Slide 1: Investors' Presentation cover letter to stock exchanges
GHCL Limited January 28, 2021 tit11"- ~~- ~ ftnt;1:r ~ ~ 01919 National Stock Exchange of BSE Limited India Limited Corporate Relationship Department, "Exchange Plaza" 151 Floor, New Trading Ring, Rotunda Building, Sandra - Kurla Complex, P.J. Towers, Sandra (E), Mumbai - 400 051 Dalal Street, Fort,
Slide 2: GHCL Limited Q3 & 9M FY21 Investor Update
DRIVING EXCELLENCE GHCL LIMITED Q3 & 9M FY21 Investor Update January 2021
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Table of Contents
Table of Contents Quarterly Company Inorganic Chemicals Textiles Update Overview Segment Segment 4 14 21 30 3
Slide 5: Quarterly Update
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Slide 6: Management Commentary
Management Commentary Commenting on the Q3 & 9M FY21 performance, Mr. R. S. Jalan, MD said: “The pandemic has entered a decisive stage, with several vaccines getting approval worldwide and here in India too. The flow of business is getting restored and the broader economy is making appreciable strid
Slide 7: Business Update on COVID-19 Pandemic
Business Update on COVID-19 Pandemic Soda Ash Textile Capacity utilisation back to pre-Covid level Favourable dynamics in Textile business ~95% ~78% Both spinning and home textiles have shown resilient performance driven by positive demand landscape. Q3 FY21 9M FY21 Demand pick up in key end user in
Slide 8: Performance Highlights – Q3 FY21
Performance Highlights – Q3 FY21 Revenue EBITDA PBT PAT Cash Profit ` 809 crore ` 204 crore ` 150 crore ` 111 crore ` 145 crore Q-o-Q 4% 26% 41% 41% 31% Y-o-Y 3%* 15% 26% 9% 9% 7 * Exceptional item of Rs. 9.57 Cr. reported during Q3 FY 20 adjusted in revenue for like to like comparison.
Slide 9: Performance Highlights – 9M FY21
Performance Highlights – 9M FY21 Y-o-Y Revenues EBITDA PBT PAT Cash Profit ` 2,028 crore ` 451 crore ` 279 crore ` 206 crore ` 306 crore 20%* 25% 34% 37% 28% Segment-wise Revenue break-up** Domestic : Exports Revenue break-up** Exports, Textiles, 18% 33% Inorganic Chemicals, Domestic, 67% 82% 8 * Ex
Slide 10: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q3 FY21 Q3 FY20 Y-o-Y Q2 FY21 Q-o-Q 9M FY21 9M FY20 Y-o-Y Revenue 809 834* (3)% 779 4% 2,028 2,539* (20)% Operating Expenses 605 657 (8)% 617 (2)% 1,577 1,937 (19)% EBITDA 204 177 15% 162 26% 451 602 (25)% EBITDA Margin 25.3% 21.2% 4.1% 20.8% 4.5% 2
Slide 11: Q3 FY21 Segment Highlights – Inorganic Chemicals
Q3 FY21 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Inorganic Chemicals – Quarterly Trend Particulars Q3 FY21 Q3 FY20 Y-o-Y Q2 FY21 Q-o-Q Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue 528 549 (4)% 482 10% 549 519 528 31.2% 482 EBITDA 148 157 (6)% 119 25% 28.6% 346 24.6% 28.0% 23.0% E
Slide 12: Q3 FY21 Segment Highlights – Textiles
Q3 FY21 Segment Highlights – Textiles (Rs. In Crore) Textile – Quarterly Trend Particulars Q3 FY21 Q3 FY20 Y-o-Y Q2 FY21 Q-o-Q Revenue (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue 280 285* (2)% 297 (6)% 285 29714.7% 280 20.1% EBITDA 56 20 183% 44 30% 214 EBITDA % 20.1% 7.0% 13.1% 14.7% 5.4% 7.0% 94 56
Slide 13: Efficient Capital Allocation (9M FY21) & Key Ratios
Efficient Capital Allocation (9M FY21) & Key Ratios Cash Profit Repayment (Net of Taxes) of Debt ` 306 crore Rs. ` 419 crore 484 cr. Release of working capital Growth Capex ` 178 crore Generated Cash inflows ` 65 crore Key Ratios Rs. 821 cr. Rs. 783 cr. 0.33x 14%* 12%* Gross Debt Net Debt Net Debt/E
Slide 14: Demerger of the Textiles business of GHCL
Demerger of the Textiles business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Textiles business of GHCL will be demerged into a Focused separate Company growth Shareholders of GHCL will be allotted shares in the new company in the swap ratio of 1:1, one share of
Slide 15: Company Overview
Company Overview 14
Slide 16: GHCL – An Introduction
GHCL – An Introduction Best-in-class •Operations management •CAPEX planning and execution •Financial management 2nd Largest manufacturer of Soda Ash in India, with 25% market share •Focused management approach 11.00 45 1.85 •Strategy led by professional management team Lac MT MN MT Textile Lac Soda
Slide 17: GHCL Overview
GHCL Overview 3 decades of Indian Leading soda ash player in Manufacturing experience India Professionally managed Listed on 2 premier stock workforce exchanges of India Focus to emerge as a Business Philosophy of sustainable business Inclusive growth of all organization stakeholders 16
Slide 18: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA which was further increased to 5.25 Lakh MTPA 1988-2000 Commenced Edible Salt Production and Launched ‘Sapan’ salt Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequentl
Slide 19: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Mr. Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Textiles) Justice (Rtd.) Ravindra Singh Dr. Manoj Vaish Mrs. Vijaylaxmi Joshi R S Jalan Managing Director (In
Slide 20: Core Values at forefront
Core Values at forefront GHCL is an unique work place which is dotted with its Core Values, defining its culture. Every employee in the Company is expected to imbibe its Core Values and interact within the business ecosystem with all its stakeholders accordingly. Here we have established the l
Slide 21: Strong Institutional & HNI Holding – ~42%
Strong Institutional & HNI Holding – ~42% Mutual Funds Promoters & 17.77% Promoters Group 19.26% MF holding has Foreign Portfolio Investors increased to 14.69% 17.77% in Dec-20 From 16.72% in Mar-20. Insurance Companies / Financial Institutions / Banks Non Institutional Holding 3.56% (Incl. Corporat
Slide 22: Inorganic Chemicals
Inorganic Chemicals 21
Slide 23: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 24: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT Soda Ash Market Outlook World Soda Ash markets witnessed some improvement, though overall demand remains far from normal and subdued with dip in EUROPE prices in most geographies. CAPACITY: 14.5 MMT China: Mark
Slide 25: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Market Share Domestic Demand Concentration 25% 27% 23% 29% 20% 28% 19% 15% 5% 9% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for FY19 (Source : IMA) Domestic Demand & Growth Trend (CAGR Growth of 5% during
Slide 26: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Scenario Historically, no mismatches in Demand supply as supply always followed demand globally Visibility of Earnings Soda Ash business has consistently performed well with steady realizations and margins Excellence in E
Slide 27: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 26
Slide 28: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Specialization and experience in manufacturing of around a decade Doubled capacity from 30,000 to 60,000 MT in December 2017 Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire Extinguishers,
Slide 29: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase could be a game changer Animal Feed Chemicals 28
Slide 30: Marquee Clients
Marquee Clients eS HNG GUJARAT BOROSIL i LIMITED @FENA SAINT-GOBAIN GOLD = PLUS : \ . : @ BD solhy ssvorsomen soe Feo ate : Piramal ii Sn : Glass : HINDUSTAN ZINC
Slide 31: Textiles Segment
Textiles Segment
Slide 32: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Sustainability Traceability Exceeding Innovation Expectation 31
Slide 33: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain 1.85 Lacs Spindles, 3,320 Rotors, 5,760 TFO Drums, 5 Air Jet Spinning Machines 12 Mn Meters 45 Mn Meters 30 Mn Meters Bed Sheets & Spinning Weaving Fabric Processing Cut & Sew Made-up’s Also sold in Sold in Market Market Spi
Slide 34: Marquee Clients
Marquee Clients ° > Revman lntemnationa BED BATH KOHLS uz BED BATHS HBC SainsburyS = amazoncom sl, “. ave Walmart.com
Slide 35: Reinventing the to
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL 34
Slide 36: Focus on driving profitable growth
Focus on driving profitable growth Soda Consumer Ash Products Textiles Modular, phase-wise capex Expanding product to give sustained volume portfolio and growth geographic footprint remains the key Emphasis on high efficiency objective in operations Continuing to drive performance Cash flo
Slide 37: Awards & Recognitions
Awards & Recognitions Referred as Great Place to 4 Notch Upgrades in last 4 years Mine Award SIMA Technofacts Award work in four consecutive GHCL Limestones Mines received GHCL Yarn division received SIMA years of participation Mine award under A2 category at Technofacts Award at the 13th CEO 26th M
Slide 38: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The Company has For more information please visit us at www.ghcl.co.in established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segments. In chemicals, the Company Contact
Slide 39: Thank You
Thank You 38