Heranba Industries Limited · NSE:HERANBA
Heranba Industries — Q2 FY2022 Earnings Presentation
28 slides from Heranba Industries's earnings presentation, November 2021
Slide 1: Investor Presentation November 2021
INVESTOR Presentation NOVEMBER 2021 heranba.co.in
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Heranba Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any se
Slide 3: Contents
CONTENTS COMPANY OVERVIEW 01 SLIDE 04 MANAGEMENT TEAM 02 SLIDE 11 QUARTERLY PERFORMANCE 03 SLIDE 14 FINANCIAL PERFORMANCE 04 SLIDE 18 STRATEGY FOR GROWTH 05 SLIDE 23
Slide 4: Company Overview
HERANBA AT GLANCE SLIDE 05 OUR JOURNEY SLIDE 06 VALUE CHAIN SLIDE 07 INTERMEDIARIES SLIDE 08 TECHNICALS SLIDE 09 FORMULATIONS SLIDE 10 COMPANY Overview
Slide 5: Heranba at a Glance
HERANBA at a Glance 3 60+ 650+ Manufacturing Facilities Countries Presence Employees (as of FY21) 77.70% 9400+ 35% Revenue from Institutional customers** Dealers across India Revenue from Exports as % of sales (as of H1 FY22) (as of H1 FY22) Approx. 25% 32.38% Revenue from Top 10 ROE# customers (as
Slide 6: Our Journey
Our Journey 2020 2021 2006 EXPORTS INITIAL PUBLIC OFFERING ▪ Exported Technicals and ▪ Listed on BSE & NSE BRANDED FORMULATIONS Formulations to more than 60 1996 ▪ Forward Integrated into Branded Formulations through its own countries in the international markets distribution network CMAC ▪ Started
Slide 7: Value Chain
Value Chain Value Chain Manufacturing Process ▪ HIL manufactures a wide range of products, and each product has its own unique manufacturing process ▪ The Company specializes in the manufacturing processes that mainly include chemical reactions of: Ammonolysis Hydrolysis Favorski Reaction Cyanation
Slide 8: Intermediaries
Intermediaries Intermediates Cypermethric Acid High CIS CMA Chloride (CMAC) High CIS CMAC High Trans CMA High Trans CMAC Bromobenzenes End-use Metaphenoxy Intermediates manufactured are for Company’s own captive Benzaldehyde (MPBD) consumption for manufacturing various Technicals and Formulations he
Slide 9: Technicals
Technicals Herbicides ▪ Glyphosate ▪ Metribuzin ▪ Clodinofop Insecticides ▪ Cypermethrin ▪ Deltamethrin ▪ Alpha Cypermethrin ▪ Acephate ▪ Lambda Cyhalothrin ▪ Permethrin Technicals ▪ Profenophos ▪ Temephos ▪ Theta Cypermethrin ▪ Thiamethoxam ▪ Imidacloprid Fungicides ▪ Tricyclazole ▪ Hexaconazole he
Slide 10: Formulations
Formulations Herbicides Revenue from Technical and Formulations ▪ Glory ▪ Glory 71 (₹ IN MILLION) ▪ Chakde ▪ Shera ▪ Heraquat ▪ Pendant ▪ Zinta ▪ Atria Insecticides ▪ Jayam ▪ Progress Plus ▪ Param ▪ Cypraplus ▪ Dyken ▪ Mantra Formulations ▪ Astron ▪ Signor 3,616.73 ▪ Prompt 3,032.80 ▪ Cypra 2,764.16
Slide 11: Management Team
ABOUT PROMOTERS SLIDE 12 LEADERSHIP TEAM SLIDE 13 MANAGEMENT Team
Slide 12: Experienced Promoters with Domain Knowledge
Experienced Promoters with Domain Knowledge Promoters having a cumulative experience of more than six decades Mr. Sadashiv K. Shetty Mr. Raghuram K. Shetty CHAIRMAN AND EXECUTIVE DIRECTOR MANAGING DIRECTOR ▪ Holds a bachelor’s (physics and chemistry) and master’s (chemistry) degree ▪ Holds a bachelo
Slide 13: Management Expertise
Management Expertise Mr. Rajkumar Bafna Mr. Rajesh Ohri Mr. Mopidevi V. Rao CHIEF FINANCIAL OFFICER VICE PRESIDENT - PROCUREMENT HEAD OF R&D DIVISION & BUSINESS DEVELOPMENT ▪ Holds a bachelor’s degree in ▪ Holds a bachelor’s degree in ▪ Holds a bachelor’s and master’s degree commerce from University
Slide 14: Quarterly Performance
FINANCIAL HIGHLIGHTS SLIDE 15 KEY RATIOS SLIDE 16 FINANCIAL SUMMARY SLIDE 17 QUARTERLY Performance
Slide 15: Q1FY22 Financial Highlights
Q1FY22 Financial Highlights Revenue from Operations at EBITDA (incl. other income) at ₹3534.35 million in Q2FY22 as ₹663.50 million in Q2FY22 as compared to ₹3491.79 million in compared to ₹565.78 million in Q2FY21 – growth of 1.22% Y-o-Y Q2FY21 – growth of 17.27% Y-o- and growth of 0.58% Q-o-Q. Y a
Slide 16: Quarterly Performance
Quarterly Performance Net Revenue from EBITDA(incl. Other Rev) PAT and PAT Margin Business Mix Operations and EBITDA Margin (₹ IN MILLION) (IN ₹ MILLION & %) (₹ IN MILLION & %) (IN %) 10.11% 8.89% 3534.35 3514.06 3491.79 13.48% 12.91% 19.66% 18.77% 30.08% 32.07% 10.80% 16.20% 23.19% 25.66% 565.78 69
Slide 17: Profit & Loss Summary (Quarterly)
Profit & Loss Summary (Quarterly) (₹ IN MILLION) PARTICULARS Q2FY21 Q1FY22 Q2FY22 Revenue from Operations 3491.79 3,514.06 3534.35 Other Income 7.53 42.73 51.7 Total Revenue 3499.32 3,556.79 3586.05 Total Expenses 2986.59 2913.69 2971.97 Profit Before Tax 512.73 643.10 614.08 Total Tax Expense 135.4
Slide 18: Financial Performance
KEY RATIOS SLIDE 19 FINANCIAL SUMMARY SLIDE 21 FINANCIAL Performance
Slide 19: Key Ratios
KEY Ratios Net Revenue from EBITDA(incl. Other Rev) PAT and PAT Margin Net Debt/(Cash) and Operations and EBITDA Margin Equity (₹ IN MILLION) (IN ₹ MILLION & %) (₹ IN MILLION & %) (₹ IN MILLION) (129.19) 13.19% 12.66% 12186.47 (345.01) 19.22% 18.74% 10.26% 10044.44 9513.74 15.33% 13.82% 398.85 7.51%
Slide 20: Business Mix
Business Mix Diversified customers base across geographies helps to mitigate risks and benefit from expected growth in agrochemical market Revenue from Operations Revenue from Exports (IN %) (% OF SALES) 39.48% 36.48% 38.79% Export Revenue Split: Technical and Formulations Export 34.99% 26.95% 47.66
Slide 21: Profit & Loss Summary
Profit & Loss Summary (₹ IN MILLION) PARTICULARS FY19 FY20 FY21 H1 FY22 Revenue from Operations 10,044.44 9,513.74 12,186.47 7,048.41 Other Income 73.94 165.32 70.30 94.43 Total Revenue 10,118.38 9,679.06 12,256.77 7,142.84 Total Expenses 8,897.18 8,390.64 10,173.92 5,885.66 Profit Before Tax 1,221.
Slide 22: Balance Sheet (1/2)
Balance Sheet (1/2) (₹ IN MILLION) PARTICULARS FY19 FY20 FY21 H1 FY22 Non-Current Assets Property, plant and equipment 511.39 954.41 1,334.35 1,388.88 Capital work-in-progress 159.70 377.72 96.95 209.76 Financial Assets: (i) Investments 0.24 37.31 100.98 20.86 (ii) Other Financial Assets 71 84.27 24
Slide 23: Balance Sheet (2/2)
Balance Sheet (2/2) (₹ IN MILLION) PARTICULARS FY19 FY20 FY21 H1 FY22 Equity and liabilities Equity Equity share capital 390.56 390.56 400.13 400.13 Other equity 1891.2 2817.93 4881.21 5808.32 Total Equity 2281.76 3208.49 5281.34 6208.45 Liabilities Non-Current Liabilities Financial Liabilities (i)
Slide 24: Cashflow Statement
Cashflow Statement (₹ IN MILLION) PARTICULARS FY19 FY20 FY21 H1 FY22 Cash Flow from Operations 877.02 542.11 603.98 -81.77 Cash Flow from Investing Activities -373.79 -520.39 -407.13 -305.24 Cash Flow from financing Activities -411.35 -199.43 619.01 -72.08 Net increase/ (decrease) in cash and cash e
Slide 25: Strategy for Growth
COMPETITIVE STRENGTHS SLIDE 26 BUSINESS STRATEGY SLIDE 27 Strategy for Growth
Slide 26: Competitive Strengths
Competitive Strengths Experienced Wide range of Diversified Product Promoters and products across Customer Base Registration Management Team value chain enabling global outreach Exports to more Integrated Wide Distribution than 60 countries Manufacturing Network Units heranba.co.in 26
Slide 27: Business Strategy
Business Strategy Well positioned to exploit opportunities offered by growth in Agrochemicals. Entering Highly Strengthening of Enhancing Enhancing Branded Regulated USA R&D Facility Production Formulation Formulations and and Europe Capabilities & Technicals in Public Health markets International M
Slide 28: Thank You
THANK YOU CONTACT US: Investor Relations Kanav Khanna kkhanna@christensenir.com Diwakar Pingle dpingle@christensenir.com CORPORATE OFFICE Heranba Industries Ltd. 101/102, Kanchanganga, Factor y Lane, Borivali (W), Mumbai – 400 092, India Tel : 91-22-2898 7912/14, 91-22-2898 2133/44, 91-22-2898 4439,