Slide 1: GHCL Limited Business Update - Q3FY18
Chemicals --- · ""' 1'";,\ I I •i.s l'""1o ,. .•+a ·• Ill!.., DUii · t. I.----·- & Soda Ash f~ } (~\ \ ~i .,. \~ Sodium Bi Carbonate \.,;.l ..... aiClltl.Uwt - ·- - -~ - -===- I \ Textiles I GHCL Limited Yarns Creativity at Core, Values at the Front \ Textiles Business Update- Q3FY18 Home Textile Fe
Slide 2: Safe harbor
II II ~ Safe harbor This presentation and the accompanying slides (the " Presentation"), which have been prepared by GHCL Limited (the "Company"), have been prepared solely fo r information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 3: Financial Snapshot
II II Financial Snapshot ~ Revenue* EBITDA PAT Rs. 738' Cr Rs. 158· Cr Rs. 71:Cr EBITDA,· Margin 21.53 PAT Margin· 103 11 . ·N't.'!"''-. ,. I Wr{ferrl ': -...-...~~- - + 33 Q-o-Q + 143 Q-o-Q + 33 3 Q-o-Q Rs •.2209 Cr Rs. 4·64·Cr Rs: 282 Cr EBJTDA Margin 213 PAT: Margiri 133 + 123 Y-o-Y -143Y-o-Y +33
Slide 4: Key financial indicators for 9M FY18
II II ~ Key financial indicators for 9M FYl 8 Total Debt Decreased to Rs. 1314 crore as compared to Rs. 1431 crore in Mar 17 Net Debt/ Equity Improved to 0.85X as compared to 1.04X in Mar 17 Net Debt/ EBITDA 2.0X as compared to 1. 93X in Mar 17 ROCE* 183 ROE* 263 29.15 (9M FY 18) • RO C E c a lc ula
Slide 5: Leading to efficient cash flow management
-- .. leading to efficient cash flow management ~ Generated Cash Profits (net of Tax) of Rs. 323 Crores '-~~~~~-~~~~~~~~~~~-~~~~~~~~~~~~~~~~~-~~~~~~~~~~~~~~~~~~~~--~~~~--~-~~~~~~~-' SHAREHOLDERS Buyback& ~~ Dividend OPERATIONS Rs. 105 crore Decrease in DEBT Working Capital of Rs. 54 crore Rs. 117 cr
Slide 6: Segment Results - Q3 FY18 Inorganic Segment
II II Segment Results - Q3 FY 18 ~ Inorganic Segment ' Particulars Q3FY18 Q3FY17 Y-o-Y Q2FY18 Q-o-Q Production (Lac MT) 2.43 1.91 28% 2.26 8% Sales (Lac MT) 2.33 1.78 31% 2.14 9% Revenue (Rs. Crores)* 497 361 37% 444 12% EBITDA (Rs. Crores) 157 128 23% 136 16% EBITDA % 32% 35% -3% 31% 1% ~ Achieved
Slide 7: Segment Results - Q3 FY18 Textiles Segment
II II Segment Results - Q3 FY 18 ~ Textiles Segment Particulars , Q3FY18 Q3FY17 Y-o-Y Q2FY18 Q-o-Q Revenue (Rs. Crores)* 241 257 -6% 274 -12% EBITDA (Rs. Crores) 1 35 -96% 3 -67% EBITDA % 1% 14% -13% 1% ~ Decline in revenue is primarily due to reorganisation of customer mix in home textiles. ~ EBITD
Slide 8: Profit & loss statement
II II Profit & loss statement ~ Rs . In Crores -1 -.--""1-,,,,,~ . I I lParticulars Q3 FY18 ! Q3 FY17 3 Change l Q2 FY18 l 9M FY18 l 9M FY17 j --·----------· -r- --·-~-~~ ' ' ~ r--------~ --1 ' ' 738 -5.73 ; 114 ~-~~ j Interest 28 i 32 ' - 1 1.53 ' - - - --- ----:-' - -- --- - --- ---- ' ------~----
Slide 9: Recent Recognitions
II II Recent Recognitions ~ GREAT PLACE TO WORK"' •• Wont. G oloen P.eacocl< Aware for: ~.- •• ···" ·1--~'~' ~"""'""·;,•·""~T\T;;•·~~- ~~,Q r,P:Qrg_!~. ~9~~!.9Ml~~~2D.~lbJ!iti .~9i1k~: Ra n ked 29t in t he ckJ~ Credit ' 1 lndm a's Ratings Best CEOsn ra nking by Bus iness M r. Rs .lalan, Today MD GHC
Slide 10: Agenda
Agenda 1. Business Overview 2. Inorganic Chemicals Segment 3. Textiles Segment Spices combo pack 4. Business Philosophy For the sp icy bites oflife 5. Financial Annexures ~ vvi~l 10 ~ ::------
Slide 11: Business Overview
4 GHCL Business Overview
Slide 12: History, Milestones & Way forward
II II History, Milestones & Way forward ~~ ................................................................ ~ • Soda Ash production capacity will be ! increased to 11 ,00,000 tons I year. • Soda Ash capacity increased • Spindles capacity increased to to 850,000 tons/year 17 5,488, Installed 3,320 ro
Slide 13: Business overview
II II Business overview ~ " Margin leadership in the industry ~Presence across the value chain » Among top 3 soda a sh players with 9.75 Spinning Lakh MT capacity 1,76,488 Spindles • Catering 1/4 1h of Indian soda ash demand 3,320 Rotors Weaving/Knitting • Margin leader in the industry; with highest
Slide 14: Inorganic Chemicals Segment
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Slide 15: Leading manufacturer of soda ash
Ill Ill Leading manufacturer of soda ash ~ Captive sources of raw materials Clients - major FMCG I Glass cos. P&G ~ » Captive control on fuel (largest cost component) • Only company having its own lignite mines ~ U.....<.Qww l...lwUtul » Innovatively replaced imported met coke with in-house m11mn11U
Slide 16: Soda Ash Dynamics (Domestic Industry)
II II Soda Ash Dynamics (Domestic Industry) ~ Domestic market share.* (up by 13) Domestic Demand Concentration . 1 I -- ,... Import ........ ' \ \ West 153 t 233 : \ ',, __ ...,,, I GHCL 253 -.. ..... ______ , , * Based on External demand {Source : IMA) Domestic Demand & growth trend. so 12% 40 10%
Slide 17: Inorganic Chemicals - Other products
II II Inorganic Chemicals - Other products ~ --- - --- - ·--- » Doubled capa c ity from 30,000 to 60,000 MT in Dec ember 2017, Our market share will a c cordingly go up from current market share of 133 » Generally named as baking soda , bread soda , c ooking soda and bi c arbonate of soda » Used in
Slide 18: Robust financial performance - Inorganic Chemicals
II II Robust financial performance - Inorganic Chemicals ~ Rs Crs Rs Crs 157 497 03 FY1 7 Q4 FY 17 Ql FY18 Q2 FYl 8 Q3 FYl 8 Q3FY1 7 Q 4 FY1 7 Q1FY18 Q2FY18 Q3FY18 MT'OOO 35% 24 3 Q3 FY1 7 Q 4 FY1 7 Ql FY 18 Q2 FYl 8 03 FYl 8 03 FY1 7 0 4 FY 17 Ql FY18 Q 2 FY18 Q3 FYl 8 Note: - Revenue Figures are r
Slide 19: Capacity additions to spur growth
II II Capacity additions to spur growth ~ * » Next phase of Capex expansion ( Phase-I I ) to be 11.0 completed by March 2019 • Brownfield expansion of 1.25 Lakh MT 9.8 9.5 • Estimated capex outlay Rs. 300 Crores (24K/MT) 8.5 6.0 » Likely to come up by FY 2022. • Moving ahead as per sched ule . 2006
Slide 20: Global outlook on the soda ash industry
II II Global outlook on the soda ash industry O INDIA CAPACITY: 3.5 MMT PRODUCTION : 3.2 MMT CHINA CAPACITY : 30.0 MMT PRODUCTION : 26.0 MMT GLOBAL ' » Global markets remained tight majorly due to lower availability of Chinese product. 1 » EU market is showing positive trends. » Turkey's additional
Slide 21: Textiles Segment
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Slide 22: Integrated home textile player
II II Integrated home textile player ~ » Best in class spinning integration with close to double the requirement of home textile giving an opportunity to benefit from expansion of sheeting capacity • Spinning unit is located near Madurai in Tamil Nadu • Manufactures multiple varieties of yarn rangin
Slide 23: Diversified product portfolio with global clientele
II II Diversified product portfolio with global clientele ~ 1- - .. , ' ,.... ,. ' "~ » Perfect fit sheets fit perfectly to 1 » Sheeting th e i the size of the bed » Filled Articles » Pillows P0RF0CTFIT • Sheets » Reduces Bed making Process • Quilted Flat • Pillows Sheets I » Softer than cotton • Du
Slide 24: Quarterly Performance - Textile Segment
II II Quarterly Performance - Textile Segment EBlliD.A: ... .,~.,. -~.,-_- 37 Rs Crs * Without wind impact of 7 Cr. ~ l Q3 FY l 7 Q4 FY l 7 Q l FY 18 Q2 FY 18 Q3 FY 18 Q3 FY l 7 Q4 FY l 7 Q l FY 18 Q2 FY 18 Q3 FY 18 143 873 903 893 I I Q3 FY 17 -Q~ ~y~ ?l FY~ Q2 FY1_8 _ Q3 FY18 _j Q3 FY l 7 Q4 FY l
Slide 25: Business Philosophy
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Slide 26: Professional management
II II Professional management ~ RS Jalan Raman Chopra Managing Director CFO & Executive Director • Unique leadership style with endeared • Spearheading GHCL's Finance and IT managerial abilities drives all businesses functions alike • Qualified Chartered Accountant with • Qualified Chartered Account
Slide 27: Business philosophy going forward
II II Business philosophy going forward ... ~ Robust and Profitable Growth To grow profits at CAGR 203 Focus on Value Systems To create a value systems that defines our Culture Sustainable Inclusive Growth Business Philosophy of "Sustainable Inclusive Growth" involving all the stakeholders ~ ·\ ~ij~
Slide 28: Sustainable Inclusive Growth
II II ~ Sustainable Inclusive Growth Education Village Sanitation • More than 4500 students being • Promoting Tata Water Mission educated in 27 vill ages from pre- with " l Day l Vil lage sc hool to gradua tion Campaign". • Under Vidya Jyot Project, • Construc ted 5316 toilet units promoting educa t
Slide 29: Financial Annexures
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Slide 30: Balance Sheet
II II Balance Sheet Rs. In Crores ~ Particulars Sept-17 -~· ~arch-1-7 . ~I ~ ---------.-~-----~~~- -=--~- ~~·-"----~~~--- Net fixed & other non current assets (A) 2508 2472 - - - - - ---- - - - - - - --t-- - --- - --- - - - --- -- -- ---- - -- -- - - - - - - - - - - - - -- ---- - - - -- - - ---1 ' '
Slide 31: Robust growth with improving profitability
II II Robust growth with improving profitability ~~ Rs ~ 2550 2716 - 2980 I UvU - 724 23.43 24.33 I 2375 I FY14 FY15 FYl 6 FY17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 I - --- - ,· ,,,~,:(''""'' {28%' CAGR) (.~,?<'~ .CAGR) ' , 474 13.03 387 FY l 4 FY l 5 FY l 6 FY l 7 FY l 4 FY l 5 FY l 6 FY
Slide 32: And improving return ratios
II II And improving return ratios ~~ RsC~ 1.68 223 213 293 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 2.16 2.24 2.93 4.8 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Standalone Financials • ROCE calculated as - Trailing 12 Months (TTM) EBIT/ (T
Slide 33: Let's Connect
Let's Connect d STELLAR 1' l~V[STQR REl.ATIQNS C IN : L24100GJ1983PLC006513 CIN: U7 4900MH2014PTC2592l 2 Mr. Raman Chopra Mr. Vikash Verma rchopra @ghcl .co.in vikash.verma @stellar-ir.com Mr. Sunil Gupta sgupta @ghcl.co.in Mr. Abhishek Bhatt abhishek@stellar-ir.com Mr. Abhishek Chaturvedi "":\ ~~ a