National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q3 FY2020 Earnings Presentation
56 slides from National Fertilizers's earnings presentation, December 2019
Slide 1: Financial Performance for the Quarter / Nine Months December 2019
FINANCIAL PERFORMANCE FOR THE QUARTER / NINE MONTHS DECEMBER‐2019
Slide 2: Brief Overview
BRIEF OVERVIEW Introduction • Incorporated on 23rd August, 1974. • Share Capital details as on 31.12.2019. Authorized capital : Rs. 1,000.00 crore. Paid up capital : Rs. 490.58 crore. Net-worth : Rs. 2,239.16 crore. Shareholding Pattern as on 31.12.2019: Government of India 74.71% Financia
Slide 3: Brief on Urea Manufacturing Activities
BRIEF ON UREA MANUFACTURING ACTIVITIES UREA Vijaipur‐I Vijaipur‐II Bathinda Panipat Nangal ANNUAL CAPACITY i.e Revised Assessed 8.646 8.646 5.115 5.115 4.785 Capacity (RAC)‐32.31 Lakhs Metric Ton (LMT) Annual Capacity after Urea Capacity Enhancement Projects at Vijaipur‐I & II 9.999 10.662 5.115 5.1
Slide 4: Brief on Other Manufacturing Activities
BRIEF ON OTHER MANUFACTURING ACTIVITIES Cont… Other Manufacturing:‐ (Industrial Products, Bio‐Fertilizers , Technical Surplus Ammonia) etc. : S. No. Products Located in No. of Annual Capacity of each streams stream (MT) Industrial Products 1. Nitric acid Nangal 2* 91410 2. Ammonium Nitrate Nangal 2*
Slide 5: Performance for the Quarter Ended December 2019
PERFORMANCE FOR THE QUARTER ENDED DECEMBER‐2019 5
Slide 6: Performance Highlights for Quarter Ended 31.12.2019
PERFORMANCE HIGHLIGHTS FOR QUARTER ENDED 31.12.2019 Sale of all fertilizers of 16.65 LMT (13.57 LMT during CPLY). Sale of total urea 13.32 LMT (11.02 LMT during CPLY) including 3.27 LMT (0.45 LMT during CPLY) urea on Govt. A/c. Sale of DAP/MOP/APS/NPK 12:32:16 /NPK 10:26:26/Water Soluble Ferti
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Rs. crore Particulars Qtr. CPLY Increase/(decrease) Dec 2019 Rs. crore % Total Revenue from Operation 3737.30 3763.59 (26.29) (1) Total Expenses 3481.99 3518.37 (36.38) (1) Earnings before Interest, Tax 255.31 245.22 10.09 4 Depreciation and Amortization (EBITDA) Add : Other In
Slide 8: Sale of Fertilizers
Sale of Fertilizers LMT Particulars Qtr. CPLY Increase/(decrease) Dec 2019 LMT % Sale of Manufactured Fertilizers Urea (Own) 10.05 10.57 (0.52) (5) Bio Fertilizers and Bentonite Sulphur 0.03 0.02 0.01 50 Total 10.08 10.59 (0.51) (5) Sale of Traded Fertilizers Urea (Govt. A/c) 3.27 0.45 2.82 627 Impo
Slide 9: Production & Purchase of Fertilizers
Production & Purchase of Fertilizers LMT Particulars Qtr. CPLY Increase/(decrease) Dec 2019 LMT % Production Urea Production 9.72 10.06 (0.34) (3) Bio Fertilizers and Bentonite Sulphur 0.04 0.04 - - Production Total 9.76 10.10 (0.34) (3) Purchase Urea (Govt. A/c) 4.72 1.78 2.94 165 Imported Fertiliz
Slide 10: Sale of Urea (Own) & Urea (Govt A/c)
Sale of Urea (Own) & Urea (Govt A/c) LMT Particulars Qtr. CPLY Increase/ % Dec 2019 (Decrease) Urea (Own) 10.05 10.57 (0.34) (3) Urea (Govt A/C) 3.27 0.45 2.82 627 Total Urea 13.32 11.02 2.30 21 10
Slide 11: Sale of DAP/MOP/APS/NPK and Other Fertilizers
Sale of DAP/MOP/APS/NPK12:32:16/NPK10:26:26/Compost/Water Soluble Fertilizers /Calcium Nitrate/SSP/Bio Fertilizers and Bentonite Sulphur LMT Particulars Qtr. CPLY Increase/ % Dec 2019 (Decrease) DAP 2.54 2.10 0.44 21 MOP 0.32 - 0.32 - APS 0.05 0.01 0.04 400 NPK 12:32:16 0.28 0.34 (0.06) (18) NPK 10:
Slide 12: Sale Breakup Segment wise
Sale Breakup Segment wise‐Urea/Traded goods/Industrial Product & Others Product (Value & % Sale) Qtr‐Dec‐2019 Qtr‐Dec‐2018 Other Products , Other ₹ 80.15, Fertilizer Products , Fertilizer 2.15% Trading , ₹ ₹ 78.16, Trading , ₹ 952.96, 2.08% 1,283.05, 25.32% 34.33% Own Own Fertilizers Fertilizers (Ur
Slide 13: Details of Expenses for the Quarter Ended December 2019
DETAILS OF EXPENSES FOR THE QUARTER ENDED DECEMBER‐2019 13
Slide 14: Details of Expenses for Qtr Dec 19
Details of Expenses for Qr. Dec 19 Particulars Qr. Dec 19 CPLY Increase/ Key reasons (Decrease) Production of urea (LMT) 9.72 10.06 (0.34) Due to plant shutdown / trippings. Sale of urea (Own) (LMT) 10.05 10.57 (0.52) Due to lower production. (Rs. Crore) (Rs. Crore) (Rs. Crore) Cost of Materials con
Slide 15: Urea Production (Quarterly)
UREA PRODUCTION (Quarterly) LMT Unit Qtr Dec 2019 CPLY Reason for increase/ decrease in production Decrease of 0.03 LMT Nangal 1.44 1.47 Unforeseen interruptions (03 Nos.) arising out of low NG pressure. Subsequent leakage in heat exchanger in Synthesis section of Ammonia plant in Oct’ 2019. Process
Slide 16: Production of Urea in the 3rd Quarter in Preceding Years
Production of Urea in the 3rd Quarter in Preceding 4 Years (Qty. in LMT) Production of Urea for the 3rd Quarter (Oct to Dec) 2016‐17 2017‐18 2018‐19 2019‐20 Units Q3 Q3 Q3 Q3 NANGAL 1.45 1.42 1.47 1.44 PANIPAT 1.47 1.51 1.46 1.48 BATHINDA 1.46 1.51 1.53 1.52 VIJAIPUR- I 2.65 2.69 2.67 2.76 VIJAIPUR-
Slide 17: Profit Variance Analysis for Qtr Ended 31st Dec 2019
PROFIT VARIANCE ANALYSIS FOR QTR ENDED 31st DEC 2019 Company has earned profit before tax of Rs 144.42 crore during the quarter ended Dec’19 as against profit before tax of Rs 166.05 crore during CPLY i.e. decrease in profit by Rs 21.63 crore. The various reasons for decrease in profit before tax (P
Slide 18: Break Up of Total Finance Cost for Qtr Dec 2019
BREAK UP OF TOTAL FINANCE COST FOR Qtr. DEC 2019 Rs. crore Particulars Qr. Dec 19 CPLY Increase/ (Decrease) Interest on Long Term Loans 3.61 1.71 1.90 Interest on working capital Loans (excluding interest on trading activities) 63.02 58.80 4.22 Other borrowing costs (CP related charges) 1.39 1.02 0.
Slide 19: Analysis of Finance Cost on Working Capital for Qtr Dec 2019
ANALYSIS OF FINANCE COST ON WORKING CAPITAL FOR QTR DEC 2019 Rs. crore Increase/ Particulars Qtr. Dec 19 CPLY (Decrease) Interest on working capital Loans (excluding interest on trading activities) 63.02 58.80 4.22 Interest on Trading Activities 21.46 14.19 7.27 Other borrowing costs (CP related cha
Slide 20: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST Company has adopted the strategy of borrowing through CP for a period of 30 to 90 days. Total average Short Term Borrowing during the quarter ending December 2019 is Rs 6052 crore, out of which 87.27% amount has been borrowed through Commercial Papers @ avg. inte
Slide 21: Interest Coverage Ratio & Debt Service Coverage Ratio
INTEREST COVERAGE RATIO (ICR) & DEBT SERVICE COVERAGE RATIO (DSCR) Particulars Unit Qtr Dec -19 CPLY Cash available for debt service Rs. Crore 262.67 267.17 (PBT + Depreciation + Finance cost) Finance Cost Rs. Crore 93.71 77.79 Interest Coverage Ratio Times 2.80 3.43 (ICR) Finance Cost (including Lo
Slide 22: Performance for the Nine Months Ended December 2019
PERFORMANCE FOR THE NINE MONTHS ENDED DCEMBER‐2019 22
Slide 23: Performance Highlights for Nine Months Ended 31.12.2019
PERFORMANCE HIGHLIGHTS FOR HALF YEAR ENDED 31.12.2019 Sale of all fertilizers 43.73 LMT (35.09 LMT during CPLY). Sale of total urea 36.17 LMT (30.03 LMT during CPLY) including 8.72 LMT (0.45 LMT during CPLY) Urea on Govt. A/c. Sale of DAP/ MOP/ APS/ NPK12:32:16/ NPK(10:26:26)/ Water Soluble Fe
Slide 24: Financial Performance
FINANCIAL PERFORMANCE (Rs. crore) Particulars Nine months CPLY Increase/(decrease) ended Rs. crore % Dec 2019 Total Revenue from Operation 9946.30 9157.10 789.20 9 Total Expenses 9528.16 8561.31 966.85 11 Earnings before Interest, Tax Depreciation and Amortization (EBITDA) 418.14 595.79 (177.65) (30
Slide 25: Revenue From Operations Growth
Revenue From Operations Growth Rs. 9946.30 crore (Nine Month Dec 2019) (9%) Rs. 9157.10 crore (CPLY) 25
Slide 26: Sale of Fertilizers
Sale of Fertilizers LMT Particulars Nine Months CPLY Increase/(decrease) ended Dec 19 LMT % Sale of Manufactured Fertilizers Urea (Own) 27.45 29.58 (2.13) (7) Bio Fertilizers and Bentonite Sulphur 0.06 0.05 0.01 24 Total 27.51 29.63 (2.12) (7) Sale of Traded Fertilizers Urea (Govt. A/c) 8.72 0.45 8.
Slide 27: Production & Purchase of Fertilizers
Production & Purchase of Fertilizers LMT Particulars Nine Months CPLY Increase/(decrease) ended Dec 19 LMT % Production Urea Production 27.25 28.89 (1.64) (6) Bio Fertilizers and Bentonite Sulphur 0.10 0.07 0.03 43 Production Total 27.35 28.96 (1.61) (6) Purchase Urea (Govt. A/c) 9.63 1.78 7.85 441
Slide 28: Sale of Urea (Own) & Urea (Govt A/c)
Sale of Urea (Own) & Urea (Govt A/c) LMT Particulars Nine Months CPLY Increase/ % ended Dec 19 (Decrease) Urea (Own) 27.45 29.58 (2.13) (7) Urea (Govt A/C) 8.72 0.45 8.27 1838 Total Urea 36.17 30.03 6.14 20 28
Slide 29: Sale of DAP/MOP/APS/NPK and Other Fertilizers
Sale of DAP/MOP/APS/NPK12:32:16/NPK10:26:26/Compost/Water Soluble Fertilizers /Calcium Nitrate/SSP/Bio Fertilizers and Bentonite Sulphur LMT Particulars Nine Months CPLY Increase/ % ended Dec 19 (Decrease) DAP 5.86 3.95 1.91 48 MOP 0.55 - 0.55 - APS 0.28 0.26 0.02 8 NPK 12:32:16 0.46 0.61 (0.15) (25
Slide 30: Sale Breakup Segment wise
Sale Breakup Segment wise‐Urea/Traded goods/Industrial Product & Others Product (Value & % Sale) Nine month ended Dec‐2019 Nine month ended Dec‐2018 Other Products, ₹ Fertilizer Other Fertilizer 184.55, Trading , ₹ Products , Trading , ₹ 1.86% 1,774.25, ₹ 195.86, 3,085.98, 19.38% 2.14% 31.03% Own Ow
Slide 31: Details of Expenses for the Nine Months Ended December 2019
DETAILS OF EXPENSES FOR THE NINE MONTHS ENDED DECEMBER‐2019 31
Slide 32: Details of Expenses for Nine Months Dec 19
Details of Expenses for Nine Months Dec 19 Particulars Nine Months CPLY Increase/ Key reasons ended Dec 19 (Decrease) Production of urea (LMT) 27.25 28.89 (1.64) Due to plant shutdown / trippings. Sale of urea (Own) (LMT) 27.45 29.58 (2.13) Due to lower production. (Rs. Crore) (Rs. (Rs. Crore) Crore
Slide 33: Urea Production
UREA PRODUCTION LMT Unit Apr‐Dec 19 CPLY Reason for increase/ decrease in production 4.28 3.97 Increase of 0.31 LMT. Nangal 4.15 4.22 Decrease of 0.07 LMT Panipat Plant shutdown in May/June 2019 to attend urea reactor liner leakage Interruptions on three occasions in June 2019 { boiler tube leakage,
Slide 34: Production of Urea in the Nine Months in Preceding Years
Production of Urea in the Nine Months in Preceding 4 Years LMT Production of Urea for the Nine Months (Apr to Dec) 2016‐17 2017‐18 2018‐19 2019‐20 Units Nine Months Nine Months Nine Months Nine Months NANGAL 3.83 4.28 3.97 4.28 PANIPAT 3.99 4.43 4.22 4.15 BATHINDA 4.30 4.12 4.44 4.09 VIJAIPUR- I 8.0
Slide 35: Profit Variance Analysis for Nine Months Ended 31st Dec 2019
PROFIT VARIANCE ANALYSIS FOR NINE MONTHS ENDED 31st DEC 2019 Company has earned profit before tax of Rs. 71.10 crore during the nine months ended Dec‐19 as against profit before tax of Rs. 343.72 crore during CPLY i.e. decrease in profit by Rs. 272.62 crore. The various reasons for decrease in PBT a
Slide 36: Break Up of Total Finance Cost for Nine Months
BREAK UP OF TOTAL FINANCE COST FOR NINE MONTHS ENDED 2019 Rs. crore Finance cost (excluding interest cost allocated to trading of imported fertilizers) increased by Rs 39.71 crore (21%) from Rs 188.12 crore during CPLY to Rs 227.83 crore during the current period. The break-up of finance cost is as
Slide 37: Analysis of Finance Cost on Working Capital for Nine Months
ANALYSIS OF FINANCE COST ON WORKING CAPITAL FOR NINE MONTHS ENDED 2019 Rs. crore Nine months Increase/ Particulars CPLY ended Dec 19 (Decrease) Interest on working capital Loans (excluding interest on trading activities) 208.06 174.53 33.53 Interest on Trading Activities 78.10 35.84 42.26 Other borr
Slide 38: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST Total average Short Term Borrowing Rs 6113 crore upto Dec 2019 , out of which 84.66% amount has been borrowed through Commercial Papers @ avg. interest rate of 6.11% as against 6.82% in CPLY. Company has availed CP/STL etc. at average interest rate of 6.32% as
Slide 39: Interest Coverage Ratio & Debt Service Coverage Ratio
INTEREST COVERAGE RATIO (ICR) & DEBT SERVICE COVERAGE RATIO (DSCR) Rs. Crore Particulars Unit Nine Months CPLY ended Dec 19 Cash available for debt service Rs. Crore 449.01 628.31 (PBT + Depreciation + Finance cost) Finance Cost Rs. Crore 305.93 223.96 Interest Coverage Ratio Times 1.47 2.81 (ICR) F
Slide 40: Debt to Equity Ratio
DEBT TO EQUITY RATIO S. Particulars As on As on No. 31st Dec 2019 31st Dec 2018 1 Long term Borrowings 516.41 328.51 2 Short term Borrowings 5968.76 4154.16 3 Total Borrowings 6485.17 4482.67 4 Net worth (Para 4.9) 2239.16 2205.95 5 Total Debt : Equity ratio 2.90 2.03 (3 divided by 4) 6. Long-term D
Slide 41: Segment Results for the Nine Months Ended December 2019
SEGMENT RESULTS FOR THE NINE MONTHS ENDED DECEMBER 2019 41
Slide 42: Segment Results
SEGMENT RESULTS Rs. crore Qtr Dec 2019 Qtr Dec 2018 Nine Months Nine Months Particulars Dec 2019 Dec 2018 Segment Revenue Own Fertilizers (Urea, BS and Bio- 2374.10 2732.47 6675.77 7186.99 fertilizers) 63.52% 72.60% 67.12% 78.49% Fertilizer Trading 1283.05 952.96 3085.98 1774.25 34.33% 25.32% 31.03%
Slide 43: Consolidated Accounts
CONSOLIDATED ACCOUNTS 43
Slide 44: Consolidated Accounts
CONSOLIDATED ACCOUNTS The Consolidated Financial Statements are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated accounts as set out in the accounting standards (Ind‐As 28) as prescribed under Section 133 of the Companies Act, 2013. B
Slide 45: Consolidated Accounts
CONSOLIDATED ACCOUNTS STANDALONE CONSOLIDATED Particulars Nine months Nine months Nine months Nine months ended ended ended ended Dec 19 Dec 18 Dec 19 Dec 18 Revenue from operations 9946.30 9157.10 9946.30 9157.10 Total Expenses 9600.14 8621.94 9600.14 8621.94 Profit/ (Loss) from operations before o
Slide 46: Consolidated Accounts: Assets and Liabilities
CONSOLIDATED ACCOUNTS The Assets and Liabilities as at 31st Dec, 2019 are as under:‐ STANDALONE CONSOLIDATED Particulars As at 31.12.19 As at 31.12.18 As at 31.12.19 As at 31.12.18 ASSETS Non‐current assets 4741.53 4327.68 4735.56 4324.38 Current assets 8669.73 7515.70 8669.73 7515.70 Assets Held fo
Slide 47: New Projects and Other Activities
NEW PROJECTS AND OTHER ACTIVITIES 47
Slide 48: Projects and Other Activities Status
Project s and Other Activities status Company has contributed Rs. 341.53 crore upto 02.01.2020 towards equity in its JV Company (RFCL) out of total requirement Rs. 447.63 crore. Company has entered into a manpower management consultancy agreement with RFCL where in the company shall provide manp
Slide 49: Overview of Ramagundam Project
Overview of Ramagundam Project (Being executed by RFCL) Joint Venture of NFL, Engineers India Limited (EIL) & Fertilizers Corporation of India Limited (FCIL) is undertaking the revival of Ramagundam unit of FCIL through RFCL Plant Capacity Ammonia Plant : 2200 MTPD (0.726 MMTPA) Urea Plant : 3850
Slide 50: Performance for the Preceding Years
PERFORMANCE FOR THE PRECEDING 4 YEARS 50
Slide 51: Brief on Trading Activities
BRIEF ON TRADING ACTIVITIES (Sale Based) Cont… Traded Goods : S. No. Products 2015‐16 2016‐17 2017‐18 2018‐19 Imported Fertilizers LMT LMT LMT LMT 9. DAP 0.51 2.14 3.28 5.04 10. MOP ‐ ‐ 0.27 ‐ 11. APS ‐ ‐ 0.26 0.26 12. NPK ‐ ‐ ‐ 0.68 13. Urea (Govt A/C) ‐ ‐ ‐ 3.70 14. BS 0.01 0.03 ‐ ‐ Total (9+10+11
Slide 52: Production of Urea
Production of Urea (Qty. in LMT) Production of Urea Plants 2015‐16 2016‐17 2017‐18 2018‐19 NANGAL 5.47 5.02 5.43 5.41 PANIPAT 5.67 5.43 5.60 5.74 BATHINDA 5.48 5.68 5.63 5.84 VIJAIPUR- I 9.92 10.58 10.50 10.28 VIJAIPUR-II 11.44 11.39 10.95 11.32 TOTAL 37.98 38.10054 38.10250 38.59 Capacity utilizati
Slide 53: Financial Performance at a Glance (Preceding Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 4 Years) (Rs. crore) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 1 Production (Urea) (LMT) 37.98 38.10054 38.10250 38.59 2 Capacity Utilization w.r.t. RAC (Urea %) 117.60 117.90 117.94 119.46 3 Sale of Urea (LMT) 36.41 37.58 39.16 38.98 4 Sale of
Slide 54: Financial Performance at a Glance (Preceding Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 4 Years) (Rs. crore) Particulars 2015‐16 2016‐17 2017‐18 2018‐19 SL. No. 18 Net Fixed Assets 4291 4109 4144 4127 19 Working Capital 1487 1424 981 1204 20 Long Term Borrowings 1828 981 171 341 STL* (without SBA) 4296 1989 2695 4670 SBA 0 1165 195 1452 21 T
Slide 55: Sales (Preceding Years)
SALES (Preceding 4 Years) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 1 Sale of Own Urea (LMT) 36.41 37.58 39.16 38.98 2 Sale of Own Bio‐Fertilizer and BS ‐ ‐ ‐ 0.07 (LMT) 3a Sale of Traded Goods:‐ (Fertilizers) 0.51 2.14 3.28 5.04 1. DAP (LMT) 2. MOP (LMT) ‐ ‐ 0.27 ‐ 3. APS (LMT) ‐ ‐ 0.26 0
Slide 56: Thank You
THANK YOU 56
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