Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q3 FY22 Earnings Presentation
25 slides from Aarti Industries's earnings presentation, Feb 7, 2022
Slide 1: Aarti Industries filing cover letter to exchanges
»\ ) ) AARTI ye 7) INDUSTRIES LIMITED February 7, 2022 TO, Listing/ Compliance Department To, BSE LTD. Listing/Compliance Department Phiroze Jeejeebhoy Towers, National Stock Exchange of Dalal Street, India Limited Mumbai — 400 001. “Exchange Plaza’, Plot No. C/1, G Block Bandra - Kurla Complex, BSE
Slide 2: Q3 FY22 Results Presentation
AARTI INDUSTRIES LIMITED Q3 FY22 Results Presentation 5th February 2022
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 Company Overview 02 Q3 FY21-22 Financial Results 03 Growth Opportunity & Strategy 3
Slide 5: About AIL
About AIL Overview Key Metrics A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost 200+ 400+ 700+ optimization. Global Customers Domestic Products Pharma operations spanning APIs, intermediates and Xanthene Customers derivatives
Slide 6: Q3 FY22 Highlights
Q3 FY22 Highlights Major Highlights ● Revenue expansion during the quarter includes cost escalations passed on to the customers due to substantial increase in raw material prices as well as fuel and logistics costs. ● Accrual of termination fees in respect of the long-term contract of Rs 631 crores
Slide 7: Chairman's Message
Chairman’s Message Commenting on the performance for Q3 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “During Q3, our core EBITDA of Rs. 356 crore is once again the highest in our operating history, demonstrating the ability of the business to maintain margins by passing
Slide 8: Agenda
Agenda 01 Company Overview 02 Q3 FY21-22 Financial Results 03 Growth Opportunity & Strategy 7
Slide 9: Q3 FY22 P&L - Consolidated
Q3 FY22 P&L - Consolidated Particulars Y-o-Y Q-o-Q Y-o-Y Q3 FY22 Q3 FY21 Q2 FY22 9M FY22 9M FY21 (%) (%) (%) (Rs. Crore) Gross Income from 2,636 1,311 101.1% 1,762 49.6% 5,901 3,676 60.5% Operations Exports (excl Termination 825 548 50.5% 751 9.8% 2,178 1,639 32.9% ▪ Sustained revenue growth driven
Slide 10: Q3 FY22 Highlights (Consolidated)
Q3 FY22 Highlights (Consolidated) Revenues EBIDTA 2,636 966 2,005 1,311 356 285 Q3 FY21 Q3 FY22 (Without Q3 FY22 (With Q3 FY21 Q3 FY22 (without Q3 FY22 (with termination) termination) termination income) termination income) PBT Key Highlights: 858 Re-iterated guidance of 25%-35% growth for FY22.
Slide 11: Quarterly EBITDA & PAT (Consolidated)
Quarterly EBITDA & PAT (Consolidated) EBITDA & EBITDA % 21.7 20.9 19.3 17.6 17.8 285 260 314 310 356 966 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 (without Q3 FY22 (with termination) termination) PAT 772 165 165 176 136 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 10 Amount in INR (Cr)
Slide 12: Speciality Chemical - Revenue & EBIT
Speciality Chemical - Revenue & EBIT Speciality Chemicals - Revenue 2,288 1,657 1,479 1,228 1,063 1,091 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 (without Q3 FY22 (with termination income) termination income) Speciality Chemicals EBIT & EBIT % 21.0 18.9 18.9 16.3 17.1 894 224 206 232 242 284 Q3 FY21 Q
Slide 13: Q3 FY22 Speciality Chemical - Consolidated
Q3 FY22 Speciality Chemical - Consolidated Segment revenue includes long-term contract termination fees of Rs. 631 crores and EBIT includes Revenue Revenue the impact of the same of Rs 611 crores 2288 4990 4,359 1,657 Revenue growth backed by about 85% utilization 2,973 1,063 across most of the
Slide 14: Pharma - Revenue & EBIT
Pharma - Revenue & EBIT Pharma - Revenue 348 276 283 248 256 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Pharma EBIT & EBIT % 22.4 20.0 18.8 14.7 17.2 55 51 52 60 41 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 EBIT EBIT % 13 Amount in INR (Cr)
Slide 15: Q3 FY22 Pharma - Consolidated
Q3 FY22 Pharma - Consolidated Revenue Revenue 348 911 703 248 Higher costs, passed on to the customer, has resulted into increased topline. Trial runs at the new expanded block at Q3 FY21 Q3 FY22 9M FY21 9M FY22 Intermediate facility are underway with EBIT EBIT commissioning targeted in Q4 FY22.
Slide 16: Revenue Performance - Consolidated
Revenue Performance - Consolidated Revenue Export Operating revenues have Deep engagement with global grown on the back of strong CAGR: 12% 2,186 2,178 customers in Speciality volume growth in key 1,977 1,966 Chemicals and Pharma. In 5,901 business segments and better 1,523 1,596 5,023 addition, som
Slide 17: EBIT Performance - Consolidated
EBIT Performance - Consolidated Higher growth relative to revenue EBIT CAGR: 12% highlights value addition delivered 1,522 by AIL 932 952 957 615 663 FY17 FY18 FY19 FY20 FY21 9M FY22 Speciality Chemicals Pharmaceuticals 1,368 CAGR: 7% CAGR: 44% 211 819 814 154 746 137 566 581 113 79 48 FY17 FY18 FY1
Slide 18: Financials - Consolidated
Financials - Consolidated Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth FY17-20 CAGR: 13% FY17-20 CAGR: 14% FY17-20 CAGR: 19% INR (Cr) INR (Cr) INR (Cr) 5,023 965 977 982 536 524 4,705 4,621 492 3,806 654 699 3,163 316 333 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY
Slide 19: Key Strengths
Key Strengths Global Player in Benzene based Derivatives with Integrated Operations • Strong/Leadership position in key products and processes • Integrated operations across product chain of Benzene and Toluene • Ability to effectively use co-products and generate value-added products Well Diversifi
Slide 20: Agenda
Agenda 01 Company Overview 02 Q2 FY21-22 Financial Results 03 Growth Opportunity & Strategy 19
Slide 21: Major Projects: FY19 - FY23
Major Projects: FY19 - FY23 Operationalised by FY21 To be Completed by FY23 USFDA Capacities Expansion Operationalised New Chlorination underway: Expansion cum Asset Unit at Jhagadia. API unit at Tarapur & Intermediates Upgradation for Acid Unit at unit at Vapi Vapi Operationalized Phase 1 Unit at D
Slide 22: Future Growth Projects: FY22-24
Future Growth Projects: FY22-24 (Driven by R&D & Innovation) Introducing Chloro Toulenes Value Chain: Highlights (Range of products) ● Adding new chemistries and Value added products Newer range of ● 40+ products for Chemicals Setting up Universal Value Added products & ● 50+ products for Pharma Mul
Slide 23: Growth Estimates
Growth Estimates Expecting Robust Growth fuelled with aggressive Capex Investment - Capex for FY 22-24: ~ Rs 4,500-5,000 crore Turnover: 2.5x-3.5x - Existing Products: ~ Rs 1500 crore, New Products: Rs 3,000-3,500 crore EBIT: 3x - 4x PAT: 3x - 4x FY27 Growth Turnover: 1.7x -2.0x (over FY21) EBIT: 1.
Slide 24: Contact Us
Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti-industries.com Shiv Muttoo / Shruti Joshi CDR India Tel: +91 98335 57572 / +91 75065 67349 Email: shiv@cdr-indi
Slide 25: Thank You
THANK YOU