Ghcl Limited · NSE:GHCL
Ghcl — Q3 FY2024 Earnings Presentation
26 slides from Ghcl's earnings presentation, Feb 3, 2024
Slide 1: Intimation to stock exchanges: Investors' Presentation Q3FY24
February 3, 2024 माघ – कृष्ण प�- अष्टमी �वक्रम संवत, २०८० National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1st Floor, New Trading Ring, Rotunda Building, P.J. Bandra – Kurla Complex, Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort, Mumb
Slide 2: GHCL Limited Q3 FY24 Investor Update
GHCL Limited Q3 FY24 Investor Update February 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company” or “GHCL”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Management commentary
Management commentary Commenting on the Q3 FY24 performance, Mr. R. S. Jalan, MD said: “In the third quarter of the current fiscal year, our performance moderated in line with prevailing industry dynamics, characterized by weak demand trends globally particularly Europe. We have seen an oversupply s
Slide 5: Performance highlights – Q3 FY24
Performance highlights – Q3 FY24 Revenue EBITDA PAT Cash Profit Q3 FY24 Vs Rs. crore 813 165 100 126 Q3 FY23 (Y-o-Y) % Change (27)% (56)% (61)% (55)% 4
Slide 6: Performance highlights – 9M FY24
Performance highlights – 9M FY24 Revenue EBITDA PAT Cash Profit 9M FY24 Vs Rs. crore 2659 699 450 526 9M FY23 (Y-o-Y) % Change (23)% (39)% (43)% (38)% Note: Excluding exceptional profit on demerger of spinning business amounting to Rs. 219 Crore 5
Slide 7: Q3 FY24 highlights
Q3 FY24 highlights (Rs. In Crore) Quarterly Trend Particulars Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 34% 32% 30% 28% Revenue 813 1,107 (27%) 817 (0.5%) 20% EBITDA 165 372 (56%) 224 (26%) 1,107 372 1,141 370 1,029 310 817 224 813 165 EBITDA Margin % 20.3% 33.6% (1330 bps) 27.5% (720 bps) Q3 FY23 Q4 FY23
Slide 8: Profit & loss statement
Profit & loss statement (Rs. In Crore) Particulars Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY 23 Y-o-Y Revenue from continued operations* 813 1,107 (27%) 817 (0.5%) 2,659 3,443 (23%) Operating Expenses of continued operations 648 735 (12%) 593 9% 1,959 2,293 (15%) EBITDA from continued operat
Slide 9: Impact of Interim Union Budget 2024
Impact of Interim Union Budget 2024 FY24-25 interim union budget has clearly outlined Government’s Positive Impact focus on: on GHCL 1) Net zero by 2070 (Rooftop Solarisation, Non fossil fuel, E-vehicles) 2) Significantly higher allocation for PM Awas Yogna (PMAY) 3) Higher capex allocation for
Slide 10: Resource allocation & key financial ratios
Resource allocation & key financial ratios Efficient Capital Allocation Net Debt Free Rs. 131 crore Rs. 166 crore Debt Repayment Dividend Net Cash Surplus of Rs. 625 cr. Gross Debt Rs. 217 cr. Rs. 511 cr. Cash Inflows Generated Key Ratios Net Debt/(Cash) to Equity ROCE* Rs. 86 crore Rs. (209) cr
Slide 11: Business outlook
Business outlook Near Term Long Term • Many parts of the world, including Europe and • The long-term demand for soda ash is strong and Americas are experiencing a decrease in demand. expected to increase from 63 million MT to 78-83 million MT by 2030. This growth is fueled by • Soda Ash market world
Slide 12: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Overview by Key Regions GLOBAL SIZE: CAPACITY-71 MMT, PRODUCTION-64 MMT* Turkey: Americas: CAPACITY: 15.1 MMT Turkish soda ash manufacturers Soda Ash Market was oversupplied PRODUCTION: 13.6 are facing poor demand in due to increased production
Slide 13: Focus on driving responsible future growth
Focus on driving responsible future growth Key Growth levers • Focus on Greenfield Soda Ash project of 5L MT • Salt yield improvement • Vacuum salt from waste energy • Benefits from doubling (Sodium Bicarbonate) Capacity from 60k to 120K MT • Augmenting backward integration of raw material for enhan
Slide 14: Sodium bicarbonate – longer term play
Sodium bicarbonate – longer term play Overview of Sodium Bicarbonate Future Benefits Generally named as Doubled capacity Full benefits to baking soda, bread from 30K MT to come in future from soda, cooking soda 60K MT in 2017 and then to 1,20K and bicarbonate of capacity already soda doubled to 120K
Slide 15: Key application of Sodium bicarbonate
Key application of Sodium bicarbonate Tannery Pharma Food A Thermal Power Plant is successfully using Sodium bicarbonate for FGD treatment and GHCL is supplying its materials. Animal Feed Chemicals Potential application of Sodium bicarbonate in flue gas treatment is under trial phase; could be a gam
Slide 16: Company Overview
y Company Overview
Slide 17: GHCL – An introduction
GHCL – An introduction 1 Targeting Best-in-class Professional Mgmt. • To grow profits at a CAGR 15% on a long-term • Operations management • Focused management approach horizon • CAPEX planning and execution • Strategy led by professional • To inculcate value systems that defines our culture • Finan
Slide 18: GHCL overview
GHCL overview Best in class Focus to emerge 3 decades of operational as a sustainable Indian efficiencies and business Manufacturing capacity utilizations organization experience Leading soda Business Professionally ash player in Philosophy of managed India Inclusive growth of workforce all stakehol
Slide 19: Differentiators
Quality assets, high-potential runway for growth • Comfort of key input material integration Chemicals Performance Strengths • Industry leading efficiency and productivity Key Revenues (5-year CAGR) 18% • Brownfield scale up achieved at minimal capex EBITDA (5 Years CAGR) 20% • Strong service orient
Slide 20: Evolution of GHCL through the years
Evolution of GHCL through the years Commenced Soda Ash Spindles capacity increased to Soda Ash production capacity Soda Ash production Production with 4.2 Lacs 175K, installed 3320 rotors in increased to 11 Lacs MTPA / year capacity enhanced to 12 Lacs MTPA which was further spinning in FY2019 MT in
Slide 21: Our objective
Our objective “Achieve a CAGR growth of 15% in bottom-line with creating value for all our 5 stakeholders” Responsible Growth ESG Organic Growth – CAPEX, Non- HSE – Zero Harm, CSR – CAPEX led Growth, Growth – M&A/ Responsible Citizen and JV and Optimize Return on Capital Renewable Energy Brand Image
Slide 22: Core values at forefront
Core values at forefront MISSION • GHCL is a unique workplace which is dotted with its Core Responsibly maximising Values, defining its culture stakeholder value • Every employee in the Company is expected to imbibe its Core Values and interact within the business ecosystem with all its stakeholders
Slide 23: Spearheaded by distinguished management
Spearheaded by distinguished management R S Jalan Raman Chopra Managing Director CFO & Executive Director Anurag Dalmia Neelabh Dalmia Dr. Manoj Vaish Experienced and (Chairman) (Executive Director, Growth & (Independent Lead Director) Diversification) accomplished Board of Directors Mrs. Vijaylaxmi
Slide 24: Awards & recognitions
Awards & recognitions Mahatma Award HR Excellence Award 5 Notch Upgrades in last 6 years Enhanced Credit Ratings – Upgraded to AA- with Stable outlook, GHCL received 12th CII National HR for CSR Excellence Excellence Award for strong commitment 13th CEO Conference Referred as Great Place to work in
Slide 25: About us
About us GHCL Limited was incorporated on 14th October 1983. The Company has established itself as a well-diversified group with an ascertained footprint in chemicals and consumer products segments. In Chemicals, the Company mainly manufactures Soda Ash (Anhydrous Sodium Carbonate) that is a major r
Slide 26: Thank You
Yy Thank You