Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q1 FY2025 Earnings Presentation
32 slides from Chemplast Sanmar's earnings presentation, Aug 7, 2024
Slide 1: Stock exchange cover letter: Investor Presentation
7th August, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed a copy of Investor P
Slide 2: Chemplast Sanmar Ltd. Investor Presentation – Q1 FY '25
Chemplast Sanmar Ltd. Investor Presentation – Q1 FY ’25
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the ‘Presentation’), which have been prepared by Chemplast Sanmar Ltd. (the ‘Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Performance Highlights
Performance Highlights Se
Slide 5: Performance Highlights: Q1 FY '25
Performance Highlights: Q1 FY ’25 Key Highlights Revenues Rs. Cr • PVC prices temporarily revived during the quarter due to increased ocean freights 1,145 996 1,051 – however, there has been a slippage in prices post the end of the quarter • Feedstock (VCM and EDC) prices have tracked PVC prices dir
Slide 6: MD's Message
MD’s Message “We are pleased to update that the Company has reported the total revenues of Rs. 1,145 Cr with an EBITDA of Rs. 124 Cr, an 11% margin during Q1 FY ‘25. The first quarter of the financial year has started on a positive note registering a noteworthy profitability, showing a sign of impro
Slide 7: Segmental Highlights - Quarterly Revenue Break-up
Segmental Highlights - Quarterly Rs. Cr Speciality Chemicals Value -added Suspension PVC Consolidated Chemicals# Revenue Break-up 1,145 1,051 652 641 996 332 351 152 596 127 122 218 Q1 FY '24 Q4 FY '24 Q1 FY '25 Q1 FY '24 Q4 FY '24 Q1 FY '25 Q1 FY '24 Q4 FY '24 Q1 FY '25 Q1 FY '24 Q4 FY '24 Q1 FY '2
Slide 8: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Rs. Cr Particulars Q1 FY ’25 Q1 FY ’24 Y-o-Y Q4 FY ’24 Q-o-Q Revenue from Operations 1,145 996 15% 1,051 9% Cost of Goods Sold 685 725 -6% 724 -5% Employee Cost 58 38 53% 51 14% Other Expenses 278 268 4% 255 9% EBITDA 124 (35) n.a. 21 n.a. EBITDA Margin % 11% -3% 2
Slide 9: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Rs. Cr Particulars Q1 FY ’25 Q1 FY ’24 Y-o-Y Q4 FY ’24 Q-o-Q Revenue from Operations 560 350 60% 516 8% Cost of Goods Sold 264 154 71% 307 -14% Employee Cost 40 25 56% 37 7% Other Expenses 212 194 9% 188 13% EBITDA 45 (24) n.a. (16) n.a. EBITDA Margin % 8% -7% -3% O
Slide 10: Company Overview
Company Overview Ss
Slide 11: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… 4 Manufacturing Experienced management #1 #1 sites with a high degree of team with deep domain manufacturer Leading player manufacturer of backward integration (2) expertise of Speciality in Custom S-PVC in South Paste PVC Manufactured India
Slide 12: … with a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar CCVL (1) Speciality Chemicals Value-added Chemicals Suspension PVC Speciality Paste PVC Custom Caustic Soda Hydrogen Chloromethanes resin Manufacturing peroxide Irrigation Auto and Paper End-user Footwear Furniture Pharma Agrochemicals Textile
Slide 13: The Sanmar Advantage: Speciality Paste PVC
1. Speciality Paste PVC Part of speciality chemical division of Chemplast Sanmar. Largest manufacturer of Speciality Paste PVC resin in India • Manufactured at Mettur facility since 1968; 41 ktpa one-step process capacity added at Cuddalore in Q4-FY ‘24 CSL is the oldest player and one of only two c
Slide 14: The Sanmar Advantage: Custom Manufactured Chemicals
2. Custom Manufactured Chemicals Part of speciality chemicals division of Chemplast Sanmar; growing Renowned for our Sustainability, Environmental and Safety rapidly on the back of 15 years of long-standing client relationships stewardship • Quality manufacturing at Berigai facility in a safe and su
Slide 15: The Sanmar Advantage: Caustic Soda, Hydrogen Peroxide, Chloromethanes, Ref. Gas
3. Caustic Soda | Hydrogen Peroxide | Chloromethanes | Ref. Gas Part of Value-added chemicals division of Chemplast Sanmar; These complete the integration story of the company • Generated as a joint product in the process of manufacture of Capacity chlorine Caustic soda 119,000 • Sold at 48-50% conc
Slide 16: The Sanmar Advantage: Suspension PVC
4. Suspension PVC (1) Largest manufacturer of S-PVC in South India Strong customer relationships with a diversified dealer/ and second largest in India customer network • Manufactured at Cuddalore facility since 2009; 331 ktpa capacity The Sanmar Advantage • This facility has a captive import termin
Slide 17: Well Positioned to Capture Growth
Well Positioned to Capture Growth
Slide 18: Well Positioned to Capture Growth
Well Positioned to Capture Growth ‣ Over five decades track record ‣ State-of-the-art manufacturing units at strategic locations ‣ Significant expansion projects – Speciality chemicals Chemplast Sanmar Limited ‣ High growth industry ‣ Strong focus on sustainability ‣ Committed leadership team with e
Slide 19: 1. Over five decades track record
1. Over five decades track record Commencement of Expansion of Marine terminal Capacity expansion: CCVL became a wholly Commissioned Phase 1 of manufacturing of production capacity facility and EDC Paste PVC to 66,000 tpa at owned subsidiary of our Custom Manufacturing PVC resins at Mettur of PVC re
Slide 20: 2. State-of-the-art Manufacturing Units
2. State-of-the-art Manufacturing Units… 01 Mettur, Tamil Nadu • The site consist of 4 plants with high degree of integration • Paste PVC – 66 ktpa • Zero liquid discharge facility • Hydrogen Peroxide – 34 ktpa • Sourcing of power from a captive power plant of 48.5 MW • Chloromethanes – 35 ktpa • Re
Slide 21: … with a High Degree of Backward Integration
… with a High Degree of Backward Integration Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Imported Coal Caustic Soda Methanol EDC Power Plant Ref. Electrolysis Gases Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCl HCl 35 kt Salt 400kt (Vedara
Slide 22: 3. Significant expansion projects – Speciality chemicals
3. Significant expansion projects – Speciality chemicals 4,500 mtpa Steady state Phase 2 2,000 mtpa 1,068 Phase 1 To be mtpa Commissioned Existing Commissioned (Q2 FY ‘25) (Sep ’23) • Commissioned Phase 1 of multi-purpose production block in Sep ‘23 Custom Manufacturing • Phase-2 to be commissioned
Slide 23: 4. High Growth Industry…
4. High Growth Industry… Products Speciality Paste PVC Suspension PVC Custom Manufactured Chemicals • India heavily import dependent • India set to outpace global Agro-CMC • India heavily import dependent • Demand growing at a fair clip market - AIs and advanced Key • Enough headroom to grow – no ca
Slide 24: … with CSL's unique position to capitalize on it
… with CSL’s unique position to capitalize on it Technology not Leverage Existing Infra Owns vacant industrial land and available on License 01 other infrastructure for future leg Paste PVC manufacturing technology is closely of expansion guarded and is not readily available on license 02 High Safet
Slide 25: 5. Strong Focus on Sustainability…
5. Strong Focus on Sustainability… Environment • Harmonious relationship with Friendly Practices Health & Safety Measures neighboring communities • Zero liquid discharge policy • Transport safety - Installation • Desalination plants at coastal of speed control & safety • Receive enquiries from poten
Slide 26: … with various awards & recognitions
… with various awards & recognitions Accreditations Key Awards Sword of Sword of Honor Honor British Safety ECOVADIS SILVER Star Award from British Safety Council MEDAL National Safety Council Council 2021, 2020, Mettur Safety Safety Cuddalore Plant 2 One of the two winners of the ‘Sustainability FI
Slide 27: 6. Committed Leadership Team With Eminent Board
6. Committed Leadership Team With Eminent Board Vijay Sankar Ramkumar Shankar Chairman & Managing Director Non Executive Director Dr. Krishna Kumar Rangachari N Krishnamoorthy Managing Director - Deputy Managing Director - Custom Manufactured Commercial Chemicals Division Aditya Jain Dr. Lakshmi Vij
Slide 28: Historical Financials
Historical Financials es
Slide 29: Historical Segmental Highlights
Historical Segmental Highlights Rs. Cr Speciality Chemicals Value-added Suspension PVC Total Revenue Break-up Chemicals# 3,880 5,892 1,272 2,992 4,941 1,086 863 2,510 740 2,440 3,799 3,923 913 966 1,863 3,123 749 511 517 376 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '21 FY '22 FY '23 FY '24 FY '2
Slide 30: Performance Trend
Performance Trend Revenue EBITDA Rs. Cr 13% 22% 20% 9% 1% Margin 5,892 1,197 4,941 855# 3,799 3,923 3,123 400 468 26 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '21 FY '22 FY '23 FY '24 PAT Net Debt 8% 11% 3% -4% 649 2,060 310++ 1459 152 741 -47 -362 -184 -158 FY '20 FY '21 FY '22 FY '23 FY '24 FY
Slide 31: Way forward
Way forward The Company expects margins to improve and Realisations are expected to be under pressure Speciality Paste Caustic soda 4 in the short-term and stabilize thereafter on the 1 sustain over the medium to long term driven by PVC the tightness in global demand supply back of growth in demand
Slide 32: Thank You!
Thank You! Company Chemplast Sanmar Ltd. CIN- L24230TN1985PLC011637 Harish Sridhar / C S Sayee Venkatram - Investor Relations grd@sanmargoup.com www.chemplastsanmar.com Investor relations advisor Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Shikha Puri / Shrikant Sangani shikha.pu