Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q1 FY20 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, Jul 25, 2019
Slide 1: Cover letter to National Stock Exchange
Sharda Cropc'lena Linaitet' TeL : +91 2266782800 ISO 9001: 2015 Reg. No : 702949 FAX: + 91 22 66782828 / 66782808 E-mail : office@shardaintl.com CIN : L51909MH2004PLC145007 Regd. Office: Prime Business Park , Dashrathlal Joshi Road, Vile Parle 0N) , Mumbai - 400056, India. www.shardacropchem .com Ju
Slide 2: Sharda Cropchem Limited Q1 FY20 Results Update
SHARDA CROPCHEM LIMITED Q1 FY20 RESULTS UPDATE July 2019
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 4: Discussion Summary
DISCUSSION SUMMARY ❑ Q1 FY20 Result Highlights ❑ Consolidated Financials ❑ About Us ❑ Business Model ❑ Business Strategy & Outlook 3
Slide 5: Q1 FY20: Key Highlights
Q1 FY20: KEY HIGHLIGHTS Q1 FY20 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 31.0% 27.8% 18.7% 14.0% 7.5% 5.4% 4,561 855 4,230 342 592 228 7.3 % 30.8 % 33.5 % Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 4
Slide 6: Q1 FY20: Key Performance Highlights
Q1 FY20: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues declined by 7.3% YoY from Rs 4,561.3 mn in Q1FY19 to Rs 4,230.0 mn in Q1FY20 • Region wise growth YoY – Europe: -15.2%, NAFTA: 18.2%, LATAM: -39.4% and RoW: 5.0%. • Gross profit declined from Rs 1,414.8 mn in Q1FY19 to Rs 1,175.8 mn Q
Slide 7: Q1 FY20: Division Wise Highlights
Q1 FY20: DIVISION WISE HIGHLIGHTS In Rs Mn Q1 FY20 YoY ANALYSIS: REVENUE BREAKUP 4,561 4,230 781 Division Revenue Share % Q1 FY19 Q1 FY20 1,059 35.6 % Agrochemicals 82.9% 75.0% 3,780 Non-Agrochemicals 17.1% 25.0% 16.1 % 3,171 Q1 FY19 Q1 FY20 Agrochemicals Non-Agrochemicals 6
Slide 8: Q1 FY20: Agrochemical Business
Q1 FY20: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 3,780 3,171 3,780 3,171 6.7% 7.8% 6.6% 9.3% 13.5% 10.2% 24.9% 30.1% 92.2% 93.4% 52.4% 53.0% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Europe NAFTA LATAM RoW Formulations AIs • Revenues in Europe declined
Slide 9: Q1 FY20: Agrochemical Business
Q1 FY20: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 26% 23% Q1 FY19 47% Q1 FY20 53% 24% 27% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues declined by 5.7% YoY in Q1FY20 to Rs 1,688 mn • Fungicides revenues declined
Slide 10: Q1 FY20: Non-Agrochemical Business
Q1 FY20: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 781 1,059 25.8% 34.5% 7.2% 1.7% 27.7% 39.3% 39.3% 24.5% Q1 FY19 Q1 FY20 Europe NAFTA LATAM RoW • Revenues in Europe declined by 15.4% in Q1 FY20 to Rs 260 mn • Revenues in NAFTA grew by 92.2% in Q1 FY20 to Rs 416 mn • Revenues i
Slide 11: Q1 FY20: Working Capital Analysis
Q1 FY20: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 150 139 113 102 69 73 Q1 FY19 Q1 FY20 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS Q1 FY19: 117 Q1 FY20: 99 * Calculated on average inventory, receivables, creditors 10
Slide 12: Q1 FY20: Consolidated Profit & Loss Statement
Q1 FY20: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY20 Q1 FY19 YOY% Revenue from Operations 4,230.0 4,561.3 -7.3% COGS 3,054.2 3,146.6 -2.9% Gross Profit 1,175.8 1,414.7 -16.9% Gross Margin % 27.8% 31.0% -322bps Employee Expenses 80.6 81.9 -1.6% Other Expenses 503.7 478.1 5.4%
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW ▪ Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registrat
Slide 14: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropehem Limited of ° cose 232 13
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 17 % 20,011 CAGR: 21 % CAGR: 9 % 17,066 16.3% 22.2% 22.3% 20.2% 18.6% 14.3% 11.6% 13.6% 11.2% 8.8% 13,992 12,186 10,611 3,454 3,716 3,124 1,751 1,904 1,908 1,763 2,714 1,727 1,230 FY15 FY16 FY1
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 30TH Jun 2019 % HOLDING MARKET DATA AS ON 23rd JULY 2019 HDFC MF 8.92% Market capitalization (Rs Mn) 27,066 L & T Mutual Fund 4.72% Price (Rs.) 300.0 No. of shares outstanding (Mn) 90.2 Pinebridge Investments 4.23% Face Value (Rs.) 10.0
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK ▪ Leverage market presence and execution capabilities Forward Integration - ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force ▪ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Ashish Lodha Mr. Mitul Bhagat Chief Financial Officer IR Consultant Email: alodha@shardaintl.com Email: mitul.bhagat@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 8898214083