Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Investor Presentation (December 2020)
34 slides from Chemcon Speciality Chemicals's investor presentation, Dec 14, 2020
Slide 1: Regulation 30(6) filing cover letter to stock exchanges
@H@me@n 'D L} v tr g 7 AO GHETIGOT Speciality Chemicals Limited Reg. No. : GUJ/Q-i665/C2 CIN : U24231 GJ1 9BBPLC011652 December 14,2020 Listing Compliance & Legal Regulatory Listing & Compliance BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – December 2020
Chemcon Speciality Chemicals Limited Investor Presentation – December 2020
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemcon Speciality Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Company Overview
Company Overview
Slide 5: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality 3rd Largest Manufacturer of HMDS Chemicals Worldwide An ISO 9001:2015 and ISO Largest Manufacturer of CMIC in India 14001:2015 Certified Company Business Vertical: Pharmaceuticals 2nd Largest Manufact
Slide 6: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15 » Company » First sale of few » Commenced HMDS » First export shipment of » First sale of CMIC » First sale of Calcium incorporated as chemical products Business in 2001 HMDS Bromide (Solution) Gujarat Quinone • Pyridine Private Limited Hydrobromide » Di
Slide 7: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » United Arab America Emirates FY20 Export FY18-FY20 Contribution*: CAGR: » Italy » Serbia ~40% ~17% » South Korea » Russia » Germany » Spain » People’s Republic of » Thailand China » Malaysia » Japan Over Two Decades of • Manuf
Slide 8: Entry Barriers
Entry Barriers Complex Chemistry Stringent Impurity Measure » The involvement of complex chemistry in » Our processes and products are subject to, and the manufacture of the Products, which is measured against, high quality standards and difficult to commercialize on a large scale stringent impurity
Slide 9: Key Long-Term Relationships
Key Long-Term Relationships Pharmaceutical Chemicals Oilwell Completion Chemicals Inorganic HMDS CMIC Bromides Shree Radha CC Gran Limited Overseas Liability Company New Product Longstanding Clients Strong Base New Customer Reach Development Leading to Few customers Top 7 customers has Well equipped
Slide 10: Moving up the Value chain
Moving up the Value chain Adding New Product like FY15 Revenue FY20 Revenue Business 4 CBC, 2,5 DHT & Others Rs 64 Crs Rs 262 Crs Commenced CMIC business in 2014 CMIC Rs 10 Crs Rs 34 Crs HMDS Rs 36 Crs Rs 131 Crs Commenced HMDS business in 2001 Bromides Rs 13 Crs Rs 88 Crs Commenced Bromide business
Slide 11: Board of Directors : Experienced Team
Board of Directors : Experienced Team Kamalkumar Rajendra Aggarwal Navdeep Naresh Goyal Chairman and Managing Director Deputy Managing Director » Holds Diploma in Petrochemical Technology (Plastic » He is currently associated with SILPL in the capacity of Technology) from the Maharaja Sayajirao Univ
Slide 12: Board of Directors : Independent Directors
Board of Directors : Independent Directors Lalit Chaudhary Devendra Rajkumar Mangla Independent Director Independent Director » He holds a bachelors’ degree in commerce from the Sardar » He holds a bachelor’s degree in commerce from the University Patel University, Gujarat of Delhi. He is currently
Slide 13: Strong Rating Profile
Strong Rating Profile » Upgrade Dun & Bradstreet CRISIL Rating BBB / Stable BBB + / Stable 5A2 / Good Rating » 2018-2020 » Sep,2020 » Oct,2020 The ratings process highlighted the following factors D&B Rating: 5A2 » Extensive experience of promoters in the industrial chemical industry, and robust fin
Slide 14: Key Certifications
Key Certifications Key Certificates R&D Environment In-house laboratory to test Complying All Environment Laws » Raw materials procured » The Environment (Protection) Act, 1986 » New Products & Innovation » Water Prevention and Control of Pollution Act » Final products testing at the various stages
Slide 15: Product Overview
Product Overview
Slide 16: Market Overview
Market Overview Oilwell Completion HMDS CMIC Chemicals Global Market ~35,700 MT ~6,880 MT ~362,000 MT Capacity Global Market ~25,390 MT ~3,927 MT ~246,000 MT Production Chemcon Production 2,649 MT 677 MT 6,039 MT Chemcon Share in > 10% > 17% > 2% Global Market Domestic Import ~1,622 MT ~1,574 MT - W
Slide 17: HMDS
HMDS Hexamethyldisilazane / Hexamethyldisilane » HMDS, an organosilicon compound, is a reagent and a precursor to bases that are popular in organic synthesis and organometallic chemistry » HMDS is widely used in the pharmaceutical industry as a silylating agent in the process of manufacture of pharm
Slide 18: CMIC
CMIC Chloromethyl Isopropyl Carbonate » CMIC (chloromethyl isopropyl carbonate) is an antiviral drug intermediate product, which is a key intermediate for anti-AIDS and anti-hepatitis B drug Tenofovir » The downstream product of chloromethyl isopropyl carbonate, Tenofovir is a nucleotide antiviral d
Slide 19: Oilwell Completion Chemicals
Oilwell Completion Chemicals Inorganic Bromides: Calcium Bromide, Zinc Bromide and Sodium Bromide » Oilwell Completion Chemicals are used to complete the well and is normally a salty solution made up of chlorides or bromides » In addition to cleaning the wellbore, after the drilling is finished, com
Slide 20: Manufacturing Facilities
Manufacturing Facilities » P4 » P6 » P7 » P5 » P8 » P9 » P1 » New Land » P3 » P2 Improving Dedicated Plants Multipurpose Plants In-house Laboratory Warehouses Efficiencies 19
Slide 21: Manufacturing Facilities
Manufacturing Facilities 2 Proposed Expansion Plants Located at Manjusar near 7 Operational Plants 3 Owned + 5 Lease Warehouses under process Vadodara, Gujarat Installed Capacity Volume Reactor Plant No Product categories Product Manufactured (MT P.A) Capacity (In KL) 2 Marketing Offices in Mohali &
Slide 22: Recent Developments
Recent Developments » The company has commissioned 2 plants for manufacturing of HMDS with capacity of 1800 MTPA each Commissioning of new Plants P7 and P2 » The plant P2 & P7 - P2 has flexibility to manufacture high purity HMDS and P7 has flexibility to manufacture CBC & DHT » 4 CBC: 4 CBC is widel
Slide 23: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We intends to build two additional plants with a total volumetric reactor capacity » India is net importer of both HMDS and CMIC, with about 40% and 62% of India’s of 251.00 KL. These additional plants shall be utilised for the manufacturing of
Slide 24: Way Forward
Way Forward Moderate Recovery Exploring Strong Growth in in Opportunities in Pharma Industry Oil Industry New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 23
Slide 25: Financial Highlights
Financial Highlights
Slide 26: Quarterly Highlights
Quarterly Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) -5.8% +19.3% 14.4% 65.3 61.5 23.3 15.6 19.5 13.6 45.7 13.9 8.8 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Q2FY20 Q1FY21 Q2FY21 Geographic-Wise (%) Business-wise (%) Segment Volume (MT) 2,444 1% 0% Export 25% 27% Others 0% 10% 1%
Slide 27: Financial Trend
Financial Trend Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 303.3 66.1 70.3 48.9 262.1 43.0 45.1 157.6 37.4 26.4 24.4 107.2 FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 Geographic-Wise (%) Business-wise (%) Segment Volume (MT) 11,118 Others 2% 6% 3% 6% 0% 9,762 32% 40% 3
Slide 28: Segment Highlights
Segment Highlights Total Revenue (Rs. Cr) 130 131 107 88 65 61 56 48 33 34 37 7 HMDS CMIC Oilwell 2018 2019 2020 H1FY21 Volume (MTPA) 8,248 5,847 6,039 2,915 1,588 1,674 1,421 1,076 1,196 808 784 560 HMDS CMIC Oilwell 27
Slide 29: Key Ratios
Key Ratios Fixed Asset Debt/ equity (x) Turnover(x) 0.33 7.50 0.30 0.30 5.30 5.10 FY18 FY19 FY20 FY18 FY19 FY20 ROCE (%) ROE (%) 62% 49% 45% 51% 34% 37% FY18 FY19 FY20 FY18 FY19 FY20 28
Slide 30: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue from Operations 61.5 65.3 -5.8% 45.7 34.8% 107.2 154.5 -30.6% Cost of Goods Sold 25.7 35.2 24.8 50.5 89.0 Employee Cost 3.7 3.5 3.2 6.9 7.6 Other Expenses 8.8 7.1 3.7 12.3 14.5 EBITDA 23.3 19.5 19
Slide 31: Balance Sheet
Balance Sheet ASSETS (Rs. Crs) Sep-20 Mar-20 EQUITY AND LIABILITIES Sep-20 Mar-20 Non-Current Assets EQUITY AND LIABILITIES a) Property, Plant And Equipment 62.3 47.4 Equity a) Equity Share Capital 36.6 31.8 b) Capital Work in Progress 2.2 3.7 b) Other Equity 287.4 114.6 c) Right Of Use Asset 1.7 1.
Slide 32: Cash Flow Statement
Cash Flow Statement Cash Flow Statements (Rs. Crs) Sep-20 Sep-19 Operating profit before working capital changes 37.5 44.2 Changes in working capital -33.3 -15.6 Cash generated from operations 4.2 28.6 Direct taxes paid (net of refund) 2.1 4.6 Net Cash from Operating Activities 2.1 24.0 Net Cash fro
Slide 33: Successful IPO Listing
Successful IPO Listing October 2020 » Listing of Chemcon Speciality Chemicals Ltd » Fresh Issue: Rs 165 Cr » IPO Proceeds Purpose » Capital Expenditure : Rs 41 cr for ▪ P8 Capex - FY21e ▪ P9 Capex - FY22e » Working capital : Rs 90 cr » General Corporate Purposes: Rs 34 cr 32
Slide 34: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – U24231GJ1988PLC011652 Mr. Rajesh Gandhi - CFO Email – rajesh@cscpl.com www.cscpl.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shogun Jain / Mr. Shrikant Sangani Email - shogun.jain@sgapl.net / shrikant.sangani@sgapl.net +91
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