#125 years Shankara Building Products Ltd. IDY Q1 FY21 Results#2Safe Harbor Shankara Building Products Ltd. This presentation and the accompanying slides (the "Presentation"), which has been prepared by Shankara Building Products Limited (the "Company"), has been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. 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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 industry in India and world-wide, competition, 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. SHANKARA Buildpro 2#3Shankara Building Products Ltd. Impact of COVID on financials The Company's operations and financial results for the quarter have been very adversely impacted by the lockdown imposed to contain the spread of COVID-19 and the uncertainty in the business environment. The operations gradually resumed in May with requisite precautions. The results for the quarter are therefore not comparable with those of the previous quarter. The Company has assessed the impact of the pandemic on its financial results based on information available up to the date of approval of the same. The Company continues to monitor the evolving economic situation due to the pandemic and is taking measures to improve its. efficiencies. SHANKARA Buildpro 3#4Shankara Building Products Ltd. Leading Building Material Retailer SHANKARA Buildpro Retail space 0.52 mn sqft Products 75+ SKUS 30,000+ States / UT 9/1 BHANKARA Buildpro UltraTech CEMENT The Engineer's Choice ANANA BUILDING PRODUCTS LINES LOS శంకర బిల్ట్ ప్రా SHANKARA OSTEN:37AACOSMETOL Buildpro Building Materials and More Per Ne, Wet No 2 Alige her-1. Genan Laude ANTIA BIRLA GROUP 2050 29005 ప్రో లిమిటెడ్ అల్ట్రాటెక్ 820 Mysore, Karnataka Thiruvalla, Kerala అల్ట్రాటెక్ Nellore, Andhra Pradesh Chennai, Tamil Nadu 4#5Shankara Building Products Ltd. 428 Q4FY20 Strong Focus on Balance Sheet Debtors 27% 311 Q1FY21 400 Q4FY20 Inventory 30% 279 Q1FY21 Net Debt + Acceptances 340 Q4FY20 13% 295 Q1FY21 SHANKARA ✓ With our continuous focus on balance sheet, we have been able to reduce Debtors by Rs. 117 crs & Inventory by Rs. 121 crs as compared to March 2020 ✓ Our overall Net Debt + Acceptances has reduced by 13% as of end June 2020 as compared to March 2020. Net debt + Acceptances stands at Rs. 295 crs as on June 2020 ✓ We have ensured timely payment for all our banking commitments and all our trade creditors ✓ Fresh capex plans are on hold Buildpro 5#6Q1FY21 Financial Highlights Shankara Building Products Ltd. Revenue from Operations SHANKARA 639 Q1FY20 346 Q1FY21 ✓ First quarterly loss ever in our history of 25 years 32 EBIDTA -9 Margin Performance 7 ✓ On account of the lockdown across the country, we witnessed a revenue drop of 46% on Y-o-Y basis in Q1FY21 Higher share of channel sales impacted overall gross margins ✓ Lower capacity utilization led to losses in processing units ✓ Price realization was impacted by trade channel undertaking inventory destocking for cashflow generation ✓ Overheads has been reduced by ~30% on a monthly run rate basis Buildpro PAT Due to all India Lockdown on account of Covid-19 Pandemic, the figures for Q1FY21 & Q1FY20 are not comparable -25 Rs. In Crs 6 Q1FY20 Q1FY21#7Revenue Break-Up Shankara Building Products Ltd. Total Revenues* (Rs. In Crs) 29% 15% 14% 28 66% Revenue across Verticals FY20 FY21 78% -42% -8% -74% -46% 168 150 Jun-20 Retail Channel Apr-20 May-20 Revenues share across Verticals SHANKARA Buildpro 14% 56% 25% 60% Retail Channel Enterprise Enterprise Total Revenue across Locations FY20 FY21 As lockdown has lifted, the monthly revenues have steadily increased Channel segment recorded lower drop in revenues; enterprise segment was sharpest Increase in share of sales from channel segment from 15% to 25% - Tier 2 and Tier 3 recorded lower drop in revenues I I Across locations -58% -45% -20% -46% Tier 1 Tier 2 Tier 3 Total *Note: % of Sales as compared to same period last year#8Shankara Building Products Ltd. SHANKARA Buildpro Revenue Break up Q1FY21 Q1FY20 Revenue mix across States 15% 10% 12% 49% Q1FY21 Revenue mix across States 13% 12% 12% 9% 6% 7% 8% ■ Karnataka ■ Andhra Pradesh ■ Karnataka ■ Telengana ■ Kerala ■ Telengana ■ Tamil Nadu ■ Other States ■ Tamil Nadu 48% Andhra Pradesh ■ Kerala Other States Due to all India Lockdown on account of Covid-19 Pandemic, the figures for Q1FY21 & Q1FY20 are not comparable 8#9Shankara Building Products Ltd. SHANKARA Key Highlights - Retail Business No of retail stores Particulars Units Q1FY21 Q1FY20 Nos. 115 129 Total Area Sq. Ft 520,576 555,622 Average store size Sq. Ft 4,527 4,307 Average ticket size Revenue from retail stores Rs. 28,371 27,996 Rs. in Crs 209 360 Average rental cost per Sq. Ft. per month Rs. 15.9 20.2 Significant savings in rental costs achieved Buildpro Due to all India Lockdown on account of Covid-19 Pandemic, the figures for Q1FY21 & Q1FY20 are not comparable 9#10Shankara Building Products Ltd. SHANKARA Buildpro Q1 FY21 Income Statement Particulars (Rs. in Crs) Q1FY21 Q1FY20 Total Income 346.1 639.3 Other Income Raw Material Employee Expenses Other Expenses EBITDA EBITDA % Depreciation Finance Cost Profit before Tax Extraordinary expenses Tax Profit After Tax 1.0 0.5 340.0 578.5 7.3 13.2 9.2 16.5 -9.3 31.7 -2.7% 5.0% 6.7 8.5 9.5 11.3 -25.5 11.8 1.5 -0.2 3.6 -25.3 6.8 Profit After Tax (%) -7.3% 1.1% Due to all India Lockdown on account of Covid-19 Pandemic, the figures for Q1FY21 & Q1FY20 are not comparable 10#11Shankara Building Products Ltd. Future outlook Revenue stream will stabilize at ~65 to 70% of normalized Q2 revenues ✓ Costs are being contained commensurate to the reduction in revenues and will have a follow through over the next few months ✓ There is a pickup in the enterprise segment ✓ Processing units costs are also being contained as per lower capacity utilization ✓ Continuous focus on reduction in borrowings ✓ Slight pickup in demand in Tier 1 cities ✓ Overall positive outlook for metals SHANKARA Buildpro 11#12Shankara Building Products Ltd. SHANKARA Buildpro For further information, please contact: Company: Shankara Building Products Ltd. CIN L26922KA1995PLC018990 - Mr. Alex Varghese - CFO www.shankarabuildpro.com Investor Relations Advisors: SGA Strategic Growth Advisors CIN U74140MH2010PTC204285 Mr. Sagar Shroff /Mr. Shogun Jain [email protected]/[email protected] +91 98205 19303 / +91 77383 77756 www.sgapl.net 12