Fine Organic Industries Ltd. · NSE:FINEORG
Fine Organic Industries — Q3 FY2023 Earnings Presentation
36 slides from Fine Organic Industries's earnings presentation, Feb 10, 2023
Slide 1: Regulation 30 disclosure letter to stock exchanges
Date: February 10, 2023 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Plot No. C/1, "6" Block, Exchange Plaza Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 Security Code: 541557 Symbol: FINEORG Subject: Disclosure of infor
Slide 2: Investor Presentation February 2023
Investor PRESENTATION FEBRUARY - 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Fine Organic Industries Limited (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: The Fine Story Of Success
A FINE ORGANICS The Fine Story Of Success
Slide 5: Expertise in Oleo-chemistry
Expertise in Oleo-chemistry An established and reputed A Technical Pinch of salt in the end international player of oleochemical- based additives, rooted in India 01 02 product making a HUGE difference in the product performance We create Specialty additives for Making Things diverse applications We
Slide 6: Why FINE additives are preferred?
Why FINE additives are preferred? Demand for oleochemical derived additives is increasing FINE additives are majorly bio-based, safe to Increasing consumer awareness for use and bio-degradable; therefore, can offer environment has resulted in remarkable the most effective benefits through preference
Slide 7: Legacy in Green Additives
Legacy in Green Additives 470+ 850+ 180+ Products Direct Customers Distributors Globally 1 Lakh+ 75+ TPA of In-house Capability Countries of Export In-house capability for Product development, Largest producer of oleochemical based additives in India Process technology and Engineering R&D Strong pla
Slide 8: High-Performance Environment Friendly Additives
High-Performance Environment Friendly Additives 7
Slide 9: 50 years of Journey
50 years of Journey Established as ‘Fine Commissioned facility at Expanded capacity Additional capacity Initiated (IPO) and Organic Industries’, a Badlapur (Aug 2001) addition phase wise in expansion at got listed on BSE partnership firm by Late Shri Ambernath Ambernath facility and NSE Ramesh Shah
Slide 10: A Fine Family
A Fine Family 750+ >15% >12% >13% Employees Comprise 1st & Employee Women completed 25 2nd generation Strength Employees years of journey of employees with us Integrity is both a value as well as a character that is embedded Creating and encouraging home-grown leadership with the in every Fine Organ
Slide 11: Strength formulae for Success of FINE ORGANICS
Strength formulae for Success of FINE ORGANICS Innovative Technology Relentless Products and Development Focus Solution Highly Strong R&D & Diversified Specialized Diversified Experienced Dominant Innovation led Product Business Customer Management Position Business Portfolio Model Base Team 10
Slide 12: 1. Strong R&D: Innovative Approach
1. Strong R&D : Innovative Approach Strong In-House Design and New Product R&D Capabilities Engineering Developments ▪ Value Creation; Effective and Efficient ▪ In-house capabilities for plant designing Specialty Additives for: technical support to customers and engineering ▪ Feed nutrition ▪ Coatin
Slide 13: With Industry Standards and Regulatory Credentials
With Industry Standards and Regulatory Credentials ✓ Setting new benchmarks in quality and consistency ✓ High safety and productivity standards ✓ Products are appreciated by customers worldwide for their consistent quality and packaging standards Fine’s facilities are fully geared towards meeting gr
Slide 14: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Our product range for CosPha (Cosmetics and The diversity of oleochemistry has Pharmaceuticals) applications serve as base enabled us to develop a wide range of ingredients additives for PVC, Polyolefins, Styrenics, Polyamides & other engineering
Slide 15: 2. Diversified Product Portfolio: Multiple End-users
2. Diversified Product Portfolio : Multiple End-users Food Additives Additives for maintaining the quality and 01 freshness of the food products, impart better product structure integrity and helps in Polymer Additives increasing the shelf life of food products 02 Used for various functionalities in
Slide 16: 3. Specialised Business Model: Entry Barriers
3. Specialised Business Model : Entry Barriers Limited Players Limited & small players in Indian specialty additives market. Globally Few players which are very large 01 Fine Organics : Largest organised player in the Indian market & is making its presence across the globe Customer Loyalty Lengthy &
Slide 17: 4. Diversified Customer Base
4. Diversified Customer Base Warehouses in USA & Europe Products 470+ End Users 5,000+ Countries 75+ Direct Customers 850+ Distributors 180+ Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness All the da
Slide 18: 5. Highly Experienced Management Team
5. Highly Experienced Management Team Mukesh Shah Jayen Shah Tushar Shah Bimal Shah Nikhil Kamat Chairman and Managing Director Executive Director and CEO Executive Director and CFO Executive Director Executive Director ▪ Joined in 1973. Holds a Bachelor’s ▪ Joined in 1986. Holds a Master’s degree ▪
Slide 19: 6. Dominant Position
6. Dominant Position 01 03 05 02 04 Pioneers and the largest One of the few global One of the few leading manufacturers of players in the players to develop oleochemical-based specialty food proprietary technology additives in India and a emulsifiers to manufacture green strong player globally Fully
Slide 20: Industry Potential: Multiple Growth Levers
Industry Potential: Multiple Growth Levers 1. Food Additives 2. Polymer Additives 3. Other Specialty Additives 19
Slide 21: 1. Food Additives
1. Food Additives Global Food Emulsifiers Market Size* Indian Food Emulsifiers Market Size* In US $ Mn 2495.1 In US $ Million 144.8 1921.2 CAGR 5.4% 101.5 CAGR 7.36% 2018E 2023E Region-wise Growth 2018E 2023E Consumer Food Industry (From 2018 – 2023E) (From 2018 – 2023E) In US $ Mn In US $ Million 6
Slide 22: 2. Polymer Additives
2. Polymer Additives Global Market Size* Indian Market Size* In US $ Mn 30,875 CAGR 4.6% In US $ Mn 1,644 CAGR 6.7% 24,587 1,191 2021E 2026F Region-wise Growth Global End-user Segment Growth 2021E 2026F (From 2021E – 2026F) (From 2021E – 2026F) In US $ Mn In US $ Mn 5.2% 5.1% Asia Pacific 4.1% 4.0%
Slide 23: 3. Other Specialty Additives: Key Drivers
3. Other Specialty Additives : Key Drivers Cosmetics & Additives Industry Specialties Feed Nutrition Rubber Pharmaceuticals for Coatings ▪ Dispersing agents ▪ Processing Aids ▪ Natural Antibiotics ▪ Emulsifiers & Emollients Key Additives & ▪ Emulsifiers ▪ Specialty Plasticizers ▪ Lube additives ▪ Nu
Slide 24: Financial Highlights
rae FINE ORGANICS Financial Highlights
Slide 25: Volatility in RM Prices Since Jan'23
Volatility in RM Prices Since Jan’23 Price in Rs / 10 KG 2200 2000 1800 1600 1400 1200 1000 800 600 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 SOYA REFINED OIL RAPESEED EXP OIL PALMOLIEN COTTON REF OIL RICEBRAN REF OIL SUNFLOWER REF OIL GROUNDNUT OIL COCONUT
Slide 26: Standalone Performance Highlights
Standalone Performance Highlights Rs in Crores Revenues EBITDA PAT +60% +119% +136% 750 175 131 468 80 56 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Revenues EBITDA PAT +85% +193% +222% 2,331 594 453 1,258 202 141 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 25
Slide 27: 9MFY23 Standalone Operating Performance
9MFY23 Standalone Operating Performance Rs in Crores Revenues Operating EBITDA & Margins 2,331 22.5% 18.9% 19.3% 21.3% 23.0% 17.1% 18.8% 25.5% 1,858 +19% 594 69% 1,044 1,026 1,121 60% +16% 856 349 777 651 55% 55% 55% 222 236 58% 164 192 Exports 54% 62% 146 147 45% 40% 31% Domestic 46% 38% 42% 45% 45
Slide 28: Use of Capital (Standalone)
Use of Capital (Standalone) Net Debt to Equity Fixed Asset Turnover 0.25x 10.62x Net Cash 9.44x 0.11x Position 7.77x 0.08x 6.56x 7.10x 0.05x 5.22x 4.90x 4.13x 4.73x 3.10x 3.26x 3.71x 2.79x 2.26x 2.34x 3.37x -0.10x -0.13x -0.16x FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22* H1FY23# -0.24x FY16 FY17 FY18 FY1
Slide 29: Standalone Return Profile
Standalone Return Profile Return on Capital Employed Return on Net Worth 46.37% 38.89% 30.31% 32.64% 32.77% 31.15% 32.17% 30.34% 25.37% 26.40% 26.15% 23.88% 24.81% 26.66% 17.55% 15.55% FY16 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23# FY16 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23# Return on Capital Employed =
Slide 30: Q3 & 9M FY23 Standalone Profit & Loss Statement
Q3 & 9M FY23 Standalone Profit & Loss Statement Particulars (Rs in Crs) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 749.9 468.2 60% 828.1 -9% 2,330.5 1,257.7 85% Cost of Raw Material Consumed 486.3 314.5 511.8 1,440.2 847.7 Gross Profit 263.5 153.7 71% 316.3 -17% 890.3 410
Slide 31: Consolidated Performance Highlights
Consolidated Performance Highlights Rs in Crores Revenues EBITDA PAT +64% +100% +104% 760 159 106 463 80 52 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Revenues EBITDA PAT +93% +207% +240% 2,426 628 469 1,259 204 138 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 30
Slide 32: 9MFY23 Consolidated Operating Performance
9MFY23 Consolidated Operating Performance Revenues Operating EBITDA & Margins* 22.6% 18.6% 18.6% 21.7% 22.7% 17.5% 19.4% 25.9% 2,426 1,876 +19% 628 1,060 1,133 +17% 1,038 364 778 856 652 230 235 198 145 145 158 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MFY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MFY23 PAT &
Slide 33: Use of Capital (Consolidated)
Use of Capital (Consolidated) Net Debt to Equity Fixed Asset Turnover 0.24x 11.01x 9.58 x 0.10x 0.07x 7.74 x 0.04x 6.57x 7.17x 5.23x 4.18x 4.95x 4.9x 3.77 x 2.79x 3.11x 3.27 x -0.12x 2.29x 2.37x -0.14x 3.40x -0.18x -0.23x FY 16 FY 17 FY 18 FY 19 FY20 FY21 FY22* H1FY23# FY16 FY17 FY18 FY19 FY20 FY21
Slide 34: Consolidated Return Profile
Consolidated Return Profile Return on Capital Employed Return on Net Worth 49.63% 41.65% 30.46% 32.75% 32.88% 30.80% 33.85% 31.80% 27.24% 26.63% 27.09% 27.00% 23.72% 24.10% 18.41% 16.45% FY16 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23# FY16 FY17 FY18 FY19 FY20 FY21 FY22 H1FY23# Return on Capital Employed
Slide 35: Q3 & 9M FY23 Consolidated Profit & Loss Statement
Q3 & 9M FY23 Consolidated Profit & Loss Statement Particulars (Rs in Crs) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 759.5 463.4 64% 919.2 -17% 2,426.4 1,259.4 93% Cost of Raw Material Consumed 502.6 308.1 558.6 1,483.3 842.7 Gross Profit 257.0 155.3 65% 360.7 -29% 943.2
Slide 36: Thank You!
Thank You! Company: Investor Relations Advisors: CIN: L24119MH2002PLC136003 CIN: U74140MH2010PTC204285 Ms. Sonali Bhadani Mr. Rahul Agarwal / Mr. Mandar Chavan Senior Vice President - Finance +91 9821438864 / +91 9699382195 Email: rahul.agarwal@sgapl.net / mandar.chavan@sgapl.net www.fineorganics.co
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