Ghcl Limited · NSE:GHCL
Ghcl — Q4 FY2017 Earnings Presentation
32 slides from Ghcl's earnings presentation, May 22, 2017
Slide 1: Cover letter to stock exchanges
GHCL Limited _ _ _ _ _ _ _ _ __ May 22, 2017 National Stock Exchange of India SSE Limited Limited 1st Floor, New Trading Ring, "Exchange Plaza" Rotunda Building, Sandra - Kurla Complex, P.J. Towers, Dalal Street, Sandra (E) , Mumbai - 400 051 Fort, Mumbai - 400 001 Fax# 022 26598237/38 (Fax:022 2272
Slide 2: GHCL Limited Investor Presentation May 2017
GHCL LIMITED INVESTOR PRESENTATION MAY 2017 We believe – Respect, Trust, Ownership and Integrated Teamwork lead to Business Success
Slide 3: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL 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 securities, and
Slide 4: Agenda
Agenda 01 Business Overview 02 Business Philosophy 03 Inorganic Chemicals Segment 04 Textiles Segment 05 Financials
Slide 5: Business Overview
Business Overview
Slide 6: Business overview
Business overview Cost leadership in the industry Presence across the value chain Inorganic Chemicals (59%*) Textiles Segment (41%*) Among top 3 soda ash players with Spinning 9.50 MT capacity 1,75,000 Spindles • Catering 1/4th of Indian soda ash 3,340 Rotors demand Weaving/Knitting • Margin leade
Slide 7: Professional management
Professional management RS Jalan Raman Chopra Managing Director CFO & Executive Director Unique leadership style with endeared Spearheading GHCL’s Finance and IT functions. managerial abilities drives all businesses alike. Qualified Chartered Accountant with sharp Qualified Chartered Account
Slide 8: Robust growth with improving profitability
Robust growth with improving profitability Rs Crs Revenue (8% CAGR) EBITDA (19% CAGR) EBITDA Margin 724 636 23.4% 24.3% 2980 20.9% 534 18.2% 2716 433 2550 2375 FY14 FY15 FY16 FY17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Cash Profit (28% CAGR) PAT (49% CAGR) PAT Margin 474 13.0% 373 387 9.4%
Slide 9: And improving return ratios
And improving return ratios Rs Crs Net Debt/Equity ROCE ROE 1.68 22% 21% 1.48 20% 29% 1.24 24% 25% 1.04 15% 14% FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Net Debt/EBITDA Current Ratio Interest Coverage Ratio 2.16 2.24 2.93 4.8 2.42 1.79 1.61 2.02 1.93 3.4 2.74 2.06 FY 1
Slide 10: Delivering on the Promises
Delivering on the Promises • 50% Dividend Proposed (15.27% of PAT) in line with Dividend Policy of 15%-20% on PAT Rolled out last year. • In addition, Upto Rs. 80 crore allocated towards Share buyback • Bought Back 18.72 Lakh Shares till 19th May 2017 – amount spent : Rs. 49 crore • Investment Plan
Slide 11: Business Philosophy
Business Philosophy
Slide 12: Business philosophy going forward
Business philosophy going forward… Robust and Profitable Growth 01 To grow profits at CAGR 20% Focus on Value Systems 02 To create a value systems that defines our Culture Sustainable Inclusive Growth 03 Business Philosophy of “Sustainable Inclusive Growth” involving all the stakeholders
Slide 13: Sustainable Inclusive Growth
Sustainable Inclusive Growth Education Village Sanitation • More than 4500 students being educated • Promoting Tata Water Mission with in 27 villages from pre-school to “1 Day 1 Village Campaign”. graduation • Constructed 5316 toilet units in 66 • Under Vidya Jyot Project, promoting villages. educat
Slide 14: Recognitions
Recognitions 500 Dun & Bradstreet Great Place to Work Frost & Sullivan Top 500 Indian companies India Manufacturing Excellence Certification Awards - 2016 2017 » Moved to 211 Ranking against last » In Survey 2016, GHCL has been » Awarded “SILVER category” in year 246 in Dun & Bradstreet’s certified
Slide 15: Recognitions (Continued)
Recognitions (Continued..) • Our two Spinning units were conferred with prestigious SIMA award for the year 2015-16 for best operating units in south. • One of the Unit in our textile/spinning was ranked 2nd position. Credit Rating Upgraded to A - • Selected out of 100+ Mills across the from BBB +.
Slide 16: Inorganic Chemicals
Inorganic Chemicals
Slide 17: Leading manufacturer of soda ash
Leading manufacturer of soda ash 9.5L MT Cost 90%+ 30%+ Soda cash capacity; leadership Capacity utilization; EBITDA Margins; 25%+ market share Captive sources amongst highest in consistent high of domestic demand of raw material industry margins Captive sources of raw materials Clients – major FMCG/
Slide 18: Other products
Other products Sodium Bicarbonate » Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Import » Used in Cooking, Pharmaceuticals, Fire Extinguishers, pH 16% Tata Chem balancer, and Cleaning agent 52% » Specialization and experience in manufacturing of around a VXL 7% de
Slide 19: Robust financial performance
Robust financial performance Revenue EBITDA Key performance highlights Rs Crs Rs Crs 553 1,751 1,586 1,653 496 446 1,379 » Revenue growth of 21% for Quarter 321 ended March 2017 led by 12% Volume Growth in the quarter 7% Volume Growth for the year (Better than Industry Average) FY 14 FY 15 FY 16
Slide 20: Capacity additions to spur growth
Capacity additions to spur growth Steady capacity additions Phase 1 expansion » Capacity expansion by 1 Lac MT of Soda Ash completed during March FY17 » Completion within timeframe and lower cost 11 * than expected, thus improving ROCE of the investment. 9.75 9.5 8.5 Debottlenecking – By FY18 » Next
Slide 21: Global Soda Ash Scenario
Global Soda Ash Scenario Global Capacity: 67 MMT, Global Production: 57 MMT » Half of the global capacity is present in Europe China. Capacity: 12.00 » Balanced demand supply scenario Production: observed in china last year. 11.00 China » Settled a natural market as south 5.0 Capacity: 32.00 east As
Slide 22: Home Textile Segment
Home Textile Segment
Slide 23: Emerging home textile player
Emerging home textile player Integrated Home Textile Player » State-of-the-art home textiles facility at Vapi with weaving, processing and made ups Best of plants and equipment sourced from Germany and Japan - Beninger, Kuster, Monforts Flexibility to process both cotton and blended fabrics » Be
Slide 24: Diversified product portfolio
Diversified product portfolio Product Range Innovative Products » Sheeting » Filled Articles » Pillows » Perfect fit sheets fit perfectly to the size of the Sheets Quilted Flat Pillows bed Sheets Duvet Shams » Reduces Bed making Comforter Process Bed Skirt Cushions and Comforter »
Slide 25: Global presence in sheeting
Global presence in sheeting Canada 4% 4% Europe 65% United States 22% 3% Others India 2% Australia Marquee home textile clients across the globe * Based on FY17 sales mix
Slide 26: Consistently improving utilization and margins
Consistently improving utilization and margins Rs Crs Revenue EBITDA Key performance highlights 1,229 171 1,063 996 140 964 » Revenue growth of 16% in FY17 led by 112 higher volumes. 87 » EBITDA up by Rs. 32 crore in FY17 (23% YoY growth) FY 14 FY 15 FY 16 FY 17 » EBITDA margins up from 13% to 14% F
Slide 27: Growth to be led by capacity addition
Growth to be led by capacity addition Sheeting Capacity (Mn metres) Phase 1 - Completed » Modernisation of spinning unit along with 45 enhancement of value added spinning capabilities » Investment in cut and sew facility 36 36 36 36 » Wind mill capacity enhanced to 27 MW Phase 2 – By FY 18 » Board a
Slide 28: Financials
Financials
Slide 29: Profit & loss statement
Profit & loss statement Rs. In Crores Particulars FY 16 FY 17 % Change Q4FY16 Q4FY17 %Change Sales 2716 2980 9.5% 690 881 27% Operating Expenses 2080 2256 8.4% 515 696 34% EBITDA 636 724 13.7% 175 185 4.5% EBITDA Margin 23.4 % 24.3 % 0.9% 25.4% 21.0% - 4.4% Depreciation 82 85 4.9% 22 21 9% EBIT 554
Slide 30: Balance sheet
Balance sheet Particulars Mar-16 Mar-17 Change Net fixed & other non current assets (A) 2,151 2,472 321 Current Assets 757 995 238 Less: Current Liabilities 349 443 95 Working Capital (B) 408 552 144 Capital Employed (A+B) 2,559 3,024 465 Share Capital 100 99 -1 Reserves & Surplus 933 1,252 319 Net
Slide 31: Efficient cash flow management
Efficient cash flow management Generated Cash Profits of Increase in Working Rs. 377 Rs. 105 crore Capital of Rs. Payout on Dividend crore borrowings 104 crore and Buyback taken Deposit for Rs. 75 crore Buy Back 23 Crore
Slide 32: For more information please visit us
For more information please visit us at www.ghcl.co.in CIN: L24100GJ1983PLC006513 CIN: U74900MH2014PTC259212 Mr. Raman Chopra Ms. Pooja Dokania rchopra@ghcl.co.in dpooja@stellar-ir.com Mr. Sunil Gupta Mr. Rajeev Menon sgupta@ghcl.co.in mrajeev@stellar-ir.com Mr. Abhishek Chaturvedi abhishekchaturved