Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q3 FY20 Earnings Presentation
18 slides from Sharda Cropchem's earnings presentation, January 2020
Slide 1: Sharda Cropchem Limited Q3 FY20 Results Update
SHARDA CROPCHEM LIMITED Q3 FY20 RESULTS UPDATE January 2020
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q3 & 9M FY20 Result Highlights Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q3 & 9M FY20: Key Highlights
Q3 & 9M FY20: KEY HIGHLIGHTS Q3 FY20 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* Cash Profit # 29.3% 10.9% 7.9% 24.7% 4,707 512 3,827 436 18.7 % 40.9 % 303 8.8 % 398 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 9M FY20 YoY ANALYSIS REVENUES & GROSS MARGIN EBITDA & EBITDA
Slide 5: Q3 FY20: Key Performance Highlights
Q3 FY20: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues declined by 18.7% YoY from Rs 4,707.3 mn in Q3FY19 to Rs 3,827.0 mn in Q3FY20 • Region wise growth YoY – Europe: -9.9%, NAFTA: -29.7%, LATAM: 87.0% and RoW: -29.1%. • Gross profit declined by 31.6% YoY from Rs 1,381.5 mn in Q3FY19 to
Slide 6: Q3 & 9M FY20: Division Wise Highlights
Q3 & 9M FY20: DIVISION WISE HIGHLIGHTS In Rs Mn Q3 FY20 YoY ANALYSIS: REVENUE BREAKUP 9M FY20 YoY ANALYSIS: REVENUE BREAKUP 4,707 12,343 11,275 918 3,827 2,410 22.5 % 9.8 % 2,647 712 3,789 9,932 13.1 % 8,627 17.8 % 3,115 9M FY19 9M FY20 Q3 FY19 Q3 FY20 Agrochemicals Non-Agrochemicals Agrochemicals N
Slide 7: Q3 & 9M FY20: Agrochemical Business
Q3 & 9M FY20: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 3,789 3,115 9,932 8,627 3,789 3,115 9,932 8,627 10.2% 13.1% 9.4% 9.4% 21.4% 18.0% 12.4% 4.7% 9.9% 10.7% 29.2% 10.5% 53.8% 39.3% 33.5% 44.2% 78.6% 82.0% 87.6% 70.8% 41.5% 46.4% 31.3% 32.3% Q
Slide 8: 9M FY20: Agrochemical Business
9M FY20: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 27% 24% 9M FY19 49% 9M FY20 49% 24% 27% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues declined by 13.7% YoY in 9MFY20 to Rs 4,207 mn • Fungicides revenues declined
Slide 9: Q3 & 9M FY20: Non-Agrochemical Business
Q3 & 9M FY20: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 918 712 2,410 2,647 21.0% 28.6% 43.3% 36.7% 8.4% 4.1% 5.9% 3.1% 37.6% 28.7% 41.4% 32.7% 33.0% 28.7% 25.8% 20.9% Q3 FY19 Q3 FY20 9M FY19 9M FY20 Europe NAFTA LATAM RoW • Revenues in Europe grew by 22.7% in Q3 FY20 to Rs 235
Slide 10: 9M FY20: Working Capital Analysis
9M FY20: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 125 112 103 92 92 93 9M FY19 9M FY20 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS 9M FY19: 59 9M FY20: 84 * Calculated on average inventory, receivables, creditors 10
Slide 11: Q3 & 9M FY20: Consolidated Profit & Loss Statement
Q3 & 9M FY20: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY20 Q3 FY19 YoY % 9M FY20 9M FY19 YoY% FY19 Revenue from Operations 3,827.0 4,707.3 -18.7% 11,274.5 12,342.6 -8.7% 19,977.9 COGS 2,882.5 3,325.7 -13.3% 8,304.6 8,607.9 -3.5% 13,875.9 Gross Profit 944.5 1,381.5 -31.6% 2,969
Slide 12: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registrat
Slide 13: About Us: Our Presence
Sharda Cropchem Limited Ar . e oe . e . e ‘ . 13
Slide 14: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 17 % 19,978 CAGR: 17 % CAGR: 9 % 17,066 16.3% 22.2% 22.3% 20.2% 16.3% 14.3% 11.6% 13.6% 11.2% 8.8% 13,992 12,186 10,611 3,454 3,124 3,260 1,751 1,904 1,908 1,763 2,714 1,727 1,230 FY15 FY16 FY1
Slide 15: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 31ST Dec 2019 % HOLDING MARKET DATA AS ON 21ST Jan 2020 HDFC MF 9.05% Market capitalization (Rs Mn) 26,335 L & T Mutual Fund 4.95% Price (Rs.) 291.9 No. of shares outstanding (Mn) 90.2 Pinebridge Investments 4.02% Face Value (Rs.) 10.0 D
Slide 16: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 17: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 18: For Further Queries
FOR FURTHER QUERIES: Mr. Dinesh Nahar Mr. Hiral Keniya General Manager - Finance IR Consultant Email: finance@shardaintl.com Email: shardcropchem@dickensonworld.com Contact No: +91 22 6678 2800 Contact no: +91 9029662801