Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q1 FY2023 Earnings Presentation
31 slides from Meghmani Organics's earnings presentation, Jul 22, 2022
Slide 1: Meghmani Organics Limited exchange filing cover letter
MEGBMANI ORGANICS LIMITED Chemistry of Success at Work Ref: MOL/2022-23/35 July 22, 2022 To National Stock Exchange of India Limited BSE Limited "Exchange Plaza", Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 De
Slide 2: Q1 FY23 Results Presentation
Meghmani Organics Limited (Erstwhile known as Meghmani Organochem Limited) Q1 FY23 Results Presentation July 2022 www.meghmani.com
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 4: Discussion Summary Q1 FY23 Results Update
Discussion Summary Q1 FY23 RESULTS UPDATE 3
Slide 5: Q1 FY23 revenue grew 58% YoY to Rs. 7,831 million
Meghmani Organics Ltd. (MOL) revenue grew by 58% YoY to Rs. 7,831 million in Q1 FY23 aided by higher capacity utilization & better realization from the Agrochemical business. The agrochemical business continuues its robust performance. The pigment business has reported moderate performance due to th
Slide 6: Q1 FY23 Results: Key Highlights (Standalone)
Q1 FY23 Results: Key Highlights(Standalone) Rs Mn Q1 FY23 YoY Analysis Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 44.0% 44.0% 17.6% 17.1% 14.0% 15.0% 7,831 58% 53.5% 1,341 67% 1,139 4,957 874 682 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 5
Slide 7: Q1 FY23 Results: Pigments Business
Q1 FY23 Results: Pigments Business Rs Mn Q1 FY23 YoY Analysis Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 83% 81% 85% 84 % 700 9,000 50.0% 15.0% 30.0% 8,000 6,844 6,691 0.0% 2,500 2,196 600 11.0% 20.0% 7,000 -50.0% 2,000 1,744 500 10.0% 6,000 0.0% 400 5,00
Slide 8: Q1 FY23 Results: Agrochemicals Business
Q1 FY23 Results: Agrochemicals Business Rs Mn Q1 FY23 YoY Analysis Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 81% 89 % 20,000 88% 110.0% 2,500 40.0% 18,000 75% 90.0% 2,200 21.9% 22.3% 30.0% 16,000 8,000 1,900 14,000 11,525 70.0% 7,000 5,634 20.0% 12,000 9
Slide 9: Q1 FY23 Results: Profit & Loss Statement
Q1 FY23 Results: Profit & Loss Statement Particulars (Rs. in Mn) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QoQ% FY 22 Revenue from Operations 7,831 4,957 58.0% 8,134 -3.7% 24,940 COGS 4,385 2,775 58.0% 4,795 -8.6% 14,539 Gross Profit 3,446 2,182 57.9% 3,339 3.2% 10,401 Gross Margins % 44.0% 44.0% (2 bps) 41.0% 2
Slide 10: Balance Sheet Statement
Balance Sheet Statement Particulars (Rs. in Mn) Mar 22 Mar 21 Particulars (Rs. in Mn) Mar 22 Mar 21 Equity & Liabilities Assets Share Capital 254 254 Property, Plant & Equipment 7,317 6,286 Reserves & Surplus 14,146 11,418 Capital WIP 1,792 1,059 Shareholder's Funds 14,400 11,673 Intangible Assets 1
Slide 11: About Us
CHEMISTRY OF SUC ABOUT US
Slide 12: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals • Started in 1986 • Started in 1995 • Amongst top 3 global Phthalocyanine based pigment players • Among Top 10 producers of pesticides in India • 14% global market share • Products across entire value chain • FY22 R
Slide 13: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 14: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Strong & lean Balance Sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 19.0% 01 04 • ROCE – 12.2% in FY18 to 19% in FY22 over FY18-22, with higher contribution • ROE – 11.6%
Slide 15: Key Milestones
Key Milestones Foray into Titanium Dioxide (TiO2) pigment with Kilburn 2021 - 22 Chemicals acquisition Commissioned 2 New Plants in Agro Division: Doubling the capacity of 2,4-D to 21,600 TPA & New Formulation Plant 2020 - 21 Setting up new Multipurpose Plant (New Molecules) Independent list
Slide 16: Business Overview
MeL CHEMISTRY OF SUCCESS AT WORK
Slide 17: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with 14% global market share & amongst top 3 (capacity wise) global Total Capacity – 33,180 TPA pigments players Capacity Location Pr
Slide 18: Titanium Dioxide (TiO2): Industry Overview
Titanium Dioxide (TiO2): Industry Overview Titanium Dioxide (TiO2): Snapshot Domestic Market Size (MTPA) • Titanium Dioxide (TiO2) is a naturally occurring white opaque mineral used a bright white pigment 320,000 300,000 • Key raw materials are ilmenite ore and sulphuric acid 300,000 280,000 • TiO2
Slide 19: Investment Rationale for Kilburn Chemical's Acquisition
Investment Rationale for Kilburn Chemical’s Acquisition Sustainable Growth Diversification into new pigment 01 High profitability boosting the overall return ratios Import Substitution 02 Growing application of Titanium Dioxide (TiO2) in multiple industries Making notable contribution to the
Slide 20: Titanium Dioxide (TiO2): Project Dynamics
Titanium Dioxide (TiO2): Project Dynamics Existing Capacity : 16,500 TPA Proposed Capacity: 33,000 TPA Total Capex: Rs. 600 Cr Expected Revenue post: Expected Commercialization Phase I- Rs. 275 Cr Phase I- Rs.350 Cr Phase I – Q3 FY 23 Phase II- Rs. 325 Cr Phase II- Rs.750 Cr Phase II – Q3 FY 24 Expe
Slide 21: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) Net Sales & Exports* (Rs Mn) 82% 35,000 79 % 81 % 77 % 78 % 29,362 7,555 30,000 25,982 25,226 25,694 25,349 5,877 6,048 6,406 7,100 5,784 25,000 6,100 5,100 20,000 4,100 3,100 15,000 2,100 1,100 10,000 100 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY2
Slide 22: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 50.0 43.0 • Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 35.0 pigments
Slide 23: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Used for captive consumption • Established global presence across Africa, Brazil, LatAm, US and Europe Pesticide Intermediates • Strong pan-In
Slide 24: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) 685 45,000 39,991 646 680 40,000 567 616 35,000 30,000 27,898 356 370 375 307 348 25,000 18,431 18,666 18,145 20,000 15,000 260 268 290 310 310 10,000 5,000 0 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Exports CIB
Slide 25: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 77 Bn by 2030 77.0 • Key drivers - growing population, declining arable land & rising pest 59.8 conc
Slide 26: Strategy & Outlook
STRATEGY & OUTLOOK @® os
Slide 27: Roadmap for achieving 20%+ top-line growth in next 3 years
Roadmap for achieving 20% + top-line growth in next 3 years • Among Top 3 producer of phthalocyanine pigments globally • Continue to focus on increasing domestic presence and capture market share Pigments • Expanding into new geographies • Diversification into new and lucrative white pigment TiO2. •
Slide 28: Financial Overview
FINANCIAL OVERVIEW 27
Slide 29: Financial Snapshot
Financial Snapshot Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 19% * CAGR 22%16.5% 17.2% * CAGR 41% 12.3% 14.5% 15.2% 12.0% 11.9% 44.7% 13.6% 11.4% 3,080 42.1% 42.5% 41.7% 38.0% 3,794 24,940 2,799 2,323 2,363 6.2% 1,921 1,850 16,247 16,234 1,687 12,605 14,104 1,712 7
Slide 30: Financial Snapshot
Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 0.60 0.39 0.27 0.22 0.34 106 112 115 113 76 14,401 6,977 8,380 9,908 11,673 65 77 74 81 73 89 85 92 92 69 4,170 3,265 4,943 2,639 2,619 -48 -50 -51 -60 -67 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Debt Equity D/E Receivab
Slide 31: For Further Queries
For Further Queries: Gurjant Singh Chahal, CFO Bharat Mody, Advisor IR Strategies Sonam Raghuvanshi/ Chintan Mehta, IR Consultants Email: ir@meghmani.com Email: bharat.mody@meghmani.com Contact: 8591190903 / 98921 83389 Phone: +91-79717 61000 Phone: 98980 46584 Email: meghmani@dickensonworld.com