Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q2 FY2020 Earnings Presentation
31 slides from Tata Chemicals's earnings presentation, Oct 30, 2019
Slide 1: Submission of Analysts/Investors Presentation cover letter
October 30, 2019 The General Manager Corporate Relations Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001 Scrip Code: 500770 Dear Sir/Madam, Sub: Submission of Analysts/lnvestors Presentation Ref.: Letter dated October 18, 2019 informing about Analysts/lnvestors Present
Slide 2: Analyst / Investors Communication on Financial results for period ended September 2019
Analyst / Investors Communication on Financial results for period ended September 2019 Date: 30th October 2019 1
Slide 3: Safe Harbour Statement
Safe Harbour Statement “This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expression
Slide 4: Business Overview
Business Overview 3rd largest Soda Ash producer globally │5,000+ employees across 4 continents │160 million households consume Tata Salt each month 3
Slide 5: Our Journey till date
Basic Chemistry Specialty Chemicals 2016 Consumer Business From 4 businesses…. Fertilizer Our Journey till date Basic Chemistry Specialty Chemicals 2018 To 3 businesses…. Consumer Business Basic Chemistry 2020 & beyond…. chemistry businesses Specialty Chemicals …To 2 focused science driven 4
Slide 6: An Innovative, Science-led Sustainable Chemistry Company
An Innovative, Science-led Sustainable Chemistry Company TATA CHEMICALS LIMITED Mission : Serving Society through Science Vision : Will be a leading sustainable Chemistry Solutions Company serving customers based on innovative, science-led differentiated products and solutions Basic Chemistry Specia
Slide 7: Basic Chemistry Products
Basic Chemistry Products KEY APPLICATION SEGMENTS – Soda Ash KEY APPLICATION SEGMENTS – Sodium Bicarbonate Flat Glass Flue Gas Desulfurization Container Others Soaps & Glass Detergents Sodium Pharma / Healthcare Bicarbonate Soda Ash Manufacturing Food Chemicals Detergents Animal Feed 6
Slide 8: Mithapur expansion: Implementation Schedule
Mithapur expansion: Implementation Schedule Sept Dec Mar Jun Sept Dec Mar Jun Sept Dec Mar June 19 19 20 20 20 20 21 21 21 21 22 22 Soda Ash 0.8 MMT ---------------------------------------------------- 0.2 MMT------------------------------------------------------1.0 MMT Sodium Bicarbonate 0.1 MMT---
Slide 9: Mithapur Expansion: Updates
Mithapur Expansion: Updates 8
Slide 10: Agro Science: Rallis India
Agro Science: Rallis India Alliances - Developing Technical for global Agro chemicals Strategic Initiatives & Capex Plan players Key products Domestic business: • Pendimethalin: Used as a pre-emergence herbicide to control • Refresh distribution channel: Add distributors to enhance growth annual gra
Slide 11: Nutritional Science: Prebiotics - Key application segments
Nutritional Science: Prebiotics - Key application segments General health application across Food segments Targeted Health applications across life stages : For fiber addition + Sugar reduction : Prebiotics for gut and digestive health Pediatric Women’s Geriatric Sports Health Nutrition Applications
Slide 12: Nutritional Science: TCL Opportunity
Nutritional Science: TCL Opportunity • TCL estimates global market to reach USD 8.5 billion by FY25 Opportunity • Beyond global markets, Prebiotics opens up a bigger market in India with application as low calorie health food for Diabetics • Diverse application segments open up customer segments: Hu
Slide 13: Material Science: Silica Opportunity
Material Science: Silica Opportunity KEY APPLICATION SEGMENTS Key Focus Industry: Tyre Industry Tyres Key application of HDS is in Tyre Industry. A product that improves overall tyre Foods & Non Tyre Feed Rubber performance, i.e. Silica • Improves rolling resistance • Better wear and tear Paints & T
Slide 14: Material Science: Silica Opportunity
Material Science: Silica Opportunity • TCL estimates Indian market to reach approximately 125 k T/A. Opportunity • Could witness inflection in growth, driven by tighter emission norms • Other applications include coatings, pesticides and oral care • Product proven at one of the leading / major tyre
Slide 15: Specialty Products: Updates
Specialty Products: Updates Nutritional Science: Nellore Material Science: Cuddalore 14
Slide 16: Energy Science: Business Updates
Energy Science: Business Updates Signs MOU Signs a MOU with Secured land and with CSIR- ISRO for Lithium- benefits in Gujarat to CECRI, ion Cell setup Manufacturing Karaikudi Technology facility Sept Oct Jan Mar Aug Oct 2018 2018 2019 2019 2019 2019 Board Approved Signs MoU with Launches Li-ion for
Slide 17: Q2 Sept 2019 Financial Updates
Q2 Sept 2019 Financial Updates 16
Slide 18: Key Highlights
Key Highlights Revenue from Operations Standalone : For Sept 19 Quarter : ₹ 1,021 Cr, up by 1 % │ For period ended September 19: ₹ 2,052 Cr, up by 2 % Consolidated : For Sept 19 Quarter : ₹ 3,084 Cr, up by 4 %│ For period ended September 19: ₹ 5,980 Cr, up by 5 % Net Profit for the Company (Continui
Slide 19: Financial Updates: For the Quarter September 2019
Financial Updates: For the Quarter September 2019 Standalone (₹ Cr) 25% 26% 29% 29% 1,021 256 268 1,014 295 294 Q2 Sept 18 Q2 Sept 19 Q2 Sept 18 Q2 Sept 19 Q2 Sept 18 Q2 Sept 19 Revenue up by 1% EBITDA up by 5% PAT down by 1% Consolidated (₹ Cr) 14% 21% 14% 20% 437 635 409 3,084 602 2,961 Q2 Sept 18
Slide 20: Financial Updates: For the Period ended September 2019
Financial Updates: For the Period ended September 2019 Standalone (₹ Cr) 26% 28% 27% 26% 2,052 535 559 548 512 2,003 YTD Sept 18 YTD Sept 19 YTD Sept 18 YTD Sept 19 YTD Sept 18 YTD Sept 19 Revenue up by 2% EBITDA up by 5% PAT down by 2% Consolidated (₹ Cr) 21% 12% 12% 19% 718 5,980 1,227 678 1,093 5
Slide 21: Financial Updates: Balance Sheet as at September 2019
Financial Updates: Balance Sheet as at September 2019 Consolidated Standalone Rs Cr 30-Sep-19 31-Mar-19 30-Sep-19 31-Mar-19 Non - Current Assets 19,717 18,807 10,030 9,528 Inventories 1,643 1,726 658 628 Investments 2,324 2,252 2,092 2,146 Trade Receivables 1,641 1,453 164 185 Cash and Cash Equivale
Slide 22: Segment Revenues and Results
Segment Revenues and Results Consolidated Standalone *Excludes Inter Segment Revenue of ₹ 247 Cr (PY ₹ 207 Cr) & Unallocated *Excludes Inter Segment Revenue of ₹ 197 Cr (PY ₹ 200 Cr) & Unallocated Revenue of ₹ 5 Cr (PY ₹ 7 Cr) Revenue of NIL (PY ₹ 4 Cr) Q2 Sept 2018 (₹ Cr) Q2 Sept 2019 (₹ Cr) Q2 Sep
Slide 23: Borrowings Position as on September 2019
Borrowings Position as on September 2019 Standalone (₹ Cr) 2,739 708 237 482 11 2,257 Gross Debt Mar19 Net Change Revaluation Gross Debt Sept19 Cash & Cash Equivalents Net Cash Consolidated (₹ Cr) 167 74 3,794 6,143 6,050 2,256 Gross Debt Mar'19 Net Change Revaluation Gross Debt Sept'19 Cash & Cash
Slide 24: Segment: Basic Chemistry Products
Segment: Basic Chemistry Products Segment Revenues & Results (₹ Cr) • TCL India: Revenue at ₹692 Cr (down by 6%, vs PY ₹738 Cr), margins on the Overall Segment Revenue at ₹ 2,052 Cr, up by 1% │Segment results at ₹ 355 Cr, up by 28% Soda ash continues to improve over PY, leading to Segment results at
Slide 25: Segment: Specialty Products
Segment: Specialty Products Segment Revenues & Results (₹ Cr) Overall Segment revenue at ₹ 760 Cr 14 % • Nutritional Solutions and Other Specialty products: Revenues at ₹ 12 Cr vs PY │Segment Results at ₹ 88 Cr, down by 16% ₹ 12 Cr. Margins where impacted on account of lower sales realization and hi
Slide 26: Segment: Consumer Products Business
Segment: Consumer Products Business Segment Revenues & Results (₹ Cr) • Salt Business: Tata Salt continues to maintain its leadership position in the Overall Segment Revenue at ₹ 513 Cr 12 % │Segment Results at ₹ 73 Cr, down by 15% branded salt segment with market share more than 25% in the overall
Slide 27: Financial updates: Operating Entities
Financial updates: Operating Entities Statement of Profit and Loss (Continuing Operations) for the quarter ended Sept 2019 Units TCL India US UK Africa Rallis Consolidated* ₹ Cr PY CY PY CY PY CY PY CY PY CY PY CY Revenue 1,014 1,021 858 886 353 337 128 139 656 749 2,961 3,084 EBITDA 256 268 170 186
Slide 28: Volumes (for the quarter): Major Products
Volumes (for the quarter): Major Products Soda Ash (in Kts) Sodium Bicarbonate (in Kts) TCL India TCE TCML TCNA TCL India TCE 564 570 565 567 26 27 29 26 72 74 76 58 83 77 85 87 25 25 28 27 171 154 199 202 Sep-18 Sep-19 Sep-18 Sep-19 Sep-18 Sep-19 Sep-18 Sep-19 Sales Production Sales Production Salt
Slide 29: Volumes (for the half year): Major Products
Volumes (for the half year): Major Products Soda Ash (in Kts) Sodium Bicarbonate (in Kts) TCL India TCE TCML TCNA TCL India TCE 1,098 1,109 1,089 1,117 52 51 53 50 126 137 129 137 166 145 162 163 50 51 57 54 340 316 402 395 Sep-18 Sep-19 Sep-18 Sep-19 Sep-18 Sep-19 Sep-18 Sep-19 Sales Production Sal
Slide 30: Additional Information
Additional Information Revenues (₹ Cr) & PAT (%) Earnings Price Per Share (in ₹) 14% 10% 14% 11% 13% 13.9 3,084 12.6 12.2 2,961 2,832 2,759 2,897 9.7 8.5 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Shareholding Pattern Exchange rate (Average) Non 91.25 91.72 91.74
Slide 31: Contact details
aA - POR PAP pT AR POPPI PE AZAASA Ey AFA ALAA AZ ian ] ALAL SA Accelerating LIER WALKS PPLAZOA An focussed growth agnrm an ts AA aam Fo aAA o al ZaryZ For any question/queries please contact ax sy & John Mulhall & jmulhall@tatachemicals.com © +91 226665 8282 & Sameer Kulkarni & sakulkarni@tatachemi