Tatva Chintan Pharma Chem Limited · NSE:TATVA
Tatva Chintan Pharma Chem — Investor Presentation (October 2021)
40 slides from Tatva Chintan Pharma Chem's investor presentation, Oct 29, 2021
Slide 1: Exchange filing cover letter: Investor Deck
Date: 29 October 2021 Ref No:-TCPCL/SEC/2021-22/00038 To, The General Manager, The Manager, Corporate relationship department, Listing department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Fort, Bandra-Kurla, Complex B
Slide 2: Investor Deck October 2021
OCT 2021 Investor Deck Tatva Chintan Pharma Chem Limited (TCPCL)
Slide 3: Contents
Contents 01 02 03 04 Tatva Chintan at Glance Product Categories Leading Sustainable Expansive international practices coupled with presence with Marquee cutting edge technology clientele 05 06 07 08 Why Tatva Chintan Industry Outlook Our Business Financial Performance 2
Slide 4: Tatva Chintan at Glance
TATVA CHINTAN at Glance INTEGRATED SPECIALTY CHEMICAL COMPANY, PRESENT ACROSS THE VALUE CHAIN • Established by first generation entrepreneur engineers in Manufacturing Products Revenue Split – FY21 1996 • Plants located at Ankleshwar and Dahej SEZ, Gujarat with an existing combined installed capacit
Slide 5: Tatva Chintan at Glance (Contd.)
TATVA CHINTAN at Glance (Contd.) KEY METRICS FY21 KEY FINANCIAL NUMBERS FY21 150+ 1,300+ 436+ ₹3003.59 23.9% ₹26.02 33.0% Products Customers Workforce Revenue from EBIDTA % EPS RoCE % operations (In Mn) CRISIL A- 25+ Stable/ A2+ Countries 31.5% ₹902.48 0.54 RoE % Borrowings Net Debt / Equity Export
Slide 6: Product Categories
© £ »s _@ Product Categories
Slide 7: Phase Transfer Catalyst (PTC)
Phase Transfer Catalyst (PTC) A Catalyst with Innumerable Benefits WHAT ARE PTC? BENEFITS DEMAND DRIVERS • PTC are used to facilitate the • Offers faster reactions • Rising demand for technologically TCPCL’S PRESENCE IN migration of a reactant from one • Higher conversion or yields, advanced environ
Slide 8: Structure Directing Agents (SDA)
Structure Directing Agents (SDA) – An important ingredient for making the world more sustainable WHAT ARE SDA? BENEFITS DEMAND DRIVERS • High purity Quaternary salts that SDAs are important raw material for • With the recent developments in TCPCL’S PRESENCE IN helps in the formation of creation of h
Slide 9: Electrolysis – A better and greener way of producing SDAs
Electrolysis – A better and greener way of producing SDAs ABOUT ELECTROLYSIS BENEFITS • TCPCL started R&D into developing SDAs • Electrolysis is considered as a ‘green’ since 2007 chemistry process wherein apart from a single starting raw material, the process largely uses • In 2015, it received com
Slide 10: Electrolyte Salts – Aiding the technological thrust
Electrolyte Salts – Aiding the technological thrust WHAT ARE ELECTROLYTE BENEFITS DEMAND DRIVERS TCPCL’S PRESENCE IN SALTS? • Due to their properties like fast Currently, these are used along with charging ability, superior low temperature performance, long Lithium battery in EV vehicles SALTS • Ele
Slide 11: Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)
Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC) WHICH PRODUCTS ARE END USER INDUSTRY APPLICATION TCPCL’S POSITION IN PASC MANUFACTURED? • Various pharmaceutical and agrochemical products such as Pharmaceuticals Agro Actives 2016 53 TCPCL is the largest producer i
Slide 12: Continuous Flow Chemistry
Continuous Flow Chemistry- sophisticated method with analytical expertise ABOUT BENEFITS PROCESS • TCPCL started R&D into continuous • Continuous Flow Chemistry is • Structure directing agents are flow chemistry since 2018 considered as a ‘green’ chemistry converted to Zeolite based catalysts proces
Slide 13: Value derived from Product Categories
Value derived from Product Categories REVENUE FROM EACH PRODUCT CATEGORY1 (In ₹ Mn) NO. OF PRODUCTS IN EACH PRODUCT CATEGORY AS AT FY21 1,202 48 47 PTC’s SDA’s 1,017 912 875 864 816 6 53 765 749 Electrolyte Salt PASC Considering the wide range of applications of our products, TCPCL can cater to cust
Slide 14: Leading Sustainable practices coupled with cutting edge technology
Leading Sustainable practices coupled with cutting edge technology 13
Slide 15: Integrated and Modern Manufacturing Facility
Integrated and Modern Manufacturing Facility ANKLESHWAR DAHEJ SEZ COMBINED CAPACITY • Both the plants are in-close proximity to • Manufacturing facility started in 1996 • Manufacturing started in 2017 Installed Hazira port. • Converted into a ‘zero liquid effluent • Sophisticated quality control lab
Slide 16: One of the prominent Research & Development center
One of the prominent Research & Development center R&D CAPITAL AND REVENUE EXPENDITURE • Dedicated R&D facility at Vadodara recognized by (In ₹ Mn) 60 the Department of Scientific and Industrial Research (“DSIR”), Government of India. Currently spread over 10,000 Sq. ft and being expanded to 36,000
Slide 17: With a focus on 'green' chemistry processes
…With a focus on ‘green’ chemistry processes TCPCL’s ‘green’ chemistry is based on the principles of clean chemistry, minimum requirement of auxiliary substances, minimum waste and by-products and safe chemistry • Undertaking various ‘green’ chemistry processes • By deploying electrolysis for the ma
Slide 18: Expansive international presence with Marquee clientele
Expansive international presence with Marquee clientele 17
Slide 19: Fostered long term relationship with marquee clientele
Fostered long term relationship with marquee clientele while continuously expanding presence in global market” ESTEEMED CUSTOMERS EXPORTS • TCPCL exports products to over 25 countries viz. USA, China, Germany, Japan, Out of 1,300+ Top 10 Customers as % of Revenue South Africa and UK. customers base
Slide 20: Why Tatva Chintan
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Slide 21: Investment Rationale
Investment Rationale Strong position in Successful track Wide basket of Continuous focus High industry Capex to boost the the niche specialty record on widening products are used in on R&D and in house barriers as new capacities and pave chemicals space with product basket, varied industries develop
Slide 22: Industry Outlook
Industry Outlook 21
Slide 23: India's rapidly expanding footprint in Global Chemical Market
India's rapidly expanding footprint in Global Chemical Market SHARE OF COUNTRIES IN GLOBAL TRENDS IN SPECIALTY CHEMICALS LANDSCAPE CHEMICAL INDUSTRY (In %) Indian Chemical Move towards Opportunity Industry got sustainable product for Indian CHINA 41% Advantage vs development: Manufacturers: EU 15% C
Slide 24: Global Chemical Industry market size
Global Chemical Industry GLOBAL Commodity Chemicals PTC SDA CHEMICAL • Basic Chemicals INDUSTRY • Manufactured In large volumes 1,031 964 Mkt Size Mkt Size MARKET SIZE • Mkt Size USD 3,700bn 2019 (USD Mn) 2019 (USD Mn) • ~Expected 6% CAGR 1,328 5.1% 1.4 6.8% Speciality Chemicals 4,738 • Value Added
Slide 25: Our Business
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Slide 26: Major Events & Milestones
Major Events & Milestones 1996 2007 2013 2017 2019 2021 Incorporation of our Expansion of Achieved turnover Set up our Dahej SEZ Incorporation of Tatva • Listed on Company manufacturing capacity at of ₹ 500.00 million Manufacturing Facility Chintan Europe BV, BSE and NSE our Ankleshwar a wholly owne
Slide 27: Leadership and Management
Leadership and Management Chintan Nitinkumar Shah Ajaykumar Mansukhlal Shekhar Rasiklal Somani Dr. Manher Chimanlal CA Subhash Ambubhai Dr. Avani Rajesh Umatt Patel Desai Patel M A NA G I N G D I RE C T O R WHOLE TIME DIRECTOR WHOLE TIME DIRECTOR I N D E P E ND E N T D I RE C T O R I N D E P E ND E
Slide 28: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- SEPTEMBER 2021 (In %) NSE Ticker TATVA BSE Ticker 543321 IPO Listing Date 29 July 2021 Share Price (₹)^ 2,191.70 PROMOTER 79.17% Market Cap (₹ Mn)^ 48,579.21 MF 6.79% % Free Float^ 15% Free float market cap (₹ Mn)^ 7,286.88 PUBLIC 6.44% Shares outstandin
Slide 29: Net IPO Proceeds
Net IPO Proceeds USE OF NET IPO PROCEEDS1 (In ₹ Mn) The Net Proceeds are utilized in accordance with the details provided in the following chart: Offer for sale: Raised ₹2750 Mn Fresh issue: Raised ₹2250 Mn 2,073 ISSUE SIZE ₹5,000 MILLION Capex at Dahej plant Of: ₹1471 Mn 1,676 AT ₹1,083/PIECE 1,471
Slide 30: Financial Performance
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Slide 31: Chairman & MD's Message
Chairman & MD’s Message I am pleased to inform you that we have reported a historically record- “ breaking performance in Q2FY22; we are very well on our way of being We continued to grow organically by recognized as a niche player in the speciality chemical space with our focus incorporating innova
Slide 32: Q2 and H1FY22 Result highlights
Q2 and H1FY22 Result highlights Q2 FY22 HIGHLIGHTS Revenue from Operations1 (In ₹ Mn) EBIDTA & EBIDTA Margin 1 (In ₹ Mn, %) 450 35% PAT & PAT Margin 1 (In ₹ Mn, %) 350 30% EPS (In ₹) 400 31% 30% 300 26% 25% 324 350 1,236 250 387 25% 20% 300 200 20% 250 14% 15% 150 200 811% 15.02 15% 106% 365% 6% 10%
Slide 33: Q2 and H1FY22 Result highlights (Contd.)
Q2 and H1FY22 Result highlights (Contd.) OPERATING REVENUE SPLIT (In %) Contribution in Q2 FY22 Contribution in H1 FY22 Q2 FY22 H2 FY22 SDA 62.00% SDA 58.00% PTC 17.00% PTC 19.00% ELECTROLYTE SALTS 0.04% ELECTROLYTE SALTS 0.53% PASC 21.00% PASC 23.00% OTHERS 0.13% OTHERS 0.13% Tatva Chintan Pharma C
Slide 34: Consolidated Statement of Profit and Loss for Q2 and H1 FY22
Consolidated Statement of Profit and Loss for Q2 and H1 FY22 Particulars (₹ Mn) Q2 FY22 Q2 FY21 YoY (%) Q1 FY22 QoQ (%) H1 FY22 H1 FY21 YoY (%) Revenue from Operation 1,236.15 600.43 105.88% 1,068.32 15.71% 2,304.47 1,115.75 106.54% Other Income 28.04 19.48 43.94% 17.65 58.87% 45.69 26.87 70.04% Tot
Slide 35: Financial Highlights FY19-FY21
Financial Highlights FY19-FY21 REVENUE FROM OPERATIONS1 (In ₹ Mn, %) PRODUCT MIX1 (REVENUE FROM OPERATIONS, %) 59 Contribution in FY19 Contribution in FY21 14 5 SDA 12% SDA 40% 3,004 2,632 PTC 42% PTC 27% 2,063 21% ELECTROLYTE SALTS 2% ELECTROLYTE SALTS 1% CAGR FY19 FY21 PASC 42% PASC 30% FY19 FY20
Slide 36: Creating value for our stakeholders
Creating value for our stakeholders NET DEBT1 (In ₹ Mn) & NET DEBT/EBITDTA (TIMES) CAPITAL EMPLOYED1 (In ₹ Mn) & RoCE (%) 950 2.5 2,500 35% 33% 2.25 32% 30% 900 2 2,000 26% 25% 1.61 850 1.5 1,500 20% 800 1.26 1 1,000 15% 10% 750 0.5 500 1,968 1,149 1,613 5% 771 907 902 700 0 - 0% FY19 FY20 FY21 FY19
Slide 37: Consolidated Statement of Profit and Loss FY19-FY21
Consolidated Statement of Profit and Loss FY19-FY21 For the period ended Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 30 September 2021 Audited Audited Audited Un-Audited Income Revenue from operations 2,063.07 2,632.39 3,003.59 2,304.47 Other income 4.94 13.83 59.33 45.69 Total inco
Slide 38: Consolidated Statement Balance Sheet FY19-FY21
Consolidated Statement Balance Sheet FY19-FY21 As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 30 September 2021 Audited Audited Audited Un-Audited Assets Fixed Assets 665.75 1,110.60 1,203.51 1,241.86 Capital work-in-progress 60.36 48.92 98.11 331.03 Intangible assets 1.38 1.20 0
Slide 39: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company's results may
Slide 40: Thank You
OCT 2021 Thank You TATVA CHINTAN PHARMA CHEM LIMITED INVESTOR RELATIONS AT CORPORATE OFFICE TATVA CHINTAN Plot No. 353, G.I.D.C, Dinesh Sodani Makarpura, Vadodara – 390 010, Gujarat, India finance1@tatvachintan.com BSE: 543321 CHRISTENSEN ADVISORY NSE: TATVA Krishna Patel / Rahul Thakur CIN: L24232G
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