Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — Q1 FY2022 Earnings Presentation
30 slides from Nath Bio-genes (india)'s earnings presentation, Aug 10, 2021
Slide 1: Nath Bio-Genes cover letter: presentation on unaudited financial results
um Nath Bio-Genes Se. (1) Ltd. (CIN L01110MH1993PLC072842) 10% August 2021 The Manager-Listing The Manager-Listing BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Bandra (E) Mumbai-400001 | Mumbai-40005 1 BSE Code-53729
Slide 2: Q1FY22 Performance
QIFY22 Performance ry oe Se. Nath Bio-Genes (I) Ltd. azar aa, attat AT
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 4: Strategic Update
Strategic Update New Products Kharif Season Update Developments/Launches Cotton packets sold 13.63 Lacs Cotton Gearing up for Rabi growth 8.5 % YOY Vegetable Sales lined up Already crossed last year full cotton sales PNS new products emphasised Expected sales return between 20% Mustard and Wheat sto
Slide 5: Strong Operating and Financial Performance
Strong Operating and Financial Performance o Non - cotton, non - paddy portfolio contributed 22% to revenue o Non Cotton and Non Paddy portfolio contribution reduced from 80% to 78% Operating Performance o Cotton growth at 8.5% YoY o Paddy growth at 8.0% YoY o Revenue up 11% YoY o EBITDA up 10% YoY
Slide 6: Managing Headwinds
Managing Headwinds Impact of Covid o Covid second wave - Kharif sowing hampered o Processing and logistics have been normalised with extra efforts Illegal BT Cotton o Farmers can grow only BT Cotton, however they have veered towards another hybrid – HT BT in past few years. o The process saves on la
Slide 7: Income Statement
Income Statement Particulars (INR Mn) Q1FY22 Q1FY21 % Change (YoY) FY21 FY20 % Change (YoY) Total Revenue 2146 1933 11% 3076 2799 10% Gross Profit 998 956 5% 1715 1536 12% Gross Margin (%) 46.5% 49.4% 56% 55% EBITDA 481 438 10% 667 547 22% EBITDA Margin (%) 22.4% 22.9% 22% 20% Depreciation 7 7 2% 28
Slide 8: Segment wise Operating Performance
Segment wise Operating Performance Products Metric Q1FY22 Q1FY21 YOY Growth FY21 Cotton Packets in lakhs 13.63 12.57 8.5% 12.24 Paddy Quintals 59,382 54,984 8.0% 83,839 Other Crops (Bajra, Quintals 17,461 13,697 27.5% 34,195 Maize) o Surpassed FY21 cotton sales in Q1 only. o Revenue from Paddy grew
Slide 9: Segmental Revenue Contribution- Cotton + Paddy share reducing
Segmental Revenue Contribution- Cotton + Paddy share reducing Q1FY22 Revenue Q1FY21 Revenue INR 2,146 Mn INR 1,933 Mn Others, 22% Others, 30% Cotton, 43% Cotton, 47% Paddy, 35% Paddy, 33% Cotton Paddy Others Cotton Paddy Others • include: Jowar, Bajra, Maize, Mustard, Wheat
Slide 10: Highly Ranked Cotton Products – Gaining market share in declining market
Highly Ranked Cotton Products – Gaining market share in declining market o Volume growth of 20% projected for FY22 3 YEAR OUTLOOK: o Sales return provision of 25% 20% + Growth CAGR o Special Campaign being undertaken to educate farmers P Progress of Acreage under COTTON BT (in Lk Hectare) - STATE-WI
Slide 11: Paddy: Strong volume growth
Paddy: Strong volume growth 3 YEAR OUTLOOK: o Volume growth projected at 20% in FY22 20% + Growth o Research Efforts underway for new products P Presence of Paddy across India 10+ Key Products Key Markets Paddy Products launched in last 5 years Hybrid Vegetable Market Size: INR 25 – 30 Bn Loknath Bi
Slide 12: Highly diversified vegetable Portfolio
Highly diversified vegetable Portfolio o Volume growth of 25-30% projected in FY22 3 YEAR OUTLOOK: o High Margin segment : 60%+ margins 30% + Growth o New products being launched o Vegetable vertical achieving results P Hybrid Vegetable Market Size: INR 25 – 30 Bn Hybrid Vegetable Industry: Market B
Slide 13: Win Chi Win : Major growth booster
Win Chi Win : Major growth booster 3 YEAR OUTLOOK: o Volume growth of 25% projected in FY22. 30% + Growth o Overall sales effected due to COVID situation o High Margin segment : 70%+ Margins o Territories being enhances to sustain growth Geographical Presence of Win Chi Win • A growth enhancer for •
Slide 14: Innovate, Help, Grow
Innovate, Help, Grow Innovate Help Grow (5 Year Performance] 45 150,000 81% New Seeds Developed in last 5 Employment Generated Revenue Growth years 100+ years 50,000 2.3x Contract Farmers EBITDA Growth R&D Team experience #1-3 20,000+ 3.4x Direct Retailers PAT Growth ICAR Trials 15+ 15,000 465 bps P
Slide 15: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Building A Strong Organisation; Evolved into a Dividend Paying Company Developing Innovative Products Making the Portfolio more Balanced Balance Sheet becoming Stronger Strategic Presence across Seed Value Chain Delivering strong growth despite an uncertain env
Slide 16: Working Capital Cycle – Impacted by higher inventory due to Covid
Working Capital Cycle – Impacted by higher inventory due to Covid All figures in INR mn FY21 FY20 Revenue 3076 2799 Inventories 2263 2043 Trade Receivables 1094 1070 Trade Payables 452 682 Net Working Capital 2905 2431 FY21 FY20 Inventory Days 268 266 Receivable Days 130 140 Payable Days 54 89 Worki
Slide 17: Stable Balance Sheet Despite Growth
Stable Balance Sheet Despite Growth Assets (INR Mn) FY21 FY20 Liabilities (INR Mn) FY21 FY20 Fixed Assets 2469 2460 Share Capital 190 190 Financial Assets 53 52 Reserves & Surplus 5943 5386 Other Non-current Assets 134 15 Long-Term Borrowings 7 3 Inventories 2263 2043 Long-term Provisions 26 24 Trad
Slide 18: Corporate Overview
Corporate Overview ry oe Se. Nath Bio-Genes (I) Ltd. azar aa, attat AT
Slide 19: Strategy 4.0
Strategy 4.0 Altering strategy to create a more robust & de-risked business model Risks Change in Strategy Action Points o Portfolio Concentration o Limiting revenue contribution of any o Developing products in multiple Risk single crop to less than 25% food crops like Maize, Jowar, Bajra o Cotton &
Slide 20: Last 5 Years: Cotton & Paddy Driven Growth
Last 5 Years: Cotton & Paddy Driven Growth Revenue Growth Contributors (INR Mn) 3,076 Cotton + Paddy: Aggregate Sales Contribution over last 5 years = 60%+ 297 140 132 522 363 1,621 Revenue 2016 Cotton Paddy Vegetables Win Chi Win Others Revenue 2021 19
Slide 21: Next 5 Year: Multiple Growth Drivers
Next 5 Year: Multiple Growth Drivers Moving towards a Diversified and De-Risked Portfolio (% Sales) Plant Nutrient Supplement 10 12 14 Vegetables 11 PNS+Vegetables+Others 16 16 Others* 17 19 20 Cotton + Paddy 62 54 50 2020-21 2021-22 E 2022-23 E * include: Jowar, Bajra, Maize, Mustard, Wheat 20
Slide 22: Building a Strong Organisation
Building a Strong Organisation • Imbibing a culture of continuous growth and strong governance 500+ • Hiring industry experts in each key area of Employees operations – R&D, Finance, Supply-Chain • Empowered teams, well-aligned with organisation vision 150+ • Strong risk management framework New Emp
Slide 23: Developing Innovative Products
Developing Innovative Products Holistic Products to Address Problems of • World Class R&D Infrastructure • Launched 36 Innovative Products Developed Low Yields across Segments Climate Change • 8-10 new products in pipeline in cotton • 20+ new products in pipeline in Vegetables Pest Infestations Seed
Slide 24: Strategic Presence Across the Seed Value Chain
Strategic Presence Across the Seed Value Chain Genetic Resources/Germplasms 18,000+ Germplasm Library R&D 100+ years R&D Team experience New Seed Development ICAR Trials 36 done at Seed varieties launched in last 3 years Commercial Production this stage 50,000 Contract Farmers Marketing and Distribu
Slide 25: Appendix
Appendix ry oe Se. Nath Bio-Genes (I) Ltd. azar aa, attat AT 24
Slide 26: Visionary Leadership; Attracting the Best Talent
Visionary Leadership; Attracting the Best Talent Mr. N Mr. Satish Nath Promoters are committed to sustainable Kagliwal Kagliwal MD growth and are working towards making Nath one Chairman of the best seeds company globally. Leadership Team Research & Product Development Nath leadership team shares th
Slide 27: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Net Debt (INR Mn) Net Worth (INR Mn) 6133 679 5576 659 5076 576 4692 478 363 3033 207 1071 1213 FY15 FY16 FY17 FY18 FY19 FY20 FY21 -121 FY15 FY16 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 21% 22% 20% 18% 18% 19% 19% 17% 17% 15% 15% 14% 9%
Slide 28: Historical Income Statement
Historical Income Statement Nath Bio-Genes’ P&L Statement Particulars (INR Mn) FY21 FY20 FY19 Total Revenue 3076 2799 2,309 Gross Profit 1715 1536 1,253 Gross Margin (%) 56% 55% 54% EBITDA 667 547 433 EBITDA Margin (%) 22% 20% 19% Depreciation 28 14 14 Finance Cost 88 65 52 PBT 568 485 389 PAT 557 5
Slide 29: Historical Balance Sheet
Historical Balance Sheet Assets (INR Mn) FY21 FY20 FY19 Liabilities FY21 FY20 FY19 Fixed Assets 2469 2,460 2,317 Share Capital 190 190 190 Financial Assets 53 52 52 Reserves & Surplus 5943 5,386 4,885 Other Non-current Assets 134 15 20 Long-Term Borrowings 7 3 5 Inventories 2263 2,043 1,554 Long-ter
Slide 30: Thank You
Thank You CIN_NBIL_L01110MH1993PLC072842 For further information, please get in touch with: Sheetal Khanduja Niharika Shah sheetal@GoIndiaadvisors.com niharika@GoIndiaadvisors.com M:+91 97693 64166 M:+91 97690 98986 29
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