Bodal Chemicals Limited · NSE:BODALCHEM
Bodal Chemicals — Investor Presentation (May 2018)
55 slides from Bodal Chemicals's investor presentation, May 2018
Slide 1: Coming out with flying colours
Coming out with flying colours Investor Presentation May 2018
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Bodal Chemicals’ future business developments and economi
Slide 3: Index
Index No. Subject Page 1. Executive Summary 4 2. Journey 5 3. Dyestuff Industry Overview 6 4. Global Revenues 7 5. Customer Relationships 8 6. Manufacturing Facilities 9-11 7. Environmental Facilities 12-15 8. CAPEX 16 9. Outlook 17-18 10. Board of Directors 19 11. Key Management Persons 20 12. Fina
Slide 4: Executive Summary
Executive Summary • Bodal was incorporated in 1989 by Mr. Suresh Patel, a first generation entrepreneur • Bodal is today one of the globally leading, integrated Dyestuff companies from India • The Company’s FY2018 Consolidated Financials are: – Net Revenue : Rs. 11,517 million – EBITDA : Rs. 2,039 m
Slide 5: Journey
Journey 2006 Notes: Listed on BSE-reverse merger Units are manufacturing sites with Dintex Dye Chem (Unit I) 2016 Unit Nos. are as per current numbering of sites 2006 Amalgamation: Acquired Unit IV Bodal Agrotech, LABSA, Unit X Zero Discharge Facility 2007 Started building Unit VII 2017 World-class
Slide 6: Dyestuff Industry Overview
Dyestuff Industry Overview Industries that use Dyes India’s share in global Dyestuffs Textiles Paper Cosmetics 16% production Gujarat and Maharashtra’s share in Indian Leather Plastics Food Products 85% Dyestuff production Organized sector’s share in Indian 50% Dyestuff production Types of Dyes Comp
Slide 7: Global Revenues
Global Revenues FY 2018 FY 2017 Notes: Sale of products are net of excise duty & GST Domestic Exports and exclude operating other income FY2018 Revenues Rs.11.5 billion with Exports to around 151 customers & from around 41 countries Coming out with flying colours INVESTOR PRESENTATION May-2018 |7
Slide 8: Customer Relationships
Customer Relationships Top Domestic Customers Top International Customers Hubei Color Root Technology Company Bansal Alkalies Unidye S.A. Maruti Dye Chem Relationships with top Domestic and International Customers Coming out with flying colours INVESTOR PRESENTATION May-2018 |8
Slide 9: Manufacturing Value Chain
Input Materials – part/full in-house Input Materials – external Manufacturing Value Chain Bodal Chemicals Products End use industries End Use Input Materials Basic Chemicals Dye Intermediates Dyestuff Trion Chemicals Industry Water Para Nitro Aniline Vinyl Sulphone + Derivatives Reactive Dyes Textil
Slide 10: Manufacturing Capacities
Manufacturing Capacities Contribution Annual Capacity Highlights 10.4% Basic • Captive Power Plant and Steam generation 190,000 MT Chemicals • Centrally located, latest upgraded manufacturing facilities Dye • Permission for treated effluent disposal of 1 million liters/day * 33,000 MT Intermediates
Slide 11: Manufacturing Facilities
Manufacturing Facilities Plant Location Basic Dye Dyestuff LABSA TCCA Chemicals Intermediates Capacity (MTPA) 190,000 33,000 39,000 18,000 12,000 Unit I Ahmedabad P P P . . Unit II Ahmedabad P P . . . Unit III Ahmedabad . P . . . Unit IV Ahmedabad . . P . . Unit VII Vadodara P P P . . Unit VIII Vado
Slide 12: Environment Facilities – India’s evolution & competitiveness
Environment Facilities – India’s evolution & competitiveness India Little or No Growing Government Industry Industry Grows; Government Awareness About Implements Complies with Major Players Regulation Environmental Regulations Regulations; Gain Market Impact Starts to Share Stabilize 1 2 3 4 5 • Rap
Slide 13: Environmental Facilities
Environmental Facilities Safety, Health & Environment at Bodal Safety Health Environment • Safety Representative for each • In-house Occupational Health Center • Air Pollution Management Plant • Full time doctors • In-house facilities • Fire Hydrant for each Plant • Medical representatives • Recover
Slide 14: Environmental Facilities
Environmental Facilities In-house Facilities at Bodal Effluent Treatment Plant (ETP) Multiple Effect Evaporator Plant (MEEP) Effluent Spray Dryer Plant (ESDP) • Treats low load waste water • Treats high load waste water • Treats high load waste water beyond MEEP • Compliant with GPCB, CPCB norms • R
Slide 15: Environmental Facilities
Environmental Facilities Plant Location Zero Waste Effluent Common Effluent Multiple Effect Effluent Spray Solid Waste Treated Effluent Discharge Site Treatment Plant Treatment Plant, Evaporator Dryer Plant Incinerator Discharge Access (Solid+Liquid+Air) (ETP) (CETP, at GIDC) (MEEP) (ESDP) Plant VEC
Slide 16: CAPEX
CAPEX • CAPEX – In FY2018 was Rs. 2,300 million – In FY2017 was Rs. 482 million • Bodal’s emphasis is continually on – Embracing better technologies – New laboratory equipment – Expansion of production facilities – Betterment of ETP facilities • CAPEX already done/ on-going – Dyes capacity expansion
Slide 17: Outlook for FY 18-20
Outlook for FY 18-20 We expect positive revenue and profit growth in FY 2018-19. The key drivers for Revenue growth will be: ➢ Trion and SPS will start generating cash and add to profits during the year ➢ As part of the expansion plan, the company continues to expand the Dyestuff business. Capacity
Slide 18: Outlook for FY 18-20 (contd.)
Outlook for FY 18-20 (contd.) ➢ SPS Processors: New Vinyl Sulphone Plant of 6,000 MTPA will start production. New Vinyl Sulphone Plant of 6,000 MTPA. By producing both H Acid and Vinyl Sulphone, SPS will utilize effluents of the two Plants into each other’s production respectively. This will generat
Slide 19: Board of Directors
Board of Directors Suresh J. Patel Founded Bodal in 1989 as a young, first generation entrepreneur, relocating to Ahmedabad from his Chairman & Managing Director farming village - Bodal, district Anand, Gujarat. Built Bodal Chemicals over nearly three decades. Has played a number of senior industry
Slide 20: Key Management Persons
Key Management Persons Prasad H. Pujari 29 years experience, 9 years with Bodal Chemicals. Heads Sulphur Products Division. Head – Sulphur Products Division He also heads expansion projects. He holds a Masters degree in Chemical Engineering, UDCT, Mumbai Mayur B. Padhya 22 years experience, 17 years
Slide 21: Financials
Financials INVESTOR PRESENTATION May-2018
Slide 22: FY2017-18 financial highlights
FY-2017-18 Net Revenue (Rs. Million) EBITDA (Rs. Million) and Margin (%) Note: Margins are calculated on Net Revenue; EBITDA includes Other Income 19% 18% (7) % (14) % Profit Before Tax (Rs. Million) and Margin (%) Profit After Tax (Rs. Million) and Margin (%) 16% 16% 11% 11% (9) % (8) % Higher EBIT
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet For the year ended 31 March FY2017-18 FY2016-17 FY2015-16 FY2014-15 Rs. Million Rs. million Rs. million Rs. million Shareholders Funds 6,970 3,627 2,345 1,814 Equity Share Capital 244 218 218 218 Preference Share Capital - - 250 Reserves & Surplus 6,725 3,409 2,127 1,346 M
Slide 24: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account For the year ended 31 March FY2017-18 FY2016-17 FY2015-16 FY2014-15 Rs. Million Rs. million Rs. million Rs. million Revenues 11,517 12,449 9,218 10,500 Cost of Goods Sold 7.057 7,973 5,706 6,579 Gross Profit 4,460 4,476 3,512 3,921 Personnel Expenses 472 419 368 45
Slide 25: FY2007-18: Financial Performance
FY2007-18: Financial Performance Financial Year Revenues EBITDA PAT * EPS EBITDA PAT Power+Fuel Consolidated Rs. million Rs. million Rs. million Rs. % % % FY2006-07 2,581 202 112 10.3 7.8% 4.3% 3.9% FY2007-08 4,160 420 175 16.2 10.1% 4.2% 4.8% FY2008-09 4,051 44 (111) (7.1) 1.1% (2.7)% 7.4% FY2009-1
Slide 26: FY2007-18: Financial Performance
FY2007-18: Financial Performance Financial Year Revenues EBITDA PAT Interest Net Debt Networth Net D/E ND/EBITDA Consolidated Rs. million Rs. million Rs. million Rs. million Rs. million Rs. million X X FY2006-07 2,581 202 112 34 740 357 2.1 3.7 FY2007-08 4,160 420 175 90 1,365 473 2.9 3.3 FY2008-09
Slide 27: Subsidiaries / Associates Financials- FY17-18
Subsidiaries / Associates Financials- FY17-18 Particulars Trion SPS (Rs. Million) Rs. million Revenue (Net of Tax) 102.6 745.9 EBITDA (20.5) (18.9) Interest (45.3) (22.1) Depreciation (19.8) (12.0) PAT (64.3) (21.2) Coming out with flying colours INVESTOR PRESENTATION May-2018 | 27
Slide 28: Capacity utilization – FY17-18 (Standalone)
Capacity utilization – FY17-18 (Standalone) Metric Tons (MT) Particulars Dyestuff Dyes Intermediates Basic Chemicals Metric Tons (MT) Installed Capacity 17,000* 30,000 1,90,000 Production 15,412 22,344 1,79,544 Utilization % 90.7% 74.5% 94.5% *Note: Additional capacity of 12,000 was added in the mon
Slide 29: Production – Metric Tons (MT)
Production – Metric Tons (MT) Production MT FY18 FY17 YoY Growth (%) Dye Intermediates 22,344 23,100 -3% Dyestuff 15,412 12,503 23% Basic Chemicals 179,544 188,767 -5% Others 2,530 6,835 -63% Total 219,830 231,204 -5% Coming out with flying colours INVESTOR PRESENTATION May-2018 | 29
Slide 30: CSR Initiatives
CSR Initiatives • Bodal seeks to be a responsible corporate citizen. It works through Trusts and YUVA – a renowned NGO • Bodal’s focus area is enhancement of rural infrastructure and healthcare – Providing funds for construction for drinking water pipelines – Conducting regular health check-up camps
Slide 31: Thank you
Thank you Mayur Padhya CFO, Bodal Chemicals Ltd. +91 79 2583 5437 mayur@bodal.com CIN : L24110GJ1986PLC009003 Plot No. 123-124, Phase - I, G.I.D.C., Vatva, Ahmedabad – 382 445, Gujarat www.bodal.com
Slide 32: Earnings Presentation Q1 FY2019
Earnings Presentation Q1 FY2019 14 August 2018 1 (NSE: BODALCHEM, BSE: 524370)
Slide 33: Important Notice
Important Notice This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Bodal Chemicals’ future business developments and economic performa
Slide 34: Company Profile
Company Profile 3
Slide 35: Bodal’s History
Bodal’s History Bodal was incorporated in 1989 by Mr. Suresh Patel, a first generation entrepreneur. Bodal is today one of the globally leading, integrated Dyestuff companies from India. Company commenced its operations by setting up a small Vinyl Sulphone plant at Vatva - Ahmedabad (Gujarat)
Slide 36: Journey
Journey 2006 Notes: Listed on BSE-reverse merger with Units are manufacturing sites 2016 Dintex Dye Chem (Unit I) Unit Nos. are as per current numbering of sites Amalgamation: 2006 Bodal Agrotech, LABSA, Unit X Acquired Unit IV Zero Discharge Facility 2007 2017 Started building Unit VII Acquired 70%
Slide 37: Market share
Market share Bodal’s Position in Global & Indian Dye Intermediates Industry Share in Indian Dye 25% Intermediates Industry Share in Global Dye 6% Intermediates Industry Bodal’s Position in Global & Indian Dyestuffs Industry Share in Indian 9% Dyestuffs Industry Share in Global 3% Dyestuffs Industry
Slide 38: Manufacturing Value Chain
Input Materials – part/full in-house Input Materials – external Manufacturing Value Chain Bodal Chemicals Products End use industries End Use Input Materials Basic Chemicals Dye Intermediates Dyestuff Trion Chemicals Industry Water Para Nitro Aniline Vinyl Sulphone + Derivatives Reactive Dyes Textil
Slide 39: Operational Highlights
Operational Highlights 8
Slide 40: Operational Highlights - Q1 FY19 (YoY)
Operational Highlights - Q1 FY19 (YoY) Increase in production volume of • Dyes Intermediates by 21%, from 5,129 MT to 6,217 MT • Dyestuff by 11% , from 3,920 MT to 4,358 MT and • Basic chemicals by 7%, from 46,933 MT to 50,488 MT Exports up by 86%, from Rs. 811 Million to Rs. 1,513 Million Dye
Slide 41: Financial Highlights
Financial Highlights 10
Slide 42: Financial Highlights - Q1 FY19 (YoY)
Financial Highlights - Q1 FY19 (YoY) Total Income of Rs. 3,556 million vs Rs. 2,745 million, up by 30% EBITDA * of Rs. 695 million vs 509 million, up by 36% EBITDA * margin at 19.7% vs 18.7%, grew by 100bps PBT of Rs.595 million vs Rs. 479 million, up by 24% PAT of Rs. 392 million vs. Rs.
Slide 43: Financial –Standalone basis
Financial –Standalone basis Particulars (Rs. million) Q1FY19 Q1FY18 YoY (%) Revenue from operations 3,530 2,946 20% Less: Excise duty - 226 - Revenue from operations (Net of Excise duty) 3,530 2,720 30% Other income 27 25 7% Total Income (Net of Excise duty) 3,556 2,745 30% Materials expenses 2,184
Slide 44: Operating Margin
Operating Margin : (Rs. million) EBITDA as published Particulars Q1FY19 Q1FY18 Revenue from operations (Net of Excise duty) 3,530 2,720 Other income 27 25 Total Income (Net of Excise duty) 3,556 2,745 Less: Total expenses 2,903 2,188 EBITDA as published 654 557 EBITDA Margin (%) to Total Income 18.4
Slide 45: Segmental Revenue
Segmental Revenue By Segment Revenue Breakup Q1FY2019 By Geography 14 Domestic Export
Slide 46: Financial comparison - Standalone
Financial comparison - Standalone Total Income (Rs. Million) EBITDA* (Rs. Million) and Margin (%) 30% Growth 3,556 36% Growth 695 2,745 509 18.7% 19.7% Q1FY18 Q1FY19 Q1FY18 Q1FY19 Profit Before Tax (Rs. Million) and Margin (%) Profit After Tax (Rs. Million) and Margin (%) 24% Growth 26% Growth 595 3
Slide 47: Leverage Profile
Leverage Profile Particulars (Rs. million) 30-Jun-18 31-Mar-18 Net Debt / Equity (x) Short Term Borrowings 304 840 Long Term Borrowings 7 7 Total Debt 311 847 Less: Cash & Cash Equivalents 483 261 Net Debt / (Net Cash) (171) 586 Reduction in Debt 757 Net Worth 7,416 7,020 Jun-18 Mar-18 EBITDA 2,780
Slide 48: Management Comments on Results
Management Comments on Results 17
Slide 49: Management Comments on Results & Updates (1 of 2)
Management Comments on Results & Updates (1of 2) During this quarter company achieved 30% growth in revenue YoY basis and increased operating profit by 100bps. Raw material prices: The prices of almost all the raw materials are stable and normalised in comparison to previous year. There was spik
Slide 50: Management Comments on Results (1 of 2)
Management Comments on Results (1of 2) Operating -EBITDA: To make appropriate comparison of operating performance of the company during the quarter, Other Income and net of foreign Exchange rate difference gain/loss are excluded from Earnings, which are not a part of operating activity. Subsidia
Slide 51: Conference call to discuss Q1FY2019 results & Outlook
Conference call to discuss Q1FY2019 results & Outlook Management will discuss results of Q1FY2019 and Outlook on a conference call on 14 August 2018 at 4:00 PM India time. The conference call dial-in numbers are: Primary number: +91 22 6280 1106 +91 22 7115 8007 The numbers listed above are universa
Slide 52: Contact details
CIN: L24110GJ1986PLC009003 Mayur Padhya Plot No. 123-124, Phase - I, G.I.D.C., CFO, Bodal Chemicals Vatva, Ahmedabad - 382 445, Gujarat, India T: +91-79-2583 5437 | E: bodal@bodal.com +91 79 2583 5437 21 mayur@bodal.com www.bodal.com
Slide 53: Annexures
ill Annexures Chemicals Lic
Slide 54: Sale of products – by sub-segment and geography (Standalone)
Sale of products – by sub-segment and geography (Standalone) (Rs. million) Geography- wise Revenues Q1FY2019 % Share Q1FY2018 % Share YoYGrowth (%) Domestic 1,968 57% 1,883 70% 4.5% Export 1,513 43% 811 30% 86.5% Total 3,481 100% 2,694 100% 29.2% Sub-Segment-wise Revenues Q1FY2019 % Share Q1FY2018 %
Slide 55: Production Quantity Metric Tons (MT)
Production Quantity Metric Tons (MT) Production MT Q1FY19 Q1FY18 YoY (Growth) Dyestuff 4,358 3920 11% Dyes Intermediates 6,217 5129 21% Basic Chemicals 50,448 46933 7% 24