Punjab Chemicals & Crop Protection Ltd. · NSE:PUNJABCHEM
Punjab Chemicals & Crop Protection — H1 FY24 Earnings Presentation
35 slides from Punjab Chemicals & Crop Protection's earnings presentation, Oct 27, 2023
Slide 1: Stock exchange filing cover letter
Date: October 27, 2023 BY E FILING The Manager The Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchange of India Limited MUMBAI-400 001 MUMBAI-400 051 Re: BSE Scrip Code: 506618 NSE Scrip Symbol: PUNJABCHEM Sub: Investor Presentation - Financial Overview –
Slide 2: Q2 & H1 FY24 Result Presentation
Q2 & H1 FY24 RESULT PRESENTATION October 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Punjab Chemicals and Crop Protection Ltd (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subsc
Slide 4: Table of Contents
Table of Contents 01 Result Highlights 02 Company Overview 0 03 Business Strategy 04 Agrochemicals Industry Overview 05 Performance Track Record
Slide 5: Result Highlights
Result Highlights
Slide 6: Result Highlights
Result Highlights Q2 FY24 H1 FY24 ₹ 242 Cr ₹ 35 Cr ₹ 18 Cr ₹ 524 Cr ₹ 73 Cr ₹ 40 Cr Revenue EBITDA PAT Revenue EBITDA PAT • Registered a Revenue of Rs 242 Cr in Q2 FY24 and for H1 FY24 at Rs 524 Cr; led by 12% YoY growth in domestic sales. • Gross Margin at 41% for the quarter increased by 350 bps Y
Slide 7: Q2 FY24 Financial Performance
Q2 FY24 Financial Performance REVENUE GEOGRAPHICAL SPLIT -13.2% 279 242 Domestic 105 117 279 242 International 174 125 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 EBITDA & EBITDA MARGIN PAT & PAT MARGIN 11.2% 14.6% 6.3% 7.5% +14.2% +3% 35 31 17.6 18.1 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 YoY Comparison (In ₹ cr, exc
Slide 8: H1 FY24 Financial Performance
H1 FY24 Financial Performance REVENUE GEOGRAPHICAL SPLIT -5.0% 551 524 Domestic 235 253 551 524 International 316 271 H1 FY23 H1 FY24 H1 FY23 H1 FY24 EBITDA & EBITDA MARGIN PAT & PAT MARGIN 12.1% 14.0% 6.9% 7.6% +10.3% +6% 66 73 38 40 H1 FY23 H1 FY24 H1 FY23 H1 FY24 YoY Comparison (In ₹ cr, except m
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Cr) Q2 FY24 Q2 FY23 YoY % Q1 FY24 QoQ % H1 FY24 H1 FY23 YoY% Revenue 242.2 278.6 -13.1% 281.4 -13.9% 523.5 550.7 -4.9% COGS 143.8 179.8 182.1 326.0 351.0 Gross Profit 98.3 98.9 99.2 197.6 199.8 Gross Profit Margin % 40.6% 35.5% 510 bps 35.3% 53
Slide 10: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Particulars (In Rs Crs.) Sept’23 Mar’23 Particulars (In Rs Crs.) Sept’23 Mar’23 EQUITY AND LIABLITIES ASSETS Equity Non-Current Assets Equity Share Capital 12.3 12.3 Property, Plant and Equipment 233.1 216.6 Other Equity 304.7 268.4 Capital Work in Progress 4.81
Slide 11: Company Overview
Company Overview
Slide 12: Our Company
Our Company Established in 1975 as Punjab United Pesticides & Chemical Ltd (PUPCL), the company has now evolved into Punjab Chemicals and Crop Protection Ltd. We have separate synergistic Agrochemicals, Pharmaceuticals and Industrial chemical divisions with state-of-the-art manufacturing facilities
Slide 13: Our multi-decade story of growth and value-creation
Our multi-decade story of growth and value-creation 1975 1978 1983 1995 2003 Punjab United Pesticides & The Company’s equity shares The Company diversified its The Company began to focus The Company established a Chemicals Limited was were publicly issued. product portfolio into on agro chemicals an
Slide 14: Manufacturing Process
Manufacturing Process 2 Manufacturing facilities at Derabassi & Lalru in Punjab || 1 facility in Pune, Maharashtra with food grade certification. Derabassi & Lalru plants are certified with ISO 9001:2015 , ISO 14001:2015 and ISO 45001:2018. Pune unit is certified with GMP & ISO 22000 Total Reactor C
Slide 15: Synergistic Product Portfolio
Synergistic Product Portfolio Divisions Major chemistries Product Category ▪ Chlorination ▪ Hydrazine Fungicide, Herbicide. Manufacturing ▪ Hetrocyclic patented products under long term Agrochemicals/ Intermediates ▪ Bromination ▪ Oxidation ▪ Benzylation agreement/ in-house R&D ▪ Methylation ▪ Halog
Slide 16: Annual Production (MT) & Capacity Utilisation (%)
Annual Production (MT) & Capacity Utilisation (%) Derabassi Lalru 82% 73% 80% 85% 75% 75% 60% 71% 73% 70% 54% 53% 1,610 23,797 24,338 1,391 1,402 1,345 19,914 17,543 17,497 1,143 12,144 568 FY19 FY20 FY21 FY22 FY23 H1 FY24 FY19 FY20 FY21 FY22 FY23 H1 FY24 Note : New products have been commercialized
Slide 17: R&D Capabilities
R&D Capabilities Our R&D talent pool 1 Advanced R&D facility at both Derabassi & Lalru 2 Both facilities have kilo lab & pilot plants for scale up & 30 commercial trials. Strength of R&D Team 3 Adding new chemistry skill set 35 Strength by FY24 4 ~40% of the new enquiries from non-agchem space 5 In-
Slide 18: Growth Triggers
Growth Triggers Existing product New product Backward Improvement in New Agro Speciality New Markets Integration Efficiency Registration Chemicals Chemicals To increase market share / margin • Certain products have reached commercial stage and orders have started flowing in. • Some product samples a
Slide 19: Environment, Health & Safety Measure
Environment, Health & Safety Measure Upgraded Effluent Treatment Plant at Plants equipped with both Derabassi & Lalru. occupational health facilities, 1 5 professional trained staff and instituted practices. Member of new Common Strong EHS systems, processes, Effluent Treatment Plant and 6 inspectio
Slide 20: Our Global Clientele
Our Global Clientele Target regions for next leg of growth: Latin America, South Asia, European Union The brand names /logos mentioned are the property of their respective owners and are used here for identification purpose only 19
Slide 21: Leadership Team: Board of Directors
Leadership Team: Board of Directors Board Composition Mr. Mukesh D. Patel Mr. Shalil Shroff Mr. Vijay Rai Chairman & Managing Independent Independent Director Director Director More than 50% of 55% the Board members are Independent Directors Ms. Tara Ms. Aruna Bhinge Mr. Sheo Prasad Subramaniam Subr
Slide 22: Leadership Team: Key Management Team
Leadership Team: Key Management Team Mr. Vinod Gupta, Mr Ashish Nayak, Ms. Rishu Chatley, Dr Vijay Kaushik, Chief Executive Officer Chief Financial Officer Company Secretary Assistant Vice President- R & D • Chemical Engineer, IIT-B & PGPX, IIM-A • Chartered Accountant and has a bachelor degree of •
Slide 23: Business Strategy
Business Strategy
Slide 24: Business Model
Business Model Identify Niche Products/ Customers Partner for Contract Manufacturing with Basket of Products Target niche products with high growth potential. Offer attractive and cost- effective solution Target clients - Global Agrochemical/ Specialty Long term engagement favorable for both parties
Slide 25: Strategic Advantage
Strategic Advantage Manufacturing and Consistent Low-Cost Operator R&D Capability Track Record Developed an efficient cost Availability of technically Historical association with competitive process over the trained manpower , Domestic clients helped last decade and are extra production capacity to
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility
Slide 27: CSR Initiatives
CSR Initiatives PCCPL CSR Initiatives are in below three areas to enhance Society Connect & ensures real impact on Beneficiaries Community Education Health Development More than 70% More than 20% More10% than 70% 26
Slide 28: CSR Initiatives
CSR Initiatives EDUCATION Pragpur Bhagwanpur Mubarikpur Issapur Issapur HEALTH Kherigujran Kherigujran Kherigujran Kherigujran Kherigujran COMMUNITY DEV Bijjanpur Mubarikpur Haibatpur Kundawala Derabassi 27 27
Slide 29: Agrochemicals Industry Overview
Agrochemicals Industry Overview
Slide 30: Indian Agrochemicals Industry – Long Term Perspective
Indian Agrochemicals Industry – Long Term Perspective India is the 4th largest producer and a net exporter of agrochemicals and has emerged as the 13th largest exporter of pesticides globally Outlook of pesticides production for technical grade (‘000 tonnes)# * Segments 2021-22 2026-27P CAGR Insecti
Slide 31: Industry Opportunity
Industry Opportunity Anticipated Growth 2018 → 2025 Opportunity size Capitalising on Opportunity Integrated Pest $ 32 bil → $ 49 bil Biologicals $2.8 bil → $7.1 bil Improvements in formulation, ease of use, shelf life and Management (IPM) CAGR ~ 6.3% CAGR ~ 14.4% spectrum Patent expiry of 100+ agroc
Slide 32: Performance Track Record
Performance Track Record
Slide 33: Performance Track Record
Performance Track Record Revenue (₹ cr) EBITDA (₹ cr) PAT (₹ cr) +16.6% +38.1% 84 +11.8% 1,006 140 933 123 61 643 678 96 49 550 66 42 17 11 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Revenue Split (₹ cr) EBITDA Margin (%) PAT Margin (%) Domestic Export 1,006 15.0 933
Slide 34: Performance Track Record
Performance Track Record Capital Structure (₹ cr) Working Capital Analysis (₹ cr) D/E 1.0x 0.9x 0.6x 0.4x 0.3x 52 32 45 44 36 89 95 85 82 92 87 68 81 91 88 281 -80 226 -100 -85 -103 -102 145 91 98 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Debt Equity Receivable Days Inventory Days Payable Da
Slide 35: Contact details
Mr. Ashish Nayak Chief Financial Officer investorhelp@punjabchemicals.com Mr. Sumeet Khaitan sumeet.khaitan@linkintime.co.in +91 70213 20701 Mr. Bhavya Shah bhavya.shah@linkintime.co.in +91 80827 48577
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