Ion Exchange (india) Ltd. · NSE:IONEXCHANG
Ion Exchange (india) — FY2019 Earnings Presentation
42 slides from Ion Exchange (india)'s earnings presentation, Jun 13, 2019
Slide 1: Submission of Analyst / Investor Presentation to BSE
• 8 ION EXCHANGE Re-6~~~p~ June 13 , 2019 To, BSE Limited The Corporate Relationship Dept. P.J. Towers, Dalal Street, Mumbai - 400 00 l BSE Company Code: 500214 Dear Sir/ Madam, Sub: Submission of Analb'st I Investor Presentation Pursuant to Regulation 30(6) read with Part A of Schedule III of the S
Slide 2: Investor Presentation - June 2019
INVESTOR PRESENTATION - JUNE 2019
Slide 3: Our Vision
Our Vision To be the leader in our business which is so vital to people’s lives and the environment. 2
Slide 4: Business Overview / Financial Overview
_ a Rebreshing the Planet Vo So BUSINESS OVERVIEW e\NANCIAL OVERVIEW
Slide 5: Executive Summary
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Slide 6: Executive Summary
Executive Summary BUSINESS & REVENUE (%) MIX - OVERVIEW MARQUEE CLIENTS CONSOLIDATED • Ion Exchange (India) Ltd (Ion • Engineering (56%) – Provides • Industrial – NTPC, NPC, Reliance, Exchange), formed in 1964, is a comprehensive and integrated IOCL, JSW, CPCL, L&T, Essar group, pioneer in water, wa
Slide 7: Company Overview
@ ION EXCHANGE Refreshing the Planch COMPANY OVERVIEW
Slide 8: Company Overview
Company Overview • Ion Exchange was originally formed as a subsidiary of Permutit, UK in 1964. REVENUE BREAK UP FY19* It became a wholly owned Indian company in 1985. The company is Consumer currently in its 55th Year of operations. Products 9% • The company has expanded its footprints globally and
Slide 9: Key Management Personnel
Key Management Personnel MANAGEMENT TEAM • Aankur Patni • S. N. Iyengar Executive Director Executive VP – Medium Industry • Dinesh Sharma • Anil Khera Executive Director Executive VP- Chemical • Ajay A. Popat • Vasant Naik President – Corporate Sr. VP – Finance Diversification, Technology & Marketin
Slide 10: Key Milestones
Key Milestones 1998 Consumer products manufacturing started at 1982 Goa. 1964 Engineering and fabrication 2010 Incorporated as 60% subsidiary setup started at Hosur. Commissioned largest RO of Permutit Co., U.K. 1983 based water desalination Industrial Chemical Production plant. 1965 started at Pata
Slide 11: Global Footprint
Global Footprint Canada USA Bahrain Bangladesh Saudi Arabia UAE Oman India Thailand Tanzania Singapore Malaysia Nigeria Kenya Indonesia South Africa International Division Manufacturing Facilities 10
Slide 12: Domestic Footprint
Domestic Footprint ANKLESHWAR, GUJARAT WADA, MAHARASHTRA Resin Facility - Fabrication Water and Facility non-water PATANCHERU, TELANGANA RABALE, MAHARASHTRA EOU & Chemicals Engineering Facility Design Facility Corporate Office VERNA, GOA VERNA, GOA International Division HOSUR, TAMIL NADU Regional &
Slide 13: Research And Development
Research And Development Strong focus on R&D Well established in-house R&D department since 1965 Recognized by Department of Scientific and Industrial Research (DSIR), New Delhi For Chemicals at Patancheru, Telangana For Engineered Products & Systems at Vashi, Maharashtra Product application and tes
Slide 14: Awards & Accolades
Awards & Accolades Water Digest 2015-16 4 TIMES IN A ROW Water Award Chemtech CEW Leadership Mera Brand Awards for Zero (UNESCO) & Excellence Award B- Most Preferred RO Brand 3 TIMES 8 TIMES 2015-16 4 TIMES Best Best Best Best Water Solutions Water Company Water Treatment Water Treatment- Provider w
Slide 15: Key Strengths
Key Strengths 1 Design, Engineering and supply of water, waste water treatment and recycle plants on turnkey, BOT and EPC basis. 50 4 50 years of pan India presence. 2 Largest one stop shop water solution's provider in Asia. 5 Manufacturer of chemicals 3 Global footprint with exports and ion exchang
Slide 16: Future Strategy
Future Strategy Engineering • Increased application coverage • Increased exposure to of resin and membrane international markets. technologies. • Selectively target Infrastructure • New Government initiatives and Municipal projects. resulting in more opportunities. Chemicals • Resins for pharmaceuti
Slide 17: Business Overview
@ ION EXCHANGE Refreshing the Planch BUSINESS OVERVIEW
Slide 18: Business
Business Ion Exchange (India) Ltd, formed in 1964, is a pioneer in water, waste water treatment & environment solutions and caters to various industries, homes & communities Process Applications Industrial Waste Water with Resins/Membranes Treatment/Recycle & Management of Solid Waste Management Pro
Slide 19: Business Segments
Business Segments Business Segments ^ Engineering Chemicals Consumer (56%) (35%) Products (9%) Industrial Retail Industrial Chemicals Municipal Institution Resins O&M / Services Rural Water treatment chemicals Specialty Chemicals Conventional Resins Specialty Resins ^ Consolidated as on FY2019 18
Slide 20: Work-flow Process
Work-flow Process Water Treatment Water Treatment Waste Treatment Specialty Raw Water Treatment I II & Recycle Chemicals • Disinfection Membrane Ion Exchange • Aerobic Process • Polyelectrolytes o Chlogen Processes Processes o Activated Sludge o Coagulants o Ozonator • Micro/Ultra- • Demineralizers
Slide 21: Engineering
Engineering • The Company designs, engineers, manufactures and sells REVENUES* (INR MN) medium and large size equipment for water and waste water treatment plants including recycling & Zero liquid discharge 8,000 6,851 plants. 7,000 6,404 6,348 6,000 5,140 • Extensive technologies, process design &
Slide 22: Engineering - Industrial
Engineering - Industrial PROJECTS: • Ion Exchange integrates extensive process technologies and design, engineering & project management expertise into design & build projects, on turnkey, BOOT or EPC basis. Specially formed teams manage and support each and every stage of project implementation. •
Slide 23: Clientele - Industrial & Institution
Clientele - Industrial & Institution AUTO- ELECTRONICS/ PAPER AND HEAVY INDUSTRIAL PETROCHEMICALS HOTELS POWER PHARMA TEXTILES MOBILES ELECTRICALS PULP FOOD & CHEMICALS SUGAR CEMENT HOSPITALS REAL ESTATE BEVERAGES 22
Slide 24: Engineering - O&M and Services
Engineering - O&M and Services Ion Exchange’s O&M and services provides single-source responsibility, saves customers expense, manpower, supervision and the hassle of maintaining facilities in-house. O&M CONTRACTS • Annual Maintenance: Water & waste water equipment for efficient performance and zero
Slide 25: Engineering Industry Overview
Engineering Industry Overview MARKET POTENTIAL • The domestic industrial sector is expected to grow at a CAGR of 5-7% while waste water management is projected to grow at a CAGR of 8-10% through 2015-2020. • Capital expenditure on water and waste water infrastructure in India is set to increase by 8
Slide 26: Engineering Industry Overview
Engineering Industry Overview MAKE IN INDIA • The GOI’s ‘Make in India’ Programme is expected to generate new opportunities as Industrial capex gains traction. • INR 500 bn (USD 7.7 bn) has been allocated for investment in 500 towns and cities under AMRUT and another INR 480 bn (USD 7.4 bn) has been
Slide 27: Chemicals
Chemicals • The company is engaged in manufacturing water treatment chemicals, ion exchange resins and other specialty chemicals. REVENUES* (INR MN) 4,500 4,234 • Water treatment chemicals are used in boiler, cooling 4,000 water treatment, coagulation and flocculation, 3,511 3,535 3,500 membrane cle
Slide 28: Water Treatment & Specialty Chemicals
Water Treatment & Specialty Chemicals • The company manufactures Water Treatment & Specialty Chemicals in a modern ISO 9001, 14001 and OHSAS 18001 certified manufacturing facility. • Ion Exchange is known for their tailor made treatment programs coupled with continuous developments of newer formulat
Slide 29: Chemicals - Resins
Chemicals - Resins Resins are backed by innovation, quality and service, sustained R&D and state-of-the-art ISO 9001 and 14001 certified manufacturing facilities. They also have FDA approved pharma grade resin facility. Ion Exchange offers products under the registered trademark of INDION RESINS whi
Slide 30: Chemicals Industry Overview
Chemicals Industry Overview MARKET POTENTIAL • The market for water and water treatment chemicals in India is expected to expand leaps and bounds due to the focus on optimum utilization of water resources. • In 2016, global demand for water treatment chemicals totalled $25.4 billion which is forecas
Slide 31: Consumer Products
Consumer Products The company’s water and environment management solutions REVENUES* (INR MN) extend beyond the industrial sector to homes, hotels, spas, 1200 educational institutions, hospitals, laboratories, realty sector 1,086 1,099 1,025 and defence establishments providing safe drinking water a
Slide 32: Consumer Products - Retail & Community
Consumer Products - Retail & Community • Ion Exchange is the pioneer of the revolutionary RO technology, in India. With its National & International presence, Zero B has emerged as one of the premier brand of the company in this segment. At Zero B, every product is crafted with meticulous attention
Slide 33: Financial Overview
@ ION EXCHANGE Refreshing the Planch FINANCIAL OVERVIEW
Slide 34: Standalone Income Statement (Ind AS)
STANDALONE INCOME STATEMENT(IND AS) INCOME STATEMENT (INR MN) FY18 FY19 Total Income* 10,243 11,464 Total Expenses 9,239 10,110 EBITDA 1,004 1,354 EBITDA Margins (%) 9.80% 11.81% Depreciation 119 181 Finance Cost 157 162 PBT 728 1,011 Tax 250 345 Profit After Tax 478 666 PAT Margins (%) 4.67% 5.81%
Slide 35: Standalone Balance Sheet (As per IndAS)
Standalone Balance Sheet (As per IndAS) PARTICULARS (INR MN) FY18 FY19PARTICULARS (INR MN) FY18 FY19 EQUITIES & LIABILITIES ASSETS Equity Non-Current Assets (A) Equity Share Capital 147 147 (A) Property, Plant and Equipment 1,347 1,425 (B) Other Equity 2,987 3,597 (B) Capital Work-in-progress 66 123
Slide 36: Financials - Standalone
Financials - Standalone REVENUES* (INR MN) EBITDA (INR MN) PAT (INR MN) 1,354 GROWTH 11,464 GROWTH GROWTH 666 12% 10,243 35% 1,004 39% 478 FY18 FY19 FY18 FY19 FY18 FY19 NET DEBT/EQUITY ROE and ROCE WORKING CAPITAL DAYS FY18 FY19 26.4% 61 20.4% 48 17.8% 15.2% (0.4) (0.6) FY18 FY19 FY18 FY19 ROE ROCE
Slide 37: Consolidated Income Statement (As per IndAS)
CONSOLIDATED INCOME STATEMENT(As per IndAS) INCOME STATEMENT (INR MN) FY18 FY19 Total Income* 10,760 11,956 Total Expenses 9,779 10,557 EBITDA 981 1,399 EBITDA Margins (%) 9.12% 11.70% Depreciation 131 196 Finance Cost 187 190 PBT 663 1,013 Share of Profit of equity accounted Investee (1) 5 Tax 263
Slide 38: Consolidated Balance Sheet (As per IndAS)
Consolidated Balance Sheet (As per IndAS) PARTICULARS (INR MN) FY18 FY19 PARTICULARS (INR MN) FY18 FY19 EQUITIES & LIABILITIES ASSETS Equity Non-Current Assets (A) Equity Share Capital 142 142 (A) Property, Plant and Equipment 1,436 1,507 (B) Other Equity 1,859 2,458 (B) Capital Work-in-progress 66
Slide 39: Financials - Consolidated
Financials - Consolidated REVENUES* (INR MN) EBITDA (INR MN) PAT* (INR MN) 1,399 659 11,956 10,760 GROWTH GROWTH 981 GROWTH 11% 43% 65% 399 FY18 FY19 FY18 FY19 FY18 FY19 NET DEBT/ EQUITY ROE and ROCE WORKING CAPITAL DAYS FY18 FY19 33.9% 67 24.4% 51 25.1% 19.6% (0.6) (0.8) FY18 FY19 FY18 FY19 * Inclu
Slide 40: Market Data
Market Data (Bloomberg – ION IN, Reuters – IONX.BO) 1 YEAR SHARE PRICE MOVEMENT (AS ON 31ST MARCH, 2019) 20% 10% 0% -10% -20% -30% -40% Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 ION Exchange Sensex PRICE DATA (AS ON 31ST MARCH, 2019) SHAREHOLDING PATTERN (AS
Slide 41: Disclaimer
Disclaimer Ion Exchange (India) Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all e
Slide 42: Thank You
@ ION EXCHANGE Refreshing the Planet