Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q2 FY20 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, October 2019
Slide 1: Sharda Cropchem Limited Q2 FY20 Results Update
SHARDA CROPCHEM LIMITED Q2 FY20 RESULTS UPDATE October 2019
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q2 & H1 FY20 Result Highlights Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q2 & H1 FY20: Key Highlights
Q2 & H1 FY20: KEY HIGHLIGHTS Q2 FY20 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* Cash Profit # 30.8% 27.0% 11.0% 8.8% 3,090 3,242 4.9 % 339 15.3 % 359 23.8 % 287 274 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 H1 FY20 YoY ANALYSIS REVENUES & GROSS MARGIN EBITDA & EBITDA
Slide 5: Q2 FY20: Key Performance Highlights
Q2 FY20: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues grew by 4.9% YoY to Rs 3,242.0 mn in Q2FY20 from Rs 3,090.0 mn in Q2FY19 • Region wise growth YoY – Europe: 30.4%, NAFTA: -10.7%, LATAM: -11.6% and RoW: -9.2%. • Gross profit declined to Rs 873.7 mn in Q2FY20 from Rs 952.1 mn in Q2FY1
Slide 6: Q2 & H1 FY20: Division Wise Highlights
Q2 & H1 FY20: DIVISION WISE HIGHLIGHTS In Rs Mn Q2 FY20 YoY ANALYSIS: REVENUE BREAKUP H1 FY20 YoY ANALYSIS: REVENUE BREAKUP 3,090 3,242 7,635 7,448 711 877 1,492 29.7 % 23.3 % 1,935 2,379 0.6 % 2,365 6,143 10.3 % 5,512 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Agrochemicals Non-Agrochemicals Agrochemicals Non
Slide 7: Q2 & H1 FY20: Agrochemical Business
Q2 & H1 FY20: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,379 2,365 6,143 5,512 2,379 2,365 6,143 5,512 8.1% 8.1% 8.8% 7.3% 16.1% 8.1% 11.0% 7.3% 12.3% 11.7% 13.1% 10.9% 24.0% 27.5% 38.8% 30.3% 83.9% 91.9% 89.0% 92.7% 56.2% 47.7% 54.3% 40.8% Q2
Slide 8: H1 FY20: Agrochemical Business
H1 FY20: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 29% 25% H1 FY19 46% H1 FY20 50% 25% 25% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues declined by 1.5% YoY in H1FY20 to Rs 2,756 mn • Fungicides revenues declined
Slide 9: Q2 & H1 FY20: Non-Agrochemical Business
Q2 & H1 FY20: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 711 877 1,492 1,935 27.7% 32.5% 31.4% 39.9% 3.6% 2.6% 7.6% 8.0% 47.1% 26.3% 42.8% 24.7% 27.3% 33.6% 21.6% 23.2% Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Europe NAFTA LATAM RoW • Revenues in Europe declined by 2.7% in Q2 FY20 to Rs 1
Slide 10: H1 FY20: Working Capital Analysis
H1 FY20: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 109 109 72 79 66 62 H1 FY19 H1 FY20 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS H1 FY19: 102 H1 FY20: 113 * Calculated on average inventory, receivables, creditors 10
Slide 11: Q2 & H1 FY20: Consolidated Profit & Loss Statement
Q2 & H1 FY20: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY20 Q2 FY19 YoY % H1 FY20 H1 FY19 YoY% FY19 Revenue from Operations 3,241.5 3,089.8 4.9% 7,447.5 7,635.3 -2.5% 19,977.9 COGS 2,367.9 2,137.8 10.8% 5,422.1 5,284.3 2.6% 13,875.9 Gross Profit 873.7 952.1 -8.2% 2,025.4 2,351.
Slide 12: Q2 & H1 FY20: Consolidated Balance Sheet
Q2 & H1 FY20: CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn H1 FY20 FY19 Particulars in Rs. Mn H1 FY20 FY19 Equities & Liabilities Assets Shareholder's Funds Non-current Assets Equity And Share Capital 902.2 902.2 Property, Plant And Equipment 313.4 135.5 Other Equity 11,934.6 11,936.9 Goodwill 4
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registrat
Slide 14: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited tds . ° eae : 4 14
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 17 % 19,978 CAGR: 17 % CAGR: 9 % 17,066 16.3% 22.2% 22.3% 20.2% 16.3% 14.3% 11.6% 13.6% 11.2% 8.8% 13,992 12,186 10,611 3,454 3,124 3,260 1,751 1,904 1,908 1,763 2,714 1,727 1,230 FY15 FY16 FY1
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 30TH Sept 2019 % HOLDING MARKET DATA AS ON 18th Oct 2019 HDFC MF 9.04% Market capitalization (Rs Mn) 25,844 L & T Mutual Fund 4.74% Price (Rs.) 286.5 No. of shares outstanding (Mn) 90.2 Pinebridge Investments 4.14% Face Value (Rs.) 10.0
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Dinesh Nahar Mr. Hiral Keniya General Manager - Finance IR Consultant Email: finance@shardaintl.com Email: hiral.keniya@dickensonworld.com Contact No: +91 22 6678 2800 Contact no: +91 9029662801