Rallis India Limited · NSE:RALLIS
Rallis India — Q4 FY2021 Earnings Presentation
22 slides from Rallis India's earnings presentation, Apr 23, 2021
Slide 1: Submission of Analysts/Investors Presentation to stock exchanges
April 22, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra-Kurla Complex Bandra (E) Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 500355 Symbol: RALLIS Dear Sir, Sub: Submission of Analysts/Investors Presentation Ref: Letter dated
Slide 2: Results Presentation Q4 FY21
Results Presentation Q4 FY21 1
Slide 3: Disclaimer
Disclaimer This presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variatio
Slide 4: Rallis – Businesses
Rallis – Businesses Well entrenched connect with the Indian farmer Chemistry ● Crop Protection ● Partnering with global innovators (International ● Plant growth (Domestic business) Nutrients(PGN) Strong R&D and business) ● ● executional capabilities ● Soil conditioner ● Environmentally ● Seeds adher
Slide 5: Domestic business
Domestic business Leading Agrochemical Company Presence across value chain: Seeds – Soil Conditioners – Crop Protection Chemicals - Plant Growth Nutrients Market share: ~ 6% (Crop protection & PGN), ~3% (Seeds) Strong & Healthy pipeline of sustainable products Nationwide footprint – Crop Care: 3700+
Slide 6: International Business
International Business Manufacturing Technicals for global Agro chemicals players Key products – Pendimethalin: Used as a pre-emergence herbicide to control annual grasses and certain broad leaved weeds. Global market size: 413Mn USD (FY20) FACTS – Acephate: An organophosphate foliar and soil insect
Slide 7: Seed business
Seed business Rallis develops, produces and sells hybrid seeds including Paddy, Millet, Maize and Bt Cotton; Kharif season accounts for 80-85% revenues Strong market position - among top 3 in Hybrid Paddy (3rd) & Hybrid Millet (2nd) and Maize (6th). With around a million packets sold, our Bt Cotton
Slide 8: Business Strategy
Business Strategy Long Term Domestic Business: Research led new a.is Medium Term and combination formulations to build a Domestic Business: Widening portfolio with value strong and innovative product portfolio Short Term added innovative formulations and build International Business: Widening partne
Slide 9: Growth Drivers
Growth Drivers o Focus on innovation - New Formulations, New a.is In-house, Partnerships , Nutrients Domestic Business o Strengthen and leverage brand power o Augment distribution reach o Capacity expansion of existing molecules and resume few discontinued products International o Expand B2B base an
Slide 10: Domestic Business – Strategic focus areas
Domestic Business – Strategic focus areas Focused on delivering growth by • Strengthening product portfolio • Augmenting distribution network • Strengthening and leveraging brand power Consistent product launches - minimum 2 new products in 9(3) category (over the coming years) • Introduced 6 produc
Slide 11: International Business – Strategic focus areas
International Business – Strategic focus areas • Scaling up / Debottlenecking capacities of select key molecules • Doubled Mfg. capacities of Metribuzin, wherein Rallis commands ~20% market share (Global) • Expanded capacities of Hexaconazole (~50% global market share) • Capacity expansion of Pendim
Slide 12: Seeds Business – Strategic focus areas
Seeds Business – Strategic focus areas • Focused on addressing the seasonality aspect of the current portfolio and production challenges • Undertaking steps towards building a comprehensive portfolio by targeting Rabi crops and expanding portfolio in vegetable segment • Few products launched in Rabi
Slide 13: New Brand Architecture
New Brand Architecture Brand Category Colours Objective • To bring uniformity and simplicity in the packaging • To simplify the identification of Product Category by all stakeholders • To build a uniform marketing communication to customers on the basis of Umbrella branding • To adhere with CIB guid
Slide 14: Pulling the CAPEX lever
Pulling the CAPEX lever • Announced CAPEX worth Rs. 800 Cr to deliver growth across all business segments Mega CAPEX to result in better product mix; backward integration & further enhancement of R&D capabilities 13 Copyright © Rallis India Limited. All rights reserved.
Slide 15: Q4 & YTD FY21 - Performance Highlights: Overall
Q4 & YTD FY21 - Performance Highlights: Overall Rs Crs ● 36% growth in revenues QoQ. ● Growth in PAT is reflective of ● EBITDA margins turned Crop Care grew by 38% QoQ and sales & EBITDA growth Seeds by 7% positive and is in line with ● 14% revenue growth on QoQ increased revenue ● PAT also includes
Slide 16: Performance Highlights: Crop Care division
Q4 FY21 & YTD FY21 - Performance Highlights: Crop Care division Rs Cr ● Crop care division witnessed a 38% increase in revenues QoQ ● Q4 Crop care EBITDA was @ ● Growth in PAT is reflective of ● 14% revenue growth on QoQ 7.7% as compared to PY @ sales & EBITDA growth. basis in the domestic business.
Slide 17: Performance Highlights: Rallis Seeds Division
Q4 FY21 & YTD FY21 - Performance Highlights : Rallis Seeds Division Rs Cr ● 7% growth in topline in Q4 FY21 ● Better price realization leading to ● Volume De-Growth in Spring increased EBITDA margins ● PAT movement for the quarter Maize ● For full year EBITDA margins is 13% mirrors EBITDA Vs 12% in
Slide 18: Category-wise Revenue Split Q4 & YTD
Category-wise Revenue Split Q4 & YTD Note: revenue breakup is for Crop Protection 17 Copyright © Rallis India Limited. All rights reserved.
Slide 19: Revenue Split Domestic/International Q4 & YTD
Revenue Split Domestic/International Q4 & YTD Note: revenue breakup is for Crop Protection Overall share of International Business for the year is impacted due to low Metribuzin realisation vs PY. Despite volume growth in all active ingredients, including Metribuzin 18 Copyright © Rallis India Limit
Slide 20: Capex - Update
Capex - Update • Overall Capex implementation impacted due to COVID 19 Wave II : delayed by 2- 3 months • Formulation Plant at Dahej, CZ - Phase 1 Expected now to be completed by Q2 FY22 • All projects progressing, although impacted by Covid Wave II 19 Copyright © Rallis India Limited. All rights re
Slide 21: Operational Highlights
Operational Highlights New Product Progress – ❖ Launched new 9(3) formulation in Q4 – Eevee (Kresoxim Methyl + Flubendiamide) targeted as a insecticide and fungicide combination for Vegetables ❖ Two new registrations approved in Uganda Tackling COVID Difficulties and Operational Efficiency – ❖ Digit
Slide 22: THANK YOU
THANK YOU 21 16 Copyright © Rallis India Limited. All rights reserved.