Ghcl Limited · NSE:GHCL
Ghcl — Q3 FY2019 Earnings Presentation
41 slides from Ghcl's earnings presentation, January 2019
Slide 1: GHCL Limited Investor Update – January 2019
GHCL LIMITED Investor Update – January 2019
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 3: Agenda
Quarterly Agenda Update 4 Company Overview 16 Inorganic Textiles Chemicals Segment Segment 25 32 3
Slide 4: Quarter Update – Q3FY19
Quarter Update – Q3FY19 4
Slide 5: Management Address
Management Address Continued growth momentum from Q2 FY19 with 44% PAT growth during the current quarter with Rs. 102 crore from Rs. 71 crore in Q3 FY18 with - R. S. Jalan, MD, GHCL highest ever EBITDA of Rs. 210 crore in any quarter. o Inorganic – Benefited from higher realization due to price in
Slide 6: Key Financial Highlights – Q3 & 9MFY19
Key Financial Highlights – Q3 & 9MFY19 In Rs. crore Particulars Q3FY19 Q3FY18 YoY 9MFY19 9MFY18 YoY Revenue 875 738 18% 2,470 2,209 12% EBITDA 210 158 33% 542 464 17% EBITDA % 24.0% 21.5% 250 BPS 22.0% 21.0% 100 BPS PBT 154 105 47% 360 295 22% Less: Current Tax 52 34 53% 118 95 24% PAT 102 71 44% 24
Slide 7: Inorganic Segment Highlights – Q3 & 9M FY19
Inorganic Segment Highlights – Q3 & 9M FY19 Particulars Q3FY19 Q3FY18 YoY 9MFY19 9MFY18 YoY Production (Lac MT) 2.52 2.43 4% 7.14 6.94 3% Sales (Lac MT) 2.30 2.33 -1% 6.76 6.64 2% Revenue (Rs. Crores)* 551 497 11% 1,576 1,382 14% EBITDA (Rs. Crores) 176 157 12% 460 428 7% EBITDA % 32.0% 31.6% 40 BPS
Slide 8: Financial Performance – Inorganic Chemicals (Quarterly)
Financial Performance – Inorganic Chemicals (Quarterly) Revenue* (Rs cr) EBITDA (Rs cr) 173 176 157 149 551 135 534 513 497 491 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 EBITDA Margin Production in MT ('000) 31.6% 33.6% 32.0% 252 27.4% 27.9% 243 243 242 220 Q3FY18 Q4FY18
Slide 9: Textiles Segment Highlights – Q3 & 9M FY19
Textiles Segment Highlights – Q3 & 9M FY19 Particulars Q3FY19 Q3FY18 YoY 9MFY19 9MFY18 QoQ Revenue (Rs. Crores)* 324 241 34% 894 826 8% EBITDA (Rs. Crores) 34 1 24x 83 36 127% EBITDA % 10.5% 0.6% 990BPS 9.2% 4.4% 480BPS Revenue increased by 34% as compared to Q3FY18, which is due to volume growth
Slide 10: Quarterly Performance - Textile Segment
Quarterly Performance - Textile Segment Revenue (Rs cr) EBITDA (Rs cr) 324 31 34 305 241 265 219 18 12 1 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 EBITDA Margin Capacity Utilization 10.5% 58% 59% 57% 61% 10.1% 46% 5.7% 6.7% 0.6% Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q3FY18 Q
Slide 11: Profit & loss Statement
Profit & loss Statement Rs. In Crores Particulars Q3FY19 Q3FY18 YoY 9MFY19 9MFY18 YoY Sales* 875 738 18% 2,470 2,209 12% Operating Expenses 665 580 15% 1,928 1,745 11% EBITDA 210 158 33% 542 464 17% EBITDA Margin 24.0% 21.5% 250 BPS 22.0% 21.0% 1% Depreciation 29 25 14% 86 76 14% EBIT 181 133 36% 45
Slide 12: Growth with Debt Reduction – Efficient Capital Allocation
Growth with Debt Reduction – Efficient Capital Allocation OPERATIONS DEBT SHAREHOLDERS CAPEX Generated Cash Profits ` (net of Tax) of ` Rs.342 crore Increase in Paid Dividend Increase in 212crore Working Debt of Rs.59 crore Rs. Capital of ESOP Equity Inorganic Chemicals Rs. Rs. 22crore Issued Rs. 16
Slide 13: Business Environment and Key Advantages
Business Environment and Key Advantages Industry GHCL Scenario Strength Strong domestic growth in both glass & Detergents, with firm pricing. Soda Ash Except Ghari, no new supplies expected in next 3 years. Strong volume gains owing to brownfield expansions for GHCL in coming years. Expertis
Slide 14: Company Overview
Company Overview 14
Slide 15: GHCL Overview
GHCL Overview 3 decades of Indian Slated to be single largest soda ash Manufacturing experience plant at one location in India Professionally managed with Listed on 2 premier stock 6,000 strong workforce exchanges of India Focus to emerge as a sustainable Business Philosophy of Inclusive business or
Slide 16: Core Business Segment Presence
Core Business Segment Presence Among top 3 soda ash players. o Catering 1/4th of Indian soda Spinning ash demand o 1,78,000 Spindles Inorganic o Margin leader in the industry; o 3,320 Rotors Textiles Chemicals with highest capacity utilization o 5,760 Drums Segment of 97% o 5 Air jet Spinning Ma
Slide 17: Journey till date and future roadmap
Journey till date and future roadmap Increase Soda Soda Ash production capacity increased to Ash production Soda Ash capacity increased to 8.5 Lakh 9.75 Lacs MTPA. MTPA by another 50 K MT by Mar’21 Entered Spinning business with 65 K Doubled Sodium bicarbonate capacity to spindles subsequently incre
Slide 18: Company's strong core comes from Pre-eminent Professionals
Company’s strong core comes from Pre-eminent Professionals RS Jalan Raman Chopra NN Radia Sunil Bhatnagar Manu Kapur M. Sivabalasubramanian Managing Director CFO & Executive President & COO, President Marketing, President & CEO, CEO, Spinning Director Soda Ash Soda Ash Home Textiles Unique leaders
Slide 19: Business philosophy going forward
Business philosophy going forward Focus on Value Systems • To create a value systems that Sustainable Robust & defines our Inclusive Growth Profitable Culture • Business Growth Philosophy of • To grow profits at “Sustainable CAGR 20% on a Inclusive Growth” long term horizon involving all the stakeho
Slide 20: Robust & Profitable growth..
Robust & Profitable growth.. Revenue EBITDA PAT EPS Rs. 2,942 Crore in Rs. 649 Crore in FY18 Rs. 364 Crore in FY18 Rs. 37.3/share in FY18 recording a recording a CAGR recording a CAGR FY18 recording a CAGR growth of 7% growth of 9% in last growth of 26% in last CAGR growth of 26% in last 5 years 5 y
Slide 21: Core values at forefront..
Core values at forefront.. Respect Trust Ownership Integrated team Work Thoughtful and show Confidence in each Take Responsibilities of Each person to work regards for another others capabilities and own decisions and towards larger group person. intentions. actions. objectives. GHCL is an unique wo
Slide 22: Inclusive growth of stakeholders
Inclusive growth of stakeholders Implemented Pay for Performance and Pay for Behaviour. 7x growth in market capitalisation in last 4 Wide Allotment of ESOP’s till middle management. years. (Rs. 341 Cr. in FY 14 to Rs. 2584 Cr. in FY 18). 360 Core value propagation across organisation. Mult
Slide 23: Firm Institutional & HNI's Holding – 36.48%
Firm Institutional & HNI’s** Holding – 36.48% Institutional Holding – 31.61%, HNI’s**- 4.87% Non-Institutional Holding-44.65% 16.27% 11.63% 20.75% Foreign Portfolio Mutual Body Corporates Investors Funds 44.66% 18.87% Promoter & Promoter Group 23.90% 3.71% 4.87% Insurance Companies/ Others HNI’s** F
Slide 24: Inorganic Chemicals
GHCL Inorganic Chemicals Bb ‘ISE No HOOKS Suny oF nwo» > ; - Sa
Slide 25: Commanding a leadership in manufacturing of Soda Ash
Commanding a leadership in manufacturing of Soda Ash +95% 9.75L MT Margin leadership +30%* Soda ash capacity; Captive sources of EBITDA Margins; Capacity utilization; 25% market share of raw material consistent high Highest in industry domestic demand margins Captive sources of raw materials Capti
Slide 26: Soda Ash Key Differentiators
Key Differentiators Slated to be single largest Soda ash plant in India by 2019 Expertise and Specialisation of 30 years Best in class productivity of +95% Strategic control over key raw materials Soda Soda Ash B2B to B2C with supply chain existence Ash Innovated from coke to briquette for cost opti
Slide 27: Consistent and Sustainable capacity additions to spur growth
Consistent and Sustainable capacity additions to spur growth 1.25 Lacs Brownfield SA – By FY19 Next phase of Capex expansion ( Phase-II ) to be completed by March 2019. Brownfield expansion of 1.25 Lakh MT. Steady capacity additions o o Estimated capex outlay Rs. 300 Crores (24K/MT). 11.5 12.0 11.
Slide 28: Global outlook on the soda ash industry
Global outlook on the soda ash industry GLOBAL SIZE: CAPACITY-68 MMT, PRODUCTION-59 MMT EUROPE CAPACITY: 14.5 MMT PRODUCTION: 12.0 MMT Global o Continues to be strong due to Lower availability of Chinese product. CHINA o European market is reported to be CAPACITY: 31.0 MMT growing and continues to s
Slide 29: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share.* (up by 1%) Domestic Demand Concentration. Import, West, 23% Tata Chem, 15% 20% North, 29% Others, South, 5% 19% GHCL, Nirma, 25% East, Gujarat, 27% 9% 28% * Based on External demand (Source : IMA) Domestic Demand & growth trend (CAGR Grow
Slide 30: GHCL's Dense Soda Ash used in glass bangles
WX 5 GHCL’s Dense Soda Ash is an important SS Se ~~. “2 industrial chemical used in the manufacturing ~~ Se of colourful glass bangles. x
Slide 31: Every cloth tells a story...
Every cloth tells a story... And we want to be the part of that story... Our Soda Ash is used in soaps and detergents to improve their cleaning properties.
Slide 32: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Doubled capacity from 30,000 to 60,000 MT in December 2017, Our market share will accordingly go up from current market share of 13% Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire
Slide 33: Inorganic Chemicals – Consumer Products
Inorganic Chemicals – Consumer Products Premium edible Salt Manufacturer in South India Expanding product portfolio i.e. Salt, Honey, Spices and Powder Spices under the brand i-FLO. Ventured into the Premium Honey Category by pioneering the entry of Jujube Honey Under powdered spices categor
Slide 34: Home Textile Segment
Home Textile Segment 34
Slide 35: Complete Integration improving the efficiency
Complete Integration improving the efficiency Spindle capacity close to double of home textile requirement giving Presence across value chain an opportunity to benefit from expansion of sheeting capacity o Spinning unit located near Madurai in Tamil Nadu Bed Sheets & Sold in o Yarn ranging from 16
Slide 36: Less than a tenth of all plastic produced globally is recycled
Less than a tenth of all plastic produced globally is recycled. A vast majority of the rest is dumped in landfills and in the oceans. Small plastic pieces of less than 5 mm size or micro plastics, are major ocean pollutants. They are ingested by aquatic micro organisms which then get into food chain
Slide 37: SPIN. WIN CIRKULARITY
SPIN. WIN CIRKULARITY Upeyeled as 0 result of the gouse of Combe Noll, a wasted byeproduct of the NATURLIG Ore ed | NEFERTITI Lehility oe ie ot feduces the consumption of waler by eroruLLecriovens, ens toLLectionens ‘round 8300 gallons per set 100% ORGANIC COTTON . a is vs a. ‘© S0% COTTON, 35% LYOC
Slide 38: Reinventing with REKOOP
Reinventing with Bottle Bed sheets Flake DNA Tags Yarn Fibre Patented technology developed in Fibre to be Manufactured and Manufactured and Sold by GHCL under association with Applied DNA supplied by Reliance Industries REKOOP brand Sciences(ADNAS) & GHCL. 38
Slide 39: Awards & Recognitions
Awards & Recognitions Referred as Great Place to Awarded trio of Golden work in two consecutive Peacock awards for Corporate years of participation Governance, Corporate social Improved Ranking to 67 responsibility and National from 99 in last year. Quality Amongst top 25 ranking for manufacturing i
Slide 40: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company has established itself as a well-diversified group with an ascertained Contact Us: footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 41: Thank You