Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Q2 FY2021 Earnings Presentation
23 slides from Fineotex Chemical's earnings presentation, Nov 3, 2020
Slide 1: Cover letter to BSE and NSE
3' November, 2020 To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai — 400 001 Bandra East, Mumbai — 400051 Company code: 533333 Compan
Slide 2: Q2 and H1 FY2021 Earnings Presentation
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Q2 and H1 FY2021 Earnings Presentation Drilling Specialties Textile Specialties Home Care and Hygiene Specialties Other Specialties
Slide 3: Key Themes: Q2 and H1 FY2021
Key Themes: Q2 and H1 FY2021 • Q2 FY21 consolidated profit after tax of Rs. 110.1 mn, up 66.9% • H1 FY21 consolidated profit after tax of Rs. 192.1 mn, up 55.5% Financial Performance • Fineotex continues to optimise operating costs and focus on profitable growth in a challenging business environment
Slide 4: Q2 FY2021 Consolidated Financial Highlights
Q2 FY2021 Consolidated Financial Highlights Rs 547.5 mn Rs 99.6 mn Rs 110.1 mn Performance Discussion: Total Revenue EBITDA Net Profit • Q2 FY21 revenue growth was driven by gradual increase in order book from our leading customers. Expect sales trajectory to keep improving going forward 34.4% 18.2%
Slide 5: Chairman's Message
Chairman’s Message “We are pleased to deliver a robust operational performance this quarter as business returned to normalcy post the outbreak of COVID-19. We witnessed a strong revival in our flagship textile speciality chemical business. We have successfully retained our anchor customers and also
Slide 6: Newly Appointed Independent Directors
Newly Appointed Independent Directors Name Brief Profile • Dr. Anand Patwardhan aged 57, is a Ph.D. (technology) in chemical engineering, from ICT Mumbai University. He has 33 years of experience in industry as well as in academics • Presently he is working as a professor in the chemical engineering
Slide 7: Strategic Direction
Strategic Direction Leverage Fineotex’s industry insights and long standing customer relationships with Biotex’s high end product expertise and regional positioning to serve global customers Fineotex+ Biotex Synergies Upcoming brownfield facility at Ambernath, Maharashtra to be future ready for next
Slide 8: Synergistic Business Model
Synergistic Business Model Fineotex - India Biotex - Malaysia • Diverse product portfolio (400+ categories) • Niche product portfolio (50+ categories) across business segments Overview • High end super speciality textile chemical • Applications primarily across the entire textile applications value
Slide 9: Focus on Growth and Diversification
Focus on Growth and Diversification Home Care and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • A unique ‘Mosquito Life Cycle Controller’ ▪ FMCG - branded detergents • Significant potential for offering
Slide 10: Upcoming Facility at Ambernath, Maharashtra
Upcoming Facility at Ambernath, Maharashtra ➢ Located on ~4 acres of land ➢ Expect to commission first phase of the brownfield manufacturing facility in Q1 FY2022 ➢ Proposed deployment of Rs. 270 million ➢ Cater to customer demands in the existing Textile Specialities and fast growing Home Care and
Slide 11: Specialty Textile Chemicals Overview
Specialty Textile Chemicals Overview Steps Weaving Pre-treatment Dyeing Printing Finishing De-sizing, Dyeing, Rotary Exhaust Process Sizing Scouring, Washing, Printing, Padding Bleach Fixing Table Printing Enzymes, Dyes, Acids, Dyes, Binder Softeners, Wetting & Alkali Thickener, Fixer Product Polyme
Slide 12: New Product Offerings from Biotex
New Product Offerings from Biotex ‘The Bioguard Series’ of products from Biotex with water and oil repellent features in great demand post outbreak of COVID-19 11
Slide 13: Global Customer Reach
Global Customer Reach • Sales in 60+ countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Thailand, USA and Vietnam • 30+ technical marketing experts • 100+ dealers in Indian and International markets FY20 Revenue Mix 52% 48% Facilities at Mahape and Ambernath (upcoming),
Slide 14: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Operating Facts Strategic Advantages Manufacturing Excellence • FY20 Production • Strategically located plant near key Volume: 20,440 MT port close to Mumbai with • Current Utilisation: 56% logistical advantage to textile hubs across North, West, Sou
Slide 15: Board of Directors
Board of Directors Surendrakumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Navin Mittal Chairman and Managing Director Executive Director Executive Director Independent Director Alok Dhanuka CS Bindu Shah Dr. Anand Patwardhan Dr. Sunil Waghmare Independent Director Independent Director Independe
Slide 16: Management Team
Management Team Surendra Kumar Tibrewala Sanjay Tibrewala Aarti Jhunjhunwala Education: B.Com and LLB Education: B.Com and P.G. in Textile Education: B.Com and M.Com Chemicals and Processing Managing Director Chief Financial Officer Head - International Marketing Noa N. Ouakass Kedar Sankar Sonai Ra
Slide 17: Consolidated P&L Summary: Q2 and H1 FY2021
Consolidated P&L Summary: Q2 and H1 FY2021 (Rs. Million) Q2 FY21 Q2 FY20 YoY% Q1 FY 21 QoQ% H1 FY 21 H1 FY 20 YoY% Revenue from Operations 547.5 510.4 7.3% 303.9 80.2% 851.3 1,007.0 (15.5%) COGS 359.0 316.1 13.6% 209.7 71.2% 568.7 635.3 (10.5%) Gross Profit 188.5 194.3 (3.0%) 94.2 100.1% 282.6 371.7
Slide 18: Consolidated Quarterly Performance Trend
Consolidated Quarterly Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 38.1% 39.1% 19.8% 36.5% 34.4% 17.4% 18.2% 31.0% 15.4% 13.5% 510 521 547 101 100 436 80 76 304 41 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY 21 Q2 FY 21 Q2 FY 20 Q3 FY 20 Q4 FY 20 Q1 FY
Slide 19: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Figures in Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 44.5% 25.2% 42.1% 40.3% 21.9% 37.3% 36.9% 21.0% 35.5% 19.0% 18.5% 33.1% 33.2% 16.2% 17.4% 16.5% 1,823 1,963 1,344 1,429 300 347 342 1,020 1,099 277 295 1,007 851 165 186 141 FY
Slide 20: Consolidated Balance Sheet and Return Ratios Trend
Consolidated Balance Sheet and Return Ratios Trend Figures (in Rs Mn) Mar-20 Sep-20 Cash Flow from Operations /EBITDA (%)* ST Debt 28 30 83% 83% LT Debt - - 65% Total Debt 28 30 49% Cash & Cash Equivalent 179 314 35% 21% Net Cash 151 284 15% Equity 1,760 1,939 Total debt/Equity 0.02x 0.02x FY 15 FY
Slide 21: Fineotex Investment Case
Fineotex Investment Case Diversified business – top 10 customers contribute to 33% of sales and top 10 products contribute to 18% of sales Management proven acquisition track record: Biotex (73% owned) net profit has grown by a factor of 4x since acquisition in 2011 and de- leveraged into a debt fre
Slide 22: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Fineotex Chemical Limited (“Fineotex Chemical” or the Company) future bus
Slide 23: Fineotex Chemical Limited
Fineotex Chemical Limited FINEOTEX CHEMICAL LIMITED (CIN Number: L24100MH2004PLC144295) 42-43, Manorama Chambers, S. V. Road Bandra (West), Mumbai - 400 050, India Phone: (+91 - 22) 26559174 / 75, (+91 - 22) 26559176 / 77 Email: info@fineotex.com www.fineotex.com 22