Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q3 FY21 Earnings Presentation
37 slides from Meghmani Organics's earnings presentation, February 2021
Slide 1: Meghmani Organics Limited (MOL) Q3 FY21 Results Presentation
Meghmani Organics Limited (MOL) Q3 FY21 Results Presentation February 2021
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 3: Discussion Summary
Discussion Summary Q3 FY21 Results Update • Exports to 75+ About Countries Us • Subsidiaries in US, Dubai and Business Overview representative office in China • 7 Dedicated Strategy & Outlook Manufacturing Facilities in India Financial Overview 3
Slide 4: Q3 & 9M FY21 Results: Key Highlights
Q3 & 9M FY21 Results: Key Highlights Q3 FY21 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin* 46.8% 48.3% 24.2% 20.0% 10.9% 12.1% 6,577 1,591 5,222 1,047 793 567 Q3 FY20 Q3 FY21 Q2 FY20 Q2 FY21 Q3 FY20 Q3 FY21 9M FY21 YoY Analysis 44.3% 49.5% 21.0% 25.0% 13.9% 12.8
Slide 5: Q3 FY21 Results: Key Highlights
Q3 FY21 Results: Key Highlights • During Q3 FY21, Meghmani’s operations returned to normalcy with capacity utilization returning to pre- COVID-19 levels. The company’s operations were carried out under restrictive manufacturing environment with utmost priority to the safety of plants and its employe
Slide 6: Q3 & 9M FY21 Results: Pigments Business
Q3 & 9M FY21 Results: Pigments Business Q3 FY21 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 89% 86% 81 % 77 % 9,000 600 16.8% 19.1% 8,000 7,323 7,099 50.0% 1,623 500 20.0% 0.0% 1,700 7,000 1,600 1,525 10.0% 6,000 -50.0% 400 310 5,000 -10
Slide 7: Q3 & 9M FY21 Results: Agrochemicals Business
Q3 & 9M FY21 Results: Agrochemicals Business Q3 FY21 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 82% 83 % 88 % 60% 10,000 1,200 20.7% 24.6% 30.0% 50.0% 8,000 6,641 3,000 2,825 1,000 20.0% 6,000 4,854 0.0% 800 696 10.0% 2,500 2,226 4,000
Slide 8: Q3 & 9M FY21 Results: Chloro Alkali & its Derivatives Business
Q3 & 9M FY21 Results: Chloro Alkali & its Derivatives Business Q3 FY21 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) EBITDA (Rs Mn) & Margin (%) 83% 89% 26.6% 30.9% 1,200 30.0% 100,000 83,169 50.0% 3,000 1,000 20.0% 80,000 2,215 0.0% 2,500 800 684 10.0% 60,000 49,521 2,000 1,56
Slide 9: Q3 FY21 Results: Consolidated Profit & Loss Statement
Q3 FY21 Results: Consolidated Profit & Loss Statement Particulars (Rs. in Mn) Q3 FY21 Q3 FY20 YoY% 9M FY21 9M FY20 YoY% Revenue from Operations 6,577 5,222 25.9% 17,113 16,708 2.4% COGS 3,403 2,777 22.6% 8,647 9,300 -7.0% Gross Profit 3,173 2,445 29.8% 8,466 7,409 14.3% Gross Margins % 48.3% 46.8% 1
Slide 10: Discussion Summary: About Us
Discussion Summary Q3 FY21 Results Update About Us Business Overview Strategy & Outlook Financial Overview 10
Slide 11: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals Chloro Alkali & its Derivatives(MFL) • Started in 1986 • Started in 1995 • Started in 2009 • Amongst top 3 global Phthalocyanine • One of the largest producers of • 4th largest Chloro-Alkali & its based pigment play
Slide 12: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 13: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Leaner balance sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 13.2% 01 04 • ROCE – 14.1% in FY16 to 17.0% in FY20 over FY16-20, with higher contribution • ROE – 15.1% in F
Slide 14: Key Milestones
Key Milestones Setting up new Epichlorohydrin Plant (Capacity- 50,000 TPA) 2020 - 21 Setting up new CPVC Resin Plant (Capacity- 30,000 TPA) Capacity Expansion of Caustic upto 4,00,000 TPA and Captive Power Plant upto 132 MW New Capex in Agro Division-Doubling the capacity of 2,4-D to 21,600
Slide 15: Discussion Summary: Business Overview
Discussion Summary Q3 FY21 Results Update About Us Business Overview Strategy & Outlook Financial Overview 15
Slide 16: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with Total Capacity – 33,180 TPA 14% global market share & amongst top 3 (capacity wise) global pigments players Location Capacity Pr
Slide 17: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) Net Sales & Exports* (Rs Mn) 75 % 68 % 79 % 81 % 77 % 78 % 35,000 6,048 6,406 5,877 30,000 25,982 25,226 25,694 6,100 5,242 4,736 25,000 5,100 4,185 19,487 20,194 4,100 20,000 18,050 3,100 2,100 15,000 1,100 10,000 100 FY16 FY17 FY18 FY19 FY20
Slide 18: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 50.0 43.0 • Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 35.0 pigments
Slide 19: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Sold to technical grade pesticides • Established global presence across Africa, Brazil, LatAm, US and Europe Pesticide Intermediates manufactu
Slide 20: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) 25,000 646 656 581 567 616 18,431 18,666 18,145 18,669 492 20,000 16,219 14,004 348 356 362 15,000 354 307 309 10,000 227 260 268 290 294 5,000 183 0 FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 Expo
Slide 21: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 58.7 Bn by 2020 58.7 • Key drivers - growing population, declining arable land & rising pest 51.2 1.
Slide 22: Chloro Alkali & its Derivatives Business: Key Highlights
Chloro Alkali & its Derivatives Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • 4th largest Chloro-alkali & derivative complex in India • 3rd Largest in Chloromethane (CMS) and Hydrogen Peroxide ( H2O2). Dahej Facility • Chloro-alkali and deriva
Slide 23: Chloro-Alkali & its Derivatives Business: Operational Overview
Chloro-Alkali & its Derivatives Business: Operational Overview Production (MT) & Capacity Utilisation (%) Net Sales (Rs Mn) 88.0% 77.0% 80.2% 8,000 7,104 350,000 86.0% 86.1% 84.2% 100.0% 90.0% 7,000 5,975 6,098 5,701 300,000 80.0% 6,000 250,000 205,480 70.0% 3,988 179,203 5,000 3,920 200,000 145,985
Slide 24: Chloro-Alkali & its Derivatives Business: Industry Overview
Chloro-Alkali & its Derivatives Business: Industry Overview Hydrogen Peroxide (H2O2) Domestic Industry Overview Domestic Hydrogen Peroxide (H2O2) Market Size : Rs. 8.5 bn (FY20) • The Indian Hydrogen Peroxide market was pegged at Rs. 8.5 billion in FY20 and is expected to grow at 7% CAGR in the comi
Slide 25: Discussion Summary: Strategy & Outlook
Discussion Summary Q3 FY21 Results Update About Us Business Overview Strategy & Outlook Financial Overview 25
Slide 26: Roadmap for achieving 12-15% top-line growth
Roadmap for achieving 12-15% top-line growth • MOL is one of the most efficient manufacturers of Chloro-Alkali & its Derivatives with forward integrated facilities yielding high margins • MOL’s backward integrated facilities ensure sustainability and lower dependency on raw material • The Rs 7.6 bn
Slide 27: Agrochemicals: Capex Plan
Agrochemicals: Capex Plan Capex Expected date of Expected Revenue Project (Rs Crs) Completion (Rs Crs) 2,4-D (Capacity – 10.8k 127 Commissioned in Q3 FY 21 200 TPA) Phase-I: commissioned in Q3 FY 21 Formulation Plant 25 150 Phase II : Q1 FY 22 Multi Purpose Plant 310 Q4 FY 22 600 (New Molecules) Tot
Slide 28: Chloro-Alkali & its Derivatives: Commissioned Projects
Chloro-Alkali & its Derivatives: Commissioned Projects Expected Revenue Project Capacity Date of Commissioning (Rs Crs) CMS 50 KTA July 19 160 Caustic Expansion 140 KTA June 20 300 CPP Exp 36 MW June 20 Hydrogen Peroxide 60 KTA July 20 150 Total 610 28
Slide 29: Chloro-Alkali & its Derivatives: New Investments
Chloro-Alkali & its Derivatives: New Investments Project Capacity Date of Commissioning Expected Revenue (Rs Crs) Epichlorohydrin (ECH) 50 KTA Q4 FY 22 475 CPVC Resin 30 KTA Q1 FY 23 300 Caustic Soda with Captive Power Plant 106 KTA & 36 MW Q1 FY 23 230 Total 1005 Industry Dynamics Meghmani’s ECH US
Slide 30: Chloro-Alkali & its Derivatives (Increasing Share of Value added products)
Chloro-Alkali & its Derivatives (Increasing Share of Value added products) 2019-2020 (A) Chloro-Alkali Segment KOH 20% Derivatives Chloro- (CMS) Alkali 83% 17% NaOH 80% The division’s share of value added products is expected to grow from 17% in FY20 to 57% in FY24 Chloro-Alkali Segment Year 2023-20
Slide 31: Discussion Summary: Financial Overview
Discussion Summary Q3 FY21 Results Update About Us Business Overview Strategy & Outlook Financial Overview 31
Slide 32: Standalone Financial Snapshot
Standalone Financial Snapshot Rs Mn Revenues ^ & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 14% * CAGR 21% * CAGR 52% 11.9% 12.9% 21.2% 12.0% 46.8% 39.7% 42.1% 42.5% 16.5% 36.2% 38.0% 14.5% 6.2% 1,921 13.6% 10.8% 11.9% 2,466 3.8% 4.0% 1,687 16,247 2,323 2,363 1,503 12,605 14,104 11,
Slide 33: Standalone Financial Snapshot
Standalone Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 0.68 0.56 0.60 142 130 0.39 0.27 0.25 112 115 113 106 96 82 81 65 77 74 6,977 11,395 5,916 8,380 9,908 6,329 101 103 89 85 92 92 4,037 3,533 4,170 3,265 2,639 2,874 -55 -55 -48 -50 -51 -60 FY16 FY17 FY18 FY19 FY20 9M FY
Slide 34: Consolidated Financial Snapshot
Consolidated Financial Snapshot Rs Mn Revenues ^ & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 13% * CAGR 14% * CAGR 27% 49.5% 50.5% 49.5% 26.1% 46.9% 44.1% 23.9% 25.0% 13.2% 14.1% 13.2% 12.8% 43.5% 19.6% 20.3% 19.8% 8.4% 8.2% 2,954 2,890 20,880 21,912 5,445 18,034 4,341 2,379 2,188
Slide 35: Consolidated Financial Snapshot
Consolidated Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 0.76 0.62 0.57 0.51 116 112 0.53 0.35 91 100 92 87 16,153 13,983 11,528 80 71 64 63 52 59 7,575 8,732 10,919 80 85 71 70 80 77 7,901 8,220 -36 5,781 4,610 3,858 7,162 -44 -44 -39 -44 -48 FY16 FY17 FY18 FY19 FY20 9M FY
Slide 36: Restructuring - Approvals & Indicative Timeline
Restructuring - Approvals & Indicative Timeline Sr. No. Key Approvals Indicative Timelines 1 Prior approval of Singapore stock exchange and Securities Industries council In principle approval obtained 2 Receipt of observations/comments from Stock exchanges on the scheme and Securities Approval recei
Slide 37: For Further Queries:
For Further Queries: Gurjant Singh Chahal, CFO Email: ir@meghmani.com Phone: +91-79717 61000 Hiral Keniya / Vikash Verma IR Consultants Contact: 90296 62801 / 96640 09029 Email: meghmani@dickensonworld.com