Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — FY2020 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, June 2020
Slide 1: Sharda Cropchem Limited Q4 and FY20 Results Update
SHARDA CROPCHEM LIMITED Q4 and FY20 RESULTS UPDATE June 2020
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY ❑ Q4 & FY20 Result Highlights ❑ Consolidated Financials ❑ About Us ❑ Business Model ❑ Business Strategy & Outlook 3
Slide 4: Q4 & FY20: Key Highlights
Q4 & FY20: KEY HIGHLIGHTS Q4 FY20 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* PAT & PAT MARGIN 31.0% 36.2% 20.7% 26.7% 16.2% 13.8% 2,336 8,756 7,633 1,417 1,576 14.7 % 1,056 48.2% 34.1 % Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 FY20 YoY ANALYSIS REVENUES & GROSS MARG
Slide 5: FY20: Key Performance Highlights
FY20: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues marginally grew by 0.3% YoY to Rs 20,030.2 mn in FY20 • Region wise growth YoY – Europe: 8.2%, NAFTA: -3.2%, LATAM: -7.3% and RoW: -13.9%. • Gross profit grew marginally by 0.7% YoY to Rs 6,142.7 mn in FY20. Gross margin expanded margina
Slide 6: Q4 & FY20: Division Wise Highlights
Q4 & FY20: DIVISION WISE HIGHLIGHTS In Rs Mn Q4 FY20 YoY ANALYSIS: REVENUE BREAKUP FY20 YoY ANALYSIS: REVENUE BREAKUP 7,633 8,756 19,976 20,030 533 3,154 3,180 743 28.3 % 0.9 % 8,223 6,890 19.3 % 16,822 0.2 % 16,850 Q4 FY19 Q4 FY20 FY19 FY20 Agrochemicals Non-Agrochemicals Agrochemicals Non-Agrochem
Slide 7: Q4 & FY20: Agrochemical Business
Q4 & FY20: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 6,890 8,223 16,822 16,850 6,890 8,223 16,822 16,850 4.7% 3.6% 5.0% 3.3% 7.5% 4.2% 8.4% 7.2% 14.1% 16.4% 7.3% 7.1% 36.5% 34.8% 38.1% 34.1% 95.8% 91.6% 85.9% 83.6% 55.2% 56.9% 47.1% 51.5% Q4 FY1
Slide 8: FY20: Agrochemical Business
FY20: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 23% 22% FY19 FY20 51% 53% 24% 27% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues declined by 5.1% YoY in FY20 to Rs 8,517 mn • Fungicides revenues grew by 13.5% YoY in
Slide 9: Q4 & FY20: Non-Agrochemical Business
Q4 & FY20: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 743 533 3,154 3,180 18.0% 26.8% 35.8% 3.5% 36.5% 4.0% 8.3% 41.9% 6.4% 41.5% 26.1% 28.1% 29.8% 36.6% 29.0% 27.7% Q4 FY19 Q4 FY20 FY19 FY20 Europe NAFTA LATAM RoW • Revenues in Europe declined by 11.8% in Q4 FY20 to Rs 195 mn •
Slide 10: FY20: Working Capital Analysis
FY20: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 156 164 158 151 82 68 FY19 FY20 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS FY19: 87 FY20: 74 * Calculated on average inventory, receivables, creditors 10
Slide 11: Q4 & FY20: Consolidated Profit & Loss Statement
Q4 & FY20: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY20 Q4 FY19 YoY % FY20 FY19 YoY% Revenue from Operations 8,755.6 7,633.0 14.7% 20,030.2 19,975.6 0.3% COGS 5,582.9 5,265.2 6.0% 13,887.5 13,873.2 0.1% Gross Profit 3,172.7 2,367.8 34.0% 6,142.7 6,102.4 0.7% Gross Margin 36.2%
Slide 12: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn FY20 FY19 Particulars in Rs. Mn FY20 FY19 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Equity and Share Capital 902.2 902.2 Property, Plant and Equipment 278.2 135.5 Other Equity 13125.7 11936.9 Goodwill 4.4 4.0 Non-controlling
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW ▪ Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registrat
Slide 14: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited Sd : * ae od 2 . a oe e° 14
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin* PAT & PAT Margin 19,976 20,030 17,066 22.2% 22.3% 20.2% 18.5% 17.6% 14.3% 13.6% 11.2% 8.8% 8.2% 13,992 12,186 3,689 3,124 3,454 3,516 2,714 1,751 1,904 1,908 1,763 1,647 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 31ST Mar 2020 % HOLDING MARKET DATA AS ON 23RD Jun 2020 HDFC MF 9.24% Market capitalization (Rs Mn) 18,635 L & T Mutual Fund 4.86% Price (Rs.) 206.6 No. of shares outstanding (Mn) 90.2 Pinebridge Global 4.00% Face Value (Rs.) 10.0 DSP MF
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK ▪ Leverage market presence and execution capabilities Forward Integration - ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force ▪ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Abhinav Agarwal Mr. Hiral Keniya / Chintan Mehta Chief Financial Office IR Consultant Email: cfo@shardaintl.com Email: shardcropchem@dickensonworld.com Contact No: +91 22 6678 2800 Contact no: +91 9029662801 / 9892183389