Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q3 FY20 Earnings Presentation
26 slides from Sudarshan Chemical Industries's earnings presentation, Feb 6, 2020
Slide 1: Sudarshan Chemical Industries Limited Investor Presentation
Sudarshan Chemical Industries Limited Investor Presentation December, 2019 1
Slide 2: Safe harbour statement
Safe harbour statement This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to
Slide 3: Financial Overview
Financial Overview December, 2019 3
Slide 4: Q3FY20 and 9MFY20 Performance Highlights – Consolidated Financials
Q3FY20 and 9MFY20 Performance Highlights – Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) Quarterly Performance 63 58% 424 8% 391 40 14.9% 10.2% Q3FY19 Q3FY20 Q3FY19 Q3FY20 Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 1,259 8% 192 39% 9M Performa
Slide 5: Q3FY20 and 9MFY20 Performance Highlights – Pigments Business
Q3FY20 and 9MFY20 Performance Highlights – Pigments Business Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) Quarterly Performance 12% 58 63% 391 349 36 14.9% 10.2% Q3FY19 Q3FY20 Q3FY19 Q3FY20 Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 186 30% 1,188 9M Performance 1,07
Slide 6: Gross Margin Performance – Pigments Business
Gross Margin Performance – Pigments Business 42.6% 42.8% 41.8% 40.6% 39.6% Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 • Q3FY20 Gross Margins bounced back to 42.8% from 40.6% for the corresponding period of the pervious year • 9MFY20 Gross Margins at 42.4%, at similar levels as compared to 42.6% for the corr
Slide 7: Robust Financial Performance – Pigments Business
Robust Financial Performance – Pigments Business Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 404 70 65 396 400 391 63 58 349 17.2% 16.3% 36 15.7% 15.6% 10.2% Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 • Q3FY20 and 9MFY20 income from operations at ₹ 391 cr
Slide 8: Key Ratios – Consolidated Financials
Key Ratios – Consolidated Financials Return on Capital Employed (annualized) Net Debt - Equity Ratio 18.5% 15.7% 0.6 0.6 FY19 Dec'19 FY19 Dec'19 Current Ratio Earnings per Share (annualized)* 1.5 17.7 1.4 12.7 FY19 Dec'19 FY19 Dec'19 Note: Previous quarter / year figures have been regrouped wherever
Slide 9: About Sudarshan
About Sudarshan 9
Slide 10: Our Company at a glance
Our Company at a glance… We are a leading world-class color solutions provider with a focus on exceptional and sustainable results. CONSOLIDATED MARKET PEOPLE BUSINESS GEOGRAPHIC REVENUES CAPITALIZATION 50+ sales team. FOCUS REACH FY19 turnover at INR ~2,200 cr+ 60+ channel partners. Pigment Largest
Slide 11: Our Mission, Vision & Values
Our Mission, Vision & Values Our growth is fueled by an immense drive to be a leading player in our field. MISSION World class Global Color Solution provider with an innovative and vibrant culture VISION To be amongst the top three pigment players in the world VALUES Seva (Service), Courage, Commitm
Slide 12: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy. Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with Building technical capabilities & Scaled up infrastructure
Slide 13: Our Global Presence
Our Global Presence Exports to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE Sudarshan Chemical Industries Limited NORTH AMERICA Sudarshan North Americas Inc. EUROPE Sudarshan Europe B.V. MEXICO CHINA Sudarshan Mexico S. de R.L de CV. Sudarshan (Shanghai) Trading Co Ltd. JAPAN Sudarshan Ja
Slide 14: Our Product Portfolio
Our Product Portfolio PIGMENTS ORGANIC INORGANIC Azo EFFECT Phthalos Chromes HPPs Cadmiums Mica base for Iron Oxides industrial and Dispersions cosmetics Organic Pigments Colored material made of organic compound with pigment properties. Commonly used for Coatings, plastics, Inks & Textile applicati
Slide 15: Pigments Application
Pigments Application Sudarshan is uniquely placed to offer a comprehensive range - general purpose grades, high performance and effect pigments. COATINGS PLASTICS INKS COSMETICS A pallete with a wide Effect pigments for High performance and General purpose and high spectrum of colors and cosmetics &
Slide 16: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard. COATINGS PLASTICS INKS COSMETICS Coatings remains a Market leaders in multiple Focus on niche applications prominent focus area with geographies offering wider li
Slide 17: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 18: Our Infrastructure
Our Infrastructure We spend over $4M every year on research, development & technical service and over $2M on environmental compliance with a $3.4M effluent plant. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. P
Slide 19: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan • Our estimate of the Global Colour Pigments Market is ~$ 10B, market USD opportunities open to Sudarshan are 0.6 ~$ 8.6B. Billion • Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 yea
Slide 20: Our Pillars of Growth
Our Pillars of Growth Growth will come from a focused approach to broaden product portfolio and renewed application focus. 01 Product Portfolio • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • Continued f
Slide 21: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & COMMERICAL ENVIORNMEMNT Faster launch of new and OPERATIONS EXCELLENCE EXCELLENCE SUSTAINABILITY innovative products, Lean & Six Sigma, Capex Improving reach, channel Best in
Slide 22: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by Recognized for the National operational excellence in Ensure safety of our
Slide 23: Shareholding and Market Performance
Shareholding and Market Performance Share Information SUDARSHAN BSE ALL CAP NIFTY 500 MSCI India Small Cap Index (as at 31st December 2019) 18.2% NSE Ticker SUDARSCHEM 7.3% BSE Ticker 506655 Market Cap (INR mn) 28,183 6.5% % free-float 39.0% -2.8% Free-float market cap (INR 10,991 mn) 01-Feb-19 01-A
Slide 24: Board of Directors
Board of Directors Mr. Pradeep Rathi Mrs. Subhalakshmi A. Panse (Chairman) (Non-Executive, Independent Director) Mr. Rajesh Rathi Mr. Naresh T. Raisinghani (Managing Director) (Non-Executive, Independent Director) Mr. Ashish Vij Mr. Sanjay K. Asher (Whole Time Director) (Non-Executive, Independent D
Slide 25: Awards and Accolades
Awards and Accolades Silver Award for Excellence HR Excellence Award 2018 ‘Dream Company to Work India CSR Award for CSR in Energy Management 1st in Chemicals & Fertilizer For’ in Chemical Sector Community Initiative 2017- (Chemical Sector) Sector World HRD Congress 2017 18 Global WasteMet DMAI Awar
Slide 26: Contact
Contact: Mr. Mandar M. Velankar +91 20 2622 6264 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162, Wellesley Road, Pune, Maharashtra - 411001 26
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