Primo Chemicals Limited · NSE:PRIMO
Primo Chemicals — Punjab Alkalies & Chemicals — Investor Presentation (November 2022)
25 slides from Primo Chemicals's investor presentation, Nov 3, 2022
Slide 1: BSE filing cover letter for Investor Presentation
PACL:SEC:2022:1881 03.11.2022 BSE Limited, 1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, MUMBAI- 400 001 Scrip Code : 506852 Subject:- Company’s Investor Presentation Dear Sir, Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Dis
Slide 2: Punjab Alkalies & Chemicals Ltd. Investor Presentation November 2022
HYDROGEN GAS CAUSTIC SODA LYE LIQUID CHLORINE SODIUM HYPOCHLORITE HYDROCHLORIC ACID Punjab Alkalies & Chemicals Ltd. (BSE: 506852) Investor Presentation November 2022 www.punjabalkalies.com
Slide 3: PACL Overview
PACL Overview Punjab Alkalies & Chemicals Limited PACL Is the largest producer of Caustic Soda in Northern India Key Products Business Overview ▪ PACL runs two manufacturing plants in Nangal, Punjab based on membrane cell technology with a capacity of Caustic Soda Lye 1,65,000 TPA (100% basis) ▪ Exp
Slide 4: Q2 FY23 - Performance Highlights
Q2 FY23 - Performance Highlights Punjab Alkalies & Chemicals Limited Commenting on the Performance, Mr. Naveen Chopra, Managing Director, said 113% “I am pleased to announce that PACL continues to maintain its growth momentum in the second quarter Rs 1,857 Mn Y-o-Y 54.2% amidst volatile economic sce
Slide 5: Investment Case
Investment Case Punjab Alkalies & Chemicals Limited Efficient capital allocation, with a continued focus on growing our business and delivering strong returns through the cycle 1. Manufacturing units located strategically providing easy and cost-effective access to market with presence of in-plant r
Slide 6: Operational Performance Indicators
Operational Performance Indicators Punjab Alkalies & Chemicals Limited (in Rupees Million) Sales Volumes (MT) Utilised Capacity (TPA) Total Capacity (TPA) 27% YOY 37,000 33,995 35,019 35,000 Q2 FY23 Performance 31,710 32,721 26,872 28,553 24,750 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY2
Slide 7: Quarter Performance Trends
Quarter Performance Trends Punjab Alkalies & Chemicals Limited (in Rupees Million) Revenue from Operations EBITDA 113% YOY 1,863 1,857 1,611 701 616 593 614 1,307 870 (374) Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 PBT Net Profit 542 640 532 558 446 480 430 418 (435) (373
Slide 8: Quarter Performance Trends (Margins)
Quarter Performance Trends Punjab Alkalies & Chemicals Limited (in Rupees Million) Gross Profit Margins EBITDA Margins 45.4% 55.1% 55.4% 35.8% 36.6% 53.5% 53.1% 31.6% 33.7% (41.8)% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 PBT Margins Net Profit Margins 31.6% 26.9% 39.9%
Slide 9: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle Punjab Alkalies & Chemicals Limited (In Millions) FY21 FY22 H1 FY23 Long Term Debt 4 531 587 Short Term Debt 2 81 82 Total Debt 6 612 668 Less: Cash & Cash 80 252 176 Equivalents Net Debt (74) 361 492 Total Equity 966 2,763 3,624 Total Debt/Equity 0.01x 0.2
Slide 10: Key Ratios
Key Ratios Punjab Alkalies & Chemicals Limited Return on Capital Return on Equity (%) CFO / EBITDA (%) Employed (%) 123% 55.5% 61.3% 75% 72.9% 69.0% 38.8% 31.8% 23.6% 25.5% 13.0% 9.9% FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 (Consolidated Financials) Page 9 of 30
Slide 11: Annual Performance Trends
Annual Performance Trends Punjab Alkalies & Chemicals Limited (in Rupees Million) Revenue from Operations EBITDA 4,541 1,315 3,719 1,018 2,904 2,263 365 427 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 PBT Net Profit 1,198 898 755 592 182 201 88 82 FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 Note
Slide 12: Annual Performance Trends (Margins)
Annual Performance Trends Punjab Alkalies & Chemicals Limited (in Rupees Million) Gross Profit Margins EBITDA Margins 54.2% 34.1% 47.0% 38.6% 32.4% 21.7% 15.2% 11.7% FY20 FY21 FY22 H1 FY23 FY20 FY21 FY22 H1 FY23 PBT Margins Net Profit Margins 31.0% 23.3% 16.1% 12.6% 5.8% 7.1% 2.8% 2.9% FY20 FY21 FY2
Slide 13: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary Punjab Alkalies & Chemicals Limited Q2 Y-o-Y Q1 Q-o-Q H1 Y-o-Y (in Rs. Mn) FY2023 *FY2022 Growth (%) FY2023 Growth (%) FY2023 FY2022 Growth (%) Revenue from Operations 1,857 870 113% 1,863 (0.3)% 3,719 1,623 129% Other Income 89 24 270% 51 73.2% 140 52 172%
Slide 14: Attractive Industry Dynamics
Attractive Industry Dynamics Punjab Alkalies & Chemicals Limited Caustic Soda demand is anticipated to remain strong amidst the global volatile environment Global Market Outlook Indian Market Business Cycle & Growth • The global caustic soda market is all set to • In terms of scale, domestic chemica
Slide 15: Manufacturing Units and Products
Manufacturing Units and Products Punjab Alkalies & Chemicals Limited PACL is well positioned to add incremental capacity to meet growing demand Products Application Application Two manufacturing units: Location: Ropar, Punjab (India) ➢ Paper & Paper Pulp ➢ Soap & Detergents ➢ Textile, Dye Stuff Indu
Slide 16: Customers: Diversified customer base, serving across sectors
Customers Punjab Alkalies & Chemicals Limited Diversified customer base, serving across sectors Page 15 of 30
Slide 17: Acquisition of Flow Tech Chemicals
Acquisition of Flow Tech Chemicals Punjab Alkalies & Chemicals Limited Board and Shareholder Transaction Details Rationale Approval • PACL has completed purchase of 49% stake in Flow Tech • Approval received to acquire • Will result in inhouse chlorine Chemicals Private Limited, a upto 100% stake th
Slide 18: Journey So Far
Journey So Far Punjab Alkalies & Chemicals Limited 100 TPD grassroot plant based on the HOECHST - UHDE Membrane Cell Technology was commissioned (now Unit- Commenced operations Installed capacity of II) Installed capacity of Conversion of Existing 200 Manufacturing capacity with installed capacity o
Slide 19: Strategic Growth Priorities
Strategic Growth Priorities Punjab Alkalies & Chemicals Limited Strategic Roadmap To Double The Revenue and Profitability in Next Two Years FY2022 FY2023 FY2024 Favourable Industry Higher Caustic Soda Production from Newly Cost Optimization and Enhanced Profitability Dynamics, Significant Launched P
Slide 20: Board of Directors: Diversified Experience
Board of Directors: Diversified Experience Punjab Alkalies & Chemicals Limited Mr. Sukhbir Singh Dahiya Mr. Naveen Chopra (Chairman) (Managing Director) An industrialist though leader with experience of over 31 years Extensive experience in chemical industry spanning over 30 years. including 16 year
Slide 21: Environment
Environment Punjab Alkalies & Chemicals Limited It has always been the top priority of the Company to carry out its operations in an environment friendly fashion • Environment Strategy: Company has been taking appropriate pollution control and safety measures. Online Monitoring System has already be
Slide 22: Social
Social Punjab Alkalies & Chemicals Limited Continue to enhance value creation in the society and in the community to promote sustained growth for the society and community "Punjab State • Social Strategy: In alignment with the vision of the Company, PACL, through its CSR initiatives, shall continue
Slide 23: Governance
Governance Punjab Alkalies & Chemicals Limited Philosophy on the code of Corporate Governance is to ensure fair and transparent business practices • Corporate Governance Policies: The Company’s core philosophy on the code of Corporate Governance is to ensure fair and transparent business practices w
Slide 24: Disclaimer and Contact Information
Disclaimer and Contact Information Punjab Alkalies & Chemicals Limited (in Rupees Million) This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating
Slide 25: Thank You
HYDROGEN GAS CAUSTIC SODA LYE Punjab Alkalies & Chemicals Limited LIQUID CHLORINE SODIUM HYPOCHLORITE HYDROCHLORIC ACID THANK YOU HEAD OFFICE S.C.O. 125-127, Sector 17-B, Chandigarh – 160 017. (INDIA) P: +91-172-4072543/4072546 E: enquiry@punjabalkalies.com www.punjabalkalies.com 24
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