Slide 1: GHCL Limited Investor Presentation July 2017
om vm ois. ae " DENSE SODA ASH UGHT SOA ASH woven ¢ galt, ea, — & iy st 4 ; i) 6. | y 9 1 ; BE t oy 5 Y +h = , yf me) yw é % a * eo wm ew Vanya i = GHCL LIMITED ; INVESTOR PRESENTATION Ae wf \ July 2017 . We believe — Respect, Trust, Ownership and Integrated Teamwork lead to Business Suc
Slide 2: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 3: Best Companies to Work
BEST COMPANIES TO WORK GHCL Amongst Top 100 companies — in 1 attempt Jf,
Slide 4: Agenda
Agenda 01 Business Overview 02 Inorganic Chemicals Segment 03 Textiles Segment 04 Financials 05 Business Philosophy
Slide 5: Business Overview
Business Overview
Slide 6: Business overview
Business overview Cost leadership in the industry Presence across the value chain Inorganic Chemicals (59%*) Textiles Segment (41%*) Among top 3 soda ash players with Spinning 9.50 MT capacity 1,75,000 Spindles • Catering 1/4th of Indian soda ash 3,340 Rotors demand Weaving/Knitting • Margin leade
Slide 7: Robust year on year growth in Q1FY18
Robust year on year growth in Q1FY18 10% 15% 6% Revenue EBITDA EBITDA Margin Rs 804 crore Rs 167 crore 21% 21% 54% Rs. 6 Profit Before Tax Profit After Tax EPS Rs 111 crore Rs 158 crore Rs. 16/Share
Slide 8: With improving financial indicators
….With improving financial indicators Net Debt / EBITDA Net Debt / Equity Total Debt (Rs cr) 1.92 0.91 1350 From 1.93 in Mar’17 From 1.04 in Mar’17 From 1431 cr in Mar’17 Return on Return on Equity* Cash Profit after Cash Capital Employed* tax (Rs cr) 20% 30% 121 • ROCE calculated as - Trailing 12 M
Slide 9: Inorganic Chemicals
Inorganic Chemicals
Slide 10: Leading manufacturer of soda ash
Leading manufacturer of soda ash 9.5L MT Cost 90%+ 30%* Soda cash capacity; leadership Capacity utilization; EBITDA Margins; 25%+ market share Captive sources amongst highest in consistent high of domestic demand of raw material industry margins Captive sources of raw materials Clients – major FMCG/
Slide 11: Other products
Other products Sodium Bicarbonate » Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Import » Used in Cooking, Pharmaceuticals, Fire Extinguishers, pH 16% Tata Chem balancer, and Cleaning agent 52% » Specialization and experience in manufacturing of around a VXL 7% de
Slide 12: Robust financial performance
Robust financial performance Revenue EBITDA Key performance highlights Rs Crs 147 148 Rs Crs 521 135 492 421 119 » Revenue growth of 17% for Quarter 384 ended June 2017 Y-o-Y led by Expansion benefit leading to higher volumes. » Revenue down by of 6% for Quarter Q1 FY 16 Q1 FY17 Q4 FY 17 Q1 FY18 Q
Slide 13: Capacity additions to spur growth
Capacity additions to spur growth Steady capacity additions Phase 1 expansion » Capacity expansion by 1 Lac MT of Soda Ash completed during March FY17 » Completion within timeframe and lower cost 11 * than expected, thus improving ROCE of the investment. 9.75 9.5 8.5 Debottlenecking – By FY18 » Next
Slide 14: Soda Ash Industry
Soda Ash Industry • Plant Maintenance in China resulted in tight situation Capacity 67 Mn MT • US production on lower side Production 57 Mn MT • Turkey’s additional 2.5Mn is expected to come in Q3FY18 • Demand growth of 3.1% expected during the year. • Healthy demand growth of 5-6% expected during t
Slide 15: Home Textile Segment
Home Textile Segment
Slide 16: Emerging home textile player
Emerging home textile player Integrated Home Textile Player » State-of-the-art home textiles facility at Vapi with weaving, processing and made ups Best of plants and equipment sourced from Germany and Japan - Beninger, Kuster, Monforts Flexibility to process both cotton and blended fabrics » Be
Slide 17: New Initiatives
New Initiatives • Every 100 K Sheet set would make below impact Creating Fibres • Reduction in Crude Oil Consumption recovered from • Reduction in Carbon Emission PET bottles • Reduction in Land Fill •Responsible Cotton Cultivation •Sustainable farming practices – use of GPS with farm & soil mapping
Slide 18: Global presence in sheeting
Global presence in sheeting Canada 4% 4% Europe 65% United States 22% 3% Others India 2% Australia Marquee home textile clients across the globe * Based on FY17 sales mix
Slide 19: Consistently improving utilization and margins
Consistently improving utilization and margins Rs Crs Revenue EBITDA Key performance highlights 360 312 312 50 241 37 33 32 » Textile industry is witnessing tough times : » Dollar devaluations. » Uncertainty due to GST. » Oversupply situations. Q1 FY 16 Q1 FY 17 Q4 FY 17 Q1 FY18 Q1 FY 16 Q1 FY 17 Q4
Slide 20: Growth to be led by capacity addition
Growth to be led by capacity addition Sheeting Capacity (Mn metres) Phase 1 - Completed » Modernisation of spinning unit along with 45 enhancement of value added spinning capabilities » Investment in cut and sew facility 36 36 36 36 » Wind mill capacity enhanced to 27 MW Phase 2 – By FY 18 » Process
Slide 21: Financials
Financials
Slide 22: Profit & loss statement
Profit & loss statement Rs. In Crores Particulars Q1FY18 Q1FY17 % Change Q4FY17 FY 17 Sales 804 734 10% 881 2980 Operating Expenses 637 538 18% 696 2256 EBITDA 167 196 (15 %) 185 724 EBITDA Margin 20.8% 26.8% 6% 21.0% 24.3 % Depreciation 25 21 19% 21 85 EBIT 142 175 164 639 Interest 31 35 (19%) 34 1
Slide 23: Efficient cash flow management
Efficient cash flow management Generated Cash Profits of Increase in Rs. 28 crore Rs. 81 crore Working Buyback borrowings paid Capital of Rs. 32 crore Rs. 44 crore
Slide 24: Robust growth with improving profitability
Robust growth with improving profitability Rs Crs Revenue (8% CAGR) EBITDA (19% CAGR) EBITDA Margin 724 636 23.4% 24.3% 2980 20.9% 534 18.2% 2716 433 2550 2375 FY14 FY15 FY16 FY17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Cash Profit (28% CAGR) PAT (49% CAGR) PAT Margin 474 13.0% 373 387 9.4%
Slide 25: And improving return ratios
And improving return ratios Rs Crs Net Debt/Equity ROCE ROE 1.68 22% 21% 1.48 20% 29% 1.24 24% 25% 1.04 15% 14% FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Net Debt/EBITDA Current Ratio Interest Coverage Ratio 2.16 2.24 2.93 4.8 2.42 1.79 1.61 2.02 1.93 3.4 2.74 2.06 FY 1
Slide 26: Business Philosophy
Business Philosophy
Slide 27: Professional management
Professional management RS Jalan Raman Chopra Managing Director CFO & Executive Director Unique leadership style with endeared Spearheading GHCL’s Finance and IT functions. managerial abilities drives all businesses alike. Qualified Chartered Accountant with sharp Qualified Chartered Account
Slide 28: Business philosophy going forward
Business philosophy going forward… Robust and Profitable Growth 01 To grow profits at CAGR 20% Focus on Value Systems 02 To create a value systems that defines our Culture Sustainable Inclusive Growth 03 Business Philosophy of “Sustainable Inclusive Growth” involving all the stakeholders
Slide 29: Sustainable Inclusive Growth
Sustainable Inclusive Growth Education Village Sanitation • More than 4500 students being educated • Promoting Tata Water Mission with in 27 villages from pre-school to “1 Day 1 Village Campaign”. graduation • Constructed 5316 toilet units in 66 • Under Vidya Jyot Project, promoting villages. educat
Slide 30: For more information please visit us
For more information please visit us at www.ghcl.co.in CIN: L24100GJ1983PLC006513 CIN: U74900MH2014PTC259212 Mr. Raman Chopra Ms. Pooja Dokania rchopra@ghcl.co.in dpooja@stellar-ir.com Mr. Sunil Gupta Mr. Rajeev Menon sgupta@ghcl.co.in mrajeev@stellar-ir.com Mr. Abhishek Chaturvedi abhishekchaturved