Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q2 FY2024 Earnings Presentation
39 slides from Chemplast Sanmar's earnings presentation, Nov 2, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation
2nd November, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed a copy of Investor
Slide 2: Chemplast Sanmar Limited Investor Presentation – Q2 FY '24
Chemplast Sanmar Limited Investor Presentation – Q2 FY ’24
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemplast Sanmar Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Performance Highlights
ee Performance Highlights 7 aA
Slide 5: Performance Highlights: Q2 & H1 FY '24
Performance Highlights: Q2 & H1 FY ’24 Rs. Cr Margin Key Highlights Revenues EBITDA PAT • Prices of both Suspension and Paste PVC were marginally higher in Q2 FY ’24 on a q-o-q basis - 8% -3% 5% 3% -6% 3% prices were 2.5% to 5% higher sequentially • Caustic Soda and Chloromethanes prices 1,194 996 9
Slide 6: MD's Message
MD’s Message “Following a tepid Q1 FY ’24, Q2 FY ’24 witnessed a relatively better performance mainly due to improvement in prices of both Suspension and Paste PVC coupled with lower feedstock prices. The top line was flat while EBITDA was back in the black during the quarter. However, the imports o
Slide 7: Segmental Highlights - Quarterly
Segmental Highlights - Quarterly Rs. Cr Speciality Chemicals Other Chemicals# Suspension PVC Consolidated 682 1,194 Revenue Breakup 649 637 996 988 287 217 223 226 131 128 Q2 FY ’23 Q1 FY ’24 Q2 FY ’24 Q2 FY ’23 Q1 FY ’24 Q2 FY ’24 Q2 FY ’23 Q1 FY ’24 Q2 FY ’24 Q2 FY ’23 Q1 FY ’24 Q2 FY ’24 mt 139,6
Slide 8: Segmental Highlights – Half year
Segmental Highlights – Half year Rs. Cr Speciality Chemicals Other Chemicals# Suspension PVC Consolidated 2,606 Revenue Breakup 1,605 544 1289 1,984 440 457 254 H1 FY ’23 H1 FY ’23 H1 FY ’24 H1 FY ’23 H1 FY ’24 H1 FY ’23 H1 FY ’24 H1 FY ’24 mt 265,867 268,126 79,747 152,417 167,442 33,703 36,403 Sal
Slide 9: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Rs. Cr Particulars Q2 FY ’24 Q2 FY ’23 Y-o-Y Q1 FY ’24 Q-o-Q H1 FY ’24 H1 FY ’23 Y-o-Y Revenue from Operations 988 1,194 -17% 996 -1% 1,984 2,606 -24% Cost of Goods Sold 656 782 725 1,381 1,686 Employee Cost 39 38 38 77 74 Other Expenses 247 276 268 514 553 EBITDA
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Cr Assets Sep ‘23 Mar ‘23 Equity And Liabilities Sep ‘23 Mar ‘23 Non-Current Assets Equity a) Property, Plant And Equipment 3,372 3,124 a) Equity Share Capital 79 79 b) Capital Work in Progress 467 402 b) Other Equity 1,708 1,745 c) Instruments entirely equity in natur
Slide 11: Consolidated Cashflow Statement
Consolidated Cashflow Statement Rs. Cr Particulars Sep ‘23 Sep ‘22 Net Profit Before Tax (84) 94 Adjustments for: Non Cash Items / Other Investment or Financial Items 80 189 Operating profit before working capital changes (3) 283 Changes in working capital (163) 83 Cash generated from Operations (16
Slide 12: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Rs. Cr Particulars Q2 FY ’24 Q2 FY ’23 Y-o-Y Q1 FY ’24 Q-o-Q H1 FY ‘24 H1 FY ‘23 Y-o-Y Revenue from Operations 351 569 -38% 350 0% 700 1,139 -39% Cost of Goods Sold 151 264 154 306 492 Employee Cost 26 25 25 51 49 Other Expenses 182 210 194 376 407 EBITDA (8) 70 nm
Slide 13: Stand-alone Balance Sheet
Stand-alone Balance Sheet Rs. Cr ASSETS Sep ‘23 Mar ‘23 EQUITY AND LIABILITIES Sep ‘23 Mar ‘23 Non-Current Assets Equity a) Property, Plant And Equipment 2,457 2,187 a) Equity Share Capital 79 79 438 388 b) Other Equity 3,851 3,865 b) Capital Work in Progress c) Instruments entirely equity in nature
Slide 14: Stand-alone Cashflow Statement
Stand-alone Cashflow Statement Rs. Cr Particulars Sep ‘23 Sep ‘22 Net Profit Before Tax (54) 97 Adjustments for: Non Cash Items / Other Investment or Financial Items 18 88 Operating profit before working capital changes (36) 185 Changes in working capital (79) (33) Cash generated from Operations (11
Slide 15: Company Overview
ee Company Overview 7 aA
Slide 16: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… 4 Manufacturing Experienced management #1 #1 sites with a high degree of team with deep domain manufacturer Leading player manufacturer of backward integration (2) expertise of Speciality in Custom S-PVC in South Paste PVC Manufactured India
Slide 17: … with a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar CCVL (1) Speciality Chemicals Other Chemicals Suspension PVC Speciality Paste PVC Custom Caustic Soda Hydrogen Chloromethanes resin Manufacturing peroxide Irrigation End-user Auto and Furniture Paper Textile Paper Textiles Footwear Pharma Agroc
Slide 18: The Sanmar Advantage: Paste PVC
1. Paste PVC Part of speciality chemical division of Chemplast Sanmar. Largest manufacturer of Speciality Paste PVC resin in India • Manufactured at Mettur facility since 1968; 41 ktpa expansion coming up at Cuddalore CSL is the oldest player and one of only two companies in India having the requisi
Slide 19: The Sanmar Advantage: Custom Manufactured Chemicals
2. Custom Manufactured Chemicals Part of speciality chemical division of Chemplast Sanmar; growing Renowned for our Sustainability, Environmental and Safety rapidly on the back of 15 years of long-standing client relationships stewardship • Quality manufacturing at Berigai facility in a safe and sus
Slide 20: The Sanmar Advantage: Caustic Soda, Hydrogen Peroxide, Chloromethanes
3. Caustic Soda | Hydrogen Peroxide | Chloromethanes | Ref. Gas Part of other chemicals division of Chemplast Sanmar; These complete the integration story of the company • Generated as a joint product in the process of manufacture of Capacity chlorine Caustic soda 119,000 • Sold at 48-50% concentrat
Slide 21: The Sanmar Advantage: Suspension PVC
4. Suspension PVC Part of CCVL (100% subsidiary); Largest manufacturer of S-PVC in South India and second largest in India Strong customer relationships with a diversified dealer/ • Manufactured at Cuddalore facility since 2009 customer network • This facility has a captive import terminal facilitat
Slide 22: Well Positioned to Capture Growth
Well Positioned to Capture Growth
Slide 23: Well Positioned to Capture Growth
Well Positioned to Capture Growth ‣ Five decades track record ‣ State-of-the-art manufacturing units at strategic locations ‣ Improving product mix Chemplast Sanmar Limited ‣ High growth industry ‣ Strong focus on sustainability ‣ Committed leadership team with eminent board 22
Slide 24: 1. Five decades track record
1. Five decades track record Commencement of Expansion of Marine terminal Capacity expansion: CCVL became a wholly Commissioned Phase 1 of manufacturing of production capacity facility and EDC Paste PVC to 66,000 tpa at owned subsidiary of our Custom Manufacturing PVC resins at Mettur of PVC resins
Slide 25: 2. State-of-the-art Manufacturing Units
2. State-of-the-art Manufacturing Units… 01 Mettur, Tamil Nadu • The site consist of 4 plants with high degree of integration • Paste PVC – 66 ktpa • Zero liquid discharge facility • Hydrogen Peroxide – 34 ktpa • Sourcing of power from a captive power plant of 48.5 MW • Chloromethanes – 35 ktpa • Re
Slide 26: … with a High Degree of Backward Integration
… with a High Degree of Backward Integration Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Imported Coal Caustic Soda Methanol EDC Power Plant Ref. Electrolysis Gases Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCl HCl 35 kt Salt 400kt (Vedara
Slide 27: 3. Improving Product Mix
3. Improving Product Mix… Total Revenue EBITDA Rs. Cr 3,799 5,892 4,941 855# 1,197 468 Currently, Suspension PVC CSL In the long term, once our 34% 34% 39% dominates the sales mix. 46% 52% proposed expansions come 65% However, in terms of on-stream, Speciality vehicle profitability, share of would c
Slide 28: .. Supported by over Rs. 1,000 Cr Investment
.. Supported by over Rs. 1,000 Cr Investment Speciality Paste PVC • Target commissioning: H2 FY ’24 Capex Outlay • Brownfield project being implemented at Cuddalore – Rs. 360 Cr 66,000 41,000 this will leverage on CCVL’s existing Marine Terminal mtpa 107,000 mtpa and other infrastructure mtpa Steady
Slide 29: 4. High Growth Industry
4. High Growth Industry… Products Paste PVC Suspension PVC Custom Manufacturing • India heavily import dependent • India set to outpace global Agro-CMC • India heavily import dependent • Demand growing at a fair clip market - AIs and advanced Key • Enough headroom to grow – no capacity • New capacit
Slide 30: … with CSL's unique position to capitalize on it
… with CSL’s unique position to capitalize on it Technology not Leverage Existing Infra Owns vacant industrial land and available on License 01 other infrastructure for future leg Paste PVC manufacturing technology is closely of expansion guarded and is not readily available on license 02 High Compl
Slide 31: 5. Strong Focus on Sustainability
5. Strong Focus on Sustainability… Environment • Harmonious relationship with Friendly Practices Health & Safety Measures neighboring communities • Zero liquid discharge policy • Transport safety - Installation • Desalination plants at coastal of speed control & safety • Receive enquiries from poten
Slide 32: … with various awards & recognitions
… with various awards & recognitions Accreditations Key Awards Sword of Sword of Honor Honor British Safety ECOVADIS SILVER Star Award from British Safety Council MEDAL National Safety Council Council 2021, 2020, Mettur Safety Safety Cuddalore Plant 2 One of the two winners of the ‘Sustainability FI
Slide 33: Protecting the Environment with Sustainable Actions
Protecting the Environment with Sustainable Actions Chemplast consistently enhances manufacturing processes with continuous its Carbon Reduction and 2,97,016 Energy Saving tonnes of CO2 Equivalent technical innovation to improve efficiency and Initiatives Avoided Emissions (FY ’23) surpass environme
Slide 34: 6. Committed Leadership Team With Eminent Board
6. Committed Leadership Team With Eminent Board Vijay Sankar Ramkumar Shankar Chairman & Managing Director Non Executive Director Dr. Krishna Kumar Rangachari N Krishnamoorthy Deputy Managing Director - Deputy Managing Director - Custom Manufactured Commercial Chemicals Division Chandran Ratnaswami
Slide 35: Historical Financials
ee Historical Financials 7 aA
Slide 36: Historical Segmental Highlights
Historical Segmental Highlights Rs. Cr Speciality Chemicals Other Chemicals Suspension PVC Total Revenue Breakup 5,892 1,272 3,880 4,941 862 1,079 740 3,000 3,799 913 2,510 3,123 749 511 1,863 376 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’2
Slide 37: Performance Trend
Performance Trend Revenue EBITDA Rs. Cr 13% 22% 20% 9% Margin 5,892 4,941 1,197 3,799 855 # 3,123 400 468 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’22 FY ’23 PAT Net Debt 8% 11% 3% 649 2,060 1,459 310 ++ ++ 152 1 FY ’20 FY ’21 FY ’22 FY ’23 -362 -184 FY ’20 FY ’21 FY ’22 FY ’23 All computations
Slide 38: Way Forward
Way Forward The Company expects margins to improve in Realisations are expected to be under pressure the short-term and sustain over the medium to Caustic soda 4 in the short-term and stabilize thereafter on the Paste PVC 1 long-term driven by the tightness in global back of growth in demand demand
Slide 39: Thank You
Company Chemplast Sanmar Ltd. CIN- L24230TN1985PLC011637 Hitesh Jain, Investor Relations grd@sanmargoup.com www.chemplastsanmar.com Thank You Investor relations advisor Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Shikha Puri / Shrikant Sangani shikha.puri@sgapl.net/ shrikant.sang