Bodal Chemicals Limited · NSE:BODALCHEM

Bodal Chemicals — Q3 FY2022 Earnings Presentation

44 slides from Bodal Chemicals's earnings presentation, Feb 11, 2022

  1. Slide 1: Submission letter to stock exchanges: Earnings/Investor Presentation Q3 FY2022

    ® Badal Chemicals Ltd. COLOURS. INTEGRATION. INNOVATION. By Online Submission Sec/21-22/122 Date: 11-02-2022 To, To, The General Manager, The General Manager, BSE Ltd. National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, Rotunda Building, P.J. Tower, Plot no. C/1, G Blo

  2. Slide 2: Bodal Chemicals Limited Investor Presentation – February 2022

    Bodal Chemicals Limited Investor Presentation – February 2022

  3. Slide 3: Safe Harbour

    Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bodal Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu

  4. Slide 4: Q3 & 9M FY22 Highlights

    Q3 & 9M FY22 Highlights

  5. Slide 5: Business Highlights

    Business Highlights 9M Rs 14,681 mn Rs 1,618 mn Rs 698 mn FY22 Revenue EBITDA PAT • Consolidated Total Revenue for the 9MFY22 stood at Rs 14,681 mn, which is the highest ever nine months performance for the company. This growth was primarily driven by a better product mix and higher price realizatio

  6. Slide 6: Performance Highlights

    Performance Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 12.2% 9.9% 7.3% 3.5% Margin 5,684 562 272 Q3FY22 456 201 3,732 Performance Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 7.0% 11.0% 2.2% 4.8% 9MFY22 14,681 1,618 698 Performance 8,098 565 180 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21

  7. Slide 7: Geographic Breakup

    Performance Highlights 9MFY21 9MFY22 Revenue Rs 7,899 mn Revenue Rs 14,372 mn 9% 5% 11% Basic Chemicals 2% 9% 0% Dyestuff 12% Revenue Breakup Dye Intermediates 33% 36% Caustic Soda 46% TCCA 36% Others Geographic Breakup 67% Domestc 69% 33% 31% Export * On Consolidated basis excluding other non opera

  8. Slide 8: Production Volume

    Performance Highlights (Rs in mn) Basic Chemicals Dyestuff Dye Intermediates Chlor Alkali^ TCCA Revenue Breakup 1,326 5,129 5,222 1,796 242 855 3,666 2,613 778 381 404 1,957 1,721 2,083 1,187 31 18 32 0 0 Q3’21 Q3’22 9M’21 9M’22 Q3’21 Q3’22 9M’21 9M’22 Q3’21 Q3’22 9M’21 9M’22 Q3’21 Q3’22 9M’21 9M’22

  9. Slide 9: Subsidiaries Performance

    Subsidiaries Performance (Rs in mn) SPS BCTPL Sen-er Boya BCL China +47% +26% +175% -50% Revenue 1,025 111 703 324 558 699 56 118 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 SPS BCTPL Sener Boya Bodal-China Particulars (Rs in mn) 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Sa

  10. Slide 10: Consolidated Profit & Loss Statement

    Consolidated Profit & Loss Statement Particulars (Rs. In Mn) Q3 FY22 Q3 FY21 Y-o-Y% 9M FY22 9M FY21 Y-o-Y% Revenue from Operation 5,618.1 3,661.5 14,533.3 7,937.0 Other Income 66.4 70.1 147.6 160.7 Total Revenue 5,684.4 3,731.6 52.3% 14,680.8 8,097.7 81.3% Raw Material Consumed 3,091.4 2,337.7 8,022

  11. Slide 11: Standalone Profit & Loss Statement

    Standalone Profit & Loss Statement Particulars (Rs. In Mn) Q3 FY22 Q3 FY21 Y-o-Y% 9M FY22 9M FY21 Y-o-Y% Revenue from Operation 5,094.9 3,307.0 13,276.5 7,236.9 Other Income 44.7 47.0 150.2 155.4 Total Income 5,139.7 3,354.0 53.2% 13,426.6 7,392.3 81.6% Raw Material Consumed 2,720.1 2,120.8 7,145.8

  12. Slide 12: Company Overview

    \ \ tH, Company Overview _

  13. Slide 13: A Leading Chemical Manufacturer

    A Leading Chemical Manufacturer 3 10 Rs. 14,681 mn Decade Old Organization Manufacturing Facilities 9MFY22 Consolidated Revenue 5% 9% Basic Chemicals 2% 12% Dyestuff Dye Intermediates 36% 70+ 10 Chlor Alkali Distributors Across India 7 Domestic + 3 Overseas Depots 36% TCCA Others 4% Domestc Export 6

  14. Slide 14: Company Evolution

    Company Evolution 1989 1993 - 1994 1997-2004 2006-2010  Incorporated as JK  Acquired Unit II & Unit III  1997-Acquired two Units  2006-Listed on BSE via reverse merger Pharma at Unit II-A  Name changed to Bodal  2004 -Acquired Unit I & with Dintex Dye Chem (Unit I) Chemicals Pvt. Ltd. Forward

  15. Slide 15: Geographical Footprint

    Geographical Footprint ~33% of Total revenue comes from exports 45+ Countries North America Global Presence 2% Europe 12% Rest of Asia Revenue Breakup 17% India Domestic Export 67% 100% 100% 100% 100% 100% South America 2% 56% 59% 67% 67% 69% 44% 41% 33% 33% 31% FY18 FY19 FY20 FY21 9MFY22 Note : Map

  16. Slide 16: Longstanding Clientele

    Longstanding Clientele Basic Chemicals Dye Intermediates Dyestuffs 70+ 600+ Distributors Across India Customers 15

  17. Slide 17: Experienced Board & Management Team

    Experienced Board & Management Team Mr. Suresh J. Patel Mr. Bhavin S. Patel Mr. Ankit S. Patel Mr. Mayur Padhya Chairman & MD Executive Director Executive Director Chief Financial Officer Experience : 30 years Experience : 17 years Experience : 13 years Experience : 25 years Background : Background

  18. Slide 18: Awards & Certifications

    Awards & Certifications Awards Certificates 2005-06 2016-17  BCL has ISO 9001:2015 and ISO 14001:2015 certifications  Received the prestigious Chemexcil Gold Award for  Highest Self Manufacturing Turnover for Domestic and for their production of Dye intermediates & Dyestuffs. outstanding performa

  19. Slide 19: Product Overview

    Product Overview

  20. Slide 20: Diversified Product Portfolio

    Diversified Product Portfolio Existing Products New Products Additions Basic Chemicals Dye Intermediates Dyestuffs Benzene Derivatives Sulphuric Acid Chlor Alkali^  Sulphuric Acid  Vinyl Sulphone &  Reactive Dyes  MCB  Caustic soda  Sulphuric Acid  Chlorosulphonic Acid Derivatives  Acid Dyes

  21. Slide 21: Manufacturing Value Chain

    Manufacturing Value Chain Input Materials Basic Chemicals Dye Intermediates Dyestuffs Trion Chemicals End Use Industry Water Vinyl Sulphone + Derivatives Reactive Dyes Textiles Para Nitro Aniline Ice H Acid Beta Naphthol Steam DASA Sulphuric Acid Power Acid Dyes Leather FC Acid Sulphur Chloro Sulpho

  22. Slide 22: Manufacturing Facilities

    Manufacturing Facilities Total 10 10 Depots In-house R&D Lab Total Employees Manufacturing Facilities (Exclusive Distribution Warehouse)  3 – Ahmedabad, Gujarat  1 - Ahmedabad, Gujarat  Domestic 1,560+  7 - India  4 - Vadodara, Gujarat  2 - Vadodara, Gujarat  Contract Labours ~1,500  1 - Chi

  23. Slide 23: Our Subsidiaries

    Our Subsidiaries (Rs in mn) Company 9MY22 Location Stake Details Name Revenue H-Acid - 3,000 MTPA | Vinyl Sulphone - 6,000 MTPA S P S Processors Private Limited (SPS) Uttar Pradesh, India 70% Rs 1,025 mn Vinyl Sulphone's capacity expansion to 6,000 MTPA has been commercialized. Bodal Chemicals Tradi

  24. Slide 24: Key Growth Drivers

    Key Growth Drivers Dyestuff Expansion TCCA Division Vinyl Sulphone at SPS Turkish entity Sener Boya Acquired 100% stake in Trion Acquired ~ 80% stake to Capacity expansion of Chemicals and amalgamated Vinyl Sulphone plant of 6,000 Dyestuffs by 18,000 MTPA will MTPA capacity at SPS has strengthen the

  25. Slide 25: Our Key Strengths

    Our Key Strengths 3 Decades of Presence  Home grown player with deep understanding of Indian & Integrated Business Model global chemicals market  Integrated business model leading to cost competitiveness and protection against commodity cycles In house R&D Facilities  Well- equipped production fa

  26. Slide 26: India's Edge in the Global Chemicals Market

    India’s Edge in the Global Chemicals Market Indian Chemical Industry Megatrends Industry (USD bn) ~9% ~11% Structural Shift China +1 Unorganized players in the Dye Intermediates India is emerging as the next alternative 300 and Dyestuffs Industry have been declining supplier for the global market 27

  27. Slide 27: Next Level of Growth

    tH, Next Level of Growth

  28. Slide 28: Capex To Drive Next Level Of Growth

    Capex To Drive Next Level Of Growth Capacity Addition (MTPA): Total Capex: Revenue Expected: Commercialisation ~Rs 6,700 mn ~Rs 8,500 mn P.A Expected by Q3FY23 Benzene Downstream ~78,960 Chlor Alkali Products including Sulphuric Acid ~3,40,000 Caustic Soda ~99,000 Greenfield Saykha Total Project Cos

  29. Slide 29: Moving Up The Value Chain With New Chemistries

    Moving Up The Value Chain With New Chemistries Sulphur Chain Benzene Chain Chlor Alkali Chain Chlorine Oleum 23% - 65% PNA PNCB Salt & Water Electrolysis Caustic Soda Solution (Power) 2,4 DNCB MPDSA Sulphur Sulphuric Acid Liquid SO3 ONCB Benzene MCB Hydrogen • Sulphuric Acid Captive Consumption MNCB

  30. Slide 30: Capex To Be Completed in FY23

    Capex To Be Completed in FY23 Revenue Visibility Chemical Segments FY21 FY22 FY23 FY24 Basic Chemicals 11.0%    Dye Intermediates 41.0%    Dyestuffs 36.0%    Trichloroisocyanuric Acid (TCCA) 0.4%    Caustic Soda - ^ ^  Sulphuric Acid & Derivatives (New additional capacity) - - *  Be

  31. Slide 31: Way Forward

    Way Forward Lower cost of production Capacity rampup Economies of scale New client penetration Long term relationship with customers Ongoing internal efficiencies Superior quality Our Edge Rigorous integration 3+ decades of experience New greenfield expansion Diverse client base Higher focus on B2C

  32. Slide 32: Responsible Corporate

    H. Responsible Corporate

  33. Slide 33: Environmentally Compliant

    Environmentally Compliant Common Treated Effluent Zero Discharge Effluent Spray Effluent Effluent Multiple Effect Solid Waste Discharge Access Plant Location Site (Solid+ Dryer Plant Treatment Plant Treatment Plant, Evaporator Incinerator Plant VECL Cala Liquid+Air) (ESDP) (at GIDC) (MEEP) Lit./Day

  34. Slide 34: Pollution Control Systems

    Pollution Control Systems  Treats low load waste water  Clarification  Compliant with GPCB, CPCB norms  Bio- degradation by AIS Effluent Treatment Plant (ETP)  Capacity 500,000 liters / day  Tertiary Poly system  Chemical oxidation  Online monitoring system  Flocculation  Installed world’s

  35. Slide 35: Responding To Critical Issue

    Responding To Critical Issue  High costs involved in complying with environmental regulations Moreover, the rising industrial water and power rates are a concern. Key Challenges  Scarcity of water can lead to insufficient supply affecting our production needs.  The Chemical Industry is energy and

  36. Slide 36: CSR Activities

    CSR Activities Key Focus Areas  Eradicating hunger, poverty and malnutrition  Promoting healthcare and sanitation including contribution to the Swach Bharat Kosh  Promoting education and enhancement of rural infrastructure  Ensuring environmental sustainability  Providing funds for construction

  37. Slide 37: Financial Highlights

    : | Financial Highlights

  38. Slide 38: Financial Highlights

    Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 14,369 13,852 2,366 2,495 1,329 1,413 12,449 12,424 2,039 1,219 11,517 1,481 860 1,025 398 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 18.3% 10.4% 10.7% 17.0% 1

  39. Slide 39: Key Ratios

    Key Ratios Debt/ Equity (x) Return on Equity(%) Trending lower due to increasing 0.45 35.6% capital expenditure 0.41 17.5% 17.0% 0.17 0.19 0.12 9.2% 4.1% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Return on Capital Employed (%) Net Working Capital Days Trending lower due to increasing capital

  40. Slide 40: Segmental Performance

    Segmental Performance Basic Chemical Dyestuffs Dye Intermediates Total Revenue (Rs in mn) Revenue Breakup 1,601 5,324 6,544 13,940 4,808 5,895 12,377 11,477 1,282 1,269 3,993 11,329 1,149 3,533 4,618 4,589 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Basic Chemical

  41. Slide 41: Consolidated Balance Sheet

    Consolidated Balance Sheet Particulars (In Mn) Sep-21 Mar-21 Particulars (In Mn) Sep-21 Mar-21 ASSETS Equity & Liabilities Non-current assets 9,097.3 8,768.5 Equity 10,215.5 9,799.1 Property, Plant and Equipment 7,895.1 7,799.9 Equity Share capital 245.0 244.7 Right of use of assets 3.3 4.1 Other eq

  42. Slide 42: Standalone Balance Sheet

    Standalone Balance Sheet Particulars (In Mn) Sep-21 Mar-21 Particulars (In Mn) Sep-21 Mar-21 ASSETS Equity & Liabilities Non-current assets 10,021.4 9,741.6 Equity 10,370.3 9,865.3 Property, Plant and Equipment 7,527.1 7,491.0 Equity Share capital 245.0 244.7 Right of use of assets Other equity 10,1

  43. Slide 43: Performance Highlights

    Performance Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 13,940 2,477 1,441 12,377 2,311 1,329 1,275 11,926 11,329 11,477 2,085 1,463 901 1,009 483 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 18.7% 17.5% 11.2% 11.4%

  44. Slide 44: Thank You

    Thank You Contact Information Company: Investor Relation Advisors: Bodal Chemicals Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – : L24110GJ1986PLC009003 CIN - U74140MH2010PTC204285 Mr. Mayur Padhya Mr. Shrikant Sangani / Ms. Pankti Majithia Chief Financial Officer Email - shrikant.sangani@sgapl.net

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