Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q3 FY2023 Earnings Presentation
40 slides from Chemplast Sanmar's earnings presentation, Feb 11, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation
February 11, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed a copy of Investor
Slide 2: Chemplast Sanmar Ltd. Investor Presentation Q3-FY'23 Results
Chemplast Sanmar Ltd. Investor Presentation Q3-FY’23 Results February 2023
Slide 3: Safe Harbour
Safe Harbour CHEMPLAST SANMAR LIMITED This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemplast Sanmar Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 4: Performance Highlights
Performance Highlights
Slide 5: Quarterly Performance Highlights: Q3 & 9M-FY'23
Performance Highlights: Q3 & 9M-FY’23 CHEMPLAST SANMAR LIMITED Rs. Cr Key highlights • Prices for both Paste PVC and Suspension PVC bottomed out during TotalTotal Revenues Revenues EBITDA PAT the quarter, after continuous fall from April‘22. Trend reversed from December‘22 onwards with multiple pric
Slide 6: Specialty Chemicals Continue to Drive the Profitability
Specialty Chemicals Continue to Drive the Profitability CHEMPLAST SANMAR LIMITED Total Revenues EBITDA Currently, Suspension In the long term, once Rs. Cr Rs. Cr PVC dominates the our proposed 5,892 4,085 3,794 1,197 850 371 sales mix. However, in expansions come on- CSL 34% 34% 32% 33% 38% 40% term
Slide 7: MD's Message
MD’s Message CHEMPLAST SANMAR LIMITED “In an evolving macro environment, as expected, the quarter gone by has turned out to be another subdued one for us as well as the industry. Our business continued to face headwinds for most part of Q3-FY ’23 with a revival in PVC prices only from December onwar
Slide 8: Product group-wise Volumes & Revenues: Q3 & 9M-FY'23
Product group-wise Volumes & Revenues: Q3 & 9M-FY’23 CHEMPLAST SANMAR LIMITED mt Sales Volume Q3 FY’23 Q3 FY’22 Y-o-Y 9M FY’23 9M FY’22 Y-o-Y Specialty Chemicals 19,437 14,055 38% 53,140 43,732 22% Other Chemicals # 43,137 39,498 9% 1,22,947 106,131 16% Suspension PVC 88,177 65,248 35% 2,40,594 211,
Slide 9: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Q3-FY’23 Q3-FY’22 Y-o-Y 9M-FY’23 9M-FY’22 Y-o-Y Revenue from Operations 1,189 1,452 -18% 3,794 4,085 -7% Cost of Goods Sold 777 833 2,464 2,509 Employee Cost 34 31 108 92 Other Expenses 300 235 851 634 EBITDA 78 353 -78%
Slide 10: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Q3-FY’23 Q3-FY’22 Y-o-Y 9M-FY’23 9M-FY’22 Y-o-Y Revenue from Operations 630 517 22% 1,769 1,364 30% Cost of Goods Sold 306 139 799 424 Employee Cost 24 20 72 58 Other Expenses` 216 168 623 445 EBITDA 83 190 -56% 274 437 -3
Slide 11: Company Overview
Company Overview
Slide 12: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… CHEMPLAST SANMAR LIMITED #1 manufacturer of Specialty Paste PVC resin in #1 manufacturer of S-PVC in South India and 2 nd India largest in India(1) Leading player in Custom Manufacturing #1 manufacturer of Hydrogen Peroxide in South India Lea
Slide 13: … with a Diversified Product Portfolio
… with a Diversified Product Portfolio CHEMPLAST SANMAR LIMITED Chemplast Sanmar CCVL (1) Specialty Chemicals Other Chemicals Suspension PVC Specialty Paste PVC Custom Caustic soda Hydrogen Chloromethanes resin manufacturing peroxide Irrigation End user Auto Paper Textile Paper & Textile Park Pharma
Slide 14: Specialty Paste PVC Resin
Specialty Paste PVC Resin CHEMPLAST SANMAR LIMITED Industry Overview Company Overview 143 ktpa Indian demand FY20 (1) #1 manufacturer of Specialty Paste PVC resin in India 9.3% CAGR (FY21-25) (1) Domestic 55% Imports 45% 66 ktpa 41 ktpa Key growth drivers Installed capacity Planned capacity addition
Slide 15: Custom Manufactured Chemicals
Custom Manufactured Chemicals CHEMPLAST SANMAR LIMITED Industry Overview Company Overview Leading player in custom manufacturing US$ 6.0 bn 9.1% Indian market size FY21 (1) CAGR (FY21-25) (1) 1,068 mtpa Setting up a multi- Installed capacity purpose facility in Key growth drivers at Berigai phases •
Slide 16: Other Chemicals
Other Chemicals CHEMPLAST SANMAR LIMITED Caustic Soda Hydrogen Peroxide Chloromethanes 282 ktpa 3.5 mn mtpa 510 ktpa Indian Indian demand 8.2% demand FY21 10.3% Indian Demand 10.1% FY21(1) (1) CAGR (FY21-25) (1) FY21 (1) CAGR (FY21-25) (1) CAGR (FY21-25) (1) Industry Key growth drivers Key growth dr
Slide 17: Suspension PVC (CCVL)
Suspension PVC (CCVL) CHEMPLAST SANMAR LIMITED Industry Overview Company Overview manufacturer of S-PVC in South India and 2nd largest #1 in India 3,340 ktpa 7.7% Indian demand in FY20(1) CAGR (FY21-25) (1) 331 ktpa Installed capacity Key growth drivers at Cuddalore (31 ktpa added in May’22 via debo
Slide 18: Legacy of Over Five Decades
Legacy of Over Five Decades CHEMPLAST SANMAR LIMITED Marine terminal facility CCVL became a wholly owned Commencement of Expansion of production and EDC Plant Capacity expansion: subsidiary of our Company; manufacturing of PVC capacity of PVC resins to commissioned at Paste PVC to 66,000 tpa at Mett
Slide 19: Chemplast Sanmar: Key Highlights
Chemplast Sanmar: Key Highlights CHEMPLAST SANMAR LIMITED Leadership position across a wide array of products; Growing end-use applications; Wide and stable customer base High entry barriers The custom manufacturing industry has significant entry barriers, including customer Paste PVC manufacturing
Slide 20: Organizational Capabilities
Organizational Capabilities
Slide 21: Quality Manufacturing Facilities…
Quality Manufacturing Facilities… CHEMPLAST SANMAR LIMITED Location Mettur, Tamilnadu Berigai Tamilnadu Karaikal, Puducherry Cuddalore, Tamilnadu Paste PVC 66 ktpa Caustic Soda 67 ktpa Caustic soda Custom manufacturing Suspension PVC resin Capacity Hydrogen Peroxide 34 ktpa 1,068 mtpa 52 ktpa 331 kt
Slide 22: … with a High Degree of Backward Integration
… with a High Degree of Backward Integration CHEMPLAST SANMAR LIMITED Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Caustic Soda Imported Coal Methanol 67 kt EDC Power Plant Electrolysis Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCI HCI 35 k
Slide 23: Glance at Manufacturing Facilities
Glance at Manufacturing Facilities CHEMPLAST SANMAR LIMITED Paste PVC plant, Chloromethanes plant, Marine Terminal Facility, Mettur, Tamilnadu Mettur, Tamilnadu Cuddalore, Tamilnadu Custom manufacturing, Caustic Soda manufacturing, Suspension PVC, Berigai , Tamilnadu Karaikal, Puducherry Cuddalore,
Slide 24: Strong Focus on Sustainability
Strong Focus on Sustainability CHEMPLAST SANMAR LIMITED Environment Friendly Practices Health & Safety Measures Annual sustainability reports published for over a decade • Zero liquid discharge policy • Transport safety - • Desalination plants at coastal Installation of speed facilities - avoid usag
Slide 25: Key Awards & Recognition
Key Awards & Recognition CHEMPLAST SANMAR LIMITED Accreditations Key Awards Sword of Sword of Honor ECOVADIS SILVER Star Award from Honor National Safety Council British Safety MEDAL British Safety Council Council Safety Safety 2020, 2021, Cuddalore Mettur Plant 2 Sustainability Award ICC’s Award fo
Slide 26: Leadership Team With Deep Domain Expertise
Leadership Team With Deep Domain Expertise CHEMPLAST SANMAR LIMITED Dr. Krishna Kumar Rangachari Vijay Sankar Ramkumar Shankar Deputy Managing Director - Custom Chairman and Non-Executive Managing Director Manufactured Chemicals Division Director Exp : 34+ Years Exp : 31+ years • Industrialist with
Slide 27: Eminent Board of Directors
Eminent Board of Directors CHEMPLAST SANMAR LIMITED Vijay Sankar Ramkumar Shankar Chairman and Non-Executive Director Managing Director • Industrialist with experience in managing several businesses • Member of the CII National Committee on Chemicals and • Past president of Indian Chemical Council P
Slide 28: Way Forward
Way Forward
Slide 29: Our Strategies
Our Strategies CHEMPLAST SANMAR LIMITED Expansion of the production capacities • Increasing Paste PVC capacity to benefit from structural changes in the supply side dynamics and to cement leadership position in India • Expanding custom manufacturing capabilities to leverage our chemistry process res
Slide 30: Capex Plans
Capex Plans CHEMPLAST SANMAR LIMITED Low cost future expansion leveraging existing land and infrastructure facilities 2022 2024 2024-2025 Suspension PVC resin Paste PVC Custom Manufacturing Capacity debottlenecking by 31 kt 2024 Planning to add 41 kt capacity at Setting up a multipurpose facility at
Slide 31: Historical Performance
Historical Performance
Slide 32: Product group-wise Volumes & Revenues
Product group-wise Volumes & Revenues CHEMPLAST SANMAR LIMITED mt Sales Volume FY’22 FY’21 FY’20 Specialty Chemicals 65,841 63,231 64,739 Other Chemicals # 1,46,652 105,060 119,863 Suspension PVC 2,99,268 273,296 271,300 Total Sales Volume 5,11,761 441,587 455,902 Rs. Cr Total Revenue FY’22 FY’21 FY
Slide 33: Historical Performance Highlights
Historical Performance Highlights CHEMPLAST SANMAR LIMITED Rs. Cr Margin Revenues EBITDA 13% 22% 20% 5,892 # 1,197 3,799 855 3,123 400 FY’20 FY’21 FY’22 FY’20 FY’21 FY’22 PAT Net Debt 8% 11% 649 2,060 ++ 1,459 ++ 310 1 -362 FY’20 FY’21 FY’22 FY’20 FY’21 FY’22 All computations are on Consolidated bas
Slide 34: Consolidated Profit & Loss Account (Proforma)
Consolidated Profit & Loss Account (Proforma) CHEMPLAST SANMAR LIMITED Rs. Cr Particulars FY’22 FY’21 Y-o-Y FY’20 Revenue from Operations 5,892 3,799 55% 3,123 Cost of Goods Sold 3,714 2,229 1,933 Employee Cost 120 114 118 Other Expenses 862 601 671 EBITDA 1,197 855 40% 400 EBITDA Margin 20.3% 22.5%
Slide 35: Consolidated Balance Sheet (Proforma)
Consolidated Balance Sheet (Proforma) CHEMPLAST SANMAR LIMITED Rs. Cr ASSETS Mar-22 Mar-21 Mar-20 EQUITY AND LIABILITIES Mar-22 Mar-21 Mar-20 Non-Current Assets Equity a) Property, Plant And Equipment 3,195 3,087 3,232 a) Equity Share Capital 79 67 67 b) Capital Work in Progress 34 25 13 b) Other Eq
Slide 36: Consolidated Cashflow Statement (Proforma)
Consolidated Cashflow Statement (Proforma) CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Mar-22 Mar-21 Mar-20 Net Profit Before Tax 796 563 9 Adjustments for: Non Cash Items / Other Investment or Financial Items 420 526 303 Operating profit before working capital changes 1,216 1,089 312 Changes in wor
Slide 37: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account CHEMPLAST SANMAR LIMITED Rs. Cr Particulars FY’22 FY’21 Y-o-Y FY’20 Revenue from Operations 2,012 1,289 56% 1,259 Cost of Goods Sold 700 427 421 Employee Cost 77 77 83 Other Expenses 607 393 441 EBITDA 628 391 60% 314 EBITDA Margin 31.2% 30.4% 24.9% Other income 33
Slide 38: Stand-alone Balance Sheet
Stand-alone Balance Sheet CHEMPLAST SANMAR LIMITED Rs. Cr ASSETS Mar-22 Mar-21 Mar-20 EQUITY AND LIABILITIES Mar-22 Mar-21 Mar-20 Non-Current Assets Equity a) Equity Share Capital 79 67 67 a) Property, Plant And Equipment 2,220 2,088 2,156 b) Other Equity 3,718 1,954 1,910 b) Capital Work in Progres
Slide 39: Stand-alone Cash flow Statement
Stand-alone Cash flow Statement CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Mar-22 Mar-21 Mar-20 Net Profit Before Tax 434 56 139 Adjustments for: Non Cash Items / Other Investment or Financial Items 194 324 174 Operating profit before working capital changes 628 379 313 Changes in working capital -
Slide 40: Thank you
Thank you Company Investor relations advisor Chemplast Sanmar Ltd. Strategic Growth Advisors Pvt. Ltd. CIN- L24230TN1985PLC011637 CIN - U74140MH2010PTC204285 N Muralidharan – Chief Financial Officer Shikha Puri / Shrikant Sangani nm3@sanmargroup.com shikha.puri@sgapl.net/ shrikant.sangani@sgapl.net