Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — FY2022 Earnings Presentation
28 slides from Epigral's earnings presentation, Apr 28, 2022
Slide 1: Revised Earnings Presentation filing letter to exchanges
MEGHMANI FINECHEM LTD. Regd. Office: CH/1, CH/2, GIDC Industrial Eslale,-Dahej, Tal: Vagra; Bharuch -:392.130.-Gujarat, (NDIA) Phone: +91- 635 995366 1/62/63/64/65, E-mail : helpdesk@meghmanifinechem.com, URL: www.meghmanifinechem.com CIN: L24400GJ2007PLC051717 28" April, 2022 To, National Stock Exc
Slide 2: Meghmani Finechem Limited Corporate Presentation
Meghmani Finechem Limited Corporate Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: MFL Plant Video
MFL Plant Video 3 | MEGHMANI FINECHEM LIMITED
Slide 5: Company Overview
Company Overview Founded: 2007 32% 29% 5 Year Revenue CAGR (FY22) 5 Year EBITDA CAGR (FY22) Employees: 850+ 1.3x 29% Debt to Equity (FY22) ROCE (FY22) Capacity: Chlor-Alkali# – 315 KTPA Derivatives# – 110 KTPA 5,000 Revenue from operations (₹ Cr) Certified: 1551 Responsible Care Certificate 829 710
Slide 6: What are we into
What are we into ESG Focus Our Business o Leading producer of Chlor- o Strong focus on sustainability - alkali products and value awarded with the ‘Responsible Care’ added derivatives Logo by ICC Strategic Location Competitive Advantage o State of the art manufacturing o Domestically produced ECH, C
Slide 7: Our Evolution
Our Evolution FY 2022 FY 2021 FY 2020 Listed as an independent Commissioned FY 2018 and increased entity on 18th August 2021 Commissioned capacity FY 2017 Announced CMS - 50 KTPA FY 2015 Announced new Caustic Soda - 294 KTPA expansion in Chlorotoluene Commissioned FY 2010 KOH – expansions Announced
Slide 8: Driven by Strong Values
Driven by Strong Values • Maintaining high standards on transparency and disclosures Trust with all our stakeholders We enhance diverse employee engagement for increased o Caring for the environment and productivity & creativity and are Diversity Integrity the communities in which we an equal opport
Slide 9: MFL Evolving to value added specialty products
MFL Evolving to value added specialty products Fully Integrated Product Portfolio High Value Products Chlorotoluene & value chain ECH ECH Import Substitution – Make in India Chlor-Alkali H202 H202 CPVC CPVC Diversified End User Industries Chlorine Hydrogen CMS CMS Sole Manufacturer of ECH in India C
Slide 10: Competitive Strength
Competitive Strength Well Invested Infrastructure Well established brand o State of the art manufacturing facility o MFL is a known brand in Indian chemical market o Strategic location with close connectivity to o Serving domestic customers for last 12 Yrs ports and raw material availability. o Pan
Slide 11: Catering to High Growth Industries
Catering to High Growth Industries Increased market potential & higher growth exposure Refinery Paper & Pulp Fluoropolymers Soap & Detergents Textiles Dyes & Pigment Pharmaceuticals Agrochemicals Alumina PU Foams Paints PTFE Pipes Heat Resistant Pipes Refrigerant Gas Water Treatment Electronics The
Slide 12: Levers of Future Growth
Levers of Future Growth High-margin products with low-cost capacity expansion Manufacturing Plant Capacity (‘000 TPA) 106 Q2 FY23 60 50 50 294 30 21 Caustic Soda Hydrogen Peroxide Chloromethanes Caustic Potash Epichlorohydrin CPVC Chlorotoluene & its Q2 FY21* Q2 FY20* Q1 FY23 Q2 FY23 value chain Q4
Slide 13: Transitioning to Value added products
Transitioning Transitioning to Value to Value added added products Specialty Chemicals High value products to fuel future growth Chlor-Alkali – 74% Chlor-Alkali–– Chlor-Alkali < 40% 40% FY2022 Derivatives FY2027E ₹1,551 Cr 26% ₹5,000 Cr Derivatives & DerivativesSpecialty & Specialty Chemicals Chemic
Slide 14: Product Portfolio – Chlor-Alkali
Product Portfolio – Chlor-Alkali Caustic Soda (NaOH) Caustic Potash (KOH) India’s NaOH Requirement: 4,000 KTPA India’s KOH Requirement: 86 KTPA Demand CAGR: ~ 8% Demand CAGR: ~ 8% Alumina Textile Chemicals Agrochemicals API o We are 4th largest producer in India o We are 3rd largest producer
Slide 15: Product Portfolio – Derivative products
Product Portfolio – Derivative products Chloromethanes (CMS) Hydrogen Peroxide (H2O2) India’s CMS Requirement: 430 KTPA India’s H2O2 Requirement: 282 KTPA Demand CAGR: ~ 12% Demand CAGR: ~ 10% Solvent in Pharma PTFE Pipes Refrigerant Gas Paper & pulp Textile Chemicals o We are 5th largest pr
Slide 16: New Product Portfolio – Specialty Chemicals
New Product Portfolio – Specialty Chemicals CPVC Resin Epichlorohydrin (ECH) India’s CPVC Requirement: 127 ktpa India’s ECH Requirement: 62 ktpa Demand CAGR: ~ 13% Demand CAGR: ~ 15% Wind mill Automobile Adhesives Pipes and Fixtures o Once commissioned, we will be largest producer o 1st comp
Slide 17: Chlorotoluene & its value chain - Specialty Chemicals
Chlorotoluene & its value chain - Specialty Chemicals Project Details Rationale o Capex for the project will be ₹ 180 Cr and o Foundation for the next phase of growth in expected revenue of Rs. 300 Cr Specialty Chemicals o Expected commissioning date: Q4FY24 o Chlorine is captive a raw material - in
Slide 18: Research & Development Centre
Research & Development Centre Project Details Rationale o Capex for the project will be ₹ 25 Cr o R&D center will be used for creating further molecules for Chlorotoluene and other new molecules, which will be intermediates for pharmaceutical and agrochemical active o A step towards strengthening pr
Slide 19: Professional Management Team
Professional Management Team Mr. Maulik Patel Mr. Kaushal Soparkar Chairman & Managing Managing Director Director Mr. Yashodhan Chitnis Mr. Naresh Agarwal Mr. Vijay Vasudeva Mr. Sanjay Jain Sales Head – Sales Head – Chlor- Head of Operations Chief Financial Officer Derivatives & Specialty Chemicals
Slide 20: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Commitment towards reduce energy i
Slide 21: Generating Sustainable Profits
Generating Sustainable Profits Revenue from operations (₹ Cr) EBITDA (₹ Cr & %) PAT (₹ Cr & %) 44% 26% 25% CAGR 32% 43% 1,551 253 509 32% 32% 33% 18% 183 16% 155 12% 312 829 255 261 710 112 598 611 101 194 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2
Slide 22: Maintaining Strong Balance Sheet
Maintaining Strong Balance Sheet Achieving Strong growth without extensive debt ROCE (%) ROE (%) Debt/EBITDA (x) 38% 36% 35% 36% 36% 2.7 29% 2.1 1.9 21% 16% 16% 1.3 15% 0.3 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 Superior Balance Sheet
Slide 23: Growth Strategy
Growth Strategy Forward & Backward Opportunities in high New Value Chains: Achieving economies Integration: growth sectors: of scale: o Scale up capacities in o Explore opportunities o Expand chemistry o Optimising existing existing products in various sectors expertise to enter complex o New value
Slide 24: Appendices
Appendices
Slide 25: Fully Integrated Complex
Fully Integrated Complex 24 | MEGHMANI FINECHEM LIMITED
Slide 26: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY18 FY19 FY20 FY21 FY22 Total Revenue 602 720 613 831 1,555 Gross Profit 359 455 335 443 790 Gross Margin (%) 60% 64% 55% 53% 50.9% EBITDA 255 312 194 261 510 EBITDA Margin (%) 43% 44% 32% 32% 32.9% Depreciation 55 54 44 74 86 Finance Cost 9 25 11 29 44
Slide 27: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY20 FY21 FY22 Liabilities (₹ Cr) FY20 FY21 FY22 Fixed Assets 1,131 1,228 1,657 Share Capital 42 42 42 Financial Assets 4 10 8 Reserves & Surplus 542 643 684 Other Non-current Assets 5 29 11 Long-Term Borrowings 418 340 557 Inventories 48 54 154 Redeemable Prefer
Slide 28: About Us and Investor Contact
About Us and Investor Contact Corporate Office Manufacturing Site Regional Office Regional Office “Meghmani House”, B/h Safal CH/1 and CH/2, GIDC Industrial Regus Mid-Town 1st Floor, 303-B, Alpha, Main Street, Profitaire, Corporate Road, Estate, Dahej, Tal. Vagra, Dist. 101, Mid Town Plaza, Hiranand