Ghcl Limited · NSE:GHCL
Ghcl — H1 FY2021 Earnings Presentation
44 slides from Ghcl's earnings presentation, October 2020
Slide 1: GHCL Limited Q2 & H1 FY21 Investor Update
GHCL LIMITED Q2 & H1 FY21 Investor Update October 2020 DRIVING EXCELLENCE
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 3: Table of Content
Table of Content Quarterly Company Inorganic Chemicals Textiles Update Overview Segment Segment 4 17 25 36 3
Slide 4: Quarterly Update
Quarterly Update 4
Slide 5: Management Commentary
Management Commentary Commenting on the Q2 & H1 FY21 performance, Mr. R. S. Jalan, MD said: “COVID-19 pandemic continues to impact people and the global macroeconomic environment remain volatile. The world is now facing resurgence in reported cases. In India, since lockdown have been eased, economic
Slide 6: Business Update on COVID-19 Pandemic
Business Update on COVID-19 Pandemic Soda Ash Textile GHCL Sequential improvement in Significant improvement in Dedicated cost initiatives and capacity utilization and end Textile business other developments user industry ~50% ~86% Pent-up demand observed in Home Textile business due to people stayi
Slide 7: Demand momentum in key end-user segments – Soda Ash
Demand momentum in key end-user segments – Soda Ash Demand Dynamics Post COVID-19 Requirement Detergents and soaps Detergent industry is least impacted, as hygiene products are listed as typically consume ~40% of essential commodities by GOI Soda Ash production Demand from detergent segment re
Slide 8: Demand momentum in key end-user segments – Textile
Demand momentum in key end-user segments – Textile Demand Dynamics Post COVID-19 Requirement Indian manufacturers are currently operating at almost full capacity utilization with a very strong order flow due to huge pent-up demand: Home Textiles o In US and EU, businesses have extended WFH for rem
Slide 9: Performance Highlights – Q2 FY21
Performance Highlights – Q2 FY21 Revenue EBITDA PBT PAT Cash Profit ` 779 crore ` 162 crore ` 106 crore ` 78 crore ` 111 crore Q-o-Q 77% 93% 359% 361% 123% Y-o-Y 6% 20% 25% 36% 28% 9
Slide 10: Performance Highlights – H1 FY21
Performance Highlights – H1 FY21 Y-o-Y Revenue EBITDA PBT PAT Cash Profit ` 1,220 crore ` 246 crore ` 129 crore ` 95 crore ` 161 crore 28% 42% 57% 58% 44% Segment-wise Revenue break-up* Domestic : Exports Revenue break-up* Exports, Textiles, 18% 33% Inorganic Chemicals, 67% Domestic, 82% 10 *Based o
Slide 11: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q2 FY21 Q2 FY20 Y-o-Y Q1 FY21 Q-o-Q H1 FY21 H1 FY20 Y-o-Y Revenue 779 826 (6)% 440 77% 1,220 1,705 (28)% Operating Expenses 617 623 (1)% 356 73% 973 1,280 (24)% EBITDA 162 203 (20)% 84 93% 246 425 (42)% EBITDA Margin 20.8% 24.6% (3.8)% 19.1% 1.7% 20
Slide 12: Q2 FY21 Segment Highlights – Inorganic Chemicals
Q2 FY21 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Inorganic Chemicals – Quarterly Trend Particulars Q2 FY21 Q2 FY20 Y-o-Y Q1 FY21 Q-o-Q Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue 482 542 (11)% 346 39% 542 549 519 33.0% 482 EBITDA 119 179 (34)% 80 49% 28.6% 31.2% 346 23.0% 24.6%
Slide 13: Q2 FY21 Segment Highlights – Textiles
Q2 FY21 Segment Highlights – Textiles (Rs. In Crore) Textile – Quarterly Trend Particulars Q2 FY21 Q2 FY20 Y-o-Y Q1 FY21 Q-o-Q Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue 297 283 5% 94 215% 283 285 297 14.7% EBITDA 44 24 80 % 4 870% 214 8.6% 4.8% 7.0% EBITDA % 14.7% 8.6% 6.1% 4.8% 9.9% 94 44 2
Slide 14: Balance Sheet
Balance Sheet (Rs. In Crore) Particulars Sep-2020 Mar-2020 Non Current Assets (A) 2,893 2,925 Current Assets (B) 1,096 1,276 Current Liabilities (C) 440 502 Net Working Capital (D)=(B)-(C) 656 774 Capital Employed (A)+ (D) 3,549 3,699 Net Worth (E) 2,282 2,186 Other Non Current Liabilities (F) 273 2
Slide 15: Efficient Capital Allocation (H1 FY21) & Key Ratios
Efficient Capital Allocation (H1 FY21) & Key Ratios Rs. 34 crore Rs. 118 crore CAPEX* OPREATIONS Rs. 161 cr. Inorganic Chemicals Decrease in Working Capital Generated Cash Profits Rs. 34 crore Rs. 139 crore (Net of Tax) Rs. 245 crore Increase in current investment (Reduction in Gross Debt) Rs. 21 cr
Slide 16: Demerger of the Textiles business of GHCL
Demerger of the Textiles business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Textiles business of GHCL will be demerged into a Focused separate Company growth Shareholders of GHCL will be allotted shares in the new company in the swap ratio of 1:1, one share of
Slide 17: Company Overview
te Se YOON areas . TAN Sag : os “=>. 1 bags
Slide 18: GHCL – An Introduction
GHCL – An Introduction Best-in-class •Operations management •CAPEX planning and execution •Financial management 2nd Largest manufacturer of Soda Ash in India, with 25% market share •Focused management approach 11.00 45 1.85 •Strategy led by professional management team Lac MT MN MT Textile Lac Soda
Slide 19: GHCL Overview
GHCL Overview 3 decades of Indian Leading soda ash player in Manufacturing experience India Professionally managed Listed on 2 premier stock workforce exchanges of India Focus to emerge as a Business Philosophy of sustainable business Inclusive growth of all organization stakeholders 19
Slide 20: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA 1988-2000 which was further increased to 5.25 Lakh MTPA Commenced Edible Salt Production and Launched ‘Sapan’ Soda Ash capacity increased to 8.5 Lacs MTPA salt Entered Spinning business with 65K spindles subsequentl
Slide 21: Spearheaded by Pre-eminent Professionals
Spearheaded by Pre-eminent Professionals R S Jalan Neelabh Dalmia NN Radia M. Sivabalasubramanian Managing Director Executive Director , Textiles President & COO, Soda Ash CEO, Spinning Unique leadership style with endeared managerial abilities drives all businesses alike Qualified Chartered Account
Slide 22: Experienced and accomplished Board of Directors
Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia (Chairman) (Vice Chairman) Mr. R.S. Jalan Mr. Arun Kumar Jain Dr. Manoj Vaish (Managing Director) (Ex-IRS) (Independent Director) (Independent Director) Mr. Raman Chopra Justice (Rtd.) Ravindra Singh Mrs. Vijaylaxmi
Slide 23: Core Values at forefront
Core Values at forefront GHCL is an unique work place which is dotted with its Core Values, defining its culture. Every employee in the Company is expected to imbibe its Core Values and interact within the business ecosystem with all its stakeholders accordingly. Here we have established the l
Slide 24: Strong Institutional & HNI Holding – 41.14%
Strong Institutional & HNI Holding – 41.14% Institutions & HNI’s Institutional Holding – 35.43%, HNI’s- 5.71% Insurance Companies / Financial HNI’s Foreign Portfolio Investors Mutual Funds Institutions / Banks 5.71% 3.56% 14.32% 41.14% 17.55% Promoters & Non Institutions Promoters Non Institutional
Slide 25: Inorganic Chemicals
Inorganic Chemicals 25
Slide 26: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Key Differentiators Limestone Single largest (25% captive) Soda ash plant and Salt (35% in India at a captive) mine single location located within 40 km distance Innovated from coke to briquette coke Best in class +90% 11.00L MT +30%* for cost producti
Slide 27: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry Soda Ash Market Outlook GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT World Soda Ash markets continue to be somewhat disrupted due to restrictions imposed around the world with fears of Covid-19 resurgence. However, in the last few EUROPE weeks, there have
Slide 28: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Market Share Domestic Demand Concentration 25% 27% 23% 29% 20% 28% 19% 15% 5% 9% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for FY19 (Source : IMA) Domestic Demand & Growth Trend (CAGR Growth of 5% during
Slide 29: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Scenerio Historically, no mismatches in Demand supply as supply always followed demand globally. Visibility of earnings Soda Ash Business has consistently performed well with steady realizations and margins. Excellence in
Slide 30: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 30
Slide 31: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Specialization and experience in manufacturing of around a decade Doubled capacity from 30,000 to 60,000 MT in December 2017 Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire Extinguishers,
Slide 32: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase could be a game changer Animal Feed Chemicals 32
Slide 33: Marquee Clients
as GUJARAT 2 BOROSIL Rar LIMITED SAINT-GOBAIN 6 Piramal Glass HINDUSTAN ZINC
Slide 34: 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 35: Textiles Segment
Textiles Segment
Slide 36: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Sustainability Traceability Giving Back to Innovation Society 36
Slide 37: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain 1.85 Lacs Spindles, 3,320 Rotors, 5,760 TFO Drums, 5 Air Jet Spinning Machines 12 Mn Meters 45 Mn Meters 30 Mn Meters Bed Sheets & Spinning Weaving Fabric Processing Cut & Sew Made-up’s Also sold in Sold in Market Market Spi
Slide 38: Marquee Clients
Sainsbury's amazoncom — sl, “. Walmart.com
Slide 39: Reinventing the Bed Sheet (REKOOP)
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL 39
Slide 40: 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 41: Focus on driving profitable growth
Focus on driving profitable growth Soda Consumer Ash Products Textiles Modular, phase-wise capex Expanding product to give sustained volume portfolio and growth geographic footprint remains the key Emphasis on high efficiency objective in operations Continuing to drive performance Cash flo
Slide 42: Awards & Recognitions
Awards & Recognitions Referred as Great Place to 4 Notch Upgrades in last 4 years Mine Award SIMA Technofacts Award work in four consecutive GHCL Limestones Mines received GHCL Yarn division received SIMA years of participation Mine award under A2 category at Technofacts Award at the 13th CEO 26th M
Slide 43: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The Company has Contact Us: established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segments. In chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Car
Slide 44: Thank You
Thank You 44