Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Q2 FY2023 Earnings Presentation
20 slides from Epigral's earnings presentation, Oct 20, 2022
Slide 1: Exchange filing cover letter for Q2FY23 earnings presentation
20/10/2022 To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SCRIP CODE: MFL SCRIP CODE: 53332 Dear Sir/s Sub: - Q2FY23 Earning Presentation With reference to Regulation 30
Slide 2: Meghmani Finechem Limited Q2FY23 Earnings Presentation
Meghmani Finechem Limited Q2FY23 Earnings Presentation 20th October, 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: Company Overview
Company Overview Founded: 32% 29% 2007 5 Year Revenue CAGR (FY22) 5 Year EBITDA CAGR (FY22) Employees: 850+ 1.3x 29% Debt to Equity (FY22) ROCE (FY22) Capacity: Chlor-Alkali# – 421 KTPA 5,000 Derivatives# – 190 KTPA Revenue from operations (₹ Cr) 1551 Certified: Responsible Care Certificate 829 710
Slide 5: Key Highlights – Q2FY23
Key Highlights – Q2FY23 Operational Highlights (YoY): Financial Highlights (YoY): Revenue grew 64% to ₹ 556 Cr on account of high Capacity utilization for Chlor-Alkali stood at 85%, CMS stood realizations from Chlor-alkali and Hydrogen Peroxide. at 104% and H2O2 was at it’s highest at 97% Chlor-alka
Slide 6: Key Highlights – H1FY23
Key Highlights – H1FY23 Financial Highlights (YoY): Strategic Update: In H1FY23, MFL commissioned Epichlorohydrin on 1st June, Revenue grew 73% to ₹ 1,088 Cr on account of 3% volume CPVC on 18th July and additional capacity of Caustic Soda on growth and high realizations from all the products vs H1F
Slide 7: CMD Message
CMD Message “We achieved highest-ever revenue in Q2FY23. The performance of the quarter is on account of high realizations from majority of our products. H1FY2023 was an exciting period as we commissioned all our planned expansion projects, namely- India’s first Epichlorohydrin plant, India’s larges
Slide 8: Q2FY23 Financial Highlights
Q2FY23 Financial Highlights 850 Revenue YoY Growth - 64% 300 EBITDA YoY Growth - 79% 45% 170 PAT YoY Growth - 95% 25% 750 49% 47% 46% 50% 35% 40% 150 20% 20% 44% 250 35% 650 32% 35% 130 20% 533 556 30% 17% 108 16% 550 42% 499 40% 200 187 180 30% 110 99 32% 175 422 14% 92 15% 450 25% 30% 150 141 90 3
Slide 9: H1FY23 Financial Highlights
H1FY23 Financial Highlights 2,000 800 45% 600 25% 1,800 Revenue EBITDA PAT 46% 50% 700 40% 44% 500 1,600 34% 18% 20% 31% 35% 600 1,400 40% 30% 400 1,200 1,088 500 13% 15% 30% 25% 1,000 400 368 300 800 20% 630 20% 300 199 10% 600 15% 200 193 200 400 10% 84 5% 10% 100 200 100 5% - 0% - 0% - 0% H1FY22
Slide 10: H1FY23 – Key ratios
H1FY23 – Key ratios ROCE (%) ROE (%) Net Debt/EBITDA (x) 50% 37% 2.5 29% 36% 1.9 20% 24% 1.3 FY22 Q2FY22 Q2FY23 FY22 Q2FY22 Q2FY23 FY22 Q2FY22 Q2FY23 TTM EBIT, PAT and EBITDA are considered for above ratios o ROCE and ROE improved to 37% and 50% respectively on account of higher realization from all
Slide 11: Revenue Break-up – Diversified Business Model
Revenue Break-up – Diversified Business Model 25% 25% 31% FY22 H1FY22 H1FY23 ₹ 1,551 Cr ₹ 630 Cr ₹ 1,088 Cr 69% 75% 75% Chlor-Alkali Derivatives Chlor-Alkali Derivatives Chlor-Alkali Derivatives 10 | MEGHMANI FINECHEM LIMITED
Slide 12: Operational Overview (Production - KTPA and Utilization - %)
Operational Overview (Production - KTPA and Utilization - %) Chlor-Alkali Chloromethanes Hydrogen Peroxide 100 100% 94% 17 120% 17 120% 90 88% 89% 107% 104% 90% 105% 110% 94% 97% 80 85% 15 15 100% 79% 85% 86% 70 100% 80% 103% 13 13 80% 60 94% 90% 67% 50 70% 11 80% 11 60% 40 70 74 70% 14 15 69 67 60%
Slide 13: Operational Overview – Realisations
Operational Overview – Realisations Q2FY23 - Change in ECU and Sales Realization % YoY Caustic Soda ECU Realization 120% 77% 49,336 51,330 45,852 48,041 14% 27,201 -16% Caustic Soda - ECU Caustic Potash - ECU Chloromethanes Hydrogen Peroxide Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 o On a yearly basis ECU
Slide 14: Project Update as on 30th September 2022
Project Update as on 30th September 2022 Expected Capex Spends - ₹ Cr % of project Product Capacity Commissioning completed Date Commissioned Epichlorohydrin 50KTPA Q1FY23 1st June 2022 Commissioned 184 CPVC Resin 30KTPA Q2FY23 18th July 2022 449 Caustic Soda Commissioned 106KTPA Q2FY23 with CPP 30t
Slide 15: FY2023 Outlook
FY2023 Outlook ~50% ~26% + ~25% + <2.0x Sales Growth EBITDA Margin Return on Capital Target to sustain Net Employed Debt to EBIDITA Vision – To achieve revenue of ₹ 5,000 Cr by FY2027 14 | MEGHMANI FINECHEM LIMITED
Slide 16: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Entered in JV to set up 18.34 MW W
Slide 17: Income Statement
Income Statement Particulars (₹ Cr) Q2FY23 Q2FY22 % Change H1FY23 H1FY22 % Change Revenue from Operations 556 340 64% 1,088 630 73% Gross Profit* 246 144 71% 496 280 77% Gross Margin (%) 44% 42% 46% 44% EBITDA 180 101 79% 368 193 91% EBITDA Margin (%) 32% 30% 34% 31% Depreciation 26 22 19% 48 43 12%
Slide 18: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY17 FY18 FY19 FY20 FY21 FY22 Total Revenue 393 602 720 613 831 1,555 Gross Profit* 199 335 431 300 407 716 Gross Margin (%) 51% 56% 61% 49% 49% 46% EBITDA 144 255 312 194 261 510 EBITDA Margin (%) 37% 43% 44% 32% 32% 33% Depreciation 55 55 54 44 74 86 Fi
Slide 19: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY21 FY22 H1FY23 Liabilities (₹ Cr) FY21 FY22 H1FY23 Fixed Assets 1,228 1,657 1,890 Share Capital 42 42 42 Financial Assets 10 8 8 Reserves & Surplus 643 684 884 Other Non-current Assets 29 11 13 Long-Term Borrowings 340 557 487 Inventories 54 154 266 Redeemable
Slide 20: About Us & Investor Contact
About Us & Investor Contact Meghmani Finechem Limited (“MFL”), incorporated in 2007, is a leading integrated manufacturer of chemicals in India. The company has state of the art manufacturing facilities in Gujarat, Dahej – a leading PCPIR region in the country. MFL’s Dahej facility is a backward and