Vishnu Chemicals Limited · NSE:VISHNU
Vishnu Chemicals — Q1 FY2023 Earnings Presentation
27 slides from Vishnu Chemicals's earnings presentation, Aug 18, 2022
Slide 1: Exchange filing letter for Q1 FY23 investor presentation
18th August, 2022 VCL/SE/54/2022-23 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Mumbai – 400 001 Bandra (East), Mumbai 400 051 Scrip Code: 516072 Symbol: VISHNU Through: BSE Listing Centre Through: NSE Digit
Slide 2: Q1FY23 Update Investor Presentation
Q1FY23 Update Investor Presentation August 2022 Performance Enhancing Speciality Chemicals 1
Slide 3: Q1FY23 Performance Highlights
Q1FY23 Performance Highlights 2
Slide 4: Revenues, EBITDA and PAT growth
Total EBITDA PAT Revenues +83% +118% +194% Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Rs 198 cr Rs 361 cr Rs 28 cr Rs 61 cr Rs 12 cr Rs 34 cr 14.0% margin 16.8% margin STARTS FY23 ON A STRONG NOTE IMPROVED QUARTERLY EARNINGS GROWTH CONSOLIDATED EPS (In Rs) +194% 28.5 23.9 20.6 13.9 9.7 Q1FY22 Q2FY22
Slide 5: Q1FY23 consolidated results
Q1FY23 Q1FY23 Q1FY23 Revenues EBITDA PAT +83% +118% +194% y-o-y y-o-y y-o-y Y-o-Y Q-o-Q Y-o-Y In Rs Cr Q1FY23 Q1FY22 Q4FY22 FY22 FY21 change change change Total Revenues 361 198 83% 336 8% 1075 682 58% EBITDA 61 28 118% 53 14% 161 80 101% EBITDA Margin 16.8% 14.0% +273 bps 15.8% +92 bps 15.0% 11.8%
Slide 6: Q1FY23 standalone results
Q1FY23 Q1FY23 Q1FY23 Revenues EBITDA PAT +89% +155% +322% y-o-y y-o-y y-o-y Y-o-Y Q-o-Q Y-o-Y In Rs Cr Q1FY23 Q1FY22 Q4FY22 FY22 FY21 change change change Total Revenues 306 162 89% 293 4% 913 577 58% EBITDA 52 20 155% 48 7% 133 64 107% EBITDA Margin 16.9% 12.5% +438 bps 16.5% +36 bps 14.5% 11.1% +3
Slide 7: Records best ever quarterly performance
Consolidated domestic and exports sales continue RECORDS BEST EVER QUARTERLY its growth trend, growing by 102% and 65% YoY. PERFORMANCE Healthy balance sheet with holistic improvement RECORD OPERATING LEVELS in return and leverage metrics. HIGHEST QUARTERLY SALES, EBITDA, EBITDA MARGIN, PAT AND
Slide 8: Focused on consistently delivering sustainable performance
Consolidated Consolidated Consolidated Debt to equity ratio Return on Capital Return on Equity 3.4 2.4 2.1 1.7 1.3 28% 34% 19% 14% 6% FY18 FY19 FY20 FY21 FY22 FY21 FY22 FY17 FY21 FY22 Interest coverage at 5x Strong return metrics SOUND Reduced interest costs consistently Improved internal ac
Slide 9: 33 years corporate legacy, integrated manufacturer
33 YEARS CORPORATE LEGACY. INTEGRATED MANUFACTURER. Accountability in every action MANUFACTURING UNITS Transparency 4 in every transaction PEOPLE 1000+ Dedication in every decision CUSTOMERS ACROSS 12+ SECTORS Collective in every concern EXPORTS 60+ COUNTRIES
Slide 10: Our Identity
Vishnu Chemicals epitomises manufacturing of high-performance speciality chemicals, with strong market Our Identity leadership and an intelligent symphony of forward and backward integration to produce world-class products that are focused on diverse needs and aspirations of our customers. Chromium
Slide 11: Chromium chemistry: key product and industry overview
Key product Sodium Dichromate (SDC): Na2Cr2O7 Basic Chrome Sulphate, Chrome Oxide Green, Chromic Acid, Potassium Dichromate, White Derivative products Sodium Sulphate. 700,000 MTPA is the global demand for Chromium chemicals growing at 6% p.a. India demand would be around 60,000 MTPA. This inclu
Slide 12: Diversified revenue profile and balanced geography mix
Developed flexible product mix EARLIER Finds Concentrated portfolio led to low operating levels Solution multi industry Better utilization applications with and exposed the business to multiple risks: implemented over hence operating wide geographical leverage DEVELOPED presence the years DERIVATIVE
Slide 13: Leading manufacturer in India and South Asia
Leading manufacturer in India & South Asia. Better product mix to drive volumes: Till FY16, the company was pretty much focused on two products. In the last few years, we have pivoted our strategy and invested and focused on derivatives to mitigate product and end use industry risk. Strengthened exp
Slide 14: Backward integration in progress
BACKWARD INTEGRATION IN PROGRESS • Commissioned in Q4FY22. • Debottlenecking operations at • One of its kind and complex integrated infrastructure. existing plant, which will lead to • Q1FY23 was the first full quarter of operations of our backward integration unit, increase in capacity by nearly op
Slide 15: Barium subsidiary turnaround
From being a loss making facility during the acquisition in 2015, today the Barium subsidiary makes significant contribution to consolidated profits. Led the growth from the front to And now the focus is to grow our emerge as one of the leading market share with higher volumes manufacturers globally
Slide 16: Barium chemistry: Barium Carbonate overview
Key product Barium Carbonate: BaCO3 Global Barium Carbonate market size is USD 575 M growing at 6.9% CAGR. India demand is about 35,000 MTPA. Industry Overview ~40% of market share in India. Peers: Belgium, China. The construction and real estate industries have witnessed significant growth
Slide 17: Leading manufacturer in India; sustainability of realisations and margins
Leading manufacturer in India: Other players have Sustainability of higher realisations and margins: estimated capacity of less than 1/10th of Vishnu’s capacity. The realisations per tonne have increased and are likely to sustain due to following reasons: Turned around ailing business segment post a
Slide 18: FY22 subsidiary financial highlights
FY22 Highlights SUBSIDIARY FINANCIAL HIGHLIGHTS • Highest Operating Levels Ever. In Rs cr FY21 FY22 • Highest ever Sales, EBITDA and PAT. Income 113 175 • Contribution to Consol. Revenues & PAT is 16% & 20% % change y-o-y 56% respectively. EBITDA 18 30 • Domestic and exports sales grew by 22% and 84
Slide 19: Growth Drivers: In Progress
Growth Drivers: IN PROGRESS Commenced operations at brownfield expansion in Diversification: Brownfield expansion to Barium Chemicals in Q4FY22. introduce a new speciality chemical to aid Achieved 10%+ higher production on a QoQ basis. Barium portfolio diversification and better margins driven
Slide 20: Track record, flexible product mix and deep process knowledge
30+ years Greater Track record Portfolio Coherence Flexible Deep Process Product Mix Knowledge Efficient & Evolved Diversified Reliable Product Quality Applications Global Value accretive Reach & Opportunity Growth 19
Slide 21: Proximity to ports improves material handling
India ranks 18th in terms of global shipping tonnage. Most cargo ships sailing between East Asia and America, Europe, and Africa pass through Indian waters. That's not all. India has 12 'major' and more than 200 'non-major' ports. PROXIMITY TO PORTS IMPROVES MATERIAL HANDLING AND FACILITATES DELIVER
Slide 22: Global export reach
INDIA Vishnu Chemical exports its products worldwide by combining locations, trusted partners and loyal personnel enabling our customers to approach us anytime. Our representatives, contact persons are on almost every continent. These are important cornerstones of our cultural and business interacti
Slide 23: Continuous improvement in product quality
Continuous improvement in the quality of products by improving the process performance. High customer satisfaction with periodic checks. Input Output Best procurement processes to ensure consistent quality of raw materials. Installation of high quality control equipments ensures enhanced per
Slide 24: Going forward: positive of delivering industry leading value
Journey from modest origins. Manufacturing is our Going forward: focus. Leading position in India, operating in a market Positive of delivering with substantial barriers to entry. industry leading value Across the world, our customers are looking at accretive growth. pricing from the point of
Slide 25: Shareholding pattern, dividend track record, broker coverage
Shareholding Pattern as on 30 Jun 2022 Public Consistent Dividend Track Record 24.42% 2018 2019 FIIs/FPIs 2020 0.58% 2021 2022 Promoters 75.00% Broker Coverages & Updates Edelweiss HDFC Retail Arihant Capital Wealth 24
Slide 26: Disclaimer
This presentation and the accompanying slides (the You acknowledge and agree that the Company and/or its The information contained in this Presentation is not to be "Presentation”) have been prepared by Vishnu affiliated companies and/or their respective employees taken as any recommendation made by
Slide 27: Investor relations contacts
Investor Relations Advisors : Company : Orient Capital (a division of Link Group) Vishnu Chemicals Limited Mr. Irfan Raeen : +91 9773778669 investors@vishnuchemicals.com Irfan.raeen@linkintime.co.in https://vishnuchemicals.com Ms. Rasika Sawant : +91 95944 57518 Rasika.sawant@linkintime.co.in 26