Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — Q1 FY2025 Earnings Presentation
48 slides from Sumitomo Chemical India's earnings presentation, Jul 27, 2024
Slide 1: Exchange filing cover letter
* SUMITOMO CHEMICAL INDIA LTD. Corporate Office: 13/14, Aradhana IDC, Near Virwani Industrial Estate, Goregaon (East), Corporate Identity Number (CIN) - L24110MH2000PLC124224 Mumb'ai - 400 063. Maharashtra, INDIA. Tel. : +91-22-4252 2200 / Fax : +91-22-4252 2380 URL http://www.sumichem-india.co.in 2
Slide 2: Investor Presentation - June 2024
+ SUMITOM0 CHEMICAL INDIA LTD. .9. Sumitomo Chemical • India Limited _ Investor Presentation - June 2024 wi • •
Slide 3: Safe Harbour
Safe Harbour 4.• SCI 2.0 This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or su
Slide 4: Financial Performance & Key Highlights
Financial Performance & Key Highlights
Slide 5: Performance Highlights – Quarter
Performance Highlights – Quarter 4.• SCI 2.0 Revenue (Rs Crs) Gross Profit (Rs. Crs) & Gross Profit Margin (%) +45% +16% 326 839 724 225 ,,•••••••"I •••••••""" 38.9% 31.1% Q1FY24 Q1FY25 Q1FY24 Q1FY25 EBITDA (Rs. Crs) & PAT (Rs Crs) & EBITDA Margin (%) PAT Margin (%) +100% +105% 161 127 81 62 ...••••
Slide 6: Performance Highlights – Q1FY25
Performance Highlights – Q1FY25 40► SCI 2.0 ✓ The India Meteorological Department (IMD) had predicted a ‘above normal’ monsoon, which boosted market sentiments during Q1FY25. However, India recorded below-normal rainfall in June, with the deficit at 11%, the highest in five years. However, surplus r
Slide 7: 'Every Day Farmers' Day' Campaign
'Every Day Farmers’ Day' Campaign SCI 2.0 g • irn • Sumitomo Chemical India Limited is recognized for its innovative approach to demand F IP szN generation. We have enhanced these efforts with the launch of our meticulously planned 100-day 'Every Day Farmers’ Day' Campaign. Leveraging unique, intern
Slide 8: 'Every Day Farmers' Day' Campaign
'Every Day Farmers’ Day' Campaign SCI 2.0 •1 -,-t , or I '444;v• nit .; • rr— I • r 4. • I )-01 411, er'•-•17 • !,40.-11ftao • 1 7 Innovate Nurture Grow www.sumichem.co.in
Slide 9: New Product Launches - PAN India
New Product Launches - PAN India 4.• SCI 2.0 Santana CLOTMANC1010 S% why GA .11.•• ,- umr IS 01101MOND" acid 0.1% H 01•11,;•••^1104,,L1gee PYCLOIllf ..1406:. • • 1;*40 t v-zA ' ti lridor, • IRMI10110 041•CAl ^Cell left • •••••• • ••••• 0•••• ...••••• Pyclome Insecticide Santana Sumiblue Diamond Clot
Slide 10: New Product Launches - PAN India
New Product Launches - PAN India SCI 2.0 ii i • • • • AMBIT % TUNICO INS IDE Cblertrailhprole 044,401 Herbicide Oxadiargyl 1% + Pretilachlor 6% GR Category: Herbicide F Insecticide Chlorantrasniliprole 0.4% w/w GR ir S 4., O SIMM101.0 CHEMICAL NINA LTD 'llaate••••••••••••• a IC... hies Herbicide Glu
Slide 11: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement 4 SCI 2.0 Particulars (Rs. Crs) Q1FY25 Q1FY24 YoY Q4FY24 QoQ FY24 i L Revenue from Operations 838.9 724.2 16% 674.2 24% 2,843.9 COGS 512.5 498.9 392.7 1,775.1 Gross Profit 326.4 225.4 45% 281.5 16% 1,068.9 Gross Profit % 38.9% 31.1% 780 bps 41.7% -284 bps
Slide 12: Revenue Breakup – Q1FY25
Revenue Breakup – Q1FY25 4 SCI 2.0 Product Breakup Geographic Breakup 9% 8% 4% 6% 2% 1% 2% 0% 4% 7% 3% 2% 2% 0% 4% 0% 0% 8% 35% 3% 39% 8% 7% Q1FY24 Q1FY25 Q1FY24 Q1FY25 8% 33% 86% 85% 34% Insecticides PGR Fungicides Domestic Japan Europe • North America Herbicides Metal Phosphides M AND & EHD* Afric
Slide 13: Consolidated Working Capital Movement
Consolidated Working Capital Movement + SCI 2.0 Change Change Particulars (Rs. Crs) Jun-24* Jun-23* (Jun-23 to Mar-24* (Mar-24 to Jun-24) Jun-24) Inventory (A) 586.6 805.6 -219.0 610.4 -23.8 Inventory Days (Inventories/ COGS* No. of days in period) (i) 104 147 126 Trade Receivables (B) 751.6 810.0 -
Slide 14: Financial Performance Trend
Financial Performance Trend + SCI 2.0 Gross Profit Margin % .-INI-.EBITDA Margin % .-A-.PAT Margin % 1200.0 45.0% 1121.7 39.8% • 41.7% 38.4% 39.0% 37.6% 985.5 40.0% 1000.0 36.1% 38.1% • 38.9% ----------___----m.di- 37.9% 910.4 31.1% 903.5 35.1% 35.3% 838.9 35.0% 782.0 31.3% 800.0 753.7 707.2 724.2 3
Slide 15: Company Overview
Company Overview
Slide 16: Journey to 15x Growth in India
Journey to 15x Growth in India SCI 2.0 I 1' • SCIL – Vision & Mission Strategically Located Manufacturing I lb Facilities - Pi AllikW417 ; • % 11, t _ lin ay • S„,?•-i% ,tt , .„,„ . r ;11:511 &Alb JP 7 Formidable Player in the Indian - Strong Focus on R&D, Process Innovation 5, Agrochemicals Space •
Slide 17: SCIL - Vision & Mission
SCIL - Vision & Mission SCI 2.0 O Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distr
Slide 18: Journey to 12x Growth in India in last 14 years
Journey to 12x Growth in India in last 14 years Feasibility study to set-up correct business model to + SCI 2.0 Exploration Phase : 2000 – 2009 capture potential in Indian market and start aggressive growth phase Manufacturing JV with New Acquired product - 2000 Chemi Industries 2002 Started EHD (Pu
Slide 19: Formidable Player in the Indian Agrochemicals Space
Formidable Player in the Indian Agrochemicals Space SCI 2.0 Manufacturing Facilities 14 5 Technical 700+ SKUs 1 200+ Brands 25+ Patents 200+ Registrations Grown 12x+ over FY11-24 0 12x 28.4 Rs. Bn Actives r 15,000+ Direct 4 14 1600+ Employees Distributors & 1500+ FDOs# #FDOs - Field Development 60 D
Slide 20: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
0 0 0 0 n t I Diversified & De-risked Portfolio Across the Agro-Chem Value Chain SCI 2.0 Well-Diversified across multiple dimensions I Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to ~50 countries Generics
Slide 21: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network SCI 2.0 O ✓ Strong brand with market leading position across various product categories ✓ Dual brand portfolio can offer products at all price points serving multiple 26 States 60 Depots customer sub-segments 0 00 ✓ In-depth knowledge of own rese
Slide 22: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect MM. 4.• SCI 2.0 ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,500+ Relationship managers connecting to 4.4 million+ farmers throughout crop cycle ✓ Over 200 brands covering max
Slide 23: Digital Marketing Initiatives
Digital Marketing Initiatives 40• SCI 2.0 Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites (9 local languages), engaged with 20 million consumers in FY23 More than 53,000 subscribers r0
Slide 24: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities SCI 2.0 Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~5
Slide 25: R&D: End-to-End Product Development Capabilities
R&D: End-to-End Product Development Capabilities SCI 2.0 ❑ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development; Soil Health Research Laboratory and in-house field trials ❑ R&D Team comprises of 75+ qualif
Slide 26: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) SCI 2.0 Quality Certifications Ensure Consistent product quality and healthy Abiding by SCC Japan’s EHS Policies working environment at manufacturing sites Responsible Care Four Start Export House by Ministry of Commerce and Industry Authorized Economic
Slide 27: Awards & Accolades
Awards & Accolades * SCI 2.0 Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites T Jamnalal Bajaj Award for “Fair Business and Practices” T National Safety Award by Labour Ministry, Government of India for safety performance T Chemexcil Bes
Slide 28: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience SCI 2.0 Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 31 years of experience in corporate laws, foreign investment the
Slide 29: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience 4.• SCI 2.0 Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director ▪ MBA from Vanderbilt University, U.S.A. ▪ MBA from University of Virginia, USA and a and a Master’s degree from Kyoto Bachelor’s degree from the University of Uni
Slide 30: Growth Strategies
Growth Strategies SCI 2.0 GA Continued Investment in R&D and Pipeline a m a a Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • units which would help improve our production processes, Driving operational efficiencies maintaining
Slide 31: Financial Performance & Key Takeaways
Financial Performance & Key Takeaways
Slide 32: Historical Performance Highlights
Historical Performance Highlights + SCI 2.0 Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) c)------ +5% 3,065 3,511 (D' +10% 600 667 +17% 502 2,844 424 2,645 487 475 370 2,228 2,425 345 333 291 205 166 18.4% 19.6% 19.0% 13.7% 16.7% 13.0% FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY
Slide 33: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement 4 SCI 2.0 Particulars (Rs. Crs) FY24 FY23 FY22 FY21 FY20 FY19 Net Revenue from Operations 2,843.9 3,511.0 3,061.2 2,644.9 2,424.8 2,228.4 COGS 1,775.1 2,270.6 1,908.0 1,655.4 1,607.6 1,458.9 Gross Profit 1,068.9 1,240.3 1,153.2 989.5 817.2 769.6 Gross Pro
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet 4.• SCI 2.0 Assets (Rs. Crs) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. Crs) Mar-24 Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Non-Current Assets (A) 640.4 581.2 487.6 367.6 360.6 318.3 EQUITY (A) 2,444.5 2,381.8 1,927.2 1,541.3 1,221.8 1,048.4 Property, P
Slide 35: Consolidated Working Capital Movement
Consolidated Working Capital Movement 4.• SCI 2.0 Particulars (Rs. Crs) Inventory (A) Mar-24 610.4 Mar-23 888.7 Mar-22 937.8 Mar-21 754.4 Mar-20 588.0 3111 Mar-19 680.6 Inventory Days (Inventories/ COGS*365) (i) 126 143 179 166 134 170 Trade Receivables (B) 715.9 946.1 843.1 848.2 849.8 671.0 Trade
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement SCI 2.0 Year ended Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) AL 31-Mar-24 31-Mar-23 AL 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 Net Profit Before Tax 502.9 654.2 575.7 453.3 266.5 259.8 Adjustments for: Non-Cash Items / Other Investme
Slide 37: Key Takeaways
Key Takeaways 40• SCI 2.0 Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management
Slide 38: Annexures
Annexures Glance of various events to bring people together
Slide 39: Glance of various events to bring people together
Glance of various events to bring people together SCI 2.0 4 I SUMITOMO Gift AICAL INDIA LTD AC CE.4 • Mk PliocKto UNtElk CORE pow ) -4 To Cleoce a Olorlola THE Strategic Workshop of senior and SUMITOMO CHEMICAL INDIA LTD. 40, SUMiTOMOCHENICAL INDIA LTD. middle management to deliberate on growth acce
Slide 40: Annual Sales Conference – Sumi Manthan 2024
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Slide 41: Annual Sales Conference – Sumi Manthan 2023
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Slide 42: Annual Distributor Meet – Sumi Bandhan
Annual Distributor Meet – Sumi Bandhan 4.• SCI 2.0 _ _ 4 ... ... .tiaiiii ....._ •L — --.. ---, *--- _ — — _ "' _ ..., . -- I - _-- --=--- -,.-z-.-_,- - --, _.-_-,-_•-rv---- --- • -- _.- ,. , - • -7-- - --- - _wil ___=-- •_,:2.0;#5."-- '-' . SUMI BANDHAN • Toyedn,t.A.:04 g(6114k.4fi.tr.tt 0 ' : • fr
Slide 43: Goal Setting Meet – Bhavnagar 2023
Goal Setting Meet – Bhavnagar 2023 4 SCI 2.0 40 SUMITOMO CHEMICAL INDIA LTD. GOAL SETTING MEET 23-24 JUNE 1-2, 2023 lb. SAROVAR PORTICO 81-1,AVNA(aAR • Be a SAFETY hero score an ACCIDENT zero 4.I • I Our top goal Is safety of our employees and assets. Let's connect to create safe work environment. 1
Slide 44: Goal Setting Meet – Gajod 2023
Goal Setting Meet – Gajod 2023 4.• SCI 2.0 4 ah 4. • - • i• • 9 v Q 0 Q 4 Qe U Q • 0 4 ,1 ir V • A lt, 180 @ iRlo al )0 Wilt( Obeli • vp ; 1 a 0, ..0 - v • r • . v T 10, • • Innovate Nurture Grow 43 www.sumichem.co.in
Slide 45: Goal Setting Meet – Vapi, Silvassa, Tarapur 2022 and 2023
Goal Setting Meet – Vapi, Silvassa, Tarapur 2022 and 2023 4.• SCI 2.0 VO AI e I; • -, -,,to44- ka,••`40-ctr ra .47 loSta4 agG glg egg /y e vou sag',utast ye I CI JOURNEY "SurnlExcellence" • "GOAL SETTING MEET (2022-231' VAPI, SILVASSA, TARAPUR I 4 .00 Togging! Eger/0110 gatfilvilS ? Atk Innovate Nur
Slide 46: SCC senior management India visit – May 2023
SCC senior management India visit – May 2023 SCI 2.0 Pr ia""in,mtrpArn. 0 a gieft / !4`. 4 I I . invochawate COO Age 9 Innovate Nurture Grow 45 www.sumichem.co.in
Slide 47: SCC senior management India visit – June 2022
SCI 2.0 SCC senior management India visit – June 2022 ref. 'sae ificSAS N1711=41i6nIaasisa EST TRANSFORM l• fthcomes • • • • • • • t. • irlikelars • • •• SINESS 2TNERS BUSINESS I SINES$ PARTNERS AEET MEET "NIERS 7 • • • 91AT 1117014/155124 ■ eu.0 -A4 DIAMOND- • NE 4 1 is IEET 46 Innovate Nurture Gro
Slide 48: For further information, please contact
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Sumitomo Chemical India — Q1 FY2025 Earnings Presentation on 6ix