Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (July 2024)
35 slides from Fine Organic Industries's investor presentation, Jul 31, 2024
Slide 1: Exchange filing cover letter
Date: July 31, 2024 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Plot No. C/1, "6" Block, Exchange Plaza Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Security Code: 541557 Symbol: FINEORG Subject: Disclosure of informati
Slide 2: Investor Presentation July'24
Investor Presentation July’24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (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: The Fine Story of Success
VA FINE ORGANICS THE FINE STORY OF SUCCESS
Slide 5: Expertise in Oleochemistry
Expertise in Oleochemistry An established and reputed international player of 01 specialty additives, rooted in India A Technical Pinch of salt in the end product making a 02 HUGE difference in the product performance Making Things Better®️ We create Specialty additives for diverse applications, Sol
Slide 6: Why FINE additives are preferred?
Why FINE additives are preferred? Demand for specialty green additives is increasing Green additives from FINE have Increasing consumer awareness for successfully substituted potentially, environment has resulted in harmful chemicals across various remarkable preference for ‘Green’ industries like p
Slide 7: High-Performance Environment-Friendly Additives
High-Performance Environment-Friendly Additives
Slide 8: Over 50 years of Journey
Over 50 years of Journey Established R&D Centre Signed JV with Netherlands Amalgamated Fine Research Commissioned first food in Navi Mumbai based bakery premix and Development Centre Pvt additives facility in Dombivli manufacturer Zeelandia Ltd and Fine Specialty Commissioned large International Sur
Slide 9: A Fine Family
A Fine Family 850+ >35% >11% >8% Employees completed 25 Employee Strength Women Employees* 2nd Generation Employees years of journey with us Integrity is both a value as well as a character that is Creating and encouraging home grown leadership embedded in every Fine Organics employee, with the sign
Slide 10: Strength Formulae for Success of FINE ORGANICS
Strength Formulae for Success of FINE ORGANICS Strong R&D & Innovation 1 led Business Diversified Product + Portfolio 2 Technology Relentless Specialized Business Development Focus 3 Model 5 Highly Experienced Management Team Diversified Customer Base 4 = Innovative Products and Solutions Dominant P
Slide 11: 1. Strong R&D: Innovative Approach
1. Strong R&D : Innovative Approach Step 01 Strong R&D Capabilities ▪ Value Creation; Effective and Efficient Focus on technical support to customers ▪ Dedicated team of 33 Scientists and Developing New Technicians Products Step 02 In-House Design and Engineering Improving Process ▪ In-house capabil
Slide 12: With Industry Standards and Regulatory Credentials
With Industry Standards and Regulatory Credentials ▪ Setting new benchmarks in quality and consistency Fine’s facilities are fully geared towards ▪ High safety and productivity standards meeting growing Global Regulations ▪ Products are appreciated by customers worldwide for their consistent quality
Slide 13: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users ▪▪ Pioneer The diversity of oleochemistry hasemulsifiers enabled usintoIndia develop a wide range of additives for PVC, 01 ▪ Expanded in manufacturing Polyolefins, itsStyrenics, of food Polyamidesagents, range to anti-fungal & otherbread engineer
Slide 14: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Polymer Additives for Emollients for Feed Nutrition Specialty Additives Additives Coatings Cosmetics Additives Additives Additives for maintaining Used for various Used as anti-settling Enables manufacturing of Replaces harmful A wide range
Slide 15: 3. Specialised Business Model: Entry Barriers
3. Specialised Business Model : Entry Barriers Limited Players Customer Loyalty ▪ Lengthy & expensive product approval processes lead to ▪ Limited & small players in Indian specialty additives high switching costs for customers. Due to this, market. Globally Few players which are very large customer
Slide 16: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 510+ End Users 5200+ Countries 80+ Direct Customers 890+ Distributors 200+ Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness 15
Slide 17: 5. Highly Experienced Board of Directors
5. Highly Experienced Board of Directors Mukesh Shah - Chairman and Jayen Shah - Managing Director Tushar Shah - Executive Director and Director CEO • Joined in 1986. Holds a Master’s degree ▪ Joined in 1973. Holds a Bachelor’s ▪ Joined in 1989 and led several in Science degree in Science initiative
Slide 18: 6. Dominant Position
6. Dominant Position Pioneers and the Fully automated One of the few One of the few largest One of the few leading players to production global players in manufacturers of global players in the develop facility multiple the specialty food specialty green polymer additives proprietary production site
Slide 19: Our Sustainable Value Creation Framework
Our Sustainable Value Creation Framework Financial Capital We are committed to delivering value to all our stakeholders (i.e., employees, shareholders, governments, and communities) by injecting capital employment across our value chain Intellectual Capital Investing in research and consumer marketi
Slide 20: Industry growth potential factors
Industry growth potential factors Key Additives & End-Use Industry Growth Drivers Ingredients Applications FOOD ADDITIVES ▪ Emulsifiers ▪ Bakery products ▪ Increased consumption ▪ Anti-fungal agents ▪ Confectionery ▪ Increased number of end-user ▪ Beverage cloudifier ▪ Biscuits applications ▪ Anti-c
Slide 21: Industry growth potential factors
Industry growth potential factors Key Additives & End-Use Industry Growth Drivers Ingredients Applications COATING AND SPECIALITIES ▪ Lube additives ▪ Automotive lubricants ▪ Increase in infra-projects ▪ Property modifiers ▪ Roads and highway ▪ Growth in automobile sales ▪ Anti-corrosive additives ▪
Slide 22: Financial Highlights
~~ ~~ — Financial Highlights — ; ae
Slide 23: Q1FY25 Business Highlights
Q1FY25 Business Highlights Out of the total revenue, domestic revenue stood at 45% and export revenue at 55%. Demand in the domestic market remains quite strong. The US market has started picking up, whereas Europe is still experiencing slowdown. The Red Sea crisis and container availability
Slide 24: RM Prices Volatility
600 800 1000 1200 1400 1600 1800 2000 Apr-20 2200 May-20 Jun-20 Jul-20 Aug-20 SOYA REFINED OIL Sep-20 Source – RK Singhal (Vishwa Vyapar) SUNFLOWER REF OIL Oct-20 Nov-20 Price in Rs / 10 KG Dec-20 Jan-21 Feb-21 Mar-21 RM Prices Volatility Apr-21 May-21 Jun-21 Jul-21 GROUNDNUT OIL RAPESEED EXP OIL Au
Slide 25: Standalone Performance Highlights
Standalone Performance Highlights Revenues EBITDA PAT Rs in Crores 532 152 114 508 99 122 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 24
Slide 26: Q1FY25 Standalone Operating Performance
Q1FY25 Standalone Operating Performance Operating EBITDA & Revenues Margins Rs in Crores +17% 23.0% 17.1% 18.8% 25.8% 24.6% 24.0% 3,029 +19% 1,951 781 1,858 68% 52% 481 1,026 1,121 60% 349 Exports 55% 55% 508 236 192 32% 48% 122 Domestic 45% 45% 40% 55% 45% FY20 FY21 FY22 FY23 FY24 Q1FY25 FY20 FY21
Slide 27: Use of Capital (Standalone)
Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover Net Cash 12.26x Position -0.13x 7.10x -0.16x 7.39x 7.77x 4.90x -0.24x 5.40x 3.37x 3.26x 2.34x -0.31x 2.29x FY20 FY21 FY22 FY23 FY24 -0.52x FY20 FY21 FY22 FY23 FY24 Fixed Asset Turnover (Gross) = Net Revenue from Operations / Total G
Slide 28: Standalone Return Profile
Standalone Return Profile Return on Capital Employed Return on Net Worth 47.34% 38.80% 26.40% 26.15% 30.35% 26.66% 22.82% 19.75% 17.55% 15.55% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return on Net Worth = Net Profit After
Slide 29: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs in Crs) Q1FY25 Q1FY24 YoY Q4FY24 QoQ FY24 Revenue from Operations 508.3 532.1 -4.5% 521.5 -2.5% 1,951.1 Cost of Raw Material Consumed 293.6 304.0 294.2 1,119.9 Gross Profit 214.7 228.1 -5.9% 227.4 -5.6% 831.2 Gross Profit Margin 42.2% 42.9% 43.6% 42
Slide 30: Consolidated Performance Highlights
Consolidated Performance Highlights Revenues EBITDA PAT Rs in Crores 547 550 141 140 113 100 Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 29
Slide 31: Q1FY25 Consolidated Operating Performance
Q1FY25 Consolidated Operating Performance Revenues Operating EBITDA & Margins Rs in Crores 22.7% 17.5% 19.4% 27.5% 25.2% 25.4% +20% 3,023 23% 2,123 831 1,876 534 1,038 1,133 364 550 235 198 140 FY20 FY21 FY22 FY23 FY24 Q1FY25 FY20 FY21 FY22 FY23 FY24 Q1FY25 PAT & Margins Cash PAT & Margins 15.9% 10.
Slide 32: Use of Capital (Consolidated)
Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 12.24x -0.14x -0.18x 7.17x 8.04x -0.23x 4.95x -0.32x 4.18x 5.19x 3.40x 3.25x 2.29x 2.37x -0.55 FY20 FY21 FY22* FY23 FY24 FY20 FY21 FY22 FY23 FY24 Fixed Asset Turnover (Gross) = Net Revenue from Operations / Total Gross Block of Fi
Slide 33: Consolidated Return Profile
Consolidated Return Profile Return on Capital Employed Return on Net Worth 49.82% 40.10% 26.63% 27.09% 31.80% 27.00% 21.44% 24.74% 16.45% 18.41% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Return on Capital Employed = EBIT (excluding Other Income) / (Total Return on Net Worth = Net Profit Afte
Slide 34: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q1FY25 Q1FY24 YoY Q4FY24 QoQ FY24 Revenue from Operations 549.7 547.2 0.5% 546.9 0.5% 2,123.0 Cost of Raw Material Consumed 310.2 324.7 305.7 1,217.0 Gross Profit 239.5 222.5 7.7% 241.2 -0.7% 905.9 Gross Profit Margin 43.6% 40.7% 44.1% 42.
Slide 35: Thank You
THANK YOU Company: CIN: L24119MH2002PLC136003 Ms. Sonali Bhadani Chief Financial Officer investors@fineorganics.com Investor Relations Advisors: CIN: U74140MH2010PTC204285 Mr. Mandar Chavan / Mr. Rahul Agarwal +91 9699382195 / +91 9821438864 Email: mandar.chavan@sgapl.net / rahul.agarwal@sgapl.net w
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