National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q3 FY2017 Earnings Presentation
39 slides from National Fertilizers's earnings presentation, Feb 28, 2017
Slide 1: Financial Performance for the Quarter / Nine Months Ended December 2016
FINANCIAL PERFORMANCE FOR THE QUARTER / NINE MONTHS ENDED DECEMBER 2016 1
Slide 2: Highlights (Quarter Dec-16)
HIGHLIGHTS (QUARTER DEC-16) The production of urea was 10.18 LMT whereas sale was 11.60 LMT resulting in depletion of inventory by 1.42 LMT. Increase of 21.47% in quantitative terms in sale of urea, DAP and Industrial Products to 13.39 LMT as compared to 11.03 LMT in CPLY. Increase in sale of
Slide 3: Highlights (Quarter Dec-16)
HIGHLIGHTS (QUARTER DEC-16) As a result of higher sale during the quarter, the inventory of urea fell by 1.42 LMT (i.e. 3.30 LMT as on 30th September 2016 to 1.88 LMT as on 31st December 2016). Sale composition of ‘urea’ and ‘other products’ has changed to 79% (urea) and 21% (other products) as
Slide 4: Performance (Quarter Dec-16)
PERFORMANCE (QUARTER DEC-16) `crore Particulars For the quarter CPLY INCREASE / % INCREASE/ 31.12.2016 (DECREASE)* (DECREASE) Production of Urea (LMT) 10.18 10.23 (0.05) (0.49) Sale quantity of urea (LMT) 11.60 10.57 1.03 9.70 Sales of urea (including subsidy) 1991.71 2135.47 (143.76) (6.70) Sale of
Slide 5: Increase / Decrease in Dec Quarter Performance vis-a-vis Dec 15
INCREASE / DECREASE IN DEC 16 QUARTER PERFORMANCE VIZ-A-VIZ DEC 15 `crore Particulars INCREASE/ Reasons (DECREASE) Sales of urea (including subsidy)* (143.76) Total sale value has increased by ` 360.90 crore Sale of other manufactured products 328.16 (excluding gas swapping) due to higher sale of an
Slide 6: Sales Breakup (Quantity and Value) (Quarter Dec-16)
SALES BREAKUP (QUANTITY AND VALUE) (QUARTER DEC-16) ` crore Particulars Quarter Dec 16 CPLY Inc/(Dec) LMT Value LMT Value Value A. Urea 11.60 1991.71 10.57 2135.47 (143.76) B. Traded Goods MT MT 1. DAP 1,59,768 479.30 31,324 120.43* 358.87 2. Bentonite Sulphur (BS) 1,006 2.42 447 1.48 0.94 3. Seeds
Slide 7: Total Expenses (Quarter Dec-16)
Total expenses (other than Finance cost and Depreciation) (QUARTER DEC-16) ` crore Particulars Quarter CPLY Increase/ Dec 16 (Decrease) * Production of urea (Qty. in LMT) 10.18 10.23 (0.05) Dispatches of urea (Qty. in lakh MT) 11.17 10.66 0.51 Cost of Materials consumed 774.96 965.77 (190.81) Purcha
Slide 8: Increase / Decrease in Expenses in Dec-16 Quarter vis-a-vis Dec-15
INCREASE / DECREASE IN EXPENSES IN DEC-16 QUARTER VIZ-A-VIZ DEC-15 ` crore Particulars Increase/ Reasons (Decrease) Cost of Materials consumed (190.81) Decreased mainly due to fall in Gas Prices (21%). Power and Fuel (73.64) Purchase of stock in trade (i.e. (58.05) Decreased mainly due to discontinu
Slide 9: Detail of Purchase of DAP, BS etc. for Trading (Quarter Dec-16)
DETAIL OF PURCHASE OF DAP, BS etc. FOR TRADING EXCLUDING GAS SWAP (QUARTER DEC-16) ` crore Particulars Quarter Dec 16 CPLY Increase/(Decre ase) Quantity (MT) Quantity (MT) Quantity (MT) Traded Goods DAP @ - - - BS # 900 553 347 Seeds 1933 5801 -3868 Compost 2222 - 2222 TRADED GOODS 1. Higher quantit
Slide 10: Finance Cost (Quarter Dec-16)
FINANCE COST (QUARTER DEC-16) ` Crore Particulars Qtr CPLY Increase/ Dec 2016 (Decrease) Interest on Long Term Loans 2.32 5.02 (2.70) Interest on Working Capital Loans 31.44 40.74 (9.30) Other Borrowing Costs 3.07 2.57 0.50 Total finance cost 36.83 48.33 (11.50) Less: Interest Earned on Deposits 0.4
Slide 11: Urea Production (Quarter Dec-16)
UREA PRODUCTION (QUARTER DEC-16) Lakh MT Oct-Dec 2016 Increase/ Unit CPLY (Decrease) Nangal 1.45 1.47 (0.02) Panipat 1.47 1.47 - Bathinda 1.46 1.48 (0.02) Vijaipur I 2.65 2.77 (0.12) Vijaipur II 3.15 3.04 0.11 Total 10.18 10.23 (0.05) Total production of urea was lower by 0.05 Lakh MT as compared to
Slide 12: Industrial Product Production (Quarter Dec-16)
INDUSTRIAL PRODUCT PRODUCTION (QUARTER DEC-16) QTY IN MT Oct-Dec 2016 Increase/ Unit CPLY (Decrease) 19316 13084 6232 Nitric Acid 3035 0 3035 Ammonium Nitrate 854 651 203 Sodium Nitrate/ Nitrite • Increase in production of industrial products was driven by higher demand. • Against installed capacity
Slide 13: Urea Sales Breakup Zone Wise (Quarter Dec-16)
UREA SALES BREAKUP ZONE WISE (QUARTER DEC-16) LAKH MT Zonal Offices Actual Actual Oct- Dec 2016 Oct-Dec 2015 Chandigarh Zone 5.51 4.85 Bhopal Zone 3.29 2.76 Lucknow Zone 2.80 2.96 Total 11.60 10.57 Sale of urea during the quarter was higher (by 1.03 Lakh MT) as compared to CPLY due to higher sale at
Slide 14: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Actual Energy Units Norms Oct-Dec 2016 Oct-Dec 2015 Nangal 7.095 6.855 6.830 Panipat 7.614 7.007 7.180 Bathinda 7.479 6.910 6.880 Vijaipur I 5.906 5.792 5.678 Vijaipur II 5.569 5.303 5.368 All units achieved energy consumption as per energy norms. Panipat
Slide 15: Indian Accounting Standard
INDIAN ACCOUNTING STANDARD (Ind AS) implemented w.e.f.1.04.2016 The key Indian Accounting Standards (Ind AS) provisions having impact are as under: Ind AS 101: Provides an option to carry the fixed assets either at fair value or at the same costs. The Company has opted for the same costs to maintain
Slide 16: Reconciliation of Profit Under IGAAP and Ind AS
Reconciliation of Profit Under IGAAP and Ind AS ` Crore Sr. Particulars Qtr. Dec-16 CPLY 1 Net Profit/(Loss) after tax as per previous GAAP 113.44 151.11 (Indian GAAP) 2 Add/(Less) adjustments for Ind AS: 2.1 Actuarial loss on defined benefit plans recognized in 4.34 (0.55) Other Comprehensive Incom
Slide 17: Profit Variance Analysis
PROFIT VARIANCE ANALYSIS ` Crore Profit / (Loss) before tax for the Quarter ended 31st Dec 2016 114.95 Profit / (Loss) before tax for the Quarter ended 31st Dec 2015 150.00 Decrease in Profit (35.05) A: Reasons for decrease in Profit 1 Higher receipt/ accountal of past period subsidy arrears in CPLY
Slide 18: Profit Variance Analysis contd.
PROFIT VARIANCE ANALYSIS contd... ` Crore B : The above decrease in profit has been off-set by the following: 1 Increase in contribution from sale of Industrial Products 0.67 2 Increase in profit from traded goods 35.47 3 Decrease in repairs and maintenance expenses 0.51 Decrease in net finance char
Slide 19: Performance (For the Nine Months Dec-2016)
PERFORMANCE (FOR THE NINE MONTHS DEC-2016) `crore For the nine months CPLY INCREASE / % INCREASE/ Particulars ended 31.12.2016 (DECREASE)* (DECREASE) Production of Urea (LMT) 28.81 28.22 0.59 2.09 Sale quantity of urea (LMT) 28.87 27.82 1.05 3.80 Sales of urea (including subsidy) 4979.40 5810.54 (83
Slide 20: Increase / Decrease in Dec-16 Nine Months Performance vis-a-vis Dec-15
INCREASE / DECREASE IN DEC-16 NINE MONTHS PERFORMANCE VIZ-A-VIZ DEC-15 `crore Particulars INCREASE/ (DECREASE) Reasons Sales of urea (including subsidy)* (831.14) In spite of higher sale of imported DAP, Bentonite Sale of other manufactured products and 480.15 Sulphur and Industrial Products by ` 51
Slide 21: Sales Breakup (Quantity and Value) (Nine Months Dec-16)
SALES BREAKUP (QUANTITY AND VALUE) (NINE MONTHS DEC-16) ` crore Particulars Nine months Dec 16 CPLY Inc/(Dec) LMT Value LMT Value Value A. Urea 28.87 4979.40 27.82 5810.54 (831.14) B. Traded Goods MT MT 1. DAP 2,04,929 626.87 48,635 162.07 464.80 2. Bentonite Sulphur 2,243 5.60 1,225 3.64 1.96 3. Se
Slide 22: Total Expenses (Nine Months Dec-16)
Total expenses (other than Finance cost and Depreciation) (FOR THE NINE MONTHS DEC-16) ` crore Nine Months Particulars ended CPLY Increase/ Dec-16 (Decrease)* Production of urea (Qty. in LMT) 28.81 28.22 0.59 Dispatches of urea (Qty. in lakh MT) 29.00 27.93 1.07 Cost of Materials consumed 2176.08 28
Slide 23: Increase / Decrease in Expenses in Dec-16 Nine Months vis-a-vis Dec-15
INCREASE / DECREASE IN EXPENSES IN DEC-16 NINE MONTHS VIZ- A-VIZ DEC-15 ` crore Particulars Increase/ Reasons (Decrease) Cost of Materials consumed (660.96) Decreased mainly due to fall in Gas Prices (25%). Power and Fuel (256.23) Purchase of stock in trade (i.e. Increased mainly due to higher impor
Slide 24: Detail of Purchase of DAP, BS etc. for Trading (Nine Months Dec-16)
DETAIL OF PURCHASE OF DAP, BS etc. FOR TRADING EXCLUDING GAS SWAP (NINE MONTHS DEC-16) ` crore Particulars Nine months CPLY Increase/(Decrease) Dec 16 Quantity Value Quantity Value Quantity Value (MT) (MT) (MT) Traded Goods DAP@ 214203 524.82 50748 166.00 163455 358.82 BS# 4919 4.03 1331 3.64 3588 0
Slide 25: Finance Cost (Nine Months Dec-16)
FINANCE COST (NINE MONTHS DEC-16) ` crore Particulars Nine Months CPLY Increase/ Dec 2016 (Decrease) Interest on Long Term Loans 11.66 17.44 (5.78) Interest on Working Capital Loans 132.97 131.86 1.11 Other Borrowing Costs 8.71 5.53 3.18 Total finance cost 153.34 154.83 (1.49) Less: Interest Earned
Slide 26: Finance Cost (Nine Months Dec-16) contd.
FINANCE COST (NINE MONTHS DEC-16)….contd The borrowings through Short Term Loan and Cash Credit has further reduced by ` 120 crore. The ratio of Commercial paper for Short Term Borrowings have increased to 93% as compared to 84% in CPLY. The credit rating has been assessed by India Rating (sec
Slide 27: Urea Production (Nine Months Dec-16)
UREA PRODUCTION (NINE MONTHS DEC-16) LAKH MT Apr-Dec 2016 Increase/ Unit CPLY (Decrease) Nangal 3.83 4.19 (0.36) Panipat 3.99 4.24 (0.25) Bathinda 4.30 3.99 0.31 Vijaipur I 8.02 7.33 0.69 Vijaipur II 8.67 8.47 0.20 Total 28.81 28.22 0.59 Production was lower at Nangal and Panipat Units as Nangal Pla
Slide 28: Industrial Product Production (Nine Months Dec-16)
INDUSTRIAL PRODUCT PRODUCTION (NINE MONTHS DEC-16) QTY IN MT Apr-Dec 2016 Increase/ Unit CPLY (Decrease) Nitric Acid 56476 36088 20388 Ammonium Nitrate 6489 - 6489 2537 2093 444 Sodium Nitrate/ Nitrite • Increase in production of industrial products was driven by higher demand. • Against installed c
Slide 29: Urea Sales Breakup Zone Wise (Nine Months Dec-16)
UREA SALES BREAKUP ZONE WISE (NINE MONTHS DEC-16) LAKH MT Zonal Offices Actual Actual Apr-Dec 2016 Apr-Dec 2015 Chandigarh Zone 12.38 12.99 Bhopal Zone 8.42 7.35 Lucknow Zone 8.07 7.48 TOTAL 28.87 27.82 Sale of urea during the period was higher by 1.05 Lakh MT as compared to CPLY due to higher sale
Slide 30: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Revised Energy Actual Energy Units Norms (w.e.f. 1.06.2015) April-Sep 2016 April-Sep 2015 Nangal 7.095 6.922 6.980 Panipat 7.614 7.161 7.310 Bathinda 7.479 6.920 6.970 Vijaipur I 5.904 5.752 5.772 Vijaipur II 5.569 5.338 5.430 All units achieved lower energy cons
Slide 31: Reconciliation of Profit Under IGAAP and Ind AS
Reconciliation of Profit Under IGAAP and Ind AS ` Crore Sr. Particulars Nine months CPLY Dec-16 1 Net Profit/(Loss) after tax as per previous GAAP 196.50 241.28 (Indian GAAP) 2 Add/(Less) adjustments for Ind AS: 2.1 Actuarial loss on defined benefit plans recognized 9.20 1.34 in Other Comprehensive
Slide 32: Profit Variance Analysis
PROFIT VARIANCE ANALYSIS ` crore Profit / (Loss) before tax for the nine months ended 31st Dec 2016 202.82 Profit / (Loss) before tax for the nine months ended 31st Dec 2015 241.40 Decrease in Profit (38.58) A: Reasons for decrease in Profit 1 Higher receipt/ accountal of past period subsidy arrears
Slide 33: Profit Variance Analysis contd.
PROFIT VARIANCE ANALYSIS contd.. ` crore B : The above decrease in profit has been off-set by the following: 1.63 1 Increase in contribution from urea 2 Decrease in energy consumption 15.21 3 Increase in contribution from sale of Industrial Products 25.59 4 Increase in profit from traded goods 46.28
Slide 34: Analysis of Sales
ANALYSIS OF SALES April – Dec CPLY S. 2016 Particulars No. Value Value % % (` crore) (` crore) 1 Urea 4979.40 85.85 5810.54 94.46 2 Traded Products (excluding Gas swapping) 645.08 11.12 182.36 2.96 3 Gas Swapping 28.73 0.50 61.04 0.99 4 Industrial Products 146.88 2.53 97.14 1.58 5 Gross Sales 5800.0
Slide 35: Detail of Trade Receivables
DETAIL OF TRADE RECEIVABLES ` crore S. As on 31st As on 31st Particulars No. Dec 2016 Dec 2015 1 Subsidy from GOI 2892.40 3554.39 2 Debtors 305.78 100.83 3 Total Trade Receivables 3198.18 3655.22 Credit Policy for realisation:- Debtors Industrial Products – Cash & carry Traded Goods - Urea – 30 days
Slide 36: Debt to Equity Ratio
DEBT TO EQUITY RATIO ` crore S. No. Particulars As on As on 31st Dec 2016 31st Dec 2015 1 Long term Borrowings 1199.47 2017.71 2 Short term Borrowings 1635.12 2351.35 3 Total Borrowings 2834.59 4369.06 4 Borrowings pertaining to AFCP (Urea) 930.78 1674.99 excluded being reimbursed by GoI 5 Net Borro
Slide 37: Key Financial Ratios
KEY FINANCIAL RATIOS S. Particulars As on As on No. st 31 Dec 2016 31st Dec 2015 1 Earning Per Share (` 10/- each) 2.31 3.47 2 Return (Total Comprehensive Income) on Net Worth 6.48 10.02 3 EBITDA/Gross Sales 7.29 7.44 4 EBITDA/Average Capital Employed 4.84 4.91 5 Debt : Equity ratio 1.09:1 1.58:1 6
Slide 38: Notes
NOTES 1. The financial results are being prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act, 2013 read with relevant rules thereunder and in terms of regulation 33 of the SEBI Regulations and SEBI circular dated 5th July 2016. 2. The pr
Slide 39: Thank You
THANK YOU 39
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