Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Q3 FY2021 Earnings Presentation
21 slides from Fineotex Chemical's earnings presentation, Jan 23, 2021
Slide 1: Fineotex Chemical Limited cover letter to exchanges
FINEOTEX® A Speciality Cher Public Listed pany n 1 Chap, on) RE 3. = 180 14001 45001 84 gga? 23" January, 2021 To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J. Towers, Dalal Street, Exchange Plaza, Ba
Slide 2: Q3 and 9M FY2021 Earnings Presentation
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Q3 and 9M FY2021 Earnings Presentation Drilling Specialties Textile Specialties Home Care and Hygiene Specialties Other Specialties
Slide 3: Key Themes: Q3 and 9M FY2021
Key Themes: Q3 and 9M FY2021 • Q3 FY21 consolidated revenue from operations of Rs. 583 mn, up 12.1% YoY • Q3 FY21 consolidated profit after tax of Rs. 134 mn, up 65.5% YoY Financial Performance • Fineotex continues to optimise operating costs and focus on profitable growth in a challenging business
Slide 4: Q3 FY2021 Consolidated Financial Highlights
Q3 FY2021 Consolidated Financial Highlights Performance Discussion: Rs 583.5 mn Rs 136.2 mn Rs 134.0 mn • Q3 FY21 revenue growth was driven by gradual Total Revenue EBITDA Net Profit increase in order book from our leading customers 40.1% 23.3% 23.0% • Focus on speciality finishing chemicals and inc
Slide 5: Chairman’s Message
Chairman’s Message “Our resilience was tested in the past few quarters and Fineotex has shown perseverance throughout and post the pandemic. This is evidenced in our robust performance for the quarter, with EBITDA and profit after tax increasing 69.8% YoY and 65.5% YoY respectively. There is increas
Slide 6: Consolidated P&L Summary: Q3 and 9M FY2021
Consolidated P&L Summary: Q3 and 9M FY2021 (Rs. Million) Q3 FY21 Q3 FY20 YoY% Q2 FY 21 QoQ% 9M FY 21 9M FY 20 YoY% Revenue from Operations 583.5 520.5 12.1% 547.5 6.6% 1,434.9 1,527.5 (6.1%) COGS 349.6 330.7 5.7% 359.0 (2.6%) 918.3 965.9 (4.9%) Gross Profit 233.9 189.9 23.2% 188.5 24.1% 516.5 561.6
Slide 7: Consolidated Quarterly Performance Trend
Consolidated Quarterly Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 36.5% 39.1% 40.1% 23.3% 34.4% 31.0% 18.2% 17.4% 15.4% 13.5% 547 584 136 521 436 100 304 80 76 41 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY
Slide 8: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 44.5% 25.2% 42.1% 40.3% 21.9% 21.0% 37.3% 36.8% 36.0% 19.0% 19.3% 35.5% 17.4% 17.4% 33.1% 16.2% 1,963 347 342 1,823 277 295 300 266 277 1,344 1,429 1,528 1,435 1,020 1,099 165 F
Slide 9: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies Upcoming brownfield facility at Ambernath, Maharashtra to be future ready for next
Slide 10: Synergistic Business Model
Synergistic Business Model Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applications value
Slide 11: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Operating Facts Strategic Advantages Manufacturing Excellence • FY20 Production • Strategically located plant near key Volume: 20,440 MT port close to Mumbai with • Current Utilisation: 56% logistical advantage to textile hubs across North, West, Sou
Slide 12: Accreditations: Biotex Malaysia
Accreditations: Biotex Malaysia Certificate Value Proposition • Bluesign is recognized as a leading certification for sustainability in the global textile industry. As a partner, Biotex is committed to applying the bluesign system to meet the highest level of safety for both people and environment,
Slide 13: Accreditations: Fineotex India
Accreditations: Fineotex India Certificate Value Proposition • ISO 9001:2015 defines the guiding principles to create efficiencies by aligning and streamlining processes throughout the organization, create new opportunities, meet regulatory requirements, and help organizations expand into new market
Slide 14: Focus on Growth and Diversification
Focus on Growth and Diversification Home Care and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • A unique ‘Mosquito Life Cycle Controller’ ▪ FMCG - branded detergents • Significant potential for offering
Slide 15: Upcoming Facility at Ambernath, Maharashtra
Upcoming Facility at Ambernath, Maharashtra ➢ Located on ~4 acres of land ➢ The facility is progressing as per schedule and is expected to be commissioned in Q1 FY2022 ➢ Proposed deployment of Rs. 270 million ➢ Cater to customer demands in the existing Textile Specialities and fast growing Home Care
Slide 16: Specialty Textile Chemicals Overview
Specialty Textile Chemicals Overview Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Process Sizing Scouring, Washing, Printing, Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, Fixer Product Polyme
Slide 17: New Product Offerings from Biotex
New Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 16
Slide 18: Global Customer Reach
Global Customer Reach • Sales in 60+ countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, USA and Vietnam • 30+ technical marketing experts • 100+ dealers in Indian and International markets FY20 Revenue Mix 52% 48% Facilities at Mahape and Ambernath (upcoming),
Slide 19: Fineotex Investment Case
Fineotex Investment Case Diversified business – top 10 customers contribute to 33% of sales and top 10 products contribute to 18% of sales Management proven acquisition track record: Biotex (73% owned) net profit has grown by a factor of 4x since acquisition in 2011 and de-leveraged into a debt free
Slide 20: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Fineotex Chemical Limited (“Fineotex Chemical” or the Company) future bus
Slide 21: Fineotex Chemical Limited
Fineotex Chemical Limited FINEOTEX CHEMICAL LIMITED (CIN Number: L24100MH2004PLC144295) 42-43, Manorama Chambers, S. V. Road Bandra (West), Mumbai - 400 050, India Phone: (+91 - 22) 26559174 / 75, (+91 - 22) 26559176 / 77 Email: info@fineotex.com www.fineotex.com 20