Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q3 FY23 Earnings Presentation
36 slides from Sudarshan Chemical Industries's earnings presentation, Feb 9, 2023
Slide 1: Investor Presentation Q3 FY23
Investor Presentation Q3 FY23
Slide 2: 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 3: Company Overview
COMPANY OVERVIEW ~ SUDARSHAN
Slide 4: 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 ~$295 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha
Slide 5: 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 6: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider 204% EBITDA ₹ Cr 220% Domestic Revenue ₹ Cr EBITDA % A Consistent performance with Sales and Exports Revenue ₹ Cr 2,201 275 Operating profit growing at a CAGR of 11% despite exiting some of the businesses 1,206 192 1,438 781 FY11 FY22
Slide 7: 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 8: Pigment Industry View
Pigment Industry View • Geo‐political risk continues • Tightening monetary policies by major central banks leading to demand contraction across major economies • Europe: Persistent geopolitical pressure resulting in higher energy cost resulting in demand contraction • USA: Due to higher inflation, d
Slide 9: Investing for growth of our Pigment business
Investing for growth of our Pigment business Put to use: ₹ 620 Cr Capex incurred Capex overall Projects under revenue potential implementation at estimated at ~ ₹ Capex plan: 1,500 Cr at full ₹ 110 Cr capacity ramp up ₹ 750 Cr over three years Capex to be incurred To invest ~ ₹ 20 Cr
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%) 602 74 36 ‐12% 528 528 43 42 12.3% 8.1% 7.9% 6.0% 5 0.9% 1 0.1% Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 * EBITDA as percent
Slide 12: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights ‐ Key Ratios Current Ratio Cash conversion cycle 1.1 1.1 1.1 108 112 91 Earnings per Share 5.3 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Net Debt to Equity Ratio Debt ₹ Cr Net Debt to EBITDA 0.7 4.5 0.1 1.2 1.2 Q3 FY22 Q2 FY23 Q3 FY23 3.8 1.0 2.9 790 926 946 Q3
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights ‐ Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 560 41.6% 77 40.0% 476 483 ‐14% 38.8% 39 38 13.7% 8.2% 7.8% Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Subdued demand across geographies and
Slide 14: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights ‐ Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 306 251 ‐18% 254 242 235 232 ‐9% Mix % 55% 49% 52% 45% 51% 48% Q3 FY22 Q2 FY23 Q3 FY23 Q3 FY22 Q2 FY23 Q3 FY23 Specialty Revenue ₹ Cr Non‐Specialty Revenue ₹ Cr 375 185 331 341 ‐9% 145 143 ‐23% Mix % 67% 69
Slide 15: Nine Month Performance
Nine Month Performance
Slide 16: Nine Month Performance Highlights - Consolidated Financials
Nine Month Performance Highlights ‐ Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 1,611 189 85 1,574 +2% 126 12.0% 7.8% 5.4% 12 0.8% 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 * EBITDA as percent to Total Income from operations (exc
Slide 17: Nine Month Performance Highlights - Pigment Business
Nine Month Performance Highlights ‐ Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 1,461 1,486 43.9% 193 +2% 39.7% 121 13.2% 8.1% 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 Subdued demand across geographies and segments resulting in volume and pri
Slide 18: Nine Month Performance Highlights - Pigment Business
Nine Month Performance Highlights ‐ Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 747 754 714 731 +1% +2% Mix % 51% 51% 49% 49% 9M FY22 9M FY23 9M FY22 9M FY23 Specialty Revenue ₹ Cr Non‐Specialty Revenue ₹ Cr 995 1023 +3% 467 462 ‐1% Mix % 68% 69% 32% 31% 9M FY22 9M FY23 9M FY22 9M FY2
Slide 19: Business Outlook
Business Outlook
Slide 20: Business Outlook - FY23 and beyond
Business Outlook ‐ FY23 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Gradual sales ramp‐up of new • Expanding product portfolio to build • Building one of the most efficient Capex's expec
Slide 21: About Sudarshan
ABOUT SUDARSHAN
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 31: 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 32: 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 33: 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 34: Shareholder Information
Shareholder Information Share Information (as at 31st December 2022) Shareholding Pattern (as at 31st December 2022) Promoters 35.82% NSE Ticker SUDARSCHEM FIIs and FPIs 2.81% BSE Ticker 506655 Mutual Funds 12.40% Others 48.97% Market Cap (₹ mn) 27,105 % free‐float 64.18% SUDARSHAN NIFTY 500 Free‐fl
Slide 35: Awards And Accolades
Awards And Accolades Mahatma Awards 2021 in CSR Global CSR Award 2020 HR Excellence Award 2018 Brands of Maharashtra 1st in Chemicals & Fertilizer Excellence Platinum Category Sector Global Clean Village Award ‐ ‘Dream Company to Work For’ Global WasteMet Award 2018 DMAI Award for Energy Energy & En
Slide 36: 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 162 Wellesley Road, Pune, Maharashtra ‐ 411001 36
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