Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Q1 FY2020 Earnings Presentation
38 slides from Balaji Amines's earnings presentation, Aug 7, 2019
Slide 1: Cover letter to stock exchanges
TEL : 0091-217 -2310824 : 0091-217 -2451500 FAX : 0091-217 -2451521 E-MAIL : info@balajiamines.com WEBSITE : http:/^^ww.balajiamines.com 7th August, 2019 To, The General Manager-Department of The Manager-Listing Department, Corporate Services, National Stock Exchange of India Limited, BSE Limited, "
Slide 2: Balaji Amines Limited Q1FY20 Investor Update Presentation
Balaji Amines Limited Q1FY20 Investor Update Presentation - August 2019
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balaji Amines Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 4: Q1FY20: Performance Highlights
Q1FY20: Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 22.5% 16.0% 13.0% 8.6% 259.9 58.7 33.8 231.4 37.1 20.0 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 3
Slide 5: Q1FY20 Result Update
Q1FY20 Result Update Total volumes stood at 20,149 MT for Q1FY20 as against 21,679 MT in Q1FY19 • Amines volumes stood at 4,779.94 MT • Amines Derivatives volumes stood at 7,853.11 MT • Specialty Chemicals volumes stood at 7,516.36 MT Notable headwinds from pharmaceuticals and agrochemicals sector.
Slide 6: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q1FY20 Q1FY19 Y-o-Y Q4FY19 Q-o-Q FY19 FY18 Revenue from Operations 231.4 259.9 -11.0% 234.8 -1.5% 949.8 861.2 Raw Material 141.4 141.2 127.7 522.2 464.1 Gross Profit 90.1 118.7 -24.1% 107.1 -15.9% 427.6 397.1 Gross Profit Margin 38.9%
Slide 7: About Us
af AMINES About Us
Slide 8: Amines Industry – Small but Critical Industry with growth potential
Amines Industry – Small but Critical Industry with growth potential The size of Aliphatic Amines industry globally is For Indian Amine manufacturers, 45-55% of the $4.1 billion. Globally, the Amine industry is export revenue comes from Europe alone. USA 8 1 oligopolistic with two-three producers cat
Slide 9: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India Largest manufacturer of Aliphatic State-of-the-art manufacturing 25+ Product basket Zero Liquid Discharge Amines in India facilities fully equipped with latest DCS technology facilities Only Company in the World to develop an Indigeno
Slide 10: Our Products are supplied to India's fast-growing Industries
Our Products are supplied to India’s fast-growing Industries INDUSTRY WISE – REVENUE BREAKUP 3% 4% 3% 4% PHARMA AGRO-CHEMICALS ANIMAL FEEDS 3% 2% 4% 51% PAINTS & RESINS OIL & GAS RUBBER CLEANING CHEMICALS 26% Pharma Agrochem Paints & Resins Animal Feeds Oil & Gas Rubber Cleaning Chemicals Water Trea
Slide 11: Highly Experienced Management Team
Highly Experienced Management Team Mr. A. Srinivas Reddy Mr. D. Ram Reddy Mr. A. Pratap Reddy Mr. N. Rajeshwar Reddy Mr. G. Hemanth Reddy Whole Time Director Managing Director Executive Chairman Joint Managing Director Whole Time Director & CFO • Post Graduate in Computer • 30 years of experience ac
Slide 12: Diversified Product Portfolio
Diversified Product Portfolio Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing consumption and • Amine Derivatives are used to make further salts and • Albeit a small and fastest growing segment applications in a Chemically mature Industry such other complex ch
Slide 13: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals The company logos mentioned above are the property of their respective owners and are used here for identification purposes only 12
Slide 14: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Focus towards high-value derivatives and Develop new indigenous technology for specialty chemicals with an aim to move up manufacturing products leading to lowering in the value-chain with vertical integration manufacturing costs & improving
Slide 15: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Balaji Amines In MTPA Balaji Speciality Chemicals In MTPA Installed Future Product Installed Application Areas Product Application Areas Capacity Capacity Capacity Methyl Amine 48,000 Pharma, Agro, Dye & Rubber Ethylenediamine 37,350 Pesticides, Polymer
Slide 16: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities Ukraine, Poland, Norway, Canada Italy, Belgium, Netherlands, France, Spain, Germany, Israel, UK U.S.A. Pakistan Korea Mexico Oman Bangladesh Taiwan Egypt Latin America Brazil South Africa 20.79% of the Total Revenue of Rs. 943 Cr
Slide 17: Awards & Certificates – A Testimony of our capabilities
Awards & Certificates – A Testimony of our capabilities ISO Certificate Two Star Export House ISO Certificate Certificate of Merit – CHEMEXCIL First Award – CHEMEXCIL WHO GMP Certificate REACH Pre-Registration Niryat Shree Award by FIEO Product Innovator of ISO 9001 : 2015 the Year in Chemicals - Ce
Slide 18: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Credit Rating upgraded from IND A+ to IND AA- by India Ratings and Research (Ind-Ra) .” The ratings process highlighted the following factors:- • Ability to maintain healthy and stable EBITDA margins • Ability to pass on raw material price volatility to i
Slide 19: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth Complex Manufacturing High Lead time Capex Heavy Business Complex manufacturing process Niche product offering with high High fixed costs, with fixed asset requiring high levels of lead time in customer approvals turns hovering in the r
Slide 20: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Value-Added Products Applicability in Solvents segment Capex towards high-value derivatives and specialty Solvents account for 80%-90% of the mass chemicals will materialize into higher revenue and enhanced margins 01 utilised in a typical p
Slide 21: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Mega Project Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Status Technology mover advantage for Products Embarking on a Expected to Project cost of Plan to Plan to deploy Significant H
Slide 22: Balaji Speciality Chemicals – To Start Production in FY20
Balaji Speciality Chemicals – To Start Production in FY20 Own 55% in subsidiary Balaji Undertook capex of Rs. 240 crores; loan contribution of Recently received Specialty Chemicals Pvt. Ltd Maharashtra Pollution Control Rs. 120 crores . Expected 01 whose plant is located at 02 revenue at Peak utiliz
Slide 23: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage Environment Conscious New Products Identification of new products and Waste water treatment and minimization of effluents development of latest process by adopting Industry best practices for effluent technologies treatment. Efficiency
Slide 24: Hotel Division
af AMINES Hotel Division
Slide 25: Balaji Sarovar Premiere (Solapur)
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur Balaji Sarovar Premiere (Solapur) 24
Slide 26: Balaji Sarovar Premiere – At a Glance
Balaji Sarovar Premiere – At a Glance • Commenced Operations in October 2013 Hotel Balaji Sarovar Premier is the only 5 star hotel in Solapur • Invested Rs. 110 crore in the Hotel Project via mix of Debt and Equity • Tied up with Sarovar Group for the Management of the Hotel on Management Fee + Reve
Slide 27: Balaji Sarovar Premiere – Operating Matrix
Balaji Sarovar Premiere – Operating Matrix 129 Rooms Constitutes 2.2% Rs. 3,375 ARR of Total Revenue 63% Occupancy Rate Balaji Negligible Routine Capex incurred Sarovar RS. 2,133 RevPAR Premiere Renowned Five Star Hotel In the City of Solapur ARR : Average Room Revenue RevPAR: Revenue per Available
Slide 28: Financial Performance
af AMINES Financial Performance
Slide 29: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +11% 943 +17% 190 193 117 861 +37% 113 153 643 670 82 619 127 102 58 33 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA Margin (%) PAT Margin (%) RoE (%) +406 Bps +534 Bps +705 B
Slide 30: Strong Core RoCE Profile
Strong Core RoCE Profile Particulars (Rs. Crs.) FY19 Standalone Debt 94.6 Standalone Networth 575.0 Total Capital Employed 669.6 ▪ Investments made to the tune of Rs. 98.90 crs. in Subsidiary of Balaji Amines and Rs. 22 crs. in Greenfield project (Unit 4) not Less: Investment in Hotel Balaji Sarovar
Slide 31: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q1FY20 Q1FY19 Y-o-Y Q4FY19 Q-o-Q FY19 FY18 Revenue from Operations 231.4 260.2 -11.1% 234.8 -1.44% 949.8 861.2 Raw Material 141.4 141.2 127.7 522.2 464.1 Gross Profit 90.1 119.0 -24.3% 107.1 -15.90% 427.6 397.1 Gross Profit Margin 38.9
Slide 32: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Mar-19 Mar-18 EQUITY AND LIABILITIES (Rs. Crs.) Mar-19 Mar-18 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 318.4 316.1 (a) Equity Share capital 6.5 6.5 (b) Capital work-in-progress 63.2 66.5 (b) Other equity 568.5 460.6 (c) Intang
Slide 33: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Consolidated P&L (Rs. Cr) FY19 FY18 YoY Revenue from Operations 943.1 861.2 9.5% Raw Material 515.4 464.1 Gross Profit 427.7 397.1 7.7% Gross Profit Margin 45.4% 46.1% Employee Cost 48.3 45.1 Other Expenses 186.0 162.6 EBITDA 193.4 189.5 2.1% EBITDA Margin 20.5% 22
Slide 34: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crores) Mar-19 Mar-18 EQUITY AND LIABILITIES (Rs. Crs.) Mar-19 Mar-18 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 319.7 316.1 (a) Equity Share capital 6.5 6.5 (b) Capital work-in-progress 269.5 123.1 (b) Other equity 567.5 460.6 (c)
Slide 35: Consistent Dividend Payout
Consistent Dividend Payout 140% 130% 110% 100% 60% FY15 FY16 FY17 FY18 FY19 Particulars (Rs. per share) FY15 FY16 FY17 FY18 FY19 Consolidated Book Value 71.0 88.9 111.9 149.7 182.7 Consolidated EPS 11.2 18.9 26.4 34.9 36.4 Dividend 1.2 2.0 2.2 2.6 2.8 34
Slide 36: Moving to Version 2.0
af AMINES Moving to Version 2.0
Slide 37: Balaji Amines Ltd – Version 2.0 - Progressing steadily
Balaji Amines Ltd – Version 2.0 - Progressing steadily Brownfield Capex Phase Subsidiary Expansion Greenfield Expansion Greenfield Capex to be Expansion and commercialization of Manufacturing of new products such completed till 2021 will Moving to higher margin niche 90-acre project in MIDC Chinchol
Slide 38: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Balaji Amines Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L24132MH1988PLC049387 CIN - U74140MH2010PTC204285 Email - info@balajiamines.com Mr. Shogun Jain / Mr. Parin Narichania shogun.jain@sgapl.net / parin.narichani