Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — Q4 & FY20 Earnings Presentation
30 slides from Nath Bio-genes (india)'s earnings presentation, Jun 15, 2020
Slide 1: Nath Bio-Genes (India) Ltd. cover letter to exchanges
oOé . Nath Bio-Genes (1) Ltd. (CIN L01110MH1993PLC072842) 15% June 2020 The Manager-Listing The Manager-Listing BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Bandra (E) Mumbai-40000 1 Mumbai-400051 BSE Code-537291 NSE
Slide 2: Nath Bio Genes (India) Limited Earnings Presentation Q4 & FY20
Nath Bio Genes (India) Limited Earnings Presentation Q4 & FY20
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 4: Highest Ever Revenue despite a Challenging Environment
Highest Ever Revenue despite a Challenging Environment Strong Financial Performance… (INR Mn except as stated) FY20 FY19 YoY % o FY20 revenue growth of 21%; highest ever top Revenue 2,799 2,309 21% line achieved at INR 280 crores EBITDA 547 432 26% o Gross Margins maintained at 54.9% PAT 505 384 31%
Slide 5: FY20 Guidance met; Moving towards Higher Trajectory
FY20 Guidance met; Moving towards Higher Trajectory FY20 Guidance FY20 Actuals Revenue Guidance FY20 INR 2,800-3,100 Mn 2,799 Gross Margin 50%+ 54.9% Long Term Debt NIL NIL Moving Towards a Higher Growth Trajectory Revenue Guidance FY21 20%+ Gross Margin 50%+ 4
Slide 6: Driven by Superior R&D; Highly Ranked Cotton Seeds Launched
Driven by Superior R&D; Highly Ranked Cotton Seeds Launched o Multi Year Process o Involves extensive testing by Indian Council of Agricultural Research o Sanket (NBC 1111) Product Rankings Hybrid Cotton Rank (for Yield o High Yield – 39% higher than BGII BG cotton Seed Year Zone Kg/Ha) hybrid and 2
Slide 7: Circumventing a Global Pandemic – Farmers First!
Circumventing a Global Pandemic – Farmers First! Timely Actions; Dedicated Teams Successfully avoided disruption of processing Field Operations Resumed & logistics on account of COVID Agri categorised as an essential commodity; Received 92% of targeted seed production Teams immediately mobilised Sec
Slide 8: Sector and Company Outlook remains Strong
Sector and Company Outlook remains Strong Agri is Surviving Corona o Sector was exempted from lockdown o Multiple relief packages announced by GOI in early April o Loan moratorium to positively impact Agri sector borrowers o Normal Monsoons expected by IMD Nath is Gaining Market Share o Nath has gai
Slide 9: A journey of Thousand Miles Begins with a Single Step…
A journey of Thousand Miles Begins with a Single Step… Cotton (Mn Pkts) Paddy (Quintals) Vegetables (Quintals) Win Chi Win (Litres) FY19 0.8 mn FY19 56K FY19 2.7K FY19 43K FY23E 4.5 mn FY23E 90K FY23E 10K FY23E 125K 5 Year CAGR 62% 12% 27% 27% NBIL’s Transformational Journey Market Leading Strong Ba
Slide 10: Visionary Leadership; Attracting the Best Talent
Visionary Leadership; Attracting the Best Talent Mr. N Kagliwal Mr. S Kagliwal Nath Promoters are committed to Chairman MD sustainable growth and are working towards making Nath one of the best seeds company globally. Leadership Team Nath leadership team shares the same passion as its promoters. The
Slide 11: Management Focussed on Improving Efficiencies…
Management Focussed on Improving Efficiencies… Maintaining high Giving lesser Ramping up inventory for advances as products collections from achieving higher gain prominence in Receivables sales the market 10
Slide 12: Achieved Targets…
Achieved Targets… On Track to Achieving Guidance Key Revenue FY20 Guidance FY20 Actual Contributor 1,166,566 Cotton 1,200,000 packets packets* 74,116 Paddy 60,000 Quintals Quintals 3,500 4,075 Vegetables Quintals Quintals 55,000 51,293 Win Chi Win Litres Litres *Net of sales return, which stood at 1
Slide 13: Superior Products Drive Strong Financial Performance – FY20
Superior Products Drive Strong Financial Performance – FY20 Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) PAT (INR Mn) PAT Margin (%) EPS (INR/Share) 31% 505 31% 26.6 20.2 384 FY19 FY20 FY19 FY20 12
Slide 14: Superior Products Drive Strong Financial Performance – Q4FY20
Superior Products Drive Strong Financial Performance – Q4FY20 Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) 15% 300 Bps PAT (INR Mn) PAT Margin (%) EPS (INR/Share) 210 Bps 39% 39% 76 4.0 2.9 55 Q4FY19 Q4FY20 Q4FY19 Q4FY20 13
Slide 15: Summary and Focus Areas
Summary and Focus Areas Build on fast growing Vegetables and Win Chi Win Segments Enhance product lines in Cotton to meet changing customer requirements Improving the Distribution Network to reach Northern and Southern Indian States 14
Slide 16: Increasing Focus on Marketing
Increasing Focus on Marketing • Three vertical being enhanced and strengthened. • D4 concept and distribution network in progress. Identified 200+ PAN India distributors to be personally serviced by individual officers from Cotton NGBL sales team; focusing on increasing presence in untouched areas o
Slide 17: Cotton – Highly Ranked Products
Cotton – Highly Ranked Products Operating Highlights Key States: Maharashtra, Gujarat, Karnataka, Andhra Pradesh, Telangana, MP Other geographies being targeted: Orissa, North India Top Products (ranked #1-3): NBC 102, NBC 1022, NBC 1111, NBC 1103, NBC 10 Product Pipeline Volume Guidance Sales Proje
Slide 18: Paddy – High Yielding Products; Robust Distribution
Paddy – High Yielding Products; Robust Distribution Operating Highlights Key States: Bihar, Jharkhand ,Uttar Pradesh Top Products: Loknath, Gorakhnath, Super Duper, Tehelka, Kabir, Gazab, Ford New Launches: Khushi, Shwetha-43, Nath Mamra, Nath 2020, Golden 72, Sarvodya-45 Product Pipeline Volume Gui
Slide 19: Vegetables – Rabi Sowing at an All time High
Vegetables – Rabi Sowing at an All time High Strategic Initiatives • Rabi crop sowing at an all time high: 30% increase YoY(%) • NBIL to focus on: Okra, Tomato, Chilli, Brinjal, Gourds, Cucumber – Has high yielding product varieties • in each with good acceptability amongst Indian farmers • Constitu
Slide 20: Win-Chi-Win – Benefitting from Shift to Organic Farming
Win-Chi-Win – Benefitting from Shift to Organic Farming Strategic Initiatives • Constituted a new vertical for WCW, highest margin business • Introduced separate kit for 1 acre land as a tiffin dose - New SKUs: 500, 1,000 & 4,000 ml • New product testing on Biopesticide & Bio antivirus with Soil con
Slide 21: Segmental Revenue Contribution
Segmental Revenue Contribution FY15 Revenue Contribution FY20 Revenue Contribution 20
Slide 22: Q4 & FY20 At A Glance
Q4 & FY20 At A Glance Particulars % Change % Change FY20 FY19 Q4FY20 Q4FY19 (INR Mn) (YoY) (YoY) Total Revenue 2798.9 2309.0 21.2% 601.5 523.0 15.0% Gross Profit 1536.3 1252.7 22.6% 293.1 239.0 22.6% Gross Margin (%) 54.9% 54.3% 48.7% 45.7% EBITDA 547 432 26.6% 67.3 58.0 16.0% EBITDA Margin (%) 19.5
Slide 23: Stable Balance Sheet Despite Growth
Stable Balance Sheet Despite Growth Assets (INR Mn) FY20 FY19 Liabilities (INR Mn) FY20 FY19 Fixed Assets 2,460.3 2,317.1 Share Capital 190 190 Financial Assets 52.2 51.7 Reserves & Surplus 5,386.1 4,885.8 Oth Non-current Assets 15.4 19.8 Long-Term Borrowings 3.0 5.0 Inventories 2,043.1 1,553.5 Long
Slide 24: Appendix
Nath Bio Genes (India) Limited Appendix
Slide 25: R&D Focused Technologies to Boost Breeding
..R&D Focused Technologies to Boost Breeding.. Developing new product takes 6-8 years: Conventional Approach Commercial Development Upto 2-3 Upto 3-4 years years Variety Application Development Oriented Research Upto 2-3 Upto 1-2 years years First Crossing Pre-Breeding At NBIL, We are Re-Engineering
Slide 26: Revamped Marketing: Direct Reach Substantially Enhanced
Revamped Marketing: Direct Reach Substantially Enhanced 16 131 2000+ Business Centres Territories Distributors Improving Direct Increase contract Add Nath Farm Reach farmers Advisors Current direct 1,50,000 contract 400 Nath Farm retailers 7,000+ farmers Advisors 20,000+ Direct Each Ma
Slide 27: Exports: A Huge Opportunity Unfolding
Exports: A Huge Opportunity Unfolding o Exploring opportunities in countries with similar agronomical conditions o Testing completed; Trial marketing commenced o NBL team spent significant time to conduct Multi Location Trials, Products Being Export Destination jointly with Govt. of Philippines,
Slide 28: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Zero Long Term Debt Return Ratios Improving QIP funds used to repay full debt in Feb’18 On back of higher profitability Land Bank worth INR 200 crores Working Capital Improving To be monetised to fund future Capex requirement Receivable Days down
Slide 29: Outreach
Outreach (ML Heap orice i) CorPorate orrice ME UAisionine orice f= PRODUCTION CENTRES Tr MARKETING ceNTRES RESEARCH AND EVALUATION CENTRES EB te ee Sern inc Counrmies be ati citi enna:
Slide 30: Thank You
Thank You For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Radha Agarwalla radha@goIndiaAdvisors.com M:+91 8981938289 29
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