Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Investor Presentation (January 2024)
36 slides from Himadri Speciality Chemical's investor presentation, January 2024
Slide 1: Transformation Unfolds..
TRANSFORMATION UNFOLDS.. Sustainable High Growth Capital Disciplined Business Opportunity Balance Sheet Investor Presentation | Jan 2024
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 3: Sustainable Financial Performance
Sustainable Financial Performance Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition ESG-focused innovations
Slide 4: Strong and Sustainable Growth
Strong and Sustainable Growth ✓ ✓ ✓ Record Sales Volumes Record EBITDA in Q3FY24 Record PAT in Q3FY24 in Q3FY24 EBITDA increased by Sales Volumes of 1,24,024 PAT increased by 71% to 59% to Rs. 169 Crores in MT in Q3FY24 Rs. 108 Crores in Q3FY24 Q3FY24 Sales Volume consistent above 95,000 MT in last
Slide 5: Performance Trajectory Continues
Performance Trajectory Continues Sales Volume (MT) Revenue (Rs. In Crs) Sales Volumes Increase in volumes in each consecutive quarter +26% +1% 1,24,024 1,037 1,029 1,053 1,005 1,10,211 951 98,107 99,989 1,01,030 Revenues Maintained Revenues with the focus of increasing profitability Q3FY23 Q4FY23 Q1
Slide 6: Performance Trajectory Continues
Performance Trajectory Continues EBITDA (Rs. In Crs) PAT (Rs. In Crs) EBITDA Change in Product Mix and Operating Efficiency 59% 71% 169 108 156 101 88 131 122 77 106 63 PAT Capital Disciplined Growth with the aim to improve shareholder returns Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24
Slide 7: Performance Trajectory Continues
Performance Trajectory Continues Sales Volume (MT) Revenue (Rs. In Crs) EBITDA (Rs. In Crs) PAT (Rs. In Crs) +10% +59% +126% -4% 3,35,265 3,143 456 296 3,008 3,03,838 287 131 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Increase in profitability due to consistent move towards value added
Slide 8: Standalone Profit & Loss Statement – Q3 & 9M FY24
Standalone Profit & Loss Statement – Q3 & 9M FY24 Particulars (In Rs. Crs) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q 9MFY24 9MFY23 Y-o-Y Net Revenue From Operations 1,052.51 1,037.39 1.46% 1,004.52 4.78% 3,007.94 3,142.94 -4.30% Cost of Materials Consumed 756.34 823.40 725.71 2,182.47 2,485.09 Gross Profit 2
Slide 9: Consolidated Profit & Loss Statement – Q3 & 9M FY24
Consolidated Profit & Loss Statement – Q3 & 9M FY24 Particulars (In Rs. Crs) Q3FY24 Q3FY23 Y-o-Y Q2FY24 Q-o-Q 9MFY24 9MFY23 Y-o-Y Net Revenue From Operations 1052.51 1037.39 1.46% 1,004.52 4.78% 3007.94 3142.94 -4.30% Cost of Materials Consumed 754.45 820.14 724.59 2179.90 2473.36 Gross Profit 298.0
Slide 10: Himadri LFP Cathode Capex
Sustainable Financial Performance Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition ESG-focused innovations
Slide 11: Himadri LFP Cathode Vision
Himadri LFP Cathode Vision Bringing breakthrough Innovation to Sustainable Sourcing the Indian and Global LiB Industry To produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion o Long term partnership with lithium Battery, in phases in 5-6 years o
Slide 12: Where we play a role
Where we play a role HIMADRI’S PRESENCE Lithium Chemicals Cathode Active Material Upstream Downstream Refining of Lithium Best in Class & Exploration & Mining Concentrate to Lithium Sustainable Cathode Cell Manufacturing Carbonate and Lithium Active Material Hydroxide Production 12
Slide 13: Cathode Material Dynamics: Himadri's Strategic Advancements
Cathode Material Dynamics : Himadri’s Strategic Advancements Pioneering Innovation and Sustainable Growth in Cathode Material Landscape Large Global and Domestic Opportunity Market Projection : Cathode Material demand to reach 9.4 million tonnes annually by 2030 for global LiB cell production Domest
Slide 14: Birla Tyres Ltd - Acquisition
Sustainable Financial Performance Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition ESG-focused innovations
Slide 15: Birla Tyres Ltd - Acquisition Highlights
Birla Tyres Ltd - Acquisition Highlights ▪ Himadri Speciality Chemical Ltd (HSCL, Strategic Partner) along with Resolution Applicant - Dalmia Bharat Refractories Limited (DBRL) participated in the corporate insolvency resolution process of Birla Tyres Limited. ▪ LOI from the Resolution Professional
Slide 16: Value Acquisition
Value Acquisition The total acquisition cost is Rs. 306 Crores. Additional capex is required to make the plant fully operational. For Himadri Speciality Chemical Limited The replacement cost Time consumed to Forward integration Eligible for investment Sufficient land available for creating such a cr
Slide 17: Sustainability
Sustainability Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition ESG-focused innovations
Slide 18: EcoVadis Rating: Silver Medal
EcoVadis Rating : Silver Medal Himadri Speciality Chemical Ltd has recently been awarded with EcoVadis Silver Medal. This recognition ranks Himadri in the top 23% of the highest-rated companies in the world amongst more than 100,000+ rated companies. EcoVadis is one of the world’s largest and most t
Slide 19: Where Sustainability Meets Innovation
Where Sustainability Meets Innovation POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 19
Slide 20: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a More than 90% of the green, long-term EV and power requirement being renewable energy solution met by inhouse generated by providing critical raw clean and green power material Energy Conservation through Waste Heat Recover
Slide 21: Net Zero Roadmap
Net Zero Roadmap Research Adapt • Explore innovative methods for capturing • Implement new energy sources and and transforming carbon emissions. technology advancements. • Utilize upcoming technologies to capture • Integrate renewable energy solutions for and convert carbon dioxide into value- reduc
Slide 22: Net Zero Roadmap (Scope 1 & 2)
Net Zero Roadmap (Scope 1 & 2) Scope 3 – Assessment is going on. At exit of 2023 we shall strategize the same as well Reduce 10% by 2025 Reduce 10% 2030 Reduce 80% 2050 Reduce emissions by improving and Adapt and implement circular ACHIEVE NET-ZERO EMISSION using greener technologies material-focuse
Slide 23: Status of Sustainability Objectives
Status of Sustainability Objectives Objectives Measures Target FY2023 FY2023 Progress Main Domain UNGC -SDGs (Baseline Progress vs (1st Apr'22 - 31st 2021) Plan Mar’23) Vison Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1 <1 2.27 People By 2025, Reduce Energy Intensity per
Slide 24: Growth Opportunities
Growth Opportunities
Slide 25: HSCL: Transformation Unfolds
HSCL : Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon Black » Graphite Grade Binder Pitch 2010 » Grap
Slide 26: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 26
Slide 27: Marquee Clients across Industries
Marquee Clients across Industries The brand names/logos mentioned are the property of their respective owners and are used here for identification purpose only 27
Slide 28: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 29: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobil
Slide 30: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO2 emission The Global Availability of
Slide 31: Primary Cathode Active Material Used now – NMC & LFP
Primary Cathode Active Material Used now – NMC & LFP Safety Working of LFP battery fast charging Spec. capabilities energy LFP batteries use lithium iron phosphate as the cathode material alongside a graphite electrode with a metallic backing as the anode. cost Spec. power lifespan Unlike many catho
Slide 32: Birla Tyres Limited – Turnaround Opportunity
Birla Tyres Limited – Turnaround Opportunity Having successfully forward integrated from Oil to Carbon Black, then to Speciality Carbon Black, Himadri stands at the threshold of an exciting transformation moving forward towards end customer, venturing into the world of Tyres Existing capability Stra
Slide 33: Strong Balance Sheet with Growing Returns
Strong Balance Sheet with Growing Returns Net Debt (Rs. In Crs) Net Debt to EBITDA ROCE (excl. investment & CWIP) 583 569 4.57x 19% 17% 315 1.95x 200 6% 1.11x 5% 0.49x Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Long term debt reduced by Rs 20 crs
Slide 34: Capital Disciplined Balance Sheet
Capital Disciplined Balance Sheet Net Debt (Rs. In Crs) Long Term Borrowings (Rs. In Crs) Significant reduction 583 569 in Long Term Debt 124 132 315 200 93 73 Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Net Debt to EBITDA Net Working Capital Days 4.57x 153 116 1.95x 62 69 1.11x 0.49x Ma
Slide 35: Key Takeaways
Key Takeaways Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Strong Brand Location Team Transformation Unfolds Addressing the needs of
Slide 36: Thank You
Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika EVP - CTD & Strategy Email: ssatnalika@himadri.com www.himadri.com Thank You Investor Relations Advisors : Ms. Payal Dave : +91 9819916314 payal.dave@linkintime.co.in Mr. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in www.orientcap.
Himadri Speciality Chemical — Investor Presentation (January 2024) on 6ix