Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q4 FY22 Earnings Presentation
38 slides from Sudarshan Chemical Industries's earnings presentation, May 26, 2022
Slide 1: Investor Presentation Q4 FY22
Investor Presentation Q4 FY22
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants ~$295 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha
Slide 5: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. Sudarshan Mexico S. de R.L de CV. JAPAN Sudarshan
Slide 6: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider 204% EBITDA ₹ Cr 220% Domestic Revenue ₹ Cr EBITDA % A Consistent performance with Sales and Exports Revenue ₹ Cr 2,201 275 Operating profit growing at a CAGR of 11% despite exiting some of the businesses 1,206 192 1,438 781 FY11 FY22
Slide 7: Pigments Application - a global $8.6bn market opportunity
Pigments Application - a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 8: Pigment Industry View
Pigment Industry View • Input costs continue at an elevated level across multiple intermediates • Sharp increase in energy costs • Logistics disruptions continuing leading to cost escalations and tight container availability • Industry consolidation trend continued • Geo-political risk for potential
Slide 9: Investing for growth of our Pigment business
Investing for growth of our Pigment business FY20 ₹ 222 Cr Put to use: Capex overall FY21 ₹ 71 Cr ₹ 520 Cr revenue potential estimated at ~ ₹ Capex incurred 1,500 Cr at full Projects under capacity ramp up Capex plan: implementation at FY22 ₹ 227 Cr ₹ 210 Cr over three years ₹ 750 Cr Capex to be To
Slide 10: Quarterly Financials
Quarterly Financials
Slide 11: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 627 87 86 48 602 577 +9% 45 74 36 15.2% 13.7% 8.3% 12.3% 7.1% 6.0% Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 * EBITDA as percent to Tot
Slide 12: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights - Key Ratios Current Ratio Cash conversion cycle 1.2 1.1 1.1 91 96 86 Earnings per Share 6.9 6.5 5.3 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Debt to Equity Ratio Debt ₹ Cr Debt to EBITDA 2.9 3.0 Q4FY21 Q3FY22 Q4FY22 1.0 1.0 2.1 0.8 614 795 819 Q4FY21 Q3FY22 Q4FY22
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 560 558 42.9% 84 533 +5% 41.6% 41.0% 77 76 15.8% 13.7% 13.7% Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 ➢ Capacity^ utilisation during Q4FY22 was at ~ 7
Slide 14: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 306 273 287 272 +5% 260 254 +5% Mix % 51% 55% 51% 49% 45% 49% Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 375 383 185 363 176 +5% 170 +3% Mix % 68% 67% 69% 32
Slide 15: Annual Performance
Annual Performance
Slide 16: Annual Performance Highlights - Consolidated Financials
Annual Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) +10% +17% 2,201 288 140 +11% 275 130 1,864 246 1,708 109 1,593 204 81 15.4% 14.4% 12.8% 12.5% 7.5% 6.4% 5.9% 5.1% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19
Slide 17: Financial Highlights
Financial Highlights Earnings per Share Return on Capital Employed Gross Block ₹ Cr Cash conversion cycle Working capital % to 1,235 Income from Operations +61% 15.9% 15.3% 14.8% 113 932 863 93 96 20.2 11.5% 86 18.8 15.7 641 11.7 28% 24% 24% 25% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21
Slide 18: Annual Performance Highlights - Pigment Business
Annual Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) +9% 2,020 43.4% 43.1% 281 +11% 42.8% 269 41.8% 1,753 234 1,590 1,477 211 16.0% 14.3% 14.7% 13.3% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ➢ A steady growth
Slide 19: Pigment Business: Overseas geographies continue to have steady growth
Pigment Business: Overseas geographies continue to have steady growth Domestic Revenue ₹ Cr Export Revenue ₹ Cr +11% +11% +21% +10% 1,034 985 897 856 806 783 756 721 Mix % 51% 51% 49% 51% 49% 49% 51% 49% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ➢ With the investment in infrastructure and sales force
Slide 20: Pigment Business: Shift towards Specialty to continue
Pigment Business: Shift towards Specialty to continue Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr +11% +11% +15% +17% 1,378 642 1,203 550 1,109 1,005 471 481 Mix % 68% 70% 69% 68% 32% 30% 31% 32% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 ➢ Focus on growing our Specialty pigments portfolio is shi
Slide 21: Business Outlook
Business Outlook
Slide 22: Business Outlook - FY23 and beyond
Business Outlook - FY23 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Gradual sales ramp-up of new • Expanding product portfolio to build • Building one of the most efficient Capex's expec
Slide 23: About Sudarshan
ABOUT SUDARSHAN
Slide 24: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 25: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 26: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. D. N. Damania Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani (Non-Executive, (Non- Executive, (Non-Executive, (Non-Execut
Slide 27: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 28: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 29: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 30: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 31: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 32: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 33: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERCIAL EXCELLENCE ENVIRONMENT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practice
Slide 34: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 35: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 36: Shareholder Information
Shareholder Information Share Information (as at 31st March 2022) Shareholding Pattern (as at 31st March 2022) Promoters 35.82% NSE Ticker SUDARSCHEM FIIs and FPIs 7.92% BSE Ticker 506655 Mutual Funds 9.29% Others 46.97% Market Cap (INR mn) 36,350 % free-float 64.18% SUDARSHAN NIFTY 500 Free-float m
Slide 37: Awards And Accolades
Awards And Accolades Mahatma Awards 2020 in CSR Global CSR Award 2020 HR Excellence Award 2018 Brands of Maharashtra 1st in Chemicals & Fertilizer Excellence Platinum Category Sector Global Clean Village Award - ‘Dream Company to Work For’ Global WasteMet Award 2018 DMAI Award for Energy Energy & En
Slide 38: Thank You
THANK YOU Investor Relations at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162 Wellesley Road, Pune, Maharashtra - 411001 38
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