Slide 1: GHCL Limited - Investors' Presentation Intimation to Exchanges
GHCL Limited July 28, 2022 -mq'Of- f"014ti- 3t1'1i<H•4i ~ <('t1"q(1 ~ob~ National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, "Exchange Plaza" 151 Floor, New Trading Ring, Rotunda Building , Sandra - Kurla Complex, P.J. Towers, Sandra (E), Mumbai - 400 051 Dalal St
Slide 2: GHCL Limited Q1 FY23 Investor Update
GHCL LIMITED Q1 FY23 Investor Update July 2022
Slide 3: Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and sh
Slide 4: Table of Contents
Table of Contents Quarterly Update 4 Company Overview 17 Inorganic Chemicals Segment 25 Textiles Segment (Spinning) 34 3
Slide 5: Quarterly Update
Quarterly <& Update
Slide 6: Management Commentary
Management Commentary Commenting on the Q1 FY23 performance, Mr. R. S. Jalan, MD said: “We have made a healthy start to the new financial year by delivering an all-round strong financial performance. Top-line grew by 96%, while EBITDA improved by 169% and recorded 3x growth in PAT during Q1 of FY23.
Slide 7: Performance Highlights – Q1 FY23
Performance Highlights – Q1 FY23 Q1 FY23 Vs 96% 169% 300% 201% Q1 FY22 (Y-o-Y) Revenue EBITDA PAT Cash Profit Rs. 1,371 Rs. 429 crore Rs. 339 crore Rs. 407 crore crore Q1 FY23 Vs 7% 4% 30% 39% Q4 FY22 (Q-o-Q) 6 Note: The above numbers forms part of continued operations.
Slide 8: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q FY22 Revenue from continued operations 1,371 699 96% 1,279 7% 3,789 Operating Expenses of continued operations 942 540 75% 868 9% 2,797 EBITDA from continued operations 429 159 169% 411 4% 992 EBITDA Margins of co
Slide 9: Resource allocation & Key financial ratios
Resource allocation & Key financial ratios Social And Relationship Financial Efficient Capital Allocation All our stakeholders play a fundamental role in Sources include debt and equity financing and Debt Repayment Working Capital creating and sustaining an enabling external cash generated by operat
Slide 10: Q1 FY23 Segment Highlights – Inorganic Chemicals
Q1 FY23 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Performance Highlights Particulars Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q ❖ Revenue increased by 108% Y-o-Y and 10% Q-o-Q backed by volume expansion and realization gains. Revenue 1,096 527 108% 1,001 10% ❖ EBITDA improved by 226% Y-o-Y an
Slide 11: Q1 FY23 Segment Highlights – Textiles (Spinning)
Q1 FY23 Segment Highlights – Textiles (Spinning) (Rs. In Crore) Performance Highlights Particulars Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q ❖ Revenues grew by 60% Y-o-Y and stable against Q-o-Q, driven by strong contribution from value added Revenue 275 172 60% 278 (1%) products and firm yarn pricing. De
Slide 12: Demerger of the Spinning business of GHCL
Demerger of the Spinning business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Spinning business of GHCL will be demerged into a Focused GHCL Textiles Limited growth Shareholders of GHCL will be allotted shares in GHCL textiles Limited in the swap ratio of 1:1, o
Slide 13: Strong Institutional Holding
Strong Institutional Holding Non-Institutional Holding (Incl. Corporates) 40.41% Institutional & HNI Holding – ~40.55% Promoters & Promoters Group 19.03% 12 Note: Shareholding as of June 30, 2022; HNI - Individuals holding share capital in excess of Rs. 2 lakhs.
Slide 14: Focus on driving responsible future growth
Focus on driving responsible future growth – Inorganic Chemical & Textiles (Spinning) Inorganic Chemicals Textiles (Spinning) Doubling RBC Capacity from 60k to 120K MT Expansion of Spinning facility: Focus on Greenfield Soda Ash project of 5L MT o 40k spindles to be completed by Q2 FY23 Augm
Slide 15: Quality assets, high-potential runway for growth
Quality assets, high-potential runway for growth Chemicals business Spinning business ❖ 1.1 mn tons largest single location facility ❖ 200k spindles supported by ~47MW ❖ Comfort of key input material integration renewables ❖ Industry leading efficiency and productivity ❖ Differentiated capability ac
Slide 16: Our Journey since 2010..
Our Journey since 2010.. Revenue (Rs. Cr.) >3.5x increase in revenue and >7x growth in Profitability. > 3.5x 4499 3267 1222 2385 Debt reduction by Rs 1400 Cr. 2010 2015 2020 2022 Current debt-to-equity at 0.2x PBT (Rs. Cr.) > 7x 868 Rs. 500+ Cr. payout to shareholders through 2 buybacks & dividends
Slide 17: Awards & Recognitions
Awards & Recognitions 5 Notch Upgrades in last 6 years Enhanced Credit Ratings – Upgraded to AA- with Stable outlook, HR Excellence Award GHCL received 12th CII National HR Excellence Award for strong Mahatma Award for commitment 13th CEO GHCL’s Rank History CSR Excellence Conference Referred as Gre
Slide 18: Company Overview
Company Overview 17
Slide 19: GHCL – An Introduction
GHCL – An Introduction Best-in-class 1 ❖ Focused management Targeting ❖ Operations management approach ❖ To grow profits at a CAGR 15% on a long-term horizon ❖ CAPEX planning and execution ❖ Strategy led by professional ❖ To inculcate value systems that defines our culture ❖ Financial management man
Slide 20: GHCL Overview
GHCL Overview Business Focus to 42% 3 decades of Leading soda Philosophy of emerge as a Professionally Renewable Indian ash player in Inclusive sustainable managed Energy at Manufacturing India growth of all business workforce Yarn division experience stakeholders organization 19
Slide 21: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequently increased to Soda Ash production capacity 140K increased to 9.75 Lacs MTPA Commissioned Home Textile plant with 36mn meters processing Doubled Sodium bicarbonate
Slide 22: Our Objective
Our Objective Responsible Growth Organic Growth – CAPEX, Non-CAPEX led Growth, Growth – M&A/JV and Optimize Return on Capital Brand Image Corporate Governance, Customer Focus and “Achieve the CAGR Stakeholder Engagement growth of 15% in bottom-line with ESG creating value for all our 5 stakeholders”
Slide 23: Sustainability Vision 2023
Sustainability Vision 2023 Zero harm GHCL’s business goals include sustainability. To embed ❖ Zero reportable injuries Stakeholder centric sustainability in business and operations, concentrating ❖ Zero environmental ❖ 30% reduction of high- attention on material concerns like environmental incidenc
Slide 24: Core Values at forefront
Core Values at forefront MISSION VISION Responsibly maximising To grow our business responsibly, stakeholder value with governance, sustainability and core values as our foundation ❖ GHCL is a unique workplace which is dotted with its Core Values, defining its culture. ❖ Every employee in the Compan
Slide 25: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Textiles) Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain R S Jalan (Independent Director) (Ind
Slide 26: Inorganic Chemicals
Inorganic Chemicals 25
Slide 27: Margin Leadership 11 L MT
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 28: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry Soda Ash Market Outlook Globally, Soda Ash demand has been steady in line with economic GLOBAL SIZE: CAPACITY-71 MMT, PRODUCTION-64 MMT growth and is expected to get an additional boost from emerging segments such as Solar Glass and Lithium Carbonate , going f
Slide 29: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Demand Share Domestic Demand & Growth Trend (CAGR Growth of ~5% during period upto FY 22) 25% 36 40 40 40 36 41 23 25 25 26 28 28 31 31 33 34 60% 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 15% Domestic Demand (MT) Gr
Slide 30: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Historically, no mismatches in demand supply as supply Scenario always followed demand globally Sustaining high utilization rates while maintaining periodic Excellence in Execution enhancement in capacities. Achieved through
Slide 31: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries Solar Panel 30
Slide 32: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Domestic Demand Share 13% Doubled capacity 21% from 30,000 to 60,000 MT in 66% December 2017 Import GHCL Other Domestic Players Generally Domestic Demand Concentration Specialization and named as baking experience in soda, bread West 16% manufacturing of soda
Slide 33: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase; could be a game changer Animal Feed Chemicals 32
Slide 34: Marquee Clients
Marquee Clients & 8, NG BOROSIL gn, renewables = Swen : Per | SAINT-GOBAIN | @y PATANJALD, | Piramal ® Glass : HINDUSTAN ZINC
Slide 35: Textiles Segment (Spinning)
Textiles Segment (Spinning) 34
Slide 36: Spinning business: Performance synopsis
Spinning business: Performance synopsis ❖ Demonstrated sustained gains over long term; on track to deliver next leg of growth ❖ High-margin value-added yarn accounts for 80% of total revenue ❖ Elevated capacity utlilisation levels at ~99% 5 Years’ 10 Years’ Particulars Q1 FY23 FY22 FY21 Avg. Avg. Re
Slide 37: Spinning manufacturing facility at a glance
Spinning manufacturing facility at a glance ❖ Journey Started with acquisition of sick spinning unit in 2002, Turnaround to one of the most reputed mill in 1.85 Lacs southern India Spindles (another 40k Spindles under ❖ State of art manufacturing infrastructure includes machines installation by Q2 F
Slide 38: Key product offerings in Spinning
Key product offerings in Spinning Preferred supplier to premium customers both at domestic and international level with varied portfolio offerings Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn from Indian, US and Australian Mix 25s to 60s Knitting 100% cotton combed compact yarn fr
Slide 39: Marquee Clients
Marquee Clients & qp j | \ MD raymond ACVIND AAT TTT DMM BRLAANY WELSPUN INDO COUNT SEELEY Vardhman Complete Comfort MANTAFIL Bggazgutagl |\4(SCRBIFTL. & posiri... * By
Slide 40: About Us
About Us GHCL Limited was incorporated on 14th October, 1983. The Company has established itself as a well-diversified group with an ascertained footprint in chemicals, textiles (spinning) and consumer products segments. In chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Carbon
Slide 41: Thank You
Thank You 40