Management, the Shareholders and the Company or any of them or any of their respective directors, officers, affiliates, employees, advisers or agents.
Stylam Industries Limited
2 5
T H A N K Y O U
REGISTERED OFFICE: SCO 14, Sector-7C, Chandigarh Plant 1: Plot No. 191, Industrial Area-1, Panchkula, Haryana Plant 2: Village Manak Tabra, Ramgarh-Raipur Rani Road, Distt. Panchkula, Haryana Website: www.stylam.com