Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Investor Presentation (December 2019)
41 slides from Balaji Amines's investor presentation, Dec 1, 2019
Slide 1: Cover letter to stock exchanges: Investor Presentation
ER )) is op Bs as CIN : L24132MH1988PLC049387 TEL —_: 0091-217 - 2310824 AMINES LIMITED : 0091-217 - FAX © 0094-217 sae REGD. OFF. : 'BALAJI TOWERS' ‘ No. 9/1A/1, HOTG! ROAD, E-MAIL _ :: info@balajiamines.com AASARA CHOWK, SOLAPUR - 413 224. WEBSITE: http://www.balajiamines.com MAHARASHTRA. (INDIA)
Slide 2: Balaji Amines Limited Investor Presentation - December 2019
Balaji Amines Limited Investor Presentation - December 2019
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balaji Amines 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 securiti
Slide 4: Q2FY20: Performance Highlights
Q2FY20: Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 20.7% 16.0% 19.8% 14.3% 8.6% 15.1% 231.4 230.4 44.8 45.7 34.7 216.3 31.0 37.1 20.0 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 Q2FY19 Q1FY20 Q2FY20 3
Slide 5: H1FY20: Performance Highlights
H1FY20: Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 21.7% 17.9% 13.6% 11.8% 476.2 461.8 103.5 64.8 54.7 82.7 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 4
Slide 6: Q2FY20 Result Update
Q2FY20 Result Update Total volumes stood at 21,376 MT for Q2FY20 as against 17,426 MT in Q2FY19 • Amines volumes stood at 4,631 MT • Amines Derivatives volumes stood at 9,024 MT • Specialty Chemicals volumes stood at 7,720 MT Q2FY20 EBITDA margins improved viz-a-viz Q1FY20 margins, on account of the
Slide 7: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q-o-Q H1FY20 H1FY19 Y-o-Y Revenue from Operations 230.4 216.3 6.5% 231.4 -0.4% 461.8 476.2 -3.0% Raw Material 128.1 113.8 141.4 269.5 255.1 Gross Profit 102.3 102.5 -0.3% 90.1 13.5% 192.3 221.2 -13.0% Gross P
Slide 8: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Sep-19 Mar-19 EQUITY AND LIABILITIES (Rs. Crs.) Sep-19 Mar-19 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 369.8 318.4 (a) Equity Share capital 6.5 6.5 (b) Capital work-in-progress 22.0 63.2 (b) Other equity 612.2 568.5 (c) Intang
Slide 9: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow Statement for six months ended (in Rs. Crore) H1FY20 H1FY19 Profit before interest and tax 77.2 96.3 Other income considered -5.2 -2.3 Depreciation 10.8 9.4 Operating profit before working capital changes 82.8 103.5 Changes in working capital 35.7 -21.6 Cash
Slide 10: About Us
at AMINES About Us
Slide 11: Amines Industry – Small but Critical Industry with growth potential
Amines Industry – Small but Critical Industry with growth potential The size of Aliphatic Amines industry globally is For Indian Amine manufacturers, 45-55% of the $4.1 billion. Globally, the Amine industry is export revenue comes from Europe alone. USA 8 1 oligopolistic with two-three producers cat
Slide 12: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India Largest manufacturer of Aliphatic State-of-the-art manufacturing 25+ Product basket Zero Liquid Discharge Amines in India facilities fully equipped with latest DCS technology facilities Only Company in the World to develop an Indigeno
Slide 13: Our Products are supplied to India's fast-growing Industries
Our Products are supplied to India’s fast-growing Industries INDUSTRY WISE – REVENUE BREAKUP 3% 4% 3% 4% PHARMA AGRO-CHEMICALS ANIMAL FEEDS 3% 2% 4% 51% PAINTS & RESINS OIL & GAS RUBBER CLEANING CHEMICALS 26% Pharma Agrochem Paints & Resins Animal Feeds Oil & Gas Rubber Cleaning Chemicals Water Trea
Slide 14: Highly Experienced Management Team
Highly Experienced Management Team Mr. A. Srinivas Reddy Mr. D. Ram Reddy Mr. A. Pratap Reddy Mr. N. Rajeshwar Reddy Mr. G. Hemanth Reddy Whole Time Director Managing Director Executive Chairman Joint Managing Director Whole Time Director & CFO • Post Graduate in Computer • 30 years of experience ac
Slide 15: Diversified Product Portfolio
Diversified Product Portfolio Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing consumption and • Amine Derivatives are used to make further salts and • Albeit a small and fastest growing segment applications in a Chemically mature Industry such other complex ch
Slide 16: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals The company logos mentioned above are the property of their respective owners and are used here for identification purposes only 15
Slide 17: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Focus towards high-value derivatives and Develop new indigenous technology for specialty chemicals with an aim to move up manufacturing products leading to lowering in the value-chain with vertical integration manufacturing costs & improving
Slide 18: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Balaji Amines In MTPA Balaji Speciality Chemicals In MTPA Installed Future Product Installed Application Areas Product Application Areas Capacity Capacity Capacity Methyl Amine 48,000 Pharma, Agro, Dye & Rubber Ethylenediamine 37,350 Pesticides, Polymer
Slide 19: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities Ukraine, Poland, Norway, Canada Italy, Belgium, Netherlands, France, Spain, Germany, Israel, UK U.S.A. Pakistan Korea Mexico Oman Bangladesh Taiwan Egypt Latin America Brazil South Africa 20.79% of the Total Revenue of Rs. 943 Cr
Slide 20: Awards & Certificates – A Testimony of our capabilities
Awards & Certificates – A Testimony of our capabilities ISO Certificate Two Star Export House ISO Certificate Certificate of Merit – CHEMEXCIL First Award – CHEMEXCIL WHO GMP Certificate REACH Pre-Registration Niryat Shree Award by FIEO Product Innovator of ISO 9001 : 2015 the Year in Chemicals - Ce
Slide 21: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Credit Rating upgraded from IND A+ to IND AA- by India Ratings and Research (Ind-Ra) .” The ratings process highlighted the following factors:- • Ability to maintain healthy and stable EBITDA margins • Ability to pass on raw material price volatility to i
Slide 22: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth Complex Manufacturing High Lead time Capex Heavy Business Complex manufacturing process Niche product offering with high High fixed costs, with fixed asset requiring high levels of lead time in customer approvals turns hovering in the r
Slide 23: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Value-Added Products Applicability in Solvents segment Capex towards high-value derivatives and specialty Solvents account for 80%-90% of the mass chemicals will materialize into higher revenue and enhanced margins 01 utilised in a typical p
Slide 24: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Mega Project Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Status Technology mover advantage for Products Environmental Phase-1 of Project cost of Plan to Plan to deploy Significant Hig
Slide 25: Balaji Speciality Chemicals – To Start Production in FY20
Balaji Speciality Chemicals – To Start Production in FY20 Own 55% in subsidiary Balaji Undertook capex of Rs. 240 Recently received Specialty Chemicals Pvt. Ltd crores; loan contribution of Maharashtra Pollution Control 01 whose plant is located at 02 Rs. 120 crores . Expected 03 Board (MPCB) approv
Slide 26: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage Environment Conscious New Products Identification of new products and Waste water treatment and minimization of effluents development of latest process by adopting Industry best practices for effluent technologies treatment. Efficiency
Slide 27: Hotel Division
at AMINES Hotel Division
Slide 28: Balaji Sarovar Premiere (Solapur)
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur Balaji Sarovar Premiere (Solapur) 27
Slide 29: Balaji Sarovar Premiere – At a Glance
Balaji Sarovar Premiere – At a Glance • Commenced Operations in October 2013 Hotel Balaji Sarovar Premier is the only 5 star hotel in Solapur • Invested Rs. 110 crore in the Hotel Project via mix of Debt and Equity • Tied up with Sarovar Group for the Management of the Hotel on Management Fee + Reve
Slide 30: Balaji Sarovar Premiere – Operating Matrix (FY19)
Balaji Sarovar Premiere – Operating Matrix (FY19) 129 Rooms Constitutes 2.2% Rs. 3,375 ARR of Total Revenue 63% Occupancy Rate Balaji Negligible Routine Capex incurred Sarovar RS. 2,133 RevPAR Premiere Renowned Five Star Hotel In the City of Solapur ARR : Average Room Revenue RevPAR: Revenue per Ava
Slide 31: Financial Performance
at AMINES Financial Performance
Slide 32: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +11% 943 +17% 190 193 117 861 +37% 113 153 643 670 82 619 127 102 58 33 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA Margin (%) PAT Margin (%) RoE (%) +406 Bps +534 Bps +705 B
Slide 33: Strong Core RoCE Profile
Strong Core RoCE Profile Particulars (Rs. Crs.) FY19 Standalone Debt 94.6 Standalone Networth 575.0 Total Capital Employed 669.6 ▪ Investments made to the tune of Rs. 98.90 crs. in Subsidiary of Balaji Amines and Rs. 22 crs. in Greenfield project (Unit 4) not Less: Investment in Hotel Balaji Sarovar
Slide 34: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q2FY20 Q2FY19 Y-o-Y Q1FY20 Q-o-Q FY19 FY18 Revenue from Operations 230.4 216.3 6.5% 231.4 -0.4% 949.8 861.2 Raw Material 128.1 113.8 141.4 522.2 464.1 Gross Profit 102.3 102.5 -0.3% 90.1 13.5% 427.6 397.1 Gross Profit Margin 44.4% 47.4
Slide 35: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Sep-19 Mar-19 Mar-18 EQUITY AND LIABILITIES (Rs. Crs.) Sep-19 Mar-19 Mar-18 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 369.8 318.4 316.1 (a) Equity Share capital 6.5 6.5 6.5 (b) Other equity 612.2 568.5 460.6 (b) Capital work-in
Slide 36: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Consolidated P&L (Rs. Cr) FY19 FY18 YoY Revenue from Operations 943.1 861.2 9.5% Raw Material 515.4 464.1 Gross Profit 427.7 397.1 7.7% Gross Profit Margin 45.4% 46.1% Employee Cost 48.3 45.1 Other Expenses 186.0 162.6 EBITDA 193.4 189.5 2.1% EBITDA Margin 20.5% 22
Slide 37: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crores) Mar-19 Mar-18 EQUITY AND LIABILITIES (Rs. Crs.) Mar-19 Mar-18 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 319.7 316.1 (a) Equity Share capital 6.5 6.5 (b) Capital work-in-progress 269.5 123.1 (b) Other equity 567.5 460.6 (c)
Slide 38: Consistent Dividend Payout
Consistent Dividend Payout 140% 130% 110% 100% 60% FY15 FY16 FY17 FY18 FY19 Particulars (Rs. per share) FY15 FY16 FY17 FY18 FY19 Consolidated Book Value 71.0 88.9 111.9 149.7 182.7 Consolidated EPS 11.2 18.9 26.4 34.9 36.4 Dividend 1.2 2.0 2.2 2.6 2.8 37
Slide 39: Moving to Version 2.0
Moving to Version 2.0
Slide 40: Balaji Amines Ltd – Version 2.0 - Progressing steadily
Balaji Amines Ltd – Version 2.0 - Progressing steadily Brownfield Capex Phase Subsidiary Expansion Greenfield Expansion Greenfield Capex to be Expansion and commercialization of Manufacturing of new products such completed till 2021 will Moving to higher margin niche 90-acre project in MIDC Chinchol
Slide 41: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Balaji Amines Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L24132MH1988PLC049387 CIN - U74140MH2010PTC204285 Email - info@balajiamines.com Mr. Shogun Jain / Mr. Parin Narichania shogun.jain@sgapl.net / parin.narichani
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