Deepak Fertilisers And Petrochemicals Corporation Ltd. · NSE:DEEPAKFERT
Deepak Fertilisers And Petrochemicals — Kotak Annual India Chemical Investor Conference 2022
32 slides from Deepak Fertilisers And Petrochemicals's conference presentation, Dec 6, 2022
Slide 1: Intimation of Analyst/Investor Meet
6th December, 2022 The Secretary Listing Department BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra - Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 BSE Code: 500645 NSE Code: DEEPAKFERT Subject: Intimation of Sched
Slide 2: Investor Presentation December 2022
(BSE: 500645; NSE: DEEPAKFERT) Investor Presentation December 2022 MINING CHEMICALS INDUSTRIAL CHEMICALS CROP NUTRITION
Slide 3: Business Overview
Business Overview 2 Participating in the country’s growth story through serving critical sectors of the economy such as agriculture, pharmaceuticals, mining, infrastructure, health and hygiene, among others Domestic Market Share Industrial CNA: ~60% Chemicals DNA: ~30% (IC) Only Largest Largest Indi
Slide 4: Key Products
Business Overview 3 A Multi-product, Multi-segment player catering to wide range of core segments of the Indian Economy Diversified Product Offerings catering to strategic sectors of Indian economy Revenue Share (%) Industrial Chemicals Crop Nutrition Technical Ammonium Nitrate FY22: Rs. 7,633 Cr Re
Slide 5: Well diversified play on the India growth story
Business Overview 4 Well diversified play on the India growth story Aligned to India’s growth story through serving critical sectors of the economy through its Diversified Product Portfolio, providing backbone for sustainable long-term growth DFPCL’s Revenue CAGR by Segments (FY20-FY22) ANP, NPK Sma
Slide 6: Strategically located to cater to Agricultural and Industrial Heartlands
Business Overview 5 Strategically located to cater to Agricultural and Industrial Heartlands of India Dahej, Gujarat Panipat, Haryana Capacity (KMTPA) Geographic Advantage Capacity (KMTPA) Geographic Advantage • DNA: 149 • Major customers of • Bensulf: 28 • Oil-seed growing belts of • CNA: 92 nitroa
Slide 7: Quarterly Operating Margins improved from 10% to 18%
Business Overview 6 Quarterly Operating Margins improved from 10% to 18% between Q2 FY20 – Q2 FY23 High level of Integration and Fungibility in Upstream – Downstream Operations Operating Revenue (Rs. Cr) Refinery Grade Muriate of Natural Gas Sulphur Propylene Potash 2,719 1,793 IPA Methanol Ammonia
Slide 8: Constant and focused expansion over the last four decades
Business Overview 7 Constant and focused expansion over the last four decades 1979 Started IPA facility and expanded TAN (LDAN) and Industrial Chemicals (ANP, Expanded Ammonium Nitrate, IPA and Fertiliser (NPK and Inception of company with Nitric Acid) capacity Bentonite Sulphur) Ammonia Plant 2003
Slide 9: Group Corporate Structure
Business Overview 8 Group Corporate Structure Industrial Value Added Chemicals Real Estate Deepak Fertilisers and Petrochemicals (IC) (VARE) Corp. Ltd 100% Crop Technical Nutrition Ammonium Business Nitrate Smartchem (CNB) (TAN) TechnologiesLtd* Technologies Ltd 94% 65% Performance Chemiserve Ltd. P
Slide 10: Mining Chemicals Business
Mining Chemicals Business 9 Partner for delivering value through Last Mile Execution Excellence, using Specialty Products and Customized Solutions, to the Mining and Infrastructure sectors of India Only producer of solid Ranked amongst the top 5 grade of TAN (explosive India’s largest TAN Commands 4
Slide 11: Strong growth in multiple core sectors of the economy
Mining Chemicals Business 10 Strong growth in multiple core sectors of the economy (coal/ mineral mining and infrastructure) would keep the demand strong while global supply would remain crunched Strategically located near major mining hubs TAN demand expected to grow at 8-10% CAGR over FY22-30 in E
Slide 12: Mining chemicals operational highlights
Mining Chemicals Business 11 Major key indicators such as CIL's coal and OB production, cement and steel production, showed healthy increase on a year-over-year basis Mining Chemicals (TAN) Revenue Operational Highlights (Manufactured Sales Rs. Cr) • In Q2 FY 23, TAN Business achieved a capacity uti
Slide 13: DFPCL is the Largest Manufacturer of Nitric Acid in India
Pharma / Speciality Chemicals 12 Business DFPCL is the Largest Manufacturer of Nitric Acid in India • Traditional DNA and SNA domestic markets are well supplied; however, • At current manufacturing capacity, CNA deficit is expected to widen, driven by strong specialized grade demand is expected to s
Slide 14: Diversified And Focused Range of High Value Products
Pharma / Speciality Chemicals 13 Business Diversified And Focused Range of High Value Products Industrial Chemicals Product Portfolio Capacity of Key Products: • IPA: 70 KMTPA • DNA: 889 KMTPA Acids Solvents Specialty Products Dahej, Gujarat • CNA: 231 KMTPA (Acid) • Methanol: 100 KMTPA • Liquid CO2
Slide 15: DFPCL is a Leading Manufacturer and Marketer of IPA in India
Pharma / Speciality Chemicals 14 Business DFPCL is a Leading Manufacturer and Marketer of IPA in India IPA Demand-Supply Market by Applications KMTPA FY22 309 Competitor* 11% 60 KMTPA 220 1% 6% 130 130 7% 220 KMTPA IPA plant FY22 FY27E 75% -90 Pharma -179 Inks and Coatings Chemical Derivatives Suppl
Slide 16: Demand and pricing of Nitric Acid grades relatively subdued
Pharma / Speciality Chemicals 15 Business Demand and pricing of Nitric Acid grades relatively subdued as it is typically expected during monsoon season Pharma / Speciality Chemicals (IPA+NA) Operational Highlights (Manufactured Sales Rs. Cr) • In Q2, Acid Business achieved a capacity utilization of
Slide 17: Product Segments and Market Standing
CNB Business 16 Product Segments and Market Standing Strong Market Position in Multiple Niche Segments, with offering portfolio being shifted from Volume-driven to Value-driven products Ammonium Nitro Phosphate (ANP) • Only producer of ANP Prilled products in India with 325 KMTPA capacity • Well acc
Slide 18: High Efficiency Differentiated Fertiliser Offerings
CNB Business 17 High Efficiency Differentiated Fertiliser Offerings Successful Ramp-up of Smartek – Demonstrated Ability to Develop & Scale up Value Based Solution • Smartek is a unique product in Energy Efficiency Fertilisers category with the proprietary Nutrient Unlock Technology (NUT) which help
Slide 19: Manufacturing Footprint and Market Reach
CNB Business 18 Manufacturing Footprint and Market Reach Well diversified market presence with concentration in horticulture rich states Panipat, Haryana • Operating in 12 states with focus Capacity in five western southern states, ➢ Bensulf 28 KMTPA high concentration in Horticulture • Established
Slide 20: Q2 Fertilisers Segment revenues grew by 47% y-o-y
CNB Business 19 Q2 Fertilisers Segment revenues grew by 47% y-o-y with segment margins of 7% Fertilisers Revenue (Manufactured Sales Rs. Cr) Operational Highlights (NP + NPK + Bensulf) • Although the southwest monsoon started off abnormally, it made a full recovery after June. India received above n
Slide 21: Strengthening DFPCL's market share and margins
Transitioning from Commodity to 20 Specialty Strengthening DFPCL’s market share and margins Nitric Acid - Bulk Industry Specific Grades Application Based Industry Specific (Various Grades) (Solar/Steel Grade) Grades Industrial Chemicals Electronic Grade (IC) Industry Specific Downstream – IPA, IPA P
Slide 22: Best Q2 and H1 Financial Performance
Consolidated Financials: Q2 FY23 21 Best Q2 and H1 Financial Performance with high growth trajectory in place Y-o-Y Y-o-Y INR CR Q2FY23 Q2FY22 H1 FY23 H1 FY22 (Rs. CR) Mar-21 Mar-22 Sep-22 growth growth Operating Revenue 2,719 1,793 51.7% 5,750 3,695 55.6% ST Debt 110 - - LT Debt 2,187 2,321 2,750 O
Slide 23: Robust Performance across segments
Quarterly Performance Trend 22 Robust Performance across segments driven by Demand and Transformation Initiatives Chemicals Business Fertilisers Business Revenues (Rs. Cr) Revenues (Rs. Cr) 1,181 1,533 802 988 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Segment Profit (Rs. Cr) Segment Profit (Rs. Cr) 434 84 148 75
Slide 24: Strong balance sheet and healthy financial performance
Consolidated Financial Track Record 23 Strong balance sheet and healthy financial performance Operating Revenue (Rs. Cr) Operating EBITDA (Rs. Cr) EBITDA Margin (%) 6,742 7,663 1356 16.4% 17.7% * 5,808 955 4,685 9.9% 459 464 6.8% FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 * FY2021 FY2022 FY2019 FY202
Slide 25: Recent Developments
Recent Developments 24 Aarti Industries and DFPCL signs a binding term- ADB funds farm efficiency initiative of Smartchem sheet for 20 year Nitric Acid offtake and supply Technologies Limited arrangement valued over Rs.8,000 Cr • The arrangement is a landmark and first of its kind long term Fund Rai
Slide 26: Update on Upcoming Projects: Ammonia and TAN
Update on Upcoming Projects 25 Ammonia Clearly Defined and Well Funded Capex Program • Total planned Investment: Rs 4,350 cr • Balance investment: Rs. 1,187 cr • Cost incurred to date: Rs. 3,163 cr • Expected commissioning: Q1 FY24 • Debt incurred to date: Rs. 1,576 cr • Total planned Investment: Rs
Slide 27: Ammonia Project – Site Construction Work In Progress
Ammonia Plant Update 26 Ammonia Project – Site Construction Work In Progress (September 2022) • Why Ammonia Project: • Security of Ammonia supply for June 2021 Sep 2022 downstream units • Eliminate price volatility of merchant Ammonia, improved consolidated margins • Risk mitigation for all business
Slide 28: TAN Project – Site Construction Work In Progress
TAN Plant Update 27 TAN Project – Site Construction Work In Progress (September 2022) • Why TAN Project: • Strategically located at ‘Tata SEZ’ at Gopalpur near the major mining hubs to capture domestic demand, substitute imports and take advantage of export opportunities • Increase TAN production ca
Slide 29: Capital Market Update
Capital Market Update 28 Promoters’ pledged shares now restricted to 2.67% and NDU obligation (and not ‘pledge’) to 3.66% of paid up share capital after release of 50,00,000 Pledged Shares and 29,01,569 NDU Shares in Oct 2022 Share Price Performance Chart (LTM) Key Institutional Investors DFPCL S&P
Slide 30: CSR and Awards
CSR and Awards 29 Focused on overall development and well being of Farmers Recognitions Mahadan Croptek • Golden Peacock Innovative Product/Service Award • Best New Brand, Product Or Service Launch Award From 132 aspirants completed Sowing of Total 42 aspirants covered under ET Ascent vegetables don
Slide 31: Key Investment Highlights
30 Key Investment Highlights 1 Well diversified play on the India growth story 2 Healthy industry dynamics across all segments 3 Market leadership or dominance in most categories 4 Accelerating Commodity to Specialty shift 5 Backward integration - Strengthening value chain 6 Demonstrated track recor
Slide 32: Safe Harbour
Safe Harbour: This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating Deepak Fertilisers and Petrochemicals Corporation limited’s (DFPCL) futur
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