Bhagiradha Chemicals & Industries Ltd. · NSE:BHAGCHEM
Bhagiradha Chemicals & Industries — H1 FY2025 Earnings Presentation
39 slides from Bhagiradha Chemicals & Industries's earnings presentation, Nov 13, 2024
Slide 1: Exchange filing cover letter: Investor Presentation
Ref: BCIL/SE/2024/73 November 13, 2024 To, To, The Secretary, The Manager, BSE Limited, Listing Department, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited, Dalal Street, Exchange Plaza, C-1, G Block, Bandra-Kurla, Mumbai - 400 001 Complex, Bandra (East), Mumbai – 400 051 Scrip C
Slide 2: Bhagiradha Chemicals & Industries Limited Investor Presentation – November 2024
Bhagiradha Chemicals & Industries Limited Investor Presentation – November 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bhagiradha Chemicals and Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or sub
Slide 4: Company Overview
BHAGIRADHA CHEMICALS Company Overview
Slide 5: Bhagiradha at a Glance
Bhagiradha at a Glance 30+ years establishment Manufacturing facilities Strong Customer base 2 manufacturing facilities at Andhra Pradesh Established in 1993 by visionary entrepreneur, (existing) & Karnataka (upcoming) Long-standing relationship of 10+ years late Sri. S. Koteswara Rao who was well w
Slide 6: Founded by Well-recognised Scientist
Founded by Well-recognised Scientist • Late Sri Koteswara Rao was one of the well-recognized scientists in South India. His years of hard work, research and innovative mindset have spurred the growth and success of BCIL. • He held a postgraduate degree in Chemical Engineering from IIT Madras. • He s
Slide 7: Have Strong Leadership Team
Have Strong Leadership Team S. Chandrasekhar A. Arvind Kumar B. Krishna Mohan Rao Promoter & Managing Director Executive Director & CEO Chief Financial Officer • Inspired by his father and owing to his keen interest and • 20+ years of experience in the chemical industry including • Graduate in Arts
Slide 8: Experienced Board Members
Experienced Board Members Independent Directors K. S. Raju GSV Krishna Rao Dr. G. Aruna Kishor Shah Non-Executive Chairman Independent Non-executive Director Independent Non-executive Women Director Independent Non-executive Director • Board member since 2005. • Board member since 2018. • Board memb
Slide 9: Transformational Journey so far
Transformational Journey so far BCIL 1.0 BCIL 2.0 Growth Phase 1993 1993--2004 2004 2005 - 2011 2012 - 2019 2020 - 2024 FY04 FY11 FY19 FY24 Revenue: Revenue: Revenue: Revenue: 52 crores 60 crores 384 crores 408 crores ✓ Commencement of operations of wholly • 1993: Founded by Sri Koteswara Rao, • 200
Slide 10: Level of backward integration achieved
With Product Launches at Regular Intervals High Current Products Can be revived basis capacity availability Manufactured as a campaign Discontinued due to commercial reasons 2,6-dichloroaniline H Diafenthiuron I F I H I Acequinocyl Azoxystrobin H Triclopyr H Sulfinamide Fipronil Level of backward in
Slide 11: and Established Customer Base
and Established Customer Base Relationship with 100+ Various partnerships for active customers with registrations in countries maximum customer like USA, Brazil, EU etc retention Engage with various Relationship of average 100+ 25+ Multinational global consultants for tenure of 10+years with top Dom
Slide 12: Along with Strong Market Presence
Along with Strong Market Presence Presence in 20+ countries - Serving the farming communities worldwide Andhra Pradesh Manufacturing Plants in Andhra Pradesh & Karnataka (India) (Existing Plant) • No. of production blocks: 3 production blocks with 4 process lines • Capacity: 3,250 MT / p. a. • Capac
Slide 13: Leading to sustainable growth
Leading to sustainable growth Products Top 5 Products Revenue Contribution (%) Customers Top 5 Customer Revenue Contribution (%) 30 94% 95% 113 111 110 68% 91% 91% 87% 98 48% 47% 43% 44% 64 11 6 FY04 FY13 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Continuous prod
Slide 14: Bhagiradha's competitive edge
Bhagiradha’s competitive edge 13
Slide 15: Research & Development a Growth Engine
Research & Development a Growth Engine New Process development: Identification and development of synthesis routes for off patent / to be off patent molecules Off Patent Products: Development of commercially viable and non-infringing processes for off patent molecules Well-established R&D centre – A
Slide 16: Supported by Robust R&D Infrastructure
Supported by Robust R&D Infrastructure R&D Facility – Synthesis, Kilolab & Process Safety Lab Pilot Plant Semi – Commercial Plant R&D lab is equipped with infrastructure and Pilot plant is equipped with infrastructure for: Semi-commercial pilot plant is equipped with : analytical equipment for: • Sc
Slide 17: Creating Entry Barrier: Backward Integration
Creating Entry Barrier: Backward Integration Future backward integration Backward integrated inputs ~4% ~14% Global Market Domestic Market Input 13 N-6 (A) N-5 (A) N-4 (B) N-3 (A) share share Input 14 Input 12 Input 11 Input 7 & 8 Input 4 Input 3 Input 9 & 10 N-3 (B) N-2 (A) N-1 (A) Product 1 Backwa
Slide 18: Environmentally Responsible & Utmost Safety Measures
with Environmentally Responsible & Utmost Safety Measures Effluent Treatment Plant Electro Oxidation Plant Pollution Control Measures Fire Safety Measures • Zero Liquid Discharge (ZLD) ETP • Effluent treatment process based • Multi-stage scrubbers installed to • Nitrogen breathing systems which recy
Slide 19: Has been Validated by Customers & External Agencies
Has been Validated by Customers & External Agencies Greenery around plant Audit by Reputed External Agencies • Ground water quality assessment (2020, 2022, 2024) • Odor Assessment Report (2022) ✓ Plant is regularly reviewed / audited by its MNC clients to check even their • Off-site emergency plan (
Slide 20: BCIL 2.0 Growth Investment
BCIL 2.0 Growth Investment 19
Slide 21: Investment in Subsidiary
Investment in Subsidiary Bhagiradha Chemicals & Industries Limited (BCIL) Expansion Plan Bheema Fine Chemicals Private Limited Land size of 34 acres: 9,000 MT Higher level of (100% subsidiary) New manufacturing Installed capacity with 2 backward integration facility at Kadechur processing blocks for
Slide 22: will have Exponential Growth
will have Exponential Growth Expansion of Rs. 800+ crores in Phases Greenfield Capacity Expansion Allocation of Funds Backward Integration • Land & Building: ~190 crores New Product Introduction Direct infusion of Convertible equity from BCIL ~450+ crores • Plant & Machinery: ~540 crores Warrants ~
Slide 23: and Growth Strategies
and Growth Strategies ✓ Leveraging existing relationships to capture markets & adding new Increase level of backward Expand product portfolio by To be established as a Improve efficiency through customers through competitiveness integration in existing key developing and introducing sizeable and sta
Slide 24: Financial Highlights
BHAGIRADHA CHEMICALS Financial Highlights
Slide 25: Result Snapshot H1 FY25
Result Snapshot H1 FY25 Revenue From Operations (Rs. In Cr.) EBITDA From Operations (Rs. In Cr.) Profit After Tax (Rs. In Cr.) -3% +5% +45% 222 215 22 11 21 • Revenue: Lower price realization 8 across products resulted in decrease in the revenue despite marginal growth in sales volume. • EBITDA: Imp
Slide 26: Result Snapshot Y-o-Y
Result Snapshot Y-o-Y Revenue From Operations (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) -15% -28% -5% 122 13 6 • Revenue: Lower price realization 5 104 across products resulted in 10 decrease in the revenue despite marginal growth in sales volume. • EBITDA: Lower earnings & lowe
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Cr.) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Revenue From Operations 103.7 122.0 -15% 111.4 -7% 215.1 222.0 -3% Cost of Raw Materials Consumed 63.1 78.9 69.6 132.6 144.8 Gross Profit 40.7 43.2 -6% 41.8 -3% 82.5 77.2 7% Gross Pro
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In Cr.) Sept-24 Mar-24 Equity & Liabilities (Rs. In Cr.) Sept-24 Mar-24 Non- Current Assets (A) 379.5 295.8 Equity (A) 627.0 413.7 Property, Plant & Equipment 219.9 213.7 Equity Share Capital 12.4 10.4 Capital Work in Progress 120.3 65.5 Other Equity 614.6 403.
Slide 29: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Cr.) Sept-24 Sept-23 Net Profit Before Tax 17.4 11.6 Adjustments for: Non -Cash Items / Other Investment or Financial Items 3.7 8.1 Operating profit before working capital changes 21.2 19.6 Changes in working capital -51.7 -11.6 Cash generated fro
Slide 30: Historical Performance
BHAGIRADHA CHEMICALS Historical Performance
Slide 31: Financial Snapshot
Financial Snapshot Revenue From Operations (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) 502 77 45 436 68 408 36 318 47 43 23 18 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Revenue Break-up (%) EBITDA (%) PAT (%) Export 6% 16% 9% 15% 15% 8% 7% 11% FY24 4% 94% Domesti
Slide 32: Expense Snapshot
Expense Snapshot Capacity Utilization (%) Raw Material (% to Sales) Employee Cost (% to Sales) 89% 90% 63% 64% 62% 8% 60% 85% 6% 6% 5% 72% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Power & Fuel Cost (% to sales) Other Expenditure (% to Sales) 10% 11% 8% 8% 7% 8% 8% 8% FY21 FY22 FY23 FY24 FY21 FY22 FY2
Slide 33: Key Ratios
Key Ratios Return on Capital Employed (%) Asset turnover ratio Working Capital (No. of Days) 22% 2.0 1.9 18% 19% 73 days 99 days 132 days 164 days 1.5 1.4 7% 165 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Return on Equity (%) Debt to Equity Ratio 106 92 94 96 97 87 90 18.8% 0.4 81 0.4 68 72 68 15.0% 14
Slide 34: Consolidated Historical Profit & Loss Statement
Consolidated Historical Profit & Loss Statement Particulars (Rs. In Cr.) FY24 FY23 FY22 FY21 Revenue From Operations 407.6 502.1 435.7 317.9 Cost of Raw Materials Consumed 246.6 313.4 276.7 200.9 Gross Profit 161.0 188.7 159.0 117.0 Gross Profit Margin (%) 40% 38% 36% 37% Employee Benefit Expenses 3
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In Cr.) FY24 FY23 Equity & Liabilities (Rs. In Cr.) FY24 FY23 Non- Current Assets (A) 295.8 218.7 Equity (A) 413.7 313.2 Property, Plant & Equipment 213.7 173.1 Equity Share Capital 10.4 10.4 Capital Work in Progress 65.5 27.4 Other Equity 403.3 302.8 Right use
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Cr.) FY24 FY23 Net Profit Before Tax 26.9 63.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 15.0 12.3 Operating profit before working capital changes 41.9 76.1 Changes in working capital 2.8 50.3 Cash generated from Opera
Slide 37: Corporate Action Update – Convertible warrants issued on preferential basis
Corporate Action Update – Convertible warrants issued on preferential basis Warrants issued in November 2023 Particulars Remarks No. of shares Issued & 25,61,425 Equity shares of Rs. 10/- each Subdivision of Shares: May 2024: Allotted Incl. premium of Rs. 1,322/- per share The existing equity shares
Slide 38: Capital Raise History
Capital Raise History Corporate Action Preferential Allotment Right Issue Preferential Allotment Total Issue Size Rs. 59 crores Rs. 84 crores Rs. 341 crores 341 84 59 17 19 15 2017-19 2022 2023-25 Total Issue size Promoters contribution Rs. In Crores Cumulative promoters participation is to the tune
Slide 39: Thank You!
Company: Investor Relations Advisors: CIN: L24219TG1993PLC015963 CIN: U74140MH2010PTC204285 Mrs. Sharanya. M - Company Ms. Neha Shroff / Mr. Mayur Pednekar Secretary & Compliance Officer neha.shroff@sgapl.net / cs@bhagirad.com mayur.Pednekar@sgapl.net +91-40-42221212 / 42212323 / +91 77380 73466 / +
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