Gujarat Narmada Valley Fertilizers & Chemicals Ltd. · NSE:GNFC
Gujarat Narmada Valley Fertilizers & Chemicals — Q4 FY2022-23 Earnings Presentation
37 slides from Gujarat Narmada Valley Fertilizers & Chemicals's earnings presentation, May 18, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
. = 4G v bY A] Gujarat Narmada Valley LL G2 [+7] f= Fertilizers & Chemicals Limited GNEFC gan Amit MShotsav CIN : L24110GJ1976PLC002903 An 1SO 9001, 1SO 14001, ISO 45001 & ISO 50001 Certified Company P.O. Narmadanagar - 392015, Dist. Bharuch, Gujarat, India Ph. (02642) 247001, 247002 Website: www.gn
Slide 2: Investor Presentation - Conference Call - Q4 FY 22-23
Gujarat Narmada Valley Fertilizers & Chemicals Ltd INVESTOR PRESENTATION - CONFERENCE CALL - Q4 FY 22-23 May - 2023
Slide 3: Cautionary Note - Forward Looking Statement
= Cautionary Note - Forward Looking Statement v" Only matters in the public domain can be subject matter of discussion in this meeting. v' As a matter of policy, we do not provide any forecast about the future business situation. v" We do not comment or give guidance on future results or business ou
Slide 4: Agenda
(01 Corporate Overview (02; Financial Performance (03 Feedstock Spread
Slide 5: Corporate Overview
01 Corporate Overview
Slide 6: Our Facilities
Our Facilities Installed Capacity Corporate Office Segment Products (KTPA) Intermediates: Ammonia Oil Methyl Formate Nitro Benzene MTD (2 plants) Bharuch Chemicals Finished: Acetic Acid les Aniline Bharuch Complex Concentrated Nitric Acid (3 plants) Since 1982 Ethyl Acetate Formic Acid Methanol (3 p
Slide 7: The Journey
The Journey ANP, WNA 1 and Syn-Gas generation Concentrated Ammonia- Formic u CAN 1 rea 1985 Acid 1991 1995 unit for Methanol 1998 Nitric Acid 2 1982 pemepmcamfponcdecanpacaabanadaanadannan] Methanol - | 1989 Methanol - li 1991 Acetic 1998 Aniline & Toluene 1990 Di-isocyanate 1 Acid Farmers served Wo
Slide 8: Key strengths
Multi-product basket which helps to Robust manufacturing technologies; keep financial stability absorbed and adopted from technology experts worldwide Record capacity utilization in all plants Lo Consistent profit since inception PAN India distribution network Strong technical team with deep experie
Slide 9: Technology Partner
Technology Partner bp O-BASF 1" Ll! We create chemistry 1 [| ) Ip, hl = aN PZ Cl BASF Germany B P Chemicals UK Chematur A B Sweden GE Energy USA Haldor Topsoe Denmark Ammonium Nitro phosphate Acetic Acid TDI, Aniline CPSU Ammonia i = ------.8(2) ~~ SAIPEM S 4 Kemira OY Finland Linde AG Germany Plink
Slide 10: Synergistic Business Model
Synergistic Business Model Rock Phosphate Ethanol — Benzene L I] — Acetic Acid > v 1 EY >& GNFC | Investor Presentation | Q4 FY 22-23 A A A mmm mm mm mm oe ee ee ee meme 9 of 37
Slide 11: Applications of Major Chemical Products
Applications of Major Chemical Products Toluene Di — Isocyanate Flexible PU, Mattresses, Car Seating, Adhesives, Elastomers, Coatings AN Melt Explosives, Insecticides, Pyrotechniques Acetic Acid Ethyl Acetate, Acetic Anhydride, PTA, Agrochemicals, VAM Ethyl Acetate Paints, Inks, Pharma, Packaging, A
Slide 12: Financial Performance
Financial Performance
Slide 13: From The Desk of Managing Director
From The Desk of Managing Director | am happy to inform that FY 22-23 is a landmark year where revenue from operations has crossed 10,000 crores mark. With this, the company reported highest ever revenue of X10,227 Crores; 18% more than previous highest reported revenue in last financial year which
Slide 14: Financial results summary
(X Crores) Quarter FY a NN March-23 | Dec-22 | March-22| 22-23 21-22 Commentary: 1. 1 f Total Income 2,394 | 2,750 | 2,833 | 10,588 | 8,852 ons io segments i.e. chemicals and Total Expenses 1,077 | 2,312 | 1,962 | 8656 | 6,554 poi 2. Revenue is driven by price PBT a17 438 871 1,932 2,298 realisation
Slide 15: Segment Performance
Segment Performance Segment Revenue Segment Result 88 6,102 FY 21-22 FY 21-22 2,263 2,452 (02) 88 a 28 6,484 FY 22-23 1,849 FY 22-23 3,655 (161) - 2,000 4,000 6,000 8,000 (500) - 500 1,000 1,500 2,000 2,500 Hm Others mw Chemicals H Fertilizers ll Others © Chemicals M Fertilizers Fertilizer segment r
Slide 16: Resilient performance in a volatile global macro backdrop
Resilient performance in a volatile global macro backdrop 0) Production 4 Capacity Revenue QO Profit 100% + Capacity utilization in most plants Balancing “ Strategy ” and Continuing Profit Journey “Execution” Stable Indian macros despite global headwinds — Return (3) Liquidity Ratios Robust operatio
Slide 17: Five-year revenue, PBT, PAT and EPS
RFO PBT 948 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 PAT EPS dm FY 18-19 FY 19-20 E FY 20-21 FY 21-22 FY 22-23 FY 18-19 - FY 19-20 FY 20-21 FY 21-22 FY 22-23 GNFC | Investor Presentation | Q4 FY 22-23 AY SEY EY - moonmmm mmm 16 of 36
Slide 18: Key financial ratios
. . FY FY . . Particulars Units 22.93 21.22 Jo Variance Reason for Variance Current Ratio Times 3.77 3.58 5.31% Return On Equity % 17.32% 24.55% (29.45%) Due to lower net profit and higher net worth Inventory Turnover Ratio Times 9.74 9.65 0.93% IESE Receivables turnover Times 50.61 15.93 35.33% Bue
Slide 19: Balance sheet summary
Net Fixed Assets 3,578 (197) (6%) CWIP 138 49 36% Investments 1,222 1,884 154% Cash & Bank 1,104 927 84% Deposit with GSFS 2,400 (1,600) (67%) Net Working Capital 584 (96) (16%) Total Assets 9,026 967 Borrowings Deferred tax liability (net) 422 (78) (18%) Government grants (deferred income) 705 (62)
Slide 20: Cash Flow Summary
Cash Flow Summary % Particulars FY 22-23 FY 21-22 Change Change a NN A Operating Profit before Working Capital changes 2,486 (511) (21%) Movement in Working Capital 109 (126) (116%) Profitable operations Taxes Paid (628) 43 7% supported ~~ by subsidy release support from Gol B Net cash flow generate
Slide 21: Feedstock Spread
03 Feedstock Spread sad? - Cg na a 2 a AIA lll PSY . w ~~ . 2 - 7, Seer crs TA ol 4 a —_ oof a ~ a _—e ve 5 - SEL . Fe 35 a a pS rl L -__FNLR? r= -« 5 oe «OS oo - 2 i CRIS, s.=pi 5 "ob b 5 wd e 1 FE aie ox iyATE a 4 Po Tr Ee Raab pv 3 BY 2d a Ee ay Td oo : : Se
Slide 22: Feedstock Spread: Toluene and TDI
Feedstock Spread ~ Toluene = TDI Price (Z ‘000/MT) Highest 56 FY 19-20 Source: Company | Investor Presentation | Q4 FY 22-23 21 of 36
Slide 23: Feedstock Spread: Methanol and Acetic Acid
Feedstock Spread — Methanol ~— Acetic Acid Price (Z ‘000/MT) Highest FY 21-22 Source: Company | Investor Presentation | Q4 FY 22-23 22 of 36
Slide 24: Trends In Key Inputs
Trends In Key Inputs —o—Benzene ( /MT) Toluene ( /MT) —4—Rock Phosphate ( /MT) -=SDS (F/KL) ( ‘000) 100 89 34%9 90 80 8% 70 60 59 — 18% 50 57 40 [= 30 33 20 60% 18 10 ye Le ) 10 10 11 0 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Source: Company % Represent Y-0-Y Changes Ah) EGY >& GNFC | Investor
Slide 25: Trends In Key Energy Inputs
Trends In Key Energy Inputs ——Oil (Rs./MT) —m-N (Gas) Rs./'000 SM3 / MT) —a—Imported Coal (Rs. (% "000) 90 80 112% 70 28% ” 50 40 31 29 30 > —- wT 20 21 112% 10 7 6 rr = 0 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Source: Company % Represent Y-0-Y Changes N (Gas) : Considered Non Urea Ah) EGY >&
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Slide 27: Expansion Plan
Expansion Plan Ongoing Projects FY22-23 FY24-25 FY25-26 FY26-27 Concentrated Nitric Acid (CNA)-IV 50 KTPA 4 MW Solar Power Project 04 MV (AC) 10 MW Electrolyser based Green Hydrogen Project Phase - I: 5 MW Coal Based Steam & Power Plant, TDI-Il Capacity [CCPP] 150 Mt/Hr. Steam & 18 MW Power Ammonia
Slide 28: Supplementary
Supplementary
Slide 29: Shareholding Pattern
Shareholding Pattern Mar,-2023 | Mar,-2022 Promotors 41% 41% FlI/FPI (Institutions Foreign) 20% 23% Dll (Institutions Domestic) 5% 5% Indian Public & Non Institutional nian Public & Non Institutional 34% 31% Investors Promotors 34% 41% v'" Share value of 15.54 Crores Shares @ ¥ 10 per share equals t
Slide 30: Share Price Movement
Share Price Movement 300 —0—GNFC —m—Sensex 275 250 200 150 100 50 MAR-19 MAR-20 MAR-21 MAR-22 MAR-23 # Source: BSE # Rebased to 100 # S&P BSE SENSEX >& GNFC | Investor Presentation | Q4 FY 22-23 A A A mmm mm mm mm oe ee ee ee meme 29 of 36
Slide 31: Annual Gas Pool Price
Annual Gas Pool Price RS./MMBTU 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 (Approximate) GNFC | Investor Presentation | Q4 FY 22-23 30 of 36
Slide 32: Trends in International Prices
Trends in International Prices AMMONIA (CFR) USD/MT TTM Decreased by 65% 1000 ~————— gg0 = | T—— 929 T1790 | TT Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 UREA (FOB) USD/MT TTM Decreased by 43% Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Fe
Slide 33: CSR: Public health centers and classrooms
«+ Construction of Public Health Centers (PHC) banks and Construction of Additional classrooms + Established Mini science lab and Robotics in Govt. schools GNFC | Investor Presentation | Q4 FY 22-23 AEE SE
Slide 34: CSR: Hospital support and community programs
+ Supported Civil Hospital, Bharuch by Medical Equipments and Provided Nutritious food to the patients. «+ Supported needy patients through Mobile Medical Van + Provided Learning kiosk -Fun Bus in 08 Anganwadi’'s of Bharuch and Vagra Taluka. + Rejuvenated 02 SHG Groups for small Start-up. > GNFC | I
Slide 35: Conference Call Details
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Slide 36: About Us
About Us GNFC is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers & Chemicals Ltd.(GSFC). It was set up in Bharuch, Gujarat in 1976. GNFC started its manufacturing and marketing operations by setting up in 1982, one of the world's largest single-strea
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