Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — Q3 FY2024 Earnings Presentation
46 slides from Sumitomo Chemical India's earnings presentation, Feb 2, 2024
Slide 1: Exchange filing cover letter
SCIL/SEC/2024 2nd February, 2024 To, BSE Limited, The National Stock Exchange of Listing Department, India Listing Department, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex Mumbai-400001 Bandra East, Mumbai - 400 051 Dear Sirs, Sub: Investor Presentation on Financial
Slide 2: Sumitomo Chemical India Ltd. Investor Presentation December 2023
Evolving Responsibly Sumitomo Chemical India Ltd. Investor Presentation December 2023 1
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Financial Performance and Key Highlights
Financial Performance and Key Highlights 3 Innovate Nurture Grow www.sumichem.co.in
Slide 5: Performance Highlights – Quarter & YTD
Performance Highlights – Quarter & YTD Revenue (Rs Crs) Gross Profit (Rs. Crs) & EBITDA (Rs. Crs) & PAT (Rs Crs) Gross Profit Margin (%) EBITDA Margin (%) Q3FY24 vs Q3FY23 -19% -45% -40% -28% 266 120 90 753 215 542 55 66 39.8% 35.3% 16.0% 12.1% 12.0% 10.1% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q
Slide 6: Performance Highlights – Q3FY24
Performance Highlights – Q3FY24 ✓ Since mid-July 2023, the reservoir storage in India has consistently been lower than both the levels from the same time last year and the historical normal. This is due to below-average rainfall throughout the South-West Monsoon season (Jun-Sep 2023) and the post-Mo
Slide 7: Performance Highlights – Q3FY24
Performance Highlights – Q3FY24 Weekly rabi sowing trends State-Wise Progress of Rabi Sowing as on Dec 15, 2023 YoY trends in rabi sowing (as on Dec 15, 2023) Source: Ministry of Agriculture and Farmers’ Welfare, GoI; CEIC: ICRA Research Maps not to scale. All data, information, and maps are provide
Slide 8: New Product Launches - PAN India
New Product Launches - PAN India Pyclome Sumiblue Diamond Santana Insecticide Plant Growth Regulator Insecticide Clothianidin 3.5% + Gibberellic Acid 0.1 % GR Clothianidin 0.5% GR Pyriproxyfen 8% SE Promalin Korko Derecho Danitol® NXT Insecticide Plant Growth Regulator Fungicide Insecticide Emamecti
Slide 9: New Product Launches - PAN India
New Product Launches - PAN India Herbicide Oxadiargyl 1% + Pretilachlor 6% GR Category: Herbicide Insecticide Chlorantrasniliprole 0.4% w/w GR Herbicide Glufosinate Ammonium 13.5 SL Fungicide TriBasic Copper Sulfate 34.5% W/V SC Fungicide Herbicide TriBasic Copper Sulfate 34.5% W/V SC Tembotrione 34
Slide 10: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) Q3FY24 Q3FY23 YoY Q2FY24 QoQ 9MFY24 9MFY23 YoY Revenue from Operations 542.0 753.0 -28% 903.5 -40% 2,169.7 2,859.4 -24% COGS 326.5 487.3 556.9 1,382.3 1,823.2 Gross Profit 215.5 265.7 -19% 346.5 -38% 787.4 1,036.2 -24% Gross Profit %
Slide 11: Revenue Breakup – 9MFY24
Revenue Breakup – 9MFY24 Product Breakup Geographic Breakup 7% 9% 8% 1% 3% 2% 0% 2% 0% 8% 7% 3% 2% 2% 4% 2% 1% 7% 40% 5% 43% 8% 9MFY23 9MFY24 9MFY23 9MFY24 10% 11% 78% 25% 87% 25% Insecticides PGR Fungicides Domestic Japan Europe North America Herbicides Metal Phosphides AND & EHD* Africa Asia (Ex.
Slide 12: Consolidated Working Capital Movement
Consolidated Working Capital Movement Change Change Change Particulars (Rs. Crs) Dec-23* Sep-23* (Dec-23 to Mar-23* (Dec-23 to Dec-22* (Dec-23 to Sep-23) Mar-23) Dec-22) Inventory (A) 576.1 561.7 14.4 888.7 -312.6 750.4 -174.3 Inventory Days (Inventories/ COGS* No. of days in period) (i) 115 96 143
Slide 13: Company Overview
Company Overview Innovate Nurture Grow www.sumichem.co.in
Slide 14: Journey to 15x Growth in India
Journey to 15x Growth in India SCIL – Vision & Mission Strategically Located Manufacturing Facilities Formidable Player in the Indian Strong Focus on R&D, Process Innovation Agrochemicals Space and Safety, Health and Environment (SHE) Diversified & De-risked Portfolio Across Autonomous Board with Va
Slide 15: SCIL - Vision & Mission
SCIL - Vision & Mission Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distribution an
Slide 16: Journey to 15x Growth in India in last 13 years
Journey to 15x Growth in India in last 13 years Feasibility study to set-up correct business model to Exploration Phase : 2000 – 2009 capture potential in Indian market and start aggressive growth phase Manufacturing JV with New Acquired product - 2000 Chemi Industries 2002 Started EHD (Public Healt
Slide 17: Formidable Player in the Indian Agrochemicals Space
Formidable Player in the Indian Agrochemicals Space 5 200+ Brands Manufacturing Grown 15X+ over FY11-23 700+ SKUs Facilities Rs. Bn 14 15X 25+ Patents Technical 200+ Registrations 35.1 Actives 15,000+ Direct 1600+ Employees Distributors & 1500+ FDOs# #FDOs - Field Development 60 Depots Officers (con
Slide 18: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to ~50 countries Generics Speciality 7% 1% 4% Aus
Slide 19: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network ✓ Strong brand with market leading position across various product categories ✓ Dual brand portfolio can offer products at all price points serving multiple 26 States 60 Depots customer sub-segments ✓ In-depth knowledge of own research products,
Slide 20: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,500+ Relationship managers connecting to 4.4 million+ farmers throughout crop cycle ✓ Over 200 brands covering maximum of crops an
Slide 21: Digital Marketing Initiatives
Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites (9 local languages), engaged with 20 million consumers in FY23 More than 53,000 subscribers http://www.dan
Slide 22: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~58 Chlorp
Slide 23: R&D: End-to-End Product Development Capabilities
R&D: End-to-End Product Development Capabilities ❑ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development; Soil Health Research Laboratory and in-house field trials ❑ R&D Team comprises of 75+ qualified and
Slide 24: Capex Plans
Capex Plans Regular Capex Additional Capex Research & Development Rs. 70-75 crore p.a. Rs. 120 crore over 2 years for 5 products* Indian R&D team is working on manufacturing several off-patent products for Domestic as well as Exports To manufacture additional proprietary technical to global affiliat
Slide 25: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy Abiding by SCC Japan’s EHS Policies working environment at manufacturing sites Four Start Export House by Ministry of Commerce and Industry Authorized Economic Operator AEO (Tier-2) Ce
Slide 26: Awards & Accolades
Awards & Accolades Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Jamnalal Bajaj Award for “Fair Business and Practices” National Safety Award by Labour Ministry, Government of India for safety performance Chemexcil Best Exporter's awa
Slide 27: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 30 years of experience in corporate laws, foreign investment the Nationa
Slide 28: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director ▪ MBA from Vanderbilt University, U.S.A. ▪ MBA from University of Virginia, USA and a and a Master’s degree from Kyoto Bachelor’s degree from the University of University in J
Slide 29: Growth Strategies
Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • units which would help improve our production processes, Driving operational efficiencies maintaining highest safety stan
Slide 30: Financial Performance & Key Takeaways
Financial Performance & Key Takeaways Innovate Nurture Grow www.sumichem.co.in
Slide 31: Historical Performance Highlights
Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) +13% 3,511 +25% 667 502 3,065 600 +28% 424 2,645 487 2,228 2,425 345 1,913 333 291 205 217 145 166 18.4% 19.6% 19.0% 11.3% 13.0% 13.7% FY18* FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY1
Slide 32: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY23 FY22 FY21 FY20 FY19 FY18 Net Revenue from Operations 3,511.0 3,061.2 2,644.9 2,424.8 2,228.4 1,912.9* COGS 2,270.6 1,908.0 1,655.4 1,607.6 1,458.9 1,238.7 Gross Profit 1,240.3 1,153.2 989.5 817.2 769.6 674.2 Gross Profit % 35.3%
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non-Current Assets (A) 581.2 487.6 367.6 360.6 318.3 312.7 EQUITY (A) 2,381.8 1,927.2 1,541.3 1,221.8 1,048.4 954.0 Property, Plant and Equip
Slide 34: Consolidated Working Capital Movement
Consolidated Working Capital Movement Particulars (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Inventory (A) 888.7 937.8 754.4 588.0 680.6 Inventory Days (Inventories/ COGS*365) (i) 143 179 166 134 170 Trade Receivables (B) 946.1 843.1 848.2 849.8 671.0 Trade Receivables Days (Trade Receivables / Re
Slide 35: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 31-Mar-18 Net Profit Before Tax 654.2 575.7 453.3 266.5 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financia
Slide 36: Key Takeaways
Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi
Slide 37: Annexures
Annexures Glance of various events to bring people together Innovate Nurture Grow www.sumichem.co.in
Slide 38: Glance of various events to bring people together
Glance of various events to bring people together Strategic Workshop of senior and Current year theme – Back middle management to deliberate to Core fundamentals to on growth acceleration steer challenging times Logo for Annual Sales Logo for Annual Team meeting - Distributors meeting Manthan means
Slide 39: Annual Sales Conference – Sumi Manthan
Annual Sales Conference – Sumi Manthan 38 Innovate Nurture Grow www.sumichem.co.in
Slide 40: Annual Distributor Meet – Sumi Bandhan
Annual Distributor Meet – Sumi Bandhan 39 Innovate Nurture Grow www.sumichem.co.in
Slide 41: Goal Setting Meet – Bhavnagar
Goal Setting Meet – Bhavnagar 40 Innovate Nurture Grow www.sumichem.co.in
Slide 42: Goal Setting Meet – Gajod
Goal Setting Meet – Gajod 41 Innovate Nurture Grow www.sumichem.co.in
Slide 43: Goal Setting Meet – Vapi, Silvassa, Tarapur
Goal Setting Meet – Vapi, Silvassa, Tarapur 42 Innovate Nurture Grow www.sumichem.co.in
Slide 44: SCC senior management India visit – May 2023
SCC senior management India visit – May 2023 43 Innovate Nurture Grow www.sumichem.co.in
Slide 45: SCC senior management India visit – June 2022
SCC senior management India visit – June 2022 44 Innovate Nurture Grow www.sumichem.co.in
Slide 46: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110MH2000PLC124224 CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Mr. Parin Narichania +91 99206 02034 / +91 99300 25733 investor.relations@sum
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