Manorama Industries Ltd. · NSE:MANORAMA
Manorama Industries — Q3 FY24 Earnings Presentation
53 slides from Manorama Industries's earnings presentation, Feb 10, 2024
Slide 1: Manorama Industries Limited - Investor Presentation Cover Letter
Manorama Industries Limited KHASRA No. 2449-2618 Nr. IIDC, Birkoni Mahasamund (C.G.) Pin : 493445 February 10, 2024 To, To, The Manager, The Manager, BSE Limited ("BSE") National Stock Exchange of India Limited P. J Towers, Dalai Street, Fort, ("NSE") Mumbai - 400 001 Exchange Plaza, Plot No. C/1, G
Slide 2: Harnessing Sustainability for empowering progress and growth
Harnessing Sustainability for empowering progress and growth Manorama Industries Limited Investor Presentation Q3 & 9M FY24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Manorama Industries 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 s
Slide 4: Table of Content
Table of Content 01 Q3 & 9M FY24 Performance Highlights 02 Business Update - New Expansion Plan 03 Business Model 04 Company Overview 05 Innovation & Research 06 Historical Financial Highlights 3
Slide 5: Q3 & 9M FY24 Performance Highlights
Q3 & 9M FY24 Performance Highlights
Slide 6: Management Commentary – Q3 & 9M FY24
Management Commentary – Q3 & 9M FY24 Commenting on the results and performance, Mr. Ashish Saraf, President said: “The Company achieved a substantial 31.6% YoY revenue growth, reaching INR 3,277.5 million in the first nine months of FY24, despite a maintenance shutdown impacting fractionation capaci
Slide 7: Q3 & 9M FY24 – Financial Highlights
Q3 & 9M FY24 – Financial Highlights Revenue (Rs. In Mn) EBITDA & EBITDA Margin (Rs. In Mn) PAT & PAT Margin (Rs. In Mn) 1,2 00 140 1,0 00 200 198 196 194 192 190 188 186 15.9 15.9 18. 0 120 10. 0 184 182 180 178 7.5 16. 0 176 7.6 174 172 170 168 166 164 162 160 Highlights 158 8.0 Quarterly 156 14. 0
Slide 8: Q3 & 9M FY24 – Profit & Loss Account
Q3 & 9M FY24 – Profit & Loss Account Profit and Loss (Rs. Millions) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Y 9M FY24 9M FY23 Y-o-Y Revenue from Operations (Net of 984.5 953.8 +3.2% 1,177.3 -16.4% 3,277.5 2,490.6 +31.6% Excise) Raw Material 525.3 593.8 532.2 1,756.3 1,480.7 Employee Cost 48.4 36.2 45.2 13
Slide 9: Business Update - New Expansion Plan
Business Update - New Expansion Plan
Slide 10: Expansion Plan
Expansion Plan Particulars Amount (in Cr.) Details For new investments in setting up new capacity of Fractionation and Refinery process by 25,000 MT per annum each along with supporting infrastructure with the total estimated capex of Rs. 65 Cr. Board has also approved the acquisition of land ar
Slide 11: Details of Expansion Plan
Details of Expansion Plan Solvent Extraction Plant Putting up a 300 TPD Solvent Extraction Plant. Currently the Company is doing Solvent extraction under job work process through a third-party vendor which entails additional transportation costs and processing costs. The said expansion will save on
Slide 12: Update on Capex (1/2)
Update on Capex (1/2) New Warehouse & Solvent Extraction & Refinery Plant As of 31st December 2023, the company has incurred INR.1,180 Mn towards Capital Expansion Since the new Capex announcement in August 2021, the Company has successfully completed the commissioning of the following Solvent Extra
Slide 13: Update on Capex (2/2)
Update on Capex (2/2) Birds eye view of the plant Our current focus is on completing the Fractionation plant, a project anticipated to commence operations in Q4FY24. The cost of this capex was originally envisaged to be INR 650 million. However, as on 31st December 2023 the company has incurred
Slide 14: Capacity that Drives Growth
Capacity that Drives Growth Total Capacity Post Expansion Process Status (metric tonnes per annum) Seed Milling (Expeller) 90,000 Commissioned Solvent Extraction Plant 90,000 Commissioned Refinery 45,000 Commissioned Interesterification 30,000 Commissioned Deodorisation 25,000 Commissioned Expected
Slide 15: Business Model
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Slide 16: Built on Strong Business Moats
Built on Strong Business Moats Waste to Wealth Sustainable Growth Competitive Advantage Marquee Clientele Manufacturing Excellence Industry Tailwinds Financial Performance Offers customer-centric solutions Integrated capacity powered with Huge industry demand of Cocoa Uplift the quality of l
Slide 17: Weaving a Revolution - Wealth Out of Waste
Weaving a Revolution - Wealth Out of Waste Waste to Wealth From Forests to Premium Brands From the Poorest to the Richest • Procuring Raw Materials from the • Forest / Plant grown seeds are major raw • Collecting raw materials primarily exotic seeds marginalized tribal located in remote forest mater
Slide 18: Collecting Nature's Gift to Make Natural Products
Collecting Nature’s Gift to Make Natural Products Our business model is entirely nature based, sourcing our entire raw material from forests. No Risk of non-availability of raw material. Trees flower every year and seeds are produced. Available in plenty in India and other Countries. There is limite
Slide 19: Enhancing Capacities for an Expanding Business
Enhancing Capacities for an Expanding Business Favourable plant location provides us an edge in sourcing raw-materials and ensuring adequate supply To meet the huge surge in specialty The commissioning of additional The Company has a distinct sourcing tailor-made fats and CBE demand, the 30,000 tonn
Slide 20: Supply Chain Network
Supply Chain Network Manorama Supply Network in West - Africa Sal seed Collection Process in India Scattered Sal in forest bed Shea Forest Shea Tree Shea Fruit Picking of Shea nuts Seeds picking by tribal women Pre-cleaning of Manorama buying Deshelling of Boiling & Cleaning Sal seeds Shea nuts Shea
Slide 21: Procurement of Shea Nuts (Africa)
Procurement of Shea Nuts (Africa) Developing a comprehensive and efficient system for procuring Shea nuts and other agricultural goods from Ghana's West African neighbors such as Burkina Faso, Ivory Coast, Mali, and others This system gives a competitive edge in meeting rising raw material requireme
Slide 22: Industry Overview
Industry Overview In May 2017, FSSAI allowed the use of 5% CBEs in Global Industry Landscape chocolates from January 1st, 2018. With the positive change in the standards of chocolates, the CBE demand is estimated to grow substantially. India is one of the most important CBE markets with a likely
Slide 23: Growth Drivers - Market Strategy
Growth Drivers - Market Strategy Optimum capacity utilisation at Birkoni and new capex Growing opportunities in Chocolate Industry The Birkoni Plant is currently operating at 70% utilisation and is expected to A major driver for the sector is projected to be the growing habit of chocolate achieved o
Slide 24: Company Overview
Company Overview
Slide 25: Company at Glance
Company at Glance #1 Indian Exporter of Sal 90+ Customers Served 09 Long-term Issuer Rating at 01 & Mango Based Speciality 05 ‘A-’ Fats & Butters 02 #1 Sal Fat Manufacturer 06 Network of Millions women 10 3 Year Revenue CAGR of Globally tribal +30% 61% of Revenue from Thousands Collection 11 Diversi
Slide 26: About Us
About Us Since its incorporation 19 years ago in 2005, started Enjoys undisputed leadership as a key supplier to with extracting butter and fats from Sal seeds and the World’s Leading Fortune Companies in Food, Mango kernel and gradually forayed into exotic Chocolate, Confectionery and Cosmetic Indu
Slide 27: Key Milestones
Key Milestones Enjoys undisputed leadership as a key supplier to the World’s Leading Fortune Companies in Food, Chocolate, Confectionery and Cosmetic Industries The unique business model of Manorama Industries Limited is the truest, finest example of serving under “AATMANIRBHAR BHARAT”. Nearly 2 Rob
Slide 28: Experienced Board of Directors
Experienced Board of Directors Vinita Saraf - Non-Executive Director and Chairperson Nipun Sumanlal Mehta - Independent Director Experience : 21 Years Experience : 37 Years Background : She has completed her bachelor’s degree in commerce from Mount Background: A CA , Expert in Financial Markets and
Slide 29: Experienced Management Team
Experienced Management Team Ashish Saraf - President Dr. Krishnadath Bhaggan - VP - R&D CS Deepak Sharma - CS & Compliance A B.Com, having over 33 years of experience in Product Development Experience in R&D and Innovation for 22 yrs.+ He He is an associate member of ICSI and having more managing th
Slide 30: Our Vision and Mission
Our Vision and Mission Vision Customer delight is our highest priority Upliftment of livelihood of tribal people Acquire and maintain leadership position in chosen areas of business by innovating products and On time delivery with high-quality products at the best adopting unique co-developm
Slide 31: Global Certifications
Global Certifications Manorama Industries’ quest for quality has earned it a spectrum of prestigious certifications 30
Slide 32: Innovation & Research
Innovation & Research
Slide 33: Key Product Components – Tree Borne Seeds
Key Product Components – Tree Borne Seeds Sal seeds (Shorea Mango kernel (Mangifera Shea nuts robusta) indica) (Vitellaria paradoxa) India has the largest Sal forests in the world, Sal seeds are Mango is a seasonal fruit that is amply available across the Shea nuts are found mainly in the West
Slide 34: Our Key Product Portfolio
Our Key Product Portfolio Cocoa Butter Equivalent (CBE) Sal butter Sal stearin CBEs are vegetable fats that are made up of the The butter content of the Sal seed is It is the solid fraction of Sal same fatty acids and triglycerides as Coco Butter 13-14%, and it is abundant in Butter derived by
Slide 35: Product Portfolio - MILCOA® Range & Spread Fats
Product Portfolio - MILCOA® Range & Spread Fats Cocoa Butter Equivalent (CBE) Milcoa Brand Range Key Product Portfolio All-round filling fats (MilcocreamTM1056 and MilcocreamTM1010) Sal butter Cocoa butter equivalents/improvers (Milcoa ES1057 and Milcoa IS1043) Cocoa butter replacers (MilcoatT
Slide 36: Innovation & Research
Innovation & Research Milcoa® Innovation & Research Center, a high standard research laboratory equipped with cutting-edge Research & Development Centre Led by: technologies Dr. Krishnadath Bhaggan +25 years of global experience in the industry, contribution to multiple patents in his name. Collabor
Slide 37: World's Leading Brands are Our Customers
World’s Leading Brands are Our Customers The Company derives major revenue from the chocolate and confectionery industry, with a significant portion of the balance Marquee Clientele revenues coming from the cosmetics industry Food & Confectionery Chocolate Cosmetics Plant Based Meat, Food Industry (
Slide 38: Geographical Footprint
Geographical Footprint Trusted manufacturer of food, chocolate, confectionary and cosmetics ingredients industry 9M FY24 - Revenue Breakup having customer base spanning across the globe 44% 56% Domestic International The Company enjoys a Russia, Latin America, Japan & Europe Key Growing Export Marke
Slide 39: De-oiled Cake for Cattle Industry
De-oiled Cake for Cattle Industry Largest supplier of Cattle feed from the India is the world’s largest consumer of exotic natural tree borne seeds de-oiled cattle-feed & largest Milk Producer cakes to Indian cattle feed industry Q3 FY24 Revenue contribution from cattle feed business INR 28.3 Mn Off
Slide 40: Our Commitment to UN Global Compact
Our Commitment to UN Global Compact Committed to UN Sustainable Development Goals Over the years, developed an extensive supply chain network of Millions of women tribal and forest-dwellers ………and have positively impacted the livelihoods Committed to UN Global Compact With the signature of the UN Gl
Slide 41: ESG Initiatives
ESG Initiatives Manorama’s objective is to achieve long-term growth by lowering environmental impact, increasing ecological balance, improving the lives of those in our communities, and producing value for all our stakeholders Environment Social Governance Planted more than 5,000 saplings last E
Slide 42: Giving Back to The Society
é: Giving Back to The Society ley #BeingSomeonesHero rch Yow FOR YOUR DONATION Of Bone Marrow Density Machine We genuinely appreciate your contribution towards society and healthcare 41
Slide 43: Recent Awards & Accolades (1/3)
Recent Awards & Accolades (1/3) In a Glittering Ceremony Among a Galaxy of Industry Stalwarts – Mr. Ashish Saraf and Mr. Shrey Saraf, Manorama Industries Limited, Received Three Awards In Recognition for their Exceptional performance as the “Highest Processor of Minor Oil Seeds” and “Highest Exporte
Slide 44: Recent Awards & Accolades (2/3)
Recent Awards & Accolades (2/3) Award for “Generating Sustainable Wealth Through IOPEC, Ministry of Commerce of India gave Award for “Highest Mr Ashish Saraf, President of Manorama Industries Exports of Value-Added Products from Tree -Origin Export” to Manorama Industries Limited received by Mr. Lim
Slide 45: Recent Awards & Accolades (3/3)
Recent Awards & Accolades (3/3) GLOBOIL INDIA 2022 Awards Ceremony & Conference Awarded four ‘Highest Unique Processors and Highest Unique Excellence in Exports of Vegetable Butters from India’ Solvent Extractors’ Association of India at Goa Awarded ‘Eminent Excellence in ESG & Sustainable Creation
Slide 46: Client Testimonials (1/2)
Client Testimonials (1/2) Meet the Women of Manorama – Article Published on The Body Shop Website 45 Note: The Brand names mentioned are the property of their respective owners and are used here for identification purposes only
Slide 47: Client Testimonials (2/2)
Client Testimonials (2/2) Article Published on Lush Website 46 Note: The Brand names mentioned are the property of their respective owners and are used here for identification purposes only
Slide 48: Historical Financial Highlights
Historical Financial Highlights
Slide 49: Excellent track record with a revenue CAGR of +30% in last three years
Excellent track record with a revenue CAGR of +30% in last three years Revenue (Rs. In Mn) EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) +32% +28% +43% 3,508.0 564.5 297.8 2,791.2 241.5 389.4 2,026.3 346.6 145.8 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Achieved EBITDA Margins (%) PAT Margins (
Slide 50: Historical Financial Highlights
Historical Financial Highlights Profit and Loss (Rs. Millions) FY23 FY22 FY21* FY20 FY19 Revenue from Operations (Net of Excise) 3,508.0 2,791.2 2,026.3 1,882.4 1,024.0 Raw Material 2,156.6 1,546.2 1,199.0 867.3 495.4 Employee Cost 128.2 96.4 74.7 69.1 35.0 Other Expenses 658.8 759.2 406.0 507.6 210
Slide 51: Balance Sheet Statement
Balance Sheet Statement Equity & Liabilities (Rs. Millions) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Assets (in Rs. Millions) Mar-23 Mar-22 Mar-21 Mar-21 Mar-21 Total Equity 2,983.0 2,682.6 1,447.3 1,272.6 1,039.2 Non - Current Assets 1,541.2 1,162.6 737.4 628.8 357.9 Share Capital 119.2 119.2 111.3 111.3
Slide 52: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Millions) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Net Profit Before Tax 430.6 335.1 223.6 323.7 265.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 165.0 121.3 164.2 145.9 23.2 Operating profit before working capital changes 595.6 456.5 387.8 4
Slide 53: Thank You!
Contact Information Investor Relations Advisors : Mr. Vikash Verma/Mr. Hiral Keniya E: vikash.verma1@in.ey.com/ hiral.keniya@in.ey.com M: +91 9664009029/ 9029662801 Company : THANK YOU! Manorama Industries Limited CIN: L15142MH2005PLC243687 Ms. Ekta Soni Mr. Deepak Sharma Investor Relations Officer