Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q3 FY22 Earnings Presentation
23 slides from Tata Chemicals's earnings presentation, Feb 10, 2022
Slide 1: Submission of Analysts/Investors Presentation cover letter
February 10, 2022 The General Manager The Manager, Listing Department Corporate Relations Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street Mumbai 400 051 Mumbai 400 001 Symbol: TATACHEM Scrip Code:
Slide 2: Investors Communication Quarter & Nine Months Ended Dec 2021: Q3 FY22
qp TATA TATA CHEMICALS Investors Communication Quarter & Nine Months Ended Dec 2021 : Q3 FY22 Responsive. Resilient. Responsible.
Slide 3: Forward-looking statements disclaimer
“This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of thes
Slide 4: Company journey and footprint
Till FY18 FY19 FY20 FY21 FY17 Divestment of Divestment of Investment Completed Urea Business Phosphate approval of ₹ Demerger of Fertiliser Business 2,700 Cr for Consumer expansion of Products Business Started to build Mithapur 5,000 MT operations Prebiotic plant Acquired Silica Focused Chemistry Pl
Slide 5: India business: products, capacity and locations
Basic Chemistry Products Specialty Products Rallis India Limited* Major Soda ash, Bicarb, Salt, Marine chemicals Prebiotics Crop Care, Crop Protection and Seeds Products and Cement Specialty silica (herbicides, fungicides and insecticides, etc) Soda Ash: 9,17,000 MTPA Installed Prebiotic: 5,000 MTPA
Slide 6: International operations: US, UK, Kenya
US UK Kenya Soda Ash, Bicarb, Major Soda Ash Salt Soda Ash Products Soda Ash: 400,000 MTPA Installed Bicarb: 130,000 MTPA 2,540,000 MTPA 350,000 MTPA Capacity Salt: 430,000 MTPA Lostock & Winnington, UK Location Wyoming, US Middlewich, UK Magadi, Kenya 5
Slide 7: TCL Innovation Centre
TCL Innovation Centre 225 Technically skilled Scientists in R&D 3 State-of-the-art innovation Centers Strong intellectual property |172 patents held (cumulative); 110 Active Applications Rallis India R&D 6
Slide 8: Financial Highlights
Financial Highlights Quarter & Nine Months Ended Dec 2021 : Q3 FY22
Slide 9: Q3 FY22 financial highlights
₹ 3,142 Cr ₹ 545 Cr (17%) ₹ 340 Cr (11%) ↑ 21% vs. Dec20 ↑ 16% vs Dec20 ↑ 69% vs Dec20 Soda Ash Volumes Q3 FY 22 886 Kts Q3 FY 21 768 Kts Growth in Soda Ash and Bicarb volumes vs previous year Salt Volumes Soda Ash pricing recovery on track across geographies Q3 FY 22 383 Kts Q3 FY 21 417 Kts Standa
Slide 10: Standalone and consolidated results, Q3 Dec21
Standalone | ₹ Crore EBITDA EBITDA margin Profit Before Tax PBT margins Profit After Tax PAT margins 931 812 847 30% 250 25% 18% 23% 240 240 26% 21% 17% 17% 220 220 18% 16% 200 20% 25% 16% 23% 200 200 22% 15% 14% 150 15% 180 180 160 244 20% 214 160 14% 192 177 100 10% 13% 175 148 140 140 156 15% 12%
Slide 11: Standalone and consolidated results, YTD Dec21
Standalone | ₹ Crore 2,606 EBITDA EBITDA margin Profit Before Tax PBT margins Profit After Tax PAT margins 2,158 800 30% 800 30% 600 25% 700 26% 25% 700 26% 25% 500 20% 20% 21% 21% 600 600 500 20% 500 20% 400 17% 15% 675 672 518 400 15% 400 15% 300 10% 456 360 300 300 447 10% 10% 200 200 200 5% 5% 5
Slide 12: Segment revenues and results
Consolidated Standalone ₹ Crore Q3 Dec20 Q2 Sep21 Q3 Dec21 Variance Q3 Dec20 Q2 Sep21 Q3 Dec21 Variance Basic Chemistry Products 1,987 2,235 2,448 461 765 791 869 104 Segment Revenues Specialty Products 618 786 679 60 47 58 50 3 Less: Inter Segment Revenue (4) (3) (5) (0) - - - - 2,601 3,018 3,122 5
Slide 13: Quarterly revenue, EBITDA and PAT trends
Standalone | ₹ Crore Consolidated | ₹ Crore 841 828 847 931 2,977 3,023 3,142 812 1,000 3,500 900 717 2,609 2,606 2,636 2,348 3,000 628 800 2,500 700 Revenue 600 2,000 500 1,500 400 300 1,000 200 500 100 - - Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 F
Slide 14: Soda ash, bicarbonate and salt volumes
Soda Ash | In Kts Sodium Bicarbonate | in Kts Salt Portfolio | in Kts 768 886 877 935 54 61 66 56 417 383 430 410 56 73 70 69 70 71 97 93 99 89 108 97 28 28 34 27 474 586 496 586 319 294 322 314 26 33 33 29 178 214 187 156 Dec-20 Dec-21 Dec-20 Dec-21 Dec-20 Dec-21 Dec-20 Dec-21 Dec-20 Dec-21 Dec-20
Slide 15: Regional sales volumes: India, US, UK, Kenya
400 1,400 →US sales volumes remain 350 1,200 300 strong with growth in 184 1,000 168 167 178 578 613 588 159 570 571 568 India | In Kts 158 156 553 154 domestic and export market 250 151 US | In Kts 800 200 475 475 118 600 389 as compared with pervious 150 400 295 276 257 197 181 309 317 353 320 139
Slide 16: Basic Chemistry Products key highlights
Key Highlights Segment Revenue at ₹ 2,448 Cr (up by 23%) → Revenue at ₹ 869 Cr (up 14%), EBIT was ₹ 236 Cr up (vs ₹ 178 Cr PY). Segment results at ₹ 345 Cr (up by 16%) India → Margins improved on account higher realizations, which was partially off set by marginally lower sales volumes in Soda Ash a
Slide 17: Specialty Products key highlights
Key Highlights Segment Revenue at ₹ 679 Cr (up by 10%) Segment results at ₹ 40 Cr vs ₹ 38 Cr PY → Revenue increased for the quarter to ₹ 50 Cr (up by 6%), on the back of higher sales volumes Specialty across products portfolio. Products → Export market gaining traction for FOS products 786 618 679 →
Slide 18: Statement of Profit and Loss by entity
Statement of Profit and Loss for the quarter ended Dec21 Units TCL India US UK Kenya Rallis Consolidated ₹ Cr PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var Revenues 812 931 119 742 891 149 374 551 177 107 132 25 570 628 58 2,606 3,142 536 EBITDA 175 244 69 158 143 (15) 45 66 21 26 25 (
Slide 19: Current year and near-term priorities
Current Year Near Term • First tranche of Soda Ash, Bicarb & Salt expansion on stream • Grow volumes & maximize realizations in soda ash by FY23, delivering incremental revenues Standalone consistent with market and cost dynamics. • Continue focus on costs • Deliver capacity expansions on schedule.
Slide 20: ESG initiatives
ESG initiatives Priorities Focus Areas Climate Signed SBTi and taken absolute • Fuel Change, Energy efficiency, renewable energy Change carbon emission reduction target & CCU & usage. • Water harvesting and conservation Circular Water Neutrality, zero solid waste • Solid waste recycle & cement plant
Slide 21: Awards and recognitions
Tata Chemicals bag 2 awards: ‘Heritage Company of India’ Tata Chemicals awarded with a 5-star rating for its and Corporate Award for ‘Excellence in CSR’ at the FICCI- sustainable development efforts by Minister of Mines; 3rd organised India @75: Chemical and Petrochemical Industry time consecutive i
Slide 22: Earnings per share, exchange rates and shareholding pattern
Consolidated Earnings Price Per Share | In ₹ Exchange | Average rate per ₹ USD GBP 11.3 11.8 103.16 102.61 102.07 7.9 95.99 97.09 6.3 0.5 74.63 74.21 73.73 73.91 74.27 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Shareholding Pattern as on Dec 21 | In % Promoter & Non Promot
Slide 23: For any queries please contact
For any queries please contact below : Sridhar Radhakrishnan rsridhar@tatachemicals.com Sameer V Kulkarni sakulkarni@tatachemicals.com Gavin Desa gavin@cdr-india.com Suraj Digawalekar suraj@cdr-india.com 22