Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q1 FY2020-21 Earnings Presentation
18 slides from Tata Chemicals's earnings presentation, Jul 31, 2020
Slide 1: Q1 FY20-21 Financial Results
Q1 FY20-21 Financial Results Analyst and Shareholders Communication 31 July 2020 1
Slide 2: Agenda
❶ Soda Ash Market Overview ❷ Our Focus Areas ❸ Performance Highlights ❹ Financial Performance Manufacturing With 13 Supported by 3 Employing ~5,000 Footprint across 4 Manufacturing R&D centers with people Continents plants 200 + experts 2
Slide 3: Soda Ash: Global Demand situation
Soda Ash: Global Demand situation Market Size shrinks; Led by Flat Glass Industry Total (Down 3.8 MMT vs 2019) Total • Capacity is estimated to be operating at ~80% vs. historic of 61.9 MMT 58.1 MMT ~86%; Demand reduction of 6% vs 2019 • Reduction in demand from Flat Glass Industry is estimated 20.4
Slide 4: Soda Ash: Demand and Supply
Soda Ash: Demand and Supply Steep fall in US Export, other regions see muted demand TCL Split between Impact on TCL Business Units Key Highlights Domestic & Exports Vols. (In Kts) Performance • Demand is returning, but growth subdued 163 118 • Flat Glass industry tend to de grow, it’s operations sta
Slide 5: Focus Area: Long Term Priority
Focus Area: Long Term Priority Tata Chemicals Limited Mission : Serving Society through Science Vision: Will be a leading sustainable Science led Company serving customers based on innovative differentiated products and solutions Performance Nutritional Materials Science Science Science Energy Agro
Slide 6: Investment Alignment with Strategy
Investment Alignment with Strategy Mar20 Mar21 Mar22 Mar23 Delay in Months IVSD Investment continues No Change as planned Higher Growth Bicarb No Change Products Agro Sciences No Change Soda Ash Upto 9 months Investment under Stable watch Growth Caustic Upto 12 month Product Cement Upto 12 month Ext
Slide 7: Performance Highlights
Performance Highlights Revenue EBITDA Soda Ash Volumes CY CY Q1 FY 21 624 Kts INR 2,348 Cr INR 360 Cr Q1 FY 20 833 Kts ↓ 9% vs PY Margin 15% IVSD Salt Volumes ↓ 460 bps vs PY Q1 FY 21 298 Kts Q1 FY 20 237 Kts Completed refinancing of loan in US for USD 375 million Consolidated Net Debt Highest ever
Slide 8: Financial Performance: For the quarter ended June 2020
Financial Performance : For the quarter ended June 2020 Standalone | ₹ Crore Operational PBT Non Operational PBT 750 250 30% 250 40% 700 26% 25% 25% 29% 30% 650 719 200 20% 250 200 17% 20% 600 10% 628 159 15% 150 150 550 200 0% 10% 500 206 -10% 189 150 100 100 39 5% 450 156 0% 100 109 -20% 400 133 5
Slide 9: Segment Revenues and Results
Financial Performance : Segment Revenues and Results Consolidated Standalone ₹ Crore Q1 Jun19 Q1 Jun20 Variance Q1 Jun19 Q1 Jun20 Variance Basic Chemistry Products 1,949 1,672 (277) 708 612 (96) Segment Revenue Specialty Products 634 676 42 11 16 5 Less: Inter Segment Revenue (3) (3) (0) - - - 2,580
Slide 10: Financial Performance: Revenue Movement
Financial Performance : Revenue Movement Revenue Movement | ₹ Crore 2,60 0 → On consolidated financials impact on Revenue 96 from Operation is majorly driven by US 5 2,50 0 operations. 2,40 0 226 → Export sales volumes in US operations is 62 2,30 0 2,584 impacted (↓ 45% vs PY) partially due to COVID
Slide 11: Financial Performance: PBT Movement
Financial Performance : PBT Movement PBT Standalone Movement | ₹ Crore → Standalone Other Income Breakup: 350 300 Standalone Q1 FY20 Q1 FY21 250 Dividend Income from JV 72 - 200 159 Dividend Income from Subsidiaries 26 - 150 292 Interest & Miscellaneous Income 60 39 100 52 23 159 39 50 133 104 - → O
Slide 12: Borrowing Position as on June 2020
Financial Performance : Borrowing Position as on June 2020 Consolidated Debt Position | ₹ Crore 589 95 3,258 7,702 7,018 3,760 Gross Debt Mar20 Net Change Revaluation Gross Debt Jun20 Cash & Cash Equivalents Net Debt • Refinancing of debt in US for USD 375 million completed • Partial repayment of Bo
Slide 13: Financial Performance: Basic Chemistry Products
Financial Performance: Basic Chemistry Products Key Highlights Segment Revenue at ₹ 1,672 Cr (down by 14%) • Revenue at ₹ 612 Cr (down by 14%), operating margins were subdued at ₹ 159 Cr (26%), Segment Results at ₹ 112 Cr (down by 65%) 3,00 0 1,00 0 down from ₹ 204 Cr (29%) vs PY. India • 900 Operat
Slide 14: Financial Performance: Specialty Products
Financial Performance : Specialty Products Key Highlights Segment Revenue at ₹ 676 Cr (up by 7%) Segment Results at ₹ 93 Cr (up by 24%) Specialty • Specialty products business had a challenging first quarter for the year FY21. Overall 2,00 0 180 Products Revenue increased to ₹ 16 Cr (up by 48%), on
Slide 15: Financial Performance: Operating Entities
Financial Performance : Operating Entities Statement of Profit and Loss (Continuing Operations) for the quarter ended June 2020 Units TCL India US UK Africa Rallis Consolidated ₹ Crore PY CY PY CY PY CY PY CY PY CY PY CY Net Income 719 628 845 619 307 316 126 100 623 659 2,584 2,348 EBITDA 189 156 1
Slide 16: Major Products
Financial Performance : Major Products Soda Ash | In Kts Sodium Bicarbonate | in Kts Edible Salt* | in Kts TCL India TCNA TCE TCM TCL India TCE For the Quarter 63 57 79 57 68 62 76 79 24 30 24 30 539 387 549 298 309 372 237 244 27 21 27 18 163 118 193 117 Jun-19 Jun-20 Jun-19 Jun-20 Jun-19 Jun-20 Ju
Slide 17: Additional Information
Financial Performance : Additional Information Revenues | ₹ Crore & PAT | In % Earnings Price Per Share | In ₹ 2,771 2,623 3,00 0 25% 14.0 2,584 11.7 2,50 0 2,378 2,348 12.0 20% 10.0 2,00 0 15% 7.3 1,50 0 14% 8.0 6.2 6.6 6.0 10% 1,00 0 9% 8% 8% 4.0 5% 500 3% 2.0 0.5 - 0% - Q1 FY20 Q2 FY20 Q3 FY20 Q4
Slide 18: Advancing Science. Creating Value.
TATA CHEMICALS TATA Advancing Science. Creating Value. For any question/queries please contact & John Mulhall 3 jmulhall@tatachemcals.com & +91 22 6665 8282 & Sameer Kulkarni BS sakulkarni@tatachemicals.com & +91 22 6665 7942 & Gavin Desa &s gavin@cdr-india.com & +91 22 6645 1237 & Suraj Digawalekar