Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — H1 FY18 Earnings Presentation
19 slides from Sharda Cropchem's earnings presentation, October 2017
Slide 1: Sharda Cropchem Limited Q2 & H1 FY18 Results Update
SHARDA CROPCHEM LIMITED Q2 & H1 FY18 RESULTS UPDATE October 2017
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 Q2 & H1 FY18 Results Highlights Q2 & H1 FY18 Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q2 & H1 FY18 Results: Key Highlights
Q2 & H1 FY18 RESULTS: KEY HIGHLIGHTS Q2 FY18 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 36.6% 35.5% 20.6% 18.0% 13.4% 8.8% 2,467.6 2,781.6 509.4 500.8 12.7% 1.7% 331.8 26.5% 244.0 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Revenues Gross Margin % EBITD
Slide 5: Q2 & H1 FY18 Results: Key Highlights
Q2 & H1 FY18 RESULTS: KEY HIGHLIGHTS FINANCIAL UPDATE - • Q2 FY18 Revenues increased by 12.7% YoY from Rs. 2,467.6 mn to Rs. 2,781.6 mn. • Region-wise growth YoY– Europe: 7.5%, NAFTA: 63.3%, LATAM: -13.8%, ROW -14.2% • Q2 FY18 gross profit increased by 9.4% YoY from Rs. 902.6 mn to Rs. 987.6 mn. Gro
Slide 6: Q2 & H1 FY18 Results: Division Wise Highlights
Q2 & H1 FY18 RESULTS: DIVISION WISE HIGHLIGHTS In Rs Mn Q2 & H1 FY18 YoY ANALYSIS: REVENUE BREAKUP 6,193 5,614 1,002 28.6% 965 3.8% 2,468 2,782 9.7% 514 4,649 11.6% 5,190 399 2,068 2,268 Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 Agrochemicals Non-Agrochemicals Division Revenue Share % Q2 FY17 Q2 FY18 H1FY17 H
Slide 7: Q2 & H1 FY18 Results: Agrochemical Business
Q2 & H1 FY18 RESULTS: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,068 2,268 4,649 5,190 2,068 2,268 4,649 5,190 9.3% 6.1% 8.2% 7.0% 12.6% 9.4% 13.1% 14.8% 17.4% 17.2% 13.5% 21.1% 17.7% 28.0% 22.4% 33.2% 87.4% 85.2% 90.6% 86.9% 52.0% 48.4% 52.2%
Slide 8: H1 FY18 Results: Agrochemical Business
H1 FY18 RESULTS: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 27% 25% 44% H1 FY17 H1 FY18 48% 29% 27% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues have grown by 21.1% YoY in H1 FY18 to Rs 2,489.1 mn • Fungicides reve
Slide 9: Q2 & H1 FY18 Results: Non-Agrochemical Business
Q2 & H1 FY18 RESULTS: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 399 514 965 1,002 21.5% 19.4% 19.5% 17.6% 5.3% 7.2% 13.4% 16.8% 43.5% 43.4% 40.2% 36.7% 24.9% 31.8% 26.9% 31.8% Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 Europe NAFTA LATAM RoW • Revenues in Europe & NAFTA region have risen b
Slide 10: H1 FY18 Results: Working Capital Analysis
H1 FY18 RESULTS: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 111 109 114 99 74 49 H1 FY17 H1 FY18 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS H1 FY17: 61 H1 FY18: 69 * Calculated on average inventory, receivables, creditors 10
Slide 11: Q2 & H1 FY18 Results: Consolidated Profit & Loss Statement
Q2 & H1 FY18 RESULTS: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY18 Q2 FY17 YoY % H1FY18 H1FY17 YoY % FY17 Revenue from Operations 2,781.6 2,467.6 12.7% 6,192.8 5,614.3 10.3% 13,992.3 COGS 1,794.0 1,565.1 14.6% 4,102.5 3,581.8 14.5% 8973.7 Gross Profit 987.6 902.6 9.4% 2,090.2
Slide 12: H1 FY18 Consolidated Balance Sheet
H1 FY18 CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn H1 FY18 FY17 Particulars in Rs. Mn H1 FY18 FY17 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Equity and Share Capital 902.2 902.2 Property, Plant and Equipment 112.7 9.6 Other Equity 9,350.5 8,696.2 Capital work in prog
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 and Latin America across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registration o
Slide 14: About Us: Our Presence
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Slide 15: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUE FROM OPERATIONS EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 16 % 13,992 CAGR: 22 % CAGR: 23 % 12,186 18% 20% 16% 22% 22% 14.1% 14.4% 13.6% 10,611 10.8% 11.6% 7,777 7,904 3,124 2,669 1,750 1,904 1,400 1,543 1,727 1,111 1,230 844 FY13 FY14 FY15 FY16 FY17 FY13 FY14
Slide 16: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Key Institutional Investors – 30th Sep 2017 % Holding Market Data As on 26th October 2017 DSP Blackrock Investment Manager 6.26% Market capitalization (Rs Mn) 39,963.1 HDFC MF 4.29% Price (Rs.) 443.05 Pinebridge 3.78% No. of shares outstanding (Mn) 90.2 Goldman Sachs
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. E
Slide 19: For Further Queries
FOR FURTHER QUERIES: Mr. Conrad Fernandes Ms. Pushpa Mani / Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: cfernandes@shardaintl.com Email: pushpa.mani@dickensonir.com / nilesh.dalvi@dickensonir.com Contact No: +91 22 6678 2800 Contact no: +91 9911684123 / 9819289131