Madhya Bharat Agro Products Ltd. · NSE:MBAPL
Madhya Bharat Agro Products — Q2 FY2024 Earnings Presentation
30 slides from Madhya Bharat Agro Products's earnings presentation, Oct 23, 2023
Slide 1: Results presentation filing letter to NSE
Date : 23.10.2023 National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex, Bandra (East) Mumbai-400 051 Company Code: MBAPL Dear Sir/Madam, Sub: Results Presentation for the Quarter -2 for the financial year 2023-24 Pursuant to Regulation 30 of the Securities and Exchange Board
Slide 2: Q2 and H1 FY24 Financial Results presentation
Madhya Bharat Agro Products Ltd (MBAPL) [A unit of Ostwal Group of Industries] Q2 and H1 FY24 Financial Results presentation
Slide 3: Quarterly Performance
& OSTWAL Quarterly Performance
Slide 4: Q2FY24 Highlights
Q2FY24 Highlights ▪ Recorded highest ever DAP/NPK Volumes at ~38,700MT (Total fertilizer volumes – 95,084 MT) o Revenue at INR278 Cr, has grown by 12% o EBITDA at INR41 Cr (EBITDA Margins are 14.7%; EBITDA per ton is ~INR4300) o PAT at INR15 Cr (PAT Margins are 5.3%). ▪ Launched tech-based marketing
Slide 5: Performance Trend
Performance Trend Revenue (Rs. Crore) EBITDA (Rs. Crore) Margin (%) 22.07% 22.62% 286.0 19.52% 249.2 278.5 65.6 16.79% 234.0 55 14.75% 149.0 45.9 41.19 25.2 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 PAT (Rs. Crore) Margin (%) • Revenue improves over sequential quarter on
Slide 6: Volumes
Volumes H1 FY23 H1 FY24 Q2FY23 Q2FY24 Production (MT) SSP 1,14,450 103,879 53,417 52,663 DAP - 5,639 - 5,639 NPK 34,036 53,510 14,996 21,638 Total 148,486 163,028 68,413 79,940 H1 FY23 H1 FY24 Q2FY23 Q2FY24 Sales (MT) SSP 110,315 92,886 63,424 56,386 DAP 864 5,689 - 5,689 NPK 36,771 51,096 21,422 33
Slide 7: Key Ratios
Key Ratios H1 FY23 H1 FY24 Operational EBITDA/tonne (Rs.) 7,117 4,869 Financial Debt-Equity Ratio 0.92 0.82 Current Ratio 1.59 1.54 Working Capital (Rs. Crore) 158.9 180.6 Total Debt (Rs. Crore) 244.4 286.4 ROCE (%) 29.6 11.3 RONW (%) 23.1 6.4 Debtors (Days) 90 99 Creditors (Days) 25 42 6
Slide 8: Results Table
Results Table Q2 Y-o-Y Q1 Q-o-Q H1 Y-o-Y Full Year (Rs. in crore) FY2024 FY2023 Growth (%) FY2024 Growth (%) FY2024 FY2023 Growth (%) FY2023 Revenue from operations 278.5 248.9 11.9% 149.0 86.9% 427.49 461.9 -7.5% 982.1 Other income 0.8 0.3 149.3% 1.1 -28.8% 1.82 0.4 403.3% 5.2 Total income 279.2 24
Slide 9: Chairman's Quote
Chairman’s Quote Commenting on the financial performance of the company for Q2FY24, Mr. MK Ostwal said, “The quarter under review has been a challenging one due to lower realisations with stagnant input costs thereby putting pressure on operating performance. Despite these challenges the new capacit
Slide 10: MBAPL – an overview
MBAPL – an overview अन्नदाता का साथ, ककसान का विकास 9
Slide 11: Overview
Overview ▪ MBAPL, a part of Ostwal Group of Industries, is led by Mr. MK Ostwal, a first generation technocrat entrepreneur. ▪ Mr. Ostwal is regarded as one of the pioneers of Single Super Phosphate (SSP) manufactured from BRP. He along with his sons Mr. Pankaj Ostwal and Mr. Praveen Ostwal have mas
Slide 12: Journey so far
Journey so far Doubled manufacturing Incorporated in 1997 Began SSP & capacity of DAP/NPK/ASP was taken over by OGI Sulphuric Acid & Migrated to NSE plant to 240,000 MT and with its 60,000 MT SSP got listing on NSE Main board of stock PA to 49,500 MT per plant in 2004. SME Emerge. exchange annum 200
Slide 13: Strategic Location with regular capacity additions
Strategic Location with regular capacity additions Finished Goods Capacities (MT) FY21 FY22 FY23 240000 240000 240000 240000 Uttar Pradesh 120000 Close proximity to market enabling shorter delivery time and swifter availability of fertilizer Gujarat to farmers 0 Dahej Seaport Madhya Pradesh • Low gr
Slide 14: Only Manufacturer in India with Full Backward Integration
Only Manufacturer in India with Full Backward Integration Beneficiated Rock Sulphuric Acid & Single Super SSP Powder & Granular form Phosphate Water Phosphate Annual capacity : 240,000 MT Beneficiation of Low grade rock to High In house Sulphuric grade rock plant with acid plant with Phosphoric Acid
Slide 15: Efficient Operating Metrics
Efficient Operating Metrics Capacity Capacity Capacity Production utilisation (MT) utilisation (MT) utilisation (MT) capacity (MTPA) H1 FY24 (ann.) FY23 FY22 Fertilizer Production Volumes DAP/NPK** 240,000 49% 78% 32% (in ‘000 MT) SSP/GSSP 240,000 87% 87% 77% 208 FY22 185 FY23 H1 FY24 Organic Fertil
Slide 16: First to implement tech-enabled marketing with deep network
First to implement tech-enabled marketing with deep network STRONG Expansive distributors and FORMIDABLE marketing reach in areas of SUSTAINABLE market & EXPANDING VISIONARY ‘Marketing Strategy’ 150 1,400 15,000 Marketing Dealers & Wholesalers professionals retailers PIONEER in using Technology to d
Slide 17: Competitive Advantage
Competitive Advantage PROVEN track ONLY Fully Backward BENEFITS of record Manufacturer Economies of Scale Time and again promoters have Ability to beneficiate a low-grade Rock Ostwal Group is 2nd largest SSP acquired & turnaround loss making Phosphate to High Grade Rock manufacturer enabling discoun
Slide 18: Focus farmer connect and sustainability
Focus farmer connect and sustainability Sustainability Focus on quality ▪ MBAPL is committed to sustainable fertilizer for agriculture. The company’s fertilizers enrichment of crop are designed to minimize the impact on soil and water resources and NABL accredited reduce greenhouse gas emissions. la
Slide 19: Doubling Capacity by 2026
Doubling Capacity by 2026 • MBAPL has recently entered into a definitive agreement with Hindalco to acquire their DAP/NPK facility at Dahej. • The acquired facility will be relocated to new location by MBAPL. Necessary land has already been procured at MIDC, Nardana, Dhule district, Maharashtra. • M
Slide 20: Promoters
Promoters Mr. M.K. Ostwal Mr. Pankaj Ostwal Mr. Praveen Ostwal Promoter, Chairman & Promoter & Director- Promoter & Director- Director Commercials Technicals Aged 67 years has a vast Aged 46 years is a C.A by Aged 43 years he is a C.A by 43 years experience in the qualification with 23 years qualifi
Slide 21: Industry Overview
& OSTWAL Industry Overview a *
Slide 22: Volatile Prices since 1 year
200 600 800 400 1,000 1,200 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Source: Fertiliser week Oct-18 Jan-19 SSP Bulk CPT Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 NPKs Bulk CFR Oct-20 Jan-21 Finished goods (USD/t) Apr-21 Jul-21 Oct-21 DAP Bulk CFR Jan-22 Apr-22 Jul-22 Oct-22 Volatile P
Slide 23: Increasing share of NPK Fertilisers
Increasing share of NPK Fertilisers 1991-92 2021-2022 SSP, 15% SSP, 12% NP/NPKs, 21% NP/NPKs, 34% Others*, 1% Others*, 0.08% DAP, 54% DAP, 63% • Consistent increase in consumption share of NPK : 21% in 1991-92 to 34% in 2021-22 • MBAPL on the back of increasing complex fertiliser capacities is optim
Slide 24: Trends in consumption of fertiliser products
Trends in consumption of fertiliser products SSP DAP MOP NP/NPKs* 14000 12000 10000 8000 6000 4000 2000 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 The usage of DAP and NPK fertilisers has been consistently higher * Other than DAP/MAP 23
Slide 25: Huge Gap in crop production and productivity
Huge Gap in crop production and productivity Food grain production growing ~3.7% 2 …but at a significantly low productivity rate 1 (in Million Tonnes) 309 297 Yield (tonnes per hectare) 11.1 285 280 8.4 6.9 6.1 6.2 5.6 5.8 5.5 2017-18 2018-19 2019-20 2020-21 4.6 3.8 3.1 3.1 3.2 3.5 3 …primarily due
Slide 26: Annexures
& OSTWAL Annexures a *
Slide 27: Historical Financial Performance
Historical Financial Performance Revenue (Rs. Crore) EBITDA (Rs. Crore) Margin (%) 25.6% 26.7% 22.5% 21.7% 21.8% 982 491 215 116 131 186 42 107 30 35 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ROE (%) ROCE (%) PAT (Rs. Crore) Margin (%) 45.3% 12.6% 11.3% 10.8% 11.6% 35.1% 9.8% 124 37.82% 14.5
Slide 28: Ratios & Cashflow
Ratios & Cashflow (Rs. in Crores) Particular FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Cash Flow Summary Cash and Cash Equivalents at Beginning of the year 0.01 0.18 0.95 0.05 0.02 Net Cash from Operating Activities -70.04 -71.93 30.04 14.44 15.36 Net Cash Used in Investing Activities -65.31 -13.06 -5
Slide 29: Key Ratios
Key Ratios FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 Operational Ratio EBITDA/tonne (Rs.) 7,347 4,578 2,152 2,446 2,076 Financial Ratios Debt-Equity Ratio 0.98 0.80 0.42 0.28 0.20 Current Ratio 1.58 1.51 1.50 2.62 2.19 Working Capital (Rs. Crore) 183.15 95.15 34.34 44.57 30.43 Total Debt (Rs. Crore) 3
Slide 30: Thank You
Thank You Sourabh Gupta, CFO Madhya Bharat Agro Products Limited (MBAPL) Email: secretarial@mbapl.com, secretarial@ostwal.in, sourabh@mbapl.com Gavin Desa / Rishab Barar CDR - India Tel: +91 98206 37649/ 7777 35061 Email: gavin@cdr-india.com / rishab@cdr-india.com
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