Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Q1 FY2023 Earnings Presentation
18 slides from Epigral's earnings presentation, Jul 21, 2022
Slide 1: Exchange submission letter: Q1 FY23 Earnings Presentation
Meghmani Finechem Limited Registered Office : "Meghmani House", B/h. Safal Profitaire, Corporate Road, Prahladnagar, Ahmedabad - 380 015. Gujarat. INDIA. I T: +91 79 2970 9600 / 7176 1000 E: helpdesk@meghmanifinechem.com I CIN: L24100GJ2007PLC051717 Your essentia l s. Our expert i se . 21 s1 July, 2
Slide 2: Meghmani Finechem Limited Q1FY23 Earnings Presentation
Meghmani Finechem Limited Q1FY23 Earnings Presentation 21st July, 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: Company Overview
Company Overview Founded: 32% 29% 2007 5 Year Revenue CAGR (FY22) 5 Year EBITDA CAGR (FY22) Employees: 850+ 1.3x 29% Debt to Equity (FY22) ROCE (FY22) Capacity: Chlor-Alkali# – 315 KTPA 5,000 Derivatives# – 190 KTPA Revenue from operations (₹ Cr) 1551 Certified: Responsible Care Certificate 829 710
Slide 5: Key Highlights – Q1FY2023
Key Highlights – Q1FY2023 Operational Highlights (YoY): o Overall plant utilisation increased to 94% in Q1FY23 compared to 87% in Q1FY22 o Capacity utilization for Chlor-Alkai stood at 94%, CMS stood at 105% and H2O2 stood at 94% (Highest ever) o Caustic Soda & Caustic Potash ECU realisation was up
Slide 6: CMD Message
CMD Message “I am pleased with our performance in Q1FY23. We have delivered record operating and financial performance for the quarter. The growth in the quarter is on account of high realizations and volume growth coming from high efficiency/capacity utilization from all the products. In this quart
Slide 7: Q1FY23 Financial Highlights
Q1FY23 Financial Highlights 850 Revenue YoY Growth - 84% 60% 300 EBITDA YoY Growth - 103% 45% 170 PAT YoY Growth - 192% 25% 750 49% 35% 40% 150 20% 20% 47% 250 35% 650 46% 50% 32% 35% 20% 42% 130 533 30% 17% 550 47% 499 200 187 30% 108 40% 32% 175 110 99 422 14% 15% 450 141 25% 90 13% 150 340 30% 20
Slide 8: Q1FY23 - Ratios
Q1FY23 - Ratios ROCE (%) ROE (%) Debt/EBITDA (x) 48% 33% 2.6 29% 36% 1.9 1.6 19% 22% FY22 Q1FY22 Q1FY23 FY22 Q1FY22 Q1FY23 FY22 Q1FY22 Q1FY23 TTM EBIT, PAT and EBITDA are considered for above ratios o ROCE and ROE improved on account of higher realization from Caustic Soda, Caustic Potash and Chloro
Slide 9: Revenue Break-up – Diversified Business Model
Revenue Break-up – Diversified Business Model 19% 21% 31% Q1 FY22 Q4 FY22 Q1 FY23 ₹ 290 Cr ₹ 499 Cr ₹ 533 Cr 69% 81% 79% Chlor-Alkali Derivatives Chlor-Alkali Derivatives Chlor-Alkali Derivatives 8 | MEGHMANI FINECHEM LIMITED
Slide 10: Operational Overview (Production - KTPA and Utilization - %)
Operational Overview (Production - KTPA and Utilization - %) Chlor-Alkali Chloromethanes Hydrogen Peroxide 100 100% 94% 17 120% 17 94% 100% 90 86% 88% 89% 108% 105% 85% 90% 87% 90% 110% 80 15 103% 15 75% 80% 70 79% 107% 100% 80% 70% 13 13 60 90% 94% 67% 60% 50 70% 11 80% 11 50% 40 74 40% 68 69 70 60
Slide 11: Operational Overview – Realisations
Operational Overview – Realisations Q1FY23 - Change in ECU and Sales Realization % YoY Caustic Soda ECU Realization 130% 104% 49,336 51,330 45,852 23% 25,183 27,201 -7% Caustic Soda - ECU Caustic Potash - ECU Chloromethanes Hydrogen Peroxide Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 o ECU realization for C
Slide 12: Project Update as on 30th June 2022
Project Update as on 30th June 2022 Expected Capex Spends - ₹ Cr % of project Product Capacity Commissioning completed Date Commissioned Epichlorohydrin 50KTPA Q1FY23 1st June 2022 Commissioned CPVC Resin 30KTPA Q2FY23 18th July 2022 449 Caustic Soda 106KTPA Q2FY23 95% with CPP 123 Chlorotoluene & -
Slide 13: FY2023 Outlook
FY2023 Outlook ~50% ~26% + ~25% + <2.0x Sales Growth EBITDA Margin Return on Capital Target to sustain Net Employed Debt to EBIDITA Vision – To achieve revenue of ₹ 5,000 Cr by FY2027 12 | MEGHMANI FINECHEM LIMITED
Slide 14: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Entered in JV to set up 18.34 MW W
Slide 15: Income Statement
Income Statement Particulars (₹ Cr) Q1 FY23 Q1 FY22 % Change FY22 FY21 % Change Revenue from Operations 533 290 84% 1,551 829 87% Gross Profit* 250 136 84% 716 407 76% Gross Margin (%) 47% 47% 46% 49% EBITDA 187 92 103% 509 261 95% EBITDA Margin (%) 35% 32% 33% 32% Depreciation 22 21 3% 86 74 17% Fi
Slide 16: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY17 FY18 FY19 FY20 FY21 FY22 Total Revenue 393 602 720 613 831 1,555 Gross Profit* 199 335 431 300 407 716 Gross Margin (%) 51% 56% 61% 49% 49% 46% EBITDA 144 255 312 194 261 510 EBITDA Margin (%) 37% 43% 44% 32% 32% 33% Depreciation 55 55 54 44 74 86 Fi
Slide 17: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY20 FY21 FY22 Liabilities (₹ Cr) FY20 FY21 FY22 Fixed Assets 1,131 1,228 1,657 Share Capital 42 42 42 Financial Assets 4 10 8 Reserves & Surplus 542 643 684 Other Non-current Assets 5 29 11 Long-Term Borrowings 418 340 557 Inventories 48 54 154 Redeemable Prefer
Slide 18: About Us & Investor Contact
About Us & Investor Contact Meghmani Finechem Limited (“MFL”), incorporated in 2007, is a leading integrated manufacturer of chemicals in India. The company has state of the art manufacturing facilities in Gujarat, Dahej – a leading PCPIR region in the country. MFL’s Dahej facility is a backward and