#PAT #GROWTH 5 Year CAGR 17.3%
In FY24, the net profit was โน183 cr and grew by 50% YoY. This increase can be majorly attributed to rise in operating profit. There was a legal dispute involving the Company, Ruby Mills Limited, and Mindset Estates Private Limited (Developer), which now stands resolved and the Corporate Office at The Ruby, Dadar, Mumbai, is now officially registered under the company's name. For FY24, an exceptional item reflects a net gain of โน18 cr from this settlement. In Q1 FY25, net profit was โน25 cr and increased by 26% YoY.
In FY24, the net profit was โน183 cr and grew by 50% YoY. This increase can be majorly attributed to rise in operating profit. There was a legal dispute involving the Company, Ruby Mills Limited, and Mindset Estates Private Limited (Developer), which now stands resolved and the Corporate Office at The Ruby, Dadar, Mumbai, is now officially registered under the company's name. For FY24, an exceptional item reflects a net gain of โน18 cr from this settlement. In Q1 FY25, net profit was โน25 cr and increased by 26% YoY.
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#EBITDA #MARGIN
In FY24, the EBITDA margin was 12% and expanded by 274 bps led by gross margin expansion of ~640 bps mostly on account of decline in raw material cost. Raw material cost accounts for ~68% of total expenses. The companyโs key raw materials are polyvinyl chloride (PVC), high-density polyethylene (HDPE), and polypropylene (PP) which are affected by a change in crude oil prices. The company sources of its raw material domestically as well as from international market. In Q1 FY25, the EBITDA margin was 9.6% v/s 8.2% in Q1 FY24. The agriculture-heavy product mix and rising branding costs limited further margin expansion.
In FY24, the EBITDA margin was 12% and expanded by 274 bps led by gross margin expansion of ~640 bps mostly on account of decline in raw material cost. Raw material cost accounts for ~68% of total expenses. The companyโs key raw materials are polyvinyl chloride (PVC), high-density polyethylene (HDPE), and polypropylene (PP) which are affected by a change in crude oil prices. The company sources of its raw material domestically as well as from international market. In Q1 FY25, the EBITDA margin was 9.6% v/s 8.2% in Q1 FY24. The agriculture-heavy product mix and rising branding costs limited further margin expansion.
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#EBITDA #GROWTH 5 Year CAGR: 10.8%
In FY24, the EBITDA increased by 22.8% YoY to โน307 cr. Advertising expenses was โน54 cr in FY24 v/s โน41 cr in FY23. The rise was on account of decline in cost of materials consumed. The net inventory loss for the year was ~โน15 cr (inventory loss of โน10 cr in Q1 FY24, gain of โน5 cr, loss of ~10 cr in Q3 and no loss in Q4 FY24). PVS prices remained in the range of โน65/kg- โน80/kg โ during the start of the quarter) and CPVC prices remained on a declining trend for the year. It saw an increase in other expenses and employee benefits expense on account of additional hiring & advertising spends towards bathware. In Q1 FY25, the EBITDA was โน58 cr and grew by 29% YoY. The company highlighted low channel inventory driven by volatile PVC prices during June-July 2024. With PVC prices now softening and likely to stabilize, end-user demand is expected to remain strong and channel inventory to normalize.
In FY24, the EBITDA increased by 22.8% YoY to โน307 cr. Advertising expenses was โน54 cr in FY24 v/s โน41 cr in FY23. The rise was on account of decline in cost of materials consumed. The net inventory loss for the year was ~โน15 cr (inventory loss of โน10 cr in Q1 FY24, gain of โน5 cr, loss of ~10 cr in Q3 and no loss in Q4 FY24). PVS prices remained in the range of โน65/kg- โน80/kg โ during the start of the quarter) and CPVC prices remained on a declining trend for the year. It saw an increase in other expenses and employee benefits expense on account of additional hiring & advertising spends towards bathware. In Q1 FY25, the EBITDA was โน58 cr and grew by 29% YoY. The company highlighted low channel inventory driven by volatile PVC prices during June-July 2024. With PVC prices now softening and likely to stabilize, end-user demand is expected to remain strong and channel inventory to normalize.
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#MANAGEMENT #introduction
Parag Chheda, aged 51 years, is a Joint Managing Director (JMD) of the company. He has been associated with the Company since 27th April 1996 as a Director. He holds an associate degree in business administration from Oakland Community College. He has over 25 years of experience in the piping industry. Vipul Chheda, aged 47 years, is an Executive Director of the company. He has been associated with the company since 11th March 1997 as a Director. He has over 25 years of experience in the piping industry. W.e.f 7th Nov 2023, Anand Gupta has been appointed as Chief Financial Officer of the company. He is a Chartered Accountant with an experience of more than 20 years in Finance, Commercial planning and operations. He was associated with ACC Ltd for 14 years in different roles and responsibilities.
Parag Chheda, aged 51 years, is a Joint Managing Director (JMD) of the company. He has been associated with the Company since 27th April 1996 as a Director. He holds an associate degree in business administration from Oakland Community College. He has over 25 years of experience in the piping industry. Vipul Chheda, aged 47 years, is an Executive Director of the company. He has been associated with the company since 11th March 1997 as a Director. He has over 25 years of experience in the piping industry. W.e.f 7th Nov 2023, Anand Gupta has been appointed as Chief Financial Officer of the company. He is a Chartered Accountant with an experience of more than 20 years in Finance, Commercial planning and operations. He was associated with ACC Ltd for 14 years in different roles and responsibilities.
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#COMPANY #POTENTIAL
The Indian plastic piping industry is worth ~โน47,000 cr, wherein the organized players have about 67% of the market. Polyvinyl Chloride (PVC) is the third largest selling plastic commodity after polyethylene & polypropylene. It is beneficial over other materials, owing to its chemical resistance, durability, low cost, recyclability, and others; thus, it can replace wood, metal, concrete, and clay in different applications. โข In terms of end use, plumbing and sewerage pipes constitute ~55% of the industryโs total volume, followed by agriculture pipes (35%) and infrastructure & industrial pipes (10%). The infrastructure & industrial pipe segments are expected to witness the highest growth due to increased Government expenditure on the Jal Jeevan scheme which aims to provide rural drinking water connections and urban infrastructure. Plastic pipes still have low penetration in water supply management, an area currently dominated by expensive cement and steel pipes. advancing infrastructure development. โข Plastic pipe industry is expected to report a volume CAGR of 10%-12% between FY23 to FY28. This projection considers favorable resin prices, potential revival in the urban real estate sector, and the Governmentโs emphasis on boosting farm income and โข The domestic bathware market is estimated at โน18,000 cr in FY23 (sanitaryware: โน6,000 cr; faucets: โน12,000 cr) and has posted a 7.9% CAGR over FY15-FY23. The bath fittings market is riding the wave of urbanization, consumer awareness, and real estate growth. As more households embrace modern amenities, the demand for stylish and functional bathroom fittings continue to rise.
The Indian plastic piping industry is worth ~โน47,000 cr, wherein the organized players have about 67% of the market. Polyvinyl Chloride (PVC) is the third largest selling plastic commodity after polyethylene & polypropylene. It is beneficial over other materials, owing to its chemical resistance, durability, low cost, recyclability, and others; thus, it can replace wood, metal, concrete, and clay in different applications. โข In terms of end use, plumbing and sewerage pipes constitute ~55% of the industryโs total volume, followed by agriculture pipes (35%) and infrastructure & industrial pipes (10%). The infrastructure & industrial pipe segments are expected to witness the highest growth due to increased Government expenditure on the Jal Jeevan scheme which aims to provide rural drinking water connections and urban infrastructure. Plastic pipes still have low penetration in water supply management, an area currently dominated by expensive cement and steel pipes. advancing infrastructure development. โข Plastic pipe industry is expected to report a volume CAGR of 10%-12% between FY23 to FY28. This projection considers favorable resin prices, potential revival in the urban real estate sector, and the Governmentโs emphasis on boosting farm income and โข The domestic bathware market is estimated at โน18,000 cr in FY23 (sanitaryware: โน6,000 cr; faucets: โน12,000 cr) and has posted a 7.9% CAGR over FY15-FY23. The bath fittings market is riding the wave of urbanization, consumer awareness, and real estate growth. As more households embrace modern amenities, the demand for stylish and functional bathroom fittings continue to rise.
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#Company #Outlook
โข It signed an asset purchase agreement with Klaus Waren Fixtures Private Limited, for the acquisition and assignment of identified assets for โน55 cr (in two tranches) for the brand as well as the manufacturing facility in Bhuj. Another โน7-โน10 cr of capex would be required for maintenance and de-bottlenecking and with that it shall be able to unlock production capacity of โน100-โน120 cr. โข The Bihar facility will be an integrated hub for the company, addressing the burgeoning demand in East India. Construction of the factory structure and utilities is currently in progress. The proposed capex for this facility has been increased to โน220 cr, with the capacity now expanded to 48,000 MTPA (shall be complete by Q4 FY25). The Bihar facility in Begusarai will get commenced in January 2025. The facility will be commencing in the phased manner and it will take 6 months to operate in full utilization. โข The agile execution of the Aquel by Prince brand was showcased at Plumbex India 2024. The company continues to penetrate key tier-2 and tier-3 markets in West and Northern India, with plans to expand into East and South markets in H1 FY25. The integration of Aquelโs distribution network and the appointment of sales staff are already in progress, pending regulatory approval. Products from Aquel by the company received enthusiastic feedback at the event. โข The proposed capacity for water tank is estimated at 60 lakh litres per month at Bihar facility which shall go onstream in Q4 FY25. โข The company has launched a new product named Greenfit PPR which has wide applications in hotels, commercial spaces, malls, hospitals and industry. โข The company has guided 15% volume growth with the margin to be in the range of 12%-13% for FY25. โข There are currently no plans for O-PVC (Oriented polyvinyl chloride pipes), with the focus shifting towards distribution-driven products and those catering to private projects. OPVC pipes represent a new generation of piping systems designed for highCASE STUDY pressure water conveyance. They are generally of superior quality compared to other piping solutions.
โข It signed an asset purchase agreement with Klaus Waren Fixtures Private Limited, for the acquisition and assignment of identified assets for โน55 cr (in two tranches) for the brand as well as the manufacturing facility in Bhuj. Another โน7-โน10 cr of capex would be required for maintenance and de-bottlenecking and with that it shall be able to unlock production capacity of โน100-โน120 cr. โข The Bihar facility will be an integrated hub for the company, addressing the burgeoning demand in East India. Construction of the factory structure and utilities is currently in progress. The proposed capex for this facility has been increased to โน220 cr, with the capacity now expanded to 48,000 MTPA (shall be complete by Q4 FY25). The Bihar facility in Begusarai will get commenced in January 2025. The facility will be commencing in the phased manner and it will take 6 months to operate in full utilization. โข The agile execution of the Aquel by Prince brand was showcased at Plumbex India 2024. The company continues to penetrate key tier-2 and tier-3 markets in West and Northern India, with plans to expand into East and South markets in H1 FY25. The integration of Aquelโs distribution network and the appointment of sales staff are already in progress, pending regulatory approval. Products from Aquel by the company received enthusiastic feedback at the event. โข The proposed capacity for water tank is estimated at 60 lakh litres per month at Bihar facility which shall go onstream in Q4 FY25. โข The company has launched a new product named Greenfit PPR which has wide applications in hotels, commercial spaces, malls, hospitals and industry. โข The company has guided 15% volume growth with the margin to be in the range of 12%-13% for FY25. โข There are currently no plans for O-PVC (Oriented polyvinyl chloride pipes), with the focus shifting towards distribution-driven products and those catering to private projects. OPVC pipes represent a new generation of piping systems designed for highCASE STUDY pressure water conveyance. They are generally of superior quality compared to other piping solutions.
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PRINCE PIPES & FITTINGS LIMITED 150-270
Expected level 320
Support 100
Expected level 320
Support 100
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Balrampur Chini Mills 380-445 Expected level 550 Support 350
570๐Long term level hit
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Vardhman Textiles VTL 350-400 Expected level 500 Support 310
635๐Long term level hit
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Marico Limited company details report
Marico Limited is one of Indiaโs leading consumer products companies in the domestic hair and wellness market. It is present across varied categories of hair care, skin care, edible oils, health foods, and male grooming, with a vast portfolio of brands such as Parachute, Saffola, Hair & Care, Nihar, Livon, Kaya Youth, and Coco Soul. Currently, it has presence in 25 countries across emerging markets of Asia & Africa, including Middle East, Bangladesh, Vietnam, Egypt and South Africa, constituting ~25% of the total revenue. The company has a retail reach of ~5.8 million outlets and direct reach of ~1 million outlets in the domestic market. The company has 8 factories that are strategically located in India. Marico is a leading player in the domestic hair and wellness market with a leadership position in categories such as coconut oils, value-added hair oils, and Parachute Rigids within coconut oils. The company has a three-pronged strategy of driving growth through key categories, innovations/entrance into the niche category, and scaling up its presence in international geographies. In recent times, the company has entered niche categories such as male grooming, premium hair nourishment and healthy foods.
Marico Limited is one of Indiaโs leading consumer products companies in the domestic hair and wellness market. It is present across varied categories of hair care, skin care, edible oils, health foods, and male grooming, with a vast portfolio of brands such as Parachute, Saffola, Hair & Care, Nihar, Livon, Kaya Youth, and Coco Soul. Currently, it has presence in 25 countries across emerging markets of Asia & Africa, including Middle East, Bangladesh, Vietnam, Egypt and South Africa, constituting ~25% of the total revenue. The company has a retail reach of ~5.8 million outlets and direct reach of ~1 million outlets in the domestic market. The company has 8 factories that are strategically located in India. Marico is a leading player in the domestic hair and wellness market with a leadership position in categories such as coconut oils, value-added hair oils, and Parachute Rigids within coconut oils. The company has a three-pronged strategy of driving growth through key categories, innovations/entrance into the niche category, and scaling up its presence in international geographies. In recent times, the company has entered niche categories such as male grooming, premium hair nourishment and healthy foods.
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Coconut Oils - Parachute Coconut Oil continues to be the dominant market leader in the branded coconut oil market, while ~30% of the coconut oil market is still unbranded, presenting an attractive opportunity to capture a significant share of the transitioning market, sustaining/improving its growth trajectory. Saffola Franchise - The product range includes Saffola oils, Saffola Oats, Saffola Mayonnaise, Saffola Peanut Butter, Saffola Soya chunks and many more in the health & nutrition category. VAHO- Within the category, mid & premium segments continued to fare better than the mass segment, Nihar Shanti Amla had a sluggish year, Parachute Advanced Jasmine continued to gain market share, Hair & Care continued to drive penetration of the brand, Parachute Advansed Aloe Vera witnessed penetration gains in key markets. Premium Personal Care & Digital First Portfolio - Beardo sustained its impressive growth trajectory. Just herbs performed robustly in FY24, coupled with expansion in its wide-ranging portfolio through the launch of a range of natural make-up and pure fragrances, PureSense offers skincare, mood-lifting fragrances and bath products and Coco Soul has created 100% ayurvedic and vegan products, using natural towards skincare, hair care and health concerns.
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