Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — FY2020 Earnings Presentation
29 slides from Sudarshan Chemical Industries's earnings presentation, Jun 26, 2020
Slide 1: Investor Presentation
SUDARSHAN Investor Presentation
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: COVID-19 Crisis Response Team formed
COVID-19 Crisis Response Team formed A. Protect employees Protect employees and follow all local guidelines B. Manage plant and supply chain G. Preserve real estate readiness to restart Ensure safety of owned real estate assets Understand risk of supply chain Nerve Center disruptions and take action
Slide 4: COVID-19 Measures undertaken to build resilience
COVID-19 Measures undertaken to build resilience Initiatives undertaken Resulted in quicker restart of operations Employees Roha 5th April 2020 Senior Management stayed in the plant along with workforce Redeployed workforce to maintenance activities while staying on the premises Implemented safety m
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: FY20 Performance Highlights - Consolidated Financials
FY20 Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 1,833 Commentary 1,708 291 ➢ Q4 impacted due to nationwide lockdown, however full year performance 1,593 246 has shown good growth 204 ➢ Revenue growth of 7.2% and EBITDA growth of 20.6
Slide 7: Q4FY20 Performance Highlights - Consolidated Financials
Q4FY20 Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 574 Commentary 99 449 ➢ Quarterly performance impacted as 430 certain orders could not be executed due to the nationwide lockdown 65 ➢ Revenue growth of 4.4% despite this 54 challengi
Slide 8: Pigment Business Performance Highlights
Pigment Business Performance Highlights Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 1,590 1,715 234 279 1,477 210 ➢ FY20 exports as a % of revenue were ~48% and domestic revenue was ~52% FY20 14.8% 16.3% 14.2% ➢ Capex for the year FY20 stands at INR FY19 FY20 FY20e FY19 FY20 FY20e 2
Slide 9: Margin Performance - Consolidated Financials
Margin Performance - Consolidated Financials Gross Margin EBITDA Margin 43.1% 43.0% 44.1% 41.1% 15.2% 15.4% 15.6% 14.9% 39.8% 12.0% Quarterly Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 40.9% 42.9% 14.4% 12.8% Full Year FY19 FY20 FY19 FY20 Note: Based on Consolidated Financ
Slide 10: Key Ratios - Consolidated Financials
Key Ratios - Consolidated Financials Return on Capital Employed Current Ratio 1.4 1.2 14.6% 15.9% FY19 FY20 FY19 FY20 Debt to Equity Ratio Earnings per Share* 0.8 15.7 0.7 11.7 FY19 FY20 FY19 FY20 * Earnings per share calculated excluding exceptional items 10
Slide 11: About Sudarshan
ABOUT SUDARSHAN
Slide 12: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants $223 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 13: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 14: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 15: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Ashish Vij Mr. S. N. Inamdar Mr. Pradeep Rathi Mr. Rajesh Rathi (Whole Time Director) (Non-Executive, (Chairman) (Managing Director) Independent Director) Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani Mr. D. N. Damania (Non
Slide 16: Our Global Presence
Our Global Presence We Exports to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. JAPAN Sudarshan Mexico S. de R.L de CV. Sudarshan
Slide 17: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 18: Pigments Application – a global $8.6bn market opportunity
Pigments Application – a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 19: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 20: Our Unmatched Technical Capability
Our Unmatched Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and compositio
Slide 21: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 22: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 23: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 24: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERICAL EXCELLENCE ENVIORNMEMNT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practic
Slide 25: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 26: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 27: Shareholder Information
Shareholder Information Share Information (as at 31st March 2020) Shareholding Pattern (as at 31st March 2020) NSE Ticker SUDARSCHEM Promoters 42.7% BSE Ticker 506655 FIIs and FPIs 8.2% Mutual Funds 2.5% Market Cap (INR mn) 25,773 Others 46.6% % free-float 39.0% Free-float market cap 10,052 Sudarsha
Slide 28: Awards And Accolades
Awards And Accolades ‘Dream Company to Work For’ in Global CSR Award 2020 HR Excellence Award 2018 Chemical Sector Platinum Category 1st in Chemicals & Fertilizer Sector World HRD Congress 2017 Global WasteMet Award 2018 DMAI Award for Energy India CSR Award for CSR - Gold Category Conservation Init
Slide 29: Thank You
THANK YOU Investor Relations Team at Sudarshan: Mr. Mandar M. Velankar +91 20 2622 6264 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162, Wellesley Road, Pune, Maharashtra - 411001 29
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