Seya Industries Ltd. · NSE:SEYAIND
Seya Industries — Q3 FY2019 Earnings Presentation
39 slides from Seya Industries's earnings presentation, February 2019
Slide 1: Intelligence of Integration
Intelligence of Integration Investor Presentation February 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Seya Industries 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 securitie
Slide 3: Business Updates
Business Updates Fund Raise: The company is planning to raise Rs. 100 Crores for the various on-going projects which includes the brownfield expansion and de-bottlenecking in phase 1 and augmentation of long-term working capital of the company. The said financing will be by way of: (i) Long tenure N
Slide 4: 9MFY19: Performance Trend
9MFY19: Performance Trend Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) +39% +118% 317 109 249 228 77 50 9M FY17 9M FY18 9M FY19 9M FY17 9M FY18 9M FY19 PAT (Rs. In Crs) Margin +157% 34.3% 64 30.8% EBITDA %^ 21.8% 20.3% 39 PAT % 15.8% 25 11.0% 9M FY17 9M FY18 9M FY19 9M FY17 9M FY18 9M FY19 Standalone b
Slide 5: Q3FY19: Performance Trend
Q3FY19: Performance Trend Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) +34% +107% 105 36 88 31 78 18 Q3FY17 Q3FY18 Q3FY19 Q3FY17 Q3FY18 Q3FY19 PAT (Rs. In Crs) Margin +141% 34.8% 34.8% 23 EBITDA %^ 16 22.6% 21.6% 17.8% PAT % 9 12.0% Q3FY17 Q3FY18 Q3FY19 Q3FY17 Q3FY18 Q3FY19 Standalone basis As per IND
Slide 6: Improving Financial Performance
Improving Financial Performance Sales Volume (MT) EBITDA (Rs. / MT) 23,387 76,796 21,757 20,099 14,900 15,100 14,156 45,081 33,961 22,300 24,011 9,900 FY14 FY15 FY16 FY17 FY18 9MFY19 FY14 FY15 FY16 FY17 FY18 9MFY19 On commissioning of Phase II, expect EBITDA per ton excluding Sulphuric Acid on a sus
Slide 7: Performance Trend on Yearly basis
Performance Trend on Yearly basis Revenue (Rs. In Crs) EBITDA^ (Rs. In Crs) +27% 346 106 109 309 317 275 +61% 248 75 50 131 34 16 FY14 FY15 FY16 FY17* FY18* 9MFY19* FY14 FY15 FY16 FY17* FY18* 9MFY19* PAT (Rs. In Crs) Margin 34.3% 64 30.8% EBITDA %^ 52 24.2% +99% 42 18.2% 20.3% 15.1% PAT % 27 12.1% 1
Slide 8: 9MFY19: Standalone Profit & Loss Statement
9MFY19: Standalone Profit & Loss Statement Particulars (Rs. In Crs.) Q3FY19 Q3FY18 YoY % 9MFY19 9MFY18 YoY % FY18 Total Revenue (Net) 104.7 88.4 18.4% 317.4 249.0 27.5% 346.2 Total Raw Material 51.4 44.4 162.7 142.3 197.0 Employee Expenses 1.6 0.9 4.6 2.5 4.6 Other Expenses 16.0 12.3 42.4 27.9 39.1
Slide 9: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Sep-18 Mar-18 Equity & Liabilities (Rs. Crs.) Sep-18 Mar-18 Non-current assets 1,286.2 1,133.3 Equity 782.0 740.3 Property, Plant and Equipment 736.4 742.2 Equity Share capital 24.6 24.6 Capital Work In-Progress 542.8 378.7 Other equity 757.4 715.7 Financia
Slide 10: Fully Integrated Benzene based Specialty Chemical Manufacturer
Fully Integrated Benzene based Specialty Chemical Manufacturer India’s only Single Location Fully Backward Integrated Benzene based Specialty Chemical Manufacturer Products with Profitable Product Technologically unmatched purity Fully Equipped Selection to capture driven to optimize standards - Str
Slide 11: Diversified Product Portfolio
Diversified Product Portfolio CHLORINATION Existing Products Up-coming Products MCB Expansion of Nitro AMMONOLYSIS MNCB Chloro Benzenes ONCB Sulphuric Acid PNCB OA & FRBB HYROGENATION 3,3 Dichloro Benzidine Sulphur trioxide based Specialty Chemicals NITRATION Para Nitro Aniline Oleums 25% & 65% HCL
Slide 12: Multiple End-users
Multiple End-users Industry-wise Revenue Breakup – FY18 AGRO PHARMACEUTICAL PETROLEUM PRINTING INK PHARMA CHEMICALS INTERMEDIATES REFINING Others, 6% Agro Chemicals, 6% Dye Print Ink, Intermediates, 49% 10% PIGMENT TEXTILE COSMETICS & SYNTHETIC DETERGENTS & & CHEMICALS COLORING AGENTS FABRIC SOFTENE
Slide 13: Broad-based Clientele
Broad-based Clientele Long term Relationships Increase Product Offering to Customers Technical Sales Support given to Customers No Customer contributes more than 10% of Revenue 13
Slide 14: Growth Investments
Growth Investments Growing End-user Demand Capacity Expansion (MTPA) +1678% 588,485 End-User expected to grow at 9% CAGR over next 7 years to reach $90 Bn by 2023 Our Competitive Edge 56,400 33,100 FY2013 FY2018* FY2020E Quality Environmental Land Products (Chemical Notified Zone) China Clearance *I
Slide 15: Plant Engineered to Excellence
Plant Engineered to Excellence Our Technology Partners Phase II • Highly experienced and reputed EPC contractors • German Technology Suppliers • Successful track-record of more than 105 years backed by performance guarantee • State-of-the-art, cutting edge, continuous, fully automated process techno
Slide 16: Techno-commercial Leadership
Techno-commercial Leadership Mr. Ashok G. Rajani Mr. Amrit A. Rajani Chairman & Managing Director Chief Operating Officer • A Rank holder in Chemical Engineering from L.I.T. Nagpur, he started his career • Mr. Amrit is son of Mr. Ashok Rajani, has been associated with Seya, since 2010 with Union Car
Slide 17: with Strong Senior Management team
with Strong Senior Management team Mr. Asit Kumar Bhowmik Mr. H N Desai Executive Director Sr. Vice President • He is a Chemical Engineer with more than 40 years of experience in Chemical • He has more than 40 years of Experience in Project Management & Execution, Industries and has worked with Hind
Slide 18: Strategic Directions for Profitable Growth
Strategic Directions for Profitable Growth Product Selection Integration Efficiencies 18
Slide 19: Product Selection
Product Selection
Slide 20: Growth by way of Right Product Selection
Growth by way of Right Product Selection Phase II Expansion (FY20E) Profitable Product Selection to capture Horizontal expansion, complete Value-chain backward integration & Value added products “De-risked Portfolio with diverse Products ✓ Expansion of Nitro addresses different End-user applications
Slide 21: Multiple levers of Growth
Multiple levers of Growth Capacity Distribution Quantity (MTPA) Rechargeable Printing Electronics – Preservative for Batteries 136,701 Inks Wine, Paper, Food Mining & Metals Agrochemicals 26% Cosmetics Coloring Agents 55,191 Metal Petroleum 11% & Refining 74,979 Processing Industry 14% Health Care D
Slide 22: Integration
Integration
Slide 23: Growth by way of Integration
Growth by way of Integration Backward Integration Phase II - Project Rationale ▪ Cost Savings, ▪ De-risking Material Sourcing, Particulars Savings ▪ Reducing Risk of Handling Hazardous Raw Material Cost Bulk Raw materials & Intermediates ▪ Corrosive Raw Material Savings presently procured at 1.5 tim
Slide 24: Phase I: Manufacturing Process
Phase I: Manufacturing Process Mono Chloro Benzene Sold outside (MCB) Captive Consumption for Para Nitro production of : Aline Para Nitro Aline Sold outside 2, 4 Di Nitro Chloro Benzene 2, 4 Di Nitro Para Nitro Chloro Chloro Benzene (PNCB) Benzene Sold outside Captive Consumption for production of N
Slide 25: Phase II: Manufacturing Process
Phase II: Manufacturing Process Liq.SO2 Sulphuric Sulphur Oleum 24% Liq. SO3 Acid Thionyl Chloride Chlorine Chloro Sulphonic Acid HCL Oleum 65% Di Methyl Aniline Aniline Coal Fired 14 MW HP Steam To Phase II, III Di Methyl Sulphate Methanol Boilers Co-Gen Power PNCB To Phase I Hydrogen Sulphuric Aci
Slide 26: Post Expansion of Phase II Capacities
Post Expansion of Phase II Capacities Phase I Phase II Expansion Converting –ve realisation product: 56,400 527,885 Hydrochloric acid to Profitable product: Chloro 120,000 Sulphonic acid 32,400 258,664 Higher requirement of 24,000 Sulphuric acid for 149,221 manufacturing • Reduces transportation & h
Slide 27: Efficiency
uy hnolo ATO i. thas oC al Efficiency faa emi os aulotale contra capt ices future $22 om Poa me Toto alee: gees i a 27
Slide 28: Growth by way of Efficiencies
Growth by way of Efficiencies ✓ Global Size Manufacturing Plant driven by the latest world class State of the Art Technology Cost Efficiencies: ✓ Near “All – Weather” International ports viz., JNPT, Dahej, Kandla & Mundra • Transportation cost • Handling cost ✓ Proximity advantage of Chlor Alkali an
Slide 29: Internationally proven Automated Technology
Internationally proven Automated Technology Fully Automated Plant – Leading to Cost Efficiencies 1.9 2.5 1.8 Avg. Employee Cost (Rs. In Lacs/yr)* FY16 FY17 FY18 2.4 2.6 2.3 Fixed Cost as % to Sales FY16 FY17 FY18 Emerge as one of the Highest Quality at lowest cost producers of Benzene derivatives in
Slide 30: R&D is our Core Competence
R&D is our Core Competence From scientific conceptualization-to-Plant scale-up-to- Customer end-use Developing new products Improving process to meet capabilities Target market needs RESEARCH & DEVELOPMENT Delivering superior technical service and Reducing technical dialogue with our manufacturing c
Slide 31: Execution of Strategy on Track
Execution of Strategy on Track Phase II (Rs. In Crs) Rationale 735 Additional Installed Capacity: 527,900 MTPA, ✓ 50% Capitve Consumption ✓ 30% for existing customers ✓ 20% to substitute import 585 Additional Revenue expected: 10-12 bn at 80% utilization Debt to Equity 100 1:1 50 Current Project Com
Slide 32: Key Takeaways
Key Takeaways Fully Automated Process Plant - Low manpower cost Operates in Profitable Segments Single location Composite Fully Value addition by way of backward & Forward Integration Recycle & Re-use of Manufacturing facility By-Products Low cost of Effluent treatment as a result of Higher Yield &
Slide 33: Financial Highlights
Financial Highlights 33
Slide 34: Strong Capital Employed
Strong Capital Employed Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 H1 FY19 ROCE = EBIT / Net Capital Employed Equity = Share Capital + Reserves & Surplus 52.1 65.1 89.1 366.6 737.3 782.0 Quasi Equity: NCRPS + Unsecured Loans 370.7 386.0 408.9 234.1 234.1 234.3 31.0% Total Equity 422.8 451.1 498
Slide 35: Stable Asset Turnover
Stable Asset Turnover Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 H1 FY19* Asset Turnover (x) Net Sales 131.5 247.6 275.3 308.6 346.2 398.3 1.30 1.20 Gross Block of Fixed Assets 406.2 412.1 464.9 503.1 838.8 840.8 1.10 1.10 1.10 Less: Unutilised Gross Block (Land for Future Expansion) 209.0 209.
Slide 36: Financial Parameters
Financial Parameters Particulars (Rs in Cr) FY14 FY15 FY16 FY17 FY18 H1 FY19 Debt/ Equity (x) Equity = Share Capital + Reserves & Surplus 52.1 65.1 89.1 366.6 737.3 782.0 0.42 Quasi Equity: NCRPS + Share Application Money + 370.2 386.0 409.0 234.1 234.1 234.3 0.32 Subordinated Unsecured Loans from P
Slide 37: Working Capital Cycle
Working Capital Cycle Debtor Days^ Inventory Days 93 80 87 82 70 76 76 56 58 51 49 20 FY14 FY15 FY16 FY17 FY18 H1 FY19* FY14 FY15 FY16 FY17 FY18 H1 FY19* Creditor Days Working Capital Days 26 135 132 123 119 110 17 92 15 11 10 8 FY14 FY15 FY16 FY17 FY18 H1 FY19* FY14 FY15 FY16 FY17 FY18 H1 FY19* ^Ca
Slide 38: Promoter Capacity and Commitment
Promoter Capacity and Commitment ✓ Promoter infused equity through warrants: Rs. 69 Crores at Rs. 180 per share Promoter ✓ Unsecured loans of Rs. 126.9 Crores converted to equity Holding: at Rs. 180 Per share 74.53% Equity Infusion of ✓ Equity (private placement) infusion by Reliance Nippon Rs. 200
Slide 39: Contact Us
Contact Us Seya Industries Ltd CIN: L99999MH1990PLC058499 CIN: U74140MH2010PTC204285 Ms. Manisha Solanki Mr. Rahul Agarwal Email : corporate@seya.in Email : rahul.agarwal@sgapl.net Tel: +91 79770 90416 www.seya.in Ms. Neha Shroff Email: neha.shroff@sgapl.net Tel: +91 7738073466 www.sgapl.net 39