Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Investor Presentation (February 2022)
46 slides from Balaji Amines's investor presentation, Feb 3, 2022
Slide 1: Cover letter to stock exchanges on investor presentation
TEL : 0091- 217 - 2310824 : 0091- 217 - 2451500 FAX + 0091- 217 - 2451521 E-MAIL _ : info@balajiamines.com WEBSITE: http://(www.balajiamines.com FS SERIES 1D 01 100 058617 CIN : L24132MH1988PLC049387 AMINES LIMITED ... A Speciality Chemical Company Regd. Off. : ‘Balaji Towers’ No. 9/1A/1, Hotgi Road
Slide 2: Balaji Amines Limited Investor Presentation February 2022
Balaji Amines Limited Investor Presentation February 2022 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balaji Amines Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 4: Q3FY22: Consolidated Performance Highlights
Q3FY22: Consolidated Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 30.02% 25.40% 28.22% 20.10% 16.66% 17.95% 44.11% 35.45% 28.74% 565.83 159.67 101.59 528.67 134.26 88.07 117.88 78.91 392.64 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 3
Slide 5: 9MFY22: Consolidated Performance Highlights
9MFY22: Consolidated Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 27.42% 28.34% 17.19% 18.56% +71.85% +77.58% +85.56% 1,546.45 438.22 287.05 899.90 246.78 154.69 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 4
Slide 6: Q3FY22: Standalone Performance Highlights
Q3FY22: Standalone Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 26.92% 23.23% 23.03% 19.13% 15.84% 15.77% 29.40% 10.70% 6.68% 474.72 109.34 74.85 439.33 98.77 102.06 70.16 69.59 366.85 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 5
Slide 7: 9MFY22: Standalone Performance Highlights
9MFY22: Standalone Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 26.01% 25.10% 17.67% 17.29% +51.58% +46.25% +48.39% 1,308.30 328.32 226.26 863.10 224.49 152.48 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 6
Slide 8: Q3FY22 Performance Highlights
Q3FY22 Performance Highlights Sales volumes were down by 13.77% from 31,993 MT in Q3FY21 to 27,589 MT in Q3FY22. This was due to sluggish demand – as few of our clients couldn’t procure Key Starting Materials (KSMs) for some of our matching products. However, this constraint is now over, and we are
Slide 9: Expansion Plans
Expansion Plans Acetonitrile Di-methyl Carbonate Methylamines Dimethyl Formamide ❑ Have installed capacity of 9,000 ton ❑ Under the phase-1 of Greenfield ❑ Market Leader in Methylamines ❑ Market Leader in Dimethyl production in India with installed Formamide (DMF) production in per annum (TPA). Curr
Slide 10: Consolidated Statement of Profit & Loss
Consolidated Statement of Profit & Loss Particulars (in Rs. Crore) Q3FY22 Q3FY21 Y-o-Y 9MFY22 9MFY21 Y-o-Y FY21 Total Revenue 565.83 392.64 44.11% 1,546.45 899.90 71.85% 1,317.5 Raw Material 286.65 186.53 785.65 442.36 630.26 Employee expense 23.86 19.22 62.17 46.05 67.82 Other expenses 95.65 69.01
Slide 11: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q3FY22 Q3FY21 Y-o-Y 9MFY22 9MFY21 Y-o-Y FY21 Total Revenue 474.72 366.85 29.40% 1,308.30 863.10 51.58% 1,239.81 Raw Material 263.88 189.48 703.64 448.51 622.69 Employee expense 23.08 18.60 60.17 44.58 65.68 Other expenses 78.42 60.00 2
Slide 12: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crs.) Sep-21 Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) Sep-21 Mar-21 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 665.34 542.92 (b) Other equity 1,045.09 887.91 (b) Capital work-in-progress 79.21 173.
Slide 13: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Sep-21 Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) Sep-21 Mar-21 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 473.07 344.34 (b) Other equity 1029.37 890.93 (b) Capital work-in-progress 79.21 173.27
Slide 14: Section 1: About Us
SECTION 1 About Us
Slide 15: Amines Industry – Unique but Critical Industry with growth potential
Amines Industry – Unique but Critical Industry with growth potential The size of Aliphatic Amines industry globally is For Indian Amine manufacturers, 45-55% of the $4.9 billion. Globally, the Amine industry is export revenue comes from Europe alone. USA 8 1 oligopolistic with two-three producers ca
Slide 16: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India Largest manufacturer of Aliphatic State-of-the-art manufacturing 25+ Product basket Zero Liquid Discharge Amines in India facilities fully equipped with latest DCS technology facilities Only Company to develop an Indigenous Technology
Slide 17: Our Products are supplied to India's fast-growing Industries
Our Products are supplied to India’s fast-growing Industries INDUSTRY WISE – REVENUE BREAKUP 3% 4% 3% 4% 3% 2% 4% 51% 26% Pharma Agrochem Paints & Resins Animal Feeds Oil & Gas Rubber Cleaning Chemicals Water Treatment Chemicals Dye and Textiles Others 16
Slide 18: Highly Experienced Management Team
Highly Experienced Management Team Mr. A. Srinivas Reddy Mr. D. Ram Reddy Mr. A. Pratap Reddy Mr. N. Rajeshwar Reddy Mr. G. Hemanth Reddy Whole Time Director Managing Director Executive Chairman Joint Managing Director Whole Time Director & CFO • Post Graduate in Computer • 35 years of experience ac
Slide 19: Diversified Product Portfolio
Diversified Product Portfolio Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing consumption and • Amine Derivatives are used to make further salts and • Albeit a small and fastest growing segment applications in a Chemically mature Industry such other complex ch
Slide 20: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals 19 The company logos mentioned above are the property of their respective owners and are used here for identification purposes only
Slide 21: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Focus towards high-value derivatives and Develop new indigenous technology for specialty chemicals with an aim to move up manufacturing products leading to lowering in the value-chain with vertical integration manufacturing costs & improving
Slide 22: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Balaji Amines In MTPA Balaji Speciality Chemicals In MTPA Existing Installed Proposed Licensed Product Application Areas Product Application Areas Capacity Capacity Capacity Methyl Amine 48,000 50,000 Pharma, Agro, Dye & Rubber Pesticides, Ethylenediami
Slide 23: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities 14.96% of the Total Revenue for FY21 i.e. Rs. 185.44 Crore is generated from exports spanning across continents 22 Note: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representati
Slide 24: Awards & Certificates – A Testimony of our capabilities (1/2)
Awards & Certificates – A Testimony of our capabilities (1/2) ISO Certificate Two Star Export House ISO Certificate ISO 9001 : 2015 Certificate Certificate of Merit – CHEMEXCIL First Award – CHEMEXCIL 23
Slide 25: Awards & Certificates – A Testimony of our capabilities (2/2)
Awards & Certificates – A Testimony of our capabilities (2/2) Product Innovator of Distinguished Contribution Excellent CSR in Water the Year in Chemicals – in the Indian Chemicals Conservation 2018 Industry WHO GMP Certificate REACH Pre-Registration Niryat Shree Award by FIEO 24
Slide 26: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Long-Term Issuer Rating upgraded to ‘IND AA’ from ‘IND AA-’ by India Ratings and Research (Ind- Ra) .” The ratings process highlighted the following factors:- • Largest manufacturer of aliphatic amines and their derivatives in India • Sole producer for a
Slide 27: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth Complex Manufacturing High Lead time Capex Heavy Business Complex manufacturing process Niche product offering with high High fixed costs, with fixed asset requiring high levels of lead time in customer approvals turns hovering in the r
Slide 28: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Value-Added Products Applicability in Solvents segment Capex towards high-value derivatives and specialty Solvents account for 80%-90% of the mass chemicals will materialize into higher revenue and enhanced margins 01 utilised in a typical p
Slide 29: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Mega Project Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Status Technology mover advantage for Products Environmental Ethylamines plant in Project cost of Rs. Capacity installed Plan
Slide 30: Balaji Speciality Chemicals – Production commenced in FY20
Balaji Speciality Chemicals – Production commenced in FY20 Manufacturing products such Undertook capex of about Rs. Received Mega project status as Ethylene Diamine, 250 crore; loan contribution of for the Project from 01 Piperazine, 02 Rs. 150 crore. Expected 03 Maharashtra State Aminoethylpiperazi
Slide 31: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage Environment Conscious New Products Identification of new products and Waste-water treatment and minimization of effluents development of latest process by adopting Industry best practices for effluent technologies treatment. Efficiency
Slide 32: Section 2: Hotel Division
SECTION 2 Hotel Division
Slide 33: Balaji Sarovar Premiere (Solapur)
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur Balaji Sarovar Premiere (Solapur) 32
Slide 34: Balaji Sarovar Premiere – At a Glance
Balaji Sarovar Premiere – At a Glance • Commenced Operations in October 2013 Hotel Balaji Sarovar Premier is the only 5 star hotel in Solapur • Invested Rs. 110 crore in the Hotel Project via mix of Debt and Equity • Tied up with Sarovar Group for the Management of the Hotel on Management Fee + Reve
Slide 35: Balaji Sarovar Premiere – Operating Matrix (FY21)
Balaji Sarovar Premiere – Operating Matrix (FY21) 129 Rooms Constitutes 0.59% Rs. 3,634 ARR of Total Revenue 23% Occupancy Rate Balaji Negligible Routine Capex incurred Sarovar RS. 830 RevPAR Premiere Renowned Five Star Hotel In the City of Solapur ARR : Average Room Revenue RevPAR: Revenue per Avai
Slide 36: Section 3: Financial Performance
SECTION 3 Financial Performance
Slide 37: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +18% 1,318 379 244 +26% +31% 943 941 861 670 190 193 186 113 117 153 97 82 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 EBITDA Margin (%) PAT Margin (%) RoE (%) 28.8% 18.5% 27.0% 22.
Slide 38: Strong Core RoCE Profile
Strong Core RoCE Profile Particulars (Rs. Crs.) FY20 FY21 Consolidated Debt 259.57 127.07 909.92 ▪ For FY20, investments made to the tune of Rs. 112.35 crore in Consolidated Networth 668.37 subsidiary company of Balaji Amines not considered, as the Total Capital Employed 927.94 1,036.99 volume offta
Slide 39: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) FY21 FY20 YoY Total Revenue 1,239.81 929.32 33.41% Raw Material 622.69 511.17 Employee Cost 65.68 49.62 Other Expenses 212.79 178.50 EBITDA 338.65 190.03 78.21% EBITDA Margin 27.31% 20.45% Depreciation 23.34 24.18 EBIT 315.31 165.85 90
Slide 40: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Mar-21 Mar-20 EQUITY AND LIABILITIES (Rs. Crs.) Mar-21 Mar-20 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 344.34 363.40 (a) Equity Share capital 6.48 6.48 (b) Capital work-in-progress 173.27 46.27 (b) Other equity 890.93 661.16 S
Slide 41: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (in Rs. Crore) FY21 FY20 YoY Total Revenue 1,317.53 940.79 40.05% Raw Material 630.26 513.83 Employee Cost 67.82 50.99 Other Expenses 240.15 190.21 EBITDA 379.30 185.76 104.19% EBITDA Margin 28.79% 19.75% Depreciation 34.41 31.62 EBIT 344.89 154.14 123.
Slide 42: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crore) Mar-21 Mar-20 EQUITY AND LIABILITIES (Rs. Crore) Mar-21 Mar-20 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 542.92 573.00 (a) Equity Share capital 6.48 6.48 (b) Capital work-in-progress 173.28 46.26 (b) Other equity 887.91 651.
Slide 43: Consistent Dividend Payout
Consistent Dividend Payout 200% 160% 140% 130% 110% FY17 FY18 FY19 FY20 FY21 Particulars (Rs. per share) FY17 FY18 FY19 FY20 FY21 Consolidated Book Value 111.87 149.71 182.71 206.28 280.84 Consolidated EPS 25.42 34.93 36.27 32.34 73.52 Dividend 2.20 2.60 2.80 3.20 4.00 42
Slide 44: Section 4: Moving towards Growth Prospects
SECTION 4 Moving towards Growth Prospects
Slide 45: Balaji Amines Ltd - Progressing steadily
Balaji Amines Ltd - Progressing steadily Capex Phase Brownfield Expansion Subsidiary Expansion Greenfield Manufacturing of new products such Expansion and commercialization of Capex for Phase 1 of Greenfield Moving to higher margin niche as Ethylene Diamine, Piperazine and 90-acre project in MIDC Ch
Slide 46: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. Balaji Amines Ltd. CIN - U74140MH2010PTC204285 CIN - L24132MH1988PLC049387 Mr. Shogun Jain / Mr. Parin Narichania Email - cs@balajiamines.com shogun.jain@sgapl.net / parin.n@sgapl.net
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