Tatva Chintan Pharma Chem Limited · NSE:TATVA
Tatva Chintan Pharma Chem — H1 FY2023 Earnings Presentation
41 slides from Tatva Chintan Pharma Chem's earnings presentation, Nov 4, 2022
Slide 1: Exchange filing cover letter
Tatva Chintan Pharma Chem Limited (Formerly known as Tatva Chin tan Pharma Chem Private Limited) (CIN:L24232GJ1996PLC029894) Date: 04 November 2022 RefNo.: TCPCL/SEC/2022-23/00070 To, The General Manager, The Manager, Corporate relationship department, Listing department, BSE Limited National Stock
Slide 2: Investor Presentation Q2 & H1FY23
Investor Presentation Tatva Chintan Pharma Chem Limited (TCPCL) Q2 & H1FY23 04 November 2022
Slide 3: Contents
Contents 01 02 03 04 Q2 & H1FY23 TATVA CHINTAN at Glance Product Categories Leading Sustainable Financial Performance practices coupled with cutting edge technology 05 06 07 08 Expansive international Why TATVA CHINTAN Industry Outlook Our Business presence with Marquee clientele 2
Slide 4: Q2 & H1FY23 Financial Performance
Q2 & H1FY23 Financial Performance 3
Slide 5: Q2 & H1FY23: Result highlights
Q2 & H1FY23: Result highlights Q2FY23 HIGHLIGHTS EBIDTA (Incl. Other Income & EBIDTA (Excl. Other Income & Revenue from Operations 1 (In ₹ Mn) EBIDTA Margin 1 (In ₹ Mn, %) 450 35% EBIDTA Margin 1 (In ₹ Mn, %) 400 35% PAT & PAT Margin 1 (In ₹ Mn, %) 350 30% 400 31% 30% 350 29% 30% 300 26% 25% 350 1,2
Slide 6: Q2 & H1FY23: Operational highlights
Q2 & H1FY23: Operational highlights OPERATING REVENUE SPLIT (IN %) Q2FY23 H1FY23 PTC 36% PTC 41% SDA 11% SDA 9% ELECTROLYTE SALTS 5% ELECTROLYTE SALTS 6% PASC 47% PASC 43% OTHERS 1% OTHERS 1% Tatva Chintan Pharma Chem Limited 5
Slide 7: Q2 & H1FY23: Consolidated P&L
Q2 & H1FY23: Consolidated P&L Particulars (₹ Mn) Q2 FY23 Q2 FY22 YoY (%) Q1 FY23 QoQ (%) H1FY23 H1FY22 YoY (%) Revenue from Operation 900.91 1,236.15 -27.12% 884.02 1.91% 1,784.93 2,304.47 -22.54% Total Income 916.40 1,268.60 -27.76% 902.31 1.56% 1,818.71 2,350.16 -22.61% EBITDA (Incl. Other Income)
Slide 8: Chairman & MD's Comments on Results
Chairman & MD’s Comments on Results • EBITDA during this quarter was ₹ 112 mn, a decline of 68% YOY and 27% QOQ. EBIDTA includes forex loss of ₹ 31.85 mn, so the actual operational EBIDTA during the quarter is ₹ 143.62 mn which translates into EBIDTA margin 16%. Forex loss is “ mainly because of MTM
Slide 9: Consolidated Annualized Financial Highlights
Consolidated Annualized Financial Highlights REVENUE FROM OPERATIONS1 (IN ₹ MN) PROFITABILITY1 (IN ₹ MN) EBITDA (Excluding Other Income) & EBITDA Margin PAT & PAT Margin 89 17% 22% 25% 15% 10% 14% 17% 22% 9% 21% 59 4,336 14 959 5 523 34 3,004 1083 28% 47% 67% 2,632 378 205 264 169 2,063 CAGR CAGR 66
Slide 10: Creating value for our stakeholders
Creating value for our stakeholders NET DEBT1 (IN ₹ Mn) & NET DEBT/EBITDA (TIMES) CAPITAL EMPLOYED1 (IN ₹ Mn) & RoCE (%) 1,400 2.5 6,000 35% 33% 1,200 2.25 5,000 32% 30% 2 26% 1,000 25% 4,000 1.61 22% 1.5 800 20% 3,000 600 1.26 1 15% 1.02 2,000 400 10% 0.5 1,000 1,199 1,149 1,613 1,968 4,869 200 5%
Slide 11: Consolidated Statement Profit & Loss
Consolidated Statement Profit & Loss As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 31 March 2022 31 Sep 2022 Audited Audited Audited Audited Un-Audited Income Revenue from operations 2,063.07 2,632.39 3,003.59 4,336.47 1,784.93 Total Income 2,068.01 2,646.22 3,055.59 4,425.41 1,
Slide 12: Consolidated Statement Balance Sheet
Consolidated Statement Balance Sheet As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 31 March 2022 31 Sep 2022 Audited Audited Audited Audited Un-Audited Assets Fixed Assets 665.75 1,110.60 1,203.51 1,592.96 1,605.02 Capital work-in-progress 60.36 48.92 98.11 514.91 1,294.54 Intan
Slide 13: TATVA CHINTAN at Glance
“ TATVA _— CHINTAN YY at Glance _@ es.
Slide 14: TATVA CHINTAN at Glance
TATVA CHINTAN at Glance INTEGRATED SPECIALTY CHEMICAL COMPANY, PRESENT ACROSS THE VALUE CHAIN • Established by first generation entrepreneur engineers in Manufacturing Products Revenue Split – FY22 1996 • Plants located at Ankleshwar and Dahej SEZ, Gujarat with an existing combined installed capacit
Slide 15: TATVA CHINTAN at Glance (Contd.)
TATVA CHINTAN at Glance (Contd.) KEY FINANCIAL NUMBERS FY22 CRISIL A- Stable/ A2+ 4,336 27% 44.59 22% Revenue from EBIDTA % EPS RoCE % Operations (In ₹) Credit Rating (In ₹ Mn) 25+ 471+ 20% 1,199 0.25 Countries Workforce RoE % Borrowings Net Debt / Equity Export (In ₹ Mn) (In times) Tatva Chintan Ph
Slide 16: Product Categories
Product Categories 15
Slide 17: Phase Transfer Catalyst (PTC)
Phase Transfer Catalyst (PTC) A Catalyst with Innumerable Benefits WHAT ARE PTC? BENEFITS DEMAND DRIVERS • PTC are used to facilitate the • Offers faster reactions • Rising demand for technologically Tatva Chintan’s migration of a reactant from one • Higher conversion or yields, advanced environment
Slide 18: Structure Directing Agents (SDA)
Structure Directing Agents (SDA) – An important ingredient for making the world more sustainable WHAT ARE SDA? BENEFITS DEMAND DRIVERS • High purity Quaternary salts that SDAs are important raw material for • With the recent developments in Tatva Chintan’s helps in the formation of creation of high
Slide 19: Electrolysis – A better and greener way of producing SDAs
Electrolysis – A better and greener way of producing SDAs ABOUT ELECTROLYSIS BENEFITS • TCPCL started R&D into developing SDAs • Electrolysis is considered as a ‘green’ since 2007 chemistry process wherein apart from a single starting raw material, the process largely uses • In 2015, it received com
Slide 20: Electrolyte Salts – Aiding the technological thrust
Electrolyte Salts – Aiding the technological thrust WHAT ARE ELECTROLYTE BENEFITS DEMAND DRIVERS Tatva Chintan’s SALTS? • Due to their properties like fast Currently, these are used along with charging ability, superior low temperature performance, long Lithium battery in EV vehicles PRESENCE IN SAL
Slide 21: Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)
Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC) WHICH PRODUCTS ARE END USER INDUSTRY APPLICATION Tatva Chintan’s MANUFACTURED? POSITION IN PASC • Various pharmaceutical and agrochemical products such as Pharmaceuticals Agro Actives 2016 TCPCL is the intermediates
Slide 22: Continuous Flow Chemistry
Continuous Flow Chemistry- sophisticated method with analytical expertise ABOUT BENEFITS PROCESS • Tatva Chintan started R&D into • Continuous Flow Chemistry is • Structure directing agents are continuous flow chemistry since considered as a ‘green’ chemistry converted to Zeolite based catalysts 201
Slide 23: Value derived from Product Categories
Value derived from Product Categories REVENUE FROM EACH PRODUCT CATEGORY1 (In ₹ Mn.) 2,248 Considering the wide range of applications of our products, Tatva Chintan can cater to customers across wide spectrum of Chemical Industries which ensures a sustainable business model. 1,202 Diversified produc
Slide 24: Leading Sustainable practices coupled with cutting edge technology
Leading Sustainable practices coupled with cutting edge technology 23
Slide 25: Integrated and Modern Manufacturing Facility
Integrated and Modern Manufacturing Facility ANKLESHWAR DAHEJ SEZ COMBINED CAPACITY • Both the plants are in-close proximity to • Manufacturing facility started in 1996 • Manufacturing started in 2017 Installed Hazira port. • Converted into a ‘zero liquid effluent • Sophisticated quality control lab
Slide 26: One of the prominent Research & Development center
One of the prominent Research & Development center R&D CAPITAL AND REVENUE EXPENDITURE • Dedicated R&D facility at Vadodara recognized by the Department of (In ₹ Mn.) 80 Scientific and Industrial Research (“DSIR”), Government of India. Currently spread over 10,000 Sq. ft and being expanded to 36,000
Slide 27: With a focus on 'green' chemistry processes
…With a focus on ‘green’ chemistry processes Tatva Chintan’s ‘green’ chemistry is based on the principles of clean chemistry, minimum requirement of auxiliary substances, minimum waste and by-products and safe chemistry • Undertaking various ‘green’ chemistry processes • By deploying electrolysis fo
Slide 28: Expansive international presence with Marquee clientele
Expansive international presence with Marquee clientele 27
Slide 29: Fostered long term relationship with marquee clientele
Fostered long term relationship with marquee clientele while continuously expanding presence in global market ESTEEMED CUSTOMERS EXPORTS • Tatva Chintan exports products to over 25 countries viz. USA, China, Germany, Japan, South Africa and UK. • Subsidiaries facilitates overseas operations:- • Tatv
Slide 30: Why TATVA CHINTAN
Why TATVA CHINTAN = _@
Slide 31: Investment Rationale
Investment Rationale Strong position in Successful track Wide basket of Continuous focus High industry Capex to boost the the niche specialty record on widening products are used in on R&D and in house barriers as new capacities and pave chemicals space with product basket, varied industries develop
Slide 32: Industry Outlook
Industry Outlook 31
Slide 33: India's rapidly expanding footprint in Global Chemical Market
India's rapidly expanding footprint in Global Chemical Market SHARE OF COUNTRIES IN GLOBAL TRENDS IN SPECIALTY CHEMICALS LANDSCAPE CHEMICAL INDUSTRY (IN %) Indian Chemical Move towards Opportunity Industry got sustainable product for Indian CHINA 41% Advantage vs development: Manufacturers: EU 15% C
Slide 34: Global Chemical Industry Market Size
Global Chemical Industry GLOBAL Commodity Chemicals PTC SDA CHEMICAL • Basic Chemicals INDUSTRY • Manufactured In large volumes 1,031 964 Mkt Size Mkt Size MARKET SIZE • Mkt Size USD 3,700bn 2019 (USD Mn) 2019 (USD Mn) • ~Expected 6% CAGR 1,328 5.1% 1.4 6.8% Speciality Chemicals 4,738 • Value Added
Slide 35: Our Business
Our Business 34
Slide 36: Major Events & Milestones
Major Events & Milestones 1996 2007 2013 2017 2019 2021 Incorporation of our Expansion of Achieved turnover Set up our Dahej SEZ Incorporation of Tatva • Listed on Company manufacturing capacity at of ₹ 500.00 million Manufacturing Facility Chintan Europe BV, BSE and NSE our Ankleshwar a wholly owne
Slide 37: Leadership and Management
Leadership and Management Chintan Nitinkumar Shah Ajaykumar Mansukhlal Shekhar Rasiklal Somani Dr. Manher Chimanlal CA Subhash Ambubhai Dr. Avani Rajesh Umatt Patel Desai Patel M A NA G I N G D I RE C T O R WHOLE TIME DIRECTOR WHOLE TIME DIRECTOR I N D E P E ND E N T D I RE C T O R I N D E P E ND E
Slide 38: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- SEPTEMBER 2022 (IN %) NSE Ticker TATVA BSE Ticker 543321 IPO Listing Date 29 July 2021 Share Price (₹)^ 2,461 PROMOTER 79.17% Market Cap (₹ Mn)^ 54,555 MF 10.80% % Free Float^ 20.8% Sept. Free float market cap (₹ Mn)^ 11,621 PUBLIC 5.74% 2022 Shares outs
Slide 39: Net IPO Proceeds
Net IPO Proceeds USE OF NET IPO PROCEEDS1 (IN ₹ MN) The Net Proceeds are utilized in accordance with the details provided in the following chart: Offer for Sale: Raised ₹2750 mn Fresh Issue: Raised ₹2250 mn 2,073 ISSUE SIZE ₹5,000 MILLION Capex at Dahej Plant Of: ₹1471 mn AT ₹1,083/PIECE 1,471 Capex
Slide 40: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company's results may
Slide 41: Thank You
NOV 2022 Thank You TATVA CHINTAN PHARMA CHEM LIMITED INVESTOR RELATIONS AT CORPORATE OFFICE TATVA CHINTAN Plot No. 353, G.I.D.C, Mr. Ashok Bothra Makarpura, Vadodara – 390 010, Gujarat, India finance@tatvachintan.com BSE: 543321 EY NSE: TATVA Ms. Krishna Patel, Mr. Rahul Thakur CIN: L24232GJ1996PLC0
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