Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Investor Presentation (June 2020)
41 slides from Balaji Amines's investor presentation, Jun 25, 2020
Slide 1: Stock exchange cover letter for investor presentation
TEL : 0091-217-2310824 : 0091-217 -2451500 FAX : 0091-217-2451521 E-MAIL : info@balajiamines.com WEBSITE : http://www,balajiamines.com 25th June, 2020 To, The General Manager-Department of The Manager-Listing Department, Corporate Services, National Stock Exchange of India Limited, "Exchange Plaza",
Slide 2: Balaji Amines Limited Investor Presentation – June 2020
Balaji Amines Limited Investor Presentation – June 2020
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balaji Amines 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 securiti
Slide 4: Q4FY20: Standalone Performance Highlights
Q4FY20: Standalone Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 20.8% 20.4% 23.6% 11.4% 11.9% 13.6% 237 238 56 32 224 49 27 27 46 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q3FY20 Q4FY20 3
Slide 5: FY20: Standalone Performance Highlights
FY20: Standalone Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 20.8% 20.5% 12.4% 12.2% 955 929 199 118 114 190 FY19 FY20 FY19 FY20 FY19 FY20 4
Slide 6: Q4FY20 Result Update - Updated
Q4FY20 Result Update - Updated Total volumes stood at 22,146 MT for Q4FY20 as against 21,543 MT in Q4FY19 on back of improved demand across all product categories • Amines volumes stood at 4,525 MT • Amines Derivatives volumes stood at 9,030 MT • Specialty Chemicals volumes stood at 8,591 MT Q4FY20
Slide 7: Likely impact of COVID-19 on business operations
Likely impact of COVID-19 on business operations Since the situation is still fluid and is changing dynamically, it is difficult to provide any guidance with absolute certainty about the future impact of COVID-19 on the company’s operations. ➢ In Q1FY21, the lockdown has ➢ We are largely ringfenced
Slide 8: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q4FY20 Q4FY19 Y-o-Y Q3FY20 Q-o-Q FY20 FY19 Y-o-Y Total Revenue 238.26 236.55 0.72% 224.05 6.32% 929.32 955.05 -2.69% Raw Material 122.07 127.70 119.63 511.18 522.20 Employee expense 13.41 10.80 14.00 49.62 48.28 Other expenses 46.52 48
Slide 9: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Mar-20 Mar-19 EQUITY AND LIABILITIES (Rs. Crs.) Mar-20 Mar-19 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 363.40 318.35 (a) Equity Share capital 6.48 6.48 (b) Capital work-in-progress 44.63 63.24 (b) Other equity 661.16 568.52 (c
Slide 10: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow Statement for six months ended (in Rs. Crore) FY20 FY19 Profit before interest and tax 165.85 179.07 Other income considered -10.26 -5.22 Depreciation 24.18 19.55 Operating profit before working capital changes 179.76 193.40 Changes in working capital 18.08 -
Slide 11: About Us
at AMINES About Us
Slide 12: Amines Industry – Unique but Critical Industry with growth potential
Amines Industry – Unique but Critical Industry with growth potential The size of Aliphatic Amines industry globally is For Indian Amine manufacturers, 45-55% of the $4.1 billion. Globally, the Amine industry is export revenue comes from Europe alone. USA 8 1 oligopolistic with two-three producers ca
Slide 13: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India Largest manufacturer of Aliphatic State-of-the-art manufacturing 25+ Product basket Zero Liquid Discharge Amines in India facilities fully equipped with latest DCS technology facilities Only Company to develop an Indigenous Technology
Slide 14: Our Products are supplied to India's fast-growing Industries
Our Products are supplied to India’s fast-growing Industries INDUSTRY WISE – REVENUE BREAKUP 3% 4% 3% 4% PHARMA AGRO-CHEMICALS ANIMAL FEEDS 3% 2% 4% 51% PAINTS & RESINS OIL & GAS RUBBER CLEANING CHEMICALS 26% Pharma Agrochem Paints & Resins Animal Feeds Oil & Gas Rubber Cleaning Chemicals Water Trea
Slide 15: Highly Experienced Management Team
Highly Experienced Management Team Mr. A. Srinivas Reddy Mr. D. Ram Reddy Mr. A. Pratap Reddy Mr. N. Rajeshwar Reddy Mr. G. Hemanth Reddy Whole Time Director Managing Director Executive Chairman Joint Managing Director Whole Time Director & CFO • Post Graduate in Computer • 35 years of experience ac
Slide 16: Diversified Product Portfolio
Diversified Product Portfolio Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing consumption and • Amine Derivatives are used to make further salts and • Albeit a small and fastest growing segment applications in a Chemically mature Industry such other complex ch
Slide 17: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals The company logos mentioned above are the property of their respective owners and are used here for identification purposes only 16
Slide 18: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Focus towards high-value derivatives and Develop new indigenous technology for specialty chemicals with an aim to move up manufacturing products leading to lowering in the value-chain with vertical integration manufacturing costs & improving
Slide 19: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Balaji Amines In MTPA Balaji Speciality Chemicals In MTPA Installed Future Installed Product Application Areas Product Application Areas Capacity Capacity Capacity Ethylenediamine 37,350 Pesticides, Polymers Methyl Amine 48,000 - Pharma, Agro, Dye & Rub
Slide 20: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities 19.11% of the Total Revenue for FY20 i.e. Rs. 177.56 Crore is generated from exports spanning across continents Note: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation
Slide 21: Awards & Certificates – A Testimony of our capabilities (1/2)
Awards & Certificates – A Testimony of our capabilities (1/2) ISO Certificate Two Star Export House ISO Certificate ISO 9001 : 2015 Certificate Certificate of Merit – CHEMEXCIL First Award – CHEMEXCIL 20
Slide 22: Awards & Certificates – A Testimony of our capabilities (2/2)
Awards & Certificates – A Testimony of our capabilities (2/2) Product Innovator of Distinguished Contribution Excellent CSR in Water the Year in Chemicals – in the Indian Chemicals Conservation 2018 Industry WHO GMP Certificate REACH Pre-Registration Niryat Shree Award by FIEO 21
Slide 23: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Long-Term Issuer Rating affirmed at ‘IND AA-’ by India Ratings and Research (Ind-Ra) .” The ratings process highlighted the following factors:- • Largest manufacturer of aliphatic amines and their derivatives in India • Increased product offtake and meani
Slide 24: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth Complex Manufacturing High Lead time Capex Heavy Business Complex manufacturing process Niche product offering with high High fixed costs, with fixed asset requiring high levels of lead time in customer approvals turns hovering in the r
Slide 25: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Value-Added Products Applicability in Solvents segment Capex towards high-value derivatives and specialty Solvents account for 80%-90% of the mass chemicals will materialize into higher revenue and enhanced margins 01 utilised in a typical p
Slide 26: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Mega Project Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Status Technology mover advantage for Products Environmental Phase-1 of Project cost of Plan to Plan to deploy Significant Hig
Slide 27: Balaji Speciality Chemicals – Production commenced in H2FY20
Balaji Speciality Chemicals – Production commenced in H2FY20 Manufacturing products such Undertook capex of about Rs. Received Mega project status as Ethylene Diamine, 250 crore; loan contribution of for the Project from 01 Piperazine, 02 Rs. 150 crore . Expected 03 Maharashtra State Aminoethylpiper
Slide 28: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage Environment Conscious New Products Identification of new products and Waste water treatment and minimization of effluents development of latest process by adopting Industry best practices for effluent technologies treatment. Efficiency
Slide 29: Hotel Division
at AMINES Hotel Division
Slide 30: Balaji Sarovar Premiere (Solapur)
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur Balaji Sarovar Premiere (Solapur) 29
Slide 31: Balaji Sarovar Premiere – At a Glance
Balaji Sarovar Premiere – At a Glance • Commenced Operations in October 2013 Hotel Balaji Sarovar Premier is the only 5 star hotel in Solapur • Invested Rs. 110 crore in the Hotel Project via mix of Debt and Equity • Tied up with Sarovar Group for the Management of the Hotel on Management Fee + Reve
Slide 32: Balaji Sarovar Premiere – Operating Matrix (FY20)
Balaji Sarovar Premiere – Operating Matrix (FY20) 129 Rooms Constitutes 2.20% Rs. 3,452 ARR of Total Revenue 58% Occupancy Rate Balaji Negligible Routine Capex incurred Sarovar RS. 1,994 RevPAR Premiere Renowned Five Star Hotel In the City of Solapur ARR : Average Room Revenue RevPAR: Revenue per Av
Slide 33: Financial Performance
at AMINES Financial Performance
Slide 34: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +10% +14% +10% 943 941 190 193 186 113 117 861 153 97 643 670 82 127 58 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 EBITDA Margin (%) PAT Margin (%) RoE (%) 22.8% 22.0% 13.1% 22.7%
Slide 35: Strong Core RoCE Profile
Strong Core RoCE Profile Particulars (Rs. Crs.) FY19 FY20 ▪ Investments made to the tune of Rs. 112.35 crore in subsidiary Standalone Debt 94.83 102.36 company of Balaji Amines not considered, as the volume offtake Standalone Networth 575.00 667.64 was limited in FY20, since our clients has prior co
Slide 36: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Consolidated P&L (Rs. Cr) FY20 FY19 YoY Total Revenue 940.79 947.28 -0.69% Raw Material 513.83 515.35 Employee Cost 50.99 48.28 Other Expenses 190.21 186.01 EBITDA 185.76 197.64 -6.01% EBITDA Margin 19.75% 20.86% Depreciation 31.62 19.55 EBIT 154.14 178.09 -13.45%
Slide 37: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crore) Mar-20 Mar-19 EQUITY AND LIABILITIES (Rs. Crore) Mar-20 Mar-19 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 573.00 319.75 (a) Equity Share capital 6.48 6.48 (b) Capital work-in-progress 44.63 269.46 (b) Other equity 651.66 567.
Slide 38: Consistent Dividend Payout
Consistent Dividend Payout 160% 140% 130% 110% 100% FY16 FY17 FY18 FY19 FY20 Particulars (Rs. per share) FY16 FY17 FY18 FY19 FY20 Consolidated Book Value 88.89 111.87 149.71 182.71 206.28 Consolidated EPS 17.78 25.42 34.93 36.27 32.34 Dividend 2.00 2.20 2.60 2.80 3.20 37
Slide 39: Moving towards Growth Prospects
Moving towards Growth Prospects
Slide 40: Balaji Amines Ltd - Progressing steadily
Balaji Amines Ltd - Progressing steadily Brownfield Capex Phase Subsidiary Expansion Greenfield Expansion Greenfield Capex to be Manufacturing of new products such Expansion and commercialization of Moving to higher margin niche completed till 2021 will as Ethylene Diamine, Piperazine and 90-acre pr
Slide 41: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. Balaji Amines Ltd. CIN - U74140MH2010PTC204285 CIN - L24132MH1988PLC049387 Mr. Shogun Jain / Mr. Parin Narichania Email - info@balajiamines.com shogun.jain@sgapl.net / parin.n@sgapl.n