EVEREST INDUSTRIES LIMITED

H1 / Q2–FY19 EARNINGS PRESENTATION

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Executive Summary

Company Overview:
Everest Industries Limited, incorporated in 1934, has a rich history in the manufacturing of Building products and Steel products. Everest offers
a complete range of roofing, ceiling, wall, flooring, and cladding products distributed through a large network, as well as EPC of pre-
engineered steel buildings for industrial, commercial, and residential applications. It is one of the leading building solutions providers in India,
providing detailed technical assistance in the form of designs, drawings, and implementation for every project.

H1-FY19 Business Mix (Standalone Revenue Share %):

• Building products (66%) – includes roofing sheets, fibre cement boards and solid wall panels.
• Steel buildings (34%) – offers customised building solutions like Pre-Engineered Steel Buildings and Smart Steel Buildings.

Manufacturing and Distribution Network:

• 6 Building Products plants and 2 Steel Buildings and Component Plants.

• 32 Sales Depot, over 6,000 Dealer Outlets, serving over 600 cities & 100,000 villages.

H1-FY19 Financial Snapshot (Standalone):

Total Income* EBITDA Total Comprehensive Income

INR 7,324 Mn INR 639 Mn INR 380 Mn

EBITDA Margins Margins
Up 14.30% Y-o-Y 8.72% 5.18%
*Includes other income 2
Company Overview

• Everest Industries Limited (Everest) has over 8 decades Revenue (INR Mn) and EBITDA Margin (%)*
of experience in building products and is the pioneer
of fibre cement products in India.
• The company’s business is built on three key pillars:
Safety, Speed, and Strength.
• The vision of the company is to be the deepest
penetrated housing and building solutions provider in
India.
• Everest provides building products and building
solutions for commercial, industrial, and residential
sectors. FY18 Business Mix*
• The company has covered more than 1 Bn sq. mts. of
industrial and residential roofs.
• The company has an impressive product range of
value added products like cement boards and panels
for faster and modern construction of ceilings and
walls.
• It is among the largest Pre-Engineered Buildings (PEBs)
companies in India, and has erected and designed
more than 2,300 PEBs.
* Consolidated #Standalone 3
Key Financial Highlights – Standalone Historical (INR Mn)
Current Quarter Previous Quarter Current Quarter Last Current Year Last Year
Year

Particulars Q2-FY19 Q1-FY19 Q2-FY18 H1-FY19 H1-FY18

Total Income* 3,140 4,184 2,615 7,324 6,408

EBITDA 195 443 144 639 481

EBITDA Margin 6.21% 10.59% 5.51% 8.72% 7.51%

Net Profit (after tax) 87 294 45 381 214

PAT Margin 2.77% 7.03% 1.72% 5.20% 3.34%

Total Comprehensive Income 86 293 51 380 225

Diluted EPS (INR per share) 5.58 18.78 3.27 24.36 14.61

*Includes other income

All numbers as per IND-AS 4
Q2-FY19 – Standalone Income Statement (INR Mn)

Particulars Q2-FY19 Q2-FY18 Y-o-Y Q1-FY19 Q-o-Q

Total Income* 3,140 2,615 20.1% 4,184 (25.0)%

Total Expenses 2,945 2,471 19.2% 3,741 (21.3)%

EBITDA 195 144 35.4% 443 (56.0)%
EBITDA Margin 6.21% 5.51% 70 Bps 10.59% (438) Bps

Depreciation 56 59 (5.1)% 57 (1.8)%

Finance Cost 24 26 (7.7)% 15 60.0%

Exceptional items - - NA - NA
PBT 115 59 94.9% 371 (69.0)%
Tax 28 14 100.0% 77 (63.6)%
Profit After Tax 87 45 93.3% 294 (70.4)%
PAT Margin 2.77% 1.72% 105 Bps 7.03% (426) Bps

Other Comprehensive Income (1) 6 NA (1) NA

Total Comprehensive Income 86 51 68.6% 293 (70.6)%
Diluted EPS (INR per share) 5.58 3.27 70.6% 18.78 (70.3)%

*Includes other income 5

H1-FY19 – Standalone Income Statement (INR Mn)

Particulars H1-FY19 H1-FY18 Y-o-Y

Total Income* 7,324 6,408 14.3%

Total Expenses 6,685 5,927 12.8%

EBITDA 639 481 32.8%

EBITDA Margin 8.72% 7.51% 121 Bps

Depreciation 113 116 (2.6)%

Finance Cost 39 68 (42.6)%

Exceptional items - 16 NA

PBT 487 281 73.3%

Tax 106 67 58.2%

Profit After Tax 381 214 78.0%

PAT Margin 5.20% 3.34% 186 Bps

Other Comprehensive Income (1) 11 NA

Total Comprehensive Income 380 225 68.9%

Diluted EPS (INR per share) 24.36 14.61 66.7%

*Includes other income 6

H1-FY19 Balance Sheet – Standalone (INR Mn)

EQUITIES & LIABILITIES H1-FY18 H1-FY19 ASSETS H1-FY18 H1-FY19

Shareholder Funds Non Current Assets
Share Capital 155 156 Property, Plant and Equipment 3,364 3,408
Other Equity 3,464 4,094 Intangible Assets 5 17
Total -Shareholder Funds 3,619 4,250 Capital Work In Progress 199 198
Other Financial assets 152 153
Non Current Liabilities Income tax assets (net) 351 290
Long Term Borrowings 637 522 Non-current investments 159 4
Deferred Tax Liabilities (Net) 315 284 Long term loans & advance - -
Other Long Term liabilities - - Other non-current assets 26 17
Long Term provisions - - Total - Non – Current Assets 4,256 4,087

Total - Non – Current Liabilities 952 806 Current Assets

Current Liabilities Inventories 2,151 2,536
Short term Borrowings 679 100 Trade Receivables 907 813
Trade Payables 1,450 1,802 Cash & Bank Balances 52 305
Loans 291 268 Bank balance other than above 4 4
Other Financial Liabilities 343 241 Other financial assets 128 85
Other Current Liabilities 771 526 Short-term loans & advances - -
Short-term provisions 69 221 Other current assets 676 384
Total – Current Liabilities 3,603 3,158 Total – Current Assets 3,918 4,127
GRAND TOTAL - EQUITIES & LIABILITES 8,174 8,214 GRAND TOTAL – ASSETS 8,174 8,214

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Key Business Highlights

• Relentless pursuit of value added business.

• Improved utilization beyond 90% from 85% in the previous year.

• Improved product mix (by increasing contribution of premium products Everest Super, Arte Wood, Everest Jaali).

• Working capital loan needs decreased due to better internal funding.

• Expanding national footprint of building solutions business through improved distribution network and better product
profile.

• Steel prices continue to put pressure on steel buildings business profitability.

• Forex Fluctuation impacted the results by over Rs 5 crores.

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H1 / Q2-FY19 Operational
Highlights – Building
Products

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Building Products Performance - Standalone

Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn)

Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn)

800 Q4 Q3 Q2 Q1 1200 Q4 Q3 Q2 Q1
700 1000
600 191 271
174 800
500 257 225
161 600
400 127 232
154 400 153
300 122 129 20
200 526
200 338 351
100 226 226 264 0 -41
0 -200
FY17 FY18 FY19 FY17 FY18 FY19
Note : All numbers as per IND-AS 8
Key Operational Highlights – Building Products Segment

• Revenue up by 21% vis a vis Q2-FY18.

• Everest Super delivered reasonable volumes in its key markets. This waterproof and colored product is a cost
effective alternative to metal roofing sheets.

• Focused marketing efforts in identified markets has led to higher volumes in roofing products.

• Expanding distribution network and reactivation of outlets in roofing products helped increase volume.

• Strong product mix (complete building solutions) with an added stimulus on value added products.

• Freight costs continue to increase in the backdrop of increasing fuel prices.

• Stronger dollar is likely to put stress on input cost.

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Way Forward – Building Products Segment

• Expected increase in rural disposable income through Government initiatives where there is substantial hike in
Minimum Support Prices (MSP) which will lead to demand for value added products.

• Government initiatives would drive additional demand for Building Products in areas of housing and infrastructure.

• Anticipated good monsoon should result in increased sales at remunerative prices.

• Exposure to global design trends is slowly pushing customers towards branded solutions providers with back-end
integration to factory-based made-to-order fit-outs, which offers better cost advantages, design flexibility,
uniformity, and flawless execution.

• The building solutions and interior fit-outs market should consolidate and expected to grow at about 7% until 2022,
with home furnishings being the largest contributor, followed by office and institutional furniture.

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Building Products – Roofing and Fibre Cement Boards
Everest Roofing Products

Everest Super Everest Super Everest Super

Seed Factory – Bhattinda Marriage Hall – Amritsar Poultry Farm – Ludhiana
Fibre Cement Boards and Panels

Cement Planks Cladding Fibre Cement Boards Fibre Cement Boards

Apartment Complex – Bangalore Ebco Showroom – Surat Hills School – Surat 15
 H1 / Q2-FY19
Operational
Highlights – Steel
Buildings

14
Steel Building Performance - Standalone

Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn)

Sales (`000 MT) Revenue (INR Mn) PBIT (INR Mn)

70 Q4 Q3 Q2 Q1 5,000 Q4 Q3 Q2 Q1 100 Q4 Q3 Q2 Q1
60
4,000 1,262 37
50 16 1,292 50
16 3 59
3,000 37 25
40 1,097
15 1,082 0 6 7 -4
30 14 2,000 -41
1,361
20 14 16 863 1,066
10 -50 -33
1,000
10 1,058 1,157
12 13 13 998
0 0 -100
FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19
Note : All numbers as per IND-AS 12
Key Operational Highlights – Steel buildings

• Committed to timely hand over of projects to customers with Industry benchmark quality.

• order book of 24,000 MT build turnkey projects which provides strong revenue visibility for 1-2 years;
executable over 15 months.

• Execution speed is picking up as industry is expanding capacity.

• Profitability in stress due to continuous steel price increases.

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Way forward –Steel Buildings Segment

• Everest remains committed towards smarter, safer, and speedier construction technology.

• Government focus to connect Tier II and Tier III towns via air routes will help the company promote its modern Smart
Steel Building Technologies.

• Focus on green buildings will benefit PEB segment as it provides construction method which is 3 times faster than the
conventional construction.

• Perception shift from conventional construction to pre-engineered steel structures is helping convert Tier II and Tier III
towns customers.

• Everest continues its focus on creating more brand awareness.

• Developing new applications and use of modern technology to cater to commercial customers.

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Steel Buildings – Major projects handed over in Q2-FY19

Goodluck India Ltd. – Kutch, Gujarat Silchar Technologies Ltd. – Vadodara, Taikai Electric India Ltd. – Savli, Gujarat
Gujarat

Jindal Mectec Pvt. Ltd. – Indore, Tiger Vanijya Pvt Ltd. – Jaipur, Rajasthan Vacmet India Ltd. – Indore, Madhya
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Madhya Pradesh Pradesh
Historical Financial
Statements

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Income Statement – Standalone (INR Mn)

Particulars FY15 FY16 FY17# FY18#

Total Income* 12,410 13,263 12,372 12,786

Total Expenses 11,486 12,266 11,856 11,797

EBITDA 924 997 516 989

EBITDA Margin 7.45% 7.52% 4.17% 7.74%

Depreciation 254 256 255 236

Finance Cost 187 228 208 126

Exceptional Items - - - 16
PBT 483 513 53 611

Tax 141 160 13 104

Profit After Tax 342 353 40 507

PAT Margin 2.76% 2.66% 0.32% 3.97%

Other Comprehensive Income - - (2) 13

Total Comprehensive Income 342 353 38 520

Diluted EPS (INR per share) 22.45 23.00 2.48 33.54

*Total income includes other income #As per IND-As 20
Balance Sheet – Standalone (INR Mn) IND-AS

EQUITIES & LIABILITIES FY17 FY18 ASSETS FY17 FY18

Shareholder Funds Non Current Assets
Share Capital 154 156 Property, Plant and Equipment 3,436 3,385
Other Equity 3,249 3,814 Intangible Assets 8 21
Total -Shareholder Funds 3,403 3,970 Capital Work In Progress 47 205
Other financial assets 122 134
Non Current Liabilities Income tax assets (net) 368 365
Long Term Borrowings 914 511 Non-current investments 175 4

Deferred Tax Liabilities (Net) 314 288 Long term loans & advance - -
Other Long Term liabilities - - Other non-current assets 26 28
Long Term provisions - -
Total - Non – Current Liabilities 1,228 799 Total - Non – Current Assets 4,182 4,142

Current Liabilities Current Assets

Short term Borrowings 884 258 Inventories 2,346 2,475
Trade Payables 1,606 1,502 Trade Receivables 990 661
Deposit from Business Partners 286 302 Cash & Bank Balances 105 193
Other Financial Liabilities 258 157 Bank balance other than above 4 4
Other Current Liabilities 684 736 Other financial assets 345 89
Short-term provisions 54 52 Short-term loans & advances - -
Income Tax Liability (Net) - 131 Other current assets 431 343
Total – Current Liabilities 3,772 3,138 Total – Current Assets 4,221 3,765
GRAND TOTAL - EQUITIES & LIABILITES 8,403 7,907 GRAND TOTAL – ASSETS 8,403 7,907

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Income Statement – Consolidated (INR Mn)

Particulars FY15 FY16 FY17# FY18#

Total Income* 12,417 13,263 12,498 13,069

Total Expenses 11,493 12,274 11,990 12,070

EBITDA 924 989 508 999

EBITDA Margin 7.44% 7.46% 4.06% 7.64%

Depreciation 254 256 255 235

Interest 187 228 208 126

PBT 483 505 45 638

Tax 141 160 15 107

Profit After Tax 342 345 30 531

PAT Margin 2.75% 2.60% 0.24% 4.06%

Other Comprehensive Income - - (2) 13

Total Comprehensive Income - - 28 544

Diluted EPS (INR per share) 22.46 22.61 1.85 35.08

*Total income includes other income #As per IND-As 22

Balance Sheet – Consolidated (INR Mn) IND-AS
Equity & Liabilities FY17 FY18 Assets FY17 FY18
Shareholder's Funds Assets
Share Capital 154 156 Non-Current Assets
Other Equity 3,233 3,824 Property, Plant and Equipment 3,438 3,385
Minority Interest 2 - Intangible Assets 8 21
Total Shareholder's Fund 3,389 3,980 Capital Work-in-Progress 180 205
Other Financial Assets 122 134
Long-Term Borrowings 914 511 Long-Term Loans and Advances - -
Deferred Tax Liabilities (Net) 314 288 Other Non-Current Assets 26 28
Long-Term Provisions 0 0 Income Tax Assets (Net) 367 365
Non-Current Liabilities 1,228 799 Total Non Current Assets 4,141 4,138
Current Liabilities Current Assets
Short-Term Borrowings 884 258 Inventories 2,347 2,475
Trade Payables 1,654 1,578 Trade Receivables 1,019 706

Deposit from business partners 286 302 Cash and Cash Equivalents 132 226
Other Current Liabilities 698 747 Bank Balances Other than above 5 4
Short-Term Provisions 54 52 Short-Term Loans and Advances - -
Other Financial Liabilities 264 174 Other Current Assets 468 383
Income Tax Liability (Net) 0 131 Other financial assets 345 89
Total Current Liabilities 3,840 3,242 Total Current Assets 4,316 3,883

TOTAL EQUITY AND LIABILITIES 8,457 8,021 TOTAL ASSETS 8,457 8,021
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Financial Performance – Consolidated

Revenue (INR Mn) and EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) Net Debt to Equity Ratio

ROE & RoCE Operating Cash Flow (INR Mn) Working Capital Days

Note: FY17 and FY18 numbers As per IND-As 24

Capital Market Information
SHARE PRICE PERFORMANCE (AS ON 30th SEPTEMBER 2018)
90% Everest Ind Sensex
80% LARGEST INSTITUTIONAL INVESTORS (AS ON 30th SEPTEMBER 2018)
70%
60%
Vijay Kishanlal Kedia
50% 6.08%
40%
30%
20%
HDFC Small Cap Fund 2.64%
10%
0%

PRICE DATA (AS ON 30th SEPTEMBER 2018) SHAREHOLDING PATTERN (AS ON 30th SEPTEMBER 2018)

Face Value (INR) 10.00

Market Price (INR) 461.2

52 week H/L (INR) 636.9/333.4

Market Cap (INR Mn) 7,206

Equity Shares Outstanding (Mn) 15.6

12 Month Avg. Trading Volume (‘000) 124.09

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Q1- FY19 Earnings Call Information

The earnings call to discuss financial and operational performance for H1 /

Q2-FY19 with Mr. Manish Sanghi, Managing Director and Mr. Nikhil Dujari,
CFO will be held on:

 Date: Friday, 26th October, 2018

 Time: 11:00 AM

 Primary Dial-in Numbers: +91 22 6280 1341

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Disclaimer

Everest Industries Limited Disclaimer:

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information
or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this
presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the
management of Everest Industries Limited(“Company” or “Everest Industries Limited”), which are expressed in good faith and in their opinion reasonable, including those
relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive
and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or
achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-
looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions.
Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place
undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or
developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This
presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis
of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be
offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and
data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance
shall be placed on, the truth, accuracy, completeness, fairness and reasonableness 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. Valorem
Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

For further details, please feel free to contact our Investor Relations Representatives:
Mr. Anuj Sonpal
Valorem Advisors
Tel: +91-22-4903-9500
Email: [email protected]
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