Paragon Fine And Speciality Chemical Limited · NSE:PARAGON
Paragon Fine And Speciality Chemical — FY2024 Earnings Presentation
34 slides from Paragon Fine And Speciality Chemical's earnings presentation, Jun 29, 2024
Slide 1: Stock exchange intimation letter
Date: 29.06.2024 To, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (E) Mumbai – 400051 Symbol: PARAGON SUB: H2 & FY 24 INVESTOR PRESENTATION Dear Sir / Madam, In accordance with the applicable requirements a
Slide 2: H2 & FY24 Investor Presentation
PARAGON FINE & SPECIALITY CHEMICAL LTD H2 & FY24 Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Paragon Fine & Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: PFSCL - Our Business
PFSCL- Our Business Revenue EBITDA • Leading global supplier of specialty intermediates CAGR CAGR 14% (FY21-24) 47% (FY21-24) • Industries Served : o Specialty Pigments & Dye PAT o Agrochemical CAGR ROCE o Cosmetic 48% (FY21-24) 40% (FY24) o Pharmaceuticals o Electronics CFO ROE Rs 0.20 Cr 57% (FY24
Slide 5: Our Journey
Our Journey 2004 2022 2024 • Commenced Operations for chemical • 8000 certification attained alongside • Client based Increased to 94 manufacturing and sales One Star Export House accreditation • Revenue touched Rs 122 Cr. • Started producing of dye intermediates and a range of broadening product. G
Slide 6: Paragon's Growth and Product Strategy
Paragon’s Growth and Product Strategy Growing Revenue Expanding Margin CAGR: 14% 16.3% 14.0% 7.5% 7.1% 19.8 122.0 104.1 14.6 83.3 82.8 6.2 5.9 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (Rs Cr) EBITDA Margin % o Company's growth is on an upward trajectory, with current capacity at 650 MTPA and p
Slide 7: Improving Profitability
Improving Profitability Expanding margins: Increasing returns , Creating shareholder value Expanding Margin Enabling Shareholders’ Return 16.3% 55.3% 57.0% 14.0% 15.6% 39.7% 13.2% 36.1% 11.8% 27.0% 7.5% 7.1% 9.5% 28.2% 6.2% 6.7% 19.5% 21.9% 5.3% 5.4% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA Ma
Slide 8: Our USP
Our USP Formidable Foundations - Our Unbeatable USPs o Solid Foundations: Partnering with Global Global Leaders: Our Industry Leaders Clientele Trusted by o Proven Excellence: Delivering Quality to Top- established MNCs tier Enterprises o Everlight Chemical Industrial Corporation o Developed over 50
Slide 9: Investment Thesis
Investment Thesis o Specialised in Complex Chemistries o Customized End-to-End Solution o Derisked Model and Diversified Products Offerings o Strong product pipeline to drive future growth 8
Slide 10: Specialised in Complex Chemistries
Specialised in Complex Chemistries o High barriers exist due to o Our team has complex catalytic processes o PFSCL, one of India's successfully and the demand for largest suppliers of conducted multi-step advanced technical and Chloranil and synthesis and scale- R&D capabilities Dichlone up for nume
Slide 11: Emerging as a Key Player in a High-Barrier Industry
Emerging as a Key Player in a High-Barrier Industry Complex Catalytic Processes Technical Expertise Requirement o Processes involve intricate o Demands a high steps and chemical level of specialized reactions knowledge and o PFSCL: Implementing skills Advanced Technology Across Five Chemistry Stages
Slide 12: Forte in Complex Chemistries
Forte in 20 Complex Chemistries PFSCL expertise in 20 Chemistries Chemistry End user Industry Chemistry End user Industry Industry CAGR% Time Frame High pressure solvent Alkylation Plastics,Pharma,Textile Pharma,Fine Chem reactions Dyes & Pigments 12% 2021-2026 Amidation Pharma,Cosmetics,Solvent Hyd
Slide 13: Driving Growth through Innovation
Driving Growth through Innovation Growing Product Base Increasing Revenue per Customer (Rs Cr) 5 3 3 1 1.18 1.29 0.95 1.04 1.5 6.1 0.7 1.0 FY21 FY22 FY23 FY24 Revenue from New Products (Rs.Cr) No of New Products Introduced FY21 FY22 FY23 FY24 Innovation and Technological Advancement o Our extensive
Slide 14: Customised End to End Solution
Customised End to End Solution Case Study: Dichlone Registration and Market Growth Registration Success Rising Demand Overcoming Challenges o 2019: Began collaboration to o 2022: Demand increased to o Navigating War Effects: Maintained support Dichlone registration 70MT supply chain resilience o 202
Slide 15: De-risked Business Model and Diversified Product offering
De-risked Business Model and Diversified Product offering Diversified Revenue Stream: Segmental Revenue Contribution (%) Total Revenue from Operations (Rs.Cr) 82.2 82.8 104.1 121.3 8.1% 0.6% 0.33% 12.0% 14.3% 22.1% 0.00% 1.06% 1.40% 62.6% 79.9% 68.9% 49.7% 7.12% 7.87% 6.16% 7.00% 4.4% 17.9% 9.0% 18.
Slide 16: Revenue from Top 10 Customers
Revenue from Top 10 Customers Tailored Solution, Customer Centric Success Contribution from Top 10 Customers Growing Revenue (Rs.Cr) 73.3% 78.2% 26% 17% 42.2% 41.0% -1% 60.2 64.7 43.2 121.3 49.7 104.1 83.3 82.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Revenue(Rs Cr.) % of Contirbution Revenue(Rs Cr.)
Slide 17: Revenue from Top 10 Chemistries
Revenue from Top 10 Chemistries Top 10 Product % Contribution to Revenue 57.3% 39.7% 28.2% 34.1% 47.49 41.30 32.60 28.80 FY21 FY22 FY23 FY24 Revenue (Rs Cr.) Top 10 Product % Contribution to Revenue Product Name End user Industry 2,3 Dichloro-1,4-Naphthoquinone (Dichlone) Agro Intermediates Chlorani
Slide 18: Present Across Geographies
Present Across Geographies Exports account for 38%* of Total revenue Total Revenue from Operations [Export] (Rs Cr.) 52.1 44.7 34.6 46.5 1.5% 3.6% 6.3% 7.9% 2.6% 3.1% 2.9% 4.9% 27.1% 29.1% 58.3% 41.1% 66.1% 61.7% 46.0% 36.5% FY21 FY22 FY23 FY24 India Asia Europe North America *FY24 17
Slide 19: Strong Product Pipeline
Strong Product Pipeline Product Name Description Progress Technology Remarks HALQUINOL- Feed Feed additive Under Execution Chlorination Sampling Completed Grade o GMP Registration Expected Launch timeline: awaited HALQUINOL- Pharma Antibiotic Chlorination o 40-50% Q1FY25 enhancement in Price viz a v
Slide 20: Levers of Future Growth
Levers of Future Growth Operational Expansion: In-house Capabilities Optimization: o Increasing production capacity. o Utilization of in-house capabilities for new 01 o Efficient resource utilization. 04 product development. o Utilization of IPO proceeds for scaling up. o Meeting raw material requir
Slide 21: Financial Overview
PARAGON FINE & SPECIALITY CHEMICALS Financial Overview
Slide 22: Financial Highlights
Financial Highlights Revenue (Rs Cr.) EBITDA (Rs Cr.) & EBITDA Margin % PAT (Rs Cr.) & PAT Margin % 14% 16.3% 9.5% 11.8% FY23 121 19.8 14.3 14.6 9.9 104 FY23 FY24 FY23 FY24 FY23 FY24 14.6% 17.9% 9.7% 13.6% H2FY24 72 11 8 10 7 61 H2FY23 H2FY24 H2FY23 H2FY24 H2FY23 H2FY24 21
Slide 23: Income Statement
Income Statement Particulars (Rs Cr.) H2FY24 H2FY23 YoY FY24 FY23 YoY Net Revenue from Operations 61.2 71.6 -14.5% 121.3 104.1 17% COGS 38.8 54.5 -28.8% 83.7 72.3 16% Gross Profit 22.4 17.1 31.0% 37.6 31.8 18% Gross Margin 36.6% 23.9% 31.0% 30.6% Employee Benefits Expense 3.7 2.7 39.0% 5.8 5.1 13% O
Slide 24: Balance Sheet
Balance Sheet Particulars (Rs Cr.) FY24 FY23 Particulars (Rs Cr.) FY24 FY23 Assets Equity and Liabilities Non‐Current Assets Shareholders funds Plant Property and Equipment 10.9 9.4 Share Capital 19.6 3.6 Reserves and Surplus 63.9 18.7 CWIP 0.6 Net Worth 83.5 22.3 Other Intangible Assets 0.0 0.0 Non
Slide 25: Cash Flow Statement
Cash Flow Statement Particulars (Rs Cr.) FY24 FY23 Operating cash flow Profit Before Tax 19.3 13.6 Interest Expense 1.0 1.2 Depreciation 0.9 0.8 Other non cash items -0.6 0.0 Change in Working Capital Change in Inventory -9.3 -9.6 Change in Recievables 4.2 -3.4 Change in Payables and Other Liabiliti
Slide 26: Balance Sheet Ratios
Balance Sheet Ratios Gross Block(Rs Cr.) Net Debt / Equity Ratio (x) 16.8 13.8 14.4 2.6 10.8 1.6 1.1 -0.2 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Net Working Capital (Days) Net Worth (Rs Cr.) 42 27 44 18 83.5 130 143 113 116 103 93 85 79 81 61 22.3 6 31 8.0 12.4 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY
Slide 27: Annexure
PARAGON FINE & SPECIALITY CHEMICALS Annexure
Slide 28: Fully Equipped Manufacturing Facility
Fully Equipped Manufacturing Facility Our 7,000 square meter manufacturing facility in Viramgam, Ahmedabad, Gujarat, features two glass line assembly units and three reactors for batch reaction technology Major Machinery Installed Boiler Machine (Steam & Thermic GC Machine Heater) Digital Weighing S
Slide 29: In House Skill Development
In House Skill Development Team Composition: Comprises 14 technocrats with diverse educational backgrounds, including Bachelor of Science, Master of Science, Bachelor of Pharmacy, and Bachelor of Engineering degrees Skill Development: Prioritize in-house skill development through structured programs
Slide 30: Experienced Leadership
Experienced Leadership Dr. Pravinchandra Jasmat Dr.Rutesh V. Savalia Kishorkumar Panchabhai Vallabh Ratanji Savalia Shivam K. Patolia Vasolia Director Patolia Whole Time Director Director Chairman & Managing Age - 32 years Whole Time Director Age - 60 years Age - 24 years Director Education - Ph. D
Slide 31: Industry Tailwinds: Propelling Growth
Industry Tailwinds: Propelling Growth Indian Chemical Industry (USD Bn) Global and Regional Leadership o India holds a significant position in the global chemical industry, ranking as the 6th largest producer worldwide and the 3rd largest producer within Asia Growth Drivers: Indian Chemical Industry
Slide 32: PFSCL-Solutions Across Industries
PFSCL-Solutions Across Industries Specialty chemicals are segmented by end-user markets At Paragon we serve high growth Industries… Indian Agro Chemical Industry (Rs Bn) 4% 4% 3% 6% 7.4 6 4% 2021 2026 Indian Dye & Pigment Industry (Rs Bn) 22% 15.9 Agrochemical Construction Chemical Electronic Chemic
Slide 33: PFSCL - Driving Sustainable Excellence
PFSCL - Driving Sustainable Excellence Installed Membership comprehensive safety equipment o Fire Hydrants o Eco Care for Solid Waste Disposal Facility o Fire Extinguishers o Novel Spent Acid Management (discharging o Eye Shower 100 tons of acid per month) o Fire Balls o M/s A-One Green Enviro Proje
Slide 34: Thank You
THANK YOU Investor Relations Contact: Company Contact: Priya Sen Sheetal Khanduja Nikita Hardik Rajpara Go India Advisors Go India Advisors cfo@paragonind.com priya@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com M:+91 9408559957 M:+91 8334841047 M:+91 97693 64166
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