National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q2 2021 Earnings Presentation
57 slides from National Fertilizers's earnings presentation, September 2020
Slide 1: Financial Performance for the Quarter / Half Year Ended September 20
FINANCIAL PERFORMANCE FOR THE QUARTER / HALF YEAR ENDED SEPTEMBER 20
Slide 2: Brief Overview
BRIEF OVERVIEW Introduction • Incorporated on 23rd August, 1974. • Share Capital details as on 30.09.2020. Authorized capital : Rs. 1,000.00 crore. Paid up capital : Rs. 490.58 crore. Net-worth : Rs. 2,117.09 crore. Shareholding Pattern as on 30.09.2020: Government of India 74.71% Financia
Slide 3: Brief on Urea Manufacturing Activities
BRIEF ON UREA MANUFACTURING ACTIVITIES UREA Vijaipur‐I Vijaipur‐ Bathinda Panipat Nangal II ANNUAL CAPACITY (Lakhs Metric Ton) – 8.646 8.646 5.115 5.115 4.785 32.31 LMT (Revised Assessed Capacity) Annual Capacity after Urea Capacity 9.999 10.662 5.115 5.115 4.785 Enhancement Projects at Vijaipur‐I &
Slide 4: Plant Locations, Marketing Territory, Port handling & JV
Plant Locations, Marketing Territory, Port handling &JV 4
Slide 5: Brief on Other Manufacturing Activities
BRIEF ON OTHER MANUFACTURING ACTIVITIES Other Manufacturing:‐ (Industrial Products, Bio‐Fertilizers , Technical Surplus Ammonia) etc. : S. No. Products Located in No. of Annual Capacity of each streams stream (MT) Industrial Products 1. Nitric acid Nangal 2* 69436 2. Ammonium Nitrate Nangal 2* 11880
Slide 6: Brief on Trading Activities (Sale Based)
BRIEF ON TRADING ACTIVITIES (Sale Based) Traded Goods : S. Products 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 No. Imported Fertilizers LMT LMT LMT LMT LMT 1. DAP (LMT) 0.51 2.14 3.28 5.04 6.85 2. MOP (LMT) ‐ ‐ 0.27 ‐ 0.74 3. APS (LMT) ‐ ‐ 0.26 0.26 0.39 4. NPK 12:32:16 (LMT) ‐ ‐ ‐ 0.68 0.50 5. NPK 10:
Slide 7: Production of Urea (Qty. in LMT)
Production of Urea (Qty. in LMT) Production of Urea Plants 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 NANGAL 5.47 5.02 5.43 5.41 5.75 PANIPAT 5.67 5.43 5.60 5.74 5.52 BATHINDA 5.48 5.68 5.63 5.84 5.63 VIJAIPUR- I 9.92 10.58 10.50 10.28 9.84 VIJAIPUR-II 11.44 11.39 10.95 11.32 10.53 TOTAL 37.99 38.10 38
Slide 8: Financial Performance at a Glance (Preceding 5 Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 5 Years) (Rs. crore) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 1 Production (Urea) (LMT) 37.99 38.10054 38.10250 38.59 37.27 2 Sale of Own Urea (LMT) 36.41 37.58 39.16 38.98 36.08 3 Sale of Other Fertilizers (LMT) 0.52 2.20 3.93 9.97 20.
Slide 9: Financial Performance at a Glance (Preceding 5 Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 5 Years) (Rs. crore) Particulars 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 SL. No. 19 Net Fixed Assets 4291 4109 4144 4127 4382 20 Working Capital 1487 1424 981 1144 532 21 Long Term Borrowings 1828 981 171 341 769 STL (without SBA) 4296 1989 2695 4670 6119
Slide 10: Sale of All Fertilizers (LMT)
Sale of All Fertilizers (LMT) All Fertilizers 60.00 57.03 55.00 50.00 48.95 45.00 43.09 Quantity in LMT 39.78 40.00 36.93 35.00 30.00 25.00 20.00 15.00 FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20 Period 10
Slide 11: Sales (Preceding 5 Years)
SALES (Preceding 5 Years) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 1 Sale of Own Urea (LMT) 36.41 37.58 39.16 38.98 36.08 2 Bio‐Fertilizers (LMT) 0.005 0.005 0.005 0.006 0.007 3 BS (LMT) ‐ ‐ ‐ 0.07 0.08 4 Sale of Traded Goods:‐ (Fertilizers) 1. DAP (LMT) 0.51 2.14 3.28 5.04 6.85 2
Slide 12: Performance for the Quarter Ended Sept-2020
PERFORMANCE FOR THE QUARTER ENDED SEPT-2020 12
Slide 13: Performance Highlights
PERFORMANCE HIGHLIGHTS Production of Urea of 9.11 LMT [CPLY 9.62 LMT],i.e. decrease of 0.51 LMT. Capacity utilization of 112.78% of RAC. Sale of total Urea 12.52 LMT [CPLY 14.06 LMT] including Urea imported on Govt. A/c., i.e. decrease of 1.54 LMT. Sale of DAP/MOP/APS/NPK 12:32:16/NPK 10:26:26
Slide 14: Overall Performance (Rs. crore)
OVERALL PERFORMANCE (Rs. crore) Particulars Qtr. CPLY Increase/(decrease) Sept 2020 Rs. crore % Total Revenue from Operation 3173.95 3736.18 (562.23) (15) Total Expenses (excluding Depreciation & 2908.56 3516.26 (607.70) (17) Finance Cost) Earnings before Interest, Tax Depreciation 265.39 219.92 45.
Slide 15: Revenue From Operation Growth
Revenue From Operation Growth Rs. 3173.95 crore (Qtr. Ended Sept‐20) (15.05%) Rs. 3736.18 crore (CPLY) Total revenue from operation is lower mainly due to decrease in sale value of own Urea by Rs 498.49 crore (due to reduction in gas price) and decrease in sale of Imported Urea by Rs 137.77 crore.
Slide 16: Profit/(Loss) before Tax (PBT)
Profit/(Loss) before Tax(PBT) Rs. 117.52 crore (Qtr. Ended Sept‐20) (401.37%) Rs. 23.44 crore (CPLY) 16
Slide 17: Sale of Fertilizers
Sale of Fertilizers LMT Particulars Qtr. Sept-20 CPLY Increase/(decrease) LMT LMT LMT % Sale of Manufactured Fertilizers Urea 10.28 9.80 0.48 5 Bio Fertilizers and Bentonite 0.07 0.03 0.04 133 Sulphur Total (A) 10.35 9.83 0.52 5 Sale of Traded Fertilizers Imported Urea (Govt. A/c) 2.24 4.26 (2.02) (
Slide 18: Production & Purchase of Fertilizers
Production & Purchase of Fertilizers LMT Particulars Qtr ended CPLY Increase/(decrease) Sept 20 LMT % Production Urea Production 9.11 9.62 (0.51) (5) Bio Fertilizers and Bentonite Sulphur Production 0.04 0.04 - - Total Production of all 9.15 9.66 (0.51) (5) Fertilizers (A) Purchase Imported Urea (Go
Slide 19: Zone wise sale of urea
Zone wise sale of urea (Including Imported Urea on Govt. Account) (Lakh MT) Zonal Offices July-Sept July-Sept Increase/ 2020 2019 (Decrease) Chandigarh Zone 4.81 4.31 0.50 Bhopal Zone 3.24 4.14 (0.90) Lucknow Zone 3.40 4.12 (0.72) Hyderabad Zone 1.07 1.49 (0.42) TOTAL 12.52 14.06 (1.54) Sale of Ur
Slide 20: Sale of DAP / MOP / APS / NPK / Compost / WSF / SSP
Sale of DAP / MOP /APS / NPK12:32:16 / NPK10:26:26 / COMPOST / WSF / SSP (Lakh MT) July – Sept July – Sept Increase/ Particulars 2020 2019 % (Decrease) DAP 2.61 1.98 0.63 32 MOP 0.13 0.22 (0.09) (42) APS 0.15 0.23 (0.08) (35) NPK 12:32:16 0.11 0.12 (0.01) (11) NPK 10:26:26 0.03 0.05 (0.02) (39) Comp
Slide 21: Details of Expenses (Excluding Depreciation and Finance Cost)
Details of Expenses (Excluding Depreciation and Finance Cost) Particulars Increase/ Key reasons Qtr. Sept 20 CPLY (Decrease) Production of urea (LMT) 9.11 9.62 (0.51) Due to plant shutdown / trippings. Sale of urea (Own) (LMT) 10.28 9.80 0.48 (Rs. Crore) (Rs. Crore) (Rs. Crore) Cost of Materials con
Slide 22: Urea Production
UREA PRODUCTION Lakh MT Unit July – Sept 2020 July – Sept 2019 Increase/(Decrease) Nangal 1.34 1.38 (0.04) Panipat 1.39 1.43 (0.04) Bathinda 1.50 1.45 0.05 Vijaipur I 2.01 2.48 (0.47)* Vijaipur II 2.87 2.88 (0.01) Total 9.11 9.62 Production of Urea during the quarter was lower at all units except
Slide 23: Production of Urea in Preceding Years (Q2)
Production of Urea in Preceding 5 Years (Qty. in LMT) Production of Urea for the 2nd Quarter (July to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units Q2 Q2 Q2 Q2 Q2 NANGAL 1.33 1.49 1.47 1.38 1.34 PANIPAT 1.32 1.48 1.31 1.43 1.39 BATHINDA 1.42 1.39 1.45 1.45 1.50 VIJAIPUR- I 2.74 2.73 2.61 2.48
Slide 24: On-Stream Days in Preceding Years
On-Stream Days in Preceding 5 Years (No. of Days) Stream Days for the 2nd Quarter (July to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units Q2 Q2 Q2 Q2 Q2 NANGAL 84 91 89 85 84 PANIPAT 81 92 81 89 88 BATHINDA 89 85 90 90 92 VIJAIPUR- I 91 90 87 81 71 VIJAIPUR-II 92 65 88 91 87 24
Slide 25: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Norms for Energy Norms for Actual Actual Units 2020‐21* 2019‐20* July‐Sept 20 July‐Sept19 Nangal 7.035 7.065 6.856 6.774 Panipat 7.503 7.558 7.078 7.072 Bathinda 7.381 7.430 6.765 6.998 Vijaipur I 5.864 5.884 5.913 6.093 Vijaipur II 5.500 5.500 5.445 5.454
Slide 26: Break up of Total Finance Cost
BREAK UP OF TOTAL FINANCE COST Rs. Crore Particulars Qtr. Sept 20 CPLY Increase/ (Decrease) Interest on Long Term Loans 2.15 4.09 (1.94) Total Interest on Long Term Loan (A) 2.15 4.09 (1.94) Interest on working capital Loans (excluding interest on trading activities) 48.02 63.38 (15.36) Other borrow
Slide 27: Analysis of Finance Cost on Working Capital
ANALYSIS OF FINANCE COST ON WORKING CAPITAL Rs. crore Increase/ Particulars Qtr. Sept-20 CPLY (Decrease) Interest on working capital Loans (excluding interest on trading activities) 48.02 63.38 (15.36) Interest on Trading Activities 25.47 43.07 (17.60) Other borrowing costs (CP related charges) 0.93
Slide 28: Performance for the Half Year Ended September-2020
PERFORMANCE FOR THE HALF YEAR ENDED SEPTEMBER-2020 28
Slide 29: Performance Highlights
PERFORMANCE HIGHLIGHTS Production of Urea of 18.49 LMT [CPLY 17.53 LMT],i.e. increase of 0.96 LMT. Capacity utilization of 114.44% of RAC. Sale of total Urea 23.39 LMT [CPLY 22.85 LMT] including Urea imported on Govt. A/c., i.e. increase of 0.54 LMT. Sale of DAP/MOP/APS/NPK 12:32:16/NPK 10:26:
Slide 30: Overall Performance
OVERALL PERFORMANCE (Rs. crore) Particulars HY CPLY Increase/(decrease) Sept. 2020 Rs. crore % Total Revenue from Operations 6005.80 6331.76 (325.96) (5) Total Expenses 5416.65 6046.12 (629.47) (10) Earnings before Interest, Tax Depreciation and Amortization (EBITDA) 589.15 285.64 303.51 106 EBITDA
Slide 31: Revenue From Operation Growth
Revenue From Operation Growth Rs. 6005.80 crore (HY Ended Sept‐20) (5.15%) Rs. 6331.76 crore (CPLY) Total revenue from operations is lower mainly due to decrease in sale value of own Urea by Rs 371.10 crore (due to reduction in gas price) and decrease in sale of Imported Urea by Rs 174.22 crore wh
Slide 32: Profit / (Loss) before tax (PBT)
Profit / (Loss) before tax (PBT) Rs. 269.02 crore (HY Ended Sept‐20) Rs. 342.34 crore Rs. (73.32) crore (CPLY) 32
Slide 33: Sale of Fertilizers (Lakh MT)
Sale of Fertilizers (Lakh MT) Particulars HY ended CPLY Increase/ % Sept 20 LMT (Decrease) Sale of Manufactured Fertilizers Own Urea 20.30 17.40 2.90 17 Bio Fertilizers and Bentonite Sulphur 0.10 0.04 0.06 150 Total (A) 20.40 17.44 2.96 17 Sale of Traded Fertilizers Imported Urea (Govt. A/c) 3.09 5.
Slide 34: Production & Purchase
PRODUCTION & PURCHASE LMT Particulars HY ended HY Increase/(decrease) Sept 20 ended LMT % Sept 19 Production Urea Production 18.49 17.53 0.96 5 Bio Fertilizers and Bentonite Sulphur 0.06 0.06 - - Production Total Production of all fertilizers (A) 18.55 17.59 0.96 5 Purchase Purchase of Imported Fert
Slide 35: Zone wise sale of urea
Zone wise sale of urea (Including Imported Urea on Govt. Account) (Lakh MT) Zonal Offices April – Sept CPLY Increase/ 2020 (Decrease) Chandigarh Zone 9.21 8.28 0.93 Bhopal Zone 6.19 6.46 (0.27) Lucknow Zone 6.14 6.32 (0.18) Hyderabad Zone 1.85 1.79 0.06 TOTAL 23.39 22.85 0.54 Sale of Urea at Bhopa
Slide 36: Sale of DAP/MOP/APS/NPK/Compost/WSF/SSP
Sale of DAP/MOP/APS/NPK12:32:16/NPK10:26:26/COMPOST/ WSF/ SSP (Lakh MT) Particulars April – Sept 20 April – Sept 19 Increase/ % (Decrease) DAP 3.69 3.32 0.37 11 MOP 0.41 0.23 0.18 76 APS 0.41 0.23 0.18 78 NPK 0.25 0.18 0.07 36 NPK 10:26:26 0.14 0.08 0.06 77 Compost 0.11 0.10 0.01 11 Water Soluble Fe
Slide 37: Details of Expenses (Excluding Depreciation and Finance Cost)
Details of Expenses (Excluding Depreciation and Finance Cost) Particulars HY ended HY ended Increase/ Key reasons Sept 20 Sept 19 (Decrease) Production of urea (LMT) 18.49 17.53 0.96 Sale of urea (Own) (LMT) 20.30 17.40 2.90 (Rs. Crore) (Rs. Crore) (Rs. Crore) Cost of Materials 1624.30 2224.56 (600.
Slide 38: Urea Production
UREA PRODUCTION Lakh MT Units April‐Sept 20 CPLY Increase/(Decrease) Nangal 2.78 2.84 (0.06) Panipat 2.84 0.17 2.67 Bathinda 2.81 2.58 0.23 Vijaipur I 4.67 4.41 0.26 Vijaipur II 5.39 0.36 5.03 Total 18.49 17.53 Production of Urea was higher at all units except Nangal unit. Decrease in production a
Slide 39: Production of Urea in Preceding Years (Half Year)
Production of Urea in Preceding 5 Years (Qty. in LMT) Production of Urea for the Half Year (Apr to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units HY HY HY HY HY NANGAL 2.38 2.87 2.50 2.84 2.78 PANIPAT 2.52 2.92 2.76 2.67 2.84 BATHINDA 2.84 2.61 2.91 2.58 2.81 VIJAIPUR- I 5.37 5.09 4.96 4.41 4.6
Slide 40: On-Stream Days in Preceding Years
On-Stream Days in Preceding 5 Years (No. of Days) On‐Stream Days in the Half Year (Apr to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Units HY HY HY HY HY NANGAL 151 175 156 173 172 PANIPAT 157 180 172 165 179 BATHINDA 178 161 179 161 175 VIJAIPUR- I 178 169 165 147 162 VIJAIPUR-II 166 155 174 158
Slide 41: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Norms for Energy Norms Actual Energy Units First HY 2020‐21* for 2019‐20* April‐Sept 20 CPLY Nangal 7.035 7.065 6.796 6.757 Panipat 7.503 7.558 6.941 7.049 Bathinda 7.381 7.430 6.915 7.089 Vijaipur I 5.864 5.884 5.863 6.160 Vijaipur II 5.500 5.500 5.545 5.
Slide 42: Profit Variance Analysis
PROFIT VARIANCE ANALYSIS Company has earned Profit before tax of Rs. 269.02 crore during the half year ended Sep‐20 as against Loss before tax of Rs. 73.32 crore during CPLY i.e. increase in profit by Rs. 342.34 crore. The various reasons for increase in PBT are as follows: PBT has increased mainly
Slide 43: Break up of Total Finance Cost
BREAK UP OF TOTAL FINANCE COST Rs. crore Particulars HY ended Sept 20 CPLY Increase/ (Decrease) Interest on Long Term Loans 4.88 5.70 (0.82) Total Interest on Long Term Loan (A) 4.88 5.70 (0.82) Interest on working capital Loans 134.28 151.44 (17.16) (excluding interest on trading activities) Other
Slide 44: Analysis of Finance Cost on Working Capital
ANALYSIS OF FINANCE COST ON WORKING CAPITAL Rs. crore Increase/ Particulars HY ended Sept 20 CPLY (Decrease) Interest on working capital Loans (excluding interest on trading activities) 134.28 151.44 (17.16) Interest on Trading Activities 34.55 56.64 (22.09) Other borrowing costs (CP related charges
Slide 45: Interest Coverage Ratio (ICR) & Debt Service Coverage Ratio (DSCR)
INTEREST COVERAGE RATIO (ICR) & DEBT SERVICE COVERAGE RATIO (DSCR) Particulars Unit HY ended CPLY Sept 20 Cash available for debt service Rs. Crore 511.57 193.06 (PBT + Depreciation + Finance cost) Finance Cost Rs. Crore 179.37 218.94 Interest Coverage Ratio (ICR) Times 2.85 0.88 Finance Cost (inclu
Slide 46: Debt to Equity Ratio
DEBT TO EQUITY RATIO S. Particulars As on As on No. 30th Sept 30th Sept 2019 2020 1 Long term Borrowings 704.32 460.12 2 Short term Borrowings 5356.09 6228.74 3 Total Borrowings 6060.41 6688.86 4 Net worth 2117.09 2140.03 5 Total Debt : Equity ratio 2.86 3.13 (3 divided by 4) 6. Long-term Debt: Equi
Slide 47: Segment Results for the Half Year Ended Sept 2020
SEGMENT RESULTS FOR THE HALF YEAR ENDED SEPT 2020 47
Slide 48: Segment Results
SEGMENT RESULTS Rs. crore Particulars HY Sept 2020 HY Sept 2019 Segment Revenue Own Fertilizers (Urea, BS and Bio-fertilizers) 4207.14 4424.43 70.05% 69.88% Fertilizer Trading 1715.45 1802.93 28.56% 28.47% Other Products 83.21 104.40 1.39% 1.65% Total 6005.80 6331.76 Segment Results Own Fertilizers
Slide 49: Sale Breakup Segment wise
Sale Breakup Segment wise-Urea/Traded goods/Industrial Product & Others Product (Value & % Sale) HY‐Sept‐20 HY‐Sept‐19 Other Other Fertilizer Products Products Trading , ₹ & & 1,715.45, services, ₹ services, ₹ 28.56% 83.21, 104.40, Fertilizer 1.39% 1.65% Trading , ₹ 1,802.93, 28.47% Own Fertilizers
Slide 50: Consolidated Accounts
CONSOLIDATED ACCOUNTS 50
Slide 51: Consolidated Accounts
CONSOLIDATED ACCOUNTS The Consolidated Financial Statements are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated accounts as set out in the accounting standards (Ind‐As 28) as prescribed under Section 133 of the Companies Act, 2013. The
Slide 52: Consolidated Accounts (Standalone vs Consolidated)
CONSOLIDATED ACCOUNTS Rs. crore STANDALONE CONSOLIDATED Particulars HY Sep 20 HY Sep 19 HY Sep 20 HY Sep 19 Revenue from operations 6005.80 6331.76 6005.80 6331.76 Total Expenses 5571.93 6216.32 5571.93 6216.32 Profit/ (Loss) from operations before 433.87 115.44 433.87 115.44 other income, finance c
Slide 53: Consolidated Accounts: Assets and Liabilities
CONSOLIDATED ACCOUNTS Rs. crore The Assets and Liabilities as at 30th Sept, 2020 are as under:‐ STANDALONE CONSOLIDATED Particulars As on As on As on As on 30.09.2020 30.09.2019 30.09.2020 30.09.2019 ASSETS Non‐current assets 4896.15 4704.97 4873.63 4696.23 Current assets 7705.35 8738.62 7705.35 873
Slide 54: New Projects and Other Activities
NEW PROJECTS AND OTHER ACTIVITIES 54
Slide 55: Projects and Other Activities status
Projects and Other Activities status Company has contributed Rs. 447.63 crore upto 30.09.2020 towards equity in its JV Company (RFCL). Term loan has been signed with SBI on 24th December, 2018 for Rs. 1044 crore for Energy Saving and other capex of all units and Rs. 760 crore drawn upto 30th Sep
Slide 56: Overview of Ramagundam Project
Overview of Ramagundam Project (Being executed by RFCL) Joint Venture of NFL, Engineers India Limited (EIL) & Fertilizers Corporation of India Limited (FCIL) is undertaking the revival of Ramagundam unit of FCIL through RFCL Plant Capacity Ammonia Plant : 2200 MTPD (0.726 MMTPA) Urea Plant : 3850
Slide 57: Thank You
\7 AUB UF THANK YOU