Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Investor Presentation (May 2017)
29 slides from Aksharchem India's investor presentation, May 2017
Slide 1: AksharChem (India) Limited Investor Presentation May 2017
AksharChem (India) Limited Investor Presentation May 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (India) Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Results Update
Results Update 3
Slide 4: Financial Highlights FY17
Financial Highlights FY17 In Crs. Revenue EBITDA PAT +38% +147% +212% 79 52 260 188 32 17 FY16 FY17 FY16 FY17 FY16 FY17 EBITDA (%) PAT (%) +1,340 bps +1,110 bps 30.6% 20.0% 17.2% 8.9% FY16 FY17 FY16 FY17 The company paid Dividend of Rs. 3.5 per equity share for FY17 4
Slide 5: Company Overview
> Company ~ Overview
Slide 6: We Have Developed The EDGE
We Have Developed The EDGE 38% 58% 90% 0.2X Revenue Net Worth Exports Debt CAGR FY12-17 CAGR FY12-17 FY16-17 Mar 2017 Largest exporter of VINYL SULPHONE in India with over 45% share in exports of this product One of the largest exporters from India and among the largest players globally for CPC GREE
Slide 7: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades Became a listed entity IPO objective: to CPC Green CAPEX plan fund plant (Capacity 1,440 announced for capacity TPA) Division of CPC Green, CPC Incorporated as expansion from Asahi Songwon Blue, H-Acid & Audichem 600 TPA to 2,040 Merged into the Precipitated (India) Pvt
Slide 8: With Right Products
With Right Products Dye Intermediates Pigments Vinyl Sulphone CPC Green Intermediate product for Dye Used as colouring agents Manufacturing Made From Acetanilide Made From Crude Blue, PAN 68% of FY17 Sales 32% of FY17 Sales One of the fastest growing Vinyl Sulphone manufacturers in India 8
Slide 9: Diversified End User Industry
With Diversified End User Industry Textile Industry Rubber Vinyl Sulphone CPC Green Ink Plastics CPC Green CPC Green Leather CPC Green Paint CPC Green 9
Slide 10: Trust & Credibility
With Trust & Credibility 20 Year relationship 17 Year relationship 15 Year relationship 8 Year relationship 4 Year relationship 5 Year relationship Over 2 decades of Relationship with the biggest dye stuff houses in the world 10
Slide 11: Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 12: State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area 12
Slide 13: Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand Philippines FY17,% of Revenue SOUTH Malaysia AMERICA Brazil Indonesia ROTW, 4% Europe, AUSTRALIA 7% India, 10
Slide 14: Environmental Sustainability
With Environmental Sustainability Increasing Pollution Treatment Expenses (In Crs.) 12.0 10.8 9.7 5.9 4.8 2.6 FY12 FY13 FY14 FY15 FY16 FY17 ➢ It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses ➢ Internationally recognised processes that as a
Slide 15: Capacity Expansion
With Capacity Expansion 94% 9,720 9,240 9,240 80% 80% 75% 74% 7,800 7,786 7,428 Installed Capacity 6,881 Production 6,000 5,838 Capacity Utilisation 5,642 FY13 FY14 FY15 * FY16 FY17* Capital Expenditure Plan Existing Capacity Additional Capacity Post Expansion Capacity Approx. Cost of Project Propos
Slide 16: Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Founder, Chairperson & MD Joint Managing Director and CFO Her role is that of a strategic decision Responsible for production, finance, and policy maker to ensure growth. marketing and overall developments of the company. Mr. Ga
Slide 17: Awards & Accolades
With Awards & Accolades • Top Performer Women Entrepreneur-NON MSME • Trophy for self manufactured domestic sale of Dye 2016-17 Intermediates between Rs. 5 Crores to Rs. 15 Crores during the year 2014-15 • Second Award for self manufactured direct export of Dye Intermediates during the year 2014-15
Slide 18: Business Strategy
18 - ,.Business Strategy
Slide 19: Reinforcing Our Strengths…
Reinforcing Our Strengths… Strong Balance Sheet 0.2 Debt / Equity ratio as of Mar 2017 Debt Rating : Care A+ for long term banking facility & Care A1+ for short Better Planning term banking facility & CARE Achieved 80% capacity A+/CARE A1+ for long term/short utilisation through better term bank fac
Slide 20: … and Building a Sustainable Future
… and Building a Sustainable Future Widen our products portfolio with value added products Focus on developing strong business relationships with customers Focus on extending our presence in South East Asia, NAFTA and India to provide geographic hedge Maintain extensive supply chain network across t
Slide 21: Industry Opportunity
21 > _. Industry -- Opportunity
Slide 22: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) ➢ The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2019 : 8.4 1. Reduction in support by the Chinese government in terms of +10% ▪ Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 23: Strengths to drive Global Leadership
Strengths to drive Global Leadership Latest Technology Superior Products • Technology sourced from World • ZERO Product return till date Leader • Largest Exporter of VS : ~45% Share • Green Technology for Effluent • Largest Player of CPC Green Pigment Treatment key in Chemical Industry Customer Rela
Slide 24: Financials
Financials 24
Slide 25: Key Financial Parameters
Key Financial Parameters In Crs. Gross Profit EBITDA 134 79 52% 89% 74 78 64 33 27 32 25 6 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 PAT Cash PAT 52 57 92% 84% 20 21 21 16 17 20 4 5 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 25
Slide 26: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 58.8% 73.2% 38.8% 48.6% 22.4% 22.4% 19.6% 26.8% 25.2% 16.1% FY13 FY14 FY15* FY16 FY17 FY13 FY14 FY15* FY16 FY17 Debt to Equity (x) Current Ratio (x) 0.8 1.9 1.2 1.3 1.0 1.1 0.4 0.3 0.3 0.2 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Consistent dividend
Slide 27: Profit & Loss Statement
Profit & Loss Statement Particulars (In Crs.) Q4 FY17 Q4 FY16 Y-o-Y FY17 FY16 Y-o-Y Net Revenue from Operations 53.0 48.4 10% 259.7 187.7 38% Raw Material 31.4 27.5 125.4 109.3 Employee Expenses 2.5 1.8 7.5 6.3 Other Expenses 12.4 11.1 47.2 39.9 EBITDA 6.7 8.0 -16% 79.5 32.2 147% EBITDA % 12.7% 16.5
Slide 28: Balance Sheet
Balance Sheet Equity & Liabilities (In Crs.) Mar-17 Mar-16 Assets (In Crs.) Mar-17 Mar-16 Share Capital 7.3 7.3 Total Fixed Assets 70.7 60.5 Reserves & Surplus 126.5 77.7 Non Current Investments 23.7 22.5 Shareholders Funds 133.8 85.0 Long Term Loans & Advances 2.1 1.5 Long Term Borrowings 6.3 6.5 T
Slide 29: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Mr. Vishal Nair / Ms. Neha Shroff cs@aksharchemindia.com vishal.nair@sgapl.net / neha.s
AksharChem (India) — Investor Presentation (May 2017) on 6ix