Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q1 FY22 Earnings Presentation
24 slides from Aarti Industries's earnings presentation, Aug 9, 2021
Slide 1: Cover letter to stock exchanges
August 9, 2021 To, Listing/Complianpce 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 CODE –524208 Bandra (E), Mumbai – 400 051
Slide 2: Q1 FY22 Results Presentation
AARTI INDUSTRIES LIMITED Q1 FY22 Results Presentation 09th August 2021
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 1 | At a glance 2 | Quarterly and Annual performance 3 | Growth Plan: Projects & Growth Estimates 3
Slide 5: Company Overview
Company Overview Overview Key Metrics A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost optimization 200+ 400+ 700+ Global Domestic Established by first generation technocrats in 1984 Products Customers Customers Pharma operat
Slide 6: Key Strengths
Key Strengths Global Player in Benzene based Derivatives with Integrated Operations o Strong/Leadership position in key products and processes o Integrated operations across product chain of Benzene and Toluene o Ability to effectively use co‐products and generate value‐added products Well Diver
Slide 7: Agenda
Agenda 1 | At a glance 2 | Quarterly performance 3 | Growth Plan: Projects & Growth Estimates 6
Slide 8: Chairman's Message
Chairman’s Message Commenting on the performance, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said, “We have started the year on a strong note – with revenues crossing Rs. 1,500 crore and profit after tax at Rs. 165 crore during the first quarter. Both the topline and EBIDTA are h
Slide 9: Q1 FY22 P&L (Consolidated)
Q1 FY22 P&L (Consolidated) Re‐iterated guidance of 25‐35% for FY22 Particulars Y‐o‐Y Q1 FY22 Q1 FY21 Q4 FY21 Finance Costs higher due to M2M impact on (Rs. Crore) (%) Unhedged ECBs‐ arising due to steep depreciation of INR. Gross Income from Operations 1,503 1,035 45.2% 1,347 Strong momentum i
Slide 10: Revenue Performance (Consolidated)
Revenue Performance (Consolidated) Revenue Export CAGR: 12% 2,186 1,977 1,966 1,523 1,596 5,023 4,705 4,621 3,806 3,163 634 1,503 FY17 FY18 FY19 FY20 FY21 Q1 FY22 Speciality Chemicals Pharmaceuticals CAGR: 13% CAGR: 20% 872 4,151 726 756 3,979 3,865 2,985 556 2,569 426 1,263 240 FY17 FY18 FY19 FY20
Slide 11: Quarterly EBIDTA and PAT (Consolidated)
Quarterly EBIDTA and PAT (Consolidated) EBIDTA & EBIDTA% 21.7 20.9 17.6 19.1 19.3 182 254 285 260 314 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 EBIDTA EBIDTA % PAT 82 140 165 136 165 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 PAT Consolidated basis; in Rs. Crore 10
Slide 12: EBIT Performance (Consolidated)
EBIT Performance (Consolidated) EBIT CAGR: 12% 932 952 957 615 663 285 FY17 FY18 FY19 FY20 FY21 Q1 FY22 Speciality Chemicals Pharmaceuticals CAGR: 7% CAGR: 44% 205 819 814 753 566 581 137 113 79 237 48 48 FY17 FY18 FY19 FY20 FY21 Q1 FY22 FY17 FY18 FY19 FY20 FY21 Q1 FY22 Note: For FY17‐21 annual numb
Slide 13: Speciality Chemicals: Quarterly Revenue and EBIT
Speciality Chemicals: Quarterly Revenue and EBIT Speciality Chemicals ‐ Revenue 841 1,109 1,079 1,123 1,263 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue Speciality Chemicals EBIT & EBIT % 20.7 18.7 18.8 15.4 17.1 130 190 224 210 237 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 EBIT EBIT % Consolidated
Slide 14: Q1 FY22 – Speciality Chemicals
Q1 FY22 – Speciality Chemicals Revenue 1263 841 Continued volume expansion reflected in topline growth Revenues also higher due to pass‐on for higher Q1 FY21 Q1 FY22 input costs & logistics costs. Return of demand from established markets EBIT driving improved margins 237 Includes income rec
Slide 15: Pharma Segment: Quarterly Revenue and EBIT
Pharma Segment: Quarterly Revenue and EBIT Pharma ‐ Revenue 194 222 232 224 240 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Revenue Pharma EBIT & EBIT % 23.3 25.5 23.8 21.2 19.8 45 57 55 47 48 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 EBIT EBIT % Consolidated basis; in Rs. Crore 14
Slide 16: Q1 FY22 – Pharma
Q1 FY22 – Pharma Revenue 240 194 Pharma business continues to maintain the growth momentum Margin are lower due to higher inventory of final product, which could not be shipped Q1 FY21 Q1 FY22 due to logistics issue. Business visibility in Pharma is based on higher volume from regulated market
Slide 17: Financials – (Consolidated)
Financials – (Consolidated) Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth 965 977 982 536 524 492 4,705 5,023 4,621 699 3,806 654 316 333 3,163 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Debt Profile D/E Net Debt/EBITDA 2.9 2.4 2.1 1.8 1.7 1.1 1.3 0.9 0
Slide 18: Agenda
Agenda 1 | At a glance 2 | Quarterly and Annual performance 3 | Growth Plan: Projects & Growth Estimates 17
Slide 19: Our Growth Strategy
AARTI INDUSTRIES LIMITED 4 Po Value Chain QO Customer “1, New Value Expansion Collaboration Chains + Scale up of capacities in + Co-development and scale * Extension of process and chemistry existing products up of new products through expertise to enter new value chains + New markets and applicatio
Slide 20: Major Projects: FY19 - FY23
Major Projects: FY19 ‐ FY23 Operationalised by FY21 To be Completed by FY23 USFDA Capacities Expansion Operationalised New Expansion cum Asset underway: Chlorination Unit at Jhagadia. Upgradation for Acid Unit API unit at Tarapur, & at Vapi Intermediates unit at Vapi Operationalized Phase 1 Unit at
Slide 21: Future Growth Projects: FY22-24
Future Growth Projects: FY22‐24 (Driven by R&D & Innovation) Introducing Chloro Toulenes Highlights Value Chain: ● Adding new chemistries and value (Range of products) added products ● 40+ products for Chemical Newer range of Setting up Value Added products ● 50+ products for Pharma Universal & ● EB
Slide 22: Growth Estimates
Growth Estimates Capex FY22‐FY24: ~ 4500 cr – 5000 cr FY27 Growth (over FY21) Turnover: 2.5x-3.5x FY24 Growth EBIT: 3x - 4x (over FY21) PAT: 3x - 4x FY21 Snapshot Turnover: 1.7x -2.0x EBIT: 1.7x - 2.0x Turnover: 5000 crs PAT: 1.7x – 2.0x EBIT: 750 crs PAT: 523 crs 21
Slide 23: 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 24: Thank You
Thank You