Bhageria Industries Ltd. · NSE:BHAGERIA
Bhageria Industries — Q3 FY2019 Earnings Presentation
29 slides from Bhageria Industries's earnings presentation, Jan 31, 2019
Slide 1: Covering letter to NSE and BSE
BHAGERIA INDUSTRIES LIMITED Tel. 01- '22- 40436660 REGD. 0FF.: OFFICE NO. 1002, 10TH FLOOR, TOPIWALA CENTRE, OFF S.V. ROAD, Ema|l_: mfo@bhagerlagroup.com WebSIte : NEAR GOREGAON RAILWAY STATION, GOREGAON (WEST), MUMBAI - 400 062. www.bhagerlagroup.com CIN : L40300MH1989PLCO§2574 January 31, 2019. To
Slide 2: Bhageria Industries Ltd Investor Presentation January 2019
BHAGERIA INDUSTRIES LTD INVESTOR PRESENTATION January 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bhageria Industries 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 s
Slide 4: Index
Index 01 Q3 & 9M FY19 Result Highlights 02 Company Overview 03 Growth Strategy 04 Financial Highlights 3
Slide 5: Q3 & 9M FY19 Result Highlights
Q3 & 9M FY19 RESULT HIGHLIGHTS
Slide 6: Q3 & 9MFY19 Result Highlights
Q3 & 9MFY19 Result Highlights Revenue (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) 21% -5% 115.1 7% 30.2 28.8 15.1 14.1 94.8 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Revenue (Rs Cr) EBITDA (Rs Cr) PAT (Rs Cr) 28% 356.3 55% 107.6 61.2 106% 277.6 69.3 29.7 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 Interim Divi
Slide 7: Exports Contributing to 35% of Revenues
Exports Contributing to 35% of Revenues For 9MFY19 Domestic Exports 65% 35% Europe Rest Of Asia 3% 66% China US 30% 3% Increasing geographical diversification Adding newer geographies & clients: Increased penetration to the China & other Asian markets 6
Slide 8: Debt Free; Only WC Loan
Debt Free; Only WC Loan DEBT (Rs Cr) 145 Repaid over Rs 120 crore debt since Mar’17 86.9 83 38.7 42 20-25 2.2 52.6 34 36.8 23.3 Mar'17 Mar'18 Sept'18 Dec'18 Mar'19E Long term solar debt Working capital loan Short term solar debt 7
Slide 9: Successful Commissioning of Solar Project
Successful Commissioning of Solar Project Total Revenue from solar business: Q3FY19 – Rs 8.6 cr 9MFY19 - Rs 23.2 cr PLF (30MW) – 24* Solar project fully commissioned in Maharashtra 25 year PPA with Solar Energy Corporation of India (SECI) Capacity - 30MW Tariff – Rs 4.41/unit Total project c
Slide 10: Q3FY19 and 9MFY19 P&L
Q3FY19 and 9MFY19 P&L Rs Cr Q3FY19 Q3FY18 % Change 9MFY19 9MFY18 % Change Net Sales 112.1 90.6 23.7% 346.9 269.0 29.0% Cost of Materials Consumed 71.0 50.2 41.6% 201.6 160.6 25.5% Employee Benefit Expense 3.4 3.5 -4.8% 9.5 9.5 0.0% Other Expenses 11.9 10.9 9.8% 37.7 38.1 -1.2% Total Expenses 86.3 64
Slide 11: Capex
Capex • Capex of Rs 100 crs to be incurred in the next 2 years • Backward Integration into manufacturing of sulphuric acid Consent received from Maharashtra Pollution Control Board (MPCB) Sulphuric acid & derivatives (Capacity of 250 TPD) 25% oleum (Capacity of 10 TPD) 65% oleum (Capacity of
Slide 12: Company Overview
COMPANY OVERVIEW
Slide 13: Company Snapshot
Company Snapshot Dye Intermediates 2 10+ H-Acid Manufacturing Ship-to-countries Vinyl Sulphone Gamma Acid plants 373 21% 500+ Revenue in EBITDA Margin Employees Rs Cr (FY18) (FY18) 33% EPS Dividend Return on Capital Employed Rs 18.5 per share Rs 5.5 per share (FY18 chemical biz) (FY18) (FV Rs.5) (11
Slide 14: History and Evolution
History and Evolution Beginning Expansion Growth Next level… 1989-2002 2003-2010 2010-2015 2016-2018… Entered the dye Expanded Expansion - H-Acid Crossed Rs 40 intermediates capacity of Vinyl & Gamma Acid crores of PAT business by setting Sulphone up a Vinyl Started exporting Listed with NSE Sulphon
Slide 15: Manufacturing Facilities
Manufacturing Facilities Vapi, Gujarat - Vinyl Sulphone Boisar, Maharshtra - H-Acid/Gamma Acid o Spread over 25 acres; land available for o Located in chemical belt of Gujarat expansion o Best pollution control facilities o Captive solar power plant All facilities are moving towards zero discharge b
Slide 16: Leading Manufacturer across Dye Intermediates
Leading Manufacturer across Dye Intermediates… Gamma Acid H-acid Vinyl Sulphone 30% 13% 5% Market share of total global capacity* Amongst the leading 3 manufacturers of H-Acid and Gamma Acid Total Capacity of Dye Intermediates ~9,500 TPA 15 *Industry sources & management estimates
Slide 17: With margin leadership in the industry
.. With margin leadership in the industry Cost optimization 95%+ Capacity Consistently strong through various utilisation EBITDA margins initiatives EBITDA Margin (%) • Sourcing of raw materials Bulk purchases which saves cost 30.2 Proximity to sources of raw material 20.7 • Strategically locate
Slide 18: Long Term Client Partnerships
Long Term Client Partnerships Domestic Clients Global Clients PT Sinar Domestic Clients 17
Slide 19: Promoters with significant industry experience
Promoters with significant industry experience Suresh Bhageria Chairman • Has experience of more than 30 years in the Dyes & Dyes Intermediates Industry of Drugs and Pharmaceuticals • Holds a degree in Bachelor of Commerce Vinod Bhageria Managing Director • Has experience of more than 30 years in th
Slide 20: Supported by Board of Directors
Supported by Board of Directors SP Tulsian Surendra Gupta Independent Director Independent Director A renowned market analyst with rich Has expertise in taxation having experience of experience of over 36 years; a over 2 decades. He is a well known commerce and law graduate, holds philanthropist & h
Slide 21: Award and Accreditations
Award and Accreditations CHEMEXCIL CHEMEXCIL CHEMEXCIL First Award Gold Award Award for Outstanding Performance in the Small Scale Sector Dyes & Dyes Export of Dyes & Dye Year 2015-16 Intermediaries Panel Intermediates Panel Year 2007-08 Year 2006-07 20
Slide 22: CSR Activities
CSR Activities Heath & Safety Village Sanitation Eye Care Donated cataract operation Installed water purification equipments to Param Shakti Construction of toilets at plant at Kamptee & Peeth, a non-profit Kachhi Gaam, Vapi organization serving the Mauda at Nagpur underprivileged in Mathura Rs 1.8c
Slide 23: Focus on Safety, Health & Environment
Focus on Safety, Health & Environment Safety Health Environment o Safety representative For o Air pollution Management o In-house occupational Health each plant. Center o Member of CETP,TEPS & o Fire hydrant for each plant MWML o Part time doctor o Safety training o Recover & re-use o Medical repres
Slide 24: Annual Financial Highlights
ANNUAL FINANCIAL HIGHLIGHTS
Slide 25: Robust Growth in Revenue and Profitability
Robust Growth in Revenue and Profitability Rs cr Revenue* EBITDA & EBITDA margins PAT & PAT margins 11.1% 16.3% 20.7% 6.4% 11.3% 10.5% 374 373 79.9 43.5 40.3 62.4 239 26.5 15.4 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 25% CAGR growth 73% CAGR growth 62% CAGR growth *net of Excise and GST 24
Slide 26: Consistent Dividend Paying Track Record
Consistent Dividend Paying Track Record Dividend Payout Dividend % of profit % of face value 110 29.8 100 26.0 18.1 18.3 50 50 10.9 35 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Highest ever dividend paid Rs 5.5 per share in FY18 (110% of face value) Consistently paying dividend each year sin
Slide 27: Annual Profitability Highlights
Annual Profitability Highlights Rs Cr FY16 FY17 FY18 Net Sales 238.5 373.5 373.3 Cost of Materials Consumed 146.2 215.5 224.0 Employee Benefit Expense 3.9 9.7 13.9 Other Expenses 61.9 85.9 55.7 Total Expenses 211.9 311.1 293.5 EBITDA 26.5 62.4 79.8 EBITDA margin 11.1% 16.3% 20.7% Other Income 1.9 10
Slide 28: Balance Sheet
Balance Sheet Rs Cr Sep ’ 18 Mar’ 18 Rs Cr Sep ’ 18 Mar’ 18 Share Capital 10.9 7.9 Fixed Assets incl. CWIP 303.6 300.2 Equity Shares Pending Allotment -- 2.9 Long Term Loans & Advances 2.1 2.2 Reserves 315.9 284.4 Shareholders' Funds 326.9 295.3 Total Non-Current Assets 302.3 305.8 Long Term Borrowi
Slide 29: Thank You
Thank You Mr. Rakesh Kachhadiya / Mr. Bhavesh Kikani accounts.mumbai@bhageriagroup.com / bhavesh@bhageriagroup.com 1002, 10th Flr, Topiwala Centre, Off S.V road, Goregaon (W), Mumbai Mr. Rajeev Menon/Ms. Pooja Dokania rajeev@credoadvisors.in / pooja@credoadvisors.in B/ 1011A, Kanakia Wall Street, An
Bhageria Industries — Q3 FY2019 Earnings Presentation on 6ix