Bodal Chemicals Limited · NSE:BODALCHEM
Bodal Chemicals — H1 FY23 Earnings Presentation
42 slides from Bodal Chemicals's earnings presentation, Nov 14, 2022
Slide 1: Exchange submission letter for Investor Presentation
By Online Submission Sec/22-23/113 Date: 14-11-2022 To, To, The General Manager, The General Manager, BSE Ltd. National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, Rotunda Building, P.J. Tower, Plot no. C/1, G Block, Dalal Street, Fort Bandra-Kurla Complex Mumbai- 400 0
Slide 2: Bodal Chemicals Limited Investor Presentation – November 2022
Bodal Chemicals Limited Investor Presentation – November 2022
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bodal Chemicals 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 secu
Slide 4: Q2 & H1 FY23 Highlights
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Slide 5: Business Highlights
Business Highlights H1 Rs 8,602 mn Rs 874 mn Rs 328 mn FY23 Revenue EBITDA PAT • Overall business performance for H1FY23 has been moderate with total revenue of Rs 8,602 mn, a marginal de-growth of 5% on a YoY basis due to subdued performance of Dye Intermediates. Consumption of end-user industries
Slide 6: Performance Highlights
Performance Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 10.7% 8.5% 4.7% 2.6% Margin 4,715 503 222 3,975 Q2 FY23 338 Performance 103 Q2 FY22 Q2 FY23 Q2FY22 Q2FY23 Q2 FY22 Q2FY23 11.7% 10.2% 5.5% 3.8% H1 FY23 8,996 8,602 1,056 874 498 Performance 328 H1 FY22 H1 FY23 H1 FY22 H1 FY
Slide 7: Geographic Breakup
Performance Highlights H1 FY22 H1 FY23 Revenue Rs 8,817 mn Revenue Rs 8,405 mn 4% 6% 10% 2% Basic Chemicals 3% 13% Dyestuff Revenue Breakup 12% 20% Dye Intermediates 36% 38% Caustic Soda 36% TCCA 21% Others Geographic Breakup 68% Domestc 66% 34% 32% Export * On Consolidated basis excluding other non
Slide 8: Production Volume
Performance Highlights (Rs in mn) Basic Chemicals Dyestuff Dye Intermediates Chlor Alkali TCCA Revenue Breakup 922 1091 3,171 3,138 3,139 1,665 224 173 1,861 1,635 1,759 1,018 1,617 809 389 447 74 521 539 43 Q2’22 Q2’23 H1’22 H1’23 Q2’22 Q2’23 H1’22 H1’23 Q2’22 Q2’23 H1’22 H1’23 Q2’22 Q2’23 H1’22 H1
Slide 9: Subsidiaries Performance
Subsidiaries Performance (Rs in mn) BCTPL Sen-er Boya BCL China -100% -16% -60% Revenue 42 465 281 390 113 0 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 BCTPL Sener Boya Bodal-China Particulars (Rs in mn) H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Sales 41.9 0.0 465.2 390.5 280.9 113.4 PBT
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Mn) Q2 FY23 Q2 FY22 Y-o-Y% H1 FY23 H1 FY22 Y-o-Y% Revenue from Operation 3,957.3 4,697.1 8,546.8 8,915.2 Other Income 17.2 17.5 55.0 81.2 Total Income 3,974.5 4,714.6 -15.7% 8,601.9 8,996.4 -4.4% Raw Material Consumed 2,408.0 2,674.4 5,006.6 4
Slide 11: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Mn) Q2 FY23 Q2 FY22 Y-o-Y% H1 FY23 H1 FY22 Y-o-Y% Revenue from Operation 3,991.2 4,509.3 8,470.6 8,669.8 Other Income 9.8 9.4 21.0 56.0 Total Income 4,001.0 4,518.7 -11.5% 8,491.6 8,725.9 -2.7% Raw Material Consumed 2,459.4 2,512.5 5,025.3 4,757
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In Mn) Sep-22 Mar-22 Particulars (In Mn) Sep-22 Mar-22 ASSETS Equity & Liabilities Non-current assets 11,865.5 9,915.4 Equity 10,732.6 10,523.5 Property, Plant and Equipment 7,874.7 8,011.2 Equity Share capital 245.3 245.0 Right of use of assets 7.8 1.6 Capita
Slide 13: Company Overview
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Slide 14: A Leading Chemical Manufacturer
A Leading Chemical Manufacturer 3 10 Rs. 20,680 mn Decade Old Organization Manufacturing Facilities FY22 Consolidated Revenue 5% 10% Basic Chemicals 2% Dyestuff 13% Dye Intermediates 35% 70+ 10 Chlor Alkali Distributors Across India 7 Domestic + 3 Overseas Depots 36% TCCA Others Domestc 200+ 600+ 68
Slide 15: Company Evolution
Company Evolution 1989 1993 - 1994 1997-2004 2006-2010 ▪ Incorporated as JK ▪ Acquired Unit II & Unit III ▪ 1997-Acquired two Units ▪ 2006-Listed on BSE via reverse merger Pharma at Unit II-A ▪ Name changed to Bodal ▪ 2004 -Acquired Unit I & with Dintex Dye Chem (Unit I) Chemicals Pvt. Ltd. Forward
Slide 16: Geographical Footprint
Geographical Footprint ~32% of Total revenue comes from exports 45+ Countries Global Presence North America Europe Rest of Asia Revenue Breakup India Domestic Export 100% 100% 100% 100% 100% South America 56% 59% 67% 68% 69% 44% 41% 33% 32% 31% FY18 FY19 FY20 FY21 FY22 Note : Maps not to scale. All
Slide 17: Longstanding Clientele
Longstanding Clientele Basic Chemicals Dye Intermediates Dyestuffs 70+ 600+ Distributors Across India Customers 16
Slide 18: Experienced Board & Management Team
Experienced Board & Management Team Mr. Suresh J. Patel Mr. Bhavin S. Patel Mr. Ankit S. Patel Mr. Mayur Padhya Chairman & MD Executive Director Executive Director Chief Financial Officer Experience : 30+ years Experience : 12 years Experience : 15 years Experience : 27 years Background : Background
Slide 19: Awards & Certifications
Awards & Certifications Awards Certificates 2005-06 2016-17 ▪ BCL has ISO 9001:2015 and ISO 14001:2015 certifications ▪ Received the prestigious Chemexcil Gold Award for ▪ Highest Self Manufacturing Turnover for Domestic and for their production of Dye intermediates & Dyestuffs. outstanding performa
Slide 20: Product Overview
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Slide 21: Diversified Product Portfolio
Diversified Product Portfolio Existing Products New Products Additions Basic Chemicals Dye Intermediates Dyestuffs Chlor Alkali Sulphuric Acid* Benzene Derivative ▪ Sulphuric Acid ▪ Vinyl Sulphone & ▪ Reactive Dyes ▪ Caustic soda ▪ Sulphuric Acid ▪ MCB ▪ Chlorosulphonic Acid Derivatives ▪ Acid Dyes
Slide 22: Manufacturing Value Chain
Manufacturing Value Chain Input Materials Basic Chemicals Dye Intermediates Dyestuffs Trion Chemicals End Use Industry Water Vinyl Sulphone + Derivatives Reactive Dyes Textiles Para Nitro Aniline Ice H Acid Beta Naphthol Steam DASA Sulphuric Acid Power Acid Dyes Leather FC Acid Sulphur Chloro Sulpho
Slide 23: Manufacturing Facilities
Manufacturing Facilities Total 10 10 Depots In-house R&D Lab Total Employees Manufacturing Facilities (Exclusive Distribution Warehouse) ▪ 3 – Ahmedabad, Gujarat ▪ 1 - Ahmedabad, Gujarat ▪ Domestic 1,650+ ▪ 7 - India ▪ 4 - Vadodara, Gujarat ▪ 2 - Vadodara, Gujarat ▪ Contract Labours ~1,500 ▪ 1 - Chi
Slide 24: Our Subsidiaries
Our Subsidiaries (Rs in mn) Company FY22 Location Stake Details Name Revenue H-Acid - 3,000 MTPA | Vinyl Sulphone - 6,000 MTPA S P S Processors Private Limited (SPS) Uttar Pradesh, India 70%* Rs 1,590 mn Vinyl Sulphone's capacity expansion to 6,000 MTPA has been commercialized. Bodal Chemicals Tradi
Slide 25: Key Growth Drivers
Key Growth Drivers Dyestuff Expansion TCCA Division Vinyl Sulphone at SPS Turkish entity Sener Boya Dyestuffs capacity of 35,000 Acquired 100% stake in Trion Vinyl Sulphone plant of 6,000 Acquired ~ 100% stake to MTPA will be ramped-up Chemicals and amalgamated with MTPA capacity at SPS has been str
Slide 26: Our Key Strengths
Our Key Strengths 3 Decades of Presence ✓ Home grown player with deep understanding of Indian & Integrated Business Model global chemicals market ✓ Integrated business model leading to cost competitiveness and protection against commodity cycles In house R&D Facilities ✓ Well- equipped production fa
Slide 27: India's Edge in the Global Chemicals Market
India’s Edge in the Global Chemicals Market Indian Chemical Industry Megatrends Industry (USD bn) ~9% ~11% Structural Shift China +1 Unorganized players in the Dye Intermediates India is emerging as the next alternative 300 and Dyestuffs Industry have been declining supplier for the global market 27
Slide 28: Next Level of Growth
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Slide 29: Capex To Drive Next Level Of Growth
Capex To Drive Next Level Of Growth Greenfield Saykha Project Key Synergies Project Location ▪ Saykha, Gujarat ▪ Strategic Location Products ▪ Benzene Downstream ~63,000 MTPA + Sulphuric Acid ~3,40,000 MTPA ▪ Diversified Product Portfolio ▪ ~Rs 2,200 mn Benzene + ~ Rs 1,250 mn Sulphuric Acid + ~Rs 6
Slide 30: Moving Up The Value Chain With New Chemistries
Moving Up The Value Chain With New Chemistries Sulphur Chain Benzene Chain Chlor Alkali Chain Chlorine Oleum 23% - 65% PNCB Salt & Water Electrolysis Caustic Soda Solution (Power) 2,4 DNCB Sulphur Liquid SO3 ONCB Sulphuric Acid Benzene MCB Hydrogen • Sulphuric Acid Captive Consumption MNCB <10% • PN
Slide 31: Capex To Be Completed in FY24
Capex To Be Completed in FY24 Revenue Visibility Chemical Segments FY22 FY23 FY24 Basic Chemicals 10% ✓ ✓ Dye Intermediates 36% ✓ ✓ Dyestuffs 35% ✓ ✓ Trichloroisocyanuric Acid (TCCA) 2% ✓ ✓ Caustic Soda 13% ✓ ✓ Sulphuric Acid & Derivatives (New additional capacity) - - ✓* Benzene Downstream - - ✓* O
Slide 32: Way Forward
Way Forward Lower cost of production Capacity rampup Economies of scale New client penetration Long term relationship with customers Ongoing internal efficiencies Superior quality Our Edge Rigorous integration 3+ decades of experience New greenfield expansion Diverse client base Higher focus on B2C
Slide 33: Responsible Corporate
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Slide 34: Environmentally Compliant
Environmentally Compliant Common Treated Effluent Zero Discharge Effluent Spray Effluent Effluent Multiple Effect Solid Waste Discharge Access Plant Location Site (Solid+ Dryer Plant Treatment Plant Treatment Plant, Evaporator Incinerator Plant VECL Cala Liquid+Air) (ESDP) (at GIDC) (MEEP) Lit./Day
Slide 35: Pollution Control Systems
Pollution Control Systems ▪ Treats low load waste water ▪ Clarification ▪ Compliant with GPCB, CPCB norms ▪ Bio- degradation by AIS Effluent Treatment Plant (ETP) ▪ Capacity 500,000 liters / day ▪ Tertiary Poly system ▪ Chemical oxidation ▪ Online monitoring system ▪ Flocculation ▪ Installed world’s
Slide 36: Responding To Critical Issue
Responding To Critical Issue ▪ High costs involved in complying with environmental regulations Moreover, the rising industrial water and power rates are a concern. Key Challenges ▪ Scarcity of water can lead to insufficient supply affecting our production needs. ▪ The Chemical Industry is energy and
Slide 37: CSR Activities
CSR Activities Key Focus Areas ▪ Eradicating hunger, poverty and malnutrition ▪ Promoting healthcare and sanitation including contribution to the Swach Bharat Kosh ▪ Promoting education and enhancement of rural infrastructure ▪ Ensuring environmental sustainability ▪ Providing funds for construction
Slide 38: Financial Highlights
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Slide 39: Financial Highlights
Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 20,680 2,495 2,369 1,413 2,039 1,219 14,369 13,852 987 11,517 12,424 1,481 860 1,198 398 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA Margin (%) PAT Margin (%) 17.0% 16.6% 10.7% 9.9% 10.7
Slide 40: Key Ratios
Key Ratios Net Debt/ Equity (x) Return on Equity(%) Trending lower due to increasing 0.53 17.5% capital expenditure 17.0% 0.33 9.2% 9.3% 0.17 0.19 0.12 4.1% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Return on Capital Employed (%) Net Working Capital Days Trending lower due to increasing capi
Slide 41: Segmental Performance
Segmental Performance Basic Chemical Dyestuffs Dye Intermediates Total Revenue (Rs in mn) Revenue Breakup 1,955 6,551 6,544 18,915 5,895 6,034 1,601 5,324 1,282 1,269 4,808 4,618 4,589 13,940 1,149 3,993 11,329 12,377 11,477 3,533 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21
Slide 42: Thank You
Thank You Contact Information Company: Investor Relation Advisors: Bodal Chemicals Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – : L24110GJ1986PLC009003 CIN - U74140MH2010PTC204285 Mr. Mayur Padhya Mr. Shrikant Sangani / Ms. Pankti Majithia Chief Financial Officer Email - shrikant.sangani@sgapl.net