Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q4 FY24 Earnings Presentation
39 slides from Sudarshan Chemical Industries's earnings presentation, May 20, 2024
Slide 1: Exchange filing cover letter for Q4 FY24 investor presentation
20th May, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Scrip Code – 506655 Scrip Symbol - SUDARSCHEM Scrip Code NCDs - 974058 Dear Sir / Madam, S
Slide 2: Investor Presentation Q4 FY24
Investor Presentation Q4 | FY24
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 4: Company Overview
te wy eet COMPANY OVERVIEW _ SUDARSHAN
Slide 5: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants ~$307Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 6: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. Sudarshan Mexico S. de R.L de CV. JAPAN Sudarshan
Slide 7: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider 251% EBITDA ₹ Cr 270% Domestic Revenue ₹ Cr A consistent performance with Sales growing at a Exports Revenue ₹ Cr 2,539 316 CAGR of 10% and Operating profit growing at a CAGR 2,201 275 of 11% despite exiting some of the businesses. 1,4
Slide 8: Pigments Application - a global $8.6bn market opportunity
Pigments Application - a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 9: Pigment Industry View
Pigment Industry View • Emergence of India as a strong player in global chemical industry due to macro economic conditions and evolving geo- political uncertainties • Turbulence in the global pigment industry; with one of the major global player declaring bankruptcy • Deindustrialization policy and
Slide 10: Quarterly Performance
Quarterly Performance
Slide 11: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT^ (In ₹ Cr & Margin%) 764 119 691 +11% +40% 566 85 57 62 +73% 15.6% 33 12.3% 10.9% 15 7.5% 4.7% 2.6% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 * EB
Slide 12: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights - Key Ratios Current Ratio Cash conversion cycle 1.4 1.4 1.1 88 74 66 Earnings per Share 8.2 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 4.7 2.1 Net Debt to Equity Ratio Debt ₹ Cr Net Debt to EBITDA (Annualised) Q4 FY23 Q3 FY24 Q4 FY24 3.8 1.0 0.4 1.5 0.3 1.2 797
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 644 45.5% 100 594 44.0% +8% 521 41.5% +37% 73 69 15.6% 13.3% 12.3% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Highest ever Income from Operat
Slide 14: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 345 293 299 301 +2% +15% 278 244 Mix % 51% 53% 54% 49% 47% 46% Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 439 205 412 +7% 181 +13% 358 163 Mix % 69% 69
Slide 15: Annual Performance
Annual Performance
Slide 16: Annual Performance Highlights - Consolidated Financials
Annual Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 2,539 316 140 2,302 288 130 2,201 275 246 109 110 1,864 1,708 211 7.5% 15.4% 14.4% 6.4% 12.5% 12.5% 5.9% 45 9.2% 4.4% 1.9% FY 20 FY 21 FY 22 FY 23 FY 24 FY 20
Slide 17: Financial Highlights
Financial Highlights Earnings per Share Return on Capital Employed Gross Block ₹ Cr Cash conversion cycle Working capital % to 1,724 Income from Operations 1,629 15.9% 15.3% 1,235 93 96 20.2 18.8 11.5% 11.7% 86 15.7 16.0 863 932 74 66 6.1% 6.5 23% 24% 25% 20% 20% FY20 FY21 FY22 FY23 FY24 FY20 FY21 F
Slide 18: Annual Performance Highlights - Pigment Business
Annual Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 2,223 43.4% 44.3% 300 2,079 42.8% 43.1% 281 2,020 269 40.2% 1,753 234 1,590 194 16.0% 14.7% 13.3% 13.5% 9.3% FY 20 FY 21 FY 22 FY 23 FY 24 FY 20 FY 21 FY 22 FY 23 FY 24 FY 20
Slide 19: Pigment Business: Domestic & Overseas geographies continue to have steady growth
Pigment Business: Domestic & Overseas geographies continue to have steady growth Domestic Revenue ₹ Cr Export Revenue ₹ Cr +10% +10% +8% +4% 1,159 1,064 1,024 1,055 987 1,033 897 856 783 806 Mix % 51% 49% 51% 51% 52% 49% 51% 49% 49% 48% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 YoY export
Slide 20: Pigment Business: focus to shift towards Specialty
Pigment Business: focus to shift towards Specialty Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr +8% +6% +10% +9% 1,522 701 1,435 644 1,383 637 1,204 549 1,109 481 Mix % 70% 69% 68% 69% 68% 30% 31% 32% 31% 32% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 YoY Growth in non-specialty pigmen
Slide 21: Business Outlook
Business Outlook
Slide 22: Business Outlook - FY25 and beyond
Business Outlook - FY25 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Continue expanding product portfolio • Building one of the world class to build globally competitive and pigment manuf
Slide 23: About Sudarshan
ABOUT SUDARSHAN
Slide 24: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 25: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 26: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. D. N. Damania Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani (Non-Executive, (Non- Executive, (Non-Executive, (Non-Execut
Slide 27: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 28: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 29: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 30: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 31: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 32: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio • Enhance Product Portfolio across 01 • • • • Organic (especially HPPs and Inks) Inorganic HPPs Effect Pigments Solvent Dyes Application Focus 02 • C
Slide 33: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERCIAL EXCELLENCE ENVIRONMENT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practice
Slide 34: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 35: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 36: Our ESG Focus
Our ESG Focus To be the global leader in Pigment industry by operating responsibly and growing sustainably Environmental Strengthening Social Manufacturing Business Responsibility Inclusiveness Excellence Accountability Air Emission and Employee Safety and Automation, Innovation Business Eth
Slide 37: Shareholder Information
Shareholder Information Share Information (as at 31st March 2024) Shareholding Pattern (as at 31st March 2024) Promoters 33.22% NSE Ticker SUDARSCHEM FIIs and FPIs 4.49% BSE Ticker 506655 Mutual Funds 13.03% Others 49.26% Market Cap (₹ mn) 42,229 % free-float 66.78% SUDARSHAN NIFTY 500 Free-float ma
Slide 38: Awards And Accolades
Awards And Accolades National CSR Excellence Award Best Waste Management CSR Navabharat CSR Awards 2023 for 'Integrated Village Film Award by Socio Corpo Brands of Maharashtra for Excellence in CSR Activities Development Project' India Pvt Ltd HR Excellence Award 2018 Mahatma Awards 2021 in CSR Glob
Slide 39: Thank You
THANK YOU Investor Relations at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 7th Floor, Eleven West Panchshil, Survey No. 25, Near PAN Card Club Road, Baner, Pune – 411 069, Mahar
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