Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — Q1 FY2021 Earnings Presentation
31 slides from Nath Bio-genes (india)'s earnings presentation, Aug 8, 2020
Slide 1: Nath Bio-Genes (I) Ltd. results presentation cover letter
. 26é Nath Bio-Genes (I) Ltd. (CIN LO1110MH1993PLC072842) 08% August 2020 The Manager-Listing The Manager-Listing BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Bandra (E) Mumbai-40000 1 Mumbai-40005 1 BSE Code-537291
Slide 2: Nath Bio Genes Investor Presentation
Nath Bio Genes Investor Presentation
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 4: Strategy 4.0
Strategy 4.0 Altering strategy to create a more robust & de-risked business model Risks Change in Strategy Action Points o Portfolio Concentration o Limiting revenue contribution of any o Developing products in multiple field Risk single crop to less than 25% crops like Maize, Jowar, Bajra o Cotton
Slide 5: Last 5 Years: Cotton & Paddy Driven Growth
Last 5 Years: Cotton & Paddy Driven Growth Revenue Growth Contributors (INR Mn) Cotton + Paddy: Aggregate Sales Contribution over last 5 years = 65%+ FY15 Revenue Cotton Paddy Vegetables Plant Nutrient Others FY20 Revenue 4
Slide 6: Next 5 Years: Multiple Growth Drivers
Next 5 Year: Multiple Growth Drivers Moving towards a Diversified and De-Risked Portfolio (% Sales) Plant Nutrient 11 12 12 14 Vegetables 11 14 16 16 Cereals* 15 17 19 20 Concentrated Cotton + Paddy 63 Portfolio: Cotton And Paddy 57 54 contribute to 60%+ 50 of Sales 2019-20 2020-21 2021-22 2022-23 *
Slide 7: Strongly Positioned in Post Covid World
Strongly Positioned in Post Covid World Moving Towards a Higher Growth Trajectory Revenue Guidance FY21 c.20% Gross Margin c.50% + EBITDA Margin Improving 6
Slide 8: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Building A Strong Organisation Developing Innovative Products Making the Portfolio more Balanced Balance Sheet becoming Stronger Strategic Presence across Seed Value Chain Delivering strong growth despite an uncertain environment 7
Slide 9: Innovate, Help, Grow
Innovate, Help, Grow Innovate Help Grow (5 Year Performance] 45 150,000 73% New Seeds Developed in last 5 Employment Generated Revenue Growth years 100+ years 50,000 1.2x Seed Growers EBITDA Growth R&D Team experience Ranking 1-3 20,000+ 2.6x Direct Retailers PAT Growth ICAR Trials 20+ 15,000 440 bp
Slide 10: Building a Strong Organisation
Building a Strong Organisation • Imbibing a culture of continuous growth and strong governance 500+ • Hiring the best talent in each key area of Employees operations – R&D, Finance, Supply-Chain • Empowered teams, well-aligned with organisation vision 150+ • Strong risk management framework New Empl
Slide 11: Developing Innovative Products
Developing Innovative Products • World Class R&D Infrastructure Holistic Products to Address Problems of • Launched 36 Innovative Products Developed across Low Yields Segments • 4-6 new products in pipeline in cotton Pest Infestation • 6-8 new products in pipeline in field crops Climate Change • 10+
Slide 12: Strategic Presence Across the Seed Value Chain
Strategic Presence Across the Seed Value Chain Genetic Resources/Germplasms 18,000+ Germplasm Library R&D 100+ years R&D Team experience New Seed Development ICAR Trials 36 done at Seed varieties launched in last 3 years Commercial Production this stage 50,000 Seed Growers Marketing and Distribution
Slide 13: Balance Sheet Becoming Stronger
Balance Sheet Becoming Stronger Maintaining adequate Ramping up Reduction in • No Debt Company despite double digit growth inventory for collections from advances for achieving higher sales Receivables production • Working capital days substantially reducing • Efficiently Managed Assets 1.3x Positiv
Slide 14: Cotton Segment: Facing Headwinds
Cotton Segment: Facing Headwinds Cotton Business Impacted by Multiple Challenges Issues Business Impact Action Taken Price Regulation Margins adversely Impacted o Price regulated by government has remained unchanged o Cost of production and processing has continuously for many years increased Divers
Slide 15: Highly Ranked Cotton Products
Highly Ranked Cotton Products o Cotton growth expected to be at 20-22% 3 YEAR OUTLOOK: o Industry Leading Cotton Products 20% + Growth CAGR o Launched two new products- Sanket and Daksh this year o Focusing on increasing presence in untouched areas of the existing states Progress of Acreage under CO
Slide 16: Paddy: Strategic Position in Hybrid Paddy
Paddy: Strategic Position in Hybrid Paddy Paddy growth expected to be at 15-20% Largest Consumed Grain in the country 3 YEAR OUTLOOK: One of the fastest Growing Crops in India 15% + Growth Pan India Paddy Sales to mitigate irregular monsoons Exploring Export Opportunities Presence of Pad
Slide 17: Highly diversified vegetable Portfolio
Highly diversified vegetable Portfolio o Vegetable growth expected to be at around 30-32% 3 YEAR OUTLOOK: o High Margin segment : 60%+ margins 30% + Growth o Presence across 10 products; Vegetables sold Pan India o Separate teams to focus on distribution and marketing Hybrid Vegetable Market Size:
Slide 18: Win Chi Win: to be a major growth booster
Win Chi Win : to be a major growth booster 3 YEAR OUTLOOK: o WCW growth expected to be at around 30% Plus 30% + Growth o High Margin segment Geographical Presence of Win Chi Win • A foliar spray containing • Concentrate on Plant Nutrient Segment for essential elements required for higher growth and
Slide 19: New Crops under Focus
New Crops under Focus Bajra Maize Mustard Wheat Second Largest Most widely grown Most Versatile Emerging Rapidly increasing acreages consumed grain in the Millet in India Crop witnessed in FY20 country 4.42% 2.4% 3.84% 2.34% Revenue contribution(%) Revenue contribution(%) Revenue contribution(%) Rev
Slide 20: Exports: An Area Being Explored
Exports: An Area Being Explored Export (INR Mn) o Potential to increase revenue multi-fold o Huge opportunity in South East Asia and Africa 60.4 o Insulates from a ‘Single country regulatory risk’ 28.8 Multi Geography Strategy requires a Broader Portfolio to meet varied customer requirements FY19 FY
Slide 21: Q1FY21 Performance
QIFY2I Performance ry Oe we. Nath Bio-Genes (I) Ltd. azar aa, attat AT 20
Slide 22: Operational and Financial Highlights
Operational and Financial Highlights Strong Financial Performance… (INR Mn except Q1FY21 Q1FY20 YoY % as stated) o Q1FY21 revenue growth of 16.9% Revenue 1,933 1,653 16.9% o Gross Margins maintained at 49.42% EBITDA 442 375 17.8% o Working Capital cycle improving PAT 413 353 16.9% EPS 21.7 18.6 17.0
Slide 23: Segmental Revenue Contribution
Segmental Revenue Contribution Q1FY20 Revenue Q1FY21 Revenue INR 1,600 Millions INR 1,933 Millions Others Others 19% 18% Cotton Cotton 45% 45% Paddy Paddy 36% 37% 22
Slide 24: Strong Financial Performance
Strong Financial Performance Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) 49.4% 49.4% 16.9% 1,933 17.8% 442 1,653 375 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 PAT (INR Mn) PAT Margin (%) EPS (INR/Share) 21.7 413 21.4% 16.9% 21.3% 17.0% 353 18.6 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 23
Slide 25: Income Statement
Income Statement Particulars (INR Mn) Q1FY21 Q1FY20 % Change (YoY) Total Revenue 1,933 1,653 16.9% Gross Profit 956 816 17.1% Gross Margin (%) 49.42% 49.4% EBITDA 442 375 17.8% EBITDA Margin (%) 22.9% 22.7% Depreciation 7 4 65.0% Finance Cost 19.7 17 15.9% PBT 416 356 16.7% Tax Rate (%) 0.7% 0.6% PA
Slide 26: Appendix
Appendix ry Oe we. Nath Bio-Genes (I) Ltd. azar aa, attat AT
Slide 27: Visionary Leadership: Attracting the Best Talent
Visionary Leadership : Attracting the Best Talent Nandkishor Satish Nath Promoters are committed to sustainable Kagliwal Kagliwal growth and are working towards making NATH Chairman MD one of the best seeds company globally. Leadership Team Nath leadership team shares the same passion as its promote
Slide 28: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Net Debt (INR Mn) Net Worth (INR Mn) PAT Margin (%) EBITDA Margin (%) 27
Slide 29: Historical Income Statement
Historical Income Statement Particulars (INR Mn) FY20 FY19 FY18 Total Revenue 2,799 2,309 1,917 Gross Profit 1,536 1,253 1,073 Gross Margin (%) 54.89% 54.3% 56.0% EBITDA 547 433 404 EBITDA Margin (%) 19.5% 18.7% 21.1% Depreciation 14.5 14 10 Finance Cost 66 52 103 PBT 485 389 300 PAT 505 386 294 PAT
Slide 30: Historical Balance Sheet
Historical Balance Sheet Assets (INR Mn) FY20 FY19 FY18 Liabilities FY20 FY19 FY18 Fixed Assets 2,460 2,317 2,109 Share Capital 190 190 190 Financial Assets 52 52 51 Reserves & Surplus 5,386 4,885 4,502 Other Non-current Assets 15 20 11 Long-Term Borrowings 3 5 4 Inventories 2,043 1,554 1,235 Long-t
Slide 31: Thank You
Thank You For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 97693 64166 Radha Agarwalla radha@goIndiaadvisors.com M:+91 8981938289 30
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