Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Shareholder Meeting (December 2003)
20 slides from Tata Chemicals's shareholder meeting presentation, Dec 15, 2003
Slide 1: 64th AGM FY2003
64thAGM FY2003 December 15, 2003 1
Slide 2: Healthy operating and financial performance
Healthy operating and financial performance • Thrust on operational efficiencies delivers savings of Rs 58 crore • Highest ever soda ash exports • ‘Tata Salt’ sales volumes appreciate 30% in a competitive market • Cement sales double • Continues to be the most efficient player in the urea business •
Slide 3: Business overview – revenue profile
Business overview – revenue profile 600 Soda ash Urea 548 800 484 450 675 637 618 Rs. Crore Rs. Crore 300 550 150 425 0 300 FY2002 FY2003 FY2002 FY2003 300 Salt 120 Cement 104 220 225 90 162 Rs. Crore Rs. Crore 150 60 51 75 30 0 0 FY2002 FY2003 FY2002 FY2003 3
Slide 4: Segmental highlights
ee TATA Segmental highlights TATA CHEMICALS LIMITED
Slide 5: Soda ash
Soda ash • Capacity creation not completely matching demand growth Sector • Threat of reductions in custom duty perspective • Increasing export outlook by domestic players ! Strategic market segmentation to increase thrust on large customers ! Domestic volumes appreciate 9% against 5% industry avera
Slide 6: Salt
Salt • Increasingly competitive market Sector perspective • National brands strengthening presence ! Distribution structure revamped to increase market penetration Tata Chemicals ! Sales volumes appreciate 30% performance ! Price levels sustained, contributing to significantly improved realisations
Slide 7: Cement
Cement Sector • Significant excess capacities in Gujarat market perspective • Firming up of market prices ! Highest ever sales in Company’s history Tata Chemicals ! 98% capacity utilisation achieved performance ! Considerable brand franchise achieved by ‘Tata Shudh’ in year of introduction 7
Slide 8: Urea
Urea Sector • Drought resulting in negative agricultural growth perspective • Controlled environment ! Marginal 3.92% decline in sales volumes, against 5.5% reduction in Tata Chemicals overall segment sales performance ! Expansion of ‘Tata Kisan Kendra’ Network improves association with farmers ! Co
Slide 9: Revenue performance
Revenue performance 1700 1627 1434 1400 Rs. Crore 1100 13% 800 500 FY2002 FY2003 9
Slide 10: Profit from Operations
Profit from Operations 300 278 50 243 240 40 180 30 Rs crore % 120 20 14% 17 17 60 10 0 0 FY2002 FY2003 Profit from Ops. Margin Efficiency led Project Manthan contributes significantly to improved operating profit negating impact of revision in urea retention prices 10
Slide 11: Profit Before Tax
Profit Before Tax 300 50 262 240 40 200 180 30 Rs crore % 120 20 31% 16 60 14 10 0 0 FY2002 FY2003 PBT Margin Improved PBT despite decline in interest on tax refunds in Q4 FY2003 compared with Q4 FY2002 11
Slide 12: Financial Management
Financial Management 1100 1.0 0.8 900 0.68 0.6 Rs crore 0.5 % 700 1061 0.4 816 500 0.2 300 0.0 31-Mar-02 31-Mar-03 Debt Debt-equity ratio 33% reduction in debt as on 31-March-03 compared with 31-March-02 12
Slide 13: …Financial Management
…Financial Management 120 11.2 12 9.7 90 9 110 Rs crore % 60 6 90 30 3 0 0 FY2002 FY2003 Interest Cost of borrowing (%) Interest costs declined 18% by Rs 20 crore 13
Slide 14: Net Profit After Tax
Net Profit After Tax 300 50 240 40 197 180 30 Rs crore % 127 120 20 55% 10.9 60 10 7 0 0 FY2002 FY2003 Net Profit After Tax EPS 14
Slide 15: Dividend payout
Dividend payout 120 112 90 90 Rs crore 60 30 0 FY2002 FY2003 Dividend 15
Slide 16: H1 FY2004 performance perspective
H1 FY2004 performance perspective Revenue Profit from operations 300 50 791 800 744 250 240 221 40 675 32 180 30 30 Rs crore Rs. Crore % 550 120 20 425 60 10 300 0 0 HI FY03 HI FY04 H1 FY03 H1 FY04 Profit from ops Margin • 6% appreciation in revenues • Profit from operations increase 13% • Healthy o
Slide 17: H1 FY2004 performance perspective
H1 FY2004 performance perspective PAT Rs crore Financial management 1.0 Rs crore 150 8 1000 7.14 0.8 120 800 6 0.5 0.6 90 4.48 600 % % 4 129 0.4 60 400 816 0.35 617 81 2 30 200 0.2 0 0 0 0.0 H1 FY03 H1 FY04 31-Mar-03 30-Sep-03 PAT EPS Debt Debt-equity ratio • PAT up by 59% • Reduction of debt by 24%
Slide 18: Community initiatives
Community initiatives • Desh Ko Arpan • Agriculture Development • Self Help Groups • Education and Health • Rural Energy • Reproductive Health & Family Welfare 18
Slide 19: Recognition
Recognition • 4th National Award for Energy Management – from CII • National Energy Conservation Award – from Min of Power, GOI • Golden Peacock Environment Management Award – from WEF 19
Slide 20: Outlook
Outlook • Exploring international markets Soda Ash • Enhancing relationships with key customers, Inorganic chemicals Salt • Expanding salt business by introducing variants Cement • Debottlenecking clinker and cement production capacity • Capacity enhancement Fertiliser • Inorganic growth opportuniti