Slide 1: Analyst Meet Presentation cover letter to exchanges
November 8, 2024 To, To, Listing/ Compliance Department Listing/Compliance Department BSE LTD. National Stock Exchange of Phiroze Jeejeebhoy Towers, India Limited Dalal Street, “Exchange Plaza”, Plot No. C/1, Mumbai – 400 001. G Block Bandra - Kurla Complex, Bandra (E), Mumbai – 400 051. NSE CODE:AA
Slide 2: Analyst Meet 8th November 2024
Analyst Meet Resilient Today 8th November 2024 Promising Tomorrow
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Index
Index Company overview Q2FY25 and H1 25 Highlights Future Outlook and Roadmap An excerpt from Aarti Mural that adorns the facade of our Vadodara Office
Slide 5: Company overview
Index Company overview Q2FY25 and H1 25 Highlights Future Outlook and Roadmap An excerpt from Aarti Mural that adorns the facade of our Vadodara Office
Slide 6: Aarti Industries at a Glance
Aarti Industries at a Glance Toluene based Sulphuric Acid Downstream Products Products ● Established by first generation technocrats in 1984 Benzene based Speciality Other Speciality ● Integrated operations and high-cost optimization Chemicals Downstream Chemicals ● Key value chains include Nitro Ch
Slide 7: Our Ethos
Our Ethos PURPOSE Right Chemistry for AIL VALUES a Brighter Tomorrow CARE VISION To emerge as a Global Partner of Choice for leading consumers of INTEGRITY speciality chemicals and intermediates MISSION Delighted Stakeholders EXCELLENCE 6
Slide 8: Board of Directors (Executive and Non Executive)
Board of Directors (Executive and Non Executive) Onboarded in FY25 Mr. Rajendra Gogri Chairman and MD Mr. Rashesh Gogri Mr. Renil Gogri Mr. Suyog Kotecha Vice Chairman & MD Vice Chairman CEO & Executive Director Mr. Manoj Chheda Mr. Ajay Kumar Gupta Mrs. Hetal Gogri Gala Executive Director Executive
Slide 9: Board of Directors (Independent Directors)
Board of Directors (Independent Directors) Onboarded in FY25 Shri Lalit Kumar Naik Shri Shekhar Khanolkar Prof. Aniruddha B Pandit Shri Belur Krishnamurthy Sethuram 25Y+ | Ex CEO & MD Welspun Corp. 30Y+ | Ex ED & MD in Navin Fluorine 40Y+ | Vice Chancellor, ICT, Mumbai 38Y+ | Celanese | Dow Chemical
Slide 10: Q2FY25 and H1 Highlights
Index Company overview Q2FY25 and H1 25 Highlights Future Outlook and Roadmap An excerpt from Aarti Mural that adorns the facade of our Vadodara Office
Slide 11: Q2 & H1FY25 Highlights (Consolidated)
Q2 & H1FY25 Highlights (Consolidated) YoY : 12%▲ YoY : 13%▼ YoY : 43%▼ QoQ: 11%▼ QoQ: 35%▼ QoQ: 62%▼ ● Non-Energy Business Volumes: ● YoY: ▲22%, ● QoQ: ▲11% ● Volume uptick visible across end applications into Dyes, Pigments, Polymer Additives, Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25
Slide 12: Financial Highlights
Financial Highlights Particulars Q2FY25 Q2FY24 Y-o-Y(%) Q1FY25 Q-o-Q(%) H1FY25 H1FY24 Y-o-Y(%) Gross Income 1,786 1,597 11.8% 2,012 -11.2% 3,797 3,168 19.9% EBITDA 202 233 -13.3% 311 -35.0% 512 434 18.0% Margin(%) 11.3% 14.6% -3.3% 15.5% -4.2% - 13.5% 13.7% -0.2% PAT 52 90 -42.2 137 -4.5% 189 160 18
Slide 13: Capacities and utilization trend for few major products
Capacities and utilization trend for few major products Capacity (in KTPA) Q1 Q2 H1 H1 Y-o-Y H1 FY25 Product Groups FY22 FY23 FY24 (Expanded period) FY25 FY25 FY24 FY25 H1 Utilization% 108 NCB 76.6 77.8 73.5 19.5 19.0 36.3 38.5 6% 72% (From Q3FY24) DCB 120 74.6 84.2 80.7 24.1 23.3 39.9 47.3 19% 79%
Slide 14: Revenue by End Use
Revenue by End Use | Significant evolution in the last 3 years Rs 6,871 cr Rs 7,283 cr Rs 7,012 cr Rs 2,012 cr Rs 1,786 cr ● Agrochemical sector after registering 18% significant growth in FY23, has been Agrochemicals & 30% 21% 20% witnessing industry challenges of 23% Fertilizers inventory correcti
Slide 15: Agrochemical and Fertilizers
Agrochemical and Fertilizers Key Products: Market Update: Chloro Anilines, Di Chloro Phenols, Ethylated & ● Adverse weather conditions in the US and Latin America Fluorinated products ● Channel inventories are returning to normal levels in major markets but overhang may persist at a product to produ
Slide 16: Dyes, Pigments and Printing Inks
Dyes, Pigments and Printing Inks Key Products: Market Update: PNCB, DCBH, PNT ● Textile industry (major end-use of dyes) temporarily impacted in Bangladesh due to political unrest ● Pigment industry undergoing consolidation (e.g., Sudarshan Chemicals acquires business of Germany-based Heubach) ● Ind
Slide 17: Energy & additives (1/2)
Energy & additives (1/2) Key Products: Market Update: MMA, CaCl2 ● Gasoline - Naphtha crack is on a decline making octane boosting economics difficult in the present market conditions ● Led to significant volume impact for MMA in Q2 ● Gasoline naphtha delta expected to remain low for Q3; potential r
Slide 18: Energy & additives (2/2)
Energy & additives (2/2) Gasoline - Crude Crack Gasoline - Naphtha Spread $ / barrel $ / barrel FY24 FY25 FY24 FY25 ● High refinery runs and inventory in US and seasonal ● Recovery in demand for naphtha supported the patterns of lower demand have pressured the naphtha cracks and led to compression o
Slide 19: Pharmaceuticals
Pharmaceuticals Key Products: Market Update: PNCB, MDCB & Fluorinated Compounds ● Pharma market in India continues to grow at 8-9% per annum ● API imports to India grew by 13% in Q1 FY25 on account of lower prices from China ● US Biosecure Act expected to create positive traction for Indian pharma c
Slide 20: Polymer and additives
Polymer and additives Key Products: Market Update: PDCB, MPDA, ONA ● AIL intermediates are used in automotives, industrial applications, medical devices, electrical and electronics, heat resistant polymers ● End-markets growing at about 5-7% per annum ● US consumers deferring new vehicle purchases;
Slide 21: Long term contracts (1/2)
Long term contracts (1/2) Contract Details Current Status ● 10 year supply contract for Agrochemical ● Capacity currently under utilised; Contract 1 intermediates; cancelled in June 2020 ● Precursor capacities being utilised for other ● Compensation of ~ $120 mn received products; new products under
Slide 22: Long term contracts (2/2)
Long term contracts (2/2) Contract Details Current Status ● 9 year supply contract for an agchem ● Currently volumes as per contract terms and intermediate (Revenue potential ₹ 3000 under ramp-up Contract 4 crs over contract period) ● Volumes expected to peak in FY26 inline with FY24 ● Product is pa
Slide 23: Future Outlook and Roadmap
Index Company overview Q2FY25 and H1 25 Highlights Future Outlook and Roadmap An excerpt from Aarti Mural that adorns the facade of our Vadodara Office
Slide 24: Key EBITDA Growth Drivers in near term (H2FY25 - FY28)
Key EBITDA Growth Drivers in near term (H2FY25 - FY28) Switching to BPT¹ to improve Cogen Cost Renewable Power phase 2 Optimisation Waste energy streams utilization, ETP cost optimisation Fixed cost optimization ₹ 150-200 Cr Yield improvement Acid, DCB & NCB ramp-up Volume and margin Ethylation & NT
Slide 25: Long term growth focus areas - seed investments for growth beyond 3 years
Long term growth focus areas - seed investments for growth beyond 3 years Leveraging R&D and tech for asset light growth ● Have built significant R&D and technical capability which allows us to develop new chemistries ● Plan to leverage asset-light tolling / outsourcing model for early commercializa
Slide 26: Growth Outlook
Growth Outlook Core EBITDA Contract-1 Cancellation Projected Annual EBITDA Consistent volume growth over 3 yrs 1800-2200 driven by increased capacities Operating leverages and cost optimisation initiatives to drive EBITDA 1089 growth beyond volume growth 600 984 Capex for FY25 estimated to be ₹ 1300
Slide 27: Certifications
Certifications The certifications listed above may be applicable to only some manufacturing units of Aarti Industries 26
Slide 28: CSR Interventions: Empowering Communities
Education & Skill Tribal & Rural Other CSR Development Development Initiatives ₹ 775.32 ₹ 147.30 ₹ 30.36 lakhs lakhs lakhs CSR Interventions: Empowering Healthcare Livelihood Opportunities Women Empowerment Communities & Housing Aid ₹ 164.83 ₹ 134 ₹ 65.50 lakhs lakhs lakhs Environment & Water Conser
Slide 29: Thank You
Thank You +91 22 67976666 investorrelations@aarti-industries.com