Sigachi Industries Limited · NSE:SIGACHI
Sigachi Industries — Q3 FY2025 Earnings Presentation
40 slides from Sigachi Industries's earnings presentation, Jan 18, 2025
Slide 1: Cover letter to stock exchanges
To, Date: January 18, 2025 The Manager The Manager, BSE Limited National Stock Exchange of India P. J. Towers, Dalal Street Limited, Mumbai-400001 Exchange Plaza, Bandra Kurla Complex, (BSE Scrip Code: 543389) Bandra (E), Mumbai- 400051. (NSE Symbol: SIGACHI) Dear Sir/Madam, Sub: Investor Presentati
Slide 2: Q3 & 9MFY25 Investor Presentation
SIGACHI INDUSTRIES LTD Q3 & 9MFY25 Investor Presentation January’2025 1
Slide 3: Safe Harbour
Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the
Slide 4: Agenda
Agenda 01. 02. Operational & Business Financial Overview Highlights 03. 04. Competitive Annexure Edge 3
Slide 5: About Sigachi
About Sigachi VISION SIGACHI VA LU E S To contribute towards creating Healthier, Happier and Joyful World while living Sigachi values- Respect, Integrity, Resourcefulness and Excellence Excellence MISSION To ensure all our stakeholders i.e., Customers, Suppliers, Employees, Shareholders and the Plan
Slide 6: A Trusted Global Partner in Excipients, APIs, and Beyond
A Trusted Global Partner in Excipients, APIs, and Beyond We are more than just a supplier; we are a strategic partner committed to delivering excellence, fostering sustainable growth, and supporting clients across diverse sectors. Our growth across Pharma Excipients, APIs, Nutraceuticals, Cosmetics
Slide 7: Our Core Strengths and Capabilities
Our Core Strengths and Capabilities 500 + Customers across 65+ Countries 25% Global 5 Years Presence Revenue CAGR 5 State of the art facilities, strategically located in Hyderabad, Sultanpur, 24% Manufacturing Jhagadia, Dahej & Raichur 5 Years EBITDA Facilities CAGR Operating at a combined capacity
Slide 8: Core Business More Than Doubled in 5 Years
Core Business More Than Doubled in 5 Years MCC Revenue Grew 2.6x Revenue (Rs. Mn) MCC Revenue CAGR : 21% 14,740 (FY19-FY24) 12,655 12,793 11,446 9,159 8,876 3,015 2,603 2,266 1,773 1,173 1,265 FY19 FY20 FY21 FY22 FY23 FY24 Revenue (Rs. Mn) Volume (MTPA) 7
Slide 9: Operational and Financial Highlights
Operational and Financial Highlights Business Overview Competitive Edge Driving Profitability and Financial Stability Annexure 8
Slide 10: Business Update- Q3 & 9MFY25
Business Update- Q3 & 9MFY25 Other Updates Its Sultanpur, Hyderabad Focused on facility was approved by enhancing R&D o Strategic entry into Intertek on behalf of and cost-effective coatings market to harness GAIN manufacturing growth potential o Expertise in pharmaceutical Reinforces Sigachi’s Stri
Slide 11: ESG Performance Q3 & 9MFY25
ESG Performance Q3 & 9MFY25 Progressing Towards A BETTER TOMORROW, Operating Responsibly Growing Sustainably • Reducing our impact on the environment Environment • Reduced 7.65% in Total Carbon (FY23-24) Emissions • Recycled and Reused 81.25% of the total waste generated Shareholders: Uninterrupted
Slide 12: Q3FY25 Financial Highlights
Q3FY25 Financial Highlights Revenue from Operational Income (Rs. Mn) EBITDA (Rs. Mn) Revenue Contribution % Rs. 1,394 Mn Rs. 332 Mn 83% 25.70 % YOY 46.90 % YOY 66% 24% PAT (Rs. Mn) Margins 6% 8% 7% 4% 1% Rs. 205 Mn EBITDA : 23.81% Allied Trades API Operations and Management MCC 343 bps (YoY) Q3FY24
Slide 13: 9MFY25 Financial Highlights
9MFY25 Financial Highlights Revenue from Income* (Rs. Mn) EBITDA* (Rs. Mn) Revenue Contribution % Rs. 3,721 Mn Rs. 835 Mn 80% 38.47 % YOY 76% 26.22 % YOY PAT (Rs. Mn) Margins 12% 7% 9% 8% 4% 4% Rs. 542 Mn EBITDA : 22.44% Allied Trades API Operations and Management MCC 199 bps (YoY) 9MFY24 9MFY25 29.
Slide 14: Q3 & 9MFY25 Story in Charts
Q3 & 9MFY25 Story in Charts Revenue from Operations (Rs. Mn) EBITDA(Rs. Mn) & EBITDA Margin PAT (Rs. Mn) & PAT Margin 20.38% 23.81% 14.61% 14.70% Q3FY25 332 1,394 226 205 1,109 162 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 20.45% 22.44% 14.24% 14.56% 9MFY25 3,721 835 542 2,948 603 420 9MFY24 9MFY25
Slide 15: Uptick in MCC Quantity
Uptick in MCC Quantity Volume of Microcrystalline Cellulose (In MT) 39.39% 22.50 % 13,520 5,400 11,036 4,676 3,874 Q3FY24 Q2FY25 Q3FY25 9MFY24 9MFY25 14
Slide 16: Revenue Growth in MCC (Rs.Mn)
Revenue Growth in MCC (Rs.Mn) Key Drivers 29.03% Revenue in MCC Experienced Robust Growth Attributed to Increased Demand and Ramp up in Capacity Utilization 2,880 2,232 Average Price of MCC for the 9M FY25 was at Rs 212.97 per kg 9MFY24 9MFY25 15
Slide 17: Revenue Growth in O&M (Rs.Mn)
Revenue Growth in O&M (Rs.Mn) Key Drivers 17.30% • Revenue Growth is mainly attributable to increase in customers. 305 260 9MFY24 9MFY25 16
Slide 18: Strategic Alliance to Drive Expansion-JVs
Strategic Alliance to Drive Expansion-JVs Expansion in UAE Strategic Growth in Saudi Arabia Formation of Sigachi Global Joint Venture Sigachi Arabia Joint Venture o Partnership Structure: Sigachi MENA FZCO, o Partnership Structure: Sigachi Arabia, a JV a wholly owned subsidiary of the company, betwe
Slide 19: Strategic Priorities and Way Forward
Strategic Priorities and Way Forward MCC Market Expansion API CCS O&M o Enhanced Utilization: o Geographic Expansion: Deepen o Portfolio Integration: o Commercializing CCS : Aim to o Advanced O&M Services: Focus Striving for 80% Capacity market penetration with Seamlessly incorporate the new commerc
Slide 20: Income Statement Q3 & 9MFY25
Income Statement Q3 & 9MFY25 Particulars (Rs. Mn) Q3FY25 Q3FY24 YoY Q2FY25 QoQ 9MFY25 9MFY24 YoY Revenue from Operations* 1,394 1,109 25.70% 1,370 1.75% 3,721 2,948 26.22% Total Expenses 1,062 883 20.27% 1,077 (1.39)% 2,886 2,345 23.07% EBITDA 332 226 46.90% 293 13.31% 835 603 38.47% EBITDA Margin 2
Slide 21: Business Overview
Operational and Financial Highlights Business Overview Competitive Edge Driving Profitability and Financial Stability Annexure 20
Slide 22: Sigachi Industries – Distinct Value Proposition
Sigachi Industries – Distinct Value Proposition Sigachi Industries Ltd: Leading Manufacturer of Pre-Formulation Excipients Presence in the Pharmaceutical Ecosystem Competitive Largest MCC Manufacturing companies in India Edge Growth in API product portfolio and CEP Filings in pipeline 21
Slide 23: Present Across the Pharma Ecosystem
Present Across the Pharma Ecosystem Pharma & Formulations MAIN IDEA Pharma & API Intermediates Pharma Formulators Doctors End Excipients Customers Film Coatings, F&N Coatings Moving Up the Value chain by Introducing Value Added and Margin Accretive Products in the Product Basket 22
Slide 24: One of the Largest Manufacturers of MCC in the World
One of the Largest Manufacturers of MCC in the World Maximizing Capacity: Efficient Utilization (9M FY25) The capacity (7,200 MTPA) added in Q4FY24 resulted in an increase to total capacity of 21,700 MTPA 8,400 MTPA 6,900 MTPA 6,400 MTPA 98.47% 70.03% Operating at a Leading MCC combined capacity Man
Slide 25: Robust Growth in O&M Business
Robust Growth in O&M Business Revenue Tripled O&M Revenue (Rs. Mn) Trusted Partners o Gujarat Alkalies o Aditya Birla Group o ONGC Petro Additions o Lords Chloro Alkali Limited 351 265 Asset Light Model o Zero Capex Requirement 122 134 90 110 o Contracts Win to Boost RoE and RoCE FY19 FY20 FY21 FY22
Slide 26: Research & Product Excellence
Research & Product Excellence Advanced Manufacturing Facilities across 5 Strategic Locations Quality Assurance through Cutting-edge Facilities, Expert R&D, Accreditation and USFDA approved facility for Manufacturing Critical & Advanced intermediates. DMF for Coatings Manufacturing Units Research and
Slide 27: Ongoing Commitment to R&D Investment
Ongoing Commitment to R&D Investment Trademarks Patent Filed CEP 46 7 4 Investment in Intellectual Properties : R&D (In Rs. Mn) 44.12 49.6 37.41 FY22 FY23 FY24 26
Slide 28: Quality Assurance: Certifications & Accreditation
Quality Assurance: Certifications & Accreditation Ensures quality control and assurance in all manufacturing units, with various certifications for processes and raw materials 27
Slide 29: Competitive Edge Driving Profitability and Financial Stability
Operational and Financial Highlights Business Overview Competitive Edge Driving Profitability and Financial Stability Annexure 28
Slide 30: Achieving 3x Growth in Revenue and PAT
Achieving 3x Growth in Revenue and PAT Revenue (Rs. Mn) EBITDA (Rs. Mn) PAT (Rs. PATMn) 16.0% 21.2% 15.7% 20.1% 20.1% 19.4% 19.2% 14.7% 14.6% 14.4% 14.3% 4,106 3,087 17.8% 766.5 2,529 587.3 400.4 530.4 435.4 1,960 387.9 302.6 1,329 1,439 259.6 247.6 190.1 203.2 572.0 FY19 FY20 FY21 FY22 FY23 FY24 FY
Slide 31: Sustainable Margins
Sustainable Margins Sustainable Margins Returns to Stake holders picking up.. 21.2% 52.1% 20.1% 20.1% 19.4% 19.2% 20% 37.4% 17.8% 34.1% 19% 42.4% 19% 18.9% 17% 31.5% 32.1% 22.2% 16% 19.7% 15.7% 16.0% 13.64% 14.7% 14.6% 14.4% 14.34% 17.6% 16.2% 16.41% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22
Slide 32: Low Debt: Maximizing Financial Stability
Low Debt: Maximizing Financial Stability Gross Block (Rs. Mn) Net Debt to Equity and Interest Coverage Ratio 45.31 31.04 2,157 0.46 13.68 0.28 0.03 0.13 1,151 0.02 682.5 FY19 FY20 FY21 FY22 FY23 FY24 416.5 503.3 366.1 7.52 10.56 9.82 -0.15 FY19 FY20 FY21 FY22 FY23 FY24 Net Debt to Equity Interest Co
Slide 33: Cash Flow
Cash Flow To Drive Future Growth Cash Flows from Operation (Rs. Mn) Capex (Rs. Mn) 1,007 296 290 852 145 121 129 59 243 93 FY19 FY20 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 32
Slide 34: Annexure
Operational and Financial Highlights Business Overview Competitive Edge Driving Profitability and Financial Stability Annexure 33
Slide 35: Historical Income Statement
Historical Income Statement Particulars (Rs. Mn) FY21 FY22 FY23 FY24 9MFY25 Revenue from Operations* 1,928 2,503 3,020 3,989 3,721 Total Expenses 1,540 1,972 2,433 3,223 2,886 EBITDA 388 531 587 766 835 EBITDA Margin 20.12% 21.21% 19.43% 19.20% 22.44% Depreciation and Amortisation 23 29 66 108 110 F
Slide 36: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) FY21 FY22 FY23 FY24 H1FY25 NON-CURRENT ASSETS 463 1,069 1,964 3,809 3,911 a) Property, plant and equipment 376 527 960 1,711 2,757 b) Capital work-in-progress 37 97 349 966 82 c) Intangible assets 3 7 7 14 14 d) Goodwill - - - 547 547 e) Right of Use Ass
Slide 37: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) FY21 FY22 FY23 FY24 H1FY25 EQUITY 942 2,277 2,683 4,410 4,820 Equity Share Capital 77 307 307 328 333 Other Equity 865 1,970 2,376 3,968 4,384 Equity attributable to the owners of the company 942 2,277 2,683 4,296 4,717 Minority Interest - - - 114 102 NO
Slide 38: Key Milestones
Key Milestones 2000 2014 2023 2024 o Launched premium-grade 2010 1989 MCC production Merger of Sigachi Expanded Capacity to Sigachi MENA FZCO, a wholly Commenced the Incorporated as Cellulose Private Limited 21,000 MTPA, the owned subsidiary, has o Installed advanced spray drier commercial productio
Slide 39: Strong Leadership
Strong Leadership Distinct, high performing businesses aligned with business drivers and market requirements Rabindra Prasad Sinha Chidambarnathan Amit Raj Sinha Lijo Chacko Subbarami Reddy Oruganti Whole Time-Director & Shanmuganathan Managing Director & CEO CEO Sigachi MEA Chief Financial Officer
Slide 40: Thank You
SIGACHI INDUSTRIES LTD Corporate Office: Plot No. G 57/2, Survey no.70 C 174, Sultanpur Village, Patancheru Mandal, Hyderabad 502319, Sanga Reddy THANKYOU! THANK YOU! District, Telangana, India. Landline +91 8455242055/56/57 Registered office: 2nd floor, Kalyans Tulsiram Chambers, Madinaguda, Hydera