Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q4 FY22 Earnings Presentation
26 slides from Tata Chemicals's earnings presentation, Apr 29, 2022
Slide 1: Submission of Analysts/Investors Presentation
April 29, 2022 The General Manager The Manager Corporate Relations Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra-Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 500770 Symbol: TA
Slide 2: Tata Chemicals Investors Communication Q4 FY22
qp TATA TATA CHEMICALS Investors Communication Quarter & Year Ended Mar 2022 : Q4 FY22 Responsive. Resilient. Responsible.
Slide 3: Forward-looking statements disclaimer
“This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of thes
Slide 4: Company history and footprint
Till FY18 FY19 FY20 FY21 FY17 Divestment of Urea Divestment of Investment approval Completed Business Phosphate Fertiliser for expansion of Demerger of Business Mithapur operations Consumer Products Business Started to build 5,000 MT Prebiotic plant Acquired Silica Plant Focused Chemistry for HDS So
Slide 5: India operations: products and capacity
India India Rallis India Limited* Major Soda ash, Bicarb, Salt, Marine chemicals Prebiotics Crop Care, Crop Protection and Seeds Products and Cement Specialty silica (herbicides, fungicides and insecticides, etc) Soda Ash: 9,17,000 MTPA Installed Prebiotic: 5,000 MTPA Bicarb: 105,500 MTPA Capacity S
Slide 6: US, UK and Kenya operations: products and capacity
US UK Kenya Major Soda Ash, Bicarb, Soda Ash Soda Ash Products Salt Soda Ash: 400,000 MTPA Installed 2,540,000 MTPA Bicarb: 130,000 MTPA 350,000 MTPA Capacity Salt: 430,000 MTPA Lostock & Winnington, Location Wyoming, US Middlewich, UK Magadi, Kenya 5
Slide 7: TCL Innovation Centre
TCL Innovation Centre 200+ Technically skilled Scientists in R&D 3 State-of-the-art innovation Centers Intellectual property |177 patents held; 114 Active Applications Rallis India R&D 6
Slide 8: Demand and Supply Update; TCL Soda Ash market applications
Demand and Supply Update TCL Soda Ash : Market Applications Demand growth remains strong across all applications Others, 15% Detergents, Global soda ash supply remained tight with all plants 17% running at high operating rates Limited capacity addition expected in the near to Chemicals, Flat G
Slide 9: Financial Highlights
Financial Highlights Quarter & Year Ended Mar 2022 : Q4 FY22
Slide 10: Q4 FY22 financial highlights
₹ 3,481 Cr ₹ 657 Cr (19%) ₹ 470 Cr (14%) ↑ ₹ 844 Cr vs. Mar21 ↑ ₹ 375 Cr vs Mar21 ↑ ₹ 441 Cr vs Mar21 Soda Ash Volumes Q4 FY 22 937 Kts Q4 FY 21 886 Kts Robust demand across product portfolio for all geographies Consolidated Revenue grew by 32% vs PY and EBITDA grew by 133% Salt Volumes Q4 FY 22 417
Slide 11: Quarterly standalone and consolidated results
Standalone | ₹ Crore 1,115 EBITDA EBITDA margin Profit Before Tax PBT margins Profit After Tax PAT margins 931 841 28% 30% 350 30% 30% 26% 240 240 220 25% 25% 300 23% 25% 220 24% 25% 20% 19% 200 250 200 277 20% 20% 20% 180 244 200 180 14% 17% 268 315 15% 15% 15% 160 160 150 164 214 140 140 158 10% 1
Slide 12: Full-year standalone and consolidated results
Standalone | ₹ Crore 3,721 EBITDA EBITDA margin Profit Before Tax PBT margins Profit After Tax PAT margins 2,999 1,200 30% 27% 1,000 30% 900 25% 26% 21% 900 800 1,000 25% 25% 20% 800 20% 20% 700 700 600 20% 800 988 20% 600 16% 15% 951 500 787 500 15% 600 15% 400 611 614 400 10% 479 10% 300 300 400 1
Slide 13: Segment revenues and results
Consolidated Standalone ₹ Crore Q4 Mar21 Q3 Dec21 Q4 Mar22 Variance Q4 Mar21 Q3 Dec21 Q4 Mar22 Variance Basic Chemistry Products 2,111 2,448 2,902 790 792 869 1,046 254 Segment Revenues Specialty Products 520 679 564 45 49 50 57 8 Less: Inter Segment Revenue (1) (5) (4) (3) - - - - 2,630 3,122 3,462
Slide 14: Energy inputs and contribution
Material India US UK Kenya Input Costs have gone up across units Energy Inputs Coal • Gas price spiked in Q4 and remains at Gas elevated levels Heavy Fuel Oil (HFO) • Coal and freight costs remain high compared Consolidated Standalone to historical trends ₹ Crore Mar-21 Mar-22 Growth Mar-21 Mar-22 G
Slide 15: Revenue, EBITDA and PAT trends
Standalone | ₹ Crore Consolidated | ₹ Crore 1,115 3,481 1,200 931 4,000 841 847 2,977 3,023 3,142 812 828 3,500 1,000 717 2,609 2,606 2,636 2,348 3,000 800 628 Revenue 2,500 600 2,000 1,500 400 1,000 200 500 - - Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY21 Q2 FY21 Q3 FY21
Slide 16: Balance sheet
Consolidated Standalone Rs Cr 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 Non - Current Assets 21,691 25,098 11,789 14,170 Inventories 1,687 2,294 522 880 Investments 1,563 1,325 1,282 1,113 Trade Receivables 1,397 1,933 145 182 Cash and Cash Equivalents 1,411 1,310 685 493 Others Current Assets 588 1,8
Slide 17: Soda ash, bicarb and salt volumes
Soda Ash | In Kts Sodium Bicarbonate | in Kts Salt | in Kts India US UK Kenya India UK India UK 886 937 904 972 58 59 59 59 396 417 365 418 68 75 71 70 67 70 82 85 95 91 96 93 29 30 30 28 566 615 544 611 302 325 299 325 29 29 29 31 184 176 207 206 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar
Slide 18: Sales volumes by unit
Domestic Domestic Exports US delivers robust sales volumes on the back of India | In Kts US | In Kts 184 188 176 617 159 151 168 167 156 553 568 578 613 588 strong export demand. 475 475 118 389 257 309 317 353 320 323 197 181 139 295 250 278 295 259 261 260 268 294 India, UK and Kenya sales - -
Slide 19: Entities key highlights: TCL India and Rallis
Entities Key Highlights TCL India → Revenue for India business stood at ₹ 1,115 Cr (up 33%), EBIT was ₹ 218 Cr up (vs ₹ 112 Cr PY). → Robust performance delivered on the back of steady volumes and operational excellence and efficiencies → Revenue at ₹ 507 Cr vs ₹ 471 Cr and EBIT stood at ₹ (20) Cr v
Slide 20: Entities key highlights: US, UK, Kenya
Entities Key Highlights → Revenue at ₹ 1,092 Cr (up by 35%) and EBIT was ₹ 195 Cr (vs. ₹ (19) Cr PY) US → US volumes remain strong with growth in domestic and export market. Export prices back to pre covid levels. Gas prices spiked during the quarter and remains at elevated levels. → Revenue at ₹ 57
Slide 21: Statement of profit and loss by entity
Statement of Profit and Loss for the quarter ended Mar22 Units TCL India US UK Kenya Rallis Consolidated ₹ Cr PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var Revenues 841 1,115 273 807 1,092 285 383 576 192 115 171 56 471 507 36 2,636 3,481 844 EBITDA 164 277 112 63 275 212 19 41 22 20 6
Slide 22: Invest and grow in India; focus on cash generation
• Deliver consistent market and customer delivery performance • Deliver capacity expansions on schedule - First phase of Soda Ash, Bicarb & Salt expansion on stream by FY23 TCL • Continue focus on costs • Qualification with customers on Prebiotics & Silica • Extend Portfolio offerings: New product i
Slide 23: ESG initiatives
ESG initiatives Priorities Focus Areas Climate Signed SBTi and taken absolute carbon • Fuel Change, Energy efficiency, renewable energy & Change emission reduction target CCU & usage. • Water harvesting and conservation Circular Water Neutrality, zero solid waste and • Solid waste recycle & cement p
Slide 24: Expansion project current status
Phase I expansion (current) Phase II expansion (planned) Capacity (Lacs MT) Incremental Capacity Products H1 FY23 H2 FY23 H1 FY24 H2 FY24 Products Current Additional (after Phase I) Soda Ash 9.17 2.30 0.45 1.85 Soda Ash ~30% Bicarb 1.05 0.70 0.70 Bicarb ~40% Salt 11.70 3.30 3.30 Silica 5x Till March
Slide 25: Awards and recognition
Tata Chemicals bagged the award in circular economy and carbon CEAT Ltd. Confers Tata Chemicals with “Innovation Award” neutrality innovations category at the 15th edition of Quality for HDS Innovations Awards 2021. Tata Chemicals along with TCPL, Tata Insights and Quants bagged Best Corporate Award
Slide 26: Contact details
For any queries please contact below : Sridhar Radhakrishnan rsridhar@tatachemicals.com Sameer V Kulkarni sakulkarni@tatachemicals.com Gavin Desa gavin@cdr-india.com Suraj Digawalekar suraj@cdr-india.com 25