Slide 1: GHCL Limited Q2 FY20 Investor Update
GHCL LIMITED Q2 FY20 Investor Update – October 2019
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 3: Agenda
Agenda Inorganic Quarterly & Company Textiles Chemicals Annual Update Overview Segment Segment 4 13 22 31 3
Slide 4: Quarterly Update Q2 FY20
Quarterly Update Q2 FY20 4
Slide 5: Management Commentary
Management Commentary Registered a strong PAT growth of 56% during the current quarter with Rs.122 crore from Rs.78 crore in Q2 FY19 despite of Commenting on the Q2 FY20 challenging economic scenario. performance, o Inorganic – Better margins and higher volumes compared to Q2FY19. Mr. R. S. Jalan,
Slide 6: Performance Highlights – Q2 FY20
Performance Highlights – Q2 FY20 Revenues EBITDA Profit Before Tax Profit After Tax -2% * 14% 23% 56% ` 826 crore ` 203 crore ` 142 crore ` 122 crore Segment-wise Revenue Domestic : Exports break-up** Revenue break-up** Exports, 18% Textiles, 36% Inorganic Chemicals, Domestic, 64% 82% * Primarily ow
Slide 7: Financial Update
Financial Update Q2 FY20 H1 FY 20 *Revenue (Rs. crore) Revenue (Rs. crore) 839 1,705 826 1,596 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 EBITDA (Rs. crore) Profit After Tax (Rs. EBITDA (Rs. crore) Profit After Tax (Rs. crore) crore) 203 425 122 332 226 179 78 140 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 H1 FY19 H1 FY2
Slide 8: Profit & loss Statement
Profit & loss Statement Rs. In Crore Particulars Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ Sales 826 839 -2% 879 -6% Operating Expenses 623 660 -7% 657 -8% EBITDA 203 179 14% 222 -9% EBITDA Margin 24.6% 21.3% 330 BPS 25.2% -66 BPS Depreciation 32 29 11% 31 -2% EBIT 171 150 14% 191 -10% Interest 29 34 -15% 30
Slide 9: Q2 FY20 Segment Highlights – Inorganic Chemicals
Q2 FY20 Segment Highlights – Inorganic Chemicals Performance Insights Particulars Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ Production increased by 30K MT in quarter due to Net Soda Ash Production Brownfield expansion completed last year. 2.62 2.31 13% 2.49 5% (Lac MT) Revenue growth by 2%, with inventory
Slide 10: Q2 FY20 Segment Highlights – Textiles
Q2 FY20 Segment Highlights – Textiles Performance Insights Revenue down by 7% as compared to Q2 FY19, which is primarily Particulars Q2 FY20 Q2 FY19 YoY Q1 FY20 QoQ due to weak scenario in spinning industry. EBITDA Margins – 159 BPS lower compared to Q2FY19 in line with Revenue (Rs. Crores)* 283
Slide 11: Efficient Capital Allocation (H1FY20)
Efficient Capital Allocation (H1FY20) CAPEX Generated Cash Rs. 124 crore Profits Inorganic Chemicals Rs. 104 crore (net of Tax) of Textiles (Mainly Spinning)Rs. 20 crore Rs. 289 crore SHAREHOLDERS Paid Dividend Rs. 59 Crore Rs. 8.28 crore ESOP Equity Issued DEBT Decrease in Debt of Rs. 183 crore OPE
Slide 12: Balance sheet & Key Financial Ratios
Balance sheet & Key Financial Ratios ROCE* ROE* Particulars Sept’19 Mar’19 Non Current Assets (A) 2,881 2,821 21% 21% Current Assets (a) 1,163 1,174 Current Liabilities (b) 511 491 Working Capital (B) = (a) – (b) 653 682 Capital Employed (A)+(B) 3,534 3,503 2,126 1,952 Net Debt- Net Worth (C) Net De
Slide 13: Company Overview
Company Overview 13
Slide 14: GHCL - An Introduction
GHCL - An Introduction 2nd Largest Best in class manufacturer of Operations management Soda Ash in India, with 25% CAPEX planning and execution market share Financial management 11.00 45 1.85L Day to day management and strategy led by professional Lac MT MN MT Spinning management team Soda Ash Proce
Slide 15: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda ash player in India experience Listed on 2 premier Professionally stock exchanges of managed workforce India Focus to emerge as a Business Philosophy of sustainable business Inclusive growth of all organization stakeholders 15
Slide 16: Balanced growth opportunities across businesses
Balanced growth opportunities across businesses Among top 3 soda ash players. Inorganic o Catering 1/4th of Indian soda ash demand o Margin leader in the industry; with highest capacity utilization of 90%+ Chemicals (64%*) Sodium Bicarbonate of 0.60 Lakh MT Margin leadership in the industry St
Slide 17: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash production capacity increased to Soda Ash capacity increased to 8.5 Lakh 9.75 Lacs MTPA MTPA Entered Spinning business with 65 K Doubled Sodium bicarbonate capacity to spindles subsequently increased to 140 K 60 K MTPA Commissioned Home Textile plant with
Slide 18: Spearheaded by Pre-eminent Professionals
Spearheaded by Pre-eminent Professionals NN Radia Sunil Bhatnagar Manu Kapur RS Jalan Raman Chopra President & COO, Soda Ash President Marketing, Soda Ash President & CEO, Home Textiles Managing Director CFO & Executive Director Finance Director Associated with the Company since Associated with the
Slide 19: Experienced and accomplished Board of Directors
Experienced and accomplished Board of Directors Mr. Sanjay Dalmia (Chairman) Dr. Manoj Vaish (Independent Director) Mr. Anurag Dalmia (Vice Chairman) Mr. Lavanya Rastogi (Independent Director) Mr. Neelabh Dalmia (Director) Mr. R.S. Jalan (Managing Director) Mrs. Vijaylaxmi Joshi (Independent Directo
Slide 20: Core values at forefront..
Core values at forefront.. Thoughtful and show regards for another person. GHCL is an unique work place which is dotted with its Core Values, defining its culture. Respect Every employee in the company is Confidence in expected to imbibe its Core Values and Trust each others capabilities interact wi
Slide 21: Strong Institutional & HNI Holding – 37.16%
Strong Institutional & HNI** Holding – 37.16% Institutional Holding – 32.29%, HNI’s**- 4.87% Non-Institutional Holding – 43.91% 19.48% 15.91% 12.95% Foreign Portfolio Mutual Body Corporates Investors Funds 18.93% Promoter & Promoter Group 24.43% 3.43% 4.87% Others Insurance Companies/ HNI’s** Financ
Slide 22: Inorganic Chemicals
Inorganic Chemicals 22
Slide 23: Commanding a leadership in manufacturing of Soda Ash
Commanding a leadership in manufacturing of Soda Ash Key Differentiators Single largest Soda ash plant in India at a single location +90% 11.00L MT Best in class productivity Capacity utilization; Soda ash capacity; Highest in industry 25% market share of domestic demand Soda Ash B2B to B2C with sup
Slide 24: Marquee Clients
& Marquee Clients GUJARAT BOROSIL LIMITED Glass
Slide 25: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Outlook GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT o Global economic weakness has resulted in softness in Soda Ash market. EUROPE CAPACITY: 14.5 MMT o China continue to face economic PRODUCTION: 12.0 MMT slowdown. Reported high Soda Ash pr
Slide 26: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share Domestic Demand Concentration. Tata West, 15% Import, Chem, North, 23% 20% South, 29% Others, 19% 5% GHCL, Nirma, 25% East, Gujarat, 27% 9% 28% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for
Slide 27: Soda ash used in colourful glass bangles
- industrial chemical used in the manufacturing SS a of colourful glass bangles.
Slide 28: Every cloth tells a story...
Every cloth tells a story... And we want to be the part of that story... Our Soda Ash is used in soaps and detergents to improve their cleaning properties.
Slide 29: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Doubled capacity from 30,000 to 60,000 MT in December 2017. Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire Extinguishers, pH balancer, and Cleaning agent Specialization and exper
Slide 30: Inorganic Chemicals – Consumer Products
Inorganic Chemicals – Consumer Products Premium edible Salt Manufacturer in South India Expanding product portfolio i.e. Salt, Honey, Spices and Powder Spices under the brand i-FLO. Ventured into the Premium Honey Category by pioneering the entry of Jujube Honey Under powdered spices categor
Slide 31: Textiles Segment
Textiles Segment 31
Slide 32: Sustainability
Sustainability Traceability Innovation Giving Back to Society GHCL's Home Textile 4 Pillar Strategy 32
Slide 33: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain 1.85 Lacs Spindles, 3,320 Rotors, 5,760 TFO Drums, 5 Air jet Spinning Machines 12 Mn Meters 45 Mn Meters 30 Mn Meters Bed Sheets & Spinning Weaving Fabric Processing Cut & Sew Made-up’s Also sold in Sold in Market Market Spi
Slide 34: Marquee Clients
eS Marquee Clients BED BATH & BEYOND KOHLES Dillard’s amazoncom — BEZ Revman Internationa’ canningvale >< Walmart.com Sainsbury's
Slide 35: Reinventing the to
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags 35 Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL
Slide 36: Viscose and recycled polyester products
‘90% VISCOSE, 20% RECYCLED POLYESTES ‘Wiacose - made fram woad beved cllulse | Lock and fee f oottan ‘Same properties af comfort, breathability, abeorbancy Sustahatle Fully Hodegradable ‘ope dyeing of Viecose - try sustainable Colorants acted in spinning - ro dyeing or washing need Reduction in wate
Slide 37: Less than a tenth of all plastic produced globally is recycled
Less than a tenth of all plastic produced globally is recycled. A vast majority of the rest is dumped in landfills and in the oceans. Small plastic pieces of less than 5 mm size or micro plastics, are major ocean pollutants. They are ingested by aquatic micro organisms which then get into food chain
Slide 38: Organic cotton and sustainable collections
THE SPIN WIN PocLeectiane ‘51% COMBER NOIL, 49% ORGANIC COTTON NATURUG yoru oping Beare Using Comber Noil instead of Colton ems COLLECTION RO, reduces the consumption of water by ‘cround 3200 gallons per sel 100% ORGANIC COTTON NATURAL, SCOURED DOBBY Global Recycled Standard certified Natural scoure
Slide 39: Focus on driving profitable growth
Focus on driving profitable growth Modular, phase-wise capex to give sustained volume growth Emphasis on high efficiency in operations Exploring Modular Greenfield Soda Ash expansion Soda Continuing to drive performance in Ash Expanding product spinning. Value- portfolio and added products
Slide 40: Awards & Recognitions
Awards & Recognitions Referred as Great Place to Awarded trio of Golden work in three consecutive Peacock awards for Corporate years of participation Governance, Corporate social Amongst top 25 ranking for responsibility and National manufacturing industry Quality 4 Notch Upgrades in last 4 years In
Slide 41: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company has established itself as a well-diversified group with an ascertained Contact Us: footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 42: Thank You
Thank You