standalone financial results, results press release, result presentation for march 31, 2016 [result]

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Page 1: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]
Page 2: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]
Page 3: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]
Page 4: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Page 1

Press Release

For Immediate release

PEBS Pennar FY16 Gross Revenues at Rs. 508.63 Crores

FY16 EBITDA at Rs. 65.04 Crores, up 39% YoY

EBITDA Margin expands to 14.55%

FY16 PAT at Rs. 30.16 Crores; up 38% YoY

Hyderabad, May 16, 2016: Pennar Engineering Building Systems (PEBS Pennar), one

of India’s leading companies in design, manufacture, supply and installation of cost -

effective pre-engineered buildings and building components, today announced its

earnings for the quarter- and year-ended March 31, 2016.

Q4FY16 Financial Highlights

Gross Revenues at Rs. 155.11 Crores.

Net Revenues at Rs. 137.94 Crores.

EBITDA at Rs. 27.7 Crores, up 31% YoY.

EBITDA Margin expands to 20.08%.

PAT at Rs. 14.45 Crores, up 23% YoY.

FY16 Financial Highlights

Gross Revenues at Rs. 508.63 Crores.

Net Revenues at Rs. 446.92 Crores.

EBITDA at Rs. 65.04 Crores, up 39% YoY.

EBITDA Margin expands to 14.55%

PAT at Rs. 30.16 Crores, up 38% YoY.

Business Highlights – Q4FY16

Order book stands at Rs. 424 crores

Large New Orders –

– Received major orders from, L&T Construction, TVS Infrastructure,

Gamesa, My Home, Hetero Drugs, Annora Pharma, Himedia

Laboratories, SRR Projects, RKV Developers, Indus Projects, Ashapura

Group, Avenue Supermarts etc.

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Page 5: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Page 2

Engineering Services -

– Received new orders from Tekla Structures and Dollar General.

– Presently increasing manpower at Vishakhapatnam office to provide

engineering services to our US-based clients.

– Current manpower strength for NCI jobs is 84 at both locations.

Third - party Baroda factory taken for production on a Job-work basis model.

Orders in and around Madhya Pradesh, Gujarat and North are being

manufactured at this facility.

Board approves term sheet signing with Engineering Services firm.

ABOUT PEBS PENNAR

PEBS Pennar (PENPEBS) is one of the leading custom designed building systems

solutions providers in India. Its products and services include pre-engineered buildings,

design and engineering services, solar module mounting structures, cold form buildings

and structural steel products, which are widely used for various manufacturing,

warehousing, industrial, infrastructure, and custom-designed commercial buildings.

Pre-engineered buildings offer enhanced speed in delivery and erection, flexibility in

expansion, and are capable of withstanding weather pattern changes. It has a technical

know-how licensing arrangement with NCI Group, Inc., an established player in the

United States’ metals buildings market, for supply of standing seam roofing panel

system in India under the brand name ‘Double Lok®. PENPEBS is one of the few

companies that offer leak-proof roofing systems in India. For more information, please

visit www.pebspennar.com.

For further enquiries, please contact: PEBS PENNAR – [email protected]

Disclaimer:

This release contains “forward looking statements” including, but without limitation, statements relating to

the implementation of strategic initiatives, and other statements relating to Pennar Engineered Building

Systems Limited’s future business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations concerning the

development of our business, a number of risks, uncertainties and other unknown factors could cause actual

developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory

trends, movements in currency exchange and interest rates, competitive pressures, technological

developments, changes in the financial conditions of third parties dealing with us, legislative developments,

and other key factors that could affect our business and financial performance.

Pennar Engineered Building Systems Limited undertakes no obligation to periodically revise any forward

looking statements to reflect future / likely events or circumstances.

Page 6: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Page 3

Q4FY16 EARNINGS CONFERENCE CALL DETAILS:

Primary Number: +91 22 3938 1019

Secondary Number: +91 22 6746 5819

International Toll Free Numbers:

USA : 1 866 746 2133

UK : 0808 1011 573

Singapore : 800 101 2045

Hong Kong : 800 964 448

Date: Tuesday, 17 May 2016

Time: 10:00 AM IST

Page 7: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]
Page 8: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Pennar Engineered Building Systems Limited

Investor Presentation Q4FY16/ FY16

Page 9: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Disclaimer

2

This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Pennar Engineered Building Systems Limited’s future business developments and economic performance.

While these forward looking statements indicate our assessment and future expectations concerning the development of our

business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ

materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends,

movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the

financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our

business and financial performance.

Pennar Engineered Building Systems Limited undertakes no obligation to periodically revise any forward looking statements

to reflect future / likely events or circumstances.

Page 10: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

3

Q4FY16 Results

Ultratech Cements Ltd. 99 meter clear span building

Page 11: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Financial Performance Q4FY16

4

212.0

146.3

277.0

14.90%

12.56%

20.08%

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

Q4FY15 Q3FY16 Q4FY16

EBITDA (Rs in Mn) EBITDA Margin (%)

1588.8

1385.9 1551.1

1422.6

1164.9

1379.4 117.6

75.2

144.5

0

25

50

75

100

125

150

175

0

500

1,000

1,500

2,000

Q4FY15 Q3FY16 Q4FY16

Gross Revenue (Rs in Mn) Net Revenue (Rs in Mn) PAT (Rs in Mn)

Page 12: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Highlights of Q4FY16 performance (1/3)

Margin expansion continues its trend.

Order book stands at Rs. 4240 Million

Large New Orders –

– Received major orders from, L&T Construction, TVS Infrastructure, Gamesa, My Home, Hetero Drugs, Annora

Pharma, Himedia Laboratories, SRR Projects, RKV Developers, Indus Projects, Ashapura Group, Avenue

Supermarts etc.

Prospective orders worth 55,195 MT in the pipeline.

5

Page 13: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Highlights of Q4FY16 performance (2/3)

Engineering Services -

– Received new jobs on Tekla Structures and Dollar General.

– Presently, increasing manpower at Vishakhapatnam office to provide engineering services to our US-based

clients.

– Current manpower strength for NCI jobs is 84 at both locations.

6

Page 14: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Highlights of Q4FY16 performance (3/3)

Other Highlights -

Third-party Baroda factory taken for production (On Job-work basis model).

– Production at this new facility has started in the month of May.

– Orders in and around Madhya Pradesh, Gujarat and North are being manufactured at this facility.

– Evaluating various options for setting up permanent facility

Board approves term sheet signing with Engineering Services firm.

7

Page 15: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

8

FY16 Results Kannur International Airport

Page 16: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Financial Performance FY16

9

FY16 revenues flat on soft and volatile raw material prices

467.1

650.4

10.49%

14.55%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

700

FY15 FY16

EBITDA (Rs in Mn) EBITDA Margin (%)

5022.7 5086.3

4451.5 4469.2

219.1

301.6

0

100

200

300

400

500

0

1,000

2,000

3,000

4,000

5,000

6,000

FY15 FY16

Gross Revenue (Rs in Mn) Net Revenue (Rs in Mn) PAT (Rs in Mn)

Page 17: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Recent Projects (1/2)

10

UltraTech – Pipe Structure ITC – Green Project, 12 Floors

Kannur International Airport Kannur International Airport ITC – Green Project, 12 Floors

Page 18: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Recent Projects (2/2)

11

Module Mounting Structure

Phoenix Residential Building Decathlon MRF - Factory Warehouse

Saraf Agencies

Page 19: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

12

Company Overview

IOT Infra Dahej, Gujarat

Page 20: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Pennar Group Overview

13

Pennar Industries Ltd.

Steel Products & Profiles

Precision Tubes

Industrial Components

Systems & projects

Pennar Engineered Building Systems Ltd.

Pre-Engineered Buildings

Custom Designed Steel Structures

Engineering Services

Pennar Group of Companies

Pennar Enviro Ltd.

Water Treatment Solutions

Water Treatment Chemicals

Fuel Additives

Page 21: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Pennar Engineered Building Systems Limited (PENPEBS) - Overview

One of the leading custom designed building systems solutions provider in India

Industry size of the Indian PEB was ~INR 55,000 million with a 13% CAGR over 3 years

Pennar’s market share was ~8% (1) in a fragmented industry in FY14

Manufacturing facility equipped with high-precision machines to fabricate and supply quality-replete steel buildings

Production capacity of 90,000 MT p.a.

One of the few companies that offers leak-proof roofing systems in India

Technical know-how licensing agreement with NCI Group Inc. USA

156 ongoing projects across 20 states, aggregating to order book of INR 3.6 Bn(2)

Key customers include Ultratech Cement, Volvo India and Larsen & Toubro with repeat orders from 17 customers as on June 30, 2015

14 (1) Source: CARE Research, Report mandated by the company (2) As on June 30, 2015

Indian PEB market was at INR 55,000 million in FY14 and is expected to be at INR 91,680 million by FY17(1)

Page 22: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Key Events and Milestones

Commissioning of 0.5 MW solar power generation facility

Investment by Zephyr Peacock India Fund

Manufacturing capacity expanded to 90,000MT

Entered into an agreement for commencement of engineering services

Manufacturing capacity expanded to 60,000 MT

Achieved Rs 1,000 million from Gross Revenue from Operations

Commenced commercial production with a capacity of 30,000 MT

Received Gold Rati g fro the I dia Gree Buildi g Cou cil for achievi g the gree building standards as per IGBC Green Factory Building Rating Technology

Entered into Double Lok® technical know-how agreement with NCI Group, Inc.

Incorporation and commencement of business of the Company

Crossed Rs. 4,500 million Gross Revenue from Operations 2015

2014

2013

2011

2010

2008

2009

15

Crossed Rs. 5,000 million Gross Revenue from Operations 2016

Page 23: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

PENPEBS - One of the Leading PEBS provider in India

16

Diversified Products and Solutions

Established Track Record for Timely Execution

Experienced Management & Strong Parentage

Robust Financial Performance

Strong Engineering Design Capabilities and Technological Tie-Ups

Page 24: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Diversified Products and Solutions

17

Pre-Engineered Buildings

• Custom designed and fabricated, available in large multi-dimensional spans

• Offer enhanced speed, flexibility and capable of withstanding weather changes

• Top PEBs built:

– Coal Storage Shed at Visakhapatnam;

– Factory Building at Khopoli, Odisha

–Warehouse Buildings at Dahej, Bangalore

Structural & High Rise Steel Buildings

• Comprising of steel and cement plants, multi-level car-parks, towers and high rise buildings

• Existing in-house capabilities for design and manufacture

• Installed two buildings:

– G+7 – Multi Storied Building

– G+10 – Multi Storied Building at Hyderabad

Design & Engineering Services

• Developing integrated and comprehensive engineering design solutions

• In-house engineering and design team comprising of 147 technical personnel

• Design services out-sourcing agreement with a US based entity

Ability to offer diversified products and solutions makes Pennar a preferred partner by key customers

Solar Module Mounting Structures

• Design, supply and erect structures used for mounting solar modules

• Application in solar photo-voltaic plants, solar canal tops, solar roof tops, solar thermal plants and solar car parks

Page 25: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

PENPEBS Components

18

PEBS Components & Solutions

Primaries (Main Frame)

H sections

I beams

Secondaries

Purlins

Fascia channels

Eave Struts

Side runners

Claddings

Double-Lok ® roofing

Roof sheeting

Wall systems

Accessories

Fasteners

Walk doors

Louvers

Windows

Sky lights

Ridge ventilators

Roof & jack curbs

Niche Solutions

Green Buildings

Low Cost Housing

Building Systems

Double-Lok® Standing Seam Roofing with 10 years leak

proof warranty by PEBS Pennar

Purlins/Girts/Eave struts are pre-galvanized with 275 gsm.

Primary structures shot-blasted to Swedish standard SA

2.5 with epoxy primer

Continuous supervision at site during installation

Standard Trapezoidal Roof Sheeting

Purlins/Girts/Eave struts are Pre-galvanized with 120 gsm.

Primary structures with manual cleaning with alkyd primer

Periodic supervision at site during installation

Page 26: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Strong Engineering & Design Capabilities and Technological Tie-Ups

Award winning and experienced in-house design and engineering team of 176 technical personnel as of

March 31, 2016

Technical arrangement with NCI Group Inc, USA for Double Lok® Standing Seam Roofing System

– One of the few companies to offer leak-proof roofing systems in India

Out-sourcing agreement with USA based company which ensures:

– Exposure to the latest know-how, design and computer aided technologies

Licensed some of the latest and advanced software in CAD technology and manufacturing

Equipped to handle complex software to design complex custom designed structures

Provides design and engineering services for projects executed by others as well

19

Best pre-engineered building for

Ultratech Cement Factory, Kotputli, Rajasthan – CIDC

Vishwakarma Award, 2015

Certificate of commendation for a cold storage shed

at Kotputli, Rajasthan- INSDAG

National Award, 2014

Infrastructure company of the

year - Construction Week India Awards,

2013 (Runner up)

Page 27: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Established Track Record for Timely Execution

Timely execution of more than 400 projects in 5 years across various sectors

Strong supply chain relationships, network of sales offices and building

contracts and integrated operations allows to consistently deliver projects in

an efficient and timely manner

Consolidation of order and project management departments into one

ensures operational efficiencies

Established relationships with materials suppliers like JSW Steel Ltd., Tata

Steel Ltd., Asian Paints and various vendors further strengthens the business

operations

Network of approved building contractors across India allows the Company to

provide end-to-end solutions

Repeat orders from 17 customers, including Ultratech Cements Ltd., Volvo

India Private Ltd., Larson & Toubro Ltd.

20

99 meter clear span building

Largest building executed by a

PEBS player in India

Solar Mounting Structures

Multi-storied Building Processing Unit

Page 28: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Robust Financial Performance

21

Net Revenues & PAT EBITDA & Margin

292

361 370

467

650

11.86% 12.57%

10.16% 10.49%

14.55%

0.00%

5.00%

10.00%

15.00%

20.00%

0

100

200

300

400

500

600

700

FY12 FY13 FY14 FY15 FY16

EBITDA (in Rs. Mn) EBITDA Margin (%)

2,489 2,910

3,697

4,452

4,469

106

148

182

219

302

0

50

100

150

200

250

300

350

0

1,000

2,000

3,000

4,000

5,000

FY12 FY13 FY14 FY15 FY16

Total Net Revenue (in Rs. Mn) PAT (in Rs. Mn)

Page 29: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Shareholding Pattern

22

Shareholding Pattern as on 31st March 2016

Promoters (63%)

Mutual Funds (18%)

FPI (3%)

Others (16%)

Page 30: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

23

PEBS Industry

Volvo India

Page 31: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Typical PEB system

24

The pre-engineered steel building system offers advantages to the customer as a more feasible, practical and efficient alternative

to conventional buildings. The system has earned acceptance across the world and is gaining rapid ground in India as well.

Some of the distinct advantages

include:

Durable - Weather resistant,

earthquake resistant

Faster - Reduced construction

time thus ensuring enhanced

speed in delivery and erection

Flexible - Easy to expand

Value - Low project cost,

maintenance costs

Aesthetics - Gives the engineer

enough flexibility to create

unique structures

Lower Costs – Lower

maintenance costs and faster

construction time has direct

impact on revenue

Page 32: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

PEB offers many advantages over conventional construction

25

Industry Growth

PEB industry growth expected to be substantial – driven by construction growth and higher PEBS penetration. Industrial (manufacturing, warehouses) segment to remain domination while infrastructure and retail segments to grow rapidly

Design Fast design turnaround. Modular designs – basic designs are re-used as far as possible

Fabrication Fabrication is off-site in a plant – parts are assembled (bolted) on-site

Project Execution Typically turnkey projects – design, fabrication and execution is handled by PEBS players

Cost 5-20% lower upfront cost than structural steel. For complex warehouses PEB becomes more cost competitive

Market Segments/ Application

PEB preferred for light weight structures mostly in industrial segments and low-rise commercial and infrastructure. Rising demand for complex warehouses ((with specific requirements around height, span, positioning of columns, insulation, ventilation, etc)

Timeline PEBS has advantage of 40-50% shorter timelines compared to RCC

Page 33: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

PEBS Sector – Potential Opportunities

26

Industrial

Expected Investment of INR 2.5 trillion to create a potential market of INR 2,50,000 million*

– Cement - 479 million tonnes

– Automotive Industry – INR 50,000 million

– Engineering and Capital Goods - Significant demand for manufacturing plants and sheds for PEB

Real Estate

Government’s scheme of affordable housing is expected to create potential demand of INR 180,000 million

Commercial /High Rises Buildings

– Availability of commercial space is expected to grow from 650 million sq.mt. in 2012 to 1,900 million sq.mt. in 2030

– Creates a market potential of INR 55,000 million*

Infrastructure

Investments expected to the tune of INR 65 trillion in FY 2012-17

– Civil Aviation – Investment of INR 72,000 million

– Metro Rail – Investment of INR 13,00,000 million

– Power Plants – Investment of USD 250 Bn

– Ports – Investment of USD 49.75 Bn

Commercial

Application across warehousing & FMCG retail shops

Agri-warehousing

– 10% of total warehousing in India - Strong potential demand for PEB

– Expected demand of ~INR 20,000 million of silos every year

Warehousing

– Large clear-span storage sheds can be catered by PEB construction effectively

– Requirement in FY14 is 919 million sq.ft., expected to grow at 9%*

PEB penetration stands low at ~20% presenting a Strong Opportunity

* In the next 5 years. Source: CARE Research

Page 34: Standalone Financial Results, Results Press Release, Result Presentation for March 31, 2016 [Result]

Investor Contacts

27

Contact Details:

Pennar Engineered Building Systems Ltd.

Floor: 9, DHFLVC Silicon Towers

Kondapur, Hyderabad - 500 084, Telangana

CIN : L45400AP2008PLC057182

Investor Relations - [email protected]