Laxmi Organic Industries Ltd. · NSE:LXCHEM
Laxmi Organic Industries — Q1 FY2025 Earnings Presentation
39 slides from Laxmi Organic Industries's earnings presentation, Jul 29, 2024
Slide 1: Intimation letter to stock exchanges
July 29, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Bandra Kurla Complex, 1st Floor, New Trading Ring, Bandra (E), Rotunda Building, P. J. Towers, Mumbai – 400 051 Dalal Street, Fort, Trading Symbol: LXCHEM Mumbai – 400 001 Scrip Code
Slide 2: Geared to Win – Investor Presentation Q1FY25
Geared to Win – Investor Presentation Investor Presentation – Q1FY25 29 July 2024 www.laxmi.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Laxmi Organic Industries Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall no
Slide 4: Company Overview
Company Overview www.laxmi.com
Slide 5: Overview
Overview Essentials: Lean & Reliable supplier Specialties: World Class Technology serving diverse industries platforms with strong development capabilities serving diverse industries Large, global addressable Emphasis on Development, Quality, markets across Essentials (>USD 12bn) and ESG, Responsibl
Slide 6: Diversified Business Catering to Varied Industries
Diversified Business Catering to Varied Industries Essentials Specialties Pharmaceuticals Agrochemicals Inks & Paints Coatings Pharmaceuticals Agrochemicals Dyes & Pigments Fragrance & Flavour End User Industries Printings Packaging Adhesives Fragrance & Flavour Paints & Coating Flame Redundant Elec
Slide 7: Track Record of technology absorption and in-house R&D capabilities
Track Record of technology absorption and in-house R&D capabilities ◼ Acquisition of Ketene/Diketene ◼ Addition of >40 New Derivatives for multiple industries business 2010 including agro and pharma and CASE to the ◼ Acquired know-how of some Specialties Platform acquired from Clariant derivatives f
Slide 8: Leadership Ambitions
Geared to Win Demonstrated 1 Cost and Technology leadership capability of Leadership absorbing and Market leadership – top 3 in scaling best in 2 Essentials (ex-China) and top class 5 in Specialties globally technologies Unlevered Balance Sheet – 3 Partner of choice for customers ready to invest Lar
Slide 9: Innovation Pipeline
Innovation Pipeline Revenue Investment Continue >20% Revenue New Products Contribution from Continue to New Products in invest 2% of Infrastructure Specialties* Strong Pipeline – Specialties 11 products are in revenues for Piloting assets pilot and capex Innovation Innovation and Kilo Labs in approv
Slide 10: Customer Focused Projects – Some Recent Success Stories
Some Recent Success Stories Developed Developed Ethylene Oxide derivative from laboratory – gram to commercial – on scale for a global innovator Customer Focused Projects – On Spec & On Time Scaled Absorbed and scaled up mercaptan chemistry for an industry leading agrochemicals innovator Innovated I
Slide 11: Strategically located Manufacturing Sites
Strategically located Manufacturing Sites India Mahad (2 Sites) Manufacturing Units 3rd party storage tank agreements • Land parcel: 45 acres • Land Occupancy: 90% • Product Mix: o Essentials – 60% o Specialties – 40% Dahej* Europe Dahej* Lote* Mahad, Maharashtra (2 units) • Land parcel: 86 acres Lo
Slide 12: Network and Alliances
Network and Alliances Ravi Goenka Dr Rajan Venkatesh Harshvardhan Goenka Rajeev Goenka Manish Chokhani Executive Chairman Managing Director & Chief Executive Director – Strategy Non-Executive Director Independent Director Executive Officer & Business Development Bachelor’s degree in Chemical Masters
Slide 13: Strong Management Team
Strong Management Team Dr Rajan Venkatesh Harshvardhan Goenka Tanushree Bagrodia S. Daipayan Bora Uday Vaishampayan Managing Director & Chief Executive Director – Strategy Chief Financial Officer Chief Transformation Officer Sr. Vice President Corporate EHS Executive Officer & Business Development M
Slide 14: Living Our Values to Deliver our Ambitions
Living Our Values to Deliver our Ambitions INTEGRITY INNOVATION To do what is right in the interest of all To create a culture where failure is our stakeholders with an unwavering the first step to success focus CUSTOMER CENTRICITY SUSTAINABILITY To improve the lives of our customers To make a posit
Slide 15: Accreditation & Certification
Accreditation & Certification Recognized for its sustainable practices Accredited facilities Biobased Product Label for Ethyl Acetate Going beyond the regulatory compliances Disclosure of Business Responsibility & Sustainability Report (BRSR) LAXMI ORGANIC INDUSTRIES LIMITED | Q1FY25 14
Slide 16: Awards & Accolades
Awards & Accolades State Level Award - DISH Certificate of Appreciation from National Safety Council of India for consecutive 3 years Best Supporter for fire mitigation National Level Unit II: National Level EHS Merit Award 4th Level awards from National Safety Council of India – Announced in Dec. 2
Slide 17: Geared to Grow – Five Year Strategic Plan
Geared to Grow - Five Year Strategic Plan www.laxmi.com
Slide 18: Geared to Grow: Differentiated Financial Steering
Geared to Grow: Differentiated Financial Steering Essentials Specialties Ketene/ Other / New Technology Platform Esterification Acetylation Fluorination Diketene Platforms Asset Turns Asset Turns 3x - 5x 1x - 2x Targeted Financial KPIs EBITDA Margins EBITDA Margins 8-12% 20-25% Combined ROCE 20% LAX
Slide 19: Consolidated Enterprise
Consolidated Enterprise (in INR Mn.) Revenue Total EBITDA ROCE 2x 3x 20% 28,650 10% 2,839 FY 24 FY 28 E FY 24 FY 28 E FY24 FY28 E Key Highlights Investments of approx. INR 11,000 Mn will enable the company to • Double the revenues by FY28 • Triple the EBITDA by FY28 • Double the RoCE to 20% by FY28
Slide 20: Essentials: 5-Year Strategy and Right to Win
Essentials: 5-Year Strategy and Right to Win Go Deeper, Go Broader Strategy Grow in the Existing Products Enter in New Products • Retain India market share • Portfolio expansion • Grow exports • De-risking of business • Focus on continuous operational efficiencies • Future ready for biobased product
Slide 21: Essentials: Geared to Grow
Essentials: Geared to Grow (in INR Mn.) Incremental Capex Revenue Total EBITDA 2x 3x 3,500 2,000 19,485 800 FY 25-26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E Key Highlights Investments of approx. INR 5,500 Mn will enable the company to • Expand and diversify the product portfolio • Almost double the rev
Slide 22: Specialties: 5-Year Strategy and Right to Win
Specialties : 5-Year Strategy and Right to Win Specialties Growth Drivers Strategy Expand & Optimise in Incumbents Enter in New Products • Grow market share • Focus on global customers • Fluro assets to start delivering revue in FY25 • Improve cost leadership via continuous operational • To have min
Slide 23: Specialties: Geared to Grow
Specialties: Geared to Grow (in INR Mn.) Incremental Capex Revenue Total EBITDA 2x 2.5x 4,000 8,205 2,039 1,500 FY 25-26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E Key Highlights Investments of approx. INR 5,500 Mn will enable the company to • Double the revenues by FY28 • Grow EBITDA by 2.5x FY28 • Maint
Slide 24: Financial Highlights Q1FY25
Financial Highlights Q1FY25 www.laxmi.com
Slide 25: From the desk of MD & CEO
From the desk of MD & CEO Commenting on the Q1FY25 results, Dr Rajan Venkatesh – MD & CEO says, “On a standalone basis, we are happy to report a comparable sequential performance and growth year on year in Q1FY25, taking out one off effect in Q4FY24 and despite a scheduled plant turnaround in Essent
Slide 26: Capex Update - Dahej
Capex Update - Dahej Major Milestones achieved. Inorganic EC Bhoomi Pujan at Organic CTE received Public hearing Received on 04-May- Dahej Site on 10-May- on 20-Jun-24 Completed on 18-Jul- 24 24 24 Civil Foundation work Weigh bridge for Amber-2 started at calibrated and ready Dahej. for operations L
Slide 27: Capex Update - Lote
Capex Update - Lote COVID period Q3 FY’20 Q3 FY’23 Q3 FY’21 Equipment's arrived Acquisition of Q4’FY24 technology and Kilo Lab setup created from Italy Q1 FY’24 assets from at Mahad- Mechanical familiarization to Miteni Pilot plant and Kilo completion of key Miteni, Italy process technology lab comm
Slide 28: Standalone Financial Highlights – Q1FY25
Standalone Financial Highlights – Q1FY25 (in INR Mn.) Total Income Total EBITDA* PAT +4% +15% +22% Key Highlights 8,260 1,060 551 6,999 7,296 941 463 821 379 • Site 1 had an annual maintenance 960 shutdown which led to 9% lower volume QoQ while YoY the volumes were 7% higher 100 • Specialties produc
Slide 29: EBITDA Reconciliation – Standalone Vs Consolidated
EBITDA Reconciliation – Standalone Vs Consolidated (in INR Mn.) 941 5 17 87 832 Key Highlights • The large impact on the EBITDA comes from the intercompany elimination which is on account of the income from the subsidiaries to the parent Q1FY25 Loss from Loss from Inter-Co Q1FY25 Standalone Subs - L
Slide 30: Consolidated Financial Highlights – Q1FY25
Consolidated Financial Highlights – Q1FY25 (in INR Mn.) Total Income Total EBITDA* PAT -0.4% +2% -10% 8.000 979 443 7.332 7.301 Key Highlights 813 832 383 344 879 • Lower sales in LOBV has impacted the growth on the revenue YoY while on a QoQ basis the annual 100 maintenance shutdown impacted the Q1
Slide 31: Business Highlights – Q1FY25
Business Highlights – Q1FY25* (in INR Mn.) Essentials Revenue Specialties Revenue +3% +15% 19,494 8,427 18,856 7,313 +11% +1% 2,255 2,469 2,493 4,622 5,346 4,682 Q1FY24 Q4FY24 Q1FY25 FY23 FY24 Q1FY24 Q4FY24 Q1FY25 FY23 FY24 EBIDTA Contribution (in %) EBIDTA Contribution (in %) 31% 33% 34% 31% FY23 F
Slide 32: De-risked Business Model continues to Deliver
De-risked Business Model continues to Deliver* Exports Continue to remain Relevant Revenue from Top 10 Customer 41% 37% 20% 29% 30% 34% 35% 36% 31% 27% 80% 71% 70% 65% 64% FY21 FY22 FY23 FY24 Q1FY25 FY21 FY22 FY23 FY24 Q1FY25 Exports Domestic *On consolidated basis LAXMI ORGANIC INDUSTRIES LIMITED |
Slide 33: Geographical Revenue
De-risked Business Model continues to Deliver* FY 23 Vs FY24 Q1FY24 Vs Q1FY25 Geographical Revenue 9% 13% 15% 14% 24% 30% 32% 20% Q1FY24 Q1FY25 FY23 26% FY24 32% 55% 15% 5% 38% 13% 11% 19% 8% 8% 11% Europe Rest of Asia Pacific Africa America Middle East FY23 Vs FY24 Q1FY24 Vs Q1FY25 Industry Wise Re
Slide 34: Standalone Profit & Loss – Q1FY25
Standalone Profit & Loss – Q1FY25 (in INR Mn.) Profit and Loss (in INR Mn.) Q1FY25 Q1FY24 Y-o-Y Q4 FY24 Q-o-Q FY24 FY23 Y-o-Y Total Income 7,296 6,999 4.2% 8,260 -11.7% 28,731 27,195 5.6% COGS 4,583 4,476 5,278 18,918 17,791 Gross Profit 2,713 2,523 7.5% 2,982 -9.0% 9,813 9,404 4.4% GP Margin (%) 37
Slide 35: Consolidated Profit & Loss – Q1FY25
Consolidated Profit & Loss – Q1FY25 (in INR Mn.) Profit and Loss (in INR Mn.) Q1FY25 Q1FY24 Y-o-Y Q4 FY24 Q-o-Q FY24 FY23 Y-o-Y Total Income 7,301 7,332 -0.4% 8,000 -8.7% 28,932 28,087 3.0% COGS 4,630 4,779 5,040 19,248 18,552 Gross Profit 2,671 2,553 4.6% 2,960 -9.8% 9,685 9,535 1.6% GP Margin (%)
Slide 36: Key Ratios – On Consolidated Basis
Key Ratios – On Consolidated Basis CFO / EBITDA (%) Return on Capital Deployed* (%) Debt : Equity (x) 211% 18% 0.3 15% 97% 0.1 FY23 FY24 FY23 FY24 FY23 FY24 *Excl. CWIP & QIP balances LAXMI ORGANIC INDUSTRIES LIMITED | Q1FY25 35
Slide 37: ETAC RM Prices and Gross Margin (INR/kg)
ETAC RM Prices and Gross Margin (INR/kg) ETAC RM Prices and Gross Margin (INR/kg) 120.0 100% 90% 100.0 98.3 80% 70% 80.0 80.9 69.5 66.3 60% 68.2 66.7 60.0 54.0 50% 57.3 57.5 57.2 48.6 54.7 51.5 49.8 48.5 44.5 44.0 40% 41.0 39.2 40.5 38.9 37.1 38.2 40.0 35.9 35.8 36.4 31.2 32.7 30% 32.4 29.7 25.0 25.
Slide 38: Rationale for Proposed Merger of YFCPL
Rationale for Proposed Merger of YFCPL Laxmi Organic Industries Limited has proposed the merger of its 100% subsidiary Yellowstone Fine Chemicals Private Limited (YFCPL). The admission for the merger was filed with NCLT in July 2024. The amalgamation of the YFCPL is expected to yield the following b
Slide 39: Thank You
Thank You Company: Laxmi Organic Industries Limited Investor Relations: Strategic Growth Advisors Pvt. Ltd. www.laxmi.com www.sgapl.net CIN: L24200MH1989PLC051736 CIN: U74140MH2010PTC204285 Mr. Nishant Dudhoria / Ms. Prachi Chhugani Mr. Aniket Hirpara Email: nishant.dudhoria@sgapl.net / prachi.c@sga
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