Dcw Ltd. · NSE:DCW
Dcw — Q3 FY2022 Earnings Presentation
39 slides from Dcw's earnings presentation, Feb 11, 2022
Slide 1: Letter to Stock Exchanges: Investors' Presentation
DCW LIMITED February 11, 2022 To, National Stock Exchange of India Ltd. | BSE Limited Exchange Plaza Bldg. Department of Corporate Services, 5th Floor, Plot No.C-1 15 floor, New Trading Ring ‘G’ Block, Near Wockhardt, Rotunda Building, Bandra Kurla Complex Phiroze Jeejeebhoy Towers, Mumbai 400 051.
Slide 2: DCW Limited Investor Presentation Q3 & 9MFY22
DCW LIMITED INVESTOR PRESENTATION- Q3 & 9MFY22
Slide 3: Disclaimer
DISCLAIMER The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate only as of the date it was originally issued. The figures mentioned in the data are rounded off. DCW Limited (“DCW” or the Company) strictly deni
Slide 4: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 5: DCW at a Glance
DCW AT A GLANCE Overview: • Established as Dhrangadhra Chemical Works in 1939 at Dhrangadhra, Gujarat as India’s first Soda Ash plant. • Expanded, diversified and modernized its operations with a diversified range of products for supply to customers in both, domestic and international markets since
Slide 6: Segment Overview
Segment Overview Specialty Chemicals Intermediate Chemicals Commodity Chemicals Synthetic HCl, Utox, Liquid Chlorine, Caustic C-PVC SIOP Sodium Bicarbonate, etc. Soda Ash PVC Rutile Soda ✓ Synthetic ✓ One of the ✓ Situated at ✓ Situated at rutile or ✓ Situated at ✓ Sole largest, ✓ Situated at Sahupu
Slide 7: Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals
Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals Niche, Diversified Product Mix Moving Up The Value Chain ✓ Diversified product mix of Commodity, Intermediate and Specialty Chemicals ✓ Increasing the contribution from high value, high margin Specialty Chemicals
Slide 8: Evolution – Moving Up The Value Chain
Evolution – Moving Up The Value Chain The Story So Far : Well Established Commodity Chemicals Player Transition Towards Specialty Chemicals & Self- Sufficiency 2016 Synthetic Iron Oxide (SIOP) Plant 2017 Country’s first and 1970 only C-PVC plant Synthetic Rutile and Integrated with technical PVC Res
Slide 9: Focus on Sustainable Growth & Long Term Value Creation
Focus on Sustainable Growth & Long Term Value Creation Internal Factors External Factors Strategic Operating Sustainable Growth Demand Government Initiatives Initiatives Drivers Initiatives ▪ Increasing share of ▪ Our demand for ▪ Government’s thrust Specialty Chemicals ▪ Re-Engineering various prod
Slide 10: Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities
Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities Exclusive Technological Tie-ups for Significant Scale-up Strategic Location Captive Power Plant Specialty Chemicals Opportunities ➢ India’s sole manufacturer of C- ➢ Sahupuram facility situated in ➢ 58 MW Cogen Pow
Slide 11: Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products
Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products Water Sahupuram Facility Flow Dhrangadhra Facility Flow Salt Material Ammonia Electrolysis Hydrogen Caustic Soda Raw Coal Salt Boiler Fly Ash PVC Plant Chlorine HCl Soda Ash Processing Steam Steam 50 MW PVC Resin Power Sodiu
Slide 12: Board of Directors – Wide Spectrum of Experience
Board of Directors – Wide Spectrum of Experience Mr. Pramod Jain, Chairman & Managing Director Mr. Bakul Jain, Managing Director • Overall 51 years of wide experience in the Industry • Overall 39 years of wide experience in the Industry • Under his leadership, the capacity of Soda Ash Plant at Dhran
Slide 13: Qualified Management with Deep Understanding of Chemicals Sector
Qualified Management with Deep Understanding of Chemicals Sector Mr. Amitabh Gupta, CEO Mr. S. Ganapathy, COO • Holds Bachelor’s degree in Physics, Chemistry and • M.Sc. - Chemistry & MMS – Marketing from Mumbai Mathematics and Master’s degree in Physics. University • Associated with the Company for
Slide 14: State Of The Art, Strategically Located Manufacturing Facilities
State Of The Art, Strategically Located Manufacturing Facilities Dhrangadhra Facility Sahupuram Facility Products Manufactured: Soda Ash, Ammonium Bicarbonate, Products Manufactured: Caustic Soda, PVC, SIOP, C-PVC, SR, Liquid Sodium Bicarbonate Chlorine, Utox, Hydrochloric Acid, Trichloroethylene, e
Slide 15: Our Esteemed Clientele
Our Esteemed Clientele Commodity Chemicals National Aluminium Company Finolex Industries Limited Hindustan Unilever Limited (HUL) (NALCO) Tamil Nadu Newsprint and Papers Ashirvad Pipes Pvt Limited Manali Petrochemical Limited Limited Specialty Chemicals Osaka Titanium Corporation, Japan TOHO Titaniu
Slide 16: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 17: Capacity Overview
Capacity Overview Specialty Chemicals Commodity Chemicals C-PVC SIOP Synthetic Rutile PVC Caustic Soda Soda Ash ✓ Installed ✓ Installed ✓ Installed ✓ Installed ✓ Installed ✓ Installed Capacity: Capacity: Capacity: Capacity: Capacity: Capacity: 10,00 TPA 27,000 TPA 42,000 TPA 90,000 TPA 96,000 TPA 1,
Slide 18: C-PVC – A Niche Play
C-PVC – A Niche Play Sole manufacturer of C-PVC in India C-PVC Business Overview Revenue (INR Million) • Sole manufacturer of C-PVC in India with technical license from Arkema, France 1486 • Commenced operations at Sahupuram facility in 2017, successfully ramped-up utilisation since then 1029 825 •
Slide 19: SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments
SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments Intermediate Chemicals provide high self-sufficiency and operating leverage to SIOP Business SIOP Business Overview Revenue (INR Million) • World’s first commercial scale Synthetic Iron Oxide Pigment to produc
Slide 20: PVC – Favourable market dynamics
PVC – Favourable market dynamics With favourable market dynamics, PVC is expected to drive the next leg of growth in commodity chemicals PVC Business Overview Revenue (INR Million) • DCW’s PVC plant is situated at Sahupuram, Tamil Nadu 7082 • Well positioned to take the advantage of growing domestic
Slide 21: Caustic Soda – Cautious, Calibrated Approach For Production
Caustic Soda – Cautious, Calibrated Approach For Production Due To Recent Fall In Prices Company posted healthy ~11.5% EBIT Margin & ~70% utilisation as of FY20 despite industry headwinds Caustic Soda Business Overview Revenue (INR Million) • Pioneer of Caustic Soda manufacturing in India • DCW’s ca
Slide 22: Soda Ash - Consistent, High Margin Commodity Business
Soda Ash - Consistent, High Margin Commodity Business Long term steady performance for key operating matrices - production and capacity utilisation Soda Ash Business Overview Revenue (INR Million) • DCW’s soda ash plant is situated at Dhrangadhra, Gujarat • Company’s soda ash business witnessed robu
Slide 23: Intermediate Chemicals – Effectively Complements Other Segments
Intermediate Chemicals – Effectively Complements Other Segments Intermediate Chemicals ensure the uninterrupted, cost-effective supply for value-addition products. Trichloroethylene Plant Intermediate Chemicals Overview • Wide range: Intermediate chemicals ensure self-sufficiency and additional sour
Slide 24: Intermediate Chemicals – Product Overview
Intermediate Chemicals – Product Overview Intermediate Chemical Capacity (TPA) Application Liquid Chlorine 36,000 Captive Consumption - C-PVC Hydrochloric Acid 90,000 Captive Consumption – Synthetic Rutile Trichloroethylene 7,200 Sold in open market Ferric Chloride 6,000 Captive Consumption – SIOP U
Slide 25: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 26: Q3FY22 Key Highlights
Q3FY22 KEY HIGHLIGHTS Speciality Chemicals Revenue up by 70% YoY EBITDA contribution EBITDA up by 53% YoY 26% Net Debt: Equity at 0.50 Interest cost down 5% SIOP Revenue up 67% QoQ, down consecutive in Dec’21 versus 0.73 as YoY for two quarters on FY21 Caustic Soda division CPVC and SIOP remains PAT
Slide 27: Q3FY22 Result – Key Highlights
Q3FY22 RESULT – KEY HIGHLIGHTS Q3FY22 YoY ANALYSIS In INR Million REVENUES EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 6,551.2 13.8% 3,860.8 70% 15.3% 53% 6.2% 4.10% 905.1 2.6% 408.6 1.60% 266.8 591.6 99.5 61.9 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 26
Slide 28: 9MFY22 Result – Key Highlights
9MFY22 RESULT – KEY HIGHLIGHTS 9MFY22 YoY ANALYSIS In INR Million REVENUES EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 17,475.0 14.2% 13.2% 61% 10,085.8 73% 2,308.1 -0.30% 3.40% 1,436.1 771.5 597.3 4.4% -26.8 -0.5% 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 -50.5 9MFY22 27
Slide 29: Segmental Performance – Revenue
SEGMENTAL PERFORMANCE Revenue Breakdown - By Segments (INR Million) Segments Q3FY22 Q3FY21 YoY% Q2FY22 QoQ% 9MFY22 9MFY21 YoY% PVC 3,354.3 2,079.0 61.3% 3,148.7 6.5% 8,969.0 4,490.0 99.8% Caustic Soda 1,892.8 657.1 188.0% 1,247.6 51.7% 4,794.5 2,748.0 74.5% Soda Ash 435.7 506.0 (13.9%) 510.1 (14.6%)
Slide 30: Segmental Performance – EBITDA
SEGMENTAL PERFORMANCE EBITDA Breakdown - By Segments (INR Million) Segments Q3FY22 Q3FY21 YoY% Q2FY22 QoQ% 9MFY22 9MFY21 YoY% PVC 563.0 378.4 48.8% 544.8 3.3% 1,199.1 650.6 84.3% Caustic Soda 148.6 (46.0) N.A. 17.8 734.1% 415.4 151.5 174.9% Soda Ash (56.5) 51.4 N.A. 29 N.A. (16.4) 125.6 N.A. C-PVC 2
Slide 31: PVC Business – Financial & Operating Metrics
PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Revenue from Operations 3,354.3 2,079.0 61.3% 8,969.0 4,490.0 99.8% EBITDA 563.0 378.4 48.8% 1,199.1 650.6 84.3% EBITDA Margin (%) 16.8% 18.2% (140 bps) 13.4% 14.5% (1
Slide 32: Caustic Soda Business – Financial & Operating Metrics
Caustic Soda Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Revenue from Operations 1,892.8 657.1 188.0% 4,794.5 2,748.0 74.5% EBITDA 148.6 (46.0) N.A. 415.4 151.1 174.9% EBITDA Margin (%) 7.8% (7.0%) N.A. 8.7% 5.5% 32
Slide 33: Soda Ash Business – Financial & Operating Metrics
Soda Ash Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Revenue from Operations 435.7 506.0 (13.9%) 1,352.9 1,338.0 1.1% EBITDA (56.5) 51.4 N.A. (16.4) 125.6 N.A. EBITDA Margin (%) (13.0%) 10.2% N.A. (1.2%) 9.4% N.A. K
Slide 34: C-PVC Business – Financial & Operating Metrics
C-PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Revenue from Operations 561.5 426.5 31.7% 1,526.6 1,026.6 48.7% EBITDA 211.4 168.9 25.2% 503.3 367.5 36.9% EBITDA Margin (%) 37.6% 39.6% (190 bps) 33.0% 35.8% (280 b
Slide 35: SIOP Business – Financial & Operating Metrics
SIOP Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Revenue from Operations 285.7 171.0 67.1% 696.4 373.2 86.6% EBITDA 25.1 24.5 2.8% 92.2 51.1 80.4% EBITDA Margin (%) 8.8% 14.3% (550 bps) 13.2% 13.7% (50 bps) Key Oper
Slide 36: Q3 & 9MFY22 Result – Profit & Loss Statement
Q3 & 9MFY22 RESULT – PROFIT & LOSS STATEMENT Particulars (INR Million) Q3FY22 Q3FY21 YoY % 9MFY22 9MFY21 YoY% FY21 Net Revenue from Operations 6,551.2 3,860.8 69.7% 17,475.0 10,085.8 73.3% 14,642.6 Other Income 12.8 17.0 (24.9%) 47.8 40.6 17.8% 113.3 Total Income 6564.0 3877.8 69.3% 17522.8 10126.4
Slide 37: Balance Sheet
BALANCE SHEET Asset (INR Million) Sept-21 March-21 Liabilities (INR Million) Sept-21 March-21 Non-Current Assets Equity & Liabilities Property, Plant & Equipment 13,710.1 14,069.2 Equity Share Capital 522.1 522.1 Capital Work in Progress 89.6 38.1 Other Equity 6,756.9 6,349.9 Financial Assets Total
Slide 38: Historical Performance at a Glance
HISTORICAL PERFORMANCE AT A GLANCE In INR Million REVENUES1 EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 15.1% 38 14,663 12.2% 0.3% 12.1% 2,207 13,528 1,655 -0.3% FY19 FY20 FY21 1,550 12,773 -43 -2.1% -268 FY19 FY20 FY21 FY19 FY20 FY21 LEVERAGE ANALYSIS RETURN METRICS (%) 1.05 0.82 0.73 12.5% 13.
Slide 39: For Further Queries
FOR FURTHER QUERIES: Mr. Dilip Darji Sr. General Manager (Legal) & Company Secretary Email: dilip.darji@dcwltd.com Mr. Chintan Mehta Email: dcw@dickensonworld.com Contact no: +91 9892183389 Ms Jennifer Jacob Email: jennifer@dickensonworld.com Contact no: +91 9769814130