Ghcl Limited · NSE:GHCL
Ghcl — Investor Presentation (April 2018)
39 slides from Ghcl's investor presentation, April 2018
Slide 1: GHCL Limited Investors Presentation - Apr'18
GHCL Limited Investors Presentation- Apr’18
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 3: Agenda
Agenda 1. Highlights 2. Company Overview 3. Inorganic Chemicals Segment 4. Textiles Segment 5. Financial Annexures 3
Slide 4: Highlights
Highlights
Slide 5: Management Address
Management Address We have completed the year at Rs. 367 crore PAT closer to last year levels, despite significant headwinds in textile industry. As a conscious corporate citizen of the country, we implemented projects worth Rs. 22 crore along with our partners on various CSR initiatives, with G
Slide 6: Management Address
Management Address We have surpassed our previous highest production and sales in any quarter along with highest EBITDA in Inorganic Segment achieving an overall revenue growth of 21% for the year. We have been well supported by buoyant domestic demand growth of 11% and stable Global markets des
Slide 7: Financial Highlights – FY18
Financial Highlights – FY18 In Rs. crore Particulars Q4FY18 Q4FY17 YoY Q3FY18 QoQ FY18 FY17 YoY Revenue 733 826 -11% 738 -1% 2942 2791 5% EBITDA 185 185 - 158 17% 649 724 -10% EBITDA % 25.2% 22.4% 21.5% 22.1% 26% PBT 120 130 -8% 105 15% 415 502 -17% PAT 82 113 -27% 71 15% 364 387 -6% ---------------
Slide 8: Growth with Debt Reduction – Efficient Capital Allocation
Growth with Debt Reduction – Efficient Capital Allocation Generated Cash Profits (net of Tax) of Rs. 464 Crores CAPEX Rs. 281 crore DEBT SHAREHOLDERS Rs. 117 crore debt repaid Buyback & Dividend Rs. 104 crore OPERATIONS Decrease in Working Capital of Rs. 38 crore 8
Slide 9: Profit & loss statement
Profit & loss statement Rs. In Crores Particulars Q4 FY18 Q4 FY17 % Change Q3 FY18 FY18 FY17 Sales* 733 826 - 11 % 738 2,942 2,791 Operating Expenses 548 641 -15% 580 2,293 2,067 EBITDA 185 185 - 158 649 724 EBITDA Margin 25.2% 22.4% + 2.8% 21.5% 22.1% 26% Depreciation 34 21 + 65% 25 109 85 EBIT 151
Slide 10: Balance Sheet
Balance Sheet Rs. In Crores Particulars March-18 March-17 Net fixed & other non current assets (A) 2,619 2,470 Current Assets 1,006 998 Less: Current Liabilities 488 444 Working Capital (B) 518 554 Capital Employed (A+B) 3,137 3,024 Share Capital 98 100 Reserves & Surplus 1,524 1,251 Net Worth (A) 1
Slide 11: Segment Highlights – Q4 FY18 Inorganic Segment
Segment Highlights – Q4 FY18 Inorganic Segment Q4 FY Particulars Q4 FY 17 Y-o-Y Q3 FY 18 Q-o-Q FY 18 FY 17 Y-o-Y 18 Production (Lac MT) 2.43 2.24 8% 2.43 - 9.37 8.01 17% Sales (Lac MT) 2.41 2.30 5% 2.33 3% 9.04 7.78 16% Revenue (Rs. Crores)* 513 466 10% 497 3% 1,896 1,565 21% EBITDA (Rs. Crores) 173
Slide 12: Segment Highlights – Q4 FY18 Textiles Segment
Segment Highlights – Q4 FY18 Textiles Segment Particulars Q4 FY 18 Q4 FY 17 Y-o-Y Q3 FY 18 Q-o-Q FY 18 FY 17 Y-o-Y Revenue (Rs. Crores)* 219 360 - 39% 241 - 9% 1,046 1,227 - 15% EBITDA (Rs. Crores) 12 37 - 66% 1 830% 49 171 - 71% EBITDA % 5.7% 10.2% -4.5% 0.6% 5.1% 4.7 % 14 % -9.3% Decline in reve
Slide 13: Awards & Recognitions
Awards & Recognitions Referred as Great Place to work in two consecutive years of participation Among 100 in first attempt, 16 th in Manufacturing Industries (last year) . Awarded trio of Golden Peacock awards for Corporate Governance, Corporate social responsibility and National Quality Enhanced Cr
Slide 14: Company Overview
Company Overview
Slide 15: GHCL Overview
GHCL Overview 3 decades of Indian Slated to be single largest soda Manufacturing experience ash plant at one location in India Professionally managed with Listed on 2 premier stock 6000 strong workforce exchanges of India Focus to emerge as a Business Philosophy of Inclusive sustainable business org
Slide 16: Core Business Segment Presence
Core Business Segment Presence Inorganic Chemicals (64 %*) Textiles Segment (36 %*) Margin leadership in the industry Presence across the value chain » Among top 3 soda ash players. » Spinning Catering 1/4th of Indian soda ash 1,76,488 Spindles demand 3,320 Rotors Margin leader in the indust
Slide 17: Journey till date and future roadmap
Journey till date and future roadmap 1988- 2001- 2009- 2016- 2019- 2021- 2000 2008 2015 2018 2020 2022 Soda Ash capacity Soda Ash production Soda Ash production Commenced Soda increased to 8.5 Lakh Spindles capacity capacity increased to capacity to be increased to Ash Production with MTPA increased
Slide 18: Business philosophy going forward
Business philosophy going forward Robust & Profitable Focus on Value Sustainable Inclusive Growth Systems Growth To grow profits at To create a value systems that Business Philosophy of “Sustainable Inclusive Growth” involving all the CAGR 20% on long defines our Culture stakeholders term horizon 18
Slide 19: Robust & Profitable growth..
Robust & Profitable growth.. Soda Revenue Rs. 2942 Crore in FY18 recording a CAGR growth of 7% in last 5 years Ash Spinning EBITDA Rs. 649 Crore in FY18 recording a CAGR growth of 9% in last 5 years Home PAT Rs. 364 Crore in FY18 recording a CAGR growth of 26% in last 5 years Textiles Consumer EPS p
Slide 20: Core values at forefront..
Core values at forefront.. GHCL is an unique work place which Thoughtful and show is dotted with its Core Values, regards for another defining its culture. Every employee Confidence in each in the company is expected to person. others capabilities Respect imbibe its Core Values and interact and inte
Slide 21: Inclusive growth of stakeholders
Inclusive growth of stakeholders Investors Employees Society Customers Vendors Implemented Pay for Touching more than a 7x growth in market Performance and Pay for Regular Distributors / Encouraging Strategic capitalisation in last 4 million lives through our Customer meets for two partnerships for
Slide 22: Company's strong core comes from Pre-eminent Professionals
Company’s strong core comes form Pre-eminent Professionals RS Jalan Raman Chopra CFO & Executive Director Managing Director Spearheading GHCL’s Finance and IT Unique leadership style with endeared functions managerial abilities drives all businesses alike Qualified Chartered Accountant with sh
Slide 23: Inorganic Chemicals
Inorganic Chemicals
Slide 24: Commanding a leadership in manufacturing of Soda Ash
Commanding a leadership in manufacturing of Soda Ash Captive sources of raw materials » Captive control on fuel (largest cost component) 9.75L MT Only company having its own lignite mines 97% Capacity Soda ash utilization; capacity; » Innovatively replaced imported met coke with in-house developed
Slide 25: Key Differentiators
Key Differentiators Expertise and Best in class Specialisation productivity of of 30 years 97% Slated to be single largest Soda ash plant Strategic control in India by over key raw 2019. materials Focus on cost competitiveness Soda Ash with Quality circle Innovated from coke to Soda Ash B2B to briqu
Slide 26: Consistent and Sustainable capacity additions to spur growth
Consistent and Sustainable capacity additions to spur growth 1.25 Lacs Brownfield SA – By FY19 Steady capacity additions » Next phase of Capex expansion ( Phase-II ) to be completed by March 2019. 17.3 Brownfield expansion of 1.25 Lakh MT. Estimated capex outlay Rs. 300 Crores (24K/MT). 1.25 Lac
Slide 27: Global outlook on the soda ash industry
Global outlook on the soda ash industry GLOBAL SIZE: CAPACITY : 68 MMT, PRODUCTION : 59 MMT GLOBAL » Global markets expected to grow at around 2.5% CAGR » Demand Supply is balanced at the moment EUROPE » EU market is showing positive trends. AMERICA » Turkey’s balance 1 mn MT is expected CAPACITY :
Slide 28: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share.* (up by 1%) Domestic Demand Concentration. Tata Chem North 20% West 29% Import 15% 23% GHCL 25% South Gujarat Others 28% Nirma 19% East 5% 27% 9% * Based on External demand (Source : IMA) 45 Domestic Demand & growth trend (CAGR Growth 5% d
Slide 29: Inorganic Chemicals - Other products
Inorganic Chemicals - Other products Sodium Bicarbonate Consumer Products » Premium edible Salt Manufacturer in South India » Doubled capacity from 30,000 to 60,000 MT in December » Expanding product portfolio i.e. Salt, Honey, Spices and 2017, Our market share will accordingly go up from Powder Spi
Slide 30: Robust financial performance – Inorganic Chemicals
Robust financial performance – Inorganic Chemicals Revenue* EBITDA Rs Crs 1,896 Rs Crs 1,495 1,565 600 1,421 553 1,234 496 446 321 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBITDA Margin* Production in MT 35% MT’000 937 31% 33% 32% 801 711 738 749 26% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16
Slide 31: Home Textile Segment
Home Textile Segment
Slide 32: Complete Integration improving the efficiency
Complete Integration improving the efficiency 1.76 Lacs Spindles 3,320 Rotors 30 Mn Meters 12 Mn Meters 45 Mn Meters Air jet Spinning Fabric Bed Sheets & Spinning Weaving Cut & Sew Processing Made-up’s Also sold in market Presence across value chain Sold in market » Spindle capacity close to double
Slide 33: Every day is Earth day for GHCL with REEKOOP
Every day is Earth day 1000’s sheet uses for GHCL with 36000 PET bottles, “REEKOOP” corresponding to a metric ton of PET. “REKOOP”, Our Environmental sustainable, traceable impact – bedding line is made using recycled PET Reduction of landfill fibre, with molecular space by 7.4 cubic tagging for com
Slide 34: Reinventing with REKOOP
Reinventing with Bottle Flake Bed sheets Fibre Yarn Patented technology developed in Fibre to be Manufactured and Manufactured and Sold by GHCL association with Applied DNA supplied by Reliance Industries under REKOOP brand Sciences(ADNAS) & GHCL. 34
Slide 35: Yearly Performance - Textile Segment
Yearly Performance - Textile Segment Revenue EBITDA Rs Crs Rs Crs 1,227 171 996 1,069 1,046 139 964 112 87 49 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 EBITDA Margin Capacity Utilization 14% 89% 13% 83% 11% 70% 70% 69% 9% 5% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 *Note :- Revenue
Slide 36: Financial Annexure
Financial Annexure
Slide 37: Robust growth with improving profitability
Robust growth with improving profitability Rs Crs Revenue (7 % CAGR) EBITDA (11% CAGR) EBITDA Margin 2791 2942 724 26.0% 635 649 24.8% 22.4% 22.1% 2564 534 19.4% 433 2385 2229 FY 14 FY15 FY16 FY17 FY18 FY 14 FY15 FY16 FY17 FY18 FY 14 FY15 FY16 FY17 FY18 Cash Profit (19% CAGR) PAT (33% CAGR) PAT Marg
Slide 38: And improving return ratios
And improving return ratios ROCE ROE EPS 22% 21% 19% 29% 38.7 37.3 17% 15% 25% 23% 22% 25.7 14% 18.3 11.6 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Net Debt/Equity Net Debt/EBITDA Interest Coverage Ratio 1.66 4.77 1.48 2.93 4.35 1.27 2.5 1.04 3.42 2.07 1.93 1.99 2.74
Slide 39: Let's Connect
Let’s Connect CIN: L24100GJ1983PLC006513 CIN: U74900MH2014PTC259212 Mr. Raman Chopra rchopra@ghcl.co.in Mr. Vikash Verma vikash.verma@stellar-ir.com Mr. Sunil Gupta sgupta@ghcl.co.in Mr. Abhishek Bhatt abhishek@stellar-ir.com Mr. Abhishek Chaturvedi abhishekchaturvedi@ghcl.co.in For more information