Shree Pushkar Chemicals & Fertilisers Ltd. · NSE:SHREEPUSHK
Shree Pushkar Chemicals & Fertilisers — H1 FY17 Earnings Presentation
32 slides from Shree Pushkar Chemicals & Fertilisers's earnings presentation, November 2016
Slide 1: Shree Pushkar Chemicals & Fertilisers Ltd Investor Presentation Q2 & H1FY17
Shree Pushkar Chemicals & Fertilisers Ltd Investor Presentation Q2 & H1FY17 November 2016 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shree Pushkar Chemicals & Fertilisers Limited Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purch
Slide 3: Q2FY17 Highlights
Q2FY17 Highlights Consistently Improving Performance Total Revenue 32.8% Rs 81.15 Crs • Dye contribution of 10% in revenue • Robust growth in Dye Intermediates EBIDTA Better operating leverage 90.5% Rs 15.88 Crs • Steady raw material costs (Margin 19.6%) Higher expenses not a deterrent to PAT perfor
Slide 4: H1FY17 Segmental Highlights
H1FY17 Segmental Highlights • Acid Complex Division had higher captive utilization leading to lower Revenue Break up H1FY17 external sales 6.5% Dye Intermediates Acid Complex Flat Volumes 14.7% 21% volume growth 1.9% 4.1% 29% Revenue growth 22.6% Revenue de-growth 72.8% Cattle Feed Fertiliser -2% vo
Slide 5: Financial Highlights
Financial Highlights Particulars (Rs. In Crs) Q2FY17 Q2FY16 Y-o-Y Q1FY17 Q-o-Q H1FY17 H1FY16 Y-o-Y Net Sales 80.37 60.46 63.26 143.62 120.41 Other Income 0.78 0.64 1.17 1.95 0.94 Total Revenue from Operations 81.15 61.10 32.8% 64.43 26.0% 145.58 121.35 20.0% Cost of Material Consumed 52.22 43.31 43.
Slide 6: Balance Sheet
Balance Sheet Liabilities (Rs in Crs) Sept-16 Mar-16 Assets (Rs in Crs) Sept-16 Mar-16 Shareholders Fund 178.21 163.13 Total Non Current Assets 120.11 105.93 Share Capital 30.22 30.22 Fixed Assets (including CWIP) 109.79 95.07 Reserves & Surplus 147.99 132.91 Non Current Investments 0.05 0.05 Total
Slide 7: Product launches pipeline
Product launches pipeline New Capacity/ Description Products Current Capacity Status Expansion 3000 MTA Marginal Capex of Forward Integration Reactive Dyes (On stream in Jan 3000 MTA ~Rs 5Cr 2016) Expected by Q3 FY17 H – Acid 2,400 MTA 750 MTA Expected by H2 FY17 Captive Consumption in Dyes Plant Co
Slide 8: Commenced Operations for New Reactive Dyes Plant
Commenced Operations for New Reactive Dyes Plant Capacity of 3000 MTA At Lote Parshuram, Maharashtra New Quality Control Laboratory Sales commenced in May 2016 8
Slide 9: Reactive Dyes… A Forward Integration
Reactive Dyes… A Forward Integration Reactive Dyes : a class of highly coloured organic substances, primarily used for dyeing textiles, for cellulosic fibers like cotton/flax & also wool that attach themselves to their substrates by a chemical reaction that forms a covalent bond between the molecule
Slide 10: Fertiliser - NPK
Fertiliser - NPK NPK fertilizer is primarily composed of three main elements: Nitrogen (N), Phosphorus (P), and Potassium (K) Company has received a license for manufacture of Mixed NPK Fertilizer NPK in the state of Maharashtra Sold under Marketing tie-up with DCM Shriram Capacity Launched
Slide 11: Fertiliser - Sulphate Of Potash (SOP)
Fertiliser - Sulphate Of Potash (SOP) As Fertiliser ₋ SOP is a preferred form of potassium in saline or sodic soil conditions and where irrigation water may have high chloride levels SOP Commercial Production at SOP plant commenced in the end of September 2016 Capacity ₋ Commissioned on 1st Augu
Slide 12: Future Growth Indicators
Future Growth Indicators Plant Commissioned Maintaining steady growth in Reactive Dyes current business • Capacity commissioned on 28th Jan Consolidated business growth at a 2016 CAGR of 19% over the past 5 years • Capacity – 3,000 MTA Zero Waste Chemical Plant Company Plant Commissioned Commissione
Slide 13: Utilization of IPO Proceeds
Utilization of IPO Proceeds Total Spent/Utilisation Objects of the issue Amount Pending Particulars (Rs Crs) upto September 30th as per prospectus Utilisation 2016 Acquisition of Existing Factory at B-97, Lote 2.29 2.29 - Parshuram Construction of Godown at unit II 2.38 2.38 - Amount Spent for setti
Slide 14: Business Details
The chemistry Behind colours... Business Details 14
Slide 15: The Chemistry Behind Colours
The Chemistry Behind Colours India’s largest manufacturer of K Acid Established in 1993 as a Chemical Trading company Single location plant at Lote Parshuram Products across Dyes, Dye Intermediates, Acid Complex, Cattle Feed Supplement & Fertilizers Marketing through +300 dealers across Maharashtra,
Slide 16: Key Milestones
Key Milestones 2007 Recycling of effluents from Cattle Feed 2002 Backward Dye Intermediates 2010 Backward Integration for In- Division Entered New Acid Complex Integration house Raw SegmentEntered New Material & Cost Segment Efficiencies 2001 Dye Change of Focus Zero Waste Chemical from Trading to I
Slide 17: Single Location Plants in Lote Parshuram, Maharashtra
Single Location Plants in Lote Parshuram, Maharashtra New Reactive Dyes Plant Unit 1 – Dye Intermediates Unit 2– Granulation Plant Unit 3 Sulphuric Acid Plant New Quality Testing Lab for Dyes Only manufacturing unit with a basket of Dye-intermediates “One Stop Shop for Dye Manufacturers” 17
Slide 18: Key Management
Key Management Punit Makharia Chairman & Managing Director A first generation entrepreneur, he holds a Bachelors in Commerce with a rich business experience of over 2 decades in dealing with chemical and dyes intermediates Gautam Makharia Ratan Jha Dilip Shah R Purohit S N Sengupta Managing Director
Slide 19: Business Overview
Business Overview % of H1 FY17 Business Details Products Industries Revenue Verticals Products manufactured from organic Gamma Acid, K- Acid, R-Salt, Dye Manufacturers of Synthetic 72.8% chemicals and are further processed to Vinyl Sulphone, Meta Ureido Intermediates Dyes obtain dyestuff Aniline and
Slide 20: Dye Intermediates
Dye Intermediates One of the few manufactures of wide range of dye Product offerings for intermediates in India with zero waste Dyestuff Manufacturers State of art integrated manufacturing facilities located at Lote Parshuram, Maharashtra Gamma Acid Total Capacity of 7,836 MTA Meta Ureido Am
Slide 21: Dye Intermediates
Dye Intermediates 2001 – 2006 Inputs Purchased Final Output Production of Gamma Acid and K – Acid B-Napthol Gamma Acid Lower cost efficiencies due to Effluents generated K-Acid Effluents Generated 2006 – till date Creating a Waste to Wealth manufacturing R Salt model with smart use R- Complex
Slide 22: Evolution Towards Cattle Feed and Fertiliser
Evolution Towards Cattle Feed and Fertiliser 2007 – till date Inputs Purchased Final Output Exclusive marketing arrangement with Shriram Chemical & Effluents Generated Fertilizers for Single Super Phosphate in Maharashtra and Karnataka Spent Acid Di Calcium Phosphate (From Dye Tie-up with Shivam
Slide 23: Evolution Towards Acid Complex and Power
Evolution Towards Acid Complex and Power 2009 – till date Inputs Purchased Final Output Sulphuric acid is a major raw material in solphonation in all Effluents Generated chemical industry and phosphoric acid industry Capacity of 40,000 MTA Sulphuric Acid Excess Spent Acid from Sulphur Spent Ac
Slide 24: Client Profile
Client Profile Domestic Clients International Clients Own Brand Exclusive marketing arrangement with DCM Shriram Chemical & Fertilizers for Single Super Phosphate in Maharashtra and Karnataka Tie-up with Shivam Chemicals for marketing of Di-Calcium Phosphate in Karnataka Launched its own soil
Slide 25: Key Strengths
Key Strengths Low Financial Leverage Zero Waste 05 01 Recycle of Effluents to generate A Zero Debt Company with new products Debt to Equity nearly NIL Single Location Plant 06 Internal Power Generation All Facilities within MIDC, Lote 02 Use of High Pressure Steam Parshuram, Maharashtra generated fr
Slide 26: Financials
The chemistry Behind colours... Financials 26
Slide 27: Strong Financial Performance
Strong Financial Performance CAGR from FY12 to FY16 PAT EBITDA Total Revenue +18% +43% +14% CAGR CAGR CAGR Improved Margins up Margins up Product Mix from 12% to 14% from 4% to 9% Along with a strong Balance Sheet 27
Slide 28: Segmental Performance
Segmental Performance (Rs in Cr) Revenue +10% +22% 201.2 48.2 48.7 165.4 170.4 128.1 35.1 114.8 31.0 21.8 FY12 FY13 FY14 FY15 2016 FY12 FY13 FY14 FY15 FY16 Dye Intermediates Fertilisers -2% +21% 16.3 6.5 6.1 6.0 5.2 5.3 10.3 7.7 7.7 7.7 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Acid Complex
Slide 29: Key Financial Parameters
Key Financial Parameters (Rs in Cr) Margin % 11.9% 13.2% 14.0% 11.9% 13.9% +14% +18% 267 251 34.9 29.4 31.8 210 177 23.3 151 17.9 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Total Revenue from operations EBIDTA 9.6% 10.9% 11.8% 10.6% 12.4% 3.5% 4.1% 4.9% 7.0% 8.9% +21% 31.1 22.3 28.2 +43% 18.7
Slide 30: Key Financial Parameters
Key Financial Parameters (Rs in Cr) Net Debt ROE % 21.1% 16.3% 13.7% 13.7% 74 11.1% 53 58 22 -24 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16* Net Debt to Equity ROCE % 30.9% 30.6% 28.4% 25.4% 18.4% 1.4 1.2 0.9 0.3 -0.1 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 * Mar-12 Mar-13 Mar-
Slide 31: Historical Profit & Loss
Historical Profit & Loss Particulars (Rs. In Crs) FY16 FY15 FY14 FY13 FY12 Total Revenue 248.70 266.52 210.09 175.98 150.71 Other Income 2.54 0.29 0.28 0.59 0.26 Total Revenue from Operations 251.24 266.81 210.37 176.57 150.97 Raw Material 175.29 195.46 150.58 129.88 116.39 Employee Expenses 10.17 9
Slide 32: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : Shree Pushkar Chemicals & Fertilisers Ltd Strategic Growth Advisors Pvt. Ltd. CIN: U24100MH1993PLC071376 CIN: U74140MH2010PTC204285 Mr. S N Sengupta, Associate Director Ms. Ruchi Rudra/ Ms. Samantha Francis sengupta@shre
Shree Pushkar Chemicals & Fertilisers — H1 FY17 Earnings Presentation on 6ix