Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q1 FY2024 Earnings Presentation
35 slides from Chemplast Sanmar's earnings presentation, Aug 10, 2023
Slide 1: Investor Presentation intimation letter to BSE and NSE
10th August, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed a copy of Investor
Slide 2: Chemplast Sanmar Limited Investor Presentation – Q1 FY '24
Chemplast Sanmar Limited Investor Presentation – Q1 FY ’24
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemplast Sanmar Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Performance Highlights
ee Performance Highlights 7 aA
Slide 5: Completed Phase 1 of Custom Manufactured Chemicals Division's new multi-purpose block
Completed Phase 1 of Custom Manufactured Chemicals Division’s new multi-purpose block 1st phase of the new multi-purpose production block project was dedicated on 10th August 2023, by Mr. Vijay Sankar, Chairman of the Company, in the presence of the Board of Directors 4
Slide 6: Performance Highlights: Q1 FY '24
Performance Highlights: Q1 FY ’24 Key Highlights • Prices of both Suspension PVC and Speciality Paste PVC in Q1 FY ’24 have been the lowest over the last 8-10 quarters – prices witnessed around 10% fall sequentially Rs. Cr • Suspension and Speciality Paste PVC prices bottomed out at the Revenues end
Slide 7: MD's Message
MD’s Message “With prices of both Suspension and Speciality Paste PVC being at the lowest level over the last 8-10 quarters, Q1 FY ’ 24 has been one of the toughest quarters in recent times for Chemplast and the PVC industry as a whole. This is mainly due to the sluggishness in demand globally and t
Slide 8: Segmental Highlights
Segmental Highlights Rs. Cr Speciality Chemicals Other Chemicals# Suspension PVC Consolidated 1,411 923 1,147 Revenue Breakup 256 260 719 996 217 649 232 167 131 Q1 FY ’23 Q4 FY ’23 Q1 FY ’24 Q1 FY ’23 Q4 FY ’23 Q1 FY ’24 Q1 FY ’23 Q4 FY ’23 Q1 FY ’24 Q1 FY ’23 Q4 FY ’23 Q1 FY ’24 mt 126,179 135,538
Slide 9: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Rs. Cr Particulars Q1 FY ’24 Q1 FY ’23 Y-o-Y Q4 FY ’23 Q-o-Q Revenue from Operations 996 1,411 -29% 1,147 -13% Cost of Goods Sold 725 905 747 Employee Cost 38 36 39 Other Expenses 268 276 263 EBITDA (35) 194 nm 97 nm EBITDA Margin % -3% 14% 8% Other income 18 16 31
Slide 10: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Rs. Cr Particulars Q1 FY ’24 Q1 FY ’23 Y-o-Y Q4 FY ’23 Q-o-Q Revenue from Operations 350 570 -39% 428 -18% Cost of Goods Sold 154 228 178 Employee Cost 25 24 27 Other Expenses 194 198 191 EBITDA (24) 121 nm 31 nm EBITDA Margin % -7% 21% 7% Other income 7 7 7 Depreci
Slide 11: Company Overview
ee Company Overview 7 aA
Slide 12: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… 4 Manufacturing Experienced management #1 #1 sites with a high degree of team with deep domain manufacturer Leading player manufacturer of backward integration (2) expertise of Speciality in Custom S-PVC in South Paste PVC Manufactured India
Slide 13: with a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar CCVL (1) Speciality Chemicals Other Chemicals Suspension PVC Speciality Paste PVC Custom Caustic Soda Hydrogen Chloromethanes resin Manufacturing peroxide Irrigation End-user Auto and Furniture Paper Textile Paper Textiles Footwear Pharma Agroc
Slide 14: The Sanmar Advantage: Paste PVC
1. Paste PVC Part of speciality chemical division of Chemplast Sanmar. Largest manufacturer of Speciality Paste PVC resin in India • Manufactured at Mettur facility since 1968; 41 ktpa expansion coming up at Cuddalore CSL is the oldest player and one of only two companies in India having the requisi
Slide 15: The Sanmar Advantage: Custom Manufactured Chemicals
2. Custom Manufactured Chemicals Part of speciality chemical division of Chemplast Sanmar; growing Renowned for our Sustainability, Environmental and Safety rapidly on the back of 15 years of long-standing client relationships stewardship • Quality manufacturing at Berigai facility in a safe and sus
Slide 16: The Sanmar Advantage: Caustic Soda, Hydrogen Peroxide, Chloromethanes, Ref. Gas
3. Caustic Soda | Hydrogen Peroxide | Chloromethanes | Ref. Gas Part of other chemicals division of Chemplast Sanmar; These complete the integration story of the company • Generated as a joint product in the process of manufacture of Capacity chlorine Caustic soda 119,000 • Sold at 48-50% concentrat
Slide 17: The Sanmar Advantage: Suspension PVC
4. Suspension PVC Part of CCVL (100% subsidiary); Largest manufacturer of S-PVC in South India and second largest in India Strong customer relationships with a diversified dealer/ • Manufactured at Cuddalore facility since 2009 customer network • This facility has a captive import terminal facilitat
Slide 18: Well Positioned to Capture Growth
Well Positioned to Capture Growth
Slide 19: Well Positioned to Capture Growth
Well Positioned to Capture Growth ‣ Five decades track record ‣ State-of-the-art manufacturing units at strategic locations ‣ Improving product mix Chemplast Sanmar Limited ‣ High growth industry ‣ Strong focus on sustainability ‣ Committed leadership team with eminent board 18
Slide 20: Five decades track record
1. Five decades track record Commencement of Expansion of Marine terminal Capacity expansion: CCVL became a wholly Completed Phase 1 of manufacturing of production capacity facility and EDC Paste PVC to 66,000 tpa at owned subsidiary of our Custom Manufacturing PVC resins at Mettur of PVC resins to
Slide 21: State-of-the-art Manufacturing Units
2. State-of-the-art Manufacturing Units… 01 Mettur, Tamil Nadu • The site consist of 4 plants with high degree of integration • Paste PVC – 66 ktpa • Zero liquid discharge facility • Hydrogen Peroxide – 34 ktpa • Sourcing of power from a captive power plant of 48.5 MW • Chloromethanes – 35 ktpa • Re
Slide 22: with a High Degree of Backward Integration
… with a High Degree of Backward Integration Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Imported Coal Caustic Soda Methanol EDC Power Plant Ref. Electrolysis Gases Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCl HCl 35 kt Salt 400kt (Vedara
Slide 23: Improving Product Mix
3. Improving Product Mix… Total Revenue EBITDA Rs. Cr 3,799 5,892 4,941 855# 1,197 468 Currently, Suspension PVC CSL In the long term, once our 34% 34% 39% dominates the sales mix. 46% 52% proposed expansions come 65% However, in terms of on-stream, Speciality vehicle profitability, share of would c
Slide 24: Supported by over Rs. 1,000 Cr Investment
.. Supported by over Rs. 1,000 Cr Investment Speciality Paste PVC • Target commissioning: H2 FY ’24 Capex Outlay • Brownfield project being implemented at Cuddalore – Rs. 360 Cr 66,000 41,000 this will leverage on CCVL’s existing Marine Terminal mtpa 107,000 mtpa and other infrastructure mtpa Steady
Slide 25: High Growth Industry
4. High Growth Industry… Products Paste PVC Suspension PVC Custom Manufacturing • India heavily import dependent • India set to outpace global Agro-CMC • India heavily import dependent • Demand growing at a fair clip market - AIs and advanced Key • Enough headroom to grow – no capacity • New capacit
Slide 26: with CSL's unique position to capitalize on it
… with CSL’s unique position to capitalize on it Technology not Leverage Existing Infra Owns vacant industrial land and available on License 01 other infrastructure for future leg Paste PVC manufacturing technology is closely of expansion guarded and is not readily available on license 02 High Compl
Slide 27: Strong Focus on Sustainability
5. Strong Focus on Sustainability… Environment • Harmonious relationship with Friendly Practices Health & Safety Measures neighboring communities • Zero liquid discharge policy • Transport safety - Installation • Desalination plants at coastal of speed control & safety • Receive enquiries from poten
Slide 28: with various awards & recognitions
… with various awards & recognitions Accreditations Key Awards Sword of Sword of Honor Honor ECOVADIS SILVER Star Award from British Safety British Safety MEDAL National Safety Council Council Council 2020, 2021, Safety Safety Cuddalore Mettur One of the two Plant 2 winners of the ‘Sustainability FI
Slide 29: Protecting the Environment with Sustainable Actions
Protecting the Environment with Sustainable Actions Chemplast consistently enhances manufacturing processes with continuous its Carbon Reduction and 2,97,016 Energy Saving tonnes of CO2 Equivalent technical innovation to improve efficiency and Initiatives Avoided Emissions (FY ’23) surpass environme
Slide 30: Committed Leadership Team With Eminent Board
6. Committed Leadership Team With Eminent Board Vijay Sankar Ramkumar Shankar Dr. Krishna Kumar Rangachari Chairman & Non Executive Director Managing Director Deputy Managing Director - Custom Manufactured Chemicals Division N Muralidharan Chandran Ratnaswami Dr. Lakshmi Vijayakumar Chief Financial
Slide 31: Historical Financials
ee Historical Financials 7 aA
Slide 32: Historical Segmental Highlights
Historical Segmental Highlights Rs. Cr Speciality Chemicals Other Chemicals Suspension PVC Total Revenue Breakup 5,892 1,272 3,880 4,941 862 1,079 740 3,000 3,799 913 2,510 3,123 749 511 1,863 376 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’2
Slide 33: Performance Trend
Performance Trend Revenue EBITDA Rs. Cr 13% 22% 20% 9% Margin 5,892 4,941 1,197 3,799 855 # 3,123 400 468 FY ’20 FY ’21 FY ’22 FY ’23 FY ’20 FY ’21 FY ’22 FY ’23 PAT Net Debt 8% 11% 3% 649 2,060 1,459 310 ++ ++ 152 1 FY ’20 FY ’21 FY ’22 FY ’23 -362 -184 FY ’20 FY ’21 FY ’22 FY ’23 All computations
Slide 34: Way Forward
Way Forward The Company expects margins to improve in Realisations are expected to be under pressure the short-term and sustain over the medium to Caustic soda 4 in the short-term and stabilize thereafter on the Paste PVC 1 long-term driven by the tightness in global back of growth in demand demand
Slide 35: Thank You
Company Chemplast Sanmar Ltd. CIN- L24230TN1985PLC011637 Hitesh Jain, Investor Relations grd@sanmargoup.com www.chemplastsanmar.com Thank You Investor relations advisor Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Shikha Puri / Shrikant Sangani shikha.puri@sgapl.net/ shrikant.sang