Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q3 FY2020 Earnings Presentation
35 slides from Himadri Speciality Chemical's earnings presentation, Feb 14, 2020
Slide 1: Cover letter to stock exchanges
Ref. No: HSCL / Stock-Ex/2019-20/97 Date: 14/02/2020 E-mail: bisharmaanimadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kuria Complex, Dalai Str
Slide 2: Investor Presentation Q3 FY20
INVESTOR PRESENTATION Q3 FY20
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Standalone Performance Highlights
Standalone Performance Highlights Rs. In Crs Revenue EBITDA PAT 587 133 82 487 428 94 51 35 17 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 3
Slide 5: Other Key Highlights
Other Key Highlights Sales Volume (MT) EBITDA for Q3FY20 (Rs. In Crs) EBITDA largely Impacted on account of: • Drop in sales realizations due to slow down & Sales Volume maintained inspite of the • One-offs like inventory write downs/losses & difficult market conditions charging of advances/receivab
Slide 6: Strong Balance Sheet
Strong Balance Sheet Rs. In Crs. Long Term Borrowings Net Working Capital Loan 233 314 223 296 210 281 200 197 Mar 19 Jun 19 Sep 19 Dec 19 Mar 19 Jun 19 Sep 19 Dec 19 5
Slide 7: Credit rating Reaffirmed
Credit rating Reaffirmed Long Term Bank Non-Convertible Long Term Bank /Short Commercial Paper Debenture Issue Facilities Term Bank Facilities ₹ 150 Crores ₹ 48.68 Crores ₹ 1,625 Crores ₹ 300 Crores CARE AA- ; Stable / CARE CARE AA- ; Stable CARE AA- ; Stable CARE AI+ A1+ (Double A minus; Outlook: (
Slide 8: Standalone Profit & Loss
Standalone Profit & Loss Profit and Loss (in Rs. Crs) Q3FY20 Q3FY19 Y-o-Y Q2FY20 Q-o-Q 9MFY20 9MFY19 Y-o-Y Revenue from Operations 428 587 -27.0% 487 -12.1% 1,439 1,793 -19.7% Raw Material 318 389 321 976 1,200 Gross Profit 110 198 -44.3% 166 -33.8% 463 593 -21.9% Employee Cost 18 16 20 54 42 Other
Slide 9: Ready for the next phase…
Ready for the next phase… Next Phase of Innovation and R&D Next Phase of High-Value Products Next Phase of Earnings Next Phase of Growth 8
Slide 10: Next Phase of Innovation and R&D
Next Phase of Innovation and R&D An Techno- Innovation Commercial Mindset Team World Class Laboratory Large Knowledge Continuous Bank R&D 14 7% 11% New grades introduced & Reduction in energy Increased productivity of commercialised in consumption in certain certain grades through Speciality Carbon
Slide 11: Next Phase of High Value Products
Next Phase of High Value Products Coal Tar Advance Carbon Material Carbon Black Speciality Carbon Black Sulphonated Naphthalene Naphthalene Formaldehyde Most Integrated Global well-diversified Product portfolio with Strong Speciality Carbon Corporation Globally Competitive 10
Slide 12: Expansion in High-Value Products
Expansion in High-Value Products Speciality Carbon Black Advance Carbon Material Advance Carbon Materials project Increase application of Focus on Speciality Set-up of Speciality Carbon Black of 20,000 MTPA is progressing well lithium-ion batteries in Carbon with High at West Bengal with an annual t
Slide 13: Next Phase of Earnings
Next Phase of Earnings Standalone Performance Rs. In Crs Revenue EBITDA# PAT 21% 20% 27% 2,377 538 307 1,971 450 243 FY18 FY19 FY18 FY19 FY18 FY19 Key Milestones Revenue EBITDA# PAT Crossed Crossed Crossed Rs. 2,000 Rs. 500 Rs. 300 Crores Crores Crores mark mark mark #EBITDA excludes FX Fluctuation
Slide 14: Priorities for Cash
Priorities for Cash NEW CAPACITIES DEBT IMPROVED OPERATING ANNOUNCED REDUCTION EFFICIENCIES Working Capital days 200 Focus on Speciality Carbon with High Value- -111 additions & Performance » Net Debt decreased by INR 688 Crores from INR 163 1,118 Crs. in FY14 to INR 430 Crs. in FY19 thus 148 » Set-
Slide 15: Balance Sheet Strength & Financial Flexibility
Balance Sheet Strength & Financial Flexibility Net Debt Net Debt / EBITDA* 5.26x Strong Balance Sheet and Sufficient Financial flexibility… 2.90x 1,118 Rs. in Crs 1,030 1.40x 0.80x 805 Mar-16 Mar-17 Mar-18 Mar-19 717 629 Net Debt / Equity 430 0.87x 0.67x 0.43x 0.26x Mar-14 Mar-15 Mar-16 Mar-17 Mar-1
Slide 16: Operating Efficiency leading to Higher Returns
Operating Efficiency leading to Higher Returns Working Capital (No. of days) ROCE (excl. CWIP) (%) +395 bps Improved by 26.2% 112 23 days 22.3% 89 Mar-18 Mar-19 ROCE (excl. CWIP) =EBIT/( Equity + Total Debt – Cash & Cash Equivalents – CWIP) ROCE (%) +262 bps 24.6% 22.0% Mar-18 Mar-19 Cash generation
Slide 17: Next Phase of Growth
Next Phase of Growth High Value Right Capacity Strong Clientele Product Pipeline Product Strategic Strong R&D Leadership Location Global Diversified End Management Cutting Edge Markets Team Technologies 16
Slide 18: Strategic Growth Priorities
Strategic Growth Priorities Advance Carbon Coal Tar Pitch Carbon Black SNF Material Serving core sectors of economy Focus on Speciality Carbon with Increase application of lithium-ion Widen the Product Portfolio by through Aluminium & Graphite High Value-additions & batteries in the Sunrise Sectors
Slide 19: Financial Performance
ass Ps Financial Performance p ~ Tih 18
Slide 20: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (In Rs. Crs) 9MFY20 FY19 FY18 Net Revenue From Operations 1,441 2,422 2,022 Cost of Materials Consumed 976 1,600 1,365 Gross Profit 465 822 656 Employee Benefits Expense 55 60 48 Other Expenses 162 200 155 EBITDA 248 563 452 Other Income 4 8 5 Foreign Exchange
Slide 21: Validation through Awards & Recognition 2018
Validation through Awards & Recognition 2018 CII Water Management Award World’s 100 Greatest Brands Winner in Within the Fence Category in CII’s Water Received at the Fourth edition of India-UAE Business and Management National Competition for Excellence Social Forum Asia Pacific Entrepreneurship Aw
Slide 22: Business Overview
Business Overview 21
Slide 23: Product Development was a Clear Focus
Product Development was a Clear Focus 2010 2019 » Aluminium Grade Pitch » Heavy Creosote Oils » Graphite Grade Binder Pitch » Anthracene Oil/Carbon Black » Coal tar pitch – Binder grade » Graphite Grade Zero QI Oil/ CT Oil » Coal tar pitch – Impregnating (Quinolene Insoluble) coal tar » SNF » Carbon
Slide 24: Graphite Grade Coal Tar Pitch
Coal Tar Pitch : Critical Input in Downstream Industries Coal Tar Pitch Graphite Grade In Graphite Electrode Binder Pitch Manufacturing Graphite Grade Zero QI Coal tar Anode Impregnating Pitch Special Pitches Material In graphite electrode, nipple Used by DRDO in long range warhead missiles. In carb
Slide 25: Speciality Carbon Black: Niche Applications
Speciality Carbon Black : Niche Applications Forward Integration to convert Coal Tar Oil into Carbon Black 3rd Largest Carbon Black Producer in India with Anything that is manufactured Black 180,000 MTPA has With Superior Inhouse Raw Carbon Black Material & R&D Capabilities launching Speciality Carb
Slide 26: Naphthalene Value Proposition
Naphthalene Value Proposition Special Grade Naphthalene Special Grade Naphthalene is formulated to cater customer's niche requirements in dyestuff and dyes intermediates application Naphthalene Moth Ball Moth Balls is made by using superior grade chemical composition and leading-edge techniques in c
Slide 27: SNF: Next Generation products
SNF : Next Generation products SNF – Next Generation Product for the Construction Chemical Industry (Admixture), Agro chemicals, Latex, Gypsum Largest Indian manufacturer of SNF with an installed capacity of 68,000 MTPA Highest Purity SNF manufactured from In-house produced Naphthalene Penetration o
Slide 28: High Performance Construction Chemicals
High Performance Construction Chemicals » Sulphonated Naphthalene Formaldehyde (SNF) is a speciality chemical condensate that helps improve concrete mixes by dispersing cement particles for extended workability and reinforcing compressive flexural strength ▪ Naphthalene, one of the by product of Coa
Slide 29: Advance Carbon Material
Advance Carbon Material Forward Integration from Coal Tar to Advance Carbon Material Anode Material used in Lithium-ion Batteries Only Producer of Advance Carbon Material in India Best in class Proprietary Technology With Cost Leadership 28
Slide 30: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Missiles Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 29
Slide 31: If You Can Be One Thing, Be Dependable
If You Can Be One Thing, Be Dependable CTP Clientele CB Clientele Others Clientele 30
Slide 32: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : CIN: L27106WB1987PLC042756 CIN: U74140MH2010PTC204285 Mr. Somesh Satnalika Ms. Payal Dave / Ms. Neha Shroff VP Strategy & Business Development +91 9819916314/ +91 7738073466 Email: ssatnalika@himadri.com Email: payal.Da
Slide 33: Press release: Sales volume maintained in challenging environment
Sales Volume maintained inspite of challenging environment ✓ Sales Volume at 83,520 MT ✓ Revenues at Rs. 428 crore Investor Release: 14th February 2020, Kolkata Himadri Speciality Chemical Limited reported results for the quarter & nine months ended 31st December 2019 Standalone Financial Highlights
Slide 34: Commentary by MD & CEO
Commenting on the results and performance, Mr. Anurag Choudhary, MD & CEO of Himadri Speciality Chemical Ltd said: “Your Company has continued to maintain its market share and volume even in the challenging scenario. Our volumes were maintained in the last quarter at 83,520 MT. The profitability of
Slide 35: About Himadri Speciality Chemical Ltd
About Himadri Speciality Chemical Ltd Himadri Speciality Chemical Ltd (“Himadri Speciality”) was established in 1987, is a leading Carbon corporation with one-of-its-kind vertical integration in the world with headquarters in Kolkata, West Bengal. The Company is a market leader and significant marke
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