Slide 1: Letter to stock exchanges submitting investor presentation
DCW LIMITED February 14, 2023 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza Bldg. Department of Corporate Services, 5th Floor, Plot No.C-1 1st floor, New Trading Ring 'G' Block, Near Wockhardt, Rotunda Building, Bandra Kurla Complex Phiroze Jeejeebhoy Towers, Mumbai 400 051 Da
Slide 2: DCW Limited Investor Presentation Q3 & 9MFY23
DCW LIMITED INVESTOR PRESENTATION- Q3 & 9MFY23
Slide 3: Disclaimer
DISCLAIMER The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate only as of the date it was originally issued. The figures mentioned in the data are rounded off. DCW Limited (“DCW” or the Company) strictly deni
Slide 4: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 5: DCW at a Glance
DCW AT A GLANCE Overview: • Established as Dhrangadhra Chemical Works in 1939 at Dhrangadhra, Gujarat as India’s first Soda Ash plant. • Expanded, diversified and modernized its operations with a diversified range of products for supply to customers in both, domestic and international markets since
Slide 6: Segment Overview
Segment Overview Specialty Chemicals Intermediate Chemicals Commodity Chemicals Synthetic HCl, Utox, Liquid Chlorine, Caustic C-PVC SIOP Sodium Bicarbonate, etc. Soda Ash PVC Rutile Soda Pioneer & Synthetic Leading One of the Situated at Situated at Situated at rutile or manufacturer in
Slide 7: Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals
Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals Niche, Diversified Product Mix Moving Up The Value Chain Diversified product mix of Commodity, Intermediate and Specialty Chemicals Increasing the contribution from high value, high margin Specialty Chemicals
Slide 8: Evolution – Moving Up The Value Chain
Evolution – Moving Up The Value Chain The Story So Far : Well Established Commodity Chemicals Player Transition Towards Specialty Chemicals & Self- Sufficiency 2016 • Synthetic Iron Oxide (SIOP) Plant 2017 Country’s first and 1970 • only C-PVC plant • Synthetic Rutile and Integrated with technical P
Slide 9: Focus on Sustainable Growth & Long Term Value Creation
Focus on Sustainable Growth & Long Term Value Creation Internal Factors External Factors Strategic Operating Sustainable Growth Demand Government Initiatives Initiatives Drivers Initiatives Our demand for Government’s thrust Increasing share of Re-Engineering various products on Agriculture
Slide 10: Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities
Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities Exclusive Technological Tie-ups for Significant Scale-up Strategic Location Captive Power Plant Specialty Chemicals Opportunities India’s pioneer & leading Sahupuram facility situated in 58 MW Cogen Power Pla
Slide 11: Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products
Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products Sahupuram Facility Flow Dhrangadhra Facility Flow Water Salt Material Ammonia Electrolysis Hydrogen Caustic Soda Raw Coal Salt Boiler Fly Ash PVC Plant Chlorine HCl Soda Ash Processing Steam Steam 50 MW PVC Resin Power Sodiu
Slide 12: Board of Directors – Wide Spectrum of Experience
Board of Directors – Wide Spectrum of Experience Mr. Pramod Jain, Chairman & Managing Director Mr. Bakul Jain, Managing Director • Overall 51 years of wide experience in the Industry • Overall 39 years of wide experience in the Industry • Under his leadership, the capacity of Soda Ash Plant at Dhran
Slide 13: Qualified Management with Deep Understanding of Chemicals Sector
Qualified Management with Deep Understanding of Chemicals Sector Mr. Amitabh Gupta, CEO Mr. S. Ganapathy, COO • Holds Bachelor’s degree in Physics, Chemistry and • M.Sc. - Chemistry & MMS – Marketing from Mumbai Mathematics and Master’s degree in Physics. University • Associated with the Company for
Slide 14: State Of The Art, Strategically Located Manufacturing Facilities
State Of The Art, Strategically Located Manufacturing Facilities Dhrangadhra Facility Sahupuram Facility Products Manufactured: Soda Ash, Ammonium Bicarbonate, Products Manufactured: Caustic Soda, PVC, SIOP, C-PVC, SR, Liquid Sodium Bicarbonate Chlorine, Utox, Hydrochloric Acid, Trichloroethylene, e
Slide 15: Our Esteemed Clientele
Our Esteemed Clientele Commodity Chemicals National Aluminium Company Finolex Industries Limited Hindustan Unilever Limited (HUL) (NALCO) Tamil Nadu Newsprint and Papers Ashirvad Pipes Pvt Limited Manali Petrochemical Limited Limited Specialty Chemicals Osaka Titanium Corporation, Japan TOHO Titaniu
Slide 16: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 17: Capacity Overview
Capacity Overview Specialty Chemicals Commodity Chemicals C-PVC SIOP Synthetic Rutile PVC Caustic Soda Soda Ash Installed Capacity: Installed Installed Installed Installed Installed 10,800 TPA Capacity: Capacity: Capacity: Capacity: Capacity: (to double by 27,000 TPA 42,000 TPA 90,000 TP
Slide 18: C-PVC – A Niche Play
C-PVC – A Niche Play Sole manufacturer of C-PVC in India C-PVC Business Overview Revenue (INR Million) • Pioneer & Leding manufacturer of C-PVC in India with a technical license from Arkema, France 2153 • Commenced operations at Sahupuram facility in 2017, successfully 1486 ramped up utilisation sin
Slide 19: SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments
SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments Intermediate Chemicals provide high self-sufficiency and operating leverage to SIOP Business SIOP Business Overview Revenue (INR Million) • World’s first commercial scale Synthetic Iron Oxide Pigment to produc
Slide 20: PVC – Favourable market dynamics
PVC – Favourable market dynamics With favourable market dynamics, PVC is expected to drive the next leg of growth in commodity chemicals PVC Business Overview Revenue (INR Million) • DCW’s PVC plant is situated at Sahupuram, Tamil Nadu • Well positioned to take the advantage of growing domestic dema
Slide 21: Caustic Soda – Promising Market Dynamics
Caustic Soda – Promising Market Dynamics Company posted healthy ~10.1% EBIT Margin & ~86% utilisation as of FY22 despite industry headwinds Caustic Soda Business Overview Revenue (INR Million) • Pioneer of Caustic Soda manufacturing in India • DCW’s caustic soda plant is situated at Sahupuram, Tamil
Slide 22: Soda Ash – Consistent Commodity Business
Soda Ash – Consistent Commodity Business Long term steady performance for key operating matrices - production and capacity utilisation Soda Ash Business Overview Revenue (INR Million) • DCW’s soda ash plant is situated at Dhrangadhra, Gujarat • Company’s soda ash business witnessed robust growth ove
Slide 23: Intermediate Chemicals – Effectively Complements Other Segments
Intermediate Chemicals – Effectively Complements Other Segments Intermediate Chemicals ensure the uninterrupted, cost-effective supply for value-addition products. Trichloroethylene Plant Intermediate Chemicals Overview • Wide range: Intermediate chemicals ensure self-sufficiency and additional sour
Slide 24: Intermediate Chemicals – Product Overview
Intermediate Chemicals – Product Overview Intermediate Chemical Capacity (TPA) Application Liquid Chlorine 36,000 Captive Consumption - C-PVC Hydrochloric Acid 90,000 Captive Consumption – Synthetic Rutile Trichloroethylene 7,200 Sold in open market Ferric Chloride 6,000 Captive Consumption – SIOP U
Slide 25: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 26: Q3 & 9MFY23 Key Highlights
Q3 & 9MFY23 KEY HIGHLIGHTS Speciality Chemicals Revenue up by 17.1% EBITDA up by 47.3% YoY EBITDA contribution YoY in 9MFY23 in 9MFY23 24.0% in 9MFY23 Soda Ash Picks up the Net Debt: Equity at 0.55 momentum and SIOP Revenue up 62.4% in FY22 versus 0.73 as revenue up by 95% YoY YoY in 9MFY23 on FY21
Slide 27: Q3FY23 Result – Key Highlights
Q3FY23 RESULT – KEY HIGHLIGHTS Q3FY23 YoY ANALYSIS In INR Million REVENUES EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 657.7 6,551.2 5,792.3 18.2% 13.8% 408.6 1,053.2 11.4% 11.6% 905.1 6.2% 482.2 16.4% 8.30% J t 61% 4.10% 266.9 80.7% Q3FY22 Q3FY23 Q3FY22 Q3FY23 t Q3FY22 t Q3FY23 Q3FY22
Slide 28: 9MFY23 Result – Key Highlights
9MFY23 RESULT – KEY HIGHLIGHTS 9MFY23 YoY ANALYSIS In INR Million REVENUES EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 20,456.6 17,475.0 3,400.1 2,124.6 17.1% 13.2% 16.6% 1,566.3 47.3% 5.2% t 2,308.1 t 910.6 133.3% 10.4% 3.4% 162.2% 7.7% 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 t 9MFY23 597.3
Slide 29: Segmental Performance – Revenue
SEGMENTAL PERFORMANCE Revenue Breakdown - By Segments (INR Million) Segments Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% PVC 1,699.4 3,354.3 -49.3% 2,335.0 -27.2% 7,226.4 8,969.0 -19.4% Caustic Soda 2,274.5 1,892.8 20.2% 2,791.0 -18.5% 7,629.3 4,794.5 59.1% Soda Ash 897.6 435.7 106.0% 867.1 3.
Slide 30: Segmental Performance – EBITDA
SEGMENTAL PERFORMANCE EBITDA Breakdown - By Segments (INR Million) Segments Q3FY23 Q3FY22 YoY% Q2FY23 QoQ% 9MFY23 9MFY22 YoY% PVC -24.1 563.0 NA -221.7 NA -308.6 1,199.1 NA Caustic Soda 701.3 148.6 372.0% 920.8 -23.8% 2,376.6 415.4 472.1% Soda Ash 176.8 -56.5 NA 79.2 123.3% 448.2 -16.4 2625.8% C-PVC
Slide 31: PVC Business – Financial & Operating Metrics
PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY23 Q3FY22 YoY% Q2FY23 QnQ (%) 9MFY23 9MFY22 YoY% Revenue from Operations 1,699.4 3,354.3 -49.3% 2,335.0 -27.2% 7,226.4 8,969.0 -19.4% EBITDA -24.1 563.0 -104.3 -221.7 -89.1% -308.6 1,199.1 -125.7% EBIT
Slide 32: Caustic Soda Business – Financial & Operating Metrics
Caustic Soda Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY23 Q3FY22 YoY% Q2FY23 QnQ (%) 9MFY23 9MFY22 YoY% Revenue from Operations 2,274.5 1,892.8 20.2% 2,791.0 -18.5% 7,629.3 4,794.5 59.1% EBITDA 701.3 148.6 372.0% 920.8 -23.8% 2,376.6 415.4 472.1%
Slide 33: Soda Ash Business – Financial & Operating Metrics
Soda Ash Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY23 Q3FY22 YoY% Q2FY23 QnQ (%) 9MFY22 9MFY22 YoY% Revenue from Operations 897.6 435.7 106.0% 867.1 3.5% 2,632.1 1,359.9 94.6% EBITDA 176.8 -56.5 212.8% 79.2 123.3% 448.2 -16.4 2625.8% EBITDA Margin
Slide 34: C-PVC Business – Financial & Operating Metrics
C-PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY23 Q3FY22 YoY% Q2FY23 QnQ (%) 9MFY23 9MFY22 YoY% Revenue from Operations 545.3 561.5 -2.9% 583.2 -6.5% 1,716.8 1,526.6 12.5% EBITDA 108.8 211.4 -48.5% 151.8 -28.3% 434.3 503.3 -13.7% EBITDA Margin (%
Slide 35: SIOP Business – Financial & Operating Metrics
SIOP Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q3FY23 Q3FY22 YoY% Q3FY23 QnQ (%) 9MFY23 9MFY22 YoY% Revenue from Operations 357.9 285.7 25.3% 361.8 -1.1% 1,130.6 696.4 62.4% EBITDA 101.2 25.1 302.5% 145.2 -30.3% 371.8 92.2 303.1% EBITDA Margin (%) 28.
Slide 36: Q3 & 9MFY23 Result – Profit & Loss Statement
Q3 & 9MFY23 RESULT – PROFIT & LOSS STATEMENT Particulars (INR Million) Q3FY23 Q3FY22 YoY % 9MFY23 9MFY22 YoY% FY22 Net Revenue from Operations 5,792.3 6,551.2 -11.6% 20,456.6 17,475.0 17.1% 24,547.4 Other Income 38.1 12.8 198.2% 109.4 47.8 128.9% 61.0 Total Income 5,830.3 6,564.0 -11.2% 20,566.0 17,
Slide 37: Balance Sheet
BALANCE SHEET Asset (INR Million) H1FY23 FY22 Liabilities (INR Million) H1FY23 FY22 Non-Current Assets Equity & Liabilities Property, Plant & Equipment Equity Share Capital 590.3 522.1 13,226.9 13,520.7 Capital Work in Progress Other Equity 9,041.3 7,496.1 147.0 81.0 Financial Assets Total Equity 9,
Slide 38: Historical Performance at a Glance
HISTORICAL PERFORMANCE AT A GLANCE In INR Million REVENUES1 EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 3,309 15.1% 1075.0 13.5% 4.4% 24,547 12.1% 2,207 14,643 1550 12,773 0.3% 38 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 -2.1% -268 LEVERAGE ANALYSIS RETURN METRICS (%) 0.82 0.73 0.55 24.4% 8,
Slide 39: For Further Queries
FOR FURTHER QUERIES: Mr. Dilip Darji Sr. General Manager (Legal) & Company Secretary Email: dilip.darji@dcwltd.com Mr. Manoj Saha Email: dcw@dickensonworld.com