Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q2 FY2021 Earnings Presentation
31 slides from Sudarshan Chemical Industries's earnings presentation, Oct 26, 2020
Slide 1: Investor Presentation
SUDARSHAN Investor Presentation
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: COVID-19 Crisis Response Team formed
COVID-19 Crisis Response Team formed A. Protect employees Protect employees and follow all local guidelines B. Manage plant and supply chain G. Preserve real estate readiness to restart Ensure safety of owned real estate assets Understand risk of supply chain Nerve Center disruptions and take action
Slide 4: Last 6 months at a glance
Last 6 months at a glance We were well prepared We got hit by COVID 19 We acted with speed… to tackle the crisis… on our facilities… ▪ First pigment company in India to • Several people tested Covid-19 ▪ Social distancing measures start operations post lockdown positive ▪ Ensuring medical readiness
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: Q2FY21 Performance Highlights - Consolidated Financials
Q2FY21 Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) ➢ Roha plant had to be shut down for 2 66 68 weeks in early July due to Covid-19 positive cases despite following all safety 425 429 standards impacting operations 53 352 ➢ Quarterly
Slide 7: H1FY21 Performance Highlights - Consolidated Financials
H1FY21 Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) ➢ H1 performance impacted by start stop 836 nature of operations in Q1 and early part 129 of Q2 121 781 ➢ EBITDA margin remains steady as strong focus on conversion cost and H1FY21 op
Slide 8: Q2FY21 and H1FY21 Performance Highlights - Pigment Business
Q2FY21 and H1FY21 Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 63 66 400 402 54 ➢ Demand pick up in domestic as end 341 markets in India return to pre-covid level, traction on exports continues Q2FY21 16.3% 15.7% 16.3% ➢ Growth in Non-Special
Slide 9: Revenue trajectory: Coming out of Covid-19 disruption; demand is normalising
Revenue trajectory: Coming out of Covid-19 disruption; demand is normalising H1 FY20 vs H1 FY21, INR Cr H1 FY20 H1 FY21 Total H1 FY20 160 INR 784 Cr Total H1 FY21 120 INR 732 Cr 80 April May June July August September 9
Slide 10: Margin Performance - Consolidated Financials
Margin Performance - Consolidated Financials Gross Margin EBITDA Margin 43.2% 43.0% 44.1% 44.0% 44.2% 15.7% 14.9% 15.0% 15.8% 12.0% Quarterly Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 42.1% 44.1% 15.5% 15.4% Half Yearly H1FY20 H1FY21 H1FY20 H1FY21 Financial results includ
Slide 11: Key Ratios - Consolidated Financials
Key Ratios - Consolidated Financials Return on Capital Employed Current Ratio 1.4 1.3 1.2 14.6% 15.9% 12.8% FY19 FY20 H1FY21 FY19 FY20 H1FY21 Debt to Equity Ratio Earnings per Share* 0.9 0.8 0.7 15.7 11.7 7.2 FY19 FY20 H1FY21 FY19 FY20 H1FY21 * Earnings per share calculated excluding exceptional ite
Slide 12: Outlook
Outlook • Operations have reverted to normalised levels, focus on continuing to have uninterrupted operations - following all COVID-19 precautions and safety measures • Demand pick up is envisaged as the economy opens ups, will expect domestic demand to sustain • Stable raw material scenario, adequa
Slide 13: About Sudarshan
ABOUT SUDARSHAN
Slide 14: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants $223 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 15: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 16: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 17: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Ashish Vij Mr. S. N. Inamdar Mr. Pradeep Rathi Mr. Rajesh Rathi (Whole Time Director) (Non-Executive, (Chairman) (Managing Director) Independent Director) Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani Mr. D. N. Damania (Non
Slide 18: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. JAPAN Sudarshan Mexico S. de R.L de CV. Sudarshan
Slide 19: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 20: Pigments Application - a global $8.6bn market opportunity
Pigments Application - a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 21: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 22: Our Unmatched Technical Capability
Our Unmatched Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and compositio
Slide 23: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 24: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 25: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 26: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERICAL EXCELLENCE ENVIORNMEMNT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practic
Slide 27: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 28: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 29: Shareholder Information
Shareholder Information Share Information (as at 30th September 2020) Shareholding Pattern (as at 30th September 2020) Promoters 42.7% NSE Ticker SUDARSCHEM FIIs and FPIs 8.1% BSE Ticker 506655 Mutual Funds 3.7% Others 45.5% Market Cap (INR mn) 32,648 % free-float 57.34% Sudarshan has outperformed b
Slide 30: Awards And Accolades
Awards And Accolades ‘Dream Company to Work For’ in Global CSR Award 2020 HR Excellence Award 2018 Chemical Sector Platinum Category 1st in Chemicals & Fertilizer Sector World HRD Congress 2017 Global WasteMet Award 2018 DMAI Award for Energy India CSR Award for CSR - Gold Category Conservation Init
Slide 31: Thank You
THANK YOU Investor Relations Team at Sudarshan: Mr. Mandar M. Velankar +91 20 6822 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162, Wellesley Road, Pune, Maharashtra - 411001 31
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