Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Q4 FY2022 Earnings Presentation
30 slides from Fineotex Chemical's earnings presentation, May 2022
Slide 1: Fineotex Chemical Limited Q4 and FY2022 Earnings Presentation
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Textile Q4 and FY2022 Specialties Earnings Presentation Other Specialties Cleaning & Hygiene Specialties Drilling Specialties
Slide 2: FY2022 Consolidated Financial Highlights
FY2022 Consolidated Financial Highlights Surendrakumar Tibrewala Chairman and Managing Director Rs 3,682 mn Rs 712 mn Rs 569 mn Consolidated EBITDA Net Profit Revenue “Fineotex Chemical delivered its best-ever performance during the year. We have outperformed our internal targets by registering a to
Slide 3: An Introduction to Fineotex
An Introduction to Fineotex Specialty chemicals producer with a focus on textiles 470+ ~70 chemicals Product Categories Countries Present Team of 34 professionals for providing technical solutions to customers Bluesign, ZDHC, 83,000 MT p.a. Star Export House Installed capacities Accreditations Succe
Slide 4: New Facility at Ambernath, Maharashtra
New Facility at Ambernath, Maharashtra About the Facility ➢ Located on ~4 acres of land ➢ Production began on 9th November 2021 ➢ State of the art technological updates have been implemented ➢ Capacity enhanced to 40,000 MT through efficient process management vis-à-vis planned 36,000 MT Strategic A
Slide 5: Corporate Milestones
Corporate Milestones Employee Leadership Alliances Recognition Expansions Recognition • Appointed Mr. • Strategic collaboration • CRISIL LT rating as A- • Diversified into • The NRC of the Board Arindam Choudhuri as with HealthGuard®, which denotes Stable. Cleaning and Hygiene has approved a grant t
Slide 6: Strategic Partnerships (1/2)
Strategic Partnerships (1/2) Strategic collaboration with Eurodye-CTC, Belgium, to commercialize specialty chemicals for the Indian market Addition to its portfolio, specialized pre-treatment and dyeing products for the cotton-synthetic and woollen fibre/ fabric/ yarn Facilitates an efficient produc
Slide 7: Strategic Partnerships (2/2)
Strategic Partnerships (2/2) Strategic collaboration with HealthGuard, Australia to Setting up a state of art Research & Development become the exclusive global marketing and sales centre in collaboration with Sasmira Institute, one of channel partner with joint operations from Malaysia India’s prem
Slide 8: Investment Case (1/2)
Investment Case (1/2) • Consolidated revenue in Q4 FY22 of Rs. 1,214 mn, up 61.8% YoY; FY22 of Rs. 3,682 mn, up 68.5% YoY • Consolidated EBITDA in Q4 FY22 of Rs. 215 mn, up 67.5% YoY; FY22 of Rs. 712 mn, up 75.5% YoY • EBITDA Margins Q4 FY22 17.7% and has expanded 60 bps YoY; and FY22 of 19.3% and h
Slide 9: Investment Case (2/2)
Investment Case (2/2) • Fineotex Chemical has grown significantly over the past few quarters and our geographical expansion is on fast paced mode having entered new regions in the market • Our subsidiaries have contributed significantly to our horizontal expansion programs Growth Drivers • Our marke
Slide 10: Consolidated Quarterly Performance Trend
Consolidated Quarterly Performance Trend Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 39.1% 35.0% 34.5% 17.4% 17.1% 17.7% 1,214 215 750 128 436 76 Q4 FY 20 Q4 FY 21 Q4 FY 22 Q4 FY 20 Q4 FY 21 Q4 FY 22 PAT and PAT Margin 15.9% 14.0% 120 170 (61) Q4 FY 20 Q4 FY 21 Q4 FY 22
Slide 11: Consolidated P&L Summary: Q4 and FY2022
Consolidated P&L Summary: Q4 and FY2022 Particulars (Rs. Million) Q4 FY22 Q4 FY21 YoY% FY 22 FY 21 YoY% Revenue from Operations 1,213.9 750.2 61.8% 3,682.3 2,185.1 68.5% COGS 794.6 487.4 63.0% 2,351.3 1,405.7 67.3% Gross Profit 419.3 262.8 59.6% 1,331.0 779.3 70.8% Gross Profit Margin 34.5% 35.0% 36
Slide 12: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies The facility at Ambernath, Maharashtra is future ready for next phase of growth. P
Slide 13: Synergistic Business Model with Biotex
Synergistic Business Model with Biotex Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applica
Slide 14: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Operating Facts Strategic Advantages Manufacturing Excellence • Total Production • Strategically located plant near key Capacity : 36,500 MT port close to Mumbai with • Ambernath plant to logistical advantage to textile hubs gradually provide an acro
Slide 15: Focus on Growth and Diversification
Focus on Growth and Diversification Cleaning and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • Non toxic eco-friendly solution designed with ▪ Housekeeping, Kitchen Care and Disinfectants • Significant
Slide 16: Cleaning and Hygiene Division
Cleaning and Hygiene Division Diversified Product Offering • Air freshener • Hygienic hard surface Housekeeping • Carpet cleaner cleaner • Carpet shampoo • Multi surface cleaner • Deodorizers • Surface cleaner cum • Floor cleaner disinfectant • Furniture maintainer • Toilet bowl cleaner • Glass clea
Slide 17: Key Products in the Specialty Textile Chemicals Segment
Key Products in the Specialty Textile Chemicals Segment Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Process Sizing Scouring, Washing, Printing, Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, F
Slide 18: Product Offerings from Biotex
Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 18
Slide 19: Global Customer Reach
Global Customer Reach • Sales in ~70 countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Syria, Thailand, USA, Venezuela and Vietnam • 34+ technical marketing experts • 110+ dealers in Indian and International markets FY22 Revenue Mix 42% 58% Facilities at Mahape and Amb
Slide 20: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 44.5% 40.3% 37.3% 36.1% 21.9% 21.0% 35.5% 35.7% 19.3% 19.0% 18.6% 17.4% 3,682 712 1,963 2,185 1,823 1,344 1,429 406 300 347 342 295 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 17 FY 18 FY 19 FY
Slide 21: Consolidated Balance Sheet and Return Ratios Trend
Consoildated Balance Sheet and Return Ratios Trend (Rs Mn) Mar-21 Sep-21 Mar-22 Return on Equity (%) ST Debt 34 77 19 LT Debt 0 0 0 22.7% 23.4% Total Debt 34 77 19 18.3% Cash & Cash Equivalent 339 309 381 15.8% Net Cash 305 231 362 Equity 2161 2337 2694 Total debt/Equity 0.02x 0.03x 0.01x 8.4% CRISI
Slide 22: Management Team
Management Team Surendra Kumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Education: B.Com and LLB Education: B.Com and P.G. in Textile Education: B.Com and M.Com Chemicals and Processing Managing Director Chief Financial Officer Head - International Marketing Arindam Choudhuri Noa N. Ouakass Ked
Slide 23: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies The facility at Ambernath, Maharashtra is future ready for next phase of growth. P
Slide 24: ESG Profile - Environment
ESG Profile - Environment Focusing on Environmental factors and make efforts to restore the environment • Environment Strategy in Place: FCL is committed to ensuring clean environment beyond satisfying all stipulated requirement laid down by the statutory authorities and in the process constantly wo
Slide 25: ESG Profile - Social
ESG Profile - Social Committed to improve economic, environmental and social performance • Social Strategy in Place: The Company has specified programs in support of inclusive growth and equitable 100% employees development. It is the endeavor of the Company to ensure that there is continuous improv
Slide 26: ESG Profile - Social
ESG Profile - Social Committed to improve economic, environmental and social performance • Product Development: We've always been dedicated to enhancing our technologies and research and development No accidents so that we can meet a wide range of consumer needs and offer even more high-quality item
Slide 27: ESG Profile - Governance
ESG Profile - Governance Focus on maximizing the wealth of shareholders, establish productive and lasting relationships with all shareholders • Corporate Governance Policies: The Company’s philosophy on Corporate Governance relates to creating an organization intended to maximize the wealth of share
Slide 28: ESG Accreditations
ESG Accreditations Key ESG Facts Certificates Bhive certified ISO 9001 ISO 14001 ISO 14045 ISO 45001 Blue Sign certified ISO 20000 SA 8001 OHSAS18001 ISO 22000 ECO Passport by OEKO-TEX Global Organic Textile Standard (GOTS) certified New Accreditations Hazard Analysis Critical Control Point (HACCP)
Slide 29: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Fineotex Chemical Limited (“Fineotex Chemical” or the Company) future bus
Slide 30: Fineotex Chemical Limited
Fineotex Chemical Limited FINEOTEX CHEMICAL LIMITED (CIN Number: L24100MH2004PLC144295) 42-43, Manorama Chambers, S. V. Road Bandra (West), Mumbai - 400 050, India Phone: (+91 - 22) 26559174 / 75, (+91 - 22) 26559176 / 77 Email: info@fineotex.com www.fineotex.com 30