Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q4 FY23 Earnings Presentation
23 slides from Aarti Industries's earnings presentation, May 9, 2023
Slide 1: Exchange filing cover letter: Results Presentation
May 9, 2023 To, To, Listing/Compliance Department Listing/Compliance Department BSE LTD. National Stock Exchange of Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C/1, Mumbai – 400 001. G Block Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051. CODE : 524208 Symbo
Slide 2: Growth Focused Future Ready - Q4 FY23 Results Presentation
Growth Focused Future Ready Q4 FY23 Results Presentation
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Agenda
Agenda 01 02 03 Company Q4 FY23 Growth Overview Financial Opportunity Results & Strategy 3
Slide 5: Vision, Mission and Values
Vision, Mission and Values OUR VISION OUR VALUES To emerge as a ‘Global partner of choice’ for leading consume Excellence of specialty chemicals and We continuously raise the bar of intermediates our performance to delight our Integrity stakeholders We practice highest ethical Care and moral Our com
Slide 6: About Aarti Industries Limited
About Aarti Industries Limited Overview Financial Trends ▪ Established by first generation technocrats in 1984 ▪ Specialized in Benzene-based derivatives 22% 15% ₹6,252 Cr. ▪ Integrated operations and high cost optimization ▪ Key value chains include Nitro Chloro Benzenes, Di-Chlorobenzenes, 5-Year
Slide 7: Key Strengths
Key Strengths Global Player Top 3 Alternate to in Benzene Well placed to Strong Focus In Chlorination and Nitration based globally benefit from China & Europe on R&D and 50+ Fully Backward Integrated Derivatives Industry Process Products in R&D pipeline Low-cost, sustainable with Integrated Top 2 Ta
Slide 8: Well diversified customer across varied end-use segments
Well diversified customer across varied end-use segments % of Revenue (FY23) Key End-Use Industries Served Other Discretionary, 10% Agrochemical, 30% Polymer & Additives, 26% Pharma, 20% Dyes & Pigments, Agrochemicals Pharmaceutical Dyes/ Pigments Additives Polymer Home & Personal 12% Home & Persona
Slide 9: Sustainability Is At The Core Of What Aarti Does
Sustainability Is At The Core Of What Aarti Does ENVIRONMEN AIL received the gold award in the 2022 EcoVadis ● 11 sites are Zero Liquid Discharge (ZLD) CSR assessment, placing us in the top 3% of evaluated companies globally ● Total water recycled ~45% of the total water withdrawal in FY 22 T ● More
Slide 10: Robust R&D expertise
Robust R&D expertise 2 250+ 7 40+ 18,000 sq. ft. State-of-the-art R&D Planned product introductions, centres across Maharashtra Covered by an ultra-modern Engineers & scientists Patents filed more than 50% products will & Gujarat be launched first time in India synthesis laboratory 19 Fully Digitise
Slide 11: Agenda
Agenda 01 02 03 Company Q4 & FY23 Growth Overview Financial Opportunity Results & Strategy 10
Slide 12: Q4 & FY23 Highlights (Consolidated)
Q4 & FY23 Highlights (Consolidated) Revenues EBITDA Profit Before Tax Profit After Tax 2.1% 11.2% 149 1,854 173 -22.0% 1,826 289 -3.8% 160 146 135 262 1,642 252 137 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Revenues EBITDA Profit Before Tax Profi
Slide 13: Key Milestones in FY23
Key Milestones in FY23 • Signed a binding term-sheet with Deepak Fertilisers for 20- 100+ INR 1300+ cr. year Nitric Acid offtake and supply arrangement valued at Products in R&D pipeline CAPEX entailed over Rs. 8,000 crore • Demerged the Pharma entity into a separate Company – Aarti PharmaLabs Limit
Slide 14: Performance Overview – Q4 FY23
Performance Overview – Q4 FY23 Revenues of Rs. 1,826 crore; increase EBITDA of Rs. 252 crore; decrease of PAT of Rs. 149 crore; increase of 2.1% of 11.2% over previous year 3.8% over previous year over previous year • Revenue growth was driven by higher volumes from expanded capacities for key produ
Slide 15: Chairman's Message
Chairman’s Message Commenting on the performance for Q4 FY23, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “Financial Year 2023 was a challenging period for the industry guided by unfolding of several material events including Russia-Ukraine conflict, inflationary surge in in
Slide 16: Q4 & FY23 – Consolidated Profit & Loss
Q4 & FY23 – Consolidated Profit & Loss Particulars (Rs. Crore) Q4 FY23 Q4 FY22 Y-o-Y (%) Q3 FY23 Q-o-Q (%) FY23 FY22 Y-o-Y (%) Gross Income from Operations 1,826 1642 11.2% 1,854 -1.5% 7,283 5,823 25.0% (without Termination, Shortfall & Pharma) Exports 924 545 69.5% 888 4.1% 3,517 2,950 19.2% % of T
Slide 17: Agenda
Agenda 01 02 03 Company Q4 FY23 Growth Overview Financial Opportunity Results & Strategy 16
Slide 18: Future Growth Projects: Driven by R&D & Innovation
Future Growth Projects: Driven by R&D & Innovation Introducing Chloro ● Adding new chemistries and Value added Toulenes Value products Chain: (Range of products) o 40+ products for Chemicals through and Integrated Value Chain. o Chloro Toulene Base capacity: ~ 42000 Setting up Newer range of TPA Uni
Slide 19: Major Projects: FY19 – H1 FY25
Major Projects: FY19 – H1 FY25 Operationalised by FY23 To be Completed by Sept 24 Set up New Research & Operationalized Phase 1 Unit at Dahej Technology Centre at Navi SEZ for agrochemical intermediates & NCB Capacity Expansion at Vapi Mumbai Speciality Chemical Specialty Chemicals Blocks at various
Slide 20: Chemical EBITDA
CHEMICAL EBITDA ● Pandemic Impact (COVID 19), majorly in FY21 ● Nitric Acid Shortage across various periods. ● Cancellation of Long term contract resulting into one time cash inflow but loss of annual EBITDA. ■ Facility operating at lower utilisation levels. EBITDA for the period FY18-FY22 are EBITD
Slide 21: Future Growth Opportunities & Outlook
Future Growth Opportunities & Outlook Growth Strategy Outlook Partnership with Global Companies • Collaborate with world’s leading chemical companies • Macro Concerns on demand continuing from FY23 and • Build on existing partnerships and build new ones FY24 is expected to progressively improve in F
Slide 22: About Us
About Us Aarti Industries Limited (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals For further information please log on to company that combines process chemistry competence (recipe focus) with sca
Slide 23: Thank You
Growth Focused. Future Ready. Thank You