Paragon Fine And Speciality Chemical Limited · NSE:PARAGON
Paragon Fine And Speciality Chemical — H1 FY2025 Earnings Presentation
38 slides from Paragon Fine And Speciality Chemical's earnings presentation, Dec 11, 2024
Slide 1: NSE filing cover letter for H1 FY25 investor presentation
Date: 11.12.2024 To, Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (E) Mumbai – 400051 Symbol: PARAGON SUB: H1 FY 2024-25 INVESTOR PRESENTATION Dear Sir / Madam, In accordance with the applicable requirement
Slide 2: Paragon Fine & Speciality Chemical Ltd H1 FY25 Investor Presentation
PARAGON FINE & SPECIALITY CHEMICAL LTD H1 FY25 Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Paragon Fine & Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: PFSCL - Our Business
PFSCL- Our Business Revenue EBITDA • Leading global supplier of specialty intermediates CAGR CAGR 14% (FY21-24) 47% (FY21-24) • Industries Served : o Specialty Pigments & Dye PAT o Agrochemical CAGR ROCE o Cosmetic 48% (FY21-24) 40% (FY24) o Pharmaceuticals o Electronics CFO ROE Rs 0.20 Cr 57% (FY24
Slide 5: Our Journey
Our Journey 2004 2022 2024 • Commenced Operations for chemical • 8000 certification attained alongside • Client based Increased to 94 manufacturing and sales One Star Export House accreditation • Revenue touched Rs 122 Cr. • Started producing of dye intermediates and a range of broadening product. G
Slide 6: Paragon's Growth and Product Strategy
Paragon’s Growth and Product Strategy Growing Revenue Expanding Margin CAGR: 16.3% 14% 14.0% 7.5% 7.1% 19.8 122.0 104.1 14.6 83.3 82.8 6.2 5.9 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (Rs Cr) EBITDA Margin % o Company's growth is on an upward trajectory, with current capacity at 650 MTPA and p
Slide 7: Improving Profitability
Improving Profitability Expanding margins: Increasing returns , Creating shareholder value Expanding Margin Enabling Shareholders’ Return 16.3% 55.3% 57.0% 14.0% 15.6% 39.7% 13.2% 36.1% 11.8% 27.0% 7.5% 7.1% 9.5% 28.2% 6.2% 6.7% 19.5% 21.9% 5.3% 5.4% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA Ma
Slide 8: Our USP
Our USP Formidable Foundations - Our Unbeatable USPs o Solid Foundations: Partnering with Global Global Leaders: Our Industry Leaders Clientele Trusted by established o Proven Excellence: Delivering Quality to Top- MNCs tier Enterprises o Everlight Chemical Industrial Corporation o Developed over 50
Slide 9: Investment Thesis
Investment Thesis o Specialised in Complex Chemistries o Customized End-to-End Solution o Derisked Model and Diversified Products Offerings o Strong product pipeline to drive future growth 8
Slide 10: Specialised in Complex Chemistries
Specialised in Complex Chemistries o High barriers exist due to o Our team has complex catalytic processes o PFSCL, one of India's successfully and the demand for largest suppliers of conducted multi-step advanced technical and R&D Chloranil and Dichlone synthesis and scale- capabilities up for nume
Slide 11: Emerging as a Key Player in a High-Barrier Industry
Emerging as a Key Player in a High-Barrier Industry Complex Catalytic Processes Technical Expertise Requirement o Processes involve intricate o Demands a high steps and chemical level of specialized reactions knowledge and o PFSCL: Implementing skills Advanced Technology Across Five Chemistry Stages
Slide 12: Forte in Complex Chemistries
Forte in 20 Complex Chemistries PFSCL expertise in 20 Chemistries Chemistry End user Industry Chemistry End user Industry Industry CAGR% Time Frame High pressure solvent Alkylation Plastics,Pharma,Textile Pharma,Fine Chem reactions Dyes & Pigments 12% 2021-2026 Amidation Pharma,Cosmetics,Solvent Hyd
Slide 13: Driving Growth through Innovation
Driving Growth through Innovation Growing Product Base Increasing Revenue per Customer (Rs Cr) 5 3 3 1 1.18 1.29 0.95 1.04 1.5 6.1 0.7 1.0 FY21 FY22 FY23 FY24 Revenue from New Products (Rs.Cr) No of New Products Introduced FY21 FY22 FY23 FY24 Innovation and Technological Advancement o Our extensive
Slide 14: Customised End to End Solution
Customised End to End Solution Case Study: Dichlone Registration and Market Growth Registration Success Rising Demand Overcoming Challenges o 2019: Began collaboration to support o 2022: Demand increased to o Navigating War Effects: Maintained supply Dichlone registration 70MT chain resilience o 202
Slide 15: De-risked Business Model and Diversified Product offering
De-risked Business Model and Diversified Product offering Diversified Revenue Stream: Segmental Revenue Contribution (%) Total Revenue from Operations (Rs.Cr) 82.2 82.8 104.1 121.3 52 8.1% 0.6% 0.33% 12.0% 14.3% 12.7% 22.1% 0.00% 1.06% 0.72% 1.40% 62.6% 79.9% 49.7% 65.5% 68.9% 7.12% 7.87% 6.16% 11.7
Slide 16: Revenue from Top 10 Customers
Revenue from Top 10 Customers Tailored Solution, Customer Centric Success Contribution from Top 10 Customers Growing Revenue (Rs.Cr) 73.3% 78.2% 26% 17% 42.2% 41.0% -1% 60.2 64.7 34.6% 43.2 121.3 49.7 83.3 82.8 104.1 17.8 52.0 FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 Revenue(Rs Cr.) % o
Slide 17: Revenue from Top 10 Chemistries
Revenue from Top 10 Chemistries Top 10 Product % Contribution to Revenue 57.3% 39.7% 28.2% 34.1% 47.49 41.30 32.60 28.80 FY21 FY22 FY23 FY24 Revenue (Rs Cr.) Top 10 Product % Contribution to Revenue Product Name End user Industry 2,3 Dichloro-1,4-Naphthoquinone (Dichlone) Agro Intermediates Chlorani
Slide 18: Present Across Geographies
Present Across Geographies Exports account for 38%* of Total revenue Total Revenue from Operations [Export] (Rs Cr.) 52.1 44.7 34.6 46.5 20.6 1.5% 3.6% 1.3% 6.3% 7.9% 3.5% 2.6% 3.1% 2.9% 4.9% 27.1% 35.3% 29.1% 58.3% 41.1% 66.1% 61.7% 59.9% 46.0% 36.5% FY21 FY22 FY23 FY24 H1FY25 India Asia Europe Nor
Slide 19: Strong Product Pipeline
Strong Product Pipeline Product Name Description Progress Technology Remarks Commercial started HALQUINOL- Feed Feed additive Chlorination Commercialised Grade o GMP application Expected Launch timeline: awaited HALQUINOL- Pharma Antibiotic Chlorination o 40-50% Q1FY25 enhancement in Price viz a viz
Slide 20: Levers of Future Growth
Levers of Future Growth In-house Capabilities Optimization: Operational Expansion: o Utilization of in-house capabilities for new o Increasing production capacity. product development. 01 o Efficient resource utilization. 04 o Meeting raw material requirements internally. o Utilization of IPO procee
Slide 21: Financial Overview
PARAGON FINE & SPECIALITY CHEMICALS Financial Overview
Slide 22: H1FY25 - Highlights
H1FY25 - Highlights Through 3 exhibitions in the past 6 Months across China, Mumbai & Germany, Paragon has seen a rise in customer visits. Over the past 6 months, we secured long term contracts with 2 global players in India and have 3 products in the pipeline for Long term contracts Revenue & EBITD
Slide 23: Action Plan Amid Challenges
Action Plan Amid Challenges Increased focus to drive business in Agro segment Short term action- commenced contract manufacturing of specialised products with MNCs Open up for CDMO and CRAMS model to attract stable business Expansion of manufacturing facility in terms of production by the end of Jun
Slide 24: Financial Highlights
Financial Highlights Revenue (Rs Cr.) EBITDA (Rs Cr.) & EBITDA Margin % PAT (Rs Cr.) & PAT Margin % 14% 16.3% 9.5% 11.8% FY24 121 19.8 14.3 14.6 9.9 104 FY23 FY24 FY23 FY24 FY23 FY24 15% 5% 10% 3% H1FY25 60 9 6 52 2 2 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 23
Slide 25: Income Statement
Income Statement Particulars (Rs Cr.) H1FY25 H1FY24 YoY FY24 FY23 YoY Net Revenue from Operations 51.98 60.15 -14% 121.3 104.1 17% COGS 38.19 44.93 -15% 83.7 72.3 16% Gross Profit 13.79 15.22 -9.4% 37.6 31.8 18% Gross Margin 26% 25% 31.0% 30.6% Employee Benefits Expense 3.13 2.14 46.3% 5.8 5.1 13% O
Slide 26: Balance Sheet
Balance Sheet Particulars (Rs Cr.) H1FY25 H1FY24 Particulars (Rs Cr.) H1FY25 H1FY24 Assets Equity and Liabilities Non‐Current Assets Shareholders funds Plant Property and Equipment 13.83 9.96 Share Capital 19.57 14.40 Reserves and Surplus 65.62 13.86 CWIP 2.14 Net Worth 85.19 28.26 Other Intangible
Slide 27: Balance Sheet
Balance Sheet Particulars (Rs Cr.) FY24 FY23 Particulars (Rs Cr.) FY24 FY23 Assets Equity and Liabilities Non‐Current Assets Shareholders funds Plant Property and Equipment 10.9 9.4 Share Capital 19.6 3.6 Reserves and Surplus 63.9 18.7 CWIP 0.6 Net Worth 83.5 22.3 Other Intangible Assets 0.0 0.0 Non
Slide 28: Cash Flow Statement
Cash Flow Statement Particulars (Rs Cr.) H1FY25 H1FY24 Operating cash flow Profit Before Tax 2.54 8.05 Interest Expense 0.16 0.64 Depreciation 0.51 0.43 Other non cash items (0.38) (0.007) Change in Working Capital Change in Inventory (5.49) (4.81) Change in Recievables 5.65 3.06 Change in Payables
Slide 29: Cash Flow Statement
Cash Flow Statement Particulars (Rs Cr.) FY24 FY23 Operating cash flow Profit Before Tax 19.3 13.6 Interest Expense 1.0 1.2 Depreciation 0.9 0.8 Other non cash items -0.6 0.0 Change in Working Capital Change in Inventory -9.3 -9.6 Change in Recievables 4.2 -3.4 Change in Payables and Other Liabiliti
Slide 30: Balance Sheet Ratios
Balance Sheet Ratios Gross Block(Rs Cr.) Net Debt / Equity Ratio (x) 16.8 13.8 14.4 2.6 10.8 1.6 1.1 -0.2 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Net Working Capital (Days) Net Worth (Rs Cr.) 42 27 44 18 83.5 130 143 113 116 103 93 85 79 81 61 22.3 6 31 8.0 12.4 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY
Slide 31: Annexure
PARAGON FINE & SPECIALITY CHEMICALS Annexure
Slide 32: Fully Equipped Manufacturing Facility
Fully Equipped Manufacturing Facility Our 7,000 square meter manufacturing facility in Viramgam, Ahmedabad, Gujarat, features two glass line assembly units and three reactors for batch reaction technology Major Machinery Installed Boiler Machine (Steam & Thermic GC Machine Heater) Digital Weighing S
Slide 33: In House Skill Development
In House Skill Development Team Composition: Comprises 14 technocrats with diverse educational backgrounds, including Bachelor of Science, Master of Science, Bachelor of Pharmacy, and Bachelor of Engineering degrees Skill Development: Prioritize in-house skill development through structured programs
Slide 34: Experienced Leadership
Experienced Leadership Dr. Pravinchandra Jasmat Dr.Rutesh V. Savalia Kishorkumar Panchabhai Vallabh Ratanji Savalia Shivam K. Patolia Vasolia Director Patolia Whole Time Director Director Chairman & Managing Age - 32 years Whole Time Director Age - 60 years Age - 24 years Director Education - Ph. D
Slide 35: Industry Tailwinds: Propelling Growth
Industry Tailwinds: Propelling Growth Indian Chemical Industry (USD Bn) Global and Regional Leadership o India holds a significant position in the global chemical industry, ranking as the 6th largest producer worldwide and the 3rd largest producer within Asia Growth Drivers: Indian Chemical Industry
Slide 36: PFSCL - Solutions Across Industries
PFSCL-Solutions Across Industries Specialty chemicals are segmented by end-user markets At Paragon we serve high growth Industries… Indian Agro Chemical Industry (Rs Bn) 4% 4% 3% 6% 7.4 6 4% 2021 2026 Indian Dye & Pigment Industry (Rs Bn) 22% 15.9 Agrochemical Construction Chemical Electronic Chemic
Slide 37: PFSCL - Driving Sustainable Excellence
PFSCL - Driving Sustainable Excellence Installed Membership comprehensive safety equipment o Fire Hydrants o Eco Care for Solid Waste Disposal Facility o Fire Extinguishers o Novel Spent Acid Management (discharging o Eye Shower 100 tons of acid per month) o Fire Balls o M/s A-One Green Enviro Proje
Slide 38: Thank You
THANK YOU Investor Relations Contact: Company Contact: Priya Sen Hashika Mutreja Nikita Hardik Rajpara Go India Advisors Go India Advisors cfo@paragonind.com priya@GoIndiaAdvisors.com hashika@GoIndiaAdvisors.com M:+91 9408559957 M:+91 8334841047 M:+91 9167753859
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