Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q1 FY2020 Earnings Presentation
35 slides from Himadri Speciality Chemical's earnings presentation, Aug 14, 2019
Slide 1: Stock exchange filing cover letter
Ref. No: HSCL / Stock-Ex/2019-20/48 Date: 14/08/2019 E-mail: blsharma6Dthimadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kuria Complex, Dalal S
Slide 2: Investor Presentation August 2019
INVESTOR PRESENTATION August - 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Standalone Performance Highlights
Standalone Performance Highlights Revenue EBITDA PAT 605 140 77 583 72 73 524 123 121 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q1FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Rs. In Crs 3
Slide 5: Sustainable Profitability - Change in Product Mix
Sustainable Profitability - Change in Product Mix Sales Volume (MT) EBITDA/MT (Rs.) Lower Offtake – Due to volatility in Focus on Value-addition and Cost global environment & user industries Optimisation 99,200 15,063 14,157 13,886 88,808 80,167 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 On Standalon
Slide 6: Strong Balance Sheet
Strong Balance Sheet Rs. In Crs. Net Working Capital Long Term Borrowings Loan • Long Term Borrowings have been reduced 233 314 223 • Working Capital Loan has been 197 increased due to one-time higher procurement of raw material from global markets at the quarter end Mar 19 Jun 19 Mar 19 Jun 19 5
Slide 7: Standalone Profit & Loss
Standalone Profit & Loss Profit and Loss (in Rs. Crs) Q1FY20 Q1FY19 YoY Q4FY19 QoQ FY19 Revenue from Operations 524 605 -13.4% 583 -10.2% 2,377 Raw Material 337 407 388 1,588 Gross Profit 187 198 -5.3% 196 -4.4% 789 Employee Cost 17 14 16 58 Other Expenses 50 44 56 192 EBITDA 121 140 -14.0% 123 -2.1
Slide 8: Ready for the next phase…
Ready for the next phase… Next Phase of Innovation and R&D Next Phase of High-Value Products Next Phase of Earnings Next Phase of Growth 7
Slide 9: Next Phase of Innovation and R&D
Next Phase of Innovation and R&D An Techno- Innovation Commercial Mindset Team World Class Laboratory Large Knowledge Continuous Bank R&D 12 7% 11% New grades introduced & Reduction in energy Increased productivity of commercialised in consumption in certain certain grades through Speciality Carbon
Slide 10: Next Phase of High Value Products
Next Phase of High Value Products Coal Tar Advance Carbon Material Carbon Black Specialty Carbon Black Sulphonated Naphthalene Naphthalene Formaldehyde Most Integrated Global well-diversified Product portfolio with Strong Speciality Carbon Corporation Globally Competitive 9
Slide 11: Expansion in High-Value Products
Expansion in High-Value Products Specialty Carbon Black Advance Carbon Material Increase application of Focus on Speciality Set-up of Specialty Carbon Black Advance Carbon Materials project lithium-ion batteries in Carbon with High at West Bengal with an annual of 20,000 MTPA is progressing well the
Slide 12: Next Phase of Earnings
Next Phase of Earnings Standalone Performance Rs. In Crs Revenue EBITDA# PAT 21% 20% 27% 2,377 538 307 1,971 450 243 FY18 FY19 FY18 FY19 FY18 FY19 Key Milestones Revenue EBITDA# PAT Crossed Crossed Crossed Rs. 2,000 Rs. 500 Rs. 300 Crores Crores Crores mark mark mark #EBITDA excludes FX Fluctuation
Slide 13: Priorities for Cash
Priorities for Cash NEW CAPACITIES DEBT IMPROVED OPERATING ANNOUNCED REDUCTION EFFICIENCIES Working Capital days 200 Focus on Speciality Carbon with High Value- -111 additions & Performance » Net Debt decreased by INR 688 Crores from INR 163 1,118 Crs. in FY14 to INR 430 Crs. in FY19 thus 148 » Set-
Slide 14: Balance Sheet Strength & Financial Flexibility
Balance Sheet Strength & Financial Flexibility Net Debt Net Debt / EBITDA* 5.26x Strong Balance Sheet and Sufficient Financial flexibility… 2.90x 1,118 Rs. in Crs 1,030 1.40x 0.80x 805 Mar-16 Mar-17 Mar-18 Mar-19 717 629 Net Debt / Equity 430 0.87x 0.67x 0.43x 0.26x Mar-14 Mar-15 Mar-16 Mar-17 Mar-1
Slide 15: Operating Efficiency leading to Higher Returns
Operating Efficiency leading to Higher Returns Working Capital (No. of days) ROCE (excl. CWIP) (%) +395 bps Improved by 26.2% 112 23 days 22.3% 89 Mar-18 Mar-19 ROCE (excl. CWIP) =EBIT/( Equity + Total Debt – Cash & Cash Equivalents – CWIP) ROCE (%) +262 bps 24.6% 22.0% Mar-18 Mar-19 Cash generation
Slide 16: Next Phase of Growth
Next Phase of Growth High Value Right Capacity Strong Clientele Product Pipeline Product Strategic Strong R&D Leadership Location Global Diversified End Management Cutting Edge Markets Team Technologies 15
Slide 17: Strategic Growth Priorities
Strategic Growth Priorities Advance Carbon Coal Tar Pitch Carbon Black SNF Material Serving core sectors of economy Focus on Speciality Carbon with Increase application of lithium-ion Widen the Product Portfolio by through Aluminium & Graphite High Value-additions & batteries in the Sunrise Sectors
Slide 18: Financial Performance
ass Ps Financial Performance p ~ Tih 17
Slide 19: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (In Rs. Crs) FY19 FY18 Y-o-Y (%) Net Revenue From Operations 2,422 2,022 20% Cost of Materials Consumed 1,600 1,365 Gross Profit 822 656 25% Employee Benefits Expense 60 48 Other Expenses 200 155 EBITDA 563 452 24% Other Income 8 5 Foreign Exchange Fluctuation
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (in Rs. Crs.) Mar’19 Mar’18 Particulars (in Rs. Crs.) Mar’19 Mar’18 ASSETS EQUITY AND LIABILITIES Non-Current Assets 1,637 1,556 EQUITY 1,631 1,414 Property, Plant and Equipment 1,168 1,175 Equity Share Capital 42 42 Capital work-in-progress 133 22 Other Equity
Slide 21: Validation through Awards & Recognition 2018
Validation through Awards & Recognition 2018 CII Water Management Award World’s 100 Greatest Brands Winner in Within the Fence Category in CII’s Water Received at the Fourth edition of India-UAE Business and Management National Competition for Excellence Social Forum Asia Pacific Entrepreneurship Aw
Slide 22: Business Overview
Business Overview 21
Slide 23: Product Development was a Clear Focus
Product Development was a Clear Focus 2010 2019 » Aluminium Grade Pitch » Heavy Creosote Oils » Graphite Grade Binder Pitch » Anthracene Oil/Carbon Black » Coal tar pitch – Binder grade » Graphite Grade Zero QI Oil/ CT Oil » Coal tar pitch – Impregnating (Quinolene Insoluble) coal tar » SNF » Carbon
Slide 24: Graphite Grade Coal Tar Pitch
Coal Tar Pitch : Critical Input in Downstream Industries Coal Tar Pitch Graphite Grade In Graphite Electrode Binder Pitch Manufacturing Graphite Grade Zero QI Coal tar Anode Impregnating Pitch Special Pitches Material In graphite electrode, nipple Used by DRDO in long range warhead missiles. In carb
Slide 25: Specialty Carbon Black: Niche Applications
Specialty Carbon Black : Niche Applications Forward Integration to convert Coal Tar Oil into Carbon Black 3rd Largest Carbon Black Producer in India with Anything that is manufactured Black 120,000 MTPA has With Superior Inhouse Raw Carbon Black Material & R&D Capabilities launching Speciality Carbo
Slide 26: Naphthalene Value Proposition
Naphthalene Value Proposition Special Grade Naphthalene Special Grade Naphthalene is formulated to cater customer's niche requirements in dyestuff and dyes intermediates application Naphthalene Moth Ball Moth Balls is made by using superior grade chemical composition and leading-edge techniques in c
Slide 27: SNF: Next Generation products
SNF : Next Generation products SNF – Next Generation Product for the Construction Chemical Industry (Admixture), Agro chemicals, Latex, Gypsum Largest Indian manufacturer of SNF with an installed capacity of 68,000 MTPA Highest Purity SNF manufactured from In-house produced Naphthalene Penetration o
Slide 28: High Performance Construction Chemicals
High Performance Construction Chemicals » Sulphonated Naphthalene Formaldehyde (SNF) is a speciality chemical condensate that helps improve concrete mixes by dispersing cement particles for extended workability and reinforcing compressive flexural strength ▪ Naphthalene, one of the by product of Coa
Slide 29: Advance Carbon Material
Advance Carbon Material Forward Integration from Coal Tar to Advance Carbon Material Anode Material used in Lithium-ion Batteries Only Producer of Advance Carbon Material in India Best in class Proprietary Technology With Cost Leadership 28
Slide 30: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Missiles Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 29
Slide 31: If You Can Be One Thing, Be Dependable
If You Can Be One Thing, Be Dependable CTP Clientele CB Clientele Others Clientele 30
Slide 32: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : CIN: L27106WB1987PLC042756 CIN: U74140MH2010PTC204285 Mr. Somesh Satnalika Ms. Payal Dave / Ms. Neha Shroff VP Strategy & Business Development +91 9819916314/ +91 7738073466 Email: ssatnalika@himadri.com Email: payal.Da
Slide 33: Strong and Sustainable Business Performance
Strong and Sustainable Business Performance ✓ Revenues at Rs. 524 crore ✓ EBITDA at Rs. 121 crore ✓ EBITDA Per MT has increased by 6.4% Y-o-Y ✓ PAT at Rs. 73 crore Investor Release: 14th August 2019, Kolkata Himadri reported strong and sustainable performance across Revenues, EBITDA & PAT for the qu
Slide 34: CEO commentary on results
Commenting on the results and performance, Mr. Anurag Choudhary, CEO of Himadri Speciality Chemical Ltd said: “Your Company has reported strong results on sustainable basis and was able to maintain its profitability while increasing the EBITDA per MT by 6.4% on Y-o-Y basis due to better product mix.
Slide 35: About Himadri Speciality Chemical Ltd
About Himadri Speciality Chemical Ltd Himadri Speciality Chemical Ltd (“Himadri Speciality”) was established in 1987, is a leading Carbon corporation with one-of-its-kind vertical integration in the world with headquarters in Kolkata, West Bengal. The Company is a market leader and significant marke
Himadri Speciality Chemical — Q1 FY2020 Earnings Presentation on 6ix