Atul Limited · NSE:ATUL
Atul — Investor Presentation (April 2023)
66 slides from Atul's investor presentation, Apr 28, 2023
Slide 1: Our endeavour: Reimagine, Respond, Regrow
Our endeavour Reimagine Respond Regrow April 28, 2023 | 45
Slide 2: Disclaimer
Disclaimer Atul Ltd (Atul) may, from time to time, make written and oral forward-looking statements, in addition to the statements contained in the filings of the Company with BSE Ltd and National Stock Exchange of India Ltd, and our reports to shareholders. The Company does not undertake to update
Slide 3: Index
Index 1 3 5 7 9 Background Highlights 2022-23 Serving the society Financials 2022-23 Interactions 2 4 6 8 Performance Shareholders Chemical industry updates Sub-segment-wise overview | 45
Slide 4: Background
cance C Background »
Slide 5: Founder Shri Kasturbhai Lalbhai
Founder Shri Kasturbhai Lalbhai (1894 –1980) trusteeship | discipline | foresight | eye for detail | social purpose Leadership and learning are indispensable to each other. ~ John Kennedy 1 | 45
Slide 6: Shri Balwantrai Mazumdar and Shri Siddharth Lalbhai
Shri Balwantrai Mazumdar Shri Siddharth Lalbhai (1902 – 1981) (May 03, 1923 – September 13, 1998) An economist, Balwantrai Mazumdar was a voracious reader, A chemical engineer by education, Siddharth Kasturbhai shifted sound thinker, patient listener and a farsighted professional. to Atul in 1952, t
Slide 7: Values
Values Integrity working with honesty, following the highest standards of professionalism Understanding working and connecting with others, thus enhancing human relationships Unity working together and taking advantage of synergy while harnessing unique abilities of each of us to achieve a larger pu
Slide 8: Atul entities
Atul entities Atul Bioscience Ltd Atul Brasil Quimicos Ltda DPD Ltd Atul China Ltd Atul Rajasthan Date Palms Ltd Atul Europe Ltd 4 Amal Ltd Atul Foundation Atul Club Atul Ltd Atul Ireland Ltd Rudolf Atul Chemicals Ltd Atul Middle-East FZ-LLC Atul Institute of Vocational Excellence Anaven LLP Valsad
Slide 9: Profile
Profile 30 industries 5 sales offices abroad 900 products and 4,000 customers 140 brands 400 formulations 50 MW captive power 6 production sites plant in India 75 countries 30 m3 | day effluent treatment 5 | 45
Slide 10: Pioneering efforts
Pioneering efforts largest manufacturer of Vat dyes largest manufacturer of para Cresol, para only integrated manufacturer of Resorcinol and Sulphur black dyes in India Anisic aldehyde and para Anisic alcohol in and Resorcinol formaldehyde resins in India the world DPD Ltd, a subsidiary of the Compa
Slide 11: Made in India
Made in India endeavouring to make ‘Made in India’ label proud 7 | 45
Slide 12: Industries served
Industries served Agriculture Fragrance Pharmaceuticals Automobile Glass Rubber Composites Home care Soap and Detergent Horticulture Sport and Leisure Construction Cosmetic Paint and Coatings Textile Defence Paper Tyre Wind energy Electrical and Electronics Personal care 8 | 45
Slide 13: Sub-segments
Sub-segments Aromatics Crop Protection – Pharmaceuticals Bulk Actives Bulk Chemicals and Crop Protection – Polymers – Intermediates Retail Performance Materials Colors Floras Polymers – Retail 9 | 45
Slide 14: Performance
Performance | 45
Slide 15: Sales trend
Sales trend Atul ` cr 15 years CAGR: 11% 5,002 4,929 3,845 3,824 3,460 2,510 2,403 2,639 3,052 2,307 1,964 1,746 1,508 1,159 1,168 998 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 subdued demand in key consuming industries 10 | 45
Slide 16: Profit and RoCE trends
Profit and RoCE trends Atul ` cr 1200 50% 1100 15 year PBT CAGR: 22% 45% 1000 40% 900 828 34% 804 35% 800 31% 32% 730 803 30% 700 26% 27% 26% 30% 600 22% 652 25% 21% 24% 500 18% 17% 19% 20% 397 400 397 400 13% 312 11% 277 15% 300 9% 187 10% 200 129 116 PBT % RoCE 51 80 5% 100 35 0 0% 07-08 08-09 09-
Slide 17: Sales and profit trend of Atul entities
Sales and profit trend Atul entities * 578 ` cr 6 years CAGR: 22% 518 309 244 205 209 170 16-17 17-18 18-19 19-20 20-21 21-22 22-23 100% 90% 80% 70% 47 60% 50 42 43 43 42 50% Amal | Amal Speciality (18) 31 40% Rudolf Atul Chemicals (11) 30% DPD (5) 20% 10% 10 10 0% 16-17 17-18 18-19 19-20 20-21 21
Slide 18: Capital expenditure trend
Capital expenditure* trend Consolidated ` cr 874 591 365 374 323 193 214 211 127 143 104 113 22 49 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 * amount spent number of projects completed: 8 | number of projects under implementation: 18 13 | 45
Slide 19: Projects: Completed, Under implementation
Projects Completed Under implementation | 45
Slide 20: Highlights 2022-23
cance C Highlights 2022-23 »
Slide 21: Impact on performance
Impact on performance External Russia-Ukraine conflict resulted in high cost of fuel subdued demand in key consuming industries (fragrance, personal care, pharmaceuticals, textile) Wait and watch policy adopted by many companies Internal Delay in implementation of projects Delay in reachin
Slide 22: Low capacity utilisation and pressure on margin
Low capacity utilisation Russia-Ukraine conflict resulted in high cost of fuel Slow-down in manufacturing activity Wait and watch policy adopted by many companies resulted in subdued demand Pressure on margin Finished goods prices fell more than raw material prices Fuel prices remained
Slide 23: Fire incident
Fire incident Major fire in one of the plants in sub-segment Pharmaceutical (April 2022) Plant fully insured at reinstatement value On account amount received from insurance company Reconstructed plant expected to commission in Q2 of 2023-24 16 | 45
Slide 24: Capacity discovery
Capacity discovery ` cr Segment Sales potential Life Science Chemicals (9) 66 Performance and Other Chemicals (5) 37 Total 103 Retail sales 3 year CAGR: 22% 442 ` cr 387 301 2020-21 2021-22 2022-23 17 | 45
Slide 25: Contingent liability and growth projects
Contingent liability Long pending contingent liability settled Growth ` cr Projects 22-23 Entities Implemented Under implementation Atul 268 561 Group entities Atul Products 817 Amal Specialty Chemicals 76 - Atul Finserv 27 DPD quarantine laboratory 15 Sub total 76 859 Total 344 1,420 18 | 45
Slide 26: People development
People development Continuous feedback Development Performance and Skip level dialogues Interactions Presentations development Dept | Bu – Fu | Corporate Key inputs for IDP dialogues L and L+1 L+2 Bu | Fu head Identified managers Quarterly Half-yearly Annually As scheduled Continuous Focus on-the-jo
Slide 27: Shareholders
cance C Shareholders »
Slide 28: Return on share
Return on share ` per share 216 213 205 EPS 187 … 93 96 91 72 73 46 30 30 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 per share 2 Dividend 1 325% 275% 250% 200% 150% 120% 75% 85% 100% 100% 45% 45% 60% 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21
Slide 29: Serving the society
cance C Serving the society »
Slide 30: Atul Foundation
Atul Foundation | 45
Slide 31: Education | Empowerment
Education | Empowerment 8,410 students 65 SHGs | 723 women 103 Adhyapikas | 86 villages Godaan in Odisha 27,260 children, youth and women empowered through education and empowerment initiatives | 45
Slide 32: Health | Relief
Health | Relief 3,755 adolescent girls | women screened 45 eye camps | 16,293 patients supported 186 children in difficult condition started Atul Health care center 38,270 children, youth, men and women supported through health and relief initiatives | 45
Slide 33: Infrastructure | Conservation
Infrastructure | Conservation waste management water conservation model anganwadis water recycling 88 villages covered through various conservation and infrastructure initiatives 52,190 trees planted in and around Atul village | 45
Slide 34: Chemical industry updates
Chemical industry updates | 45
Slide 35: World chemical market 2021
World chemical market 2021 Euro bn Country Production Imports Exports Consumption Net import Germany 171.3 93.9 127.5 137.7 (33.6) India 103.5 62.6 32.8 133.3 29.8 France 103.4 50.8 65.0 89.2 (14.2) USA 437.0 125.3 150.2 412.1 (24.9) China 1,729.2 188.2 160.5 1,757.0 27.7 Japan 190.0 39.1 70.1 159.0
Slide 36: Indian chemical industry: production vs consumption
Indian Chemical industry Production vs Consumption Euro bn Year Production Exports Imports Consumption 2018 102 28 48 121 2019 105 30 49 124 2020 93 27 42 108 2021 104 33 63 133 CAGR 1% 5% 10% 3% CAGR of consumption significantly higher than CAGR of production Source: VCI 22 | 45
Slide 37: Import and export prices
Import and export prices USD | MT Import of products falling under the purview of Chemexcil, for the year 2019-20, 2020-21, 2021-22 and 2022-23 2019-20 2020-21 2021-22 2022-23 Chapter number | Volume Volume Volume Volume panel Rate Rate Rate Rate MT MT MT MT Imports Dyes 41,513 8,053 35,652 7,593 44
Slide 38: Financials 2022-23
Financials 2022-23 | 45
Slide 39: Profit and loss (standalone)
Profit and loss (standalone) ` cr Particulars 22-23 21-22 % Revenue from operations 5,062 4,993 1% Expenditure 4,366 4,130 Other income 199 90 EBIDTA 895 953 - EBIDTA % 18% 19% Interest 2 3 Depreciation 163 146 PBT 730 804 (9%) Tax 178 196 PAT 552 608 (9%) RoCE % 19% 24% Average capital employed 3,8
Slide 40: Segment results (consolidated)
Segment results (consolidated) ` cr Life Science Chemicals Performance and Other Chemicals Particulars 22-23 21-22 Inc | (dec) 22-23 21-22 Inc | (dec) % % Net revenues from operations* 1,959 1,465 34 3,706 3,759 (1) Earnings before interest and tax 423 179 136 240 576 (58) EBIDTA % 22% 12% - 7% 16%
Slide 41: Working capital (standalone)
Working capital (standalone) ` cr Particulars Mar 23 Mar 22 Inc | (dec) Inventories 648 701 (53) Debtors 894 1,059 (165) Other current assets 320 192 128 Gross working capital* 1,862 1,952 (90) Current liabilities 717 841 (124) Net working capital 1,145 1,111 34 *excluding liquid investment 26 | 45
Slide 42: Group entities
Group entities ` cr 200 25 50 46 158 38 41 44 143 40 150 126 15 5 30 34 100 (2) 5 20 24 20 16 (7) 13 50 -5 10 14 0 -15 0 4 Atul Bioscience DPD 80 80 150 60 61 120 60 60 111 43 40 100 89 40 40 30 22 20 19 2 50 11 20 20 0 11 (15) 0 (20) 0 0 20-21 21-22 22-23 20-21 21-22 22-23 Amal consolidated Rudolf
Slide 43: Cash flow
Cash flow Particulars 2022-23 2021-22 ` cr Profit before tax 730 804 Adjustment for depreciation, finance costs and others 54 86 Changes in working capital and others 123 (481) Cash generated from operations 907 409 Income tax paid net of refunds (177) (192) Net cash inflow from operating activities
Slide 44: Sub-segment-wise overview
Sub-segment-wise overview | 45
Slide 45: Sub segment: Aromatics
Performance and Other Chemicals Life Science Chemicals Sub segment: Aromatics Product groups: Intermediates and API intermediates Serving: Chemical additives, Fragrance, Personal care and Pharmaceutical industries Product Market share Competition (2022-23) p-Cresol (P&OC) 42% Asia (3) North America
Slide 46: Sub segment: Aromatics sales and opportunity
Sub segment: Aromatics Sales ` cr Opportunity landscape 3 year CAGR: 5% Volume growth 22-23: (9)% 1,222 Additives Fragrance Personal care 1,147 1,059 939 World, $ bn 3.9 21.0 28.0 CAGR 4.5% 4-5% 5% India, $ mn 31 650 660 CAGR 4% 5% 5% 2019-20 2020-21 2021-22 2022-23 Source: Customer interactions | m
Slide 47: Sub segment: Bulk Chemicals and Intermediates
Performance and Other Chemicals Sub segment: Bulk Chemicals and Intermediates Product groups: Bulk chemicals, Adhesion promoters, Intermediates Industries served: Cosmetics, Chemical, Dyestuff and Tyre Product Market share Competition (2022-23) Resorcinol Significant (India) Asia (4) Insignificant (
Slide 48: Bulk Chemicals and Intermediates sales and opportunity
Sub segment: Bulk Chemicals and Intermediates Sales 3 year CAGR: 9% ` cr Opportunity landscape Volume growth 22-23: 2% 491 Global tyre market (million units) 454 CAGR: 3% 382 354 2019-20 2020-21 2021-22 2022-23 2022 2023 2024 2025 2026 2027 2028 *inclusive of internal sales Relevant products: Resorc
Slide 49: Sub segment: Colors
Performance and Other Chemicals Sub segment: Colors Product groups: Textile dyes, Pigments Industries served: Textile, Paint and Coatings and Paper Product group Market share Competition (2022-23) Textile dyes Significant (India) India (>100), Asia, Europe Insignificant (World) HP pigments Insignifi
Slide 50: Sub segment: Colors sales and textile industry
Sub segment: Colors Sales 3 year CAGR: - ` cr Indian textile industry Volume growth 22-23: (25)% 802 Indian textile industry has been facing challenges and production has turned sluggish in last 3 quarters. Reasons for the same are: Energy 626 624 591 Cotton price movement Energy and raw materia
Slide 51: Rudolf Atul Chemicals Ltd
Rudolf Atul Chemicals Ltd Impacting factors: 3 year CAGR: 11% ` cr Volume growth 22-23: (11)% 120 Home-furnishing segment where RACL presence is high, 111 running at 50-60% capacity utilisation Post pandemic, demand for biocidal finish fading out 88 Seasonal demand of repellent finishes subdue
Slide 52: Crop Protection – Bulk Actives and Retail
Life Science Chemicals Sub segment: Crop Protection – Bulk Actives and Crop Protection – Retail Product groups: Fungicides, Herbicides and Insecticides Industries served: Crop protection chemicals, agriculture, lawn and garden industries Product Market share* Competition (2022-23) 2,4-D and downstre
Slide 53: Crop Protection sales and opportunity
Sub segment: Crop Protection – Bulk Actives and Retail Sales ` cr Opportunity landscape 3 year CAGR: 23% 953 Volume growth 22-23: 20%(BA), 6% (Re) 748 8.3 bn people by 2030 597 465 153 176 197 106 2019-20 2020-21 2021-22 2022-23 CP Bulk actives CP Retail agriculture and allied businesses would remai
Slide 54: Our brands
Our brands Herbicides Bio-stimulants Fungicides Insecticides | 45
Slide 55: Sub segment: Pharmaceuticals
Life Science Chemicals Sub segment: Pharmaceuticals Product groups: APIs and API intermediates Industries served: Pharmaceutical Product group Market share Competition (2022-23) APIs and API intermediates Insignificant (world) India, Asia, Europe, North America Dapsone 50% India, Europe Phosgene che
Slide 56: Pharmaceuticals sales and opportunity
Sub segment: Pharmaceuticals Sales 1 3 year CAGR: 5% ` cr Opportunity landscape Volume growth22-23: (39)% Generics are taking an increased market share globally 246 Europe: 47% 62% 227 2 North America: 52% 70% Japan: 31% 40% 213 Europe: 26% 29% Japan: 16% 18% North America: 16% 23% 183 A
Slide 57: Polymers – Performance Materials
Performance and other Chemicals Sub segment: Polymers – Performance Materials Product groups: Epoxy resins, Curing agents, Reactive diluents, Accelerators and catalysts, Flexibilisers, Sulfones Industries served: Adhesives, Aerospace and Defence, Automotive, Composites, Construction, Electrical and
Slide 58: Polymers – Performance Materials sales and opportunity
Sub segment: Polymers – Performance Materials Sales 3 year CAGR: 21% ` cr Opportunity landscape Volume growth 22-23: 11% 1,348 1,280 Paint and Coatings Composites Electrical and Electronics 926 3.3% 6% ` ‘000 cr 6% 41 33 16 728 38 29 14 2022-23 2024-25 2022-23 2024-25 2022-23 2024-25 Applications Ap
Slide 59: Sub segment: Polymers – Retail
Sub segment: Polymers – Retail Sales 3 year CAGR: 20% ` cr Opportunity landscape Volume growth 22-23: 4% 245 211 148 SR, SBS industrial 136 epoxy maintenance and PU protective paints India, $ mn 150 415 25 950 CAGR 8% 9% 8% 9% Offering solutions Forward path automobiles Improve channel management
Slide 60: Our brands
Our brands inception of Polymers – Retail 2008 2010 2017 acquisition of Polygrip launch of Lacare and Epoguard | 45
Slide 61: Sub segment: Floras
Life Science Chemicals Sub segment: Floras Industries served: Food and Nutrition 43 | 45
Slide 62: Sub segment: Floras sales and market reach
Sub segment: Floras Sales ` cr World date palm plantation (lakh hectares) 3 year CAGR: 12% Volume growth 22-23: (61%) 47 % increase | Year World area harvested (lakh ha) decrease 41 42 2012 11.13 2013 11.56 3.84 2014 11.52 -0.33 2015 11.23 -2.51 29 2016 11.83 5.33 2017 11.87 0.34 2018 12.27 3.36 201
Slide 63: Atul Rajasthan Date Palms Ltd
Atul Rajasthan Date Palms Ltd Agriculture scenario Indicators India Global Agribusiness industry (agriculture, forestry and fisheries) USD0.44 bn USD3.60 tn Share of agribusiness in GDP 17.30% 4.40% Population in2050 (est) 1.67 bn 10 bn Employment in agriculture 44% 26.60% Cropland per capita 0.12 h
Slide 64: DPD Ltd, UK (Expansion)
DPD Ltd, UK (Expansion) Phase – 1 Phase – 2 | 45
Slide 65: Valsad Institute of Medical Sciences Ltd
Valsad Institute of Medical Sciences Ltd 3D view of proposed 150 bed Super Speciality hospital at Valsad (under implementation) | 45
Slide 66: Contact us
Contact us Website LinkedIn Facebook www.atul.co.in www.linkedIn.com/company/atul-limited www.facebook.com/AtulLimited Atul Ltd Atul 396 020, Gujarat India investors@atul.co.in | (+91 2632) 230000 | 45