Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — H1 FY19 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, October 2018
Slide 1: Sharda Cropchem Limited Q2 & H1 FY19 Results Update
SHARDA CROPCHEM LIMITED Q2 & H1 FY19 RESULTS UPDATE October 2018
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q2 & H1 FY19 Result Highlights Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q2 & H1 FY19: Key Highlights
Q2 & H1 FY19: KEY HIGHLIGHTS Q2 FY19 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* PAT & PAT MARGIN 35.5% 18.0% 8.8% 31.0% 14.7% 5.2% 3,097 501 455 2,782 244 11.4 % 9.1 % 33.6 % 162 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 H1 FY19 YoY ANALYSIS REVENUES & GROSS MARGIN E
Slide 5: Q2 & H1 FY19: Key Highlights
Q2 & H1 FY19: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q2 FY19 Revenues increased by 11.4% YoY from Rs. 2,782 mn to Rs. 3,097 mn • Region-wise growth YoY – Europe: -7.5%, NAFTA: 28.1%, LATAM: -17.0%, ROW: 101.8% • Q2 FY19 gross profit declined by 2.8% YoY from Rs. 988 mn to Rs. 960 mn. Gross margin decli
Slide 6: Division Wise Highlights
Q2 & H1 FY19: DIVISION WISE HIGHLIGHTS In Rs Mn Q2 FY19 YoY ANALYSIS: REVENUE BREAKUP H1 FY19 YoY ANALYSIS: REVENUE BREAKUP 3,097 7,671 2,782 6,193 1,494 713 514 1,002 38.8 % 49.0 % 2,384 6,177 2,268 5,190 5.1 % 19.0 % Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Agrochemicals Non-Agrochemicals Agrochemicals Non
Slide 7: Agrochemical Business
Q2 & H1 FY19: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,268 2,384 5,190 6,177 2,268 2,384 5,190 6,177 6.0% 8.1% 7.0% 8.8% 14.8% 16.1% 13.1% 11.0% 17.4% 12.3% 13.5% 13.0% 28.0% 38.7% 33.2% 30.2% 85.2% 83.9% 86.9% 89.0% 48.6% 40.9% 46.3% 48.0% Q
Slide 8: Agrochemical Business: Revenue by Product Type
Q2 & H1 FY19: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 25% 29% H1 FY18 48% H1 FY19 46% 27% 25% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues grew by 13.0% YoY in H1 FY19 to Rs 2,814 mn • Fungicides revenues grew b
Slide 9: Non-Agrochemical Business
Q2 & H1 FY19: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 514 713 1,002 1,494 19.4% 17.6% 39.8% 32.5% 5.3% 7.2% 7.6% 43.5% 8.0% 43.4% 26.2% 24.6% 31.8% 27.6% 31.8% 33.7% Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Europe NAFTA LATAM RoW • Revenues in Europe grew by 20.3% in Q2 FY19 to Rs 197
Slide 10: Working Capital Analysis
Q2 & H1 FY19: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 109 114 109 74 72 79 Q2 FY18 Q2 FY19 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS H1 FY18: 69 H1 FY19: 102 * Calculated on average inventory, receivables, creditors 10
Slide 11: Consolidated Profit & Loss Statement
Q2 & H1 FY19: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY19 Q2 FY18 YoY % H1 FY19 H1 FY18 YoY% FY 18 Revenue from Operations 3,097.4 2,781.6 11.4% 7,670.9 6,192.8 23.9% 17,133.9 COGS 2,137.8 1,794.0 19.2% 5,284.3 4,102.5 28.8% 11,437.4 Gross Profit 959.7 987.6 -2.8% 2,386.6 2,0
Slide 12: Consolidated Balance Sheet
Q2 & H1 FY19: CONSOLIDATED BALANCE SHEET Particulars (In Rs Mn) H1 FY19 FY18 Particulars (In Rs Mn) H1 FY19 FY18 Equities & Liabilities Assets Shareholder's Funds Non-current Assets Equity And Share Capital 902.2 902.2 Property, Plant And Equipment 147.7 106.8 Other Equity 10,856.4 10,446.0 Capital
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registrat
Slide 14: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited i ° ree es . = oe we 14
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 21 % CAGR: 22 % CAGR: 14 % 17,134 19.6% 16.3% 22.2% 22.3% 20.2% 14.1% 11.6% 14.3% 13.6% 11.1% 13,992 12,186 10,611 3,124 3,454 1,904 1,908 7,904 2,714 1,751 1,727 1,111 1,230 1,550 FY14 FY15 FY
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 30TH SEP 2018 % HOLDING MARKET DATA AS ON 30TH OCT 2018 HDFC MF 8.19% Market capitalization (Rs Mn) 29,844.9 Pinebridge 4.14% Price (Rs.) 330.8 No. of shares outstanding (Mn) 90.2 L & T Mutual Fund 3.73% Face Value (Rs.) 10.0 DSP Blackro
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Conrad Fernandes Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: cfernandes@shardaintl.com Email: nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9819289131