Shankara Building Products Limited has informed the Exchange about Investor Presentation
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Shon#kora° Shon#kora°
Bui Id in g Products Limited Bui Id in g Products Limited
Date: 13 February, 2024 Date: 13 February, 2024
To To Department of Corporate services Department of Corporate services BSE Limited BSE Limited 1 Floor, New Trading Ring, 1 Floor, New Trading Ring, Rotunda Building, Phiroze Jeejeebhoy Rotunda Building, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Towers, Dalal Street, Fort, Mumbai-400001 Mumbai-400001 Scrip Code: - 540425 Scrip Code: - 540425
To To Listing Department Listing Department National Stock Exchange of India Limited National Stock Exchange of India Limited Exchange Plaza, Plot No. C-1, Exchange Plaza, Plot No. C-1, G Block, Sandra Kurla Complex, G Block, Sandra Kurla Complex, Bandra (E) Bandra (E) Mumbai- 400051 Mumbai- 400051 Symbol- SHANKARA Symbol- SHANKARA
Sub:- Investor's presentation- 03 & 9M FY24 Results Sub:- Investor's presentation- 03 & 9M FY24 Results
Dear Sir/Madam, Dear Sir/Madam,
Please find enclosed Investor's Presentation for Q3 & 9M FY24 Results pursuant to Regulation 30 Please find enclosed Investor's Presentation for Q3 & 9M FY24 Results pursuant to Regulation 30
of the SEBI (Listing Obligations and Disclosure Requirements), Regulation 2015. of the SEBI (Listing Obligations and Disclosure Requirements), Regulation 2015.
You are requested to take note of the same. You are requested to take note of the same.
Thanking You. Thanking You.
Yours faithfully Yours faithfully For Shankara Building Products Limited For Shankara Building Products Limited
Ereena Vikram Ereena Vikram Company Secretary & Compliance Officer Company Secretary & Compliance Officer
Registered Office : Registered Office : G2,Farah Winsford, 133 Infantry Road, G2,Farah Winsford, 133 Infantry Road, Bengaluru-560001.Karnataka Bengaluru-560001.Karnataka Ph.: + 91- 080-40117777, Ph.: + 91- 080-40117777,
Corporate Office : Corporate Office : No. 21/1 & 35-A-1,Hosur Main Road, No. 21/1 & 35-A-1,Hosur Main Road, Electronic City, Veerasandra, Bengaluru-560100 Electronic City, Veerasandra, Bengaluru-560100 Ph.: +91-080-29910702 I 080-29910709 Ph.: +91-080-29910702 I 080-29910709
Email :- info@shankarabuildpro.com Email :- info@shankarabuildpro.com
CIN:L26922KA1995PLC018990, CIN:L26922KA1995PLC018990,
I Website: www.shankarabuildoro.com I Website: www.shankarabuildoro.com
Digitally signed by EREENA VIKRAMDN: cn=EREENA VIKRAM c=IN o=PERSONALDate: 2024-02-13 15:25+05:30 Shanlkara
Building Products Ltd.
Investor Presentation
-
Q3 & 9M FY2024 February 13, 2024
•
•
I ,
Disclaimer
Shanlkoro
Building Products Ltd.
The statements contained in this document speak only as at the date as of which they are made and certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, competitive intensity, pricing environment in the market, economic conditions affecting demand and supply, change in input costs, ability to maintain and manage key customer relationships and supply chain sources, new or changed priorities of trade, significant changes in political stability in India and globally, government regulations and taxation, climatic conditions, natural calamity, commodity price fluctuations, currency rate fluctuations, litigation among others over which the Company does not have any direct control. These factors may affect our ability to successfully implement our business strategy. The Company, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein and the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of the management of the Company on future events.
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
2
Business Highlights
Shanlkoro
Building Products Ltd.
Demerger of Building Materials Marketplace and Manufacturing
▪ Approved by the board in Dec-23 and filed with Stock Exchanges in Jan-24 ▪ To create two separate focused listed entities in building materials marketplace and manufacturing ▪ ▪ Upon completion, the shares of new entity (Shankara BuildPro) will be listed on the NSE & BSE
Shareholders to get 1 share of new entity for each share held in SBPL, resulting in no change in shareholding
▪ Consolidated nine-month revenues up by 22% YoY, while Non-Steel Revenues up by 35% YoY ▪ Consolidated nine-month EBITDA & PAT up by 25% & 30% YoY respectively; EBITDA margins at 3.2% ▪ Working Capital Days continues to be around 30 days
9M FY2024 Financial Performance
Other Business Updates
▪ Non-steel share improved to 11% in Q3 vs 9% in Q2, with strategic measures towards growing value-added portfolio ▪ Tiles segment grew by almost 40% in 9MFY24, primarily led by growth in private label, Fotia Ceramica, while
Sanitaryware revenues were up by 40%+ in 9MFY24
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
3
Financial Highlights
h
Shonkoro "
Building Products Ltd.
Revenue
EBITDA
PAT
4 2 Y F M 9
4 2 Y F 3 Q
3,452 +22% YoY
1,177 +9% YoY
Figures in Rs. Crore
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
111 +25% YoY
57 +30% YoY
EBITDA Margin 3.2%
PAT Margin 1.6%
40 +23% YoY
21 +31% YoY
EBITDA Margin 3.4%
PAT Margin 1.8%
4
Business momentum continues, while diversifying building materials portfolio
Shanlkoro
Building Products Ltd.
Revenue (Rs. Crore)
+35% CAGR
1,396
1,636
T
T
2,820
3,452
140 .00
120 .00
100 .00
80. 00
60. 00
40. 00
20. 00
0.0 0
[]
49
3
Profitability (Rs. Crore)
■
EBITDA
■
PAT
+31% CAGR
3.2% 1.6%
44
89
57
111
57
19
5.0 %
4.0 %
3.0 %
2.0 %
1.0 %
0.0 %
-1.0%
9MFY21
9MFY22
9MFY23
9MFY24
9MFY21
9MFY22
9MFY23
9MFY24
Revenue Mix
Steel Products
Non-Steel Products
10%
■
Steel Pipes & Tubes
31%
■
Other Steel Products
59%
Non-Steel Products
)
6%
7%
8%
14%
■
Steel Tubes & Pipes
■
Steel-Flat Products
■
Roofing
65%
■
TMT
■
Steel-Long Products
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
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1%
4%
20%
32%
■
Sanitaryware
■
Tiles
43%
■
PVC Pipes & Fittings
■
Electricals
■
Others
5
Strategically aimed at growing value-added portfolio aggressively
Shanlkoro
Building Products Ltd.
Steel Products
Non-Steel Products
SKUs 1,00,000+
Brands 125+
) e r o r C
. s R
( e u n e v e R
7 6 6 3
,
8 1 1 3
,
2 6 3
4 3 3
Product Categories 75+
FY21
FY22
FY23
9MFY23 9MFY24
FY21
FY22
FY23
9MFY23
9MFY24
Significant runaway to expand our market share in all non-steel products
Hence, focus is to grow the non-steel business more rapidly in the coming years, given the high value-adding nature of this segment
Rs. Crore
Sanitaryware & Fittings
Tiles
PVC Pipes & Fittings
Electricals & Lighting
Paints & Coatings
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"p
TAM
~18,000
~45,000
~40,000
~70,000
~75,000
Shankara’s Revenue (FY23)
Non-Steel EBITDA
150
113
13
5
4
4%
5%
5%
5.5%
FY21
FY22
FY23
9MFY24
TAM – Total Addressable Market (India Market Size – Estimated), as per available industry data
6
Strategic steps taken towards improving value-added portfolio
Shanlkora
Building Products Ltd.
❑ Fotia Ceramica, our private label, is a strategic expansion in the tile segment
❑ After successful ramp up in Kerala, Fotia is expanding in Karnataka,
Tamil Nadu, Maharashtra & other Southern regions
❑ Focus on flagship stores in Bangalore and Chennai to
display luxury, imported and handmade tiles
❑ Strengthening our premium range with addition of brands like
Duravit, Hans Grohe, Kohler & Grohe
❑ Focus on Italian Imported Bathrooms under brand,
Involgia
~~ilaioro Building Materials and more P
❑ Launch of store-in-store with Nippon Paints
❑ Added Hardware with Hafele & other reputed brands
❑ Added Modular Kitchens and Wardrobes with Panasonic
❑ Added German Engineered Wooden Doors with Wesmarc
❑ Re-designing Buildpro.store to be a comprehensive
building material solution for our customers
❑ Creating a marketplace to bring customers, services &
products together
❑ Working on a loyalty program for customers and influencers to entice
❑ Added Appliances with Faber, Carysil, Siemens and Hafele
them to remain with BuildPro for their entire building lifecycle
Bilaioro Building Materials and more P
7
Building a dominant position in South, while expanding into other regions
Warehouses
Processing Units
BuildPro Store
10/1
States/UT
45
Cities
8t
4%
5%
7%
11%
9M FY24
52%
13%
Shanlkoro
Building Products Ltd.
■
■
■
■
■
■
■
■
■
■
Karnataka Tamil Nadu Kerala Maharashtra Telangana Andhra Pradesh Madhya Pradesh Gujarat Goa Other States
South India
West India
Central India
1 6 5 3
,
4 9 9 2
,
FY21 FY22 FY23
9M FY23
9M FY24
l
........................................................................................................ :
0 7 3
l
FY21 FY22 FY23
•.......................
I
2 6 3
8 9
6 9
9M FY23
9M FY24
FY21 FY22 FY23
l
9M FY23
9M FY24 ..
❑ Our cluster-based distribution network has helped deepen our penetration in Southern states, while also growing in Maharashtra and Madhya Pradesh ❑ Focus towards harnessing distribution network to market newer products and categories, to enable higher revenues from our existing fulfillment centers ❑ Continue to build strong presence in South, while expanding to other regions in line with long-term vision to become a pan India building materials company
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"p
8
…with improvement in both retail and non-retail segment
Shanlkoro
Building Products Ltd.
Revenue (Rs. Crore)
EBITDA (Rs. Crore)
Retail Parameters
9M FY24
9M FY23
Change YoY
■
Steel
■
Non-Steel
1,561
1,847
9MFY23
9MFY24
Revenue (Rs. Crore)
■
Steel
■
Non-Steel
1,259
1,605
l i a t e R
l i a t e R - n o N
110
90
70
50
30
10
-10
35
30
25
20
15
10
5
0
87
100
9MFY23
9MFY24
EBITDA (Rs. Crore)
14
29
9MFY23
9MFY24
9MFY23
9MFY24
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
Retail Stores (No.)
91
91
-
Retail Area (lakh sq ft)
4.64
4.58
1%
No. of Transactions
3,70,803
3,56,406
4%
Average Ticket Size (Rs.)
49,817
43,794
14%
Retail Revenue (Rs. Crore)
1,847
1,561
18%
Retail EBITDA (Rs. Crore)
100
87
15%
Average Rental Cost (per sq ft per month)
16.9
16.2
4%
Retail Business: Retail continues to perform, with a focus to leverage the strength of the brands we deal with and our wide product portfolio to create a customer pull at all our stores. Company has achieved Same-store sales growth of 15% during 9M FY24
Non-retail Business: Channel and Enterprise business continues to be strategic for growth. This segment caters to the requirements of large end users, contractors and OEMs, primarily for their steel-related products presently
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
9
On-ground execution driven by a strong network of fulfillment centers
Shanlkora
Building Products Ltd.
125
Fulfillment Centers 13.2 lakh sq ft
>>
13
Processing Units 3.6 lakh sq ft
+
91
Retail Stores 4.6 lakh sq ft
+
21
Warehouses 5.0 lakh sq ft
Processing Units
Vishal Precision Steel Tubes & Strips Private Limited
Centurywells Roofing India Private Limited
Taurus Value Steel & Pipes Private Limited
• Processing of tube and
• Primarily engaged in
cold rolled strip
• Two processing facilities located in Bengaluru
colour coated roofing products.
• Ten processing facilities located in Bengaluru, Chennai, Coimbatore, etc.
• Tube processing facility located at Hyderabad.
Installed Capacity ~2.1 lakh MT
Capacity Utilisation ~35-40%
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10
Omnichannel presence becoming a key enabler for future growth
Shgnlkorg
g Products Ltd
Online Discovery of Wide Range of Products Anytime, Anywhere
>>>
Offline Push through our Fulfillment Centers
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Build within Budget
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With launch of “BuildPro” app (Google Play & App Store) and website:
• Shankara has evolved from a traditional marketplace to online
marketplace
• Has enabled an online discovery platform for all building materials,
leading to an increased footfalls at our fulfillment centers
Focus on technology & digital marketing
• • Move towards greater online presence & focus on tech driven customer
acquisition and retention
• •
Technology will be a key enabler for Pan India expansion in the coming years Evaluating opportunities for strategic collaborations in the digital landscape to enhance our existing omni-channel strategy
11
Consolidated Profit & Loss Statement
Particulars (Rs Crore)
Q3 FY24
Q3 FY23
1,177
2
1,108
14
17
40
1,080
4
1,024
12
15
33
Change YoY
9%
(50%)
8%
13%
12%
23%
3.4%
3.0%
39 bps
4
8
28
7
21
1.8%
9.1
4
6
23
6
16
1.5%
7.2
(1%)
33%
24%
8%
31%
31 bps
27%
Shanlkoro
Building Products Ltd.
9M FY24
9M FY23
Change YoY
3,452
3
3,254
41
49
111
3.2%
12
23
76
19
57
1.6%
24.6
2,820
7
2,659
36
43
89
3.1%
12
18
58
15
44
1.6%
19.2
22%
(59%)
22%
14%
16%
25%
7 bps
(2%)
27%
30%
31%
30%
9 bps
28%
12
Revenue from Operations
Other Income
Cost of Materials Consumed
Employee Expenses
Other Expenses
EBITDA
EBITDA Margin %
Depreciation
Finance Cost
Profit before Tax
Tax
Profit after Tax
PAT Margin %
Basic EPS (in Rs.)
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
Demerger Update
Creating two distinct focused entities
B~ilasro
Building Materials and morep
Shonk«oro
Bui Id ing Products Ltd.
Demerger to create two separate entities, focused on building materials marketplace and manufacturing respectively
Shanlkora
Building Products Ltd.
~~ilaioro Building Materials and more P
Shanlkara
Building Products Ltd.
Building Materials Marketplace (with its omnichannel presence) will be separated to create Shankara BuildPro Limited
Post segregation, Shankara Building Products Limited will be a focused listed entity for traditional Manufacturing business
I
Building Materials Marketplace
I
I
Manufacturing
I
~Rs. 2,775 Cr
9M Revenue
~3.3-3.5%
~1.8-2.0%
~27-28%
EBITDA Margin (%)
PAT Margin (%)
RoCE
~Rs. 677 Cr
~1.7-2.0%
~0.6-0.8%
~4-5%
Approximate numbers representing indicative split of consolidated financials into Building Materials marketplace and Manufacturing business
14
Proforma Balance Sheet Split (As on September 30, 2023)
Shanlkoro
Building Products Ltd.
Current
Overall
673
103
785
269
463
Total Equity
Net Debt (External)
Capital Employed
Net Block
Working Capital
Post-demerger*
Building Materials Marketplace
Manufacturing
281
98
375
34
383
392
5
409
235
81
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
Figures in Rs. Crore, Approximate numbers representing indicative split of consolidated financials as on September 30, 2023
15
Implementation Timeline
Shanlkoro
Building Products Ltd.
Estimated Timeline for the demerger: 10-14 months from Board Approval date
Dec-23
Q4 FY2024
FY2025
Board Approval
Filing of Application with Stock Exchanges
NOC from SEBI
Filing with NCLT
Shareholders/ Creditors meeting
NCLT Approval
RoC Intimation
Listing & trading
Appointed Date for the scheme implementation is April 1, 2024, subject to necessary approvals
B~ilasro Bu,M:lmg Ma1<�1al, �nd """"P
16
Thank You
Shankara Building Products Limited
CIN: L26922KA1995PLC018990
Mr. Alex Varghese, Chief Financial Officer
ir@shankarabuildpro.com
www.shankarabuildpro.com
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Bui Id in g Products Ltd.