Ghcl Limited · NSE:GHCL
Ghcl — Q4 FY2023 Earnings Presentation
29 slides from Ghcl's earnings presentation, May 1, 2023
Slide 1: Investors' Presentation intimation letter to stock exchanges
May 1, 2023 वैशाख, शक् ु ल प�, एकादशी �वक्रम सम्वत २०८० National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1st Floor, New Trading Ring, Rotunda Building, Bandra – Kurla Complex, P.J. Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort, Mumbai
Slide 2: GHCL Limited Q4 FY23 Business Update
GHCL Limited Q4 FY23 Business Update May 2023 1
Slide 3: Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and sh
Slide 4: Management Commentary
Management Commentary Commenting on the Q4 FY23 performance, Mr. R. S. Jalan, MD said: “Top-line, EBITDA, as well as PAT performance was in-line with the expected trajectory, where all the metrices reported steady growth during the quarter. However, the industry witnessed some volatility in the past
Slide 5: Demerger of the Spinning business into GHCL Textiles Limited
Demerger of the Spinning business into ‘GHCL Textiles Limited’ As of April 1, 2023, GHCL Limited has successfully demerged its spinning business into a separate entity called GHCL Textiles Limited. GHCL shareholders have received shares of GHCL Textiles Limited in the ratio of 1:1 To be listed on bo
Slide 6: Performance Highlights – FY23 (Continued operations)
Performance Highlights – FY23 (Continued operations) 50% 106% 159% 133% FY23 Vs FY22 Revenue* EBITDA PAT Cash Profit (Y-o-Y) Rs. 4,584 Rs. 1,520 Rs. 1,092 Rs. 1,187 crore crore crore crore 5 Note: Revenue includes transportation charges recovered from customers as per IND AS requirement
Slide 7: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from continued operations* 1,141 1,058 8% 1,107 3% 4,584 3,061 50% Operating Expenses of continued operations 771 721 7% 735 5% 3,064 2,323 32% EBITDA from continued operations 370 338 10%
Slide 8: Spinning Business (Discontinued Operations) Balance Sheet
Balance Sheet Combined Inorganic Spinning ( Rs. In Crore ) Chemicals Business Particular March 2022 March 2023 March 2023 Non Current Assets (A) 2,810 1,968 1,072 Spinning Business (Discontinued Operations) Current Assets (B) 1,605 1,539 546 Assets Held for sale & Discontinued operations* (C) 576 1,
Slide 9: Resource allocation & Key financial ratios
Resource allocation & Key financial ratios Including Discontinued Operations Continued Operations Efficient Capital Allocation FY23 Key Ratio’s Rs. 341 crore Rs. 261 crore Rs. 348 cr. Gross Debt Debt Repayment Working Capital Net Debt (0.06)x Net Debt/Equity Rs. 1,406 cr. Rs. 316 crore Free Gene
Slide 10: Q4 FY23 Highlights – Inorganic Chemicals (Continued operations)
Q4 FY23 Highlights – Inorganic Chemicals (Continued operations) (Rs. In Crore) Performance Highlights Particulars Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q ❖ Revenue: Y-o-Y growth was at 8 % fueled by healthy realizations. The favorable demand-supply scenario Revenue 1,141 1,058 8% 1,107 3% has led to sta
Slide 11: Q4 FY23 Highlights – Spinning (Discontinued operations)
Q4 FY23 Highlights – Spinning (Discontinued operations) (Rs. In Crore) Performance Highlights Particulars Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q ❖ The textile industry continued to witness the ongoing challenges due to volatility in cotton and yarn prices Revenue 269 278 (3%) 233 16% coupled with softe
Slide 12: Business outlook – Inorganic Chemicals
Business outlook – Inorganic Chemicals As per global industry outlook, long term demand is very healthy and is likely to grow from 63 million MT to 78-83 million MT by 2030. This increase in demand shall be driven by newer segments such as solar glass, lithium and sodium bi-carbonate. In view
Slide 13: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry Soda Ash Market Outlook Soda ash market conditions remain balanced in most parts of the GLOBAL SIZE: CAPACITY-71 MMT, PRODUCTION-64 MMT world. Soda Ash demand continued to get a boost from sectors linked to the environment including solar glass, lithium carbon
Slide 14: Quality assets, high-potential runway for growth
Quality assets, high-potential runway for growth Chemicals business 1.2 mn tons largest single location facility Inorganic Chemicals Performance Comfort of key input material integration Revenues (5-year CAGR) 17% EBITDA Margins (5 Years Avg.) 29% Industry leading efficiency and productivity S
Slide 15: Focus on driving responsible future growth – Inorganic Chemical
Focus on driving responsible future growth – Inorganic Chemical GHCL Inorganic Chemicals growth levers Doubling RBC (Sodium Bicarbonate) Capacity from 60k to 120K MT Debottlenecking of existing soda ash facility. Vacuum salt from waste energy. Focus on Greenfield Soda Ash project of 5L MT
Slide 16: Value added approach to business
Value added approach to business Continuous innovation to create value Strategically identified customers with Intent to do different but do well for customers product quality that they seek Bulk chemicals/ managed From incorporation till date, the Company is strategically identifying commodit
Slide 17: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Doubled capacity from 30,000 to 60,000 MT in Doublings capacity from December 2017 60,000 MT to 1,20,000 MT Generally Specialization and named as baking experience in soda, bread manufacturing of soda, cooking around a decade soda and bicarbonate of Likely so
Slide 18: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase; could be a game changer Animal Feed Chemicals 17
Slide 19: Awards & Recognitions
Awards & Recognitions 5 Notch Upgrades in last 6 years Enhanced Credit Ratings – Upgraded to AA- with Stable outlook, HR Excellence Award GHCL received 12th CII National HR Excellence Award for strong Mahatma Award for commitment 13th CEO CSR Excellence Conference Referred as Great Place to work in
Slide 20: Company Overview
Company Overview
Slide 21: GHCL – An Introduction
GHCL – An Introduction Best-in-class 1 ❖ Focused management Targeting ❖ Operations management approach ❖ To grow profits at a CAGR 15% on a long-term horizon ❖ CAPEX planning and execution ❖ Strategy led by professional ❖ To inculcate value systems that defines our culture ❖ Financial management man
Slide 22: GHCL Overview
GHCL Overview Best in class Business Focus to 3 decades of Leading soda operational Philosophy of emerge as a Professionally Indian ash player in efficiencies Inclusive sustainable managed Manufacturing India and capacity growth of all business workforce experience utilizations stakeholders organiza
Slide 23: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash production capacity increased to 9.75 Lacs Soda Ash production capacity MTPA enhanced to 12 Lacs MT Soda Ash capacity increased to 8.5 Lacs MTPA Doubled Sodium bicarbonate capacity to 60K MTPA Spindles capacity increased to Entered Spinning business Added
Slide 24: Our Objective
Our Objective “Achieve the CAGR growth of 15% in bottom-line with creating value for all our 5 stakeholders” ESG Responsible HSE – Zero Harm, CSR - Growth Responsible Citizen and Renewable Energy Organic Growth – CAPEX, Non- CAPEX led Growth, Growth – M&A/ JV and Optimize Return on Capital Learning
Slide 25: Core Values at forefront
Core Values at forefront MISSION VISION Responsibly maximising To grow our business responsibly, stakeholder value with governance, sustainability and core values as our foundation ❖ GHCL is a unique workplace which is dotted with its Core Values, defining its culture. ❖ Every employee in the Compan
Slide 26: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Growth & Diversification) Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain R S Jalan (Independen
Slide 27: About Us
About Us GHCL Limited was incorporated on 14th October 1983. The Company has established itself as a well-diversified group with an ascertained footprint in chemicals and consumer products segments. In chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major r
Slide 28: Thank You
Thank You 27
Slide 29: Proforma Financials- Spinning Division (Discontinued Operations)
Proforma Financials- Spinning Division (Discontinued Operations) Profit & Loss Statement FY23 FY 22 Balance Sheet FY23 FY22 Revenue 1,037 924 Non Current Assets (A) 1,072 932 Operating Expenses 966 669 Current Assets (B) 546 407 EBITDA 70 255 Total Assets (C) = (A)+ (B) 1618 1,338 EBITDA Margins 6.8