Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q3 FY2024 Earnings Presentation
43 slides from Meghmani Organics's earnings presentation, Jan 30, 2024
Slide 1: Cover letter to stock exchanges
Ref: MOL/2023-24/89 January 30, 2024 To, To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Bandra-Kurla Complex, Floor- 25, P J Tower, Bandra (East) Dalal Street, Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 Dear Sir, Sub: - Investor Presentation on Financi
Slide 2: Meghmani Organics Limited Investor Presentation - January 2024
Meghmani Organics Limited (MOL) Investor Presentation - January 2024
Slide 3: Content
CONTENT 03 MOL at a Glance 07 Crop Protection 13 Crop Nutrition 15 Pigments 22 Quarterly Highlights 29 Historical Financial Performance 34 Leadership and Management 38 Investment Rationale
Slide 4: MOL at a Glance
MOL at a Glance Crop Crop Pigments Protection Nutrition
Slide 5: An Integrated diversified Chemical Company with Global Footprint
An Integrated diversified Chemical Company with Global Footprint 35+ Years 9 3rd Largest #1 Of chemical industry Integrated manufacturing Producer of copper Ranked by Fortune India under experience facilities phthalocyanine based blue Fortune Next 500 Company pigments globally 75+ 3,500+ Responsible
Slide 6: Niche Product Portfolio with High Growth Potential
Niche Product Portfolio with High Growth Potential Crop Protection Crop Nutrition Pigments Titanium Dioxide (TiO2) (Existing Business) (New Business) (Existing Business) (New Business) Manufacturing products across the Forayed to manufacture Nano Urea One of the top three global capacity Diversifyin
Slide 7: Strategy for Next Phase of Growth
Strategy for Next Phase of Growth Crop Protection Crop Nutrition Pigments Multi purpose product (MPP) Nano Urea(1) Titanium Dioxide (TiO2)(3) plant CAPEX ₹ 390 crore ₹ 150 crore ₹ 390 crore Commissioned in To be commissioned by Phase I commissioned in Status Q3 FY23 Q4 FY24(2) Q4 FY23(4) 16,500 MTPA
Slide 8: Crop Protection
Crop Protection Insecticides Herbicides Intermediates
Slide 9: Crop Protection: Key Milestones
Crop Protection: Key Milestones Capacity (MTPA) 7,800 7,200 10,800 Plant Location Sanand Ankleshwar Panoli Dahej First Agrochemical Acquired Agrochemical Commissioned new Commissioned 2,4-D Plant plant Formulation plant plant 1995 2003 2006 2010 2016 2021 2021 2023 GLP Accredited Lab Doubling 2,4-D
Slide 10: Crop Protection: Business Performance
Crop Protection: Business Performance Revenue from Operations (₹ Crore) & Exports % Capacity (MTPA) & Utilisation (%) 89% 87 % 2,100 79 % 79 % 1,940 Capacity Utilization 74 % 1,738 76% 78% 75% 1,600 66% 80% 56% 1,045 25% CAGR 60% 1,100 973 791 FY19 to 40% FY23 600 20% 28,260 32,280 36,825 51,060 53,
Slide 11: Crop Protection: MOL's Positioning in the Industry Landscape
Crop Protection: 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 Crop Protection manufacturer Well-recognized
Slide 12: Crop Protection: Investing in the Next Phase of Growth
Crop Protection: Investing in the Next Phase of Growth Multi purpose product (MPP) plant got commissioned in Q3FY23 Total Capex of ₹ 390 crore • Installed capacity of 5,000 MTPA. • The plant is located in Dahej as part of backward integration • Will manufacture high value new-age insecticides. • Maj
Slide 13: Crop Protection: Industry Overview
Crop Protection: 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 synthet
Slide 14: Crop Nutrition
Crop Nutrition Nano Urea
Slide 15: First private player to foray into Nano Urea (Liquid) Fertilizer Manufacturing
First private player to foray into Nano Urea (Liquid) Fertilizer Manufacturing About Nano Urea Nutrient (liquid) to provide nitrogen to plants as an alternative to the conventional urea DEVELOPED AT It is being developed at Sanand, Gujarat Developed to replace conventional urea and it can curtail
Slide 16: Pigments
Pigments High Titanium Phthalocyanine Azo Performance Dioxide Pigments Pigments Pigments (TiO2)
Slide 17: Pigments: Key Milestones
Pigments: 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 Pigments CPC Blue, Alpha
Slide 18: Pigments: Business Performance
Pigments: Business Performance Revenue from Operations (₹ Crore) & *Exports % Capacity (MTPA) & Utilisation (%) 1,000 900 82 % 83% 81 % 78 % 800 77 % 756 Capacity Utilization 641 88% 700 605 617 77% 78% 76% 578 600 80% 60% 500 60% 400 40% 300 200 20% 32,940 33,180 33,180 33,180 33,180 100 0% FY19 FY
Slide 19: 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 (KCL) 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 capabilitie
Slide 20: Pigments: Investing in Next Phase of Growth (Capex)
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 2023, approx. Installed Capacity ₹ 264 crore has been utilised 16,500 MTPA Phase II To be considered after stabilization o
Slide 21: 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 22: Industry Overview Of TiO2
Industry Overview Of TiO2 Global TiO2 Players Indian TiO2 Manufacturers 29% 50% 22% 17% 13% 22% 22% 10% 8% Market Share (%) Domestic Capacity (%) Chemours Tronox, USA Lomon Billions, Venator Kronos, USA Others Kerala Minerals & Metals Travancore Titanium Products V.V.Titanium Pigments, TN (Dupont) U
Slide 23: Quarterly Highlights
Quarterly Highlights
Slide 24: Q3 FY24 Results: Key Highlights (Standalone)
Q3 FY24 Results: Key Highlights (Standalone) Business Operations Financial Performance CAPEX Updates • Crop Protection Revenues and EBITDA stood at ₹ 345 crore and • Crop Nutrition ₹ (0.4) crore respectively during the quarter, Production during Q3 FY24 stood at 9,583 MT Meghmani Crop Nutrition Limi
Slide 25: Q3 & 9M FY24 Results: Key Highlights (Standalone)
Q3 & 9M FY24 Results: Key Highlights (Standalone) Q3 FY24 YoY Analysis ₹ in Crore Revenues & Gross Margin EBITDA Profit after tax 554 345 61 18 (27) 36.7% 34.7% (0.36) Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 9M FY24 YoY Analysis Revenues & Gross Margin EBITDA Profit after tax 1,992 280 205 1
Slide 26: Q3 & 9M FY24 Results: Crop Protection
Q3 & 9M FY24 Results: Crop Protection Q3 FY24 YoY Analysis ₹ in Crore Production (MT) & Utilisation (%) Net Revenue & Exports (%) EBITDA & EBITDA Margin (%) 9,424 9,583 446 86 239 5 71% 70% 92% 87% 19.2% 2.1% Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 9M FY24 YoY Analysis Production (MT) & Util
Slide 27: Q3 & 9M FY24 Results: Pigments
Q3 & 9M FY24 Results: Pigments Q3 FY24 YoY Analysis ₹ in Crore Production (MT) & Utilisation (%) Net Revenue & Exports (%) EBITDA & EBITDA Margin (%) 3,286 2,523 107 105 0.9 (15.4) 31% 40% 80% 78% 0.80% (14.30%) Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 9M FY24 YoY Analysis Production (MT) & U
Slide 28: P&L Statement
P&L Statement Particulars (₹ in Crore) Q3 FY24 Q3 FY23 YoY% 9M FY24 9M FY23 YoY% Revenue from Operations 345 554 (38%) 1,140 1,992 (43%) COGS 225 350 (36%) 760 1,187 (36%) Gross Profit 120 203 (41%) 380 805 (53%) Gross Margins % 34.7% 36.7% 33.4% 40.4% Employee Expenses 24 25 (6%) 76 92 (17%) Other
Slide 29: Balance Sheet
Balance Sheet Particulars (₹ in Crore) 9M FY24 FY23 Particulars (₹ in Crore) 9M FY24 FY23 Equity & Liabilities Assets Share Capital 25 25 Property, Plant & Equipment 956 997 Reserves & Surplus 1,540 1,631 Capital WIP 139 135 Shareholder's Funds 1,565 1,656 Intangible Assets 13 12 Financial Assets 13
Slide 30: Historical Financial Performance
Historical Financial Performance
Slide 31: Standalone Annualized Financial Performance
Standalone Annualized Financial Performance ₹ in Crore Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 15% * CAGR 16% * CAGR 27% 16.5% 17.2% 12.3% 15.2% 12.0% 11.9% 11.4% 42.5% 44.7% 14.5% 14.2% 41.7% 40.7% 9.8% 38.0% 308 379 364 2,494 2,557 280 250 232 236 192 185 1,625 1,623
Slide 32: 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% 13.8% 20. 0% 17.2% 16.2% 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 -40.0% -40.
Slide 33: Comfortable Debt Position & Prudent Working Capital Cycle
Comfortable Debt Position & Prudent Working Capital Cycle 0.42 0.39 0.27 0.22 0.34 112 115 113 94 1,656 76 1,440 991 1,167 838 327 494 693 85 77 50 92 74 51 92 81 60 69 73 67 77 89 72 264 262 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Debt Networth Debt-Equity (x) Receivable Days Inventory Da
Slide 34: To Summarize the Financial Performance
To Summarize the Financial Performance 1 4 EBDITA above industry average in both Crop Protection and Pigments Consistently paying dividend. 2 5 Consistently Improving debt to ROCE above 13.5%+ for last 3 years. equity. D/E of less than 0.5 in past Endeavour is to improve RoCE. 3 years. 3 6 Consisten
Slide 35: Leadership and Management
Leadership and Management
Slide 36: Leadership and Management: Board of Directors
Leadership and Management: Board of Directors Mr. Ankit Patel Mr. Karana Patel Mr. Darshan Patel Chairman & Managing Director Executive Director Executive Director Mr. Ankit Patel, a dynamic and seasoned leader, brings an Mr. Karana Patel, a visionary leader with over a decade and a Mr. Darshan Pate
Slide 37: Leadership and Management: Board of Directors
Leadership and Management: Board of Directors Mr. Maulik Patel Mr. Kaushal Soparkar Mr. Manubhai K. Patel Prof. (Dr.) Ganapati Yadav Non-Executive Director Non-Executive Director Independent Director Independent Director More than 16 years of experience in the chemical More than 15 years of experien
Slide 38: Group's Core Values and The 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 39: Investment Rationale
Investment Rationale
Slide 40: Why Meghmani Organics
Why Meghmani Organics Understands Chemicals since 1986, Established Market Position along with management expertise across Pigments, Crop Protection and Basic Chemicals • largest producer of copper phthalocyanine (CPC) blue and is among the top 3 pigment blue players globally • leading, Integrated m
Slide 41: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN - December 2023 (IN %) NSE Ticker MOL BSE Ticker MOL | 543331 Share Price (₹)^ 77.80 Market Cap (₹ Crore)^ 1,979 PROMOTER 49.32% % Free Float^ 50.68 FIIs 1.30% Free float market cap (₹ Crore)^ 1,003 DIIs 0.52% Shares outstanding^ 25.4 Crores Public 48.86%
Slide 42: 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 43: Meghmani Organics Ltd Registered & Corporate Office, Investor Relations
MEGHMANI ORGANICS LTD (CIN: L24299GJ2019PLC110321) REGISTERED & CORPORATE OFFICE: ‘Meghmani House’, Behind Safal Profitaire, Prahlad Nagar, Ahmedabad, Gujarat, 380015 Tel: +91 79 71761000 www.meghmani.com INVESTOR RELATIONS G.S.Chahal | CHIEF FINANCIAL OFFICER E: ir@meghmani.com Nishant Vyas | INVES