Seya Industries Ltd. · NSE:SEYAIND
Seya Industries — Q4 2019 Earnings Presentation
39 slides from Seya Industries's earnings presentation, May 2019
Slide 1: Intelligence of Integration – Investor Presentation May 2019
Intelligence of Integration Investor Presentation May 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Seya Industries Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 3: Performance Review
Performance Review Sales Volume (MTPA) Revenue (Rs. In Crs) EBITDA (per tonne) Captive utilization of intermediates to produce High- Completed doubling of PNA capacity expansion by value, High-margin downstream Products 4,000 MTPA in April’19 aggregating to total capacity +19% +63% of 8,000 MTPA 23,
Slide 4: FY19 Highlights
FY19 Highlights Dividend: The Board of Directors of the Company at its meeting has recommended Fund Raise: a dividend of Rs. 1.5/- per equity share i.e. 15% for the financial year 2018-19, subject to approval of shareholders at the ensuing 29th Annual General Meeting of the Company The Company had r
Slide 5: FY19: Performance Trend
FY19: Performance Trend Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) +19% +32% 413 140 346 106 FY18 FY19 FY18 FY19 PAT (Rs. In Crs) Margin +69% 34.0% 89 30.8% EBITDA %^ 21.4% 52 PAT % 15.1% FY18 FY19 FY18 FY19 As per IND AS ^Includes Other Income 5
Slide 6: Q4FY19: Performance Trend
Q4FY19: Performance Trend Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) -2% +7% 97 95 34 32 Q4FY18 Q4FY19 Q4FY18 Q4FY19 PAT (Rs. In Crs) Margin +56% 35.3% 26 32.4% 27.5% EBITDA %^ PAT % 17 17.3% Q4FY18 Q4FY19 Q4FY18 Q4FY19 As per IND AS ^Includes Other Income 6
Slide 7: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. In Crs.) Q4FY19 Q4FY18 YoY % FY19 FY18 YoY % Total Revenue (Net) 95.4 97.2 -1.9% 412.8 346.2 19.2% Total Raw Material 46.6 55.4 213.1 200.3 Employee Expenses 1.7 1.5 6.4 4.6 Other Expenses 14.6 9.4 55.1 35.9 Other Income 1.2 0.6 2.2 1.0 EBITDA 33.7 31.5 7.0%
Slide 8: Balance Sheet
Balance Sheet Assets (Rs. Crs.) Mar-19 Mar-18^ Equity & Liabilities (Rs. Crs.) Mar-19 Mar-18^ Non-current assets 1,429.5 1,127.9 Equity 929.0 740.3 Property, Plant and Equipment 731.4 742.2 Equity Share capital 24.6 24.6 Other equity 801.3 715.7 Capital Work In-Progress 685.9 378.7 Share Application
Slide 9: Fully Integrated Benzene based Specialty Chemical Manufacturer
Fully Integrated Benzene based Specialty Chemical Manufacturer India’s only Single Location Fully Backward Integrated Benzene based Specialty Chemical Manufacturer Products with Profitable Product Technologically unmatched purity Fully Equipped Selection to capture driven to optimize standards - Str
Slide 10: Diversified Product Portfolio
Diversified Product Portfolio CHLORINATION Existing Products Up-coming Products MCB Expansion of Nitro AMMONOLYSIS MNCB Chloro Benzenes ONCB Sulphuric Acid PNCB OA & FRBB HYROGENATION 3,3 Dichloro Benzidine Sulphur trioxide based Specialty Chemicals NITRATION Para Nitro Aniline Oleums 25% & 65% HCL
Slide 11: Multiple End-users
Multiple End-users Industry-wise Revenue Breakup – FY19 AGRO PHARMACEUTICAL PETROLEUM Agro PRINTING INK PHARMA CHEMICALS INTERMEDIATES REFINING Chemicals, 2% Dye Intermediates, 15% Print Ink, 54% PIGMENT Pharma, TEXTILE COSMETICS & SYNTHETIC DETERGENTS & & 10% CHEMICALS COLORING AGENTS FABRIC SOFTEN
Slide 12: Broad-based Clientele
Broad-based Clientele Long term Relationships Increase Product Offering to Customers Technical Sales Support given to Customers No Customer contributes more than 10% of Revenue 12
Slide 13: Growth Investments
Growth Investments Growing End-user Demand Capacity Expansion (MTPA) +1678% 5,88,485 End-User expected to grow at 9% CAGR over next 7 years to reach $90 Bn by 2023 Our Competitive Edge 57,600 33,100 FY2013 FY2019* FY2021E Quality Environmental Land Products (Chemical Notified Zone) China Clearance *
Slide 14: Plant Engineered to Excellence
Plant Engineered to Excellence Our Technology Partners Phase II • Highly experienced and reputed EPC contractors • German Technology Suppliers • Successful track-record of more than 105 years backed by performance guarantee • State-of-the-art, cutting edge, continuous, fully automated process techno
Slide 15: Techno-commercial Leadership
Techno-commercial Leadership Mr. Ashok G. Rajani Mr. Amrit A. Rajani Chairman & Managing Director Chief Operating Officer & Chief Financial Officer • A Rank holder in Chemical Engineering from L.I.T. Nagpur, he started his career • Mr. Amrit is son of Mr. Ashok Rajani, has been associated with Seya,
Slide 16: with Strong Senior Management team
with Strong Senior Management team Mr. Asit Kumar Bhowmik Mr. H N Desai Executive Director Sr. Vice President • He is a Chemical Engineer with more than 41 years of experience in Chemical • He has more than 41 years of Experience in Project Management & Execution, Industries and has worked with Hind
Slide 17: Strategic Directions for Profitable Growth
Strategic Directions for Profitable Growth Product Selection Integration Efficiencies 17
Slide 18: Product Selection
Product Selection
Slide 19: Growth by way of Right Product Selection
Growth by way of Right Product Selection Phase II Expansion (FY20E) Profitable Product Selection to capture Horizontal expansion, complete Value-chain backward integration & Value added products “De-risked Portfolio with diverse Products ✓ Expansion of Nitro addresses different End-user applications
Slide 20: Multiple levers of Growth Post Phase II
Multiple levers of Growth Post Phase II Capacity Distribution Quantity (MTPA) Rechargeable Printing Electronics – Preservative for Batteries 1,36,701 Inks Wine, Paper, Food Mining & Metals Agrochemicals 26% Cosmetics Coloring Agents 55,191 Metal Petroleum 11% & Refining 74,979 Processing Industry 14
Slide 21: Integration
Integration
Slide 22: Growth by way of Integration
Growth by way of Integration Backward Integration Phase II - Project Rationale ▪ Cost Savings, ▪ De-risking Material Sourcing, Particulars Savings ▪ Reducing Risk of Handling Hazardous Raw Material Cost Bulk Raw materials & Intermediates ▪ Corrosive Raw Material Savings presently procured at 1.5 tim
Slide 23: Phase I: Manufacturing Process
Phase I: Manufacturing Process Mono Chloro Benzene Sold outside (MCB) Captive Consumption for Para Nitro production of : Aline Para Nitro Aline Sold outside 2, 4 Di Nitro Chloro Benzene 2, 4 Di Nitro Para Nitro Chloro Chloro Benzene (PNCB) Benzene Sold outside* Captive Consumption for production of
Slide 24: Phase II: Manufacturing Process
Phase II: Manufacturing Process Liq.SO2 Sulphuric Sulphur Oleum 24% Liq. SO3 Acid Thionyl Chloride Chlorine Chloro Sulphonic Acid HCL Oleum 65% Di Methyl Aniline Aniline Coal Fired 14 MW HP Steam To Phase II, III Di Methyl Sulphate Methanol Boilers Co-Gen Power PNCB To Phase I Hydrogen Sulphuric Aci
Slide 25: Post Expansion of Phase II Capacities
Post Expansion of Phase II Capacities Phase I Phase II Expansion Converting –ve realisation product: 57,600 5,27,885 Hydrochloric acid to Profitable product: Chloro 158,747 Sulphonic acid 36,000 Higher requirement of 238,528 21,600 Sulphuric acid for manufacturing 1,30,610 • Reduces transportation &
Slide 26: Efficiency
uy hnolo ATO i. thas oC al Efficiency faa emi os aulotale contra capt ices future $22 om Poa me Toto alee: gees i a 26
Slide 27: Growth by way of Efficiencies
Growth by way of Efficiencies ✓ Global Size Manufacturing Plant driven by the latest world class State of the Art Technology Cost Efficiencies: ✓ Near “All – Weather” International ports viz., JNPT, Dahej, Kandla & Mundra • Transportation cost • Handling cost ✓ Proximity advantage of Chlor Alkali an
Slide 28: Internationally proven Automated Technology
Internationally proven Automated Technology Fully Automated Plant – Leading to Cost Efficiencies 4.2 2.5 Avg. Employee Cost 1.8 1.9 (Rs. In Lacs/yr)* FY16 FY17 FY18 FY19 4.4 4.3 3.5 3.9 Fixed Cost as % to Sales FY16 FY17 FY18 FY19 Emerge as one of the Highest Quality at lowest cost producers of Benz
Slide 29: R&D is our Core Competence
R&D is our Core Competence From scientific conceptualization-to-Plant scale-up-to- Customer end-use Developing new products Improving process to meet capabilities Target market needs RESEARCH & DEVELOPMENT Delivering superior technical service and Reducing technical dialogue with our manufacturing c
Slide 30: Execution of Strategy on Track
Execution of Strategy on Track Phase II (Rs. In Crs) Rationale 735 Additional Installed Capacity: 527,900 MTPA, ✓ 50% Capitve Consumption ✓ 30% for existing customers ✓ 20% to substitute import 585 Additional Revenue expected: 10-12 bn at 80% utilization Debt to Equity 100 1:1 50 Current Project Com
Slide 31: Key Takeaways
Key Takeaways Fully Automated Process Plant - Low manpower cost Operates in Profitable Segments Single location Composite Fully Value addition by way of backward & Forward Integration Recycle & Re-use of Manufacturing facility By-Products Low cost of Effluent treatment as a result of Higher Yield &
Slide 32: Financial Highlights
Financial Highlights 32
Slide 33: Performance Trend on Yearly basis
Performance Trend on Yearly basis Sales Volume (MT) Revenue (Rs. In Crs) EBITDA (Rs. / MT) 73,480 23,387 413 21,757 20,099 18,821 346 314 14,900 15,100 275 45,081 248 33,961 131 22,300 24,011 9,900 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17* FY18* FY19* FY14 FY15 FY16 FY17 FY18 FY19 EBITDA^ (
Slide 34: Strong Capital Employed
Strong Capital Employed Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 FY19 ROCE = EBIT / Net Capital Employed Equity = Share Capital + Reserves & Surplus 52.1 65.1 89.1 366.6 737.3 825.9 Quasi Equity: NCRPS + Unsecured Loans by Promoter + 32.2% 370.7 386.0 408.9 234.1 234.1 254.3 Share Application
Slide 35: Stable Asset Turnover
Stable Asset Turnover Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 FY19 Asset Turnover (x) Net Sales 131.5 247.6 275.3 308.6 346.2 412.8 1.30 1.20 Gross Block of Fixed Assets 406.2 412.1 464.9 503.1 838.8 843.9 1.10 1.10 1.10 Less: Unutilised Gross Block (Land for Future Expansion) 209.0 209.0 21
Slide 36: Financial Parameters
Financial Parameters Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 FY19 Debt/ Equity (x) Equity = Share Capital + Reserves & Surplus 52.1 65.1 89.1 366.6 737.3 825.9 0.48 Quasi Equity: NCRPS + Share Application Money + 370.2 386.0 409.0 234.1 234.1 254.3 0.32 Subordinated Unsecured Loans from Prom
Slide 37: Working Capital Cycle
Working Capital Cycle Debtor Days^ Inventory Days 94 80 87 70 82 76 77 61 51 53 49 20 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 Creditor Days Working Capital Days 26 135 136 123 116 110 19 92 15 11 10 8 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 ^Calculated on Gros
Slide 38: Promoter Capacity and Commitment
Promoter Capacity and Commitment ✓ Promoter infused equity through warrants: Rs. 69 Crores at Rs. 180 per share ✓ Unsecured loans of Rs. 126.9 Crores converted to equity at Rs. 180 Per Promoter share Holding: 74.98% Equity ✓ Equity (private placement) infusion by Reliance Nippon Life AMC and Infusio
Slide 39: Contact Us
Contact Us Seya Industries Ltd CIN: L99999MH1990PLC058499 Ms. Neha Shroff Ms. Manisha Solanki Email: neha.shroff@sgapl.net Email : corporate@seya.in Tel: +91 77380 73466 www.sgapl.net www.seya.in Mr. Shrikant Sangani Email: Shrikant.Sangani@sgapl.net Tel: +91 79774 15681 39