Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Investor Presentation (May 2024)
36 slides from Fine Organic Industries's investor presentation, May 13, 2024
Slide 1: Regulation 30 disclosure cover letter to exchanges
Date: May 13, 2024 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Plot No. C/1, "6" Block, Exchange Plaza Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Security Code: 541557 Symbol: FINEORG Subject: Disclosure of informatio
Slide 2: Investor Presentation May 2024
Investor Presentation May 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: The Fine Story of Success
A FINE ORGANICS THE FINE STORY OF SUCCESS
Slide 5: Expertise in Oleo-chemistry
Expertise in Oleo-chemistry An established and reputed international player of 01 oleochemical-based additives, rooted in India A Technical Pinch of salt in the end product making a 02 HUGE difference in the product performance Making Things Better®️ We create Specialty additives for diverse applica
Slide 6: Why FINE additives are preferred?
Why FINE additives are preferred? Demand for oleochemical derived additives is increasing FINE green additives have been Increasing consumer awareness for effectively replacing potentially environment has resulted in hazardous chemicals in wide range remarkable preference for ‘Green’ of industries s
Slide 7: High-Performance Environment-Friendly Additives
High-Performance Environment-Friendly Additives
Slide 8: Over 50 years of Journey
Over 50 years of Journey Established R&D Centre Signed JV with Netherlands Amalgamated Fine Research Commissioned first food in Navi Mumbai based bakery premix and Development Centre Pvt additives facility in Dombivli manufacturer Zeelandia Ltd and Fine Specialty Commissioned large International Sur
Slide 9: A Fine Family
A Fine Family 845+ >18% >11% >8% Employees completed 25 Employee Strength Women Employees 2nd Generation Employees years of journey with us Integrity is both a value as well as a character that is Creating and encouraging home grown leadership embedded in every Fine Organics employee, with the signa
Slide 10: Strength Formulae for Success of FINE ORGANICS
Strength Formulae for Success of FINE ORGANICS Strong R&D & Innovation 1 led Business Diversified Product + Portfolio 2 Technology Relentless Specialized Business Development Focus 3 Model 5 Highly Experienced Management Team Diversified Customer Base 4 = Innovative Products and Solutions Dominant P
Slide 11: 1. Strong R&D : Innovative Approach
1. Strong R&D : Innovative Approach Step 01 Strong R&D Capabilities ▪ Value Creation; Effective and Efficient Focus on technical support to customers ▪ Dedicated team of 33 Scientists and Developing New Technicians Products Step 02 In-House Design and Engineering Improving Process ▪ In-house capabil
Slide 12: With Industry Standards and Regulatory Credentials
With Industry Standards and Regulatory Credentials ▪ Setting new benchmarks in quality and consistency Fine’s facilities are fully geared towards ▪ High safety and productivity standards meeting growing Global Demands ▪ Products are appreciated by customers worldwide for their consistent quality and
Slide 13: 2. Diversified Product Portfolio : Multiple End-users
2. Diversified Product Portfolio : Multiple End-users ▪▪ The The diversity diversity of of oleochemistry oleochemistry has has enabled enabled us us to to develop develop aa wide wide range range of of additives additives for for PVC, PVC, 01 Polyolefins, Styrenics, Polyolefins, Styrenics, Polyamide
Slide 14: 2. Diversified Product Portfolio : Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Polymer Additives for Emollients for Feed Nutrition Specialty Additives Additives Coatings Cosmetics Additives Additives Additives for maintaining Used for various Used as anti-settling Enables manufacturing of Replaces harmful A wide range
Slide 15: 3. Specialised Business Model : Entry Barriers
3. Specialised Business Model : Entry Barriers Limited Players Customer Loyalty ▪ Lengthy & expensive product approval processes lead to ▪ Limited & small players in Indian specialty additives high switching costs for customers. Due to this, market. Globally Few players which are very large customer
Slide 16: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 510+ End Users 5200+ Countries 80+ Direct Customers 890+ Distributors 200+ Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness 15
Slide 17: 5. Highly Experienced Management Team
5. Highly Experienced Management Team Mukesh Shah - Chairman and Jayen Shah - Managing Director Tushar Shah - Whole Time Director Whole Time Director and Chief Executive Officer • Joined in 1986. Holds a Master’s degree ▪ Joined in 1973. Holds a Bachelor’s ▪ Joined in 1989 and led several in Science
Slide 18: 6. Dominant Position
6. Dominant Position Pioneers and the Fully automated One of the few One of the few One of the few largest production global players in global players in the leading players to manufacturers of facility multiple the specialty food polymer additives develop oleochemical- production sites emulsifiers
Slide 19: Our Sustainable Value Creation Framework
Our Sustainable Value Creation Framework Financial Capital We are committed to delivering value to all our stakeholders (i.e., employees, shareholders, governments, and communities) by injecting capital employment across our value chain Intellectual Capital Investing in research and consumer marketi
Slide 20: Industry growth potential factors
Industry growth potential factors Key Additives & End-Use Industry Growth Drivers Ingredients Applications FOOD ADDITIVES ▪ Emulsifiers ▪ Bakery ▪ Increased consumption ▪ Anti-fungal agents ▪ Confectionery ▪ Improved number of end- ▪ Bakery products ▪ Biscuits user applications ▪ Anti-crystallisers
Slide 21: Industry growth potential factors
Industry growth potential factors Key Additives & End-Use Industry Growth Drivers Ingredients Applications COATING AND SPECIALITIES ▪ Lube additives ▪ Automotive lubricants ▪ Increase in infra-projects ▪ Property modifiers ▪ Roads and highway ▪ Growth in automobile sales ▪ Anti-corrosive additives ▪
Slide 22: Financial Highlights
~~ ~~ — Financial Highlights — ; ae
Slide 23: Volatility in RM Prices till Mar'24
600 800 1400 1600 1800 2000 2200 1000 1200 Apr-20 May-20 Jun-20 Jul-20 Aug-20 SOYA REFINED OIL Sep-20 Source – RK Singhal (Vishwa Vyapar) SUNFLOWER REF OIL Oct-20 Price in Rs / 10 KG Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 GROUNDNUT OIL RAPESEED EXP OIL Jul-21 Aug-21 Sep-21 Oct-21 No
Slide 24: Standalone Performance Highlights
Standalone Performance Highlights Revenues EBITDA PAT Rs in Crores 522 132 104 426 92 70 Q3FY24 Q4FY24 Q3FY24 Q4FY24 Q3FY24 Q4FY24 3,029 781 591 1,951 481 368 FY23 FY24 FY23 FY24 FY23 FY24 23
Slide 25: FY24 Standalone Operating Performance
FY24 Standalone Operating Performance Operating EBITDA & Revenues Margins Rs in Crores 19.3% 21.3% 23.0% 17.1% 18.8% 25.8% 24.6% +15% 3,029 +20% 781 1,858 1,951 68% 52% 481 1,044 1,026 1,121 60% 856 349 55% 55% 55% 222 236 192 Exports 58% 164 40% 32% 48% Domestic 42% 45% 45% 45% FY18 FY19 FY20 FY21
Slide 26: Use of Capital (Standalone)
Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.11x 0.05x Net Cash 12.26x Position 9.44x 7.77x 7.10x 7.39x -0.13x 4.90x -0.16x 4.13x 5.40x 3.26x 3.71x -0.24x 2.26x 2.34x 2.29x 3.37x -0.31x FY18 FY19 FY20 FY21 FY22 FY23 FY24 -0.52x FY18 FY19 FY20 FY21 FY22 FY23 FY24 Fixed Asset
Slide 27: Standalone Return Profile
Standalone Return Profile Return on Capital Employed Return on Net Worth 47.34% 38.80% 31.15% 32.17% 25.37% 26.40% 26.15% 30.35% 24.81% 26.66% 22.82% 19.75% 17.55% 15.55% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Return on Capital Employed = EBIT (excluding Other Income)
Slide 28: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs in Crs) Q4FY24 Q4FY23 YoY Q3FY24 QoQ FY24 FY23 YoY Revenue from Operations 521.5 698.6 -25.3% 425.8 22.5% 1,951.1 3,029.1 -35.6% Cost of Raw Material Consumed 294.2 425.5 247.9 1,119.9 1,865.7 Gross Profit 227.4 273.1 -16.7% 177.9 27.8% 831.2 1,163.
Slide 29: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs in Crs) Mar-24 Mar-23 Equity & Liabilities (Rs in Crs) Mar-24 Mar-23 Non-current assets Equity Property, plant and equipment 227.0 211.2 Equity share capital 15.3 15.3 Capital work-in-progress 29.7 40.4 Other equity 1,846.0 1,506.8 Intangible assets 1.7 1.5 Right
Slide 30: Consolidated Performance Highlights
Consolidated Performance Highlights Revenues EBITDA PAT Rs in Crores 547 143 115 488 118 94 Q3FY24 Q4FY24 Q3FY24 Q4FY24 Q3FY24 Q4FY24 3,023 831 618 2,123 534 412 FY23 FY24 FY23 FY24 FY23 FY24 29
Slide 31: FY24 Consolidated Operating Performance
FY24 Consolidated Operating Performance Revenues Operating EBITDA & Margins Rs in Crores 18.6% 21.7% 22.7% 17.5% 19.4% 27.5% 25.2% +16% 3,023 22% 831 2,123 1,876 534 1,060 1,038 1,133 856 364 230 235 198 158 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 PAT & Margins Cash PAT
Slide 32: Use of Capital (Consolidated)
Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.10x 0.04x 12.24x 9.58x 7.74x 8.04x -0.14x 7.17x -0.18x -0.23x 4.18x 4.95x -0.32x 5.19x 3.27x 3.77x 3.40x 3.25x 2.29x 2.37x -0.55 FY18 FY19 FY20 FY21 FY22* FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Fixed Asset Turnover (Gross)
Slide 33: Consolidated Return Profile
Consolidated Return Profile Return on Capital Employed Return on Net Worth 49.82% 40.10% 33.85% 27.24% 26.63% 27.09% 30.80% 31.80% 24.10% 27.00% 21.44% 24.74% 16.45% 18.41% FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Return on Capital Employed = EBIT (excluding Other Income
Slide 34: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q4FY24 Q4FY23 YoY Q3FY24 QoQ FY24 FY23 YoY Revenue from Operations 546.9 596.6 -8.3% 488.4 12.0% 2,123.0 3,023.1 -29.8% Cost of Raw Material Consumed 305.7 300.9 277.4 1,217.0 1,784.2 Gross Profit 241.2 295.7 -18.5% 211.0 14.3% 905.9 1,238
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs in Crs) Mar-24 Mar-23 Equity & Liabilities (Rs in Crs) Mar-24 Mar-23 Non-current assets Equity Property, plant and equipment 227.0 211.2 Equity share capital 15.3 15.3 Capital work-in-progress 29.7 40.4 Other equity 1,905.7 1,525.9 Intangible assets 1.7 1.5 Non-
Slide 36: Thank You
THANK YOU Company: CIN: L24119MH2002PLC136003 Ms. Sonali Bhadani Chief Financial Officer investors@fineorganics.com Investor Relations Advisors: CIN: U74140MH2010PTC204285 Mr. Mandar Chavan / Mr. Rahul Agarwal +91 9699382195 / +91 9821438864 Email: mandar.chavan@sgapl.net / rahul.agarwal@sgapl.net w
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