Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — Q2 FY2024 Earnings Presentation
48 slides from Sumitomo Chemical India's earnings presentation, Oct 28, 2023
Slide 1: Cover letter to stock exchanges
28th October, 2023 To, BSE Limited, The National Stock Exchange of Listing Department, India Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra East, Mumbai - 400 051 Dear Sirs, Sub: Investor Presentation on Financial Results for th
Slide 2: Investor Presentation October 2023
Evolving Responsibly Sumitomo Chemical India Ltd. Investor Presentation October 2023 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Financial Performance and Key Highlights
Financial Performance and Key Highlights 3 Innovate Nurture Grow www.sumichem.co.in
Slide 5: Performance Highlights – Quarter & YTD
Performance Highlights – Quarter & YTD Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) Q2FY24 vs Q2FY23 -18% -32% -29% -19% 424 278 201 1,121 347 903 143 188 37.8% 38.4% 24.8% 20.8% 18.0% 15.9% Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2F
Slide 6: Performance Highlights – Q2FY24
Performance Highlights – Q2FY24 ✓ India received below-normal rainfall at 94% of LPA (long period average) in the entire South-west Monsoon season (June-September) of 2023, amidst sharp fluctuations between above- normal rainfall in July and September and deficient rainfall in June and August. ✓ Dur
Slide 7: Performance Highlights – Q2FY24
Performance Highlights – Q2FY24 District-wise monsoon rainfall during June-Sep 2023 State Wise Progress of Kharif Sowing as on Sep 29, 2023 Source: Ministry of Agriculture and Farmers’ Welfare, GoI; ICRA Research Source: IMD; CEIC; ICRA Research Maps not to scale. All data, information, and maps are
Slide 8: New Product Launches - PAN India
New Product Launches - PAN India Pyclome Sumiblue Diamond Santana Insecticide Plant Growth Regulator Insecticide Clothianidin 3.5% + Gibberellic Acid 0.1 % GR Clothianidin 0.5% GR Pyriproxyfen 8% SE Promalin Korko Derecho Danitol® NXT Insecticide Fungicide Plant Growth Regulator Insecticide Emamecti
Slide 9: New Product Launches - PAN India
New Product Launches - PAN India Herbicide Oxadiargyl 1% + Pretilachlor 6% GR Category: Herbicide Insecticide Chlorantrasniliprole 0.4% w/w GR Herbicide Glufosinate Ammonium 13.5 SL Fungicide TriBasic Copper Sulfate 34.5% W/V SC Fungicide Herbicide TriBasic Copper Sulfate 34.5% W/V SC Tembotrione 34
Slide 10: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) Q2 FY24 Q2 FY23 YoY Q1 FY24 QoQ H1FY24 H1FY23 YoY Revenue from Operations 903.5 1,120.6 -19% 724.2 25% 1,627.7 2,106.4 -23% COGS 556.9 696.7 498.9 1,055.8 1,335.9 Gross Profit 346.5 423.9 -18% 225.4 54% 571.9 770.5 -26% Gross Profit
Slide 11: Revenue Breakup – H1FY24
Revenue Breakup – H1FY24 Product Breakup Geographic Breakup 6% 7% 6% 1% 3% 2% 1% 7% 2% 0% 2% 9% 4% 2% 2% 1% 7% 4% 7% 0% 41% 40% H1FY23 10% H1FY24 H1FY23 H1FY24 10% 81% 27% 29% 89% Insecticides PGR Fungicides Domestic Japan Europe North America Herbicides Metal Phosphides AND & EHD* Africa Asia (Ex.
Slide 12: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Sep-23 Mar-23 Equity & Liabilities (Rs. Crs) Sep-23 Mar-23 Non-Current Assets (A) 585.5 581.2 EQUITY (A) 2,526.0 2,381.8 Property, Plant and Equipment 449.7 392.8 Equity Share Capital 499.1 499.1 Capital work-in-progress 23.4 53.5 28.4 33.2 Other Equity 2,
Slide 13: Consolidated Working Capital Movement
Consolidated Working Capital Movement Change Change Change Particulars (Rs. Crs) Sep-23* Jun-23* (Sep-23 to Mar-23* (Sep-23 to Sep-22* (Sep-23 to Jun-23) Mar-23) Sep-22) Inventory (A) 561.7 805.6 -243.9 888.7 -327.0 818.2 -256.5 Inventory Days (Inventories/ COGS* No. of days in period) (i) 96 147 14
Slide 14: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (Rs. Crs) Half Year ended 30-Sep-23 Half Year ended 30-Sep-22 Net Profit Before Tax 278.8 451.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items -1.0 34.5 Operating profit before working capital changes 277.8 486.1 Changes in
Slide 15: Company Overview
Company Overview Innovate Nurture Grow www.sumichem.co.in
Slide 16: Journey to 15x Growth in India
Journey to 15x Growth in India SCIL – Vision & Mission Strategically Located Manufacturing Facilities Formidable Player in the Indian Strong Focus on R&D, Process Innovation Agrochemicals Space and Safety, Health and Environment (SHE) Diversified & De-risked Portfolio Across Autonomous Board with Va
Slide 17: SCIL - Vision & Mission
SCIL - Vision & Mission Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distribution an
Slide 18: Journey to 15x Growth in India in last 13 years
Journey to 15x Growth in India in last 13 years Feasibility study to set-up correct business model to Exploration Phase : 2000 – 2009 capture potential in Indian market and start aggressive growth phase Manufacturing JV with New Acquired product - 2000 Chemi Industries 2002 Started EHD (Public Healt
Slide 19: Formidable Player in the Indian Agrochemicals Space
Formidable Player in the Indian Agrochemicals Space 5 200+ Brands Manufacturing Grown 15X+ over FY11-23 700+ SKUs Facilities Rs. Bn 14 15X 25+ Patents Technical 200+ Registrations 35.1 Actives 15,000+ Direct 1600+ Employees Distributors & 1500+ FDOs# #FDOs - Field Development 60 Depots Officers (con
Slide 20: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to ~50 countries Generics Speciality 7% 1% 4% Aus
Slide 21: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network ✓ Strong brand with market leading position across various product categories ✓ Dual brand portfolio can offer products at all price points serving multiple 26 States 60 Depots customer sub-segments ✓ In-depth knowledge of own research products,
Slide 22: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,500+ Relationship managers connecting to 4.4 million+ farmers throughout crop cycle ✓ Over 200 brands covering maximum of crops an
Slide 23: Digital Marketing Initiatives
Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites (9 local languages), engaged with 20 million consumers in FY23 More than 53,000 subscribers http://www.dan
Slide 24: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~58 Chlorp
Slide 25: R&D: End-to-End Product Development Capabilities
R&D: End-to-End Product Development Capabilities ❑ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development; Soil Health Research Laboratory and in-house field trials ❑ R&D Team comprises of 75+ qualified and
Slide 26: Capex Plans
Capex Plans Regular Capex Additional Capex Research & Development Rs. 70-75 crore p.a. Rs. 120 crore Indian R&D team is working on over 2 years for 5 products* manufacturing several off-patent products for Domestic as well as Exports To manufacture additional proprietary technical to global affiliat
Slide 27: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy Abiding by SCC Japan’s EHS Policies working environment at manufacturing sites Four Start Export House by Ministry of Commerce and Industry Authorized Economic Operator AEO (Tier-2) Ce
Slide 28: Awards & Accolades
Awards & Accolades Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Jamnalal Bajaj Award for “Fair Business and Practices” National Safety Award by Labour Ministry, Government of India for safety performance Chemexcil Best Exporter's awa
Slide 29: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 30 years of experience in corporate laws, foreign investment the Nationa
Slide 30: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director ▪ MBA from Vanderbilt University, U.S.A. ▪ MBA from University of Virginia, USA and a and a Master’s degree from Kyoto Bachelor’s degree from the University of University in J
Slide 31: Growth Strategies
Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • Driving operational efficiencies maintaining highest safety units which would help improve our production processes, stan
Slide 32: Financial Performance & Key Takeaways
Financial Performance & Key Takeaways Innovate Nurture Grow www.sumichem.co.in
Slide 33: Historical Performance Highlights
Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) +13% 3,511 +25% 667 502 3,065 600 +28% 424 2,645 487 2,228 2,425 345 1,913 333 291 205 217 145 166 18.4% 19.6% 19.0% 11.3% 13.0% 13.7% FY18* FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY1
Slide 34: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY23 FY22 FY21 FY20 FY19 FY18 Net Revenue from Operations 3,511.0 3,061.2 2,644.9 2,424.8 2,228.4 1,912.9* COGS 2,270.6 1,908.0 1,655.4 1,607.6 1,458.9 1,238.7 Gross Profit 1,240.3 1,153.2 989.5 817.2 769.6 674.2 Gross Profit % 35.3%
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non-Current Assets (A) 581.2 487.6 367.6 360.6 318.3 312.7 EQUITY (A) 2,381.8 1,927.2 1,541.3 1,221.8 1,048.4 954.0 Property, Plant and Equip
Slide 36: Consolidated Working Capital Movement
Consolidated Working Capital Movement Particulars (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Inventory (A) 888.7 937.8 754.4 588.0 680.6 Inventory Days (Inventories/ COGS*365) (i) 143 179 166 134 170 Trade Receivables (B) 946.1 843.1 848.2 849.8 671.0 Trade Receivables Days (Trade Receivables / Re
Slide 37: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 31-Mar-18 Net Profit Before Tax 654.2 575.7 453.3 266.5 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financia
Slide 38: Key Takeaways
Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi
Slide 39: Annexures
Annexures Glance of various events to bring people together Innovate Nurture Grow www.sumichem.co.in
Slide 40: Glance of various events to bring people together
Glance of various events to bring people together Strategic Workshop of senior and Current year theme – Back middle management to deliberate to Core fundamentals to on growth acceleration steer challenging times Logo for Annual Sales Logo for Annual Team meeting - Distributors meeting Manthan means
Slide 41: Annual Sales Conference – Sumi Manthan
Annual Sales Conference – Sumi Manthan 40 Innovate Nurture Grow www.sumichem.co.in
Slide 42: Annual Distributor Meet – Sumi Bandhan
Annual Distributor Meet – Sumi Bandhan 41 Innovate Nurture Grow www.sumichem.co.in
Slide 43: Goal Setting Meet – Bhavnagar
Goal Setting Meet – Bhavnagar 42 Innovate Nurture Grow www.sumichem.co.in
Slide 44: Goal Setting Meet – Gajod
Goal Setting Meet – Gajod 43 Innovate Nurture Grow www.sumichem.co.in
Slide 45: Goal Setting Meet – Vapi, Silvassa, Tarapur
Goal Setting Meet – Vapi, Silvassa, Tarapur 44 Innovate Nurture Grow www.sumichem.co.in
Slide 46: SCC senior management India visit – May 2023
SCC senior management India visit – May 2023 45 Innovate Nurture Grow www.sumichem.co.in
Slide 47: SCC senior management India visit – June 2022
SCC senior management India visit – June 2022 46 Innovate Nurture Grow www.sumichem.co.in
Slide 48: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110MH2000PLC124224 CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Mr. Parin Narichania +91 99206 02034 / +91 99300 25733 investor.relations@sum
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