National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q2 FY2019-20 Earnings Presentation
58 slides from National Fertilizers's earnings presentation, September 2019
Slide 1: Financial Performance for the Quarter / Half Year Ended September 2019
FINANCIAL PERFORMANCE FOR THE QUARTER / HALF YEAR ENDED SEPTEMBER 2019
Slide 2: Brief Overview
BRIEF OVERVIEW Introduction • Incorporated on 23rd August, 1974. • Share Capital details as on 30.09.2019. Authorized capital : Rs. 1,000.00 crore. Paid up capital : Rs. 490.58 crore. Net-worth : Rs. 2,140.03 crore. Shareholding Pattern as on 30.09.2019: Government of India 74.71% Financia
Slide 3: Brief on Urea Manufacturing Activities
BRIEF ON UREA MANUFACTURING ACTIVITIES UREA Vijaipur‐I Vijaipur‐II Bathinda Panipat Nangal ANNUAL CAPACITY i.e Revised Assessed 8.646 8.646 5.115 5.115 4.785 Capacity (RAC)‐32.31 Lakhs Metric Ton (LMT) Annual Capacity after Urea Capacity Enhancement Projects at Vijaipur‐I & II 9.999 10.662 5.115 5.1
Slide 4: Brief on Other Manufacturing Activities
BRIEF ON OTHER MANUFACTURING ACTIVITIES Cont… Other Manufacturing:‐ (Industrial Products, Bio‐Fertilizers , Technical Surplus Ammonia) etc. : S. No. Products Located in No. of Annual Capacity of each streams stream (MT) Industrial Products 1. Nitric acid Nangal 2* 91410 2. Ammonium Nitrate Nangal 2*
Slide 5: Brief on Trading Activities (Sale Based)
BRIEF ON TRADING ACTIVITIES (Sale Based) Cont… Traded Goods : S. No. Products 2015‐16 2016‐17 2017‐18 2018‐19 Imported Fertilizers LMT LMT LMT LMT 9. DAP 0.51 2.14 3.28 5.04 10. MOP ‐ ‐ 0.27 ‐ 11. APS ‐ ‐ 0.26 0.26 12. NPK ‐ ‐ ‐ 0.68 13. Urea (Govt A/C) ‐ ‐ ‐ 3.70 14. BS 0.01 0.03 ‐ ‐ Total (9+10+11
Slide 6: Production of Urea (Qty. in LMT)
Production of Urea (Qty. in LMT) Production of Urea Plants 2015‐16 2016‐17 2017‐18 2018‐19 NANGAL 5.47 5.02 5.43 5.41 PANIPAT 5.67 5.43 5.60 5.74 BATHINDA 5.48 5.68 5.63 5.84 VIJAIPUR- I 9.92 10.58 10.50 10.28 VIJAIPUR-II 11.44 11.39 10.95 11.32 TOTAL 37.98 38.10054 38.10250 38.59 Capacity utilizati
Slide 7: Financial Performance at a Glance (Preceding Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 4 Years) (Rs. crore) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 1 Production (Urea) (LMT) 37.98 38.10054 38.10250 38.59 2 Capacity Utilization w.r.t. RAC (Urea %) 117.60 117.90 117.94 119.46 3 Sale of Urea (LMT) 36.41 37.58 39.16 38.98 4 Sale of
Slide 8: Financial Performance at a Glance (Preceding Years)
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 4 Years) (Rs. crore) Particulars 2015‐16 2016‐17 2017‐18 2018‐19 SL. No. 18 Net Fixed Assets 4291 4109 4144 4127 19 Working Capital 1487 1424 981 1204 20 Long Term Borrowings 1828 981 171 341 STL* (without SBA) 4296 1989 2695 4670 SBA 0 1165 195 1452 21 T
Slide 9: Sales (Preceding Years)
SALES (Preceding 4 Years) SL .No. Particulars 2015‐16 2016‐17 2017‐18 2018‐19 1 Sale of Own Urea (LMT) 36.41 37.58 39.16 38.98 2 Sale of Own Bio‐Fertilizer and BS ‐ ‐ ‐ 0.07 3a Sale of Traded Goods:‐ (Fertilizers) 0.51 2.14 3.28 5.04 1. DAP (LMT) 2. MOP (LMT) ‐ ‐ 0.27 ‐ 3. APS (LMT) ‐ ‐ 0.26 0.26 4.
Slide 10: Performance for the Quarter Ended September 2019
PERFORMANCE FOR THE QUARTER ENDED SEPTEMBER‐2019 10
Slide 11: Performance Highlights for Quarter Ended 30.09.2019
PERFORMANCE HIGHLIGHTS FOR QUARTER ENDED 30.09.2019 Sale of total urea 14.06 LMT (10.45 LMT during CPLY) including 4.26 LMT urea on Govt. A/c. Sale of DAP/MOP/APS/NPK/NPK (10:26:26)/Water Soluble Fertilizer : 2.60 LMT (1.83 LMT during CPLY ). Sale of Compost, Bentonite Sulphur, Bio‐Fertilizers
Slide 12: Overall Performance
OVERALL PERFORMANCE (Rs. crore) Particulars Qtr. CPLY Increase/(decrease) Sept. 2019 Rs. crore % Total Revenue from Operation 3661.96 3231.11 430.85 13 Total Expenses 3515.65 3023.53 492.12 16 Earnings before Interest, Tax Depreciation and Amortization (EBITDA) 146.31 207.58 (61.27) (30) Add : Other
Slide 13: Revenue From Operations Growth
Revenue From Operations Growth Rs. 3661.96 crore (Qtr. Sept 2019) (13%) Rs. 3231.11 crore (CPLY) 13
Slide 14: Production & Purchase
PRODUCTION & PURCHASE LMT Particulars Qtr ended Qtr Increase/(decrease) Sept 19 ended LMT % Sept 18 Production Urea Production 9.62 9.71 (0.09) (1) Bio Fertilizers and Bentonite Sulphur 0.04 0.02 0.02 100 Production Total 9.66 9.73 (0.07) (1) Purchase Purchase of Imported Fertilizers 1.59 1.90 (0.31
Slide 15: Sale of Own Urea & Imported Urea (Govt A/c)
Sale of Own Urea & Imported Urea (Govt A/c) (Lakh MT) Particulars July – Sept July – Increase/ % 19 Sept 18 (Decrease) Own Urea 9.80 10.45 (0.65) (6) Imported Urea (Govt A/C) 4.26 - 4.26 - Total Urea 14.06 10.45 3.61 35 15
Slide 16: Sale of DAP/MOP/APS/NPK/Compost and Other Fertilizers
Sale of DAP/MOP/APS/NPK including 10:26:26/Compost/ Water Soluble Fert./ SSP & Bio Fertilizer and BS (Lakh MT) Particulars July – Sept July – Increase/ % 19 Sept 18 (Decrease) DAP 1.98 1.41 0.57 40 MOP 0.22 - 0.22 - APS 0.23 0.22 0.01 5 NPK 0.12 0.20 (0.08) (38) NPK 10:26:26 0.05 - 0.05 - Compost 0.
Slide 17: Sale Breakup Segment wise
Sale Breakup Segment wise‐Urea/Traded goods/Industrial Product & Others Product (Value & % Sale) Qtr‐Sept‐2019 Qtr‐Sept‐2018 Other Products , Fertilizer Other Fertilizer ₹ 54.47, Trading , ₹ Products , Trading , ₹ 1.48% 632.67, ₹ 59.00, 1,159.20, 19.58% 1.83% 31.66% Own Own Fertilizers Fertilizers (
Slide 18: Details of Expenses for the Quarter Ended September 2019
DETAILS OF EXPENSES FOR THE QUARTER ENDED SEPTEMBER‐2019 18
Slide 19: Details of Expenses for Qr. Sept 19
Details of Expenses for Qr. Sept 19 Particulars Qr. Sept CPLY Increase/ Key reasons 19 (Decrease) Production of urea (LMT) 9.62 9.71 (0.09) Due to plant shutdown / trippings. Sale of urea (Own) (LMT) 9.80 10.45 (0.65) Due to lower production in previous quarter. (Rs. Crore) (Rs. Crore) (Rs. Crore) C
Slide 20: Urea Production (Quarterly)
UREA PRODUCTION (Quarterly) Lakh MT Unit Qtr CPLY Reason for increase/ decrease in production 30.09.2019 1.38 1.47 Decrease of 0.09 LMT Nangal Unforeseen interruptions (03 Nos.) arising out of damage of seals of ammonia synthesis compressor, Problems in urea reactors outlet valve Leakage in HE-3 sec
Slide 21: Production of Urea in the 2nd Quarter in Preceding Years
Production of Urea in the 2nd Quarter in Preceding 4 Years (Qty. in LMT) Production of Urea for the 2nd Quarter (July to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 Units Q2 Q2 Q2 Q2 NANGAL 1.33 1.49 1.47 1.38 PANIPAT 1.32 1.48 1.31 1.43 BATHINDA 1.42 1.39 1.45 1.45 VIJAIPUR- I 2.74 2.73 2.61 2.48 VIJAIPU
Slide 22: On-Stream Days in the 2nd Quarter in Preceding Years
On-Stream Days in the 2nd Quarter in Preceding 4 Years (No. of Days) On‐Stream Days in the 2nd Quarter (July to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 Units Q2 Q2 Q2 Q2 NANGAL 84 91 89 85 PANIPAT 81 92 81 89 BATHINDA 89 85 90 90 VIJAIPUR- I 91 90 87 81 VIJAIPUR-II 92 65 88 91 22
Slide 23: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Revised Energy Actual Energy Units Norms for 2019‐20 Qr. Sept 2019 CPLY Nangal 7.065 6.870 6.607 Panipat 7.558 7.021 6.682 Bathinda 7.430 7.065 6.795 Vijaipur I 5.884 6.093 5.992 Vijaipur II 5.500 5.454 5.384 Energy consumption at all units was within revised e
Slide 24: Profit Variance Analysis for Qtr Ended 30th Sept 2019
PROFIT VARIANCE ANALYSIS FOR QTR ENDED 30th SEPT 2019 Company has earned profit before tax of Rs 23.44 crore during the quarter ended Sept‐19 as against profit before tax of Rs 111.76 crore during CPLY i.e. decrease in profit by Rs 88.32 crore. PBT has decreased mainly due to: 1. Increase in energy
Slide 25: Break Up of Total Finance Cost for Qtr. Sept 2019
BREAK UP OF TOTAL FINANCE COST FOR Qtr. Sept 2019 Rs. crore Particulars Qr. Sept 19 CPLY Increase/ (Decrease) Interest on Long Term Loans 4.56 2.14 2.42 Interest on working capital Loans 56.98 62.70 (5.72) (excluding interest on trading activities) Other borrowing costs (CP related charges) 0.99 1.0
Slide 26: Analysis of Finance Cost on Working Capital for Qtr Sept 2019
ANALYSIS OF FINANCE COST ON WORKING CAPITAL FOR QTR SEPT 2019 Rs. crore Increase/ Particulars Qr. Sept-19 CPLY (Decrease) Interest on working capital Loans (excluding interest on trading activities) 56.98 62.70 (5.72) Interest on Trading Activities 43.07 14.04 29.03 Other borrowing costs (CP related
Slide 27: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST Company has adopted the strategy of borrowing through CP for a period of 30 to 90 days. Total average Short Term Borrowing during the quarter ended September 2019 is Rs 6349.23 crore, out of which 84.00% amount has been borrowed through Commercial Papers @ avg. i
Slide 28: Interest Coverage Ratio (ICR)
INTEREST COVERAGE RATIO (ICR) Particulars Unit Qtr Sept -19 CPLY Cash available for debt service Rs. Crore 154.92 212.79 (PBT + Depreciation + Finance cost) Finance Cost Rs. Crore 106.75 81.86 Interest Coverage Ratio Times 1.45 2.60 (ICR) Finance Cost (including Loan Rs. Crore 139.47 109.89 Repaymen
Slide 29: Performance for the Half Year Ended September 2019
PERFORMANCE FOR THE HALF YEAR ENDED SEPTEMBER‐2019 29
Slide 30: Performance Highlights for Half Year Ended 30.09.2019
PERFORMANCE HIGHLIGHTS FOR HALF YEAR ENDED 30.09.2019 Ever best sale of all fertilizers in Kharif season of 27.09 LMT (21.52 LMT during CPLY). Sale of total urea 22.85 LMT (19.01 LMT during CPLY) including 5.45 LMT Urea on Govt. A/c. Sale of DAP/MOP/APS/NPK/NPK (10:26:26)/Water Soluble Fertili
Slide 31: Overall Performance
OVERALL PERFORMANCE (Rs. crore) Particulars HY CPLY Increase/(decrease) Sept. 2019 Rs. crore % Total Revenue from Operation 6209.00 5393.51 815.49 15 Total Expenses 6046.17 5042.94 1003.23 20 Earnings before Interest, Tax Depreciation and Amortization (EBITDA) 162.83 350.57 (187.74) (54) Add : Other
Slide 32: Revenue From Operations Growth
Revenue From Operations Growth Rs. 6209.00 crore (HY Sept 2019) (15%) Rs. 5393.51 crore (CPLY) 32
Slide 33: Production & Purchase
PRODUCTION & PURCHASE LMT Particulars HY ended HY Increase/(decrease) Sept 19 ended LMT % Sept 18 Production Urea Production 17.53 18.83 (1.30) (7) Bio Fertilizers and Bentonite Sulphur 0.06 0.03 0.03 100 Production Total 17.59 18.86 (1.27) (7) Purchase Purchase of Imported Fertilizers 5.88 4.01 1.8
Slide 34: Sale of Own Urea & Imported Urea (Govt A/c)
Sale of Own Urea & Imported Urea (Govt A/c) (Lakh MT) Particulars April – April – Increase/ % September 19 September (Decrease) 18 Own Urea 17.40 19.01 (1.61) (8) Imported Urea (Govt A/C) 5.45 - 4.26 - Total Urea 22.85 19.01 3.84 20 34
Slide 35: Sale of DAP/MOP/APS/NPK/Compost and Other Fertilizers
Sale of DAP/MOP/APS/NPK including 10:26:26/Compost/ Water Soluble Fert./SSP & Bio Fertilizer and BS (Lakh MT) Particulars April – April – Increase/ % September 19 September 18 (Decrease) DAP 3.32 1.85 1.47 79 MOP 0.23 - 0.23 - APS 0.23 0.25 (0.02) (8) NPK 0.18 0.27 (0.09) (33) NPK 10:26:26 0.08 - 0.
Slide 36: Sale Breakup Segment wise
Sale Breakup Segment wise‐Urea/Traded goods/Industrial Product & Others Product (Value & % Sale) HY‐Sept‐2019 HY‐Sept‐2018 Other Fertilizer Products, ₹ Trading , ₹ Other Fertilizer 104.40, 821.29, Products , Trading , ₹ 1.68% 15.23% ₹ 117.70, 1,802.93, 2.18% 29.04% Own Own Fertilizers Fertilizers (U
Slide 37: Details of Expenses for the Half Year Ended September 2019
DETAILS OF EXPENSES FOR THE HALF YEAR ENDED SEPTEMBER‐2019 37
Slide 38: Details of Expenses for HY Sept 19
Details of Expenses for HY Sept 19 Particulars HY ended HY ended Increase/ Key reasons Sept 19 Sept 18 (Decrease) Production of urea (LMT) 17.53 18.83 (1.30) Due to plant shutdown / trippings. Sale of urea (Own) (LMT) 17.40 19.01 (1.61) Due to lower production. (Rs. (Rs. (Rs. Crore) Crore) Crore) Co
Slide 39: Urea Production (Half Year)
UREA PRODUCTION (HALF YEAR) Lakh MT Unit April‐Sept 19 CPLY Reason for increase/ decrease in production Increase of 0.34 LMT. Nangal 2.84 2.50 Decrease of 0.09 LMT Panipat 2.67 2.76 Plant shutdown in May/June 2019 to attend urea reactor liner leakage Interruptions on three occasions in June 2019 { b
Slide 40: Production of Urea in the Half Year in Preceding Years
Production of Urea in the Half Year in Preceding 4 Years (Qty. in LMT) Production of Urea for the Half Year (Apr to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 Units HY HY HY HY NANGAL 2.38 2.87 2.50 2.84 PANIPAT 2.52 2.92 2.76 2.67 BATHINDA 2.84 2.61 2.91 2.58 VIJAIPUR- I 5.37 5.09 4.96 4.41 VIJAIPUR-II
Slide 41: On-Stream Days in the Half Year in Preceding Years
On-Stream Days in the Half Year in Preceding 4 Years (No. of Days) On‐Stream Days in the Half Year (Apr to Sept) 2016‐17 2017‐18 2018‐19 2019‐20 Units HY HY HY HY NANGAL 151 175 156 173 PANIPAT 157 180 172 165 BATHINDA 178 161 179 161 VIJAIPUR- I 178 169 165 147 VIJAIPUR-II 166 155 174 158 41
Slide 42: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Revised Energy Units Norms for 2019‐20 HY Sept 2019 CPLY Nangal 7.065 6.803 6.687 Panipat 7.558 7.049 6.673 Bathinda 7.430 7.089 6.798 Vijaipur I 5.884 6.160 5.919 Vijaipur II 5.500 5.584 5.421 Energy consumption at all units was within revised energy norms exc
Slide 43: Profit Variance Analysis for HY Ended 30th Sept 2019
PROFIT VARIANCE ANALYSIS FOR HY ENDED 30th SEPT 2019 Company has incurred Loss before tax of Rs. 73.32 crore during the half year ended Sep‐19 as against profit before tax of Rs. 177.67 crore during CPLY i.e. decrease in profit by Rs. 250.99 crore. The various reasons for decrease in PBT are as foll
Slide 44: Break Up of Total Finance Cost for HY Sept 2019
BREAK UP OF TOTAL FINANCE COST FOR HY Sept 2019 Rs. crore Finance cost (excluding interest on trading activities) increased by Rs. 31.06 crore (25%) from Rs. 124.52 crore during CPLY to Rs. 155.58 crore during the current period. The break-up of finance cost is as under: Particulars HY ended Sept 19
Slide 45: Analysis of Finance Cost on Working Capital for HY Sept 2019
ANALYSIS OF FINANCE COST ON WORKING CAPITAL FOR HY SEPT 2019 Rs. crore HY ended Increase/ Particulars CPLY September 19 (Decrease) Interest on working capital Loans (excluding interest on trading activities) 145.04 115.73 29.31 Interest on Trading Activities 56.64 21.65 34.99 Other borrowing costs (
Slide 46: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST Total average Short Term Borrowing Rs 6149.50 crore during half year ended sept 2019 , out of which 83.32% amount has been borrowed through Commercial Papers @ avg. interest rate of 6.43% as against 6.72% in CPLY. Short term funds of Rs. 550 crore as Inter Corp
Slide 47: Interest Coverage Ratio (ICR)
INTEREST COVERAGE RATIO (ICR) Particulars Unit HY ended CPLY Sept 19 Cash available for debt service Rs. Crore 186.34 361.14 (PBT + Depreciation + Finance cost) Finance Cost Rs. Crore 212.22 146.17 Interest Coverage Ratio Times 0.88 2.47 (ICR) Finance Cost (including Loan Rs. Crore 243.38 173.11 Rep
Slide 48: Debt to Equity Ratio
DEBT TO EQUITY RATIO S. Particulars As on As on No. 30th Sept 30th Sept 2018 2019 1 Long term Borrowings 460.12 159.79 2 Short term Borrowings 6228.74 4303.45 3 Total Borrowings 6688.86 4463.24 4 Net worth (Para 4.9) 2140.03 2101.70 5 Total Debt : Equity ratio 3.13 2.12 (3 divided by 4) 6. Long-term
Slide 49: Segment Results for the Half Year Ended September 2019
SEGMENT RESULTS FOR THE HALF YEAR ENDED SEPTEMBER 2019 49
Slide 50: Segment Results
SEGMENT RESULTS Rs. crore Particulars Qtr Sept Qtr Sept HY Sept HY Sept 2019 2018 2019 2018 Segment Revenue Own Fertilizers (Urea, BS and Bio- 2448.29 2539.44 4301.67 4454.52 fertilizers) 66.86% 78.59% 69.28% 82.59% Fertilizer Trading 1159.20 632.67 1802.93 821.29 31.66% 19.58% 29.04% 15.23% Other P
Slide 51: Consolidated Accounts
CONSOLIDATED ACCOUNTS 51
Slide 52: Consolidated Accounts
CONSOLIDATED ACCOUNTS The Consolidated Financial Statements are prepared in accordance with the principles and procedures for the preparation and presentation of consolidated accounts as set out in the accounting standards (Ind‐As 28) as prescribed under Section 133 of the Companies Act, 2013. B
Slide 53: Consolidated Accounts
CONSOLIDATED ACCOUNTS STANDALONE CONSOLIDATED Particulars HY Sep 19 HY Sep 18 HY Sep 19 HY Sep 18 Revenue from operations 6209.00 5393.51 6209.00 5393.51 Total Expenses 6093.61 5080.24 6093.61 5080.24 Profit/ (Loss) from operations before other 115.39 313.27 115.39 313.27 income, finance cost Other
Slide 54: Consolidated Accounts
CONSOLIDATED ACCOUNTS The Assets and Liabilities as at 30thSept, 2019 are as under:‐ STANDALONE CONSOLIDATED Particulars As on 30.09.19 As on 30.09.18 As on 30.09.19 As on 30.09.18 ASSETS Non‐current assets 4704.97 4371.71 4699.66 4368.74 Current assets 8709.58 7297.26 8709.58 7297.26 Assets Held fo
Slide 55: New Projects and Other Activities
NEW PROJECTS AND OTHER ACTIVITIES 55
Slide 56: Projects and Other Activities Status
Project s and Other Activities status Company has contributed Rs. 307.37 crore upto 30.09.2019 towards equity in its JV Company (RFCL) out of total requirement Rs. 447.63 crore. Company has entered into a manpower management consultancy agreement with RFCL where in the company shall provide manp
Slide 57: Overview of Ramagundam Project (Being Executed by RFCL)
Overview of Ramagundam Project (Being executed by RFCL) Joint Venture of NFL, Engineers India Limited (EIL) & Fertilizers Corporation of India Limited (FCIL) is undertaking the revival of Ramagundam unit of FCIL through RFCL Plant Capacity Ammonia Plant : 2200 MTPD (0.726 MMTPA) Urea Plant : 3850
Slide 58: Thank You
WV LV N THANK YOU
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