Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q1 FY21 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, Aug 13, 2020
Slide 1: Sharda Cropchem Limited letter to NSE
Sharda Cropchem Limited Tel, : +91 22 66782800 @ FAX . +91 22 66782828 / 66782808 1SO 9001; 2015 Reg, No: 702949 E-mail : office@shardaintl.com CIN: L51909MH2004PLC145007 Regd. Office : Prime Business Park, Dashrathial Joshi Road, Vile Parle (W), Mumbai - 400056, India. www.shardacropchem.com SO Aug
Slide 2: Q1 FY21 Results Update
SHARDA CROPCHEM LIMITED Q1 FY21 RESULTS UPDATE August 2020
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 FY21 Result Highlights Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 5: Q1 FY21: Key Highlights
Q1 FY21: KEY HIGHLIGHTS Q1 FY21 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN * PAT & PAT MARGIN 27.4% 29.9% 13.8% 5.4% 7.2% 12.5% 4,206 3,889 279 582 228 7.5 % 16.5 % 486 22.6 % Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 * EBITDA excluding IA & IAUD write-off (Rs 10.4 mn
Slide 6: Q1 FY21: Key Performance Highlights
Q1 FY21: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues declined by 7.5% YoY to Rs 3,889.0 mn in Q1 FY21 • Region wise growth YoY – Europe: -3.1%, NAFTA: -10.3%, LATAM: 27.6% and RoW: -36.5%. • Gross profit grew marginally by 0.9% YoY to Rs 1,161.6 mn in Q1 FY21. Gross margin expanded by 2
Slide 7: Division Wise Highlights
Q1 FY21: DIVISION WISE HIGHLIGHTS In Rs Mn Q1 FY21 YoY ANALYSIS: REVENUE BREAKUP 4,206 3,889 Division Revenue Share % Q1 FY20 Q1 FY21 1,059 817 22.8 % Agrochemicals 74.8% 79.0% Non-Agrochemicals 25.2% 21.0% 3,147 2.4 % 3,072 Q1 FY20 Q1 FY21 Agrochemicals Non-Agrochemicals 6
Slide 8: Q1 FY21: Agrochemical Business
Q1 FY21: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 3,147 3,072 3,147 3,072 6.8% 7.1% 6.6% 6.7% 10.2% 13.2% 30.1% 28.7% 93.4% 93.3% 52.9% 51.0% Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Europe NAFTA LATAM RoW Formulations AIs • Revenues in Europe declined
Slide 9: Q1 FY21: Agrochemical Business
Q1 FY21: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 24% 28% Q1 FY20 Q1 FY21 49% 53% 23% 23% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues declined by 10.5% YoY in Q1 FY21 to Rs 1,497 mn • Fungicides revenues decline
Slide 10: Q1 FY21: Non-Agrochemical Business
Q1 FY21: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 1059 817 18.2% 34.5% 3.6% 1.7% 41.6% 39.3% 36.6% 24.5% Q1 FY20 Q1 FY21 Europe NAFTA LATAM RoW • Revenues in Europe grew by 15.1% in Q1 FY21 to Rs 299 mn • Revenues in NAFTA declined by 18.2% in Q1 FY21 to Rs 340 mn • Revenues in
Slide 11: Working Capital Analysis
Q1 FY21: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 139 135 113 119 73 73 Q1 FY20 Q1 FY21 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS Q1 FY20: 99 Q1 FY21: 89 * Calculated on average inventory, receivables and creditors 10
Slide 12: Consolidated Profit & Loss Statement
Q1 FY21: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY21 Q1 FY20 YOY% FY20 Revenue from Operations 3,889.0 4,205.7 -7.5% 20,030.1 COGS 2,727.4 3,054.2 -10.7% 13,886.0 Gross Profit 1,161.6 1,151.4 0.9% 6,144.0 Gross Margin % 29.9% 27.4% 249bps 30.7% Employee Expenses 83.9 80.6 4.0
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
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Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin* PAT & PAT Margin 19,978 20,030 17,066 22.2% 22.3% 20.2% 16.3% 17.5% 14.3% 13.6% 11.2% 8.8% 8.2% 13,992 12,186 3,124 3,454 3,267 3,506 2,714 1,751 1,904 1,908 1,763 1,647 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 30TH June 2020 % HOLDING MARKET DATA AS ON 12TH Aug 2020 HDFC MF 9.24% Market capitalization (Rs Mn) 28,171 L & T Mutual Fund 4.83% Price (Rs.) 312.3 No. of shares outstanding (Mn) 90.2 Pinebridge Global 3.92% Face Value (Rs.) 10.0 DSP M
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. Abhinav Agarwal Mr. Hiral Keniya / Chintan Mehta Chief Financial Office IR Consultant Email: cfo@shardaintl.com Email: shardcropchem@dickensonworld.com Contact No: +91 22 6678 2800 Contact no: +91 9029662801 / 9892183389