Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — 9MFY22 Earnings Presentation
31 slides from Nath Bio-genes (india)'s earnings presentation, Feb 14, 2022
Slide 1: Nath Bio-Genes (I) Ltd. – Presentation on Unaudited Financial Results
, a Se. Nath Bio-Genes (1) Ltd. (CIN L01110MH1993PLC072842) 14th February 2022 The Manager-Listing The Manager-Listing BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Bandra (E) Mumbai-400001 Mumbai-400051 BSE Code-5372
Slide 2: 9MFY22 Performance
9MFY22 Performance , a Nath Bio-Genes (I) Ltd. RATT RT, UT TT
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 4: Strategic Update
Strategic Update New Products Kharif Season Update Developments/Launches • Cotton packets sold 11.69 Lacs due to • Rabi Season in progress excessive sales return (27%) • Vegetable Sales lined up • Paddy sales maintained over 9M • PNS new products emphasised • Non-Cotton; Non-Paddy grew by 5% • Musta
Slide 5: Strong Operating and Financial Performance
Strong Operating and Financial Performance o Non - cotton, non - paddy portfolio contributed 38% to revenue o Non Cotton and Non Paddy portfolio contribution reduced from 71% to 62% Operating Performance o Cotton sales reduced by 13% YOY o Paddy sales maintained o Revenue flat at Rs 2,512mn Financia
Slide 6: Managing Headwinds
Managing Headwinds Impact of Covid o COVID second wave - Rabbi sowing hampered o Processing and logistics have been normalised with extra efforts Illegal BT Cotton o Farmers can grow only BT Cotton, however they have veered towards another hybrid – HT BT in past few years. o The process saves on lab
Slide 7: Income Statement
Income Statement Particulars (INR Mn) 9MFY22 9MFY21 % Change (YoY) Q3FY22 Q3FY21 % Change (YoY) Total Revenue 2,512 2,525 -1% 217 360 -40% Gross Profit 1,297 1,404 -8% 144 246 -41% Gross Margin (%) 51.6% 55.6% -400bps 66.4% 68.4% -200bps EBITDA 585 556 5% 60 64 -6% EBITDA Margin (%) 23.3% 22.0% 130b
Slide 8: Stable Balance Sheet Despite Growth
Stable Balance Sheet Despite Growth Assets (INR Mn) H1FY22 H1FY21 Liabilities (INR Mn) H1FY22 H1FY21 Fixed Assets 2,461 2,452 Share Capital 190 190 Financial Assets 55 59 Reserves & Surplus 6,366 5,829 Other Non-current Assets 132 10 Long-Term Borrowings 6 7 Inventories 2,281 1,742 Long-term Provisi
Slide 9: Segment wise Operating Performance
Segment wise Operating Performance Products Metric 9MFY22 9MFY21 YOY Growth FY21 Cotton Packets in lakhs 11.69 13.18 -11.3% 12.24 Paddy Quintals 56,106 66,089 -15.1% 83,839 Other Crops (Bajra, Quintals 34,730 36,425 -4.7% 34,195 Maize) o Cotton sales reduced due to excessive sales return of 28% o Re
Slide 10: Segmental Revenue Contribution - Cotton + Paddy share reducing
Segmental Revenue Contribution- Cotton + Paddy share reducing 9MFY21 Revenue 9MFY22 Revenue INR 2,525Mn INR 2,512 Mn 9MFY21 9MFY22 Others, 33% Cotton, 33% Cotton, 38% Others, 38% Paddy, 29% Paddy, 29% Cotton Paddy Others Cotton Paddy Others 9 • include: Jowar, Bajra, Maize, Mustard, Wheat 9
Slide 11: Highly Ranked Cotton Products – Gaining market share in declining market
Highly Ranked Cotton Products – Gaining market share in declining market o Volume growth of 10-15% projected for FY23 3 YEAR OUTLOOK: o Special Campaign being undertaken to educate 20% + Growth CAGR farmers P Progress of Acreage under COTTON BT (in Lk Hectare) - STATE-WISE 9 STATE 2020-21 2019-20 %
Slide 12: Paddy: Strong volume growth
Paddy: Strong volume growth 3 YEAR OUTLOOK: o Volume growth projected at 15-20% in FY23 20% + Growth o Research Efforts underway for new products P Presence of Paddy across India 10+ Key Products Key Markets Paddy Products launched in last 5 years Hybrid Vegetable Market Size: INR 25 – 30 Bn Loknath
Slide 13: Highly diversified vegetable Portfolio
Highly diversified vegetable Portfolio o Volume growth of 25-30% projected in FY23 3 YEAR OUTLOOK: o High Margin segment : 60%+ margins 30% + Growth o New products being launched o Vegetable vertical achieving results P Hybrid Vegetable Market Size: INR 25 – 30 Bn Hybrid Vegetable Industry: Market B
Slide 14: Win Chi Win: Major growth booster
Win Chi Win : Major growth booster 3 YEAR OUTLOOK: o Volume growth of 15% projected in FY22. 30% + Growth o Overall sales effected due to COVID situation o High Margin segment : 70%+ Margins o Territories enhanced to sustain growth Geographical Presence of Win Chi Win • A growth enhancer for • Conce
Slide 15: Innovate, Help, Grow
Innovate, Help, Grow Innovate Help Grow (5 Year Performance] 45 150,000 81% New Seeds Developed in last 5 Employment Generated Revenue Growth years 100+ years 50,000 2.3x Contract Farmers EBITDA Growth R&D Team experience #1-3 20,000+ 3.4x Direct Retailers PAT Growth ICAR Trials 15+ 15,000 465 bps P
Slide 16: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Building A Strong Organisation; Evolved into a Dividend Paying Company Developing Innovative Products Making the Portfolio more Balanced Balance Sheet becoming Stronger Strategic Presence across Seed Value Chain Delivering strong growth despite an uncertain env
Slide 17: Working Capital Cycle – Impacted by higher inventory due to Covid
Working Capital Cycle – Impacted by higher inventory due to Covid All figures in INR mn H1FY22 FY21 Revenue 2,295 3,076 Inventories 2,281 2,263 Trade Receivables 1,297 1,094 Trade Payables 64 452 Net Working Capital 3,514 2,905 H1FY22 FY21 Inventory Days 362 268 Receivable Days 206 130 Payable Days
Slide 18: Historical Stable Balance Sheet Despite Growth
Historical Stable Balance Sheet Despite Growth Assets (INR Mn) FY21 FY20 Liabilities (INR Mn) FY21 FY20 Fixed Assets 2469 2460 Share Capital 190 190 Financial Assets 53 52 Reserves & Surplus 5943 5386 Other Non-current Assets 134 15 Long-Term Borrowings 7 3 Inventories 2263 2043 Long-term Provisions
Slide 19: Corporate Overview
Corporate Overview , a Nath Bio-Genes (I) Ltd. RATT RT, UT TT
Slide 20: Strategy 4.0
Strategy 4.0 Altering strategy to create a more robust & de-risked business model Risks Change in Strategy Action Points o Portfolio Concentration o Limiting revenue contribution of any o Developing products in multiple Risk single crop to less than 25% food crops like Maize, Jowar, Bajra o Cotton &
Slide 21: Last 5 Years: Cotton & Paddy Driven Growth
Last 5 Years: Cotton & Paddy Driven Growth Revenue Growth Contributors (INR Mn) Cotton + Paddy: Aggregate Sales Contribution over last 5 years = 60%+ 20
Slide 22: Next 5 Years: Multiple Growth Drivers
Next 5 Year: Multiple Growth Drivers Moving towards a Diversified and De-Risked Portfolio (% Sales) Plant Nutrient Supplement 10 12 14 Vegetables 11 PNS+Vegetables+Others 16 16 Others* 17 19 20 Cotton + Paddy 62 54 50 2020-21 2021-22 E 2022-23 E * include: Jowar, Bajra, Maize, Mustard, Wheat 21
Slide 23: Building a Strong Organisation
Building a Strong Organisation • Imbibing a culture of continuous growth and strong governance 500+ • Hiring industry experts in each key area of Employees operations – R&D, Finance, Supply-Chain • Empowered teams, well-aligned with organisation vision 150+ • Strong risk management framework New Emp
Slide 24: Developing Innovative Products
Developing Innovative Products Holistic Products to Address Problems of • World Class R&D Infrastructure • Launched 36 Innovative Products Developed Low Yields across Segments Climate Change • 8-10 new products in pipeline in cotton • 20+ new products in pipeline in Vegetables Pest Infestations Seed
Slide 25: Strategic Presence Across the Seed Value Chain
Strategic Presence Across the Seed Value Chain Genetic Resources/Germplasms 18,000+ Germplasm Library R&D 100+ years R&D Team experience New Seed Development ICAR Trials 36 done at Seed varieties launched in last 3 years Commercial Production this stage 50,000 Contract Farmers Marketing and Distribu
Slide 26: Appendix
Appendix é ee We Nath Bio-Genes (I) Ltd. RATT RT, UT TT 25
Slide 27: Visionary Leadership; Attracting the Best Talent
Visionary Leadership; Attracting the Best Talent Mr. N Mr. Satish Nath Promoters are committed to sustainable Kagliwal Kagliwal MD growth and are working towards making Nath one Chairman of the best seeds company globally. Leadership Team Research & Product Development Nath leadership team shares th
Slide 28: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Net Debt (INR Mn) Net Worth (INR Mn) 6133 679 5576 659 5076 576 4692 478 363 3033 207 1071 1213 FY15 FY16 FY17 FY18 FY19 FY20 FY21 -121 FY15 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 21% 22% 20% 18% 18% 19% 19% 17% 17% 15% 15% 14% 9%
Slide 29: Historical Income Statement
Historical Income Statement Nath Bio-Genes’ P&L Statement Particulars (INR Mn) FY21 FY20 FY19 Total Revenue 3076 2799 2,309 Gross Profit 1715 1536 1,253 Gross Margin (%) 56% 55% 54% EBITDA 667 547 433 EBITDA Margin (%) 22% 20% 19% Depreciation 28 14 14 Finance Cost 88 65 52 PBT 568 485 389 PAT 557 5
Slide 30: Historical Balance Sheet
Historical Balance Sheet Assets (INR Mn) FY21 FY20 FY19 Liabilities FY21 FY20 FY19 Fixed Assets 2469 2,460 2,317 Share Capital 190 190 190 Financial Assets 53 52 52 Reserves & Surplus 5943 5,386 4,885 Other Non-current Assets 134 15 20 Long-Term Borrowings 7 3 5 Inventories 2263 2,043 1,554 Long-ter
Slide 31: Thank You
Thank You CIN_NBIL_L01110MH1993PLC072842 For further information, please get in touch with: Sheetal Khanduja Monali Jain sheetal@GoIndiaadvisors.com monali@GoIndiaadvisors.com M:+91 97693 64166 M:+917597304020 30
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