Best Agrolife Ltd. · NSE:BESTAGRO
Best Agrolife — Q3 FY23 Earnings Presentation
47 slides from Best Agrolife's earnings presentation, Jan 31, 2023
Slide 1: Intimation of Press Release to BSE
Best Afronfe Limited CIN : L74l 1 ODLI 992PLCI 1 6773 31st January, 2023 The Manager Compliance Department BSE Ltd Phiroze f eeieebhoy Tolr/ers, Dalal Steet, Mumbai-400001 SCRIP CODE: 539650 SCRIP ID: BESTAGRO Sub: Intimation of Press Release Dear Sir/Madam, Pursuant to Regulation 30 of the SEBI (Li
Slide 2: Investor Presentation January 2023
2023 Jan I N V E S TO R P R E S E N TAT I O N
Slide 3: Business & Financial Overview
BUSINESS & FINANCIAL OVERVIEW 03 COMPANY OVERVIEW 13 PRODUCTS & PROCESSES OVERVIEW 21 INDUSTRY OVERVIEW AND OUTLOOK 30 STRATEGIC ASSETS 33 BUSINESS STRATEGY BE S T A G RO LI FE LI MI TE D 42
Slide 4: Financial Overview: New Formulation Patent received
FINANCIAL OVERVIEW 3 bestagrolife.com • New Formulation Patent received – Seedlings India Pvt Ltd wholly- owned subsidiary received a patent valid for 20 years for the first-of-its-kind fungicidal composition of Cyazofamid, Dimethomorph, and Difenoconazole which is going to emerge as a highly effect
Slide 5: Financial overview contents
04 bestagrolife.com ABOUT US Q3 FY23 FINANCIAL RESULTS HIGHLIGHTS YTD FY23 – INCOME STATEMENT OUTLOOK PERFORMANCE OVER THE YEARS - HIGHLIGHTS PERFORMANCE OVER THE YEARS – P&L PERFORMANCE OVER THE YEARS – BALANCE SHEET
Slide 6: Financial Highlights
FINANCIAL OVERVIEW 5 Financial Highlights bestagrolife.com (RS . IN CRORE) Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 REVENUE 327.8 700.3 232.5 1,491.8 901.4 Y-o-Y Growth 41% 65% Q-o-Q Growth -53% EBITDA 58.1 182.5 32.4 306.5 103.7 Y-o-Y Growth 79% 196% Q-o-Q Growth -68% EBITDA % 17.7% 26.1% 13.9% 20.5
Slide 7: Revenue, EBITDA and PAT trends by quarter
FINANCIAL OVERVIEW 6 bestagrolife.com Net Revenue from EBITDA & PAT and Operations EBITDA Margin PAT Margin (RS . IN CRORE) (RS . IN CRORE AND %) (RS . IN CRORE AND %) PAT PAT Margin EBITDA EBITDA Margin 700 19% 140 20.00% 200 30.00% 18.00% 180 120 26% 25.00% 160 16.00% 20% 464 100 14.00% 12% 140 18
Slide 8: Q3 FY23 Income Statement
FINANCIAL OVERVIEW 7 bestagrolife.com (₹ IN CRORE) Y-o-Y Q-o-Q PARTICULARS Q3 FY23 Q3 FY22 Q2 FY23 Growth Growth Q3FY23 Revenue From Operation 327.8 232.5 41% 700.03 (53 %) • Revenue Growth of 41 % Y–O-Y & (53%) Q-o-Q (53%) • EBITDA Growth of 79.1 % Y–O-Y & EBITDA (₹) 58.1 32.43 79.1% 182.5 (68.2 %)
Slide 9: 9M FY23 Income Statement
FINANCIAL OVERVIEW 8 bestagrolife.com (₹ IN CRORE) Y-o-Y PARTICULARS 9M FY23 9M FY22 Growth 9 Months - FY23 Revenue From 1491.8 901.4 65.5 % • Revenue Growth of 65.5 % Y–O-Y Operation • EBITDA Growth of 195.5 % Y–O-Y EBITDA (₹) 306.5 103.7 195.5 % • PAT Growth of 202.2 % Y–O-Y EBITDA (%) 17.7 % 11.5
Slide 10: Outlook and Guidance
9 bestagrolife.com Revenue Growth – 30% EBITDA Margin of 20% 1 2 3 4 Launch of new Maximizing Ramping up & innovative backward Building export distribution & products with integration to business branded products higher margins improve business efficiencies 9M FY 23 Revenue Growth of 65% with improv
Slide 11: Performance Over the Years: Highlights
FINANCIAL OVERVIEW 10 bestagrolife.com Net Revenue from EBITDA & PAT and Net Debt and Operations EBITDA Margin PAT Margin Equity (RS . IN CRORE) (RS . IN CRORE AND %) (RS . IN CRORE AND %) (RS . IN CRORE) 13.4% 350 25.00% 250 12.00% 600 20.50% 300 8.64% 10.00% 500 495 1,316 20.00% 200 250 8.00% 400
Slide 12: Performance Over the Years: P&L
FINANCIAL OVERVIEW 11 bestagrolife.com (₹ IN CRORE) PARTICULARS FY20 FY21 FY 22 9M FY23 Revenue From Operation 758.14 990.75 1316.88 1491.8 • Revenue Growth of 32.91% in FY22 EBITDA (₹) 37.29 84.04 187.15 306.5 EBITDA (%) 4.92% 8.48% 14.22% 20.5 % • EBITDA improved by 574 basic points in FY22 & 630
Slide 13: Performance Over the Years: Balance Sheet
FINANCIAL OVERVIEW 12 bestagrolife.com (₹ IN CRORE) FY 21* FY22 H1 FY 23 EQUITY AND LIABILITIES Share Holders Fund 152.93 329.94 495.23 NON-CURRENT LIABILITIES Long Term Borrowings 72.88 52.18 41.57 • Continued improvement in return Other Liabilities 2.13 17.16 9.48 on capital and equity Total non-c
Slide 14: About Us
013 bestagrolife.com ABOUT US WHAT IS BEST AGROLIFE BAL AT A GLANCE JOURNEY OF THE COMPANY TOP CLIENTELE DISTRIBUTION NETWORK AND BRANDS EXPERIENCED MANAGEMENT WITH DOMAIN KNOWLEDGE MANAGEMENT EXPERTISE
Slide 15: What is Best Agrolife
COMPANY OVERVIEW 014 bestagrolife.com (Wholly Owned Subsidiary) Ranked among B E S T A G RO GR OUP top 15 agrochemical companies in India (Wholly Owned Subsidiary) A BSE-listed company, Best By keeping a farmer-centric BAL is technologically Agrolife (BAL) is among the top 15 approach at the core, B
Slide 16: BAL at a Glance
COMPANY OVERVIEW 015 bestagrolife.com Best Agrolife Limited is among the Top 15 Agrochemical companies in India Best Agrolife happens to be 03 5,200+ 700+ Manufacturing Facilities Distribution Network across India Employees amongst one of the fastest Facilities Agrochemical companies in India. It is
Slide 17: Journey of the Company
COMPANY OVERVIEW 016 2010 2016 bestagrolife.com Formulations Technicals Acquisition • Setting of 1st Formulation Unit • Acquired state-of-the-art Technical manufacturing plant from “Arysta Life Science” a subsidiary of Platform Subsidiary (NYSE: PAH) 2017 2018 Best Brand New Products • Launch of the
Slide 18: Top Clientele
COMPANY OVERVIEW 017 bestagrolife.com
Slide 19: Distribution Network and Brands
COMPANY OVERVIEW 018 bestagrolife.com Management having a A large network of 5,200+ dealers cumulative experience of in India ensures adequate supply more than four decades J&K of the BAL products across states HP 8%% Punjab PB BAL products HR 10% Haryana coverage across India DL 4%% Rajasthan RJ UP
Slide 20: Experienced Management with Domain Knowledge
COMPANY OVERVIEW 019 bestagrolife.com Mr. P . N. Karlerkar Mr. Vimal Alawadhi Mr. Raajan Ailawadhi MANAGING DIRECTOR( Best MANAGING DIRECTOR EXECUTIVE DIRECTOR Crop Science Pvt Ltd ) A true visionary and a A Chemical Engineer from passionate entrepreneur, Mr Vimal Having a Degree of Bachelor UDCT- o
Slide 21: Management Expertise
COMPANY OVERVIEW 20 CA Atul Garg Mr. Sara Narsaiah Mr. Davinder Dogra Mr. Rajesh Bhatia- CHIEF FINANCIAL NATIONAL MARKETING PRESIDENT – GOVT & INSTITUTIONAL bestagrolife.com OFFICER HEAD FINANCE & ACCOUNTS BUSINESS -LEAD • Mr. Atul Garg is a Qualified • Mr Narsaiah is a result- • Mr. Dogra is a qual
Slide 22: Products & Processes Overview
021 bestagrolife.com ABOUT US OUR BEST - SELLING PRODUCTS 12 UPCOMING PRODUCT 13 VALUE CHAIN AND DIVERSE RANGE OF PRODUCTS 14 PRODUCT REGISTRATIONS 17
Slide 23: Best-Selling Products
PRODUCTS AND PROCESSES OVERVIEW 22 bestagrolife.com RONFEN*( Patented 3 way ) CITIGEN ( CTPR Based ) VISTARA ( CTPR Based ) AXEMAN REVEAL ( PYR IP R OX YEN 8%, (CHLORANTRANILIPROLE (CHLORANTRANILIPROLE (DI N O TE F UR A N 15% + (SPIROMESIFEN 22.9% SC) DIA F E N TH IUR ON 18%, and 18.5 % W/W SC) 0.4%
Slide 24: Upcoming Products
PRODUCTS AND PROCESSES OVERVIEW 23 bestagrolife.com WARDEN BESTLINE ZOXIT TUZO A Z O X YS TR OB IN 2 . 5 % + A ZO X YS TR OB IN 1 1 % + TI F LU ZA M IDE 2 4% P YRA C L OS TR O B IN 20 % WG TP M 1 1 . 25 % + TE B U C O N A ZO LE 1 8. 3 %S C TH I A M E TH E X AM 2 5 % F S% FUNGICIDE FUNGICIDE FUNGICID
Slide 25: We Innovate. Produce. Deliver.
PRODUCTS AND PROCESSES OVERVIEW 24 W E I N N O VAT E . P RO D U C E . D E L I V E R . bestagrolife.com • Fi rst-of-its-kind - a three-way insecticidal combination(RONFEN) that effectively controls the sucking pest complex, including whitefly, jassids, aphids, and thrips together in various crops like
Slide 26: Product Patents Received
PRODUCTS AND PROCESSES OVERVIEW 25 W E I N N O VAT E . P RO D U C E . D E L I V E R . bestagrolife.com Patent for herbicidal Composition of Haloxyfop + Imazethapyr + chlorimuron which is a very prominent one-shot solution for an important crop like Soyabean. We plan to launch Pan –India in FY24 with
Slide 27: Manufacturing Process and Value Chain
COMPANY OVERVIEW 26 Manufacturing Process bestagrolife.com • BAL manufactures a wide range of products and each product has its own unique manufacturing process • The Company specialises in the manufacturing processes that mainly include chemical reactions of: (1/3) Hydrogenation Chlorination Reduct
Slide 28: Diverse Range of Products
COMPANY OVERVIEW 27 bestagrolife.com I N S EC TI CID E S Chlorantranili Spiromesifen Clothianidin Emamectin Lambda Ethiprole Dinotefuron Diafenthuron Pymetrozine Quinalphos prole PG R s Paclobutrazol Technicals Cyazofamid Metiram FU N G I CI D ES H E RBI C I D ES Ametryn Penoxsulam Pinoxaden Propaqu
Slide 29: Key Insecticides, Fungicides, Herbicides and PGRs
COMPANY OVERVIEW 28 Key Insecticides: • Ronfen (Pyriproxyfen 8% Key Fungicides: bestagrolife.com +Diafenthiuron 18%+ Dinoteforun 5% ) • Pyraclostrobin 20% • Dinotefuran 20% SG • Azoxystrobin 11% + Tebuconazole 18.3% SC • Pymetrozine 50% • Thiafluzamide 24% • Imidacloprid 70% WG • Azoxystrobin 2 . 5
Slide 30: Product Registrations
PRODUCTS AND PROCESSES OVERVIEW 29 bestagrolife.com Number of registration held Number of registration by BAL Group through International Distribution Partners for exports +413 74 14 Formulations registered Formulations registered Formulations registered for manufacture and for manufacture and sale
Slide 31: Industry Overview and Outlook
30 bestagrolife.com ABOUT US INDUSTRY OVERVIEW AGROCHEMICALS – STRUCTURAL GROWTH DRIVERS
Slide 32: Agrochemical Industry Trends
INDUSTRY OVERVIEW AND OUTLOOK 31 Agrochemical Industry - Trends bestagrolife.com S E G M E N TAT I O N B Y P E S T I C I D E S 18% Fungicides Agrochemical Growing 16% 60% Sector Demand Herbicides Insecticides US$ 4.5 Billion in 2019 to Food security is compelling US$ 6.9 Billion in 2025 with a CAGR
Slide 33: Structural Growth Drivers
INDUSTRY OVERVIEW AND OUTLOOK 32 Domestic industry expected to post 8-10% CAGR in the next few years bestagrolife.com I M PRO VI NG FA R M E C ON OM I C S Govt.’s thrust on doubling farmer’s income by 2022 via (a) higher MSPs for crops (average increase of 35% across crops in the last 5 years); (b)
Slide 34: Strategic Assets
33 bestagrolife.com ABOUT US STRONG MANUFACTURING CAPABILITIES GAJRAULA – UNIT GREATER NOIDA NEW LOCATION – J&K RESEARCH & DEVELOPMENT ENVIRONMENT HEALTH AND SAFETY/ EFFLUENT TREATMENT COMPETITIVE STRENGTHS ACHIEVEMENTS | NEWS UPDATE
Slide 35: Manufacturing Facilities and Quality Control
STRATEGIC ASSETS 34 bestagrolife.com Manufacturing Facilities Quality Control and Assurance 03 50,000 Sq. M. • Quality Compliance - As per ISO 9001:2017,NABL Manufacturing Facilities Total Area in use Accredited labs with 100% quality compliance. • State of the art laboratory 37,000 MTPA 25,000 Sq.
Slide 36: Gajraula Unit
STRATEGIC ASSETS 35 bestagrolife.com • Gajraula location has both Technical & Formulation units but now focused more towards Technicals manufacturing with coming up new formulation unit at Greater Noida. • Capacity Expansion for new products & upgradations . GAJRAULA 5,400 Sq. ft. 35,000 Sq. M. 20,0
Slide 37: Greater Noida Unit
STRATEGIC ASSETS 36 bestagrolife.com • Fully Automated formulation plants for – SC, SG, SE, ZC & GR with Integrated unit for new developments • Further increase in capacities by adding another formulation unit for Herbicides NOIDA 9,060 Sq. ft. 14,200 Sq. M. 5,000 Sq. M. Advanced Formulation Area in
Slide 38: Jammu and Kashmir (Agrico Chemicals)
STRATEGIC ASSETS 37 bestagrolife.com (Agrico Chemicals) JAMMU AND KASHMIR • BAL had acquired Agrico Chemicals through a cash deal in FY 22. Agrico Chemicals is situated at Phase-1, SIDCO Industry Complex, IGC Samba, Jammu & Kashmir. This acquisition of Agrico Chemicals will be beneficial for BAL as
Slide 39: Research & Development Overview
STRATEGIC ASSETS 38 bestagrolife.com Research & Development Overview • R&D Center Synthesis at Gajraula leading to development of quality and sustainable molecules. • Backward integration • Process improvement • Make in India 50+ Pramod N. Karlekar • R&D Center at Noida for new Dedicated R&D Team Pr
Slide 40: Environmental and Regulatory Compliance
STRATEGIC ASSETS 39 bestagrolife.com BAL is regulated by and is in compliant with: 1986 1981 1974 Environmental Air Act Water Act Protection Act (Prevention and (Prevention and Control of Pollution) Control of Pollution) 2008 1948 Hazardous Factories Act Other regulations Waste Rules by the MoEF* an
Slide 41: Competitive Strengths
STRATEGIC ASSETS 40 bestagrolife.com Experienced Relationship with Novel Chemistry 413+ Formulation Promoters and Esteemed Clients Products & Patents & 106+Technical Management Team & Vendors Licenses Integrated In House NABL Wide Distribution Manufacturing Units Accredited QC Labs Network with oppo
Slide 42: Awards and Achievements
STRATEGIC ASSETS 41 bestagrolife.com PMFAI-SML Annual Awards Fastest Growing Company Best Agrolife Limited
Slide 43: Business Strategy
42 bestagrolife.com ABOUT US BUSINESS STRATEGY/PLAN TARGETING EXPORTS MARKETS
Slide 44: Business Strategy
BUSINESS STRATEGY 43 bestagrolife.com 01 02 03 04 05 Farmers First Further Brand R & D focus & Driving Expand Export Development Robust Product operational Business Pipeline efficiencies • Always focusing • Investments in • Focusing on • Maintaining • Establishing export to provide best marketing of
Slide 45: Targeting Export Markets
BUSINESS STRATEGY 44 bestagrolife.com Market Research Off Patent R&D, and Analysis Molecules IP-Creation Key initiatives taken by the Company to enter the exports markets Customer Registration Product Execution Selection Process in Market
Slide 46: Safe Harbor Statement
45 Safe Harbor Statement bestagrolife.com Disclaimer This presentation includes certain forward-looking statements and information including statements concerning the outlook for the business. The statements are based on certain expectations, assumptions, anticipated developments and other factors w
Slide 47: For queries please contact
For queries please contact: EY IR PRACTICE Rahul Thakur T: +91 9833319957 | rahul.thakur@in.ey.com Vikash Verma T: +91 9664009029 |vikash.verma1@in.ey.com DISCLAIMER This presentation includes certain forward looking statements and information including statements concerning the outlook for business