Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Investor Presentation (May 2019)
33 slides from Aksharchem India's investor presentation, May 16, 2019
Slide 1: Stock exchange cover letter for investor presentation
® Ref: AKSHAR/SE/2019-20/1905/16 ,·1 : AksharChem May 16, 2019 To, To, Deputy General Manager The General lY,lanager (Listing) Department of Corporate Services National S ck Exchange of India Ltd. BSE Limited 5th •Flo , xchange Plaza, 25 th Floor, P.J. Towers Ba a Kurla Complex, Dalal Street andra (
Slide 2: AksharChem (India) Limited Investor Presentation - May 2019
AksharChem (India) Limited Investor Presentation - May 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (India) 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 se
Slide 4: Result Update
AksharChem . Result Update
Slide 5: Annual Result Highlights
Annual Result Highlights Total Volume (MT) Revenue (Rs. In Crs.) EBITDA (Rs. In Crs.) +9% +22% -17% 9,562 322.9 41.6 8,813 264.3 34.5 FY18 FY19 FY18 FY19 FY18 FY19 High volatility in crude prices during the year along with Currency fluctuation Our product demand is intact Increased on the back of hi
Slide 6: Result Highlights – Q4 FY19
Result Highlights – Q4 FY19 Total Volume (MT) Revenue (Rs. In Crs.) EBITDA (Rs. In Crs.) +12% -2% 2,545 2,643 82.0 80.1 9.6 2,355 +4% 76.5 +5% +7% 5.0 5.4 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 Q4 FY18 Q3 FY19 Q4 FY19 Y-o-Y: Increased cost of new Y-o-Y: Better volumes on the Y-o-Y: Volume l
Slide 7: FY19 Highlights
FY19 Highlights ➢ The Board of Directors have recommended a Final Dividend of Rs. 3.50 per equity share which is 35% of face value of Rs. 10 per equity share for the Financial Year FY18 – FY19 ➢ CARE Ratings has reviewed the ratings on the bank facilities of the Company and reaffirmed the rating for
Slide 8: Profit & Loss Statement - Q4 & FY19
Profit & Loss Statement* - Q4 & FY19 Particulars (In Crs.) Q4 FY19 Q4 FY18 Y-o-Y FY19 FY18 Y-o-Y Net Revenue from Operations 80.1 76.5 5% 322.9 264.3 22% Raw Material 51.0 49.2 204.5 160.3 Employee Expenses 2.8 2.7 9.7 8.4 Other Expenses 20.9 15.1 74.2 54.0 EBITDA 5.4 9.6 -44% 34.5 41.6 -17% EBITDA
Slide 9: Balance Sheet
Balance Sheet* Assets (In Crs.) Mar-19 Mar-18 Equity & Liabilities (In Crs.) Mar-19 Mar-18 Property, Plant & Equipment 126.0 86.0 Share Capital 8.2 8.2 Capital Work-in-Progress 30.8 25.8 Other Equity - Reserve 249.0 229.5 Other Intangible Assets 0.0 0.1 Intangible Assets under Development 0.2 0.2 To
Slide 10: From the Chairperson’s Desk
From the Chairperson’s Desk At AksharChem, we believe growth is the only constant in dynamic business environment. Innovation is our heritage, the foundation on which our Company is built. Our efforts focus on continuous improvement in products and processes. Our products comply with all internation
Slide 11: Update on Capex
AksharChem . Update on Capex
Slide 12: Capacity Utilisation
Capacity Utilisation Installed Capacity Production Capacity Utilisation 11,400* 100 94% 90 9,720 9,720 87% 84% 9,672 9,240 9,240 80% 80% 80 75% 74% 8,441 70 7,800 7,786 7,428 6,881 60 6,000 5,838 5,642 50 40 30 20 10 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 * Total Capacity not available for the full ye
Slide 13: Company Overview
AksharChem . Company Overview
Slide 14: We Have Developed The EDGE
We Have Developed The EDGE Largest exporter of VINYL SULPHONE in India with ~ 45% share in exports of this product 22% Revenue CAGR FY13-19 57% Net Worth CAGR FY13-19 83% Exports FY18-19 One of the largest exporters from India and among the largest Net Cash Company players globally for CPC GREEN PIG
Slide 15: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades • CAPEX plan Promoted by Mrs. Became a listed entity announced for CPC CPC Green (Capacity Green, H-Acid & Paru M. Jaykrishna as IPO objective: to fund 1,440 TPA) Division of Precipitated Silica Audichem (India) Pvt. plant capacity . Asahi Songwon . Ltd. expansion from
Slide 16: With Right Products
With Right Products Dye Intermediates Pigments Products Vinyl Sulphone & H-Acid CPC Green Capacity 9,000 TPA 2,400 TPA Usage Intermediate product for Dye Used as colouring agents Manufacturing Key Acentanilide , Caustic Soda & CPC Blue, Aluminium Chloride Raw Materials Other Chemicals & Other Chemic
Slide 17: With Diversified End User Industry
With Diversified End User Industry Plastics Rubber Plastics CPC Green CPC Green CPC Green Ink Plastics Paint CPC Green CPC Green CPC Green 16
Slide 18: With Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 19: With State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness. 18
Slide 20: With Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand Philippines SOUTH Malaysia AMERICA Brazil Indonesia AUSTRALIA South Africa Presence in over 20 countries *Map
Slide 21: Investment on Environment for Sustainable Growth
Investment on Environment for Sustainable Growth Consistent Spending for Pollution Treatment Expenses (In Crs.) 16.0 12.0 11.6 10.8 9.7 FY15 FY16 FY17 FY18 FY19 ➢ It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses ➢ Internationally recognise
Slide 22: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Gautamkumar M. Jain Founder, Chairperson & Mg. Director Independent Director Her role is that of a strategic decision Industrialist with over 41 years and policy maker to ensure growth experience in the chemical industry, past President of the Gujra
Slide 23: With Awards & Accolades
With Awards & Accolades • Trishul Award for the • Top Performer Women • Special Trophy for self • Gold Award for the outstanding export Entrepreneur-NON MSME manufactured direct export outstanding export performance in Panel I: of Dyes of Rs. 25 Crores and performance in Merchant Dyes and Dye above
Slide 24: Business Strategy
AksharChem . Business Strategy
Slide 25: Reinforcing Our Strengths…
Reinforcing Our Strengths… Strong Balance Sheet Net Cash Company as of March 2019. Debt Rating : Care A1+ for short term banking facility & CARE Better Planning A+/CARE A1+ for long term/short Training term bank facilities Achieved 85% capacity Provided training to utilisation through better technic
Slide 26: … and Building a Sustainable Future
… and Building a Sustainable Future 02 04 01 03 Widen our products portfolio Focus on extending our presence in with value added products South East Asia, NAFTA and India to provide geographic hedge Focus on developing strong Maintain extensive supply business relationships with chain network across
Slide 27: Industry Opportunity
AksharChem . Industry Opportunity
Slide 28: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) ➢ The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2020 : 8.4 1. Reduction in support by the Chinese government in terms of +10% ▪ Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 29: Strengths to drive Global Leadership
Strengths to drive Global Leadership AKSHARCHEM is compliant with INTERNATIONAL QUALITY and ENVIRONMENT STANDARDS ▪ Long term quantity contract with leading GLOBAL Customer CUSTOMERS Relationships ▪ Strong Relationship with the customers for more than 2 decades ▪ ZERO Product return till date Superi
Slide 30: Financials
AksharChem . Financials
Slide 31: Key Financial Parameters
Key Financial Parameters In Crs. Net Revenue EBITDA 6% 13% 323 77 248 264 200 188 42 32 34 27 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT Cash PAT 9% 9% 53 58 31 35 23 28 16 17 20 21 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY17 was an exceptional year on the back of Chinese clamp
Slide 32: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 37.7% 47.5% 22.4% 26.8% 19.6% 25.2% 18.6% 12.9% 8.8% 12.8% Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Debt to Equity (x) Current Ratio (x) 2.8 0.4 2.8 0.3 1.7 1.3 0.2 1.1 0.0 0.0 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-15 Mar-16 Mar
Slide 33: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Ms. Neha Shroff / Ms. Khushbu Shah cs@aksharchemindia.com neha.shroff@sgapl.net / khush
AksharChem (India) — Investor Presentation (May 2019) on 6ix