Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q2 FY2024 Earnings Presentation
33 slides from Himadri Speciality Chemical's earnings presentation, Oct 17, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
Ref. No: HSCL / Stock-Ex/2023-24/74 Date: 17/10/2023 E-mail: monika@himadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kurla Complex, Dalal Stree
Slide 2: Transformation Unfolds.. Investor Presentation October 2023
TRANSFORMATION UNFOLDS.. Sustainable High Growth Capital Disciplined Business Opportunity Balance Sheet Investor Presentation | October 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Where Sustainability Meets Innovation: Power the Future
Where Sustainability Meets Innovation POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 3
Slide 5: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a More than 90% of the green, long-term EV and power requirement being renewable energy solution met by inhouse generated by providing critical raw clean and green power material Energy Conservation through Waste Heat Recover
Slide 6: Net Zero Roadmap
Net Zero Roadmap Research Adapt • Explore innovative methods for capturing • Implement new energy sources and and transforming carbon emissions. technology advancements. • Utilize upcoming technologies to capture • Integrate renewable energy solutions for and convert carbon dioxide into value- reduc
Slide 7: Net Zero Roadmap (Scope 1 & 2)
Net Zero Roadmap (Scope 1 & 2) Scope 3 – Assessment is going on. At exit of 2023 we shall strategize the same as well Reduce 10% by 2025 Reduce 10% 2030 Reduce 80% 2050 Reduce emissions by improving Adapt and implement circular ACHIEVE NET-ZERO EMISSION and using greener technologies material-focuse
Slide 8: Status of Sustainability Objectives
Status of Sustainability Objectives Objectives Measures Target FY2023 FY2023 Progress Main Domain UNGC -SDGs (Baseline Progress vs (1st Apr'22 - 2021) Plan 31st Mar’23) Vison Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1 <1 2.27 People By 2025, Reduce Energy Intensity per
Slide 9: Quarterly PAT crossed Rs. 100 Cr - A new milestone achieved
Quarterly PAT crossed Rs. 100 Cr - A new milestone achieved ✓ ✓ ✓ Record Sales Volumes Increase in EBITDA Increase in PAT in Q2FY24 Sales Volumes of EBITDA increased by PAT increased by 1,10,211 MT in Q2FY24 64% to Rs. 156 Crores 246% to Rs. 101 Highest Ever Achieved in Q2FY24 Crores in Q2FY24 Sales
Slide 10: Strong Balance Sheet with Growing Returns
Strong Balance Sheet with Growing Returns Net Debt (Rs. In Crs) Net Debt to EBITDA ROCE 583 569 4.57x 18% 16% 315 1.95x 200 6% 1.11x 4% 0.49x Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 ▪ Long term debt reduced by Rs 20 crs ▪ Higher working capital due to book
Slide 11: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobil
Slide 12: Positioned strong to cater the global demand for LiB raw materials: Recycling
Positioned strong to cater the global demand for LiB raw materials LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO2 emission The Global Availability of
Slide 13: Positioned strong to cater the global demand for LiB raw materials: Cathode
Positioned strong to cater the global demand for LiB raw materials Cathode • Significance – 50-55% of Cell cost Himadri has a strong R&D focus on LFP cathode chemistry • Cathode Chemistry – LFP (lithium iron phosphate) & NMC (nickel manganese cobalt) • Integration – Product that significantly impact
Slide 14: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 15: Transformation Unfolds
Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon » Graphite Grade Binder Pitch Black Oil/ CT Oil 2010 »
Slide 16: Research & Development Initiatives: Anode Materials
Research & Development Initiatives Anode Materials Silicon-based Anode o Natural Graphite Materials o Synthetic Graphite o Hybrid Anode 15
Slide 17: Research & Development Initiatives: Cathode Materials
Research & Development Initiatives Cathode Materials o Next generation iron based cathode Graphene – Next generation product o Alternate chemistries 16
Slide 18: Financial Performance Q2 & H1FY24
Financial Performance Q2 & H1FY24 17
Slide 19: Performance Trajectory Continues
Performance Trajectory Continues Sales Volume (MT) Revenue (Rs. In Crs) EBITDA (Rs. In Crs) PAT (Rs. In Crs) +14% +64% +246% -5% 1,10,211 1,059 156 101 1,01,030 1,005 96,502 951 88 131 95 29 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Increase in profitability
Slide 20: Standalone Profit & Loss Statement – Q2 & H1 FY24
Standalone Profit & Loss Statement – Q2 & H1 FY24 Particulars (In Rs. Crs) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y Net Revenue From Operations 1,004.52 1,058.91 -5.14% 950.91 5.64% 1,955.43 2,105.55 -7.13% Cost of Materials Consumed 725.71 830.03 700.42 1,426.13 1,661.69 Gross Profit 27
Slide 21: Consolidated Profit & Loss Statement – Q2 & H1 FY24
Consolidated Profit & Loss Statement – Q2 & H1 FY24 Particulars (In Rs. Crs) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Y-o-Y Net Revenue From Operations 1,004.52 1,058.91 -5.14% 950.91 5.64% 1,955.43 2,105.55 -7.13% Cost of Materials Consumed 724.59 822.20 700.86 1,425.45 1,653.22 Gross Profit
Slide 22: Capital Disciplined Balance Sheet
Capital Disciplined Balance Sheet Net Debt (Rs. In Crs) Long Term Borrowings (Rs. In Crs) Significant reduction 583 569 in Long Term Debt 124 132 315 200 93 73 Mar-21 Mar-22 Mar-23 Sep-23 Mar-21 Mar-22 Mar-23 Sep-23 Net Debt to EBITDA Net Working Capital Days 4.57x 153 116 1.95x 62 69 1.11x 0.49x Ma
Slide 23: Standalone Balance Sheet
Standalone Balance Sheet Particulars (in Rs. Crs.) Sept’ 23 Mar’ 23 Particulars (in Rs. Crs.) Sept’ 23 Mar’ 23 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2116.49 1729.97 EQUITY 2482.12 2215.60 Property, Plant and Equipment 1460.37 1431.78 Equity Share Capital 44.00 43.27 Capital work-in-progre
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (in Rs. Crs.) Sept’23 Mar 23 Particulars (in Rs. Crs.) Sept’23 Mar’23 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2174.55 1793.04 EQUITY 2541.04 2277.69 Property, Plant and Equipment 1513.45 1488.13 Equity Share Capital 44.00 43.27 Other Equity 2499.79 223
Slide 25: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Crs.) Sep-23 Sep-22 Sep-23 Sep-22 Profit Before Tax 259.66 83.81 257.98 90.19 Adjustments for: Non-Cash Items / Other Investment or Financial Items 31.15 74.22 33.81 68.55 Operating profit before working capital changes 290.81 158.03 291.7
Slide 26: Business Overview: Integrated Business Model
Business Overview Integrated Business Model 25
Slide 27: Our Ethos - We Care, We Innovate
Our Ethos - “ We Care, We Innovate” Innovation To deliver value-added products across segments Sustainability Sustainable business model : We care for the Environment Employee Care Our most valuable assets 26
Slide 28: Strong Research & Development
Strong Research & Development 01 World Class Laboratory New brands introduced with multiple grades catering to different application segments 02 An Innovation Mindset of Speciality Carbon Black Continuous working on reducing energy consumption 03 Continuous R&D in certain processes Focusing on new p
Slide 29: Current Product Portfolio
Current Product Portfolio Coal Tar Pitch Carbon Black Speciality Carbon Black Refined Naphthalene Largest Indian player 3rd Largest player in India Largest Indian Player Largest Indian Player Battery Material SNF / PCE Speciality Oils Power Dominant player in India Niche segments in India Green Powe
Slide 30: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 29
Slide 31: Marquee Clients across Industries
Marquee Clients across Industries The brand names/logos mentioned are the property of their respective owners and are used here for identification purpose only 30
Slide 32: Future Strategy: Unparalleled access to growth opportunities
Future Strategy Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Location Team Transformation Unfolds Addressing the needs of critical ra
Slide 33: Thank You
Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika EVP - CTD & Strategy Email: ssatnalika@himadri.com www.himadri.com Thank You Investor Relations Advisors : Ms. Payal Dave : +91 9819916314 payal.dave@linkintime.co.in Mr. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in www.orientcap.
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