Vidhi Specialty Food Ingredients Ltd · NSE:VIDHIING
Vidhi Specialty Food Ingredients — Q4 FY22 Earnings Presentation
35 slides from Vidhi Specialty Food Ingredients's earnings presentation, May 13, 2022
Slide 1: Vidhi Specialty Food Ingredients Limited
Vidhi Specialty Food Ingredients Limited. Office: E/27/28/29, Commerce Centre, 78, Tardeo Road, Mumbai - 400034, India. Tel:+ 91 22 6140 6666 Fax: +91 22 2352 1980 Factory: 59/B & 68, M.l.D.C. Dhatav, Roha Dist: Raigad, Maharashtra - 402116,lndia. Date: May 13, 2022 E-mail : mitesh.manek@vidhifoodco
Slide 2: Investor Presentation – May 2022
Vidhi Specialty Food Ingredients Limited COLOURS You Can Trust For Your Food Investor Presentation – May 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vidhi Specialty Food Ingredients Limited [Formerly known as 'Vidhi Dyestuffs Manufacturing Limited] (the “Company’), have been prepared solely for information purposes and do not constitute an
Slide 4: Financial Performance
VW SPECIALTY FOOD INGREDIENTS LIMITED. Financial Performance
Slide 5: Q4 & FY22 Performance Highlights
Q4 & FY22 Performance Highlights Update on Capacity Q4 FY22 (Y-o-Y) FY22 (Y-o-Y) Expansion Revenue Revenue 48% 102% Phase I Dahej SEZ 145 Crs 537.1 Crs (360 MT) Construction activity in full swing. Installation of some machinery going on simultaneously. EBITDA EBITDA 14% 61% 19.2 Crs 84.6 Crs Phase
Slide 6: Q4 & FY22 Consolidated Key Highlights
Q4 & FY22 Consolidated Key Highlights Revenue (Rs. in Crs) EBIDTA (Rs. in Crs) PAT (Rs. in Crs) +102% +61% +60% 537.1 84.6 58.6 52.4 36.6 266.4 48% 14% 16% 145.0 19.2 13.8 97.8 16.8 11.9 Q4FY21 Q4FY22 FY21 FY22 Q4FY21 Q4FY22 FY21 FY22 Q4FY21 Q4FY22 FY21 FY22 COLOURS You Can Trust For Your Food 5
Slide 7: Q4 & FY22 Consolidated Profit & Loss Statement
Q4 & FY22 Consolidated Profit & Loss Statement Particulars (Rs in Crs) - Consolidated Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q FY22 FY21 Y-o-Y Revenue from Operations 145 97.8 48.3% 160.9 -9.9% 537.1 266.4 101.6% Total Expenses 110.9 68.2 120.8 398.1 172.9 Gross Profit 34.01 29.6 14.9% 40.1 -15.2% 139.0
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs in Crs) Mar-22 Mar-21 Particulars (Rs in Crs) Mar-22 Mar-21 Equity Share Capital 5.0 5.0 Property, Plant and Equipment 35.7 26.8 Other Equity 211.9 156.3 Capital Work-in-progress 37.2 8.4 Total Equity 216.9 161.3 Right to Use 3.2 3.2 Financial Liabilities O
Slide 9: Consolidated Abridged Cash Flow Statement
Consolidated Abridged Cash Flow Statement Cash Flow Statement Mar-22 Mar-21 Cash Flow from Operating Activities Profit before Tax 78.9 49.6 Adjustment for Non-Operating Items 6.74 4.8 Operating Profit before Working Capital Changes 85.7 54.3 Changes in Working Capital -85.6 -30.6 Cash Generated from
Slide 10: Consolidated Operating Performance
Consolidated Operating Performance Revenue from Operations (Rs. in Crs) EBIDTA (Rs. in Crs) 537.1 84.6 +26.1% +28.0% 50.4 52.5 266.4 46.1 212.6 228.4 224.6 31.5 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Profit before Tax (Rs. in Crs) Profit after Tax (Rs. in Crs) 79.0 +30.0% 44.8 +34.0% 33.9
Slide 11: Consolidated Historical Profit & Loss Statement
Consolidated Historical Profit & Loss Statement CAGR (FY18 – Particulars (Rs in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 FY22) Revenue from Operations 537.1 266.4 224.6 228.4 212.6 26.1% Total Expenses 398.1 172.9 133.5 145.3 144.9 Gross Profit 139.0 93.6 91.2 83.0 67.6 19.7% GP % 25.9% 35.1% 40.6% 3
Slide 12: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet Particulars (Rs in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Particulars (Rs in Crs) Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity Share Capital 5 5.0 5 5.0 5.0 Property, Plant and Equipment 35.7 26.8 40.2 30.8 29.3 Other Equity 211.9 156.3 123.7 96.0 72.0 Capital Wor
Slide 13: Consolidated Abridged Cash Flow Statement
Consolidated Abridged Cash Flow Statement Cash Flow Statement Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Cash Flow from Operating Activities Profit before Tax 78.9 49.6 45.2 40.9 24.5 Adjustment for Non-Operating Items 6.7 4.8 6.1 5.3 7.1 Operating Profit before Working Capital Changes 85.7 54.3 51.3 46.2 3
Slide 14: Sustainable Return Ratios
Sustainable Return Ratios Cash flow from Operations Borrowings and Cash & Cash Equivalents Rs. In Crs Rs. In Crs • Cashflow impacted negatively as 33.2 Cash & Cash Equivalents 89.5 company has built up inventory 27.7 Borrowings 22.1 considering volatile geopolitical 11.2 environment. 42.1 42.2 • Bor
Slide 15: Company Overview
VW SPECIALTY FOOD INGREDIENTS LIMITED. Company Overview
Slide 16: All About Food Colours
All About Food Colours Why Food Colours??? ✓ Food colours are ingredients that are added to food or beverage to enhance its appearance ✓ Colours when added to food products imparts very bright and tempting effect Consistency in the Enhance the visual Improves the product appearance appeal of a dish
Slide 17: Huge Industry Potential with Limited Players
Huge Industry Potential with Limited Players Food Colour Industry Growth Upsurge in demand for food colors from various end-use industries, including food & beverages, bakery & confectionery, dairy products, meat & poultry, and seafood USD Bn Industry Potential +6% CAGR 5.1 Colour is a key component
Slide 18: About Vidhi Specialty Food Ingredients
About Vidhi Specialty Food Ingredients An Institution in Edible Colour Technology Existing Capacity of over 2nd Supplying to80 Countries 3,500 MT p.a. Over 200 Largest food colour manufacturer in Asia across 6 continents + active customers ~8,500 MT p.a. under expansion Diversified End User Industry
Slide 19: Legacy of over 2 Decades
Legacy of over 2 Decades Vidhi Dyestuffs Mfg. Ltd. Increased Production Brownfield expansion with Capacity expansion plans up incorporated with production Capacities to 90 MT / capacities increased to 250 to ~900 MT / Month with 2 capacity of 30 MT / Month Month MT / Month Greenfield Expansions 2022
Slide 20: Synthetic Food Colours
Synthetic Food Colours Synthetic Water Full range of 14 water soluble colours available in Primary Water • Primary Food Water Soluble Colours are water Soluble Food Microfine Powder, Fine Plating Grade Powder & Granular soluble, and impart coloring to any product when Soluble Colours Forms Colours d
Slide 21: Wide Product Range
Wide Product Range FD&C Certified FD&C Certified Water Soluble Colours Lakes Water Soluble Colours Lakes Tartrazine Allura Red Lake Tartrazine Lake Allura Red FD&C Yellow 5 Lake FD&C Yellow 5 Quinoline Yellow Patent Blue V Lake Quinoline Yellow Lake Indigo Carmine FD&C Red 3 Lake FD&C Yellow 6 Sunse
Slide 22: Existing Manufacturing facilities
Existing Manufacturing facilities • Our Manufacturing facilities have been audited and found satisfactory by the U.S. FDA • Our present and operational manufacturing facilities are spread over an area of 1,76,000 square feet, located in Dhatav Village of Raigad District in the state of Maharashtra •
Slide 23: Long runway for growth
Long runway for growth Pursuing Capacity Expansions Capacity Expansion Metric Tons per Month Phase I ➢ In Dahej Sez, Gujarat ~720 ~1,000 ➢ 360 MT Capacity to be installed 3x ➢ EC clearance received ➢ Civil construction commenced Planned Capacity Expansion in 1 year ➢ Expected timeline: H1FY23 325 ➢
Slide 24: Diversified End-user Market
Diversified End-user Market • Processed Foods Food & Beverage • Lip Gloss • Soft/Health Drink Cosmetics • Nail Varnish • Ice Creams • Mascara with diversified end-user market • Sherbets Highly regulated niche market • Jam’s & Jellies • Eye Shadow • Juices Pet food & Cattle Feed Confectionery & • Cho
Slide 25: Marquee Customers across Industries
Marquee Customers across Industries Cosmetics Customer & Industry Diversity Confectionaries & Bakery Britannia Unilever Procter & Gamble Nestle Mars Pepsi Personal/ Home Care Kraft Pfizer Kerry Coca-Cola Sanofi ITC Food & Beverage Cipla Cadila Mondelez Parle G Rasna Mala’s Pharmaceuticals Pet food,
Slide 26: Global Footprint
Global Footprint Continent Wise Sales Country Wise Sales (Q4FY22) USA Egypt 6% 9% Mexico Argentina 3% 19% 2% 22% 18% Italy Philippines Spain Germany 32% Brazil TURKEY China Vietnam FY22 Q4 FY22 5% Indonesia Australia 17% 20% MALTA Iran 3% AFGHANISTAN Rest of the World 51% 50% 3% 2% 4% 9% 5% 2% AFRIC
Slide 27: Stringent Regulatory Approvals
Stringent Regulatory Approvals Synthetic Water Soluble Colours European Commission & JECFA Approved Aluminum Lakes D&C Colours European Commission & JECFA Approved U. S. FDA Approved Blends FD&C Colours European Commission, JECFA & U. S. FDA Approved U. S. FDA Approved Co-Blended Lakes &Co-Blended G
Slide 28: Certifications & Regulatory Approvals
Certifications & Regulatory Approvals ✓ 1st Company in the field of manufacturing synthetic food colours in India to be awarded with ISO 9002 in the year of 2000 ✓ ISO 9001:2015, ISO 22000:2005 certified company ✓ The Management Of Food Hazard Analysis (HACCP) system for the manufacture of synthetic
Slide 29: Technology and R&D strength
Technology and R&D strength Stringent checks and processes established at each stage from Raw Material testing to In-Process to Manufacturing processes to delivery of Finished Goods to ensure desired products Fully equipped & functional laboratory accredited by The Bureau of Indian Standards forms t
Slide 30: Growth Drivers
Growth Drivers Increasing Global Presence Maximum Utilization of Capacity 5 1 Maximize the capacity utilizations post Penetrating the untapped markets & increasing planned expansion with multiple customers in the wallet share of existing customers on board Customer Satisfaction Automated Manufacturi
Slide 31: High Entry Barriers
High Entry Barriers Technical Know-how Highly Regulated Markets • Technical know-how with years • Operate in a highly regulated markets of experience for continuous with multiple regulatory approvals development of new products & required colours • Undertaken various approvals backed by an appropria
Slide 32: Key Differentiators
Key Differentiators Products Renowned name in Food Colour Industry Regulatory Large Product Variants Highly Regulated Market Diversified Usages Consistency is a Key Diversified customers Long Customer Approval Cycle Long standing relationships with Large MNC as a customers Financial Strength R&D & P
Slide 33: Experienced Board of Directors
Experienced Board of Directors Mr. Bipin M. Manek Mr. Mihir B. Manek Mr. Vijay K. Atre Mrs. Pravina B. Manek Mrs. Vidhi H. Parekh Chairman & Managing Joint Managing Director Non-Executive Director Non-Executive Director Wholetime Director Director Mr. Niren D. Desai Mr. Prafulchandra A. Shah Mr. Rah
Slide 34: Strong Management Team
Strong Management Team Mr. Bipin M. Manek Mr. Mihir B. Manek Chairman & Managing Joint Managing Director Director Rich & Diversified experience of over 35 years in the field food Associated with the company for more than 15 years with colour manufacturing. Acknowledged as a thought leader in experti
Slide 35: Thank You
Thank You Company : Investor Relations Advisors : Vidhi Specialty Food Ingredients Limited Orient Capital (a division of Link Group) CIN: L24110MH1994PLC076156 Mr. Irfan Raeen : +91 9773778669 Mr. Mitesh Manek - CFO Irfan.raeen@linkintime.co.in mitesh.manek@vidhifoodcolour.com Mr. Rajesh Agrawal : +
Vidhi Specialty Food Ingredients — Q4 FY22 Earnings Presentation on 6ix