Deepak Fertilisers And Petrochemicals Corporation Ltd. · NSE:DEEPAKFERT
Deepak Fertilisers And Petrochemicals — IIFL Global Investors' Conference 2023
30 slides from Deepak Fertilisers And Petrochemicals's conference presentation, Feb 15, 2023
Slide 1: Intimation of Analyst/Investor Meet cover letter
15th February, 2023 The Secretary Listing Department BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra - Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 BSE Code: 500645 NSE Code: DEEPAKFERT Subject: Intimation of Sche
Slide 2: Corporate Presentation February 2023
(BSE: 500645; NSE: DEEPAKFERT) Corporate Presentation February 2023 MINING CHEMICALS INDUSTRIAL CHEMICALS CROP NUTRITION
Slide 3: Business Overview
Business Overview 2 Participating in the country’s growth story through serving critical sectors of the economy such as agriculture, pharmaceuticals, mining, infrastructure, health and hygiene, among others Domestic Market Share Industrial CNA: ~60% Chemicals DNA: ~30% (IC) Only Largest Leading Indi
Slide 4: Key Products
Business Overview 3 A Multi-product, Multi-segment player catering to wide range of core segments of the Indian Economy Diversified Product Offerings catering to strategic sectors of Indian economy Revenue Share (%) Industrial Chemicals Crop Nutrition Technical Ammonium Nitrate FY22: Rs. 7,633 Cr Re
Slide 5: Strategically located to cater to Agricultural and Industrial Heartlands of India
Business Overview 4 Strategically located to cater to Agricultural and Industrial Heartlands of India Dahej, Gujarat Panipat, Haryana Capacity (KMTPA) Geographic Advantage Capacity (KMTPA) Geographic Advantage • DNA: 149 • Major customers of • Bensulf: 28 • Oil-seed growing belts of • CNA: 92 nitroa
Slide 6: Quarterly Operating Margins improved from 9% to 17%
Business Overview 5 Quarterly Operating Margins improved from 9% to 17% between Q3 FY20 – Q3 FY23 High level of Integration and Fungibility in Upstream – Downstream Operations Operating Revenue (Rs. Cr) Refinery Grade Muriate of Natural Gas Sulphur Propylene Potash 2,755 1,956 IPA Methanol Ammonia N
Slide 7: Mining Chemicals Business
Mining Chemicals Business 6 Partner for delivering value through Last Mile Execution Excellence, using Specialty Products and Customized Solutions, to the Mining and Infrastructure sectors of India Only producer of solid Ranked amongst the top 5 grade of TAN (explosive India’s largest TAN Commands 4
Slide 8: Strong growth in multiple core sectors of the economy
Mining Chemicals Business 7 Strong growth in multiple core sectors of the economy (coal/ mineral mining and infrastructure) would keep the demand strong while global supply would remain crunched Strategically located near major mining hubs TAN demand expected to grow at 8-10% CAGR over FY22-30 in Ea
Slide 9: Mining Chemicals growth momentum expected in Q4 FY23
Mining Chemicals Business 8 Growth momentum is expected to continue in Q4 FY23, which typically is the period of peak production for Mining and Infrastructure activities Mining Chemicals (TAN) Revenue Operational Highlights (Manufactured Sales Rs. Cr) • Post Q2 i.e., after monsoon period, the mining
Slide 10: DFPCL is the Largest Manufacturer of Nitric Acid in India
Pharma / Speciality Chemicals 9 Business DFPCL is the Largest Manufacturer of Nitric Acid in India • Traditional DNA and SNA domestic markets are well supplied; however, • At current manufacturing capacity, CNA deficit is expected to widen, driven by strong specialized grade demand is expected to su
Slide 11: Diversified And Focused Range of High Value Products
Pharma / Speciality Chemicals 10 Business Diversified And Focused Range of High Value Products Industrial Chemicals Product Portfolio Capacity of Key Products: • IPA: 70 KMTPA • DNA: 889 KMTPA Acids Solvents Specialty Products Dahej, Gujarat • CNA: 231 KMTPA (Acid) • Methanol: 100 KMTPA • Liquid CO2
Slide 12: DFPCL is a Leading Manufacturer and Marketer of IPA in India
Pharma / Speciality Chemicals 11 Business DFPCL is a Leading Manufacturer and Marketer of IPA in India IPA Demand-Supply Market by Applications KMTPA FY22 309 Competitor* 11% 60 KMTPA 220 1% 6% 130 130 7% 220 KMTPA IPA plant FY22 FY27E 75% -90 Pharma -179 Inks and Coatings Chemical Derivatives Suppl
Slide 13: Steel Grade Nitric Acid commercialization planned during Q4 FY23
Pharma / Speciality Chemicals 12 Business Steel Grade Nitric Acid commercialization planned during Q4 FY23 Pharma / Speciality Chemicals (IPA+NA) Operational Highlights (Manufactured Sales Rs. Cr) • Prices of all grades of Nitric Acid remained strong. Extended plant 454 maintenance period at DFPCL D
Slide 14: Product Segments and Market Standing
CNB Business 13 Product Segments and Market Standing Strong Market Position in Multiple Niche Segments, with offering portfolio being shifted from Volume-driven to Value-driven products Ammonium Nitro Phosphate (ANP) • Only producer of ANP Prilled products in India with 325 KMTPA capacity • Well acc
Slide 15: High Efficiency Differentiated Fertiliser Offerings
CNB Business 14 High Efficiency Differentiated Fertiliser Offerings Successful Ramp-up of Smartek – Demonstrated Ability to Develop & Scale up Value Based Solution • Smartek is a unique product in Energy Efficiency Fertilisers category with the proprietary Nutrient Unlock Technology (NUT) which help
Slide 16: Manufacturing Footprint and Market Reach
CNB Business 15 Manufacturing Footprint and Market Reach Well diversified market presence with concentration in horticulture rich states Panipat, Haryana • Operating in 12 states with focus Capacity in five western southern states, ➢ Bensulf 28 KMTPA high concentration in Horticulture • Established
Slide 17: 9M Fertilisers Segment revenues grew by 39% y-o-y
CNB Business 16 9M Fertilisers Segment revenues grew by 39% y-o-y with segment margins of 7% Operational Highlights Fertilisers Revenue (Manufactured Sales Rs. Cr) (NP + NPK + Bensulf) • Q3 Fertilisers Segment revenues grew by 47% y-o-y with segment margins 5% • Delayed withdrawal of South west Mons
Slide 18: Strengthening DFPCL's market share and margins
Transitioning from Commodity to 17 Specialty Strengthening DFPCL’s market share and margins Nitric Acid - Bulk Industry Specific Grades Application Based Industry Specific (Various Grades) (Solar/Steel Grade) Grades Industrial Chemicals Electronic Grade (IC) Industry Specific Downstream – IPA, IPA P
Slide 19: Deepak Fertilisers Announced Demerger of its Mining Chemicals & Fertiliser Businesses
Recent Developments 18 Deepak Fertilisers Announced Demerger of its Mining Chemicals & Fertiliser Businesses Existing Corporate Structure Existing Structure Resultant ResultantCorporate Structure Structure DFPCL DFPCL (Industrial / Pharma Industrial Value Added (Industrial / Pharma Chemicals)Chemica
Slide 20: Aarti Industries offtake term-sheet and ADB funding
Recent Developments 19 Aarti Industries and DFPCL signs a binding term- ADB funds farm efficiency initiative of Smartchem sheet for 20 year Nitric Acid offtake and supply Technologies Limited arrangement valued over Rs.8,000 Cr • The arrangement is a landmark and first of its kind long term Fund Rai
Slide 21: Update on Upcoming Projects
Update on Upcoming Projects 20 Clearly Defined and Well Funded Capex Program • Total planned Investment: Rs 4,350 cr Ammonia • Cost incurred to date: Rs. 3,290 cr • Balance investment: Rs. 1,060 cr • Debt incurred to date: Rs. 1,956 cr • Expected commissioning: Q1 FY24 • Equity Infused: Rs. 1,334 Cr
Slide 22: Ammonia Project – Site Construction Work In Progress
Ammonia Plant Update 21 Ammonia Project – Site Construction Work In Progress (Dec 2022) • Why Ammonia Project: • Security of Ammonia supply for downstream June 2021 Sep 2022 units • Eliminate price volatility of merchant Ammonia, improved consolidated margins • Risk mitigation for all business segme
Slide 23: TAN Project – Site Construction Work In Progress
TAN Plant Update 22 TAN Project – Site Construction Work In Progress (Dec 2022) • Why TAN Project: • Strategically located at ‘Tata SEZ’ at Gopalpur near the major mining hubs to capture domestic demand, substitute imports and take advantage of export opportunities • Increase TAN production capacity
Slide 24: Best Q3 and 9M Financial Performance with High Growth Trajectory
Consolidated Financials: Q3 FY23 23 Best Q3 and 9M Financial Performance with High Growth Trajectory in Place Y-o-Y 9M 9M Y-o-Y INR CR Q3FY23 Q3FY22 (Rs. CR) Mar-21 Mar-22 Sep-23 growth FY23 FY22 growth Operating Revenue 2,755 1,956 40.9% 8,505 5,651 50.5% ST Debt 110 - - LT Debt 2,187 2,321 2,750 O
Slide 25: Robust Performance across segments
Quarterly Performance Trend 24 Robust Performance across segments driven by Demand and Transformation Initiatives Chemicals Business Fertilisers Business Revenues (Rs. Cr) Revenues (Rs. Cr) 1,134 1,615 1,182 769 Q3FY22 Q3 FY23 Q3FY22 Q3 FY23 Segment Profit (Rs. Cr) Segment Profit (Rs. Cr) 451 59 319
Slide 26: Strong balance sheet and healthy financial performance
Consolidated Financial Track Record 25 Strong balance sheet and healthy financial performance Operating Revenue (Rs. Cr) Operating EBITDA (Rs. Cr) EBITDA Margin (%) 6,742 7,663 1356 16.4% 17.7% * 5,808 955 4,685 9.9% 459 464 6.8% FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 * FY2021 FY2022 FY2019 FY202
Slide 27: Capital Market: Building on trust by delivering on expectations
Capital Market Update 26 Capital Market: Building on trust by delivering on expectations Market Cap (Rs. Crores) Total No. of Shareholders Institutional Ownership (%) 23% 21% 11,083 1,82,471 1,93,465 9,026 1,51,462 15% 1,18,723 1,02,200 4,498 6% 5% 858 1,615 31-Dec-19 31-Dec-20 31-Dec-21 30-Sep-22 3
Slide 28: Inclined Towards Overall Societal Development
CSR and Awards 27 Inclined Towards Overall Societal Development DFPCL participated and won in category of ‘Best Zero Trust Security- Manufacturing’ by Quantic India’s Cyber Security Excellence Awards 2022 Provided tolls and equipment’s (Electric Beautician Aspirants undergoing session Pump, Diesel E
Slide 29: Key Investment Highlights
28 Key Investment Highlights 1 Well diversified play on the India growth story 2 Healthy industry dynamics across all segments 3 Market leadership or dominance in most categories 4 Accelerating Commodity to Specialty shift 5 Backward integration - Strengthening value chain 6 Demonstrated track recor
Slide 30: Safe Harbour
Safe Harbour: This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating Deepak Fertilisers and Petrochemicals Corporation limited’s (DFPCL) futur
Deepak Fertilisers and Petrochemicals — IIFL Global Investors' Conference 2023 on 6ix