Fineotex Chemical Limited · NSE:FCL
Fineotex Chemical — Q1 FY2023 Earnings Presentation
27 slides from Fineotex Chemical's earnings presentation, Jul 30, 2022
Slide 1: Fineotex Earnings Presentation filing letter
FINEOTEX A Speciality Chemical Producing Public Listed Company lO41 Ulh July 30, 2022 To, General Manager, The Manager, Listing Department, Listing & Compliance Department BSE Limited, The National Stock Exchange of India Limited P.J. Towers, Dalai Street, Exchange Plaza, Bandra Kuria Complex, Mumba
Slide 2: Fineotex Chemical Limited Q1 FY2023 Earnings Presentation
Fineotex Chemical Limited (BSE: 533333; NSE: FCL) Textile Q1 FY2023 Specialties Earnings Presentation Other Specialties Cleaning & Hygiene Specialties Drilling Specialties
Slide 3: Q1 FY2023 Consolidated Financial Highlights
Q1 FY2023 Consolidated Financial Highlights Surendrakumar Tibrewala Chairman and Managing Director Rs 1,358 mn Rs 262 mn Rs 203 mn Consolidated EBITDA Net Profit Revenue “We have started the new FY with a strong first quarter performance. The broad-based growth across all our business segment 115% 1
Slide 4: An Introduction to Fineotex
An Introduction to Fineotex Specialty chemicals producer with a focus on textiles 470+ ~70 chemicals Product Categories Countries Present Team of 34 professionals for providing technical solutions to customers Bluesign, ZDHC, 83,000 MT p.a. Star Export House Installed capacities Accreditations Succe
Slide 5: New Facility at Ambernath, Maharashtra
New Facility at Ambernath, Maharashtra About the Facility ➢ Located on ~4 acres of land ➢ Production began on 9th November 2021 ➢ State of the art technological updates have been implemented ➢ Capacity enhanced to 40,000 MT through efficient process management vis-à-vis planned 36,000 MT Strategic A
Slide 6: Strategic Partnerships (1/2)
Strategic Partnerships (1/2) Strategic collaboration with Eurodye-CTC, Belgium, to commercialize specialty chemicals for the Indian market Addition to its portfolio, specialized pre-treatment and dyeing products for the cotton-synthetic and woollen fibre/ fabric/ yarn Facilitates an efficient produc
Slide 7: Strategic Partnerships (2/2)
Strategic Partnerships (2/2) Strategic collaboration with HealthGuard, Australia to Setting up a state of art Research & Development become the exclusive global marketing and sales centre in collaboration with Sasmira Institute, one of channel partner with joint operations from Malaysia India’s prem
Slide 8: Investment Case (1/2)
Investment Case (1/2) • Consolidated revenue in Q1 FY23 of Rs. 1,357 mn, up 115% YoY • Consolidated EBITDA in Q1 FY23 of Rs. 262 mn, up 167% YoY Financial Performance • EBITDA Margins Q1 FY23 19.3% and has expanded 381 bps YoY • Consolidated PAT in Q1 FY23 of Rs. 203 mn, up 110% YoY • Consolidated E
Slide 9: Investment Case (2/2)
Investment Case (2/2) • Fineotex Chemical has grown significantly over the past few quarters and our geographical expansion is on fast paced mode having entered new regions in the market • Our subsidiaries have contributed significantly to our horizontal expansion programs Growth Drivers • Our marke
Slide 10: Consolidated Quarterly Performance Trend
Consolidated Quarterly Performance Trend Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 19.3% 34.7% 15.5% 31.0% 13.5% 30.3% 1,358 262 633 304 98 41 Q1 FY 21 Q1 FY 22 Q1 FY 23 Q1 FY 21 Q1 FY 22 Q1 FY 23 PAT and PAT Margin 27.0% 15.3% 15.0% 203 82 97 Q1 FY 21 Q1 FY 22 Q1 FY
Slide 11: Consolidated P&L Summary: Q1 FY2023
Consolidated P&L Summary: Q1 FY2023 Particulars (Rs. Million) Q1 FY23 Q1 FY22 YoY% FY 22 FY 21 YoY% Revenue from Operations 1,357.7 632.8 114.6% 3,682.3 2,185.1 68.5% COGS 946.3 413.1 129.1% 2,351.3 1,405.7 67.3% Gross Profit 411.4 219.7 87.3% 1,331.0 779.3 70.8% Gross Profit Margin 30.3% 34.7% 36.1
Slide 12: 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 The facility at Ambernath, Maharashtra is future ready for next phase of growth. P
Slide 13: Synergistic Business Model with Biotex
Synergistic Business Model with Biotex 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 applica
Slide 14: Manufacturing Platforms (GMP Certified)
Manufacturing Platforms (GMP* Certified) Location Strategic Advantages Manufacturing Excellence • Strategically located plant near key port close to Mumbai with logistical advantage to textile hubs across North, West, South and Central India Mahape and Ambernath, Mumbai, India • Easy access to high
Slide 15: Focus on Growth and Diversification
Focus on Growth and Diversification Cleaning and Hygiene Chemicals Drilling Speciality Chemicals Other Speciality Chemicals • Customised solutions for: • Customised solutions for Oil and Gas • Non toxic eco-friendly solution designed with ▪ Housekeeping, Kitchen Care and Disinfectants • Significant
Slide 16: Cleaning and Hygiene Division
Cleaning and Hygiene Division Diversified Product Offering • Air freshener • Hygienic hard surface Housekeeping • Carpet cleaner cleaner • Carpet shampoo • Multi surface cleaner • Deodorizers • Surface cleaner cum • Floor cleaner disinfectant • Furniture maintainer • Toilet bowl cleaner • Glass clea
Slide 17: Key Products in the Specialty Textile Chemicals Segment
Key Products in the Specialty Textile Chemicals Segment 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, F
Slide 18: Product Offerings from Biotex
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 17
Slide 19: Global Customer Reach
Global Customer Reach • Sales in ~70 countries including Brazil, Bangladesh, Germany, Indonesia, Malaysia, Singapore, Syria, Thailand, USA, Venezuela and Vietnam • 34+ technical marketing experts • 110+ dealers in Indian and International markets Facilities at Mahape and Ambernath, Mumbai, India Fac
Slide 20: Consolidated Annual Performance Trend
Consolidated Annual Performance Trend Rs. Mn. Revenue from Operations and Gross Margin EBITDA and EBITDA Margin 44.5% 40.3% 37.3% 36.1% 21.9% 21.0% 35.5% 35.7% 19.3% 19.0% 18.6% 17.4% 3,682 712 1,963 2,185 1,823 1,344 1,429 406 300 347 342 295 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 17 FY 18 FY 19 FY
Slide 21: Consolidated Balance Sheet and Return Ratios Trend
Consolidated Balance Sheet and Return Ratios Trend (Rs Mn) Mar-21 Sep-21 Mar-22 Return on Equity (%) ST Debt 34 77 19 LT Debt 0 0 0 22.7% 23.4% Total Debt 34 77 19 18.3% Cash & Cash Equivalent 339 309 381 15.8% Net Cash 305 231 362 Equity 2161 2337 2694 Total debt/Equity 0.02x 0.03x 0.01x 8.4% CRISI
Slide 22: 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 Arindam Choudhuri Noa N. Ouakass Ked
Slide 23: 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 The facility at Ambernath, Maharashtra is future ready for next phase of growth. P
Slide 24: Sustainability at its Core
Sustainability at its Core We place sustainability high on our agenda as it is an integral part of our business strategy 100% 21% 4,17,000 units Employees are covered Female employees in Electricity purchased in with health and accident FY22 FY22 insurance 100% employees Rs 50.00 Lakhs Zero Were giv
Slide 25: ESG Accreditations
ESG Accreditations Key ESG Facts Certificates Bhive certified ISO 9001 ISO 14001 ISO 14045 ISO 45001 Blue Sign certified ISO 20000 SA 8001 OHSAS18001 ISO 22000 ECO Passport by OEKO-TEX Global Organic Textile Standard (GOTS) certified New Accreditations Hazard Analysis Critical Control Point (HACCP)
Slide 26: 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 27: 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 26