Ghcl Limited · NSE:GHCL
Ghcl — Q1 FY20 Earnings Presentation
40 slides from Ghcl's earnings presentation, July 2019
Slide 1: GHCL Limited Q1 FY20 Investor Update
GHCL LIMITED Q1 FY20 Investor Update – July 2019
Slide 2: Safe Harbour
Safe Harbour 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 3: Agenda
Agenda Inorganic Quarterly & Company Textiles Chemicals Annual Update Overview Segment Segment 4 16 25 32 3
Slide 4: Quarterly Update Q1 FY20
Quarterly Update Q1 FY20 4
Slide 5: Management Commentary
Management Commentary A Splendid growth continuing, with 68% PAT growth during the current quarter with Rs.103 crore from Rs.62 crore in Q1 FY19. Commenting on the Q1 FY20 o Inorganic – Benefited from Volume growth and higher realization performance, due to price increase taken in last year. Mr. R
Slide 6: Performance Highlights – Q1 FY20
Performance Highlights – Q1 FY20 Revenues EBITDA Profit Before Tax Profit After Tax 16% 46% 77% 68% ` 879 crore ` 222 crore ` 161 crore ` 103 crore Segment-wise Revenue Domestic : Exports break-up* Revenue break-up* Exports, Textiles, 18% 36% Inorganic Chemicals, Domestic, 64% 82% 6 *Based on FY19 f
Slide 7: Q1 FY20 – Financial Update
Q1 FY20 – Financial Update Revenue (Rs. crore) EBITDA (Rs. crore) Profit After Tax (Rs. crore) 879 222 103 152 757 62 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Segment wise Segment wise • Chemicals – 20% growth • Chemicals – 40% growth • Textile – 10% growth • Textile – 91% growth Q1 FY19 Q1 FY20 7
Slide 8: Profit & loss Statement
Profit & loss Statement Rs. In Crore Particulars Q1 FY20 Q1 FY19 YoY Q4 FY19 QoQ Sales 879 757 16% 915 -4% Operating Expenses 657 604 9% 673 -2% EBITDA 222 152 46% 241 -8% EBITDA Margin 25.2% 20.1% 512 BPS 26.4% -120 BPS Depreciation 31 27 14% 30 4% EBIT 191 125 53% 211 -10% Interest 30 34 -12% 31 -
Slide 9: Q1 FY20 Segment Highlights – Inorganic Chemicals
Q1 FY20 Segment Highlights – Inorganic Chemicals Performance Insights Particulars Q1 FY20 Q1 FY19 YoY Q4 FY19 QoQ Production increased by 40,000 MT in quarter including Brownfield benefit and shutdown impact in corresponding qtr. Net Soda Ash Production 2.49 2.09 19% 2.49 --% (Lac MT) Revenue gr
Slide 10: Q1 FY20 Segment Highlights – Textiles
Q1 FY20 Segment Highlights – Textiles Performance Insights Revenue increased by 10% as compared to Q1FY19, which is due to better realization in Q1 over corresponding last qtr. Particulars Q1 FY20 Q1 FY19 YoY Q4 FY19 QoQ EBITDA Growth – Due to reorganization of customer mix and better Revenue (R
Slide 11: Capital Allocation & Key Ratios
Capital Allocation & Key Ratio’s Generated Cash Profits CAPEX (net of Tax) of Rs.68 crore Key Financial Rs. 142 crore Inorganic Chemicals Rs.58 crore Ratios Textiles (Mainly Spinning)Rs.10 crore SHAREHOLDERS Paid Dividend Rs.59 Crore 20% ROCE* Rs. 2 crore ESOP Equity Issued DEBT 20% ROE* Decrease in
Slide 12: Company Overview
Company Overview 12
Slide 13: GHCL - An Introduction
GHCL - An Introduction 2nd Best in class 11.00 Largest manufacturer of •Operations management Lac MT Soda Ash in •CAPEX planning and execution Soda Ash India, with 25% 90%+ •Financial management capacity market share Capacity utilisation in 45 Soda Ash Day to day management and strategy led by profe
Slide 14: GHCL Overview
GHCL Overview 3 decades of Indian Single largest soda ash Manufacturing plant at one location in experience India Listed on 2 premier Professionally stock exchanges of managed workforce India Focus to emerge as a Business Philosophy of sustainable business Inclusive growth of all organization stakeh
Slide 15: Balanced growth opportunities across businesses
Balanced growth opportunities across businesses Among top 3 soda ash players. Inorganic o Catering 1/4th of Indian soda ash demand o Margin leader in the industry; with highest capacity utilization of 90%+ Chemicals (64 %*) Margin leadership Sodium Bicarbonate of 0.60 Lakh MT in the industry S
Slide 16: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash production capacity increased to Soda Ash capacity increased to 8.5 Lakh 9.75 Lacs MTPA. MTPA Scheduled to Increase Entered Spinning business with 65 K Doubled Sodium bicarbonate capacity to Soda Ash production by spindles subsequently increased to 140 K
Slide 17: Spearheaded by Pre-eminent Professionals
Spearheaded by Pre-eminent Professionals RS Jalan Raman Chopra NN Radia Sunil Bhatnagar Manu Kapur M. Sivabalasubramanian Managing Director CFO & Executive President & COO, President Marketing, President & CEO, CEO, Spinning Director Soda Ash Soda Ash Home Textiles Unique leadership style Spearheadi
Slide 18: Experienced and accomplished Board of Directors
Experienced and accomplished Board of Directors Mr. Sanjay Dalmia (Chairman) Dr. Manoj Vaish (Independent Director) Mr. Anurag Dalmia (Vice Chairman) Mr. K.C. Jani (Independent Director) Mr. Neelabh Dalmia (Director) Mr. Lavanya Rastogi (Independent Director) Mrs. Vijaylaxmi Joshi (Independent Direc
Slide 19: Core values at forefront..
Core values at forefront.. Thoughtful and show regards for another person. GHCL is an unique work place which is dotted with its Core Values, defining its culture. Respect Every employee in the company is expected to imbibe its Core Values and Confidence in interact within the business ecosystem Tru
Slide 20: Strong Institutional & HNI Holding – 37.16%
Strong Institutional & HNI** Holding – 37.16% Institutional Holding – 32.29%, HNI’s**- 4.87% Non-Institutional Holding – 43.97% 20.73% 16.11% 12.75% Foreign Portfolio Mutual Body Corporates Investors Funds 18.87% Promoter & Promoter Group 23.24% 3.43% 4.87% Others Insurance Companies/ HNI’s** Financ
Slide 21: Inorganic Chemicals
Inorganic Chemicals 21
Slide 22: Margin Leadership in Soda Ash
Commanding a leadership in manufacturing of Soda Ash Key Differentiators Single largest Soda ash plant in India at a single location +90% 11.00L MT Best in class productivity Capacity utilization; Soda ash capacity; Highest in industry 25% market share of domestic demand Soda Ash B2B to B2C with sup
Slide 23: Marquee Clients
& Marquee Clients u GUJARAT BOROSIL Hindustan Unilever Limited LIMITED @FENA P&G SAINT-GOBAIN @yPATANJAL FLOAT GLASS Piramal Glass HINDUSTAN ZINC
Slide 24: Global outlook on the soda ash industry
Global outlook on the soda ash industry GLOBAL SIZE: CAPACITY-69 MMT, PRODUCTION-60 MMT EUROPE CAPACITY: 14.5 MMT Global PRODUCTION: 12.0 MMT o Global economic weakness has resulted in softness in Soda Ash market. o China continue to face economic CHINA slowdown. Reported high Soda Ash CAPACITY: 31.
Slide 25: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share Domestic Demand Concentration. Tata West, 15% Import, Chem, North, 23% 20% South, 29% Others, 19% 5% GHCL, Nirma, 25% East, Gujarat, 27% 9% 28% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for
Slide 26: i. <i ron
i. <i ron an aaa SN : CAN ‘ GHCL’s Dense Soda Ash is an important ~~ “2 industrial chemical used in the manufacturing » 3 ; of colourful glass bangles.
Slide 27: Every cloth tells a story...
Every cloth tells a story... And we want to be the part of that story... Our Soda Ash is used in soaps and detergents to improve their cleaning properties.
Slide 28: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Doubled capacity from 30,000 to 60,000 MT in December 2017, Our market share will accordingly go up from current market share of 13% Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire
Slide 29: Inorganic Chemicals – Consumer Products
Inorganic Chemicals – Consumer Products Premium edible Salt Manufacturer in South India Expanding product portfolio i.e. Salt, Honey, Spices and Powder Spices under the brand i-FLO. Ventured into the Premium Honey Category by pioneering the entry of Jujube Honey Under powdered spices categor
Slide 30: Home Textile Segment
Home Textile Segment 30
Slide 31: Sustainability
Sustainability Traceability Innovation Giving Back to Society GHCL's Home Textile 4 Pillar Strategy 31
Slide 32: 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 33: Marquee Clients
& Marquee Clients BED BATHS KOHLS BEZ Revman international Sainsbu rys JcPenney _— Dilllard’s @ Sams Club amazoncom —_— Walmart.com
Slide 34: Less than a tenth of all plastic produced globally is recycled
Less than a tenth of all plastic produced globally is recycled. A vast majority of the rest is dumped in landfills and in the oceans. Small plastic pieces of less than 5 mm size or micro plastics, are major ocean pollutants. They are ingested by aquatic micro organisms which then get into food chain
Slide 35: THE
THE SPIN WIN PocLeectiane ‘51% COMBER NOIL, 49% ORGANIC COTTON NATURLIG Using Comber Nil ino of Cation aay See reduces the consumption of water by bse el ‘orovnd $200 gallons per sel.” 100% ORGANIC COTTON NATURAL, SCOURED DOBBY Global Recycled Standard certified Natural scoured dobby. t No chemical
Slide 36: Reinventing with
Reinventing with Bottle Flake Fibre Yarn Bed sheets DNA Tags Patented technology developed in Fibre to be manufactured and Manufactured and Sold by GHCL association with Applied DNA supplied by Reliance Industries under REKOOP brand Sciences(ADNAS) & GHCL 36
Slide 37: Focus on driving profitable growth
Focus on driving profitable growth Modular, phase-wise capex to give sustained volume growth Emphasis on high efficiency in operations Exploring Modular Greenfield Soda Ash expansion Soda Continuing to drive performance in Ash Expanding product spinning. Value- portfolio and added products
Slide 38: Awards & Recognitions
Awards & Recognitions Referred as Great Place to Awarded trio of Golden work in three consecutive Peacock awards for Corporate years of participation Governance, Corporate social Amongst top 25 ranking for responsibility and National manufacturing industry. Quality 4 Notch Upgrades in last 4 years I
Slide 39: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company has established itself as a well-diversified group with an ascertained Contact Us: footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 40: Thank You
Thank You