Asahi Songwon Colors Ltd. · NSE:ASAHISONG
Asahi Songwon Colors — Q4 FY2023 Earnings Presentation
35 slides from Asahi Songwon Colors's earnings presentation, Jun 2, 2023
Slide 1: SAJI VARGHESE JOSEPH
SAJI VARGHESE Digitally signed by SAJI VARGHESE JOSEPH DN: c=IN, o=Personal, 2.5.4.20=b6c7b87623de02ee8ed9f58b7d1f8db900f4e7ffdc0ee4 9cee9fd4070da40788, postalCode=382421, st=Gujarat, JOSEPH serialNumber=f662e94fe05f3094d34a3ba45cc32644eb51dd991 2af9095fc526d2d0bbca361, cn=SAJI VARGHESE JOSEPH Date:
Slide 2: Investor Presentation June 2023
Investor Presentation June 2023 ASAHI SONGWON COLORS LIMITED BSE CODE : ASAHISONG | 532853 NSE CODE : ASAHISONG
Slide 3: Contents
Contents 01 ABOUT US 04 FINANCIAL STATEMENT SUMMARY SLIDE 03-10 SLIDE 23-26 02 BUSINESS CANVAS 05 QUARTERLY HIGHLIGHTS SLIDE 11-19 SLIDE 27-32 03 STRATEGIC ADVANTAGES AND INVESTMENT MERITS SLIDE 20-22
Slide 4: About Us
About 04 – Corporate Portrait 05 – Our Journey Us 06 07 – Strengthening Business Model – Global Footprint 08 – Product Portfolio 09 – Clientele 10 – Board of Directors
Slide 5: Corporate Portrait
04 Asahi Songwon Colors Limited is one of the leading manufacturers of blue 3 Manufacturing decades of facilities manufacturing expertise (Phthalocyanine) pigments for ink, plastics, paint, textile and paper industry Exporting to Team strength of with globally benchmarked manufacturing capabilities.
Slide 6: Our Journey: Small start with aspirations to become a global leader
05 SMALL START WITH ASPIRATIONS SUBDUED FINANCIAL GROWTH | READY FOR THE NEXT LEG TO BECOME A GLOBAL LEADER IN STRENGTHENING BUSINESS OF GROWTH PIGMENT INDUSTRY MODEL 1993 2014 2016 2018 2019 Onwards • 1993 – Commenced operations of green • 2016 – Debottlenecking of CPC blue crude • Company entered
Slide 7: Strengthening Business Model
06 2005 -2015 2015 - 2023 Added 2 new Added new products products Continuous investments made and entered towards making the business of AZO pigments and APIs 2015 2023 Served 19 Serving more than customers and Ramping up operations customers currently Presence in serving customer 18 countries acros
Slide 8: Global Footprint
07 • List of countries we export to 1. USA 2. KOREA 3. JAPAN 4. GERMANY 5. SPAIN 20 6. BELGIUM 6 4 7. SOUTH AFRICA 5 12 3 8. AUSTRALIA 1 10 2 9. BRAZIL 10. CHINA 19 8 11 11. HONG KONG 15 21 18 12. ITALY 16 14 13. INDONESIA 17 13 14. MALAYSIA 9 15. MEXICO 16. PHILIPPINES 17. SINGAPORE 8 7 18. TAIWAN
Slide 9: Clientele
08 We have come a long way from our humble beginnings 20 years of collaboration • We have not lost a single customer to become a preferred and still going strong in our more than 3 decades of existence choice of supplier to the • More than 80%of business is large MNC's across the Supply agreement si
Slide 10: Board of Directors
09 Mrs. Paru M. Jaykrishna Mr. Gokul M Jaykrishna Mr. Arvind Goenka Mr. R.K. Sukhdevsinghji CHAIRPERSON & MANAGING DIRECTOR JOINT MANAGING DIRECTOR & CEO DIRECTOR DIRECTOR She holds a Bachelor’s degree in Law A major in Finance with a minor in A graduate from St. Xavier College, A graduate from St.
Slide 11: Board of Directors
10 Mr. Jayprakash M Patel Dr. Pradeep Jha Mr. Munjal M Jaykrishna Mr. Arjun G Jaykrishna Mrs. Shivani Revat Lakhia DIRECTOR DIRECTOR DIRECTOR EXECUTIVE DIRECTOR DIRECTOR He holds a B. E. degree in Chemical He is a renowned mathematician A Major in Finance and Marketing A Bachelor of Science in She i
Slide 12: Business Canvas
Business 12 – Phthalocyanine Pigments – Our Mainstay 13 – Infrastructure Facility – Padra Unit Canvas 14 – Azo Pigments – Growth Driver 15 – Azo Pigments – Capex 16 – Infrastructure Facility – Dahej Unit 17 – Acquisition of Atlas Life Sciences 18 – Key Highlights of the Transaction 19 – Pregabalin –
Slide 13: Phthalocyanine Pigments – Our Mainstay
12 At Asahi, we use our PRODUCT CATEGORY CHARACTERISTICS • One of largest experience and expertise manufacturer of CPC to manufacture Blue crude globally Phthalocyanine pigments Backward integrated for Long lead time creates Beta and Alpha Blue entry barriers for the printing ink, Manufacturing 1 to
Slide 14: Infrastructure Facility – Padra Unit
13 Setup in 2004 Products manufactured: Waste and effluent Phthalocyanine Pigments treatment facilities available • CPC Blue crude • Beta Blue Situated on 98,000 sq. mt. • Alpha Blue plot No forced pollution shutdown in the last decade Available area for further Available capacities expansion - 25,0
Slide 15: Azo Pigments – Growth Driver
14 At Asahi Songwon has WHY AZO PIGMENTS CHINA +1 A STRONG TAILWIND entered into a joint venture The global organic and specialty pigment market is estimated with UK’s leading colour at $5 billion and Azo is the largest in volume. manufacture Tennants High demand that is largely met through imports
Slide 16: A JV well positioned to capture huge market opportunity
15 A JV WELL POSITIONED TO CAPTURE HUGE MARKET OPPORTUNITY. • Company has entered into JV Agreement with Tennants Textile Colors Limited ( TTC ) of UK for putting up a state of the art Red & Yellow Azo pigment Plant with Capacity of 2400 TPA • Cost of project ~₹82 crores • Have required approvals to
Slide 17: Infrastructure Facility – Dahej Unit
16 Setup in 2020 Products manufactured: Waste and effluent Azo Pigments treatment facilities available Situated on 60,000 sq. mt. plot Phase 2 brownfield capex to begin after reaching 50% capacity utilization levels Capacities expandable Available capacities upto - 10,000 TPA • 1,200 TPA Red Pigment
Slide 18: About Atlas Life Sciences
17 SALIENT FEATURES FINANCIAL HIGHLIGHTS FY23 (₹ IN CRORE) Audited Figures Incorporated in member team strength REVENUE ABOUT ATL AS LIFE SCIENCES Key Products include under research PRIVATE LIMITED • Pergabalin and development, including 6 • R-Compound new molecules and intermediates • Levosulpirid
Slide 19: Acquisition of Atlas Life Sciences
18 The acquisition of Atlas Asahi Songwon Colors will Asahi Songwon Colors will Life Sciences Private Limited acquire an additional stake establish a new plant on the financed through a mix of in Atlas Life Sciences Private vacant land parcel in Chattral in ₹ 28 crores of internal accruals Limited e
Slide 20: Pregabalin – Industry Landscape
19 The global consumption of PG is 1,430 T growing India is the biggest supplier of PG Indian manufacturing base for PG is matured at 10% CAGR. The formulators in India account for globally and is rapidly increasing its with Indian producers driving process efficiency a 28% share of consumption (395
Slide 21: Strategic Advantages and Investment Merits
Strategic 21 – Strategic Advantage 22 – Investment Merits Advantages and Investment Merits
Slide 22: Strategic Advantages
21 HIGH LE AD TIME REALIGNMENT OF GLOBAL STRATEGIC LOCATION LONG TERM SALES SUPPLY CHAIN CONTRACT • Customer approvals take long • The Chinese government's The new plant at Dahej brings • Majority pigments under long time. However, once the crackdown a few years ago Asahi in the cluster of chemical
Slide 23: Investment Merits
22 to put the company back Balance Sheet backed on growth path by technological tie up with industry leaders Consolidation the to further to put the enhance operation company in a sweet efficiencies and increase spot profitability Asahi Songwon Colors Limited
Slide 24: Financial Statement Summary
Financial 24 – Summary of P&L 25 – Summary of B/S Statement 26 – Summary of Cash Flow Statement Summary
Slide 25: Summary of P&L
24 (₹ IN CRORE) except EPS PARTICUL ARS FY19 FY20 # FY21 # FY22 # FY23# Revenue from Operations 293.62 283.64 283.08 410.82 504.55 Other Income 0.04 0.78 0.31 5.61 5.86 Total Income 293.66 284.42 283.39 416.43 510.41 Total Operating Expenses 254.09 249.24 233.57 378.87 499.27 EBITDA 39.53 34.40 49.5
Slide 26: Summary of B/S
25 (₹ IN CRORE) PARTICUL ARS FY19 FY20 # FY21 # FY22 # FY23# Total Equity (Networth) 193.59 215.66 274.31 284.43 260.05 Non Current Liabilities 38.49 25.59 24.32 44.68 75.77 Current Liabilities 76.98 36.56 90.84 140.56 210.88 Total Equity and Liability 309.06 277.81 389.47 469.67 546.70 Non Current
Slide 27: Summary of Cash Flow Statement
26 (₹ IN CRORE) PARTICUL ARS FY19 FY20 # FY21 # FY22 # FY23# Cash Flow from Operating Activities 27.06 56.97 8.05 (0.38) 29.97 Cash Flow from Investing Activities (2.87) (15.76) (60.07) (28.16) (77.21) Cash Flow from Financing Activities (24.20) (38.90) 49.98 28.38 47.49 Net increase/ (decrease) in
Slide 28: Quarterly Highlights
Quarterly 28 – Key Highlights 29 – Management Commentary Highlights 31 – Financial Statement Summary
Slide 29: Key Highlights
28 EXPORTS VS DOMESTIC REVENUE CONSOLIDATED STANDALONE BREAK-UP# (IN %) Revenues Revenues 60 31.87% 1.40% 44.49% (29.43%) 40 EBITDA EBITDA Exports Domestic (268.24)% (227.00)% (328.06)% (195.51)% SEGMENT WISE REVENUE BREAK UP (IN %) PAT PAT 11 (30.00)% (455.66%) (48.89)% (238.91)% 23 Phthalocyanine
Slide 30: Management Commentary – Gokul M Jaykrishna
29 “We are pleased to report on our performance Similar to the blue business, the operating for the fourth quarter of FY23, although it environment for our API segment was equally was one of the most challenging quarters in challenging. We experienced a drop in the history of our company. As we ment
Slide 31: Management Commentary – Arjun G Jaykrishna
30 Despite a challenging downturn that affected On a consolidated basis, all three of our much of the pigment industry throughout businesses have weathered a challenging majority of the last financial year, I am period over the last year. Nevertheless, our pleased to report that the operating climat
Slide 32: Q4FY23 Consolidated Financial Summary
31 (₹ IN CRORE) except EPS Q-o-Q Y-o-Y PARTICUL ARS Q4FY22 Q3FY23 Q4FY23 Change Change Revenue from Operations 117.35 57.31 82.81 44.49% (29.43)% Other Income 2.21 0.37 1.83 391.44% (17.05)% Total Income 119.56 57.68 84.64 46.73% (29.20)% Total Operating Expenses 108.94 59.19 90.84 53.48% (16.61)% E
Slide 33: Q4FY23 Standalone Financial Summary
32 (₹ IN CRORE) except EPS Q-o-Q Y-o-Y PARTICUL ARS Q4FY22 Q3FY23 Q4FY23 Change Change Revenue from Operations 122.07 93.87 123.78 31.87% 1.40% Other Income 1.93 0.36 2.14 494.84% 11.05% Total Income 124.00 94.23 125.92 33.64% 1.55% Total Operating Expenses 115.38 96.17 132.27 37.53% 14.64% EBITDA 6
Slide 34: Disclaimer
33 This investor presentation has been prepared by Asahi Songwon Colors Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be de
Slide 35: Thank You
Thank You Contact Us “Asahi House” Mr. Saji Joseph 20, Times Corporate Park , cs@asahisongwon.com Thaltej - Shilaj Road, Thaltej, Ahmedabad - 380059. Tel : 079 6832 5000 Mr. Diwakar Pingle Diwakar.pingle@in.ey.com Mr. Abhishek Mehra abhishek@theinvestmentlab.in 9558814500
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