Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q2 FY2021 Earnings Presentation
25 slides from Tata Chemicals's earnings presentation, Oct 29, 2020
Slide 1: Submission of Analysts/Investors Presentation cover letter
October 29, 2020 The General Manager The Manager, Listing Department Corporate Relations Department National Stock Exchange of India Ltd BSE Limited Exchange Plaza, 5th Floor, Plot No. Phiroze Jeejeebhoy Towers G Block, Bandra-Kurla Complex Dalal Street Bandra (E) Mumbai 400 001 Mumbai 400 051 Scrip
Slide 2: Q2 & Half Year End FY20-21 Financial Results
Q2 & Half Year End FY20-21 Financial Results Analyst and Shareholders Communication 29 October 2020 1
Slide 3: “This Presentation, except for the historical information, may contain statements, including the words or
“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 expressions or variations of thes
Slide 4: Business Profile Realignment
Till FY2016 & FY2018 FY2019 FY2020 FY17 → Inorganic → Basic Chemistry Chemicals → Inorganic Products → Basic Chemistry → Fertilisers Chemicals → Consumer Products → Other Agri Inputs → Others Products Business → Specialty → Others → Specialty Products Products Divestment of Urea Business Divestment
Slide 5: Current Strategy and Way Forward
Current Strategy Strategy Way Forward……… Nutritional Science Specialty Products Basic Chemistry Energy Science Performance Agro Science Materials Products Technology | Digitisation | Sustainability Technology | Digitisation | Sustainability Unified Approach, Underpinned by Science and Rooted in R&D
Slide 6: Strategy by business: Performance Materials, Nutritional, Agri, Energy Science
Performance Materials Nutritional Science • Maintain Leadership in Soda Ash • Drive value addition in Salt portfolio • Drive Value addition rather than capacity addition • Shift from basic chemistry to Specialty segment i.e. • Focus on scaling Performance Silica, Nano-materials food and pharma grade
Slide 7: Gross Debt Sept20
UK BU Debt: 1,339 Crs Gross Debt | Rs Cr Sept20 SPV Debt: 541 Crs BU Debt 3,875 SPV Debt 2,931 Total Gross Debt 6,806 India TCL: RS 14 Crs US Rallis: Rs 53 Crs BU Debt: 2,077 Crs SPV Debt: 738 Crs Singapore SPV Debt: 1,652 Crs Kenya BU Debt: 392 Crs 6
Slide 8: Value Added Products and Investments Committed
Business Existing Products with Value Added Products Key Comments Investment Committed Units Leadership position • Pharma grade Bicarb • Expansion of bicarb, Salt • Edible & pharma grade and soda ash underway • Rs 2,400 Crs in Mithapur Soda Ash, Bicarb, Salt, Salt • FOS/ GOS & CS • Rs 565 Crs in Nur
Slide 9: Business segments overview
PERFORMANCE MATERIALS AGRI SCIENCES NUTRITION SCIENCES ENERGY SCIENCES • Salt • Alkali Chemistry • Seeds • Sodium • Cell Mfg. • Performance Silica • Crop Care Bicarbonate • Actives • Nanomaterials • Active Ingredients • Natural • Recycling Ingredients • IVSD manufacturing crossed 1 • World’s 3rd lar
Slide 10: Q2 FY21 Consolidated Highlights
Soda Ash Volumes Consolidated Revenue Consolidated EBITDA Q2 FY 21 744 Kts Q2 FY 20 874 Kts ₹ 2,609 Cr ₹ 386 Cr (15% margin) IVSD Salt Volumes ↓ 6% (Q2 vs Q2) ↓ 31% (Q2 vs Q2) Q2 FY 21 295 Kts ↑ 11% (Q2 vs Q1) ↑ 7% (Q2 vs Q1) Q2 FY 20 258 Kts Operational Cash Conversion remained robust at Rs 586 Cr
Slide 11: Cash Conversion and Operational Working Capital
Cash Conversion Q2 FY21 H1 FY21 Operational Working Capital Mar-20 Sep-20 EBITDA 386 746 Inventories 1,869 1,631 Consolidated Operation Working Capital Δ 199 500 Receivables 1,580 1,314 Payables (1,631) (1,626) Cash Conversion 586 1,246 Operational Working Capital 1,818 1,319 Cash Conversion % 152%
Slide 12: Q2 Standalone and Consolidated Financials
Standalone | ₹ Crore EBITDA EBITDA margin Operational PBT Non Operational PBT Profit After Tax PAT margins 750 700 650 708 717 100 % 250 35% 30% 600 240 27% 25% 90% 30% 628 25% 30% 220 80% 200 550 200 20% 70% 212 142 166 25% 500 16% 15% 60% 150 19% 180 20% 10% 50% 39 17% 68 211 160 450 15% 40% 100 1
Slide 13: Half Year Standalone and Consolidated Financials
Standalone | ₹ Crore 1,427 1,50 0 1,345 EBITDA margin Operational PBT Non Operational PBT PAT margins 1,30 0 100 % 450 35% 450 30% 1,10 0 400 27% 25% 90% 400 29% 30% 504 308 80% 20% 350 350 20% 25% 70% 900 300 300 15% 60% 20% 18% 250 250 417 50% 10% 700 200 383 5% 40% 227 141 200 15% 272 150 150 244
Slide 14: Balance Sheet
Consolidated Standalone Rs Cr 30-Sep-20 31-Mar-20 30-Sep-20 31-Mar-20 Non - Current Assets 20,392 19,890 10,736 10,092 Inventories 1,631 1,869 538 701 Investments 1,551 1,601 1,187 1,301 Trade Receivables 1,314 1,580 138 140 Cash and Cash Equivalent 1,511 2,080 651 880 Others Current Assets 499 665
Slide 15: Segment Revenue and Results
Consolidated Standalone ₹ Crore Q2 Sept19 Q2 Sept20 Variance Q2 Sept19 Q2 Sept20 Variance Basic Chemistry Products 2,056 1,839 (217) 696 677 (19) Segment Revenue Specialty Products 713 766 53 12 41 29 Less: Inter Segment Revenue (3) (3) 0 - - - 2,766 2,602 (164) 708 717 9 Unallocated Revenue 5 8 3 -
Slide 16: Soda Ash Volumes by Region
• Revival in Demand North America | In Kts for soda ash across 162 154 151 541 570 geography India | In Kts 475 118 389 288 275 • Good traction in 278 250 volumes on a Q-o-Q, 253 295 197 - - - - 139 Y-o-Y though Q1 FY20 Q2 FY20 Q1 FY21 Q2 FY21 Q1 FY20 Q2 FY20 Q1 FY21 Q2 FY21 volumes were lower Expor
Slide 17: Revenue Movement
Revenue Movement | ₹ Crore → Specialty Products India had a healthy demand 20 29 from both Nutritional solutions and silica 175 - business, especially around immunity boosters 49 78 25 and food and non food grade silica, respectively. → On consolidated financials, Y-O-Y impact was on account of lowe
Slide 18: PBT Movement and Other Income
PBT Standalone Movement | ₹ Crore → Standalone Other Income Breakup Standalone Q2 FY20 Q2 FY21 Dividend Income from JV - 26 Dividend Income from Subsidiaries - 24 Interest & Miscellaneous Income 68 53 68 103 68 212 55 → Other Income of ₹ 103 Crs in Q2 FY21 vs ₹ 68 Cr PY is due 144 26 63 to dividend
Slide 19: Consolidated Debt Position
Consolidated Debt Position | ₹ Crore 787 109 7,702 3,039 6,806 3,767 Gross Debt Mar20 Net Change Revaluation Gross Debt Sept20 Cash & Cash Equivalents Net Debt • Consolidated Cash and Cash Equivalent as on 30th September 2020 is ₹ 3,039 Cr (vs ₹ 3,660 Cr as on Mar20) Details • Standalone continues t
Slide 20: Key Highlights Basic Chemistry Products
Key Highlights Segment Revenue at ₹ 1,839 Cr (down by 11%) | → Revenue at ₹ 677 Cr (down 3%), operating profits were subdued at ₹ 121 Cr (margin Segment results at ₹ 152 Cr (down by 57%) 18%), down from ₹ 206 Cr (margin 30%) vs PY. India → Overall margins were impacted due to unprecedented heavy rai
Slide 21: Key Highlights Specialty Products
Key Highlights Segment Revenue at ₹ 766 Cr (up by 7%) | • Specialty products business had a good and encouraging second quarter. Overall Revenue Segment results at ₹ 90 Cr (up by 2%) Specialty Products increased to ₹ 41 Cr (up by 245%), on the back of increasing volumes and better price realisation
Slide 22: Statement of Profit and Loss by Entity
Statement of Profit and Loss for the quarter ended Sept 2020 Units TCL India US UK Africa Rallis Consolidated ₹ Crore PY CY PY CY PY CY PY CY PY CY PY CY Net Income 708 717 886 711 337 337 140 91 749 724 2,771 2,609 EBITDA 194 116 186 96 45 46 27 6 119 118 561 386 PBT 212 166 86 (26) 8 2 16 (5) 105
Slide 23: Sales and Production Volumes
Soda Ash | In Kts Sodium Bicarbonate | in Kts Edible Salt* | in Kts TCL India TCNA TCE TCM TCL India TCE For the Quarter 74 51 58 65 77 67 87 87 27 27 26 26 570 475 567 453 295 291 258 262 27 25 27 25 154 151 202 166 Sep-19 Sep-20 Jun-19 Jun-20 Sep-19 Sep-20 Jun-19 Jun-20 Sep-19 Sep-20 Jun-19 Jun-20
Slide 24: Revenues, EPS, Shareholding Pattern and Exchange Rates
Revenues | ₹ Crore & PAT | In % Earnings Price Per Share | In ₹ 3,50 0 25% 11.7 3,00 0 2,771 2,623 2,609 2,378 2,348 20% 2,50 0 7.3 15% 6.6 14% 2,00 0 1,50 0 10% 1,00 0 8% 8% 2.8 5% 5% 0.5 500 3% - 0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Shareholding Pattern | In % E
Slide 25: Advancing Science. Creating Value.
TATA CHEMICALS TATA Advancing Science. Creating Value. For any question/queries please contact & John Mulhall 3 jmulhall@tatachemcals.com & +91 22 6665 8282 & Sameer Kulkarni BS sakulkarni@tatachemicals.com & +91 22 6665 7942 & Gavin Desa &s gavin@cdr-india.com & +91 22 6645 1237 & Suraj Digawalekar