Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q2 FY2023 Earnings Presentation
44 slides from Chemplast Sanmar's earnings presentation, Nov 6, 2022
Slide 1: Exchange filing cover letter: Investor Presentation
November 6, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed copy of Investor Pre
Slide 2: Chemplast Sanmar Ltd. Investor Presentation Q2-FY'23 Results
Chemplast Sanmar Ltd. Investor Presentation Q2-FY’23 Results November 2022
Slide 3: Safe Harbour
Safe Harbour CHEMPLAST SANMAR LIMITED This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemplast Sanmar Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 4: Performance Highlights
Performance Highlights
Slide 5: Quarterly Performance Highlights: Q2 & H1 FY'23
Performance Highlights: Q2 & H1 FY’23 CHEMPLAST SANMAR LIMITED Rs. Cr Key highlights TotalTotal Revenues Revenues EBITDA PAT • Volumes of all products witnessed an increase in H1-FY’23 compared to the volumes in the corresponding period last year 19% 11% 7% 3% Margin • Uncertainty in the pricing env
Slide 6: Specialty Chemicals Continue to Drive the Profitability
Specialty Chemicals Continue to Drive the Profitability CHEMPLAST SANMAR LIMITED Total Revenues EBITDA Currently, Suspension In the long term, once Rs. Cr Rs. Cr PVC dominates the our proposed 5,892 2,633 2,606 1,197 498 293 sales mix. However, in expansions come on- CSL 34% 32% 38% terms of profita
Slide 7: MD's Message
MD’s Message CHEMPLAST SANMAR LIMITED “The unique situation that the PVC industry is experiencing continued through this quarter. Our business continued to face headwinds in Q2 FY’23 as well due to the zero-COVID policies in China, rising energy costs due to the Russia-Ukraine war and overall inflat
Slide 8: Product group-wise Volumes & Revenues: Q2 & H1 FY'23
Product group-wise Volumes & Revenues: Q2 & H1 FY’23 CHEMPLAST SANMAR LIMITED mt Sales Volume Q2 FY’23 Q2 FY’22 Y-o-Y H1 FY’23 H1 FY’22 Y-o-Y Specialty Chemicals 20,064 20,842 -4% 33,703 29,677 14% Other Chemicals # 41,690 37,851 10% 79,679 66,633 20% Suspension PVC 77,933 93,331 -16% 152,417 146,49
Slide 9: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Q2 FY’23 Q2 FY’22 Y-o-Y H1 FY’23 H1 FY’22 Y-o-Y Revenue from Operations 1,194 1,673 -29% 2,606 2,633 -1% Cost of Goods Sold 782 1,077 1,686 1,675 Employee Cost 38 33 74 61 Other Expenses 276 217 553 399 EBITDA 98 346 -72%
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet CHEMPLAST SANMAR LIMITED Rs. Cr ASSETS Sep-22 Mar-22 EQUITY AND LIABILITIES Sep-22 Mar-22 Non-Current Assets Equity a) Property, Plant And Equipment 3,148 3,195 a) Equity Share Capital 79 79 b) Capital Work in Progress 73 34 b) Other Equity 1,671 1,592 c) Instruments entir
Slide 11: Consolidated Cashflow Statement
Consolidated Cashflow Statement CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Sep-22 Sep-21 Net Profit Before Tax 94 220 Adjustments for: Non Cash Items / Other Investment or Financial Items 189 287 Operating profit before working capital changes 283 507 Changes in working capital 83 36 Cash generated
Slide 12: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Q2 FY’23 Q2 FY’22 Y-o-Y H1 FY’23 H1 FY’22 Y-o-Y Revenue from Operations 569 534 7% 1,139 846 35% Cost of Goods Sold 264 209 492 284 Employee Cost 25 19 49 38 Other Expenses 210 156 407 277 EBITDA 70 151 -54% 191 247 -23% E
Slide 13: Stand-alone Balance Sheet
Stand-alone Balance Sheet CHEMPLAST SANMAR LIMITED Rs. Cr ASSETS Sep-22 Mar-22 EQUITY AND LIABILITIES Sep-22 Mar-22 Non-Current Assets Equity a) Property, Plant And Equipment 2,196 2,220 a) Equity Share Capital 79 79 b) Capital Work in Progress 66 27 b) Other Equity 3,799 3,718 13 12 c) Instruments
Slide 14: Stand-alone Cashflow Statement
Stand-alone Cashflow Statement CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Sep-22 Sep-21 Net Profit Before Tax 97 97 Adjustments for: Non Cash Items / Other Investment or Financial Items 88 148 Operating profit before working capital changes 185 245 Changes in working capital (33) (187) Cash generat
Slide 15: Company Overview
Company Overview
Slide 16: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… CHEMPLAST SANMAR LIMITED #1 manufacturer of Specialty Paste PVC resin in #1 manufacturer of S-PVC in South India and 2 nd India largest in India(1) Leading player in Custom Manufacturing #1 manufacturer of Hydrogen Peroxide in South India Lea
Slide 17: … with a Diversified Product Portfolio
… with a Diversified Product Portfolio CHEMPLAST SANMAR LIMITED Chemplast Sanmar CCVL (1) Specialty Chemicals Other Chemicals Suspension PVC Specialty Paste PVC Custom Caustic soda Hydrogen Chloromethanes resin manufacturing peroxide Irrigation End user Auto Paper Textile Paper & Textile Park Pharma
Slide 18: Specialty Paste PVC Resin
Specialty Paste PVC Resin CHEMPLAST SANMAR LIMITED Industry Overview Company Overview 143 ktpa Indian demand FY20 (1) #1 manufacturer of Specialty Paste PVC resin in India 9.3% CAGR (FY21-25) (1) Domestic 55% Imports 45% 66 ktpa 41 ktpa Key growth drivers Installed capacity Planned capacity addition
Slide 19: Custom Manufactured Chemicals
Custom Manufactured Chemicals CHEMPLAST SANMAR LIMITED Industry Overview Company Overview Leading player in custom manufacturing US$ 6.0 bn 9.1% Indian market size FY21 (1) CAGR (FY21-25) (1) 1,068 mtpa Setting up a Installed capacity multipurpose facility in Key growth drivers at Berigai phases • E
Slide 20: Other Chemicals
Other Chemicals CHEMPLAST SANMAR LIMITED Caustic Soda Hydrogen Peroxide Chloromethanes 282 ktpa 3.5 mn mtpa 510 ktpa Indian Indian demand 8.2% demand FY21 10.3% Indian Demand 10.1% FY21(1) (1) CAGR (FY21-25) (1) FY21 (1) CAGR (FY21-25) (1) CAGR (FY21-25) (1) Industry Key growth drivers Key growth dr
Slide 21: Suspension PVC (CCVL)
Suspension PVC (CCVL) CHEMPLAST SANMAR LIMITED Industry Overview Company Overview manufacturer of S-PVC in South India and 2nd largest #1 in India 3,340 ktpa 7.7% Indian demand in FY20(1) CAGR (FY21-25) (1) 331 ktpa Installed capacity Key growth drivers at Cuddalore (31 ktpa added in May-22 via debo
Slide 22: Legacy of Over Five Decades
Legacy of Over Five Decades CHEMPLAST SANMAR LIMITED Marine terminal facility CCVL became a wholly owned Commencement of Expansion of production and EDC Plant Capacity expansion: subsidiary of our Company; manufacturing of PVC capacity of PVC resins to commissioned at Paste PVC to 66,000 tpa at Mett
Slide 23: Chemplast Sanmar: Key Highlights
Chemplast Sanmar: Key Highlights CHEMPLAST SANMAR LIMITED Leadership position across a wide array of products; Growing end-use applications; Wide and stable customer base High entry barriers The custom manufacturing industry has significant entry barriers, including customer Paste PVC manufacturing
Slide 24: Organizational Capabilities
Organizational Capabilities
Slide 25: Quality Manufacturing Facilities…
Quality Manufacturing Facilities… CHEMPLAST SANMAR LIMITED Location Mettur, Tamilnadu Berigai Tamilnadu Karaikal, Puducherry Cuddalore, Tamilnadu Paste PVC 66 ktpa Caustic Soda 67 ktpa Caustic soda Custom manufacturing Suspension PVC resin Capacity Hydrogen Peroxide 34 ktpa 1068 mtpa 52 ktpa 331 ktp
Slide 26: … with a High Degree of Backward Integration
… with a High Degree of Backward Integration CHEMPLAST SANMAR LIMITED Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Caustic Soda Imported Coal Methanol 67 kt EDC Power Plant Electrolysis Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCI HCI 35 k
Slide 27: Glance at Manufacturing Facilities
Glance at Manufacturing Facilities CHEMPLAST SANMAR LIMITED Paste PVC plant, Chloromethanes plant, Marine Terminal Facility, Mettur, Tamilnadu Mettur, Tamilnadu Cuddalore, Tamilnadu Custom manufacturing, Caustic Soda manufacturing, Suspension PVC, Berigai , Tamilnadu Karaikal, Puducherry Cuddalore,
Slide 28: Strong Focus on Sustainability
Strong Focus on Sustainability CHEMPLAST SANMAR LIMITED Environment Friendly Practices Health & Safety Measures Annual sustainability reports published for over a decade • Zero liquid discharge policy • Transport safety - • Desalination plants at coastal Installation of speed facilities - avoid usag
Slide 29: Key Awards & Recognition
Key Awards & Recognition CHEMPLAST SANMAR LIMITED Accreditations Key Awards Sword of Sword of Honor ECOVADIS SILVER Star Award from Honor National Safety Council British Safety MEDAL British Safety Council Council Safety Safety 2020, 2021, Cuddalore Mettur Plant-2 Sustainability Award ICC’s Award fo
Slide 30: Leadership Team With Deep Domain Expertise
Leadership Team With Deep Domain Expertise CHEMPLAST SANMAR LIMITED Dr. Krishna Kumar Rangachari Vijay Sankar Ramkumar Shankar Deputy Managing Director - Custom Chairman and Non-Executive Managing Director Manufactured Chemicals Division Director Exp : 34+ Years Exp : 31+ years • Industrialist with
Slide 31: Eminent Board of Directors
Eminent Board of Directors CHEMPLAST SANMAR LIMITED Vijay Sankar Ramkumar Shankar Chairman and Non-Executive Director Managing Director • Industrialist with experience in managing several businesses • Member of the CII National Committee on Chemicals and • Past president of Indian Chemical Council P
Slide 32: Way Forward
Way Forward
Slide 33: Our Strategies
Our Strategies CHEMPLAST SANMAR LIMITED Expansion of the production capacities • Increasing Paste PVC capacity to benefit from structural changes in the supply side dynamics and to cement leadership position in India • Expanding custom manufacturing capabilities to leverage our chemistry process res
Slide 34: Capex Plans
Capex Plans CHEMPLAST SANMAR LIMITED Low cost future expansion leveraging existing land and infrastructure facilities 2022 2024 2024-2025 Suspension PVC resin Paste PVC Custom Manufacturing Capacity debottlenecking by 31 kt 2024 Planning to add 41 kt capacity at Setting up a multipurpose facility at
Slide 35: Historical Performance
Historical Performance
Slide 36: Product group-wise Volumes & Revenues
Product group-wise Volumes & Revenues CHEMPLAST SANMAR LIMITED mt Sales Volume FY’22 FY’21 FY’20 Specialty Chemicals 65,841 63,231 64,739 Other Chemicals # 1,46,652 105,060 119,863 Suspension PVC 2,99,268 273,296 271,300 Total Sales Volume 5,11,761 441,587 455,902 Rs. Cr Total Revenue FY’22 FY’21 FY
Slide 37: Historical Performance Highlights
Historical Performance Highlights CHEMPLAST SANMAR LIMITED Rs. Cr Margin Revenues EBITDA 13% 22% 20% 5,892 # 1,197 3,799 855 3,123 400 FY’20 FY’21 FY’22 FY’20 FY’21 FY’22 PAT Net Debt 8% 11% 649 2,060 ++ 1,459 ++ 310 1 -362 FY’20 FY’21 FY’22 FY’20 FY’21 FY’22 All computations are on Consolidated bas
Slide 38: Consolidated Profit & Loss Account (Proforma)
Consolidated Profit & Loss Account (Proforma) CHEMPLAST SANMAR LIMITED Rs. Cr Particulars FY’22 FY’21 Y-o-Y FY’20 Revenue from Operations 5,892 3,799 55% 3,123 Cost of Goods Sold 3,714 2,229 1,933 Employee Cost 120 114 118 Other Expenses 862 601 671 EBITDA 1,197 855 40% 400 EBITDA Margin 20.3% 22.5%
Slide 39: Consolidated Balance Sheet (Proforma)
Consolidated Balance Sheet (Proforma) CHEMPLAST SANMAR LIMITED Rs. Cr ASSETS Mar-22 Mar-21 Mar-20 EQUITY AND LIABILITIES` Mar-22 Mar-21 Mar-20 Non-Current Assets Equity a) Property, Plant And Equipment 3,195 3,087 3,232 a) Equity Share Capital 79 67 67 b) Capital Work in Progress 34 25 13 b) Other E
Slide 40: Consolidated Cashflow Statement (Proforma)
Consolidated Cashflow Statement (Proforma) CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Mar-22 Mar-21 Mar-20 Net Profit Before Tax 796 563 9 Adjustments for: Non Cash Items / Other Investment or Financial Items 420 526 303 Operating profit before working capital changes 1,216 1,089 312 Changes in wor
Slide 41: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account CHEMPLAST SANMAR LIMITED Rs. Cr Particulars FY’22 FY’21 Y-o-Y FY’20 Revenue from Operations 2,012 1,289 56% 1,259 Cost of Goods Sold 700 427 421 Employee Cost 77 77 83 Other Expenses 607 393 441 EBITDA 628 391 60% 314 EBITDA Margin 31.2% 30.4% 24.9% Other income 33
Slide 42: Stand-alone Balance Sheet
Stand-alone Balance Sheet CHEMPLAST SANMAR LIMITED Rs. Cr ASSETS Mar-22 Mar-21 Mar-20 EQUITY AND LIABILITIES Mar-22 Mar-21 Mar-20 Non-Current Assets Equity a) Equity Share Capital 79 67 67 a) Property, Plant And Equipment 2,220 2,088 2,156 b) Other Equity 3,718 1,954 1,910 b) Capital Work in Progres
Slide 43: Stand-alone Cash flow Statement
Stand-alone Cash flow Statement CHEMPLAST SANMAR LIMITED Rs. Cr Particulars Mar-22 Mar-21 Mar-20 Net Profit Before Tax 434 56 139 Adjustments for: Non Cash Items / Other Investment or Financial Items 194 324 174 Operating profit before working capital changes 628 379 313 Changes in working capital -
Slide 44: Thank you
Thank you Company Investor relations advisor Chemplast Sanmar Ltd. Strategic Growth Advisors Pvt. Ltd. CIN- L24230TN1985PLC011637 CIN - U74140MH2010PTC204285 N Muralidharan – Chief Financial Officer Shikha Puri / Shrikant Sangani nm3@sanmargroup.com shikha.puri@sgapl.net/ shrikant.sangani@sgapl.net