Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q3 FY2019 Earnings Presentation
18 slides from Sharda Cropchem's earnings presentation, January 2019
Slide 1: Sharda Cropchem Limited Q3 & 9M FY19 Results Update
SHARDA CROPCHEM LIMITED Q3 & 9M FY19 RESULTS UPDATE January 2019
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY ❑ Q3 & 9M FY19 Result Highlights ❑ Consolidated Financials ❑ About Us ❑ Business Model ❑ Business Strategy & Outlook 3
Slide 4: Q3 & 9M FY19: Key Highlights
Q3 & 9M FY19: KEY HIGHLIGHTS Q3 FY19 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* PAT & PAT MARGIN 29.4% 17.6% 28.9% 11.0% 3.0% 4.3% 832 44.9 % 4,715 133.2 % 104.7 % 203 3,255 357 99 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 9M FY19 YoY ANALYSIS REVENUES & GROSS MARGIN
Slide 5: Q3 & 9M FY19: Key Highlights
Q3 & 9M FY19: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q3 FY19 Revenues increased by 44.9% YoY from Rs. 3,255 mn to Rs. 4,715 mn. • Region-wise growth YoY – Europe: 22.3%, NAFTA: 75.2%, LATAM: -56.8%, ROW: 152.9%. • Q3 FY19 gross profit increased by 47.9% YoY from Rs. 939 mn to Rs. 1,388 mn. Gross margin
Slide 6: Division Wise Highlights
Q3 & 9M FY19: DIVISION WISE HIGHLIGHTS In Rs Mn Q3 FY19 YoY ANALYSIS: REVENUE BREAKUP 9M FY19 YoY ANALYSIS: REVENUE BREAKUP 4,714 12,385 920 9,447 2,415 3,255 1,555 552 66.6 % 55.3 % 3,794 9,971 2,702 7,893 40.4 % 26.3 % Q3 FY18 Q3 FY19 9M FY18 9M FY19 Agrochemicals Non-Agrochemicals Agrochemicals N
Slide 7: Agrochemical Business
Q3 & 9M FY19: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,702 3,794 7,893 9,971 2,702 3,794 7,893 9,971 6.4% 10.3% 6.8% 9.4% 16.5% 17.9% 4.6% 14.3% 22.9% 29.2% 16.0% 9.8% 42.4% 53.8% 36.4% 39.2% 77.1% 83.5% 82.1% 70.8% 35.2% 42.5% 41.7% 31.4% Q3
Slide 8: Agrochemical Business: Revenue by Product Type
Q3 & 9M FY19: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 25% 27% 9M FY18 46% 9M FY19 49% 29% 24% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues grew by 34.2% YoY in 9M FY19 to Rs 4,887 mn • Fungicides revenues grew b
Slide 9: Non-Agrochemical Business
Q3 & 9M FY19: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 552 920 1,555 2,415 25.3% 20.3% 43.2% 36.6% 7.6% 8.4% 6.0% 3.5% 40.2% 34.2% 28.7% 32.6% 32.1% 31.9% 28.7% 20.6% Q3 FY18 Q3 FY19 9M FY18 9M FY19 Europe NAFTA LATAM RoW • Revenues in Europe grew by 6.8% in Q3 FY19 to Rs 189 m
Slide 10: Working Capital Analysis
Q3 & 9M FY19: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 154 125 109 97 92 92 Q3 FY18 Q3 FY19 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS 9M FY18: 53 9M FY19: 60 * Calculated on average inventory, receivables, creditors 10
Slide 11: Consolidated Profit & Loss Statement
Q3 & 9M FY19: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q3 FY19 Q3 FY18 YOY% 9M FY19 9M FY18 YOY% FY18 Total Revenue 4,714.5 3,254.6 44.9% 12,385.4 9,447.4 31.1% 17,133.9 COGS 3,326.1 2,315.6 43.6% 8,610.4 6,418.1 34.2% 11,437.4 Gross Profit 1,388.4 939.0 47.9% 3,775.0 3,029.3 24.6
Slide 12: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW ▪ Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registrat
Slide 13: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited Ay ° cose 232 13
Slide 14: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 21 % CAGR: 22 % CAGR: 14 % 17,134 19.6% 16.3% 22.2% 22.3% 20.2% 14.1% 11.6% 14.3% 13.6% 11.1% 13,992 12,186 10,611 3,124 3,454 1,904 1,908 7,904 2,714 1,751 1,727 1,111 1,230 1,550 FY14 FY15 FY
Slide 15: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 31ST DEC 2018 % HOLDING MARKET DATA AS ON 23RD DEC 2018 HDFC MF 8.90% Market capitalization (Rs Mn) 27,183 Pinebridge 4.14% Price (Rs.) 301.3 No. of shares outstanding (Mn) 90.2 L & T Mutual Fund 4.02% Face Value (Rs.) 10.0 DSP Blackrock
Slide 16: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 17: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK ▪ Leverage market presence and execution capabilities Forward Integration - ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force ▪ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 18: For Further Queries
FOR FURTHER QUERIES: Mr. Ashish Lodha Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: alodha@shardaintl.com Email: nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9819289131