AARTI Industries Ltd · NSE:AARTIIND
AARTI Industries — Q4 FY2018 Earnings Presentation
28 slides from AARTI Industries's earnings presentation, May 14, 2018
Slide 1: Aarti Industries Limited cover letter to exchanges
AARTI INDUSTRIES LIMITED Ref. No.: AIL/B-36/2018/388 May 14, 2018 ' T o, T o, Listing / Compliance Department Listing / Compliance Department BSE LTD. National Stock Exchange of _ Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C / 1, Mumbai — 400 001. G Block Bandr
Slide 2: Q4 & FY18 Results Presentation
1 Q4 & FY18 Results Presentation
Slide 3: Disclaimer
2 Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with Bombay Stock Exchange and National Stock Exchange, and our reports to shareholders. The company does not undertake t
Slide 4: Content
3 Content At a glance Quarterly performance 5 year financial performance
Slide 5: At a glance
AARTI INDUSTRIES LIMITED At a glance
Slide 6: Profile
5 Profile Aarti is one of the Globally ranks at Promoters are First Generation Technocrats Highly integrated operations Present in niche most 1st – 4th position for • 5 of 6 Promoter Directors are engineers. 3 of 4 • Cost-efficient processes chemistry spaces. competitive 75% of its portfolio. Founde
Slide 7: Transformation Journey
6 Transformation Journey Hitting right milestones at right time • Merged Salvigor Labs, producers of DMS and Set up additional Sulphuric Acid and their unit at Vapi to downstream products Set up Alchemie Merged manufacture into Aarti. (Europe) Ltd. a Alchemie Aarti Organics Pvt NCB with • Change of
Slide 8: Transformation Journey
7 Transformation Journey • Crossed Rs. 1,000 cr in • Commenced calcium chloride facility total income. and 2nd Phase of PDA facility at Jhagadia • Merged Surfactants • Commenced multipurpose Ethylation Specialities unit at Dahej SEZ, Gujarat Pvt. Ltd. • Crossed Rs. 2,900 cr • Operationalized Co-gene
Slide 9: What differentiates us
8 What differentiates us Our product mix comprises more Most chemical companies focus than 125 research-led products on a handful of products We have focused on the manufacture Most chemical companies focus on a of integrated derivatives fragmented standalone product mix We have global capacities &
Slide 10: Global Partner of Choice
9 Global Partner of Choice Aarti Industries is a rare instance of a global speciality chemicals company that combines process chemistry competence with scale-up engineering competence Vendor servicing to Make-to-stock to robust Partner of Choice To Transform Make-to-order Knowledge from arbitrage Ov
Slide 11: Multi-year deals
10 Multi-year deals Rapidly changing global environment where global industrial players graduating from Conventional Long-Term Vendor Strategic Knowledge Short-Term Stability and Cost Arbitrage Enlistments Partnerships Arbitrage Opportunism Sustainability Model Relationship-driven approach where we
Slide 12: Key Investment Theme
11 Key Investment Theme Clear Path to Value Creation Economies of Scale and Operational Efficiency: • Highly Backward Integrated Global Partner of and gainful usage of by- Choice Leadership Increasing focus De-risked portfolio – products, ensuring steady engagements with excellence – on high margin
Slide 13: Quarterly Performance
AARTI INDUSTRIES LIMITED Quarterly Performance
Slide 14: Chairman's Message
13 Chairman’s Message Commenting on the performance for Q4 & FY18, Mr. Rajendra Gogri – Chairman & M.D. at Aarti Industries Ltd. said, “This has been an eventful year for AIL on several fronts. I am happy to state in Q4FY18 we have achieved 9% YoY growth in Speciality Chemicals volumes, 18% YoY grow
Slide 15: Q4 & FY18 Highlights
14 Q4 & FY18 Highlights Financial • Rupee volatility impact • As part of its strategy to safeguard business against currency risks the Company had entered into forward contracts to hedge Its medium and long term exports contracts. In Q4FY18, the Company reported Mark to Market loss on such contracts
Slide 16: Q4 & FY18 Highlights
15 Q4 & FY18 Highlights Corporate • Effected share buyback of 8.2 lakh equity shares of face value of Rs. 5 each at a price of Rs. 1,200 per share on Dec 21, 2017. Program highlights the Company’s belief in its long-term growth prospects and commitment to efficient capital allocation • AIL’s Board r
Slide 17: Q4 & FY18 P&L (Standalone)
16 Q4 & FY18 P&L (Standalone) Y-o-Y Y-o-Y Particulars Q4 Q4 FY18 FY17 Growth Growth (Rs. Crore) FY18 FY17 (%) (%) Gross Income from 3,699.31 3,050.23 21.3 1029.39 834.35 23.4 • Higher revenue Operations contribution from the Exports 1,592.72 1414.76 12.6 400.65 385.28 4.0 direct linkage and pass thr
Slide 18: Q4 & FY18 – Speciality Chemicals (Standalone)
17 Q4 & FY18 – Speciality Chemicals (Standalone) Revenue 2,879 2,456 663 787 • Revenues are linked to pass through of key raw-material prices • Speciality Chemicals volume growth increased by 9% YoY in Q4 Q4 FY17 FY18 Q4 FY17 FY18 – Expect approx. 10-15% volume growth for FY19 • Nitro toluene facili
Slide 19: Q4 & FY18 – Other Businesses (Standalone)
18 Q4 & FY18 – Other Businesses (Standalone) • Improved QoQ EBIT run rate enabled by enhanced business across markets and operating leverage - committed to sustain momentum Pharmaceuticals Pharmaceuticals EBIT • Since major fixed costs already built-in, incremental Revenue 79 volumes will result in
Slide 20: FY18 P&L (Consolidated)
19 FY18 P&L (Consolidated) Speciality Revenue Speciality EBIT Y-o-Y 2,986 Particulars FY18 FY17 Growth 2,569 581 (Rs. Crore) (%) Gross Income from 566 3,813.83 3,165.44 20.5% Operations EBITDA 706.89 655.45 7.8% FY17 FY18 FY17 FY18 EBITDA Margin* 18.5% 20.7% Pharmaceuticals Pharmaceuticals EBIT 560.
Slide 21: Balance Sheet (Consolidated)
20 Balance Sheet (Consolidated) Particulars As on As on (Rs. Crore) Mar 31, 2018 Mar 31, 2017 Shareholders Funds 1,655 1,426 • Strong execution of growth- oriented investments resulted Net Debt 2,080 1,561 in positive impact on returns on capital Net Block of Fixed Assets 1,996 1,695 • Debt/Equity h
Slide 22: 5 year financial performance
5 year financial performance
Slide 23: Revenue Performance (Consolidated)
22 Revenue Performance (Consolidated) Operating revenues have Revenue Export Deep engagement with grown on the back of CAGR: 9.7% global customers in 1,691 Speciality chemicals and strong volume growth in 1,449 1,431 1,523 key business segments 1,281 pharma. In addition, part of and better product m
Slide 24: EBIT Performance (Consolidated)
23 EBIT Performance (Consolidated) EBIT Higher growth relative to revenue highlights value addition delivered CAGR: 15.9 % 615 by AIL 542 447 366 FY14 FY15 FY16 FY17 FY18 Speciality Chemicals Pharmacuticals Home & Personal Care CAGR: 14.% 566 578 CAGR: 27.4% 504 79 4 408 3 1 333 48 36 39 30 (0) 1 FY
Slide 25: Financial Highlights – (Consolidated)
24 Financial Highlights – (Consolidated) EBITDA & Net Profit (Rs. Cr.) 316 331 257 162 206 401 466 572 653 707 FY14 FY15 FY16 FY17 FY18 EBITDA Net Profit Earnings Per Share (EPS) 18.34 23.24 30.83 38.45 40.65 FY14 FY15 FY16 FY17 FY18
Slide 26: About Us
25 About Us Aarti Industries (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale-up engineering competence (asset utilizatio
Slide 27: Contact Us
26 Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti-industries.com Vikram Rajput / Shiv Muttoo CDR India Tel: +91 22 6645 1223/1207 Email: vikramr@cdr-india.com
Slide 28: Thank You
AARTI INDUSTRIES LIMITED Thank You