Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q3 FY23 Earnings Presentation
35 slides from Sharda Cropchem's earnings presentation, Jan 24, 2023
Slide 1: Exchange filing cover letter for investor presentation
24th January, 2023 To, National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoi Tower, Exchange Plaza, 5th Floor, Plot No. Dalal Street, C/1, Mumbai – 400 001 G-Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Trading Symbol: SHARDACROP Scrip Code: 538666 Subject: Investors /
Slide 2: Investor Presentation January 2023
Investor Presentation January 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sharda Cropchem Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: About Sharda Cropchem Limited
About Sharda Cropchem Limited
Slide 5: Fast-growing global agrochemicals company
“We are a fast-growing global agrochemicals company with a peer position in the generic crop protection chemicals industry. Our vast and growing library of dossiers and IPRs provide us solid foundations for growth in the global marketplace, especially in Advanced Markets such as Europe, North Americ
Slide 6: Agrochemical Focused Company
Agrochemical Focused Company Intellectual Property (IP) driven company engaged in marketing and distribution of wide range formulations and generic active ingredients Efficiently channelizing time and resources for strengthening core Asset Light Business Model competency of identifying generic molec
Slide 7: Asset Light Business Model
Asset Light Business Model Overall Agrochemical Value Chain Sharda’s Operating Area √ √ √ √ Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Manufacturing Research Packaging Distribution SHARDA CROPCHEM’s ASSET LIGHT BUSINESS MODEL Focus on identification of ge
Slide 8: Increasing Global Presence having a Widespread Distribution
Increasing Global Presence having a Widespread Distribution Over the years, we’ve built a strong brand Presence franchise within our global markets; we are benefiting through the economies of scale in 80+ countries our portfolio and leveraging value of our across Europe, NAFTA, supply chain to deliv
Slide 9: The Sharda Advantage
The Sharda Advantage THE SHARDA ADVANTAGE One Stop Healthy Solution Wide Product Quality with Faster Sales Global Reach relationships Provider for Range Affordability Service with suppliers Crop Care Products 8
Slide 10: Way Forward
Way Forward Forward Integration - Build Sales Force Expand & Strengthen Distribution Presence ➢ Leverage market presence and execution capabilities ➢ Expand geographical reach using existing library of dossiers ➢ Adopt the factory to farmer approach and be a one stop solution provider ➢ Two-fold str
Slide 11: Industry Outlook and Growth Drivers
Industry Outlook and Growth Drivers Global crop protection chemicals market value (In Billion USD) – CAGR of 3.5% 59.7 62.8 77.0 53.0 42.0 43.7 8.1 8.4 10.2 7.7 5.3 3.9 5.9 4.3 5.4 0.5 0.6 0.8 2020 2025e 2030e Herbicide Fungicide Insecticide Nematicide Molluscicide INDUSTRY DRIVERS 1 2 3 Fewer arabl
Slide 12: Experienced Management
Experienced Management Mr. Ramprakash V. Bubna Mr. Ashish Bubna Mr. Manish Bubna Mr. Ashok Vashisht Chairman & Managing Director Whole Time Director Whole Time Director Chief Financial Officer • Holds a Bachelor’s Degree of • Holds a Bachelor’s Degree in • Holds a Bachelor’s Degree in Chemical • He
Slide 13: Q3 FY23 Financial Highlights
Q3 FY23 Financial Highlights
Slide 14: Q3 FY23: Segment Wise Highlights
Q3 FY23: Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 82% 83% 18% 17% % of Revenue 100% 100% 842 175 1,017 723 157 880 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 +16% +12% +16% On Consolidated Basis 13
Slide 15: Q3 FY23: Product Wise Highlights (Agrochemical Segment)
Q3 FY23: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 51% 60% 23% 12% 26% 28% % of Revenue 100% 100% 505 166 240 842 723 191 366 97 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 +38% - 42% +26% 16% On Consolidat
Slide 16: Q3 FY23: Region Wise Breakup (Agrochemical Segment)
Q3 FY23: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 42% 39% 43% 47% +9% +27% 842 302 330 394 312 723 Q3FY22 Q3FY23 Q3FY22 Q3FY23 LATAM Region RoW 7% 6% 8% 8% Q3FY22 Q3FY23 -5% +17% 50 47 71 60 +16% Q3FY22 Q3FY23 Q3FY22 Q3FY23 % of Revenue
Slide 17: Q3 FY23: Region Wise Breakup (Non Agrochemical Segment)
Q3 FY23: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 38% 14% 44% 66% +67% -57% 175 60 115 157 69 26 Q3FY22 Q3FY23 Q3FY22 Q3FY23 LATAM Region RoW 3% 5% 15% 15% Q3FY22 Q3FY23 +102% +9% 9 24 26 4 +12% Q3FY22 Q3FY23 Q3FY22 Q3FY23 % o
Slide 18: Q3 FY23: Financial Highlights
Q3 FY23: Financial Highlights Cr. Revenues & GP Margin EBITDA & EBITDA Margin* 22.8% 33.9% 30.5% Revenue growth led by better 19.3% product mix, price realization and EBITDA and Margin impacted 1,017 volume growth. Gross Margins 201 due to lower GP Margins driven 197 880 have been impacted by by wea
Slide 19: Impact of weakened Euro to the Dollar in the last nine months
Impact of weakened Euro to the Dollar in the last nine months USD / Euro Price Chart 1.1500 1.11 Unprecedented depreciation of Euro to the USD 1.1000 - 12% 1.0500 1.0000 0.98 0.9500 01-04-2022 01-05-2022 31-05-2022 30-06-2022 30-07-2022 29-08-2022 28-09-2022 28-10-2022 27-11-2022 27-12-2022 Euro Dol
Slide 20: 9M FY23 Financial Highlights
9M FY23 Financial Highlights
Slide 21: 9M FY23 Segment Wise Highlights
9M FY23 Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 82% 79% 18% 21% % of Revenue 100% 100% 2,032 531 2,563 1,760 2,145 385 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 +15% +38% +19% On Consolidated Basis 20
Slide 22: 9M FY23: Product Wise Highlights (Agrochemical Segment)
9M FY23: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 50% 58% 26% 16% 24% 26% % of Revenue 100% 100% 1,185 461 520 2,032 1,760 417 882 327 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 +34% -29% +25% +15% On Con
Slide 23: 9M FY23: Region Wise Breakup (Agrochemical Segment)
9M FY23: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 44% 43% 38% 40% +15% +23% 2,032 881 816 768 666 1,760 9MFY22 9MFY23 9MFY22 9MFY23 LATAM Region RoW 11% 10% 7% 7% 9MFY22 9MFY23 -6% +18% 205 193 142 121 +15% 9MFY22 9MFY23 9MFY22 9MFY23 %
Slide 24: 9M FY23: Region Wise Breakup (Non Agrochemical Segment)
9M FY23: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 33% 22% 46% 59% -7% +76% 531 125 117 313 178 385 9MFY22 9MFY23 9MFY22 9MFY23 LATAM Region RoW 4% 6% 17% 13% 9MFY22 9MFY23 +86% +8% 31 65 70 17 +38% 9MFY22 9MFY23 9MFY22 9MFY23
Slide 25: 9M FY23: Financial Highlights
9M FY23: Financial Highlights Cr. Revenues & GP Margin EBITDA & EBITDA Margin* 19.2% 30.8% 28.0% 16.2% Revenue growth led by better EBITDA and EBIDTA Margins product mix and price realization. were impacted due to lower GP 2,563 411 414 Margins driven by weakening of 2,145 Gross Margins have been €/
Slide 26: Strong Balance Sheet
Strong Balance Sheet Working Capital (in Days) RoCE RoE +550 bps +470 bps 72 days 86 days 25.7% 19.8% 20.2% 15.2% 119 104 102 103 92 Mar-21 Mar-22 Mar-21 Mar-22 84 Cash & Cash Total Equity Total Debt Equivalents Dec-21 Dec-22 Rs. 2,049 Rs. 3 crores Rs. 303 crores crores Inventory Days Recievable Day
Slide 27: Annexure
Annexure
Slide 28: Q3 & 9M FY23 Financial Highlights
Q3 & 9M FY23 Financial Highlights Cr. Particulars Q3 FY23 Q3 FY22 Y-o-Y 9M FY23 9M FY22 Y-o-Y Revenue from Operations 1,017.3 879.8 16% 2,563.3 2,145.3 19% COGS 707.3 581.4 1,846.9 1,484.5 Gross Profit 310.0 298.4 716.5 660.8 Gross Margin % 30.5% 33.9% 28.0% 30.8% Employee Expenses 12.6 10.8 29.6 31
Slide 29: Balance Sheet - Consolidated
Balance Sheet - Consolidated Cr. EQUITY & LIABILITIES Dec-22 Mar-22 ASSETS Dec-22 Mar-22 Equity Non-current assets Equity share capital 90.2 90.2 Other equity 1,958.1 1,822.2 Property, plant and equipment 9.4 14.4 Equity attributable to equity holders of the Company 2,048.3 1,912.5 Goodwill 0.0 0.0
Slide 30: Key Financial Performance Indices
Key Financial Performance Indices Cr. Revenue EBITDA & EBITDA Margin* Profit After Tax & PAT Margin 20.7% 18.5% 17.6% 19.0% 20.4% 11.2% 8.8% 8.2% 9.6% 9.8% 3,580 2,396 729 349 1,998 2,003 1,707 455 229 353 369 352 191 176 165 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 31: Historical Profit & Loss
Historical Profit & Loss Cr. Particulars FY22 FY21 FY20 FY19 FY18 Revenue from Operations 3,579.8 2,395.6 2,003.0 1,997.6 1,706.6 COGS 2,499.8 1,636.0 1,388.8 1,387.3 1,143.7 Gross Profit 1,080.0 759.7 614.3 610.2 562.8 Gross Margin % 30.2% 31.7% 30.7% 30.5% 33.0% Employee Expenses 44.2 37.3 34.9 33
Slide 32: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities Cr. Equities & Liabilities FY22 FY21 FY20 FY19 FY18 Shareholder's Funds Equity and Share Capital 90.2 90.2 90.2 90.2 90.2 Other Equity 1,822.2 1,524.1 1,312.6 1,193.7 1,044.6 Non-controlling Interest 0.3 0.3 0.3 0.2 0.2 Total Equity 1,912.8 1,614.6 1,403.1 1,284.
Slide 33: Balance Sheet - Assets
Balance Sheet - Assets Cr. ASSETS FY22 FY21 FY20 FY19 FY18 Assets Non-Current Assets Property, Plant and Equipment 14.4 20.9 27.8 13.5 10.7 Goodwill 0.0 0.4 0.4 0.4 0.4 Other Intangible assets 577.4 523.1 388.1 357.8 215.2 Intangible assets under development 212.2 131.0 161.4 219.8 359.9 Deferred Ta
Slide 34: CSR Activities
CSR Activities CSR initiatives taken up by the Company are in the areas of Promoting Education, Healthcare, Eradicating Hunger, Empowerment of Women, Animal Welfare, Promotion of Sports and Rural Development Projects Promoting Education Animal Welfare Medical Aid & Relief 33
Slide 35: Thank You
THANK YOU Company: Sharda Cropchem Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L67120MH1995PLC086696 CIN: U74140MH2010PTC204285 Mr. Ashok Vashisht - CFO Mr. Deven Dhruva cfo@shardaintl.com deven.dhruva@sgapl.net Tel: +91 22 6678 2800 Tel: +91 98333 73300