Manorama Industries Ltd. · NSE:MANORAMA
Manorama Industries — Q2 & H1 FY24 Earnings Presentation
55 slides from Manorama Industries's earnings presentation, Nov 9, 2023
Slide 1: Manorama Industries Limited – Investor Presentation filing letter
Manorama Industries Limited KHASRA No. 2449-2618 Nr. IIDC, Birkoni Mahasamund (C.G.) Pin : 493445 November 09, 2023 To, To, The Manager, The Manager, BSE Limited ("BSE") National Stock Exchange of India Limited P. J Towers, Dalal Street, Fort, ("NSE") Mumbai - 400 001 Exchange Plaza, Plot No. C/1, G
Slide 2: Investor Presentation Q2 & H1 FY24
Manorama Industries Limited Investor Presentation Q2 & H1 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: Q2 & H1 FY24 Performance Highlights
Q2 & H1 FY24 Performance Highlights
Slide 5: Management Commentary – Q2 & H1 FY24
Management Commentary – Q2 & H1 FY24 Commenting on the results and performance, Mr. Gautam Kumar Pal, Managing Director said: “In H1 FY24, the Company demonstrated a strong revenue growth of 49% year on year. Revenue for the period stood at Rs. 2,292.9 million as compared to Rs. 1,536.8 million same
Slide 6: Q2 FY24 – Financial Highlights
Q1 FY24 – Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) +46% 1,177.3 52% 184.9 47% 86.1 807.1 121.4 58.5 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 EBITDA Margins (%) PAT Margins (%) 15.0% 15.7% 7.2% 7.3% Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 5
Slide 7: H1 FY24 – Financial Highlights
H1 FY24 – Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) +49% 2,292.9 50% 371.3 60% 201.6 1,536.8 247.5 126.1 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 EBITDA Margins (%) PAT Margins (%) 16.1% 16.2% 8.8% 8.2% H1 FY23 H1 FY24 H1 FY23 H1 FY24 6
Slide 8: Q2 & H1 FY24 – Profit & Loss Account
Q2 & H1 FY24 – Profit & Loss Account Profit and Loss (Rs. Millions) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Y-o-Y H1 FY24 H1 FY23 Y-o-Y Revenue from Operations (Net of Excise) 1,177.3 807.1 +46% 1,115.6 +6% 2,292.9 1,536.8 +49% • Revenues for the H1 FY24 stood at Rs. 2,292.6 million registering a growth of 49
Slide 9: September 2023 – Balance Sheet Statement
September 2023 – Balance Sheet Statement Equity & Liabilities (Rs. Millions) Sep-23 Mar-23 Assets (in Rs. Millions) Sep-23 Mar-23 Total Equity 3,161.4 2,983.0 Non - Current Assets 1’654.1 1,541.2 Share Capital 119.2 119.2 Property Plant & Equipment's 1,058.3 966.3 Reserves & Surplus 3,042.2 2,863.8
Slide 10: H1FY24 – Core RoCE Profile
H1FY24 – Core RoCE Profile Particulars (Rs. Million.) H1 FY24 Gross Debt 2,481.9 Net worth 3,161.4 Total Capital Employed 5,643.2 Less: New Capex Investments – Land for new plant, Capital Advances, CWIP 498.9 Less: Cash, Cash Equivalents, Bank 898.2 Core Business Capital Employed (A) 4,246.1 EBIT (A
Slide 11: September 2023 – Cash Flow Statement
September 2023 – Cash Flow Statement Particulars (Rs. Millions) Sep-23 Sep-22 Net Profit Before Tax 286.8 176.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 110.3 72.7 Operating profit before working capital changes 397.2 252.3 Changes in working capital -1,203.0 -287.6 Cash
Slide 12: Business Update - New Expansion Plan & Fund Raise
Business Update - New Expansion Plan & Fund Raise
Slide 13: 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 14: 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 15: Update on Capex (1/2)
Update on Capex (1/2) Solvent Extraction & New Warehouse & Refinery Plant • As of 30th September 2023, the company has incurred Rs.1,140.9 million towards this Capital Expansion • Since the new Capex announcement in August 2021, the Company has successfully completed the commissioning of the followi
Slide 16: 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 the coming months. • The cost of this capex was originally envisaged to be Rs. 650 million. However, as on 30th September 2023 the company h
Slide 17: Capacity that Drives Growth
Capacity that Drives Growth Total Capacity Post Expansion Process Status (metric tonnes per annum) Seed Milling (Expeller) 1,20,000 Commissioned Solvent Extraction Plant 90,000 Commissioned Refinery 45,000 Commissioned Interesterification 30,000 Commissioned Fractionation 40,000 Expected to be commi
Slide 18: Company Overview
Company Overview
Slide 19: 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 ‘IND BBB+’ Positive Fats & Butters outlook. 02 #1 Sal Fat Manufacturer 06 Network of Millions women 10 3 Year Revenue CAGR of +30% Globally tribal 61% of Revenue from Thousan
Slide 20: About Us
About Us Enjoys undisputed leadership as a key supplier to the Since its incorporation 16 years ago in 2005, started World’s Leading Fortune Companies in Food, with extracting butter and fats from Sal seeds and Chocolate, Confectionery and Cosmetic Industries Mango kernel and gradually forayed into
Slide 21: 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”. Directly/Ind
Slide 22: 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 Carmel Background: A CA , Expert in Financial Marke
Slide 23: Experienced Management Team
Experienced Management Team Ashish Saraf - President Dr. Krishnadath Bhaggan - VP - R&D CS Divya Jajoo - CS & Compliance Product Development A B.Com, having over 33 years of experience in Experience in R&D and Innovation for 22 yrs.+ He is She played a pivotal role in the company's initial managing
Slide 24: Our Vision and Mission
Our Vision and Mission Vision • Acquire and maintain leadership position in chosen • Customer delight is our highest priority areas of business by innovating products and adopting unique co-development approach for different • Upliftment of livelihood of tribal people applications, and various segme
Slide 25: Global Certifications
Global Certifications Manorama Industries’ quest for quality has earned it a spectrum of prestigious certifications 24
Slide 26: Our Business Model
Our Business Model
Slide 27: We Source from poor and sell to rich
Weaving a Revolution - Wealth Out of Waste Waste to Wealth From Forests to Premium Brands From the Poorest to the Richest • Forest / Plant grown seeds are major raw • Collecting raw materials primarily exotic seeds • Procuring Raw Materials from the marginalized materials from the forest tribal loca
Slide 28: 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 29: 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 tailor-made fats and CBE demand, the company has set up an integrated state of the art manufacturing plant at Birkon
Slide 30: 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 At Manorama Manorama buying Shea nuts Deshelling of Boiling & Cleaning Pre-cleaning of Wa
Slide 31: 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 32: Innovation & Research
Innovation & Research
Slide 33: Key Product Components – Tree Borne Seeds
Key Product Components – Tree Borne Seeds Sal seeds Mango kernel Shea nuts (Shorea robusta) (Mangifera indica) (Vitellaria paradoxa) • India has the largest Sal forests in the world, Sal seeds • Mango is a seasonal fruit that is amply available across • Shea nuts are found mainly in the West Africa
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 butter content of the Sal • It is the solid fraction of Sal the same fatty acids and triglycerides as seed is 13-14%, and it is Butter derived by solvent Coco Butter abu
Slide 35: Product Portfolio - MILCOA Range & Spread Fats
Product Portfolio - MILCOA® Range & Spread Fats Milcoa Brand Range Cocoa Butter Equivalent (CBE) 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 technologies Research & Development Centre Led by: 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 revenues coming from the cosmetics industry Food & Confectionery Chocolate Cosmetics Plant Based Meat, Food Industry The Brand Names men
Slide 38: Geographical Footprint
Geographical Footprint Trusted manufacturer of food, chocolate, confectionary and cosmetics ingredients industry having H1 FY24 - Revenue Breakup customer base spanning across the globe 42% 58% Domestic International Russia, Latin America, Japan & Europe Key Growing Export Market The Company enjoys
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 Q1 FY24 Revenue contribution from cattle feed business Rs. 379.2 Milli
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 o Planted more than 5,000 saplings last o E
Slide 42: Giving Back to The Society
A \\ Giving Back to The Society =] rch ow FOR YOUR DONATION Of Bone Marrow Density Machine We genuinely appreciate your contribution towards society and healthcare
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) Mr Ashish Saraf, President of Manorama Award for “Generating Sustainable Wealth IOPEC, Ministry of Commerce of India gave Award for Industries Limited, Raipur received “TWO Through Exports of Value-Added Products “Highest Export” to Manorama Industries Limited receive
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 Awarded ‘Eminent Excellence in ESG & Sustainable Creation of Extractors’ Association of India at G
Slide 46: Client Testimonials (1/2)
Client Testimonials (1/2) Meet the Women of Manorama – Article Published on The Body Shop Website Note: The Brand names mentioned are the property of their respective owners and are used here for identification purposes only 45
Slide 47: Client Testimonials (2/2)
Client Testimonials (2/2) Article Published on Lush Website Note: The Brand names mentioned are the property of their respective owners and are used here for identification purposes only 46
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 Achieved guidance Revenue (Rs. In Mn) of Rs. 3,500 million EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) annual revenue in +32% +28% +43% 3,508.0 FY23 564.5 297.8 2,791.2 241.5 389.4 2,026.3 346.6 145.8 FY21 FY22 FY23 FY21 FY22
Slide 50: Financial Highlights
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 658.8 759.2 406.0 507.6 210.7 EBITDA 5
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: 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 54: 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 85% utilisation and is expected to A major driver for the sector is projected to be the growing habit of chocolate achieved o
Slide 55: THANK YOU
Contact Information Company : Investor Relations Advisor : Manorama Industries Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15142MH2005PLC243687 CIN: U74140MH2010PTC204285 Ms. Ekta Soni – Investor Relations Mr. Abhishek Shah E: investors@manoramagroup.co.in E: abhishek.shah@sgapl.net T: 0771228
Manorama Industries — Q2 & H1 FY24 Earnings Presentation on 6ix