Slide 1: GHCL Limited Investor Update – October 2018
GHCL LIMITED Investor Update – October 2018
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 3: Agenda
Agenda Quarterly Business Update Update 4 13 Company Overview 16 Inorganic Textiles Chemicals Segment Segment 25 32 3
Slide 4: Quarter Update – Q2FY19
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Slide 5: Management Address
Management Address ➢ Rebounded with 47% growth in PAT during the current quarter from - R. S. Jalan, MD, GHCL Rs. 53 crore in Q2 FY18 to Rs. 78 crore during the quarter. o Inorganic – Benefited from Volume growth in Soda Ash. Input Cost increase successfully offset through price increase. o Textile
Slide 6: Key Financial Highlights – Q2 & H1FY19
Key Financial Highlights – Q2 & H1FY19 In Rs. crore Particulars Q2FY19 Q2FY18 YoY H1FY19 H1FY18 YoY Revenue 839 717 17% 1596 1471 8% EBITDA 179 139 29% 332 306 9% EBITDA % 21.4% 19.4% 207 BPS 20.8% 20.8% -- PBT 115 79 46% 206 190 8% Less: Current Tax 37 26 44% 66 61 8% PAT 78 53 47% 140 129 9% Add:
Slide 7: Inorganic Segment Highlights – Q2 & H1 FY19
Inorganic Segment Highlights – Q2 & H1 FY19 Particulars Q2FY19 Q2FY18 YoY H1FY19 H1FY18 YoY Production (Lac MT) 2.42 2.26 7% 4.61 4.50 2.4% Sales (Lac MT) 2.29 2.14 7% 4.45 4.30 3.5% Revenue (Rs. Crores)* 534 444 20% 1025 885 16% EBITDA (Rs. Crores) 149 136 10% 283 271 5% EBITDA % 27.9% 30.6% -270 B
Slide 8: Financial Performance – Inorganic Chemicals (Quarterly)
Financial Performance – Inorganic Chemicals (Quarterly) Revenue* (Rs cr) EBITDA (Rs cr) 497 513 491 534 173 444 157 149 136 135 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 EBITDA Margin* Production in MT ('000) 31.0% 32.0% 34.0% 243 243 242 27.4% 27.5% 226 220 Q2FY18 Q3FY18
Slide 9: Textiles Segment Highlights – Q2 FY19
Textiles Segment Highlights – Q2 FY19 Particulars Q2FY19 Q2FY18 YoY H1FY19 H1FY18 QoQ Revenue (Rs. Crores)* 305 274 11% 570 585 -3% EBITDA (Rs. Crores) 31 3 862% 49 35 39% EBITDA % 10.1% 1.2% 898BPS 8.5% 6.0% 250BPS ➢ Revenue increased by 11% as compared to Q2FY18, which is mainly due to spinning bu
Slide 10: Quarterly Performance - Textile Segment
Quarterly Performance - Textile Segment Revenue (Rs cr) EBITDA (Rs cr) 305 31 274 241 265 219 18 12 3 1 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 EBITDA Margin Capacity Utilization 77% 10.0% 58% 59% 57% 6.0% 7.0% 46% 1.0% 1.0% Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3F
Slide 11: Profit & loss Statement
Profit & loss Statement Rs. In Crores Particulars Q2FY19 Q2FY18 YoY H1FY19 H1FY18 YoY Sales* 839 717 17% 1596 1471 8% Operating Expenses 659 579 14% 1264 1165 8% EBITDA 179 139 29% 332 306 9% EBITDA Margin 21.4% 19.5% 207 BPS 20.8% 20.8% -- Depreciation 29 25 19% 57 50 14% EBIT 150 114 32% 275 256 7
Slide 12: Balance Sheet
Balance Sheet Particulars 30th Sep 2018 31st Mar 2018 Non Current Assets (A) 2,667 2,619 Current Assets (a) 1,115 1,006 Current Liabilities (b) 523 488 Working Capital (B) = (a) – (b) 592 518 Capital Employed (A)+(B) 3,258 3,137 Net Worth (C) 1,719 1,622 Deferred Tax & Others (D) 210 201 Long Term D
Slide 13: Growth with Debt Reduction – Efficient Capital Allocation
Growth with Debt Reduction – Efficient Capital Allocation OPERATIONS DEBT SHAREHOLDERS CAPEX Generated Cash Profits ` (net of Tax) of ` Rs.208 crore Increase in Paid Increase in Dividend Rs. 105crore Working Capital* of Debt of Rs.59 crore Rs. 74crore Rs. 16crore ESOP Equity Issued Rs. 5 Crore Defer
Slide 14: Business Update - Q2FY19
Sustainable, Traceable, Bedding Business Update - Q2FY19 14
Slide 15: Business Update
Business Update ➢ GHCL Rating upgraded by CARE :- o Long Term Bank Facilities – Upgraded to CARE A+ Stable (Single A Plus with Outlook Stable) o Short Term Bank Facilities – Upgraded to CARE A1+ (A One Plus) o Consecutively rating upgraded in last 4 years. ➢ Launched "CIRKULARITY" range of bedding p
Slide 16: Cirkularity bedding product range
THE SPIN WIN PocLeectiane ‘51% COMBER NOIL, 49% ORGANIC COTTON NATURLIG Using Comber Nil ino of Cation aay See reduces the consumption of water by bse el ‘orovnd $200 gallons per sel.” 100% ORGANIC COTTON NATURAL, SCOURED DOBBY Global Recycled Standard certified Natural scoured dobby. t No chemical
Slide 17: Sustainable Tencel and recycled polyester collection
iy ce . ~——P eserting Si | Colle Rie Cr ies ted of 6s TenceLyocell and 40s Recyled Polyester. “60% Tence!" \ueeel | j SS iyocel fiers are derived from sustainable wood sourcesThey : Tol eviornentaly responsible closed loop prodtiction process, Seer ood pulp into cellulosic fibers The act thar these
Slide 18: Business Environment and Key Advantages
Business Environment and Key Advantages Industry GHCL Scenario Strength ➢ Firmness in prices due to tight supply situation globally. Soda Ash ➢ Except Ghari, no major expansion announced by market players. ➢ Strong volume gains owing to brownfield expansions for GHCL in coming years. ➢ Expertise in
Slide 19: Company Overview
Company Overview 19
Slide 20: GHCL Overview
GHCL Overview 3 decades of Indian Slated to be single largest soda ash Manufacturing experience plant at one location in India Professionally managed with Listed on 2 premier stock 6,000 strong workforce exchanges of India Focus to emerge as a sustainable Business Philosophy of Inclusive business or
Slide 21: Core Business Segment Presence
Core Business Segment Presence ➢ Among top 3 soda ash players. o Catering 1/4th of Indian soda ➢ Spinning ash demand o 1,78,000 Spindles Inorganic o Margin leader in the industry; o 3,320 Rotors Textiles Chemicals with highest capacity utilization o 5,760 Drums Segment of 97% o 480 Air jet Spinning
Slide 22: Journey till date and future roadmap
Journey till date and future roadmap Soda Ash production capacity increased to Soda Ash capacity increased to 8.5 Lakh 9.75 Lacs MTPA. MTPA Entered Spinning business with 65 K Doubled Sodium bicarbonate capacity to spindles subsequently increased to 140 K 60 K MTPA. Exploring Soda Commissioned Home
Slide 23: Company's strong core comes from Pre-eminent Professionals
Company’s strong core comes from Pre-eminent Professionals RS Jalan Raman Chopra NN Radia Sunil Bhatnagar Manu Kapur M. Sivabalasubramanian Managing Director CFO & Executive President & COO, President Marketing, President & CEO, CEO, Spinning Director Soda Ash Soda Ash Home Textiles ▪ Unique leaders
Slide 24: Business philosophy going forward
Business philosophy going forward Focus on Value Systems • To create a value systems that Sustainable Robust & defines our Inclusive Growth Profitable Culture • Business Growth Philosophy of • To grow profits at “Sustainable CAGR 20% on a Inclusive Growth” long term horizon involving all the stakeho
Slide 25: Robust & Profitable growth..
Robust & Profitable growth.. Revenue EBITDA PAT EPS Rs. 2,942 Crore in Rs. 649 Crore in FY18 Rs. 364 Crore in FY18 Rs. 37.3/share in FY18 recording a recording a CAGR recording a CAGR FY18 recording a CAGR growth of 7% growth of 9% in last growth of 26% in last CAGR growth of 26% in last 5 years 5 y
Slide 26: Core values at forefront..
Core values at forefront.. Respect Trust Ownership Integrated team Work Thoughtful and show Confidence in each Take Responsibilities of Each person to work regards for another others capabilities and own decisions and towards larger group person. intentions. actions. objectives. GHCL is an unique wo
Slide 27: Inclusive growth of stakeholders
Inclusive growth of stakeholders ➢ Implemented Pay for Performance and Pay for Behaviour. ➢ 7x growth in market capitalisation in last 4 ➢ Wide Allotment of ESOP’s till middle management. years. (Rs. 341 Cr. in FY 14 to Rs. 2584 Cr. in FY 18). ➢ 360 Core value propagation across organisation. ➢ Mult
Slide 28: GHCL Inorganic Chemicals
GHCL Inorganic Chemicals ‘SE NO HOOKS ppl i pe
Slide 29: Commanding a leadership in manufacturing of Soda Ash
Commanding a leadership in manufacturing of Soda Ash 97% 9.75L MT Margin leadership +30%* Soda ash capacity; Captive sources of EBITDA Margins; Capacity utilization; 25% market share of raw material consistent high Highest in industry domestic demand margins Captive sources of raw materials ➢ Captiv
Slide 30: Soda Ash Key Differentiators
Key Differentiators Slated to be single largest Soda ash plant in India by 2019 Expertise and Specialisation of 30 years Best in class productivity of 97% Strategic control over key raw materials Soda Soda Ash B2B to B2C with supply chain existence Ash Innovated from coke to briquette for cost optim
Slide 31: Consistent and Sustainable capacity additions to spur growth
Consistent and Sustainable capacity additions to spur growth 1.25 Lacs Brownfield SA – By FY19 ➢ Next phase of Capex expansion ( Phase-II ) to be completed by March 2019. o Brownfield expansion of 1.25 Lakh MT. Steady capacity additions o Estimated capex outlay Rs. 300 Crores (24K/MT). 11.5 12.0 11.
Slide 32: Global outlook on the soda ash industry
Global outlook on the soda ash industry GLOBAL SIZE: CAPACITY-68 MMT, PRODUCTION-59 MMT EUROPE CAPACITY: 14.5 MMT PRODUCTION: 12.0 MMT Global o Continues to be strong due to Lower availability of Chinese product. CHINA o European market is reported to be CAPACITY: 31.0 MMT growing and continues to s
Slide 33: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share.* (up by 1%) Domestic Demand Concentration. Import, West, 23% Tata Chem, 15% 20% North, 29% Others, South, 5% 19% GHCL, Nirma, 25% East, Gujarat, 27% 9% 28% * Based on External demand (Source : IMA) Domestic Demand & growth trend (CAGR Grow
Slide 34: Inorganic Chemicals - Other products
Inorganic Chemicals - Other products Sodium Bicarbonate Consumer Products ➢ Doubled capacity from 30,000 to 60,000 MT in December ➢ Premium edible Salt Manufacturer in South India 2017, Our market share will accordingly go up from ➢ Expanding product portfolio i.e. Salt, Honey, Spices and current ma
Slide 35: Home Textile Segment
Home Textile Segment 35
Slide 36: Complete Integration improving the efficiency
Complete Integration improving the efficiency ➢ Spindle capacity close to double of home textile requirement giving Presence across value chain an opportunity to benefit from expansion of sheeting capacity o Spinning unit located near Madurai in Tamil Nadu Bed Sheets & Sold in o Yarn ranging from 16
Slide 37: Less than a tenth of all plastic produced globally is recycled
Less than a tenth of all plastic produced globally is recycled. A vast majority of the rest is dumped in landfills and in the oceans. Small plastic pieces of less than 5 mm size or micro plastics, are major ocean pollutants. They are ingested by aquatic micro organisms which then get into food chain
Slide 38: Reinventing with Rekoop
Reinventing with Bottle Bed sheets Flake DNA Tags Yarn Fibre Patented technology developed in Fibre to be Manufactured and Manufactured and Sold by GHCL under association with Applied DNA supplied by Reliance Industries REKOOP brand Sciences(ADNAS) & GHCL. 38
Slide 39: Awards & Recognitions
Awards & Recognitions Referred as Great Place to Awarded trio of Golden work in two consecutive Peacock awards for Corporate years of participation Governance, Corporate social Improved Ranking to 67 responsibility and National from 99 in last year. Quality 4 Notch Upgrades in last 4 years India’s 3
Slide 40: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company has established itself as a well-diversified group with an ascertained Contact Us: footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 41: Thank You