Slide 1: GHCL Limited Q4 & FY21 Investor Update
DRIVING EXCELLENCE GHCL LIMITED Q4 & FY21 Investor Update April 2021
Slide 2: 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 securities, and sh
Slide 3: Table of Contents
Table of Contents Quarterly Company Inorganic Chemicals Textiles Update Overview Segment Segment 4 16 23 32 3
Slide 4: Quarterly & Annual Update
uarterly & Annual Update yp a =e
Slide 5: Management Commentary
Management Commentary Commenting on the Q4 & FY21 performance, Mr. R. S. Jalan, MD said: “We are glad to have concluded the year on a positive note despite unprecedented macro- economic challenges posed by CoVID-19 pandemic and related restrictions. Our teams showed tremendous resilience while we na
Slide 6: Stout bounce back in Second Half FY21
Stout bounce back in Second Half FY 21 H1 FY 21 H2 FY 21 FY 21 Revenue ` 1,220 28% ` 1,630 4% ` 2850 13% EBITDA ` 246 42% ` 399 18% ` 646 15% PBT ` 129 57% ` 293 45% ` 422 16% Cash Profit ` 161 44% ` 288 25% ` 449 14% More than the “V” shape recovery with easing economic situations. 6
Slide 7: Performance Highlights – Q4 FY21
Performance Highlights – Q4 FY21 Q4 FY 21 Vs Q4 FY 20 Q4 FY 21 Vs Q3 FY 21 Revenue ` 821 crore 12% 2% EBITDA ` 195 crore 21% 4% PBT ` 143 crore 73% 4% PAT ` 104 crore 30% 6% Cash Profit ` 137 crore 20% 5% 7
Slide 8: Performance Highlights – FY21
Performance Highlights – FY21 Segment-wise Revenue break-up Y-o-Y* Textiles, 34% Revenue ` 2,850 crore 13% Inorganic Chemicals, EBITDA ` 646 crore 15% 66% PBT ` 422 crore 16% Domestic : Exports Revenue break-up PAT ` 310 crore 24% Exports, 17% Cash Profit ` 449 crore 14% Domestic, 83% * Despite adve
Slide 9: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q4 FY21 Q4 FY20 Y-o-Y Q3 FY21 Q-o-Q FY21 FY20 Y-o-Y* Revenue 821 734 12% 809 2% 2,850 3,272 (13)% Operating Expenses 626 572 9% 605 4% 2,204 2,509 (12)% EBITDA 195 161 21% 204 (4)% 646 763 (15)% EBITDA Margin 23.8% 22.0% 1.8% 25.3% (1.5)% 22.7% 23.3
Slide 10: Balance Sheet & Key Financial Ratios
Balance Sheet & Key Financial Ratios Particular March 2021 March 2020 Efficient Capital Allocation Cash & Bank Repayment of Non Current Assets (A) 2,893 2,925 Debt Current Assets (B) 1,099 1,276 ` 57 crore `472 crore Rs. 449 cr. Current Liabilities (C) 444 502 Net Working Capital (D)=(B)-(C) 654 774
Slide 11: Q4 FY21 Segment Highlights – Inorganic Chemicals
Q4 FY21 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Inorganic Chemicals – Quarterly Trend Particulars Q4 FY21 Q4 FY20 Y-o-Y Q3 FY21 Q-o-Q Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue 531 519 2% 528 -- 519 528 531 482 EBITDA 142 162 (13)% 148 (4)% 346 31% EBITDA % 27% 31.0% (4)% 28.0
Slide 12: Q4 FY21 Segment Highlights – Textiles
Q4 FY21 Segment Highlights – Textiles (Rs. In Crore) Textile – Quarterly Trend Particulars Q4 FY21 Q4 FY20 Y-o-Y Q3 FY21 Q-o-Q Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue 290 214 35% 280 4% 297 290 EBITDA 53 -1 NM 56 (5)% 214 280 18.3% 20.1% EBITDA % 18.4% (0.5)% 19% 20.1% (2)% 94 4.8% 14.7% (
Slide 13: 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 14: Strong Institutional & HNI Holding – ~42.7%
Strong Institutional & HNI Holding – ~42.7% Mutual Funds Promoters & 17.17% Promoters Group 19.24% Institutional buyers and HNI’s has increased their Foreign Portfolio Investors holdings by 2% 15.96% during the year to 42.7% from 40.7% in Mar-20. Insurance Companies / Financial Institutions / Banks
Slide 15: Focus on driving responsible future growth
Focus on driving responsible future growth Inorganic Textiles Chemicals Debottlenecking of existing soda ash facility by 50k MT, Expansion of Spinning facility. along with modular greenfield project. Focus on green energy. Doubling RBC Capacity from 60k to 120K MT. Value added and Quality
Slide 16: Company Overview
Company Overview 16
Slide 17: GHCL – An Introduction
GHCL – An Introduction Best-in-class Focused management Targeting Operations management approach To grow profits at a CAGR 15%-18% on a long term horizon CAPEX planning and execution Strategy led by professional To inculcate value systems that defines our culture Financial management m
Slide 18: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda experience ash player in India Professionally managed Listed on 2 workforce premier stock exchanges of India Focus to emerge as a sustainable business Business Philosophy organization of Inclusive growth of all stakeholders 18
Slide 19: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA which was further increased to 5.25 Lakh MTPA 1988-2000 Commenced Edible Salt Production and Launched ‘Sapan’ salt Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequentl
Slide 20: Sustainability Vision 2023
Sustainability Vision 2023 GHCL’s business goals include Zero harm sustainability. To embed Zero reportable injuries Zero environmental incidences sustainability in business and Responsible steward operations, concentrating 20% specific freshwater consumption reduction attention on material
Slide 21: 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 Integrated ecosystem with all its Respect Trust Ownership teamwork stakeholders a
Slide 22: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain (Chairman) (Independent Director) (Independent Director) (Ex-IRS) (Independent Director) Mr. Lavanya Rastogi Mrs. Vijaylaxmi Jos
Slide 23: Inorganic Chemicals
Inorganic Chemicals 23
Slide 24: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 25: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT Soda Ash Market Outlook Soda Ash demand recovered across all regions. However, CAPACITY: 14.5 MMT demand/supply could not reach pre-CoVID levels, due to high PRODUCTION: 12.0 MMT energy prices, new wave of Corona
Slide 26: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Market Share Domestic Demand & Growth Trend 27% (CAGR Growth of 5% during period upto FY 20) 25% 23% 20% 28 28 31 31 33 34 36 40 40 41 38 * 23 25 25 26 5% 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tata GHCL Nirma Others
Slide 27: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Historically, no mismatches in Demand supply as supply Scenario always followed demand globally Sustaining high utilization rates while maintaining periodic Excellence in Execution enhancement in capacities. Achieved through
Slide 28: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 28
Slide 29: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Domestic Demand Share Import 13% Doubled capacity DCW 9% from 30,000 to Nirma 13% 60,000 MT in GHCL 21% December 2017 Tata Chem 45% Generally Domestic Demand Concentration Specialization and named as baking West 16% experience in soda, bread South 21% manufac
Slide 30: 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 30
Slide 31: Marquee Clients
Marquee Clients & GUJARAT BOROSIL | @FENA LIMITED titrant aero G Glass : HINDUSTAN ZINC
Slide 32: Textiles Segment
Textiles Segment
Slide 33: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Sustainability Traceability Exceeding Innovation Expectation 33
Slide 34: Complete Integration improving the efficiency
Complete Integration improving the efficiency PRESENCE ACROSS VALUE CHAIN 1.85 Lacs Spindles, 3,320 Rotors, 12 Mn Meters 45 Mn Meters 30 Mn Meters 5,760 TFO Drums, 5 Air Jet Spinning Bed Machines Fabric Sheets & Spinning Weaving Processing Cut & Sew Made-up’s Also sold in Market Sold in Market Spi
Slide 35: Marquee Clients
Marquee Clients & KOHLS BEZ Revman Internatior BED BATH & avec | HBC Sainsbury's amazoncom >< Walmart.com
Slide 36: Leveraging technology for end to end traceability – True trace
Leveraging technology for end to end traceability – “True trace” One of unique inhouse development for complete traceability of product 36
Slide 37: Reinventing the textile: 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 37
Slide 38: 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 39: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The Company has For more information please visit us at www.ghcl.co.in established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segments. In chemicals, the Company Contact
Slide 40: Thank You
Thank You 40