Madhya Bharat Agro Products Ltd. · NSE:MBAPL
Madhya Bharat Agro Products — Q4 FY2024 Earnings Presentation
30 slides from Madhya Bharat Agro Products's earnings presentation, May 13, 2024
Slide 1: Regulation 30 filing cover letter to NSE
Date: 13.05.2024 National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex, Bandra (East) Mumbai-400 051 Company Code: MBAPL Dear Sir/Madam, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,
Slide 2: Q4 and FY24 Financial Results Presentation
Madhya Bharat Agro Products Ltd (MBAPL) [A unit of Ostwal Group of Industries] Q4 and FY24 Financial Results presentation
Slide 3: Forward Looking Statement
Forward Looking Statement Disclaimer:- This presentation may contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating Madhya Bharat Agro Products Ltd (MBAPL) future business developments
Slide 4: Recent Updates, Quarterly & Yearly Performance
Recent Updates, Quarterly & Yearly Performance 3
Slide 5: Financial Performance Updates – Quarterly & Yearly
Financial Performance Updates – Quarterly & Yearly • Quarterly Performance – 4QFY24 • Revenue at INR 145.7 Cr, • EBITDA at INR 22.8 Cr (EBITDA per ton is ~ INR 3,800) • PAT at INR 1.4 Cr. • Annual Performance – FY24 • Revenue at INR 816.9 Cr • EBITDA at INR 107.5 Cr (EBITDA per ton is ~ INR 3,700) •
Slide 6: Recent Updates
Recent Updates • In February 24, the government revised the subsidy upward for NPK and SSP effective from 1st April 2024, which should benefit the company significantly from 1QFY25. • In April 2024, the group has entered into a long-term agreement to procure Rock Phosphate from Egypt. • Updates on C
Slide 7: Outlook – FY25
Outlook – FY25 The company has also been allotted 137,052 sq mtr. land at Sagar, MP adjacent to existing plant. We expect to come with phosphoric acid plant at a capex of ~INR 70 cr. This commercial production expect by 2025. In FY24, the volumes for SSP and DAP/NPK were not strong due to market con
Slide 8: Performance Trend for the Quarter & Year
Performance Trend for the Quarter & Year Revenue (Rs. Crore) EBITDA (Rs. Crore) 214.9 982.1 816.9 107.5 233.8 45.8 145.7 22.8 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 PAT (Rs. Crore) 124.2 • Q4 & Yearly Revenue stands at Rs. 145.7 crore & Rs. 816.9 Cr • Lower realizations with stagnant input
Slide 9: Results Table
Results Table Q4 Y-o-Y Q3 Q-o-Q Full Year Y-o-Y (Rs. in Cr) FY2024 FY2023 Growth (%) FY2024 Growth (%) FY2024 FY2023 Growth (%) Revenue from operations 145.7 233.8 -37.7 243.8 -40.2 816.9 982.0 -16.8 Other income 8.8 1.1 700 0.4 2100 10.9 5.2 109.6 Total income 154.5 234.9 -34.2 244.2 -36.7 827.8 98
Slide 10: Company & Industry Performance
Company & Industry Performance COMPANY SALES VOLUME (‘000 tons) SSP NPK DAP 163.0 ; 26.5 YoY (-19.7%) 101.1 ; YoY 16.2% 33.4 ; 18.5 ; 8.2 YoY (-37.1%) YoY 21.9% FY24 Q4FY24 FY24 Q4FY24 FY24 Q4FY24 INDUSTRY SALES VOLUME (‘000 tons) SSP NPK 4,544 ; 10,812 ; DAP YoY (-9.4%) 11,073 ; Y0Y 3.8% YoY 9.9% 1
Slide 11: Production Volumes
Production Volumes Q4 FY23 Q4 FY24 FY23 FY24 Production (MT) Chemical & Intermediates - BRP (Crushing) 12,950 45,725 120,261 151,729 - Sulphuric Acid 13,311 28,422 88,742 101,757 - Phosphoric Acid 4,264 7,639 14,247 22,714 Fertiliser - SSP 35,774 39,035 208,446 183,843 - DAP - 8,067 - 26,503 - NPK 2
Slide 12: Chairman’s Quote
Chairman’s Quote “On the back of excellent FY23 we kept high benchmarks for ourselves for FY24 but unfortunately, the price concession for FY24 failed to synchronize with volatile imported phosphatic fertilizer leading to sharp decline in margins. Despite the challenging market scenario we have kept
Slide 13: MBAPL – an overview
MBAPL – an overview अन्नदाता का साथ, ककसान का विकास 12
Slide 14: Overview
Overview • MBAPL, a part of Ostwal Group of Industries, is led by Mr. MK Ostwal, a first generation technocrat entrepreneur. • Mr. Ostwal is regarded as one of the pioneers of Single Super Phosphate (SSP) manufactured from BRP. He along with his sons Mr. Pankaj Ostwal and Mr. Praveen Ostwal have mas
Slide 15: Journey so far & way forward
Journey so far & way forward Incorporated in 1997 was Began SSP & Sulphuric Migrated to NSE taken over by OGI with its Acid & got listing on NSE Main board of stock 60,000 MT SSP plant in 2004. SME Emerge. exchange 2004 2012 2016 2017 2019 Commenced Beneficiated Commenced GSSP Rock Phosphate (BRP) a
Slide 16: Strategic Location with regular capacity additions
Strategic Location with regular capacity additions Finished Goods Capacities (MT) 240000 240000 240000 Uttar Pradesh 240000 240000 Close proximity to market enabling shorter 120000 delivery time and swifter availability of fertilizer Gujarat to farmers Dahej Seaport Madhya Pradesh • Low grade rock p
Slide 17: Only Manufacturer in India with Full Backward Integration
Only Manufacturer in India with Full Backward Integration Beneficiated Rock Sulphuric Acid & Single Super SSP Powder & Granular form Phosphate Water Phosphate Annual capacity : 240,000 MT Beneficiation of Low grade rock to High In house Sulphuric grade rock plant with acid plant with Phosphoric Acid
Slide 18: Capacity Utilisation
Capacity Utilisation Capacity Capacity Capacity Production utilisation (%) utilisation (%) utilisation (%) capacity (MTPA) FY24 FY23 FY22 152 FY22 FY23 FY24 120 111 DAP/NPK* 240,000 53% 78% 32% 101 89 89 SSP/GSSP 240,000 77% 87% 77% 23 9 14 Organic Fertiliser 60,000 30% 27% 49% BRP (Crushing) Phosph
Slide 19: Competitive Advantage
Competitive Advantage PROVEN track ONLY Fully Backward BENEFITS of record Manufacturer Economies of Scale Time and again promoters have Ability to beneficiate a low-grade Rock Ostwal Group is 2nd largest SSP acquired & turnaround loss making Phosphate to High Grade Rock manufacturer enabling discoun
Slide 20: Focus farmer connect and sustainability
Focus farmer connect and sustainability Sustainability Focus on quality ▪ MBAPL is committed to sustainable fertilizer for agriculture. The company’s fertilizers enrichment of crop are designed to minimize the impact on soil and water resources and NABL accredited reduce greenhouse gas emissions. la
Slide 21: Expansion Plans
Expansion Plans Maharashtra • The Group has entered into a definitive agreement with Birla Copper to purchase a fertilizer plant along with Phosphoric Acid & Ammonia Storage Plant based in Dahej. 587,350 sq mtr land allotted by MIDC to the company in Nardana, Maharashtra. Phosphoric Acid plant from
Slide 22: Capex: Incremental Capacities in Chemicals only
Capex: Incremental Capacities in Chemicals only • Company has outlined a plan to increase the capacities of phosphoric acid, sulphuric acid and specialty chemical at a capex of Rs 750-800 Cr. The same is expected to be funded via debt, internal accruals and equities. Fertilizers Chemicals Capacity E
Slide 23: Backward Integration – Phosphoric Acid
Backward Integration – Phosphoric Acid Phosphoric Acid: Backward integration & Manufacturing process 3.5 ton for 1 ton of PA Rock Phosphate Phosphoric Acid Water Sulphuric Acid 2.88 ton for 1 ton of PA Sulphur 0.34 ton for 1 ton of SA (50 units Power (By per mt) Product) Source: FAI With backward in
Slide 24: Robust Phosphoric Acid Industry in India
Robust Phosphoric Acid Industry in India • Total India Phosphoric Acid (PA) Consumption – 4.5 million MT of which ~60% is imported 60% imports of India Phosphoric Acid Consumption • In 2022, Asia region has consumed more than 50% of global PA produced. 68 66 71 71 70 65 64 62 64 61 57 58 53 57 57 55
Slide 25: Promoters
Promoters Mr. M.K. Ostwal Mr. Pankaj Ostwal Mr. Praveen Ostwal Promoter, Chairman & Promoter & Director- Promoter & Director- Director Commercials Technicals Aged 67 years has a vast Aged 46 years is a C.A by Aged 43 years he is a C.A by 43 years experience in the qualification with 23 years qualifi
Slide 26: Annexures
& OSTWAL Annexures a en
Slide 27: Historical Financial Performance
Historical Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) Margin (%) 26.7% 22.5% 21.7% 21.8% 982 817 13.3% 491 215 131 186 42 107 108 35 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 ROE (%) ROCE (%) PAT (Rs. Crore) Margin (%) 45.3% 12.6% 11.3% 10.8% 11.6% 35.1% 124 37.80% 18.5% 15
Slide 28: Ratios & Cashflow
Ratios & Cashflow (Rs. in Crores) Particular FY2024 FY 2023 FY 2022 FY 2021 FY 2020 Cash Flow Summary Cash and Cash Equivalents at Beginning of the year 6.01 0.01 0.18 0.95 0.05 Net Cash from Operating Activities 149.04 -70.04 -71.93 30.04 14.44 Net Cash Used in Investing Activities -93.64 -65.31 -1
Slide 29: Key Ratios
Key Ratios FY2024 FY 2023 FY 2022 FY 2021 FY 2020 Operational Ratio EBITDA/tonne (Rs.) 3,700 7,347 4,578 2,152 2,446 Financial Ratios Debt-Equity Ratio 0.83 0.98 0.80 0.42 0.28 Current Ratio 1.38 1.58 1.51 1.50 2.62 Working Capital (Rs. Crore) 131.89 184.36 95.15 34.34 44.57 Total Debt (Rs. Crore) 2
Slide 30: Thank You
Thank You Sourabh Gupta, CFO Email: secretarial@mbapl.com, secretarial@ostwal.in, sourabh@mbapl.com Investor Relation Team Email: ir@mbapl.com
Madhya Bharat Agro Products — Q4 FY2024 Earnings Presentation on 6ix