Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Q3 FY23 Earnings Presentation
33 slides from Chemcon Speciality Chemicals's earnings presentation, Feb 4, 2023
Slide 1: Stock exchange cover letter for investor presentation
4th February 2023 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 Street, Mumbai - 400 001 Bandra East, Mumbai 400 051 Stock Code: 543233 Stock Symbol: CHEMC
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – February 2023
Chemcon Speciality Chemicals Limited Investor Presentation – February 2023
Slide 3: Safe Harbor
Safe Harbor 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: Q3 & 9M FY23 Highlights
Q3 & 9M FY23 Highlights
Slide 5: Business Highlights
Business Highlights “The company has reported a resilient performance during the quarter with a revenue of Rs 76 crores, a growth of 54% on YoY basis led by an increase in realisation and a stronger contribution from the export market. Our core product, HMDS and CMIC business has continued to remain
Slide 6: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 76.5 17.3 13.5 11.4 57.9 13.5 49.5 9.6 7.8 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 2,323 Others 1% 1% 16% 0% 0% 28% 38% Bromides Exp
Slide 7: Financial Trends
Financial Trends Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 223.8 54.1 56.6 44.6 41.5 168.0 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 5,799 0% 1% Others 22% 4,182 Export 33% 0% 32% 3,129 58% Bromides Bromides 3% 1,743 Bromob
Slide 8: Recent Developments
Recent Developments Recent Developments Land Acquisition Commissioning of Solar Power Plant » Purchased a land parcel at » Commissioned ~2.1 MW solar Gothda, near Vadodara for future power plant at Dabhoi, Vadodara leg of expansion Commercialization P10 unit by Q1FY24 Commercialization P9 unit » It
Slide 9: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q3 FY23 Q3 FY22 Y-o-Y 9M FY23 9M FY22 Y-o-Y Revenue from Operations 76.5 49.5 54.4% 223.8 168.0 33.2% Cost of Goods Sold 49.0 19.6 122.2 79.1 Employee Cost 4.9 5.0 15.5 14.0 Other Expenses 9.1 7.6 29.5 20.8 EBITDA 13.5 17.3 -22.1% 56.6 54.1 4.6% EBITDA M
Slide 10: Company Overview
Company Overview
Slide 11: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality Chemicals 3rd Largest Manufacturer of HMDS Worldwide An ISO 9001:2015 and ISO 14001:2015 Certified Company Largest Manufacturer of CMIC worldwide Business Verticals: Pharmaceuticals & Oilwell Completi
Slide 12: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15-16 » Company was » 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 Hydrobromi
Slide 13: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » Japan America » United Arab FY22 Export Contribution*: » Italy Emirates ~37% » South Korea » Germany » Russia » Spain » People’s Republic of » Thailand China » Malaysia Over Two Decades of • Manufacturing Well Equipped to Seiz
Slide 14: 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 15: 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 Longstanding New Product New Customer Strong Base Clients Development Reach Top 7 customers Leading to increase Few customers age Well
Slide 16: Moving up the Value Chain
Moving up the Value Chain Added New Product like FY15 Revenue FY22 Revenue Business BromoBenzene & Others Rs 64 Crs Rs 257 Crs Commenced CMIC business in 2014 CMIC Rs 10 Crs Rs 68 Crs HMDS Rs 36 Crs Rs 122 Crs Commenced HMDS business in 2001 Bromides Rs 13 Crs Rs 60 Crs Commenced Bromide business in
Slide 17: 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 has more than 11 years of experience in operations. He Technology) from the Maharaja Sayajirao Uni
Slide 18: Board of Directors : Independent Directors
Board of Directors : Independent Directors Lalit Chaudhary Pradeep Agarwal Independent Director Independent Director » Qualified as Chartered Accountant and Company Secretary » He holds a bachelors’ degree in commerce from the Sardar » He is also an Independent Director of Bharat Petroleum Corporati
Slide 19: 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 20: Product Overview
Product Overview
Slide 21: Market Overview
Market Overview Oilwell Completion HMDS CMIC Chemicals Global Market ~35,700 MT ~6,880 MT ~362,000 MT Capacity (CY19) Global Market ~25,390 MT ~3,927 MT ~246,000 MT Production (CY19) Chemcon Production 2,068 MT 1,295 MT 2,703 MT (FY22) Chemcon Share in > 5% > 30% ~1% Global Market Domestic Import (C
Slide 22: 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 23: 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 24: 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 25: Manufacturing Facilities
Manufacturing Facilities » P4 » P6 » P7 » P5 » P8 » P9 » P10 » P1 » P3 » P2 Improving Dedicated Plants Multipurpose Plants In-house Laboratory Warehouses Efficiencies 24
Slide 26: Manufacturing Facilities
Manufacturing Facilities Installed Capacity Volume Reactor Located at Manjusar near Plant No Product categories Product Manufactured (MT P.A) Capacity (In KL) Vadodara, Gujarat P-3 & P-7 HMDS and ancillary products 4,200 177.80 9 Operational Plants P-2 HMDS (hi-purity) 600 13.00 P-4 CMIC 1 Proposed
Slide 27: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We intend to build additional plants P10 unit in Q1 FY24 » India’s current domestic demand is being catered by imports for HMDS and CMIC » These additional plant will manufacture chemicals which are principally used in the » We are the only man
Slide 28: Way Forward
Way Forward Moderate Recovery in Exploring Moderate Growth in Opportunities in Pharma Industry Oil Industry New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 27
Slide 29: Financial Highlights
Financial Highlights
Slide 30: Financial Trends
Financial Trends Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +13.0% +16.0% 303.3 81.1 81.6 +24.2% 62.8 262.1 257.1 70.3 56.4 243.5 66.1 48.9 43.0 157.6 45.1 26.4 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Geographic-Wise (%) Business-wise (%) Production Volume
Slide 31: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) 130 131 121 122 107 84 88 65 68 56 60 48 33 34 31 HMDS CMIC Oilwell FY18 FY19 FY20 FY21 FY22 Production Volume (MTPA) 8,248 5,847 6,039 2,915 3,033 2,703 1,674 2,068 1,796 2,011 1,588 1,196 1,295 1,076 808 HMDS CMIC Oilwell 30
Slide 32: Key Ratios
Key Ratios Fixed Asset Net Debt/ equity (x) Turnover(x) 0.35 7.7 0.32 0.31 5.3 5.5 3.7 3.2 0.09 0.01 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 ROCE (%) ROE (%) 61% 49% 45% 49% 34% 35% 21% 19% 16% 15% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 31
Slide 33: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – L24231GJ1988PLC011652 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.
Chemcon Speciality Chemicals — Q3 FY23 Earnings Presentation on 6ix