Slide 1: GHCL Limited Q2 FY22 Investor Update
DRIVING EXCELLENCE GHCL LIMITED Q2 FY22 Investor Update October 2021
Slide 2: Safe Harbour
This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and sh
Slide 3: Table of Contents
Table of Contents Quarterly Update 4 Company Overview 17 Inorganic Chemicals Segment 24 Textiles Segment 34 3
Slide 4: Quarterly Update
Quarterly Update 4
Slide 5: Management Commentary
Management Commentary Commenting on the Q2 FY22 performance, Mr. R. S. Jalan, MD said: “We have demonstrated solid performance during the quarter under review after swiftly navigating through the severe second wave of Covid-19 pandemic. The performance was bolstered by steep economic recovery across
Slide 6: Performance Highlights – Q2 FY22
Performance Highlights – Q2 FY22 Q2 FY22 27% 24% 41% 40% 49% Vs Q2 FY21 Revenue EBITDA PBT PAT Cash Profit ` 987 crore ` 201 crore ` 149 crore ` 109 crore ` 165 crore Q2 FY22 16% 7% 8% 8% 22% Vs Q1 FY22 6
Slide 7: Performance Highlights – H1 FY22
Performance Highlights – H1 FY22 51% 58% 123% 121% 87% H1 FY22 Vs H1 FY21 Revenue EBITDA PBT PAT Cash Profit ` 1,842 crore ` 390 crore ` 288 crore ` 211 crore ` 300 crore 7
Slide 8: Profit & Loss Statement
Profit & Loss Statement (Rs. In Crore) Particulars Q2 FY22 Q2 FY21 Y-o-Y Q1 FY22 Q-o-Q H1 FY22 H1 FY21 Y-o-Y Revenue 987 779 27% 854 16% 1,842 1,220 51% Operating Expenses 786 617 27% 666 18% 1,452 973 49% EBITDA 201 162 24% 189 7% 390 247 58% EBITDA Margin 20.4% 20.8% (40 BPS) 22.1% (1.7)% 21.2% 20
Slide 9: Resource allocation & Key financial ratios
Resource allocation & Key financial ratios Efficient Capital Allocation Creating and sustaining Social And Borrowing Working Capital Relationship an enabling external environment for the ` 42 crore ` 68 crore business to flourish Financial Funds are being invested Rs. in various CAPEX projects 3
Slide 10: Balance Sheet
Balance Sheet ( Rs. In Crore ) Particular Sept 2021 March 2021 Non Current Assets (A) 2,930 2,893 Current Assets (B) 1,212 1,099 Current Liabilities (C) 464 444 Net Working Capital (D)=(B)-(C) 747 654 Capital Employed (A)+ (D) 3,678 3,547 Net Worth (E) 2,669 2,502 Other Non Current Liabilities (F) 2
Slide 11: Q2 FY22 Segment Highlights – Inorganic Chemicals
Q2 FY22 Segment Highlights – Inorganic Chemicals (Rs. In Crore) Particulars Q2 FY22 Q2 FY21 Y-o-Y Q1 FY22 Q-o-Q Revenue 572 482 19% 527 8% Performance Highlights EBITDA 106 119 (11%) 112 (6)% Reported significant improvement in revenues Y-o-Y EBITDA % 18.5% 24.6% (6.1)% 21.2% (2.7%) fueled by volu
Slide 12: Q2 FY22 Segment Highlights – Textiles
Q2 FY22 Segment Highlights – Textiles (Rs. In Crore) Performance Highlights Particulars Q2 FY22 Q2 FY21 Y-o-Y Q1 FY22 Q-o-Q Reported Highest-Ever Revenues in Q2 FY22, representing a growth of 40% Y-o-Y and 27% Q-o-Q Revenue 415 297 40% 327 27% • Continued strong demand landscape supplemented by po
Slide 13: Recent updates
Recent updates CRISIL Ratings assigned CRISIL AA -/Stable (i.e., Double A Minus with Crowned with Great place to work recognition for 5th Stable outlook) to GHCL Limited for issuance of Non-Convertible time in a row; Debentures (NCD) of Rs. 150 crore, which may be issued within a period of 180 d
Slide 14: Demerger of the Textiles business of GHCL
Demerger of the Textiles business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Textiles business of GHCL will be demerged into a Focused separate Company growth Shareholders of GHCL will be allotted shares in the new company in the swap ratio of 1:1, one share of
Slide 15: Strong Institutional & HNI Holding – ~42%
Strong Institutional & HNI Holding – ~42% Mutual Funds 15.57% Promoters & Promoters Group 19.07% Foreign Portfolio Investors 16.61% Insurance Companies / Financial Non Institutional Holding Institutions / Banks (Incl. Corporates) 3.75% 38.71% HNI’s 6.29% 15 Note: Shareholding as of September 30, 202
Slide 16: Focus on driving responsible future growth
Focus on driving responsible future growth Inorganic Textiles Chemicals Debottlenecking of existing soda ash facility by 50k MT, Expansion of Spinning facility. along with modular greenfield project. Focus on green energy. Doubling RBC Capacity from 60k to 120K MT. Value added and Quality
Slide 17: Company Overview
Company Overview 17
Slide 18: GHCL – An Introduction
GHCL – An Introduction Best-in-class Focused management Targeting Operations management approach To grow profits at a CAGR 15%-18% on a long term horizon CAPEX planning and execution Strategy led by professional To inculcate value systems that defines our culture Financial management m
Slide 19: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda experience ash player in India Professionally managed Listed on 2 workforce premier stock exchanges of India Focus to emerge as a sustainable business Business Philosophy organization of Inclusive growth of all stakeholders 19
Slide 20: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Production with 4.2 Lacs MTPA which was further increased to 5.25 Lakh MTPA 1988-2000 Commenced Edible Salt Production and Launched ‘Sapan’ salt Soda Ash capacity increased to 8.5 Lacs MTPA Entered Spinning business with 65K spindles subsequentl
Slide 21: Sustainability Vision 2023
Sustainability Vision 2023 GHCL’s business goals include Zero harm sustainability. To embed Zero reportable injuries Zero environmental incidences sustainability in business and operations, concentrating Responsible steward attention on material concerns 20% specific freshwater consumption red
Slide 22: Core Values at forefront
Core Values at forefront GHCL is an unique work place which is dotted with its Core Values, defining its culture. Every employee in the Company is expected to imbibe its Core Values and interact within the business Integrated ecosystem with all its Respect Trust Ownership teamwork stakeholders a
Slide 23: Spearheaded by distinguished management
Spearheaded by distinguished management Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia Neelabh Dalmia (Chairman) (Vice Chairman) (Executive Director, Textiles) Dr. Manoj Vaish Justice (Rtd.) Ravindra Singh Mr. Arun Kumar Jain R S Jalan (Independent Director) (Ind
Slide 24: Inorganic Chemicals
Inorganic Chemicals a oS & Poa
Slide 25: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Limestone (25% Single largest Soda Soda Ash B2B to B2C captive) and Salt (35% Best in class ash plant in India at with supply chain a single location captive) mine located productivity existence within 40 km distance Key Differentiators Innovated from
Slide 26: Global outlook on the Soda Ash industry
Global outlook on the Soda Ash industry Soda Ash Market Outlook Global industry is yet to reach pre-CoVID level due to supply GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT chain issues, plant closure in China, and energy crisis. However, demand for Soda Ash has improved from last year, driven by b
Slide 27: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic Market Share Domestic Demand & Growth Trend 27% (CAGR Growth of 5% during period upto FY 21) 25% 23% 20% 31 31 33 34 36 40 40 41 38 23 25 25 26 28 28 5% 2007 2008 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Tata GHCL Nirma Others Im
Slide 28: At GHCL, Soda Ash is managed unlike any commodity
At GHCL, Soda Ash is managed unlike any commodity Balanced Demand & Supply Historically, no mismatches in Demand supply as supply Scenario always followed demand globally Sustaining high utilization rates while maintaining periodic Excellence in Execution enhancement in capacities. Achieved through
Slide 29: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 29
Slide 30: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Domestic Demand Share Import 13% Doubled capacity DCW 9% from 30,000 to Nirma 13% 60,000 MT in GHCL 21% December 2017 Tata Chem 45% Generally Domestic Demand Concentration Specialization and named as baking West 16% experience in soda, bread South 21% manufac
Slide 31: Key Application of Sodium Bicarbonate
Key Application of Sodium Bicarbonate Tannery Pharma Food Potential application of Sodium bicarbonate in flue gas treatment which is under trial phase; could be a game changer Animal Feed Chemicals 31
Slide 32: Consumer Products
Consumer Products Expansion and diversification in Consumer Products Division Premium edible Salt Manufacturer in South India Expansion of product portfolio under the brand i-FLO Venturing into the Premium Honey Category Introduction of new powdered spices Entry into new markets in Maharas
Slide 33: Marquee Clients
Marquee Clients GUJARAT BOROSIL LIMITED 6 bi CFENA Man inbors FERENTNS
Slide 34: Textiles Segment
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Slide 35: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Innovation Sustainability Traceability Exceeding Expectations 35
Slide 36: Leveraging technology for end to end traceability – True trace
Leveraging technology for end to end traceability – “True trace” One of unique inhouse development for complete traceability of product 36
Slide 37: Complete Integration improving the efficiency
Complete Integration improving the efficiency PRESENCE ACROSS VALUE CHAIN 1.85 Lacs Spindles, 3,320 Rotors, 12 Mn Meters 45 Mn Meters 30 Mn Meters 5,760 TFO Drums, 5 Air Jet Spinning Bed Machines Fabric Sheets & Spinning Weaving Processing Cut & Sew Made-up’s Also sold in Market Sold in Market Spi
Slide 38: Marquee Clients
Marquee Clients id BZ Revman Internatior BED BATH KOHLES ff BED BATHS | HBC SainsburyS — amazoncom sl, “. ave Walmart.com
Slide 39: Reinventing the top
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL 39
Slide 40: Awards & Recognitions
Awards & Recognitions Referred as Great Place to 5 Notch Upgrades in last 6 years Mine Award SIMA Technofacts Award work in five consecutive years GHCL Limestones Mines received GHCL Yarn division received SIMA of participation Mine award under A2 category at Technofacts Award at the 13th CEO 26th M
Slide 41: About Us
About Us GHCL Limited was incorporated on 14th October, 1983. The Company has For more information, please visit us at established itself as a well-diversified group with an ascertained footprint in www.ghcl.co.in chemicals, textiles and consumer products segments. In chemicals, the Company mainly m
Slide 42: Thank You
Thank You 42