Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — FY2019 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, May 2019
Slide 1: Sharda Cropchem Limited Q4 & FY19 Results Update
SHARDA CROPCHEM LIMITED Q4 & FY19 RESULTS UPDATE May 2019
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q4 & FY19 Result Highlights Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q4 & FY19: Key Highlights
Q4 & FY19: KEY HIGHLIGHTS Q4 FY19 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 34.5% 31.1% 25.8% 14.8% 20.6% 13.7% 7,659 7,644 1,975 1,132 1,577 1,056 0.2 % 20.2 % 6.7 % Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 FY19 YoY ANALYSIS REVENUES & GROSS MARGIN
Slide 5: FY19: Key Performance Highlights
FY19: KEY PERFORMANCE HIGHLIGHTS • Robust growth across both agrochemical and non-agrochemical business • Revenues increased by 17.3% YoY from Rs 17,066 mn in FY18 to Rs 20,011 mn in FY19 • Region wise growth YoY – Europe: 14.0%, NAFTA: 20.5%, LATAM: -18.8% and RoW: 64.2%. • Gross profit increased b
Slide 6: Q4 & FY19: Division Wise Highlights
Q4 & FY19: DIVISION WISE HIGHLIGHTS In Rs Mn Q4 FY19 YoY ANALYSIS: REVENUE BREAKUP FY19 YoY ANALYSIS: REVENUE BREAKUP 7,644 20,011 7,659 17,066 698 743 3,158 6.4 % 40.2 % 2,253 6,961 6,901 16,854 0.9 % 14,813 13.8 % Q4 FY18 Q4 FY19 FY18 FY19 Agrochemicals Non-Agrochemicals Agrochemicals Non-Agrochem
Slide 7: Q4 & FY19: Agrochemical Business
Q4 & FY19: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 6,961 6,901 14,813 16,854 6,961 6,901 14,813 16,854 9.3% 7.3% 6.9% 3.7% 4.8% 7.0% 7.5% 7.3% 14.1% 13.1% 16.4% 10.9% 34.0% 36.6% 35.3% 38.2% 90.7% 85.9% 86.9% 83.6% 51.8% 54.9% 46.7% 47.1% Q4 F
Slide 8: FY19: Agrochemical Business
FY19: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 20% 23% FY18 FY19 54% 53% 26% 24% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues grew by 12.2% YoY in FY19 to Rs 8,987 mn • Fungicides revenues grew by 4.5% YoY in FY1
Slide 9: Q4 & FY19: Non-Agrochemical Business
Q4 & FY19: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 698 743 2,253 3,158 15.5% 18.8% 5.6% 35.8% 36.4% 7.0% 30.4% 7.7% 6.4% 37.1% 26.1% 28.1% 48.5% 30.3% 37.0% 29.1% Q4 FY18 Q4 FY19 FY18 FY19 Europe NAFTA LATAM RoW • Revenues in Europe declined by 33.4% in Q4 FY19 to Rs 225 mn •
Slide 10: FY19: Working Capital Analysis
FY19: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 167 153 155 151 87 82 FY18 FY19 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS FY18: 101 FY19: 86 * Calculated on average inventory, receivables, creditors 10
Slide 11: Q4 & FY19: Consolidated Profit & Loss Statement
Q4 & FY19: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q4 FY19 Q4 FY18 YOY% FY19 FY18 YOY% Total Revenue 7,643.6 7,658.9 -0.2% 20,011.4 17,065.9 17.3% COGS 5,265.5 5,019.3 4.9% 13,875.9 11,437.4 21.3% Gross Profit 2,378.1 2,639.6 -9.9% 6,135.5 5,628.4 9.0% Gross Margin % 31.1% 34.5%
Slide 12: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn FY19 FY18 Particulars in Rs. Mn FY19 FY18 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Equity and Share Capital 902.2 902.2 Property, Plant and Equipment 135.5 106.8 Other Equity 11,936.9 10,446.0 Goodwill 4.0 4.0 Non-controlli
Slide 13: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. BUSINESS Sharda operates with an asset light business model focused on identification and
Slide 14: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited dl . * oan od 2 t) re oe cae 14
Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 17 % 20,011 CAGR: 21 % CAGR: 9 % 17,066 16.3% 22.2% 22.3% 20.2% 18.6% 14.3% 11.6% 13.6% 11.2% 8.8% 13,992 12,186 10,611 3,454 3,716 3,124 1,751 1,904 1,908 1,763 2,714 1,727 1,230 FY15 FY16 FY1
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 31ST Mar 2019 % HOLDING MARKET DATA AS ON 10TH MAY 2019 HDFC MF 8.90% Market capitalization (Rs Mn) 34,951 L & T Mutual Fund 4.69% Price (Rs.) 387.4 No. of shares outstanding (Mn) 90.2 Pinebridge Investments 4.14% Face Value (Rs.) 10.0 D
Slide 17: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 18: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities Forward Integration - Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Ashish Lodha Mr. Mitul Bhagat/Nilesh Dalvi Chief Financial Officer IR Consultant Email: alodha@shardaintl.com Email: mitul.bhagat@dickensonir.com Contact No: +91 22 6678 2800 Email: nilesh.dalvi@dickensonir.com Contact no: +91 8898214083/+91 9819289131