Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q3 FY21 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, Jan 25, 2021
Slide 1: Cover letter to National Stock Exchange
Slaar~la Cropclaem Limited Tel. : +91 2266782800 ISO 9001: 2015 Reg. No: 702949 FAX: + 91 22 66782828 / 66782808 CIN: L51909MH2004PLC145007 E· mail: office@shardaintl.com Regd. Office : Prime Business Park, Dashrathlal Joshi Road, Vile Parle (W), Mumbai - 400056, India. www.shardacropchem.com Januar
Slide 2: Sharda Cropchem Limited Q3 FY21 Results Update
SHARDA CROPCHEM LIMITED Q3 FY21 RESULTS UPDATE January 2021
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 4: Discussion Summary
DISCUSSION SUMMARY ❑ Q3 & 9M FY21 Result Highlights ❑ Consolidated Financials ❑ About Us ❑ Business Model ❑ Business Strategy & Outlook 3
Slide 5: Q3 & 9M FY21: Key Highlights
Q3 & 9M FY21: KEY HIGHLIGHTS Q3 FY21 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN (%) EBITDA & EBITDA MARGIN* (%) PAT & PAT MARGIN (%) 34.5% 20.6% 24.6% 7.9% 9.8% 4,938 1.5% 3,824 1,019 29.1 % 239.2 % 723.9 % 483 300 59 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 9M FY21 YoY ANALYSIS REVENUES &
Slide 6: Q3 FY21: Key Performance Highlights
Q3 FY21: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues grew by 29.1% YoY to Rs 4,938 mn in Q3 FY21 • Region wise growth YoY – Europe: 30.0%, NAFTA: 30.6%, LATAM: 23.0% and RoW: 27.0%. • Gross profit grew by 81.0% YoY from Rs 942 mn in Q3 FY20 to Rs 1,705 mn in Q3 FY21. Gross margin expand
Slide 7: Q3 & 9M FY21: Division Wise Highlights
Q3 & 9M FY21: DIVISION WISE HIGHLIGHTS In Rs Mn Q3 FY21 YoY ANALYSIS: REVENUE BREAKUP 9M FY21 YoY ANALYSIS: REVENUE BREAKUP 13,075 4,938 11,269 4.1 % 2,538 3,824 916 28.8 % 2,646 711 29.2 % 4,022 22.2 % 10,537 3,113 8,623 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Agrochemicals Non-Agrochemicals Agrochemicals
Slide 8: Q3 & 9M FY21: Agrochemical Business
Q3 & 9M FY21: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 3,113 4,022 8,623 10,537 3,113 4,022 8,623 10,537 9.4% 9.4% 10.8% 12.3% 8.5% 13.0% 14.2% 21.3% 10.5% 9.7% 10.7% 10.4% 33.5% 32.2% 44.2% 42.5% 89.2% 87.7% 91.5% 78.7% 46.4% 48.0% 32.3% 33.6%
Slide 9: 9M FY21: Agrochemical Business
9M FY21: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 24% 27% 9M FY20 49% 9M FY21 50% 27% 23% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues increased by 25.4% YoY in 9M FY21 to Rs 5,267 mn • Fungicides revenues grew b
Slide 10: Q3 & 9M FY21: Non-Agrochemical Business
Q3 & 9M FY21: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 711 916 2,646 2,538 21.0% 14.3% 16.1% 28.6% 9.3% 7.1% 8.4% 4.1% 37.6% 47.8% 44.8% 41.4% 33.0% 28.6% 25.9% 32.0% Q3 FY20 Q3 FY21 9M FY20 9M FY21 Europe NAFTA LATAM RoW • Revenues in Europe grew by 11.4% in Q3 FY21 to Rs 262
Slide 11: 9M FY21: Working Capital Analysis
9M FY21: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 129 112 103 101 99 93 9M FY20 9M FY21 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS 9M FY20: 84 9M FY21: 71 * Calculated on average inventory, receivables and creditors 10
Slide 12: Q3 & 9M FY21: Consolidated Profit & Loss Statement
Q3 & 9M FY21: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY21 Q3 FY20 YoY % 9M FY21 9M FY20 YoY% FY20 Revenue from Operations 4,938.1 3,824.4 29.1% 13,074.7 11,269.4 16.0% 20,030.2 COGS 3,233.0 2,882.5 12.2% 8,888.1 8,304.6 7.0% 13,887.5 Gross Profit 1,705.1 941.8 81.0% 4,186.6 2
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW ▪ Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registrat
Slide 14: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited Sd : * ae od 2 . a oe e° 13
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin* PAT & PAT Margin 19,978 20,030 17,066 22.2% 22.3% 20.2% 16.3% 17.6% 14.3% 13.6% 11.2% 8.8% 8.2% 13,992 12,186 3,124 3,454 3,267 3,516 2,714 1,751 1,904 1,908 1,763 1,647 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 31ST Dec 2020 % HOLDING MARKET DATA AS ON 22ND Jan 2021 HDFC MF 9.21% Market capitalization (Rs Mn) 24,175 L & T Mutual Fund 4.83% Price (Rs.) 268.0 No. of shares outstanding (Mn) 90.2 Pinebridge Global 3.57% Face Value (Rs.) 10.0 DSP MF
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK ▪ Leverage market presence and execution capabilities Forward Integration - ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force ▪ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Ashok Vashisth Mr. Hiral Keniya / Chintan Mehta Chief Financial Officer IR Consultants Email: cfo@shardaintl.com Email: shardacropchem@dickensonworld.com Contact No: +91 22 6678 2800 Contact no: +91 9029662801 / 9892183389