Acutaas Chemicals Ltd · NSE:ACUTAAS
Acutaas Chemicals — Ami Organics — Q2 FY23 Earnings Presentation
46 slides from Acutaas Chemicals's earnings presentation, Nov 5, 2022
Slide 1: Exchange filing cover letter for investor presentation
Lo Ami Organics Limited Registered Office :- Plot No. 440/4, CIN No.: L24100GJ2007PLC051093 5 & 6, Road No. 82/A, G.I.D.C. Sachin, Surat - 3942 30, Dist. Surat, Gujarat, India, November 5, 2022 To, To, The Listing Department, The Listing Department BSE LIMITED, National Stock Exchange of India Phiro
Slide 2: Investor Presentation November 2022
NOVEMBER - 2022 Investor Presentation Ami Organics Limited BSE: 543349 | NSE: AMIORG | WWW.AMIORGANICS.COM 1
Slide 3: Contents
Contents 1 Q2FY23 Results 2 Company Overview 3 Advanced Pharma intermediate 4 Specialty Chemicals 5 Working towards better tomorrow 6 Shareholder Information 2
Slide 4: Contents: Q2FY23 Results
Contents 1 Q2FY23 Results ➢ Management Commentary ➢ Q2FY23 Earnings Highlights ➢ Financial performance - Q2FY23 ➢ Financial performance - H1FY23 ➢ P&L Statement for Q2 & H1FY23 3
Slide 5: Management Commentary
Management Commentary Revenue for “We continue our robust trajectory with 20% YoY growth during Q2, primarily driven by a significant increase in the Advanced Q2FY23 pharmaceutical intermediate business which grew by 25% YoY. That said, the Company witnessed a flattish growth in the specialty Rs. 1,
Slide 6: Q2FY23 Earnings Highlights
Q2FY23 Earnings Highlights Financial Highlights ✓ Revenue from operations for Q2FY23 grew by 20.2% YoY to Rs.1,470mn; Sequentially revenue grew by 12.2% ✓ The Gross margins for the quarter were at 48.0% as compared to 54.0% in Q2FY22 and 48.8% in Q1FY23. ✓ EBITDA for the quarter came at Rs. 281mn up
Slide 7: Q2FY23 Earnings Highlights (Continued)
Q2FY23 Earnings Highlights (Continued) Key Business Highlights ✓ Export at 58%; domestic business at 42% ✓ Specialty Chemicals – Methyl Salicylate: o Successfully developed Methyl salicylate using Flow Chemistry. Successfully erected Flow reactor at Jhagadia plant and expect to start production from
Slide 8: Financial performance - Q2 FY23
Financial performance - Q2 FY23 Q2FY22 Q2FY23 Revenue from Operations (Rs Mn) YoY Growth: 25% 0% 20% 1,470 1,249 1,223 1,003 220 220 Advance Intermediates Chemicals Total EBITDA & EBITDA Margin PAT EPS (Rs Mn) (Rs Mn) EBITDA EBITDA Margin PAT PAT Margin EPS 200 19.0% 300 22.4% 25.0% 280 23.0% 17.0%
Slide 9: Financial performance - H1 FY23
Financial performance - H1 FY23 H1FY22 H2FY23 Revenue from Operations (Rs Mn) YoY Growth: 19% 11% 18% 2,780 2,335 2,354 1,954 400 445 Advance Intermediates Chemicals Total EBITDA & EBITDA Margin PAT EPS (Rs Mn) (Rs Mn) EBITDA EBITDA Margin PAT PAT Margin EPS 550 21.0% 23.0% 350 13.2% 14.0% 500 21.0%
Slide 10: P&L Statement for Q2 & H1FY23
P&L Statement for Q2 & H1FY23 Particulars (Rs. Mn) Q2FY23 Q2FY22 YoY Q1FY23 QoQ H1FY23 H1FY22 YoY Revenue from Operations 1,470 1,223 20.2% 1,310 12.2% 2,780 2,354 18.1% COGS 764 562 671 1,435 1,206 Gross Profit 706 661 6.8% 639 10.4% 1,345 1,148 17.2% Gross Margin 48.0% 54.0% 48.8% 48.4% 48.8% Empl
Slide 11: Contents: Company Overview
Contents 2 Company Overview ➢ Company Overview ➢ Our Journey ➢ Our Products ➢ Strong and Long-term relations with Diversified Customers across Geographies ➢ Our Manufacturing Facilities ➢ Superior R&D Capabilities ➢ Our Founders ➢ Our Leadership ➢ What makes us different 10
Slide 12: Company Overview
Company Overview AMI Organics (AMI) is a research and development driven manufacturer of specialty chemicals with varied end usage and is focused on the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated and generic active pharmaceutical ing
Slide 13: Our Journey
Our Journey ▪ Obtained certifications for ISO 9001:2015 and ISO 14001:2015 ▪ Received second EIR from USFDA for manufacturing ▪ Established a tertiary ETP facility at Sachin to become zero liquid discharge plant ▪ Increased ▪ Commencement of a new R&D warehouse capacity, lab at Sachin equipped with
Slide 14: Our Products
Our Products Advance Intermediates for Pharmaceuticals Specialty Chemicals ▪ Advanced Intermediates: ▪ Niche KSM for Agrochem and Finechem companies ✓ 450+ Products ▪ Parabens & paraben formulations, Salicylic Acid and other specialty chemicals that find end-use in ✓ Intermediates across 17 therapeu
Slide 15: Strong and Long-term relations with Diversified Customers across Geographies
Strong and Long-term relations with Diversified Customers across Geographies Revenue from Exports Exports Revenue as % of Revenue from Operations Key Exports Destinations Europe 50% 46% 52% 58% Israel Japan North America China (Rs mn) 3,010 India Mexico Others South America 1% 12% Japan 1% Italy Ger
Slide 16: Strong and Long-term relations with Diversified Customers (cont'd)
Strong and Long-term relations with Diversified Customers across Geographies (cont’d) Clientele Advanced Pharma Intermediates (Top Clients) Specialty Chemicals (Top Clients) Generic Innovators 15
Slide 17: Our Manufacturing Facilities
Our Manufacturing Facilities Manufacturing Total Land Area Facilities Total (sq mtrs) 75,892 Installed Capacity (MTPA) 6,060 Placeholder for warehouse picture Placeholder for facility Placeholder for facility Placeholder for facility picture picture picture Sachin Unit Ankleshwar Unit Jhagadia Unit
Slide 18: Superior R&D Capabilities
Superior R&D Capabilities 01 02 03 R&D Expenditures R&D Lab Technology State-of-the-art ADL fully supported by equipment 24 86 65 70 analytical instruments Modern fume hood system, (Rs mn) 2,200 sq. mtrs. DSIR (LCMASS, GCMASS, UV approved in-house R&D autoclave, high vacuum spectrophotometer, distil
Slide 19: Superior R&D Capabilities (Cont'd)
Superior R&D Capabilities (Cont’d) Our Capabilities in Key Chemistry Etherification Amination Esterification Diazotization AMI Organics R&D Centre in Surat Nitration Chlorination & hydrolysis Acylation Alkylation Bromination Hydrogenation Fluorination 18
Slide 20: Superior R&D Capabilities: Continuous Flow Reactor
Superior R&D Capabilities (Cont’d) Continuous Flow Reactor ▪ Continuous flow reactors are more efficient, and sustainable when compared to manufacturing products using traditional reactors. ▪ AMI has successfully developed capabilities in Plug Flow, Catalytic fixed-bed flow, Tubular flow kind of rea
Slide 21: Our Founders
Our Founders Our Founders The visionaries who built this company Nareshkumar Patel Chetankumar Vaghasia Executive Chairman, MD Whole-time Director ▪ Mr. Nareshkumar Patel is founder of the Company. ▪ Mr. Chetankumar Vaghasia is one of the co-founders ▪ He has been associated with the Company since i
Slide 22: Our Leadership
Our Leadership Board of Directors Virendra Mishra Girikrishna Maniar Richa Goyal Hetal Gandhi Dr. Anita Bandyopadhyay Mr. Ram Mohan Rao Locande Whole-time Director Non-executive, Non-executive, Non-executive Independent Director Whole-time Director Independent Director Independent Director Independe
Slide 23: What makes us different
What makes us different 1 4 Niche Product Portfolio with a strong market share High entry barriers ✓ Niche products with limited competition focused on the Chronic disease ✓ A long gestation period to be enlisted as a supplier market ✓ The involvement of complex chemistries ✓ Our key products hold m
Slide 24: Contents: Advanced Pharma intermediate
Contents 3 Advanced Pharma intermediate ➢ A leading Advanced Intermediate Manufacturer from India ➢ Our Business Model ➢ Our Key Products and their Application ➢ Our Products ➢ Capex ➢ Our strategy and outlook ➢ Industry Overview 23
Slide 25: A leading Advanced Intermediate Manufacturer from India
A leading Advanced Intermediate Manufacturer from India Historical Business Performance 3,984 50-90% 3,984 Market Share in 160+ FY22 Customers 3,011 Revenue Key Molecules Added 30 new customers (INR mn) in FY22 2,179 2,034 73% 12 2 FY19 FY20 FY21 FY22 Raw Material Process Patents Manufacturing Outso
Slide 26: Our Business Model – Advanced Intermediates for Pharmaceuticals
Our Business Model – Advanced Intermediates for Pharmaceuticals Import Substitute ~1-3% ► Supplying import substitute intermediates to domestic pharma companies CDMO Contract Manufacturing for big pharma companies 5% ► ► Exclusive long term supply contracts Regulatory market business ► Supplying NCE
Slide 27: Uniqueness of our business model
Uniqueness of our business model 1 Chronic Therapy focused 91% of the products catered on fast-growing Chronic segment Wide Product Basket 2 Wider basket of products, with 450+ molecules 3 R&D leadership ✓ First to market with target products Presence across value chain 4 ✓ Products available with d
Slide 28: CAPEX – Expansion of Pharma Intermediate Business
CAPEX – Expansion of Pharma Intermediate Business CAPEX – INR 190cr CAPEX – Funding On 29th April, BOD approved the Capex plan of INR The Capex will be funded through a mix of General 190cr to build a brownfield plant in Ankleshwar, Corporate funds of IPO proceeds, internal accruals, and Gujarat, to
Slide 29: Our strategy and outlook
Our strategy and outlook Strategy Outlook 190cr Capex to expand capacities for the Advance intermediate business Growing Innovator business because of track record of innovation, timely supply, and consistent quality Expect to continue the historical growth rate in the coming years Products already
Slide 30: Industry Overview
Industry Overview Currently ~90% of our revenue come from …with Global API industry estimated to grow by …whereas Key APIs for which Intermediates are products used in Pharmaceutical industry 6%; witnessing shift in production activity from manufactured by AMI are expected to grow at specifically fo
Slide 31: Contents: Specialty Chemicals
Contents 4 Specialty Chemicals ➢ Speciality Chemicals - Overview ➢ New Product launched ➢ Acquisition of Gujarat Organics facilities ➢ Unlocking the Operational Lever ➢ Industry Overview ➢ Our strategy and outlook 30
Slide 32: Speciality Chemicals - Overview
Speciality Chemicals - Overview Historical Business Performance 931 300+ 30+ 931 FY22 Customers Countries Revenue across the globe (Customer locations (INR mn) Added 10 new customers in FY22 166 74 22 FY19 FY20 FY21 FY22 ~600bps ~50 1 EBITDA Products Manufacturing 1% 18% 5% Improvement KSM for Agro
Slide 33: New Product developed – Electrolyte for cells
New Product developed – Electrolyte for cells Electrolyte for cells Industry Analysis ▪ AMI Organics has successfully developed a core Barriers to Entry 01 03 Substitutes 02 electrolyte for cells used in energy storage devices. Complex product with a high Best performing product amongst barriers to
Slide 34: Acquisition of Gujarat Organics facilities
Acquisition of Gujarat Organics facilities Deal Rationale Deal Stats Gujarat Organics portfolio ▪ Acquisition is in line with the ▪ Slump sale transaction with two ▪ Preservatives: Parabens & Company’s inorganic growth facilities situated at Ankleshwar and paraben formulations with end strategy of f
Slide 35: Our strategy and outlook
Our strategy and outlook Strategy Outlook Business to grow at a faster rate than core pharma intermediate business due to lower base Development and entry into newer molecules to accelerate the growth Continue to work on improving operational efficiencies to deliver better margins 34
Slide 36: Industry Overview
Industry Overview Our existing Chemicals segment supplies KSMs to Agrochemicals and Fine Chemicals company … KSMs Global KSM Market – Size and Growth India KSM Market – Size and Growth (USD Bn) (USD Bn) 40 8.0 CAGR 6.1% CAGR CAGR 30 10.6% 6.1% 4.8 22 CAGR 9.8% 3.0 2015 2020 2025F 2015 2020 2025F Why
Slide 37: Industry Overview
Industry Overview …whereas our new acquired units manufactures preservatives along with some specialty chemicals such as salicylic acid Parabens Salicylic Acid Global Paraben Market – Global Paraben Market – Global Salicylic Acid Market – Global Salicylic Acid Market – Size and Growth Split by Appli
Slide 38: Working Toward Better Tomorrow
Contents 5 Working Toward Better Tomorrow 37
Slide 39: Working Towards Better Tomorrow
Working Towards Better Tomorrow Environment: Social: Governance: ➢ Zero Liquid Discharge based ➢ Company’s Sachin Facility is ✓ 50% of the board constitutes in-house effluent plant at SA 8000:2014 certified of independent directors Sachin Unit ➢ The SA8000® Standard is the ✓ Audit and NRC are headed
Slide 40: Contents: Shareholder Information
Contents 6 Shareholder Information ➢ Performance highlights over the years ➢ Financials for the last three years ➢ Shareholder Information 39
Slide 41: Performance highlights over the years
Performance highlights over the years FY19 FY20 FY21 FY22 Revenue from Operations – Growth Trends (Rs Mn) FY19-22 CAGR: 22% 249% 30% 5,201 4,270 3,240 3,406 2363 2322 2385 2396 932 22 74 166 Advance Intermediates Chemicals Total Revenue – by Business Verticals Revenue from Exports Share of Top Custo
Slide 42: Performance highlights over the years (cont'd)
Performance highlights over the years (cont’d) EBITDA and EBITDA Margins (%) PAT and PAT Margins (%) (Rs Mn) (Rs Mn) EBITDA (₹ Mn) EBITDA Margin (%) PAT (₹ Mn) PAT Margin (%) 1200 23.5% 25.0% 1,052 15.9% 1000 17.6% 17.1% 20.0% 719 800 20.2% 11.5% 802 15.0% 9.8% 540 13.8% 600 10.0% 400 421 410 275 20
Slide 43: Financials for the last three years
Financials for the last three years Restated Summary Statement of Profit and Loss Restated Summary Statement of Assets and Liabilities Particulars (Rs. Mn) FY20 FY21 FY22 Particulars (Rs. Mn) FY20 FY21 FY22 I. ASSETS NON-CURRENT ASSETS Revenue from Operations 2,396 3,406 5,201 Property, Plant and Eq
Slide 44: Shareholder Information
Shareholder Information AMI Shareholding as on 30th September 2022 Share Information (as on 30th September 2022) NSE Ticker AMIORG BSE Ticker 543349 Promoters Others 39.4% 41.8% Market Cap (Rs. Cr) 3,323 (Shares pledged – Nil) Shares Outstanding 3,64,37,062 3M ADTV (Shares)* 2,19,701 MF 3M ADTV (Rs.
Slide 45: Safe Harbor
Safe Harbor The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any
Slide 46: For more information please contact
For more information please contact: Ami Organics Limited Ernst & Young Ekta Srivastava, Company Rahul Thakur Secretary & Compliance Officer Rahul.thakur@in.ey.com cs@amiorganics.com © 2020 Ami Organics Limited, All Rights Reserved. 45