Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q4 FY21 Earnings Presentation
37 slides from Sudarshan Chemical Industries's earnings presentation, May 31, 2021
Slide 1: Investor Presentation Q4 FY21
Investor Presentation Q4 FY21
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants $250 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 5: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. Sudarshan Mexico S. de R.L de CV. JAPAN Sudarshan
Slide 6: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider Domestic Revenue ₹ Cr 157% EBITDA ₹ Cr 236% EBITDA % A Consistent performance with Sales growing at a Exports Revenue ₹ Cr 1,864 288 CAGR of 10% and Operating profit by 13% despite 1,438 exiting some of the businesses 953 192 781 724 F
Slide 7: Pigments Application - a global $8.6bn market opportunity
Pigments Application - a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 8: Pigment Industry View
Pigment Industry View • COVID-19 had varied impact across different end application industries – Plastics: Moderate to low impact; use in essential goods like packaging, hygienic products helped limit COVID impact – Packaging / Inks: Low impact and rapid recovery; use in essential goods like food pa
Slide 9: Investing for growth of our Pigment business
Investing for growth of our Pigment business • Expected to complete capex projects during FY22 • There were continued restriction on movement of technical personnel to complete capex projects, however no cancellation of planned capex despite covid driven uncertainties FY20 ₹ 222 Cr Put to use: ➢ Sal
Slide 10: Annual Performance
Annual Performance
Slide 11: Annual Performance Highlights - Consolidated Financials
Annual Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) +9% +14% +9% +17% +22% +29% 1,864 288 140 1,708 1,593 246 1,438 109 204 192 81 77 15.4% 14.4% 13.3% 7.5% 12.8% 6.4% 5.4% 5.1% FY18 FY19 FY20 FY21 FY18 FY19 FY2
Slide 12: Financial Highlights
Financial Highlights Earnings per Share Return on Capital Employed Gross Block ₹ Cr Cash conversion cycle Working capital % to 932 Income from Operations 863 113 81% 15.4% 15.7% 14.8% 14.8% 641 88 93 20.2 599 86 15.7 11.1 11.7 24% 28% 24% 25% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY
Slide 13: Annual Performance Highlights - Pigment Business
Annual Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) +10% +15% +10% +20% 1,753 43.4% 281 42.6% 42.8% 1,590 41.8% 1,477 234 1,329 211 187 16.0% 14.7% 14.1% 14.3% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ➢ A ste
Slide 14: Pigment Business: Overseas geographies continue to have higher growth
Pigment Business: Overseas geographies continue to have higher growth Domestic Revenue ₹ Cr Export Revenue ₹ Cr +8% +11% +6% +14% 856 897 806 756 783 677 721 653 Mix % 51% 51% 51% 49% 49% 49% 49% 51% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ➢ With the investment in infrastructure and sales force in t
Slide 15: Pigment Business: Shift towards Specialty to continue
Pigment Business: Shift towards Specialty to continue Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr +12% +8% +5% +14% 1,203 1,109 550 1,005 473 471 481 856 Mix % 64% 68% 70% 69% 36% 32% 30% 31% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ➢ Focus on growing our Specialty pigments portfolio is shiftin
Slide 16: Quarterly Financials
Quarterly Financials
Slide 17: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) +14% +10% +11% 577 87 48 80 43 506 +28% 449 +62% 54 +176% 17 15.7% 15.2% 8.6% 8.3% 12.0% 3.9% Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21
Slide 18: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) FY20 42.8% FY21 43.4% FY20 14.7% FY21 16.0% +12% +8% 533 43.9% 43.2% 84 42.9% 78 477 402 +33% +73% 48 16.3% 15.8% 12.0% Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3F
Slide 19: Pigment Business - A robust YoY performance
Pigment Business - A robust YoY performance Domestic Revenue ₹ Cr +5% Export Revenue ₹ Cr +20% 261 273 260 206 +33% 216 +32% 196 Mix % 51% 55% 51% 49% 45% 49% Q4FY20 Q3FY21 Q4FY21 Q4FY20 Q3FY21 Q4FY21 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr +10% +15% 363 329 170 284 +28% 148 +43% 118 Mix %
Slide 20: Business Outlook
Business Outlook
Slide 21: Business Outlook - FY22 and beyond
Business Outlook - FY22 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Capex projects under commissioning • Expanding product portfolio to build • Building one of the most efficient in the
Slide 22: About Sudarshan
ABOUT SUDARSHAN
Slide 23: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 24: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 25: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. D. N. Damania Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani (Non-Executive, (Non- Executive, (Non-Executive, (Non-Execut
Slide 26: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 27: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 28: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 29: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 30: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 31: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 32: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERICAL EXCELLENCE ENVIORNMEMNT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practic
Slide 33: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 34: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 35: Shareholder Information
Shareholder Information Share Information (as at 31st March 2021) Shareholding Pattern (as at 31st March 2021) Promoters 40.03% NSE Ticker SUDARSCHEM FIIs and FPIs 9.36% BSE Ticker 506655 Mutual Funds 7.31% Others 43.30% Market Cap (INR mn) 35,992 % free-float 59.97% Sudarshan has performed in line
Slide 36: Awards And Accolades
Awards And Accolades Mahatma Awards 2020 in CSR Global CSR Award 2020 HR Excellence Award 2018 ‘Dream Company to Work For’ Excellence Platinum Category 1st in Chemicals & Fertilizer in Chemical Sector Sector World HRD Congress 2017 Global Clean Village Award - Global WasteMet Award 2018 DMAI Award f
Slide 37: Thank You
THANK YOU Investor Relations at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162 Wellesley Road, Pune, Maharashtra - 411001 37
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