Dcw Ltd. · NSE:DCW
Dcw — Q2 FY2023 Earnings Presentation
41 slides from Dcw's earnings presentation, Nov 17, 2022
Slide 1: Letter to stock exchanges: Investors' Presentation
o Dew LIMITED November 17, 2022 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza Bldg. Department of Corporate Services, 5 81 Floor, Plot No.C-l 1st floor, New Trading Ring 'G' Block, Near Wockhardt, Rotunda Building, Bandra Kuria Complex Phiroze Jeejeebhoy Towers, Mumbai 400 051
Slide 2: DCW Limited Investor Presentation - Q2 & H1FY23
DCW LIMITED INVESTOR PRESENTATION- Q2 & H1FY23
Slide 3: Disclaimer
DISCLAIMER The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate only as of the date it was originally issued. The figures mentioned in the data are rounded off. DCW Limited (“DCW” or the Company) strictly deni
Slide 4: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 5: DCW at a Glance
DCW AT A GLANCE Overview: • Established as Dhrangadhra Chemical Works in 1939 at Dhrangadhra, Gujarat as India’s first Soda Ash plant. • Expanded, diversified and modernized its operations with a diversified range of products for supply to customers in both, domestic and international markets since
Slide 6: Segment Overview
Segment Overview Specialty Chemicals Intermediate Chemicals Commodity Chemicals Synthetic HCl, Utox, Liquid Chlorine, Caustic C-PVC SIOP Sodium Bicarbonate, etc. Soda Ash PVC Rutile Soda ✓ Synthetic ✓ One of the ✓ Situated at ✓ Situated at ✓ Situated at rutile or ✓ Sole largest, ✓ Situated at Sahupu
Slide 7: Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals
Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals Niche, Diversified Product Mix Moving Up The Value Chain ✓ Diversified product mix of Commodity, Intermediate and Specialty Chemicals ✓ Increasing the contribution from high value, high margin Specialty Chemicals
Slide 8: Evolution – Moving Up The Value Chain
Evolution – Moving Up The Value Chain The Story So Far : Well Established Commodity Chemicals Player Transition Towards Specialty Chemicals & Self- Sufficiency 2016 Synthetic Iron Oxide (SIOP) Plant 2017 Country’s first and 1970 only C-PVC plant Synthetic Rutile and Integrated with technical PVC Res
Slide 9: Focus on Sustainable Growth & Long Term Value Creation
Focus on Sustainable Growth & Long Term Value Creation Internal Factors External Factors Strategic Operating Sustainable Growth Demand Government Initiatives Initiatives Drivers Initiatives ▪ Increasing share of ▪ Our demand for ▪ Government’s thrust Specialty Chemicals ▪ Re-Engineering various prod
Slide 10: Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities
Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities Exclusive Technological Tie-ups for Significant Scale-up Strategic Location Captive Power Plant Specialty Chemicals Opportunities ➢ India’s sole manufacturer of C- ➢ Sahupuram facility situated in ➢ 58 MW Cogen Pow
Slide 11: Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products
Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products Water Sahupuram Facility Flow Dhrangadhra Facility Flow Salt Material Ammonia Electrolysis Hydrogen Caustic Soda Raw Coal Salt Boiler Fly Ash PVC Plant Chlorine HCl Soda Ash Processing Steam Steam 50 MW PVC Resin Power Sodiu
Slide 12: Board of Directors – Wide Spectrum of Experience
Board of Directors – Wide Spectrum of Experience Mr. Pramod Jain, Chairman & Managing Director Mr. Bakul Jain, Managing Director • Overall 51 years of wide experience in the Industry • Overall 39 years of wide experience in the Industry • Under his leadership, the capacity of Soda Ash Plant at Dhran
Slide 13: Qualified Management with Deep Understanding of Chemicals Sector
Qualified Management with Deep Understanding of Chemicals Sector Mr. Amitabh Gupta, CEO Mr. S. Ganapathy, COO • Holds Bachelor’s degree in Physics, Chemistry and • M.Sc. - Chemistry & MMS – Marketing from Mumbai Mathematics and Master’s degree in Physics. University • Associated with the Company for
Slide 14: State Of The Art, Strategically Located Manufacturing Facilities
State Of The Art, Strategically Located Manufacturing Facilities Dhrangadhra Facility Sahupuram Facility Products Manufactured: Soda Ash, Ammonium Bicarbonate, Products Manufactured: Caustic Soda, PVC, SIOP, C-PVC, SR, Liquid Sodium Bicarbonate Chlorine, Utox, Hydrochloric Acid, Trichloroethylene, e
Slide 15: Our Esteemed Clientele
Our Esteemed Clientele Commodity Chemicals National Aluminium Company Finolex Industries Limited Hindustan Unilever Limited (HUL) (NALCO) Tamil Nadu Newsprint and Papers Ashirvad Pipes Pvt Limited Manali Petrochemical Limited Limited Specialty Chemicals Osaka Titanium Corporation, Japan TOHO Titaniu
Slide 16: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 17: Capacity Overview
Capacity Overview Specialty Chemicals Commodity Chemicals C-PVC SIOP Synthetic Rutile PVC Caustic Soda Soda Ash ✓ Installed ✓ Installed ✓ Installed ✓ Installed ✓ Installed ✓ Installed Capacity: Capacity: Capacity: Capacity: Capacity: Capacity: 10,800 TPA 27,000 TPA 42,000 TPA 90,000 TPA 96,000 TPA 1
Slide 18: C-PVC – A Niche Play
C-PVC – A Niche Play Sole manufacturer of C-PVC in India C-PVC Business Overview Revenue (INR Million) • Sole manufacturer of C-PVC in India with technical license from Arkema, France 2153 • Commenced operations at Sahupuram facility in 2017, successfully 1486 ramped-up utilisation since then 1029 •
Slide 19: SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments
SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments Intermediate Chemicals provide high self-sufficiency and operating leverage to SIOP Business SIOP Business Overview Revenue (INR Million) • World’s first commercial scale Synthetic Iron Oxide Pigment to produc
Slide 20: PVC – Favourable market dynamics
PVC – Favourable market dynamics With favourable market dynamics, PVC is expected to drive the next leg of growth in commodity chemicals PVC Business Overview Revenue (INR Million) • DCW’s PVC plant is situated at Sahupuram, Tamil Nadu • Well positioned to take the advantage of growing domestic dema
Slide 21: Caustic Soda – Promising Market Dynamics
Caustic Soda – Promising Market Dynamics Company posted healthy ~10.1% EBIT Margin & ~86% utilisation as of FY22 despite industry headwinds Caustic Soda Business Overview Revenue (INR Million) • Pioneer of Caustic Soda manufacturing in India • DCW’s caustic soda plant is situated at Sahupuram, Tamil
Slide 22: Soda Ash – Consistent Commodity Business
Soda Ash – Consistent Commodity Business Long term steady performance for key operating matrices - production and capacity utilisation Soda Ash Business Overview Revenue (INR Million) • DCW’s soda ash plant is situated at Dhrangadhra, Gujarat • Company’s soda ash business witnessed robust growth ove
Slide 23: Intermediate Chemicals – Effectively Complements Other Segments
Intermediate Chemicals – Effectively Complements Other Segments Intermediate Chemicals ensure the uninterrupted, cost-effective supply for value-addition products. Trichloroethylene Plant Intermediate Chemicals Overview • Wide range: Intermediate chemicals ensure self-sufficiency and additional sour
Slide 24: Intermediate Chemicals – Product Overview
Intermediate Chemicals – Product Overview Intermediate Chemical Capacity (TPA) Application Liquid Chlorine 36,000 Captive Consumption - C-PVC Hydrochloric Acid 90,000 Captive Consumption – Synthetic Rutile Trichloroethylene 7,200 Sold in open market Ferric Chloride 6,000 Captive Consumption – SIOP U
Slide 25: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 26: Debt Refinancing
Debt Refinancing • Initially, the total debt of ₹410 crore was taken from Kotak Special Situation Fund (KSSF) out of which ₹350crore was in form of NCDs and balance ₹60 crore was in form Initial of OFCDs. • NCDs/OFCDs were issued at a coupon of 11% & 9.17% respectively, both had an IRR Funding of 17
Slide 27: One Time Impact in Finance Cost for Q2FY23 Related to NCD/OCD Closure with KSSF
One Time Impact in Finance Cost for Q2FY23 Related to NCD/OCD Closure with KSSF The Company had to book the following One-time Interest Cost: Particulars ₹ in Mn. OCD Redemption Premium 35 NCD Pre-payment Charges 95 Un-amortized Issue Cost (NCD)* - Non-Cash Impact 141 Provision Gap on NCD redemption
Slide 28: Q2 & H1FY23 Key Highlights
Q2 & H1FY23 KEY HIGHLIGHTS Speciality Chemicals Revenue up by 34.2% EBITDA up by 67.3% YoY EBITDA contribution YoY in H1FY23 in H1FY23 26.8% in Q2FY23 Soda Ash Picks up the Net Debt: Equity at 0.55 momentum and SIOP Revenue up 88.2% in FY22 versus 0.73 as revenue up by 89.1% YoY in H1FY23 on FY21 Yo
Slide 29: Q2FY23 Result – Key Highlights
Q2FY23 RESULT – KEY HIGHLIGHTS Q2FY23 YoY ANALYSIS In INR Million REVENUES EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 6,977.8 5,718.7 15.9% 14.1% 22% 496.4 37% 1107.1 5.2% 7.10% 3.8% 3.40% 807.1 152% 294.9 11% 196.7 262.7 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 • Financ
Slide 30: H1FY23 Result – Key Highlights
H1FY23 RESULT – KEY HIGHLIGHTS H1FY23 YoY ANALYSIS In INR Million REVENUES EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 14,664.3 2,346.9 1,084.1 10,923.8 12.8% 16.0% 34% 1,024.5 1,403.0 67% 3.3% 228% 7.0% 3.0% 7.4% 182% 330.4 362.9 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H2FY23 H1FY22 H1FY23
Slide 31: Segmental Performance – Revenue
SEGMENTAL PERFORMANCE Revenue Breakdown - By Segments (INR Million) Segments Q2FY23 Q2FY22 YoY% Q1FY23 QoQ% H1FY23 H1FY22 YoY% PVC 2,335.0 3,148.7 -25.8% 3,191.9 -26.8% 5,527.0 5,614.7 -1.6% Caustic Soda 2,791.0 1,247.6 123.7% 2,563.8 8.9% 5,354.8 2,901.7 84.5% Soda Ash 867.1 510.1 70.0% 867.4 NA 1,
Slide 32: Segmental Performance – EBITDA
SEGMENTAL PERFORMANCE EBITDA Breakdown - By Segments (INR Million) Segments Q2FY23 Q2FY22 YoY% Q1FY23 QoQ% H1FY23 H1FY22 YoY% PVC -221.7 544.8 -140.7% -62.7 253.4% -284.5 636.1 NA Caustic Soda 920.8 17.8 5,069.6% 754.6 22.0% 1,675.4 266.9 527.7% Soda Ash 79.2 29.0 172.8% 192.3 -58.8% 271.4 40.1 577.
Slide 33: PVC Business - Financial & Operating Metrics
PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY23 Q2FY22 YoY% Q1FY23 QnQ (%) H1FY23 H1FY22 YoY% Revenue from Operations 2,335.0 3,148.7 -25.8% 3,191.9 -26.8% 5,527.0 5,614.7 -1.6% EBITDA -221.7 544.8 NA -62.7 253.4% -284.5 636.1 -144.7% EBITDA Marg
Slide 34: Caustic Soda Business - Financial & Operating Metrics
Caustic Soda Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY23 Q2FY22 YoY% Q1FY23 QnQ (%) H1FY23 H1FY22 YoY% Revenue from Operations 2,791.0 1,247.6 123.7% 2,563.8 8.9% 5,354.8 2,901.7 84.5% EBITDA 920.8 17.8 5069.6% 754.6 22.0% 1,675.4 266.9 527.7% EB
Slide 35: Soda Ash Business - Financial & Operating Metrics
Soda Ash Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY23 Q2FY22 YoY% Q1FY23 QnQ (%) H1FY22 H1FY22 YoY% Revenue from Operations 867.1 510.1 70.0% 867.4 NA 1,734.5 917.2 89.1% EBITDA 79.2 29.0 172.8 192.3 -58.8% 271.4 40.1 577.4% EBITDA Margin (%) 9.1%
Slide 36: C-PVC Business - Financial & Operating Metrics
C-PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY23 Q2FY22 YoY% Q1FY23 QnQ (%) H1FY23 H1FY22 YoY% Revenue from Operations 583.2 531.2 9.8% 588.3 -0.9% 1,171.5 965.2 21.4% EBITDA 151.8 127.7 18.9% 173.7 -12.6% 325.4 292.0 11.5% EBITDA Margin (%) 26.
Slide 37: SIOP Business - Financial & Operating Metrics
SIOP Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY23 Q2FY22 YoY% Q1FY23 QnQ (%) H1FY23 H1FY22 YoY% Revenue from Operations 361.8 222.3 62.7% 410.9 11.9% 772.8 410.7 88.2% EBITDA 145.2 36.7 295.5% 125.4 15.7% 270.6 67.1 303.3% EBITDA Margin (%) 40.1%
Slide 38: Q2 & H1FY23 Result – Profit & Loss Statement
Q2 & H1FY23 RESULT – PROFIT & LOSS STATEMENT Particulars (INR Million) Q2FY23 Q2FY22 YoY % H1FY23 H1FY22 YoY% FY22 Net Revenue from Operations 6,977.8 5,718.7 22.0% 14,664.3 10,923.8 34.2% 24,547.4 Other Income 48.6 12.7 283.7% 71.3 35.0 103.6% 61.0 Total Income 7,026.4 5,731.4 22.6% 14,735.6 10,958
Slide 39: Balance Sheet
BALANCE SHEET Asset (INR Million) H1FY23 FY22 Liabilities (INR Million) H1FY23 FY22 Non-Current Assets Equity & Liabilities Property, Plant & Equipment 13,226.9 13,520.7 Equity Share Capital 590.3 522.1 Capital Work in Progress 147.0 81.0 Other Equity 9,041.3 7,496.1 Financial Assets Total Equity 9,
Slide 40: Historical Performance at a Glance
HISTORICAL PERFORMANCE AT A GLANCE In INR Million REVENUES1 EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 3,309 15.1% 1075.0 13.5% 4.4% 24,547 12.1% 2,207 14,643 1550 12,773 0.3% 38 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 -2.1% -268 LEVERAGE ANALYSIS RETURN METRICS (%) 0.82 0.73 0.55 24.4% 8,
Slide 41: For Further Queries
FOR FURTHER QUERIES: Mr. Dilip Darji Sr. General Manager (Legal) & Company Secretary Email: dilip.darji@dcwltd.com Mr. Manoj Saha Email: dcw@dickensonworld.com Contact no: +91 9819860835 Mr. Rahul Jaju Email: rahul.jaju@dickensonworld.com Contact no: +91 9773264172