Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q2 FY25 Earnings Presentation
50 slides from Himadri Speciality Chemical's earnings presentation, Oct 16, 2024
Slide 1: Exchange filing cover letter
Ref. No: HSCL / Stock-Ex/2024-25/71 Date: 16/10/2024 E-mail: monika@himadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kurla Complex, Dalal Stree
Slide 2: Investor Presentation | October 2024
Investor Presentation | October 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 5: H1FY25 Financial Highlights
H1FY25 Financial Highlights … Add Text Here SALES VOLUMES RECORD EBITDA RECORD PAT IN DEBT FREE DISTINCTIVE ROCE IN H1FY25 IN H1FY25 H1FY25 COMPANY Sales Volumes Net positive cash EBITDA increased by PAT increased by 37% increased by 32% to balance of Rs. 255 31% (excl. investment 36% yoy to Rs. 389
Slide 6: Positive growth continues…
Positive growth continues… Sales Volumes (MT) Sales Volume (MT) Revenue (Rs. in Crs) +31.7% 2,64,340 2,78,232 2,11,242 +26.2% +13.0% 1,40,317 1,39,175 1,39,057 1,177 1,200 1,135 1,24,024 1,053 H1FY24 H2FY24 H1FY25 1,005 1,10,211 Revenue (Rs. in Crs) +19.4% 2,229 2,335 1,955 Q2FY24 Q3FY24 Q4FY24 Q1FY
Slide 7: …with jump in Profitability
…with jump in Profitability EBITDA (Rs. in Crs) EBITDA (Rs. in Crs) PAT (Rs. in Crs) +35.6% 389 345 287 +29.1% +33.3% 201 134 188 123 177 115 H1FY24 H2FY24 H1FY25 169 156 108 101 PAT (Rs. in Crs) +36.8% 258 222 189 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 H1FY24 H2FY24 H
Slide 8: Balance sheet continues to be robust
Balance sheet continues to be robust Total Borrowings (Rs. in Crs) Cash & Cash Equivalents (Rs. in Crs) Net Debt (Rs. in Crs) 836 742 583 719 636 596 578 600 315 200 341 263 136 -142 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 -255 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Net Cas
Slide 9: Clean technology & innovation
Opportunities in all the phases of journey continues… 1st Commercial plant Battery Recycling for LFP Cathode Active Clean technology & New Growth Wave Material in India innovation Off-highway Tyres Speciality More than Double Agrochemical Speciality Carbon Black Solutions Capacity LFP Cathode Active
Slide 10: Unfolding huge global opportunity for Liquid Coal Tar Pitch exports
Unfolding huge global opportunity for Liquid Coal Tar Pitch exports Commissioned high temperature Liquid Coal Tar Pitch terminal at Haldia port Successfully completed first export shipment of Liquid Coal Tar Pitch in October 24 This opens up large global Liquid Coal Tar Pitch export market 9
Slide 11: Updates on Capex and Acquisition
Updates on Capex and Acquisition Capex / Expansion Capex (Rs. in Crs) Current Status Capex for building the first 1,125 Progressing as planned and is commercial plant of 40,000 MTPA scheduled to be operational by of LFP Cathode Active Material Q3FY27 Expansion of new speciality carbon 220 Scheduled
Slide 12: Awards & Accolades
Awards & Accolades EXCEED Green Future Awards 2024 SA800 Certified Company DEI Crusader Award for High Reputation 2024 The Eastern India Leadership Awards 2024 11
Slide 13: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 14: Outcome of strengthening Balance Sheet
Outcome of strengthening Balance Sheet Rs. 25 Crs Rs. 1,780 Crs Rs. 10.86 Crs Rs. 300 Crs Fund based + Non fund Long term/short term Term Loan Commercial Paper based Unallocated Limits ICRA AA- (Stable) ICRA AA- (Stable)/ [ICRA]AA-(Stable)/ ICRA A1+ ICRA A1+ ICRA A1+ (ICRA double A minus; (ICRA A on
Slide 15: ESG-focused innovations
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 16: EcoVadis Rating: Silver Medal
EcoVadis Rating : Silver Medal Himadri Speciality Chemical Ltd has recently been awarded with EcoVadis Silver Medal. This recognition ranks Himadri in the top 23% of the highest-rated companies in the world amongst more than 100,000+ rated companies. EcoVadis is one of the world’s largest and most t
Slide 17: Direct Signatory of UNGC
Direct Signatory of UNGC (United Nation Global Compact) We've joined the United Nations Global Compact (UNGC) as a direct signatory. This marks a pivotal moment for us, as it demonstrates our alignment with global sustainability principles and our commitment to upholding ethical business practices o
Slide 18: Where Sustainability Meets Innovation
Where Sustainability Meets Innovation POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 17
Slide 19: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a More than 90% of the green, long-term EV and power requirement being renewable energy solution met by inhouse generated by providing critical raw clean and green power material Energy Conservation through Waste Heat Recover
Slide 20: Net Zero Roadmap
Net Zero Roadmap Research Adapt • Explore innovative methods for capturing • Implement new energy sources and and transforming carbon emissions. technology advancements. • Utilize upcoming technologies to capture • Integrate renewable energy solutions for and convert carbon dioxide into value- reduc
Slide 21: Net Zero Roadmap (Scope 1, 2 & 3)
Net Zero Roadmap (Scope 1, 2 & 3) Scope 3 – Baseline Year 2023 OUR NET ZERO To Scope 1 – Baseline Year 2021 (FY 21-22) AMBITION Scope 2 = 0, Baseline Year 2021(FY 21-22) Reduce Packaging Emission. Elimination of virgin plastic in Assumption: India will be regulated carbon Reduction of Upstream and d
Slide 22: Sustainability Objectives 2024-25
Sustainability Objectives 2024 – 25 Objectives Measures Target FY 23-24 Progress FY 22-23 Main Domain UNGC -SDGs FY 24-25 Vision Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1(Vs 2021) <1 1.18 2.27 People By 2025, Reduce Energy Intensity per metric tonne of product sold En
Slide 23: Capex – Next Phase of Growth
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 24: Capex – Speciality Carbon Black Expansion
Capex – Speciality Carbon Black Expansion Brownfield expansion of a new speciality carbon black line of 70,000 MTPA CAPEX TO MORE Increasing the total speciality carbon black capacity to 130,000 MTPA making it world’s largest speciality carbon black capacity at single site THAN DOUBLE SPECIALITY CAR
Slide 25: Applications
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades ONYX JETEX ELECTRA KLAREX Speciality Carbon Blacks are Speciality blacks are designed to KLAREX, “clean” speciality blacks Speciality blacks offer low sulfur, premium grades that offer deep provide reliable color a
Slide 26: Applications
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades COLORX BARONX VIRTEX COLORX is a powder black that BARNOX is latest innovation in Virtex black carbon series are for function exceptionally well as a speciality blacks and is a high performance speciality tyres App
Slide 27: Sicona Acquisition - Initiative in line with long term strategy
Sicona Acquisition- Initiative in line with long term strategy Why Sicona Investment • Sicona’s current generation silicon-composite anode technology delivers 50% to 100% higher capacity than conventional graphite anodes Sicona is an innovative Australian startup • Its anode materials can deliver mo
Slide 28: Invati Creations - Acquisition Highlights
Invati Creations - Acquisition Highlights About Invati Creations Acquisition cost • Invati, founded by alumni from IIM Kolkata and IIT Kharagpur, has a strong focus on engineering Lithium-ion electrode materials for efficient energy 40% stake for a storage with higher energy density and longer batte
Slide 29: Himadri LFP Cathode Vision
Himadri LFP Cathode Vision Bringing breakthrough Innovation to Sustainable Sourcing the Indian and Global LiB Industry To produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion o Long term partnership with lithium Battery, in phases in 5-6 years o
Slide 30: Where we play a role
Where we play a role HIMADRI’S PRESENCE Lithium Chemicals Cathode Active Material Upstream Downstream Refining of Lithium Best in Class & Exploration & Mining Concentrate to Lithium Sustainable Cathode Cell Manufacturing Carbonate and Lithium Active Material Hydroxide Production 29
Slide 31: Cathode Material Dynamics: Himadri's Strategic Advancements
Cathode Material Dynamics : Himadri’s Strategic Advancements Pioneering Innovation and Sustainable Growth in Cathode Material Landscape Large Global and Domestic Opportunity Market Projection : Cathode Material demand to reach 9.4 million tonnes annually by 2030 for global LiB cell production Domest
Slide 32: Birla Tyres Ltd - Acquisition Highlights
Birla Tyres Ltd - Acquisition Highlights ▪ Himadri Speciality Chemical Ltd (HSCL, Strategic Partner) along with Resolution Applicant - Dalmia Bharat Refractories Limited (DBRL) participated in the corporate insolvency resolution process of Birla Tyres Limited. ▪ LOI from the Resolution Professional
Slide 33: Value Acquisition
Value Acquisition The total acquisition cost is Rs. 306 crores. Additional capex is required to make the plant fully operational. For Himadri Speciality Chemical Limited The replacement cost Time consumed to Forward integration Eligible for investment Sufficient land available for creating such a cr
Slide 34: Birla Tyres Limited – Turnaround Opportunity
Birla Tyres Limited – Turnaround Opportunity Having successfully forward integrated from Oil to Carbon Black, then to Speciality Carbon Black, Himadri stands at the threshold of an exciting transformation moving forward towards end customer, venturing into the world of Tyres Existing capability Stra
Slide 35: Journey of Transformation
JOURNEY OF TRANSFORMATION
Slide 36: Himadri: Transformation Unfolds
Himadri : Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon Black » Graphite Grade Binder Pitch 2010 » G
Slide 37: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 36
Slide 38: Marquee Clients across Industries
Marquee Clients across Industries The brand names/logos mentioned are the property of their respective owners and are used here for identification purpose only 37
Slide 39: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 40: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobil
Slide 41: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO2 emission The Global Availability of
Slide 42: Primary Cathode Active Material Used now – NMC & LFP
Primary Cathode Active Material Used now – NMC & LFP Safety Working of LFP battery fast charging Spec. capabilities energy LFP batteries use lithium iron phosphate as the cathode material alongside a graphite electrode with a metallic backing as the anode. cost Spec. power lifespan Unlike many catho
Slide 43: Key Takeaways
Key Takeaways Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Strong Brand Location Team Transformation Unfolds Addressing the needs of
Slide 44: Financial Performance
FINANCIAL PERFORMANCE
Slide 45: Standalone Profit & Loss Statement – Q2 FY25
Standalone Profit & Loss Statement – Q2 FY25 Particulars (Rs. in Crs) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1FY25 H1FY24 Y-o-Y Net Revenue From Operations 1,135.21 1,004.52 13.01% 1,199.77 -5.38% 2,334.98 1,955.43 19.41% Cost of Materials Consumed 792.86 725.71 851.32 1,644.18 1,426.13 Gross Profit 342.
Slide 46: Consolidated Profit & Loss Statement – Q2 FY25
Consolidated Profit & Loss Statement – Q2 FY25 Particulars (Rs. in Crs) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1FY24 H1FY25 Y-o-Y Net Revenue From Operations 1,136.92 1,004.52 13.18% 1,200.41 -5.29% 2,337.33 1,955.43 19.53% Cost of Materials Consumed 789.76 724.59 849.77 1,639.53 1,425.45 Gross Profit 34
Slide 47: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. in Crs) Sep’ 24 Mar’ 24 Particulars (Rs. in Crs) Sep’ 24 Mar’ 24 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2,259.34 2,084.39 EQUITY 3,334.21 2,981.21 Property, Plant and Equipment 1,436.80 1,457.38 Equity Share Capital 49.37 49.26 Capital work-in-prog
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. in Crs) Sep’24 Mar’24 Particulars (Rs. in Crs) Sep’24 Mar’24 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2,327.58 2,141.82 EQUITY 3,420.43 3,042.79 Property, Plant and Equipment 1,492.22 1,510.22 Equity Share Capital 49.37 49.26 Capital work-in-progre
Slide 49: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. in Crs) Sep-24 Sep-23 Sep-24 Sep-23 Profit Before Tax 375.06 259.66 375.98 257.98 Adjustments for: Non-Cash Items / Other Investment or Financial Items 20.20 31.15 23.91 33.81 Operating profit before working capital changes 395.26 290.81 3
Slide 50: Contact details
Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika EVP - Tyre & Strategy Email: ssatnalika@himadri.com www.himadri.com Investor Relations Advisors : Ms. Payal Dave : Mr. Bhavya Shah: +91 9819916314 +91 8082748577 payal.dave@linkintime.co.in bhavya.shah@linkintime.co.in www.orientcap.com
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