Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q2 FY2022 Earnings Presentation
28 slides from Meghmani Organics's earnings presentation, Oct 27, 2021
Slide 1: Exchange filing cover letter for Q2 FY22 investor presentation
ORGANICS LIMITED Chemistry of Success at Work Ref: MOL/2021-22/21 October 26, 2021 To, To, National Stock Exchange of India BSE Limited Limited Floor- 25, P J Tower, “Exchange Plaza”, Bandra-Kurla Dalal Street, Complex, Mumbai 400 001 Bandra (East) Scrip Code:- 543331 Mumbai 400 051 SYMBOL:- MOL Dea
Slide 2: Q2 & H1FY22 Results Presentation
Meghmani Organics Limited (Erstwhile known as Meghmani Organochem Limited) Q2 & H1FY22 Results Presentation October 2021 www.meghmani.com
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 4: Discussion Summary Q2 & H1FY22 Results Update
Discussion Summary Q2 & H1FY22 RESULTS UPDATE 3
Slide 5: Q2 & H1FY22: Result Highlights
Q2 & H1FY22: Result Highlights Despite challenging business environment, Meghmani Organics Ltd. revenue grew by 28.4% YoY to Rs. 5,457 million in Q2 FY22 aided by strong growth from both the Pigments and Agrochemicals business. During the quarter, the Company’s Gross Profit grew by 11.1% YoY to Rs.
Slide 6: Q2 & H1FY22 Results: Key Highlights
Q2 & H1FY22 Results: Key Highlights Q2 FY22 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 49.6% 23.8% 43.0% 14.2% 15.4% 11.9% 5,457 1,010 4,251 777 655 649 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 H1 FY22 YoY Analysis Revenues & Gross Margin EBITDA & EBITD
Slide 7: Q2 & H1FY22 Results: Pigments Business
Q2 & H1FY22 Results: Pigments Business Q2 FY22 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 75% 91% 79 % 83 % 22.8% 600 9,000 7,496 50.0% 20.0% 8,000 1,900 1,717 500 9.2% 7,000 6,207 0.0% 10.0% 6,000 -50.0% 1,700 1,471 400 336 1,500 -100.
Slide 8: Q2 & H1FY22 Results: Agrochemicals Business
Q2 & H1FY22 Results: Agrochemicals Business Q2 FY22 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 95% 73 % 83 % 14,000 80% 100.0% 1,400 27.3% 30.0% 12,000 4,000 3,740 1,200 19.3% 50.0% 10,000 8,447 1,000 20.0% 6,876 3,500 759 720 8,000 0.0
Slide 9: Q2 & H1FY22 Results: Profit & Loss Statement
Q2 & H1FY22 Results: Profit & Loss Statement Particulars (Rs. in Mn) Q2 FY22 Q2 FY21 YoY% H1 FY22 H1 FY22 YoY% FY21 Revenue from Operations 5,457 4,251 28.4% 10,414 7,193 44.8% 16,234 COGS 3,112 2,141 45.4% 5,887 3,775 55.9% 8,975 Gross Profit 2,345 2,110 11.1% 4,527 3,418 32.4% 7,260 Gross Margins
Slide 10: Balance Sheet Statement
Balance Sheet Statement Particulars (Rs. in Mn) Sep 21 Mar 21 Particulars (Rs. in Mn) Sep 21 Mar 21 Equity & Liabilities Assets Share Capital 254 254 Property, Plant & Equipment 6,897 6,286 Reserves & Surplus 12,394 11,418 Capital WIP 1,357 1,059 Shareholder's Funds 12,648 11,673 Intangible Assets 1
Slide 11: About Us
CHEMISTRY OF SUC ABOUT US
Slide 12: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals • Started in 1986 • Started in 1995 • Amongst top 3 global Phthalocyanine based pigment • Among Top 10 producers of pesticides in India players • Products across entire value chain • 14% global market share • FY21 R
Slide 13: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 14: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Strong & lean Balance Sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 8.0% 01 04 • ROCE – 9.6% in FY17 to 17.1% in FY21 over FY17-21, with higher contribution • ROE – 6.8%
Slide 15: Key Milestones
Key Milestones Commissioned 2 New Plants in Agro Division: - Doubling the capacity of 2,4-D to 21,600 TPA 2020 - 21 - New Formulation Plant Setting up new Multipurpose Plant (New Molecules) Independent listing of Chloro-Alkalies & Derivatives business to unlock share holder value & Delisting f
Slide 16: Business Overview
MeL CHEMISTRY OF SUCCESS AT WORK
Slide 17: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with Total Capacity – 33,180 TPA 14% global market share & amongst top 3 (capacity wise) global pigments players Location Capacity Pr
Slide 18: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) Net Sales & Exports* (Rs Mn) 68 % 79 % 81 % 77 % 78 % 84 % 35,000 6,048 6,406 5,877 5,784 30,000 25,982 25,226 25,694 25,349 6,100 5,242 5,100 25,000 20,194 4,100 3,461 20,000 3,100 14,340 2,100 15,000 1,100 10,000 100 FY17 FY18 FY19 FY20 FY21
Slide 19: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 50.0 43.0 • Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 35.0 pigments
Slide 20: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Used for captive consumption • Established global presence across Africa, Brazil, LatAm, US and Europe Pesticide Intermediates • Strong pan-In
Slide 21: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) 30,000 27,898 646 680 682 581 567 616 25,000 18,431 18,666 19,707 18,145 370 372 20,000 16,219 348 356 354 307 15,000 10,000 260 268 290 310 310 5,000 227 0 FY17 FY18 FY19 FY20 FY21 H1 FY22 FY17 FY18 FY19 FY20 FY21 H1 FY
Slide 22: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 77 Bn by 2030 77.0 • Key drivers - growing population, declining arable land & rising pest 59.8 conc
Slide 23: Strategy & Outlook
STRATEGY & OUTLOOK @® os
Slide 24: Roadmap for achieving 20%+ top-line growth in next 3 years
Roadmap for achieving 20% + top-line growth in next 3 years • Among Top 3 producer of phthalocyanine pigments globally • Continue to focus on increasing domestic presence and capture market share Pigments • Expanding into new geographies • Diversification into new and lucrative pigment beyond phthal
Slide 25: Financial Overview
FINANCIAL OVERVIEW 24
Slide 26: Financial Snapshot
Financial Snapshot Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 8% * CAGR 16% * CAGR 35% 11.4% 12.8% 12.0% 11.9% 42.1% 42.5% 44.7% 43.5% 17.2% 15.9% 38.0% 16.5% 36.2% 13.6% 14.5% 6.2% 1,850 11.9% 1,921 2,799 4.0% 1,687 16,247 16,234 2,323 2,363 14,104 1,330 11,175 12,
Slide 27: Financial Snapshot
Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 130 0.56 0.60 0.39 0.27 0.22 0.33 106 112 115 113 87 82 74 81 12,648 65 77 79 6,977 9,908 11,673 6,329 8,380 103 89 85 92 92 72 3,533 4,170 3,265 2,639 2,619 4,193 -55 -48 -50 -51 -60 -64 FY17 FY18 FY19 FY20 FY21 H1 FY22 FY17 FY18
Slide 28: For Further Queries
For Further Queries: Gurjant Singh Chahal, CFO Bharat Mody, IR Advisor Hiral Keniya / Mehul Mehta, IR Consultants Email: ir@meghmani.com Email: ir@meghmani.com Contact: 90296 62801 / 98202 80325 Phone: +91-79717 61000 Phone: 98980 46584 Email: meghmani@dickensonworld.com