Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q2 FY21 Earnings Presentation
20 slides from Sharda Cropchem's earnings presentation, Oct 28, 2020
Slide 1: Cover letter to National Stock Exchange
Sharda Cropchem Linaited Tel. : +91 22 66782800 ISO 9001: 2015 Reg. No: 702949 FAX : +91 2266782828/66782808 CIN : L51909MH2004PLC145007 E-mail : oftice@shardaintl.com Regd. Office. Prime Business Park , Oashrathlal Joshi Road, Vile Parle 0N) , Mumbai - 400056, India. www.shardacropchem .com October
Slide 2: Q2 FY21 Results Update
SHARDA CROPCHEM LIMITED Q2 FY21 RESULTS UPDATE October 2020
Slide 3: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 4: Discussion Summary
DISCUSSION SUMMARY ❑ Q2 FY21 Result Highlights ❑ Consolidated Financials ❑ About Us ❑ Business Model ❑ Business Strategy & Outlook 3
Slide 5: Q2 & H1 FY21: Key Highlights
Q2 & H1 FY21: KEY HIGHLIGHTS Q2 FY21 YoY ANALYSIS In Rs Mn REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN* PAT & PAT MARGIN 26.9% 31.1% 13.8% 9.0% 4,248 4.5% 587 -1.7% 3,240 31.1 % 100.6 % 191 293 -56 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 H1 FY21 YoY ANALYSIS REVENUES & GROSS MARGIN EBITDA
Slide 6: Q2 FY21: Key Performance Highlights
Q2 FY21: KEY PERFORMANCE HIGHLIGHTS • Financial Update • Revenues grew by 31.1% YoY to Rs 4,248 mn in Q2 FY21 • Region wise growth YoY – Europe: 57.5%, NAFTA: 18.2%, LATAM: 18.7% and RoW: -23.6%. • Gross profit grew by 51.5% YoY to Rs 1,320 mn in Q2 FY21. Gross margin expanded by 417bps YoY from 26.
Slide 7: Q2 & H1 FY21: Division Wise Highlights
Q2 & H1 FY21: DIVISION WISE HIGHLIGHTS In Rs Mn Q2 FY21 YoY ANALYSIS: REVENUE BREAKUP H1 FY21 YoY ANALYSIS: REVENUE BREAKUP 8,137 7,445 4,248 1,622 3,240 805 1,935 16.2 % 8.2 % 877 3,443 18.2 % 6,515 45.7 % 5,510 2,363 Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Agrochemicals Non-Agrochemicals Agrochemicals Non
Slide 8: Q2 & H1 FY21: Agrochemical Business
Q2 & H1 FY21: AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE REVENUE BREAKUP: FORMULATIONS VS. AIs 2,363 3,443 5,510 6,515 2,363 3,443 5,510 6,515 8.0% 5.8% 7.3% 6.4% 8.1% 7.5% 7.3% 7.1% 11.8% 8.8% 10.9% 10.9% 23.2% 25.8% 24.0% 27.5% 91.9% 92.5% 92.7% 92.9% 56.2% 62.2% 54.3% 56.9% Q2 FY2
Slide 9: H1 FY21: Agrochemical Business
H1 FY21: AGROCHEMICAL BUSINESS REVENUE BREAKUP: PRODUCT TYPE REVENUE BREAKUP: PRODUCT TYPE 25% 26% H1 FY20 50% H1 FY21 50% 25% 24% Herbicides Fungicides Insecticides Herbicides Fungicides Insecticides • Herbicides revenues grew by 17.6% YoY in H1 FY21 to Rs 3,242 mn • Fungicides revenues increased b
Slide 10: Q2 & H1 FY20: Non-Agrochemical Business
Q2 & H1 FY20: NON-AGROCHEMICAL BUSINESS In Rs Mn REVENUE BREAKUP: REGIONWISE 877 805 1,935 1,622 16.2% 17.2% 27.7% 31.4% 8.1% 5.8% 3.6% 2.6% 44.6% 43.1% 47.1% 42.8% 31.1% 33.9% 21.6% 23.2% Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Europe NAFTA LATAM RoW • Revenues in Europe grew by 32.3% in Q2 FY21 to Rs 250
Slide 11: H1 FY21: Working Capital Analysis
H1 FY21: WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS * 109 102 71 75 66 62 H1 FY20 H1 FY21 Inventory Days Receivables Days Creditors Days NET WORKING CAPITAL DAYS H1 FY20: 113 H1 FY21: 98 * Calculated on average inventory, receivables and creditors 10
Slide 12: Q2 & H1 FY21: Consolidated Profit & Loss Statement
Q2 & H1 FY21: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY21 Q2 FY20 YoY % H1 FY21 H1 FY20 YoY% FY20 Revenue from Operations 4,247.6 3,239.4 31.1% 8,136.6 7,445.0 9.3% 20,030.2 COGS 2,927.7 2,367.9 23.6% 5,655.1 5,422.1 4.3% 13,887.5 Gross Profit 1,319.9 871.5 51.5% 2,481.5 2,02
Slide 13: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars in Rs. Mn H1 FY21 FY20 Particulars in Rs. Mn H1 FY21 FY20 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Equity and Share Capital 902.2 902.2 Property, Plant and Equipment 243.5 278.2 Other Equity 13,500.9 13,125.7 Goodwill 4.3 4.4 Non-con
Slide 14: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW ▪ Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA, Latin America and ROW across fungicides, herbicides and insecticides. ▪ Sharda operates with an asset light business model focused on identification and registrat
Slide 15: About Us: Our Presence
ABOUT US: OUR PRESENCE Sharda Cropchem Limited Sd : * ae od 2 . a oe e° 14
Slide 16: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY In Rs Mn REVENUE FROM OPERATIONS EBITDA & EBITDA Margin* PAT & PAT Margin 19,978 20,030 17,066 22.2% 22.3% 20.2% 16.3% 17.6% 14.3% 13.6% 11.2% 8.8% 8.2% 13,992 12,186 3,124 3,454 3,267 3,516 2,714 1,751 1,904 1,908 1,763 1,647 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19
Slide 17: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE KEY INSTITUTIONAL INVESTORS – 30TH Sept 2020 % HOLDING MARKET DATA AS ON 27TH Oct 2020 HDFC MF 9.21% Market capitalization (Rs Mn) 24,026 L & T Mutual Fund 4.83% Price (Rs.) 265.3 No. of shares outstanding (Mn) 90.2 Pinebridge Global 3.75% Face Value (Rs.) 10.0 DSP M
Slide 18: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Demand Pulled / Customer
Slide 19: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK ▪ Leverage market presence and execution capabilities Forward Integration - ▪ Adopt the factory-to-farmer approach and be a one-stop solution provider Build own Sales Force ▪ Strategy on-ground in Mexico, Colombia, Hungary, Spain, Poland, Italy, Portugal, USA & India Expa
Slide 20: For Further Queries
FOR FURTHER QUERIES: Mr. Abhinav Agarwal Mr. Hiral Keniya / Chintan Mehta Chief Financial Officer IR Consultants Email: cfo@shardaintl.com Email: shardacropchem@dickensonworld.com Contact No: +91 22 6678 2800 Contact no: +91 9029662801 / 9892183389