Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Q4 FY2023 Earnings Presentation
44 slides from Balaji Amines's earnings presentation, May 22, 2023
Slide 1: Exchange filing cover letter for investor presentation
22nd May, 2023 To, The General Manager-Department of The Manager-Listing Department, Corporate Services, National Stock Exchange of India Limited, BSE Limited, "Exchange Plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No.C/1, G Block, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001. Bandra (
Slide 2: Investor Presentation May 2023
Investor Presentation May 2023
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balaji Amines Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 4: FY23: Financial Highlights
FY23 : Financial Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) EBITDA & PAT Margin Consolidated 2,337.60 2,370.64 417.90 405.68 27.3% 26.3% 637.39 624.36 17.9% 17.1% FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) EBITDA & PAT Margin
Slide 5: Q4FY23: Financial Highlights
Q4FY23 : Financial Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) EBITDA & PAT Margin Consolidated 785.41 201.16 130.85 25.6% 20.7% 16.7% 476.90 98.63 11.6% 55.21 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) EBITDA
Slide 6: Q4FY23 Performance Highlights
Q4FY23 Performance Highlights Revenue from Operations for Q4FY23 stood at ₹ 476.90 crore, as compared to ₹ 785.41 crore in Q4FY22. Total volumes stood at 26,505 MT for Q4FY23 as against 33,780 MT in Q4FY22. For Q4FY23 : • Amines volumes stood at 6,659 MT • Amines Derivatives volumes stood at 8,607 M
Slide 7: Q4FY23 Performance Highlights
Q4FY23 Performance Highlights Strengthening of Board We acknowledge the importance of Corporate Governance and best practices in this age of corporate transformation, to uphold this principle we have inducted new board members to maintain independent representation on the board. With this view in mi
Slide 8: Phase-2 Expansion Plans at our 90-acre Greenfield Project (Unit IV)
Phase-2 Expansion Plans at our 90-acre Greenfield Project (Unit IV) • We plan to undertake capex for a new product, namely N-Butylamine having capacity of 15,000 TPA under Phase-2 expansion N-Butylamine • N-Butylamine is used as an ingredient in the manufacturing of, pharmaceuticals, APIs, pesticide
Slide 9: Consolidated Statement of Profit & Loss
Consolidated Statement of Profit & Loss Particulars (in Rs. Crore) Q4FY23 Q4FY22 Y-o-Y FY23 FY22 Y-o-Y Total Revenue 476.90 785.41 -39.28% 2,370.64 2,337.60 1.41% Raw Material 262.34 436.87 1,245.79 1,222.52 Employee expense 18.06 34.47 85.13 96.64 Other expenses 97.87 112.91 415.36 381.05 EBITDA 98
Slide 10: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crs.) Mar-23 Mar-22 EQUITY AND LIABILITIES (Rs. Crs.) Mar-23 Mar-22 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 775.28 676.15 (b) Other equity 1,547.75 1,243.37 (b) Capital work-in-progress 113.23 1
Slide 11: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement for twelve months ended (in Rs. Crore) Mar-23 Mar-22 Profit before Tax 566.82 578.29 Adjustment for Non-Operating Items 52.90 57.35 Operating Profit before Working Capital Changes 619.72 635.64 Changes in Working Capital -95.31 -285.43 Cash Genera
Slide 12: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q4FY23 Q4FY22 Y-o-Y FY23 FY22 Y-o-Y Total Revenue 350.94 625.59 -43.90% 1,736.04 1,939.06 -10.47% Raw Material 201.73 369.43 1,005.11 1,073.06 Employee expense 16.61 33.31 80.19 93.48 Other expenses 73.29 91.82 311.37 313.17 EBITDA 59.
Slide 13: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Mar- 23 Mar-22 EQUITY AND LIABILITIES (Rs. Crs.) Mar- 23 Mar-22 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 599.20 490.01 (a) Equity Share capital 6.48 6.48 (b) Other equity 1,393.85 1,185.91 (b) Capital work-in-progress 73.74 14
Slide 14: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow Statement for twelve months ended (in Rs. Crore) Mar-23 Mar-22 Profit before Tax 305.37 423.14 Adjustment for Non-Operating Items 29.93 29.16 Operating Profit before Working Capital Changes 335.30 452.30 Changes in Working Capital -48.30 -170.44 Cash Generate
Slide 15: About Us
About Us
Slide 16: Amines Industry – Unique but Critical Industry with growth potential
Amines Industry – Unique but Critical Industry with growth potential The size of Aliphatic Amines industry globally The consumable nature of demand and the is $4.9 billion. Globally, the Amine industry is oligopolistic nature of the industry, results in oligopolistic with two-three producers a stron
Slide 17: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India State-of-the-art Forward integrated manufacturing suite of products Largest manufacturer of Aliphatic Amines in facilities fully equipped with latest DCS 30+ Product Downstream products added based on strength of amine manufacturing w
Slide 18: Our Products are supplied to India’s fast-growing Industries
Our Products are supplied to India’s fast-growing Industries Industry Wise - Revenue Breakup 3% 4% 3% 4% 3% 2% 4% 51% 26% Pharma Agrochem Paints & Resins Animal Feeds Oil & Gas Rubber Cleaning Chemicals Water Treatment Chemicals Dye and Textiles Others 17
Slide 19: Highly Experienced Management Team
Highly Experienced Management Team Mr. A. Prathap Reddy Mr. D. Ram Reddy Mr. N. Rajeshwar Reddy Mr. A. Srinivas Reddy Executive Chairman Managing Director Whole Time Director Whole Time Director & CFO • Civil Engineer by Education. • 36 years of experience across • B. Com. Over 46 years of • Post Gr
Slide 20: Diversified Product Portfolio
Diversified Product Portfolio Particulars Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing • Amine Derivatives are used to make consumption and applications in a further salts and other complex chemical • Albeit a small and fastest growing Chemically mature Ind
Slide 21: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals 20
Slide 22: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Focus towards high-value derivatives and Develop new indigenous technology for specialty chemicals with an aim to move up manufacturing products leading to lowering in the value-chain with vertical integration manufacturing costs & improving
Slide 23: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Product Existing Installed Capacity Proposed Capacity Application Areas Methyl Amine 48,000 40,000 Pharma, Agro, Dye & Rubber Ethyl Amine 22,500 - Pharma, Agro, Dye & Rubber DMAHCL / DMAC 31,000 7,500 Pharma Choline Chloride 60% (Corn Cob) 6,000 - Anima
Slide 24: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities • UK • Japan • US • Turkey • Argentina • Finland • Canada • Indonesia • Israel • Switzerland • India • Sri Lanka • Pakistan • Russia • Bangladesh • Malaysia • Oman • Singapore • Germany • Bahrein • Italy • Jordan • Egypt • Guatem
Slide 25: Awards & Certificates – A Testimony of our capabilities
Awards & Certificates – A Testimony of our capabilities ISO Certificate Two Star Export House ISO Certificate BEST CEO (CHEMICAL INDUSTRY) AWARD TO SHRI ANDE PRATHAP REDDY BY BUSINESS TODAY GROUP 02.05.2023 ISO 9001 : 2015 Certificate Certificate of Merit - CHEMEXCIL First Award - CHEMEXCIL 24
Slide 26: Awards & Certificates – A Testimony of our capabilities
Awards & Certificates – A Testimony of our capabilities Product Innovator of the Year Distinguished Contribution in the Excellent CSR in Water Mahatma Award for Sustainable and in Chemicals – 2018 Indian Chemicals Industry Conservation Responsible Business Practice from Aditya Birla Group 1st Octobe
Slide 27: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Long-Term Issuer Rating upgraded to ‘IND AA’ from ‘IND AA-’ by India Ratings and Research (Ind-Ra) .” The ratings process highlighted the following factors:- • Largest manufacturer of aliphatic amines and their derivatives in India • Sole producer for a f
Slide 28: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth Complex manufacturing process Niche product offering with high High fixed costs, with fixed asset requiring high levels of lead time in customer approvals turns hovering in the range of 1.5- technological know-how. Efficient 2x. Optimum
Slide 29: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Value-Added Products Applicability in Solvents segment Capex towards high-value derivatives and specialty Solvents account for 80%-90% of the mass chemicals will materialize into higher revenue and enhanced margins 01 utilised in a typical p
Slide 30: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Project Accorded Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Mega Project Status Technology mover advantage for Products Environmental In Phase-1 of Project cost of Rs. Di Methyl Eith
Slide 31: Balaji Speciality Chemicals – Production commenced in FY20
Balaji Speciality Chemicals – Production commenced in FY20 Manufacturing products such as Ethylene Diamine (EDA), Piperazine Anhydrous (PIP) , Di Ethylene Tri 01 Amine (DETA), Amino Ethyl Ethanol Amines (AEEA) 04 BAL owns 55% in subsidiary Balaji Speciality and Amino Ethyl Piperazine (AEP) which are
Slide 32: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage New Products Optimization Integration Continuous efforts to optimize Identification of new utilization of energy, utilities & Backward and forward products and development of raw materials consumption and integration of products to lat
Slide 33: Hotel Division
Hotel Division
Slide 34: Balaji Sarovar Premiere – Best in class Business Hotel in Solapur
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur • Commenced Operations in October 2013 Hotel Balaji Sarovar Premier is the only 5 star hotel in Solapur • Invested Rs. 110 crore in the Hotel Project via mix of Debt and Equity • Tied up with Sarovar Group for the Management of the Ho
Slide 35: Balaji Sarovar Premiere – Operating Matrix
Balaji Sarovar Premiere – Operating Matrix Constitutes 129 Rooms 1.52% of Negligible Routine Capex incurred Rs. 3,925 ARR Total Revenue 69% Occupancy RS. 2,713 Rate RevPAR Renowned Five Star Hotel In the City of Solapur For FY23 ARR : Average Room Revenue RevPAR: Revenue per Available Room 34
Slide 36: Financial Performance
Financial Performance
Slide 37: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs) PAT (Rs. Crs.) +26% 2,338 2,371 +34% 637 624 +36% 418 406 1,318 379 244 943 941 193 186 117 97 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 EBITDA Margin (%) PAT Margin (%) RoE (%) 28.8% 27.3% 18.5%
Slide 38: Strong Core ROCE Profile
Strong Core ROCE Profile Particulars (Rs. Crs.) FY20 FY22 FY23 Consolidated Debt 259.57 100.64 57.57 ▪ For FY20, investments made to the tune of Rs. 112.35 crore in Consolidated Networth 668.37 1,314.86 1,698.16 subsidiary company of Balaji Amines not considered, as the volume Total Capital Employed
Slide 39: Consistent Dividend Payout
Consistent Dividend Payout 500 300% 200% 140% 160% FY19 FY20 FY21 FY22 FY23 Particulars (Rs. per share) FY19 FY20 FY21 FY22 FY23 Consolidated Book Value 182.71 206.28 280.83 405.81 524.11 Consolidated EPS 36.27 32.34 73.52 113.71 110.47 Dividend 2.80 3.20 4.00 6.00 10.00 38
Slide 40: Moving towards Growth Prospects
Moving towards Growth Prospects
Slide 41: Balaji Amines Ltd - Progressing steadily
Balaji Amines Ltd - Progressing steadily Increased capacity Ramp up in production Greenfield Capex Phase - 2 utilization & capacity at Subsidiary Plant additions of Phase – 1 capex Expansion and commercialization of Ramp up in manufacturing of 90-acre project in MIDC Chincholi to Higher capacity uti
Slide 42: ESG & CSR Initiatives
ESG & CSR Initiatives Donation Of Rs Construction 1.25 Crores For of Class Rooms Renovation Of at Nagar Punyashlok Parishad Ahilyadevi Primary School Holkar Prasuti Tuljapur Dt. Gruh Solapur 26.11.2022 (Maternity Hospital) Jan 2023 Distribution Of Constructed Computer - 2 Ladies And Nos To Gents Toi
Slide 43: ESG & CSR Initiatives
ESG & CSR Initiatives Distribution Distribution Of Of Oxygen Flour Mill (Atta Concentrator Chakki) To 12 Nos To Women’s Dt. Taluka 12.08.2022 Arogya Adhikari Tuljapur Dt 22.06.2022 Distribution Of Distribution School Benches Of Ro Plant To Zilla To Ganesh Parishad Naik Primary Aadarsh School, Primar
Slide 44: Thank You
Thank You For further information, please contact: Company : Investor Relations Advisors : Orient Capital (a division of Link Group) Ms. Payal Dave Balaji Amines Ltd. +91 9594457518 CIN - L24132MH1988PLC049387 Payal.dave@linkintime.co.in Email - cs@balajiamines.com Ms. Rajesh Agrawal +91 99674 91495