Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q3 FY2023 Earnings Presentation
40 slides from Meghmani Organics's earnings presentation, Jan 23, 2023
Slide 1: Exchange filing cover letter: Revised Investor Presentation
Ref: MOL/2022-23/76 January 23, 2023 To National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 Dear Sir, Sub: - Revised Investor Presentation on Fina
Slide 2: Meghmani Organics Limited Investor Presentation - January 2023
Meghmani Organics Limited (MOL) (Erstwhile known as Meghmani Organochem Limited) Investor Presentation - January 2023
Slide 3: Content
CONTENT Evolution of Meghmani Organics over the years as a 03 Chemical Behemoth Remarkable scale & value in Agrochemicals; an industry 10 sensitive towards Agriculture 16 Quarterly Highlights 23 Financial Performance 28 Leadership and Management 34 Investment Rationale
Slide 4: Evolution of Meghmani Organics over the years as a Chemical Behemoth
Evolution of Meghmani Organics over the years as a Chemical Behemoth
Slide 5: Pigment Division Overview: Key Milestones
Pigment Division Overview: Key Milestones 1986 1996 2013 2021 Incorporated as a Pigment Diversification by setting up Setup Greenfield Pigment plant Acquisition of Kilburn Chemicals; foray into Manufacturer Greenfield Plant exclusively for Exports Titanium Dioxide (TiO2) Products Green & AZO Pigment
Slide 6: Pigments: Business Model & Performance
Pigments: Business Model & Performance Revenue from Operations (₹ Crore) & *Exports % Capacity (MTPA) & Utilization (%) 1,000 82% 900 79 % 81 % 77 % 78 % 756 Capacity Utilization 800 88% 700 605 641 90% 588 578 85% 600 8% CAGR 79% 77% 78% 76% 80% 500 FY18 to 75% 400 FY22 70% 300 65% 200 60% 32,940 3
Slide 7: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Foray into Titanium Dioxide (TiO2) / White Pigments By Acquiring Kilburn Chemicals Limited for ₹ 132 crore in December 2021 TiO2 Features It is the most widely used white pigment because of its brightness and its strong UV light absorbing capabilities. It
Slide 8: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Total Capex ₹ 600 crore* Installed Capacity 16,500 MTPA Phase I Commission in Q4FY23 ₹ 275 crore Funding: 70:30 mix As on 31 December 2022, approx. Installed Capacity ₹ 275 crore has been utilized 16,500 MTPA Phase II Commission in Q3FY24 ₹ 325 crore Meghm
Slide 9: Pigments: Rationale for Foraying into TiO2
Pigments: Rationale for Foraying into TiO2 HIGH ENTRY BARRIER Capital intensive project. IMPORT SUBSTITUTE Require expertise of handling Meghmani’s foray into TiO2 is to of bulk volume of Ilmenite & promote import substitution Sulphuric acid. thereby contributing to the government’s ‘Make in I
Slide 10: Industry Overview Of TiO2
Industry Overview Of TiO2 Global TiO2 Players Indian TiO2 Manufacturers 29% 50% 22% 17% 13% 22% 22% 10% 8% 6% Market Share (%) Market Share (%) Chemours Tronox, USA Lomon Billions, Venator Kronos, USA Others Kerala Minerals & Travancore Titanium V.V.Titanium Kolmark Chemicals, (Dupont) USA China Mat
Slide 11: Remarkable scale & value in Agrochemicals
Remarkable scale & value in Agrochemicals; an industry sensitive towards Agriculture
Slide 12: Agro Chemical Division Overview: Key Milestones
Agro Chemical Division Overview: Key Milestones R&D Center Acquired Agrochemical Commissioned new plant from Rallis Formulation plant Capacity (MTPA) 7,800 7,200 Plant Location Sanand Ankleshwar Dahej 1995 2003 2006 2016 2021 2021 GLP Accredited Lab Doubling 2,4-D Capex at the existing and expansion
Slide 13: Agro Chemical: Business Model & Performance
Agro Chemical: Business Model & Performance Revenue from Operations (₹ Crore) & Exports % Capacity (MTPA) & Utilization (%) 87% 2,100 74 % 79 % 79 % Capacity Utilization 67 % 1,738 78% 90% 76% 1,600 80% 66% 66% 1,045 8% CAGR 56% 70% 1,100 973 60% 791 FY18 to 642 50% FY22 600 40% 28,080 28,260 32,280
Slide 14: Agro Chemicals: MOL's Positioning in the Industry Landscape
Agro Chemicals: MOL's Positioning in the Industry Landscape Leading manufacturer of Pesticides with products across entire value chain Capability to develop newer molecules at competitive cost backed up by in-house product development efforts Integrated Agro Chemical manufacturer Well-recognized For
Slide 15: Agro Chemicals: Investing in the Next Phase of Growth
Agro Chemicals: Investing in the Next Phase of Growth Commissioned in Phase I Q3FY23 Total Capex ₹ 390 crore Phase II To be announced • The Multi purpose product (MPP) plant got commissioned in Q3FY23. • Installed capacity of 5,000 MTPA. • The plant is located in Dahej as part of backward integratio
Slide 16: Agro Chemicals: Industry Overview
Agro Chemicals: Industry Overview Global Crop Protection Market Region Wise Global Crop Protection Market • Global market is expected to garner revenue of ~USD 250-270 Bn by 2025 with a CAGR of 5.5-6%. FY20-FY25. 12.8% 39.6% • Major chemicals used in agriculture to regulate plant growth are syntheti
Slide 17: Quarterly Highlights
Quarterly Highlights
Slide 18: Q3 & 9MFY23 Results: Key Highlights (Standalone)
Q3 & 9MFY23 Results: Key Highlights (Standalone) During Q3FY23, the Indian chemical industry was impacted by global macro-economic factors including geopolitical concerns, inflationary pressure in major economies, rising raw material prices and supply chain disruption. Meghmani Organics revenues d
Slide 19: Q3 & 9MFY23 Results: Key Highlights (Standalone)
Q3 & 9MFY23 Results: Key Highlights (Standalone) Despite of the challenging global macro-environment, Meghmani Organics balance sheet continue to remain resilient demonstrating the management’s acumen towards risk management and financial prudence. The Company’s cash balance & short term investmen
Slide 20: Q3 & 9MFY23 Results: Key Highlights
Q3 & 9MFY23 Results: Key Highlights Q3 FY23 YoY Analysis ₹ in Crore Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 39.7% 36.7% 12.1% 11.1% 10.6% 639 554 77 68 61 3.2% 18 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 9M FY23 YoY Analysis Revenues & Gross Margin EBITDA & EBITDA Marg
Slide 21: Q3 & 9MFY23 Results: Agrochemicals Business
Q3 & 9MFY23 Results: Agrochemicals Business Q3 FY23 YoY Analysis ₹ in Crore Production & Utilisation (%) Net Revenue (₹ Cr) & Exports* EBITDA (₹ Cr) & Margin (%) 91 % 92 % 74% 72% 19.2% 17.7% 9,428 9,424 438 446 86 77 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 9M FY23 YoY Analysis Production &
Slide 22: Q3 & 9MFY23 Results: Pigment Business
Q3 & 9MFY23 Results: Pigment Business Q3 FY23 YoY Analysis ₹ in Crore Production & Utilisation (%) Net Revenue (₹ Cr) & Exports* EBITDA (₹ Cr) & Margin (%) 88% 82 % 80 % 31% 7,281 202 4.9% (14.3%) 107 2,523 10 (15) Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 9M FY23 YoY Analysis Production & Uti
Slide 23: P&L Statement
P&L Statement Particulars (₹ in Crore) Q3 FY23 Q3 FY22 YoY% 9M FY23 9M FY22 YoY% FY22 Revenue from Operations 554 639 (13.4%) 1,992 1,681 18.5% 2,494 COGS 350 386 (9.2%) 1,187 974 21.8% 1,454 Gross Profit 203 254 (19.7%) 805 706 14.0% 1,040 Gross Margins % 36.7% 39.7% (292 bps) 40.4% 42.0% (162 bps)
Slide 24: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Dec 22 Mar 22 Particulars (₹ in Crore) Dec 22 Mar 22 Equity & Liabilities Assets Share Capital 25 25 Property, Plant & Equipment 717 732 Reserves & Surplus 1,585 1,415 Capital WIP 416 179 Shareholder's Funds 1,610 1,440 Intangible Assets 12 11 Financial Assets
Slide 25: Financial Performance
Financial Performance o
Slide 26: Standalone Financial Performance
Standalone Financial Performance ₹ in Crore Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 19% * CAGR 22% * CAGR 41% 16.5% 17.2% 12.3% 15.2% 12.0% 11.9% 11.4% 42.5% 44.7% 14.5% 14.1% 42.1% 41.7% 40.4% 13.6% 10.3% 38.0% 308 379 2,494 1,992 280 280 6.2% 232 236 192 185 205 1,62
Slide 27: Focus on Creating Shareholders Wealth
Focus on Creating Shareholders Wealth CAPITAL EMPLOYED (IN ₹ Crore) & RoCE (%) NET WORTH (IN ₹ Crore) & RoE (%) 4,00 0 40. 0% 3,00 0 40. 0% 3,50 0 16.3% 15.6% 17.1% 19.0% 22.0% 21.1% 23.6% 12.2% 14.6% 17.2% 17.9% 11.6% 20. 0% 20. 0% 2,50 0 3,00 0 0.0 % 0.0 % 2,50 0 2,00 0 -20.0% -20.0% 2,00 0 1,50 0
Slide 28: Comfortable Debt Position & Prudent Working Capital Cycle
Comfortable Debt Position & Prudent Working Capital Cycle 0.43 0.60 0.39 0.27 0.22 0.34 112 115 113 106 92 1,610 76 1,440 698 1,167 838 991 417 327 494 691 89 65 48 85 77 50 92 74 51 92 81 60 69 73 67 74 86 68 264 262 FY18 FY19 FY20 FY21 FY22 9MFY23 FY18 FY19 FY20 FY21 FY22 9MFY23 Debt Networth Debt
Slide 29: To Summarize the Financial Performance
To Summarize the Financial Performance 1 4 EBDITA above industry average in 01 both AgroChem and Pigments 04 Consistently paying dividend. 202 505 Consistently Improving debt to ROCE above 15.5%+ for last 3 years. equity. D/E of less than 0.5 in past Endeavour is to improve RoCE. 3 years. 3 6 Consis
Slide 30: Leadership and Management
Leadership and Management o
Slide 31: Leadership and Management: Founders
Leadership and Management : Founders Mr. Jayanti Patel Executive Chairman • 47 yrs of experience • Overseas international marketing • B.E (Chemical) Mr. Natwarlal Patel Mr. Ashish Soparkar Managing Director Managing Director • 45 yrs of experience • 46 yrs of experience • Overseas technical matters
Slide 32: Leadership and Management: Independent Board
Leadership and Management : Independent Board Mr. Manubhai K. Patel Prof. (Dr.) Ganapati Yadav Chartered Accountants with more than 37 years of experience in the Padmashri Awardee, by President of India, retired Vice Chancellor of the field of Forex, Treasury and Credit Management. He is on board of
Slide 33: Leadership and Management: Second Generation
Leadership and Management : Second Generation Mr. Ankit Patel Mr. Darshan Patel CEO (MOL) COO (Pigments) MOL • More than 12 yrs of experience • More than 10 yrs of experience • Executive Director at MFL • Executive Director at MFL • M.S. (Engg Management) from Australia • Heads Pigments & MBA from S
Slide 34: Group's Core Values and Corporate Vision
Group’s Core Values Integrity Environment, Credibility Law abiding Being Human The Company will make The Company respects The Company abides by The Company will maintain Health and Safety efforts towards building a and ensures compliances the principle of humanity complete honesty and The Company is
Slide 35: From the Desk of the Chairman – The growth is inevitable
From the Desk of the Chairman – The growth is inevitable Good and transparent business practices. “We are committed to follow good and transparent business practices. These Ethical Values shall be the base and the backbone for all our endeavors to achieve our ‘Corporate Vision’. Committed to Core Bu
Slide 36: Investment Rationale
Investment Rationale o
Slide 37: Why Meghmani Organics
Why Meghmani Organics Understands Chemicals since 1986, Established Market Position along with management expertise across Pigments, Agro Chemicals and Basic Chemicals • largest producer of copper phthalocyanine (CPC) blue and is among the top 3 pigment blue players globally • largest, Integrated ma
Slide 38: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- DECEMBER 2022 (IN %) NSE Ticker MOL BSE Ticker MOL | 543331 Share Price (₹)^ 105.9 Market Cap (₹ Crore)^ 2,692 PROMOTER 49.37% % Free Float^ 50.63 FIIs 1.66% Free float market cap (₹ Crore)^ 1,396 DIIs 0.10% Shares outstanding^ 25.4 Crores Public 48.87%
Slide 39: Safe Harbor
Safe Harbor This presentation has been prepared by Meghmani Organics Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information
Slide 40: Meghmani Organics Ltd Registered & Corporate Office, Investor Relations
MEGHMANI ORGANICS LTD (CIN: L24299GJ2019PLC110321) REGISTERED & CORPORATE OFFICE: 1st to 3rd Floor, Near Safal, Profitaire, Prahlad Nagar, Satellite, Ahmedabad, Gujarat, 380015 Tel: +91 79 71761000 www.meghmani.com INVESTOR RELATIONS BHARAT MODY | IR ADVISOR E: bharat.mody@meghmani.com G.S.Chahal |