Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q1 FY23 Earnings Presentation
26 slides from Aarti Industries's earnings presentation, Aug 11, 2022
Slide 1: Aarti Industries Limited
aN AARTI INDUSTRIES LIMITED August 11, 2022 To, Listing/ Compliance Department To, BSE LTD. Listing/Compliance Department Phiroze Jeejeebhoy Towers, National Stock Exchange of Dalal Street, India Limited Mumbai — 400 001. “Exchange Plaza”, Plot No. C/1, G Block Bandra - Kurla Complex, Bandra (E), Mu
Slide 2: Q1 FY23 Results Presentation
Q1 FY23 Results Presentation
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Agenda: Company Overview
Agenda 01 02 03 Company Q1 FY23 Growth Overview Financial Opportunity Results & Strategy 3
Slide 5: About Aarti Industries (AIL)
About Aarti Industries (AIL) Overview Key Metrics A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost optimization 200+ 400+ 700+ Products Global Customers Domestic Pharma operations spanning APIs, intermediates and Xanthene Custo
Slide 6: Agenda: Q1 FY23 Financial Results
Agenda 01 02 03 Company Q1 FY23 Growth Overview Financial Opportunity Results & Strategy 5
Slide 7: Q1 FY23 – Financial Highlights & Key Updates
Q1 FY23 – Financial Highlights & Key Updates INR 2173 45% INR 369 18% INR 233 13% INR 189 15% Q1 FY23 vs crore crore crore crore Q1 FY22 Revenues Revenues EBITDA Profit Before Tax Profit After Tax 54 : 46 • Significant increase in revenues was on account of pass-on for the elevated Domestic & Export
Slide 8: Performance Overview – Q1 FY23
Performance Overview – Q1 FY23 Revenues of Rs. 2,173 crore; increase EBITDA of Rs. 369 crore; growth of PAT of Rs. 189 crore; up by 15% over of 45% over previous year 18% over previous year previous year • Revenue trajectory was steered by higher volume off take for key products as well as favourabl
Slide 9: Chairman’s Message
Chairman’s Message Commenting on the performance for Q1 FY23, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “I am pleased to share that we started the new financial year on an encouraging note with healthy topline growth of 45% YoY and EBITDA improvement of 18% YoY in Q1 of FY
Slide 10: Q1 FY23 – Consolidated P&L
Q1 FY23 – Consolidated P&L Particulars (Rs. Crore) Q1 FY23 Q1 FY22 Y-o-Y (%) Q4 FY22 Q-o-Q (%) Gross Income from Operations 2,173 1,503 45.5% 2,018 7.7% Exports 1,004 634 58.4% 751 33.7% % of Total Income 46.2% 42.2% 37.2% EBITDA 369 314 17.7% 339 8.9% EBITDA Margin (%) 17.0% 20.9% 16.8% EBIT 283 24
Slide 11: Q1 FY23 Highlights (Consolidated)
Q1 FY23 Highlights (Consolidated) Revenues EBITDA 45% 18% 2,173 369 1,503 314 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Profit Before Tax Profit After Tax 15% 233 13% 189 207 165 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Amount in INR (Cr); 10
Slide 12: Quarterly trend EBITDA & PAT (Consolidated)
Quarterly trend EBITDA & PAT (Consolidated) EBITDA 314 310 356 966 339 369 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Without termination With termination PAT 772 165 176 194 189 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 11 Amount in INR (Cr)
Slide 13: Speciality Chemicals - Revenue & EBIT
Speciality Chemicals - Revenue & EBIT Speciality Chemicals - Revenue 2,288 1,766 1,657 1,629 1,479 1,228 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Without termination With termination Speciality Chemicals EBIT Income Income 894 232 242 284 246 250 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY22 Q4 FY22 Q1 FY2
Slide 14: Q1 FY23 Speciality Chemicals - Consolidated
Q1 FY23 Speciality Chemicals - Consolidated Revenue 1766 44% 1228 Growth was fueled by higher volume trajectory Q1 FY22 nos. included Shortfall fees of Rs 32 crs in respect of the first long term contract. Witnessed favourable product mix profile Q1 FY22 Q1 FY23 About 74% share of revenue
Slide 15: Pharma - Revenue & EBIT
Pharma - Revenue & EBIT Pharma - Revenue 388 407 348 276 283 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Pharma EBIT & EBIT % 19.0 17.3 17.2 18.7 14.7 67 76 52 60 41 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 EBIT EBIT % 14 Amount in INR (Cr); Margin in %
Slide 16: Q1 FY23 Pharma - Consolidated
Q1 FY23 Pharma - Consolidated Revenue 407 48% 276 Solid growth was led by higher demand trajectory for key products from generic pharma companies and Xanthine businesses Q1 FY22 Q1 FY23 Recently commissioned new block at the USFDA approved API facility at Tarapur in early Q2 FY23 – EBIT will l
Slide 17: Revenue Performance - Consolidated
Revenue Performance - Consolidated Consistent revenue Revenue Export China+1 strategy has momentum is a result of CAGR: 19% bolstered the exports favorable demand scenario 2,965 momentum both in Specialty and Company’s ability to Chemicals and Pharma. 2,186 7,919 Company continues to pass on sharp i
Slide 18: EBIT Performance - Consolidated
EBIT Performance - Consolidated Focus on value-added portfolio EBIT combined with operating leverage CAGR: 25% 1,834 gains has resulted in better profitability 932 952 957 283 FY19 FY20 FY21 FY22 Q1 FY23 Speciality Chemicals Pharmaceuticals CAGR: 25% CAGR: 25% 211 220 1,614 137 819 814 746 113 76 25
Slide 19: Financials - Consolidated
Financials - Consolidated Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth INR (Cr) INR (Cr) INR (Cr) 1,307 7,919 1,930 4,705 4,621 5,023 3,806 965 977 982 699 492 536 535 333 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Significant Capex Undertaken Strong R
Slide 20: Agenda: Growth Opportunity & Strategy
Agenda 01 02 03 Company Q1 FY23 Growth Overview Financial Opportunity Results & Strategy 19
Slide 21: Key Strengths
Key Strengths Global Player in Benzene based Derivatives with Integrated Operations • Strong/Leadership position in key products and processes • Integrated operations across product chain of Benzene and Toluene • Ability to effectively use co-products and generate value-added products Well Diversifi
Slide 22: Major Projects: FY19 - FY23
Major Projects: FY19 - FY23 Operationalised by FY21 To be Completed by FY23 USFDA Capacities Expansion Operationalised New Chlorination underway: Expansion cum Asset Unit at Jhagadia. API unit at Tarapur & Intermediates Upgradation for Acid Unit at unit at Vapi Vapi Operationalized Phase 1 Unit at D
Slide 23: Key Highlights: Future Growth Projects
Future Growth Projects: FY23 - 24 (Driven by R&D & Innovation) Introducing Chloro Toulenes Value Chain: (Range of Key Highlights products) ● Adding new chemistries and Value added products Newer range of o 40+ products for Chemicals Setting up Value Added 50+ products for Pharma Universal o products
Slide 24: Growth Estimates
Growth Estimates Expecting Robust Growth fuelled with aggressive Capex Investment Turnover: 2.5x-3.5x EBIDTA: 3x - 4x PAT: 3x - 4x FY27 Growth Turnover: 1.7x -2.0x (over FY21) EBIDTA: 1.7x - 2.0x Turnover Rs. 7919 cr. PAT: 1.7x – 2.0x EBIDTA: Rs. 1929 cr. FY24 Growth Turnover: Rs. 5,000 cr. PAT: Rs.
Slide 25: About Us
About Us Aarti Industries Limited (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals For further information please log on to company that combines process chemistry competence (recipe focus) with sca
Slide 26: Thank You
Thank You < D | AARTI INDUSTRIES