Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — H1FY21 Earnings Presentation
30 slides from Nath Bio-genes (india)'s earnings presentation, Nov 7, 2020
Slide 1: Nath Bio-Genes (I) Ltd. – Presentation on Unaudited Financial Results
86é S. Nath Bio-Genes (1) Ltd. (CIN LO1110MH1993PLC072842) 07 November 2020 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-537291
Slide 2: H1FY21 Performance
HIFY2I Performance é ee Se. Nath Bio-Genes (I) Ltd. aatta ag, afar 1
Slide 3: 87% of FY20 PAT Achieved in H1FY21
87% of FY20 PAT Achieved in H1FY21 Strong Financial Performance Driven By Superior Operating Performance o Plant Nutrient Segment sale doubled in H1FY21 o H1FY21 revenue growth of 16% despite • Win Chi Win registered a strong growth of 113% covid19 led disruptions o Cotton performing in line with ex
Slide 4: Innovate, Help, Grow
Innovate, Help, Grow Innovate Help Grow (5 Year Performance] 45 150,000 73% New Seeds Developed in last 5 Employment Generated Revenue Growth years 100+ years 50,000 1.2x Contract Farmers EBITDA Growth R&D Team experience #1-3 20,000+ 2.6x Direct Retailers PAT Growth ICAR Trials 15+ 15,000 440 bps P
Slide 5: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Building A Strong Organisation Developing Innovative Products Making the Portfolio more Balanced Balance Sheet becoming Stronger Strategic Presence across Seed Value Chain Delivering strong growth despite an uncertain environment 4
Slide 6: Strongly Positioned in Post Covid World
Strongly Positioned in Post Covid World Moving Towards a Higher Growth Trajectory Revenue Guidance FY21 c.20% Gross Margin c.50% EBITDA Margin Improving 5
Slide 7: Segmental Revenue Contribution
Segmental Revenue Contribution H1FY20 Revenue H1FY21 Revenue INR 1,869 Millions INR 2,165 Millions Others, 22% Others 24% Cotton , 43% Cotton 45% Paddy , 35% Paddy 31% 6
Slide 8: Working Capital Cycle - improving
Working Capital Cycle - improving All figures in INR mn H1FY21 H1FY20 Revenue 2,165 1,869 Inventories 1,742 1,324 Trade Receivables 1,216 1,294 Trade Payables 146 108 Net Working Capital 2,827 2,510 H1FY21 H1FY20 Inventory Days 205 181 Receivable Days 145 177 Payable Days 17 15 Working Capital Cycle
Slide 9: Strong Financial Performance
Strong Financial Performance Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) 54.60% 2,165 53.50% 492 1,869 423 H1FY20 H1FY21 H1FY20 H1FY21 H1FY20 H1FY21 PAT (INR Mn) PAT Margin (%) EPS (INR/Share) 443 23.3 20.90% 20.40% 390 20.5 H1FY20 H1FY21 H1FY20 H1FY21 H1FY20 H1FY21 8
Slide 10: Income Statement
Income Statement Particulars (INR H1FY21 H1FY20 % Change (YoY) Q2FY21 Q2FY20 % Change (YoY) Mn) Total Revenue 2,165 1,869 16.0% 233 214 8.9% Gross Profit 1,158 1,019 9.7% 163 203 -19.8% Gross Margin (%) 53.5% 54.6% 70.1% 95.2% EBITDA 492 423 16.5% 54 53 1.5% EBITDA Margin (%) 22.7% 22.6% 23.3% 25.0%
Slide 11: Stable Balance Sheet Despite Growth
Stable Balance Sheet Despite Growth Assets (INR Mn) H1FY21 H1FY20 Liabilities (INR Mn) H1FY21 H1FY20 Fixed Assets 2,452 2,310 Share Capital 190 190 Financial Assets 60 52 Reserves & Surplus 5,829 5,275 Other Non-current Assets 10 24 Long-Term Borrowings 6 7 Inventories 1,742 1,324 Long-term Provisio
Slide 12: Balance Sheet Becoming Stronger
Balance Sheet Becoming Stronger Giving lesser Maintaining high Ramping up advances as products • No Debt Company despite double digit growth inventory for collections from gain prominence in achieving higher sales Receivables the market • Working capital days reducing • Efficiently Managed Assets 1.
Slide 13: Cotton Segment: Facing Headwinds
Cotton Segment: Facing Headwinds Cotton Business Impacted by Multiple Challenges Issues Business Impact Action Taken Price Regulation Margins adversely Impacted o Price regulated by government has remained unchanged o Cost of production and processing has continuously for many years increased Divers
Slide 14: Highly Ranked Cotton Products
Highly Ranked Cotton Products o Cotton growth of 20% in line with expectation 3 YEAR OUTLOOK: o Sales return of 20% - as provisioned 20% + Growth CAGR o Launched two new products- Sanket and Daksh this year o Focusing on increasing presence in untouched areas of the existing states Progress of Acr
Slide 15: Paddy: Strategic Position in Hybrid Paddy
Paddy: Strategic Position in Hybrid Paddy Paddy grew 12.38% in H1FY21 One of the fastest Growing Crops in India 3 YEAR OUTLOOK: Pan India Paddy Sales to mitigate irregular monsoons 20% + Growth Exploring Export Opportunities 10+ Presence of Paddy across India Key Products Key Markets Paddy
Slide 16: Highly diversified vegetable Portfolio
Highly diversified vegetable Portfolio o High Margin segment : 60%+ margins 3 YEAR OUTLOOK: o Presence across 10 products;Vegetables sold Pan India 30% + Growth o Separate teams to focus on distribution and marketing Hybrid Vegetable Market Size: INR 25 – 30 Bn Hybrid Vegetable Industry: Market Br
Slide 17: Win Chi Win: to be a major growth booster
Win Chi Win : to be a major growth booster o Sales doubled - Registered a strong growth of 113% in 3 YEAR OUTLOOK: H1FY21 30% + Growth o High Margin segment : 70%+ Margins o NBIL has a long-term agreement in place as the sole seller of WCW in India Geographical Presence of Win Chi Win • A growth enh
Slide 18: Corporate Overview
Corporate Overview é ee Se. Nath Bio-Genes (I) Ltd. aatta ag, afar
Slide 19: 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 20: 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 = 65%+ Plant Nutrient FY15 Revenue Cotton Paddy Vegetables Supplement Others FY20 Total 19
Slide 21: Next 5 Year: Multiple Growth Drivers
Next 5 Year: Multiple Growth Drivers Moving towards a Diversified and De-Risked Portfolio (% Sales) Plant Nutrient Supplement 11 12 12 14 Vegetables 11 14 16 16 Cereals* 15 17 19 20 Concentrated Cotton + Paddy 63 Portfolio: Cotton And Paddy 57 54 contribute to 60%+ 50 of Sales 2019-20 2020-21 2021-2
Slide 22: 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 23: 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 24: Strategic Presence Across the Seed Value Chain
Strategic Presence Across the Seed Value Chain Genetic Resources/Germplasms 18,000+ Germplasm Library 100+ years R&D 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 25: Appendix
Appendix é ee Se. Nath Bio-Genes (I) Ltd. aatta ag, afar 24
Slide 26: Visionary Leadership; Attracting the Best Talent
Visionary Leadership; Attracting the Best Talent Mr. N Mr. S 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 Nath leadership team shares the same passion as its promoters. The
Slide 27: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Net Debt (INR Mn) Net Worth (INR Mn) EBITDA Margin (%) PAT Margin (%) 26
Slide 28: Historical Income Statement
Historical Income Statement Nath Bio-Genes’ P&L Statement Particulars (INR Mn) FY20 FY19 FY18 Total Revenue 2799 2,309 1,917 Gross Profit 1536 1,253 1,073 Gross Margin (%) 54.9% 54.3% 56.0% EBITDA 547 433 404 EBITDA Margin (%) 19.5% 18.7% 21.1% Depreciation 14 14 10 Finance Cost 65 52 103 PBT 485 38
Slide 29: Historical Balance Sheet
Historical Balance Sheet Assets (INR Mn) FY20 FY19 FY18 Liabilities FY20 FY19 FY18 Fixed Assets 2,460 2,317 2,109 Share Capital 190 190 190 Financial Assets 52 52 51 Reserves & Surplus 5,386 4,885 4,502 Other Non-current Assets 15 20 11 Long-Term Borrowings 3 5 4 Inventories 2,043 1,554 1,235 Long-t
Slide 30: Thank You
Thank You For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaadvisors.com M:+91 97693 64166 29
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