Laxmi Organic Industries Ltd. · NSE:LXCHEM
Laxmi Organic Industries — Q1 FY24 Earnings Presentation
19 slides from Laxmi Organic Industries's earnings presentation, Jul 31, 2023
Slide 1: Intimation of Analyst / Institutional Investors' meeting
July 31, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Bandra Kurla Complex, 1st Floor, New Trading Ring, Bandra (E), Rotunda Building, P. J. Towers, Mumbai – 400 051 Dalal Street, Fort, Trading Symbol: LXCHEM Mumbai – 400 001 Scrip Code
Slide 2: Geared to Win – Analyst Presentation Q1 FY24
Geared to Win – Analyst Presentation Investor Presentation – Q1 FY24 31 July 2023 www.laxmi.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Laxmi Organics Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the
Slide 4: Who we are?
Who we are? AI SI Specialty FI Acetyl Fluorine Intermediaries Intermediaries Intermediaries o #1 in India o #1 in India o USD 2.5 bn market o #3 globally (excluding China) o Top 5 globally o World class technology o Capacity > 232 kTPA o >30 products via R&D o Innovation, Safety & Diversification o
Slide 5: Our Journey Over Business Cycles
Our Journey Over Business Cycles 1.0 Laxmi Acquisition of Acquisition of Miteni – IPO Diketene Capacity Acquisitions 0.9 / Clariant’s diketene Fluorine Intermediates Listing Expansion Investments business Acquisition of 0.8 YCPL - ETAC 0.7 Global Financial Impact of COVID Economic 0.6 Crises Oil Pri
Slide 6: Geared to Win! Global leadership in our range of products
Geared to Win! 1 Global leadership in our range of products Ambitions… Cost leadership across the technology 2 platforms Historical Performance 1 Top 5 in our segments globally 2500 (INR Cr) 300 2,100 3 Large-scale, flexible and safe operations 2000 250 250 1,450 200 2 Continued leading cost positio
Slide 7: Positioning for the next Growth Phase
Positioning for the next Growth Phase Proven Success Customer Needs Innovation 1 2 3 4 Product Plant Platform Customer SI & FI Pivoting for the Next Growth Phase AI Price Product Specialty & Acetyl 1 2 3 4 Fluorine Intermediates Customer Platform Plant Product Intermediates LAXMI ORGANIC INDUSTRIES
Slide 8: Sharpening Business Focus
Sharpening Business Focus Various Customer Interaction Models (CIM) Trader / Lean/ reliable Standard package Product/ process Customized Value chain Business Transactional basics supplier provider innovator solution provider integrator Supplier Acetyl Intermediates Specialty Intermediates Fluorine I
Slide 9: Differentiated financial steering
Differentiated financial steering Essentials Specialties 1 2 3 4 5 Technology Ketene/ New Platforms Esterification Acetylation Diketene Fluorination Platforms… Asset Turns Asset Turns 3-5 1-2 Targeted EBITDA Margins EBITDA Margins Financial KPIs 8-12% 20-25% Combined ROCE 20% LAXMI ORGANIC INDUSTRIE
Slide 10: Growth Enablers – Innovation pipeline
Growth Enablers – Innovation pipeline 1 Continue to invest 2% of Specialties revenues for 1 Innovation Continue >20% Revenue Contribution from New 2 Products in Specialities* Strong Innovation Pipeline – 11 products are in pilot 3 and capex approval stage 4 Infrastructure - Miteni piloting assets al
Slide 11: Growth Enablers – Strategically located manufacturing sites
Growth Enablers – Strategically located manufacturing sites 2 1 Mahad (2 units) 2 Lote 3 Dahej • Land parcel: 40 acres • Land parcel: 86 acres • Land parcel: 30 acres • Land Occupancy: 90% • Land Occupancy: 0% (To be built) • Land Occupancy: 50% • Product Mix: • Product Mix (proposed): • Product Mix
Slide 12: Growth Enablers – Network and alliances
Growth Enablers – Network and alliances 3 Laxmi’s Board – Global leaders with best-in class independent governance Dr. Rajeev Vaidya Dr. Rajiv Banavali Manish Chokhani O.V. Bundellu Sangeeta Singh 30 years at Dupont Ex CTO – Honeywell Ex – MD and CEO Axis Ex – Dy. Managing Director Ex – ED
Slide 13: Living Our Values to Deliver our Ambitions
Living Our Values to Deliver our Ambitions Integrity Innovation To do what is right in the To create a culture where interest of all our stakeholders failure is the first step to with an unwavering focus success Customer Centricity Sustainability To improve the lives of our To make a positive impact
Slide 14: Business Update – Lote
Business Update –Lote Project Update Timelines o Cost to complete – INR 550 Cr o FY 24 – Complete commissioning and sampling o Project had delays and cost overrun o FY 25 – Ramp up production o COVID restrictions, rise in freight costs and EHS o Invested in infrastructure & utilities for future expa
Slide 15: Business Update – Board Approves Largest Investment at Dahej
Business Update– Board Approves Largest Investment at Dahej Leveraging… Investment at Dahej o Shifting of supply chains o INR 710 Cr over the next 3 years (China +1) o 20% of the land parcel to be occupied o Growing end products o Support customers growth and business continuity needs markets o Firs
Slide 16: Financial Update: Highlights Q1 FY24
Financial Update: Highlights Q1 FY24 Consol Revenue Consol EBITDA Consol CFO ROCE* ₹ 7,375m ₹ 813m ₹ 1,717m 15% 0% QoQ 26% QoQ 37% QoQ Vs 12% for FY23 -3% YoY -21% YoY 5% YoY *annualised RoCE Business Unit Business Unit Business Unit Specialties CM% Revenue EBITDA Export growth Essentials: 67% (vs 6
Slide 17: Financial Update: De-risked Business Model continues to Deliver
Financial Update: De-risked Business Model continues to Deliver Exports continue to remain relevant Diversified Industry Base Q1’24 % of sales Domestic Export 13% Pharma 14% Printing & packaging 45% Agro Colour & Pigment 60% 67% 64% 36% 62% 38% 31% 40% 33% 69% 28% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1
Slide 18: Financial Update – Consolidated Results Q1'24
Financial Update– Consolidated Results Q1’24 INR Mn Particulars Q1 FY24 Q4 FY23 QoQ (%) Q1FY22 Q1 FY23 YoY (%) Total Income 7,375 7,370 0% 7,587 -3% Cost of Materials 4,778 4,880 -2% 4,580 4% Gross Profits 2,597 2,490 4% 3,007 -14% Gross Margin (%) 35% 34% 142 bps 40% -442 bps Employee Cost 347 292
Slide 19: Thank you!
Thank you! For further information, please contact: Kruti Patel Aniket Hirpara kruti@GoIndiaadvisors.com investors@laxmi.com M:+91 8108933441 M:+91 7666830913
Laxmi Organic Industries — Q1 FY24 Earnings Presentation on 6ix