Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q2 FY22 Earnings Presentation
25 slides from Tata Chemicals's earnings presentation, Oct 27, 2021
Slide 1: Submission of Analysts/Investors Presentation cover letter
October 27, 2021 The General Manager The Manager, Listing Department Corporate Relations Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street Mumbai 400 051 Mumbai 400 001 Symbol: TATACHEM Scrip Code: 5
Slide 2: Tata Chemicals Investors Communication Q2 FY22
qp TATA TATA CHEMICALS Investors Communication Quarter & Half Year ended Sept 2021 : Q2 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 journey and footprint
Till FY18 FY19 FY20 FY21 FY17 Divestment of Divestment of Investment Completed Urea Business Phosphate approval of ₹ Demerger of Fertiliser Business 2,700 Cr for Consumer expansion of Products Business Started to build Mithapur 5,000 MT operations Prebiotic plant Acquired Silica Focused Chemistry Pl
Slide 5: India businesses: Basic Chemistry, Specialty Products, Rallis
Basic Chemistry Products Specialty Products 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 MTP
Slide 6: International operations: US, UK, Kenya
US UK Kenya Soda Ash, Bicarb Major Soda Ash Salt Soda Ash Products Soda Ash: 400,000 MTPA Installed Bicarb: 130,000 MTPA 2,540,000 MTPA 350,000 MTPA Capacity Salt: 430,000 MTPA Lostock & Winnington, UK Location Wyoming, US Middlewich, UK Magadi, Kenya 5
Slide 7: TCL Innovation Centre
TCL Innovation Centre 225 Technically skilled Scientists in R&D 3 State-of-the-art innovation Centers Strong intellectual property |157 patents held (cumulative); 97 Active Applications Rallis India R&D 6
Slide 8: Financial Highlights
Financial Highlights Quarter & Half Year ended Sept 2021 : Q2 FY22
Slide 9: Q2 FY22 consolidated highlights
₹ 3,023 Cr ₹ 501 Cr (17%) ₹ 248 Cr (8%) ↑ 16% vs. Sept20 ↑ 30% vs Sept20 ↑ 87% vs Sept20 Soda Ash Volumes Q2 FY 22 946 Kts Q2 FY 21 744 Kts Robust volumes growth vs PY across products (Soda ash (27%), Salt (5%) & Bicarb (6%)) Soda Ash pricing improving across all geographies Salt Volumes Q2 FY 22 40
Slide 10: Standalone and consolidated quarterly results
Standalone | ₹ Crore 828 847 EBITDA EBITDA margin Operational PBT Non Operational PBT Profit After Tax PAT margins 717 29% 100 % 240 30% 90% 28% 23% 30% 166 282 177 80% 240 220 28% 70% 25% 220 26% 200 60% 200 24% 180 19% 50% 22% 45 180 16% 239 101 16% 20% 160 228 20% 103 40% 160 192 18% 140 30% 140
Slide 11: Year-to-date September results
Standalone | ₹ Crore 1,675 500 26% 30% Non Operational PBT Profit Before Tax 400 22% 25% 450 1,345 350 25% 18% 400 20% 20% 300 350 20% 308 459 250 300 15% 363 250 15% 430 200 200 10% 146 150 272 141 244 10% 150 100 100 313 5% 167 5% 50 50 - 0% - 0% YTD Sept20 YTD Sept21 YTD Sept20 YTD Sept21 YTD Sep
Slide 12: Segment revenues and results
Consolidated Standalone ₹ Crore Var vs. PY Var vs. PY Q2 Sept20 Q1 Jun21 Q2 Sept21 Q2 Sept20 Q1 Jun21 Q2 Sept21 (Sep20 Vs Sep21) (Sep20 Vs Sep21) Basic Chemistry Products 1,839 2,173 2,235 396 677 770 791 114 Segment Revenues Specialty Products 766 797 786 20 41 57 58 18 Less: Inter Segment Revenue
Slide 13: Utilities and input cost headwinds
Material India US UK Kenya Headwind on Input Costs Coal • Gas price has gone up substantially Utilities Gas • Coal price (including higher freight) has Heavy Fuel Oil (HFO) gone up 4x Standalone Consolidated • Carbon UK ETS prices up from GBP 25-30 ₹ Crore Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 p
Slide 14: Balance sheet
Consolidated Standalone ₹ Crore 31-Mar-21 30-Sept-21 31-Mar-21 30-Sept-21 Non - Current Assets 21,691 23,518 11,789 12,938 Inventories 1,687 1,873 522 675 Investments 1,563 1,506 1,282 1,279 Trade Receivables 1,397 1,668 145 157 Cash and Bank Balance 1,411 1,315 685 441 Others Current Assets 588 1,2
Slide 15: Quarterly revenue, EBITDA and PAT trends
Standalone | ₹ Crore Consolidated | ₹ Crore 812 841 828 847 2,977 3,023 717 900 3,500 800 628 2,609 2,606 2,636 2,348 3,000 700 2,500 Revenue 600 2,000 500 400 1,500 300 1,000 200 500 100 - - Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 29% 20% 25%
Slide 16: Soda ash, bicarb and salt volumes
Soda Ash | In Kts Sodium Bicarbonate | in Kts Salt Portfolio | in Kts India US UK Kenya India UK India UK 744 946 771 970 52 55 51 51 382 402 369 387 80 82 83 86 87 77 68 79 25 21 65 27 26 51 67 87 613 613 475 453 295 320 292 304 30 30 25 25 151 178 166 198 Sep-20 Sep-21 Sep-20 Sep-21 Sep-20 Sep-21
Slide 17: Soda ash sales volumes by region
Overall Soda Ash sales volumes back to pre COVID levels Domestic Domestic Exports →India volumes robust especially from flat and 400 1,40 0 350 1,20 0 India | In Kts container glass business. US | In Kts 300 184 1,00 0 168 167 178 613 250 163 154 158 159 541 570 571 553 568 580 151 800 475 475 →UK s
Slide 18: Basic Chemistry Products key highlights
Key Highlights Segment Revenue at ₹ 2,235 Cr (up by 22%) → Revenue at ₹ 791 Cr (up 17%), EBIT was ₹ 195 Cr up (vs ₹ 121 Cr PY). Segment results at ₹ 279 Cr (up by 84%) India → Margins improved on account of higher volumes and increase in prices largely offset by higher raw materials and energy cost,
Slide 19: Specialty Products and Agri Science highlights
Key Highlights Segment Revenue at ₹ 786 Cr (up by 3%) Segment results at ₹ 58 Cr vs ₹ 90 Cr PY → Revenue increased for the quarter to ₹ 58 Cr (up by 43%), on the back of higher sales Specialty volumes across products portfolio. Products → Export market gaining traction for FOS products → Food grade
Slide 20: Statement of Profit and Loss by geography
Statement of Profit and Loss for the quarter ended Sept21 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 717 847 130 711 867 156 337 416 79 91 140 49 724 727 3 2,609 3,023 414 EBITDA 116 192 76 96 196 100 46 (18) (64) 6 33 27
Slide 21: Current year and near-term outlook
Current Year Near Term • Grow volumes & maximize realizations in soda ash (price • First tranche of Soda Ash, Bicarb & Salt expansion on stream increased in Q2 FY22) by FY23, delivering incremental revenues Standalone • Timely execution of capacity expansion: Salt 165k MT by • Continue focus on cost
Slide 22: ESG initiatives
ESG initiatives Priorities Focus Areas Climate Signed SBTi and taken absolute • Fuel Change, Energy efficiency, renewable energy Change carbon emission reduction target & CCU & usage. • Water harvesting and conservation Circular Fresh Water Neutrality, zero solid • Solid waste recycle & cement plant
Slide 23: Awards and recognition
Tata Chemicals wins Dun & Bradstreet award for Tata Chemicals bags 3 Platinum prizes at CII's 15th ESG Performance in the Manufacturing category Six Sigma National Competition Tata Chemicals bags 4th spot in Responsible Business Ranking Tata Chemicals receives DSIR recognition for 2021 (Study carrie
Slide 24: Earnings per share, exchange rates and shareholding pattern
Consolidated Earnings Price Per Share | In ₹ Exchange | Average rate per ₹ 11.3 USD GBP 7.9 6.3 103.16 102.61 95.19 95.99 97.09 2.8 75.07 74.63 74.21 73.73 73.91 0.5 0.5 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Shareholding Pattern as on Sept 21 | In % Non i
Slide 25: Investor contacts
For any queries please contact below : Nandakumar Tirumalai nandu@tatachemicals.com Sridhar Radhakrishnan rsridhar@tatachemicals.com Sameer Kulkarni sakulkarni@tatachemicals.com Gavin Desa gavin@cdr-india.com Suraj Digawalekar suraj@cdr-india.com 24