Slide 1: GHCL Limited Q3 FY22 Investor Update
GHCL LIMITED Q3 FY22 Investor Update DRIVING EXCELLENCE January 2022
Slide 2: Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and sh
Slide 3: Table of Contents
Table of Contents 4 17 Inorganic Chemicals Segment 24 Textiles Segment (Spinning) 33 3
Slide 4: Quarterly Update
Quarterly Update GHCL
Slide 5: Management Commentary
Management Commentary Commenting on the Q3 FY22 performance, Mr. R. S. Jalan, MD said: “Following easing of lockdown restrictions and improving macro trends, we witnessed enhanced traction across industries, almost back to pre-pandemic levels. Moreover, we observed sequential improvement during the
Slide 6: Performance Highlights – Q3 FY22
Performance Highlights – Q3 FY22 Q3 FY22 Vs 42% 38% 51% 48% 36% Q3 FY21 (Y-o-Y) Revenue EBITDA PBT PAT Cash Profit 1,006 crore 251 crore 206 crore 163 crore 197 crore Q3 FY22 Vs 25% 47% 63% 49% 37% Q2 FY22 (Q-o-Q) Note: Revenue, EBITDA and PBT are from continuing operations of Inorganic chemicals an
Slide 7: Performance Highlights – 9M FY22
Performance Highlights – 9M FY22 41% 41% 66% 82% 56% 9M FY22 Vs 9M FY21 Revenue EBITDA PBT PAT Cash Profit 2,510 crore 581 crore 448 crore 374 crore 477 crore Note: Revenue, EBITDA and PBT are from continuing operations of Inorganic chemicals and Spinning. PAT and Cash profit includes profits from d
Slide 8: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) 9M 9M Particulars Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q Y-o-Y FY22 FY21 Revenue from continued operations 1,006 709 42% 805 25% 2,510 1,775 41% Operating Expenses of continued operations 755 527 43% 634 19% 1,929 1,364 41% EBITDA from continued operations 251 183
Slide 9: Resource allocation & Key financial ratios
Resource allocation & Key financial ratios Efficient Capital Allocation ❖ Creating and sustaining Social And Borrowing Working Capital Relationship an enabling external environment for the 150 crore 103 crore business to flourish Financial ❖ Funds are being invested Rs. in various CAPEX projects 477
Slide 10: Q3 FY22 Segment Highlights – Inorganic Chemicals
Q3 FY22 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Particulars Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q Performance Highlights Revenue 765 528 45% 572 34% ❖ Revenues expanded by 45% supported by 12% EBITDA 182 148 23% 106 73% growth in volumes. Market trend continues to be EBITDA % 23.8% 28.
Slide 11: Q3 FY22 Segment Highlights – Textiles (Spinning)
Q3 FY22 Segment Highlights – Textiles (Spinning) (Rs. In Crore) Performance Highlights Particulars Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q ❖ Demonstrated strong performance with 34% gains in revenue, led by positive contribution from value- Revenue 241 180 34% 233 3% added portfolio • Robust demand scen
Slide 12: Divestment of HT Business and Demerger of Spinning Business
Divestment of HT Business and Demerger of Spinning Business Key features of the transaction Divestment of ❖ Divestment of Home Textiles Business by the Company and Sale of Identified Assets of US based wholly owned Non Strategic subsidiary, Grace Home Fashions LLC (GHF), to Indo Count Industries Lim
Slide 13: Demerger of the Spinning business of GHCL
Demerger of the Spinning business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Spinning business of GHCL will be demerged into a Focused GHCL Textiles Limited. growth Shareholders of GHCL will be allotted shares in GHCL textiles Limited in the swap ratio of 1:1,
Slide 14: Key developments
Key developments GHCL Limited signed a MoU (Memorandum of Understanding) with the Government of Tamil Nadu for investing INR 500 crore in the state • As per the MoU, GHCL will set up 40,000 ring spindles in Manaparai, Tiruchirappalli district to produce synthetic and synthetic blended yarn to cater
Slide 15: Strong Institutional & HNI Holding – ~41.4%
Strong Institutional & HNI Holding – ~41.4% Mutual Funds 15.11% Promoters & Promoters Group 19.07% Foreign Portfolio Investors 16.31% Insurance Companies / Financial Non-Institutional Holding Institutions / Banks (Incl. Corporates) 3.75% 39.57% HNI’s 6.19% 15 Note: Shareholding as of December 31, 20
Slide 16: Focus on driving responsible future growth
Focus on driving responsible future growth Inorganic Textiles Chemicals Debottlenecking of existing soda ash facility by 50k MT, along Expansion of Spinning facility by 40k spindles. with modular greenfield project. Focus on green energy-10 MW implemented and additional 12 Doubling RBC Capac
Slide 17: Company Overview
Company Overview 17
Slide 18: GHCL – An Introduction
GHCL – An Introduction Best-in-class 1 ❖ Focused management Targeting ❖ Operations management approach ❖ To grow profits at a CAGR 15%-18% on a long-term horizon ❖ CAPEX planning and execution ❖ Strategy led by professional ❖ To inculcate value systems that defines our culture ❖ Financial management
Slide 19: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda experience ash player in India Professionally managed Listed on 2 workforce premier stock exchanges of India Focus to emerge as a sustainable business Business Philosophy organization of Inclusive growth of all stakeholders 19
Slide 20: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA which was further increased to 5.25 Lakh MTPA 1988-2000 Commenced Edible Salt Production and Launched ‘Sapan’ salt Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequentl
Slide 21: Sustainability Vision 2023
Sustainability Vision 2023 GHCL’s business goals include Zero harm sustainability. To embed ❖ Zero reportable injuries ❖ Zero environmental incidences sustainability in business and operations, concentrating Responsible steward attention on material concerns ❖ 20% specific freshwater consumption red
Slide 22: Core Values at forefront
Core Values at forefront ❖ GHCL is a unique workplace which is dotted with its Core Values, defining its culture. ❖ Every employee in the Company is expected to imbibe its Core Values and interact within the business Integrated ecosystem with all its Respect Trust Ownership teamwork stakeholders acc
Slide 23: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Textiles) Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain R S Jalan (Independent Director) (Ind
Slide 24: Inorganic Chemicals
Inorganic Chemicals aS & bit z 4% w = % o eatcn — *Somnate Sova) ON BRAND BRAND sccianel par ne pave pa anv oe The choice of a healthy family!
Slide 25: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 26: 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 Globally, demand and prices of SA have improved in Q3 over last year. Cost pressures led by energy price increases impact manufacturers around the world. CAPACITY: 14.5 MMT PRODUCTION: 12.
Slide 27: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Market Share Domestic Demand & Growth Trend 27% (CAGR Growth of 5% during period upto FY 21) 25% 23% 20% 31 31 33 34 36 40 40 41 38 23 25 25 26 28 28 5% 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tata GHCL Nirma Others Im
Slide 28: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Historically, no mismatches in Demand supply as supply Scenario always followed demand globally Sustaining high utilization rates while maintaining periodic Excellence in Execution enhancement in capacities. Achieved through
Slide 29: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 29
Slide 30: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Domestic Demand Share Import 13% Doubled capacity DCW 9% from 30,000 to Nirma 13% 60,000 MT in GHCL 21% December 2017 Tata Chem 45% Generally Domestic Demand Concentration Specialization and named as baking West 16% experience in soda, bread South 21% manufac
Slide 31: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase; could be a game changer Animal Feed Chemicals 31
Slide 32: Marquee Clients
Marquee Clients & Y ac roost = BOROSIL FENA Hinduaten Unilever Limited LIMITED : @FENA PE, qratanau, SoLDs=PLus \(G Piramal 2 a i Si Ss : Glass : HINDUSTAN ZINC
Slide 33: Textiles Segment (Spinning)
Textiles Segment (Spinning)
Slide 34: Spinning performance at a glance
Spinning performance at a glance ❖ Remarkable performance over the time horizon; Poised to take leap in different league. ❖ Revenue contribution from value added yarn 40%. ❖ Best in class capacity utlilisation~99%. Particulars 9M FY22 FY 21 5 Years Avg 10 Years Avg Revenue 646 611 613 509 EBITDA 181
Slide 35: Our offerings
Our offerings Preferred supplier to premium buyers both at domestic and international level with its varied offerings. Yarn Type Range End Use 100% cotton combed Compact Hosiery yarn from Indian, US and Australian 25s to 60s Knitting Mix 100% cotton combed compact yarn from Indian, US, Australian, S
Slide 36: Spinners are likely to remain in sweet spot
Spinners are likely to remain in sweet spot Cotton continues to With trending #China remains cheaper in Second largest player Profitable expansion global scenario. plus 1# sourcing with 22% of spindles strategy, Indian players horizon, as insignificant capacity globally. are getting better spindles
Slide 37: Marquee Clients
Marquee Clients & qp j | \ MD raymond ACVIND AAT TTT DMM BRLAANY WELSPUN INDO COUNT SEELEY Vardhman Complete Comfort MANTAFIL Bggazgutagl |\4(SCRBIFTL. & posiri... * Bay
Slide 38: Awards & Recognitions
Awards & Recognitions Referred as Great Place to 5 Notch Upgrades in last 6 years Mine Award SIMA Technofacts Award work in five consecutive years GHCL Limestones Mines received GHCL Yarn division received SIMA of participation Mine award under A2 category at Technofacts Award at the 13th CEO 26th M
Slide 39: About Us
About Us GHCL Limited was incorporated on 14th October 1983. The Company has For more information, please visit us at established itself as a well-diversified group with an ascertained footprint in www.ghcl.co.in chemicals, textiles and consumer products segments. In chemicals, the Company mainly ma
Slide 40: Thank You
Thank You 40
Slide 41: Annexure 1- Q3 FY22 Segment Highlights – Textiles Including HT
Annexure 1- Q3 FY22 Segment Highlights – Textiles Including HT (Rs. In Crore) Particulars Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q Revenue 385 280 37% 415 (7%) EBITDA 88 56 56% 96 (8%) EBITDA % 22.9% 20.1% 2.8% 23.0% (10BPS) Textile – Quarterly Trend Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) 20.1% 385 22
Slide 42: Annexure 2 - Profit & Loss Statement – Including HT
Annexure -2 Profit & Loss Statement – Including HT (Rs. In Crore) Particulars Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q 9M FY22 9M FY21 Y-o-Y Revenue 1,150 809 42% 987 16% 2,992 2,028 47% Operating Expenses 880 605 46% 786 12% 2,331 1,577 48% EBITDA 270 204 32% 201 34% 660 451 47% EBITDA Margin 23.5% 25.3