Ghcl Limited · NSE:GHCL
Ghcl — Q2 FY2017 Earnings Presentation
26 slides from Ghcl's earnings presentation, Oct 21, 2016
Slide 1: Cover letter to stock exchanges: Q2FY17 Business Update
GHCL Limited _ _ _ _ _ _ _ _ _ __ October 21, 2016 National Stock Exchange of India BSE Limited Limited 1st Floor, New Trading Ring, "Exchange Plaza" Rotunda Building, Sandra - Kurla Complex, P.J. Towers, Dalal Street, Sandra (E) , Mumbai - 400 051 Fort, Mumbai - 400 001 Fax# 022 26598237/38 (Fax:02
Slide 2: GHCL Limited Investor Presentation September 2016
We believe – Respect, Trust, Ownership and Integrated Team Work leads to Business Success GHCL Limited Investor Presentation September 2016
Slide 3: Business segments overview
Business segments overview Inorganic Chemicals Textiles Leading producer of soda ash in India which find use in Integrated home textile manufacturer in India detergents & glass industries Presence across spinning, weaving, continuous fabric Specializes in manufacturing Sodium Bicarbonate pro
Slide 4: Professional management
Professional management… Managing Director Mr. R. S. Jalan 30+ years experience Unique leadership style with endeared managerial abilities drives all businesses alike Qualified Chartered Accountant, profess deep business understanding and excellent analytical skills CFO & Executive Director Mr.
Slide 5: Agenda
» Q2 FY17 Financial Highlights » Our Business Philosophy » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 6: Robust year-on-year growth in Q2 FY17
Robust year-on-year growth in Q2 FY17 1% Revenue ` 20% EBITDA ` 407bps EBITDA Margin Rs 705 crore Rs 180 crore 26% 42% Profit Before Tax 79% Profit After Tax Rs. 4 EPS Rs 122 crore Rs 90 crore Rs. 9/Share Standalone Financials based on IndAS 5
Slide 7: With improving financial indicators
… with improving financial indicators 211 246 Net Debt / EBITDA Net Debt / Equity Total Debt (Rs crore) 1.69 ` 1.01 ` 1,219 From 1.90 in Mar’16 From 1.17 in Mar’16 From 1,244 cr in Mar’16 Return on Cash Profit after Cash Return on Equity* tax (Rs crore) Capital Employed* 24% 29% 119 Q2 FY 17 Q2 FY 1
Slide 8: Major Achievements during the quarter
Major Achievements during the quarter… • Our two Spinning units were conferred with prestigious SIMA award for the year 2015-16. • Units were ranked 2nd and 4th position. Credit Rating • Selected out of 100+ Mills across the Upgraded to A - country. from BBB +. • Spinning division received “GOLD Awa
Slide 9: Agenda
» Q2 FY17 Financial Highlights » Our Business Philosophy » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 10: Business philosophy going forward
Business philosophy going forward… Robust and Profitable Growth 01 To grow profits at CAGR 20% Focus on Value Systems 02 To create a value systems that defines our Culture Sustainable Inclusive Growth 03 Business Philosophy of “Sustainable Inclusive Growth” involving all the stakeholders 9
Slide 11: Robust and profitable growth
1 Robust and profitable growth • Volume Growth through surpassing globally benchmarked Utilisation Rate. 49% Bottom line • Margin Leadership through Optimisation of Growth in 2 Yrs resources • Increased Capacity Utilisation from 70% to 83% • Established Strong foothold in Market Place • Achieving en
Slide 12: Focus on Value systems
2 Focus on Value systems BEST EMPLOYERS AVERAGE SCORE 76 GHCL AVERAGE SCORE 71 INDUSTRY AVERAGE 65 Based on Survey 15-16 We, at GHCL aim to create a unique culture based on our Core values of Respect, Ownership, Trust and Integrated Team work. Core Values Conducts 360⁰ Adherence survey (half yea
Slide 13: Sustainable inclusive growth
3 Sustainable inclusive growth Promoting Women Empowerment Village Organic Manure & Education Sanitation • 650+ farmers in 43 villages • 100+ women from 6 villages, • “1 Day 1 Village Campaign” have adopted organic manure taken to district level women conducted in 5 villages along empowerment semina
Slide 14: Way forward
Way forward Continue profitable growth Sweat existing assets Focus on Textile marketing Strengthen balance sheet Strengthen presence 1 lakh soda ash capacity Focus on optimally in new geographies Improve debt/ equity expansion by FY17; utilizing capacities for home textiles like ratio with t
Slide 15: Agenda
» Q2 FY17 Financial Highlights » Our Business Philosophy » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 16: Margin leadership in the industry
Margin leadership in the industry Revenue EBITDA 147 17% 421 131 412 119 112 405 384 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 EBITDA Margin Capacity Utilization 35% 91% 91% 91% 31% 32% 27% 86%* Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 * Excluding shutdow
Slide 17: Leading manufacturer of soda ash with 8.5 L MT capacity
Leading manufacturer of soda ash with 8.5 L MT capacity Key Highlights Clients Capacity of 8.5 Lakh MT (27% of domestic capacity) Highest capacity utilization – 91% in Q1 FY17 Best EBITDA margins in industry Built operational efficiencies – six sigma projects, cost reduction initiatives, pro
Slide 18: Soda ash industry overview
Soda ash industry overview Domestic Demand and Supply Unlike Commodity 72 % of demand from North and West India Global Market Indian Market Production: 4% CAGR Production: 4% CAGR Demand: 4% CAGR Demand: 4% CAGR In Million MT (MMT) In Million MT (MMT) 58 3.3 57 55 3.1 3.0 55 54 57 2.8 2.8 2.8 30% 55
Slide 19: Agenda
» Q2 FY17 Financial Highlights » Our Business Philosophy » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 20: Consistently improving margins
Consistently improving margins Revenue EBITDA 5% 313 298 284 50 29% 49 241 38 34 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 EBITDA Margin Capacity Utilization (Sheeting) 16% 17% 90% 14% 13% 85% 81% 76% Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Q1 FY16 Q1 FY17 Q2 FY16 Q2 FY17 Due to mainte
Slide 21: Emerging home textiles player
Emerging home textiles player Vertically Integrated Diversified Product Range Presence across the value chain from spinning to processing Sheeting Filled Articles Pillows State-of-the-art home textiles facility at Vapi Sheet Quilted Flat Sheets Pillows Best of plants and equipment source
Slide 22: Geographical spread in Sheeting Business
Geographical spread in Sheeting Business Canada 3% 8% Europe 76% United States 8% 1% Israel India 4% Australia Marquee Home Textile Clients across Globe With continued focus in US Market, target to expand in other geographies like Australia and Europe Plan to realign customer mix and introduce v
Slide 23: Agenda
» Q2 FY17 Financial Highlights » Our Business Philosophy » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 24: Profitability highlights
Profitability highlights In Rs crore Particulars Q2 FY17 Q2 FY16 % Change Sales 705 694 1% Operating Expenses 525 544 EBITDA 180 150 20% EBITDA Margin 25.6% 21.6% 407BPS Depreciation 22 20 10% EBIT 158 130 23% Interest 33 44 -24% Exceptional Items 3 -- -- Profit Before Tax 122 86 42% Tax 32 36 -11%
Slide 25: Efficient cash flow management
Efficient cash flow management • Spent Rs. 180 Crore • Reduced debt by Rs. • Paid Rs. 42 Crore as • Contributed Rs. 56 on growth projects 25 Crore compared dividend to Crore to Government • Inorganic – 143cr to March 16 Shareholders exchequer as direct • Textiles - 37cr taxes • On track to achieve •
Slide 26: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and