AARTI Industries Ltd · NSE:AARTIIND
AARTI Industries — H1 FY2018 Earnings Presentation
24 slides from AARTI Industries's earnings presentation, November 2017
Slide 1: Q2 & H1 FY18 Results Presentation
Q2 & H1 FY18 Results Presentation
Slide 2: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with Bombay Stock Exchange and National Stock Exchange, and our reports to shareholders. The company does not undertake to
Slide 3: Content
Content At a glance Quarterly performance 5 year financial performance 3
Slide 4: At a glance
AARTI INDUSTRIES LIMITED Ata glance
Slide 5: Profile
Profile Globally ranks at Promoters are First Generation Technocrats Aarti is one of the 1st – 4th position for • 5 of 6 Promoter Directors are engineers. 3 of 4 Present in niche most 75% of its portfolio. Founder Promoters are chemical engineers from chemistry spaces. competitive “Partner of Choice
Slide 6: Transformation Journey
Transformation Journey Hitting right milestones at right time • Merged Salvigor Labs, producers of DMS and Sulphuric Acid and their Set up additional downstream products unit at Vapi to Set up Alchemie Merged into Aarti. Aarti manufacture (Europe) Ltd. a Alchemie Organics Pvt NCB with • Change of na
Slide 7: Transformation Journey
Transformation Journey • Scaled NCB capacity from 57,000 • Custom Synthesis • Merged TPA to 75,000 TPA division (Vapi) received manufacturing USFDA approval. division of Anushakti • Expanded caffeine capacity Chemicals and Drugs • Merged promoter‟s investment • Upgraded hydrogenation Ltd. into Aarti
Slide 8: What differentiates us
What differentiates us Our product mix comprises more Most chemical companies focus than 125 research-led products on a handful of products We have focused on the manufacture Most chemical companies focus on a of integrated derivatives fragmented standalone product mix We have global capacities & ar
Slide 9: Global Partner of Choice
Global Partner of Choice Aarti Industries is a rare instance of a global speciality chemicals company that combines process chemistry competence with scale-up engineering competence Vendor servicing to Make-to-stock to robust Partner of Choice Transform Make-to-order from Multiproduct, Committed to
Slide 10: Key Investment Theme
Key Investment Theme Clear Path to Value Creation Economies of Scale and Operational Efficiency: • Highly Backward Integrated Global Partner of and gainful usage of by- Choice Leadership Increasing focus De-risked portfolio – products, ensuring steady engagements with excellence – on high margin mul
Slide 11: Quarterly Performance
AARTI INDUSTRIES LIMITED Quarterly Performance
Slide 12: Chairman's Message
Chairman’s Message Commenting on the performance for Q2 & H1 FY18, Mr. Rajendra Gogri – Chairman & M.D. at Aarti Industries Ltd. said, “Our performance in Q2 captures resumption of normalized operations in the Speciality Chemicals business following the acid facility shutdown during the Q1 FY18. Rev
Slide 13: H1 FY18 Highlights
H1 FY18 Highlights Financial • Strong EBIT performance normalizing from the Q1 shutdown impact • Rupee appreciation impact of approx. 4-5 crs on account of the appreciation witnessed from Q4 FY17 onwards. Overall impact estimated to be approx. Rs 16 - 20 crs for FY18 Capex • Commissioned greenfield
Slide 14: Q2 & H1 FY18 P&L (Standalone)
Q2 & H1 FY18 P&L (Standalone) Y-o-Y Y-o-Y Particulars Q2 Q2 H1 FY18 H1 FY17 Growth Growth (Rs. Crore) FY18 FY17 (%) (%) Gross Income from 1,679.70 1,445.65 16.2 887.89 710.25 25.0 Operations Exports 774.0 653.04 18.5 412.63 312.36 32.1 • Rupee appreciation % of Total Income 46.1 48.4 46.5 47.3 impac
Slide 15: Q2 & H1 FY18 – Speciality Chemicals (Standalone)
Q2 & H1 FY18 – Speciality Chemicals (Standalone) Revenue 1,317 1,163 691 573 • Revenues are linked to pass through of key raw-material prices • Speciality Chemicals volume growth increased by 4% YoY in Q2 Q2 H1 H1 Q2 , whereas value growth of 13% YoY FY17 FY18 FY17 FY18 – Operations back to steady s
Slide 16: Q2 & H1 FY18 – Other Businesses (Standalone)
Q2 & H1 FY18 – Other Businesses (Standalone) • Best ever EBIT performance enabled by improved business across markets and operating leverage - committed to sustain momentum Pharmaceuticals Pharmaceuticals EBIT • Since major fixed costs already built-in, incremental volumes Revenue 33 will result in
Slide 17: 5 year financial performance
5 year financial performance
Slide 18: Revenue Performance (Consolidated)
Revenue Performance (Consolidated) Operating revenues have Revenue Export Deep engagement with grown on the back of global customers in CAGR: 8.7% strong volume growth in 1,449 1,523 Speciality chemicals and key business segments 1,281 1,352 pharma. In addition, part of and better product mix. 1,060
Slide 19: EBIT Performance (Consolidated)
EBIT Performance (Consolidated) EBIT Higher growth relative to revenue highlights value addition delivered CAGR: 16.6 % 615 by AIL 542 447 333 366 FY13 FY14 FY15 FY16 FY17 Speciality Chemicals Pharmacuticals Home & Personal Care CAGR: 15.4% 566 CAGR: 52.0% 48 5 504 408 39 4 36 319 333 30 3 9 1 (0) F
Slide 20: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) Gross Profit (Rs. Cr.) & Gross margin EBITDA & Net Profit (Rs. Cr.) 44.9% 316 38.8% 41.3% 36.0% 37.0% 257 206 134 162 1076 1244 1422 361 401 466 572 656 813 947 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Gross Profit Gross Margin EBITDA Net Profit Earning
Slide 21: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) 21.1% 20.0% 21.2% 23.8% 23.4% 25.9% 24.1% 21.8% 20.0% 20.0% 1,710 2,006 2,193 2,400 2,862 1,016 1,114 1,362 756 871 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Capital Employed (Rs. Cr) Avg. ROCE * Networth (Rs. Cr) Avg. ROE * Pre- IndAS to make it compara
Slide 22: About Us
About Us Aarti Industries (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale-up engineering competence (asset utilization).
Slide 23: Contact Us
Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mrs. Mona Patel Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti-industries.com Vikram Rajput / Shiv Muttoo CDR India Tel: +91 22 6645 1223/1207 Email: vikramr@cdr-india.com s
Slide 24: Thank You
AARTI INDUSTRIES LIMITED Thank You