Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — H1 FY25 Earnings Presentation
38 slides from Sudarshan Chemical Industries's earnings presentation, Oct 28, 2024
Slide 1: Exchange filing cover letter for investor presentation
28th October, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Mumbai – 400 001 Bandra Kurla Complex, Scrip Code – 506655 Bandra (East), Mumbai – 400 051 Scrip Code NCDs - 974058 Scrip Symbol - SUDARSCHEM Dear Sir / Mada
Slide 2: Investor Presentation Q2 | H1 FY25
Investor Presentation Q2 | H1 FY25
Slide 3: 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 4: Company Overview
—€o MPANY OVERVIEW ESE Ae 7
Slide 5: 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 ~$307Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 6: 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. Sudarshan Europe B.V. MEXICO Brazil Sudarshan Mexico S. de R.L de CV. JAPAN Sud
Slide 7: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider 251% EBITDA ₹ Cr 270% Domestic Revenue ₹ Cr A consistent performance with Sales growing at a Exports Revenue ₹ Cr 2,539 316 CAGR of 10% and Operating profit growing at a CAGR 2,201 275 of 11% despite exiting some of the businesses. 1,4
Slide 8: 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 9: Quarterly Performance
Quarterly Performance
Slide 10: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT^ (In ₹ Cr & Margin%) 696 94 634 601 +16% 81 +42% 66 41 13.6% 29 12.7% +128% 10.9% 18 5.9% 4.6% 3.0% Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 F
Slide 11: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights - Key Ratios Current Ratio Cash conversion cycle 1.4 1.2 1.2 82 80 73 Earnings per Share ^ 5.9 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 4.3 2.6 Net Debt to EBITDA Net Debt to Equity Ratio Debt* ₹ Cr (Annualised) Q2 FY 24 Q1 FY 25 Q2 FY 25 0.4 1.7 0.3 0.3
Slide 12: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 660 47.2% 47.8% 105 589 44.8% +3.0 90 522 +26% +57% 67 15.3% 15.9% 12.8% Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 ➢ 7th consecutive
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 287 300 360 272 +10% 302 +44% 250 Mix % 52% 49% 45% 48% 51% 55% Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 457 202 403 187 362 +26% 160 +26% Mix
Slide 14: Half Yearly Performance
Half Yearly Performance
Slide 15: Half Yearly Performance Highlights - Consolidated Financials
Half Yearly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT^ (In ₹ Cr & Margin%) 1,330 1,330 181 175 1,209 +10% +30% 135 72 70 +79% 13.6% 13.2% 39 11.2% 5.4% 5.3% 3.2% H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2
Slide 16: Half Yearly Performance Highlights - Pigment Business
Half Yearly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 1,249 47.5% 195 1,165 44.7% 1,058 +18% 43.9% +3.6 170 +49% 131 15.6% 14.6% 12.4% H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2 FY 24 H1 FY 25 ➢ Gross
Slide 17: Half Yearly Performance Highlights - Pigment Business
Half Yearly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 623 662 587 536 +10% 543 +27% 522 Mix % 51% 53% 47% 49% 47% 53% H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2 FY 24 H1 FY 25 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 860 389 797 368 725 +19% 334 +16% Mi
Slide 18: Business Outlook
Business Outlook
Slide 19: Business Outlook - FY25 and beyond
Business Outlook - FY25 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Capitalize on the strong breadth of • Continue expanding product portfolio • Building one of the world class product p
Slide 20: Heubach deal came as golden opportunity for Sudarshan
Heubach deal came as golden opportunity for Sudarshan to meet it’s global aspirations Confident and Excited to create value for Why we are excited about this deal Deal Facts all our stakeholders • Sudarshan gets global asset footprint - 17 Deal Structure: We at Sudarshan are very confident of making
Slide 21: About Sudarshan
ABOUT SUDARSHAN
Slide 22: 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 23: 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 24: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. D. N. Damania Mr. Rajesh Rathi Mr. Ashish Vij (Non-Executive, (Managing Director) (Whole Time Director) Independent Director) (until 6th August 2024) Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mrs. Rati F. Forbes (Non- Executive, (Non-Executive,
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERCIAL EXCELLENCE ENVIRONMENT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practice
Slide 32: 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 33: 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 34: Our ESG Focus
Our ESG Focus To be the global leader in Pigment industry by operating responsibly and growing sustainably Environmental Strengthening Social Manufacturing Business Responsibility Inclusiveness Excellence Accountability ❖ Air Emission and ❖ Employee Safety and ❖ Automation, Innovation ❖ Business Eth
Slide 35: Shareholder Information
Shareholder Information Share Information (as at 30th September 2024) Shareholding Pattern (as at 30th September 2024) Promoters 30.55% NSE Ticker SUDARSCHEM FIIs and FPIs 8.34% BSE Ticker 506655 Mutual Funds 19.43% Others 41.68% Market Cap (₹ mn) 77,379 % free-float 69.45% SUDARSHAN NIFTY 500 Free-
Slide 36: Recognition
Recognition Sudarshan has achieved EcoVadis Gold rating. We The company also received “B” Rating on CDP are now among the top 3 percentile company in (formerly known as Carbon Disclosure Project) for the chemical sector. Climate Change and Water Security. 35
Slide 37: Awards And Accolades
Awards And Accolades The EEF Global Sustainability Mahatma Award 2024 for ESG "Significant Achievement in HR Navabharat CSR Awards 2023 Award 2023 in the Platinum Excellence Excellence Award“ for Excellence in CSR Activities Category National CSR Excellence Award Best Waste Management CSR for 'Integ
Slide 38: 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 7th Floor, Eleven West Panchshil, Survey No. 25, Near PAN Card Club Road, Baner, Pune – 411 069, Mahar
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