Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q4 FY2021 Earnings Presentation
24 slides from Aarti Industries's earnings presentation, May 19, 2021
Slide 1: Cover letter to stock exchanges
Ref. No: AIL/B-40/2021/019 May 19, 2021 To, To, Listing/Compliance Department Listing/Compliance Department BSE LTD. National Stock Exchange of Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C/1, Mumbai – 400 001. G Block Bandra-Kurla Complex, Bandra (E), Mumbai –
Slide 2: Q4 & FY21 Results Presentation
AARTI INDUSTRIES LIMITED Q4 & FY21 Results Presentation 18th May 2021
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Agenda
Agenda 1 | At a glance 2 | Quarterly and Annual performance 3 | Growth Plan: Projects & Growth Estimates 3
Slide 5: Company Overview
Company Overview Overview Key Metrics A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost optimization 200+ 400+ 700+ Global Domestic Established by first generation technocrats in 1984 Products Customers Customers Pharma operat
Slide 6: Key Strengths
Key Strengths • Global Player in Benzene based Derivatives with Integrated Operations o Strong/Leadership position in key products and processes o Integrated operations across product chain of Benzene and Toluene o Ability to effectively use co-products and generate value-added products • Well Diver
Slide 7: Agenda
Agenda 1 | At a glance 2 | Quarterly and Annual performance 3 | Growth Plan: Projects & Growth Estimates 6
Slide 8: Key Highlights – FY21
Key Highlights – FY21 Major factors impacting performance ● COVID-19 Impact - Demand impact on Discretionary part of the business (about 40% of the speciality chemical segment). Majorly recovered in Q3 & Q4 FY21 - Restrictions on Manpower movement impacted operations and project work. - Logistics im
Slide 9: Chairman's Message
Chairman’s Message Commenting on the performance, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said, “Despite the challenging year, I am pleased to share that the company has been able to present an outstanding performance in one of the most challenging phase we have witnessed so f
Slide 10: Q4 & FY21 P&L (Consolidated)
Q4 & FY21 P&L (Consolidated) Particulars Y-o-Y Y-o-Y Sustained revenue growth driven by FY21 FY20 Q4 FY21 Q4 FY20 volume expansion and 75% contribution (Rs. Crore) (%) (%) from value-added products Gross Income from Operations 5,023 4,621 8.7% 1,347 1,190 13.2% Gross margins returned to normaliz
Slide 11: Revenue Performance (Consolidated)
Revenue Performance (Consolidated) Revenue Export CAGR: 12% 2,186 1,977 1,966 1,523 1,596 5,023 4,705 4,621 3,806 3,163 FY17 FY18 FY19 FY20 FY21 Speciality Chemicals Pharmaceuticals CAGR: 13% CAGR: 20% 872 4,151 726 756 3,979 3,865 2,985 556 2,569 426 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY2
Slide 12: EBIT Performance (Consolidated)
EBIT Performance (Consolidated) EBIT CAGR: 12% 932 952 957 615 663 FY17 FY18 FY19 FY20 FY21 Speciality Chemicals Pharmaceuticals CAGR: 7% CAGR: 44% 205 819 814 753 566 581 137 113 79 48 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 In Rs. Crore 11
Slide 13: Financials – (Consolidated)
Financials – (Consolidated) Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth 965 977 982 536 524 492 4,705 5,023 4,621 699 3,806 654 316 333 3,163 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Debt Profile D/E Net Debt/EBITDA 2.9 2.4 2.1 1.8 1.7 1.1 1.3 0.9 0
Slide 14: Speciality Chemicals: Quarterly Revenue and EBIT
Speciality Chemicals: Quarterly Revenue and EBIT Speciality Chemicals - Revenue 984 841 1,109 1,079 1,123 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Revenue Speciality Chemicals EBIT & EBIT % 20.7 18.7 17.5 15.4 17.1 172 130 190 224 210 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 EBIT EBIT % Consolidated b
Slide 15: Q4 & FY21 – Speciality Chemicals
Q4 & FY21 – Speciality Chemicals Revenue Revenue 3865 4151 1123 984 Annual maintenance shutdown at the Acid Division at Vapi and asset revamp linked maintenance shutdown at Jhagadia – both taken in Q4FY21, impacted volumes and resulted in higher costs by about Rs 12 crore Q4 FY20 Q4 FY21 FY20 FY21
Slide 16: Pharma Segment: Quarterly Revenue and EBIT
Pharma Segment: Quarterly Revenue and EBIT Pharma - Revenue 206 194 222 232 224 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Revenue Pharma EBIT & EBIT % 23.3 25.5 23.8 21.2 17.4 36 45 57 55 47 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 EBIT EBIT % Consolidated basis; in Rs. Crore 15
Slide 17: Q4 & FY21 – Pharma
Q4 & FY21 – Pharma Revenue Revenue Pharma business revenue grew by 15% YoY 206 224 872 during FY21 – topline at highest ever levels 756 historically. Pharma Ebit grew by 50% during FY21 – EBIT at highest ever levels historically. Sustainability initiative linked shutdown taken at Pharma units
Slide 18: Agenda
Agenda 1 | At a glance 2 | Quarterly and Annual performance 3 | Growth Plan: Projects & Growth Estimates 17
Slide 19: Our Growth Strategy
Our Growth Strategy Value Chain oO Customer New Value Expansion Collaboration Chains Scale up of capacities in Co-development and scale Extension of process and chemistry existing products up of new products through expertise to enter new value chains + New markets and applications for customer part
Slide 20: Major Projects: FY19 - FY23
Major Projects: FY19 - FY23 Operationalised by FY21 To be Completed by FY23 USFDA Capacities Expansion Operationalised New Expansion cum Asset underway: Chlorination Unit at Jhagadia. Upgradation for Acid Unit API unit at Tarapur, & at Vapi Intermediates unit at Vapi Operationalized Phase 1 Unit at
Slide 21: Future Growth Projects: FY22-24
Future Growth Projects: FY22-24 (Driven by R&D & Innovation) Highlights Introducing Chloro Toulenes ● Adding new chemistries and Value Value Chain: added products (Range of products) ● 40+ products for Chemical ● 50+ products for Pharma Newer range of Setting up Value Added products ● EBIDTA margin
Slide 22: Growth Estimates
Growth Estimates Capex FY22-FY24: ~ Rs 4500 crs – 5000 crs FY27 Growth (over FY21) Turnover: 2.5x-3.5x FY24 Growth EBIT: 3x - 4x (over FY21) PAT: 3x - 4x FY21 Snapshot Turnover: 1.7x -2.0x Turnover: 5000 crs EBIT: 1.7x - 2.0x EBIT: 750 crs PAT: 1.7x – 2.0x PAT: 523 crs 21
Slide 23: Contact Us
Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti-industries.com Shiv Muttoo / Shruti Joshi CDR India Tel: +91 98335 57572 / +91 75065 67349 Email: shiv@cdr-indi
Slide 24: Thank You
Thank You