Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q4 FY2017 Earnings Presentation
20 slides from Sharda Cropchem's earnings presentation, May 2017
Slide 1: Q4 & FY17 Results Update
Q4 & FY17 RESULTS UPDATE MAY 2017
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited ((“Sharda” Sharda or “the the Company Company”)) that are not historical in nature. These forward looking statements, which may include statements relating to future results
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q4 & FY17 Results Highlights Q4 & FY17 Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q4 & FY17 Results: Key Highlights
Q4 & FY17 RESULTS: KEY HIGHLIGHTS FINANCIAL UPDATE - Q4 FY17 Total Revenues increased by 13.7% YoY from Rs. 523 cr. to Rs. 595 cr. primarily driven by volume growth of 19.5%, and adverse currency movement of 3.9%. Region-wise growth YoY– Europe (4.5%), NAFTA 96.0%, LATAM (21.1%), ROW 24.7% Q4
Slide 5: Q4 & FY17 Results: Key Highlights
Q4 & FY17 RESULTS: KEY HIGHLIGHTS Q4 FY17 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN * PAT & PAT MARGIN 38 4% 38.4% 35 9% 35.9% 29 1% 29.1% 19.2% 26.4% 16.6% 5,234 5,949 13.7% 3.1% 1,573 -1.6% 1,525 1,003 987 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Q4 FY16 Q4 FY17 Revenues Gross Ma
Slide 6: Q4 FY17 Results: Division Wise Highlights
Q4 FY17 RESULTS: DIVISION WISE HIGHLIGHTS In Rs Mn Q4 FY17 YoY ANALYSIS: REVENUE * BREAKUP FY17 YoY ANALYSIS: REVENUE * BREAKUP 5 234 5,234 5 949 5,949 12,221 13,992 -15.3% 489 1,921 4.4% 2,004 578 17.3% 10,301 16.4% 11,988 4 656 4,656 5,460 Q4 FY16 Q4 FY17 FY16 FY17 Agrochemicals Non-Agrochemicals
Slide 7: Agrochemicals Business
Q4 & FY17 RESULTS: AGROCHEMICALS BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 4,656 5,460 10,301 11,988 8.1% 9.3% 11.4% 10.4% 9.3% 7.2% 13.4% 12.7% 15.4% 29.0% 19.7% 26.5% 67.2% 54 5% 54.5% 55 4% 55.4% 50.4% Q4 FY16 Q4 FY17 FY16 FY17 Europe NAFTA LATAM RoW Revenues in NAFTA region have risen by 1
Slide 8: Agrochemicals Business
Q4 & FY17 RESULTS: AGROCHEMICALS BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 3% 2% 25% 23% 43% 48% FY16 FY17 28% 29% Herbicides Fungicides Insecticides Others Herbicides Fungicides Insecticides Others Herbicides revenues have grown by 28% YoY in FY17 to INR 5,715 mn g Fu
Slide 9: Non-Agrochemicals Business
Q4 & FY17 RESULTS: NON-AGROCHEMICALS BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: PRODUCT WISE 578 489 1,921 2,004 578 489 1,921 2,004 18.0% 17.0% 18.4% 1.5% 18.6% 4.1% 5.8% 5.6% 12.5% 21.7% 18.8% 24.9% 37.4% 31.7% 35.5% 35.4% 98.5% 94.4% 95.9% 94.2% 25.4% 31.5% 25.8% 27.4% Q4 FY16
Slide 10: Balance Sheet Analysis
Q4 & FY17 RESULTS: BALANCE SHEET ANALYSIS WORKING CAPITAL ANALYSIS * 160 169 150 124 58 45 FY16 FY17 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS FY17: 77 FY16: 81 * Calculated on average inventory, receivables, creditors 10
Slide 11: Consolidated Profit & Loss Statement
Q4 & FY17 RESULTS: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY17 Q4 FY16 YoY % FY17 FY16 YoY % Revenue from Operations 5,949.1 5,234.3 13.7% 13,992.3 12,221.2 14.5% COGS 3,811.6 , 3,222.0 18.3% 8,973.7 , 7,842.5 , 14.4% Gross Profit 2,137.4 2,012.2 6.2% 5,018.6 4,378.7 14.6% Gr
Slide 12: Consolidated Balance Sheet
Q4 & FY17 RESULTS: CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn FY17 FY16 Particulars in Rs. Mn FY17 FY16 Assets Equities & Liabilities Non-Current Assets Equity Property, plant and equipment 9.6 14.2 Equity share capital 902.2 902.2 Capital work in progress 13.3 0.0 Other equity 8,696.2 7,152.3
Slide 13: SN LNOV
SN LNOV
Slide 14: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA and Latin America across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registration o
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 16 % CAGR: 22 % CAGR: 23 % 13,992 18% 20% 16% 22% 22% 14% 12% 14% 14% 11% 12,186 10,611 3,124 2,714 7,777 7,904 1,751 1,904 1,543 1,727 1,230 1,400 1,111 844 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Key Institutional Investors – 31st March 2017 % Holding Market Data As on 31st March 2017 DSP Blackrock Investment Manager 6.71% Market capitalization (Rs Mn) 43,933.0 HDFC MF 4.29% Price (Rs.) 487.0 Pinebridge 2.56% No. of shares outstanding (Mn) 90.2 Goldman Sachs
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Active Formulation & Marketing & Applied Identification Registration Ingredient Packaging Distribution Research Manufacturing ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities. Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider. Build own Sales Force on-ground Strategy on ground in USA USA, Canada, Canada Hungary Hungary, Spain Spain, Poland Po
Slide 19: About Us: Our Presence
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Slide 20: yashesh.parekh@dickensonir.com
Mr. Conrad Fernandes Mr. Nilesh Dalvi / Mr. Yashesh Parekh Chief Financial Officer IR Consultant E il cfernandes@shardaintl.com Email: f d @h d i l Email: il nilesh.dalvi@dickensonir.com il h d l i@di k i Contact No: +91 22 6678 2800 yashesh.parekh@dickensonir.com Contact no: +91 9819289131 / 810832