Dharmaj Crop Guard Ltd. · NSE:DHARMAJ
Dharmaj Crop Guard — FY2023 Earnings Presentation
35 slides from Dharmaj Crop Guard's earnings presentation, May 2023
Slide 1: Limitless Growth
Limitless Growth Dharmaj Crop Guard Limited FY23 Investor Presentation | May 2023
Slide 2: Inside
Inside . Introduction Unique Business Key Annual Financial Quarterly Performance to Dharmaj Model Positioning Takeaways Highlights Highlights 02 09 24 27 32
Slide 3: Executive summary
3 Executive summary Dharmaj Crop Guard Limited | Investor Presentation FY23 One of the fastest growing Capital efficient Backward Reaching a agrochemicals player business model integration to meaningful size 40% 4Y Revenue CAGR 32% 4Y Average ROCE mark presence to capture next across value- level of
Slide 4: Company overview
4 Company overview Dharmaj Crop Guard Limited | Investor Presentation FY23 Incorporated in 2015 by Currently engaged in manufacturing multi-decade experienced and marketing agrochemical formulations, industry professionals across broadly two verticals: (1st gen. promoters with • Branded (B2C) agroch
Slide 5: Company in numbers
5 Company in numbers Dharmaj Crop Guard Limited | Investor Presentation FY23 Domestic Presence Institutional Base Manufacturing Infrastructure Product Registrations Others 13,500+ 730+ 25,500 MT 490 325+ Retail touchpoints Customer base Formulations Capacity Total Product Team Strength Registrations
Slide 6: Establish. Build. Expand.
6 Establish. Build. Expand. Dharmaj Crop Guard Limited | Investor Presentation FY23 Build (2018-21) Expand Formulations Business. Begin Move Towards Active Ingredients. (2 h 02 Ex lis ) Begin Public Health Vertical. 2 an pa ab -17 n be d d st E (20 15 Incorporate, Build Assets & Processes. Focus 201
Slide 7: Board of Directors
7 Board of Dharmaj Crop Guard Limited | Investor Presentation FY23 Mr. Rameshbhai 25+ years Of average promoter and management expertise Directors 1 Ravajibhai Talavia Chairman and Managing Director 1 • Possesses nearly 3 decades of 4 • Possesses over 3 decades experience in the of experience in the
Slide 8: Management Team
8 Management Dharmaj Crop Guard Limited | Investor Presentation FY23 Work Experience: Work Experience: Team 1 5 30+ years 5 Mr. Bhupendra 32+ years Ex: Coromandel Varasada Ex: Sabero Organic, International, Head of Operations – Heranba Industries, Crop Life Science Sayakha Unit UPL, Hemani Industrie
Slide 9: Inside
Inside Introduction Unique Business Key Annual Financial Quarterly Performance to Dharmaj Model Positioning Takeaways Highlights Highlights 02 09 24 27 32
Slide 10: Expanding presence in value chain
10 Expanding presence in value chain Dharmaj Crop Guard Limited | Investor Presentation FY23 Technicals & Intermediates Formulations Marketing: Manufacturing: Manufacturing B2C & B2B Upcoming Facility 8,000 TPA Capacity 25,500 TPA Integrated B2C: Growing distribution coming on-stream Capacity (expan
Slide 11: Business model: pursuing growth on all fronts
11 Business model: pursuing growth on all fronts Dharmaj Crop Guard Limited | Investor Presentation FY23 SIZE REVENUE CONTRIBUTION PROFITABILITY PROFILE GROWTH TREND GEOGRAPHY Formulations GPM Branded Domestic branded Branded 30-35% Formulations 4Y business across ₹1,448 mn 27% Revenue 33% 20 EBITDA
Slide 12: Branded formulations (1/5)
12 Branded formulations (1/5) Distribution built Dharmaj Crop Guard Limited | Investor Presentation FY23 in last 8 years Initial strategy Entering 2 new states on an average 13,500 + 4,500 + 1 every year since incorporation, Retail Dealers & following a clustered growth approach touchpoints Distribu
Slide 13: Branded formulations (2/5): Growing thrust on advertisement
Growing Thrust On Advertisement 13 Branded formulations (2/5) & Sales Promotion Expenditure Dharmaj Crop Guard Limited | Investor Presentation FY23 (₹ Mn) Advertisement Expenditure Sales Promotion Expenditure 33.9 Aggressive demand generation & brand building Proactive with on-ground demand generati
Slide 14: Branded formulations (3/5): Product Innovation Index
14 Product Innovation Index Branded formulations (3/5) Dharmaj Crop Guard Limited | Investor Presentation FY23 Contribution from Newly Launched Products (CY & PY launches) & New Product Launches Robust brand portfolio (% and #) 121+ 350+ Latest Additions: Insecticides Latest Additions: Herbicides Be
Slide 15: Branded formulations (4/5): Future Focus Areas
15 Future Focus Areas Branded formulations (4/5) Dharmaj Crop Guard Limited | Investor Presentation FY23 Strengthening position Clustered expansion is existing markets • Example: establishing ourselves amongst top 5 branded players 2016 by sales in Gujarat • Working to replicate this across other st
Slide 16: Branded formulations (5/5)
16 Branded formulations (5/5) Dharmaj Crop Guard Limited | Investor Presentation FY23 • Implemented Completely digital 1 3 ERP systems interaction with • Digitalisation efforts distribution network: an ongoing function • Placing orders • Invoicing • Working on automation • Account statements & Lever
Slide 17: Institutional formulations (1/3)
17 Institutional formulations (1/3) Domestic Formulation Sales Trend Dharmaj Crop Guard Limited | Investor Presentation FY23 (₹ Mn) 44% CAGR 3,287 Institutional formulations business is the 1 biggest revenue vertical for the Company 2,326 since incorporation 1,754 1,051 766 Formulations marketed in
Slide 18: Institutional formulations (2/3): Our product portfolio
18 Institutional formulations (2/3) Dharmaj Crop Guard Limited | Investor Presentation FY23 Our product portfolio Insecticide Herbicides Fungicides Micro-Fertilizers Plant Growth Regulator Fipronil 40% + Paraquate Dichloride Carbendazim 12% + Sulphur 65% + Zinc Gibberellic Acid Imidacloprid 40% WG T
Slide 19: Institutional formulations (3/3)
19 Institutional formulations (3/3) Domestic Institutional Dharmaj Crop Guard Limited | Investor Presentation FY23 Backward integration into active ingredients to strengthen cost-competitiveness Future focus areas More engagement with MNC customers post Currently active backward integration, initial
Slide 20: Active Ingredients (1/3)
20 Active Ingredients (1/3) Dharmaj Crop Guard Limited | Investor Presentation FY23 Q3FY24 Phased commissioning Foraying into Technicals 3 separate production Apr-19 of intermediates & Intermediates blocks: & technical Acquired land block manufacturing through 2 dedicated intermediates parcel on 99
Slide 21: Active Ingredients (2/3)
21 Active Ingredients (2/3) Dharmaj Crop Guard Limited | Investor Presentation FY23 Manufacturing Capacity Project Financing • Potential ~3X • 2,500 TPA dedicated • IPO Proceeds: ₹105 Cr Fixed Asset Turns at Optimum MPBD capacity • Term Loans Sanctioned: Capacity Utilization & Product- • 2,500 TPA d
Slide 22: Active Ingredients (3/3)
22 Active Ingredients (3/3) Dharmaj Crop Guard Limited | Investor Presentation FY23 Status as of early April R&D and Furniture Work at R&D Laboratory Reactor Administration Block and Administration Office Installation Technicals Block (Left Side) Material Storage Reactors Installed & Intermediates B
Slide 23: Formulation Manufacturing Facility
23 Formulation Manufacturing Facility Dharmaj Crop Guard Limited | Investor Presentation FY23 Fully integrated 25,500 MT formulation facility Manufacturing Capacity All formulations categories manufactured – EC, SC, SL, 50% Blended FY23 Capacity SG, WDG, WP, DP, GR, CS, ZC Utilisation Equipped with
Slide 24: Inside
Inside Introduction Unique Business Key Annual Financial Quarterly Performance to Dharmaj Model Positioning Takeaways Highlights Highlights 02 09 24 27 32
Slide 25: Key Takeaways
Key Takeaways Keep up the pace of growth as witnessed in past: double topline every three years, pursue growth in all business verticals Leverage potential of newly entered states in branded formulations, while strengthening position in existing markets Build export institutional business with growi
Slide 26: Inside
Inside Introduction Unique Business Key Annual Financial Quarterly Performance to Dharmaj Model Positioning Takeaways Highlights Highlights 02 09 24 27 32
Slide 27: Key Performance Indicators
27 Key Performance Indicators Dharmaj Crop Guard Limited | Investor Presentation FY23 Revenue from Operations EBITDA & EBITDA Margin Cash Conversion Cycle (₹ Mn) (₹ Mn & %) (Days) 40% CAGR 46% CAGR EB IT D A EB IT D A Ma rg i n 5,336 5 0 10 11 11 1 2 4 5 0 9 66 8 1 0 3,942 4 0 52 48 51 46 3 5 0 8 3,
Slide 28: Profit & Loss Summary (5Y)
28 Profit & Loss Summary (5Y) Dharmaj Crop Guard Limited | Investor Presentation FY23 (₹ Mn) Particulars FY19 FY20 FY21 FY22 FY23 Revenue from Operations 1,394 1,982 3,024 3,942 5,336 Total Income 1,400 1,992 3,036 3,963 5,381 Gross Profit 285.90 428.55 630.05 799.32 955.76 Gross Profit Margin (%) 2
Slide 29: Balance Sheet Summary (5Y)
29 Balance Sheet Summary (5Y) Dharmaj Crop Guard Limited | Investor Presentation FY23 (₹ Mn) Particulars FY19 FY20 FY21 FY22 FY23 TOTAL EQUITY 105 354 563 849 3,214 Non-Current Liabilities 181 65 173 280 378 Borrowings 172 51 152 253 335 Current Liabilities 190 506 552 1,067 792 Borrowings 32 151 11
Slide 30: Cash Flow Summary (5Y)
30 Cash Flow Summary (5Y) Dharmaj Crop Guard Limited | Investor Presentation FY23 (₹ Mn) Particulars FY19 FY20 FY21 FY22 FY23 Cash from Operating Activities 33 20 129 164 (74) Cash from Investing Activities (40) (146) (177) (239) (2,073) Cash from Financing Activities 4 121 55 75 2,142 Net Cash Flow
Slide 31: Inside
Inside Introduction Unique Business Key Annual Financial Quarterly Performance to Dharmaj Model Positioning Takeaways Highlights Highlights 02 09 24 27 32
Slide 32: Profit & Loss Summary (Q4)
32 Profit & Loss Summary (Q4) Dharmaj Crop Guard Limited | Investor Presentation FY23 (₹ Mn) Particulars Q4FY22 Q3FY23 Q4FY23 YoY Change FY22 FY23 YoY Change Revenue from Operations 1,013 1,011 737 -27% 3,942 5,336 35% Total Income 1,023 1,016 767 -25% 3,963 5,381 36% Gross Profit 160 202 173 8% 799
Slide 33: Management Commentary
33 Management Commentary Dharmaj Crop Guard Limited | Investor Presentation FY23 FY23 ended as a good year for the Company despite Further, we are excited about our Branded business for the multiple macro challenges within the agrochemical industry. upcoming year, as the Company has tapped six new s
Slide 34: Shareholding & Market Statistics
34 Shareholding & Market Statistics Dharmaj Crop Guard Limited | Investor Presentation FY23 NSE Symbol DHARMAJ Public BSE Scrip Code 543687 24.56% IPO Issue Price Band ₹216 to ₹237 Current Market Price ₹181 FII Promoters 52 Week High/Low ₹279 / ₹137 5.04% 70.40% Shares Outstanding 3.38 Cr Market Cap
Slide 35: Safe Harbour
Safe Harbour This document which have been prepared by Dharmaj Crop Guard Limited (the “Company”), have been prepared solely for information purposes. This document has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no represent