Archean Chemical Industries Ltd. · NSE:ACI
Archean Chemical Industries — Q4 FY23 Earnings Presentation
24 slides from Archean Chemical Industries's earnings presentation, May 2023
Slide 1: Archean Chemical Industries Limited Investor Presentation Q4 & FY23
Archean Chemical Industries Limited Investor Presentation Q4 & FY23
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Archean Chemical Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 3: Q4 & FY23 Performance Highlights
Q4 & FY23 Performance Highlights
Slide 4: Q4 & FY23 Performance Highlights
Q4 & FY23 Performance Highlights Total Revenue (Rs. mn) EBITDA (Rs. mn) Profit After Tax (Rs. mn) Geographic-Wise (%) Business-wise (%) +4% +24% +67% 3,764.0 3,909.5 2,030.6 1,368.1 100% 100% 100% 100% 1,639.4 45% Q4FY23 Bromine 49% 819.1 70% Export 74% Salt 51% 55% Domestic 26% 30% SOP 0% Q4 FY22 Q
Slide 5: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. in mn) Q4FY23 Q4FY22 YoY % Q3FY23 QoQ % FY23 FY22 YoY % Total Income 3,909.5 3,764.0 3.9 3,725.9 4.9 14,852.4 11,430.8 29.9 Cost of material consumed 133.5 106.7 90.3 457.0 448.8 Change in Inventory (384.2) 22.8 (154.7) (474.0) (55.6) Purchase of Stock –in –
Slide 6: Balance Sheet Statement
Balance Sheet Statement Particulars(Rs. in mn) Mar-23 Mar-22 Particulars(Rs. in mn) Mar-23 Mar-22 Shareholder's Funds 14,325.2 2,626.9 Non-Current Assets 11,795.7 11,378.5 Equity Share Capital 246.1 192.7 Property Plant & Equipment 10,648.1 10,454.9 Reserves & Surplus 14,079.1 2,434.2 CWIP 332.0 171
Slide 7: Cash Flow Statement
Cash Flow Statement Particulars (Rs. mn) FY23 FY22 Profit before Tax & Exceptional 5,130.8 2,514.2 Adjustment for Depreciation & other items 1,611.8 2,282.6 Operating profit before working capital changes 6,742.6 4,796.8 Changes in working capital (1,556.4) (1,525.9) Cash generated from operations 5
Slide 8: Strong Balance Sheet Performance
Strong Balance Sheet Performance Inventory, Debtors and Creditors Turnover (in days) RoCE (%) RoE (%) Inventory Debtors Creditors 39.0 112.0 35.0 73 45.0 59 Mar-22 Mar-23 Mar-22 Mar-23 37 36 37 34 Net Debt to Equity (x) Fixed Asset Turnover (x) 3.5 1.4 1.1 Mar-22 Mar-23 0.0 Mar-22 Mar-23 Mar-22 Mar-
Slide 9: Archean at Glance
Archean at Glance Rs. 14,852.4 Mn *FY23 Revenue Bromine (~49%) » A leading Manufacturer of Specialty Marine Chemicals in India • Leadership position in Indian Bromine merchant sales • ~44% Export Business » Strong Clientele - 27 Global & 28 Domestic Industrial Salt (~51%) » Integrated production Fac
Slide 10: Key Attributes behind Strong Foundation
Key Attributes behind Strong Foundation
Slide 11: Key Attributes Behind Strong Foundation
Key Attributes Behind Strong Foundation Responsible Corporate 7 1 Strong Product Portfolio Proven Credential 6 2 Integrated Facility High Industry Growth 5 3 High Entry Barriers 4 Deep Engagement with Clients 11
Slide 12: 1. Strong Product Portfolio
1. Strong Product Portfolio Bromine Industrial Salt SOP Product • Bromine is the only non-metallic element that • There are 14,000 commercial uses of Salt, a • Sulphate of Potash, also known as potassium is a liquid at standard conditions source of Sodium and Chlorine which are basic sulphate, is a
Slide 13: 2. Integrated Production Facility at Hajipir, Gujarat
2. Integrated Production Facility at Hajipir, Gujarat Established Infrastructure • Archean use brine from own reservoirs as raw material which include Industrial Salt, kainite and end bittern. Other raw materials are primarily sourced from third-party suppliers in India • Globally, two most popular
Slide 14: 3. High Entry Barriers
3. High Entry Barriers Archean has proven to be a reputed producer with a track record of providing high quality products 1 2 3 4 Access to Reserves Limited number of Multi year Investment in High cost and intricacy locations globally Brine field Development of product development with a suitable cl
Slide 15: 4. Deep Engagement with Clients
4. Deep Engagement with Clients Enduring customer relationships helped to expand product offerings and geographic reach Strong Clientele Revenue Contribution Global 27 Largest Customer 23% Domestic 28 Top 10 64% High Focus on Exports 55 Clients Top 20 81% TOTAL 27% Major Clients Domestic 73% Export
Slide 16: 5. High Industry Growth
5. High Industry Growth Product Bromine Industrial Salt Sulphate of Potash (US$ billion) (mn in MT) (mn in MT) 3.92 185.00 8.70 173.00 157.00 2.86 2.96 6.50 5.55 Global Market Size 2017 2020 2025E 2017 2020 2025E 2017 2020 2025E • Increasing demand for flame retardants • Increasing industrialization
Slide 17: 6. Proven Credentials
6. Proven Credentials With Industry Standards and Regulatory Credentials • Accredited three star export house by Director General of Foreign Trade, Ministry of Key Commerce and Industry, Government of India Certificates • Member-signatory to Responsible CARE – Indian Chemical Council • REACH certifi
Slide 18: 7. Responsible Corporate
7. Responsible Corporate Environment & Safety Measure Social Governance Environment and safety considerations are an Focused on education and skill development Undertakes all necessary steps to comply with important part of our operations. We and healthcare for our staff and local all the requiremen
Slide 19: Next Level of Growth
Next Level of Growth
Slide 20: Moving up the Value Chain
Moving up the Value Chain 01. Brownfield Expansion 02. Greenfield Expansion Expanded Bromine and Industrial To expand into downstream Bromine Salt capacities derivative performance products Bromine • Added a feed enrichment section at the site in Bromine • To set up a new facility at Jhagadia, GIDC
Slide 21: Greenfield Expansion of Bromine Derivatives
Greenfield Expansion of Bromine Derivatives Acume Chemicals Jhagadia, ~Rs. 2,520 Mn FY24e Pvt. Ltd. GIDC Subsidiary CAPEX Location Timeline Bromine High-end Flame Retardant Clear Brine Fluids Pure Terephthalic Acid (PTA) Synthesis Derivatives 10,000 MTPA 13,000 MTPA 5,000 MTPA • Globally, properties
Slide 22: Utilisation of Net IPO Proceeds
Utilisation of Net IPO Proceeds Particulars (Rs in Mn) Original Cost Utilisation Amounts un - utilised Redemption or earlier redemption, in part or full, of NCDs 6,440.0 6,440.0 - General corporate purposes (*) 1,243.2 359.6 883.6 Total 7,699.6 6,799.6 883.6 • (*)As per prospectus, the General Corpo
Slide 23: Way Forward
Way Forward Augment Capacity The company has recently expanded capacity through debottlenecking of Bromine & Industrial Salt and will play vital role in growth trajectory Greenfield Expansion New Bromine Derivatives capacity is expected to be commercialized by FY24 at Jhagadia, GIDC which will impro
Slide 24: Thank You !
Thank You ! Company: Investor Relations Advisor: Archean Chemical Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L24298TN2009PLC072270 CIN - U74140MH2010PTC204285 Mr. Rajeev / Mr. Raghunathan R Mr. Shrikant Sangani / Ms. Manasi Bodas Rajeev.kumar@archeangroup.com / shrikant.sangani@sgapl.
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