Slide 1: Earnings Presentation Q4 and Full Year FY2023
www.paradeepphosphates.com Earnings Presentation Q4 and Full Year FY2023 Nourishing the Future - Feeding the Nation
Slide 2: Business Overview
Business Overview Paradeep Phosphates is India’s second largest integrated phosphatic private sector company ▪ Paradeep Phosphates Limited (PPL) is India’s second largest private sector phosphatic company with a capacity of 3.0 MMTPA (finished fertilizers NPK, DAP and Urea) 3.0 MMTPA 15 States Insta
Slide 3: PPL Investment Case
PPL Investment Case Backward integration and 3 MMTPA fungible capacity resulting in higher market share and competitive EBITDA / tonne India’s 2nd largest private sector phosphatic fertilizer 1 manufacturer with pan-India distribution capability 2 Competitive EBIDTA per tonne in the industry led by
Slide 4: Q4 FY23 Performance Highlights
Q4 FY23 Performance Highlights (in Million) Total Income EBITDA PBT Net Profit Rs. 37,136 Rs. 1,603 Rs. 306 Rs. 100 Goa Plant one time cost : Rs. 422.5 Goa Plant one time cost : Rs. 422.5 Goa Plant one time cost : Rs. 422.5 Adjusted EBITDA : Rs. 2,025 Adjusted PBT : Rs. 728 93% Y-o-Y Adjusted EBITDA
Slide 5: Q4 FY23 PPL Operational Highlights
Q4 FY23 PPL Operational Highlights (Production Volume) Total fertilizers DAP N-20 620,884 MT 291,192 MT 109,669MT 124% Y-o-Y 90% Y-o-Y 30% Y-o-Y Other NPK Sulphuric Acid Phosphoric Acid 98,331MT 332,825 MT 85,610MT 397% Y-o-Y 4% Y-o-Y 9% Y-o-Y Industrial Products Urea Production: 121,691 MT Fertiliz
Slide 6: Q4 FY23 Performance Trends
Q4 FY23 Performance Trends Delivered consistent quarter on quarter Revenue and EBITDA growth (in Rupees Million) Revenue from Operations EBITDA and Margins 43,984 3,773 36,439 18,988 1,603 1,179 8.6% 6.1% 4.3% PAT* EPS (IN RS.) Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 CAGR 52% PBT and Margins
Slide 7: Management Perspectives
Management Perspectives Commenting on the performance, Suresh Krishnan, Managing Director, said: “During the fourth quarter of FY 22-23, we have been able to operate both the sites consistently with the help of our strong supply-side partnerships. We are happy to report that the integration of Goa p
Slide 8: FY23 Performance Highlights
FY23 Performance Highlights (in Million) Total Income EBITDA PBT Net Profit Rs. 133,407 Rs. 8,921 Rs. 4,262 Rs. 3,042 Goa Plant one time cost : Rs. 592 Goa Plant one time cost : Rs. 592 Post Goa Plant one time cost: Rs 592 Adjusted EBITDA : Rs. 9,513 Adjusted PBT : Rs. 4,854 70% Y-o-Y Adjusted EBITD
Slide 9: FY23 PPL Operational Highlights
FY23 PPL Operational Highlights (Production Volume) Total fertilizers DAP N-20 2,032,516 MT 675,056 MT 556,300 MT 63% Y-o-Y (4)% Y-o-Y 46% Y-o-Y Other NPK Sulphuric Acid Phosphoric Acid 414,360 MT 1,202,865 MT 302,545 MT 230% Y-o-Y (4)% Y-o-Y 1% Y-o-Y Industrial Products Urea Production: 386,800 MT
Slide 10: FY23 Operational Highlights
FY23 Operational Highlights Strengthened total capacity by 150% to reach a run rate of 3 MMTPA of finished fertilizers Q1 Q2 Q3 Q4 • Completion of revamp of three • Goa plant started operating • Successfully completed the • Achieved highest ever monthly out of four granulation trains at all three tr
Slide 11: Key Macroeconomic Growth Drivers
Key Macroeconomic Growth Drivers Food Security Policy Support Soil Health Dietary Shifts • The adequate use of fertilizers and • The Indian government has • Roughly one third of the world’s • Consumers, particularly in high- efficient nutrient management implemented a number of policies soil is degr
Slide 12: Annual Performance Trends
Annual Performance Trends Strong track record of financial performance, registering highest ever annual Revenue of Rs. 133,407 mn, with 70% a(inY-o-Y growth Rupees Million) Revenue from Operations EBITDA and Margins 32% 17% 133,407 CAGR 8,921 CAGR 7,104 78,587 5,615 4,808 4,947 51,647 43,579 41,929
Slide 13: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle (In Millions) FY20 FY21 FY22 FY23 Key Observation Long Term Debt 1,394 1,134 5,282 6,119 Short Term Debt 20,791 11,378 24,261 40,192 • Working capital management, cash flow conversion Total Debt 22,185 12,512 29,543 46,311 cycle has remained efficient Less:
Slide 14: Key Return and Leverage Ratios
Key Return and Leverage Ratios ROCE % ROE % Net Debt / Equity 26.0% 26.4% 24.3% 24.5% 19.7% 2.05x 20.9% 13.0% 1.38x 1.3x 12.5% 11.0% 10.6% 1.06x 0.63x FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • Borrowings are primarily short term in nature utilized to procure raw ma
Slide 15: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary (in Rupees Million) Q4 Y-o-Y Q3 Q-o-Q Full Year Y-o-Y (Rs. Million) FY2023 FY2022 Growth(%) FY2023 Growth(%) FY2023 FY2022 Growth(%) Revenue from Operations 36,439 18,988 91.9% 43,984 (17)% 133,407 78,587 70% Other Income 697 256 172.7% 55 nm 911 393 132% T
Slide 16: Growth Drivers in FY 2024
Growth Drivers in FY 2024 Paradeep Phosphates is looking to capitalize on the following drivers to grow topline and bottom-line in FY 24 01 Million Incremental Potential to generate Value Added NPKs 33% Lesser Fixed Capacity along with additional EBIDTA beyond DAP Cost Per Ton Backward Integration •
Slide 17: Shareholding Structure
Shareholding Structure Promoters Group % PPL Shareholdings – March 31, 2023 ZACL* 50-50 Joint Insurance Venture Companies Foreign Portfolio ZMPPL** 4% Investors OCP Group 5% 56.1 % Paradeep Phosphates Mutual Funds 18% % Distribution in the category of Promoter Domestic Institutional Holdings group 5
Slide 18: About PPL
ie) About PPL
Slide 19: Manufacturing Locations
Manufacturing Locations Location Paradeep, Odisha Zuarinagar, Goa Area (Acres) 2,282 260 Target Market East, Central and South West, Central and South DAP, NPK-20, N-12, N-10, NPK-10, N-12, N-14, N-19, Feriliser Products N-14 N-28, DAP, Urea Installed fertilizer NPK / DAP: 0.8 Capacity NPK / DAP: 1.
Slide 20: Sales and Distribution Network
Sales and Distribution Network PPL Total States Currently Present 15 Regional Marketing Offices 21 Stock Points 450+ No. of Dealers 6,500+ No. of Retailers 65,500+ Farmers Covered ~ 8+ Mn • Structured distribution network facilitates efficient sale of products and promotes brand visibility • Underta
Slide 21: Core PPL Product Portfolio
Core PPL Product Portfolio Well diversified product portfolio to cover the entire range of the non urea fertilizer market • Leadership position in the non-urea fertilizer market with diversified product portfolio ensuring that farmers have access to the right products to improve their yields • The p
Slide 22: New Product Innovation
New Product Innovation NPK 14:28:14 NPK 24:24:00 NPK 14:28:0 NPK14:35:14 • Contains Nitrogen, Phosphorus • It contains two major plant • Contains a minimum of 24.0% • Complex fertilizer containing all and Potassium in the ratio of nutrients, Nitrogen and Nitrogen and 24.0% Phosphorous major nutrient
Slide 23: Competitive Positioning
Competitive Positioning Manufacturing Comprehensive Product Backward integration of Capabilities Portfolio rock phosphate Paradeep capacity 1.8 MTPA: Consumer product portfolio: Raw material: NPK / DAP – 1.8 MTPA Five grades of NPK Stable source of raw materials, especially Goa capacity 1.2 MTPA: DA
Slide 24: PPL Growth Strategy
PPL Growth Strategy • Expand into allied areas such as crop protection and specialty plant nutrition • To achieve best capacity utilization for 3 MMTPA capacity (1.8 MMTPA at Paradeep Capacity Utilization and Product Plant and 1.2 MMTPA for Goa Plant) Diversification • To have the product mix aligne
Slide 25: ESG
ESG Strategic, ambitious and value creating ` Environmental Philosophy Social Outreach Ethical Governance - 276,506 KwH Total renewable - 2,480 Employees including contractual - 60% Independent Directors on Board energy consumed workers - 100 % Employees trained on code of - 100% Operations tracked
Slide 26: 2022 Sustainability Report Highlights
2022 Sustainability Report Highlights Aligned with United Nation’s SDG Reduce environmental impact by localizing Provided regular basic health facilities via the Innovate Protect Empower the raw material Molten Sulphur from Indian ‘Mobile Health Van’ initiative led by a team of Oil Corporation Limit
Slide 27: Farmer Engagement: FY2023
Farmer Engagement: FY2023 Committed to creating a food secure nation through innovative and affordable solutions for the farmers 6,300 750 230 Farmer Meetings Crop Seminars Retailer Meetings 3,600 3,700 Products 1.85 lakh sq ft Campaign Days Wall Paintings Demonstrations Jai Kisaan Diwas on 15th Aug
Slide 28: Awards & Recognitions
Awards & Recognitions Industry Recognition Awards CIDC Vishwakarma Award Accolades by CII for CSR Golden Peacock Excellence Award by Best Professionally Managed Co. Energy Conservation Initiatives Award - 2022 Odisha CSR Forum - 2022 Make in Odisha Conclave - Nov 2022 Exceed Award 2022 on OSH in PAP
Slide 29: Disclaimer and Contact Information
Disclaimer and Contact Information Disclaimer This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to “Paradeep Phosphates” future business deve
Slide 30: Thank You
Thank You Registered Office Paradeep Phosphates Limited 5th Floor, Bayan Bhavan Pandit Jawaharlal Nehru Marg Bhubaneswar - 751 001, Odisha, India Contact: +91 22 6169 5988 CorpAffairsBBSR@adventz.com 30