Primo Chemicals Limited · NSE:PRIMO
Primo Chemicals — Punjab Alkalies & Chemicals — Investor Presentation (August 2022)
33 slides from Primo Chemicals's investor presentation, August 2022
Slide 1: BSE filing cover letter for investor presentation
ISO 14001 REGISTERED Ee pool Punjab Alkalies & Chemicals Limited Regd. Office: S.C.O.125-127, Sector 17-B, Chandigarh -160017 INDIA) }@g t a sat DN Ctfin . ., TheNether'ands a. Phone : 0172-4072508-569, E-mail : info@punjabalkalies.com Fax: 0172-2704797 I90 _.. REGISTERED CIN: L24119CH1975PLC003607,
Slide 2: Punjab Alkalies & Chemicals Ltd. Investor Presentation August 2022
HYDROGEN GAS CAUSTIC SODA LYE LIQUID CHLORINE SODIUM HYPOCHLORITE HYDROCHLORIC ACID Punjab Alkalies & Chemicals Ltd. (BSE: 506852) Investor Presentation August 2022 www.punjabalkalies.com
Slide 3: Agenda
Agenda Punjab Alkalies & Chemicals Limited • Q1 FY2023 Performance Highlights • Investment Case • PACL Overview • FY2022 Performance Highlights 2 Page 2 of 30 2
Slide 4: Q1 FY2023 Performance Highlights
Punjab Alkalies & Chemicals Limited Q1 FY2023 Performance Highlights
Slide 5: Q1 FY23 - Performance Highlights
Q1 FY23 - Performance Highlights Punjab Alkalies & Chemicals Limited Revenue from Operations Rs. 1,863 Mn 147% Y-o-Y • Exceptional performance in Q1 FY23, with Revenue of Rs. 1,863 Mn, up by 147% EBITDA • EBITDA of Rs. 701 Mn, up by 294% with margins of 36.6% Rs. 701 Mn • Five-fold increase in Net P
Slide 6: Management Perspective
Management Perspective Punjab Alkalies & Chemicals Limited Commenting on the Performance, Mr. Naveen Chopra, Managing Director, said: “I am delighted to report that the PACL has carried its strong momentum from last quarter and registered a strong start to the new fiscal year, delivering exceptional
Slide 7: Operational KPI's
Operational KPI’s Punjab Alkalies & Chemicals Limited (in Rupees Million) Sales Volumes (MT) Utilised Capacity (TPA) Total Capacity (TPA) 31% YOY 35,000 31,710 32,477 32,721 30,466 24,276 25,040 24,750 24,750 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 (Consolidated Finan
Slide 8: Quarter Performance Trends
Quarter Performance Trends Punjab Alkalies & Chemicals Limited (in Rupees Million) Revenue from Operations EBITDA and Margins 147% YOY 1,863 294%YOY 1,611 701 1,307 616 593 753 870 178 45.4% 35.8% 36.6% 22.8% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 (374) Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 PBT and Margins
Slide 9: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary Punjab Alkalies & Chemicals Limited Q1 Y-o-Y Q4 Q-o-Q (in Rs. Mn) FY2023 FY2022 Growth (%) FY2022 Growth (%) Revenue from Operations 1,863 753 147% 1,611 15.6% Other Income 51 28 86% 49 5.5% Total Income 1,914 780 145.3% 1,659 15.3% EBITDA 701 178 294% 593
Slide 10: Investment Case
Punjab Alkalies & Chemicals Limited Investment Case PACL to Deliver Accelerated Growth…
Slide 11: Strategic Growth Priorities
1. Strategic Growth Priorities Punjab Alkalies & Chemicals Limited Strategic Roadmap To Double The Revenue and Profitability in Next Two Years FY2022 FY2023 FY2024 Favourable Industry Cost Optimization and Enhanced Higher Caustic Soda Production from Dynamics, Significant Profitability Newly Launche
Slide 12: Recent Expansion To Drive Incremental Revenue from FY23
2. Recent Expansion To Drive Incremental Revenue from FY23 Punjab Alkalies & Chemicals Limited Expanded Caustic Soda Capacity and Launching New Products Caustic Soda manufacturing capacity enhanced to 500 MT/Day from 300 MT/Day In addition, commissioning Flaker and Stable Bleaching Powder plant Opti
Slide 13: Government Disinvestment
3. Government Disinvestment Punjab Alkalies & Chemicals Limited PACL was divested by Punjab State Industrial Development Corporation Ltd in Sept 2020 through an open offer PACL now operating with following competitive and strategic advantages Greater efficiency with elimination of bureaucratic syste
Slide 14: PACL Overview
Punjab Alkalies & Chemicals Limited PACL Overview
Slide 15: PACL Overview
PACL Overview Punjab Alkalies & Chemicals Limited Chemical 340+ Rs. 4,692 Mn 1975 Manufacturer 500 TPD Incorporated Installed Capacity Sector (Two Manufacturing Plants) Employees FY22 Revenue Experience of over four decades in Diversified clientele base across India with chemicals manufacturing capa
Slide 16: Journey So Far
Journey So Far Punjab Alkalies & Chemicals Limited 100 TPD grassroot plant based on the HOECHST - UHDE Membrane Cell Technology was commissioned (now Unit- Commenced operations Installed capacity of II) Installed capacity of Conversion of Existing 200 Manufacturing capacity with installed capacity o
Slide 17: Important Turnaround Initiatives by new Management
Important Turnaround Initiatives by new Management Punjab Alkalies & Chemicals Limited Manufacturing Capacity Cost Optimization Further plans for cost Capital Expenditure New Products to be • Increase in Installed Measures rationalization and Plans Launched Capacity from 300 TPD • Streamlining of ex
Slide 18: Acquisition of Flow Tech Chemicals
Acquisition of Flow Tech Chemicals Punjab Alkalies & Chemicals Limited Board and Shareholder Transaction Details Rationale Approval PACL has completed purchase of 49% stake in Flow Tech Approval received to • Will result in higher chlorine Chemicals Private Limited, a acquire upto 100% stake consump
Slide 19: PACL Strategic Advantages
PACL Strategic Advantages Punjab Alkalies & Chemicals Limited Capacity Expansion Added additional Strategic Location capacity of 200 TPD • Closer proximity to during FY22 and in Bhakra Nangal Dam, process of further Inhouse Chlorine provides operational efficiency Consumption uninterrupted power imp
Slide 20: Competitive Strengths: Efficient Manufacturing Process
Competitive Strengths: Efficient Manufacturing Process Punjab Alkalies & Chemicals Limited • One of the few Caustic soda manufacturer having substantial downstream utilization of Chlorine • Ensuring higher operational efficiency and better capacity utilization and providing competitive advantage • E
Slide 21: Manufacturing Units and Production Excellence
Manufacturing Units and Production Excellence Punjab Alkalies & Chemicals Limited Conferred with National & State Awards In recognition of its stellar performance and efforts in the field of Energy Conservation, Safety & Productivity Two manufacturing units: Location: Ropar, Punjab (India) Combined
Slide 22: Product And Usage
Product And Usage Punjab Alkalies & Chemicals Limited CAUSTIC SODA LYE LIQUID CHLORINE HYDROCHLORIC SODIUM HYDROGEN GAS ACID HYPOCHLORITE • Paper & Paper Pulp • Water Treatment Plants • Water Demineralization • Hydrogination of • Soap & Detergents • Textile Bleaching Vegetable Oils • Paper Manufactu
Slide 23: Board of Directors: Diversified Experience
Board of Directors: Diversified Experience Punjab Alkalies & Chemicals Limited Mr. Sukhbir Singh Dahiya Mr. Naveen Chopra (Chairman) (Managing Director) An industrialist though leader with experience of over 31 years Extensive experience in chemical industry spanning over 30 years. including 16 year
Slide 24: Industry Overview and Key Characteristics
Industry Overview and Key Characteristics Punjab Alkalies & Chemicals Limited Caustic Soda demand is expected to continue, and prices may stabilize at current levels amidst the ongoing rising global energy price environment Global Market Indian Market Business Cycle & Price & Raw Outlook Growth Mate
Slide 25: FY2022 Performance Highlights
Punjab Alkalies & Chemicals Limited FY2022 Performance Highlights
Slide 26: FY22 - Performance Highlights
FY22 - Performance Highlights Punjab Alkalies & Chemicals Limited Total Income EBITDA Net Profit Cash flow from Return on Capital Operations Employed 4,692 Mn Rs. 1,018 Mn Rs. 567 Mn Rs. Rs. 702 Mn 38.8 % 138 % Y-o-Y 589 % Y-o-Y 67% Y-o-Y Margins : 21.7 % Margins : 12.1% 33% Y-o-Y Operational Perfor
Slide 27: Operational KPI's
Operational KPI’s Punjab Alkalies & Chemicals Limited (in Rupees Million) Sales Volumes (MT) Utilised Capacity (TPA) Capacity Utilization (%) 1,16,001 117% 1,10,168 90,645 92% 85,839 84,243 85% 81,441 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 (Consolidated Financials) Note: FY22 installed capacit
Slide 28: Annual Performance Trends – Last 5 Years
Annual Performance Trends – Last 5 Years Punjab Alkalies & Chemicals Limited (in Rupees Million) Revenue from Operations EBITDA and Margins 7.3% CAGR 29.9% CAGR 4,541 1,018 3,757 832 3,420 2,904 2,263 358 365 427 21.9% 21.7% 15.2% 10.3% 11.7% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PBT and
Slide 29: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle Punjab Alkalies & Chemicals Limited (In Millions) FY20 FY21 FY22 Long Term Debt - 4 531 Short Term Debt 316 2 81 Total Debt 316 6 612 Less: Cash & Cash 124 80 252 Equivalents Net Debt 193 (74) 361 Total Equity 705 966 2,763 Total Debt/Equity 0.45x 0.01x 0.2
Slide 30: Key Ratios
Key Ratios Punjab Alkalies & Chemicals Limited Return on Capital Return on Equity (%) CFO / EBITDA (%) Employed (%) 120.3% 123.5% 109.6% 82.4% 74.7% 69.0% 65.4% 39.4% 38.8% 25.5% 30.4% 23.6% 13.0% 9.9% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 (12.8)% FY18 FY19 FY20 FY21 FY22 (Consolidated F
Slide 31: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary Punjab Alkalies & Chemicals Limited Q4 Y-o-Y Q3 Q-o-Q FY Y-o-Y (in Rs. Mn) FY2022 FY2021 Growth (%) FY2022 Growth (%) FY2022 FY2021 Growth (%) Revenue from Operations 1,611 756 113% 1,307 23.2% 4,541 2,263 101% Other Income 49 400 (88)% 51 (4.6)% 152 551 (7
Slide 32: Disclaimer and Contact Information
Disclaimer and Contact Information Punjab Alkalies & Chemicals Limited (in Rupees Million) This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating
Slide 33: Thank You
HYDROGEN GAS CAUSTIC SODA LYE Punjab Alkalies & Chemicals Limited LIQUID CHLORINE SODIUM HYPOCHLORITE HYDROCHLORIC ACID THANK YOU HEAD OFFICE S.C.O. 125-127, Sector 17-B, Chandigarh – 160 017. (INDIA) P: +91-172-4072543/4072546 E: enquiry@punjabalkalies.com www.punjabalkalies.com 32
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