Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Shareholder Meeting (September 2021)
30 slides from Aarti Industries's shareholder meeting presentation, Sep 28, 2021
Slide 1: Aarti Industries Limited
AARTI INDUSTRIES LIMITED September 28, 2021 To, Listing/Complianpce Department To, BSE LTD. Listing/Compliance Department Phiroze Jeejeebhoy Towers, National Stock Exchange of Dalal Street, India Limited Mumbai - 400 001. "Exchange Plaza", Plot No. C/1, G Block Bandra-Kurla Complex, BSE CODE -524208
Slide 2: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders 28th Sept 2021
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 5: About AIL
About AIL Overview Key Metrics ▪ A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost 200+ 400+ 700+ optimization. Products Global Customers Domestic ▪ Pharma operations spanning APIs, intermediates and Xanthene Customers derivatives ▪
Slide 6: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 7: AIL COVID Response
AIL COVID Response Stakeholders COVID - 19: Health Crisis - Annual increment given out in first quarter itself to all employees. Employees - Continued the new recuritment as committed by us. - Mobilize resources with full safety precautions - Support to Customers by Better service & logistics suppor
Slide 8: AIL COVID Response
AIL COVID Response 45k+ 10.7 97% 98% Touched & Crores INR Number of Number of Enhanced lives donated for Employees contract of people Covid-19 Relief Vaccinated workers Vaccinated Key Highlights • Provided adequate medical and financial assistance to COVID-19 infected contract workmen, AIL employees
Slide 9: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 10: Q1 FY2021-22 Highlights (Consolidated)
Q1 FY2021-22 Highlights (Consolidated) Revenues EBIDTA % 72% row th 45 r owth YoY G YoY G PAT Key Highlights: 101 % ▪ Re-iterated guidance of over 25% growth for FY22. th row YoY G ▪ Strong momentum in Q1, continuing from the second half of FY21, driven by rising demand across various products. ▪ Hi
Slide 11: Q1 FY2021-22 Highlights (Consolidated)
Q1 FY2021-22 Highlights (Consolidated) Chemical Segment Pharma Segment Chemical Segment • Continued volume expansion reflected in topline growth • Revenues also higher due to pass-on for higher input costs & logistics costs. • Return of demand from established markets driving improved margins Pharma
Slide 12: Financials - Consolidated
Financials - Consolidated Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth FY17-20 CAGR: 13% FY17-20 CAGR: 14% FY17-20 CAGR: 19% INR (Cr) INR (Cr) INR (Cr) 11 % 2% CAGR 13% CAGR 1 CAGR Significant Capex Undertaken Strong Return Ratios Debt Profile INR (Cr) CWIP of 1,298 Crs as of Mar’21
Slide 13: 10 Years Highlights
10 Years Highlights Revenues PAT 3% 5% G R 2 GR 1 CA CA Gross Block Market Capitalization 3% R 2 5% AG C G R 6 CA 12 Amount in INR (Cr)
Slide 14: Shareholders Info
Shareholders Info Q\ x: INDUSTRIES Shareholding Pattern (%) 265330 123044 42051 7 23259 26113 _ a Forin Institutions,12 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Domestic Market Cap (Rs. Cr) 2041 2042 2013 2014 2015 2046 2017 2018 2019 2020 2023 Sep-21 13
Slide 15: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 16: Key Strengths
Key Strengths Global Player in Benzene based Derivatives with Integrated Operations • Strong/Leadership position in key products and processes • Integrated operations across product chain of Benzene and Toluene • Ability to effectively use co-products and generate value-added products Well Diversifi
Slide 17: ESG for AIL
16 ESG for AIL Our Strategy : Growth with Sustainability for a Sustainable Growth ESG factors are core part of our decision making process. Environment • GHG & atmospheric Emissions • Water • Effluent Management Environment • Cleaner Technologies • Materials • Waste • Energy Social • Noise Pollution
Slide 18: Recognition on ESG
17 Recognition on ESG AIL awarded RC in Feb 2021 AIL awarded Gold Award by EcoVadis ESG Rating by CRISIL 01 Responsible Care’ is the global EcoVadis is the world’s most trusted CRISIL independently evaluated top chemical industry’s commitment to business Sustainability Ratings, 225 companies across
Slide 19: Well placed to benefit from sector tailwinds – Global
18 Well placed to benefit from sector tailwinds – Global Global Speciality chemicals market size and region-wise share Global Speciality chemicals market size and region-wise share USD Billion 2020 Others China 15% 830-850 26% 740-760 Other Asia 595 11% 740-760 India US$ Bn 4% Japan North America 8%
Slide 20: India is emerging as an alternative to China due to various factors
19 India is emerging as an alternative to China due to various factors India has grown a critical mass and several Indian Companies are eager to Invest creating global sized plants to cater to growing domestic and global demand Global multinationals need alternate sourcing destinations from China to
Slide 21: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 22: Major Projects: FY19 - FY23
Major Projects: FY19 - FY23 Operationalised by FY21 To be Completed by FY23 USFDA Capacities Expansion Operationalised New Chlorination underway: Expansion cum Asset Unit at Jhagadia. API unit at Tarapur, & Intermediates Upgradation for Acid Unit at unit at Vapi Vapi 202 3 Operationalized Phase 1 Un
Slide 23: Future Growth Projects: FY22-24
Future Growth Projects: FY22-24 (Driven by R&D & Innovation) Introducing Chloro Toulenes Value Chain: Highlights (Range of products) ● Adding new chemistries and Value added products Newer range of ● 40+ products for Chemical Setting up Universal Value Added products & Multipurpose Plants ● 50+ prod
Slide 24: Growth Estimates
23 Growth Estimates Expecting Robust Growth fuelled with aggressive Capex Investment - Capex for FY 22-24: ~ Rs 4500 - 5000 Cr Turnover: 2.5x-3.5x - Existing Products: ~1500 Cr, New Products: 3000-3500 Cr EBIT: 3x - 4x PAT: 3x - 4x FY27 Growth Turnover: 1.7x -2.0x (over FY21) EBIT: 1.7x - 2.0x PAT:
Slide 25: Qualified Institutional Placements (QIP)
Qualified Institutional Placements (QIP) 1200 Cr 5000 Cr QIP raised in June 21 Capex plans over three years Key Highlights • The company has raised the QIP in June 2021 @ Rs 855 per share. • Raise equity by over 4%. • Received an overwhelming response from investors. Book was oversubscribed with hea
Slide 26: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 27: Pharmaceuticals – Demerger Proposal
Pharmaceuticals – Exposure to multiple segments & products with strong growth opportunities, Demerger Proposal. Pharma - Significant Top Line and Margin Growth… 24% CAGR FY17-21: 20% CAGR FY17-21: 44% 18% 16% 14% 11% 79 113 136 205 426 556 726 756 872 48 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20
Slide 28: Agenda
Agenda 01 Company Overview 04 Strengths 02 AIL’s Covid Response 05 Growth Opportunity & Strategy 03 Financial Snapshot & 06 Demerger Proposal Shareholders Info 07 Corporate Social Responsibility
Slide 29: Contributing for Social Development
Contributing for Social Development COVID-19 Efforts Cluster & Rural Education & Skill Together for prosperity Development Development ‘Nearly 260 million people who are below the poverty line have to join mainstream of a good life.’ Childcare & Water Conservation & - Late Dr. APJ Abdul Kalam Health
Slide 30: Thank You
THANK YOU Email: investorrelations@aarti-industries.com
Aarti Industries — Shareholder Meeting (September 2021) on 6ix