Laxmi Organic Industries Ltd. · NSE:LXCHEM
Laxmi Organic Industries — Q3 FY25 Earnings Presentation
35 slides from Laxmi Organic Industries's earnings presentation, Jan 22, 2025
Slide 1: Intimation to stock exchanges of analyst meeting presentation
January 22, 2025 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Bandra Kurla Complex, 1st Floor, New Trading Ring, Bandra (E), Rotunda Building, P. J. Towers, Mumbai – 400 051 Dalal Street, Fort, Trading Symbol: LXCHEM Mumbai – 400 001 Scrip C
Slide 2: Geared to Win; Geared for Growth - Investor Presentation Q3 FY25
Geared to Win; Geared for Growth Investor Presentation – Q3 FY25 22 January 2025 www.laxmi.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Laxmi Organic Industries Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall no
Slide 4: Company Overview
Company Overview www.laxmi.com
Slide 5: Overview
Overview Essentials: Lean & Reliable supplier Specialties: World Class Technology serving diverse industries platforms with strong development capabilities serving diverse industries Large, global addressable Emphasis on Development, Quality, markets across Essentials (>USD 12bn) and ESG, Responsibl
Slide 6: Diversified Business Catering to Varied Industries
Diversified Business Catering to Varied Industries Essentials Specialties Pharmaceuticals Agrochemicals Inks & Paints Coatings Pharmaceuticals Agrochemicals Dyes & Pigments Personal Care End User Industries Printings Packaging Adhesives Fragrance & Flavour Paints & Coating Flame Redundant Electronic
Slide 7: Leadership Ambitions
Geared to Win Demonstrated 1 Cost and Technology leadership capability of Leadership absorbing and Market leadership – top 3 in scaling best in 2 Essentials (ex-China) and top class 5 in Specialties globally technologies Unlevered Balance Sheet – 3 Partner of choice for customers ready to invest Lar
Slide 8: Track Record of technology absorption and in-house R&D capabilities
Track Record of technology absorption and in-house R&D capabilities ◼ Acquisition of Ketene/Diketene ◼ Addition of >40 New Derivatives for multiple industries business 2010 including agro and pharma and CASE to the ◼ Acquired know-how of some Specialties Platform acquired from Clariant derivatives f
Slide 9: Strategically located Manufacturing Sites
Strategically located Manufacturing Sites Europe Mahad (2 Sites) As part of the global footprint, we have offices in Amsterdam (Netherlands) and Shanghai (China). Tank • Land parcel: 45 acres operations in Belgium and Italy. • Land Occupancy: 90% China • Product Mix: o Essentials – 60% o Specialties
Slide 10: Network and Alliances
Network and Alliances Ravi Goenka Dr Rajan Venkatesh Harshvardhan Goenka Rajeev Goenka Manish Chokhani Executive Chairman Managing Director & Chief Executive Director – Strategy Non-Executive Director Non-Executive Director Executive Officer & Business Development Bachelor’s degree in Chemical Maste
Slide 11: Strong Management Team
Strong Management Team Harshvardhan Goenka (ED – Strategy & BD) Virag Shah (President Specialties) B.Sc. from Babson College, School of Business in Msc in Applied Chemistry and Business Administration. Two Boston, USA, and 11 years of experience in the decades of expertise in marketing, sales, and b
Slide 12: Living Our Values to Deliver our Ambitions
Living Our Values to Deliver our Ambitions INTEGRITY INNOVATION To do what is right in the interest of all To create a culture where failure is our stakeholders with an unwavering the first step to success focus CUSTOMER CENTRICITY SUSTAINABILITY To improve the lives of our customers To make a posit
Slide 13: Accreditation & Certification
Accreditation & Certification Recognized for its sustainable practices Accredited facilities Biobased Product Label for Ethyl Acetate Going beyond the regulatory compliances Disclosure of Business Responsibility & Sustainability Report (BRSR) LAXMI ORGANIC INDUSTRIES LIMITED | Q3FY25 12
Slide 14: Awards & Accolades
Awards & Accolades State Level Award - DISH Certificate of Appreciation from National Safety Council of India for consecutive 3 years Best Supporter for fire mitigation Certificate of Appreciation from National Safety Council of India for consecutive 3 years • Received National Level Appreciation Ce
Slide 15: Geared for Growth - Strategic Plan
Geared for Growth - Strategic Plan www.laxmi.com
Slide 16: Geared for Growth: Historical Performance
Geared for Growth: Historical Performance Growth Fueled by Strategic Acquisitions, Fast Technology Absorption together with achieving >20%+ Revenue Contribution from New Products launched in last 5 years Capacity Addition for ethyl acetate and acetaldehyde ◼ Acquired Ketene / Foray into Diketene bus
Slide 17: Geared for Growth: Positioned for the next Growth Phase
Geared for Growth: Positioned for the next Growth Phase Pivoted for the Next Growth Customer Needs Proven Success Phase Innovation 1 Product 1 Customer 2 2 Platform Plant Transited Price Product 3 Platform 3 Plant Strategic shift to Customer Centric Business Approach helped us gain more market and i
Slide 18: Geared for Growth: Financial Steering for FY28 Plan
Geared for Growth: Financial Steering for FY28 Plan Essentials Specialties Ketene/ Other / New Technology Platform Esterification Acetylation Fluorination Diketene Platforms Asset Turns Asset Turns 3x - 5x 1x - 2x Targeted Financial KPIs EBITDA Margins EBITDA Margins 8-12% 20-25% Combined ROCE 20% L
Slide 19: Consolidated Enterprise
Consolidated Enterprise (in INR Mn.) Capex Plan Revenue EBITDA* ROCE ~2x ~2.7x 7,500 20% 3,500 28,650 10% 2,839 FY 25 & 26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E FY24 FY28 E Key Highlights: Incremental Capex Investment Plan of ~ INR 11,000 Mn • On Consolidated basis the company plans to achieve RoCE:
Slide 20: Essentials: 5-Year Strategy and Right to Win
Essentials: 5-Year Strategy and Right to Win Go Deeper, Go Broader Strategy Grow in the Existing Products Enter in New Products • Retain India market share • Portfolio expansion • Grow exports • De-risking of business • Focus on continuous operational efficiencies • Future ready for biobased product
Slide 21: Essentials: Geared for Growth
Essentials: Geared for Growth (in INR Mn.) Incremental Capex Revenue EBITDA* ~2x ~3x 3,500 2,000 19,485 800 FY 25 & 26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E Key Highlights Key Update: Setting up of Investments of approx. INR 5,500 Mn will enable the company to • First world scale 70KTA n-Butyl Acetat
Slide 22: Specialties: 5-Year Strategy and Right to Win
Specialties : 5-Year Strategy and Right to Win Specialties Growth Drivers Strategy Expand & Optimise in Incumbents Enter in New Products • Grow market share • Focus on global customers • Fluro assets to start delivering revue in FY25 • Improve cost leadership via continuous operational • To have min
Slide 23: Specialties: Geared for Growth
Specialties: Geared for Growth (in INR Mn.) Incremental Capex Revenue EBITDA* ~2x ~2.5x 4,000 8,205 2,039 1,500 FY 25 & 26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E Key Highlights Key Update: Investments of approx. INR 5,500 Mn will enable the company to • Lote will achieve upto 10% of peak revenues in •
Slide 24: Financial Highlights Q3 & 9MFY25
Financial Highlights Q3 & 9MFY25 www.laxmi.com
Slide 25: From the desk of MD & CEO
From the desk of MD & CEO Commenting on the Q3 & 9MFY25 results, Dr Rajan Venkatesh – MD & CEO says, “We have continued our growth journey and delivered double-digit growth in Volumes, Revenue and EBITDA in Q3 & 9MFY25 on a year-on-year basis, despite the prevailing operating environment and in the
Slide 26: Capex Update - Dahej
Capex Update - Dahej Inorganic EC Received Public hearing Civil foundation completed. on 04-May-24 Completed on 18-Jul-24 Other activities progressing on schedule. Bhoomi Pujan at Dahej Site on 10-May-24 May June July Q2 Q3 2024 2024 2024 FY25 FY25 Civil Foundation work for at Organic CTE received D
Slide 27: Capex Update - Lote
Capex Update - Lote COVID period Acquired Q3FY20 Q2 FY’21 Q3 FY’21 Q1 FY’22 Q3 FY’23 Acquisition of Land development Kilo Lab setup created at Civil & structural work Equipment's arrived from technology and assets work started at Lote Mahad - familiarization to completed Italy from Miteni, Italy Mit
Slide 28: Consolidated Financial Highlights – Q3 & 9MFY25
Consolidated Financial Highlights – Q3 & 9MFY25 (in INR Mn.) Revenue EBITDA PAT +10% +31% +20% Key Highlights 22,758 2,206 917 • Total volumes increased by ~17% 20,758 762 on a y-o-y basis in Q3FY25 and 1,685 ~15% in 9MFY25 on a y-o-y +13% +43% +8% basis across both business units. 6,943 7,863 748 2
Slide 29: Consolidated Business Highlights – Q3 & 9MFY25
Consolidated Business Highlights – Q3 & 9MFY25 (in INR Mn.) Essentials Revenue Specialties Revenue +5% +20% 15,527 7,231 14,737 6,020 +7% +29% 5,384 2,480 5,024 1,919 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3FY24 Q3FY25 9MFY24 9MFY25 EBITDA Contribution (in %) EBITDA Contribution (in %) 34% 30% 32% 32% Q3FY24
Slide 30: De-risking continues to Deliver
De-risking continues to Deliver* Exports Continue to remain Relevant Revenue from Top 10 Customer 41% 29% 30% 28% 35% 36% 34% 28% 27% 25% 71% 70% 72% 65% 64% FY22 FY23 FY24 9MFY24 9MFY25 FY22 FY23 FY24 9MFY24 9MFY25 Exports Domestic *On consolidated basis LAXMI ORGANIC INDUSTRIES LIMITED | Q3FY25 29
Slide 31: Geographical Revenue
De-risking continues to Deliver Q3FY24 Vs Q3FY25 9MFY24 Vs 9MFY25 Geographical Revenue 8% 2% 8% 23% 21% 29% 10% 26% 34% 33% 19% 2% Q3FY24 16% Q3FY25 9MFY24 9MFY25 6% 17% 15% 15% 6% 15% 17% 30% 7% 24% 16% America Europe Middle East Rest of Asia Pacific Africa China Q3FY24 Vs Q3FY25 9MFY24 Vs 9MFY25 I
Slide 32: Consolidated Profit & Loss – Q3 & 9MFY25
Consolidated Profit & Loss – Q3 & 9MFY25 (in INR Mn.) Consolidated Particulars (Rs. Mn) Q3FY25 Q3FY24 Y-o-Y 9MFY25 9MFY24 Y-o-Y Revenue from operations 7,863 6,943 13.3% 22,758 20,758 9.6% COGS 5,259 4,812 14,837 14,208 Gross Margin 2,604 2,131 22.2% 7,920 6,550 20.09% Gross Margins (%) 33.1% 30.7%
Slide 33: Annexures
LD Annexures www.laxmi.com
Slide 34: Merger of YFCPL
Merger of YFCPL Laxmi Organic Industries Limited has proposed the merger of its 100% subsidiary Yellowstone Fine Chemicals Private Limited (YFCPL). The admission for the merger was filed with NCLT in July 2024. The amalgamation of the YFCPL is expected to yield the following benefit: More efficient
Slide 35: Thank You
Thank You Company: Laxmi Organic Industries Limited Investor Relations: Strategic Growth Advisors Pvt. Ltd. www.laxmi.com www.sgapl.net CIN: L24200MH1989PLC051736 CIN: U74140MH2010PTC204285 Mr. Nishant Dudhoria / Mr. Sagar Shroff Mr. Aniket Hirpara Email: nishant.dudhoria@sgapl.net / sagar.shroff@sg
Laxmi Organic Industries — Q3 FY25 Earnings Presentation on 6ix