Vishnu Chemicals Limited · NSE:VISHNU
Vishnu Chemicals — Q4 FY22 Earnings Presentation
27 slides from Vishnu Chemicals's earnings presentation, May 16, 2022
Slide 1: Exchange filing letter: Investor Presentation on Q4 & FY22 results
16th May, 2022 VCL/SE/12/2022-23 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 516072 NSE Symbol: VISHNU Sub: Investor Presentat
Slide 2: Q4FY22 & FY22 Update Investor Presentation
Q4FY22 & FY22 Update Investor Presentation May 2022 Performance Enhancing Speciality Chemicals 1
Slide 3: Q4FY22 & FY22 Performance Highlights
Q4FY22 & FY22 Performance Highlights 2
Slide 4: Revenues, EBITDA, PAT and EPS growth
Total EBITDA PAT Revenues +58% +100% +136% FY21 FY22 FY21 FY22 FY21 FY22 Rs 682 cr Rs 1075 cr Rs 80 cr Rs 161 cr Rs 34 cr Rs 81 cr 11.8% margin 15.0% margin For the first time Highest ever Record Rs.1000 cr sales milestone EBITDA & EBITDA Margin PBT more than tripled PAT more than doubled IMPROVED E
Slide 5: Focused on consistently delivering sustainable performance
Consolidated Consolidated Consolidated Debt to equity ratio Return on Capital Return on Equity 3.4 2.4 2.1 1.7 1.3 29% 25% 18% 13% 7% FY18 FY19 FY20 FY21 FY22 FY21 FY22 FY17 FY21 FY22 Interest coverage at 5x Strong return metrics SOUND Reduced interest costs consistently Improved internal ac
Slide 6: Consolidated financial results
FY22 FY22 FY22 Revenues EBITDA PAT +58% +100% +136% y-o-y y-o-y y-o-y Y-o-Y Q-o-Q Y-o-Y In Rs Cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 change change change Total Revenues 336 215 56% 299 12% 1075 682 58% EBITDA 53 26 106% 46 16% 161 80 100% EBITDA Margin 15.8% 12.0% +381 bps 15.4% +48 bps 15.0% 11.8% +317
Slide 7: Standalone financial results
FY22 FY22 FY22 Revenues EBITDA PAT +58% +107% +187% y-o-y y-o-y y-o-y Y-o-Y Q-o-Q Y-o-Y In Rs Cr Q4FY22 Q4FY21 Q3FY22 FY22 FY21 change change change Total Revenues 293 182 61% 259 13% 913 577 58% EBITDA 48 20 147% 39 25% 133 64 107% EBITDA Margin 16.5% 10.8% + 577 bps 15.0% +153 bps 14.5% 11.1% +343
Slide 8: Crosses Rs 1000 Cr sales milestone
CROSSES Rs 1000 Cr SALES MILESTONE Domestic and exports sales grew by 56% and 58% respectively in the last 12 months, despite FY22 PAT MORE THAN DOUBLED pandemic induced disruptions globally. RECORDS BEST EVER QUARTERLY AND Expansion of +317 bps in EBITDA margin y-o-y ANNUAL PERFORMANCE was aide
Slide 9: 33 years corporate legacy, integrated manufacturer
33 YEARS CORPORATE LEGACY. INTEGRATED MANUFACTURER. Accountability in every action MANUFACTURING UNITS Transparency 4 in every transaction PEOPLE 1000+ Dedication in every decision CUSTOMERS ACROSS 12+ SECTORS Collective in every concern EXPORTS 60+ COUNTRIES
Slide 10: Our Identity
Vishnu Chemicals epitomises manufacturing of high-performance speciality chemicals, with strong market Our Identity leadership and an intelligent symphony of forward and backward integration to produce world-class products that are focused on diverse needs and aspirations of our customers. Chromium
Slide 11: Chromium chemistry: key product and industry overview
Key product Sodium Dichromate (SDC): Na2Cr2O7 Basic Chrome Sulphate, Chrome Oxide Green, Chromic Acid, Potassium Dichromate, White Derivative products Sodium Sulphate. 700,000 MTPA is the global demand for Chromium chemicals growing at 6% p.a. India demand would be around 60,000 MTPA. This inclu
Slide 12: Diversified revenue profile and balanced geography mix
Developed flexible product mix EARLIER Finds Concentrated portfolio led to low operating levels Solution multi industry Better utilization applications with and exposed the business to multiple risks: implemented over hence operating wide geographical leverage DEVELOPED presence the years DERIVATIVE
Slide 13: Better product mix to drive volumes; stronger exports
Leading manufacturer in India & South Asia. Better product mix to drive volumes: Till FY16, the company was pretty much focused on two products. In the last few years, we have pivoted our strategy and invested and focused on derivatives to mitigate product and end use industry risk. Strengthened exp
Slide 14: Backward integration in progress
BACKWARD INTEGRATION IN PROGRESS • Commissioned in Q4FY22. • Debottlenecking operations at • One of its kind and complex integrated infrastructure. existing plant, which will lead to • Majority of our sodium carbonate’s current requirement will be met through the process. increase in capacity by nea
Slide 15: Barium subsidiary turnaround
From being a loss making facility during the acquisition in 2015, today the Barium subsidiary contributes to over 20% of consolidated profits. Led the growth from the front to And now the focus is to grow our emerge as one of the leading market share with higher volumes manufacturers globally. which
Slide 16: Barium chemistry: key product and industry overview
Key product Barium Carbonate: BaCO3 Global Barium Carbonate market size is USD 575 M growing at 3.4% CAGR. India demand is about 35,000 MTPA. Industry Overview ~40% of market share in India. Peers: Belgium, China. The construction and real estate industries have witnessed significant growth
Slide 17: Leading manufacturer in India; sustainability of realisations
Leading manufacturer in India: Other players have less Sustainability of higher realisations and margins: than 1/10th of Vishnu’s current capacity. The realisations per tonne have increased and are likely to sustain due to following reasons: Turned around ailing business segment post acquisition C
Slide 18: Subsidiary FY22 highlights
FY22 Highlights SUBSIDIARY FINANCIAL HIGHLIGHTS • Highest Operating Levels Ever. In Rs cr FY21 FY22 • Highest ever Sales, EBITDA and PAT. Income 113 175 • Contribution to Consol. Revenues & PAT is 16% & 20% % change y-o-y 56% respectively. EBITDA 18 30 • Domestic and exports sales grew by 22% and 84
Slide 19: Growth Drivers: In Progress
Growth Drivers: IN PROGRESS Commenced operations at brownfield expansion of Diversification: Brownfield expansion to increase in 50% capacity in Barium Chemicals in introduce a new speciality chemical to aid Q4FY22. Barium portfolio diversification and better Expect full effect of increased ca
Slide 20: 30+ years track record, flexible product mix
30+ years Greater Track record Portfolio Coherence Flexible Deep Process Product Mix Knowledge Efficient & Evolved Diversified Reliable Product Quality Applications Global Value accretive Reach & Opportunity Growth 19
Slide 21: Proximity to ports improves material handling
India ranks 18th in terms of global shipping tonnage. Most cargo ships sailing between East Asia and America, Europe, and Africa pass through Indian waters. That's not all. India has 12 'major' and more than 200 'non-major' ports. PROXIMITY TO PORTS IMPROVES MATERIAL HANDLING AND FACILITATES DELIVER
Slide 22: Global export reach
INDIA Vishnu Chemical exports its products worldwide by combining locations, trusted partners and loyal personnel enabling our customers to approach us anytime. Our representatives, contact persons are on almost every continent. These are important cornerstones of our cultural and business interacti
Slide 23: Continuous improvement in product quality
Continuous improvement in the quality of products by improving the process performance. High customer satisfaction with periodic checks. Input Output Best procurement processes to ensure consistent quality of raw materials. Installation of high quality control equipments ensures enhanced per
Slide 24: Going forward: positive and confident of continuing growth
Journey from modest origins. Manufacturing is our Going forward: focus. Leading position in India, operating in a market Positive and confident of with substantial barriers to entry. continuing the growth Across the world, our customers are looking at momentum in FY23 and pricing from the poin
Slide 25: Shareholding pattern and dividend track record
Shareholding Pattern as on 31 Mar 2022 Public Consistent Dividend Track Record 24.54% 2018 2019 FIIs/FPIs 2020 0.46% 2021 2022 Promoters 75.00% *Broker Coverages & Updates Edelweiss HDFC Retail Arihant Capital Wealth 24
Slide 26: Disclaimer
This presentation and the accompanying slides (the You acknowledge and agree that the Company and/or its The information contained in this Presentation is not to be "Presentation”) have been prepared by Vishnu affiliated companies and/or their respective employees taken as any recommendation made by
Slide 27: Contact
investors@vishnuchemicals.com www.vishnuchemicals.com 26