Slide 1: GHCL Limited Investor Presentation
GHCL LIMITED INVESTOR PRESENTATION October 2017 Setting new milestones: Winner of Golden Peacock Award for Corporate Governance
Slide 2: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL 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 securities, and
Slide 3: Financial Snapshot on Q2FY18 performance
Financial Snapshot on Q2FY18 performance Revenue Increased by 8% from Rs. 665 crore to Rs. 717 crore Decreased by 23% from Rs. 180 crore to Rs. 139 crore EBITDA (Entire drop is attributable to Textile Segment) EBITDA Dropped from 26% to 19% Margins Profit after Tax Decreased from Rs. 90 crore to Rs.
Slide 4: Key financial indicators for Q2 FY18
Key financial indicators for Q2 FY18 Net Debt/ EBITDA Increased to 2.06 as compared to 1.93 in Mar 17 Net Debt/ Equity Improved to 0.92 as compared to 1.04 in Mar 17 Total Debt Decreased to Rs. 1360 crore as compared to Rs. 1431 crore in Mar 17 ROCE* 19% ROE* 28% • ROCE calculated as - Trailing 12 M
Slide 5: Recent Recognitions
Recent Recognitions Won Gold award in Allied Quality Concepts from Winner of India Architecture Excellence Award in “Business Intelligence and Winner: Analytics” Sectoral Procurement Excellence - Chemical Our two Spinning units were conferred with SIMA award for 2016 Winner of Gold award in internat
Slide 6: Golden peacock award – Corporate governance
Golden peacock award – Corporate governance GHCL Ltd Wins Special Commendation for Golden Peacock Award for Excellence in Corporate Governance – 2017” in its first attempt. Excellence in Corporate Governance
Slide 7: Enhanced Credit Ratings – Upgraded to A with Stable outlook
Enhanced Credit Ratings – Upgraded to A with Stable outlook Achieved continuous rating upgrades in last few years
Slide 8: Agenda
Agenda 01 Business Overview 02 Inorganic Chemicals Segment 03 Textiles Segment 04 Financials 05 Business Philosophy
Slide 9: Business Overview
Business Overview
Slide 10: History and Milestones
History and Milestones • Soda Ash production capacity • Spindles capacity increased increased to 850,000 tons/year to 175,000 • Entered into Spinning business • Launch of ‘i-FLO’ salt and ‘i- with 65,000 spindles which increased to 83,000 Flo Honey’ • Home Textile production • Air jet looms capacity
Slide 11: Business overview
Business overview Cost leadership in the industry Presence across the value chain Inorganic Chemicals (59%*) Textiles Segment (41%*) » Among top 3 soda ash players with Spinning 9.75 Lakh MT capacity 1,75,000 Spindles Catering 1/4th of Indian soda ash 3,340 Rotors demand Weaving/Knitting Margin
Slide 12: Inorganic Chemicals
Inorganic Chemicals
Slide 13: Leading manufacturer of soda ash
Leading manufacturer of soda ash 9.75L MT Cost 90%+ 30%* Soda cash capacity; leadership Capacity utilization; EBITDA Margins; 25%+ market share Captive sources amongst highest in consistent high of domestic demand of raw material industry margins Captive sources of raw materials Clients – major FMCG
Slide 14: Other products
Other products Sodium Bicarbonate » Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Import » Used in Cooking, Pharmaceuticals, Fire Extinguishers, pH 16% Tata Chem balancer, and Cleaning agent 52% 1.80 » Specialization and experience in manufacturing of around a Lakh
Slide 15: Robust financial performance
Robust financial performance Revenue EBITDA Key performance highlights Rs Crs 466 442 444 148 Rs Crs » Revenue growth of 21% for Quarter ended Sept 2018 Y-o-Y led by 366 361 expansion benefit leading to higher 136 135 volumes. 131 128 » Achieved 95% utilization in Q2 inspite of historically a lean s
Slide 16: Capacity additions to spur growth
Capacity additions to spur growth Steady capacity additions Phase 1 expansion » Capacity expansion by 1 lac MT of Soda Ash completed during March FY17 11.0 * Completion within timeframe and lower cost than expected 9.8 9.5 Debottlenecking – By FY18 8.5 » Next phase of Capex ( Phase-II ) by FY18
Slide 17: Global outlook on the soda ash industry
Global outlook on the soda ash industry GLOBAL INDIA CHINA » Healthy demand growth is observed in world soda ash CAPACITY : 3.4 MMT CAPACITY : 32.0 MMT consumption. PRODUCTION : 3.0 MMT PRODUCTION : 26.0 MMT » Turkey’s additional 2.5 mn MT is now expected to arrive in phased manner. Only major capac
Slide 18: Home Textile Segment
Home Textile Segment
Slide 19: Integrated home textile player
Integrated home textile player Integrated Home Textile Player » Best in class spinning integration with close to double the requirement of home textile giving an opportunity to benefit from expansion of sheeting capacity Spinning unit is located near Madurai in Tamil Nadu Manufactures multiple v
Slide 20: Diversified product portfolio with global clientele
Diversified product portfolio with global clientele Product Range Innovative Products » Perfect fit sheets fit perfectly to the » Sheeting » Filled Articles » Pillows size of the bed Sheets Quilted Flat Pillows » Reduces Bed making Process Sheets Duvet Shams » Softer than cotton Comforte
Slide 21: Textile Segment - Quarterly Performance
Textile Segment - Quarterly Performance Rs Crs Revenue EBITDA Key performance highlights 360 298 311 49 274 257 35 37 32 » Textile industry is witnessing headwinds due to : » Dollar devaluations. 3 » Uncertainty due to GST. Q2 FY 17 Q3 FY 17 Q4 FY 17 Q1 FY18 Q2 FY18 » Oversupply situations. Q2 FY 17
Slide 22: Financials
Financials
Slide 23: Profit & loss statement
Profit & loss statement Rs. In Crores Particulars Q2FY18 Q2FY17 % Change Q1FY18 6MFY18 6M FY 17 Sales 717 665 7.8% 753 1471 1347 Operating Expenses 578 484 586 1165 970 EBITDA 139 180 -23% 167 306 377 EBITDA Margin 19% 27% 22% 21% 28% Depreciation 25 22 25 51 43 EBIT 114 158 -28% 142 255 334 Interes
Slide 24: Balance Sheet
Balance Sheet Rs. In Crores Particulars Sept-17 March-16 Change Net fixed & other non current assets (A) 2508 2472 35 Current Assets 924 995 -71 Less: Current Liabilities 454 444 10 Working Capital (B) 470 552 -82 Capital Employed (A+B) 2978 3024 -46 Share Capital 97 100 -3 Reserves & Surplus 1362 1
Slide 25: ..leading to efficient cash flow management
..leading to efficient cash flow management Generated Cash Profits (net of Tax) of Increase in Working Rs. 85 crore Rs. 71 crore Capital of Rs. Buyback & borrowings paid Dividend 61 crore Rs. 106 crore
Slide 26: Robust growth with improving profitability
Robust growth with improving profitability Rs Crs Revenue (8% CAGR) EBITDA (19% CAGR) EBITDA Margin 724 636 23.4% 24.3% 2980 20.9% 534 18.2% 2716 433 2550 2375 FY14 FY15 FY16 FY17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Cash Profit (28% CAGR) PAT (49% CAGR) PAT Margin 474 13.0% 373 387 9.4%
Slide 27: And improving return ratios
And improving return ratios Rs Crs Net Debt/Equity ROCE ROE 1.68 22% 21% 1.48 20% 29% 1.24 24% 25% 1.04 15% 14% FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Net Debt/EBITDA Current Ratio Interest Coverage Ratio 2.16 2.24 2.93 4.8 2.42 1.79 1.61 2.02 1.93 3.4 2.74 2.06 FY 1
Slide 28: Business Philosophy
Business Philosophy
Slide 29: Professional management
Professional management RS Jalan Raman Chopra Managing Director CFO & Executive Director Unique leadership style with endeared Spearheading GHCL’s Finance and IT functions. managerial abilities drives all businesses alike. Qualified Chartered Accountant with sharp Qualified Chartered Account
Slide 30: Business philosophy going forward…
Business philosophy going forward… Robust and Profitable Growth 01 To grow profits at CAGR 20% Focus on Value Systems 02 To create a value systems that defines our Culture Sustainable Inclusive Growth 03 Business Philosophy of “Sustainable Inclusive Growth” involving all the stakeholders
Slide 31: Sustainable Inclusive Growth
Sustainable Inclusive Growth Education Village Sanitation • More than 4500 students being educated • Promoting Tata Water Mission with in 27 villages from pre-school to “1 Day 1 Village Campaign”. graduation • Constructed 5316 toilet units in 66 • Under Vidya Jyot Project, promoting villages. educat
Slide 32: For more information please visit us at www.ghcl.co.in
For more information please visit us at www.ghcl.co.in CIN: L24100GJ1983PLC006513 CIN: U74900MH2014PTC259212 Mr. Raman Chopra Ms. Pooja Dokania rchopra@ghcl.co.in dpooja@stellar-ir.com Mr. Sunil Gupta Mr. Rajeev Menon sgupta@ghcl.co.in mrajeev@stellar-ir.com Mr. Abhishek Chaturvedi abhishekchaturved