Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Q3 FY2023 Earnings Presentation
19 slides from Epigral's earnings presentation, Jan 19, 2023
Slide 1: Exchange filing cover letter for Q3 FY23 earnings presentation
19.01.2023 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 SCRIP CODE: MFL SCRIP CODE: 543332 Dear Sir/s Sub:- Q3 FY23 Earnings Presentation. Ref.: - Regulation 30 of SEBI
Slide 2: Meghmani Finechem Limited Q3FY23 Earnings Presentation
Meghmani Finechem Limited Q3FY23 Earnings Presentation 19th January, 2023
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: Company Overview
Company Overview Founded: 32% 29% 2007 5 Year Revenue CAGR (FY22) 5 Year EBITDA CAGR (FY22) Employees: 900+ 1.3x 29% Debt to Equity (FY22) ROCE (FY22) Capacity: Chlor-Alkali# – 421 KTPA 5,000 Derivatives# – 190 KTPA Revenue from operations (₹ Cr) 1551 Certified: Responsible Care Certificate 829 710
Slide 5: Key Highlights – Strategic Update
Key Highlights – Strategic Update Expansion MFL is expanding its CPVC Resin capacity to 75,000 TPA by adding further 45,000 TPA. The estimated capex for the project will be ₹ 250 Cr and it is expected to get commissioned by Q4FY24 Maiden Interim MFL board has declared its 1st maiden interim dividend
Slide 6: Key Highlights – Financial and Operational
Key Highlights – Financial and Operational Q3FY23 Operational Highlights (YoY): o 18% volume growth on YoY basis from all the products in Q3FY23 o Caustic Soda & Caustic Potash ECU realization was up 2% & 40% respectively o CMS sales realization was down 33% and H2O2 sales realization was up 9% Q3FY
Slide 7: CMD Message
CMD Message “We have witnessed 18% volume growth in Q3FY23 resulting in Revenue growth of 27% YoY. Even in this volatile market, we have seen volume growth in all our products and have grown on absolute basis. The new products that we commissioned in 9MFY23 have marginally started contributing to P&
Slide 8: Q3FY23 Financial Highlights
Q3FY23 Financial Highlights 170 850 Revenue 300 EBITDA 45% PAT 750 40% 150 20% 50% 250 650 43% 31% 35% 130 17% 46% 538 40% 200 33% 30% 110 14% 550 167 15% 422 25% 450 150 141 90 77 30% 20% 70 350 70 10% 100 15% 250 20% 50 10% 150 50 30 5% 10% 5% 50 10 - 0% -50 0% Q3FY22 Q3FY23 -10 Q3FY22 Q3FY23 0% Q
Slide 9: 9MFY23 Financial Highlights
9MFY23 Financial Highlights 2,700 800 600 25% Revenue EBITDA 40% PAT 46% 50% 700 33% 2,200 45% 45% 33% 32% 35% 500 20% 600 17% 1,626 509 534 30% 16% 1,700 1,551 40% 400 15% 500 15% 25% 30% 400 300 277 1,200 1,052 334 20% 253 10% 300 15% 20% 200 154 700 200 10% 5% 100 200 10% 100 5% FY22 9MFY22 9MFY2
Slide 10: Key ratios as on 31st December 2022
Key ratios as on 31st December 2022 ROCE (%) ROE (%) Net Debt/EBITDA (x) 35% 46% 29% 2.4 36% 24% 1.9 29% 1.3 FY22 Q3FY22 Q3FY23 FY22 Q3FY22 Q3FY23 FY22 Q3FY22 Q3FY23 TTM EBIT, PAT and EBITDA are considered for above ratios o ROCE and ROE improved to 35% and 46% respectively on account of higher real
Slide 11: Revenue Break-up – Diversified Business Model
Revenue Break-up – Diversified Business Model 25% 25% 31% FY22 Q3FY22 Q3FY23 ₹ 1,551 Cr ₹ 422 Cr ₹ 538 Cr 69% 75% 75% Chlor-Alkali Derivatives Chlor-Alkali Derivatives Chlor-Alkali Derivatives & Specialty Chemicals 10 | MEGHMANI FINECHEM LIMITED
Slide 12: Operational Overview (Production and Utilization)
Operational Overview (Production - KTPA and Utilization - %) Chlor-Alkali Chloromethanes Hydrogen Peroxide 100 100% 85% 17 110% 17 97% 100% 90 90% 79% 90% 80 80% 104% 100% 82% 15 94% 104% 15 68% 80% 70 70% 90% 13 13 67% 70% 60 60% 80% 60% 50 50% 11 11 40 40% 70% 50% 70 15 62 67 30 30% 9 13 13 9 40%
Slide 13: Operational Overview – Realisations
Operational Overview – Realisations Q3FY23 - Change in ECU and Sales Realization % YoY Caustic Soda ECU Realization 40% 51,330 9% 49,336 2% 48,041 46,614 45,852 -33% Caustic Soda - ECU Caustic Potash - ECU Chloromethanes Hydrogen Peroxide Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 o On a YoY basis ECU reali
Slide 14: Project Update as on 31st December 2022
Project Update as on 31st December 2022 Expected % of project Capex Spends - ₹ Cr Product Capacity Commissioning completed Date Commissioned Epichlorohydrin 50 KTPA Q1FY23 1st June 2022 69 Commissioned CPVC Resin 30 KTPA Q2FY23 18th July 2022 Caustic Soda Commissioned 449 106 KTPA Q2FY23 with CPP 30
Slide 15: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Entered in JV to set up 18.34 MW W
Slide 16: Income Statement
Income Statement Particulars (₹ Cr) Q3FY22 Q3FY23 % Change 9MFY22 9MFY23 % Change Revenue from Operations 422 538 27% 1,052 1,626 55% Gross Profit* 192 231 20% 472 727 54% Gross Margin (%) 46% 43% 45% 45% Operating EBITDA 141 167 18% 334 534 60% EBITDA Margin (%) 33% 31% 32% 33% Depreciation 22 31 4
Slide 17: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY17 FY18 FY19 FY20 FY21 FY22 Total Revenue 393 602 720 613 831 1,555 Gross Profit* 199 335 431 300 407 716 Gross Margin (%) 51% 56% 61% 49% 49% 46% EBITDA 144 255 312 194 261 510 EBITDA Margin (%) 37% 43% 44% 32% 32% 33% Depreciation 55 55 54 44 74 86 Fi
Slide 18: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY21 FY22 H1FY23 Liabilities (₹ Cr) FY21 FY22 H1FY23 Fixed Assets 1,228 1,657 1,890 Share Capital 42 42 42 Financial Assets 10 8 8 Reserves & Surplus 643 684 884 Other Non-current Assets 29 11 13 Long-Term Borrowings 340 557 487 Inventories 54 154 266 Redeemable
Slide 19: About Us & Investor Contact
About Us & Investor Contact Meghmani Finechem Limited (“MFL”), incorporated in 2007, is a leading integrated manufacturer of chemicals in India. The company has state of the art manufacturing facilities in Gujarat, Dahej – a leading PCPIR region in the country. MFL’s Dahej facility is a backward and