Meghmani Organics Limited · NSE:MOL
Meghmani Organics — FY2024 Earnings Presentation
40 slides from Meghmani Organics's earnings presentation, May 13, 2024
Slide 1: Exchange cover letter: Investor Presentation on Q4 & FY2024 results
Ref: MOL/2024-25/10 May 11, 2024 To, To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Bandra-Kurla Complex, Floor- 25, P J Tower, Bandra (East) Dalal Street, Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 Sub: - Investor Presentation on Financial Results for
Slide 2: Meghmani Organics Limited Investor Presentation - May 2024
Meghmani Organics Limited (MOL) Investor Presentation - May 2024
Slide 3: Content
CONTENT 03 MOL at a Glance 07 Crop Protection 13 Crop Nutrition 15 Pigments 22 Quarterly Highlights 29 Historical Financial Performance 31 Leadership and Management 35 Investment Rationale
Slide 4: MOL at a Glance
MOL at a Glance Crop Crop Pigments Protection Nutrition
Slide 5: An Integrated diversified Chemical Company with Global Footprint
An Integrated diversified Chemical Company with Global Footprint 35+ Years 9 3rd Largest Of chemical industry Integrated manufacturing Producer of copper experience facilities phthalocyanine based blue pigments globally 75+ 3,500+ Responsible Care® Countries of presence Distributors in India Accredi
Slide 6: Niche Product Portfolio with High Growth Potential
Niche Product Portfolio with High Growth Potential Crop Protection Crop Nutrition Pigments Titanium Dioxide (TiO2) (Existing Business) (New Business) (Existing Business) (New Business) Manufacturing products across the Forayed to manufacture Nano Urea One of the top three global capacity Diversifyin
Slide 7: Strategy for Next Phase of Growth
Strategy for Next Phase of Growth Crop Protection Crop Nutrition Pigments Multi purpose product (MPP) Nano Urea(1) Titanium Dioxide (TiO2)(3) plant CAPEX ₹ 390 crore ₹ 150 crore ₹ 600 crore Status Commissioned Commissioned Phase I commissioned(4) 16,500 MTPA Total Capacity 5,000 MTPA 5 crore bottles
Slide 8: Crop Protection
Crop Protection Insecticides Herbicides Intermediates
Slide 9: Crop Protection: Key Milestones
Crop Protection: Key Milestones Capacity (MTPA) 7,800 7,200 10,800 Plant Location Sanand Ankleshwar Panoli Dahej First Agrochemical Acquired Agrochemical Commissioned new Commissioned 2,4-D Plant plant Formulation plant plant 1995 2003 2006 2010 2016 2021 2021 2023 GLP Accredited Lab Doubling 2,4-D
Slide 10: Crop Protection: Business Performance
Crop Protection: Business Performance Revenue from Operations (₹ Crore) & Exports (%) Capacity (MTPA) & Utilisation (%) 79% 79% 87% 89% 84% 56% 76% 78% 75% 67% 1,940 1,738 1,045 1,079 973 32,280 36,825 51,060 53,760 54,660 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EXPORTS EBIDTA (₹ Crore) &
Slide 11: Crop Protection: MOL's Positioning in the Industry Landscape
Crop Protection: MOL's Positioning in the Industry Landscape Leading manufacturer of Pesticides with products across entire value chain Capability to develop newer molecules at competitive cost backed up by in-house product development efforts Integrated Crop Protection manufacturer Well-recognized
Slide 12: Crop Protection: Investing in the Next Phase of Growth
Crop Protection: Investing in the Next Phase of Growth Multi purpose product (MPP) plant got commissioned in Q3FY23 Total Capex of ₹ 390 crore • Installed capacity of 5,000 MTPA. • The plant is located in Dahej as part of backward integration • Will manufacture high value new-age insecticides. • Maj
Slide 13: Crop Protection: Industry Overview
Crop Protection: Industry Overview Global Crop Protection Market Region Wise Global Crop Protection Market • Global market is expected to garner revenue of ~USD 250-270 Bn by 2025 with a CAGR of 5.5-6%. FY20-FY25. 12.8% 39.6% • Major chemicals used in agriculture to regulate plant growth are synthet
Slide 14: Crop Nutrition
Crop Nutrition New Crop Nano Urea Nutrition Products* *Plan to introduce 4 to 5 products in fertilizers, biofertilizer and biostimulant category in our Crop Nutrition basket, providing a comprehensive, one-stop solution for our farmers to improve the productivity and nutrient use efficiency
Slide 15: First private player to foray into Nano Urea (Liquid) Fertilizer Manufacturing
First private player to foray into Nano Urea (Liquid) Fertilizer Manufacturing About Nano Urea Nutrient (liquid) to provide nitrogen to plants as an alternative to the conventional urea DEVELOPED AT It is being developed at Sanand, Gujarat Developed to replace conventional urea and it can curtail
Slide 16: Pigments
Pigments High Titanium Phthalocyanine Azo Performance Dioxide Pigments Pigments Pigments (TiO2)
Slide 17: Pigments: Key Milestones
Pigments: Key Milestones 1986 1996 2013 2021 Incorporated as a Pigment Diversification by setting up Setup Greenfield Pigment plant Acquisition of Kilburn Chemicals; foray into Manufacturer Greenfield Plant exclusively for Exports Titanium Dioxide (TiO2) Products Green Pigment CPC Blue, Alpha and Be
Slide 18: Pigments: Business Performance
Pigments: Business Performance Revenue from Operations (₹ Crore) & Exports (%) Capacity (MTPA) & Utilisation (%) 77% 78% 82% 83% 78% 78% 76% 88% 60% 41% 756 641 617 578 461 33,180 33,180 33,180 33,180 33,180 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 EBIDTA (₹ Crore) and EBIDTA margin (%) • G
Slide 19: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Foray into Titanium Dioxide (TiO2) / White Pigments By Acquiring Kilburn Chemicals Limited (KCL) for ₹ 132 Crore in December 2021 TiO2 Features It is the most widely used white pigment because of its brightness and its strong UV light absorbing capabilitie
Slide 20: Pigments: Investing in Next Phase of Growth (TiO2 capex)
Pigments: Investing in Next Phase of Growth Total Capex ₹ 600 crore* Installed Capacity 16,500 MTPA Phase I Commission in Q4FY23 ₹ 275 crore Installed Capacity 16,500 MTPA Phase II To be considered after stabilization of Phase I ₹ 325 crore Meghmani Organics Limited 19
Slide 21: Pigments: Rationale for Foraying into TiO2
Pigments: Rationale for Foraying into TiO2 HIGH ENTRY BARRIER Capital intensive project. IMPORT SUBSTITUTE Require expertise of handling Meghmani’s foray into TiO2 is to of bulk volume of Ilmenite & promote import substitution Sulphuric acid. thereby contributing to the government’s ‘Make in I
Slide 22: Industry Overview Of TiO2
Industry Overview Of TiO2 Global TiO2 Players Indian TiO2 Manufacturers Market Share (%) 48% 50% 22% 22% 14% 12% 12% 7% 7% Domestic Capacity (%) Chemours Tronox, USA Lomon Billions, Venator Kronos, USA Others Kerala Minerals & Metals Travancore Titanium Products V.V.Titanium Pigments, TN (Dupont) US
Slide 23: Quarterly Highlights
Quarterly Highlights
Slide 24: Standalone Results: Key Highlights
Standalone Results: Key Highlights Business Operations Financial Performance CAPEX Updates • Crop Nutrition • Crop Protection Revenues and EBITDA stood at ₹ 399.8 crore and ₹ Commissioned Meghmani Crop Nutrition 10.1 crore respectively during the quarter, Limited’s (MCNL) ‘Nano Urea’ plant in March
Slide 25: Q4 & FY24 Results: Key Highlights (Standalone)
Q4 & FY24 Results: Key Highlights (Standalone) ₹ in Crore Revenue & Gross Margin EBITDA Profit after tax 565 84 45 400 345 10 (27) (0.4) 41.9% 34.7% 39.4% (0.36) Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Revenue & Gross Margin EBITDA Profit after tax 2,557 364
Slide 26: Q4 & FY24 Results: Crop Protection
Q4 & FY24 Results: Crop Protection ₹ in Crore Production (MT) & Utilisation (%) Net Revenue & Exports (%) EBITDA & EBITDA Margin (%) 10,512 460 9,702 9,583 92 275 239 5 14 71% 70% 77% 92% 87% 85% 20.0% 2.1% 5.0% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Production (MT)
Slide 27: Q4 & FY24 Results: Pigments
Q4 & FY24 Results: Pigments ₹ in Crore Production (MT) & Utilisation (%) Net Revenue & Exports (%) EBITDA & EBITDA Margin (%) 4,534 4,020 3,286 125 3 105 105 (2) 0.9 55% 40% 48% 72% 78% 73% (2.1%) 2.8% 0.8% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Production (MT) & Uti
Slide 28: P&L Statement
P&L Statement Particulars (₹ in Crore) Q4 FY24 Q4 FY23 YoY% FY24 FY23 YoY% Revenue from Operations 400 565 (29%) 1,540 2,557 (40%) COGS 242 328 (26%) 1,002 1,515 (34%) Gross Profit 157 237 (34%) 538 1042 (48%) Gross Margins % 39.4% 41.9% 34.9% 40.7% Employee Expenses 24 29 (17%) 100 121 (17%) Other
Slide 29: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Mar-24 Mar-23 Particulars (₹ in Crore) Mar-24 Mar-23 Equity & Liabilities Assets Share Capital 25 25 Property, Plant & Equipment 943 997 Reserves & Surplus 1,539 1,631 Capital WIP 135 135 Shareholder's Funds 1,565 1,656 Intangible Assets 14 12 Financial Assets
Slide 30: Historical Financial Performance
Historical Financial Performance
Slide 31: Standalone Annualized Financial Performance
Standalone Annualized Financial Performance ₹ in Crore Revenue & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 38.0% 44.7% 41.7% 40.7% 34.9% 14.5% 17.2% 15.2% 14.2% 0.6% 11.9% 11.4% 12.3% 9.8% (4%) 379 308 364 2,494 2,557 250 280 236 192 185 1,625 1,623 1,540 (57) 10 FY20 FY21 FY22 FY23 FY24
Slide 32: Leadership and Management
Leadership and Management
Slide 33: Leadership and Management: Board of Directors
Leadership and Management: Board of Directors Mr. Ankit Patel Mr. Karana Patel Mr. Darshan Patel Chairman & Managing Director Executive Director Executive Director Mr. Ankit Patel, a dynamic and seasoned leader, brings an Mr. Karana Patel, a visionary leader with over a decade and a Mr. Darshan Pate
Slide 34: Leadership and Management: Board of Directors
Leadership and Management: Board of Directors Mr. Maulik Patel Mr. Kaushal Soparkar Mr. Manubhai K. Patel Prof. (Dr.) Ganapati Yadav Non-Executive Director Non-Executive Director Independent Director Independent Director More than 16 years of experience in the chemical More than 15 years of experien
Slide 35: Group's Core Values and The Corporate Vision
Group’s Core Values Integrity Environment, Credibility Law abiding Being Human The Company will make The Company respects The Company abides by The Company will maintain Health and Safety efforts towards building a and ensures compliances the principle of humanity complete honesty and The Company is
Slide 36: Investment Rationale
Investment Rationale
Slide 37: Why Meghmani Organics
Why Meghmani Organics Understands Chemicals since 1986, Established Market Position along with management expertise across Pigments, Crop Protection and Basic Chemicals • largest producer of copper phthalocyanine (CPC) blue and is among the top 3 pigment blue players globally • leading, Integrated m
Slide 38: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN - March 2024 (IN %) NSE Ticker MOL BSE Ticker MOL | 543331 Share Price (₹)^ 79.30 Market Cap (₹ Crore)^ 2,017 PROMOTER 49.33% % Free Float^ 50.67 FIIs 1.50% Free float market cap (₹ Crore)^ 1,022 DIIs 0.24% Shares outstanding^ 25.4 Crores Public 48.94% 3M
Slide 39: Safe Harbor
Safe Harbor This presentation has been prepared by Meghmani Organics Limited solely to provide information about the Company. 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 such information
Slide 40: Meghmani Organics Ltd Investor Relations
MEGHMANI ORGANICS LTD (CIN: L24299GJ2019PLC110321) REGISTERED & CORPORATE OFFICE: ‘Meghmani House’, Behind Safal Profitaire, Prahlad Nagar, Ahmedabad, Gujarat, 380015 Tel: +91 79 71761000 www.meghmani.com INVESTOR RELATIONS G.S.Chahal | CHIEF FINANCIAL OFFICER E: ir@meghmani.com Nishant Vyas | INVES