Ghcl Limited · NSE:GHCL
Ghcl — Q1 FY17 Earnings Presentation
23 slides from Ghcl's earnings presentation, June 2016
Slide 1: GHCL Limited Investor Presentation June 2016
We believe – Respect, Trust, Ownership and Integrated Team Work leads to Business Success GHCL Limited Investor Presentation June 2016
Slide 2: Agenda
» Company Overview » Q1 FY17 Financial Highlights » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 3: Business segments overview
Business segments overview Inorganic Chemicals Textiles Leading producer of soda ash in India which find use in Integrated home textile manufacturer in India detergents & glass industries Presence across spinning, weaving, continuous fabric Specializes in manufacturing Sodium Bicarbonate pro
Slide 4: Professional management
Professional management… Managing Director Mr. R. S. Jalan 30+ years experience Unique leadership style with endeared managerial abilities drives all businesses alike Qualified Chartered Accountant, profess deep business understanding and excellent analytical skills CFO & Executive Director Mr.
Slide 5: Committed towards growth of all stakeholders
Committed towards growth of all stakeholders • 35%* Dividend Declared • ESOP Scheme Implemented • Strong Performance, EPS of • Motivated & Engaged Rs. 10 per share for Q1 workforce FY17 compared to Rs. 6 of Q1 FY16 Investors & Employees Lenders Customers Government & Vendors & Society • Rs. 100 Cr D
Slide 6: Q1 FY17 Financial Highlights
» Company Overview » Q1 FY17 Financial Highlights » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 7: Robust year-on-year growth in Q1 FY17
Robust year-on-year growth in Q1 FY17 17% Revenue ` 29% EBITDA ` 231bps EBITDA Margin Rs 734 crore Rs 196 crore 27% 86% Profit Before Tax 67% Profit After Tax Rs. 4 EPS Rs 140 crore Rs 103 crore Rs. 10.25/Share Standalone Financials based on IndAS 7
Slide 8: … with improving financial indicators
… with improving financial indicators BW 500 Ranking 231 303 Net Debt / EBITDA Net Debt / Equity Total Debt (Rs crore) 1.72 ` 1.03 ` 1,180 From 1.90 in Mar’16 From 1.17 in Mar’16 From 1,248 cr in Mar’16 Return on Cash Profit after Cash Return on Equity* tax (Rs crore) Capital Employed* 24% 26% 131 Q
Slide 9: Way forward
Way forward Continue profitable Sweat existing assets Focus on Textile marketing Strengthen balance growth sheet Strengthen presence 1 lakh soda ash Focus on optimally in new geographies Improve debt/ capacity expansion utilizing capacities for home textiles like equity ratio with by FY17; s
Slide 10: Inorganic Chemical Segment
» Company Overview » Q1 FY17 Financial Highlights » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 11: Margin leadership in the industry
Margin leadership in the industry Revenue EBITDA 421 146 23% y-o-y 10% y-o-y 119 Higher Capacity Utilization (91%) 384 Higher Production by 21,500 MT Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Higher Sales by 23,300 MT EBITDA Margin Capacity Utilization 35% 91% Operational Efficiencies Leading to Margin Improv
Slide 12: Leading manufacturer of soda ash with 8.5 L MT capacity
Leading manufacturer of soda ash with 8.5 L MT capacity Key Highlights Clients Capacity of 8.5 Lakh MT (27% of domestic capacity) Highest capacity utilization – 88% (91% in Q1 FY16) Best EBITDA margins in industry Built operational efficiencies – six sigma projects, cost reduction initiative
Slide 13: Soda ash industry overview
Soda ash industry overview Domestic Demand and Supply Unlike Commodity 72 % of demand from North and West India Global Market Indian Market Production: 4% CAGR Production: 4% CAGR Demand: 4% CAGR Demand: 4% CAGR In Million MT (MMT) In Million MT (MMT) 58 3.3 57 55 3.1 3.0 55 54 57 2.8 2.8 2.8 30% 55
Slide 14: Textiles Segment
» Company Overview » Q1 FY17 Financial Highlights » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 15: Consistently improving margins
Consistently improving margins Revenue EBITDA 313 30% y-o-y 50 47% y-o-y 241 34 30% volume growth due to capacity optimization Benefiting from cotton Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 coverage and investment in EBITDA Margin Capacity Utilization (Sheeting) wind turbine lowering the cost 81% 16% 14% 76
Slide 16: Emerging home textiles player
Emerging home textiles player Vertically Integrated Diversified Product Range Presence across the value chain from spinning to processing Sheeting Filled Articles Pillows State-of-the-art home textiles facility at Vapi Sheet Quilted Flat Sheets Pillows Best of plants and equipment source
Slide 17: Geographical spread (exports)
Geographical spread (exports) Canada 5% 12% Europe 72% United States 2% 2% 3% Mexico Israel Saudi Arabia 4% Australia Marquee Home Textile Clients across Globe With continued focus in US Market, target to expand in other geographies like Australia and Europe Plan to realign customer mix and intr
Slide 18: Indian textile industry
Indian textile industry Industry Size Rs. 8,540 Bn ($127Bn) Domestic {73%} Exports {27%} Rs. 6,280 Bn ($94Bn) Rs. 2,260 Bn ($34Bn) Apparel Home Textiles Technical Textiles Apparel Textile [66%] [20%] [14%] [45%] [55%] 2nd Largest Employer in India, Employs > 35 Million Workforce. 14% Contributio
Slide 19: Home textile market overview
Home textile market overview Global Market Global home textile market totals $45Bn Bed linen & bath constitutes $27Bn (60%) Major Exporters to US Market EU 27 Bed Linen Market ROW ROW 10% 10% India Pakistan 10% 43% Pakistan India 17% 48% China 11% China Bangladesh Turkey 25% 11% 15% US Home Textile
Slide 20: Financial Annexure
» Company Overview » Q1 FY17 Financial Highlights » Inorganic Chemical Segment » Textiles Segment » Financial Annexure
Slide 21: Profitability highlights
Profitability highlights In Rs crore Particulars Q1 FY17 Q1 FY16 % Change Sales 734 625 17% Operating Expenses 537 472 EBITDA 196 153 29% EBITDA Margin 26.8% 24.5% 231BPS Depreciation 21 20 5% EBIT 175 133 32% Interest 35 43 -20% Exceptional Items -- 14 -100% Profit Before Tax 140 76 86% Tax 38 14 1
Slide 22: Efficient cash flow management
Efficient cash flow management Cash Profit Rs. 131 Cr Soda Ash : Rs. 49 cr Long Term : Rs. 28 cr Textiles : Rs. 14 cr Short Term: Rs. 40 cr Total : Rs. 63 cr Total : Rs. 68 cr Standalone Financials 22
Slide 23: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL 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 securities, and