Bodal Chemicals Limited · NSE:BODALCHEM
Bodal Chemicals — H1 FY22 Earnings Presentation
44 slides from Bodal Chemicals's earnings presentation, Oct 29, 2021
Slide 1: Bodal Chemicals Ltd. – Exchange Submission Letter
® Bodal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. By Online Submission Sec/21-22/77 Date: 29-10-2021 To, To, The General Manager, The General Manager, BSE Ltd. National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, Rotunda Building, P.J. Tower, Plot no. C/1, G Bloc
Slide 2: Investor Presentation – October 2021
Bodal Chemicals Limited Investor Presentation – October 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bodal Chemicals 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 secu
Slide 4: Q2 & H1 FY22 Highlights
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Slide 5: Business Highlights
Business Highlights H1 Rs 8,996 mn Rs 1,056 mn Rs 524 mn FY22 Revenue EBITDA PAT • Consolidated Total Revenue for the H1FY22 stood at Rs 8,996 mn, which is highest ever half year performance for the company. This growth was primarily driven by rising demand from the end-user industry and structural
Slide 6: Performance Highlights
Performance Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 8.7 % 10.7% 3.5% 5.0% Margin 4,715 503 236 Q2FY22 3,143 Performance 273 110 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 2.5% 11.7% -2.1% 5.8% H1FY22 8,996 1,056 524 Performance 4,366 108 -91 H1FY21 H1FY22 H1FY21 H1FY22 H1FY2
Slide 7: Revenue and Geographic Breakup
Performance Highlights H1FY21 H1FY22 Revenue Rs 4,252 mn Revenue Rs 8,817 mn 10% 4% 11% 3% Basic Chemicals 10% 0% 12% Dyestuff Revenue Breakup Dye Intermediates 34% 36% Chlor Alkali 46% TCCA 36% Others Geographic Breakup Domestc 67% 33% 66% 34% Export * On Consolidated basis excluding other non oper
Slide 8: Revenue Breakup and Production Volume
Performance Highlights (Rs in mn) Basic Chemicals Dyestuff Dye Intermediates Chlor Alkali^ TCCA Revenue Breakup 922 3,171 3,139 1,018 224 1,861 1,945 389 473 1,426 1,506 1,617 521 328 999 43 0 0 0 1 Q2’21 Q2’22 H1’21 H1’22 Q2’21 Q2’22 H1’21 H1’22 Q2’21 Q2’22 H1’21 H1’22 Q2’21 Q2’22 H1’21 H1’22 Q2’21
Slide 9: Subsidiaries Performance
Subsidiaries Performance (Rs in mn) SPS BCTPL Sen-er Boya BCL China +41% +39% +53% Revenue 509 42 465 281 361 30 304 48 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 SPS BCTPL Sener Boya Bodal-China Particulars (Rs in mn) H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 Sales 361.0
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Mn) Q2 FY22 Q2 FY21 Y-o-Y% H1 FY22 H1 FY21 Y-o-Y% Revenue from Operation 4,697.1 3,097.4 8,915.2 4,275.5 Other Income 17.5 45.8 81.2 90.6 Total Income 4,714.6 3,143.1 50.0% 8,996.4 4,366.1 106.1% Raw Material Consumed 2,674.4 1,970.9 4,930.9 2
Slide 11: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Mn) Q2 FY22 Q2 FY21 Y-o-Y% H1 FY22 H1 FY21 Y-o-Y% Revenue from Operation 4,313.1 2,828.8 8,181.6 3,930.0 Other Income 33.7 53.5 105.4 108.4 Total Income 4,346.7 2,882.2 50.8% 8,287.0 4,038.3 105.2% Raw Material Consumed 2,364.1 1,834.3 4,425.7 2
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In Mn) Sep-21 Mar-21 Particulars (In Mn) Sep-21 Mar-21 ASSETS Equity & Liabilities Non-current assets 9,097.3 8,768.5 Equity 10,215.5 9,799.1 Property, Plant and Equipment 7,895.1 7,799.9 Equity Share capital 245.0 244.7 Right of use of assets 3.3 4.1 Other eq
Slide 13: Standalone Balance Sheet
Standalone Balance Sheet Particulars (In Mn) Sep-21 Mar-21 Particulars (In Mn) Sep-21 Mar-21 ASSETS Equity & Liabilities Non-current assets 10,021.4 9,741.6 Equity 10,370.3 9,865.3 Property, Plant and Equipment 7,527.1 7,491.0 Equity Share capital 245.0 244.7 Right of use of assets Other equity 10,1
Slide 14: Company Overview
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Slide 15: A Leading Chemical Manufacturer
A Leading Chemical Manufacturer 3 10 Rs. 8,996 Mn Decade Old Organization Manufacturing Facilities H1FY22 Consolidated Revenue 4% 10% Basic Chemicals 3% 12% Dyestuff Dye Intermediates 70+ 10 36% Chlor Alkali Distributors Across India 7 Domestic + 3 Overseas Depots 36% TCCA Others 4% Domestc Export 6
Slide 16: Company Evolution
Company Evolution 1989 1993 - 1994 1997-2004 2006-2010 ▪ Incorporated as JK ▪ Acquired Unit II & Unit III ▪ 1997-Acquired two Units ▪ 2006-Listed on BSE via reverse merger Pharma at Unit II-A ▪ Name changed to Bodal ▪ 2004 -Acquired Unit I & with Dintex Dye Chem (Unit I) Chemicals Pvt. Ltd. Forward
Slide 17: Geographical Footprint
Geographical Footprint ~34% of Total revenue comes from exports 45+ Countries North America Global Presence 2% Europe 12% Rest of Asia Revenue Breakup 19% India Domestic Export 66% 100% 100% 100% 100% 100% South America 2% 56% 59% 67% 66% 69% 44% 41% 33% 34% 31% FY18 FY19 FY20 FY21 H1FY22 Note : Map
Slide 18: Long Standing Clientele
Long Standing Clientele Basic Chemicals Dye Intermediates Dyestuffs 70+ 600+ Distributors Across India Customers 17
Slide 19: Experienced Board & Management Team
Experienced Board & Management Team Mr. Suresh J. Patel Mr. Bhavin S. Patel Mr. Ankit S. Patel Mr. Mayur Padhya Chairman & MD Executive Director Executive Director Chief Financial Officer Experience : 30 years Experience : 17 years Experience : 13 years Experience : 25 years Background : Background
Slide 20: Awards & Certifications
Awards & Certifications Awards Certificates 2005-06 2016-17 ▪ BCL has ISO 9001:2015 and ISO 14001:2015 certifications ▪ Received the prestigious Chemexcil Gold Award for ▪ Highest Self Manufacturing Turnover for Domestic and for their production of Dye intermediates & Dyestuffs. outstanding performa
Slide 21: Product Overview
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Slide 22: Diversified Product Portfolio
Diversified Product Portfolio Existing Products New Products Additions Basic Chemicals Dye Intermediates Dyestuffs Benzene Derivatives Sulphuric Acid Chlor Alkali^ ▪ Sulphuric Acid ▪ Vinyl Sulphone & ▪ Reactive Dyes ▪ MCB ▪ Caustic soda ▪ Sulphuric Acid ▪ Chlorosulphonic Acid Derivatives ▪ Acid Dyes
Slide 23: Manufacturing Value Chain
Manufacturing Value Chain Input Materials Basic Chemicals Dye Intermediates Dyestuffs Trion Chemicals End Use Industry Water Vinyl Sulphone + Derivatives Reactive Dyes Textiles Para Nitro Aniline Ice H Acid Beta Naphthol Steam DASA Sulphuric Acid Power Acid Dyes Leather FC Acid Sulphur Chloro Sulpho
Slide 24: Manufacturing Facilities
Manufacturing Facilities Total 10 10 Depots In-house R&D Lab Total Employees Manufacturing Facilities (Exclusive Distribution Warehouse) ▪ 3 – Ahmedabad, Gujarat ▪ 1 - Ahmedabad, Gujarat ▪ Domestic 1,560+ ▪ 7 - India ▪ 4 - Vadodara, Gujarat ▪ 2 - Vadodara, Gujarat ▪ Contract Labours ~1,500 ▪ 1 - Chi
Slide 25: Our Subsidiaries
Our Subsidiaries (Rs in mn) Company H1FY22 Location Stake Details Name Revenue S P S Processors Private H-Acid - 3,000 MTPA | Limited (SPS) Uttar Pradesh, India 70% Rs 509 mn Vinyl Sulphone - 6,000 MTPA (Expected to commercialize in Q3FY22) Bodal Chemicals Trading Private Limited Gujarat, India 100%
Slide 26: Key Growth Drivers
Key Growth Drivers Dyestuff Expansion TCCA Division Vinyl Sulphone at SPS Turkish entity Sener Boya Acquired 100% stake in Trion Vinyl Sulphone plant of 6,000 Acquired ~ 80% stake to Capacity expansion of Chemicals and amalgamated Dyestuffs by 18,000 MTPA will MTPA capacity at SPS is strengthen the
Slide 27: Our Key Strengths
Our Key Strengths 3 Decades of Presence ✓ Home grown player with deep understanding of Indian & Integrated Business Model global chemicals market ✓ Integrated business model leading to cost competitiveness and protection against commodity cycles In house R&D Facilities ✓ Well- equipped production fa
Slide 28: India's Edge in the Global Chemicals Market
India’s Edge in the Global Chemicals Market Indian Chemical Industry Megatrends Industry (USD bn) ~9% ~11% Structural Shift China +1 Unorganized players in the Dye Intermediates India is emerging as the next alternative 300 and Dyestuffs Industry have been declining supplier for the global market 27
Slide 29: Next Level of Growth
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Slide 30: Capex To Drive Next Level Of Growth
Capex To Drive Next Level Of Growth Capacity Addition (MTPA): Total Capex: Revenue Expected: Commercialisation ~Rs 6,700 mn ~Rs 8,500 mn P.A Expected by Q3FY23 Benzene Downstream ~78,960 Chlor Alkali Products including Sulphuric Acid ~3,40,000 Caustic Soda ~99,000 Greenfield Saykha Total Project Cos
Slide 31: Moving Up The Value Chain With New Chemistries
Moving Up The Value Chain With New Chemistries Sulphur Chain Benzene Chain Chlor Alkali Chain Chlorine Oleum 23% - 65% PNA PNCB Salt & Water Electrolysis Caustic Soda Solution (Power) 2,4 DNCB MPDSA Sulphur Sulphuric Acid Liquid SO3 ONCB Benzene MCB Hydrogen • Sulphuric Acid Captive Consumption MNCB
Slide 32: Capex To Be Completed in FY23
Capex To Be Completed in FY23 Revenue Visibility Chemical Segments FY21 FY22 FY23 FY24 Basic Chemicals 11.0% ✓ ✓ ✓ Dye Intermediates 41.0% ✓ ✓ ✓ Dyestuffs 36.0% ✓ ✓ ✓ Trichloroisocyanuric Acid (TCCA) 0.4% ✓ ✓ ✓ Caustic Soda - ✓^ ✓^ ✓ Sulphuric Acid & Derivatives (New additional capacity) - - ✓* ✓ Be
Slide 33: Way Forward
Way Forward Lower cost of production Capacity rampup Economies of scale New client penetration Long term relationship with customers Ongoing internal efficiencies Superior quality Our Edge Rigorous integration 3+ decades of experience New greenfield expansion Diverse client base Higher focus on B2C
Slide 34: Responsible Corporate
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Slide 35: Environmentally Compliant
Environmentally Compliant Common Treated Effluent Zero Discharge Effluent Spray Effluent Effluent Multiple Effect Solid Waste Discharge Access Plant Location Site (Solid+ Dryer Plant Treatment Plant Treatment Plant, Evaporator Incinerator Plant VECL Cala Liquid+Air) (ESDP) (at GIDC) (MEEP) Lit./Day
Slide 36: Pollution Control Systems
Pollution Control Systems ▪ Treats low load waste water ▪ Clarification ▪ Compliant with GPCB, CPCB norms ▪ Bio- degradation by AIS Effluent Treatment Plant (ETP) ▪ Capacity 500,000 liters / day ▪ Tertiary Poly system ▪ Chemical oxidation ▪ Online monitoring system ▪ Flocculation ▪ Installed world’s
Slide 37: Responding To Critical Issue
Responding To Critical Issue ▪ High costs involved in complying with environmental regulations Moreover, the rising industrial water and power rates are a concern. Key Challenges ▪ Scarcity of water can lead to insufficient supply affecting our production needs. ▪ The Chemical Industry is energy and
Slide 38: CSR Activities
CSR Activities Key Focus Areas ▪ Eradicating hunger, poverty and malnutrition ▪ Promoting healthcare and sanitation including contribution to the Swach Bharat Kosh ▪ Promoting education and enhancement of rural infrastructure ▪ Ensuring environmental sustainability ▪ Providing funds for construction
Slide 39: Financial Highlights
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Slide 40: Financial Highlights
Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 14,369 13,852 2,366 2,495 1,329 1,413 12,449 12,424 2,039 1,219 11,517 1,481 860 1,025 398 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 18.3% 10.4% 10.7% 17.0% 1
Slide 41: Key Ratios
Key Ratios Debt/ Equity (x) Return on Equity(%) Trending lower due to increasing 0.45 35.6% capital expenditure 0.41 17.5% 17.0% 0.17 0.19 0.12 9.2% 4.1% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Return on Capital Employed (%) Net Working Capital Days Trending lower due to increasing capital
Slide 42: Segmental Performance
Segmental Performance Basic Chemical Dyestuffs Dye Intermediates Total Revenue (Rs in mn) Revenue Breakup 1,601 5,324 6,544 13,940 4,808 5,895 12,377 11,477 1,282 1,269 3,993 11,329 1,149 3,533 4,618 4,589 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Basic Chemical
Slide 43: Performance Highlights
Performance Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 13,940 2,477 1,441 12,377 2,311 1,329 1,275 11,926 11,329 11,477 2,085 1,463 901 1,009 483 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 18.7% 17.5% 11.2% 11.4%
Slide 44: Thank You
Thank You Contact Information Company: Investor Relation Advisors: Bodal Chemicals Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – : L24110GJ1986PLC009003 CIN - U74140MH2010PTC204285 Mr. Mayur Padhya Mr. Shrikant Sangani / Ms. Pankti Majithia Chief Financial Officer Email - shrikant.sangani@sgapl.net