Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q4 FY2024 Earnings Presentation
37 slides from Chemplast Sanmar's earnings presentation, May 20, 2024
Slide 1: Stock exchange filing cover letter
20th May, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed a copy of Investor Pre
Slide 2: Investor Presentation – Q4 and FY '24
Chemplast Sanmar Limited Investor Presentation – Q4 and FY ’24
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the ‘Presentation’), which have been prepared by Chemplast Sanmar Ltd. (the ‘Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Performance Highlights
ee Performance Highlights 7 aA
Slide 5: Performance Highlights: Q4 & FY '24
Performance Highlights: Q4 & FY ’24 Rs. Cr Margin Key Highlights Revenues EBITDA PAT • Prices of both Suspension PVC and Paste PVC were lower by 19% and 12% respectively in FY ‘24 as compared to FY ‘23. Some signs of 8% -1% 2% 4% -10% -3% revival were however witnessed on a q-o-q basis with a margin
Slide 6: MD's Message
MD’s Message “From a financial performance perspective, FY ‘24 has been one of the toughest years for the Company in recent times. The year was marked with challenges on all fronts including pricing and margin pressures due to excessive dumping of PVC resins by China and other countries, sharp corre
Slide 7: Segmental Highlights – Quarterly
Segmental Highlights - Quarterly Rs. Cr Speciality Chemicals Other Chemicals# Suspension PVC Consolidated 1,147 Revenue Break-up 714 1,051 332 888 554 596 263 170 194 140 122 Q4 FY ’23 Q3 FY ’24 Q4 FY ’24 Q4 FY ’23 Q3 FY ’24 Q4 FY ’24 Q4 FY ’23 Q3 FY ’24 Q4 FY ’24 Q4 FY ’23 Q3 FY ’24 Q4 FY ’24 mt 13
Slide 8: Segmental Highlights – Yearly
Segmental Highlights – Yearly Rs. Cr Speciality Chemicals Other Chemicals# Suspension PVC Consolidated Revenue Break-up 4,941 2,992 3,923 1086 2,440 966 863 517 FY ’23 FY ’24 FY ’23 FY ’24 FY ’23 FY ’24 FY ’23 FY ’24 mt 552,219 538,545 325,007 325,641 Sales Volume 157,486 141,663 69,640 71,241 FY ’2
Slide 9: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Rs. Cr Particulars Q4 FY ’24 Q4 FY ’23 Y-o-Y Q3 FY ’24 Q-o-Q FY ’24 FY ’23 Y-o-Y Revenue from Operations 1,051 1,147 -8% 888 18% 3,923 4,941 -21% Cost of Goods Sold 724 747 -3% 603 20% 2,708 3,212 -16% Employee Cost 51 39 31% 42 22% 170 147 16% Other Expenses 255 2
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Cr Assets Mar ’24 Mar ‘23 Equity And Liabilities Mar ‘24 Mar ‘23 Non-Current Assets Equity a) Property, Plant And Equipment 3,846 3,124 a) Equity Share Capital 79 79 b) Capital Work in Progress 190 402 b) Other Equity 1,587 1,745 c) Right Of Use Asset c) Instruments en
Slide 11: Consolidated Cashflow Statement
Consolidated Cashflow Statement Rs. Cr Particulars Mar ’24 Mar ’23 Profit Before Tax (226) 172 Adjustments for: Non Cash Items / Other Investment or Financial Items 247 290 Operating profit before working capital changes 22 461 Changes in working capital (247) (12) Cash generated from Operations (22
Slide 12: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Rs. Cr Particulars Q4 FY ’24 Q4 FY ’23 Y-o-Y Q3 FY ’24 Q-o-Q FY ‘24 FY ’23 Y-o-Y Revenue from Operations 516 428 21% 439 18% 1,656 2,197 -25% Cost of Goods Sold 307 178 73% 235 31% 848 977 -13% Employee Cost 37 27 36% 29 26% 118 100 18% Other Expenses 188 191 -2% 18
Slide 13: Stand-alone Balance Sheet
Stand-alone Balance Sheet Rs. Cr ASSETS Mar ‘24 Mar ‘23 EQUITY AND LIABILITIES Mar ‘24 Mar ‘23 Non-Current Assets Equity a) Property, Plant And Equipment 2,918 2,187 a) Equity Share Capital 79 79 b) Capital Work in Progress 186 388 b) Other Equity 3,761 3,865 c) Instruments entirely equity in nature
Slide 14: Stand-alone Cashflow Statement
Stand-alone Cashflow Statement Rs. Cr Particulars Mar ‘24 Mar ‘23 Profit Before Tax (156) 167 Adjustments for: Non Cash Items / Other Investment or Financial Items 96 142 Operating profit before working capital changes (60) 308 Changes in working capital (29) 10 Cash generated from Operations (89) 3
Slide 15: Company Overview
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Slide 16: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… 4 Manufacturing Experienced management #1 #1 sites with a high degree of team with deep domain manufacturer Leading player manufacturer of backward integration (2) expertise of Speciality in Custom S-PVC in South Paste PVC Manufactured India
Slide 17: With a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar CCVL (1) Speciality Chemicals Other Chemicals Suspension PVC Speciality Paste PVC Custom Caustic Soda Hydrogen Chloromethanes resin Manufacturing peroxide Irrigation Auto and Paper End-user Footwear Furniture Pharma Agrochemicals Textile Paper
Slide 18: The Sanmar Advantage: Speciality Paste PVC
1. Speciality Paste PVC Part of speciality chemical division of Chemplast Sanmar. Largest manufacturer of Speciality Paste PVC resin in India • Manufactured at Mettur facility since 1968; 41 ktpa one-step process capacity added at Cuddalore in Q4-FY ‘24 CSL is the oldest player and one of only two c
Slide 19: The Sanmar Advantage: Custom Manufactured Chemicals
2. Custom Manufactured Chemicals Part of speciality chemical division of Chemplast Sanmar; growing Renowned for our Sustainability, Environmental and Safety rapidly on the back of 15 years of long-standing client relationships stewardship • Quality manufacturing at Berigai facility in a safe and sus
Slide 20: The Sanmar Advantage: Caustic Soda, Hydrogen Peroxide, Chloromethanes
3. Caustic Soda | Hydrogen Peroxide | Chloromethanes | Ref. Gas Part of other chemicals division of Chemplast Sanmar; These complete the integration story of the company • Generated as a joint product in the process of manufacture of Capacity chlorine Caustic soda 119,000 • Sold at 48-50% concentrat
Slide 21: The Sanmar Advantage: Suspension PVC
4. Suspension PVC Part of CCVL (100% subsidiary); Largest manufacturer of Strong customer relationships with a diversified dealer/ S-PVC in South India and second largest in India customer network • Manufactured at Cuddalore facility since 2009; 331 ktpa capacity The Sanmar Advantage • This facility
Slide 22: Well Positioned to Capture Growth
Well Positioned to Capture Growth
Slide 23: Well Positioned to Capture Growth
Well Positioned to Capture Growth ‣ Five decades track record ‣ State-of-the-art manufacturing units at strategic locations ‣ Significant capital commitment Chemplast Sanmar Limited ‣ High growth industry ‣ Strong focus on sustainability ‣ Committed leadership team with eminent board 22
Slide 24: Five decades track record
1. Five decades track record Commencement of Expansion of Marine terminal Capacity expansion: CCVL became a wholly Commissioned Phase 1 of manufacturing of production capacity facility and EDC Paste PVC to 66,000 tpa at owned subsidiary of our Custom Manufacturing PVC resins at Mettur of PVC resins
Slide 25: State-of-the-art Manufacturing Units
2. State-of-the-art Manufacturing Units… 01 Mettur, Tamil Nadu • The site consist of 4 plants with high degree of integration • Paste PVC – 66 ktpa • Zero liquid discharge facility • Hydrogen Peroxide – 34 ktpa • Sourcing of power from a captive power plant of 48.5 MW • Chloromethanes – 35 ktpa • Re
Slide 26: With a High Degree of Backward Integration
… with a High Degree of Backward Integration Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Imported Coal Caustic Soda Methanol EDC Power Plant Ref. Electrolysis Gases Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCl HCl 35 kt Salt 400kt (Vedara
Slide 27: Significant capital commitment of over Rs. 1,000 Cr
3. Significant capital commitment of over Rs. 1,000 Cr Speciality Paste PVC Capex Outlay • Brownfield project implemented at Cuddalore – this Rs. 360 Cr 66,000 41,000 mtpa 107,000 mtpa will leverage on CCVL’s existing Marine Terminal and other infrastructure mtpa Steady state Addition • One-step pro
Slide 28: High Growth Industry
4. High Growth Industry… Products Speciality Paste PVC Suspension PVC Custom Manufactured Chemicals • India heavily import dependent • India set to outpace global Agro-CMC • India heavily import dependent • Demand growing at a fair clip market - AIs and advanced Key • Enough headroom to grow – no ca
Slide 29: With CSL's unique position to capitalize on it
… with CSL’s unique position to capitalize on it Technology not Leverage Existing Infra Owns vacant industrial land and available on License 01 other infrastructure for future leg Paste PVC manufacturing technology is closely of expansion guarded and is not readily available on license 02 High Compl
Slide 30: Strong Focus on Sustainability
5. Strong Focus on Sustainability… Environment • Harmonious relationship with Friendly Practices Health & Safety Measures neighboring communities • Zero liquid discharge policy • Transport safety - Installation • Desalination plants at coastal of speed control & safety • Receive enquiries from poten
Slide 31: With various awards & recognitions
… with various awards & recognitions Accreditations Key Awards Sword of Sword of Honor Honor British Safety ECOVADIS SILVER Star Award from British Safety Council MEDAL National Safety Council Council 2021, 2020, Mettur Safety Safety Cuddalore Plant 2 One of the two winners of the ‘Sustainability FI
Slide 32: Committed Leadership Team With Eminent Board
6. Committed Leadership Team With Eminent Board Vijay Sankar Ramkumar Shankar Chairman & Managing Director Non Executive Director Dr. Krishna Kumar Rangachari N Krishnamoorthy Deputy Managing Director - Deputy Managing Director - Custom Manufactured Commercial Chemicals Division Aditya Jain Dr. Laks
Slide 33: Historical Financials
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Slide 34: Historical Segmental Highlights
Historical Segmental Highlights Rs. Cr Speciality Chemicals Other Chemicals Suspension PVC Total Revenue Break-up 3,880 5,892 1,272 2,992 4,941 1,086 863 3,923 966 740 2,510 3,799 913 2,440 3,123 749 1,863 511 517 376 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '2
Slide 35: Performance Trend
Performance Trend Revenue EBITDA Rs. Cr 13% 22% 20% 9% 1% Margin 5,892 1,197 4,941 855# 3,799 3,923 3,123 400 468 26 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '21 FY '22 FY '23 FY '24 PAT Net Debt 8% 11% 3% -4% 649 2,060 310++ 1459 152 741 -47 -362 -184 -158 FY '20 FY '21 FY '22 FY '23 FY '24 FY
Slide 36: Way Forward
Way Forward The Company expects margins to improve and Realisations are expected to be under pressure Speciality Paste Caustic soda 4 in the short-term and stabilize thereafter on the 1 sustain over the medium to long term driven by PVC the tightness in global demand supply back of growth in demand
Slide 37: Thank You
Company Chemplast Sanmar Ltd. CIN- L24230TN1985PLC011637 Harish Sridhar / C S Sayee Venkatram - Investor Relations grd@sanmargoup.com www.chemplastsanmar.com Thank You Investor relations advisor Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Shikha Puri / Shrikant Sangani shikha.pur