Paradeep Phosphates Ltd. · NSE:PARADEEP
Paradeep Phosphates — Investor Presentation (November 2022)
39 slides from Paradeep Phosphates's investor presentation, November 2022
Slide 1: Nourishing the Future - Feeding the Nation
Investor Presentation www.paradeepphosphates.com November 2022 Nourishing the Future - Feeding the Nation
Slide 2: Agenda
Agenda • PPL Investment Case • Industry Dynamics • Environment, Social and Governance • Financial Performance Highlights 2 Page 2 of 30 2
Slide 3: PPL Investment Case
PPL Investment Case Page 3 of 30
Slide 4: Business Overview
Business Overview Paradeep Phosphates is India’s second largest integrated phosphatic private sector company ▪ Paradeep Phosphates Limited (PPL) is India’s second largest private sector phosphatic company with a capacity of 3.0 MMTPA (finished fertilizers NPK, DAP and Urea) 3.0 MMTPA 16 States Insta
Slide 5: PPL Investment Case
PPL Investment Case Backward integration resulted in best-in-class EBITDA / tonne in an industry with attractive dynamics Well-positioned to capture favorable Indian fertilizer market with enabling and conducive government regulations • PPL will be able to capture a major share of growth in DAP / NP
Slide 6: Competitive Positioning
Competitive Positioning Manufacturing Comprehensive Product Backward integration of Capabilities Portfolio rock phosphate Paradeep capacity 1.8 MTPA: Consumer product portfolio: Raw material: NPK / DAP – 1.8 MTPA Five grades of NPK Stable source of raw materials, especially Goa capacity 1.2 MTPA: DA
Slide 7: Raw Material and Operational Backward Integration
Raw Material and Operational Backward Integration Established long-term agreements with suppliers to ensure a secure and competitive cost structure ▪ PPL sources raw materials locally and primarily from Morocco, Jordan, Qatar, Saudi Arabia and Canada Primary Raw Materials ▪ Long-term agreement with
Slide 8: PPL Brand Strategy
PPL Brand Strategy PPL’s brands - Jai Kisaan and Navratna - enjoy a strong equity amongst farmers across India • Strong product portfolio with increased diversity and dominant position in key variants • Holds Best Brand Platinum Award 2021 in Corporate Excellence category • Improving market position
Slide 9: Core PPL Product Portfolio
Core PPL Product Portfolio Well diversified product portfolio to cover the entire range of the non urea fertilizer market DAP NPK - 20 NPK - 10 NPK - 12 • DAP is highest selling phosphate • NPK 20 is 2nd highest selling • Contains Nitrogen, Phosphorus • Contains Nitrogen, Phosphorus in India (~10 Mi
Slide 10: PPL Industrial Product Portfolio
PPL Industrial Product Portfolio Innovative high margin products that improve soil health and yield Phospho-gypsum Zypmite Sulphuric acid HFSA • Phospho-gypsum contains • Zypmite is a micronutrient mixture • Sulphuric acid is one of the raw • HFSA is an inorganic compound, Sulphur and Calcium in the
Slide 11: Manufacturing Locations
Manufacturing Locations Location Paradeep, Odisha Zuarinagar, Goa Area (Acres) 2,282 260 Target Market East, Central and South West, Central and South DAP, NPK-20, N-12, N-10, NPK-10, N-12, N-14, N-19, Fertiliser Products N-14 N-28, DAP, Urea Brands Navratna and Jai Kisaan Jai Kisaan Installed Ferti
Slide 12: Sales and Distribution Network
Sales and Distribution Network PPL Total States Currently Present 16 Regional Marketing Offices 21 Stock Points 510 No. of Dealers 5,322 No. of Retailers 72,925 Farmers Covered ~ 8 Mn • Structured distribution network facilitates efficient sale of products and promotes brand visibility • Undertakes
Slide 13: Awards, Achievements and Certifications
Awards, Achievements and Certifications Paradeep Plant Goa Plant • Certified as a premium member of the British Safety Council • Bureau veritas certification holding SAS – UK Branch for • Obtained product steward excellent management excellence certificate under system and control IFA protect and su
Slide 14: Sales and Distribution Network H1 FY2023
Sales and Distribution Network H1 FY2023 Extensive sales and distribution network drives revenue growth and promotes brand visibility Regional Sales Mix Regional Dealers Nos. 6.6% PPL Total 50.3% 27.2% 30.7% 28.5% 10.4% 8.6% West East North South 37.7% 5.5% 24.0% Paradeep 41.4% 38.0% 30.8% 14.3% 6.2
Slide 15: Integrated Manufacturing Process
Integrated Manufacturing Process Feedstock Processing End Product Sea water Desalination unit Process water for internal use Sulphur Sulphuric acid plant Steam Turbine generator Power (Imported) Sulphuric acid Gypsum pond Phospho gypsum Rock phosphate Phosphoric acid plant Phospho (Imported from OCP
Slide 16: Manufacturing Capacity Expansion
Manufacturing Capacity Expansion DAP / NPK Total Annualized Production Capacity (MMTPA) 0.15 0.15 As of Q2 FY 23, 3.0 PPL has reached 1.2 a run-rate of 3 3.0 MMTPA of finished Million fertilizers 0.3 1.2 31-Mar-21 31-Aug-21 1-Jun-22 1-Jun-22 31-Oct-22 31-Oct- 2022 Capex was funded (Total) by term lo
Slide 17: PPL Growth Strategy
PPL Growth Strategy • Expansion of Paradeep production capacity of DAP and NPK to 1.8 MMTPA • Goa plant capacity addition by 1.2 MMTPA Capacity Expansion and Product • Paradeep revenue mix of 54%, 28% and 17% from NPK, DAP and Urea products respectively in H1 FY2023 Diversification • Plan to utilize
Slide 18: Industry Dynamics
Industry Dynamics Page 18 of 30
Slide 19: Key Growth Drivers in the Fertilizer Industry
Key Growth Drivers in the Fertilizer Industry Food Policy Industry Security Support Opportunity ▪ Global food demand continues to ▪ National Food Securities Act ▪ Growing populations and shrinking rise as population increases. (2013) covers 75% of the rural and agricultural lands due to However, lan
Slide 20: Government Initiatives
Government Initiatives National Food Securities Act 2013(NFSA) Antyodaya Anna Yojana (AAY) • Step in the direction of reducing hunger among the • Paradigm shift in the approach to food security poorest segments of the population from welfare to rights-based approach • Constitute the poorest of-the-p
Slide 21: Non-Urea Fertilizer Growth Trend
Non-Urea Fertilizer Growth Trend Trend and Outlook on Fertilizer Consumption Growth Trend Urea Non Urea FY15 – 21 1.2% 3.9% (Mn tonnes) FY21 – 23 1% - 1.5% 2.5% - 3% • Increased consumption of non-urea fertilizers to maintain 35 nutrition content of the soil • Government initiatives of higher minimu
Slide 22: NPK Fertilizer Composition Trend
NPK Fertilizer Composition Trend N – P – K Composition Trend Key Observations 7.2 6.7 6.6 • NPK (Nitrogen, Phosphorus and Potassium) are the macro nutrients required for the crop growth 5.8 • Ideal target ratio of NPK mix for balanced soil health and crop growth is 4:2:1 • Excess of Nitrogen can dis
Slide 23: Environment, Social and Governance
Environment, Social and Governance Page 23 of 30
Slide 24: Environment
Environment Sustainability is a core pillar of strategy and PPL continues to adopt sustainable best practices at all levels End hunger, achieve food security and improved nutrition and promote sustainable agriculture Devising and implementing sustainable agricultural systems to meet the world’s grow
Slide 25: Social
Social PPL has been very closely associated with the communities around the plant locations as part of its social responsibility PPL runs a Round-the-Clock operational Our manufacturing facilities, have instituted a stringent Occupational Health Centre (OHC) and ensures and process-oriented approach
Slide 26: Governance
Governance The philosophy of Corporate Governance is aimed at safeguarding and adding value to the interests of all stakeholders and envisages attainment of the highest levels of transparency and accountability in all areas of its operations and interactions Committed to ethical and lawful business
Slide 27: Experienced Board of Directors (1/2)
Experienced Board of Directors (1/2) • Holds a bachelor’s degree in commerce from University of • Board Member of Directors of Fertiliser Association of India Calcutta (FAI) & International Fertilizer Association (IFA) and has been • Served as President of FICCI & was appointed as member of in leade
Slide 28: Experienced Board of Directors (2/2)
Experienced Board of Directors (2/2) • Holds a bachelor’s and master’s degree in English from Utkal • Qualified chartered accountant and a senior partner at L B University; retired officer from IAS batch of 1973 Jha & Co., Chartered Accountants • served as the Chief Information Commissioner of India
Slide 29: Management Team
Management Team • Holds master’s degree in • Board Member of Directors of Zuari Agro • Bachelor’s degree in Civil Engg International Business from Indian Chemicals Limited ZACL, Fertilizer from IIT, Kharagpur and PGDM Institute of Foreign Trade (IIFT) and Association of India (FAI) & International f
Slide 30: PPL Financial Performance
PPL Financial Performance Page 30 of 30
Slide 31: FY2022 Financial Performance Highlights
FY2022 Financial Performance Highlights (in Million) Total Income EBITDA PBT Net Profit Rs. 78,980 Rs. 7,104 Rs. 5,350 Rs. 3,985 52% Y-o-Y 27% Y-o-Y 46% Y-o-Y 78% Y-o-Y Margins : 9.0% Margins : 6.8% Margins : 5.0% Cash & Cash Net Working ROE ROCE Equivalents Capital 19.7 % 15.0 % Rs. 5,977 29 Days R
Slide 32: Annual Performance Trends
Annual Performance Trends (in Rupees Million) Revenue from Operations EBITDA and Margins 7,104 78,587 5,615 4,947 51,647 52,984 3,777 3,545 41,929 32,507 11.7% 10.8% 11.6% 9.0% 6.7% FY20 FY21 FY22 H1 FY22 H1 FY23 FY20 FY21 FY22 H1 FY22 H1 FY23 PAT* EPS (IN RS.) CAGR 52% PBT and Margins Net Profit an
Slide 33: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle Key Observation (In Rs. millions) FY20 FY21 FY22 H1 FY23 Long Term Debt 1,394 1,134 5,282 6,619 Increase in short term debt is balanced by increase in current assets Short Term Debt 20,791 11,378 24,261 38,233 Short term debt was availed to manage the Total
Slide 34: Q2 FY23 Performance Highlights
Q2 FY23 Performance Highlights (in Million) Total Income EBITDA PBT Net Profit Rs. 28,698 Rs. 1,875 Rs. 684 Rs. 511 Goa Plant one time cost : Rs. 422 Goa Plant one time cost : Rs. 422 Post Goa Plant one time cost: Rs 422 Adjusted EBITDA : Rs. 2,297 Adjusted PBT : Rs. 1,106 48.1% Y-o-Y Adjusted EBITD
Slide 35: Q2 FY23 PPL Operational Highlights
Q2 FY23 PPL Operational Highlights (Production Volume) Total Fertilizers DAP N-20 Other NPK 506,194 MT 49,450 MT 216,937 MT 115,432 MT 37% Y-o-Y (73)% Y-o-Y 43% Y-o-Y 233% Y-o-Y Zypmite Maha Zypmite+ Sulphuric Acid Phosphoric Acid 4,923 MT 6,978 MT 340,710 MT 79,610 MT 2% Y-o-Y 4% Y-o-Y (2)% Y-o-Y (
Slide 36: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary (in Rupees Million) Q2 Y-o-Y Q1 Q-o-Q H1 Y-o-Y (Rs. Million) FY2023 FY2022 Growth(%) FY2023 Growth(%) FY2023 FY2022 Growth(%) Revenue from Operations 28,637 19,347 48% 24,347 18% 52,984 32,507 63% Other Income 61 30 107% 97 (37)% 159 74 115% Total Income 28
Slide 37: Organisational Structure
Organisational Structure Promoters Group % PPL Shareholdings – Sept 30, 2022 ZACL* 50-50 Joint Venture Others ZMPPL** 18.1% Promoter OCP Group Group Insurance 56.1% 56.1 % Companies Paradeep Phosphates 4.3% Foreign Portfolio Zuari Agro Chemicals (ZACL) has been a leading fertilizer player in Investo
Slide 38: Disclaimer and Contact Information
Disclaimer and Contact Information Disclaimer This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to “Paradeep Phosphates” future business deve
Slide 39: Thank You
Thank You Registered Office Paradeep Phosphates Limited 5th Floor, Bayan Bhavan Pandit Jawaharlal Nehru Marg Bhubaneswar - 751 001, Odisha, India Contact: +91 22 6169 5988 CorpAffairsBBSR@adventz.com
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