Slide 1: Investors' Presentation - Q2FY24 Business Update (exchange letter)
GHCL Limited November 7, 2023 Tlfrfa, 1;lu1 rm q!r41 fi#.fi TiTd, ?"zo Nationa! Stock Exchange of lndia BSE Limited Limited Corporate Relationship Department, "Exchange Plaza" 1"t Floor, New Trading Ring, Rotunda Building, p.J. Bandra - Kurla Complex, Towers, Bandra (E), Mumbai - 400 051 Dalal Stree
Slide 2: GHCL Limited Q2 FY24 Investor Update
GHCL Limited Q2 FY24 Investor Update November 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Management commentary
Management commentary Commenting on the Q2 FY24 performance, Mr. R. S. Jalan, MD said: “Our performance during the quarter was influenced by several factors like continued weakness in the global Soda Ash markets resulting in oversupply situation, increased imports in India and reduction in energy an
Slide 5: Performance highlights – Q2 FY24
Performance highlights – Q2 FY24 Revenue EBITDA PAT Cash Profit Rs. 817 crore Rs. 224 crore Rs. 143 crore Rs. 169 crore Q2 FY24 Vs 31% 46% 50% 46% Q2 FY23 (Y-o-Y) 4
Slide 6: Performance highlights – H1 FY24
Performance highlights – H1 FY24 Revenue EBITDA PAT Cash Profit Rs. 1846 crore Rs. 534 crore Rs. 350 crore Rs. 400 crore H1 FY24 Vs 21% 31% 34% 31% H1 FY23 (Y-o-Y) Note: *Excluding exceptional profit on demerger of spinning business amounting to Rs. 219 Crore 5
Slide 7: Q2 FY24 highlights
Q2 FY24 highlights (Rs. In Crore) Quarterly Trend Particulars Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q 35% 34% 32% 30% 28% Revenue 817 1,183 (31%) 1,029 (21%) EBITDA 224 413 (46%) 310 (28%) 1,183 413 1,107 372 1,141 370 1,029 310 817 224 EBITDA Margin % 27.5% 34.9% (745 bps) 30.1% (270 bps) Q2 FY23 Q3 FY
Slide 8: Profit & loss statement
Profit & loss statement (Rs. In Crore) Particulars Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1 FY23 Y-o-Y Revenue from continued operations* 817 1,183 (31%) 1,029 (21%) 1846 2336 (21%) Operating Expenses of continued operations 593 770 (23%) 719 (18%) 1311 1,558 (16%) EBITDA from continued operat
Slide 9: Resource allocation & key financial ratios
Resource allocation & key financial ratios Efficient Capital Allocation Net Debt Free Rs. 79 crore Rs. 166 crore Net Cash Surplus of Debt Repayment Dividend Rs. 343 cr. Rs. 426 cr. Key Ratio’s Cash Inflows Generated Gross Debt Net Debt/ Equity Net Debt/ EBITDA Rs. 268 cr. (0.13)x (0.27)x Rs. 53
Slide 10: Business outlook
Business outlook Near Term Long Term • Soft demand trend in most part of world including • Long term demand is very healthy and is likely to Americas, China and especially Europe. grow from 63m MT to 78-83m MT by 2030 driven by global green initiatives such as solar glass and • Soda Ash market is ov
Slide 11: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Outlook Soda Ash demand remained tepid while market continued to remain GLOBAL SIZE: CAPACITY-71 MMT, PRODUCTION-64 MMT* oversupplied in most part of the world with newer capacities getting commissioned resulting in higher exports and softer re
Slide 12: Differentiators
Quality assets, high-potential runway for growth Chemicals business Chemicals Performance • 1.2 mn tons largest single location facility • Comfort of key input material integration Revenues (5-year CAGR) 18% • Industry leading efficiency and productivity EBITDA (5 Years CAGR) 20% • Brownfield scale
Slide 13: Focus on driving responsible future growth
Focus on driving responsible future growth Key Growth levers • Vacuum salt from waste energy • Salt Yield improvement • Benefits from doubling (Sodium Bicarbonate) Capacity from 60k to 120K MT • Focus on Greenfield Soda Ash project of 5L MT • Augmenting backward integration of raw material for enhan
Slide 14: Sodium bicarbonate – longer term play
Sodium bicarbonate – longer term play Past Future Generally named as Doubled capacity baking soda, bread Doubled capacity from 30,000 to soda, cooking soda 60,000 MT in from 60,000 MT to and bicarbonate of December 2017 soda 1,20,000 MT Used in Cooking, Specialization and Likely solution- Pharmaceut
Slide 15: Key application of Sodium bicarbonate
Key application of Sodium bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment is under trial phase; could be a game changer if successful Animal Feed Chemicals 14
Slide 16: Company Overview
y Company Overview
Slide 17: GHCL – An introduction
GHCL – An introduction 1 Targeting Best-in-class Professional Mgmt. • To grow profits at a CAGR 15% on a long-term • Operations management • Focused management approach horizon • CAPEX planning and execution • Strategy led by professional • To inculcate value systems that defines our culture • Finan
Slide 18: GHCL overview
GHCL overview Best in class Focus to emerge 3 decades of operational as a sustainable Indian efficiencies and business Manufacturing capacity utilizations organization experience Leading soda Business Professionally ash player in Philosophy of managed India Inclusive growth of workforce all stakehol
Slide 19: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Spindles capacity increased to Soda Ash production capacity Soda Ash production Production with 4.2 Lacs 175K, installed 3320 rotors in increased to 11 Lacs MTPA / year capacity enhanced to 12 Lacs MTPA which was further spinning in FY2019 MT in
Slide 20: Our objective
Our objective “Achieve a CAGR growth of 15% in bottom-line with creating value for all our 5 stakeholders” Responsible Growth ESG Organic Growth – CAPEX, Non- HSE – Zero Harm, CSR – CAPEX led Growth, Growth – M&A/ Responsible Citizen and JV and Optimize Return on Capital Renewable Energy Brand Image
Slide 21: Core values at forefront
Core values at forefront MISSION • GHCL is a unique workplace which is dotted with its Core Responsibly maximising Values, defining its culture stakeholder value • Every employee in the Company is expected to imbibe its Core Values and interact within the business ecosystem with all its stakeholders
Slide 22: Spearheaded by distinguished management
Spearheaded by distinguished management R S Jalan Raman Chopra Managing Director CFO & Executive Director Mr. Anurag Dalmia Neelabh Dalmia Dr. Manoj Vaish Experienced and (Vice Chairman) (Executive Director, (Independent Director) Growth & Diversification) accomplished Board of Directors Mrs. Vijayl
Slide 23: Awards & recognitions
Awards & recognitions Mahatma Award HR Excellence Award 5 Notch Upgrades in last 6 years Enhanced Credit Ratings – Upgraded to AA- with Stable outlook, GHCL received 12th CII National HR for CSR Excellence Excellence Award for strong commitment 13th CEO Conference Referred as Great Place to work in
Slide 24: About us
About us GHCL Limited was incorporated on 14th October 1983. The Company has established itself as a well-diversified group with an ascertained footprint in chemicals and consumer products segments. In Chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major r
Slide 25: Thank You
Yy Thank You