Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — 9MFY21 Earnings Presentation
27 slides from Nath Bio-genes (india)'s earnings presentation, Feb 12, 2021
Slide 1: Nath Bio-Genes (I) Ltd. – Presentation on Unaudited Financial Results
©& Nath Bio-Genes (1) Ltd. (CIN L01110MH1993PLC072842) 12th February 2021 The Manager-Listing The Manager-Listing BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Bandra (E) Mumbai-400001 Mumbai-400051 BSE Code-537291 NS
Slide 2: 9MFY21 Performance
IMFY2I Performance ry Oe we. Nath Bio-Genes (I) Ltd. azar aa, attat AT
Slide 3: Progress on Strategic Priorities in 9MFY21
Progress on Strategic Priorities in 9MFY21 Actions Taken Outcome o Strengthen vegetable, field crops and plant o 15% Revenue growth YOY, non - cotton, non - nutrient portfolio faster than cotton & paddy portfolio grew at 23% Diversified and De-Risked paddy o Vegetable volume grew 25% Portfolio o Dec
Slide 4: Income Statement
Income Statement Particulars (INR 9MFY21 9MFY20 % Change (YoY) Q3FY21 Q3FY20 % Change (YoY) Mn) Total Revenue 2,525 2,197 14.9% 360 330 9.0% Gross Profit 1,404 1,243 13.0% 246 224 9.8% Gross Margin (%) 55.6% 56.6% 68.4% 67.9% EBITDA 556 480 15.9% 64 57 12.2% EBITDA Margin (%) 22.0% 21.8% 17.7% 17.2%
Slide 5: Segment wise Operating Performance
Segment wise Operating Performance Products Metric 9MFY21 9MFY20 YOY Growth Cotton Packets 1,318,000 1,140,000 15.61% Vegetable Quintals 4,000 3200 25.01% Paddy Quintals 66,089 53,000 24.69% Other Crops (Bajra, Maize) Quintals 36,425 30154 20.79% Win chi Win Litres 41,153 25,000 64.61% 4
Slide 6: Segmental Revenue Contribution- Cotton+Paddy share reducing
Segmental Revenue Contribution- Cotton+Paddy share reducing 5 9MFY20 Revenue 9MFY21 Revenue INR 2,197 Mn INR 2,525 Mn PNS 6% PNS Vegetables 4% 9% Vegetables 5% Cereals* 18% Cereals* 17% Cotton + Paddy Cotton + Paddy 67% 70% 9M FY20 9M FY21 • include: Jowar, Bajra, Maize, Mustard, Wheat
Slide 7: Highly Ranked Cotton Products – Gaining market share in declining market
Highly Ranked Cotton Products – Gaining market share in declining market o Volume growth of 16% in 9MFY21 3 YEAR OUTLOOK: o Sales return of 20% - as provisioned 20% + Growth CAGR o Special Campaign being undertaken to educate farmers Progress of Acreage under COTTON BT (in Lk Hectare) - STATE-WISE
Slide 8: Paddy: Strong volume growth
Paddy: Strong volume growth o Volume growth 25% in 9MFY21 3 YEAR OUTLOOK: o Research Efforts underway for new products 20% + Growth Presence of Paddy across India 10+ Key Products Key Markets Paddy Products launched in last 5 years Hybrid Vegetable Market Size: INR 25 – 30 Bn Loknath Bihar Gorakhn
Slide 9: Highly diversified vegetable Portfolio
Highly diversified vegetable Portfolio o Volume growth of 25% in 9MFY21 3 YEAR OUTLOOK: o High Margin segment : 60%+ margins 30% + Growth o New products being launched Hybrid Vegetable Market Size: INR 25 – 30 Bn Hybrid Vegetable Industry: Market Break-up 30+ Okra 14% Vegetable Products launched i
Slide 10: Win Chi Win : Major growth booster
Win Chi Win : Major growth booster o Sales almost doubled - Registered a strong volume growth 3 YEAR OUTLOOK: of 63% in 9MFY21 30% + Growth o High Margin segment : 70%+ Margins o Territories being enhances to sustain growth Geographical Presence of Win Chi Win • A growth enhancer for • Concentrate o
Slide 11: Innovate, Help, Grow
Innovate, Help, Grow Innovate Help Grow (5 Year Performance] 45 150,000 73% New Seeds Developed in last 5 Employment Generated Revenue Growth years 100+ years 50,000 1.2x Contract Farmers EBITDA Growth R&D Team experience #1-3 20,000+ 2.6x Direct Retailers PAT Growth ICAR Trials 15+ 15,000 440 bps P
Slide 12: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Building A Strong Organisation Developing Innovative Products Making the Portfolio more Balanced Balance Sheet becoming Stronger Strategic Presence across Seed Value Chain Delivering strong growth despite an uncertain environment 11
Slide 13: Working Capital Cycle – Impacted by higher inventory due to Covid
Working Capital Cycle – Impacted by higher inventory due to Covid All figures in INR mn H1FY21 H1FY20 Revenue 2,165 1,869 Inventories 1,742 1,324 Trade Receivables 1,231 1,294 Trade Payables 146 108 Net Working Capital 2,827 2,510 H1FY21 H1FY20 Inventory Days 205 181 Receivable Days 145 177 Payable
Slide 14: Stable Balance Sheet Despite Growth
Stable Balance Sheet Despite Growth Assets (INR Mn) H1FY21 H1FY20 Liabilities (INR Mn) H1FY21 H1FY20 Fixed Assets 2,452 2,310 Share Capital 190 190 Financial Assets 60 52 Reserves & Surplus 5,829 5,275 Other Non-current Assets 9 24 Long-Term Borrowings 6 7 Inventories 1,742 1,324 Long-term Provision
Slide 15: Corporate Overview
Corporate Overview ry Oe we. Nath Bio-Genes (I) Ltd. azar aa, attat AT
Slide 16: Strategy 4.0
Strategy 4.0 Altering strategy to create a more robust & de-risked business model Risks Change in Strategy Action Points o Portfolio Concentration o Limiting revenue contribution of any o Developing products in multiple Risk single crop to less than 25% food crops like Maize, Jowar, Bajra o Cotton &
Slide 17: Last 5 Years: Cotton & Paddy Driven Growth
Last 5 Years: Cotton & Paddy Driven Growth Revenue Growth Contributors (INR Mn) Cotton + Paddy: Aggregate Sales Contribution over last 5 years = 65%+ Plant Nutrient FY15 Revenue Cotton Paddy Vegetables Supplement Others FY20 Total 16
Slide 18: Next 5 Year: Multiple Growth Drivers
Next 5 Year: Multiple Growth Drivers Moving towards a Diversified and De-Risked Portfolio (% Sales) Plant Nutrient Supplement 11 12 12 14 Vegetables 11 14 16 16 Cereals* 15 17 19 20 Concentrated Cotton + Paddy 63 Portfolio: Cotton And Paddy 57 54 contribute to 60%+ 50 of Sales 2019-20 2020-21 2021-2
Slide 19: Building a Strong Organisation
Building a Strong Organisation • Imbibing a culture of continuous growth and strong governance 500+ • Hiring industry experts in each key area of Employees operations – R&D, Finance, Supply-Chain • Empowered teams, well-aligned with organisation vision 150+ • Strong risk management framework New Emp
Slide 20: Developing Innovative Products
Developing Innovative Products Holistic Products to Address Problems of • World Class R&D Infrastructure • Launched 36 Innovative Products Developed Low Yields across Segments Climate Change • 8-10 new products in pipeline in cotton • 20+ new products in pipeline in Vegetables Pest Infestations Seed
Slide 21: Strategic Presence Across the Seed Value Chain
Strategic Presence Across the Seed Value Chain Genetic Resources/Germplasms 18,000+ Germplasm Library R&D 100+ years R&D Team experience New Seed Development ICAR Trials 36 done at Seed varieties launched in last 3 years Commercial Production this stage 50,000 Contract Farmers Marketing and Distribu
Slide 22: Appendix
Appendix ry Oe we. Nath Bio-Genes (I) Ltd. azar aa, attat AT 21
Slide 23: Visionary Leadership; Attracting the Best Talent
Visionary Leadership; Attracting the Best Talent Mr. N Mr. S Nath Promoters are committed to sustainable Kagliwal Kagliwal MD growth and are working towards making Nath one Chairman of the best seeds company globally. Leadership Team Research & Product Development Nath leadership team shares the sam
Slide 24: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Net Debt (INR Mn) Net Worth (INR Mn) EBITDA Margin (%) PAT Margin (%) 23
Slide 25: Historical Income Statement
Historical Income Statement Nath Bio-Genes’ P&L Statement Particulars (INR Mn) FY20 FY19 FY18 Total Revenue 2799 2,309 1,917 Gross Profit 1536 1,253 1,073 Gross Margin (%) 54.9% 54.3% 56.0% EBITDA 547 433 404 EBITDA Margin (%) 19.5% 18.7% 21.1% Depreciation 14 14 10 Finance Cost 65 52 103 PBT 485 38
Slide 26: Historical Balance Sheet
Historical Balance Sheet Assets (INR Mn) FY20 FY19 FY18 Liabilities FY20 FY19 FY18 Fixed Assets 2,460 2,317 2,109 Share Capital 190 190 190 Financial Assets 52 52 51 Reserves & Surplus 5,386 4,885 4,502 Other Non-current Assets 15 20 11 Long-Term Borrowings 3 5 4 Inventories 2,043 1,554 1,235 Long-t
Slide 27: Thank You
Thank You For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 97693 64166 26
Nath Bio-Genes (India) — 9MFY21 Earnings Presentation on 6ix