Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q1 FY23 Earnings Presentation
40 slides from Chemplast Sanmar's earnings presentation, Aug 7, 2022
Slide 1: Exchange filing cover letter: Investor Presentation
August 7, 2022 To, To, 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 copy of Invest
Slide 2: Chemplast Sanmar Ltd. Investor Presentation August 2022
Chemplast Sanmar Ltd. Investor Presentation August 2022
Slide 3: Safe Harbour
Safe Harbour Chemplast Sanmar Limited 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
Slide 4: Q1 FY23 Highlights
Q1 FY23 Highlights
Slide 5: A Good Performance in tough Circumstances…
A Good Performance in tough Circumstances… Chemplast Sanmar Limited Key highlights The debottlenecking of our suspension PVC capacity by 10% at our Cuddalore plant got completed ahead of schedule by May 22 Q1FY23 PVC prices have come under pressure due to oversupply from China. We believe this i
Slide 6: … Driven by Specialty Chemicals Business…
… Driven by Specialty Chemicals Business… Chemplast Sanmar Limited Currently, commodity Total Revenues EBITDA In the long term, once business dominates our proposed In Rs. Cr In Rs. Cr the sales mix. 5,892 1,411 1,197 194 expansions come on- However, vin terms of stream, Specialty v CSL 34% 35% prof
Slide 7: MD's Message
MD’s Message Chemplast Sanmar Limited Despite a challenging environment, we delivered another quarter with a strong 47% growth in revenues on a YoY basis and 28% growth in EBITDA on YoY basis. Sequentially however, our profits are lower than Q4 of FY22 due to the flood of PVC exports from China into
Slide 8: Performance Highlights: Q1FY23
Performance Highlights: Q1FY23 Chemplast Sanmar Limited Total Revenues In Rs. Cr In Rs. Cr Total Revenue Q1 FY23 Q1 FY22 Y-o-Y 47% 1,411 Specialty Chemicals 257 193 33% 960 Non-Specialty Chemicals 231 119 94% Suspension PVC 923 648 42% Consolidated Revenues 1,411 960 47% Q1FY22 Q1FY23 EBITDA PAT In
Slide 9: Consolidated Profit & Loss Account (Proforma)
Consolidated Profit & Loss Account (Proforma) Chemplast Sanmar Limited Particulars (Rs. In Crs) Q1 FY23 Q1 FY22 Y-o-Y FY22 FY21 Y-o-Y Revenue from Operations 1,411 960 47% 5,892 3,799 55% Cost of Goods Sold 904 599 3,714 2,229 Employee Cost 36 29 120 114 Other Expenses 277 181 862 601 EBITDA 194 151
Slide 10: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Chemplast Sanmar Limited Particulars (Rs. In Crs) Q1 FY23 Q1 FY22 Y-o-Y FY22 FY21 Y-o-Y Revenue from Operations 570 312 83% 2,012 1,289 56% Cost of Goods Sold 227 76 700 427 Employee Cost 24 19 77 77 Other Expenses 198 122 607 393 EBITDA 121 96 26% 628 391 60% EBITD
Slide 11: Company Overview
Company Overview
Slide 12: Chemplast Sanmar: Leading Chemical Manufacturer in India…
Chemplast Sanmar: Leading Chemical Manufacturer in India… Chemplast Sanmar Limited #1 manufacturer resin in India of Specialty Paste PVC #1 manufacturer of S-PVC in South India and 2 largest in India nd (1) Leading player in Custom Manufacturing #1 manufacturer in South India of Hydrogen Peroxide Le
Slide 13: … with a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar Limited Chemplast Sanmar CCVL (1) Specialty Chemicals Non-Specialty Chemicals Suspension PVC Specialty Paste PVC resin Custom manufacturing Caustic soda Hydrogen Chloromethanes peroxide Irrigation Auto Agrochemicals End user Footwear upholstery
Slide 14: Specialty Paste PVC Resin
Specialty Paste PVC Resin Chemplast Sanmar Limited Industry Overview Company Overview 143 ktpa Indian demand 9.3% #1 manufacturer of Specialty paste PVC resin in India FY20 (1) CAGR (FY21-25) (1) Domestic Imports 55% 45% 66 ktpa 41 ktpa Key growth drivers Installed capacity Planned capacity addition
Slide 15: Custom Manufactured Chemicals
Custom Manufactured Chemicals Chemplast Sanmar Limited Industry Overview Company Overview Leading player in custom manufacturing US$ 6.0 bn 9.1% Setting up a multipurpose Indian market size FY21 (1) 1,068 mtpa facility in stages CAGR (FY21-25) (1) Installed capacity (Blocks 1 & 2) at Berigai Key gro
Slide 16: Non-Specialty Products
Non-Specialty Products Chemplast Sanmar Limited Caustic Soda Hydrogen Peroxide Chloromethanes 3.5 mn mtpa 282 ktpa 510 ktpa Indian demand Indian demand 10.3% Indian Demand 10.1% 8.2% FY21 (1) FY21(1) CAGR (FY21-25) (1) FY21 (1) CAGR (FY21-25) (1) CAGR (FY21-25) (1) Industry Key growth drivers Key gr
Slide 17: Suspension PVC (CCVL)
Suspension PVC (CCVL) Chemplast Sanmar Limited Industry Overview Company Overview 3,340 ktpa manufacturer of S-PVC in South India and 2nd largest in Indian demand in FY20(1) 7.7% CAGR (FY21-25) (1) #1 India Key growth drivers 331 ktpa 31 ktpa added in May-22 via Installed capacity debottlenecking Si
Slide 18: Legacy of Over Five Decades
Legacy of Over Five Decades Chemplast Sanmar Limited CCVL became a wholly Commencement of Expansion of Marine terminal Capacity expansion: owned subsidiary of our manufacturing of PVC production capacity of facility and EDC Plant Paste PVC to 66,000 tpa at Mettur Company; resins at Mettur PVC resins
Slide 19: Chemplast Sanmar: Key Highlights
Chemplast Sanmar: Key Highlights Chemplast Sanmar Limited Leadership position across wide array of products; Growing end-use applications; Wide and stable customer base High entry barriers Paste PVC manufacturing technology is The custom manufacturing industry has significant entry barriers, includi
Slide 20: Organizational Capabilities
Organizational Capabilities
Slide 21: Quality Manufacturing Facilities…
Quality Manufacturing Facilities… Chemplast Sanmar Limited Chemplast Sanmar CCVL Location Mettur, Tamilnadu Berigai Tamilnadu Karaikal, Puducherry Cuddalore, Tamilnadu Paste PVC 66 ktpa Caustic Soda 67 ktpa Caustic soda Custom manufacturing Suspension PVC resin Capacity Hydrogen Peroxide 34 ktpa 106
Slide 22: … with a High Degree of Backward Integration
… with a High Degree of Backward Integration Chemplast Sanmar Limited Mettur Plant Hydrogen Hydrogen Peroxide 34kt Caustic Imported Coal Methanol Soda 67 kt EDC Power Plant Electrolysis Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCI HCI 35 kt Salt 400kt (Vedaranyam) Karaikal Plant Sta
Slide 23: Glance at Manufacturing Facilities
Glance at Manufacturing Facilities Chemplast Sanmar Limited Paste PVC plant, Chloromethanes plant, Custom manufacturing, Mettur, Tamilnadu Mettur, Tamilnadu Berigai , Tamilnadu Custom manufacturing, Caustic Soda manufacturing, Suspension PVC, Berigai , Tamilnadu Karaikal, Puducherry Cuddalore, Tamil
Slide 24: Strong Focus on Sustainability
Strong Focus on Sustainability Chemplast Sanmar Limited Environment Friendly Practices Health & Safety Measures Annual sustainability reports published for over a decade Zero liquid discharge policy Installation of speed Desalination plants at coastal control & safety systems facilities - avoi
Slide 25: Key Awards & Recognition
Key Awards & Recognition Chemplast Sanmar Limited Accreditations Key Awards FICCI Safety system Star Award from Sword of Sword of Excellence Award National Safety Council Honor Honor 2019 British Safety British Safety Safety Safety Council Council 2020, 2021, Cuddalore Mettur Plant-2 ICC’s “Certific
Slide 26: Leadership Team With Deep Domain Expertise
Leadership Team With Deep Domain Expertise Chemplast Sanmar Limited Dr. Krishna Kumar Rangachari Ramkumar Shankar Deputy Managing Director - Custom Vijay Sankar Managing Director Manufactured Chemicals Division Chairman and Non-Executive Director Exp : 33+ Years Exp : 30+ years • Industrialist with
Slide 27: Eminent Board of Directors
Eminent Board of Directors Chemplast Sanmar Limited Vijay Sankar Ramkumar Shankar Chairman and Non-Executive Director Managing Director • Industrialist with experience in managing several businesses • Member of the CII National Committee on Chemicals and • Past president of Indian Chemical Council P
Slide 28: Way Forward
Way Forward
Slide 29: Our Strategies
Our Strategies Chemplast Sanmar Limited Expansion of the production capacities Planning to add Paste PVC capacity to benefit from structural changes in the supply side dynamics and to cement leadership position in India Planning to expand custom manufacturing capabilities to leverage our chemist
Slide 30: Capex Plans
Capex Plans Chemplast Sanmar Limited Low cost future expansion leveraging existing land and infrastructure facilities 2022 2024 2025 Suspension PVC resin Paste PVC Custom Manufacturing Capacity debottlenecking by 31 kt 2024 Planning to add 41 kt capacity at Setting up a multipurpose facility at Cudd
Slide 31: Historical Performance
Historical Performance
Slide 32: Product group-wise Volumes & Revenues
Product group-wise Volumes & Revenues Chemplast Sanmar Limited In mt Sales Volume FY22 FY21 FY20 Specialty Chemicals 65,841 63,231 64,739 Non-Specialty Chemicals 1,46,652 105,060 119,863 Suspension PVC 2,99,268 273,296 271,300 Total Sales Volume 5,11,761 441,587 455,902 In Rs. Cr Total Revenue FY22
Slide 33: Historical Performance Highlights
Historical Performance Highlights Chemplast Sanmar Limited In Rs. Cr Revenues EBITDA 13% 22% 20% Margin 5,892 1,197 # 3,799 855 3,123 400 FY20 FY21 FY22 FY20 FY21 FY22 PAT Net - Debt 8% 11% 649 2,060 ++ 1,459 310 ++ 1 -362 FY20 FY21 FY22 FY20 FY21 FY22 # Excludes positive impact on account of invent
Slide 34: Consolidated Profit & Loss Account (Proforma)
Consolidated Profit & Loss Account (Proforma) Chemplast Sanmar Limited Particulars (Rs. in Cr) FY22 FY21 Y-o-Y FY20 Revenue from Operations 5,892 3,799 55% 3,123 Cost of Goods Sold 3,714 2,229 1,933 Employee Cost 120 114 118 Other Expenses 862 601 671 EBITDA 1,197 855 40% 400 EBITDA Margin 20.3% 22.
Slide 35: Consolidated Balance Sheet (Proforma)
Consolidated Balance Sheet (Proforma) Chemplast Sanmar Limited ASSETS (Rs. in Cr) Mar-22 Mar-21 Mar-20 EQUITY AND LIABILITIES (Rs. in Cr) Mar-22 Mar-21 Mar-20 Non-Current Assets Equity a) Property, Plant And Equipment 3,195 3,087 3,232 a) Equity Share Capital 79 67 67 b) Capital Work in Progress 34
Slide 36: Consolidated Cashflow Statement (Proforma)
Consolidated Cashflow Statement (Proforma) Chemplast Sanmar Limited Particulars (Rs. in Cr) Mar-22 Mar-21 Mar-20 Net Profit Before Tax 796 563 9 Adjustments for: Non Cash Items / Other Investment or Financial Items 420 526 303 Operating profit before working capital changes 1,216 1,089 312 Changes i
Slide 37: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Chemplast Sanmar Limited Particulars (Rs. In Crs) FY22 FY21 Y-o-Y FY20 Revenue from Operations 2,012 1,289 56% 1,259 Cost of Goods Sold 700 427 421 Employee Cost 77 77 83 Other Expenses 607 393 441 EBITDA 628 391 60% 314 EBITDA Margin 31.2% 30.4% 24.9% Other income
Slide 38: Stand-alone Balance Sheet
Stand-alone Balance Sheet Chemplast Sanmar Limited ASSETS (In Rs. Cr) Mar-22 Mar-21 Mar-20 EQUITY AND LIABILITIES (In Rs. Cr) Mar-22 Mar-21 Mar-20 Non-Current Assets Equity a) Property, Plant And Equipment 2,220 2,088 2,156 a) Equity Share Capital 79 67 67 b) Capital Work in Progress 27 25 8 b) Othe
Slide 39: Stand-alone Cash flow Statement
Stand-alone Cash flow Statement Chemplast Sanmar Limited Particulars (Rs. in Cr) Mar-22 Mar-21 Mar-20 Net Profit Before Tax 434 56 139 Adjustments for: Non Cash Items / Other Investment or Financial Items 194 324 174 Operating profit before working capital changes 628 379 313 Changes in working capi
Slide 40: Thank you
Company Investor relations advisor Thank you Strategic Growth Advisors Pvt. Ltd. Chemplast Sanmar Ltd. CIN - U74140MH2010PTC204285 CIN- L24230TN1985PLC011637 Ms. Shikha Puri / Mr. Shrikant Sangani N Muralidharan – Chief Financial Officer Email - shikha.puri@sgapl.net/ shrikant.sangani@sgapl.net nm3@