Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q3 FY2018 Earnings Presentation
18 slides from Sharda Cropchem's earnings presentation, January 2018
Slide 1: Sharda Cropchem Limited Q3 & 9M FY18 Results Update
SHARDA CROPCHEM LIMITED Q3 & 9M FY18 RESULTS UPDATE January 2018
Slide 2: 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 3: Discussion Summary
DISCUSSION SUMMARY Q3 & 9M FY18 Results Highlights Q3 & 9M FY18 Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q3 & 9M FY18 Results: Key Highlights
Q3 & 9M FY18 RESULTS: KEY HIGHLIGHTS Q3 FY18 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 34.9% 13.3% 7.3% 28.9% 11.0% 3.0% 34.0% 3,254.6 10.2% 176.3 43.8% 2,428.9 323.5 356.6 99.1 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Revenues Gross Margin % EBITDA
Slide 5: Q3 & 9M FY18 Results: Key Highlights
Q3 & 9M FY18 RESULTS: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q3 FY18 Revenues increased by 34% YoY from Rs. 2,428.9 mn to Rs. 3,254.6 mn. • Region-wise growth YoY– Europe: 40.3%, NAFTA: 80.9%, LATAM: 1.5%, ROW -16.5% • Q3 FY18 gross profit increased by 10.6% YoY from Rs. 848.7 mn to Rs. 939.0 mn. Gross
Slide 6: Q3 & 9M FY18 Results: Division Wise Highlights
Q3 & 9M FY18 RESULTS: DIVISION WISE HIGHLIGHTS In Rs Mn Q3 & 9M FY18 YoY ANALYSIS: REVENUE BREAKUP 9,447 8,043 1,555 2.4% 1,518 3,255 2,429 553 553 7,892 44.0% 6,525 21.0% 2,702 1,876 Q3 FY17 Q3 FY18 9M FY17 9M FY18 Agrochemicals Non-Agrochemicals Agrochemicals Non-Agrochemicals Division Revenue Sha
Slide 7: Q3 & 9M FY18 Results: Agrochemical Business
Q3 & 9M FY18 RESULTS: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 1,876 2,702 6,525 7,892 1,876 2,702 6,525 7,892 8.7% 11.3% 7.6% 13.2% 10.5% 19.0% 22.9% 16.5% 16.0% 14.3% 17.2% 17.1% 24.1% 35.5% 40.1% 28.3% 86.8% 89.5% 83.5% 77.1% 47.4% 42.6% 35.
Slide 8: 9M FY18 Results: Agrochemical Business
9M FY18 RESULTS: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 27% 25% 9M FY17 44% 9M FY18 46% 29% 29% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues have grown by 27.3% YoY in 9M FY18 to Rs 3,646.9 mn • Fungicides reve
Slide 9: Q3 & 9M FY18 Results: Non-Agrochemical Business
Q3 & 9M FY18 RESULTS: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 553 553 1,518 1,555 16.8% 18.5% 20.3% 25.3% 7.6% 27.6% 8.4% 20.7% 34.2% 40.2% 31.2% 34.8% 24.4% 32.1% 26.0% 31.9% Q3 FY17 Q3 FY18 9M FY17 9M FY18 Europe NAFTA LATAM RoW • Revenues in Europe & NAFTA region have risen
Slide 10: 9M FY18 Results: Working Capital Analysis
9M FY18 RESULTS: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 154 129 109 95 97 77 9M FY17 9M FY18 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS 9M FY17: 43 9M FY18: 52 * Calculated on average inventory, receivables, creditors 10
Slide 11: Q3 & 9M FY18 Results: Consolidated Profit & Loss Statement
Q3 & 9M FY18 RESULTS: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY18 Q3 FY17 YoY % 9M FY18 9M FY17 YoY % FY17 Revenue from Operations 3,254.6 2,428.9 34.0% 9,447.4 8,043.2 17.5% 13,992.3 COGS 2,315.6 1,580.2 46.5% 6,418.1 5,162.0 24.3% 8973.7 Gross Profit 939.0 848.7 10.6% 3,029
Slide 12: 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 13: About Us: Our Presence
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Slide 14: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 16 % 13,992 CAGR: 22 % CAGR: 23 % 12,186 18% 20% 16% 22% 22% 14.1% 14.4% 13.6% 10,611 10.8% 11.6% 7,777 7,904 3,124 2,669 1,750 1,904 1,400 1,543 1,727 1,111 1,230 844 FY13 FY14 FY15 FY16 FY17 FY13 FY14
Slide 15: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Key Institutional Investors – 31st Dec 2017 % Holding Market Data As on 25th January 2018 DSP Blackrock Investment Manager 6.27% Market capitalization (Rs Mn) 40,761.4 HDFC MF 4.56% Price (Rs.) 451.9 Pinebridge Investments 4.00% No. of shares outstanding (Mn) 90.2 Go
Slide 16: 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 17: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Forward Integration - ▪ Leverage market presence and execution capabilities. Build own Sales Force ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider. Expand & Strengthen ▪ Expand geographical reach using existing library of dossiers. Distribution
Slide 18: For Further Queries
FOR FURTHER QUERIES: Mr. Conrad Fernandes Ms. Pushpa Mani / Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: cfernandes@shardaintl.com Email: pushpa.mani@dickensonir.com / nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9911684123 / 9819289131