Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Investor Presentation (November 2017)
30 slides from Aksharchem India's investor presentation, November 2017
Slide 1: AksharChem (India) Limited Investor Presentation
AksharChem (India) Limited Investor Presentation November 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (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 any se
Slide 3: Results Update
Results Update 3
Slide 4: Result Highlights
Result Highlights Raw Material % to Sales Total Volume (MT) Increase in Raw 60.2% +14.82% Material cost due to 60.3% 2,268 China situation 2,157 1,975 1,986 From Q2FY18 – Raw 1,715 54.7% Material cost increases are being passed on to customers 44.4% 42.6% Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18* Q2 FY18* Q2
Slide 5: Financial Highlights Q2 FY18
Financial Highlights Q2 FY18* In Crs. Revenue Gross Profit (%) +4% 1. Gross Profit Margins are 63 66 39.8% 39.7% stable, implying increase in Raw material cost is passed on to customers 2. One off cost of Rs. ~1.5crs towards – Major Repairs Q1 FY18 Q2 FY18 Q1 FY18 Q2 FY18 undertaken at Plant and Cos
Slide 6: Company Overview
> Company ~ Overview
Slide 7: We Have Developed The EDGE
We Have Developed The EDGE 38% 58% 90% NIL Revenue Net Worth Exports Debt CAGR FY12-17 CAGR FY12-17 FY16-17 Sep 2017 Largest exporter of VINYL SULPHONE in India with over 45% share in exports of this product One of the largest exporters from India and among the largest players globally for CPC GREEN
Slide 8: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades Became a listed entity IPO objective: to CPC Green CAPEX plan fund plant (Capacity 1,440 announced for capacity TPA) Division of CPC Green, CPC Incorporated as expansion from Asahi Songwon Blue, H-Acid & Audichem 600 TPA to 2,040 Merged into the Precipitated (India) Pvt
Slide 9: With Right Products
With Right Products Dye Intermediates Pigments Vinyl Sulphone CPC Green Intermediate product for Dye Used as colouring agents Manufacturing Made From Acetanilide Made From Crude Blue, PAN 68% of H1 FY18 Sales 32% of H1 FY18 Sales One of the fastest growing Vinyl Sulphone manufacturers in India 9
Slide 10: With Diversified End User Industry
With Diversified End User Industry Textile Industry Rubber Vinyl Sulphone CPC Green Ink Plastics CPC Green CPC Green Leather CPC Green Paint CPC Green 10
Slide 11: With Trust & Credibility
With Trust & Credibility 20 Year relationship 17 Year relationship 15 Year relationship 8 Year relationship 4 Year relationship 5 Year relationship Over 2 decades of Relationship with the biggest dye stuff houses in the world 11
Slide 12: With Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 13: With State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area 13
Slide 14: With Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand Philippines FY17,% of Revenue SOUTH Malaysia AMERICA Brazil Indonesia Europe, ROTW, 4% 7% AUSTRALIA India, 10
Slide 15: With Environmental Sustainability
With Environmental Sustainability Increasing Pollution Treatment Expenses (In Crs.) 12.0 10.8 9.7 5.9 4.8 2.6 FY12 FY13 FY14 FY15 FY16 FY17 ➢ It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses ➢ Internationally recognised processes that as a
Slide 16: With Capacity Expansion
With Capacity Expansion 94% 9,720 9,240 9,240 80% 80% 75% 74% 7,800 7,786 7,428 Installed Capacity 6,881 Production 6,000 5,838 Capacity Utilisation 5,642 FY13 FY14 FY15 * FY16 FY17* Capital Expenditure Plan Existing Capacity Additional Capacity Post Expansion Capacity Approx. Cost of Project Propos
Slide 17: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Founder, Chairperson & Mg. Director Jt. Managing Director & CFO Her role is that of a strategic decision Responsible for production, finance, and policy maker to ensure growth. marketing, quality control and overall developments
Slide 18: With Awards & Accolades
With Awards & Accolades • Third Award for self manufactured direct export of Dye Intermediates during the year 2015-16 2017-18 • Trophy for self manufactured domestic sale of Dye Intermediates of more than Rs. 5 Crores but less than Rs. 25 Crores during the year 2015-16 • Top Performer Women Entrepr
Slide 19: Business Strategy
19 - ,.Business Strategy
Slide 20: Reinforcing Our Strengths…
Reinforcing Our Strengths… Strong Balance Sheet Nil Debt as of Sep 2017. Debt Rating : Care A+ for long term banking facility & Care A1+ for short term banking Better Planning facility & CARE A+/CARE A1+ for long Achieved 83% capacity term/short term bank facilities utilisation through better planni
Slide 21: … and Building a Sustainable Future
… and Building a Sustainable Future Widen our products portfolio with value added products Focus on developing strong business relationships with customers Focus on extending our presence in South East Asia, NAFTA and India to provide geographic hedge Maintain extensive supply chain network across t
Slide 22: Industry Opportunity
22 > _. Industry -- Opportunity
Slide 23: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) ➢ The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2019 : 8.4 1. Reduction in support by the Chinese government in terms of +10% ▪ Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 24: Strengths to drive Global Leadership
Strengths to drive Global Leadership Latest Technology Superior Products • Technology sourced from World • ZERO Product return till date Leader • Largest Exporter of VS : ~45% Share • Green Technology for Effluent • Largest Player of CPC Green Pigment Treatment key in Chemical Industry Customer Rela
Slide 25: Financials
Financials 25
Slide 26: Key Financial Parameters
Key Financial Parameters In Crs. Gross Profit EBITDA 134 79 52% 89% 74 78 64 33 27 32 25 6 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 PAT Cash PAT 52 57 92% 84% 20 21 21 16 17 20 4 5 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 26
Slide 27: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 58.8% 73.2% 38.8% 48.6% 22.4% 22.4% 26.8% 25.2% 28.1% 19.6% 18.9% 16.1% Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Sep-17^ Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Sep-17^ Debt to Equity (x) Current Ratio (x) 0.8 5.3 0.4 0.3 0.3 1.9 0.2 1.0 1.2 1.1 1.3 0.0 Mar-13 Mar-14 M
Slide 28: Profit & Loss Statement
Profit & Loss Statement* Particulars (In Crs.) Q2 FY18 Q1 FY18 Q-o-Q Q2 FY17 H1 FY18 H1 FY17 Net Revenue from Operations 66 63 4% 84 129 139 Raw Material 40 38 38 78 66 Employee Expenses 2 1 2 3 3 Other Expenses 13 12 13 25 24 EBITDA 11 12 -7% 32 23 46 EBITDA % 17.0% 18.9% 37.7% 17.9% 33.0% Other In
Slide 29: Balance Sheet
Balance Sheet* Equity & Liabilities (In Crs.) Sep-17 Assets (In Crs.) Sep-17 Share Capital 8 Property, Plant & Equipment 61 Capital Work-in-Progress 15 Other Equity 214 Financial Assets Total Equity 222 Investments 30 Deferred Tax Liabilities (Net) 11 Loans 2 Total Non-Current Assets 108 Total Non-C
Slide 30: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Ms. Neha Shroff / Ms. Payal Dave cs@aksharchemindia.com neha.shroff@sgapl.net / payal.d
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