Descon Oxychem Limited · PSX:DOL
Descon Oxychem — Investor Presentation (December 2019)
23 slides from Descon Oxychem's investor presentation, December 2019
Slide 1: Descon Oxychem Limited Corporate Briefing
Descon Oxychem Limited Corporate Briefing OPERATING A 34,000 TPA PLANT,WITH THE LARGEST MARKET SHARE IN PAKISTAN
Slide 2: Descon Partners in Progress
DESCON PARTNERS IN PROGRESS A REMARKABLE JOURNEY STARTED 40 YEARS AGO OVER USD 1 BILLION IN ANNUAL REVENUES 15,000 EMPLOYEES, 26 NATIONALITIES, 7 COUNTRIES
Slide 3: About Us
About Us ! Incorporated: 2004 Status: Listed at PSX (2008) Commercial Production: 2009 Major Business: Manufacturing and sale of H2O2 Name-plate Capacity: 28,000 MT Actual Production: 34,000 MT Paid-up Capital: PKR 1 billion
Slide 4: Board Of Directors
Board Of Directors ! Taimur Dawood Chairman Farooq Nazir Non-Executive Director Faisal Dawood Non-Executive Director Mehreen Dawood Non-Executive Director Asif Qadir Independent Director Ali Asrar Hossain Aga Independent Director Haroon Waheed Independent Director Imran Qureshi CEO / Executive Direc
Slide 5: Corporate Surveillance
Corporate Surveillance
Slide 6: Auditors and Credit Rating
Internal Auditors: KPMG External Auditors: PwC (A.F. Ferguson & Co.) Credit Rating Agency: PACRA Credit Rating (Jun-18) Long Term (A) Short Term (A1)
Slide 7: Quality, Health, Safety & Environment
Quality, Health, Safety & Environment
Slide 8: QHSE - Certifications
QHSE - Certifications DESCON QUALITY ISO 9001 CERTIFIED ENVIRONMENT ISO 14001 CERTIFIED OHSAS 18001 SGS CERTIFIED
Slide 9: Production
Production
Slide 10: Production Trend (MT)
Production Trend (MT) 40000 34697 33293 33400 32506 32098 32234 29792 30000 27890 26394 20140 20000 10278 10000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (F) Production Trends Linear (Production Trends)
Slide 11: Industry & Markets
Industry & Markets
Slide 12: Industry Snapshot
Industry Snapshot Domestic Demand: Approx. 68,000 MT 2 players in domestic market: DOL & SPL DOL’s production: 34,000 MT SPL’s production: 22,000 MT Imports: 15% - 20% - Antidumping duties have been imposed on multiple international players.
Slide 13: H2O2 Products & its applications
H2O2 Products & its applications Textile HP provides high bleaching impact at extremely competitive cost. Mining Used as an oxidant and effluent treatment. Food & Beverages To create a sterile environment in aseptic packing units.
Slide 14: Market Potential
Market Potential • Cosmetic • Water Treatment • Livestock • Poultry • Milk * Potential of above markets is in the range of 15000 – 18000 MT per annum. Descon Oxychem Limited
Slide 15: Key Financial Indicators
Key Financial Indicators
Slide 16: Financial Performance
Financial Performance Gross profit margin (%) 39.16 40.00 29.52 30.00 25.83 20.76 21.71 19.98 19.03 20.00 10.00 - 2013 2014 2015 2016 2017 2018 2019 (HY) EBITDA margin to sales (%) 40.00 37.97 30.31 30.00 28.32 26.97 23.58 24.15 21.19 20.00 10.00 - 2013 2014 2015 2016 2017 2018 2019 (HY)
Slide 17: Financial Performance
Financial Performance Net profit margin (%) 40.00 30.00 22.55 20.00 15.43 10.45 10.00 2.84 - 2013 2014 2015 2016 2017 2018 2019 (HY) (10.00) (4.09) (3.74) (8.43) (20.00) Debt Equity Ratio 100% 22 20 17 93 100 100 51 75% 83.00 78.00 80.00 50% 49 25% 7.00 0% 2013 2014 2015 2016 0.00 2017 0.00 2018 201
Slide 18: Financial Performance
Financial Performance Return on capital employed (%) 30.00 25.86 23.73 20.10 20.00 12.94 10.00 8.46 7.25 5.86 - 2013 2014 2015 2016 2017 2018 2019 (HY) Return on equity (%) - Net 40.00 36.72 18.15 20.00 11.93 2.97 - 2013 2014 2015 2016 2017 2018 2019 (HY) (9.18) (20.00) (12.33) (31.49) (40.00)
Slide 19: Financial Performance
Financial Performance Earnings / (loss) per share (Rupees) - Basic 4.00 3.16 3.09 3.00 2.01 2.00 1.00 0.44 - 2013 2014 2015 2016 2017 2018 2019 (HY) (1.00) (0.50) (0.60) (1.17) (2.00) Retained Earnings (50,000) 2013 2014 2015 2016 2017 2018 2019 (HY) (250,000) (160,692) (344,272) (450,000) (402,551)
Slide 20: Financial Performance
Financial Performance Share Price 25.00 21.28 18.35 19.30 20.00 15.00 10.00 5.49 5.98 6.03 4.72 5.00 - 2013 2014 2015 2016 2017 2018 2019* * As on 19-Mar-2019 Price Earnings Ratio 12.00 13.67 9.13 9.31 6.11 4.00 2013 2014 2015 2016 2017 2018 2019 (HY) (4.00) (4.05) (12.00) (10.93) (9.95)
Slide 21: Way Forward
Way Forward
Slide 22: Way Forward
Way Forward - Capacity Expansion is in progress & DOL will maintain its market leadership position. - We will keep striving towards being the Lowest cost producer (energy conservation and efficiency projects). - Will keep the plant running at an Optimum level without any unplanned breakdowns. - We a
Slide 23: Thank You! Q&A
Thank You ! Q&A
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