Chambal Fertilisers & Chemicals Ltd. · NSE:CHAMBLFERT
Chambal Fertilisers & Chemicals — Q3 FY2021 Earnings Presentation
32 slides from Chambal Fertilisers & Chemicals's earnings presentation, Feb 4, 2021
Slide 1: Exchange filing cover letter
CHAMBAL FERTILISERS AND CHEMICALS LIMITED February 04, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, 25th Floor, Dalal Street Bandra Kurla Complex, Mumbai – 400 001 Bandra (E) Mumbai – 400 051 Dear Sir, Pursuant to Regulation 30 of
Slide 2: Chambal Fertilisers and Chemicals Limited Investor presentation
Chambal Fertilisers and Chemicals Limited Investor presentation December 2020 Page 1 of 31
Slide 3: Disclaimer
Disclaimer The following slides may contain “forward looking statements” including, statements relating to the implementation of strategic initiatives by Chambal Fertilisers and Chemicals Limited (“CFCL” or “Chambal” or “Company”) and future business developments and economic performance. While
Slide 4: Content
Content Fertiliser Growth 1 Sector 3 Runway Company Overview Page 3 of 31
Slide 5: Fertiliser Sector
Fertiliser Sector Page 4 of 31
Slide 6: Indian fertiliser industry – an overview
Indian fertiliser industry – an overview The Indian fertiliser market was worth INR 1,40,000 crore in 2019 – expected to grow at 3% CAGR over the next 3 years Nutrient usage in India compared to other countries is low at 145 kg/ha Plant nutrients used in India N ‐ Nitrogenous fertiliser ‐ Nitrogen i
Slide 7: Indigenous versus imports
Indigenous versus imports Imported vs domestic mix for key fertilisers in FY20 Urea largely sourced domestically. However, high Domestic Imports demand necessitates imports, which account for 54% 8% 100% ~27% of total volumes 27% 54% of DAP is imported – Phosphate Rock (high grade, which is used
Slide 8: Urea production vs imports at elevated levels
Urea production vs imports at elevated levels State wise sales volume breakup 2019‐20 in ‘000 MT Production Imports State Imports Indigenous Andhra Pradesh 759 768 Bihar 484 1,792 24.2 24.0 23.9 24.5 CG 287 510 Haryana 420 1,610 J&K 33 120 Karnataka 557 945 Maharashtra 555 1,789 9.1 MP 945 1,962 7.6
Slide 9: Progressive Government policies
Progressive Government policies Thrust on Towards strengthening enhancing the input side: Direct productivity Benefit Transfer (DBT) (in Towards and use of planning stage): Potential to strengthening quality be a game changer for the the output side: inputs; industry. – freeing Rising MSPs – stimula
Slide 10: CFCL – Overview
CFCL – Overview Page 9 of 31
Slide 11: CFCL – Who we are
CFCL – Who we are Selling a portfolio of products valuing over Rs. 12,000 crore annually Led by a highly experienced management team The largest single site urea fertiliser manufacturer in India New Urea Plant (Gadepan‐III) one of the most energy efficient urea plants in the world Sourcing arrangeme
Slide 12: Chambal value proposition
Chambal value proposition Quality of Management Scale of manufacturing Value addition operations Market potential Distribution and reach Emphasis on sustainability Intense focus on cost and environmental leadership protection Page 11 of 31
Slide 13: Scale of manufacturing operations
Scale of manufacturing operations Three plants of the Company located at Gadepan in Kota district of Rajasthan Annual production of more than ~3.3 million MT of urea Company accounts for over 13% of the total urea produced in the country Gadepan ‐ I Ammonia Plant with a capacity to produce 1,8
Slide 14: Existing Sales and Marketing Network
Existing Sales and Marketing Network Unparalleled reach Deeply entrenched in 9 states and 1 dealer and distribution network union territory and brand Jammu REGIONAL across North, Western and association built over Chandigarh Karnal OFFICES Bathinda Central India. decades Hisar Agra Jaipur Products s
Slide 15: Strong Market Reach in existing territory
Strong Market Reach in existing territory CFCL enjoys long standing dealer and retailer partnerships SALES PATTERN 2019‐20 developed over two decades MARKET SHARE STATE UREA DAP MOP CFCL’s brand Uttam is the preferred brand amongst farmers in Punjab, Haryana, Rajasthan, Madhya Pradesh and Jammu & Ka
Slide 16: Large proportion of Company's marketing territory is irrigated
Large proportion of Company’s marketing territory is irrigated Bihar Chhattisgarh Haryana J&K 7.5 5.7 6.5 1.16 1.8 0.5 72% 31% 92% 43% 5.4 6 Madhya Pradesh Punjab Rajasthan Uttar Pradesh 25 7.8 25 26.9 11.4 10.6 46% 99% 42% 80% 21.6 7.7 Gross Cultivated Area mha Gross Irrigated Area mha (%) Irrigate
Slide 17: P&L overview (Standalone) - Continued Operations
P&L overview (Standalone) ‐ Continued Operations Total Income (INR Crore)* EBITDA before exceptional items (INR Crore) Margin (%) 12,385 16.8% 10,236 13.2% 8,925 12.1% 12.3% 2,082 7,609 7,618 9.5% 1,354 846 924 933 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 • Revenue increase/decrease is main
Slide 18: Equity and Borrowings (Standalone)
Equity and Borrowings (Standalone) Total Shareholder Funds (INR crore) Equity Reserves Total 3,916 3,240 3,500 2,898 2,824 2,535 2,482 2,206 2,119 1,790 416 416 416 416 416 FY16 FY17 FY18 FY19 FY20 Debt (INR crore) – Continued Operations FY16 FY17 FY18 FY19 FY20 Long Term 1,031 1,075 3,157 4,383 4,6
Slide 19: Fixed Assets, Receivables & Capital Employed (Standalone)
Fixed Assets, Receivables & Capital Employed (Standalone)- Continued Operations Fixed Assets (INR crore) Trade Receivables (INR crore) 5,563 6,955 6,786 4,823 5,298 3,837 3,023 2,516 2,806 2,342 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Capital Employed (INR crore) 13,530 11,785 8,507 7,012
Slide 20: Financials Ratios (Standalone) – Continued Operations
Financials Ratios (Standalone) – Continued Operations RoCE (%) ‐ Before Exceptional Items 12.9% 13.3% ROE (%) 22.5% 10.8% 10.2% 10.5% 17.1% 16.4% 16.8% ‐2.1% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20* Total Debt to Equity (times) Dividend Per Share Dividend Payout (%) 2.6 21.9% 22.8% 2.5 4.0
Slide 21: Long Term Debt repayment schedule
Long Term Debt repayment schedule Year USD(Million) 2019‐20 56 2020‐21 93 2021‐22 106 2022‐23 106 2023‐24 106 2024‐25 85 2025‐26 81 2026‐27 32 2027‐28 16 Total 680 Page 20 of 31
Slide 22: Q3 and 9 Months FY21 Operating and Financial Performance
Q3 and 9 Months FY21 Operating and Financial Performance Page 21 of 31
Slide 23: Urea production and sales: Q3 and 9 Months (FY20 vs FY21)
Urea production and sales : Q3 and 9 Months (FY20 vs FY 21) Gadepan I &II Plants 17.05 15.94 14.62 14.93 • The plants 5.47 5.47 5.42 5.59 operated at opitimal capacity. • Combined Energy Q3 FY20 Q3 FY21 9 Months FY20 9 Months FY21 of all the three Urea Production Urea Sales plants for 9 month period
Slide 24: Non urea fertiliser sales volumes continue to grow
Non urea fertiliser sales volumes continue to grow : Q3 and 9 Months (FY20 vs FY21) DAP Sales MOP Sales NPK Sales 12.63 • In line with CFCL’s strategy of enhancing thrust on non urea fertilisers, sales of DAP, NPK and MOP 8.73 fertilisers grew strongly in the period under review • Sales of P&K ferti
Slide 25: Financial overview Q3 and 9 Months (FY20 vs FY21) - Standalone
Financial overview Q3 and 9 Months (FY20 vs FY21)‐ Standalone Revenue (INR Crore) EBITDA (INR crore) Margin % Urea Non Urea 19.9% 17.7% 3,725 5,231 2226 6,512 20.4% 5,847 18.0% 1836 1,578 1,829 690 787 2,254 2,044 Q3 20 Q3 21 9 Months FY 20 9 Months FY 21 Q3 FY20 Q3 FY21 9 Months FY20 9 Months FY21
Slide 26: Financial overview Q3 and 9 Months (FY20 vs FY21) - Standalone
Financial overview Q3 and 9 Months (FY20 vs FY21)‐ Standalone PBT ( INR crore)* Margin % 15.9% PAT ( INR crore)* Margin % 10.4% 11.9% 7.4% 1781 17.2% 13.2% 1231 1160 11.1% 663 7.4% 772 507 430 285 Q3 20 Q3 21 9 Months FY 20 9 Months FY 21 * Before exceptional items Q3 20 Q3 21 9 Months FY 20 9 Month
Slide 27: Balance sheet (Q3FY20 vs Q3FY21) - Standalone
Balance sheet (Q3FY20 vs Q3FY21)‐ Standalone Total Shareholder Fund (INR crore) Total Debt (INR crore) 5,104 Short Term Long Term Total 7,513 7,415 4,077 4,612 4,184 2,901 3,231 9 Months FY 20 9 Months FY 21 9 Months FY 20 9 Months FY 21 Trade Receivables (INR crore) Capital Employed (INR crore) Mkt
Slide 28: Growth runway
Growth runway Page 27 of 31
Slide 29: Growth Pillars
Growth Pillars Non urea Non Urea fertiliser fertiliser fertiliser Page 28 of 31
Slide 30: Growth Pillars
Growth Pillars NON UREA FERTILISER NON FERTILISER Improve width – Deepening Micro‐nutrient deficiency in various soils across the cover wider area: penetration; country translates to opportunity in this space Enter adjacent areas improve average and new markets sales per dealer Crop Protection Chemi
Slide 31: Expansion of Sales and Marketing Network: 2021-2022
Expansion of Sales and Marketing Network : 2021‐2022 Products supplied Aiming to be PAN include Urea, DAP, India player by NPKs, MOP, crop REGIONAL expanding to high protection potential states chemicals and OFFICES specialty nutrients Target Marketing Kolkata network Ahmedabad comprises of Hyderaba
Slide 32: Contact Us
Contact Us For queries and requests, please contact: Abhay Baijal, CFO Gavin Desa / Rishab Barar Chambal Fertilisers and Chemicals Limited CDR India Tel: +91 11 4169 7900 Tel: +91 22 6645 1237 / 1235 Email: abhay.baijal@chambal.in Email: gavin@cdr‐india.com Company Website : www.chambalfertilisers.c
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