Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — H1 FY24 Earnings Presentation
37 slides from Sudarshan Chemical Industries's earnings presentation, Nov 4, 2023
Slide 1: Exchange filing cover letter for results call presentation
4th November, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Scrip Code – 506655 Scrip Symbol - SUDARSCHEM Scrip Code NCDs - 974058 Dear Sir / Mada
Slide 2: Investor Presentation Q2 | H1 FY24
Investor Presentation Q2 | H1 FY24
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 4: Company Overview
COMPANY OV ae ERVIEW
Slide 5: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants ~$287Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 6: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. Sudarshan Mexico S. de R.L de CV. JAPAN Sudarshan
Slide 7: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider A consistent performance with Sales growing at a 218% EBITDA ₹ Cr 146% CAGR of 10% and Operating profit growing at a CAGR Domestic Revenue ₹ Cr 2,302 275 of 8% despite exiting some of the businesses. Exports Revenue ₹ Cr 2,201 FY23 has
Slide 8: Pigments Application - a global $8.6bn market opportunity
Pigments Application - a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 9: Pigment Industry View
Pigment Industry View • Emergence of India as a strong player in global chemical industry with China plus 1 focus • Softness in the input, energy and logistics costs; expected to stabilize • Macro economic conditions and Evolving geo-political uncertainties may pose some uncertainty and we maintain
Slide 10: Quarterly Performance
Quarterly Performance
Slide 11: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT^ (In ₹ Cr & Margin%) 608 601 528 +14% 70 66 21 43 18 11.5% 10.9% 8.1% 5 3.5% 3.0% 0.9% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 * EBITDA as perce
Slide 12: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights - Key Ratios Current Ratio Cash conversion cycle 1.3 1.2 1.1 108 90 82 Earnings per Share 3.0 2.6 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 0.7 Net Debt to Equity Ratio Debt ₹ Cr Net Debt to EBITDA (Annualised) Q2 FY23 Q1 FY24 Q2 FY24 1.2 3.8 2.1 0.5 1.7 0.4 92
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 536 522 44.8% 67 42.9% 64 476 +10% 38.8% 39 11.9% 12.8% 8.2% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 ➢ Improvement in gross margins due to s
Slide 14: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 265 272 272 242 250 235 +16% +3% Mix % 49% 49% 52% 51% 51% 48% Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 363 362 174 330 +10% 160 146 +10% Mix % 69% 6
Slide 15: Half Yearly Performance
Half Yearly Performance
Slide 16: Half Yearly Performance Highlights - Consolidated Financials
Half Yearly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 1,219 1,209 135 39 126 1,083 +12% 33 84 11.2% 12 10.4% 7.8% 3.2% 2.7% 1.1% H1 FY23 H2 FY23 H1 FY24 H1 FY23 H2 FY23 H1 FY24 H1 FY23 H2 FY23 H1 FY24 * EBITD
Slide 17: Half Yearly Performance Highlights - Pigment Business
Half Yearly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 1,077 1,058 43.9% 131 1,002 +6% 40.8% 111 39.6% 83 12.4% 10.3% 8.3% H1 FY23 H2 FY23 H1 FY24 H1 FY23 H2 FY23 H1 FY24 H1 FY23 H2 FY23 H1 FY24 * EBITDA as percent to Total I
Slide 18: Half Yearly Performance Highlights - Pigment Business
Half Yearly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 552 536 525 522 503 499 +7% +5% Mix % 50% 51% 51% 50% 49% 49% H1 FY23 H2 FY23 H1 FY24 H1 FY23 H2 FY23 H1 FY24 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 753 725 321 324 334 682 +6% +4% Mix % 68% 70
Slide 19: Business Outlook
Business Outlook
Slide 20: Business Outlook - FY24 and beyond
Business Outlook - FY24 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Gradual sales ramp-up of new • Expanding product portfolio to build • Building one of the most efficient Capex's expec
Slide 21: About Sudarshan
ABOUT SUDARSHAN
Slide 22: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 23: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 24: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. D. N. Damania Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani (Non-Executive, (Non- Executive, (Non-Executive, (Non-Execut
Slide 25: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 26: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 27: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 28: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 29: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 30: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 31: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERCIAL EXCELLENCE ENVIRONMENT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practice
Slide 32: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 33: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 34: Our ESG Focus
Our ESG Focus To be the global leader in Pigment industry by operating responsibly and growing sustainably Environmental Strengthening Social Manufacturing Business Responsibility Inclusiveness Excellence Accountability ❖ Air Emission and ❖ Employee Safety and ❖ Automation, Innovation ❖ Business Eth
Slide 35: Shareholder Information
Shareholder Information Share Information (as at 30th September 2023) Shareholding Pattern (as at 30th September 2023) Promoters 35.82% NSE Ticker SUDARSCHEM FIIs and FPIs 4.64% BSE Ticker 506655 Mutual Funds 9.31% Others 50.23% Market Cap (₹ mn) 33,139 % free-float 64.18% SUDARSHAN NIFTY 500 Free-f
Slide 36: Awards And Accolades
Awards And Accolades National CSR Excellence Award Best Waste Management CSR Navabharat CSR Awards 2023 for 'Integrated Village Film Award by Socio Corpo Brands of Maharashtra for Excellence in CSR Activities Development Project' India Pvt Ltd HR Excellence Award 2018 Mahatma Awards 2021 in CSR Glob
Slide 37: Thank You
THANK YOU Investor Relations at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 7th Floor, Eleven West Panchshil, Survey No. 25, Near PAN Card Club Road, Baner, Pune – 411 045, Mahar
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