AARTI Industries Ltd · NSE:AARTIIND
AARTI Industries — Q3 FY2018 Earnings Presentation
25 slides from AARTI Industries's earnings presentation, February 2018
Slide 1: Q3 & 9M FY18 Results Presentation
Q3 & 9M FY18 Results Presentation
Slide 2: Disclaimer
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 to
Slide 3: Content
Content At a glance Quarterly performance 5 year financial performance 3
Slide 4: At a glance
can AARTI INDUSTRIES LIMITED At a glance
Slide 5: Profile
Profile Globally ranks at Promoters are First Generation Technocrats Aarti is one of the 1st – 4th position for • 5 of 6 Promoter Directors are engineers. 3 of 4 Present in niche most 75% of its portfolio. Founder Promoters are chemical engineers from chemistry spaces. competitive “Partner of Choice
Slide 6: Transformation Journey
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 na
Slide 7: Transformation Journey
Transformation Journey • Custom Synthesis • Merged • Scaled NCB capacity from 57,000 division (Vapi) received manufacturing TPA to 75,000 TPA USFDA approval. division of Anushakti • Expanded caffeine capacity • Upgraded hydrogenation Chemicals and Drugs • Merged promoter’s investment unit from batch
Slide 8: What differentiates us
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 & ar
Slide 9: Global Partner of Choice
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 Transform Make-to-order from Multiproduct, Committed to
Slide 10: Key Investment Theme
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 mul
Slide 11: Quarterly Performance
can AARTI INDUSTRIES LIMITED Quarterly Performance
Slide 12: Chairman's Message
Chairman’s Message Commenting on the performance for Q3 & 9M FY18, Mr. Rajendra Gogri – Chairman & M.D. at Aarti Industries Ltd. said, “We have delivered 28.5% revenue growth during Q3 with strong momentum across all our business segments. Speciality Chemicals revenues witnessed the 8% volume growth
Slide 13: Q3 & 9M FY18 Highlights
Q3 & 9M FY18 Highlights Financial & Capex • Improvement in volumes across segments; EBIT momentum continues. • Nitro toluene facility at Jhagadia which commenced in the month of September has reached 25% utilization. • Rs. 390 cr capex (incl WIP) for FY19. Corporate • The Board at a meeting held on
Slide 14: Q3 FY18 Highlights
Q3 FY18 Highlights Multi-year contracts • In Dec 2017, signed Rs 10,000 crore exclusive supply contract with a global chemical conglomerate for supply of a high value speciality chemical intermediate over a period of 20 years Pharmaceuticals • Improved performance across various markets • EBIT perfo
Slide 15: Q3 & 9M FY18 P&L (Standalone)
Q3 & 9M FY18 P&L (Standalone) Y-o-Y Y-o-Y Particulars Q3 Q3 9M FY18 9M FY17 Growth Growth (Rs. Crore) FY18 FY17 (%) (%) Gross Income from • Higher revenue 2,669.92 2,215.88 20.5 990.22 770.23 28.6 Operations contribution from the Exports 1,192.07 1,029.48 15.8 418.07 376.43 11.1 direct linkage and p
Slide 16: Q3 & 9M FY18 – Speciality Chemicals (Standalone)
Q3 & 9M FY18 – Speciality Chemicals (Standalone) Revenue 2,091 1,792 629 774 • Revenues are linked to pass through of key raw-material prices • Speciality Chemicals volume growth increased by 8% YoY in Q3 Q3 9M 9M Q3 FY17 FY18 FY17 FY18 – Expect similar Q4 to sustain Q3 volumes– approx. 8-10% volume
Slide 17: Q3 & 9M FY18 – Other Businesses (Standalone)
Q3 & 9M FY18 – Other Businesses (Standalone) • Maintained QoQ EBIT run rate enabled by improved business across markets and operating leverage - committed to sustain momentum Pharmaceuticals Pharmaceuticals EBIT • Since major fixed costs already built-in, incremental volumes Revenue 33 33 will resul
Slide 18: 5 year financial performance
5 year financial performance
Slide 19: Revenue Performance (Consolidated)
Revenue Performance (Consolidated) Operating revenues have Revenue Export Deep engagement with grown on the back of global customers in CAGR: 8.7% strong volume growth in 1,449 1,523 Speciality chemicals and key business segments 1,281 1,352 pharma. In addition, part of and better product mix. 1,060
Slide 20: EBIT Performance (Consolidated)
EBIT Performance (Consolidated) EBIT Higher growth relative to revenue highlights value addition delivered CAGR: 16.6 % 615 by AIL 542 447 333 366 FY13 FY14 FY15 FY16 FY17 Speciality Chemicals Pharmacuticals Home & Personal Care CAGR: 15.4% 566 CAGR: 52.0% 48 5 504 408 39 4 36 319 333 30 3 9 1 (0) F
Slide 21: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) Gross Profit (Rs. Cr.) & Gross margin EBITDA & Net Profit (Rs. Cr.) 44.9% 316 38.8% 41.3% 36.0% 37.0% 257 206 134 162 1076 1244 1422 361 401 466 572 656 813 947 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Gross Profit Gross Margin EBITDA Net Profit Earning
Slide 22: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) 21.1% 20.0% 21.2% 23.8% 23.4% 25.9% 24.1% 21.8% 1,710 20.0% 20.0% 2,006 2,193 2,400 2,862 1,016 1,114 1,362 756 871 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Capital Employed (Rs. Cr) Avg. ROCE * Networth (Rs. Cr) Avg. ROE * Pre- IndAS to make it compara
Slide 23: About Us
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 utilization).
Slide 24: Contact Us
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 sh
Slide 25: Thank You
can AARTI INDUSTRIES LIMITED Thank You