Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q1 FY2024 Earnings Presentation
33 slides from Himadri Speciality Chemical's earnings presentation, Jul 18, 2023
Slide 1: Stock exchange covering letter
Ref. No: HSCL/ Stock-Ex/2023-24/49 Date: 18/07/2023 E-mail: monika@himadri.com Ref: Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25th Floor, Bandra Kurla Complex, Dalal Street
Slide 2: Transformation Unfolds.. Investor Presentation July 2023
TRANSFORMATION UNFOLDS.. Sustainable High Growth Capital Disciplined Business Opportunity Balance Sheet Investor Presentation | July 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Another quarter of Sustainable Performance..
Another quarter of Sustainable Performance.. Strong Performance in Q1FY24 with 1 - positive performance outlook for FY24 2 - Strengthening of Balance Sheet Future Potential – New Energy Materials & 3 - LiB Recycling Investment in Sicona specialising in next 4 - gen technology for silicon anode mater
Slide 5: Another Quarter of Strong Performance
1. Another Quarter of Strong Performance Revenues in Q1FY24 Increase in EBITDA Increase in PAT Revenues decreased by EBITDA increased by PAT increased by 9% to Rs. 951 Crores in 54% to Rs. 131 Crores 125% to Rs. 88 Q1FY24 in Q1FY24 Crores in Q1FY24 Sales Volume consistent above 95,000 MT in la
Slide 6: Strengthening of Balance Sheet
2. Strengthening of Balance Sheet Gross Debt (Rs. In Crs) Net Debt (Rs. In Crs) 836 11 583 Reduced 315 200 215 143 Mar-21 Mar-22 Mar-23 Jun-23 682 Reduced Net Debt to EBITDA 4.57x Borrowings Long WC Borrowings 1.95x - March 23 Term Debt Borrowing - June 23 0.49x 0.47x Mar-21 Mar-22 Mar-23 Jun-23
Slide 7: Future Potential – New Energy Materials & LiB Recycling
3. Future Potential – New Energy Materials & LiB Recycling LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobility Stat
Slide 8: Future Potential – New Energy Materials & LiB Recycling (Recycling)
3. Future Potential – New Energy Materials & LiB Recycling LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO2 emission The Global Availability of EV batt
Slide 9: An initiative in line with long term strategy: Investment in Sicona
4. An initiative in line with long term strategy Why Sicona Investment • Sicona’s current generation silicon-composite anode technology delivers 50% to 100% higher capacity than conventional graphite anodes Sicona is an innovative Australian • Its anode materials can deliver more than 50% higher cel
Slide 10: Outcome of strengthening Balance Sheet
5. Outcome of strengthening Balance Sheet Rating outlook revised to Positive from Stable Rs. 455.86 Crs Rs. 1360 Crs Rs. 300 Crs Fund based + Non fund Fund Based Commercial Paper based ICRA A+ (Positive) ICRA A+ (Positive)/ ICRA A1 ICRA A1 (ICRA A plus ; (ICRA A plus; Outlook: (ICRA A one) Outlook :
Slide 11: Growing Present, Promising Future
Growing Present, Promising Future POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 10
Slide 12: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 13: Transformation Unfolds
Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon » Graphite Grade Binder Pitch 2010 » Graphite Grade Ze
Slide 14: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a More than 90% of the green, long-term EV and power requirement being renewable energy solution met by inhouse generated by providing critical raw clean and green power material Energy Conservation through Waste Heat Recover
Slide 15: Research & Development Initiatives
Research & Development Initiatives Anode Materials Silicon-based Anode o Natural Graphite Materials o Synthetic Graphite o Hybrid Anode 14
Slide 16: Research & Development Initiatives
Research & Development Initiatives Cathode Materials o Next generation iron based cathode Graphene – Next generation product o Alternate chemistries 15
Slide 17: Financial Performance
Financial Performance Q1FY24 & FY23 16
Slide 18: Performance Trajectory Continues
Performance Trajectory Continues Sales Volume (MT) Revenue (Rs. In Crs) EBITDA (Rs. In Crs) PAT (Rs. In Crs) -9% +54% +125% -8% 109,229 1,047 1,029 131 88 99,989 101,030 951 122 77 85 39 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Increase in profitability due
Slide 19: Standalone Profit & Loss Statement – Q1FY24
Standalone Profit & Loss Statement – Q1FY24 Particulars (In Rs. Crs) Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q FY23 FY22 Y-o-Y Net Revenue From Operations 950.91 1046.64 -9.15% 1028.90 -7.58% 4,171.84 2,791.31 49.46% Cost of Materials Consumed 700.42 831.66 782.05 3,267.14 2,250.02 Gross Profit 250.49 214.98
Slide 20: Consolidated Profit & Loss Statement – Q1FY24
Consolidated Profit & Loss Statement – Q1FY24 Particulars (In Rs. Crs) Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q FY23 FY22 Y-o-Y Net Revenue From Operations 950.91 1046.64 -9.15% 1028.90 -7.58% 4,171.84 2,791.32 49.46% Cost of Materials Consumed 700.86 831.02 781.04 3,254.40 2,244.86 Gross Profit 250.05 215.
Slide 21: Highest ever revenue recorded in FY23
Highest ever revenue recorded in FY23 Sales Volume (MT) Sales (Rs. In Crs) EBITDA (Rs. In Crs) +9% +49% +153% 403,826 4,172 408 371,974 2,791 162 FY22 FY23 FY22 FY23 FY22 FY23 On Standalone Basis 20
Slide 22: Capital Disciplined Balance Sheet
Capital Disciplined Balance Sheet Net Debt (Rs. In Crs) Long Term Borrowings (Rs. In Crs) 583 Significant reduction in Long Term Debt 124 132 315 200 93 Mar-21 Mar-22 Mar-23 Mar-21 Mar-22 Mar-23 Net Debt to EBITDA Net Working Capital Days 4.57x 153 1.95x 62 69 0.49x Mar-21 Mar-22 Mar-23 Mar-21 Mar-2
Slide 23: Standalone Balance Sheet
Standalone Balance Sheet Particulars (in Rs. Crs.) Mar’ 23 Mar’22 Particulars (in Rs. Crs.) Mar’ 23 Mar’22 ASSETS EQUITY AND LIABILITIES Non-Current Assets 1,729.97 1,720.50 EQUITY 2,215.60 1,803.78 Property, Plant and Equipment 1431.78 1456.38 Equity Share Capital 43.27 41.90 Capital work-in-progre
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (in Rs. Crs.) Mar 23 Mar’22 Particulars (in Rs. Crs.) Mar’23 Mar’22 ASSETS EQUITY AND LIABILITIES Non-Current Assets 1,793.04 1,785.70 EQUITY 2,277.69 1,864.95 Property, Plant and Equipment 1,488.13 1514.04 Equity Share Capital 43.27 41.90 Other Equity 2,237.23
Slide 25: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Crs.) Mar-23 Mar-22 Mar-23 Mar-22 Profit Before Tax 271.81 79.47 280.25 53.47 Adjustments for: Non-Cash Items / Other Investment or Financial Items 103.69 98.8 98.96 124.86 Operating profit before working capital changes 375.5 178.27 379.2
Slide 26: Business Overview
Business Overview Integrated Business Model 25
Slide 27: Our Ethos - We Care, We Innovate
Our Ethos - “ We Care, We Innovate” Innovation To deliver value-added products across segments Sustainability Sustainable business model : We care for the Environment Employee Care Our most valuable assets 26
Slide 28: Strong Research & Development
Strong Research & Development World Class Laboratory New brands introduced with multiple grades catering to different application segments An Innovation Mindset of Speciality Carbon Black Continuous working on reducing energy consumption Continuous R&D in certain processes Focusing on new product Te
Slide 29: Current Product Portfolio
Current Product Portfolio Coal Tar Pitch Carbon Black Speciality Carbon Black Refined Naphthalene Largest Indian player 3rd Largest player in India Largest Indian Player Largest Indian Player Battery Material SNF Speciality Oils Power Dominant player in India Niche segments in India Green Power from
Slide 30: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 29
Slide 31: Marquee Clients across Industries
Marquee Clients across Industries 30
Slide 32: Future Strategy
Future Strategy Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Location Team Transformation Unfolds Addressing the needs of critical ra
Slide 33: Thank You
Company : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika EVP - CTD & Strategy Email: ssatnalika@himadri.com www.himadri.com Thank You Investor Relations Advisors : Ms. Payal Dave : +91 9819916314 payal.dave@linkintime.co.in Mr. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in www.orientcap.
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