Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Q2 FY24 Earnings Presentation
28 slides from Chemcon Speciality Chemicals's earnings presentation, Nov 8, 2023
Slide 1: Exchange filing cover letter under Regulation 30
November 8, 2023 To, To, BSE Limited National Stock Exchange of India Limited Listing Compliance & Legal Regulatory Listing & Compliance Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra East, Mumbai 400 051 Stock Code: 543233 Stock Symbol: CHEMCO
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – November 2023
Chemcon Speciality Chemicals Limited Investor Presentation – November 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemcon Speciality Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q2 & H1 FY24 Performance Highlights
Q2 & H1 FY24 Performance Highlights
Slide 5: Q2 FY24 Performance Highlights
Q2 FY24 Performance Highlights “In the first half of financial year, we were able to register 5% growth on YoY basis with the total revenue of Rs 155 Crores. However, profitability remained under pressure due to pricing headwind and sluggish demand from end user industries. Organic chemicals have be
Slide 6: Financial Highlights (Q2 FY24)
Financial Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 79.3 75.2 9.6 7.8 8.3 7.7 5.9 5.9 57.9 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q1 FY24 Q2 FY24 Geographic-Wise (%) Business-wise (%) Sales Volume (MT) 100% 100% 100% 2,851 1% 3% 2% 2,466 Others 100% 100% 100% 28
Slide 7: Financial Highlights (H1 FY24)
Financial Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 147.3 154.5 43.1 33.3 16.1 11.8 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Geographic-Wise (%) Business-wise (%) Sales Volume (MT) 100% 100% 5,316 100% 100% 1% 3% 4,775 Others 29% 30% Inorganic Chemicals 43% 2,918 Inorgani
Slide 8: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q2 FY24 Q2 FY23 Y-o-Y H1 FY24 H1 FY23 Y-o-Y Revenue from Operations 75.2 57.9 29.8% 154.5 147.3 4.9% Cost of Goods Sold 53.5 35.0 113.3 73.2 Employee Cost 5.0 4.9 9.0 10.6 Other Expenses 8.4 8.4 16.0 20.4 EBITDA 8.3 9.6 -13.2% 16.1 43.1 -62.6% EBITDA Mar
Slide 9: Balance Sheet
Balance Sheet ASSETS (Rs. Crs) Sept-23 Mar-23 EQUITY AND LIABILITIES Sept-23 Mar-23 Non-Current Assets EQUITY AND LIABILITIES Equity a) Property, Plant And Equipment 138.3 141.4 a) Equity Share Capital 36.6 36.6 b) Capital Work in Progress 22.5 13.6 b) Other Equity 432.5 420.7 c) Right Of Use Asset
Slide 10: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Crs.) Sept-23 Sept-22 Net Profit Before Tax 16.0 44.7 Adjustments for: Non Cash Items / Other Investment or Financial Items 0.5 -1.0 Operating profit before working capital changes 16.5 43.7 Changes in working capital -22.2 -32.2 Cash generated from Operations -5
Slide 11: Company Overview
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Slide 12: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality Chemicals 3rd Largest Manufacturer of HMDS Worldwide An ISO 9001:2015 and ISO 14001:2015 Certified Company Largest Manufacturer of CMIC worldwide Business Verticals: Organic Chemicals and Inorganic Ch
Slide 13: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15-16 » Company was » First sale of few » Commenced HMDS » First export shipment of » First sale of CMIC » First sale of Calcium incorporated as chemical products Business in 2001 HMDS Bromide (Solution) Gujarat Quinone • Pyridine Private Limited Hydrobromi
Slide 14: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » Japan America » United Arab FY23 Export Contribution*: » Italy Emirates ~59% » South Korea » Germany » Russia » Spain » People’s Republic of » Thailand China » Malaysia Over Two Decades of • Manufacturing Well Equipped to Seiz
Slide 15: Entry Barriers
Entry Barriers Complex Chemistry Stringent Impurity Measure » The involvement of complex chemistry in » Our processes and products are subject to, and the manufacture of the Products, which is measured against, high quality standards and difficult to commercialize on a large scale stringent impurity
Slide 16: Key Long-Term Relationships
Key Long-Term Relationships Organic Chemicals Inorganic Chemicals Shree Radha CC Gran Limited Overseas Liability Company Longstanding New Product New Customer Strong Base Clients Development Reach Major customers Leading to increase Few customers age Well equipped to Top 5 customers Top 10 customers
Slide 17: Moving up the Value Chain
Moving up the Value Chain Commenced Bromobenzene business in FY15 Revenue FY23 Revenue 2023 Business Rs 303 Crs Rs 64 Crs Commenced Bromide business in 2015 Organic Rs 46 Crs Rs 185 Crs Chemicals Commenced CMIC business in 2014 Inorganic Rs 13 Crs Rs 107 Crs Chemicals Commenced HMDS business in 2001
Slide 18: Key Certifications
Key Certifications Key Certificates R&D Environment In-house laboratory to test Complying All Environment Laws » Raw materials procured » The Environment (Protection) Act, 1986 » New Products & Innovation » Water Prevention and Control of Pollution Act » Final products testing at the various stages
Slide 19: Product Overview
Product Overview
Slide 20: Product Portfolio
Product Portfolio Organic Chemicals Inorganic Chemicals HMDS CMIC Bromobenzene Bromides HMDS ▪ HMDS, an organosilicon ▪ CMIC is an antiviral drug ▪ Bromobenzene, is a clear, ▪ Oilwell Completion Chemicals compound, is a reagent and a intermediate product, which is a colourless or pale-yellow liquid.
Slide 21: Manufacturing Facilities
Manufacturing Facilities Located at Manjusar near Installed Capacity Vadodara, Gujarat Sr No Product categories Key Products (MTPA) 9 Operational Plants 1 HMDS, CMIC, Bromobenzene and other ancillary products 10,800 2 Proposed Expansion Plant 2 Organic Chemicals Proposed P-10 Capacity FY24e under pr
Slide 22: Located at Manjusar near Vadodara, Gujarat
Located at Manjusar near Vadodara, Gujarat 21
Slide 23: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We plan to add additional manufacturing capacity P10 unit by end of FY24 and P11 » Aims to capitalize on the potential growth of Organic Chemicals in India and to unit by FY25. These additional capacity will manufacture organic chemicals substi
Slide 24: Way Forward
Way Forward Healthy Growth in Exploring Moderate Growth in Opportunities in Organic Chemicals Inorganic Chemicals New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 23
Slide 25: Financial Highlights
Financial Highlights
Slide 26: Financial Trends
Financial Trends Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 303.3 302.9 81.1 81.6 62.8 262.1 257.1 70.3 70.7 56.4 55.1 243.5 66.1 48.9 43.0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Geographic-Wise (%) Business-wise (%) Sales Volume (MT) Others Inorganic Org
Slide 27: Key Ratios
Key Ratios Fixed Asset Net Debt/ equity (x) Turnover(x) 0.35 7.7 0.31 5.5 0.15 3.7 3.2 0.09 2.1 0.01 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ROCE (%) ROE (%) 49% 45% 35% 34% 21% 19% 16% 15% 15% 12% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 26
Slide 28: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – L24231GJ1988PLC011652 Mr. Rajesh Gandhi - CFO Email – rajesh@cscpl.com www.cscpl.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shrikant Sangani / Ms. Shaily Patwa Email - shrikant.sangani@sgapl.net/ shaily.p@sgapl.net +91 96
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