Slide 1: Investors' Presentation - Q1 FY24 Business Update (exchange cover letter)
GHCL Limited August 7, 2023 JSITTflJT {3ffttq;) - Cfi"UI qltf - :u L:nA flra;Jr~~o'o National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, "Exchange Plaza" 151 Floor, New Trading Ring, Rotunda Building , Sandra - Kurla Complex, P.J. Towers, Sandra (E), Mumbai - 400
Slide 2: Q1 FY24 Investor Update
GHCL Limited Q1 FY24 Investor Update August 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Management commentary
Management commentary Commenting on the Q1 FY24 performance, Mr. R. S. Jalan, MD said: “We reported resilient performance in the first quarter of the current fiscal year on the backdrop of challenging market conditions aggravated by higher-than-expected imports of Soda Ash into the country from Russ
Slide 5: Demerger of the spinning business into GHCL Textiles Limited
Demerger of the spinning business into ‘GHCL Textiles Limited’ Effective April 1, 2023, GHCL Limited has successfully demerged its spinning business into a separate entity called GHCL Textiles Limited. GHCL shareholders have received shares of GHCL Textiles Limited in the ratio of 1:1, and it was li
Slide 6: Performance highlights – Q1 FY24
Performance highlights – Q1 FY24 Revenue EBITDA PAT* Cash Profit* Rs. 1,029 crore Rs. 310 crore Rs. 207 crore Rs. 231 crore Q1 FY24 Vs 11% 15% 16% 14% Q1 FY23 (Y-o-Y) Note: *Excluding exceptional profit on demerger of spinning business amounting to Rs. 219 Crore. 5
Slide 7: Profit & loss statement
Profit & loss statement (Rs. In Crore) Particulars Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q FY23 Revenue from continued operations* 1,029 1,153 (11%) 1,141 (10%) 4,584 Operating Expenses of continued operations 719 789 (9%) 771 (7%) 3,064 EBITDA from continued operations 310 364 (15%) 370 (16%) 1,520 EBI
Slide 8: Resource allocation & key financial ratios
Resource allocation & key financial ratios Efficient Capital Allocation – Q1 FY24 Net Debt Free Rs. 46 crore Rs. 165 crore Net Cash Surplus of Debt Repayment Working Capital Rs. 213 cr. Rs. 276 cr. Key Ratio’s Generated Cash inflows Gross Debt Net Debt/ Equity Net Debt/ EBITDA Rs. 13 crore Rs. 3
Slide 9: Q1 FY24 highlights
Q1 FY24 highlights (Rs. In Crore) Quarterly Trend Particulars Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 1,153 1,183 1,107 1,141 1,029 34% Revenue 1,029 1,153 (11%) 1,141 35% 32% 32% 30% 364 413 372 370 EBITDA 310 364 (15%) 370 310 EBITDA % 30.1% 31.6% (146 bps) 32.5% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Reve
Slide 10: Business outlook – Short to Near term
Business outlook – Short to Near term • Recessionary trend in most part of world including Americas, China and Europe adversely impacting demand. • Soda Ash market is oversupplied globally. • As indicated in last call, some blip may occur in short term, While new capacities came on stream in China a
Slide 11: Business outlook – Medium to Long term
Business outlook – Medium to Long term • As per global industry outlook, long term demand is very healthy and is likely to grow from 63 million MT to 78-83 million MT by 2030 • This increase in demand shall be driven by newer segments such as solar glass, lithium and sodium bi-carbonate • In view of
Slide 12: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Outlook Soda Ash demand remained tepid and market continued to GLOBAL SIZE: CAPACITY-71 MMT, PRODUCTION-64 MMT oversupplied during the quarter in most parts of the world with softer realizations in anticipation of new capacities. CAPACITY: 15.1
Slide 13: Quality assets, high-potential runway for growth
Quality assets, high-potential runway for growth Chemicals business Chemicals Performance • 1.2 mn tons largest single location facility • Comfort of key input material integration Revenues (5-year CAGR) 17% • Industry leading efficiency and productivity EBITDA Margins (5 Years Avg.) 29% • Brownfiel
Slide 14: Focus on driving responsible future growth – Inorganic Chemicals
Focus on driving responsible future growth – Inorganic Chemicals Inorganic Chemicals – Growth levers • Vacuum salt from waste energy. • Salt Yield improvement. • Benefits from doubling (Sodium Bicarbonate) Capacity from 60k to 120K MT. • Focus on Greenfield Soda Ash project of 5L MT • Augmenting bac
Slide 15: Inorganic chemicals – Sodium bicarbonate
Inorganic chemicals – Sodium bicarbonate Generally named as Doubled capacity baking soda, bread from 30,000 to 60,000 MT in soda, cooking soda Doubling capacity from and bicarbonate of 60,000 MT to 1,20,000 December 2017 soda MT Likely solution-based Used in Cooking, Specialization and Pharmaceutica
Slide 16: Key application of Sodium bicarbonate
Key application of Sodium bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment is under trial phase; could be a game changer if successful Animal Feed Chemicals 15
Slide 17: Awards & recognitions
Awards & recognitions Mahatma Award HR Excellence Award 5 Notch Upgrades in last 6 years Enhanced Credit Ratings – Upgraded to AA- with Stable outlook, GHCL received 12th CII National HR for CSR Excellence Excellence Award for strong commitment 13th CEO Conference Referred as Great Place to work in
Slide 18: Company Overview
y Company y Overview
Slide 19: GHCL – An introduction
GHCL – An introduction 1 Targeting Best-in-class Professional Mgmt. • To grow profits at a CAGR 15% on a long-term • Operations management • Focused management approach horizon • CAPEX planning and execution • Strategy led by professional • To inculcate value systems that defines our culture • Finan
Slide 20: GHCL overview
GHCL overview Best in class Focus to emerge 3 decades of operational as a sustainable Indian efficiencies and business Manufacturing capacity utilizations organization experience Leading soda Business Professionally ash player in Philosophy of managed India Inclusive growth of workforce all stakehol
Slide 21: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Spindles capacity increased to Soda Ash production capacity Soda Ash production Production with 4.2 Lacs 175K, installed 3320 rotors in increased to 11 Lacs MTPA / year capacity enhanced to 12 Lacs MTPA which was further spinning in FY2019 MT in
Slide 22: Our objective
Our objective “Achieve a CAGR growth of 15% in bottom-line with creating value for all our 5 stakeholders” Responsible Growth ESG Organic Growth – CAPEX, Non- HSE – Zero Harm, CSR – CAPEX led Growth, Growth – M&A/ Responsible Citizen and JV and Optimize Return on Capital Renewable Energy Brand Image
Slide 23: Core values at forefront
Core values at forefront MISSION • GHCL is a unique workplace which is dotted with its Core Responsibly maximising Values, defining its culture stakeholder value • Every employee in the Company is expected to imbibe its Core Values and interact within the business ecosystem with all its stakeholders
Slide 24: Spearheaded by distinguished management
Spearheaded by distinguished management R S Jalan Raman Chopra Managing Director CFO & Executive Director Mr. Anurag Dalmia Neelabh Dalmia Dr. Manoj Vaish Experienced and (Vice Chairman) (Executive Director, (Independent Director) Growth & Diversification) accomplished Board of Directors Mrs. Vijayl
Slide 25: About us
About us GHCL Limited was incorporated on 14th October 1983. The Company has established itself as a well-diversified group with an ascertained footprint in chemicals and consumer products segments. In Chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major r
Slide 26: Thank You
a Thank You