Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q4 FY2023 Earnings Presentation
37 slides from Chemplast Sanmar's earnings presentation, May 16, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
May 16, 2023 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 a copy of Investor Prese
Slide 2: Investor Presentation – Q4 and FY '23
Chemplast Sanmar Ltd Investor Presentation – Q4 and FY ’23
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: Performance Highlights
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Slide 5: Performance Highlights: Q4 & FY '23
Performance Highlights: Q4 & FY ’23 Chemplast Sanmar Limited Rs. Cr Key Highlights Revenues EBITDA PAT • Continuing the trend from December ’22, prices of both Paste PVC and Suspension PVC increased and then remained stable until 20% 9% 11% 3% 5,892 February. This trend reversed from March onwards w
Slide 6: MD's Message
MD’s Message Chemplast Sanmar Limited “Despite a challenging environment this year caused by the run-up in energy prices due to the Russia-Ukraine war, the severe impact on Chinese demand due to their Zero- COVID policy for most part of the year, and rising interest rates across the globe, we closed
Slide 7: Segmental Highlights
Segmental Highlights Chemplast Sanmar Limited Rs. Cr Specialty Chemicals Other Chemicals# Suspension PVC Consolidated -15% +16% -23% -16% 1,272 1,079 740 862 3,880 5,892 4,941 Revenue Breakup 3,000 -38% -27% -38% -37% 418 1,158 1,807 260 230 167 1,147 719 Q4 FY ‘22 Q4 FY ‘23 FY ‘22 FY ‘23 Q4 FY ‘22
Slide 8: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Chemplast Sanmar Limited Rs. Cr Particulars Q4 FY ‘23 Q4 FY ’22 Y-o-Y FY ‘23 FY ‘22 Y-o-Y Revenue from Operations 1,147 1,807 -37% 4,941 5,892 -16% Cost of Goods Sold 747 1,206 3,212 3,715 Employee Cost 39 28 147 120 Other Expenses 263 226 1,114 860 EBITDA 97 346 -
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Chemplast Sanmar Limited Rs. Cr Assets Mar ‘23 Mar ‘22 Equity And Liabilities Mar ‘23 Mar ‘22 Non-Current Assets Equity a) Property, Plant And Equipment 3,124 3,195 a) Equity Share Capital 79 79 b) Capital Work in Progress 402 34 b) Other Equity 1,745 1,592 c) Instruments
Slide 10: Consolidated Cashflow Statement
Consolidated Cashflow Statement Chemplast Sanmar Limited Rs. Cr Particulars Mar ‘23 Mar ‘22 Net Profit Before Tax 172 796 Adjustments for: Non Cash Items / Other Investment or Financial Items 290 420 Operating profit before working capital changes 461 1,216 Changes in working capital (12) (138) Cash
Slide 11: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Chemplast Sanmar Limited Rs. Cr Particulars Q4 FY ‘23 Q4 FY ‘22 Y-o-Y FY ‘23 FY ‘22 Y-o-Y Revenue from Operations 428 649 -34% 2,197 2,012 9% Cost of Goods Sold 178 278 977 702 Employee Cost 27 19 100 77 Other Expenses 191 161 814 606 EBITDA 31 191 -84% 306 628 -51%
Slide 12: Stand-alone Balance Sheet
Stand-alone Balance Sheet Chemplast Sanmar Limited Rs. Cr Assets Mar ‘23 Mar ‘22 Equity and Liabilities Mar ‘23 Mar ‘22 Non-Current Assets Equity a) Property, Plant And Equipment 2,187 2,220 a) Equity Share Capital 79 79 388 27 b) Other Equity 3,865 3,718 b) Capital Work in Progress c) Instruments e
Slide 13: Stand-alone Cashflow Statement
Stand-alone Cashflow Statement Chemplast Sanmar Limited Rs. Cr Particulars Mar ‘23 Mar ‘22 Net Profit Before Tax 167 434 Adjustments for: Non Cash Items / Other Investment or Financial Items 142 194 Operating profit before working capital changes 308 628 Changes in working capital 10 (123) Cash gene
Slide 14: Company Overview
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Slide 15: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… Chemplast Sanmar Limited #1 manufacturer of Specialty Paste PVC resin in #1 manufacturer of S-PVC in South India and 2 nd India largest in India(1) Leading player of custom manufactured #1 manufacturer of Hydrogen Peroxide in chemicals South
Slide 16: With a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar Limited Chemplast Sanmar CCVL (1) Specialty Chemicals Other Chemicals Suspension PVC Specialty Paste PVC Custom Manufacturing Caustic Soda Hydrogen Chloromethanes resin peroxide Irrigation End-user Auto Paper Textile Paper & Textile Park Footwe
Slide 17: The Sanmar Advantage: Paste PVC
1. Paste PVC Chemplast Sanmar Limited Part of specialty chemical division of Chemplast Sanmar. Largest manufacturer of Specialty Paste PVC resin in India • Manufactured at Mettur facility since 1968; 41 ktpa expansion coming up at Cuddalore CSL is the oldest player and one of the only two companies
Slide 18: The Sanmar Advantage: Custom Manufactured Chemicals
2. Custom Manufactured Chemicals Chemplast Sanmar Limited Part of specialty chemical division of Chemplast Sanmar; growing Renowned for our Sustainability, Environmental and Safety rapidly on the back of 15 years of longstanding client relationships stewardship • Quality manufacturing at Berigai fac
Slide 19: The Sanmar Advantage: Caustic Soda, Hydrogen Peroxide, Chloromethanes
3. Caustic Soda | Hydrogen Peroxide | Chloromethanes | Ref. Gas Chemplast Sanmar Limited Part of other chemicals division of Chemplast Sanmar; These complete the integration story of the company Capacity Generated as a joint product in the process of manufacture of chlorine Caustic soda Sold at
Slide 20: The Sanmar Advantage: Suspension PVC
4. Suspension PVC Chemplast Sanmar Limited Part of CCVL (100% subsidiary); Largest manufacturer of S-PVC in South India and second largest in India Strong customer relationships with a diversified dealer/ • Manufactured at Cuddalore facility since 2009 customer network • This facility has a captive
Slide 21: Well Positioned to Capture Growth
Well Positioned to Capture Growth
Slide 22: Well Positioned to Capture Growth
Well Positioned to Capture Growth Chemplast Sanmar Limited • Five decades track record • State-of-the-art manufacturing units at strategic locations • Improving product mix Chemplast Sanmar Limited • High growth industry • Strong focus on sustainability • Committed leadership team with eminent board
Slide 23: Five decades track record
1. Five decades track record Chemplast Sanmar Limited Commencement of Expansion of production Marine terminal facility Capacity expansion: CCVL became a wholly owned manufacturing of PVC capacity of PVC resins to and EDC Plant Paste PVC to 66,000 tpa at Mettur subsidiary of our Company; resins at Me
Slide 24: State-of-the-art Manufacturing Units
2. State-of-the-art Manufacturing Units… Chemplast Sanmar Limited 01 Mettur, Tamil Nadu • The site consist of 4 plants with high degree of integration • Paste PVC – 66 ktpa • Zero liquid discharge facility • Hydrogen Peroxide – 34 ktpa • Sourcing of power from a captive power plant of 48.5 MW • Chlo
Slide 25: High Degree of Backward Integration
… with a High Degree of Backward Integration Chemplast Sanmar Limited Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Imported Coal Caustic Soda Methanol EDC Power Plant Electrolysis Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCI HCI 35 kt Salt
Slide 26: Improving Product Mix
3. Improving Product Mix… Chemplast Sanmar Limited Total Revenue EBITDA Rs. Cr 3,799 5,892 4,941 855# 1,197 468 Currently, Suspension PVC CSL In the long term, once our 34% 34% 39% dominates the sales mix. 46% 52% proposed expansions come 65% However, in terms of on-stream, Specialty vehicle profita
Slide 27: Supported by Various Expansion Initiatives
.. Supported by Various Expansion Initiatives Chemplast Sanmar Limited ~Capex Rs. 360 Crores Rs. 680 Crores Paste PVC Custom Manufacturing 107,000 4,500 41,000 66,000 1,068 Existing Addition Steady state Existing Phase 1 Phase 2 FY ’24 E (FY ‘24) • Setting up a multi-purpose facility in two • Work u
Slide 28: High Growth Industry
4. High Growth Industry… Chemplast Sanmar Limited Products Paste PVC Suspension PVC Custom Manufacturing • India heavily import dependent • India set to outpace global Agro-CMC • India heavily import dependent • Demand growing at a fair clip market - AIs and advanced Key • Enough headroom to grow –
Slide 29: CSL's unique position to capitalize on it
… with CSL’s unique position to capitalize on it Chemplast Sanmar Limited Technology not available Leverage Existing Infra on License Owns vacant industrial land and 01 other infrastructure for future leg Paste PVC manufacturing technology is closely of expansion guarded and is not available on lice
Slide 30: Strong Focus on Sustainability
5. Strong Focus on Sustainability… Chemplast Sanmar Limited Environment • Harmonious relationship with Friendly Practices Health & Safety Measures neighboring communities • Zero liquid discharge policy • Transport safety - Installation • Desalination plants at coastal of speed control & safety • Rec
Slide 31: Various awards & recognitions
… with various awards & recognitions Chemplast Sanmar Limited Accreditations Key Awards Sword of Sword of Honor ECOVADIS SILVER Star Award from Honor National Safety Council British Safety MEDAL British Safety Council Council Safety Safety 2020, 2021, Cuddalore Mettur Plant 2 Sustainability Award IC
Slide 32: Committed Leadership Team With Eminent Board
6. Committed Leadership Team With Eminent Board Chemplast Sanmar Limited Vijay Sankar Ramkumar Shankar Dr. Krishna Kumar Rangachari Chairman & Non Executive Director Managing Director Deputy Managing Director - Custom Manufactured Chemicals Division N Muralidharan Chandran Ratnaswami Dr. Lakshmi Vij
Slide 33: Historical Financials
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Slide 34: Historical Segmental Highlights
Historical Segmental Highlights Chemplast Sanmar Limited Rs. Cr Specialty Chemicals Other Chemicals Suspension PVC Total Revenue Breakup 1,272 862 3,880 5,892 740 1,079 3,000 4,941 913 2,510 3,799 749 511 1,863 3,123 376 FY ‘20 FY ‘21 FY ‘22 FY ‘23 FY ‘20 FY ‘21 FY ‘22 FY ‘23 FY ‘20 FY ‘21 FY ‘22 FY
Slide 35: Performance Trend
Performance Trend Chemplast Sanmar Limited Revenue EBITDA Rs. Cr 13% 22% 20% 9% Margin 5,892 4,941 1,197 3,799 855 # 3,123 400 468 FY ‘20 FY ‘21 FY ‘22 FY ‘23 FY ‘20 FY ‘21 FY ‘22 FY ‘23 PAT Net Debt 8% 11% 3% 649 2,060 1,459 310 ++ ++ 152 1 FY ‘20 FY ‘21 FY ‘22 FY ‘23 -362 -184 FY ‘20 FY ‘21 FY ‘22
Slide 36: Way Forward
Way Forward Chemplast Sanmar Limited The Company expects margins to improve in Realisations are expected to be under pressure the short-term and sustain over the medium to Caustic soda 4 in the short-term and stabilize thereafter on the Paste PVC 1 long-term driven by the tightness in global back of
Slide 37: Thank You
Company Chemplast Sanmar Ltd. CIN- L24230TN1985PLC011637 Hitesh Jain, Investor Relations grd@sanmargoup.com www.chemplastsanmar.com Investor relations advisor Thank You Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Shikha Puri / Shrikant Sangani shikha.puri@sgapl.net/ shrikant.sang