Gujarat Fluorochemicals Ltd. · NSE:FLUOROCHEM
Gujarat Fluorochemicals — Q4 FY2020 and Q1 FY2021 Earnings Presentation
28 slides from Gujarat Fluorochemicals's earnings presentation, Jul 30, 2020
Slide 1: Gujarat Fluorochemicals Limited Earnings Presentation
Gujarat Fluorochemicals Limited Earnings Presentation FY2020 Q4 & FY2021 Q1 30-07-2020 1
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Gujarat Fluorochemicals Limited (“GFCL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, resul
Slide 3: Index
INDEX Financial Results Overview Segmental Performance Segment-wise Outlook Company Overview Outlook 30-07-2020 3
Slide 4: Financial Results Overview
FINANCIAL RESULTS OVERVIEW 30-07-2020 4
Slide 5: Revenues
REVENUES 710 2,729 Rs. Crores 2,606 740 633 5% 11% 560 24% FY19 Q4 FY20 Q4 FY19 FY20 FY20 Q1 FY21 Q1 30-07-2020 Note: Revenue from Operations 5
Slide 6: EBITDA and EBITDA Margin
EBITDA AND EBITDA MARGIN Rs. Crores 31% 26% 26% 29% 854 207 190 21% 17% 553 144 110 47% 35% 24% FY19 Q4 FY20 Q4 FY19 FY20 FY20 Q1 FY21 Q1 EBITDA EBITDA % 30-07-2020 Note: EBITDA excludes Other Income 6
Slide 7: PAT and PAT Margin
PAT AND PAT MARGIN Rs. Crores 16% 16% 1,246 13% 584 11% 8% 7% 112 828 32 479 70 189 80 12% 70 59% 426 52% 11 26 113 204 47 -8 -21 -8 -26 FY19 Q4 FY20 Q4 FY19 FY20 FY20 Q1 FY21 Q1 PAT IT Credit Exceptional items PAT % 30-07-2020 Note: PAT % is without considering IT Credit and Exceptional Items 7
Slide 8: Segmental Performance
SEGMENTAL PERFORMANCE 30-07-2020 8
Slide 9: Revenues Breakup
REVENUES BREAKUP 740 Rs. Crores 2,729 5 710 2,606 9 81 12 46 28 1 138 110 43 32 633 118 % 47 37 57 % 177 37 % 71 560 174 3 9 26 % 10 5% 50 1,142 37 % 63 39 286 274 64 19 % 18 % 942 31 % 221 9% 199 25 % 512 35 % 133 144 469 26 % 100 351 13 % 22 % 93 84 82 305 63 64 120 34 % 494 22 % 121 48 % 80 386 6
Slide 10: PTFE Revenues Breakup
PTFE REVENUES BREAKUP 1,142 286 Rs. Crores 274 942 221 544 158 199 139 550 127 115 9% 1% 28% 598 135 128 94 391 84 30% 34% 35% FY19 Q4 FY20 Q4 FY19 FY20 FY20 Q1 FY21 Q1 Regular Grade Value Added Grade 30-07-2020 10
Slide 11: New Fluoropolymers Revenues
NEW FLUOROPOLYMERS REVENUES 174 Rs. Crores 39 64 37 138 47 5% 26% 37% FY19 Q4 FY20 Q4 FY19 FY20 FY20 Q1 FY21 Q1 30-07-2020 11
Slide 12: Fluorospecialty Chemicals Revenues
FLUOROSPECIALTY CHEMICALS REVENUES Rs. Crores 177 63 50 46 32 81 57% 118% 37% FY19 Q4 FY20 Q4 FY19 FY20 FY20 Q1 FY21 Q1 30-07-2020 12
Slide 13: Balance Sheet Breakup
BALANCE SHEET BREAKUP 6460 6460 Rs. Crores 303 57 413 652 552 5278 5278 15 130 193 565 371 43 695 388 813 2 219 574 1717 373 968 642 433 3624 2522 3507 3705 FY19 FY20 FY19 FY20 Fixed Assets Financial Assets Inventories Trade Receivables Other Assets MAT Credit Entitlement Equity & Reserves Borrowing
Slide 14: Segment-wise Outlook
SEGMENT-WISE OUTLOOK 30-07-2020 14
Slide 15: Chemicals – Caustic Soda
CHEMICALS – CAUSTIC SODA • Current position • Plants are currently running at 80% capacity • Caustic soda prices continue to be adversely impacted both because of curtailed demand because of Covid and surplus capacity which has been set up • Future Outlook • Prices are expected to remain depressed f
Slide 16: Chemicals - Chloromethanes
CHEMICALS - CHLOROMETHANES • Current position • Production was impacted in April – June quarter due to Covid lockdown • Plants are now running at full capacity • Demand for MDC, used mainly for pharma sector, remains strong • Future Outlook • Prices and demand are expected to remain stable because o
Slide 17: Chemicals – Refrigerants
CHEMICALS – REFRIGERANTS • Current position • R22 is used as a feedstock to make fluoropolymers, pharma and agro products, and as a refrigerant • There was a curtailment in demand in all the 3 segments and refrigerant demand was significantly impacted • Demand is expected to reach the pre-covid leve
Slide 18: PTFE
PTFE • Current position • PTFE sales were adversely impacted as demand fell both in the domestic and overseas markets because of Covid related lockdowns • In June domestic demand came back to about 80% and overseas demand to about 75% of pre-covid levels • Future Outlook • A very wide range of PTFE
Slide 19: New Fluoropolymers
NEW FLUOROPOLYMERS • Current position • Capacity of about 700 MT has been set up for 6 new fluoropolymers (FKM, PFA, FEP, PVDF, PPA, and micropowders) • Various grades under each have been established and are in the process of customer qualifications and commercial ramp up • There has been delay in
Slide 20: Fluorospecialty Chemicals
FLUOROSPECALTY CHEMICALS • Current position • 7 products have been fully commercialized, current capacity utilization is at around 35% • The last quarter saw relatively low capacity utilization due to inadequate raw material and manpower availability due to Covid lockdowns • Demand for all these pro
Slide 21: Company Overview
COMPANY OVERVIEW 30-07-2020 21
Slide 22: Key Strengths
KEY STRENGTHS • 30 years’ experience in safely handling F molecules • Most cost-competitive producer of fluoropolymers due to its fully integrated manufacturing operations • In house availability and adequate capacity of a host of key building blocks for F molecules • R&D and product development cap
Slide 23: Unparalleled Integration
UNPARALLELED INTEGRATION 30-07-2020 Note: some of the building blocks are used for fluorospecialty chemicals as well 23
Slide 24: Shareholding Structure
SHAREHOLDING STRUCTURE Share Price Performance Key Investors –March 2020 As on 30.06.2020 (BSE) 700 650 Market capitalization (Rs .Cr) 3908.46 600 550 Price (Rs.) 355.80 500 450 Face Value (Rs.) 1 400 350 52 week High-Low (Rs.) 900-219 300 250 Key Investors –March 2020 % Holding 200 Jan-20 Feb-20 Ma
Slide 25: Outlook
OUTLOOK <A VALUE THROUGH GREEN CHEMISTRY
Slide 26: Major Initiatives
MAJOR INITIATIVES R&D • R&D capabilities have been considerably strengthened in terms of manpower and developing state-of-the-art analytical and testing labs • Through our inhouse expertise, we have been able to develop a wide range of Fluorospecialty chemicals for increasing Agro and Pharma applica
Slide 27: Company Level Outlook
COMPANY LEVEL OUTLOOK Company’s performance in coming quarters is expected to be driven by improved capacity utilisation in PTFE, New Fluoropolymers and Fluorospecialty Chemicals All growth is expected to come from products / segments that have a higher profit margin, thus improving the margin p
Slide 28: Thank You
Thank You 30-07-2020 28
Gujarat Fluorochemicals — Q4 FY2020 and Q1 FY2021 Earnings Presentation on 6ix