Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q3 FY19 Earnings Presentation
39 slides from Himadri Speciality Chemical's earnings presentation, Jan 29, 2019
Slide 1: Exchange filing cover letter
Himadri Ref. No: HSCL / Stock-Ex/2018-19/117 Date: 29 January 2019 E-mail: bisharmaQhimadri.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 Com
Slide 2: Investor Presentation January 2019
INVESTOR PRESENTATION January - 2019 1
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: Business Updates & Performance Highlights for Q3 and 9MFY19
Business Updates & Performance Highlights for Q3 and 9MFY19 3
Slide 5: Performance for 9MFY19
Performance for 9MFY19 Rs. in Crs Revenue from Operations* EBITDA# PAT 91% 92% 97% Revenues achieved EBITDA achieved PAT achieved 1,971 243 235 1,793 450 415 551 71 +26.2% +37.2% 126 +28.3% 1,420 171 324 FY18 9MFY19 FY18 9MFY19 FY18 9MFY19 *Revenue from operations is net of GST/Excise duty Q4 9M #EB
Slide 6: Q3 FY19 – Another Quarter of Strong Performance
Q3 FY19 – Another Quarter of Strong Performance Revenue EBITDA* Revenue EBITDA* +17% + 10% Rs. 587 Crs Rs. 133 Crs Y-o-Y Y-o-Y EBITDA/MT* PAT EBITDA/MT* PAT +23% + 20% Rs. 15,885 Rs. 84 Crs Y-o-Y Y-o-Y * Excludes FX Fluctuation Loss / Gains 5
Slide 7: Strong and Sustainable Margin Growth
Strong and Sustainable Margin Growth Volume MT EBITDA (Rs.) Per MT Increasing focus on 99,200 Value-addition… 1.5x 97,505 94,769 94,220 93,186 15,885 91,574 15,487 83,571 14,157 12,930 12,971 10,896 10,592 …Resulting in Uptrend in EBITDA/tonne Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q1FY18
Slide 8: Ready for Future Growth
Ready for Future Growth Coal Tar Distillation Capacity Specialty Carbon Black Advance Carbon Material Debottlenecking 5,00,000 1,00,000 » Set-up of Specialty Carbon Black at » Advance Carbon Materials project 4,00,000 West Bengal with an annual of 20,000 MTPA is progressing well capacity of 60,000 M
Slide 9: Debt Repayment of ~Rs. 96 Crores in 9 months
Debt Repayment of ~ Rs. 96 Crores in 9 months Rs. in Crs Net Debt Net Debt / EBITDA* 5.26x -96 629 2.90x 533 1.40x 0.98x 295 246 Mar-16 Mar-17 Mar-18 Dec-18 Net Debt / Equity 0.91x 333 0.67x 287 0.43x 0.32x Mar-18 Dec-18 Mar-16 Mar-17 Mar-18 Dec-18 Long Term Debt Working Capital Loans *Net Debt as o
Slide 10: Credit Rating Upgrade by CARE
Credit Rating Upgrade by CARE Amount Facilities Rating Remarks (In Crores) Long Term Revised from 528 CARE AA-; Stable Bank Facilities CARE A+; Stable Credit Rating Revision Short Term CARE AA-; Stable / Revised from 445 Bank Facilities CARE A1+ CARE A+; Stable/ A1+ » In December 2018, CARE has revi
Slide 11: Standalone Profit & Loss
Standalone Profit & Loss Particulars (Rs. In Crs) Q3 FY19 Q3 FY18 Y-o-Y (%) Q2 FY19 Q-o-Q (%) 9MFY19 9MFY18 Y-o-Y (%) Net Revenue From Operations 587 500 17% 602 -3% 1,793 1,420 26% Cost of Materials Consumed 389 327 404 1,200 963 Gross Profit 198 173 14% 198 0% 593 458 30% Employee Benefits Expense
Slide 12: Business Overview
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Slide 13: Value Creation Journey by way of Vertical Integration
Value Creation Journey by way of Vertical Integration 12
Slide 14: Product Development was a Clear Focus
Product Development was a Clear Focus 2010 2019 Coal tar pitch – Binder grade Aluminium Grade Pitch Heavy Creosote Oils Coal tar pitch – Impregnating Graphite Grade Binder Pitch Anthracene Oil/Carbon Carbon Black Graphite Grade Zero QI Black Oil/ CT Oil Advanced Carbon Material (Quinolene Insoluble)
Slide 15: To make an Impact on the End Markets
To make an Impact on the End Markets Graphite Lithium – Ion Aluminium Missiles Electrodes Batteries Anti Corrosive Paints, Plastic & Rubber Industries Power Material Fibre Construction Wood Preservative Specialized Infrastructure Chemical Oils Products 14
Slide 16: If You Can Be One Thing, Be Dependable
If You Can Be One Thing, Be Dependable CTP Clientele CB Clientele Others Clientele 15
Slide 17: Fit for Future: Products & its Potential
Fit for Future: Products & its Potential Accelerating Core Business & Finding next Core Business 16
Slide 18: Product Leadership – Accelerating Core Business
Product Leadership – Accelerating Core Business ▪ Coal Tar Pitch ▪ Carbon Black ▪ Naphthalene ▪ Sulphonated Naphthalene Formaldehyde (SNF) 17
Slide 19: Coal Tar Pitch
Coal Tar Pitch Caters to around Two-Third of demand for Indian Graphite and Aluminium Industries Supplier of upto 95% of Coal Tar Pitch requirements of certain Smelters One amongst the Few Global Manufacturers to Produce Zero QI (Quinolene Insoluble) – coal tar impregnated pitch and Advanced Carbon
Slide 20: Graphite Grade Coal Tar Pitch
Critical Input in Downstream Industries Coal Tar Pitch Graphite Grade In Graphite Electrode Binder Pitch Manufacturing Graphite Grade Zero QI Coal tar Anode Impregnating Pitch Special Pitches Material In graphite electrode, nipple Used by DRDO in long range warhead missiles. In carbon composites, re
Slide 21: Inelastic & Growing Demand
Inelastic & Growing Demand » Inelastic Demand : Coal Tar Pitch is used in pre- baked anode in aluminium smelter to produce aluminium. Aluminium Smelting is a Continuous Process - Smelter cannot be stopped and restarted easily » Complex Chemical : Coal Tar Pitch is a Complex chemical with 22 Chemical
Slide 22: Carbon Black
Carbon Black Forward Integration to convert Coal Tar Oil into Carbon Black 3rd Largest Carbon Black Producer in India with Anything that is 120,000 MTPA manufactured Black has With Superior Inhouse Raw Carbon Black Material & R&D Capabilities launching Speciality Carbon Black range with niche applic
Slide 23: Benefits of Forward Integration
Benefits of Forward Integration Raw Material Leverage R&D Access to superior, consistent & Leveraged R&D strength to develop a customized Raw Material feed from range of speciality carbon black inhouse distillation units Raw products Material Leverage Leverage R&D R&D Power Generation Power Tail gas
Slide 24: Large Market Potential
Large Market Potential Indian Tyre - Commissioned Projects Speciality Carbon Black Rs. Crore in MTPA 1,016,000 21,000 17,000 53,600 India demand Global demand FY14 - 17 FY18 - 22E 2016 2016 Indian Tyre Market is ~ Rs. 500 Bn in FY16 Speciality black market in India is currently small at less than 5%
Slide 25: Naphthalene
Naphthalene Value-additions through Capacity Refined Doubled for Naphthalene and Refined Naphthalene SNF Also formulate Special Grade Naphthalene 24
Slide 26: Naphthalene Value Proposition
Naphthalene Value Proposition Special Grade Naphthalene Special Grade Naphthalene is formulated to cater customer's niche requirements in dyestuff and dyes intermediates application Naphthalene Moth Ball Moth Balls is made by using superior grade chemical composition and leading-edge techniques in c
Slide 27: Sulphonated Naphthalene Formaldehyde (SNF)
Sulphonated Naphthalene Formaldehyde (SNF) SNF – Next Generation Product for the Construction Chemical Industry (Admixture), Agro chemicals, Latex, Gypsum Largest Indian manufacturer of SNF with an installed capacity of 68,000 MTPA Highest Purity SNF manufactured from In-house produced Naphthalene P
Slide 28: High Performance Construction Chemicals
High Performance Construction Chemicals » Sulphonated Naphthalene Formaldehyde (SNF) is a speciality chemical condensate that helps improve concrete mixes by dispersing cement particles for extended workability and reinforcing compressive flexural strength ▪ Naphthalene, one of the by product of Coa
Slide 29: Future Products – Finding Next Core Business
Future Products – Finding Next Core Business ▪ Advance Carbon Material 28
Slide 30: Advance Carbon Material
Advance Carbon Material Forward Integration from Coal Tar to Advance Carbon Material Anode Material used in Lithium-ion Batteries Only Producer of Advance Carbon Material in India Best in class Proprietary Technology With Cost Leadership 29
Slide 31: Application in Sunrise Sector
Application in Sunrise Sector Lithium-ion Battery Mobile Tablets Electric Vehicle Motor Train Others Digital Power Tool Laptop Energy Storage Cameras 30
Slide 32: At early stage of Growth
At early stage of Growth Global Lithium-ion Battery Demand Projection » First Indian Company to develop anode material of both Battery Cell demand (GWh/a) Synthetic and Natural varieties for lithium-ion batteries 1550 ▪ Best-in-class Proprietary technology to +31% process Coal Tar to Advance Carbon
Slide 33: Looking Forward with Confidence
Looking Forward with Confidence 32
Slide 34: Strongly positioned to capture Growing Markets
Strongly positioned to capture Growing Markets Global Management Team Right Capacity Strategic Location High Value Product Product Cutting Edge Pipeline Leadership Technologies Strong Growing End Clientele Markets Strong R&D 33
Slide 35: Strategic Growth Priorities
Strategic Growth Priorities Carbon Black SNF Increase application of Increase in demand in Focus on Speciality Carbon lithium-ion batteries in the Widen the Product downstream industries with High Value-additions & Sunrise Sectors like Portfolio by Aluminium & Graphite Performance Electric Vehicles,
Slide 36: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : CIN: L27106WB1987PLC042756 CIN: U74140MH2010PTC204285 Mr. Somesh Satnalika Ms. Payal Dave / Ms. Neha Shroff VP Strategy & Business Development +91 9819916314/ +91 7738073466 Email: ssatnalika@himadri.com Email: payal.Da
Slide 37: Solid Performance Continues – 9MFY19
Solid Performance Continues – 9MFY19 Highest Ever Revenue, EBITDA/MT & PAT ✓ Revenues at Rs. 1,793 Crores ✓ EBITDA per MT at Rs. 15,127 ✓ PAT at Rs. 235 Crores ✓ Sales Volume stood at 2,74,346 MT Investor Release: 29th January 2019, Kolkata Himadri Speciality Chemical Ltd. is a leading Carbon corpor
Slide 38: CEO commentary on results and performance
Commenting on the results and performance, Mr. Anurag Choudhary, CEO of Himadri Speciality Chemical Ltd said: We are pleased to report a robust performance for nine month period ended 31st December 2018. We have reported highest ever Revenues, EBITDA, EBITDA/Ton and PAT for the said period. This sol
Slide 39: Safe Harbor Statement and contact
Safe Harbor Statement Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for p
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