Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — FY2018 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, May 2018
Slide 1: Sharda Cropchem Limited Q4 & FY18 Results Update
SHARDA CROPCHEM LIMITED Q4 & FY18 RESULTS UPDATE May 2018
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY ❑ Q4 & FY18 Result Highlights ❑ Consolidated Financials ❑ About Us ❑ Business Model ❑ Business Strategy & Outlook 3
Slide 4: Q4 & FY18 Result: Key Highlights
Q4 & FY18 RESULT: KEY HIGHLIGHTS Q4 FY18 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN * PAT & PAT MARGIN 35.9% 34.7% 26.4% 25.7% 16.6% 14.7% 7,686.5 5,949.1 29.2% 25.6% 1,975.1 14.8% 1,572.7 986.8 1,132.5 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Revenue Gross Margin %
Slide 5: Q4 & FY18 Result: Key Highlights
Q4 & FY18 RESULT: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q4 FY18 Revenues increased by 29.2% YoY from Rs. 5,949.1 mn to Rs.7,686.5 mn. • Region-wise growth YoY– Europe: 28.2%, NAFTA: 34.7%, LATAM: 11.5%, ROW: 31.7% • Q4 FY18 gross profit increased by 24.8% YoY from Rs.2,137.4 mn to Rs.2,667.2 mn. Gross
Slide 6: Q4 & FY18 Result: Division Wise Highlights
Q4 & FY18 RESULT: DIVISION WISE HIGHLIGHTS In Rs Mn Q4 & FY18 YoY ANALYSIS: REVENUE BREAKUP 17,134 7,686 43.6% 12.4% 2,253 698 13,992 5,949 2,004 486 27.9% 6,988 24.1% 14,881 5,463 11,988 Q4 FY17 Q4 FY18 FY17 FY18 Agrochemicals Non-Agrochemicals Agrochemicals Non-Agrochemicals Division Revenue Share
Slide 7: Q4 & FY18 Result: Agrochemical Business
Q4 & FY18 RESULT: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP : REGIONWISE REVENUE BREAKUP : FORMULATIONS VS. AIs 5,463 6,988 11,988 14,881 5,463 6,988 11,988 14,881 9.4% 9.8% 10.4% 8.6% 8.0% 9.3% 9.4% 13.1% 7.4% 6.9% 12.7% 10.8% 29.3% 31.4% 26.5% 33.6% 92.0% 90.7% 90.6% 86.9% 53.9% 52.0% 50.4% 4
Slide 8: FY18 Result: Agrochemical Business
FY18 RESULT: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 23% 20% FY17 49% FY18 54% 26% 29% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues have grown by 38.4% YoY in FY18 to Rs 8,048.1 mn • Fungicides revenues have gro
Slide 9: Q4 & FY18 Result: Non-Agrochemical Business
Q4 & FY18 RESULT: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 486 698 2,004 2,253 18.1% 15.5% 18.4% 18.8% 5.6% 7.0% 12.6% 18.8% 30.4% 37.1% 37.6% 35.4% 48.5% 31.7% 37.0% 27.4% Q4 FY17 Q4 FY18 FY17 FY18 Europe NAFTA LATAM RoW • Revenues in Europe region have risen by 120% during Q4
Slide 10: FY18 Result: Working Capital Analysis
FY18 RESULT: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 169 167 150 153 87 58 FY17 FY18 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS FY17: 77 FY18: 101 * Calculated on average inventory, receivables, creditors 10
Slide 11: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY18 Q4 FY17 YoY % FY18 FY17 YoY % Revenue from Operations 7,686.5 5,949.1 29.2% 17,133.9 13,992.3 22.5% COGS 5,019.3 3,811.6 31.7% 11,437.4 8,973.7 27.5% Gross Profit 2,667.2 2,137.4 24.8% 5,696.4 5,018.6 13.5% Gross Margin 34.7% 35.9%
Slide 12: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn FY18 FY17 Particulars in Rs. Mn FY18 FY17 EQUITY AND LIABILITIES ASSETS Shareholder's Funds Non-Current Assets Property, Plant and Equipment 106.8 9.6 Equity Share Capital 902.2 902.2 Capital work in progress 0.0 13.3 Other Equity 10,446.0 8,696.2 Goo
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW ▪ Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registrat
Slide 14: About Us: Our Presence
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Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 21 % CAGR: 22 % CAGR: 14 % 17,134 19.6% 16.3% 22.2% 22.3% 20.2% 14.1% 11.6% 14.3% 13.6% 11.1% 13,992 12,186 10,611 3,124 3,454 1,904 1,908 7,904 2,714 1,751 1,727 1,111 1,230 1,550 FY14 FY15 FY16 FY17 F
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Key Institutional Investors – 31st March 2018 % Holding Market Data As on 8th May 2018 Market capitalization (Rs Mn) 36,007.8 DSP Blackrock Investment Manager 6.52% Price (Rs.) 399.2 HDFC MF 6.12% No. of shares outstanding (Mn) 90.2 Pinebridge 4.28% Face Value (Rs.)
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK ▪ Leverage market presence and execution capabilities. Forward Integration - ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider. Build own Sales Force ▪ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India. E
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Conrad Fernandes Ms. Pushpa Mani / Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: cfernandes@shardaintl.com Email: pushpa.mani@dickensonir.com / nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9911684123 / 9819289131