Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Q2 FY2021 Earnings Presentation
30 slides from Fineotex Chemical's earnings presentation, Nov 10, 2020
Slide 1: Cover letter to BSE and NSE
10 November, 2020 To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai — 400 001 Bandra East, Mumbai — 400051 Company code: 533333 Compan
Slide 2: Fineotex Chemical Limited Investor Presentation November 2020
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Investor Presentation November 2020 Drilling Specialties Textile Specialties Home Care and Hygiene Specialties Other Specialties
Slide 3: Agenda
Agenda Company Overview 3 – 14 Sustainability Approach 15 – 21 Financial Performance 22 – 27 2
Slide 4: Company Overview
Company Overview 3
Slide 5: An Introduction to Fineotex
An Introduction to Fineotex Speciality chemicals producer for 4+ decades with a market 450+ 60+ leading position in the international textiles industry Product Categories Countries Present Bluesign, ZDHC, 43,000+ MT p.a. Successful entry into home care and hygiene and drilling Star Export House Inst
Slide 6: Fineotex Investment Case
Fineotex Investment Case Business Dynamics Acquisition Track Record Global Customer Reach • Fineotex and Biotex associated with • Biotex (73% owned) net profit has • International acceptance by high quality and innovation across grown by a factor of 4x since profile customers industries globally acq
Slide 7: Our Evolution
Our Evolution 1995 2004 2007 2011 2014 ❖ Incorporation of ❖ Accredited with ❖ Acquisition of FCPL ❖ Listed on BSE ❖ Bonus declared on 1:1 Fineotex ISO 9001:2008 by Fineotex Chemical ❖ Incorporated wholly owned basis Chemical ❖ Incorporation of Limited subsidiary in Malaysia ❖ Accredited with ISO Ind
Slide 8: Driving Future Growth
Driving Future Growth Home Care Specialities Hygiene Specialities Textile Specialities Drilling Specialities Leverage core manufacturing and development expertise into new high growth areas 7
Slide 9: Focus on Growth and Diversification
Focus on Growth and Diversification Home Care and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • A unique ‘Mosquito Life Cycle Controller’ ▪ FMCG - branded detergents • Significant potential for offering
Slide 10: Upcoming Facility at Ambernath, Maharashtra
Upcoming Facility at Ambernath, Maharashtra ➢ Located on ~4 acres of land ➢ Expect to commission first phase of the brownfield manufacturing facility in Q1 FY2022 ➢ Proposed deployment of Rs. 270 million ➢ Cater to customer demands in the existing Textile Specialities and fast growing Home Care and
Slide 11: Synergistic Business Model
Synergistic Business Model Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applications value
Slide 12: Specialty Textile Chemicals Overview
Specialty Textile Chemicals Overview Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Process Sizing Scouring, Washing, Printing, Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, Fixer Product Polyme
Slide 13: New Product Offerings from Biotex
New Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 12
Slide 14: Global Customer Reach
Global Customer Reach • Sales in 60+ countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, USA and Vietnam • 30+ technical marketing experts • 100+ dealers in Indian and International markets FY20 Revenue Mix 52% 48% Facilities at Mahape and Ambernath (upcoming),
Slide 15: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies Upcoming brownfield facility at Ambernath, Maharashtra to be future ready for next
Slide 16: Sustainability Approach
Sustainability Approach 15
Slide 17: Board of Directors
Board of Directors Surendrakumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Navin Mittal Chairman and Managing Director Executive Director Executive Director Independent Director Alok Dhanuka CS Bindu Shah Dr. Anand Patwardhan Dr. Sunil Waghmare Independent Director Independent Director Independe
Slide 18: Newly Appointed Independent Directors as on 31st October 2020
Newly Appointed Independent Directors as on 31st October 2020 Name Brief Profile • Dr. Anand Patwardhan aged 57, is a Ph.D. (technology) in chemical engineering, from ICT Mumbai University. He has 33 years of experience in industry as well as in academics • Presently he is working as a professor in
Slide 19: Management Team
Management Team Surendra Kumar Tibrewala Sanjay Tibrewala Aarti Tibrewala Education: B.Com and LLB Education: B.Com and P.G. in Textile Education: B.Com and M.Com Chemicals and Processing Managing Director Chief Financial Officer Head - International Marketing Noa N. Ouakass Kedar Sankar Sonai Raman
Slide 20: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Operating Facts Strategic Advantages • FY20 Production Volume: 20,440 MT • Strategically located plant near key port • Current Utilisation: 56% close to Mumbai with logistical advantage to textile hubs across North, West, South and • Peak Utilisation
Slide 21: Accreditations: Biotex Malaysia
Accreditations: Biotex Malaysia Certificate Value Proposition • Bluesign is recognized as a leading certification for sustainability in the global textile industry. As a partner, Biotex is committed to applying the bluesign system to meet the highest level of safety for both people and environment,
Slide 22: Accreditations: Fineotex India
Accreditations: Fineotex India Certificate Value Proposition • ISO 9001:2015 defines the guiding principles to create efficiencies by aligning and streamlining processes throughout the organization, create new opportunities, meet regulatory requirements, and help organizations expand into new market
Slide 23: Financial Performance
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Slide 24: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 44.5% 25.2% 42.1% 40.3% 21.9% 37.3% 36.9% 21.0% 35.5% 19.0% 18.5% 33.1% 33.2% 16.2% 17.4% 16.5% 1,823 1,963 1,344 1,429 300 347 342 1,020 1,099 277 295 1,007 851 165 186 141 FY
Slide 25: Consolidated Balance Sheet and Return Ratios Trend
Consolidated Balance Sheet and Return Ratios Trend Figures (in Rs Mn) Mar-20 Sep-20 Cash Flow from Operations /EBITDA (%)* ST Debt 28 30 83% 83% LT Debt - - 65% Total Debt 28 30 49% Cash & Cash Equivalent 179 314 35% 21% Net Cash 151 284 15% Equity 1,760 1,939 Total debt/Equity 0.02x 0.02x FY 15 FY
Slide 26: Q2 FY2021 Consolidated Financial Highlights
Q2 FY2021 Consolidated Financial Highlights Rs 547.5 mn Rs 99.6 mn Rs 110.1 mn Performance Discussion: Total Revenue EBITDA Net Profit • Q2 FY21 revenue growth was driven by gradual increase in order book from our leading customers. Expect sales trajectory to keep improving going forward 34.4% 18.2%
Slide 27: Consolidated Quarterly Performance Trend
Consolidated Quarterly Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 38.1% 39.1% 19.8% 36.5% 34.4% 17.4% 18.2% 31.0% 15.4% 13.5% 510 521 547 101 100 436 80 76 304 41 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY
Slide 28: Consolidated P&L Summary: Q2 and H1 FY2021
Consolidated P&L Summary: Q2 and H1 FY2021 (Rs. Million) Q2 FY21 Q2 FY20 YoY% Q1 FY 21 QoQ% H1 FY 21 H1 FY 20 YoY% Revenue from Operations 547.5 510.4 7.3% 303.9 80.2% 851.3 1,007.0 (15.5%) COGS 359.0 316.1 13.6% 209.7 71.2% 568.7 635.3 (10.5%) Gross Profit 188.5 194.3 (3.0%) 94.2 100.1% 282.6 371.7
Slide 29: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Fineotex Chemical Limited (“Fineotex Chemical” or the Company) future bus
Slide 30: Fineotex Chemical Limited
Fineotex Chemical Limited FINEOTEX CHEMICAL LIMITED (CIN Number: L24100MH2004PLC144295) 42-43, Manorama Chambers, S. V. Road Bandra (West), Mumbai - 400 050, India Phone: (+91 - 22) 26559174 / 75, (+91 - 22) 26559176 / 77 Email: info@fineotex.com www.fineotex.com 29