Coastal Corporation Limited · NSE:COASTCORP
Coastal — Investor Presentation (November 2019)
29 slides from Coastal's investor presentation, Nov 20, 2019
Slide 1: Cover letter to BSE: Corporate Presentation
Coastal SOVT. OF INDIA RECOGNISED v %& TWO STAR EXPORT HOUSE Regd. Off. : 15-1-37/3, Nowroji Road, Maharanipeta, Visakhapatnam - 530 002, INDIA Corporation Phone : 0891-2567118, Fax ; 0891-2567132 www.coastalcorp.co.in, Email : cclinvestors@gmail.com, info@coastalcorp.co.in Ltd gb Plant Unit 1 : Mar
Slide 2: Coastal Corporation Ltd Corporate Presentation November 2019
Coastal Corporation Ltd Corporate Presentation November 2019 1
Slide 3: About Coastal Corporation Ltd
About Coastal Corporation Ltd • Incorporated in the year 1981 as a private limited company, it was initially engaged into business of hiring of large trawlers from abroad for deep sea fishing and export of fish. • It came out with a Public Issue in the year 1986 • In the year 1986, it transformed it
Slide 4: Promoters
Promoters Mr. Valsaraj Thottoli Dr. Kambhampati Haribabu Managing Director Qualification : B. Tech (Chemical Qualification : Masters of Engineering) Engineering (Electrical) Age: 65 years Age: 66 years He holds a Bachelors Degree of Technology (in He holds a Masters Degree of Engineering (Electrical
Slide 5: Strong Management Team
Strong Management Team Name Designation Mr. Valsaraj Thottoli Chairman and Managing Director Mr. Ganta Veera Venkata Satyanarayana Whole-time Director designated as Director – Finance & CFO Mr. Venkata Suryanarayana Malakapalli Independent Non Executive Director Mrs. Jeeja Valsaraj Non Executive Dir
Slide 6: Two Modern Processing Facilities at Andhra Pradesh
Two Modern Processing Facilities at Andhra Pradesh Unit I: Marikavalasa, Vizag Unit II: Penugollu Dharmavaram, Vizag Capacity of the Unit I: Capacity of the Unit II: Plate Freezer – 17.5 MT per day Plate Freezer – 14 MT per day Individually Quick Frozen – 10 MT per day Individually Quick Frozen – 25
Slide 7: Certified Manufacturing Facilities
Certified Manufacturing Facilities All major Certifications / Accreditations in place: Hazard Analysis and Critical Control Point (HACCP) Export Inspection Council of India (EICI) Best Aquaculture Practices (BAP) British Retail Consortium (BRC) Halal (Islamic Council) European Commission
Slide 8: Awards & Recognitions
AWARDS & RECOGNITIONS Year Awards & Recognitions Excellence in Export through deep sea fishing during the year awarded by Ministry of Commerce 1992-1993 Govt. of India. 2014 National Award for Outstanding Entrepreneurship in MSME in the Medium Enterprises Category from the Ministry of Micro, Small a
Slide 9: Processing capability of diversed variety
Processing capability of diversed variety Coastal offers shrimps in various forms – raw frozen blocks and in IQF, cooked in frozen blocks and cooked in IQF form as per customers specifications. It has consistently moved up the value chain in it its product offerings by processing more and more value
Slide 10: Bouquet of Product Offerings
Bouquet of Product Offerings Headless Shell On (HL) Peeled Deveined Tail On (PDTO) Peeled Deveined Tail Off (PD) Pulled Vein Tail On (PVPDTO) Peeled Un-Deveined (PUD) Butterfly Shrimp Skewers Cooked Head On Cooked HL Shrimp Cooked HL Easy-Peel Shrimp Cooked PDTO Shrimp Cooked PD Shrimp 9
Slide 11: Catering to Reputed Clientele
Catering to Reputed Clientele SNo. Names of the Major Customers SNo. Names of the Major Customers 1 AZ GEMS INC 6 FOUR SEASON FOODS 2 BLUE SEA PRODUCTS LLC 7 J.F CLARKE CORPORATION 3 CHOICE CANNING 8 NATIONAL FISH 4 H&T SEAFOODS 9 PACIFIC CORAL SEAFOOD 5 DIRECT SOURCE 10 SOUTHWIND SEAFOODS 10
Slide 12: Global Sea Food Industry
Global Sea Food Industry Surging consumption of Sea Food in Developed and Developing Economies: Economic prosperity driving consumption pattern across geographies Consumer shift towards sea food as source of protein and increased demand for exotic varieties Expanding population, rising health
Slide 13: Aquaculture contribution on upswing
Aquaculture contribution on upswing Governments across world are implementing regulations placing limits on captures in order to curb overfishing and protect the biodiversity With sea food consumption growth outpacing production, emphasis on aquaculture is increasing Sustainable sea food and o
Slide 14: World Capture Fisheries & Aquaculture Production
World Capture Fisheries & Aquaculture Production Production Outlook till 2030 Increased contribution of Aquaculture Source: FAO 13
Slide 15: Top Ten Exporters – Importers of Fish & Fish Products
Top Ten Exporters – Importers of Fish & Fish Products Top Exporters Top Importers 2006 2016 2006 2016 Value (USD %ge Value (USD %ge Value (USD %ge Value (USD %ge Country Country Million) Share Million) Share Million) Share Million) Share China 8,968 10.4 20,131 14.1 USA 14,058 15.5 20,547 15.1 Norwa
Slide 16: India – Conducive Aquaculture Policy
India – Conducive Aquaculture Policy Policy Initiative by Government to fillip Aquaculture: 1. Ministry of Food Processing, Govt. Of India, is encouraging the enterpreneurs for establishing processing factories under “Scheme for Integrated Cold Chain and Value Addition Infrastructure by extending Rs
Slide 17: India – Share in global Sea Food to Increase
India – Share in global Sea Food to Increase India World Total % Share 250000 7.6% 7.5% 7.4% 200955 200000 7.2% 7.1% 170941 7.0% 150000 6.8% 6.7% 6.6% 109391 100000 6.4% 6.3% 80031 6.2% 50000 6.0% 10762 13407 5.8% 5700 8212 0 5.6% 2016 2030 2016 2030 Fish & Aquaculture Production Aquaculture Product
Slide 18: India – Emerging player in Sea Foods Exports
India – Emerging player in Sea Foods Exports Sustained Growth in Marine Product Exports Sustained Growth in Marine Product Exports (In '000 Tonnes) (USD Billion) 1,377 7.1 2017-18 2017-18 566 4.8 1,135 5.8 2016-17 2016-17 434 3.7 946 4.7 2015-16 2015-16 374 3.1 1,051 5.5 2014-15 2014-15 358 3.7 678
Slide 19: Coastal Corporation – Leading Industry Growth
Coastal Corporation – Leading Industry Growth Sales Trend • During the period 2014-15 to 2018-19, 10,000 900 Coastal grew its sales volume at a CAGR 9,000 785 8,447 8,768 800 of 27.5% as against India’s export CAGR 8,000 676.00 695.00 678.00 700 of 16.5% 654.00 7,000 6,542 600 • Realizations remaine
Slide 20: Embarking on Expansion Plans
Embarking on Expansion Plans Coastal has embarked upon expansion plans into a pre-processing unit, new processing unit and a solar power plant with an estimated total capex of around Rs 610 million: • Pre-processing Unit – estimated capex of Rs 70 million • New Processing Unit – estimated capex of R
Slide 21: Capex to drive Volume Growth
Capex to drive Volume Growth Pre-processing Unit: • De-bottlenecking at existing facilities • Increase capacity utilization from existing facilities • Volumes can increase by 15 tonnes per day New Processing Unit: • Brownfield expansion with additional capacity of 15 tonnes per day • Widen the value
Slide 22: Solar Plant to enhance Profitability
Solar Plant to enhance Profitability Solar Power: • Accelerated Depreciation benefit • Savings in Tax outgo • Reduce per unit power cost from around Rs. 7-8 per unit to around Rs. 3-4 per unit • Power cost savings to the tune of around Rs 40 Million annually Overall, Solar Investments would improve
Slide 23: Q2FY2020 Performance (Consolidated)
Q2FY2020 Performance Consolidated (Rs Million) Q2FY2020 Q2FY2019 % yoy Q1FY2020 % qoq FY2019 FY2018 % yoy Total Revenue 1,673 1,438 16.4 1,387 20.6 6,322 6,175 2.4 Raw Material Cost 1,437 1,098 30.9 1,176 22.2 5,365 5,472 (2) Employee Cost 31 30 2.2 27 15.6 131 130 1.3 Other Expenses 24 30 (19.9) 18
Slide 24: Q2FY2020 Performance (Standalone)
Q2FY2020 Performance Standalone (Rs Million) Q2FY2020 Q2FY2019 % yoy Q1FY2020 % qoq FY2019 FY2018 % yoy Total Revenue 1,425 1,125 26.7 1,115 27.9 4,839 5,100 (5.1) Raw Material Cost 1,210 820 47.6 916 32.1 3,921 4,453 (11.9) Employee Cost 20 17 19.4 17 16.5 77 89 (13) Other Expenses 20 24 (14.1) 10
Slide 25: Healthy Leverage and Return Ratios
Healthy Leverage and Return Ratios Leverage Position Return Ratios 1200 1.6 40.0% 1.5 1135 1.4 35.3% 1.4 35.0% 33.3% 1000 31.1% 1.2 30.0% 28.6% 800 764 739 722 1 25.0% 0.9 626 21.0% 603 600 0.8 20.0% 18.9% 513 17.6% 16.0% 428 0.6 15.0% 0.5 400 0.4 10.0% 200 0.2 5.0% 0 0 0.0% 2015-16 2016-17 2017-18
Slide 26: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (Rs Million) 2015-16 2016-17 2017-18 2018-19 (Rs Million) 2015-16 2016-17 2017-18 2018-19 Share Capital 25 25 25 102 Net Block 349 321 450 442 Reserves & Surplus 398 488 738 1,033 Capital Work-In-Progress 0 6 0 24 Networth 423 514 764 1,135 Other Non-Current Assets 149 2
Slide 27: Balance Sheet (Standalone)
Balance Sheet (Standalone) (Rs Million) 2015-16 2016-17 2017-18 2018-19 (Rs Million) 2015-16 2016-17 2017-18 2018-19 Share Capital 25 25 25 102 Net Block 343 314 441 435 Reserves & Surplus 412 542 800 1,146 Capital Work-In-Progress 0 6 0 24 Networth 438 567 826 1,248 Other Non-Current Assets 159 234
Slide 28: Safe Harbour
Safe Harbour This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of t
Slide 29: Thank You
Thank You For Further Information – contact: Mr Avinash Sahay Cell No.: + 91 70212 08525 research@bluestonefindelis.in 28