Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q2 FY22 Earnings Presentation
25 slides from Aarti Industries's earnings presentation, Nov 1, 2021
Slide 1: Aarti Industries cover letter to exchanges
AARTI INDUSTRIES LIMITED November 1, 2021 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 Sandra - Kurla Complex, BSE CODE -524208
Slide 2: Q2 FY22 Results Presentation
AARTI INDUSTRIES LIMITED Q2 FY22 Results Presentation 1st November 2021
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
Agenda 01 Company Overview 02 Q2 FY21-22 Financial Results 03 Growth Opportunity & Strategy 3
Slide 5: About AIL
About AIL Overview Key Metrics A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost 200+ 400+ 700+ optimization. Global Customers Domestic Products Pharma operations spanning APIs, intermediates and Xanthene Customers derivatives
Slide 6: Q2 FY22 Highlights
Q2 FY22 Highlights Major Highlights ● Topline increase due to increase in RM prices, Fuel and Logistics Costs. Absolute growth in EBITDA reflects the ability to pass-on the price increase to the customer. ● Recorded the highest ever Topline and Bottomline. ● Efforts taken to pass on a substantial pa
Slide 7: Chairman's Message
Chairman’s Message Commenting on the performance for Q2 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “Maintaining our growth trajectory, we have once again recorded the highest ever revenue and profitability in our operating history. We evaluate EBITDA as the key monito
Slide 8: Agenda
Agenda 01 Company Overview 02 Q2 FY21-22 Financial Results 03 Growth Opportunity & Strategy 7
Slide 9: Q2 FY22 P&L - Consolidated
Q2 FY22 P&L - Consolidated Particulars Q2 Q2 Y-o-Y Q1 Q-o-Q H1 H1 Y-o-Y FY22 FY21 (%) FY22 (%) FY22 FY21 (%) (Rs. Crore) ▪ Sustained revenue growth driven by Gross Income from volume expansion and 74% contribution 1,762 1,330 32.4% 1,503 17.2% 3,265 2,366 38.0% Operations from value-added products E
Slide 10: Q2 FY22 Highlights (Consolidated)
Q2 FY22 Highlights (Consolidated) Revenues EBIDTA 1762 310 254 1330 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 PAT 176 Key Highlights: 140 Re-iterated guidance of over 25% growth for FY22. Strong momentum in H1, driven by rising demand across various products. Higher contribution from domestic demand as
Slide 11: Quarterly EBITDA & PAT (Consolidated)
Quarterly EBITDA & PAT (Consolidated) EBITDA & EBITDA % 21.7 20.9 19.1 19.3 17.6 254 285 260 314 310 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 PAT 176 165 165 140 136 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 10 Amount in INR (Cr)
Slide 12: Speciality Chemical - Revenue & EBIT
Speciality Chemical - Revenue & EBIT Speciality Chemicals - Revenue 1,483 1,228 1,089 1,065 1,091 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Speciality Chemicals EBIT & EBIT % 21.0 18.9 18.9 17.3 16.3 224 232 242 188 206 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 EBIT EBIT % 11 Amount in INR (Cr)
Slide 13: Q2 FY22 Speciality Chemical - Consolidated
Q2 FY22 Speciality Chemical - Consolidated Revenue Revenue 1,483 2,711 1,089 1,915 Revenue growth backed by 90% utilization across operationalized facilities Return of demand from established markets driving improved margins Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 74% is the share of revenue from valu
Slide 14: Pharma - Revenue & EBIT
Pharma - Revenue & EBIT Pharma - Revenue 276 278 256 246 241 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Pharma EBIT & EBIT % 24.1 22.4 20.0 18.8 14.7 58 55 51 52 41 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 EBIT EBIT % 13 Amount in INR (Cr)
Slide 15: Q2 FY22 Pharma - Consolidated
Q2 FY22 Pharma - Consolidated Revenue Revenue 278 554 241 451 Higher costs, passed on to the customer resulting into increased topline. Lower sales towards the end of the quarter resulting into higher inventory and reduced Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 conversion into profits EBIT EBIT Trial
Slide 16: Revenue Performance - Consolidated
Revenue Performance - Consolidated Revenue Export Operating revenues have Deep engagement with global grown on the back of strong CAGR: 12% 2,186 customers in Speciality volume growth in key 1,977 1,966 Chemicals and Pharma. In business segments and better 1,523 1,596 5,023 addition, some part of 4,
Slide 17: EBIT Performance - Consolidated
EBIT Performance - Consolidated EBIT Higher growth relative to revenue 952 957 CAGR: 12% 932 highlights value addition delivered by AIL 663 615 568 FY17 FY18 FY19 FY20 FY21 H1 FY22 Speciality Chemicals Pharmaceuticals CAGR: 7% 819 CAGR: 44% 205 814 753 566 581 137 474 113 94 79 48 FY17 FY18 FY19 FY2
Slide 18: Financials - Consolidated
Financials - Consolidated Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth FY17-20 CAGR: 13% FY17-20 CAGR: 14% FY17-20 CAGR: 19% INR (Cr) INR (Cr) INR (Cr) 5,023 965 977 982 536 524 4,705 4,621 492 3,806 654 699 3,163 316 333 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY
Slide 19: 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 20: Agenda
Agenda 01 Company Overview 02 Q2 FY21-22 Financial Results 03 Growth Opportunity & Strategy 19
Slide 21: 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
Slide 22: Future Growth Projects: FY22-24
Future Growth Projects: FY22-24 (Driven by R&D & Innovation) Introducing Chloro Toulenes Value Chain: Highlights (Range of products) ● Adding new chemistries and Value added products Newer range of ● 40+ products for Chemicals Setting up Universal Value Added products & ● 50+ products for Pharma Mul
Slide 23: Growth Estimates
Growth Estimates Expecting Robust Growth fuelled with aggressive Capex Investment - Capex for FY 22-24: ~ Rs 4,500-5,000 Cr Turnover: 2.5x-3.5x - Existing Products: ~ Rs 1500 Cr, New Products: Rs 3,000-3,500 Cr EBIT: 3x - 4x PAT: 3x - 4x FY27 Growth Turnover: 1.7x -2.0x (over FY21) EBIT: 1.7x - 2.0x
Slide 24: Contact Us
Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti-industries.com Shiv Muttoo / Shruti Joshi CDR India Tel: +91 98335 57572 / +91 75065 67349 Email: shiv@cdr-indi
Slide 25: Thank You
THANK YOU