Sigachi Industries Limited · NSE:SIGACHI
Sigachi Industries — Q2 FY2025 Earnings Presentation
39 slides from Sigachi Industries's earnings presentation, November 2024
Slide 1: Sigachi Industries Ltd Q2 & H1FY25 Investor Presentation
SIGACHI INDUSTRIES LTD Q2 & H1FY25 Investor Presentation November’2024 1
Slide 2: Agenda
Agenda Sigachi isn’t a supplier, We are your strategic partner Values Excellence Respect Integrity Resourcefulness 01 02 03 04 Operational & Business Competitive Annexure Financial Highlights Overview Edge 2
Slide 3: Message from the MD & CEO
Focused R&D drives our continuous product innovation and advancement. With over 35 years of expertise, we’re driving growth by diversifying our portfolio and innovating in Pharma Excipients, API’s, Nutraceuticals, Cosmetics and Food Ingredients. Our focus on quality, regulatory compliance, and digit
Slide 4: India's Largest Manufacturer of Microcrystalline Cellulose
India’s Largest Manufacturer of Microcrystalline Cellulose 3 Decades 21,000 337+ 5 Years EBITDA of Expertise MTPA Capacity Customers 5 Cutting 3 Strategic 60+ Across 5 Years Revenue CAGR: 5 Years PAT Edge Locations Widely 65+ CAGR 24% CAGR: Manufacturin including Used Countries g Facilities expansio
Slide 5: Value Creation through Integrated Manufacturing
Value Creation through Integrated Manufacturing Industries Served 1 2 3 4 Pharmaceuticals Food Drying Nutraceuticals Key Raw Material Used : Hydrolysis of the Wood Pulp Wood Pulp Sheets Filtration Packaging Cosmetics Customized Industry Solutions :Manufacture MCC in grades from 15 to 250 microns to
Slide 6: Core Business More Than Doubled in 5 Years
Core Business More Than Doubled in 5 Years MCC Revenue Grew 2.6x Revenue (Rs. Mn) MCC Revenue CAGR : 21% 14,740 (FY19-FY24) 12,655 12,793 11,446 9,159 8,876 3,015 2,603 2,266 1,773 1,173 1,265 FY19 FY20 FY21 FY22 FY23 FY24 Revenue (Rs. Mn) Volume (MTPA) 6
Slide 7: Operational and Financial Highlights
01 Operational and Financial Highlights Q2 & H1FY25 7
Slide 8: Business Update
Business Update Q2 & H1FY25 Update Sigachi’s entry into the coatings market is strategically timed to capitalize on the industry’s growth potential. The company’s deep understanding of pharmaceutical formulations, coupled with its state of-the-art manufacturing facilities, enables it to deliver supe
Slide 9: Q2FY25 Financial Highlights
Q2FY25 Financial Highlights Revenue from Operational EBITDA (Rs. Mn) Revenue Contribution % Income (Rs. Mn) Rs. 1,370 Mn Rs. 293 Mn 80% 81% 38.10 % YOY 36.91 % YOY PAT (Rs. Mn) Margins 8% 7% 9% 8% 3% 4% Rs. 210 Mn EBITDA : 21.38% Allied Trades API Operations and Management MCC (19) bps (YoY) Q2FY24
Slide 10: H1FY25 Financial Highlights
H1FY25 Financial Highlights Revenue from Operational EBITDA (Rs. Mn) Revenue Contribution % Income (Rs. Mn) Rs. 2,327 Mn Rs. 504 Mn 81% 78% 26.53% YOY 33.33 % YOY PAT (Rs. Mn) Margins 8% 9% 9% 6% 5% 4% Rs. 337 Mn EBITDA : 21.65% Allied Trades API Operations and Management MCC 110 bps (YoY) H1FY24 H1
Slide 11: Q2 & H1FY25 Story in Charts
Q2 & H1FY25 Story in Charts Revenue from Operational Income (Rs. Mn) EBITDA (Rs. Mn) & EBITDA Margin % PAT (Rs. Mn) & PAT Margin % 21.6% 21.3% 15.2% 16.8% 210 1,370 293 992 151 214 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 20.6% 21.6% 14.1% 15.2% 2,327 337 1,839 504 378 260 H1FY24 H1FY25 H1FY24 H1FY
Slide 12: Uptick in MCC Sales Quantity
Uptick in MCC Sales Quantity Quantity of Microcrystalline Cellulose (In MT) 32.02% (Y-o-Y 11.94% Y-o-Y growth) Growth 8,120 7,307 4,676 3,542 3,504 Q2FY24 Q1FY24 Q2FY25 H1FY24 H1FY25 12
Slide 13: Revenue Growth in MCC
Revenue Growth in MCC 15.35% Y-o-Y Growth Key Drivers o Revenue in MCC Experienced 1,727 Robust Growth o Attributed to Increased Demand and Ramp up in Capacity Utilization 1,497 o Average Price of MCC for the First Half of FY25 was at Rs 212.69 per kg H1FY24 H1FY25 13
Slide 14: Revenue Growth in O&M
Revenue Growth in O&M Key Drivers 19.80% Y-o-Y o Revenue growth is mainly attributable to increase in customers. 206 172 H1FY24 H1FY25 14
Slide 15: Strategic Alliance to Drive Expansion-JVs
Strategic Alliance to Drive Expansion-JVs MARKET Expansion into UAE Market: Strategic Growth in Saudi Arabian Market: Formation of Sigachi Global Joint Venture Sigachi Arabia Joint Venture o Partnership Structure: Sigachi MENA FZCO, a o Projected Revenue: Sigachi Arabia, a JV between wholly owned su
Slide 16: Strategic Priorities and Way Forward
Strategic Priorities and Way Forward MCC Market Expansion API CCS O&M o Enhanced Utilization: o Geographic Expansion: o Portfolio Integration: o Commercializing CCS : o Advanced O&M Services: Striving for 80% Deepen market penetration Seamlessly incorporate the Aim to commercialize CCS Focus on spec
Slide 17: Income Statement Q2 & H1FY25
Income Statement Q2 & H1FY25 Particulars (Rs. Mn) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY Revenue from Operational Income 1,370 992 38.10 % 957 43.15% 2,327 1,839 26.53% Total Expenses 1,077 778 38.43% 747 44.17% 1,823 1,461 23.09% EBITDA 293 214 36.91% 210 39.52% 504 378 33.33% EBITDA Margin
Slide 18: Business Overview
Filtray, Yon NP 2” Business . BY Overview SIGACHI eS oo < CS) 2 6bulka 2 4 Experience Excalience o
Slide 19: Sigachi Industries – Distinct Value Proposition
Sigachi Industries – Distinct Value Proposition Sigachi Industries Ltd: Leading Manufacturer of Pre-Formulation Excipients Presence in the Pharmaceutical Ecosystem Competitive Leadership in MCC Production Edge Growth in Core and Non-Core Businesses 19
Slide 20: Present Across the Pharma Ecosystem
Present Across the Pharma Ecosystem Moving Up the Value chain by Introducing Value Added and Margin Accretive Products in the Product Basket MCC API CCS Core Business Expanded Product Complementary to Offering Existing Business Vertical o Acquired 80% stake in Trimax o Value-Added Product. o Largest
Slide 21: Our De-Risked Business Model
Our De-Risked Business Model Strong Competitive Edge enabling Consistent Profitability and Strong Balance Sheet Leading Manufacturer Present in the entire of MCC in India Pharma Ecosystem Trusted Name across Cutting-edge all operational business Manufacturing segments Capabilities 21
Slide 22: One of the Largest Manufacturers of MCC in the World
One of the Largest Manufacturers of MCC in the World Maximizing Capacity: Efficient Utilization The capacity (7,200 MTPA) added in Q4FY24 resulted in an increase to total capacity of 21,700 MTPA 8,400 MTPA 6,900 MTPA 6,400 MTPA Operating at a 97.30% Leading MCC combined capacity 93.47% Manufacturer
Slide 23: Robust Growth in O&M Business
Robust Growth in O&M Business Revenue Tripled O&M Revenue (Rs. Mn) Trusted Partners o Gujarat Alkalies o Aditya Birla Group o ONGC Petro Additions o Lords Chloro Alkali Limited o Adani New Indsutries 351 Limited 265 Asset Light Model o Zero Capex Requirement 122 134 90 110 o Contracts Win to Boost R
Slide 24: Research & Product Excellence
Research & Product Excellence Advanced Manufacturing Facilities across 5 Strategic Locations Quality Assurance through Cutting-edge Facilities, Expert R&D, Accreditation, and Certification 5 Manufacturing Units Research and Development o Hyderabad, Telangana o Division located in (Unit I,Unit IV), J
Slide 25: Ongoing Commitment to R&D Investment
Ongoing Commitment to R&D Investment Trademarks Patent Filed R&D Team Members 46 7 18 Investment in Intellectual Properties : R&D (In Rs. Mn) 44.12 49.6 37.41 FY22 FY23 FY24 25
Slide 26: Quality Assurance: Certifications & Accreditation
Quality Assurance: Certifications & Accreditation Ensures quality control and assurance in all manufacturing units, with various certifications for processes and raw materials 26
Slide 27: Competitive Edge Driving Profitability and Financial Stability
03 Competitive Edge Driving Profitability and Financial Stability 27
Slide 28: Achieving 3x Growth in Revenue and PAT
Achieving 3x Growth in Revenue and PAT Revenue (Rs. Mn) EBITDA (Rs. Mn) PAT (Rs. PAT Mn) 16.0% 21.2% 15.7% 20.1% 20.1% 19.4% 19.2% 14.7% 14.6% 14.4% 14.3% 4,106 3,087 17.8% 766.5 2,529 530.4 587.3 400.4 435.4 1,960 387.9 302.6 1,329 1,439 259.6 247.6 190.1 203.2 572.0 FY19 FY20 FY21 FY22 FY23 FY24 F
Slide 29: Sustainable Margins
Sustainable Margins Sustainable Margins Returns to Stake holders picking up.. 21.2% 20.1% 20.1% 52.1% 19.4% 19.2% 20% 37.4% 17.8% 19% 19% 18.9% 34.1% 42.4% 17% 32.1% 22.2% 31.5% 19.7% 16% 15.7% 16.0% 13.64% 14.7% 14.6% 14.4% 14.34% 17.6% 16.2% 16.41% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22
Slide 30: Low Debt: Maximizing Financial Stability
Low Debt: Maximizing Financial Stability Gross Block (Rs.Mn) Net Debt to Equity and Interest Coverage Ratio 45.31 31.04 2,157 0.46 0.28 13.68 1,151 0.03 0.13 682.5 0.02 416.5 503.3 366.1 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 10.56 9.82 7.52 -0.15 Net Debt to Equity Interest Cov
Slide 31: Cash Flow
Cash Flow To Drive Future Growth Cash Flows from Operation (Rs.Mn) Capex (Rs. Mn) 1,007 296 290 852 145 121 129 243 59 93 FY19 FY20 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 31
Slide 32: Annexure
04 Annexure 32
Slide 33: Historical Income Statement
Historical Income Statement Particulars (Rs. Mn) FY21 FY22 FY23 FY24 H1FY25 Revenue from Operational Income 1,928 2,503 3,020 3,989 2,206 Total Expenses 1,540 1,972 2,433 3,223 1,823 EBITDA 388 531 587 766 383 EBITDA Margin 20.12% 21.21% 19.43% 19.20% 17.31% Depreciation and Amortisation 23 29 66 10
Slide 34: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) FY21 FY22 FY23 FY24 H1FY25 NON-CURRENT ASSETS 463 1,069 1,964 3,809 3,911 a) Property, plant and equipment 376 527 960 1,711 2,757 b) Capital work-in-progress 37 97 349 966 82 c) Intangible assets 3 7 7 14 14 d) Goodwill - - - 547 547 e) Right of Use Ass
Slide 35: Historical Balance Sheet
Historical Balance Sheet Particulars (Rs. Mn) FY21 FY22 FY23 FY24 H1FY25 EQUITY 942 2,277 2,683 4,410 4,820 Equity Share Capital 77 307 307 328 333 Other Equity 865 1,970 2,376 3,968 4,384 Equity attributable to the owners of the company 942 2,277 2,683 4,296 4,717 Minority Interest - - - 114 102 NO
Slide 36: Key Milestones
Key Milestones 2023 Expanded Capacity to 21,700 2014 MTPA, the Largest MCC 2000 Merger of Sigachi Manufacturing 1989 o Launched premium-grade Cellulose Private Company in India Incorporated as MCC production Limited and Sigachi ‘Sigachi Chloro- o Installed advanced spray Plasticizers Private Chemica
Slide 37: Strong Leadership
Strong Leadership Mr. R P Sinha Mr. Chidambarnathan Shanmuganathan (Founder, Chairperson, Whole-Time Director) (Co-Founder, Whole-Time Director) Holds Master’s degree in Chemical Engineering Holds PG Diploma in business administration from from Banaras Hindu University Annamalai University He
Slide 38: Thank You!
SIGACHI INDUSTRIES LTD THANK YOU! GO INDIA ADVISORS – IR FIRM Ms. Priya Sen Ms. Sana Kapoor Ms. Hashika Mutreja priya@goindiaadvisors.com sana@goindiaadvisors.com hashika@goindiaadvisors.com M : +91 8334841047 M:+91 8146550469 M: +91 9167753859 38
Slide 39: Safe Harbour
Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the