Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q1 FY2025 Earnings Presentation
43 slides from Himadri Speciality Chemical's earnings presentation, Jul 16, 2024
Slide 1: Stock exchange cover letter
Ref. No: HSCL/Stock-Ex/2024-25/41 Date: 16/07/2024 E-mail: monika@himadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kurla Complex, Dalal Street,
Slide 2: Investor Presentation | July 2024
Investor Presentation | July 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 5: Solid start to the year
Solid start to the year …………. Add Text Here SALES VOLUMES RECORD EBITDA IN RECORD PAT IN DEBT FREE Sustainable ROCE IN Q1FY25 Q1FY25 Q1FY25 COMPANY Net positive cash Sales Volumes of EBITDA increased by PAT increased by 41% balance of Rs 56 28% (excl. investment 1,39,175 MT in 43% to Rs. 188 Crores
Slide 6: Positive growth continues…
Positive growth continues… Sales Volume (MT) Revenue (Rs. in Crs) Sales Volumes Volume grew 38% yoy. Strong growth fueled by addition of new speciality product line +37.8% +26.2% 1,40,317 1,39,175 1,177 1,200 1,24,024 1,053 1,005 1,10,211 951 1,01,030 Consistent growth in Revenue Revenue grew 26% yo
Slide 7: …with solid jump in Profitability
…with solid jump in Profitability EBITDA (Rs. in Crs) PAT (Rs. in Crs) EBITDA Change in Product Mix and Operating Efficiency +43.4% +40.8% 188 123 177 115 169 108 156 101 131 88 PAT Capital Disciplined Growth with the aim to improve shareholder returns Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY2
Slide 8: Clean technology & innovation
Opportunities in all the phases of journey towards Sustainability 1st Commercial plant Battery Recycling for LFP Cathode Active Clean technology & New Growth Wave Material in India innovation Off-highway Tyres Specialty More than Double Agrochemical Specialty Carbon Black Solutions Capacity LFP Cath
Slide 9: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 10: Outcome of strengthening Balance Sheet
Outcome of strengthening Balance Sheet Rs. 31.25 Crs Rs. 1784.61 Crs Rs. 300 Crs Term Loan Fund based + Non fund based Commercial Paper ICRA AA- (Stable) ICRA AA- (Stable)/ ICRA ICRA A1+ A1+ (ICRA double A minus; (ICRA A one plus; (ICRA A one plus) Outlook : Stable) Outlook : Stable) Upgraded from U
Slide 11: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 12: EcoVadis Rating : Silver Medal
EcoVadis Rating : Silver Medal Himadri Speciality Chemical Ltd has recently been awarded with EcoVadis Silver Medal. This recognition ranks Himadri in the top 23% of the highest-rated companies in the world amongst more than 100,000+ rated companies. EcoVadis is one of the world’s largest and most t
Slide 13: Direct Signatory of UNGC (United Nation Global Compact)
Direct Signatory of UNGC (United Nation Global Compact) We've joined the United Nations Global Compact (UNGC) as a direct signatory. This marks a pivotal moment for us, as it demonstrates our alignment with global sustainability principles and our commitment to upholding ethical business practices o
Slide 14: Where Sustainability Meets Innovation
Where Sustainability Meets Innovation POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 13
Slide 15: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a More than 90% of the green, long-term EV and power requirement being renewable energy solution met by inhouse generated by providing critical raw clean and green power material Energy Conservation through Waste Heat Recover
Slide 16: Net Zero Roadmap
Net Zero Roadmap Research Adapt • Explore innovative methods for capturing • Implement new energy sources and and transforming carbon emissions. technology advancements. • Utilize upcoming technologies to capture • Integrate renewable energy solutions for and convert carbon dioxide into value- reduc
Slide 17: Net Zero Roadmap (Scope 1, 2 & 3)
Net Zero Roadmap (Scope 1, 2 & 3) Scope 1,2 & 3 targets include science-based projects HIMADRI’S ROAD MAP aligning MIT-SLOAN En-roads climate simulator OUR NET ZERO To Scope 3 – Baseline Year 2023 AMBITION Scope 1 & 2 – Baseline Year 2021-22 Assumption: India will be regulated Reduce Packaging Emiss
Slide 18: Sustainability Objectives 2024 – 25
Sustainability Objectives 2024 – 25 Objectives Measures Target FY 23-24 Progress FY 22-23 Main Domain UNGC -SDGs FY 24-25 Vision Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1(Vs 2021) <1 1.18 2.27 People By 2025, Reduce Energy Intensity per metric tonne of product sold En
Slide 19: Robust Financial Performance + Strong outlook
Robust Financial Performance + Strong outlook ICRA : Rating outlook revised ESG-focused innovations Capex – Next Phase of Growth
Slide 20: Capex – Speciality Carbon Black Expansion
Capex – Speciality Carbon Black Expansion Brownfield expansion of a new speciality carbon black line of 70,000 MTPA CAPEX TO MORE Increasing the total speciality carbon black capacity to 130,000 MTPA making it world’s largest speciality carbon black capacity at single site THAN DOUBLE SPECIALITY CAR
Slide 21: Applications
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades ONYX JETEX ELECTRA KLAREX Speciality Carbon Blacks are Speciality blacks are designed to KLAREX, “clean” speciality blacks Speciality blacks offer low sulfur, premium grades that offer deep provide reliable color a
Slide 22: Applications
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades COLORX BARONX VIRTEX COLORX is a powder black that BARNOX is latest innovation in Virtex black carbon series are for function exceptionally well as a speciality blacks and is a high performance specialiy tyres Appl
Slide 23: Sicona Acquisition- Initiative in line with long term strategy
Sicona Acquisition- Initiative in line with long term strategy Why Sicona Investment • Sicona’s current generation silicon-composite anode technology delivers 50% to 100% higher capacity than conventional graphite anodes Sicona is an innovative Australian startup • Its anode materials can deliver mo
Slide 24: Invati Creations - Acquisition Highlights
Invati Creations - Acquisition Highlights About Invati Creations Acquisition cost • Invati, founded by alumni from IIM Kolkata and IIT Kharagpur, has a strong focus on engineering Lithium-ion electrode materials for efficient energy 40% stake for a storage with higher energy density and longer batte
Slide 25: Himadri LFP Cathode Vision
Himadri LFP Cathode Vision Bringing breakthrough Innovation to Sustainable Sourcing the Indian and Global LiB Industry To produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion o Long term partnership with lithium Battery, in phases in 5-6 years o
Slide 26: Where we play a role
Where we play a role HIMADRI’S PRESENCE Lithium Chemicals Cathode Active Material Upstream Downstream Refining of Lithium Best in Class & Exploration & Mining Concentrate to Lithium Sustainable Cathode Cell Manufacturing Carbonate and Lithium Active Material Hydroxide Production 25
Slide 27: Cathode Material Dynamics : Himadri’s Strategic Advancements
Cathode Material Dynamics : Himadri’s Strategic Advancements Pioneering Innovation and Sustainable Growth in Cathode Material Landscape Large Global and Domestic Opportunity Market Projection : Cathode Material demand to reach 9.4 million tonnes annually by 2030 for global LiB cell production Domest
Slide 28: Birla Tyres Ltd - Acquisition Highlights
Birla Tyres Ltd - Acquisition Highlights ▪ Himadri Speciality Chemical Ltd (HSCL, Strategic Partner) along with Resolution Applicant - Dalmia Bharat Refractories Limited (DBRL) participated in the corporate insolvency resolution process of Birla Tyres Limited. ▪ LOI from the Resolution Professional
Slide 29: Value Acquisition
Value Acquisition The total acquisition cost is Rs. 306 Crores. Additional capex is required to make the plant fully operational. For Himadri Speciality Chemical Limited The replacement cost Time consumed to Forward integration Eligible for investment Sufficient land available for creating such a cr
Slide 30: Birla Tyres Limited – Turnaround Opportunity
Birla Tyres Limited – Turnaround Opportunity Having successfully forward integrated from Oil to Carbon Black, then to Speciality Carbon Black, Himadri stands at the threshold of an exciting transformation moving forward towards end customer, venturing into the world of Tyres Existing capability Stra
Slide 31: Journey of Transformation
JOURNEY OF TRANSFORMATION
Slide 32: HSCL : Transformation Unfolds
HSCL : Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon Black » Graphite Grade Binder Pitch 2010 » Grap
Slide 33: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 32
Slide 34: Marquee Clients across Industries
Marquee Clients across Industries The brand names/logos mentioned are the property of their respective owners and are used here for identification purpose only 33
Slide 35: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 36: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobil
Slide 37: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO2 emission The Global Availability of
Slide 38: Primary Cathode Active Material Used now – NMC & LFP
Primary Cathode Active Material Used now – NMC & LFP Safety Working of LFP battery fast charging Spec. capabilities energy LFP batteries use lithium iron phosphate as the cathode material alongside a graphite electrode with a metallic backing as the anode. cost Spec. power lifespan Unlike many catho
Slide 39: Key Takeaways
Key Takeaways Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Strong Brand Location Team Transformation Unfolds Addressing the needs of
Slide 40: Financial Performance
FINANCIAL PERFORMANCE
Slide 41: Standalone Profit & Loss Statement – Q1 FY25
Standalone Profit & Loss Statement – Q1 FY25 Particulars (In Rs. Crs) Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q FY24 Net Revenue From Operations 1,199.77 950.91 26.17% 1,176.95 1.94% 4,184.89 Cost of Materials Consumed 851.32 700.42 852.68 3,035.15 Gross Profit 348.45 250.49 39.11% 324.27 7.46% 1149.74 Emplo
Slide 42: Consolidated Profit & Loss Statement – Q1 FY25
Consolidated Profit & Loss Statement – Q1 FY25 Particulars (In Rs. Crs) Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q FY24 Net Revenue From Operations 1,200.41 950.91 26.24% 1,176.95 1.99% 4,184.89 Cost of Materials Consumed 849.77 700.86 850.37 3,030.27 Gross Profit 350.64 250.05 40.23% 326.58 7.37% 1154.62 Emp
Slide 43: Company and Investor Relations contacts
Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika EVP - CTD & Strategy Email: ssatnalika@himadri.com www.himadri.com Investor Relations Advisors : Ms. Payal Dave : Mr. Bhavya Shah: +91 9819916314 +91 8082748577 payal.dave@linkintime.co.in bhavya.shah@linkintime.co.in www.orientcap.com 42
Himadri Speciality Chemical — Q1 FY2025 Earnings Presentation on 6ix