Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Q4 FY22 Earnings Presentation
35 slides from Chemcon Speciality Chemicals's earnings presentation, May 28, 2022
Slide 1: Regulation 30 cover letter to stock exchanges
@H@me@n REACH cHEMC0il Speciality Chemicals Limited CIN : 124231 GJ1 988P1C01 1652 286May,2OZ To, To, BSE Limited National Stock Exchange of India Limited Listing Compliarrce & Legal Regulatory Listing & Compliance Phiroze Ieeieebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Mumbai
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – May 2022
Chemcon Speciality Chemicals Limited Investor Presentation – May 2022
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemcon Speciality Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q4 & FY22 Highlights
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Slide 5: Business Highlights
Business Highlights “We are pleased to close our financial year on a positive note led by continued business momentum in pharma chemicals & moderate recovery of bromide business during the quarter. We clocked a total operating revenue of Rs 89 crs for the quarter, a growth of 25% on YoY basis. Our H
Slide 6: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +24.7% +31.9% +37.3% 89.1 27.5 21.3 71.5 20.8 15.5 17.3 13.5 49.5 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4 FY21 Q3 FY22 Q4 FY22 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 1,954 1,883 Others 2% Export 28%
Slide 7: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +5.6% +0.6% +11.3% 243.5 257.1 81.1 81.6 62.8 56.4 FY21 FY22 FY21 FY22 FY21 FY22 Geographic-Wise (%) Business-wise (%) Production Volume (MT) 6,841 0% 1% 6,065 Others 13% 23% Oilwell 2,011 Export 29% 37% Oilwell 2,703 Pharma
Slide 8: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Revenue from Operations 89.1 71.5 24.7% 257.1 243.5 5.6% Cost of Goods Sold 45.3 37.3 124.4 122.9 Employee Cost 5.1 4.3 19.1 15.9 Other Expenses 11.2 9.0 32.0 23.6 EBITDA 27.5 20.8 31.9% 81.6 81.1 0.6% EBITDA Margin
Slide 9: Balance Sheet
Balance Sheet ASSETS (Rs. Crs) Mar-22 Mar-21 EQUITY AND LIABILITIES Mar-22 Mar-21 Non-Current Assets EQUITY AND LIABILITIES Equity a) Property, Plant And Equipment 81.7 65.5 a) Equity Share Capital 36.6 36.6 b) Capital Work in Progress 34.0 8.5 b) Other Equity 380.6 317.1 c) Right Of Use Asset 0.5 1
Slide 10: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Crs.) Mar-22 Mar-21 Net Profit Before Tax 84.0 76.1 Adjustments for: Non Cash Items / Other Investment or Financial Items -1.3 6.4 Operating profit before working capital changes 82.7 82.4 Changes in working capital 14.6 -1.8 Cash generated from Operations 97.3 8
Slide 11: Company Overview
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Slide 12: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality Chemicals 3rd Largest Manufacturer of HMDS Worldwide An ISO 9001:2015 and ISO 14001:2015 Certified Company Largest Manufacturer of CMIC worldwide Business Verticals: Pharmaceuticals & Oilwell Completi
Slide 13: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15-16 » Company was » First sale of few » Commenced HMDS » First export shipment of » First sale of CMIC » First sale of Calcium incorporated as chemical products Business in 2001 HMDS Bromide (Solution) Gujarat Quinone • Pyridine Private Limited Hydrobromi
Slide 14: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » Japan America » United Arab FY22 Export Contribution*: » Italy Emirates ~37% » South Korea » Germany » Russia » Spain » People’s Republic of » Thailand China » Malaysia Over Two Decades of • Manufacturing Well Equipped to Seiz
Slide 15: Entry Barriers
Entry Barriers Complex Chemistry Stringent Impurity Measure » The involvement of complex chemistry in » Our processes and products are subject to, and the manufacture of the Products, which is measured against, high quality standards and difficult to commercialize on a large scale stringent impurity
Slide 16: Key Long-Term Relationships
Key Long-Term Relationships Pharmaceutical Chemicals Oilwell Completion Chemicals Inorganic HMDS CMIC Bromides Shree Radha CC Gran Limited Overseas Liability Company Longstanding New Product New Customer Strong Base Clients Development Reach Top 7 customers Leading to increase Few customers age Well
Slide 17: Moving up the Value Chain
Moving up the Value Chain Added New Product like FY15 Revenue FY22 Revenue Business 4 CBC, 2,5 DHT & Others Rs 64 Crs Rs 257 Crs Commenced CMIC business in 2014 CMIC Rs 10 Crs Rs 68 Crs HMDS Rs 36 Crs Rs 122 Crs Commenced HMDS business in 2001 Bromides Rs 13 Crs Rs 60 Crs Commenced Bromide business
Slide 18: Board of Directors : Experienced Team
Board of Directors : Experienced Team Kamalkumar Rajendra Aggarwal Navdeep Naresh Goyal Chairman and Managing Director Deputy Managing Director » Holds Diploma in Petrochemical Technology (Plastic » He is currently associated with Super Industrial Lining Private Technology) from the Maharaja Sayajir
Slide 19: Board of Directors : Independent Directors
Board of Directors : Independent Directors Lalit Chaudhary Pradeep Agarwal Independent Director Independent Director » He holds a bachelors’ degree in commerce from the Sardar » Qualified as Chartered Accountant and Company Secretary Patel University, Gujarat » He is a Managing Director in a pharmac
Slide 20: Key Certifications
Key Certifications Key Certificates R&D Environment In-house laboratory to test Complying All Environment Laws » Raw materials procured » The Environment (Protection) Act, 1986 » New Products & Innovation » Water Prevention and Control of Pollution Act » Final products testing at the various stages
Slide 21: Product Overview
Product Overview
Slide 22: Market Overview
Market Overview Oilwell Completion HMDS CMIC Chemicals Global Market ~35,700 MT ~6,880 MT ~362,000 MT Capacity (CY19) Global Market ~25,390 MT ~3,927 MT ~246,000 MT Production (CY19) Chemcon Production 2,068 MT 1,295 MT 2,703 MT (FY22) Chemcon Share in > 5% > 30% ~1% Global Market Domestic Import (C
Slide 23: HMDS
HMDS Hexamethyldisilazane / Hexamethyldisilane » HMDS, an organosilicon compound, is a reagent and a precursor to bases that are popular in organic synthesis and organometallic chemistry » HMDS is widely used in the pharmaceutical industry as a silylating agent in the process of manufacture of pharm
Slide 24: CMIC
CMIC Chloromethyl Isopropyl Carbonate » CMIC (chloromethyl isopropyl carbonate) is an antiviral drug intermediate product, which is a key intermediate for anti-AIDS and anti-hepatitis B drug Tenofovir » The downstream product of chloromethyl isopropyl carbonate, Tenofovir is a nucleotide antiviral d
Slide 25: Oilwell Completion Chemicals
Oilwell Completion Chemicals Inorganic Bromides: Calcium Bromide, Zinc Bromide and Sodium Bromide » Oilwell Completion Chemicals are used to complete the well and is normally a salty solution made up of chlorides or bromides » In addition to cleaning the wellbore, after the drilling is finished, com
Slide 26: Manufacturing Facilities
Manufacturing Facilities » P4 » P6 » P7 » P5 » P8 » P9 » P10 » P1 » P3 » P2 Improving Dedicated Plants Multipurpose Plants In-house Laboratory Warehouses Efficiencies 25
Slide 27: Manufacturing Facilities
Manufacturing Facilities Installed Capacity Volume Reactor Located at Manjusar near Plant No Product categories Product Manufactured (MT P.A) Capacity (In KL) Vadodara, Gujarat P-3 & P-7 HMDS and ancillary products 4,200 177.80 8 Operational Plants P-2 HMDS (hi-purity) 600 13.00 P-4 CMIC 2 Proposed
Slide 28: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We intend to build two additional plants P9 & P10 unit » India’s current domestic demand being catered by imports for HMDS and CMIC » These additional plants shall be utilised for the manufacturing of chemicals which » We are the only manufactu
Slide 29: Way Forward
Way Forward Moderate Recovery Exploring Strong Growth in in Opportunities in Pharma Industry Oil Industry New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 28
Slide 30: Financial Highlights
Financial Highlights
Slide 31: Financial Trends
Financial Trends Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +13.0% +16.0% 303.3 81.1 81.6 +24.2% 62.8 262.1 257.1 70.3 56.4 243.5 66.1 48.9 43.0 157.6 45.1 26.4 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Geographic-Wise (%) Business-wise (%) Production Volume
Slide 32: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) 130 131 121 122 107 84 88 65 68 56 60 48 33 34 31 HMDS CMIC Oilwell FY18 FY19 FY20 FY21 FY22 Production Volume (MTPA) 8,248 5,847 6,039 2,915 3,033 2,703 1,674 2,068 1,796 2,011 1,588 1,196 1,295 1,076 808 HMDS CMIC Oilwell 31
Slide 33: Key Ratios
Key Ratios Fixed Asset Net Debt/ equity (x) Turnover(x) 0.35 7.7 0.32 0.31 5.3 5.5 3.7 3.2 0.09 0.01 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 ROCE (%) ROE (%) 61% 49% 45% 49% 34% 35% 21% 19% 16% 15% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 32
Slide 34: Utilisation of the Net IPO Proceeds
Utilisation of the Net IPO Proceeds Original Cost Utilisation Upto Unutilisation Amounts Particulars Revised Cost (as per Prospectus) 31-03-2022 as on 31-03-2022 Capital expenditure towards expansion of Manufacturing Facility 41.0 41.0 41.0 - Incremental working capital requirement 90.0 90.0 40.0 50
Slide 35: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – L24231GJ1988PLC011652 Mr. Rajesh Gandhi - CFO Email – rajesh@cscpl.com www.cscpl.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shrikant Sangani / Ms. Pankti Majithia Email - shrikant.sangani@sgapl.net/ pankti.majithia@sgapl.
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