Bhageria Industries Ltd. · NSE:BHAGERIA
Bhageria Industries — Q2 FY20 Earnings Presentation
33 slides from Bhageria Industries's earnings presentation, Nov 13, 2019
Slide 1: Covering letter to stock exchanges
BHAGERIA INDUSTRIES LIMITED Tel.: 91-22-4043 6666 REGO. OFF.: OFFICE NO. 1002, 10TH FLOOR, TOPIWALACENTRE, OFFS. V. ROAD, Email : info@bhageriagroup.com NEAR GOREGAON RAILWAY STATION, GOREGAON (WEST), MUMBAI - 400 062. Website : www.bhageriagroup.com CIN: L40300MH1989PLC052574 November 13, 2019. To,
Slide 2: Investor Presentation Q2 & H1FY20 Performance
BHAGERIA INDUSTRIES LTD INVESTOR PRESENTATION Q2 & H1FY20 PERFORMANCE
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bhageria Industries 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 s
Slide 4: Agenda
Agenda 01 Q2 & H1FY20 Result Highlights 02 Chemical Segment 03 Solar Segment 04 Corporate Overview 05 Historical Financials 3
Slide 5: Q2 & H1FY20 Result Highlights
Q2 & H1FY20 RESULT HIGHLIGHTS
Slide 6: Q2 & H1FY20 Profit & Loss statement
Q2 & H1FY20 Profit & Loss statement Rs Cr Q2FY20 Q2FY19 % Change H1FY20 H1FY19 % Change Net Sales 108.4 125.5 -13.6% 209.8 238.8 -12.1% -Chemical 93.1 118.8 185.4 223.5 -Solar 5.5 6.7 14.6 15.3 - Other 9.9 - 9.9 Cost of Goods Sold 69.2 63.6 127.1 130.6 Employee Benefit Expense 3.3 3.2 6.7 6.0 Other
Slide 7: Balance sheet
Balance sheet Rs Cr Sep’19 Mar’19 Rs Cr Sep’19 Mar’19 Share Capital 21.8 10.9 Fixed Assets incl. CWIP 334.5 301.9 Reserves 348.7 331.5 Non-Current Investments 0.5 0.5 Shareholders' Funds 370.5 342.4 Long Term Loans & Advances 4.4 19.6 Deferred Tax Liabilities 48.3 50.2 Total Non-Current Assets 339.3
Slide 8: Debt free
Debt free Financials in Rs Cr 145 Debt repaid since 122 Mar’17 from internal (Rs cr) accruals 86.9 83 38.7 42 2.2 52.6 34 36.8 23 5.4 10.7 3.2 Mar'17 Mar'18 Sept'18 Mar'19 Long term solar debt Working capital loan Short term solar debt 7
Slide 9: Brownfield capex of Rs.100 crs over 2 yrs
Brownfield capex of Rs.100 crs over 2 yrs Phase Phase Phase 1 2 3 Manufacturing of Backward Expansion of the Pigments Integration basket of Dye Intermediates Intermediates » 300 TPD of Sulphuric Acid » 4,500 MTPA capacity of J- » 4,500 MTPA capacity & Derivatives to be Acid & Tobias to be » 3.4 acre
Slide 10: Chemical Segment
CHEMICAL SEGMENT
Slide 11: Leading manufacturer of dye intermediates
Leading manufacturer of dye intermediates Market share of total global capacity Gamma Acid H-Acid Vinyl Sulphone ~30% ~10% ~5% Amongst the leading 3 ~9,500 TPA Total Capacity of Dye Intermediates 3 manufacturers of H- Acid and Gamma Acid 10
Slide 12: ..With margin leadership in the industry
..With margin leadership in the industry Cost optimization 95%+ Capacity Consistently strong through various utilisation EBITDA margins initiatives EBITDA Margin (%) » Sourcing of raw materials - Bulk purchases which saves cost; proximity to sources of raw material 27.0 » Strategically located close
Slide 13: Zero discharge manufacturing facilities
Zero discharge manufacturing facilities Vapi, Gujarat - Vinyl Sulphone Boisar, Maharshtra - H-Acid/Gamma Acid » Located in chemical belt of Gujarat » Spread over 25 acres; land available for expansion » Best pollution control facilities » Captive solar power plant 12
Slide 14: Exports contribute 36% of revenues (chemical biz)
Exports contribute 36% of revenues (chemical biz) For FY19 Europe Rest Of Asia 3% Domestic Exports 66% 64% 36% China US 29% 2% » Increasing geographical diversification » Adding newer geographies & clients: Increased penetration to the China & other Asian markets 13
Slide 15: Long term client partnerships
Long term client partnerships Domestic Clients Global Clients PT Sinar Domestic Clients 14
Slide 16: Solar Segment
SOLAR SEGMENT
Slide 17: Solar projects overview
Solar projects overview » 25 year PPA with Solar Energy Corporation of India (SECI) 30MW solar project in » Capacity - 30MW Maharashtra » Tariff – Rs 4.41/unit (commissioned in FY18 end) » Total project capex – Rs 180 cr » FY19 revenue – Rs 28.30 crore » 25 year PPA with Asahi India Glass Ltd, TRIL
Slide 18: 30MW solar project rationale and economics
30MW solar project rationale and economics FY19 Unit Value AC Capacity MW 30 DC capacity MW 39 » Annuity income – Rs 26 crore Energy generated Kwh in crore 6.42 EBITDA every year Energy charge Rs/kwh 4.41 » PLF -19% Revenue Rs crore 28.30 » The investment was driven by lack of alternate investment O
Slide 19: Corporate Overview
CORPORATE OVERVIEW
Slide 20: Company overview
Company overview Rs 462 FY19 Revenue FY19 EBITDA margin 68% 3 year Profit cr 27% Margin leadership in After Tax (PAT) 25% 3 year CAGR CAGR the industry Return on Cash Flow from Debt Only working 28% capital employed Rs 137 Operations (CFO) free capital loan cr Dye intermediate 2 manufacturing 10+ Sh
Slide 21: History and evolution
History and evolution » Merged Nipur Chemical » Crossed Rs 70 crores of PAT » Listed on NSE » Expansion - H-Acid & » Formulated dividend Gamma Acid policy » Started exporting to » Initiated Rs 100 crore Japan & other capex for backward developed countries » Expanded capacity of integration, new prod
Slide 22: Promoters with significant industry experience
Promoters with significant industry experience Suresh Bhageria Vinod Bhageria Vikas Bhageria Chandraprabha Bhageria Chairman Managing Director Jt. Managing Director Executive Director » Has experience of more » Has experience of more » Experience of more » Has an experience of than 30 years in the t
Slide 23: Supported by Board of Directors
Supported by Board of Directors SP Tulsian Mukund Chitale Independent Director Independent Director » A renowned market analyst with rich » A renowned CA with over 40 years of experience of over 36 years; a commerce experience on advising companies on their and law graduate, holds professional busin
Slide 24: Award and accreditations
Award and accreditations CHEMEXCIL CHEMEXCIL CHEMEXCIL First Award Gold Award Award for Outstanding Performance in the Small Scale Sector Dyes & Dyes Export of Dyes & Dye Year 2015-16 Intermediaries Panel Intermediates Panel Year 2007-08 Year 2006-07 23
Slide 25: CSR activities
CSR activities Heath & Safety Village Sanitation Eye Care Donated cataract operation Installed water purification equipments to Param Shakti Construction of toilets at plant at Kamptee & Mauda Peeth, a non-profit Kachhi Gaam, Vapi at Nagpur organization serving the underprivileged in Mathura Rs 1.04
Slide 26: Focus on Safety, Health & Environment
Focus on Safety, Health & Environment Safety Health Environment » Safety representative For » Air pollution Management each plant. » In-house occupational » Member of CETP,TEPS & » Fire hydrant for each plant Health Center MWML » Safety training » Part time doctor » Recover & re-use » Classroom trai
Slide 27: Historical Financials
HISTORICAL FINANCIALS
Slide 28: Statement of Profit & Loss
Statement of Profit & Loss Rs Cr FY19 FY18 % Change Net Sales 462.4 366.8 26.1% Cost of Goods Sold 271.4 218.1 Employee Benefit Expense 13.5 12.8 Other Expenses 52.7 56.1 Total Expenses 337.5 287.1 17.6% EBITDA 124.9 79.8 56.5% EBITDA margin 27.0% 21.8% Other Income 5.3 11.5 Depreciation 22.2 22.9 I
Slide 29: Segment result highlights
Segment result highlights Rs Cr FY19 Chemical Solar Net Sales 462.4 429.3 33.1 EBITDA 124.9 107.5 29.0 EBITDA margin 27.0% 25.0% 87.5% Depreciation 22.2 4.7 16.9 EBIT 102.7 102.8 12.1 Capital Employed 365.9 197.3 180.9 RoCE 28.1% 52.1% 6.7% High RoCE of core chemical business Notes: 1. Total of segm
Slide 30: Balance Sheet
Balance Sheet Rs Cr Mar’19 Mar’18 Rs Cr Mar’19 Mar’18 Share Capital 10.9 7.9 Fixed Assets incl. CWIP 301.9 303.6 Reserves 331.5 287.4 Non-Current Investments 0.5 0.5 Shareholders' Funds 342.4 295.3 Long Term Loans & Advances 19.6 4.7 Long Term Borrowings - 9.2 Total Non-Current Assets 321.9 308.8 De
Slide 31: Revenue & profitability
Revenue & profitability In Rs cr Revenue EBITDA Profit After Tax (PAT) 462 124.9 71.5 374 367 79.9 62.4 43.5 40.3 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 EBITDA Margin PAT Margin Earning per share (Rs) 27.0% 15.5% 32.73 21.8% 11.6% 11.0% 23.02 16.7% 18.45 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18
Slide 32: Rewarding shareholders
Rewarding shareholders Return on Equity Return on Capital Employed Dividend % % Rs in Cr 28.1 13.1 20.9 12.0 16.4 13.7 8.0 15.1 13.8 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Announced a bonus issue in the ratio of 1 : 1 in July 2019 31
Slide 33: Thank you
THANK YOU Bhageria Industries Pareto Capital (Investor relations advisor) Mr. Rakesh Kachhadiya, CFO Ms. Pooja Dokania/ Mr. Arpit Gandhi accounts.mumbai@bhageriagroup.com pooja.dokania@paretocapital.in / arpit.gandhi@paretocapital.in 1002, 10th Flr, Topiwala Centre, Goregaon (W), Mumbai B/ 210, Kana