Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q1 FY2019 Earnings Presentation
40 slides from Himadri Speciality Chemical's earnings presentation, Aug 13, 2018
Slide 1: Cover letter to stock exchanges
P 411 Himadri Ref. No: HSCL / Stock-Ex/2018-19/54 Date: 13 August 2018 E-mail: bIsharmal'iOimadri.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, BandraKurl
Slide 2: Investor Presentation August 2018
(Formerly known as Himadri Chemicals & Industries Ltd.) INVESTOR PRESENTATION August - 2018
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: Business Updates & Performance Highlights for Q1FY19
Business Updates & Performance Highlights for Q1FY19 3
Slide 5: Another New Record Quarterly Performance
Another New Record Quarterly Performance EBITDA* Volume EBITDA Volume Highest Highest Rs. 140 Cr 99,200 MT Ever Ever EBITDA/MT* PAT EBITDA/MT PAT Rs. 14,157 Rs. 77 Cr Highest Highest Ever Ever * Excludes FX Fluctuation loss (net) of Rs 4.68 crores for the quarter ended 30 June 2018 4
Slide 6: Fruits of our Strong Shoots
Fruits of our Strong Shoots 66% 45% 157% EBITDA (in Rs. Crs.)* EBITDA / MT* PAT (in Rs. Crs.) 140 14,157 77 +66% +45% +157% 100 10,592 50 6,769 51 12 Q1FY17 Q1FY18 Q1FY19 Q1FY17 Q1FY18 Q1FY19 Q1FY17 Q1FY18 Q1FY19 * Excludes FX Fluctuation Gain / Loss 5
Slide 7: Improving Quarterly Run Rate
Improving Quarterly Run Rate EBITDA/MT (In Rs.)* Volumes (MT in ‘000) +12.7% 14,157 380 357 11,852 299 +52.2% 6,920 5,114 99 FY16 FY17 FY18 Q1FY19 FY16 FY17 FY18 Q1FY19 * Excludes FX Fluctuation Gain / Loss 6
Slide 8: Capacity Expansion in High Margin Products
Capacity Expansion in High Margin Products Advance Carbon Material » Set-up of manufacturing facility of Advance Carbon material (HSCP) at West Bengal with annual capacity of 20,000 MT Specialty Carbon Black » Set-up of Specialty Carbon Black at West Bengal with an annual capacity of 60,000 MT The E
Slide 9: Credit Rating Upgrade
Credit Rating Upgrade Credit Rating Assigned Facilities Rating Remarks » In June 2018, ICRA has assigned the Credit rating to company's credit facilities and Commercial Paper ICRA A1+ Assigned instruments as mentioned: Facilities Rating Remarks Credit Rating Upgrade Long Term / Short Term CARE A+; S
Slide 10: Fortune India The Next 500 Awards 2018
Fortune India The Next 500 Awards 2018 Himadri Conferred with the Prestigious Fortune India The Next 500 Awards 2018 Recognised as 1 among 25 Companies for the Top Wealth Creators over the last three years The award was received by Mr. Anurag Choudhary, CEO, Himadri Speciality Chemical from Mr. Jaya
Slide 11: Standalone Profit & Loss
Standalone Profit & Loss Particulars (In Rs. Crs) Q1 FY19 Q1 FY18 Y-o-Y (%) FY18 Net Revenue From Operations 605 452 34% 1,971 Cost of Materials Consumed 407 321 1,325 Gross Profit 198 132 50% 646 Employee Benefits Expense 14 10 47 Other Expenses 43 21 150 EBITDA 140 100 40% 450 Other Income 3 1 7 F
Slide 12: Business Overview
Himadri Speciality Chemical Ltd Business Overview Him:
Slide 13: Value Creation Journey by way of Vertical Integration
Value Creation Journey by way of Vertical Integration
Slide 14: Leadership Position in our Products
Leadership Position in our Products Coal Tar Pitch Carbon Black 70% 17% Market Leadership as % of Total 85% Domestic Demand including Imports Source: Management Estimates (India Market Share) 13
Slide 15: Product Development was a Clear Focus
Product Development was a Clear Focus 2010 2018 Coal tar pitch – Binder grade Aluminium Grade Pitch Anthracene Oil/Carbon Coal tar pitch – Impregnating Graphite Grade Binder Pitch Black Oil/ CT Oil Carbon Black Graphite Grade Zero QI SNF Advanced Carbon Material (Quinolene Insoluble) coal tar PCE im
Slide 16: To make an Impact on the End Markets
To make an Impact on the End Markets Graphite Lithium – Ion Aluminium Missiles Electrodes Batteries Anti Corrosive Paints, Plastic & Rubber Industries Power Material Fibre Construction Wood Preservative Specialized Infrastructure Chemical Oils Products 15
Slide 17: If You Can Be One Thing, Be Dependable
If You Can Be One Thing, Be Dependable CTP Clientele CB Clientele Others Clientele 16
Slide 18: Fit for Future: Products & its Potential
Fit for Future: Products & its Potential Accelerating Core Business & Finding next Core Business
Slide 19: Product Leadership – Accelerating Core Business
» Product Leadership – Accelerating Core Business ▪ Coal Tar Pitch ▪ Carbon Black ▪ Naphthalene ▪ Sulphonated Naphthalene Formaldehyde (SNF) 18
Slide 20: Coal Tar Pitch
Coal Tar Pitch Caters to more than Two-Third of demand for Indian Graphite and Aluminium Industries Supplier of upto 95% of Coal Tar Pitch requirements of certain Smelters One amongst the Few Global Manufacturers to Produce Zero QI (Quinolene Insoluble) – coal tar impregnated pitch and Advanced Carb
Slide 21: Graphite Grade 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 carbon composites, re
Slide 22: Inelastic & Growing Demand
Inelastic & Growing Demand » Inelastic Demand : Coal Tar Pitch is used in pre-baked anode in aluminium smelter to produce aluminium. Aluminium Smelting is a Continuous Process - Smelter cannot be stopped and restarted easily » Complex Chemical : Coal Tar Pitch is a Complex chemical with 22 Chemical
Slide 23: Carbon Black
Carbon Black Forward Integration to convert Coal Tar Oil into Carbon Black 3rd Largest Carbon Black Producer in India with Anything that is 120,000 MTPA manufactured Black has With Superior Inhouse Raw Carbon Black Material & R&D Capabilities launching Speciality Carbon Black range with niche applic
Slide 24: Benefits of Forward Integration
Benefits of Forward Integration Raw Material Leverage R&D Access to superior, consistent & Leveraged R&D strength to develop a customized Raw Material feed from range of speciality carbon black inhouse distillation units Raw products Material Leverage Leverage R&D R&D Power Generation Power Tail gas
Slide 25: Large Market Potential
Large Market Potential Indian Tyre - Commissioned Projects Speciality Carbon Black Rs. Crore in MTPA 1,016,000 21,000 17,000 53,600 India demand Global demand FY14 - 17 FY18 - 22E 2016 2016 Indian Tyre Market is ~ Rs. 500 Bn in FY16 Speciality black market in India is currently small at less than 5%
Slide 26: Naphthalene
Naphthalene Value-additions through Capacity Refined Doubled for Naphthalene and refined Naphthalene SNF Also formulate Special Grade Naphthalene 25
Slide 27: 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 28: Sulphonated Naphthalene Formaldehyde (SNF)
Sulphonated Naphthalene Formaldehyde (SNF) 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 P
Slide 29: 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 30: Future Products – Finding Next Core Business
»Future Products – Finding Next Core Business ▪ Advance Carbon Material 29
Slide 31: 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 30
Slide 32: Application in Sunrise Sector
Application in Sunrise Sector Lithium-ion Battery Mobile Tablets Electric Vehicle Motor Train Others Digital Power Tool Laptop Energy Storage Cameras 31
Slide 33: At early stage of Growth
At early stage of Growth Global Lithium-ion Battery Demand Projection » First Indian Company to develop anode material of both Battery Cell demand (GWh/a) Synthetic and Natural varieties for lithium-ion batteries 1550 ▪ Best-in-class Proprietary technology to +31% process Coal Tar to Advance Carbon
Slide 34: Looking Forward with Confidence
Looking Forward with Confidence
Slide 35: Strongly positioned to capture Growing Markets
Strongly positioned to capture Growing Markets Global Management Team Right Capacity Strategic Location High Value Product Product Cutting Edge Pipeline Leadership Technologies Strong Growing End Clientele Markets Strong R&D 34
Slide 36: Strategic Growth Priorities
Strategic Growth Priorities Carbon Black SNF Increase application of Increase in demand in Focus on Speciality Carbon lithium-ion batteries in the Widen the Product downstream industries with High Value-additions & Sunrise Sectors like Portfolio by Aluminium & Graphite Performance Electric Vehicles,
Slide 37: 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 38: Another New Record Quarterly Performance (Media Release)
Another New Record Quarterly Performance ✓ Highest Ever Sales Volume of 99,200 MT ✓ Record EBITDA/MT of Rs.14,157 ; Growth of 34% Y-o-Y ✓ Record EBITDA of Rs. 140 Crores; Growth of 40% Y-o-Y ✓ Record PAT of Rs. 77 Crores ; Growth of 53% Y-o-Y Release: 13th August 2018, Kolkata Himadri Speciality Che
Slide 39: CEO commentary on results
Commenting on the results and performance, Mr. Anurag Choudhary, CEO of Himadri Speciality Chemical Ltd said: “It gives me immense pleasure to inform you all that Financial Year 2019 has started with record performance. We have reported highest ever Revenue, Volume, EBITDA and Profitability. We have
Slide 40: Safe Harbor Statement and contact details
Safe Harbor Statement Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for p
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