Archean Chemical Industries Ltd. · NSE:ACI
Archean Chemical Industries — Q2 FY24 Earnings Presentation
23 slides from Archean Chemical Industries's earnings presentation, November 2023
Slide 1: Archean Chemical Industries Limited Q2 & H1 FY24 Investor Presentation
Archean Chemical Industries Limited Q2 & H1 FY24 - Investor Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Archean Chemical Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe f
Slide 3: Q2 FY24 Performance Highlights
Q2 FY24 Performance Highlights
Slide 4: Q2 FY24 Performance Highlights
Q2 FY24 Performance Highlights Total Revenue (Rs. mn) EBITDA (Rs. mn) Profit After Tax (Rs. mn) Geographic-Wise (%) 3,126.5 1,378.6 663.5 100% 100% 3,020.0 639.1 1,071.7 72% Export 78% 28% Domestic 22% Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 On Standalone basis 4
Slide 5: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. in mn) Q2 FY24 Q2 FY23 YoY % Total Income 3,020.4 3,126.5 (3.4) Cost of material consumed 119.4 84.7 Change in Inventory 68.2 208.4 Employee Cost 192.0 114.7 Other Expenses 1,569.1 1,340.0 EBITDA 1,071.7 1,378.6 (22.3) EBITDA Margin (%) 35.5% 44.1% Depreciati
Slide 6: Balance Sheet Statement
Balance Sheet Statement Particulars(Rs. in mn) Sept-23 Mar-23 Particulars(Rs. in mn) Sept-23 Mar-23 Shareholder's Funds 15,699.1 14,325.2 Non-Current Assets 11,837.8 11,795.6 Equity Share Capital 246.1 246.1 Property Plant & Equipment 10,522.5 10,648.1 Reserves & Surplus 15,453.0 14,079.1 CWIP 480.4
Slide 7: Cashflow Statement
Cashflow Statement Particulars (Rs. mn) Sept'23 Sept'22 Profit before Tax & Exceptional 2,131.4 1,992.4 Adjustment for Depreciation & other items 237.7 1,203.5 Operating profit before working capital changes 2,369.1 3,195.9 Changes in working capital 271.6 -283.2 Cash generated from operations 2,640
Slide 8: Archean at Glance
Archean at Glance Rs. 6,563 Mn *H1 FY24 Revenue Bromine » A leading Manufacturer of Specialty Marine Chemicals in India • Leadership position in Indian Bromine merchant sales » Strong Clientele - 29 Global & 38 Domestic Industrial Salt » Integrated production Facility located at Hajipir, Gujarat • 1
Slide 9: Key Attributes behind Strong Foundation
Key Attributes behind Strong Foundation 9
Slide 10: Key Attributes Behind Strong Foundation
Key Attributes Behind Strong Foundation Responsible Corporate 7 1 Strong Product Portfolio Proven Credential 6 2 Integrated Facility High Industry Growth 5 3 High Entry Barriers 4 Deep Engagement with Clients 10
Slide 11: 1. Strong Product Portfolio
1. Strong Product Portfolio Bromine Industrial Salt SOP Product • Bromine is the only non-metallic element that • There are 14,000 commercial uses of Salt, a • Sulphate of Potash, also known as potassium is a liquid at standard conditions source of Sodium and Chlorine which are basic sulphate, is a
Slide 12: 2. Integrated Production Facility at Hajipir, Gujarat
2. Integrated Production Facility at Hajipir, Gujarat Established Infrastructure • Archean use brine from own reservoirs as raw material which include Industrial Salt, kainite and end bittern. Other raw materials are primarily sourced from third-party suppliers in India • Globally, two most popular
Slide 13: 3. High Entry Barriers
3. High Entry Barriers Archean has proven to be a reputed producer with a track record of providing high quality products 1 2 3 4 Access to Reserves Limited number of Multi year Investment in High cost and intricacy locations globally Brine field Development of product development with a suitable cl
Slide 14: 4. Deep Engagement with Clients
4. Deep Engagement with Clients Enduring customer relationships helped to expand product offerings and geographic reach Strong Clientele Revenue Contribution Global 29 Largest Customer 31% Domestic 38 Top 10 68% High Focus on Exports Top 20 83% TOTAL 67 Clients 31% Major Clients Domestic Export 69%
Slide 15: 5. High Industry Growth
5. High Industry Growth Product Bromine Industrial Salt Sulphate of Potash (US$ billion) (mn in MT) (mn in MT) 3.92 185.00 8.70 173.00 157.00 2.86 2.96 6.50 5.55 Global Market Size 2017 2020 2025E 2017 2020 2025E 2017 2020 2025E • Increasing demand for flame retardants • Increasing industrialization
Slide 16: 6. Proven Credentials
6. Proven Credentials With Industry Standards and Regulatory Credentials • Accredited four star export house by Director General of Foreign Trade, Ministry of Key Commerce and Industry, Government of India Certificates • Member-signatory to Responsible CARE – Indian Chemical Council • REACH certific
Slide 17: 7. Responsible Corporate
7. Responsible Corporate Environment & Safety Measure Social Governance Environment and safety considerations are an Focused on education and skill development Undertakes all necessary steps to comply with important part of our operations. We and healthcare for our staff and local all the requiremen
Slide 18: 8. Strong Balance Sheet Performance
8. Strong Balance Sheet Performance** Inventory, Debtors and Creditors Turnover (in days) RoCE (%) RoE (%) Inventory Debtors Creditors 43.9 88.2 60 25.4 52 21.4 44 Sep-22 Sep-23 Sep-22 Sep-23 34 31 32 Net Debt to Equity (x) Fixed Asset Turnover (x) 2.0 1.4 1.2 Sep-22 Sep-23 0.0 Sep-22 Sep-23 Sep-22
Slide 19: Next level of Growth
Next level of Growth 19
Slide 20: Moving up the Value Chain
Moving up the Value Chain 01. Brownfield Expansion 02. Greenfield Expansion Expanded Bromine and Industrial To expand into downstream Bromine Salt capacities derivative performance products Bromine • Added a feed enrichment section at the site in Bromine • Setting up a new facility at Jhagadia, GIDC
Slide 21: Greenfield Expansion of Bromine Derivatives
Greenfield Expansion of Bromine Derivatives Acume Chemicals Jhagadia, ~Rs. 2,520 Mn Q1FY25e Pvt. Ltd. GIDC Subsidiary CAPEX Location Timeline Bromine High-end Flame Retardant Clear Brine Fluids Pure Terephthalic Acid (PTA) Synthesis Derivatives 10,000 MTPA 13,000 MTPA 5,000 MTPA • Globally, properti
Slide 22: Way Forward
Way Forward Augment Capacity The company has recently expanded capacity through debottlenecking of Bromine & Industrial Salt and will play vital role in growth trajectory Greenfield Expansion New Bromine Derivatives capacity is expected to be commercialized by FY25e at Jhagadia, GIDC which will impr
Slide 23: Thank You !
Thank You ! Company: Investor Relations Advisor: Archean Chemical Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L24298TN2009PLC072270 CIN - U74140MH2010PTC204285 Mr. Rajeev K / Mr. Raghunathan R Mr. Shrikant Sangani / Ms. Manasi Bodas rajeevkumar@archeangroup.com / shrikant.sangani@sgapl
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