Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Q1 FY20 Earnings Presentation
32 slides from Aksharchem India's earnings presentation, Aug 13, 2019
Slide 1: Stock exchange covering letter for Investor Presentation August 2019
® Ref: AKSHAR/SE/2019-20/1908/30 August 13, 2019 To, To, Deputy General Manager The Genera] Manager (Listing) Department of Corporate Services Nation;d Stock Exchange oflndia Ltd. BSE Limited 5 th flo~r, Exchange Plaza, st 1 Floor, New Trading Ring Blbt No. C/1, G Block Rotunda Building, P. J. Tower
Slide 2: AksharChem (India) Limited Investor Presentation - August 2019
AksharChem (India) Limited Investor Presentation - August 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (India) 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 se
Slide 4: Result Update
AksharChem . Result Update
Slide 5: Result Highlights – Q1 FY20
Result Highlights – Q1 FY20 Total Volume (MT) Revenue (Rs. In Crs.) EBITDA (Rs. In Crs.) 2,643 80.1 8.5 75.5 2,310 2,217 70.1 5.8 5.4 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Revenues were impacted due to low volumes and softening of prices Volumes were impacted on the
Slide 6: Result Highlights – Q1 FY20
Result Highlights – Q1 FY20 Gross Profit Margins (%) EBITDA Margins (%) PAT Margins (%) 36.3% 37.2% 11.3% 10.0% 35.3% 8.6% 8.4% 6.7% 4.6% Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Q1 FY19 Q4 FY19 Q1 FY20 Gross Profit Margins have remained stable in the range of 35%-37% for the last few quarter
Slide 7: Profit & Loss Statement - Q1 FY20
Profit & Loss Statement* - Q1 FY20 Particulars (In Crs.) Q1 FY20 Q1 FY19 Q4 FY19 Net Revenue from Operations 70.1 75.5 80.1 Raw Material 44.0 48.8 51.0 Employee Expenses 2.4 2.0 2.8 Power & Fuel 7.4 5.6 7.2 Other Expenses 10.4 10.5 13.7 EBITDA 5.8 8.5 5.4 EBITDA % 8.3% 11.3% 6.7% Other Income 1.0 3.
Slide 8: Balance Sheet
Balance Sheet* Assets (In Crs.) Mar-19 Mar-18 Equity & Liabilities (In Crs.) Mar-19 Mar-18 Property, Plant & Equipment 126.0 86.0 Share Capital 8.2 8.2 Capital Work-in-Progress 30.8 25.8 Other Equity - Reserve 249.0 229.5 Other Intangible Assets 0.0 0.1 Intangible Assets under Development 0.2 0.2 To
Slide 9: From the Chairperson’s Desk
From the Chairperson’s Desk At AksharChem, we believe growth is the only constant in dynamic business environment. Innovation is our heritage, the foundation on which our Company is built. Our efforts focus on continuous improvement in products and processes. Our products comply with all internation
Slide 10: Capacity Utilisation
Capacity Utilisation Installed Capacity Production Capacity Utilisation 11,400* 11,400 100 94% 90 9,720 9,720 87% 84% 9,672 9,240 9,240 80% 80% 80 75% 74% 8,441 70 7,800 7,786 7,428 6,881 60 6,000 5,838 5,642 50 40 30 2,386 20 10 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Q1 FY20 * Total Capacity not avai
Slide 11: Expansion Plan
Expansion Plan Existing Capacity Additional Capacity Post Expansion Capacity Proposed Projects (In TPA) (In TPA) (In TPA) ORGANIC PIGMENTS CPC Green 1,920 480 2,400 DYES & INTERMEDIATES H Acid - 1,200 1,200 SPECIALTY CHEMICALS Precipitated Silica - 10,000 10,000 10
Slide 12: Company Overview
AksharChem . Company Overview
Slide 13: We Have Developed The EDGE
We Have Developed The EDGE Largest exporter of VINYL SULPHONE in India with ~ 45% share in exports of this product 22% Revenue CAGR FY13-19 57% Net Worth CAGR FY13-19 83% Exports FY18-19 One of the largest exporters from India and among the largest Net Cash Company players globally for CPC GREEN PIG
Slide 14: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades • CAPEX plan Promoted by Mrs. Became a listed entity announced for CPC CPC Green (Capacity Green, H-Acid & Paru M. Jaykrishna as IPO objective: to fund 1,440 TPA) Division of Precipitated Silica Audichem (India) Pvt. plant capacity . Asahi Songwon . Ltd. expansion from
Slide 15: With Right Products
With Right Products Dye Intermediates Pigments Products Vinyl Sulphone & H-Acid CPC Green Capacity 9,000 TPA 2,400 TPA Usage Intermediate product for Dye Used as colouring agents Manufacturing Key Acentanilide , Caustic Soda & CPC Blue, Aluminium Chloride Raw Materials Other Chemicals & Other Chemic
Slide 16: With Diversified End User Industry
With Diversified End User Industry Plastics Rubber Plastics CPC Green CPC Green CPC Green Ink Plastics Paint CPC Green CPC Green CPC Green 15
Slide 17: With Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 18: With State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness. 17
Slide 19: With Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand Philippines SOUTH Malaysia AMERICA Brazil Indonesia AUSTRALIA South Africa Presence in over 20 countries *Map
Slide 20: Investment on Environment for Sustainable Growth
Investment on Environment for Sustainable Growth Consistent Spending for Pollution Treatment Expenses (In Crs.) 16.0 12.0 11.6 10.8 9.7 FY15 FY16 FY17 FY18 FY19 ➢ It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses ➢ Internationally recognise
Slide 21: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Gautamkumar M. Jain Founder, Chairperson & Mg. Director Independent Director Her role is that of a strategic decision Industrialist with over 41 years and policy maker to ensure growth experience in the chemical industry, past President of the Gujra
Slide 22: With Awards & Accolades
With Awards & Accolades • Trishul Award for the • Top Performer Women • Special Trophy for self • Gold Award for the outstanding export Entrepreneur-NON MSME manufactured direct export outstanding export performance in Panel I: of Dyes of Rs. 25 Crores and performance in Merchant Dyes and Dye above
Slide 23: Business Strategy
AksharChem . Business Strategy
Slide 24: Reinforcing Our Strengths…
Reinforcing Our Strengths… Strong Balance Sheet Net Cash Company as of March 2019. Debt Rating : Care A1+ for short term banking facility & CARE Better Planning A+/CARE A1+ for long term/short Training term bank facilities Achieved 85% capacity Provided training to utilisation through better technic
Slide 25: … and Building a Sustainable Future
… and Building a Sustainable Future 02 04 01 03 Widen our products portfolio Focus on extending our presence in with value added products South East Asia, NAFTA and India to provide geographic hedge Focus on developing strong Maintain extensive supply business relationships with chain network across
Slide 26: Industry Opportunity
AksharChem . Industry Opportunity
Slide 27: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) ➢ The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2020 : 8.4 1. Reduction in support by the Chinese government in terms of +10% ▪ Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 28: Strengths to drive Global Leadership
Strengths to drive Global Leadership AKSHARCHEM is compliant with INTERNATIONAL QUALITY and ENVIRONMENT STANDARDS ▪ Long term quantity contract with leading GLOBAL Customer CUSTOMERS Relationships ▪ Strong Relationship with the customers for more than 2 decades ▪ ZERO Product return till date Superi
Slide 29: Financials
AksharChem . Financials
Slide 30: Key Financial Parameters
Key Financial Parameters In Crs. Net Revenue EBITDA 6% 13% 323 77 248 264 200 188 42 32 34 27 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT Cash PAT 9% 9% 53 58 31 35 23 28 16 17 20 21 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY17 was an exceptional year on the back of Chinese clamp
Slide 31: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 37.7% 47.5% 22.4% 26.8% 19.6% 25.2% 18.6% 12.9% 8.8% 12.8% Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Debt to Equity (x) Current Ratio (x) 2.8 0.4 2.8 0.3 1.7 1.3 0.2 1.1 0.0 0.0 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-15 Mar-16 Mar
Slide 32: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Ms. Neha Shroff / Ms. Khushbu Shah cs@aksharchemindia.com neha.shroff@sgapl.net / khush