Krishana Phoschem Ltd. · NSE:KRISHANA
Krishana Phoschem — Q3 FY21 Earnings Presentation
29 slides from Krishana Phoschem's earnings presentation, Feb 16, 2021
Slide 1: Regulation 30 cover letter to NSE
Date: 16th February 2021 National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex, Bandra (East) Mumbai-400 051 Company Code: KRISHANA Dear Sir/Madam, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulat
Slide 2: Regulation 30 cover letter (company letterhead)
GSTIN: 23AACCK4616K4ZK CIN No. L24124RJ2004PLC019288 www.krishnaphoschem.com OGI KRISHANA PHOSCHEM LTD. accounts@krishnaphoschem.com OSTWAL (An IsO 9001:2015 Certified Company) Date: 16th February 2021 National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex, Bandra (East) Mumbai
Slide 3: Embarking on Continuous Journey of Transformation
Krishana Phoschem Limited (A Unit of Ostwal Group of Industries) EMBARKING ON CONTINUOUS JOURNEY OF TRANSFORMATION Earnings Presentation Q3 FY 21 February 16, 2021 www.krishnaphoschem.com
Slide 4: Table of Contents
Table of Contents Industry Overview Growth and Opportunities About us Financials Highlights Krishana Phoschem Limited : Earnings www.krishnaphoschem.com 02 Presentation for Q3 F.Y. 2020-21
Slide 5: Industry Overview
INDUSTRY OVERVIEW Krishana Phoschem Limited : Earnings od Nisdiriatiqaphesehienticom iB Presentation for Q3 F.Y. 2020-21
Slide 6: Indian Agriculture: The Global Leader
INDIAN AGRICULTURE: THE GLOBAL LEADER The Role of Agriculture In the World Economy Agriculture contributes around Agriculture as Share of Total GDP (%) 16.5% of India’s GDP Ranks #2 in arable land 2nd largest producer of rice, wheat, sugar- cane, groundnut, vegetables, fruit & cotton 14th largest ag
Slide 7: Fertilizers Replace the Nutrients That Crops Remove from the Soil
FERTILIZERS REPLACE THE NUTRIENTS THAT CROPS REMOVE FROM THE SOIL Crop yields and agricultural productivity Consumption ratio by would be significantly reduced without the fertilizer type addition of fertilizers Nitrogen [N] Phosphorous [P] 5% 5% Pottasium [K] Others 25% 65% N Urea, AS, CAN P SSP, TS
Slide 8: India Is the 3rd Largest Producer and Consumer of Fertilizer
INDIA IS THE 3RD LARGEST PRODUCER AND CONSUMER OF FERTILIZER IN THE WORLD per hectare consumption of chemical fertilizer growing 133.12 130.66 127.45 127.88 124.41 14-15 15-16 16-17 17-18 18-19 …but N P K usage ratio is heavily tilted towards N Ideal ratio current usage ratio 4:2:1 7: 2.7 : 1 Ostwal
Slide 9: Fertilizer Market Statistics
FERTILIZER MARKET STATISTICS.. Continued growth in fertilizer demand and consumption Substantial part of consumption is imported ‘ 000 MT ‘ 000 MT 8,588 10,532 26% 9,901 9,604 4,717 41% 16,852 16,346 18,147 17,927 13,337 3,167 100% 4,591 2,648 15-16 16-17 17-18 18-19 N P K Prodn Import Prodn Import
Slide 10: Growth & Opportunities in Fertilizer Industry
GROWTH & OPPORTUNITIES Lore m ip IN FERTILIZER INDUSTRY 08
Slide 11: Huge Gap in Crop Production and Productivity
HUGE GAP IN CROP PRODUCTION AND PRODUCTIVITY 01 Food grain production growing ~3.7% CAGR… 02 …but at a significantly low productivity rate Yield (tonnes per hectare) 11.084 291.95 285.21 8.415 279.5 275.68 6.917 6.11 6.21 5.618 5.755 5.481 4.602 3.848 3.115 3.213 3.531 3.114 252.23 2.281 1.542 1.721
Slide 12: Compelling Reasons for Growth in Fertilizer Sector
COMPELLING REASONS FOR GROWTH IN FERTILIZER SECTOR Shift towards consumption of Shrinking premium food like fruits & dairy vs. farmland grains Urban population increased to ~35% and expected to further increase Increasing NOURISH SOIL Rising Rising population will increase crop demand urbanisation T
Slide 13: Backed by Favourable Policies and Reform Measures
...BACKED BY FAVOURABLE POLICIES AND REFORM MEASURES AWARENESS RURAL CROP CONTRACT CAMPS WORKSHOPS INSURANCE FARMING PM Kisan – supplement of 6k Thrust towards domestic Allowed crop sale prior to per annum manufacturing production Digital India initiatives introducing Transition from regulated prici
Slide 14: About Us
ABOUT US Krishana Phoschem Limited : Earnings www.krishnaphoschem.com 12 Presentation for Q3 F.Y. 2020-21
Slide 15: Product range: fertilizers, chemicals, minerals
Zincated SSP Zincated (Granular) Boronated SSP (Granular) SSP* (Powder) SSP* (Granular) Phosphatic Zincated Rich Organic SSP Manure (Powder) Chemicals Our range of chemical products includes: Sulphuric Acid, H-Acid, Liquid SO3, Oleum and Chloro Sulphonic Acid Mineral Beneficiated Rock Phosphate (BRP
Slide 16: We Are India's 4th Largest SSP Manufacturer
WE ARE INDIA’S 4TH LARGEST SSP MANUFACTURER 16% 31.5% 1,866 Mn BUILT STRONG CAPACITY WITH BACKWARD INTEGRATION CAGR CAGR Mkt Cap Annual Capacity (in MT) 1,630 Mn 353 Mn 1,248 Mn (F.Y. 2019-20) (F.Y. 2019-20) (as on March 31, 2020) 2,00,000 We are the only producer of SSp Having Backward Forward Inte
Slide 17: Strong Financial Growth
STRONG FINANCIAL GROWTH Consecutive years of Consistent debt reduction EBITDA and PAT growth 353 391 289 338 262 204 201 166 INR in Mn 156 151 118 108 138 160 135 33 35 14 LTM 2016 2017 2018 2019 2020 (Dec.’20) 2015 2016 2017 2018 2019 2020 EBITDA PAT Healthy 16.0% CAGR growth in revenue Industry le
Slide 18: Benefiting from Backward Integration of Key Raw Material
...BENEFITING FROM BACKWARD INTEGRATION OF KEY RAW MATERIAL Sulphuric Acid In-house production 01 02 03 Low Grade Beneficiation Rock process Phosphate SSP Group Co. has Long term We are the only producer of SSP having agreement with suppliers Backward Forward integration Krishana Phoschem Limited : E
Slide 19: Segment Wise Key Numbers
SEGMENT WISE KEY NUMBERS Segment revenue Capacity & utilization 1020 Segment Revenue Capacity Utilization* % 800 INR in Mn 727 610 Fertiliser 1,020 120,000 102,381 85% 543 415 Chemicals 610 99,000 64,015 65% 2018 2019 2020 Fertilizers Chemicals Strong growth in Chemical segment Optimum capacity util
Slide 20: Journey So Far
JOURNEY SO FAR 2018 Single Customer to Distribution …another wave of 2018 backward integration network transformation to Sulphuric 2017 & allied acids IPO oversubscribed 35 times Expanding to 2016 Diversified to Chemical DAP & NPK business 2013 Expanded to Granulated integrated with 2012 Entered into
Slide 21: State of Art Manufacturing Facility
STATE OF ART MANUFACTURING FACILITY Three Manufacturing facilities at AKVN Industrial Area, Meghnagar, Dist. Jhabua, Madhya Pradesh Krishana Phoschem Limited : Earnings www.krishnaphoschem.com 19 Presentation for Q3 F.Y. 2020-21
Slide 22: Our Promoters
OUR PROMOTERS Mr. M.K. Ostwal, aged about 64 years one of the pioneers of present SSP technology with 42 years experience in the sector. A Commerce graduate and founder of Ostwal Group of Industries is guiding force in growth and development of the Group. Mr. Pankaj Ostwal is a young and dynamic Cha
Slide 23: Key Financials Matrix
KEY FINANCIALS MATRIX INR in Millions Particulars FY 20 FY 19 FY 18 FY 17 FY 16 Revenue 1,630 1,527 958 796 886 EBITDA 353 338 201 166 118 Depreciation 117 112 80 62 56 Finance Cost 28 34 58 42 48 Other Income - 3 9 13 16 PBT 208 191 64 61 30 PAT 138 135 35 33 14 Revenue EBITDA PAT 16.0% CAGR 31.5%
Slide 24: Q3 FY21: Financial Highlights
Q3 FY 21 : FINANCIAL HIGHLIGHTS Krishana Phoschem Limited : Earnings www.krishnaphoschem.com 22 Presentation for Q3 F.Y. 2020-21
Slide 25: Q3 FY21: Financial Highlights
Q3 FY 21 : FINANCIAL HIGHLIGHTS PAT for the period stood at Rs. 63.10 Mn, up by 9.43% as against Rs. 57.66 Mn in Q3FY 20 EBITDA for the period stood at Rs. 125.52 Mn, up 20.15% as compared to Q3FY20 Overall Revenue for Q3FY21 stood at Rs. 446.23 Mn, slightly down by 3.96% as compared to Q3FY20 PAT M
Slide 26: Analysis of Financial Results Q3 FY21
ANALYSIS OF FINANCIAL RESULTS Q3 FY21 INCOME EBITDA EBITDA Margin 446.23 Mn 125.52 Mn 28.13 % LOWER BY UP BY UP BY 3.96% Y-o-Y 20.15% Y-o-Y 25.11% Y-o-Y PAT PAT Margin EPS 63.1 Mn 14.14 % 2.53 INCREASED BY UP BY HIGHER BY 9.43% Y-o-Y 70.52% Y-o-Y 9.05% Y-o-Y Krishana Phoschem Limited : Earnings Pres
Slide 27: Analysis of Financial Results Q3 FY21
ANALYSIS OF FINANCIAL RESULTS Q3 FY21 Particulars Q3FY21 Q3 FY20 Y-o-Y Q2FY21 Q-o-Q Dec,31 Dec,31 Y-o-Y growth growth 2020 2019 Total Income 446.23 464.64 -3.96% 514.89 -13.34% 1369.93 1384.49 -1.05 EBITDA 125.52 104.47 20.15% 119.15 5.35% 318.67 280.84 13.47 EBITDA Margin (% 28.13% 22.48% - 23.14%
Slide 28: Statement of Profit & Loss for Q3 FY21
STATEMENT OF PROFIT & LOSS FOR Q3FY 21 (Rs. in Mn.) Quarter Ended Year Ended Particulars 31.12.2020 30.09.2020 31.12.2019 31.03.2020 Revenue from Operations 443.75 509.34 463.80 1,629.47 Other Income 2.48 5.56 0.84 0.40 Total Income (I+II) 446.23 514.89 464.64 1,629.87 Expenses Cost of Materials con
Slide 29: Disclaimer
“We believe that our journey of transformation is steadily evolving despite challenging business environment. We have come a long way in our strategic path and will continue marching towards a brighter future.” Disclaimer:- This presentation contains statements that contain “forward looking statemen