Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q1 FY2024 Earnings Presentation
40 slides from Meghmani Organics's earnings presentation, Aug 14, 2023
Slide 1: Exchange filing cover letter for Q1 FY2024 investor presentation
Ref: MOL/2023-24/43 August 14, 2023 To, To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Bandra-Kurla Complex, Floor- 25, P J Tower, Bandra (East) Dalal Street, Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 Dear Sir, Sub: - Investor Presentation on Financia
Slide 2: Meghmani Organics Limited Investor Presentation - August 2023
Meghmani Organics Limited (MOL) (Erstwhile known as Meghmani Organochem Limited) Investor Presentation - August 2023
Slide 3: Content
CONTENT Remarkable scale & value in Agrochemicals; an 03 industry sensitive towards Agriculture Evolution of Meghmani Organics over the years as a 09 Chemical Behemoth 16 Quarterly Highlights 24 Financial Performance 29 Leadership and Management 35 Investment Rationale
Slide 4: Remarkable scale & value in Agrochemicals
Remarkable scale & value in Agrochemicals; an industry sensitive towards Agriculture
Slide 5: Agro Chemical Division Overview: Key Milestones
Agro Chemical Division Overview: Key Milestones R&D Center Agrochemical plant Commissioned new Formulation plant Capacity (MTPA) 7,800 7,200 Plant Location Sanand Ankleshwar Dahej 1995 2003 2006 2016 2021 2021 GLP Accredited Lab Doubling 2,4-D Capex at the existing and expansion of R&D Capacity Form
Slide 6: Agro Chemical: Business Model & Performance
Agro Chemical: Business Model & Performance Revenue from Operations (₹ Crore) & Exports % Capacity (MTPA) & Utilization (%) 89% 87 % 2,100 79 % 79 % 1,940 Capacity Utilization 74 % 1,738 76% 78% 75% 1,600 66% 80% 56% 1,045 25% CAGR 60% 1,100 973 791 FY19 to 40% FY23 600 20% 28,260 32,280 36,825 51,0
Slide 7: Agro Chemicals: MOL's Positioning in the Industry Landscape
Agro Chemicals: MOL's Positioning in the Industry Landscape Leading manufacturer of Pesticides with products across entire value chain Capability to develop newer molecules at competitive cost backed up by in-house product development efforts Integrated Agro Chemical manufacturer Well-recognized For
Slide 8: Agro Chemicals: Investing in the Next Phase of Growth
Agro Chemicals: Investing in the Next Phase of Growth Multi purpose product (MPP) plant got commissioned in Q3FY23 Total Capex of ₹ 390 crore • Installed capacity of 5,000 MTPA. • The plant is located in Dahej as part of backward integration • Will manufacture high value new-age insecticides. • Majo
Slide 9: Agro Chemicals: Industry Overview
Agro Chemicals: Industry Overview Global Crop Protection Market Region Wise Global Crop Protection Market • Global market is expected to garner revenue of ~USD 250-270 Bn by 2025 with a CAGR of 5.5-6%. FY20-FY25. 12.8% 39.6% • Major chemicals used in agriculture to regulate plant growth are syntheti
Slide 10: Evolution of Meghmani Organics as a Chemical Behemoth
Evolution of Meghmani Organics over the years as a Chemical Behemoth
Slide 11: Pigment Division Overview: Key Milestones
Pigment Division Overview: Key Milestones 1986 1996 2013 2021 Incorporated as a Pigment Diversification by setting up Setup Greenfield Pigment plant Acquisition of Kilburn Chemicals; foray into Manufacturer Greenfield Plant exclusively for Exports Titanium Dioxide (TiO2) Products Green & AZO Pigment
Slide 12: Pigments: Business Model & Performance
Pigments: Business Model & Performance Revenue from Operations (₹ Crore) & *Exports % Capacity (MTPA) & Utilization (%) 1,000 900 82 % 83% 81 % 78 % 800 77 % 756 Capacity Utilization 641 88% 700 605 617 77% 78% 76% 578 600 80% 60% 500 60% 400 40% 300 200 20% 32,940 33,180 33,180 33,180 33,180 100 0%
Slide 13: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Foray into Titanium Dioxide (TiO2) / White Pigments By Acquiring Kilburn Chemicals Limited (KCL) for ₹ 132 Crore in December 2021 TiO2 Features It is the most widely used white pigment because of its brightness and its strong UV light absorbing capabilitie
Slide 14: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Total Capex ₹ 600 crore* Installed Capacity 16,500 MTPA Phase I Commission in Q4FY23 ₹ 275 crore Funding: 70:30 mix As on 31 July 2023, approx. Installed Capacity ₹ 219 crore has been utilized 16,500 MTPA Phase II To be considered after stabilization of Ph
Slide 15: Pigments: Rationale for Foraying into TiO2
Pigments: Rationale for Foraying into TiO2 HIGH ENTRY BARRIER Capital intensive project. IMPORT SUBSTITUTE Require expertise of handling Meghmani’s foray into TiO2 is to of bulk volume of Ilmenite & promote import substitution Sulphuric acid. thereby contributing to the government’s ‘Make in I
Slide 16: Industry Overview Of TiO2
Industry Overview Of TiO2 Global TiO2 Players Indian TiO2 Manufacturers 29% 50% 22% 17% 13% 22% 22% 10% 8% 6% Market Share (%) Market Share (%) Chemours Tronox, USA Lomon Billions, Venator Kronos, USA Others Kerala Minerals & Travancore Titanium V.V.Titanium Kolmark Chemicals, (Dupont) USA China Mat
Slide 17: Quarterly Highlights
Quarterly Highlights
Slide 18: Q1 FY24 Results: Key Highlights (Standalone)
Q1 FY24 Results: Key Highlights (Standalone) During Q1 FY24, the Company revenues stood at ₹ 422 Crore, impacted by prolonged challenging global macro- economic environment, demand slowdown and decline in prices across industry. EBITDA stood at ₹ (15) Crore during the quarter owning to higher cost
Slide 19: Q1 FY24 Results: Key Highlights (Standalone)
Q1 FY24 Results: Key Highlights (Standalone) Capex Update Pigment : The Company’s Titanium Dioxide (TiO2) plant has been commissioned and is under trial production. The capacity ramp up will be done gradually. Commissioning of Co-gen Power Plant expected by Q3 FY24. Phase II capacity enhancement c
Slide 20: Q1 FY24 Results: Key Highlights (Standalone)
Q1 FY24 Results: Key Highlights (Standalone) Revenues & Gross Margin EBITDA ₹ in Crore 783 134 422 (15) 44.0% 27.6% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Profit before tax Profit after tax 146 114 (34) (25) Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Meghmani Organics Limited 19
Slide 21: Q1 FY24 Results: Agrochemicals
Q1 FY24 Results: Agrochemicals Production (MT) & Utilisation (%) Net Revenue & Exports* ₹ in Crore 563 11,525 8,353 300 88% 61% 89% 88% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 EBITDA & EBITDA Margin (%) 126 0.5 22.3% 0.2% Q1 FY23 Q1 FY24 Meghmani Organics Limited 20
Slide 22: Q1 FY24 Results: Pigment
Q1 FY24 Results: Pigment Production (MT) & Utilisation (%) Net Revenue & Exports* ₹ in Crore 669 220 121 343 81% 42% 84% 79% Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 EBITDA & EBITDA Margin (%) 25 (8) 11.4% (7.0%) Q1 FY23 Q1 FY24 Meghmani Organics Limited 21
Slide 23: P&L Statement
P&L Statement Particulars (₹ in Crore) Q1 FY24 Q1 FY23 YoY% FY23 FY22 YoY% Revenue from Operations 422 783 (46.2%) 2,557 2,494 2.5% COGS 305 439 (30.4%) 1,515 1,454 4.2% Gross Profit 116 345 (66.3%) 1,042 1,040 0.1% Gross Margins % 27.6% 44.0% 40.7% 41.7% Employee Expenses 26 39 (32.8%) 121 117 3.1%
Slide 24: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Mar 23 Mar 22 Particulars (₹ in Crore) Mar 23 Mar 22 Equity & Liabilities Assets Share Capital 25 25 Property, Plant & Equipment 997 732 Reserves & Surplus 1,631 1,415 Capital WIP 135 179 Shareholder's Funds 1,656 1,440 Intangible Assets 12 11 Financial Assets
Slide 25: Financial Performance
Financial Performance
Slide 26: Standalone Financial Performance
Standalone Financial Performance ₹ in Crore Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 16% * CAGR 12% * CAGR 10% 16.5% 17.2% 12.3% 15.2% 12.0% 11.9% 11.4% 42.5% 44.7% 14.5% 14.2% 41.7% 40.7% 9.8% 38.0% 308 379 364 2,494 2,557 280 250 232 236 192 185 1,625 1,623 169 1,410
Slide 27: Focus on Creating Shareholders Wealth
Focus on Creating Shareholders Wealth CAPITAL EMPLOYED (IN ₹ Crore) & RoCE (%) NET WORTH (IN ₹ Crore) & RoE (%) 4,00 0 40. 0% 3,00 0 40. 0% 3,50 0 16.3% 15.6% 17.1% 19.0% 22.0% 21.1% 23.6% 13.8% 20. 0% 17.2% 16.2% 20. 0% 2,50 0 3,00 0 0.0 % 0.0 % 2,50 0 2,00 0 -20.0% -20.0% 2,00 0 1,50 0 -40.0% -40.
Slide 28: Comfortable Debt Position & Prudent Working Capital Cycle
Comfortable Debt Position & Prudent Working Capital Cycle 0.42 0.39 0.27 0.22 0.34 112 115 113 94 1,656 76 1,440 1,167 838 991 327 494 693 85 77 50 92 74 51 92 81 60 69 73 67 77 89 72 264 262 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Debt Networth Debt-Equity (x) Receivable Days Inventory Da
Slide 29: To Summarize the Financial Performance
To Summarize the Financial Performance 1 4 EBDITA above industry average in both AgroChem and Pigments Consistently paying dividend. 2 5 Consistently Improving debt to ROCE above 13.5%+ for last 3 years. equity. D/E of less than 0.5 in past Endeavour is to improve RoCE. 3 years. 3 6 Consistent finan
Slide 30: Leadership and Management
Leadership and Management
Slide 31: Succession and Management Transition
Succession and Management Transition Our announcement is the result of a deliberate and thoughtful succession planning process. Since past few years, the second generation were heading different business operations and now the management has decided that in order to manage the affairs of the Company
Slide 32: Leadership and Management: Founders
Leadership and Management : Founders Mr. Jayanti Patel Mr. Ashish Soparkar • 47 yrs of experience • 46 yrs of experience • Overseas international marketing • Overseas corporate affairs & finance • B.E (Chemical) • B.E (Chemical Mr. Natwarlal Patel Mr. Ramesh Patel • 45 yrs of experience • 44 yrs of
Slide 33: Leadership and Management: New Board Members
Leadership and Management : New Board Members Mr. Ankit Patel Mr. Karana Patel Chairman & Managing Director Executive Director • More than 12 yrs of experience • More than 12 yrs of experience • M.S. (Engg Management) from Australia • Heads Operations, Projects & procurement & MBA from Singapore • D
Slide 34: Leadership and Management: Independent Board
Leadership and Management : Independent Board Sri Manubhai K. Patel Prof. (Dr.) Ganapati Yadav CA with 37+ years of experience in Forex, Treasury and Credit Vice Chancellor of the Institute of Chemical Technology. With numerous Management. honours and distinctions for his contributions to green chem
Slide 35: Group's Core Values and The Corporate Vision
Group’s Core Values Integrity Environment, Credibility Law abiding Being Human The Company will make The Company respects The Company abides by The Company will maintain Health and Safety efforts towards building a and ensures compliances the principle of humanity complete honesty and The Company is
Slide 36: Investment Rationale
Investment Rationale
Slide 37: Why Meghmani Organics
Why Meghmani Organics Understands Chemicals since 1986, Established Market Position along with management expertise across Pigments, Agro Chemicals and Basic Chemicals • largest producer of copper phthalocyanine (CPC) blue and is among the top 3 pigment blue players globally • largest, Integrated ma
Slide 38: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- June 2023 (IN %) NSE Ticker MOL BSE Ticker MOL | 543331 Share Price (₹)^ 89.4 Market Cap (₹ Crore)^ 2,274 PROMOTER 49.50% % Free Float^ 50.50 FIIs 1.50% Free float market cap (₹ Crore)^ 1,148 DIIs 0.47% Shares outstanding^ 25.4 Crores Public 48.53% 3M AD
Slide 39: Safe Harbor
Safe Harbor This presentation has been prepared by Meghmani Organics Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information
Slide 40: Meghmani Organics Ltd Investor Relations
MEGHMANI ORGANICS LTD (CIN: L24299GJ2019PLC110321) REGISTERED & CORPORATE OFFICE: ‘Meghmani House’, Behind Safal Profitaire, Prahlad Nagar, Ahmedabad, Gujarat, 380015 Tel: +91 79 71761000 www.meghmani.com INVESTOR RELATIONS G.S.Chahal | CHIEF FINANCIAL OFFICER E: ir@meghmani.com