Slide 1: GHCL Limited Investor Update – April 2019
GHCL LIMITED Investor Update – April 2019
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
Quarterly & Agenda Annual Update 4 Company Overview 16 Inorganic Textiles Chemicals Segment Segment 25 32 3
Slide 4: Quarter & Annual Update – Q4 & FY19
Quarter & Annual Update – Q4 & FY19 4
Slide 5: Management Address
Management Address Yet again achieved a PAT growth of 44% PAT in Q4 FY19 compared to Rs. 82 crore in Q4 FY18 with highest ever EBITDA of Rs. 241 crore in - R. S. Jalan, MD, GHCL any quarter. o Inorganic – Benefited from higher sales volumes and improved spread. o Textile – Significant increase due
Slide 6: Key Financial Highlights – Q4 & FY19
Key Financial Highlights – Q4 & FY19 In Rs. crore Particulars Q4FY19 Q4FY18 YoY FY19 FY18 YoY Revenue 915 726 26% 3,385 2,917 16% EBITDA 241 185 31% 784 649 21% EBITDA % 26.4% 25.5% 93 BPS 23.2% 22.3% 90 BPS PBT 181 120 50% 541 415 30% Less: Tax Expense 62 38 63% 180 133 35% PAT 119 82 44% 361 282 2
Slide 7: Inorganic Segment Highlights – Q4 & FY19
Inorganic Segment Highlights – Q4 & FY19 Particulars Q4FY19 Q4FY18 YoY FY19 FY18 YoY Production (Lac MT) 2.59 2.43 6% 9.72 9.37 4% Sales (Lac MT) 2.57 2.41 7% 9.33 9.04 3% Revenue (Rs. Crores)* 607 507 20% 2,182 1,872 17% EBITDA (Rs. Crores) 212 173 23% 672 600 12% EBITDA % 35% 34% 1% 30.8% 32.1% (1
Slide 8: Financial Performance – Inorganic Chemicals (Quarterly)
Financial Performance – Inorganic Chemicals (Quarterly) Revenue* (Rs cr) EBITDA (Rs cr) 551 607 212 507 491 534 176 173 149 135 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 EBITDA Margin Production in MT ('000) 34.0% 32.0% 35.0% 27.4% 27.9% 259 252 243 242 220 Q4FY18 Q1FY19
Slide 9: Textiles Segment Highlights – Q4 & FY19
Textiles Segment Highlights – Q4 & FY19 Particulars Q4FY19 Q4FY18 YoY FY19 FY18 QoQ Revenue (Rs. Crores)* 308 219 41% 1,202 1,046 15% EBITDA (Rs. Crores) 29 12 134% 112 49 129% EBITDA % 9.4% 5.7% 3.8% 9.3% 4.7% 4.6% Revenue increased by 41% as compared to Q4FY18, which is due to volume growth coup
Slide 10: Quarterly Performance - Textile Segment
Quarterly Performance - Textile Segment Revenue (Rs cr) EBITDA (Rs cr) 324 308 31 34 305 29 265 219 18 12 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 EBITDA Margin Capacity Utilization 10.5% 59% 57% 61% 56% 10.1% 9.4% 46% 5.7% 6.7% Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q4FY18
Slide 11: Profit & loss Statement
Profit & loss Statement Rs. In Crores Particulars Q4FY19 Q4FY18 YoY FY19 FY18 YoY Sales* 915 726 26% 3,385 2,917 16% Operating Expenses 673 541 24% 2,601 2,268 15% EBITDA 241 185 31% 784 649 21% EBITDA Margin 26.4% 25.2% 93 BPS 23.2% 22.3% 90 BPS Depreciation 30 34 (11%) 116 109 6% EBIT 211 151 40%
Slide 12: Balance Sheet
Balance Sheet Particulars 31st Mar 2019 31st Mar 2018 Non Current Assets (A) 2,821 2,619 Current Assets (a) 1,174 1,006 Current Liabilities (b) 491 488 Working Capital (B) = (a) – (b) 682 518 Capital Employed (A)+(B) 3,503 3,137 Net Worth (C) 1,952 1,622 Deferred Tax & Others (D) 259 201 Long Term D
Slide 13: Growth with Debt Reduction – Efficient Capital Allocation
Growth with Debt Reduction – Efficient Capital Allocation OPERATIONS DEBT SHAREHOLDERS CAPEX Generated Cash Profits ` (net of Tax) of ` Rs. 537 crore Increase in Decrease in Dividend Rs.284 Working Debt of Rs.59 crore Capital of crore ESOP Inorganic Chemicals Rs. 178 Rs. 22 Equity Issued Rs. 204 cro
Slide 14: Business Environment and Key Advantages
Business Environment and Key Advantages Industry GHCL Scenario Strength Strong domestic growth in both Glass & Detergents, with firm pricing Soda Ash Staggered capacity addition by peers, however may result in some oversupply in FY20. Full benefit of brownfield expansions to ensue in FY20. E
Slide 15: Textiles: Innovative offering
Textiles: Innovative offering Sleep – Peaceful, rejuvenating, therapeutic, sleep – the best meditation according to Dalai Lama XIV. We have been working on combining the goodness of sleep with the health and wellness benefits of specific sustainable GHCL’s Nile Harvest Egyptian fibres, special infus
Slide 16: Company Overview
Company Overview 16
Slide 17: GHCL Overview
GHCL Overview 3 decades of Indian Single largest soda ash plant Manufacturing at one location in India experience Professionally Listed on 2 premier managed with 6,000 stock exchanges of strong workforce India Focus to emerge as a Business Philosophy of sustainable business Inclusive growth of all o
Slide 18: Core Business Segment Presence
Core Business Segment Presence Among top 3 soda ash players. o Catering 1/4th of Indian soda Spinning ash demand o 1,85,712 Spindles Inorganic o Margin leader in the industry; o 3,320 Rotors Textiles Chemicals with highest capacity utilization o 5,760 TFO Drums Segment of +95% o 5 Air jet Spinni
Slide 19: Company’s strong core comes from Pre-eminent Professionals
Company’s strong core comes from Pre-eminent Professionals RS Jalan Raman Chopra NN Radia Sunil Bhatnagar Manu Kapur M. Sivabalasubramanian Managing Director CFO & Executive President & COO, President Marketing, President & CEO, CEO, Spinning Director Soda Ash Soda Ash Home Textiles Unique leaders
Slide 20: Business philosophy going forward
Business philosophy going forward Focus on Value Systems • To create a value systems that Sustainable Robust & defines our Inclusive Growth Profitable Culture • Business Growth Philosophy of • To grow profits at “Sustainable CAGR 20% on a Inclusive Growth” long term horizon involving all the stakeho
Slide 21: Robust & Profitable growth..
Robust & Profitable growth.. Revenue EBITDA PAT EPS Rs. 3,385 Crore in Rs. 784 Crore in FY19 Rs. 361 Crore in FY19 FY19 recording a recording a CAGR recording a CAGR Rs. 36.8 per share in CAGR growth of 9% growth of 13% in last growth of 25% in last FY19 in last 5 years 5 years 5 years 21
Slide 22: Core values at forefront..
Core values at forefront.. Respect Trust Ownership Integrated team Work Thoughtful and show Confidence in each Take Responsibilities of Each person to work regards for another others capabilities and own decisions and towards larger group person. intentions. actions. objectives. GHCL is an unique wo
Slide 23: Inclusive growth of stakeholders
Inclusive growth of stakeholders Implemented Pay for Performance and Pay for Behaviour. 7x growth in market capitalisation in last 5 Wide Allotment of ESOP’s till middle management. years. (Rs. 341 Cr. in FY 14 to Rs. 2,413 Cr. in FY 19). 360 Core value propagation across organisation. Hig
Slide 24: Firm Institutional & HNI’s Holding – 37.08%
Firm Institutional & HNI’s** Holding – 37.08% Institutional Holding – 32.21%, HNI’s**- 4.87% Non-Institutional Holding-44.05% 16.12% 12.31% 20.98% Foreign Portfolio Mutual Body Corporates Investors Funds 44.66% 18.87% Promoter & Promoter Group 23.07% 3.78% 4.87% Insurance Companies/ Others HNI’s** F
Slide 25: Inorganic Chemicals
GHCL Inorganic Chemicals ‘SE NO HOOKS ppl i pe
Slide 26: Margin leadership in Soda Ash
Commanding a leadership in manufacturing of Soda Ash +95% 1.10 MnMT Margin leadership +30%* Soda ash capacity; Captive sources of EBITDA Margins; Capacity utilization; 25% market share of raw material consistent high Highest in industry domestic demand margins Captive sources of raw materials Capt
Slide 27: Soda Ash Key Differentiators
Key Differentiators Single largest Soda ash plant in India Expertise and Specialisation of 30 years Best in class productivity of +95% Soda Strategic control over key raw materials Ash Innovated from coke to briquette for cost optimisation Focus on cost competitiveness with Quality circle 27
Slide 28: Global outlook on the soda ash industry
Global outlook on the soda ash industry GLOBAL SIZE: CAPACITY-69 MMT, PRODUCTION-60 MMT EUROPE CAPACITY: 14.5 MMT PRODUCTION: 12.0 MMT Global soda Ash market o Overall demand supply scenario remains balance. CHINA o Lower Chinese volumes due to CAPACITY: 31.0 MMT maintenance shut down coupled with P
Slide 29: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share.* (up by 1%) Domestic Demand Concentration. Import, West, 23% Tata Chem, 15% 20% North, 29% Others, South, 5% 19% GHCL, Nirma, 25% East, Gujarat, 27% 9% 28% * Based on External demand (Source : IMA) Domestic Demand & growth trend (CAGR Grow
Slide 30: Dense Soda Ash used in glass bangles
. GHCUL's Dense Soda Ash is an important ~ <3 * “> industrial chemical used in the manufacturing ; : | Se. of colourful glass bangles.
Slide 31: 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 32: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Doubled capacity from 30,000 to 60,000 MT in December 2017, Our market share will accordingly go up from current market share of 13% Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire
Slide 33: 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 34: Home Textile Segment
Home Textile Segment 34
Slide 35: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain Spindle capacity close to double of home textile requirement giving an opportunity to benefit from Bed Sheets & Sold in expansion of sheeting capacity Made-up’s Market o Spinning unit located near Madurai in Tamil Nadu o Yar
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: Home textile collections
THE NATURUG ee COLLECTION eno, THE 100% ORGANIC COTTON THE Pn 2: NEFERTITI SATIVA pine NEFERTITI Signdficant reduction in water, steam and electricity consumption SegrOUee Mee 7 ema ae Pr secsutonicy Me irc azo wacwers Se 1 eee Rain ie aaa aa Plate neon darataty Wis o tly sustinable Boor which retur
Slide 38: Reinventing with Rekoop
Reinventing with Bottle Bed sheets Flake DNA Tags Yarn Fibre Patented technology developed in Fibre to be Manufactured and Manufactured and Sold by GHCL under association with Applied DNA supplied by Reliance Industries REKOOP brand Sciences(ADNAS) & GHCL. 38
Slide 39: 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; Price hikes whenever possible Soda Continuing to drive Ash Expanding product performance in portfolio and spinning. Value- geographic added products to foot
Slide 40: Awards & Recognitions
Awards & Recognitions Referred as Great Place to Awarded trio of Golden work in two consecutive Peacock awards for Corporate years of participation Governance, Corporate social Improved Ranking to 67 responsibility and National from 99 in last year. Quality Amongst top 25 ranking for manufacturing i
Slide 41: 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 42: Thank You
Thank You