Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Q1 FY22 Earnings Presentation
36 slides from Chemcon Speciality Chemicals's earnings presentation, Aug 10, 2021
Slide 1: Exchange filing cover letter for investor presentation
cHE C0X @H@me@m Speciality Chemicals Limited I REACH CIN : U24231 GJ1988PLC011 652 August 10, 2021 To, To, BSE Limited National Stock Exchange of India Limited Listing Compliance & Legal Regulatory Listing & Compliance Phiroze JeejeebhoY Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Stree! Mum
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – August 2021
Chemcon Speciality Chemicals Limited Investor Presentation – August 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemcon Speciality Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q1 FY22 Highlights
Q1 FY22 Highlights
Slide 5: Business Highlights
Business Highlights “The new financial year has been presented with a new set of challenges led by second wave. We have seen mixed reactions from our clients. It did not dent our pharma chemicals business as compared to last year, but it certainly halted the business momentum of bromides which was h
Slide 6: Quarterly Highlights
Quarterly Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +28.1% +51.8% +25.3% 71.5 23.3 22.8 15.6 16.5 15.5 61.5 64.8 20.8 57.2 17.9 13.4 45.7 13.9 8.8 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Geographic-Wise (%) Busines
Slide 7: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q1 FY22 Q1 FY21 Y-o-Y Revenue from Operations 57.2 45.7 25.3% Cost of Goods Sold 27.5 24.8 Employee Cost 4.3 3.2 Other Expenses 7.6 3.7 EBITDA 17.9 13.9 28.1% EBITDA Margin 31.2% 30.5% Other Income 1.9 0.3 Depreciation 1.5 1.3 EBIT 18.3 13.0 41.0% Financ
Slide 8: Company Overview
Company Overview
Slide 9: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality 3rd Largest Manufacturer of HMDS Chemicals Worldwide An ISO 9001:2015 and ISO Largest Manufacturer of CMIC in India 14001:2015 Certified Company Business Vertical: Pharmaceuticals 2nd Largest Manufact
Slide 10: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15 » Company » First sale of few » Commenced HMDS » First export shipment of » First sale of CMIC » First sale of Calcium incorporated as chemical products Business in 2001 HMDS Bromide (Solution) Gujarat Quinone • Pyridine Private Limited Hydrobromide » Di
Slide 11: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » United Arab America Emirates FY21 Export FY18-FY21 Contribution*: CAGR: » Italy » Serbia ~29% ~17% » South Korea » Russia » Germany » Spain » People’s Republic of » Thailand China » Malaysia » Japan Over Two Decades of • Manuf
Slide 12: Entry Barriers
Entry Barriers Complex Chemistry Stringent Impurity Measure » The involvement of complex chemistry in » Our processes and products are subject to, and the manufacture of the Products, which is measured against, high quality standards and difficult to commercialize on a large scale stringent impurity
Slide 13: Key Long-Term Relationships
Key Long-Term Relationships Pharmaceutical Chemicals Oilwell Completion Chemicals Inorganic HMDS CMIC Bromides Shree Radha CC Gran Limited Overseas Liability Company New Product Longstanding Clients Strong Base New Customer Reach Development Leading to Few customers Top 7 customers has Well equipped
Slide 14: Moving up the Value chain
Moving up the Value chain Added New Product like FY15 Revenue FY21 Revenue Business 4 CBC, 2,5 DHT & Others Rs 64 Crs Rs 243 Crs Commenced CMIC business in 2014 CMIC Rs 10 Crs Rs 84 Crs HMDS Rs 36 Crs Rs 121 Crs Commenced HMDS business in 2001 Bromides Rs 13 Crs Rs 31 Crs Commenced Bromide business
Slide 15: Board of Directors : Experienced Team
Board of Directors : Experienced Team Kamalkumar Rajendra Aggarwal Navdeep Naresh Goyal Chairman and Managing Director Deputy Managing Director » Holds Diploma in Petrochemical Technology (Plastic » He is currently associated with SILPL in the capacity of Technology) from the Maharaja Sayajirao Univ
Slide 16: Board of Directors : Independent Directors
Board of Directors : Independent Directors Lalit Chaudhary Devendra Rajkumar Mangla Independent Director Independent Director » He holds a bachelors’ degree in commerce from the Sardar » He holds a bachelor’s degree in commerce from the University Patel University, Gujarat of Delhi. He is currently
Slide 17: Strong Rating Profile
Strong Rating Profile » Upgrade Dun & Bradstreet CRISIL Rating BBB / Stable BBB + / Stable 5A2 / Good Rating » 2018-2020 » Sep,2020 » Oct,2020 The ratings process highlighted the following factors D&B Rating: 5A2 » Extensive experience of promoters in the industrial chemical industry, and robust fin
Slide 18: Key Certifications
Key Certifications Key Certificates R&D Environment In-house laboratory to test Complying All Environment Laws » Raw materials procured » The Environment (Protection) Act, 1986 » New Products & Innovation » Water Prevention and Control of Pollution Act » Final products testing at the various stages
Slide 19: Product Overview
Product Overview
Slide 20: Market Overview
Market Overview Oilwell Completion HMDS CMIC Chemicals Global Market ~35,700 MT ~6,880 MT ~362,000 MT Capacity Global Market ~25,390 MT ~3,927 MT ~246,000 MT Production (CY19) Chemcon Production 3,033 MT 1,796 MT 2,011 MT (FY21) Chemcon Share in > 10% > 40% ~1% Global Market Domestic Import (CY19) ~
Slide 21: HMDS
HMDS Hexamethyldisilazane / Hexamethyldisilane » HMDS, an organosilicon compound, is a reagent and a precursor to bases that are popular in organic synthesis and organometallic chemistry » HMDS is widely used in the pharmaceutical industry as a silylating agent in the process of manufacture of pharm
Slide 22: CMIC
CMIC Chloromethyl Isopropyl Carbonate » CMIC (chloromethyl isopropyl carbonate) is an antiviral drug intermediate product, which is a key intermediate for anti-AIDS and anti-hepatitis B drug Tenofovir » The downstream product of chloromethyl isopropyl carbonate, Tenofovir is a nucleotide antiviral d
Slide 23: Oilwell Completion Chemicals
Oilwell Completion Chemicals Inorganic Bromides: Calcium Bromide, Zinc Bromide and Sodium Bromide » Oilwell Completion Chemicals are used to complete the well and is normally a salty solution made up of chlorides or bromides » In addition to cleaning the wellbore, after the drilling is finished, com
Slide 24: Manufacturing Facilities
Manufacturing Facilities » P4 » P6 » P7 » P5 » P8 » P9 » P1 » New Land » P3 » P2 Improving Dedicated Plants Multipurpose Plants In-house Laboratory Warehouses Efficiencies 23
Slide 25: Manufacturing Facilities
Manufacturing Facilities 2 Proposed Expansion Plants Located at Manjusar near 7 Operational Plants 3 Owned + 5 Lease Warehouses under process Vadodara, Gujarat Installed Capacity Volume Reactor Plant No Product categories Product Manufactured (MT P.A) Capacity (In KL) 2 Marketing Offices in Mohali &
Slide 26: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We intends to build two additional plants with a total volumetric reactor capacity of » India is net importer of both HMDS and CMIC, with about 40% and 62% of India’s 251.00 KL at P8 & P9 unit. These additional plants shall be utilised for the
Slide 27: Way Forward
Way Forward Moderate Recovery Exploring Strong Growth in in Opportunities in Pharma Industry Oil Industry New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 26
Slide 28: Financial Highlights
Financial Highlights
Slide 29: Financial Trend
Financial Trend Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +15.6% +21.6% +28.8% 303.3 81.1 56.4 262.1 66.1 70.3 48.9 243.5 43.0 157.6 45.1 26.4 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 11,118 Others 2% 6% 3% 13%
Slide 30: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) 130 131 121 107 84 88 65 56 48 33 34 31 HMDS CMIC Oilwell Production Volume 2018 2019 2020 FY21 (MTPA) 8,248 5,847 6,039 2,915 3,033 1,674 1,796 2,011 1,588 1,196 1,076 808 HMDS CMIC Oilwell 29
Slide 31: Key Ratios
Key Ratios Fixed Asset Debt/ equity (x) Turnover(x) 0.35 7.7 0.32 0.31 5.3 5.5 3.7 0.01 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 ROCE (%) ROE (%) 61% 49% 45% 49% 34% 35% 21% 16% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 30
Slide 32: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) FY21 FY20 Y-o-Y Revenue from Operations 243.5 262.1 -7.1% Cost of Goods Sold 118.2 148.9 Employee Cost 15.9 14.0 Other Expenses 28.3 28.8 EBITDA 81.1 70.3 15.5% EBITDA Margin 33.3% 26.8% Other Income 4.6 4.0 Depreciation 6.1 4.6 EBIT 79.7 69.6 14.5% Fina
Slide 33: Balance Sheet
Balance Sheet ASSETS (Rs. Crs) Mar-21 Mar-20 EQUITY AND LIABILITIES Mar-21 Mar-20 Non-Current Assets EQUITY AND LIABILITIES a) Property, Plant And Equipment 65.5 51.2 Equity a) Equity Share Capital 36.6 31.8 b) Capital Work in Progress 8.5 0.0 b) Other Equity 317.1 114.6 c) Right Of Use Asset 1.4 1.
Slide 34: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Crs.) Mar-21 Mar-20 Net Profit Before Tax 76.1 64.9 Adjustments for: Non Cash Items / Other Investment or Financial Items 6.4 7.4 Operating profit before working capital changes 82.4 72.4 Changes in working capital -1.8 -43.2 Cash generated from Operations 80.6 2
Slide 35: Utilisation of the Net IPO Proceeds
Utilisation of the Net IPO Proceeds Original Cost Utilisation Upto Unutilisation Amounts Particulars Revised Cost (as per Prospectus) 30-06-2021 as on 30-06-2021 Capital expenditure towards expansion of Manufacturing Facility 41.0 41.0 25.6 15.4 Incremental working capital requirement 90.0 90.0 40.0
Slide 36: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – U24231GJ1988PLC011652 Mr. Rajesh Gandhi - CFO Email – rajesh@cscpl.com www.cscpl.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shrikant Sangani / Ms. Pankti Majithia Email - shrikant.sangani@sgapl.net/ pankti.majithia@sgapl.
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