Acutaas Chemicals Ltd · NSE:ACUTAAS
Acutaas Chemicals — Ami Organics — Q3 FY24 Earnings Presentation
44 slides from Acutaas Chemicals's earnings presentation, Feb 12, 2024
Slide 1: Exchange filing cover letter
A@ Ami Organics Limited CIN No. : L24100GJ2007PLc051093 Registered Office :- Plot No. 440/4, 5 & 6, Road No. 82/A, G.LD.C. Sachin, Surat - 394230, Dist. Surat, Gujarat, India. February 12, 2024 To, To, The Listing Department, The Listing Department BSE LIMITED, National Stock Exchange of India Limit
Slide 2: Investor Presentation February 2024
Investor Presentation F E B R U A R Y 2 0 2 4 BSE : 543349 | NSE : AMIORG | www.amiorganics.com 1
Slide 3: Table of Contents
Table of Contents 01 02 03 Q3 & 9M FY24 Results Company Overview Advanced Pharma Intermediate 04 05 Specialty Chemicals Working towards better tomorrow 2
Slide 4: 1. Q3 & 9MFY24 Results
1. Q3 & 9MFY24 Results Management Commentary Q3FY24 Earnings Highlights Q3FY24 Business Highlights Q3FY24 Financial Performance – Key Metrics 9MFY24 Financial Performance – Key Metrics P&L Statement Financial Performance over the years – Key Metrics Financials for the last three year
Slide 5: Management Commentary
Management Commentary “In the face of a challenging landscape of the chemical industry, I am pleased to report that we have been able to deliver quality growth in Q3FY23 with our revenue from operations growing 9.2% YoY to Rs. 1,664mn. This growth is underpinned by robust volume growth of 25%, indic
Slide 6: Q3FY24 Earnings Highlights
Q3FY24 Earnings Highlights Revenue from operations for Q3FY24 grew by 9.2% YoY to Rs. 1,664 mn The gross margin for the quarter was at 42.9% as compared to 46% in Q3FY23 and 41% in Q2FY24. Gross margins contracted 303 basis points YoY but expanded by 190 bps sequentially. Gross margins were driv
Slide 7: Q3FY24 Business Highlights
Q3FY24 Business Highlights Export at 61%; domestic business at 39% Advance Pharmaceutical Intermediates • Signed a new agreement with Fermion for two additional advanced intermediates taking total product under CDMO with fermion to 5 products • Inaugurated a state-of-the-art technology driven pl
Slide 8: Q3FY24 Financial Performance – Key Metrics
Q3FY24 Financial Performance – Key Metrics Revenue from Operations (Rs Mn) YoY Growth 1.2% 49.5% 9.2% Q3FY23 Q3FY24 1,524 1,664 1,271 1,286 253 378 Advance Intermediates Specialty Chemicals Total EBITDA & EBITDA Margin PAT EPS (Rs Mn) (Rs Mn) 240 230 220 19.0% 210 20.2% 200 190 180 14.6% 17.0% 170 1
Slide 9: 9MFY24 Financial Performance – Key Metrics
9MFY24 Financial Performance – Key Metrics Revenue from Operations (Rs Mn) YoY Growth 5.4% 60.0% 14.4% 9MFY23 9MFY24 4,925 4,304 3,589 3,782 715 1,143 Advance Intermediates Specialty Chemicals Total EBITDA & EBITDA Margin PAT EPS (Rs Mn) (Rs Mn) 600 19.0% 21.0% 17.3% 580 570 560 19.0% 580 550 19.0%
Slide 10: P&L Statement
P&L Statement Particulars (Rs. Mn) Q3FY24 Q3FY23 YoY Q2FY24 QoQ 9MFY24 9MFY23 YoY Revenue from Operations 1,664 1,524 9.2% 1,724 (3.4)% 4,925 4,304 14.4% COGS 950 823 1,016 2,767 2,258 Gross Profit 714 700 2.0% 708 1.0% 2,158 2,045 5.5% Gross Margin 42.9% 46.0% 41.0% 43.8% 47.5% Employee benefits ex
Slide 11: Financial Performance over the years – Key Metrics
Financial Performance over the years – Key Metrics Revenue from Operations- Growth Trends (Rs Mn) FY20-23 CAGR: 31% 137% 37% FY20 FY21 FY22 FY23 6,170 5,180 5,201 4,241 3,240 3,406 2,322 2,396 960 990 74 166 Advance Intermediates Speciality Chemicals Total Revenue – by Business Verticals Revenue fro
Slide 12: Financial Performance over the years – Key Metrics (cont’d)
Financial Performance over the years – Key Metrics (cont’d) EBITDA and EBITDA Margins (%) PAT and PAT Margins (%) 23.5% 1400 20.2% 1,227 25.0% 15.9% 13.8% 17.1% 833 1200 20.0% 11.5% 19.9% 1000 1,052 15.0% 719 13.5% 800 600 802 10.0% 540 400 410 275 5.0% 200 0 0.0% FY20 FY21 FY22 FY23 FY20 FY21 FY22
Slide 13: Financials for the last three years
Financials for the last three years Restated Summary Statement of Profit and Loss Restated Summary Statement of Asset and Liabilities Particulars (Rs. Mn) FY21 FY22 FY23 Particulars (Rs. Mn) FY21 FY22 FY23 I. Assets Revenue from Operations 3,406 5,201 6,167 Property, plant and equipment 1,608 1,808
Slide 14: Shareholder Information
Shareholder Information Shareholding as on 31st December 2023 Share Information as on 31st December 2023 NSE Ticker AMIORG Others BSE Ticker 543349 32.7% Promoters 39.9% Market Cap (Rs. Cr) 4,138 Shares Outstanding 3,68,80,562 3M ADTV (Shares)* 2,40,157 FII 3M ADTV (Rs. cr)* 26.52 MF 11.7% 5.4% Othe
Slide 15: 2. Company Overview
2. Company Overview Company Overview Our Journey Our Products Strong and Long-term relations with Diversified Customers across Geographies Our Manufacturing Facilities Superior R&D Capabilities Our Founders Our Leadership What makes us different 14
Slide 16: Company Overview Business Segments
Company Overview Business Segments AMI Organics (AMI) is a research and development driven manufacturer of specialty chemicals with varied end usage and is focused on the development and manufacturing of advanced pharmaceutical Pharma Specialty intermediates (“Pharma Intermediates”) for regulated an
Slide 17: Our Journey
Our Journey 2004 2005 2006 Formation of Partnership Firm in the Gujarat Gas Safety Award – developing Ami Organics changed its constitution name of “Ami Organics” and implementing effective HSE from Partnership Firm into ‘Ami Management System Organics Private Limited‘ 2016 2015 2011 Obtained cert
Slide 18: Our Products
Our Products Advance Intermediates for Specialty Chemicals Pharmaceuticals Niche KSM for Agrochem and Finechem Advanced Intermediates: companies – 185+ Products Parabens & paraben formulations, Salicylic – Intermediates across 17 therapeutic areas Acid and other specialty chemicals that – Chro
Slide 19: Strong and Long-term relations with Diversified Customers across Geographies
Strong and Long-term relations with Diversified Customers across Geographies Europe 58% 13 50 of revenue from Top customers associated customers associated 10 customers in FY23 since last 10 years since last 5 years Japan Israel Well established and long-term relations with domestic and MNCs acros
Slide 20: Strong and Long-term relations with Diversified Customers (cont’d)
Strong and Long-term relations with Diversified Customers across Geographies (cont’d) Advanced Generic Pharma Intermediates (Top Clients) Innovators Specialty Chemicals (Top Clients) 19
Slide 21: Our Manufacturing Facilities
Our Manufacturing Facilities Manufacturing Facilities Total Total Land Area (sq mtrs) 75,892 Installed Capacity (MTPA) 6,060 Land Areas Installed Capacity Land Areas Installed Capacity Land Areas Installed Capacity Land Areas Installed Capacity (sq mtrs) (MTPA) (sq mtrs) (MTPA) (sq mtrs) (MTPA) (sq
Slide 22: Superior R&D Capabilities
Superior R&D Capabilities R&D Expenditures (Rs. mn) R&D Lab Technology State-of-the-art 1 2 3 equipment 86 65 70 77 23,681 sq. ft. ADL fully supported by analytical Modern fume hood system, DSIR approved in-use R&D instruments autoclave, high vacuum facility at Sachin supported by an (LCMASS, GCMASS
Slide 23: Superior R&D Capabilities (Cont’d)
Superior R&D Capabilities (Cont’d) Our Capabilities in Key Chemistry Etherification Acylation Fluorination Nitration Esterification Bromination Diazotization Hydrogenation Alkylation Amination Chlorination & hydrolysis AMI Organics R&D Centre in Surat 22
Slide 24: Continuous Flow Reactor
Superior R&D Capabilities (Cont’d) Continuous Flow Reactor Continuous flow reactors are more efficient, and sustainable when compared to manufacturing products using traditional reactors. AMI has successfully developed capabilities in Plug Flow, Catalytic fixed-bed flow, Tubular flow kind of rea
Slide 25: Our Founders
Our Founders The visionaries who built this company Mr. Nareshkumar Patel is founder of the Company. He has been associated with the Company since its inception and has extensive experience in the global generic pharma business. Nareshkumar is responsible for handling the Chemical Engineering
Slide 26: Our Leadership
Our Leadership Board of Directors Virendra Girikrishna Richa Hetal Dr. Anita Mr. Ram Mohan Mishra Maniar Goyal Gandhi Bandyopadhyay Lokhande Whole-time Non-executive, Non-executive, Non-executive Independent Whole-time Director Independent Director Independent Director Independent Director Director
Slide 27: What makes us different
What makes us different Niche Product Portfolio High entry Diversified products to Diversified customer The reputation for Robust cost with a strong market barriers support our growth in base across geography innovative product management / Process share future launches, supported by Improvements ro
Slide 28: 3. Advanced Pharma Intermediate
3. Advanced Pharma Intermediate A leading Advanced Intermediate Manufacturer from India Our Business Model Uniqueness of our business model Our Strategy and Outlook Industry Overview 27
Slide 29: A leading Advanced Intermediate Manufacturer from India
A leading Advanced Intermediate Manufacturer from India (Rs. mn) Historical Business Performance 5,180 50-90% 185+ FY23 Market Share in Customers 5,180 Revenue Key Molecules Added ~40 new 4,269 (INR mn)) customers in FY23 3,240 2,322 30 14 2 FY20 FY21 FY22 FY23 New Products Process Patents Manufactu
Slide 30: Our Business Model – Advanced Intermediates for Pharmaceuticals
Our Business Model – Advanced Intermediates for Pharmaceuticals Import Substitute Supplying import substitute intermediates to domestic pharma companies ~1-3% CDMO Contract Manufacturing for big pharma companies Exclusive long term supply contracts 5% Regulatory market business Supplying NCE
Slide 31: Uniqueness of our business model
Uniqueness of our business model 1 2 3 4 5 6 Chronic Therapy Wide Product R&D Presence across Preferred Strong Customer focused Basket Leadership value chain Supplier Base 91% of the products Wider basket of First to market with AMI is present across Our unique business As one of the cat
Slide 32: Our Strategy and Outlook
Our Strategy and Outlook Growing Innovator business because of track record of innovation, timely S supply, and consistent quality T O Capex to expand capacities for the U R Advance intermediate business T A Products already commercialized for drugs going off patent in coming years L T expands/opens
Slide 33: Industry Overview
Industry Overview Revenue (FY23) Speciality Chemicals 16% 229 170 128 Pharma Intermediates 84% 2015 2020 2025F Currently ~85% of our revenue come from products used …with Global API industry estimated to grow by 6%; in Pharmaceutical industry specifically for manufacturing witnessing shift in produc
Slide 34: 4. Specialty Chemicals
4. Specialty Chemicals Speciality Chemicals - Overview New Product developed – Electrolyte Additive Acquisition of Baba Fine Chemicals (BFC) Our Strategy and Outlook Industry Overview 33
Slide 35: Speciality Chemicals - Overview
Speciality Chemicals - Overview (Rs. mn) Historical Business 990 300+ 30+ Performance FY23 Customers Countries Revenue across the globe (Customer locations) 960 990 (INR mn) Added ~20 new customers in FY23 166 74 3 50+ 1 FY20 FY21 FY22 FY23 New Products Products Manufacturing Launched in KSM for Agr
Slide 36: New Product developed – Electrolyte Additive
New Product developed – Electrolyte Additive Electrolyte Additives Industry Analysis AMI Organics has successfully developed a core electrolyte additive for cells used in energy storage devices. Barriers to Entry 1 3 Substitutes Complex product with a Best performing product First Indian and glo
Slide 37: Acquisition of Baba Fine Chemicals (BFC)
Acquisition of Baba Fine Chemicals (BFC) AOL acquired Partnership Text Purchase Agreement signed Texton 22nd interest in BFC by taking 55% April 2023 with listed Condition partnership stake of 2 exiting Precedents (CP) & Condition 1 2 partners. The acquisition is Subsequent (CS). Executed amended ef
Slide 38: Our Strategy and Outlook
Our Strategy and Outlook Development and entry into newer S molecules with strong entry T barriers to accelerate the growth O U R T Business to grow at a faster rate A than core pharma intermediate business due to lower base L T O E O G Y Continue to work on improving operational efficiencies to del
Slide 39: Industry Overview
Industry Overview Our existing Chemicals segment supplies KSMs to Agrochemicals and Fine Chemicals company … KSMs Global KSM Market – Size and Growth India KSM Market – Size and Growth (USD Bn) (USD Bn) 40 8.0 CAGR 6.1% CAGR 10.6% CAGR 30 6.1% 4.8 22 CAGR 9.8% 3.0 2015 2020 2025F 2015 2020 2025F Why
Slide 40: Industry Overview (cont’d)
Industry Overview (cont’d) … whereas our new acquired units manufactures preservatives along with some specialty chemicals such as salicylic acid (Rs. mn) Parabens Salicylic Acid 534 CAGR Global Salicylic Acid Market – Global Salicylic Acid Market – 6.7% Size and Growth (USD Mn) Geographic Split (20
Slide 41: 5. Working towards better tomorrow
5. Working towards better tomorrow 40
Slide 42: Working towards better tomorrow
Working towards better tomorrow Environment Social Governance Zero Liquid Discharge based in-house Company’s Sachin Facility is SA 8000:2014 50% of the board constitutes of effluent plant at Sachin Unit certified independent directors 80% of wastewater recycled The SA8000® Standard is the
Slide 43: Safe Harbor
Safe Harbor The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any
Slide 44: Contact Us
Contact Us For more information please contact: Ami Organics Limited Ekta Srivastava Company Secretary & Compliance Officer cs@amiorganics.com Ernst & Young Rahul Thakur rahul.thakur@in.ey.com Advait Bhadekar advait.bhadekar@in.ey.com 43 © 2020 Ami Organics Limited, All Rights Reserved.