Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Investor Presentation (February 2018)
32 slides from Aksharchem India's investor presentation, February 2018
Slide 1: AksharChem (India) Limited Investor Presentation
AksharChem (India) Limited Investor Presentation February 2018
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 Total Volume (MT) +25% +9% • Our Business continues 1,843 6,268 to grow on Volume 5,741 1,476 basis making it more sustainable • Decrease in Revenue was larger on back of Q3 FY17 Q3 FY18 9M FY17 9M FY18 correction in Total Revenue* ( Rs Crores) Realisations compared to last year •
Slide 5: Result Highlights
Result Highlights Raw Material % to Sales Total Volume (MT) 2,268 2,157 60.2% 60.3% Increase in Raw 1,986 Material cost due to 1,843 58.5% 1,715 China situation 54.7% From Q2FY18 – Raw Material cost increases are being passed on to 44.4% customers 42.6% Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18* Q2 FY18* Q3 F
Slide 6: Update on the Capex
~ Update on \ the Capex
Slide 7: Capacity Utilisation
Capacity Utilisation Installed Capacity Production Capacity Utilisation 94% 9,720 9,720** 9,240 9,240 80% 80% 75% 74% 7,800 7,786 7,428 6,881 6,000 6,107 5,642 5,838 FY13 FY14 FY15 * FY16 FY17* 9M FY18 * Pigments added in FY15 & FY17 with capacity of 1,440 TPA & 480 TPA respectively **Capacity avail
Slide 8: Update on Expansion Plan
Update on Expansion Plan Capital Expenditure Plan Existing Capacity Additional Capacity Post Expansion Capacity Approx. Cost of Project Proposed Projects (In TPA) (In TPA) (In TPA) (Rs. In Crore) ORGANIC PIGMENTS CPC Green (Phase 1) 1,920 480 2,400 85 CPC Green (Phase 2) 2,400 1,800 4,200 CPC Blue -
Slide 9: Company Overview
Company Overview 9
Slide 10: 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 11: 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 12: 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 12
Slide 13: 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 13
Slide 14: 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 14
Slide 15: 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 16: 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 16
Slide 17: 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 18: 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 19: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Founder, Chairperson & Mg. Director Jt. Managing Director & CEO 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 20: With Awards & Accolades
With Awards & Accolades • Third Award for self manufactured direct export of Dye Intermediates during the year 2015-16 • Trophy for self manufactured domestic sale of Dye Intermediates of more than Rs. 5 Crores 2017-18 but less than Rs. 25 Crores during the year 2015-16 • SME Business Excellence Awa
Slide 21: Business Strategy
21 - .Business Strategy
Slide 22: 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 23: … 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 24: Industry Opportunity
24 -. Industry -- Opportunity
Slide 25: 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 26: 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 Treatment key in Chemical Industry Pigment Customer Rela
Slide 27: Financials
Financials 27
Slide 28: Key Financial Parameters
Key Financial Parameters In Crs. Gross Profit EBITDA EBITDA 134 79 52% 89% 74 78 76 64 33 32 32 27 25 6 FY13 FY14 FY15 FY16 FY17 9M FY18 FY13 FY14 FY15 FY16 FY17 9M FY18 PAT Cash PAT 52 57 92% 84% 26 30 20 21 20 21 16 17 4 5 FY13 FY14 FY15 FY16 FY17 9M FY18 FY13 FY14 FY15 FY16 FY17 9M FY18 28
Slide 29: 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 1.2 1.1 1.3 1.0 0.0 Mar-13 Mar-14 M
Slide 30: Profit & Loss Statement
Profit & Loss Statement* Particulars (In Crs.) Q3 FY18 Q2 FY18 Q-o-Q Q3 FY17 9M FY18 9M FY17 Net Revenue from Operations 59 66 -10% 64 188 202 Raw Material 34 40 27 112 93 Employee Expenses 3 2 2 6 5 Other Expenses 13 13 11 38 35 EBITDA 9 11 -20% 24 32 70 EBITDA % 15% 17% 38% 17% 34% Other Income 2
Slide 31: 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 32: 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. Khushbu Shah cs@aksharchemindia.com neha.shroff@sgapl.net / khush
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