Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q1 FY18 Earnings Presentation
18 slides from Sharda Cropchem's earnings presentation, July 2017
Slide 1: Sharda Cropchem Limited Q1 FY18 Results Update
SHARDA CROPCHEM LIMITED Q1 FY18 RESULTS UPDATE JULY 2017
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q1 FY18 Results Highlights Q1 FY18 Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q1 FY18 Results: Key Highlights
Q1 FY18 RESULTS: KEY HIGHLIGHTS Q1 FY18 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 35.9% 32.3% 21.1% 18.2% 13.0% 12.7% 3,411 3,147 665 622 432 409 8.4 % 6.6 % 5.6 % Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Revenues Gross Margin % EBITDA EBITDA Margin
Slide 5: Key Highlights: Financial Update
Q1 FY18 RESULTS: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q1 FY18 Total Revenues increased by 8.4% YoY from Rs. 3,146.7 mn to Rs. 3,411.2 mn primarily driven by volume growth of 15.7% and adverse currency movement of -5.4%. • Region-wise growth YoY– Europe: -3.4%, NAFTA: 49.7%, LATAM: -26.5%, ROW 3.7% •
Slide 6: Division Wise Highlights
Q1 FY18 RESULTS: DIVISION WISE HIGHLIGHTS In Rs Mn Q1 FY18 YoY ANALYSIS: REVENUE BREAKUP 3,147 3,411 489 566 Division Revenue Share % Q1 FY18 Q1 FY17 13.7 % Agrochemicals 85.7% 82.0% 2,922 2,581 13.2 % Non-Agrochemicals 14.3% 18.0% Q1 FY17 Q1 FY18 Agrochemicals Non-Agrochemicals 6
Slide 7: Agrochemical Business
Q1 FY18 RESULTS: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,581 2,922 2,581 2,922 7.3% 7.7% 14.2% 10.4% 6.8% 26.1% 11.7% 37.2% 93.2% 52.4% 44.7% 88.3% Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Europe NAFTA LATAM RoW Formulations AIs • Revenues in NAFTA r
Slide 8: Agrochemical Business: Revenue by Product Type
Q1 FY18 RESULTS: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 1% 2% 21% 23% Q1 FY17 48% Q1 FY18 46% 30% 29% Herbicides Fungicides Insecticides Others Herbicides Fungicides Insecticides Others • Herbicides revenues have grown by 6.3% YoY in Q1 FY18 to Rs 1,338.7 m
Slide 9: Non-Agrochemical Business
Q1 FY18 RESULTS: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: PRODUCTWISE 566 489 566 489 18.1% 15.8% 9.1% 2.0% 19.2% 3.7% 43.4% 34.3% 98.0% 31.7% 96.3% 28.4% Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Europe NAFTA LATAM RoW Conveyor Belts General Chemicals • Revenues in NAFT
Slide 10: Working Capital Analysis
Q1 FY18 RESULTS: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 151 135 133 124 57 44 Q1 FY17 Q1 FY18 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS Q1 FY18: 75 Q1 FY17: 56 * Calculated on average inventory, receivables, creditors 10
Slide 11: Consolidated Profit & Loss Statement
Q1 FY18 RESULTS: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q1 FY18 Q1 FY17 YoY % FY17 Revenue from Operations 3,411.2 3,146.7 8.4% 13,992.3 COGS 2,308.5 2,016.7 14.5% 8,973.7 Gross Profit 1,102.7 1,129.9 -2.4% 5,018.6 Gross Margin 32.3% 35.9% -358 bps 35.9% Employee Expenses 76.5 6
Slide 12: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA and Latin America across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registration o
Slide 13: About Us: Our Presence
ABOUT US: OUR PRESENCE 13
Slide 14: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 16 % 13,992 CAGR: 22 % CAGR: 23 % 12,186 18% 20% 16% 22% 22% 14.1% 14.4% 13.6% 10,611 10.8% 11.6% 7,777 7,904 3,124 2,669 1,750 1,904 1,400 1,543 1,727 1,111 1,230 844 FY13 FY14 FY15 FY16 FY17 FY13 FY14
Slide 15: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Key Institutional Investors – 30th June 2017 % Holding Market Data As on 28th July 2017 DSP Blackrock Investment Manager 6.26% Market capitalization (Rs Mn) 43,766 HDFC MF 4.29% Price (Rs.) 485.1 Pinebridge 3.51% No. of shares outstanding (Mn) 90.2 Goldman Sachs 2.16
Slide 16: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 17: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities. Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider. Build own Sales Force Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India. E
Slide 18: For Further Queries
FOR FURTHER QUERIES: Mr. Conrad Fernandes Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: cfernandes@shardaintl.com Email: nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9819289131