Slide 1: Cover letter to stock exchanges: Investors' Presentation Q1 FY22
GHCL Limited July 29, 2021 -mqvr • f SOj qfi. ~ ~~~obt National Stock Exchange of BSE Limited India Limited Corporate Relationship Department, "Exchange Plaza" 151 Floor, New Trading Ring, Rotunda Building, Sandra - Kurla Complex, P.J. Towers, Sandra (E), Mumbai - 400 051 Dalal Street, Fort, Mumbai
Slide 2: GHCL Limited Q1 FY22 Investor Update
DRIVING EXCELLENCE GHCL LIMITED Q1 FY22 Investor Update July 2021
Slide 3: Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and sh
Slide 4: Table of Contents
Table of Contents Quarterly Update 4 Company Overview 15 Inorganic Chemicals Segment 22 Textiles Segment 32 3
Slide 5: Quarterly Update
Quarterly Update 4
Slide 6: Management Commentary
Management Commentary Commenting on the Q1 FY22 performance, Mr. R. S. Jalan, MD said: “We have commenced the new fiscal year on an encouraging note with solid gains across all our business segments. This was possible inspite of severe disruptions witnessed in Q1 due to localized restrictions and lo
Slide 7: Performance Highlights – Q1 FY22
Performance Highlights – Q1 FY22 Q1 FY22 Vs 94% 124% 500% 498% 171% Q1 FY21 (Y-o-Y) Revenue EBITDA PBT PAT Cash Profit ` 854 crore ` 189 crore ` 138 crore ` 101 crore ` 135 crore Q1 FY22 Vs 4% 3% 3% 3% 1% Q4 FY21 (Q-o-Q) 6
Slide 8: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q FY21 Revenue 854 440 94% 821 4% 2,850 Operating Expenses 666 356 87% 626 6% 2,204 EBITDA 189 84 124% 195 (3)% 646 EBITDA Margin 22.1% 19.1% 3% 23.8% (1.7)% 22.7% Depreciation 34 33 2% 33 2% 133 EBIT 155 51 202% 16
Slide 9: Resource allocation & Key financial ratios
Resource allocation & Key financial ratios Efficient Capital Allocation Creating and sustaining an Social And Borrowing Working Capital enabling external Relationship environment for the ` 19 crore ` 72 crore business to flourish Financial Funds are being invested in Rs. various CAPEX projects 1
Slide 10: Q1 FY22 Segment Highlights – Inorganic Chemicals
Q1 FY22 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Performance Highlights Particulars Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q Y-o-Y performance is not comparable due to CoVID pandemic last year same quarter. Revenue 527 346 53% 531 (1)% 1% drop on Q-o-Q basis in revenue due to lower EBI
Slide 11: Q1 FY22 Segment Highlights – Textiles
Q1 FY22 Segment Highlights – Textiles (Rs. In Crore) Performance Highlights Particulars Q1 FY22 Q1 FY21 Y-o-Y Q4 FY21 Q-o-Q Revenues grew by 13% Q-o-Q and 247% Y-o-Y, fueled by consistent volume gains and better pricing Revenue 327 94 247% 290 13% scenario for end products. EBITDA 77 4 1612% 53 44
Slide 12: Recent updates
Recent updates Crowned with Great place to work recognition for 5th Credit rating has been upgraded to “AA-” from “A+”. time in a row; 5 notch upgrade in last 6 years. 7 point jump this year, Trust Index from 80 to 87; Top hundred companies are at the index of 86. Recognized among one of t
Slide 13: Demerger of the Textiles business of GHCL
Demerger of the Textiles business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Textiles business of GHCL will be demerged into a Focused separate Company growth Shareholders of GHCL will be allotted shares in the new company in the swap ratio of 1:1, one share of
Slide 14: Strong Institutional & HNI Holding – ~43.6%
Strong Institutional & HNI Holding – ~43.6% Mutual Funds 17.04% Promoters & Promoters Group 19.18% Foreign Portfolio Investors 17.23% Insurance Companies / Financial Institutions / Banks 3.71% HNI’s Non Institutional Holding 5.57% (Incl. Corporates) 37.27% 13 Note: Shareholding as of June 30, 2021;
Slide 15: Focus on driving responsible future growth
Focus on driving responsible future growth Inorganic Textiles Chemicals Debottlenecking of existing soda ash facility by 50k MT, Expansion of Spinning facility. along with modular greenfield project. Focus on green energy. Doubling RBC Capacity from 60k to 120K MT. Value added and Quality
Slide 16: Company Overview
Company Overview 15
Slide 17: GHCL – An Introduction
GHCL – An Introduction Best-in-class Focused management Targeting Operations management approach To grow profits at a CAGR 15%-18% on a long term horizon CAPEX planning and execution Strategy led by professional To inculcate value systems that defines our culture Financial management m
Slide 18: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda experience ash player in India Professionally managed Listed on 2 workforce premier stock exchanges of India Focus to emerge as a sustainable business Business Philosophy organization of Inclusive growth of all stakeholders 17
Slide 19: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA which was further increased to 5.25 Lakh MTPA 1988-2000 Commenced Edible Salt Production and Launched ‘Sapan’ salt Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequentl
Slide 20: Sustainability Vision 2023
Sustainability Vision 2023 GHCL’s business goals include Zero harm sustainability. To embed Zero reportable injuries Zero environmental incidences sustainability in business and operations, concentrating Responsible steward attention on material concerns 20% specific freshwater consumption red
Slide 21: Core Values at forefront
Core Values at forefront GHCL is an unique work place which is dotted with its Core Values, defining its culture. Every employee in the Company is expected to imbibe its Core Values and interact within the business Integrated ecosystem with all its Respect Trust Ownership teamwork stakeholders a
Slide 22: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Textiles) Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain R S Jalan (Independent Director) (Ind
Slide 23: Inorganic Chemicals
Inorganic Chemicals 22
Slide 24: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 25: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT Soda Ash Market Outlook Soda Ash and it’s consuming industries has shown signs of recovery but still hasn’t reached pre-Covid levels. Recurrence of CAPACITY: 14.5 MMT Covid cases in few regions, high energy price
Slide 26: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Market Share Domestic Demand & Growth Trend 27% (CAGR Growth of 5% during period upto FY 21) 25% 23% 20% 31 31 33 34 36 40 40 41 38 23 25 25 26 28 28 5% 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tata GHCL Nirma Others Im
Slide 27: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Historically, no mismatches in Demand supply as supply Scenario always followed demand globally Sustaining high utilization rates while maintaining periodic Excellence in Execution enhancement in capacities. Achieved through
Slide 28: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 27
Slide 29: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Domestic Demand Share Import 13% Doubled capacity DCW 9% from 30,000 to Nirma 13% 60,000 MT in GHCL 21% December 2017 Tata Chem 45% Generally Domestic Demand Concentration Specialization and named as baking West 16% experience in soda, bread South 21% manufac
Slide 30: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase; could be a game changer Animal Feed Chemicals 29
Slide 31: Consumer Products
Consumer Products Expansion and diversification in Consumer Products Division Premium edible Salt Manufacturer in South India Expansion of product portfolio under the brand i-FLO Venturing into the Premium Honey Category Introduction of new powdered spices Entry into new markets in Maharas
Slide 32: Marquee Clients
Marquee Clients GUJARAT BOROSIL LIMITED 6 bi CFENA Man inbors FERENTNS
Slide 33: Textiles Segment
Textiles Segment
Slide 34: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Innovation Sustainability Traceability Exceeding Expectations 33
Slide 35: Leveraging technology for end to end traceability – True trace
Leveraging technology for end to end traceability – “True trace” One of unique inhouse development for complete traceability of product 34
Slide 36: Complete Integration improving the efficiency
Complete Integration improving the efficiency PRESENCE ACROSS VALUE CHAIN 1.85 Lacs Spindles, 3,320 Rotors, 12 Mn Meters 45 Mn Meters 30 Mn Meters 5,760 TFO Drums, 5 Air Jet Spinning Bed Machines Fabric Sheets & Spinning Weaving Processing Cut & Sew Made-up’s Also sold in Market Sold in Market Spi
Slide 37: Marquee Clients
Marquee Clients id BZ Revman Internatior BED BATH KOHLES ff BED BATHS | HBC SainsburyS — amazoncom sl, “. ave Walmart.com
Slide 38: Reinventing the top: REKOOP
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL 37
Slide 39: Awards & Recognitions
Awards & Recognitions Referred as Great Place to 5 Notch Upgrades in last 6 years Mine Award SIMA Technofacts Award work in five consecutive years GHCL Limestones Mines received GHCL Yarn division received SIMA of participation Mine award under A2 category at Technofacts Award at the 13th CEO 26th M
Slide 40: About Us
About Us GHCL Limited was incorporated on 14th October, 1983. The Company has For more information, please visit us at established itself as a well-diversified group with an ascertained footprint in www.ghcl.co.in chemicals, textiles and consumer products segments. In chemicals, the Company mainly m
Slide 41: Thank You
Thank You 40