Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q1 FY2007 Earnings Presentation
19 slides from Meghmani Organics's earnings presentation, 2006
Slide 1: Meghmani Organics Limited 1Q FY07 Results
Meghmani Organics Limited 1Q FY07 Results
Slide 2: Key Highlights
Key Highlights Sales … of Rs1.0 billion, +17.3% Gross … of Rs220.0 million, +12.5% profit Operating … of Rs127.8 million, +14.4% profit Net profit … of Rs108.0 million, +6.9% EPS … of Rs45 cents, +18.4%
Slide 3: Financial Highlights
Financial Highlights In Rs millions 1Q07 1Q06 % Chg Revenue 1,014.3 864.8 17.3 Gross Profit 220.0 195.5 12.5 Profit from ops 127.8 111.7 14.4 Profit before tax (PBT) 108.0 101.0 6.9 Income tax (17.6) (24.0) (26.5) Profit after tax (PAT) 90.4 77.0 17.3 Gross margin (%) 21.7 22.6 - PBT margin (%) 10.7
Slide 4: Balance Sheet Highlights
Balance Sheet Highlights In Rs million 1Q 07 1Q 06 FY 06 (30 Jun 06) (30 Jun 05) (31 Mar 06) Trade receivables 1,646.8 1,324.9 1,545.1 Inventories 896.3 724.5 842.5 Cash & bank balances 108.5 106.7 57.3 Shareholders’ equity 2,568.5 2,248.9 2461.8 NTA per share Rs12.80 Rs11.21 Rs12.27 Inventory turno
Slide 5: 1Q Performance
1Q 07 Performance
Slide 6: Revenue
Revenue % 1 7.3 Rs'm + 1,000 Agrochemicals domestic sales +9.4% 507.5 Increased acceptability of 486.6 formulation products 500 Contribution from new markets +27.7% in Domestic sales from 489.1 Chlorpyriphos and CMAC 359.1 0 1Q06 1Q07 Pigments export sales +37.6% CPC Blue, Beta Blue and
Slide 7: Revenue by Business Division
Revenue by Business Division 1.8% 2.9% 50.0% By Business Division 45.4% • Agrochemicals +4.3% to Rs507.5m 51.7% 48.2% • Pigments +36.2% to Rs489.1m • Others -7.5% to Rs17.7m Pigments Agrochem Others
Slide 8: Revenue by Geographical Market
Revenue by Geographical Market 1Q 07 By Geographical Market • Export sales +17.0% to Rs 754.5m 25.6% • Domestic sales +18.1% to Rs 259.8m 25.4% 1Q 06 74.6% 9.0% 74.4% 7.1% Africa 4.9% 12.3% Asia (Ex. India) 7.8% 11.8% 20.9% Export Domestic Australia 2.0% 1.4% 25.5% Europe India 23.5% North America 2
Slide 9: Profit
Profit Gross Profit Rs'm % 13.0 250 + 200 115.7 150 Driven by higher sales of Pigments 106.5 in Export and Domestic markets 100 Improved sales price 50 103.1 Higher sales of Chlorpyriphos and 87.2 agro formulations 0 1Q06 1Q07 Pigments Agrochemicals
Slide 10: Gross Margin Analysis
Gross Margin Analysis Gross Margin 1Q07 (%) 1Q06 (%) Chg (% pts) Pigments 21.1 24.3 - 3.2 Agrochemicals 22.8 21.9 + 0.9 Total 21.7 22.7 - 0.9 Pigments gross margins affected due to : Higher RM costs for Panoli and Vatva plants Higher crude oil prices > higher prices of derivatives Agrochemic
Slide 11: Cost Structure
Cost Structure As % of revenue In Rs’m 1Q07 1Q06 % Chg 1Q07 1Q06 COS (794.3) (669.3) 18.7 78.3 77.4 Distribution (96.1) (69.8) 37.7 9.5 8.1 expenses Admin. (29.3) (29.8) (1.7) 2.9 3.4 expenses Other operating 23.0 (3.9) - 2.3 0.4 expenses Finance cost (22.3) (10.9) 105.2 2.2 1.3 Costs increase in ta
Slide 12: Capacity Utilisation: Pigments
Capacity Utilisation: Pigments MT pa % 12,000 Installed capacity Utlisation 200% 10,000 150% 8,000 6,000 84% 83% 85% 100% 78% 4,000 45% 10,200 50% 2,000 3,600 1,200 600 600 0 0% Alpha Blue Beta Blue CPC Blue Additives PG 7 Pigment
Slide 13: Capacity Utilisation: Agrochemicals
Capacity Utilisation: Agrochemicals MT pa % Installed capacity Utlisation 1,600 250% 209% 1,400 202% 200% 1,200 1,000 1,500 150% 113% 800 83% 84% 100% 600 1,200 58% 1,000 900 400 750 31% 26% 50% 750 200 60 261 0 0% Cypermethrin Permethrin Cypermethrin Chlorpyriphos MPB/MPBA CMAC# CMAC/CMA Acephate A
Slide 14: Outlook & Business Strategies
Outlook & Business Strategies
Slide 15: Industry prospects
Industry prospects Shifts in consumption patterns from metal based Pigments inorganic pigments to organic pigments Agro- Growth in demand for new generation molecules chemicals group such as Neonecotinoids
Slide 16: FY2007 outlook
FY2007 outlook Raw • Crude oil price > derivatives: Phathlic, Ortho Nitro Toluene & material solvents prices • Bullish trend in metal market Æ Copper & aluminum prices Market • Recovering sale prices of pigments & agro products prices • Continued negotiations to pass price increases to customers Pro
Slide 17: Growth strategies: Pigments
Growth strategies: Pigments Expand production capacity Expand product range • Installed facility to manufacture 17 DA • Focus on high margin & performance additives pigments - PB60 and PG36 • Set up pilot plant and Laboratory to • Production of Pigment Additives manufacture High Performance Pigments
Slide 18: Growth strategies: Agrochemicals
Growth strategies: Agrochemicals Expand production capacity Expand product range • Installed multi-faceted facilities at Ankleshwar • Develop manufacturing processes for off-patent for Permethrin, Alpha Cypermethrin and generic pesticides Acephate • Invested in Tri Cholo Acid Choride (TCAC) plant •
Slide 19: Thank You Q & As
Q & As ‘, Tue Ay ees p pry! ‘ i) le