Seya Industries Ltd. · NSE:SEYAIND
Seya Industries — Q1 FY2020 Earnings Presentation
24 slides from Seya Industries's earnings presentation, August 2019
Slide 1: Result Presentation August 2019
Profitable Growth Efficiency Niche Products Integration Long-term Relations Result Presentation August 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Seya Industries Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 3: Index
Index Sr. No. Particulars Page no. 1 Q1FY20 Performance Highlights 4 2 Company Overview 7 3 Industry Opportunity 13 4 Capex Update 14 5 Key Takeaways 16 6 Annual Performance Highlights 17 7 Promoter Commitment 23 8 Contact Us 24 3
Slide 4: Key Highlights
Key Highlights Sales Volume (MTPA) EBITDA (per tonne) Higher internal consumption – +72% Robust Demand for High-Margin Shift towards High-Margin Products 77,716 Products 73,480 5,053 4,871 45,081 4,599 4,504 4,665 FY18 FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Increased contribution from downst
Slide 5: Performance Trend
Performance Trend Y-o-Y basis Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +10% +28% -7% 105.1 37.9 23 98.2 34.5 18 3.6% 13.8% Sales Volume EBITA/Tonne (MTPA) (Rs.) Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q-o-Q basis Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) PAT (Rs. In Crs) +3% +12%
Slide 6: Q1FY20: Profit & Loss Statement
Q1FY20: Profit & Loss Statement Particulars (Rs. In Crs.) Q1FY20 Q1FY19 YoY % Q4FY19 Q-o-Q % FY19 Total Revenue (Net) 98.2 105.1 -6.6% 95.4 2.9% 412.8 Total Raw Material 48.0 60.8 46.6 213.1 Employee Expenses 1.7 1.5 1.7 6.4 Other Expenses 11.7 8.6 14.6 55.1 Other Income 1.1 0.3 1.2 2.2 EBITDA 37.9
Slide 7: Fully Integrated Benzene based Specialty Chemical Manufacturer
Fully Integrated Benzene based Specialty Chemical Manufacturer India’s only Single Location Fully Backward Integrated Benzene based Specialty Chemical Manufacturer Products with Profitable Product Technologically unmatched purity Fully Equipped Selection to capture driven to optimize standards - Str
Slide 8: Diversified Product Portfolio
Diversified Product Portfolio CHLORINATION Existing Products Up-coming Products MCB Expansion of Nitro AMMONOLYSIS MNCB Chloro Benzenes ONCB Sulphuric Acid PNCB OA & FRBB HYROGENATION 3,3 Dichloro Benzidine Sulphur trioxide based Specialty Chemicals NITRATION Para Nitro Aniline Oleums 25% & 65% HCL
Slide 9: Multiple End-users
Multiple End-users Industry-wise Revenue Breakup – FY19 AGRO PHARMACEUTICAL PETROLEUM Agro PRINTING INK PHARMA CHEMICALS INTERMEDIATES REFINING Chemicals, 2% Dye Intermediates, 15% Print Ink, 54% PIGMENT Pharma, TEXTILE COSMETICS & SYNTHETIC DETERGENTS & & 10% CHEMICALS COLORING AGENTS FABRIC SOFTEN
Slide 10: Broad-based Clientele
Broad-based Clientele Long term Relationships Increase Product Offering to Customers Technical Sales Support given to Customers No Customer contributes more than 10% of Revenue 10
Slide 11: Techno-commercial Leadership
Techno-commercial Leadership Mr. Ashok G. Rajani Mr. Amrit A. Rajani Chairman & Managing Director Chief Operating Officer & Chief Financial Officer • A Rank holder in Chemical Engineering from L.I.T. Nagpur, he started his career • Mr. Amrit is son of Mr. Ashok Rajani, has been associated with Seya,
Slide 12: with Strong Senior Management team
with Strong Senior Management team Mr. Asit Kumar Bhowmik Mr. H N Desai Executive Director Sr. Vice President • He is a Chemical Engineer with more than 41 years of experience in Chemical • He has more than 41 years of Experience in Project Management & Execution, Industries and has worked with Hind
Slide 13: Huge Industry Opportunity
Huge Industry Opportunity Chinese Chemicals industry is witnessing a Indian players can gain by updating product mix, India’s only Single Location – Fully Backward slowdown as a result of slower economic growth launching new specialty chemicals and more R&D Integrated Benzene based Specialty Chemica
Slide 14: Growth by way of Integration
Growth by way of Integration Backward Integration Phase II - Project Rationale ▪ Cost Savings, ▪ De-risking Material Sourcing, Particulars Savings ▪ Reducing Risk of Handling Hazardous Raw Material Cost Bulk Raw materials & Intermediates ▪ Corrosive Raw Material Savings presently procured at 1.5 tim
Slide 15: Execution of Strategy on Track
Execution of Strategy on Track Phase II (Rs. In Crs) Rationale 735 Additional Installed Capacity: 527,900 MTPA, ✓ 50% Capitve Consumption ✓ 30% for existing customers ✓ 20% to substitute import 585 Additional Revenue expected: 10-12 bn at 80% utilization Debt to Equity 100 1:1 50 Current Project Com
Slide 16: Key Takeaways
Key Takeaways Fully Automated Process Plant - Low manpower cost Operates in Profitable Segments Single location Composite Fully Value addition by way of backward & Forward Integration Recycle & Re-use of Manufacturing facility By-Products Low cost of Effluent treatment as a result of Higher Yield &
Slide 17: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. In Crs.) FY19 FY18 YoY % Total Revenue (Net) 412.8 346.2 19.2% Total Raw Material 213.1 200.3 Employee Expenses 6.4 4.6 Other Expenses 55.1 35.9 Other Income 2.2 1.0 EBITDA 140.4 106.5 31.9% EBITDA (%) 34.0% 30.8% Depreciation 16.0 15.1 EBIT 124.4 91.4 36.2%
Slide 18: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-19 Mar-18^ Equity & Liabilities (Rs. Crs.) Mar-19 Mar-18^ Non-current assets 1,429.5 1,127.9 Equity 929.0 740.3 Property, Plant and Equipment 731.4 742.2 Equity Share capital 24.6 24.6 Other equity 801.3 715.7 Capital Work In-Progress 685.9 378.7 Share Application
Slide 19: Performance Trend on Yearly basis
Performance Trend on Yearly basis Sales Volume (MT) Revenue (Rs. In Crs) EBITDA (Rs. / MT) 73,480 23,387 413 21,757 20,099 18,821 346 314 14,900 15,100 275 45,081 248 33,961 131 22,300 24,011 9,900 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17* FY18* FY19* FY14 FY15 FY16 FY17 FY18 FY19 EBITDA^ (
Slide 20: Strong Capital Employed
Strong Capital Employed Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 FY19 ROCE = EBIT / Net Capital Employed Equity = Share Capital + Reserves & Surplus 52.1 65.1 89.1 366.6 737.3 825.9 Quasi Equity: NCRPS + Unsecured Loans by Promoter + 32.2% 370.7 386.0 408.9 234.1 234.1 254.3 Share Application
Slide 21: Stable Asset Turnover
Stable Asset Turnover Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 FY19 Asset Turnover (x) Net Sales 131.5 247.6 275.3 308.6 346.2 412.8 1.30 1.20 Gross Block of Fixed Assets 406.2 412.1 464.9 503.1 838.8 843.9 1.10 1.10 1.10 Less: Unutilised Gross Block (Land for Future Expansion) 209.0 209.0 21
Slide 22: Financial Parameters
Financial Parameters Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 FY19 Debt/ Equity (x) Equity = Share Capital + Reserves & Surplus 52.1 65.1 89.1 366.6 737.3 825.9 0.48 Quasi Equity: NCRPS + Share Application Money + 370.2 386.0 409.0 234.1 234.1 254.3 0.32 Subordinated Unsecured Loans from Prom
Slide 23: Promoter Capacity and Commitment
Promoter Capacity and Commitment ✓ Promoter infused equity through warrants: Rs. 69 Crores at Rs. 180 per share ✓ Unsecured loans of Rs. 126.9 Crores converted to equity at Rs. 180 Per Promoter share Holding: 74.98% Equity ✓ Equity (private placement) infusion by Reliance Nippon Life AMC and Infusio
Slide 24: Contact Us
Contact Us For further information, please contact: Seya Industries Ltd CIN: L99999MH1990PLC058499 Ms. Neha Shroff Ms. Manisha Solanki Email: neha.shroff@sgapl.net Email : corporate@seya.in Tel: +91 77380 73466 www.sgapl.net www.seya.in Mr. Shrikant Sangani Email: Shrikant.Sangani@sgapl.net Tel: +91