Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q1 FY19 Earnings Presentation
18 slides from Sharda Cropchem's earnings presentation, July 2018
Slide 1: Sharda Cropchem Limited Q1 FY19 Results Update
SHARDA CROPCHEM LIMITED Q1 FY19 RESULTS UPDATE July 2018
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q1 FY19 Result Highlights Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q1 FY19 Results: Key Highlights
Q1 FY19 RESULTS: KEY HIGHLIGHTS Q1 FY19 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* PAT & PAT MARGIN 32.3% 31.2% 4,571 18.6% 18.2% 12.7% 3,411 7.5% 851 622 34.0% 36.8% 432 20.8% 342 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Revenues Gross Margin % EBITDA EBITDA Margin
Slide 5: Key Highlights: Financial and Operational Update
Q1 FY19 RESULTS: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q1 FY19 Revenues increased by 34.0% YoY from Rs. 3,411.2 mn to Rs.4,571.5 mn. • Region-wise growth YoY– Europe: 57.5%, NAFTA: -11.0%, LATAM: 62.4%, ROW: 81.7% • Q1 FY19 gross profit increased by 29.2% YoY from Rs.1,102.7 mn to Rs.1,424.9 mn. Gross
Slide 6: Division Wise Highlights
Q1 FY19 RESULTS: DIVISION WISE HIGHLIGHTS In Rs Mn Q1 FY19 YoY ANALYSIS: REVENUE BREAKUP 4,571 781 3,411 Division Revenue Share % Q1 FY18 Q1 FY19 489 59.8 % Agrochemicals 85.7% 82.9% 3,790 2,922 29.7 % Non-Agrochemicals 14.3% 17.1% Q1 FY18 Q1 FY19 Agrochemicals Non-Agrochemicals 6
Slide 7: Agrochemical Business
Q1 FY19 RESULTS: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,922 3,790 2,922 3,790 7.7% 9.2% 11.7% 7.8% 10.4% 13.4% 37.3% 24.8% 88.3% 92.2% 44.6% 52.5% Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Europe NAFTA LATAM RoW Formulations AIs • Revenues in Europe
Slide 8: Agrochemical Business: Revenue by Product Type
Q1 FY19 RESULTS: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 24% 26% Q1 FY18 46% Q1 FY19 47% 30% 27% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues have grown by 32.3% YoY in Q1 FY19 to Rs 1,794.1 mn • Fungicides reve
Slide 9: Non-Agrochemical Business
Q1 FY19 RESULTS: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: PRODUCTWISE 489 781 489 781 15.8% 2.0% 1.9% 25.8% 9.1% 7.2% 43.4% 27.7% 98.0% 98.1% 31.7% 39.3% Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Europe NAFTA LATAM RoW Conveyor Belts General Chemicals • Revenues in Europ
Slide 10: Working Capital Analysis
Q1 FY19 RESULTS: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 151 150 133 102 69 57 Q1 FY18 Q1 FY19 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS Q1 FY18: 75 Q1 FY19: 117 * Calculated on average inventory, receivables, creditors 10
Slide 11: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY19 Q1 FY18 YoY% FY 18 Revenue from Operations 4571.5 3411.2 34.0% 17,133.9 COGS 3146.6 2308.5 36.3% 11,437.4 Gross Profit 1424.9 1102.7 29.2% 5,696.4 Gross Margin 31.2% 32.3% -116bps 33.2% Employee Expenses 81.9 76.5 7.1% 335.4 Other E
Slide 12: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registrat
Slide 13: About Us: Our Presence
ABOUT US: OUR PRESENCE ae S$/C Sharda Cropchem Limited 13
Slide 14: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 21 % CAGR: 22 % CAGR: 14 % 17,134 19.6% 16.3% 22.2% 22.3% 20.2% 14.1% 11.6% 14.3% 13.6% 11.1% 13,992 12,186 10,611 3,124 3,454 1,904 1,908 7,904 2,714 1,751 1,727 1,111 1,230 1,550 FY14 FY15 FY16 FY17 F
Slide 15: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Key Institutional Investors – 30th June 2018 % Holding Market Data As on 27th July 2018 Market capitalization (Rs Mn) 33,661.2 HDFC MF 6.82% Price (Rs.) 373.1 Pinebridge 4.28% No. of shares outstanding (Mn) 90.2 DSP Blackrock Investment Manager 3.89% Face Value (Rs.)
Slide 16: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 17: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities. Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider. Build own Sales Force Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India. E
Slide 18: For Further Queries
FOR FURTHER QUERIES: Mr. Conrad Fernandes Ms. Pushpa Mani / Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: cfernandes@shardaintl.com Email: pushpa.mani@dickensonir.com / nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9911684123 / 9819289131