Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q2 FY2023 Earnings Presentation
31 slides from Meghmani Organics's earnings presentation, Oct 21, 2022
Slide 1: Cover letter to stock exchanges
Ref: MOL/2022-23/53 October 21, 2022 To National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 Dear Sir, Sub: - Investor Presentation on Financial Re
Slide 2: Q2 & H1FY23 Results Presentation
Meghmani Organics Limited (Erstwhile known as Meghmani Organochem Limited) Q2 & H1FY23 Results Presentation October 2022 www.meghmani.com
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 4: Discussion Summary: Q2 FY23 Results Update
Discussion Summary Q2 FY23 RESULTS UPDATE 3
Slide 5: Q2 & H1FY23 Results: Key Highlights (Standalone)
Q2 & H1FY23 Results: Key Highlights (Standalone) Meghmani Organics Ltd. (MOL) revenues grew by 20% YoY to Rs. 6,552 million in Q2FY23 led by better realization from both Pigment and Agrochemical businesses despite volatility in commodity prices globally. The outlook for both segments remains posit
Slide 6: Q2 & H1FY23 Results: Key Highlights (Standalone)
Q2 & H1FY23 Results: Key Highlights (Standalone) Q2 FY23 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 43.0% 39.2% 14.2% 12.9% 11.9% 11.2% 20% 9% 13% 6,552 5,457 777 848 649 734 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 H1 FY23 YoY Analysis Revenues & Gross
Slide 7: Q2 & H1FY23 Results: Pigments Business
Q2 & H1FY23 Results: Pigments Business Rs Mn Q2 FY23 YoY Analysis Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 91% 83% 82 % 75% 700 9,000 7,496 30.0% 50.0% 8,000 2,500 600 9.2% 9.4% 20.0% 6,225 0.0% 1,849 7,000 6,000 -50.0% 2,000 1,717 500 10.0% 400 0.0% -1
Slide 8: Q2 & H1FY23 Results: Agrochemicals Business
Q2 & H1FY23 Results: Agrochemicals Business Q2 FY23 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 80% 83% 85 % 20,000 90.0% 40.0% 18,000 68% 19.3% 80.0% 1,600 30.0% 16,000 14,000 70.0% 8,000 1,300 16.3% 20.0% 10,242 60.0% 7,000 12,000 8,91
Slide 9: Q2 & H1FY23 Results: Profit & Loss Statement
Q2 & H1FY23 Results: Profit & Loss Statement Particulars (Rs. in Mn) Q2 FY23 Q2 FY22 YoY% H1 FY23 H1 FY22 YoY% FY22 Revenue from Operations 6,552 5,457 20.1% 14,383 10,414 38.1% 24,940 COGS 3,984 3,112 28.0% 8,369 5,887 42.2% 14,539 Gross Profit 2,568 2,345 9.5% 6,014 4,527 32.9% 10,401 Gross Margin
Slide 10: Balance Sheet Statement
Balance Sheet Statement Particulars (Rs. in Mn) Sep 22 Mar 22 Particulars (Rs. in Mn) Sep 22 Mar 22 Equity & Liabilities Assets Share Capital 254 254 Property, Plant & Equipment 7,215 7,317 Reserves & Surplus 15,666 14,146 Capital WIP 3,628 1,792 Shareholder's Funds 15,921 14,400 Intangible Assets 1
Slide 11: About Us
CHEMISTRY OF SUCCESS AT WORK ABOUT US
Slide 12: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals • Started in 1986 • Started in 1995 • Amongst top 3 global Phthalocyanine based pigment players • Among Top 10 producers of pesticides in India • 14% global market share • Products across entire value chain • FY22 R
Slide 13: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 14: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Strong & lean Balance Sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 19.0% 01 04 • ROCE – 12.2% in FY18 to 19% in FY22 over FY18-22, with higher contribution • ROE – 11.6%
Slide 15: Key Milestones
Key Milestones Foray into Titanium Dioxide (TiO2) pigment with Kilburn 2021 - 22 Chemicals acquisition Commissioned 2 New Plants in Agro Division: Doubling the capacity of 2,4-D to 21,600 TPA & New Formulation Plant 2020 - 21 Setting up new Multipurpose Plant (New Molecules) Independent list
Slide 16: Business Overview
BUSINESS OVERVIEW 15
Slide 17: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with 14% global market share & amongst top 3 (capacity wise) global Total Capacity – 33,180 TPA pigments players Capacity Location Pr
Slide 18: Titanium Dioxide (TiO2): Industry Overview
Titanium Dioxide (TiO2): Industry Overview Titanium Dioxide (TiO2): Snapshot Domestic Market Size (MTPA) • Titanium Dioxide (TiO2) is a naturally occurring white opaque mineral used a bright white pigment 3,20,000 3,00,000 • Key raw materials are ilmenite ore and sulphuric acid 3,00,000 2,80,000 • T
Slide 19: Investment Rationale for Kilburn Chemical's Acquisition
Investment Rationale for Kilburn Chemical’s Acquisition Sustainable Growth Diversification into new pigment 01 High profitability boosting the overall return ratios Import Substitution 02 Growing application of Titanium Dioxide (TiO2) in multiple industries Making notable contribution to the
Slide 20: Titanium Dioxide (TiO2): Project Dynamics
Titanium Dioxide (TiO2): Project Dynamics Existing Capacity : 16,500 TPA Proposed Capacity: 33,000 TPA Total Capex: Rs. 600 Cr Expected Revenue post: Expected Commercialization Phase I- Rs. 275 Cr Phase I- Rs.350 Cr Phase I – Q3 FY 23 Phase II- Rs. 325 Cr Phase II- Rs.750 Cr Phase II – Q3 FY 24 Expe
Slide 21: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) Net Sales & Exports* (Rs Mn) 82% 83% 35,000 79 % 81 % 77 % 78 % 29,362 7,555 30,000 25,982 25,226 25,694 25,349 6,048 6,406 7,100 5,877 5,784 25,000 6,100 20,000 5,100 4,045 4,100 15,000 12,915 3,100 2,100 10,000 1,100 100 FY18 FY19 FY20 FY21 F
Slide 22: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 50.0 43.0 • Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 pigments indus
Slide 23: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Used for captive consumption • Established global presence across Africa, Brazil, LatAm, US and Europe Pesticide Intermediates • Strong pan-In
Slide 24: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) 45,000 39,991 646 680 685 689 616 40,000 567 35,000 30,000 27,898 356 370 375 378 307 348 25,000 18,431 18,666 18,145 20,444 20,000 15,000 260 268 290 310 310 311 10,000 5,000 0 FY18 FY19 FY20 FY21 FY22 H1FY23 FY18 FY19
Slide 25: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 77 Bn by 2030 77.0 • Key drivers - growing population, declining arable land & rising pest 59.8 8.2
Slide 26: Strategy & Outlook
STRATEGY & OUTLOOK 25
Slide 27: Roadmap for achieving 20%+ top-line growth in next 3 years
Roadmap for achieving 20% + top-line growth in next 3 years • Among Top 3 producer of phthalocyanine pigments globally • Continue to focus on increasing domestic presence and capture market share Pigments • Expanding into new geographies • Diversification into new and lucrative white pigment TiO2. •
Slide 28: Financial Overview
CHEMISTRY OF SUCCESS AT WORK FINANCIAL OVERVIEW
Slide 29: Financial Snapshot
Financial Snapshot Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 19% * CAGR 22% 17.2% * CAGR 41% 16.5% 13.0% 14.5% 15.2% 15.2% 12.0% 11.9% 11.4% 44.7% 13.6% 12.3% 42.1% 42.5% 41.7% 41.8% 38.0% 3,794 24,940 3,080 2,799 2,323 2,363 2,189 6.2% 16,247 16,234 14,383 1,921 1
Slide 30: Financial Snapshot
Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 0.60 0.39 0.27 0.22 0.34 0.39 106 112 115 113 76 88 15,921 14,401 6,977 8,380 9,908 11,673 65 77 74 81 73 88 6,278 89 85 92 92 69 73 4,170 3,265 2,639 2,619 4,943 -48 -50 -51 -60 -67 -73 FY18 FY19 FY20 FY21 FY22 H1FY23 FY18 FY19 F
Slide 31: For Further Queries
For Further Queries: Gurjant Singh Chahal, CFO Bharat Mody, Advisor IR Strategies Email: ir@meghmani.com Email: bharat.mody@meghmani.com Phone: +91-79717 61000 Phone: 98980 46584