Ghcl Limited · NSE:GHCL
Ghcl — Q3 FY20 Earnings Presentation
41 slides from Ghcl's earnings presentation, January 2020
Slide 1: GHCL Limited Q3 FY20 Investor Update
GHCL LIMITED Q3 FY20 Investor Update – January 2020
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL 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 securities, and
Slide 3: Agenda
Agenda Inorganic Quarterly & Company Textiles Chemicals Annual Update Overview Segment Segment 4 12 20 29 3
Slide 4: Quarterly Update Q3 FY20
Quarterly Update Q3 FY20 4
Slide 5: Management Commentary
Satisfactory performance during last 9 months, recorded 35% growth in PAT to Rs. Management Commentary 327 Crores despite challenging economic situations. Our PAT for Q3 FY 20 is Rs. 101 crore at Q3FY19 levels despite: Commenting on the Q3 FY20 o Impact of Rs. 10 crore due to retrospective withd
Slide 6: Performance Highlights – 9M FY20 & Q3 FY20
Performance Highlights – 9M FY 20 & Q3 FY20 Revenues EBITDA Profit Before Tax Profit After Tax 4% 11% 23% * 1% * Q3 FY20 ` 843 crore ` 186 crore ` 119 crore ` 101 crore * * 3% 13% 17% 35% 9M FY 20 ` 2548 crore ` 611 crore ` 421 crore ` 327 crore 6 * Despite of exceptional items of Rs. 10 Cr due to r
Slide 7: Profit & Loss Statement
Profit & Loss Statement Rs. In Crore Particulars Q3 FY20 Q3 FY19 YoY Q2 FY20 QoQ Sales 843 875 -4% 826 2% Operating Expenses 657 665 -1% 623 5% EBITDA 186 210 -11% 203 -8% EBITDA Margin 22.1% 24.0% 190 BPS 24.6% 250 BPS Depreciation 32 29 12% 32 1% EBIT 154 181 15% 171 -10% Interest 26 27 -6% 29 -12
Slide 8: Q3 FY20 Segment Highlights – Inorganic Chemicals
Q3 FY20 Segment Highlights – Inorganic Chemicals Performance Insights Particulars Q3 FY20 Q3 FY19 YoY Q2 FY20 QoQ Production increased by 10 K MT in the quarter. Net Soda Ash Production Maintained Revenue despite of softness in prices by 2.53 2.42 4% 2.62 -3% around 7%. (Lac MT) EBITDA de-grow
Slide 9: Q3 FY20 Segment Highlights – Textiles
Q3 FY20 Segment Highlights – Textiles Performance Insights Particulars Q3 FY20 Q3 FY19 YoY Q2 FY20 QoQ Revenue down by 9% as compared to Q3 FY19, which is primarily Revenue (Rs. Crores)* 294 324 -9% 283 4% due to weak scenario in spinning industry. EBITDA Margins 50 BPS lower compared to Q3 FY19
Slide 10: Efficient Capital Allocation (9M FY20)
Efficient Capital Allocation (9M FY20) CAPEX Generated Cash Rs. 192 crore Profits Inorganic Chemicals Rs. 157 crore (net of Tax) of Textiles (Mainly Spinning)Rs. 35 crore Rs. 422 crore SHAREHOLDERS Paid Dividend Rs. 59 Crore Rs. 1.81 crore ESOP Equity Issued DEBT Decrease in Debt of Rs. 200 crore OP
Slide 11: Revenue Breakup & Key Financial Ratios
Revenue Breakup & Key Financial Ratio’s Segment-wise Revenue ROCE* ROE* break-up** 20% 20% Textiles, 36% Inorganic Chemicals, 64% Debt 1,092 Cr. Domestic : Exports Revenue break-up** Net Debt-Equity Net Debt-EBITDA Exports, 18% Domestic, 0.47x 1.24x 82% 11 **Based on FY19 financials *Note :- ROCE an
Slide 12: Company Overview
Company Overview 12
Slide 13: GHCL - An Introduction
GHCL - An Introduction Best in class 2nd Operations management Largest manufacturer of Soda Ash in India, with 25% CAPEX planning and execution Financial management market share 11.00 45 1.85L Day to day management and Spindles strategy led by professional Lac MT MN MT With 3320 rotors management te
Slide 14: GHCL Overview
GHCL Overview 3 decades of Indian Manufacturing Leading soda ash player in India experience Listed on 2 premier Professionally stock exchanges of managed workforce India Focus to emerge as a Business Philosophy of sustainable business Inclusive growth of all organization stakeholders 14
Slide 15: Balanced growth opportunities across businesses
Balanced growth opportunities across businesses Among top 3 soda ash players. Inorganic o Catering 1/4th of Indian soda ash demand o Margin leader in the industry; with highest capacity utilization of 90%+ Chemicals (64%*) Sodium Bicarbonate of 0.60 Lakh MT Margin leadership in the industry St
Slide 16: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash production capacity increased to Soda Ash capacity increased to 8.5 Lakh 9.75 Lacs MTPA MTPA Entered Spinning business with 65 K Doubled Sodium bicarbonate capacity to spindles subsequently increased to 140 K 60 K MTPA Commissioned Home Textile plant with
Slide 17: Spearheaded by Pre-eminent Professionals
Spearheaded by Pre-eminent Professionals RS Jalan Raman Chopra Managing Director CFO & Executive Director Spearheading GHCL’s Finance and IT functions Unique leadership style with endeared managerial abilities drives all businesses alike Qualified Chartered Accountant with sharp financial acumen, ne
Slide 18: Core values at forefront..
Core values at forefront.. Thoughtful and show regards for another person. GHCL is an unique work place which is dotted with its Core Values, defining its culture. Respect Every employee in the company is Confidence in expected to imbibe its Core Values and Trust each others capabilities interact wi
Slide 19: Strong Institutional & HNI Holding – 38.00%
Strong Institutional & HNI** Holding – 38.00% Institutional Holding – 33.19%, HNI’s**- 4.81% Non-Institutional Holding – 43.48% 19.48% 15.87% 13.05% Foreign Portfolio Mutual Body Corporates Investors Funds 18.52% Promoter & Promoter Group 24.00% 4.27% 4.81% Others Insurance Companies/ HNI’s** Financ
Slide 20: Inorganic Chemicals
Inorganic Chemicals 20
Slide 21: Margin Leadership in Soda Ash
Commanding a leadership in manufacturing of Soda Ash Key Differentiators Single largest Soda ash plant in India at a single location +90% 11.00L MT Best in class productivity Capacity utilization; Soda ash capacity; Highest in industry 25% market share of domestic demand Soda Ash B2B to B2C with sup
Slide 22: Marquee Clients
& Marquee Clients GUJARAT BOROSIL LIMITED Glass
Slide 23: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Outlook GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT o Global economic weakness has resulted in softness in Soda Ash market EUROPE CAPACITY: 14.5 MMT o China continue to face economic PRODUCTION: 12.0 MMT slowdown. Reported high Soda Ash pro
Slide 24: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share Domestic Demand Concentration Tata West, 15% Import, Chem, North, 23% 20% South, 29% Others, 19% 5% GHCL, Nirma, 25% East, Gujarat, 27% 9% 28% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for F
Slide 25: GHCL's Dense Soda Ash in glass bangles
GHCL’s Dense Soda Ash is an important » industrial chemical used in the manufacturing RS of colourful glass bangles.
Slide 26: Every cloth tells a story...
Every cloth tells a story... And we want to be the part of that story... Our Soda Ash is used in soaps and detergents to improve their cleaning properties.
Slide 27: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Doubled capacity from 30,000 to 60,000 MT in December 2017. Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire Extinguishers, pH balancer, and Cleaning agent Specialization and exper
Slide 28: Inorganic Chemicals – Consumer Products
Inorganic Chemicals – Consumer Products Premium edible Salt Manufacturer in South India Expanding product portfolio i.e. Salt, Honey, Spices and Powder Spices under the brand i-FLO. Ventured into the Premium Honey Category by pioneering the entry of Jujube Honey Under powdered spices categor
Slide 29: Textiles Segment
Textiles Segment 29
Slide 30: Sustainability
Sustainability Traceability Innovation Giving Back to Society GHCL's Home Textile 4 Pillar Strategy 30
Slide 31: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain 1.85 Lacs Spindles, 3,320 Rotors, 5,760 TFO Drums, 5 Air jet Spinning Machines 12 Mn Meters 45 Mn Meters 30 Mn Meters Bed Sheets & Spinning Weaving Fabric Processing Cut & Sew Made-up’s Also sold in Sold in Market Market Spi
Slide 32: Marquee Clients
<» Marquee Clients KOHES canningvale EZ Revman Internationa Sainsbury's BED BATH & BEYOND amazoncom — Dillard’s >< Walmart.com
Slide 33: From Fashion, to Sustainability....
From Fashion, to Sustainability.... 14 Feb 2019 Hyperlink to articles: The New Era of Sustainability Supply Chains, Goal 2020 , Ending the era of dirty textiles, How fast fashion is destroying the planet, 33 How plastic bottles that get turned into textiles are transforming the fashion industry, The
Slide 34: Reinventing the Bottle to Bed sheets (REKOOP)
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags 34 Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL
Slide 35: Sustainable fabric collections
ie ‘90% VISCOSE, 20% RECYCLED POLYESTES |~ made from wood based calluioe | Look and feel ofcottan ‘Same properties af comfort, breathability, abeorbancy Sustahatle Fully Hodegradable ‘ope dyeing of Viecose - try sustainable Colorants acted in spinning - ro dyeing or washing need Reduction in water,
Slide 36: Less than a tenth of all plastic produced globally is recycled
Less than a tenth of all plastic produced globally is recycled. A vast majority of the rest is dumped in landfills and in the oceans. Small plastic pieces of less than 5 mm size or micro plastics, are major ocean pollutants. They are ingested by aquatic micro organisms which then get into food chain
Slide 37: Spin. Win Cirkularity
SPIN. WIN CIRKULARITY Upeyeled as 0 result of the gouse of Combe Noll, a wasted byeproduct of the NATURLIG Ore ed | NEFERTITI Lehility oe ie ot feduces the consumption of waler by eroruLLecriovens, ens toLLectionens ‘round 8300 gallons per set 100% ORGANIC COTTON . a is vs a. ‘© S0% COTTON, 35% LYOC
Slide 38: Focus on driving profitable growth
Focus on driving profitable growth Modular, phase-wise capex to give sustained volume growth Emphasis on high efficiency in operations Exploring Modular Greenfield Soda Ash expansion Soda Continuing to drive performance in Ash Expanding product spinning. Value- portfolio and added products
Slide 39: Awards & Recognitions
Awards & Recognitions Referred as Great Place to Awarded trio of Golden work in three consecutive Peacock awards for Corporate years of participation Governance, Corporate social Amongst top 25 ranking for responsibility and National manufacturing industry Quality 4 Notch Upgrades in last 4 years In
Slide 40: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company has established itself as a well-diversified group with an ascertained Contact Us: footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 41: Thank You
Thank You