Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q3 FY21 Earnings Presentation
28 slides from Sudarshan Chemical Industries's earnings presentation, Jan 29, 2021
Slide 1: Investor Presentation Q3 FY21
Investor Presentation Q3 FY21
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward‐looking statements • These forward‐looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: Financial Overview
~~ FINANCIAL OVERVIEW SUDARSHAN
Slide 4: Q3FY21 Performance Highlights - Consolidated Financials
Q3FY21 Performance Highlights ‐ Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) EBITDA 80 506 Business coming back to normalcy as 68 the demand picks up in domestic 424 429 63 market supported by steady demand from export markets Production has returned to pr
Slide 5: 9MFY21 Performance Highlights - Consolidated Financials
9MFY21 Performance Highlights ‐ Consolidated Financials Income from f Operations i ( ₹ Cr)) (In EBITDA* (In (I ₹ Cr C & Margin%) M i %) 200 Nine‐month performance impacted by 1,288 192 1,259 start stop nature of operations in Q1, Q2 because of hurdles created by pandemic Strong growth in Q3 with
Slide 6: Q3FY21 and 9MFY21 Performance Highlights - Pigment Business
Q3FY21 and 9MFY21 Performance Highlights ‐ Pigment Business Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) 477 78 391 402 66 Quaarterly 58 Strong growth led by domestic demand, demand 14.9% 16.3% 16.3% also supported by growth in export market Speciality portfolio continues to see
Slide 7: Margin Performance - Consolidated Financials
Margin Performance ‐ Consolidated Financials Gross Margin EBITDA Margin g 43.0% 44.1% 44.0% 44.2% 42.8% 15.8% 15.7% uarterly 14.9% 15.0% 12.0% Qu Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 42.4% 43.6% 15.3% 15.6% onths Nine Mo 9MFY20 9MFY21 9MFY20 9MFY21 Financial results
Slide 8: Key Ratios - Consolidated Financials
Key Ratios - Consolidated Financials Return on Capital Employed Current Ratio 1.4 1.2 1.2 14.6% 15.9% 13.3% FY19 FY20 9MFY21 FY19 FY20 9MFY21 Debt to Equity Ratio Earnings per Share* 0.9 0.8 0.7 15 7 15.7 11.7 13.3 FY19 FY20 9MFY21 FY19 FY20 9MFY21 * Earnings per share calculated excluding exception
Slide 9: Outlook
Outlook • Demand environment to remain robust in the coming quarter as India and the world economies return to normalcy; We will continue to monitor impact if any due to second wave of Covid‐19 in Europe • Operations have reverted to normalised levels, focus on continuing to have uninterrupted opera
Slide 10: About Sudarshan
ABOUT SUDARSHAN
Slide 11: Our Company at Glance
Our Company at Glance We are a leading world‐class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC INFRASTRUCTURE REVENUES REACH 2 Manufacturing plants $223 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 12: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color l Solution l provider d three h pigment players l Commitment and d with an innovative and in the wor
Slide 13: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 14: Our Governance Structure - Board Of Directors
Our Governance Structure ‐ Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani Mr. D. N. Damania (Non Executive, (Non‐ Executive (Non‐Executive (Non‐Executiv
Slide 15: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Sudarshan North Americas Inc. Limited CHINA EUROPE Sudarshan (Shanghai) ( g ) Trading g Co MEXICO Sudarshan Europe B.V. JAPAN Ltd. Sudarshan Mexico S. de R.L de Sudars
Slide 16: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made upp of mineral compounds. p Are mainlyy oxides,, Inorganic Pigments Cadmiums sulphi
Slide 17: Pigments Application - a global $8.6bn market opportunity
Pigments Application ‐ a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 18: The Pigment Approval Cycle
The Pigment Approval Cycle A Approval l cycle l ffor pigment i sales l varies i across products d and d SSudarshan d h Ch Chemicals i l iis wellll placed l d iin this hi regard d COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focu
Slide 19: Our Unmatched Technical Capability
Our Unmatched Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical y & Application pp Lab experts p INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and com
Slide 20: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 21: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* Market ‐ Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B market 10B, k t opportunities t iti open to t Sudarshan S d h are ~$ $88.6B. 6B o Global Organic Pigment market is expected to grow at
Slide 22: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio • Enhance Product Portfolio across 01 • • • • Organic (especially HPPs and Inks) I Inorganic i HPP HPPs Effect Pigments Solvent Dyes Application Focu
Slide 23: Building Capabilities
Building Capabilities W focus We f on b building ildi capabilities biliti across ffunctions ti tto achieve hi our vision ii STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERICAL EXCELLENCE ENVIORNMEMNT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel
Slide 24: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 25: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “S “SUDHA” ” (Sudarshan’s (S d h ’ Holistic li i Aspiration) i i ) O EHSS initiatives Our i ii i Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood in
Slide 26: Shareholder Information
Shareholder Information Share Information (as at 31st December 2020) Shareholding Pattern (as at 31st December 2020) Promoters 40.03% NSE Ticker SUDARSCHEM FIIs and FPIs 9.30% BSE Ticker k 506655 M t al FFunds Mutual nds 5 04% 5.04% Others 45.63% Market Cap (INR mn) 33,181 % free‐float 59.97% Sudars
Slide 27: Awards And Accolades
Awards And Accolades ‘Dream Company to Work For’ in Global CSR Award 2020 HR Excellence Award 2018 Chemical Sector Platinum Category 1st in Chemicals & Fertilizer Sector World HRD Congress 2017 Global WasteMet Award 2018 DMAI Award for Energy India CSR Award for CSR ‐ Gold Category Conservation Init
Slide 28: Thank You
THANK YOU Investor Relations Team at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162 Wellesley Road, Pune, Maharashtra ‐ 411001 28
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