Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q3 FY25 Earnings Presentation
52 slides from Himadri Speciality Chemical's earnings presentation, Jan 13, 2025
Slide 1: Exchange filing cover letter
Ref. No: HSCL / Stock-Ex/2024-25/91 Date: 13/01/2025 E-mail: monika@himadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kurla Complex, Dalal Stree
Slide 2: Investor Presentation | January 2025
Investor Presentation | January 2025
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook New Capex for High Value - Added Speciality Products Awards, Brand Recognition and Achievements ESG-focused innovations Capex – Next Phase of Growth
Slide 5: Q3FY25 Financial Highlights
Q3FY25 Financial Highlights … Add Text Here SALES VOLUMES RECORD EBITDA RECORD PAT IN Q3FY25 IN Q3FY25 IN Q3FY25 Sales Volumes increased by 11% to EBITDA increased by 32% yoy to Rs. PAT increased by 32% yoy to Rs. 142 137,447 MT in Q3FY25 222 Crores in Q3FY25 Crores in Q3FY25 1 2 3 4
Slide 6: 9MFY25 Financial Highlights
9MFY25 Financial Highlights … Add Text Here SALES VOLUMES RECORD EBITDA RECORD PAT IN DEBT FREE DISTINCTIVE ROCE IN 9MFY25 IN 9MFY25 9MFY25 COMPANY Sales Volumes Net positive cash EBITDA increased by PAT increased by 35% increased by 24% to balance of Rs. 109 30% (excl. investment 34% yoy to Rs. 611
Slide 7: Robust growth continues…
Robust growth continues… Sales Volumes (MT) Sales Volume (MT) Revenue (Rs. in Crs) 24% 415,679 335,265 140,317 139,175 139,057 137,447 1,177 1,200 1,135 1,132 124,024 1,053 9MFY24 9MFY25 Revenue (Rs. in Crs) 15% 3,467 3,008 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 9MFY24
Slide 8: …with sustained increase in Profitability
…with sustained increase in Profitability EBITDA (Rs. in Crs) EBITDA (Rs. in Crs) PAT (Rs. in Crs) 34% 611 456 222 142 134 201 9MFY24 9MFY25 188 123 177 115 169 108 PAT (Rs. in Crs) 35% 400 296 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 9MFY24 9MFY25 On Standalone Basis 7
Slide 9: Outcome of strengthening Balance Sheet
Outcome of strengthening Balance Sheet Rs. 25 Crs Rs. 1,780 Crs Rs. 10.86 Crs Rs. 300 Crs Fund based + Non fund Long term/short term Term Loan Commercial Paper based Unallocated Limits ICRA AA- (Stable) ICRA AA- (Stable)/ [ICRA]AA-(Stable)/ ICRA A1+ ICRA A1+ ICRA A1+ (ICRA double A minus; (ICRA A on
Slide 10: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook New Capex for High Value - Added Speciality Products Awards, Brand Recognition and Achievements ESG-focused innovations Capex – Next Phase of Growth
Slide 11: High Value-Added Speciality Products Capex
High Value-Added Speciality Products Capex ESTIMATED CAPEX SOURCE OF FUND COMPLETION Rs. 120 crores Internal Accruals Expected commencement of operations in 18 months PURPOSE Setting up facility to extract high value-added speciality products namely Anthraquinone, Carbazole & Fluorene from existing
Slide 12: Market Dynamics of our new High Value-Added Speciality Products
Market Dynamics of our new High Value-Added Speciality Products Himadri will forward integrate its existing coal tar distillates to produce a High Value-Added Speciality Products – Anthraquinone, Carbazole & Fluorene Products Applications Global market Size Anthraquinone Dye, Paper, Wood Pulp, Hydro
Slide 13: Strategic Rationale
Strategic Rationale Delivering high-value specialty chemicals tailored for niche industry applications, paving the way for robust profitability Target Market Our target markets encompass both domestic and global sectors Forward Integration Forward integrating from our existing coal tar distillates t
Slide 14: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook New Capex for High Value - Added Speciality Products Awards, Brand Recognition and Achievements ESG-focused innovations Capex – Next Phase of Growth
Slide 15: Himadri Achieves EcoVadis Platinum Medal
Himadri Achieves EcoVadis Platinum Medal Himadri Speciality Chemical Ltd. proudly announces its recognition with the EcoVadis Platinum Medal, placing the company amon g the top 1% of over 130,000 companies assessed globally for sustainability practices. This distinction reflects the quality of th e
Slide 16: Awards & Accolades
Awards & Accolades 'Company of the Year' at India Chem 2024, by the Dept. of Chemicals and Petro-Chemicals in partnership with FICCI and EY 15
Slide 17: Strengthening Brand Presence Through Industry Events
Strengthening Brand Presence Through Industry Events Showcased our advanced technologies at World Hosted 15th edition of the Carbon Black Perspective in Asia Pacific Association, at Kolkata in October 2024 of Concrete India 2024 16
Slide 18: Building Brand Credibility Through Media Features
Building Brand Credibility Through Media Features Featured by ETAuto Featured in Outlook Magazine 17
Slide 19: Updates on Capex and Acquisition
Updates on Capex and Acquisition Capex / Expansion Capex (Rs. in Crs) Current Status Capex for building the first 1,125 Progressing as planned and is commercial plant of 40,000 MTPA scheduled to be operational by of LFP Cathode Active Material Q3FY27 Expansion of new speciality carbon 220 Scheduled
Slide 20: New Growth Wave
Opportunities in all the phases of journey continues… Existing Products Clean technology & innovation Speciality Carbon Black SNF Anthraquinone Fluorene Anode Agrochemical Material Solutions Coal Tar Speciality LFP Cathode Battery Speciality Carbazole Off-highway Pitch Oils Active Recycling New Grow
Slide 21: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook New Capex for High Value - Added Speciality Products Awards, Brand Recognition and Achievements ESG-focused innovations Capex – Next Phase of Growth
Slide 22: Direct Signatory of UNGC
Direct Signatory of UNGC (United Nation Global Compact) We've joined the United Nations Global Compact (UNGC) as a direct signatory. This marks a pivotal moment for us, as it demonstrates our alignment with global sustainability principles and our commitment to upholding ethical business practices o
Slide 23: Where Sustainability Meets Innovation
Where Sustainability Meets Innovation POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 22
Slide 24: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a 100% of the electrical green, long-term EV and energy requirement being renewable energy solution met by inhouse generated by providing critical raw clean power material Energy Conservation through Waste Heat Recovery Syste
Slide 25: Net Zero Roadmap
Net Zero Roadmap Research Adapt • Explore innovative methods for capturing • Implement new energy sources and and transforming carbon emissions. technology advancements. • Utilize upcoming technologies to capture • Integrate renewable energy solutions for and convert carbon dioxide into value- reduc
Slide 26: Net Zero Roadmap (Scope 1, 2 & 3)
Net Zero Roadmap (Scope 1, 2 & 3) Scope 3 – Baseline Year 2023 (FY23-24) OUR NET ZERO To Scope 1 – Baseline Year 2021 (FY 21-22) AMBITION Scope 2 = 0, Baseline Year 2021 (FY 21-22) Reduce Packaging Emission. Elimination of virgin plastic in Assumption: India will be regulated carbon Reduction of Ups
Slide 27: Sustainability Objectives 2024-25
Sustainability Objectives 2024 – 25 Target Objectives Measures FY 23-24 FY 22-23 Main Domain UNGC -SDGs FY 24-25 Vision Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1(Vs 2021) <1 1.18 2.27 People By 2025, Reduce Energy Intensity per metric tonne of product sold Energy Cons
Slide 28: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook New Capex for High Value - Added Speciality Products Awards, Brand Recognition and Achievements ESG-focused innovations Capex – Next Phase of Growth
Slide 29: Capex – Speciality Carbon Black Expansion
Capex – Speciality Carbon Black Expansion Brownfield expansion of a new speciality carbon black line of 70,000 MTPA CAPEX TO MORE Increasing the total speciality carbon black capacity to 130,000 MTPA making it world’s largest speciality carbon black capacity at single site THAN DOUBLE SPECIALITY CAR
Slide 30: Applications
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades ONYX JETEX ELECTRA KLAREX Speciality Carbon Blacks are Speciality blacks are designed to KLAREX, “clean” speciality blacks Speciality blacks offer low sulfur, premium grades that offer deep provide reliable color a
Slide 31: Applications
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades COLORX BARONX VIRTEX COLORX is a powder black that BARNOX is latest innovation in Virtex black carbon series are for function exceptionally well as a speciality blacks and is a high performance speciality tyres App
Slide 32: Sicona Acquisition- Initiative in line with long term strategy
Sicona Acquisition- Initiative in line with long term strategy Why Sicona Investment • Sicona’s current generation silicon-composite anode technology delivers 50% to 100% higher capacity than conventional graphite anodes Sicona is an innovative Australian startup • Its anode materials can deliver mo
Slide 33: Invati Creations - Acquisition Highlights
Invati Creations - Acquisition Highlights About Invati Creations Acquisition cost • Invati, founded by alumni from IIM Kolkata and IIT Kharagpur, has a strong focus on engineering Lithium-ion electrode materials for efficient energy 40% stake for a storage with higher energy density and longer batte
Slide 34: Himadri LFP Cathode Vision
Himadri LFP Cathode Vision Bringing breakthrough Innovation to Sustainable Sourcing the Indian and Global LiB Industry To produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion o Long term partnership with lithium Battery, in phases in 5-6 years o
Slide 35: Where we play a role
Where we play a role HIMADRI’S PRESENCE Lithium Chemicals Cathode Active Material Upstream Downstream Refining of Lithium Best in Class & Exploration & Mining Concentrate to Lithium Sustainable Cathode Cell Manufacturing Carbonate and Lithium Active Material Hydroxide Production 34
Slide 36: Cathode Material Dynamics: Himadri's Strategic Advancements
Cathode Material Dynamics : Himadri’s Strategic Advancements Pioneering Innovation and Sustainable Growth in Cathode Material Landscape Large Global and Domestic Opportunity Market Projection : Cathode Material demand to reach 9.4 million tonnes annually by 2030 for global LiB cell production Domest
Slide 37: Birla Tyres Ltd - Acquisition Highlights
Birla Tyres Ltd - Acquisition Highlights ▪ Himadri Speciality Chemical Ltd (HSCL, Strategic Partner) along with Resolution Applicant - Dalmia Bharat Refractories Limited (DBRL) participated in the corporate insolvency resolution process of Birla Tyres Limited. ▪ LOI from the Resolution Professional
Slide 38: Value Acquisition
Value Acquisition The total acquisition cost is Rs. 306 Crores. Additional capex is required to make the plant fully operational. For Himadri Speciality Chemical Limited The replacement cost Time consumed to Forward integration Eligible for investment Sufficient land available for creating such a cr
Slide 39: Birla Tyres Limited – Turnaround Opportunity
Birla Tyres Limited – Turnaround Opportunity Having successfully forward integrated from Oil to Carbon Black, then to Speciality Carbon Black, Himadri stands at the threshold of an exciting transformation moving forward towards end customer, venturing into the world of Tyres Existing capability Stra
Slide 40: Journey of Transformation
JOURNEY OF TRANSFORMATION
Slide 41: Himadri: Transformation Unfolds
Himadri : Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon Black » Graphite Grade Binder Pitch 2010 » G
Slide 42: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 41
Slide 43: Marquee Clients across Industries
Marquee Clients across Industries The brand names/logos mentioned are the property of their respective owners and are used here for identification purpose only 42
Slide 44: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 45: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobil
Slide 46: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO₂ emission The Global Availability of
Slide 47: Primary Cathode Active Material Used now – NMC & LFP
Primary Cathode Active Material Used now – NMC & LFP Safety Working of LFP battery fast charging Spec. capabilities energy LFP batteries use lithium iron phosphate as the cathode material alongside a graphite electrode with a metallic backing as the anode. cost Spec. power lifespan Unlike many catho
Slide 48: Key Takeaways
Key Takeaways Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Strong Brand Location Team Transformation Unfolds Addressing the needs of
Slide 49: Financial Performance
FINANCIAL PERFORMANCE
Slide 50: Standalone Profit & Loss Statement – Q3 & 9M FY25
Standalone Profit & Loss Statement – Q3 & 9M FY25 Particulars (Rs. in Crs) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q 9MFY25 9MFY24 Y-o-Y Net Revenue From Operations 1,131.81 1,052.51 7.53% 1,135.21 -0.30% 3,466.79 3,007.94 15.25% Cost of Materials Consumed 763.25 756.34 792.86 2,407.43 2,182.47 Gross Profit
Slide 51: Consolidated Profit & Loss Statement – Q3 & 9M FY25
Consolidated Profit & Loss Statement – Q3 & 9M FY25 Particulars (Rs. in Crs) Q3FY25 Q3FY24 Y-o-Y Q2FY25 Q-o-Q 9MFY25 9MFY24 Y-o-Y Net Revenue From Operations 1,140.66 1,052.51 8.38% 1,136.92 0.33% 3,477.99 3,007.94 15.63% Cost of Materials Consumed 762.94 754.45 789.76 2,402.47 2,179.90 Gross Profit
Slide 52: Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika
Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika EVP - Tyre & Strategy Email: ssatnalika@himadri.com www.himadri.com Investor Relations Advisors : Ms. Payal Dave : Mr. Bhavya Shah: +91 9819916314 +91 8082748577 payal.dave@linkintime.co.in bhavya.shah@linkintime.co.in www.orientcap.com
Himadri Speciality Chemical — Q3 FY25 Earnings Presentation on 6ix