Ghcl Limited · NSE:GHCL
Ghcl — Q4 FY20 Earnings Presentation
50 slides from Ghcl's earnings presentation, May 2020
Slide 1: GHCL Limited Q4 & FY20 Investor Update
GHCL LIMITED DRIVING EXCELLENCE Q4 & FY20 Investor Update May 2020
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL 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 securities, and
Slide 3: Table of contents
Table of contents Quarterly & Company Inorganic Annual Update Overview Chemicals Segment Textiles Segment 4 20 29 39 3
Slide 4: Quarterly & Annual Update
Quarterly & Annual Update 4
Slide 5: Management Commentary
Management Commentary Commenting on the Q4 & FY20 performance, Mr. R. S. Jalan, MD said: “The current COVID-19 pandemic has resulted in a major disruption in various business segments. The situation accentuated a need to take various measures to comprehend the spread of the virus, like nationwide lo
Slide 6: Management Commentary
Management Commentary Recorded a PAT of Rs. 80 crore for Q4FY20 compared to Rs. 119 crore inQ4FY19 o Inorganic Chemicals – The EBITDA Margins have been lower by 4%. This is despite a drop in realization by 11%. We would recover 7% due to lower input cost and operational efficiencies. Further due t
Slide 7: Demerger of the Textiles business of GHCL
Demerger of the Textiles business of GHCL Fine prints of demerger Key Rationale The Board approved a scheme of demerger Nature of product offerings and risk where Textiles business of GHCL will be and return profile of both the Focused demerged into a separate Company businesses are very differe
Slide 8: Rewarding Shareholders: Buyback & Interim Dividend
Rewarding Shareholders: Buyback & Interim Dividend Update on Share Buyback The Board of Directors of the Company had approved the proposal of Buyback of equity shares with a face value of Rs. 10 each at its meeting held on 23rd January, 2020 The Buyback of 32,00,000 Equity Shares was completed i
Slide 9: Update on COVID-19
Update on COVID- 19 Exhibit 1 In compliance with the directives received by the Govt. of India and in order to Revenue EBITDA limit the spread of novel Coronavirus, the management decided to temporarily shutdown its Chemical and Textiles facilities across all locations. 2539 602 2470 After obtai
Slide 10: Performance Highlights – FY20 and Q4 FY20
Performance Highlights –FY20 and Q4 FY20 Revenues EBITDA PBT PAT FY20 3% 3% 7% 13% ` 3,272 crore ` 763 crore ` 504 crore ` 407 crore Q4 FY20 20% 33% 54% 33% ` 734 crore ` 161 crore ` 83 crore ` 80 crore 10
Slide 11: Profit & Loss Statement
Profit & Loss Statement Rs. In Crore Particulars Q4 FY20 Q4 FY19 YoY Q3 FY20 QoQ FY20 FY19 YoY Sales 734 915 -20 % 834** -12 % 3,272 3,385 -3 % Operating Expenses 572 673 -15 % 657 -13 % 2,509 2,601 -4 % EBITDA 161 241 -33 % 177 -9 % 763 784 -3 % EBITDA Margin 22.0% 26.4% -4.4% 21.2% 80 BPS 23.3% 23
Slide 12: Q4 FY20 Segment Highlights – Inorganic Chemicals
Q4 FY20 Segment Highlights – Inorganic Chemicals Chemicals – Quarterly Trend Particulars Q4 FY19 Q4 FY 20 YoY Revenue* (Rs cr) EBITDA (Rs cr) EBITDA (%) Net Soda Ash Production (Lac MT) 2.49 2.41 -3% 35.0% 33.0% 31.2% 32.0% Revenue (Rs. Crores) 607 519 -14% 28.6% EBITDA (Rs. Crores) 212 162 -24% 519
Slide 13: FY20 Segment Highlights – Inorganic Chemicals
FY20 Segment Highlights – Inorganic Chemicals Chemicals – Yearly Trend Particulars FY19 FY20 YoY Revenue* (Rs cr) EBITDA (Rs cr) EBITDA (%) 31.2% Net Soda Ash Production (Lac MT) 9.31 10.05 8% 30.8% Revenue (Rs. Crores) 2,182 2,198 1% 686 2,198 EBITDA (Rs. Crores) 672 686 2% 2,182 672 EBITDA % 30.8%
Slide 14: 9M FY20 Segment Highlights – Textiles
9M FY20 Segment Highlights – Textiles During the 1st 9 months, Home Textile seen an improved performance, however Spinning Industry had a tough time due to US-China trade war resulting in decline in Cotton prices and thus impacting yarn pricing. Qtr 4 has been further extenuated the situation du
Slide 15: Q4 FY20 Segment Highlights – Textiles
Q4 FY20 Segment Highlights – Textiles Particulars Q4 FY19 Q4 FY20 YoY Textile – Quarterly Trend Revenue (Rs. Crores) 308 214 -30% Revenue* (Rs cr) EBITDA (Rs cr) EBITDA (%) 11.6% 9.4% 10.2% 8.6% EBITDA (Rs. Crores) 29 -1 -30 Cr. 214 -0.5% EBITDA % 9.4% -0.5 % -10% 308 29 292 34 283 24 294 30 Q4 FY19
Slide 16: FY20 Segment Highlights – Textiles
FY20 Segment Highlights – Textiles Particulars FY19 FY20 YoY Textile – Yearly Trend Revenue (Rs. Crores) 1,202 1,074 -11 % Revenue* (Rs cr) EBITDA (Rs cr) EBITDA (%) 9.3% 7.2% EBITDA (Rs. Crores) 112 77 -31 % EBITDA % 9.3% 7.2 % -2.1 % 1,202 112 1,074 77 FY19 FY20 Performance Insights Revenue down
Slide 17: Balance Sheet
Balance Sheet Rs. In Crore Particulars FY20 FY19 Non Current Assets (A) 2,925 2,821 Current Assets (B) 1,276 1,174 Current Liabilities (C) 502 491 Net Working Capital (D)=(B)-(C) 774 682 Capital Employed (A)+ (D) 3,699 3,503 Net Worth (E) 2,186 1,952 Other Non Current Liabilities (F) 273 259 Long Te
Slide 18: Efficient Capital Allocation (FY20)
Efficient Capital Allocation (FY20) Rs. 520 cr Rs. 235 Crore. Rs. 137 crore* (Non Current Assets) (Decrease in Net Debt) Rs. (7)** Rs. 155 Cr. crore Generated Cash Profits CAPEX DEBT (net of Tax) Inorganic Chemicals Rs. 191 crore Textiles Paid Dividend Rs. 88 Crore Increase in Working Capital Rs. 44
Slide 19: Market Breakup & Key Financial Ratios
Market Breakup & Key Financial Ratio’s Segment-wise Revenue break-up** 17% ROCE* Textiles, 33% Inorganic 19% ROE* Chemicals, 67% Net Debt 1,126 Cr. Domestic : Exports Revenue break-up** 0.52x Net Debt-Equity Exports, 18% 1.48x Net Debt-EBITDA Domestic, 82% *Note :- ROCE and ROE are calculated on tra
Slide 20: Company Overview
Company Overview 20
Slide 21: GHCL - An Introduction
GHCL - An Introduction Targeting Best in class •To grow profits at a CAGR 20% on a long Focused management approach and term horizon •Operations management strategy led by professional •To create value systems that defines our •CAPEX planning and execution management team Culture •Financial manageme
Slide 22: GHCL Overview
GHCL Overview 3 decades of Indian Leading soda ash player in India Manufacturing experience Professionally managed Listed on 2 premier stock workforce exchanges of India Focus to emerge as a sustainable Business Philosophy of Inclusive business organization growth of all stakeholders 22
Slide 23: Balanced growth opportunities across businesses
Balanced growth opportunities across businesses Inorganic Chemicals (67%*) Textiles Segment (33%*) Margin leadership in the industry Presence across the value chain Among top 3 soda ash players. Spinning Weaving •Catering 1/4th of Indian soda ash demand •1,84,416 Spindles •12 mn meters pa •3,320 Rot
Slide 24: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash production capacity increased to 9.75 Lacs MTPA Doubled Sodium bicarbonate capacity to 60 K Soda Ash capacity increased to 8.5 Lakh MTPA MTPA Entered Spinning business with 65 K spindles Added TFOs for value added yarn and Air jet subsequently increased t
Slide 25: Spearheaded by Pre-eminent Professionals
Spearheaded by Pre-eminent Professionals Neelabh Dalmia NN Radia Sunil Bhatnagar Manu Kapur R S Jalan Executive Director , Textiles President & COO, Soda Ash President Marketing, Soda Ash President & CEO, Home Textiles Managing Director Unique leadership style with endeared managerial abilities driv
Slide 26: Experienced and accomplished Board of Directors
Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia (Chairman) (Vice Chairman) Mr. R.S. Jalan Mr. Arun Kumar Jain Dr. Manoj Vaish (Managing Director) (Ex-IRS) (Independent Director) (Independent Director) Mr. Raman Chopra Justice (Rtd.) Ravindra Singh Mrs. Vijaylaxmi
Slide 27: Core values at forefront
Core values at forefront.. GHCL is an unique work place which is dotted with its Core Thoughtful and Confidence in each Values, defining its culture. show regards for Respect Trust others capabilities another person. and intentions. Every employee in the company is expected to imbibe its Core Va
Slide 28: Strong Institutional & HNI Holding – 40.75%
Strong Institutional & HNI** Holding – 40.75% Institutional Holding – 35.22%, HNI’s**- 5.53% 19.52% 14.71% 16.72% Promoter & Promoter MF holding increased Group Foreign Portfolio Investors Mutual Funds from 13.05% to 16.72% 39.73% 3.79% 5.53% Insurance Companies/ HNI’s** Financial Institutions / Ban
Slide 29: Inorganic Chemicals
Inorganic Chemicals 29
Slide 30: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Outlook o Global economic weakness has resulted in softness in GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT Soda Ash market which is further escalated due to COVID-19 outbreak. EUROPE o China: Registered record high Soda Ash production of CA
Slide 31: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share Domestic Demand Concentration West Tata 15% Import, Chem, 23% North 20% South 29% Others, 19% 5% GHCL, 25% Nirma, East, Gujarat 27% 9% 28% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for FY19
Slide 32: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Key Differentiators Limestone Single largest (25% captive) Soda ash plant and Salt (35% in India at a captive) mine single location located within Innovated from coke to 40 km distance +90% 11.00L MT +30%* Best in class EBITDA Margins; briquette coke C
Slide 33: Aim to be the Single Largest Soda Ash producer in the country
….Aim to be the Single Largest Soda Ash producer in the country Historical capacity addition trend in Soda Ash (in lakh tonnes) Positive demand momentum from key end-user industries warranted calibrated expansions through the years CAGR: 5% 11 9.8 Capacities enhanced from 8.5 Lakh Tonnes 9.5 8.5
Slide 34: Inorganic Chemicals – Varied Offerings in Soda Ash
Inorganic Chemicals – Varied Offerings in Soda Ash Positive demand One of India’s Largest State of the Art Products are marketed in momentum from key end- Manufacturers of Soda Manufacturing Facility India under the brand user industries warranted Ash Light and Soda Ash located at Sutrapada, name ‘L
Slide 35: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries Applications of SODA ASH – GLASS, CERAMIC, DETERGENT 35
Slide 36: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Specialization and experience in manufacturing of around a decade Doubled capacity from 30,000 to 60,000 MT in December 2017 Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire Extinguishers,
Slide 37: Marquee Clients
HE GUJARAT 2 BOROSIL ik LIMITED f SAINT-GOBAIN 6 Piramal Glass i HINDUSTAN ZINC
Slide 38: Inorganic Chemicals – Consumer Products
Inorganic Chemicals – Consumer Products Premium edible Salt Manufacturer in South India Expanding product portfolio i.e. Salt, Honey, Spices and Powder Spices under the brand i-FLO. Ventured into the Premium Honey Category by pioneering the entry of Jujube Honey Under powdered spices categor
Slide 39: Textiles Segment
Textiles Segment
Slide 40: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Sustainability Traceability Giving Back to Innovation Society 40
Slide 41: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain 1.85 Lacs Spindles, 3,320 Rotors, 5,760 TFO Drums, 5 Air jet Spinning Machines 12 Mn Meters 45 Mn Meters 30 Mn Meters Bed Sheets & Spinning Weaving Fabric Processing Cut & Sew Made-up’s Also sold in Sold in Market Market Spi
Slide 42: Marquee Clients
Sainsbury's amazoncom — sl, “. Walmart.com = 8
Slide 43: From Fashion, to Sustainability
From Fashion, to Sustainability.... 14 Feb 2019 Hyperlink to articles: The New Era of Sustainability Supply Chains, Goal 2020 , Ending the era of dirty textiles, How fast fashion is destroying the planet, How plastic bottles that get turned into textiles are transforming the fashion industry, These
Slide 44: Reinventing the Bottle to Bed sheet (REKOOP)
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL 44
Slide 45: THE
THE SPIN WIN Aocoliecrianen ‘5% COMBER NOIL, 49% ORGANIC COTTON Upcyeled as 0 result of the reuse of Combe Nesl a wested produc BE he Yarn epioning process. Using Comber Noil instoad of Cotton NATURLIG reduces the consumption of water b atiebeore ‘around $200 gallons persel. NATURAL, ScOURED DUBBY ©
Slide 46: Serving the nation during COVID-19 pandemic
Serving the nation during COVID-19 pandemic Manufacturing and supplying Masks and Body Covers 46
Slide 47: Focus on driving profitable growth
Focus on driving profitable growth Soda Consumer Ash Products Textiles Modular, phase-wise capex Expanding product to give sustained volume portfolio and growth geographic footprint remains the key Emphasis on high efficiency objective in operations Continuing to drive performance Cash flo
Slide 48: Awards & Recognitions
Awards & Recognitions India’s 367 Referred as Great Place to work in four consecutive years Awarded trio of Golden Peacock of participation awards for Corporate Governance, Corporate social 366 Amongst top 25 ranking for responsibility and National manufacturing industry Quality 4 Notch Upgrades in
Slide 49: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company Contact Us: has established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 50: Thank You
Thank You 50