Epigral Ltd · NSE:EPIGRAL
Epigral — Q1 FY2025 Earnings Presentation
36 slides from Epigral's earnings presentation, Jul 24, 2024
Slide 1: Stock exchange cover letter for Q1 FY2025 investor presentation
24.07.2024 To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SYMBOL:- EPIGRAL Scrip Code: 543332 Dear Sirs, Sub.: Investors Presentation for Un-Audited Financial Results – Q
Slide 2: Epigral Limited Investor Presentation – Q1FY25
Epigral Limited (formerly known as Meghmani Finechem Limited) Investor Presentation – Q1FY25
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Epigral Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form
Slide 4: Q1FY2025 Result update
EPIGRAL Q1FY2025 Result update
Slide 5: Q1FY25 - Key Highlights
Q1FY25 - Key Highlights Q1FY25 Operational Highlights: o Volume grew 29% YoY and 14% QoQ. Major growth comes from Derivatives and Specialty business o Capacity utilization stood at 83% in Q1FY25 vs 71% in Q1FY24 o QoQ realizations dropped for all the products in range of 1% to 7%, except for Caustic
Slide 6: CMD Message
CMD Message “Epigral witnessed highest ever quarterly revenue of Rs. 651 cr in the quarter under review. The company delivered volume growth of 29% YoY and 14% QoQ; this growth is primarily attributed to efficient utilization of capacities and also volume from new projects commissioned. Revenue cont
Slide 7: Q1FY25 Financial Highlights
Q1FY25 Financial Highlights Revenue – YoY Growth: 43% EBIDTA – YoY Growth: 85% PAT – YoY Growth: 172% 651 30% 27% 525 15% 176 455 21% 155 13% 86 77 95 7% 32 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 ₹ Cr Margin -%
Slide 8: Key ratios as on 30th June 2024
Key ratios as on 30th June 2024 ROCE (%)*# ROE (%)* Net Debt/EBITDA (x)* 29% 25% 1.99 21% 21% 1.59 1.51 17% 17% Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 *TTM EBIT, PAT and EBITDA are considered for above ratios #Capital employed in ROCE includes Capital Work in Progress
Slide 9: Revenue Transition towards Derivatives & Specialty Chemicals
Revenue Transition towards Derivatives & Specialty Chemicals 63% 54% 53% 53% 52% 47% 48% 47% 46% 37% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 - Chlor-Alkali - Derivatives & Specialty Chemical
Slide 10: Capex Project Update as on 30th June 2024
Capex Project Update as on 30th June 2024 Capex Spends - ₹ Cr Expected % of project Product Capacity Commissioning completed Date CPVC Resin Commissioned 45 KTPA (Additional) 3rd April 2024 CPVC Commissioned 416 405 35 KTPA Compound 29th June 2024 258 Chlorotoluenes - Q2FY25 95% Value Chain 42 FY202
Slide 11: Income Statement
Income Statement Particulars (₹ Cr) Q1FY25 Q1FY24 YoY % Change Q4FY24 QoQ % Change Total Revenue 654 456 43% 526 24% Gross Profit 262 163 60% 230 14% Gross Margin (%) 40% 36% 44% EBITDA 176 95 85% 155 14% EBITDA Margin (%) 27% 21% 30% Depreciation 33 31 9% 30 10% Finance Cost 14 18 -22% 14 4% PBT 13
Slide 12: Company Overview
EPIGRAL Company Overview
Slide 13: Company Overview
Company Overview Founded: 2007 33% 28% 4 Year Revenue CAGR (FY24) 4 Year EBITDA CAGR (FY24) Employees: ~ 1000 0.8x 17% Debt to Equity (FY24) ROCE (FY24) Capacity: Chlor-Alkali# – 421 KTPA Derivatives# – 235 KTPA Revenue from operations (₹ Cr) 2,188 1,929 Certified: 1,551 Responsible Care Certificate
Slide 14: Our Journey
Our Journey FY 2007 FY 2010 FY 2015 FY 2017 FY 2020 Epigral Ltd (MFL) Commissioned 1st Increased capacity to Commissioned Commissioned incorporated Plant • Caustic Potash – • Chloromethanes – • Caustic Soda – 167 21 KTPA 50 KTPA • Caustic Soda – 119 KTPA KTPA • CPP – 60 MW Converted all Announced Ca
Slide 15: Our Values
Our Values Together, in caring and agile manner, we make it happen
Slide 16: Chlor-Alkali
Chlor-Alkali Caustic Soda (NaOH) Caustic Potash (KOH) Expected demand CAGR: ~ 8% Expected Demand CAGR: ~ 8% Alumina Textile Chemicals Agrochemicals API o We are 4th largest producer in India o We are 3rd largest producer in India o Caustic Soda is basic raw material and caters to many o Caustic
Slide 17: Derivative Products
Derivative Products Chloromethanes (CMS) Hydrogen Peroxide (H2O2) Expected demand CAGR: ~ 12% Expected demand CAGR: ~ 10% Solvent in Pharma PTFE Pipes Refrigerant Gas Paper & pulp Textile Chemicals o We are 5th largest producer in India o We are 3rd largest producer in India o CMS plant produces
Slide 18: Derivatives & Specialty Chemicals
Derivatives & Specialty Chemicals CPVC Resin CPVC Compound Expected demand CAGR: ~ 13% Expected demand CAGR: ~ 13% Pipes and Fixtures o Largest producer in India o Forward integration of CPVC Resin o Key raw material for heat resistant pipes o Cater to both CPVC Resin and CPVC compound customer
Slide 19: Derivatives & Specialty Chemicals
Derivatives & Specialty Chemicals Epichlorohydrin (ECH) Chlorotoluene Value Chain Expected demand CAGR: ~ 15% Expected demand CAGR: Double digit % Wind mill Automobile Adhesives Agrochemicals API o 1st company in India to produce sustainable bio based o 1st company in India to commission this va
Slide 20: Diversified and integrated portfolio
Diversified and integrated portfolio Fully Integrated Product Portfolio CPVC High Value Products Import Substitution – Make in India H2O2 ECH Chlor- Alkali Diversified End User Industries Chlorotoluene Sole Manufacturer of ECH in India CMS & value chain Diversifying Portfolio; De-Risking Business Mo
Slide 21: Fully Integrated Complex
EPIGRAL Fully Integrated Complex =» ce GEE Caustic Soda Flakes Caustic Soda istic Potash z ==D «°c» ae Chlorine Gas Pipeline CHES Ligue HEL 30% Methylene Dichloride Chloromethanes Hydrogen Chloroform Hydrogen Peroxide Carbon Tetra Chloride Dil. Sulfuric Acid 78% Hydrogen Gee mae Epichlorohydrin Hydr
Slide 22: Competitive Strength
Competitive Strength Well Invested Infrastructure Well established brand o State of the art manufacturing facility o Epigral is a known brand in Indian chemical market o Strategic location with close connectivity to ports o Serving domestic customers for last 14 Yrs and raw material availability. o
Slide 23: Catering to high growth industries
Catering to high growth industries Increased market potential & higher growth exposure Refinery Paper & Pulp Fluoropolymers Soap & Detergents Textiles Dyes & Pigment Pharmaceuticals Agrochemicals Alumina PU Foams Paints PTFE Pipes CPVC Pipes Refrigerant Gas Water Treatment Electronics The addressabl
Slide 24: Key Customers
EPIGRAL Key Customers \V carsotite Supreme’ ¢> SOLEeNIS. GFDL HSé Chemistry for Tomorrow People 4 who know plastics best a ‘The Chemical People AST Gavin) SNE AN ADITYA BIRLA Nad oe, PRINCE c£ipca Snir RS vedanta A dose of life GRASIM PIPES transforming for good
Slide 25: Capacities
Capacities Manufacturing Plant Capacity (KTPA) 400 - 75 60 50 50 35 21 Caustic Soda CPVC Resin CPVC Compound Epichlorohydrin Chlorotoluenes Value Chloromethanes Hydrogen Peroxide Caustic Potash Chain Expected Commissioning, * Commissioning date
Slide 26: Transitioning towards Derivatives & Specialty Chemicals
Transitioning towards Derivatives & Specialty Chemicals ~ 30% 45% FY2024Derivatives FY2027(E) 55% 26% ~ 70% Derivatives & Specialty Chlor-Alkali Derivatives & Specialty Chlor-Alkali Revenue from the derivatives and specialty segment to be ~ 70% by FY27E Derivatives & Specialty – CPVC Resin, Epichlor
Slide 27: Research & Development Centre
Research & Development Centre o A step towards strengthening presence in Specialty chemicals o Location Changodar, Ahmedabad o R&D center will be used for creating further molecules for Chlorotoluene and other new molecules, which will be intermediates for pharmaceutical and agrochemical active ingr
Slide 28: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Entered in JV to set up 18.34 MW W
Slide 29: Experienced and qualified board
Experienced and qualified board Mr. Maulik Patel Mr. Kaushal Soparkar Mr. Karana Patel Mr. Ankit Patel Chairman & Managing Director Executive Director Non-Executive, Non-Independent Director Non-Executive, Non-Independent Director He has 16 years of experience in the He has 15 years of experience in
Slide 30: Growth Strategy
Growth Strategy Forward & Backward Opportunities in high New Value Chains: Achieving economies Integration: growth sectors: of scale: o Scale up capacities in o Explore opportunities o Expand chemistry o Optimising existing existing products in various sectors expertise to enter complex o New value
Slide 31: Historical numbers
EPIGRAL Historical numbers
Slide 32: Financial Performance – P&L
Financial Performance – P&L Revenue from operations (₹ Cr) EBIDTA (₹ Cr and %) PAT (₹ Cr and %) 2,188 1,929 32% 33% 31% 32% 1,551 25% 689 18% 16% 16% 509 12% 10% 481 829 353 611 253 261 196 194 112 101 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023
Slide 33: Balance Sheet Ratios
Balance Sheet Ratios ROCE (%)# ROE (%) Net Debt/EBITDA (x) 39% 32% 36% 29% 2.70 17% 21% 2.10 1.99 16% 1.90 15% 17% 16% 1.30 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 #Capital employed in ROCE includes Capital Work in Progress
Slide 34: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY20 FY21 FY22 FY23 FY24 Total Revenue 613 831 1,555 2,196 1,936 Gross Profit 300 407 716 951 763 Gross Margin (%) 49% 49% 46% 43% 40% EBITDA 194 261 509 689 481 EBITDA Margin (%) 32% 32% 33% 31% 25% Depreciation 44 74 86 109 124 Finance Cost 11 29 44 66
Slide 35: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY22 FY23 FY24 Liabilities (₹ Cr) FY22 FY23 FY24 Fixed Assets 1,657 1,962 2,249 Share Capital 42 42 42 Financial Assets 8 28 29 Reserves & Surplus 684 1,028 1,213 Other Non-current Assets 11 23 14 Long-Term Borrowings 557 435 492 Inventories 154 212 263 Redeemabl
Slide 36: For further information
For further information Epigral Limited (Epigral), formerly known as Meghmani Finechem Ltd, incorporated in 2007, is a leading integrated manufacturer of chemicals in Please log on to website - www.epigral.com India. Epigral’s Dahej facility is a backward and forward integrated and automated complex