Aarti Industries Ltd · NSE:AARTIIND
Aarti Industries — Q4 FY22 Earnings Presentation
27 slides from Aarti Industries's earnings presentation, May 30, 2022
Slide 1: Cover letter to stock exchanges
May 30, 2022 To, Listing/ Compliance Department To, BSE LTD. Listing/Compliance Department Phiroze Jeejeebhoy Towers, National Stock Exchange of Dalal Street, India Limited Mumbai – 400 001. “Exchange Plaza”, Plot No. C/1, G Block Bandra - Kurla Complex, Bandra (E), Mumbai – 400 051. BSE CODE –52420
Slide 2: Q4 FY22 Results Presentation
Q4 FY22 Results Presentation
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Agenda
Agenda 01 02 03 Company Q4 & FY22 Growth Overview Financial Opportunity Results & Strategy 3
Slide 5: About Aarti Industries (AIL)
About Aarti Industries (AIL) Overview Key Metrics ▪ A leading Speciality Chemicals company in Benzene based derivatives with integrated operations and high level of cost optimization 200+ 400+ 700+ Products Global Customers Domestic ▪ Pharma operations spanning APIs, intermediates and Xanthene Custo
Slide 6: Agenda
Agenda 01 02 03 Company Q4 & FY22 Growth Overview Financial Opportunity Results & Strategy 5
Slide 7: Key Milestones/ Updates in FY22
Key Milestones/ Updates in FY22 • After conducting successful trial runs of the project INR 1,200 cr. INR 1,300+ cr. related to 2nd Long Term Contract, commercial Funds raised through QIP CAPEX entailed manufacturing has commenced in Q4 FY22 for growth initiatives • The expansion of the block at the
Slide 8: Q4 & FY22 – Financial Snapshot
Q4 & FY22 – Financial Snapshot INR 2018 50% INR 339 30% INR 231 34% INR 194 39% Q4 FY22 vs crore crore crore crore Q4 FY21 Revenues Revenues EBITDA Profit Before Tax Profit After Tax INR 7919 58% INR 1930 96% INR 1527 130% INR 1307 144% crore crore crore crore FY22 vs FY21 Revenues EBITDA Profit Bef
Slide 9: Performance Highlights – Q4 FY22
Performance Highlights – Q4 FY22 Revenues of Rs. 2018 crore; increase of 50% over previous year EBITDA of Rs. 339 crore; growth of 30% over previous year PAT of Rs. 194 crore; up by 39% over previous year ● Robust revenue momentum was supported by better realisations trends owing to Company’s abilit
Slide 10: Chairman’s Message
Chairman’s Message Commenting on the performance for Q4 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “We have concluded the financial year on a strong note by achieving the highest-ever EBITDA (even after netting of the termination income), with healthy accretion to pro
Slide 11: Q4 & FY22 – Consolidated P&L
Q4 & FY22 – Consolidated P&L Particulars (Rs. Crore) Q4 FY22 Q4 FY21 Y-o-Y (%) Q3 FY22 Q-o-Q (%) FY22 FY21 Y-o-Y (%) Gross Income from Operations 2018 1347 49.8% 2636 -23.5% 7919 5023 57.7% Exports (excl Termination Income) 751 546 37.5% 825 -9.0% 2965 2186 35.6% % of Total Income (excl Termination
Slide 12: Q4 & FY22 Highlights (Consolidated)
Q4 & FY22 Highlights (Consolidated) Revenues EBITDA & EBITDA Margin 58% 50% 7,919 30% 96% 7,288 24.4 19.6 19.3 18.1 5,023 16.8 2,018 1,347 260 339 982 1320 1930 Q4 FY21 Q4 FY22 FY21 FY22 FY22 Q4 FY21 Q4 FY22 FY21 FY22 FY22 Without With Without With termination termination termination termina
Slide 13: Quarterly trend EBITDA & PAT (Consolidated)
Quarterly trend EBITDA & PAT (Consolidated) EBITDA & EBITDA % 36.7 19.3 20.9 17.6 17.8 16.8 260 314 310 356 966 339 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY22 Q4 FY22 Without termination With termination PAT 772 165 176 194 139 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 12 Amount in INR (Cr); Margin in %
Slide 14: Speciality Chemicals - Revenue & EBIT
Speciality Chemicals - Revenue & EBIT Speciality Chemicals - Revenue 2,288 1,657 1,629 1,479 1,228 1,091 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY22 Q4 FY22 Without termination With termination Speciality Chemicals EBIT & EBIT % Income Income EBIT EBIT % 39.1 18.9 18.9 16.3 17.1 894 15.1 232 242 284 246
Slide 15: Q4 & FY22 Speciality Chemicals - Consolidated
Q4 & FY22 Speciality Chemicals - Consolidated ▪ For FY22, segment revenue Revenue Revenue includes long-term contract 1,629 49% 63% termination fees of Rs. 631 crore 5,988 6,619 and EBIT includes the impact of the 1,091 same of Rs. 610 crore 4,071 ▪ Continued Shortage of one of the key RM, Nitri
Slide 16: Pharma - Revenue & EBIT
Pharma - Revenue & EBIT Pharma - Revenue 388 348 276 283 256 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Pharma EBIT & EBIT % 20.0 18.8 17.2 17.3 14.7 60 67 51 52 41 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 EBIT EBIT % 15 Amount in INR (Cr); Margin in %
Slide 17: Q4 & FY22 Pharma - Consolidated
Q4 & FY22 Pharma - Consolidated Revenue Revenue 388 1,300 52% 37% 952 256 ▪ Robust growth in topline performance attributable to positive demand landscape for key products Q4 FY21 Q4 FY22 FY21 FY22 ▪ Inflation in input costs – Continuous efforts to pass on to EBIT EBIT the customers. 30% 67 21
Slide 18: Revenue Performance - Consolidated
Revenue Performance - Consolidated Consistent revenue Revenue Export China+1 strategy has momentum is a result of CAGR: 20% bolstered the exports favorable demand scenario 2,965 momentum both in Specialty and Company’s ability to Chemicals and Pharma. 2,186 7,919 Company continues to pass on sharp i
Slide 19: EBIT Performance - Consolidated
EBIT Performance - Consolidated Focus on value-added portfolio EBIT combined with operating leverage CAGR: 29% 1,834 gains has resulted in better profitability 932 952 957 663 FY18 FY19 FY20 FY21 FY22 Speciality Chemicals Pharmaceuticals CAGR: 29% 1,614 CAGR: 29% 211 220 137 819 814 113 581 746 79 F
Slide 20: Financials - Consolidated
Financials - Consolidated Robust Revenue Growth Strong EBITDA Growth Strong PAT Growth INR (Cr) INR (Cr) INR (Cr) 1,307 7,919 1,930 4,705 4,621 5,023 3,806 965 977 982 699 492 536 535 333 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Significant Capex Undertaken Strong R
Slide 21: Agenda
Agenda 01 02 03 Company Q4 & FY22 Growth Overview Financial Opportunity Results & Strategy 20
Slide 22: Key Strengths
Key Strengths Global Player in Benzene based Derivatives with Integrated Operations • Strong/Leadership position in key products and processes • Integrated operations across product chain of Benzene and Toluene • Ability to effectively use co-products and generate value-added products Well Diversifi
Slide 23: Major Projects: FY19 - FY23
Major Projects: FY19 - FY23 Operationalised by FY21 To be Completed by FY23 USFDA Capacities Expansion Operationalised New Chlorination underway: Expansion cum Asset Unit at Jhagadia. API unit at Tarapur & Intermediates Upgradation for Acid Unit at unit at Vapi Vapi Operationalized Phase 1 Unit at D
Slide 24: Future Growth Projects: FY23-24
Future Growth Projects: FY23-24 (Driven by R&D & Innovation) Introducing Chloro Toulenes Value Chain: (Range of Key Highlights products) ● Adding new chemistries and Value added products Newer range of o 40+ products for Chemicals Setting up Value Added o 50+ products for Pharma Universal products &
Slide 25: Growth Estimates
Growth Estimates Expecting Robust Growth fuelled with aggressive Capex Investment - Capex for FY 22-24: ~ Rs. 4,500-5,000 crore Turnover: 2.5x-3.5x EBIT: 3x - 4x PAT: 3x - 4x FY27 Growth Turnover: 1.7x -2.0x (over FY21) EBIT: 1.7x - 2.0x Turnover Rs. 7919 cr. PAT: 1.7x – 2.0x EBIT: Rs. 1834 crore FY
Slide 26: Contact Us
Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti-industries.com Nishid Solanki / Shruti Joshi CDR India Tel: +91 98203 68989 / +91 75065 67349 Email: nishid@cdr
Slide 27: Thank You
INDUSTRIES THANK YOU 4