Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Q2 FY22 Earnings Presentation
35 slides from Chemcon Speciality Chemicals's earnings presentation, Oct 30, 2021
Slide 1: Cover letter to stock exchanges
cttE c0f, eH@me@m Speciality Chemicals Limited CIN : 124231 cJ1988PLC0 1'1652 30h October, 2021 To, To, BSE Limited National Stock Exchange of India Limited Listing Compliance & Legal Regulatory Listing & Compliance Phiroze leejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Mumba
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – October 2021
Chemcon Speciality Chemicals Limited Investor Presentation – October 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemcon Speciality Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q2 & H1 FY22 Highlights
Q2 & H1 FY22 Highlights
Slide 5: Business Highlights
Business Highlights “We are pleased to share that we have delivered another quarter of positive performance as all our key products witnessed robust demand. We have clocked a total operating revenue of Rs 61.2 cr for the quarter. After the backward integration of P7 and P8 unit completed, the HMDS b
Slide 6: Quarterly Highlights
Quarterly Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 61.5 61.2 23.3 15.6 14.6 18.9 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 1,788 10% 1% 1% Others 1,420 Export 39% 43% 37% Oilwell 560 Oilwell 584 Speciality 89% HMDS 75
Slide 7: Half Yearly Highlights
Half Yearly Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 118.4 37.3 36.8 28.0 107.2 24.4 H1FY21 H1 FY22 H1FY21 H1FY22 H1FY21 H1FY22 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 2,765 2,849 Others 6% 1% 0% Export 34% 37% 24% Oilwell 560 1,048 Oilwell HMDS 1,421 Speci
Slide 8: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q2FY22 Q2FY21 Y-o-Y H1FY22 H1FY21 Y-o-Y Revenue from Operations 61.2 61.5 -0.5% 118.4 107.2 10.5% Cost of Goods Sold 30.5 25.7 58.0 50.5 Employee Cost 4.8 3.7 9.0 6.9 Other Expenses 7.0 8.8 14.6 12.3 EBITDA 18.9 23.3 -18.8% 36.8 37.3 -1.6% EBITDA Margin
Slide 9: Balance Sheet
Balance Sheet ASSETS (Rs. Crs) Sep-21 Mar-21 EQUITY AND LIABILITIES Sep-21 Mar-21 Non-Current Assets EQUITY AND LIABILITIES a) Property, Plant And Equipment 67.4 65.5 Equity a) Equity Share Capital 36.6 36.6 b) Capital Work in Progress 33.6 8.5 b) Other Equity 344.9 317.1 c) Right Of Use Asset 0.6 1
Slide 10: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Crs.) Sep-21 Mar-21 Net Profit Before Tax 37.6 76.1 Adjustments for: Non Cash Items / Other Investment or Financial Items (0.6) 6.4 Operating profit before working capital changes 37.0 82.4 Changes in working capital 15.8 (1.8) Cash generated from Operations 52.8
Slide 11: Company Overview
Company Overview
Slide 12: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality 3rd Largest Manufacturer of HMDS Chemicals Worldwide An ISO 9001:2015 and ISO Largest Manufacturer of CMIC in India 14001:2015 Certified Company Business Verticals: Pharmaceuticals 2nd Largest Manufac
Slide 13: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15 » Company was » First sale of few » Commenced HMDS » First export shipment of » First sale of CMIC » First sale of Calcium incorporated as chemical products Business in 2001 HMDS Bromide (Solution) Gujarat Quinone • Pyridine Private Limited Hydrobromide
Slide 14: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » Japan America » United Arab FY21 Export FY18-FY21 Contribution*: CAGR: » Italy Emirates ~29% ~17% » South Korea » Russia » Germany » Spain » People’s Republic of » Thailand China » Malaysia Over Two Decades of • Manufacturing
Slide 15: Entry Barriers
Entry Barriers Complex Chemistry Stringent Impurity Measure » The involvement of complex chemistry in » Our processes and products are subject to, and the manufacture of the Products, which is measured against, high quality standards and difficult to commercialize on a large scale stringent impurity
Slide 16: Key Long-Term Relationships
Key Long-Term Relationships Pharmaceutical Chemicals Oilwell Completion Chemicals Inorganic HMDS CMIC Bromides Shree Radha CC Gran Limited Overseas Liability Company Longstanding New Product New Customer Strong Base Clients Development Reach Top 7 customers Leading to increase Few customers age Well
Slide 17: Moving up the Value Chain
Moving up the Value Chain Added New Product like FY15 Revenue FY21 Revenue Business 4 CBC, 2,5 DHT & Others Rs 64 Crs Rs 243 Crs Commenced CMIC business in 2014 CMIC Rs 10 Crs Rs 84 Crs HMDS Rs 36 Crs Rs 121 Crs Commenced HMDS business in 2001 Bromides Rs 13 Crs Rs 31 Crs Commenced Bromide business
Slide 18: Board of Directors: Experienced Team
Board of Directors : Experienced Team Kamalkumar Rajendra Aggarwal Navdeep Naresh Goyal Chairman and Managing Director Deputy Managing Director » Holds Diploma in Petrochemical Technology (Plastic » He is currently associated with Super Industrial Lining Private Technology) from the Maharaja Sayajir
Slide 19: Board of Directors: Independent Directors
Board of Directors : Independent Directors Lalit Chaudhary Devendra Rajkumar Mangla Independent Director Independent Director » He holds a bachelors’ degree in commerce from the Sardar » He holds a bachelor’s degree in commerce from the University Patel University, Gujarat of Delhi. He is currently
Slide 20: Key Certifications
Key Certifications Key Certificates R&D Environment In-house laboratory to test Complying All Environment Laws » Raw materials procured » The Environment (Protection) Act, 1986 » New Products & Innovation » Water Prevention and Control of Pollution Act » Final products testing at the various stages
Slide 21: Product Overview
Product Overview
Slide 22: Market Overview
Market Overview Oilwell Completion HMDS CMIC Chemicals Global Market ~35,700 MT ~6,880 MT ~362,000 MT Capacity (CY19) Global Market ~25,390 MT ~3,927 MT ~246,000 MT Production (CY19) Chemcon Production 3,033 MT 1,796 MT 2,011 MT (FY21) Chemcon Share in > 10% > 40% ~1% Global Market Domestic Import (
Slide 23: HMDS
HMDS Hexamethyldisilazane / Hexamethyldisilane » HMDS, an organosilicon compound, is a reagent and a precursor to bases that are popular in organic synthesis and organometallic chemistry » HMDS is widely used in the pharmaceutical industry as a silylating agent in the process of manufacture of pharm
Slide 24: CMIC
CMIC Chloromethyl Isopropyl Carbonate » CMIC (chloromethyl isopropyl carbonate) is an antiviral drug intermediate product, which is a key intermediate for anti-AIDS and anti-hepatitis B drug Tenofovir » The downstream product of chloromethyl isopropyl carbonate, Tenofovir is a nucleotide antiviral d
Slide 25: Oilwell Completion Chemicals
Oilwell Completion Chemicals Inorganic Bromides: Calcium Bromide, Zinc Bromide and Sodium Bromide » Oilwell Completion Chemicals are used to complete the well and is normally a salty solution made up of chlorides or bromides » In addition to cleaning the wellbore, after the drilling is finished, com
Slide 26: Manufacturing Facilities
Manufacturing Facilities » P4 » P6 » P7 » P5 » P8 » P9 » P10 » P1 » P3 » P2 Improving Dedicated Plants Multipurpose Plants In-house Laboratory Warehouses Efficiencies 25
Slide 27: Manufacturing Facilities and Proposed Expansion
Manufacturing Facilities 3 Proposed Expansion Plants Located at Manjusar near 7 Operational Plants 6 Owned + 3 Lease Warehouses under process Vadodara, Gujarat Installed Capacity Volume Reactor Plant No Product categories Product Manufactured (MT P.A) Capacity (In KL) 2 Marketing Offices in P-3 & P-
Slide 28: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We intend to build two additional plants with a total volumetric reactor capacity of » India is net importer of both HMDS and CMIC, with about 40% and 62% of India’s 251.00 KL at P8 & P9 unit. These additional plants shall be utilised for the c
Slide 29: Way Forward
Way Forward Moderate Recovery Exploring Strong Growth in in Opportunities in Pharma Industry Oil Industry New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 28
Slide 30: Financial Highlights
Financial Highlights
Slide 31: Financial Trends
Financial Trends Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +15.6% +21.6% +28.8% 303.3 81.1 56.4 262.1 66.1 70.3 48.9 243.5 43.0 157.6 45.1 26.4 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 11,118 Others 2% 6% 3% 13
Slide 32: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) 130 131 121 107 84 88 65 56 48 33 34 31 HMDS CMIC Oilwell Production Volume 2018 2019 2020 FY21 (MTPA) 8,248 5,847 6,039 2,915 3,033 1,674 1,796 2,011 1,588 1,196 1,076 808 HMDS CMIC Oilwell 31
Slide 33: Key Ratios
Key Ratios Fixed Asset Debt/ equity (x) Turnover(x) 0.35 7.7 0.32 0.31 5.3 5.5 3.7 0.01 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ROCE (%) ROE (%) 61% 49% 45% 49% 34% 35% 21% 16% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 32
Slide 34: Utilisation of the Net IPO Proceeds
Utilisation of the Net IPO Proceeds Original Cost Utilisation Upto Unutilisation Amounts Particulars Revised Cost (as per Prospectus) 30-09-2021 as on 30-09-2021 Capital expenditure towards expansion of Manufacturing Facility 41.0 41.0 33.4 7.6 Incremental working capital requirement 90.0 90.0 40.0
Slide 35: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – L24231GJ1988PLC011652 Mr. Rajesh Gandhi - CFO Email – rajesh@cscpl.com www.cscpl.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shrikant Sangani / Ms. Pankti Majithia Email - shrikant.sangani@sgapl.net/ pankti.majithia@sgapl.
Chemcon Speciality Chemicals — Q2 FY22 Earnings Presentation on 6ix