Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Q3 FY2023 Earnings Presentation
27 slides from Epigral's earnings presentation, Jan 24, 2023
Slide 1: Exchange cover letter: revised earnings presentation
24.01.2023 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: Revised Earnings Presentation for Q3 FY2023 Financial Results
Slide 2: Meghmani Finechem Limited Corporate Presentation
Meghmani Finechem Limited Corporate Presentation
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: MFL Corporate Film
MFL Corporate Film 3 | MEGHMANI FINECHEM LIMITED
Slide 5: Company Overview
Company Overview Founded: 2007 32% 29% 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 Derivatives# – 190 KTPA Revenue from operations (₹ Cr) 5,000 Certified: 1551 Responsible Care Certificate 829 598
Slide 6: What are we into
What are we into ESG Focus Our Business o Leading producer of Chlor- o Strong focus on sustainability - alkali products and value awarded with the ‘Responsible added derivatives Care’ certificate by ICC Strategic Location Competitive Advantage o State of the art manufacturing o Domestically produced
Slide 7: Our Evolution
Our Evolution FY2023 FY2022 FY2021 Commissioned and increased Listed as an FY2020 independent capacity Commissioned entity on 18th FY2017 and increased August 2021 Epichlorohydrin – 50 KTPA capacity FY2015 Commissioned Announced CPVC Resin – Commissioned Caustic Soda - expansion in FY2010 KOH – CMS
Slide 8: Driven by Strong Values
Driven by Strong Values • Maintaining high standards on transparency and disclosures Trust with all our stakeholders We enhance diverse employee engagement for increased o Caring for the environment and productivity & creativity and are Diversity Integrity the communities in which we an equal opport
Slide 9: MFL Evolving to value added specialty products
MFL Evolving to value added specialty products Fully Integrated Product Portfolio High Value Products Chlorotoluene & value chain ECH ECH Import Substitution – Make in India Chlor-Alkali H202 H202 CPVC CPVC Diversified End User Industries Chlorine Hydrogen CMS CMS Sole Manufacturer of ECH in India C
Slide 10: Fully Integrated Complex
Fully Integrated Complex 9 | MEGHMANI FINECHEM LIMITED
Slide 11: Competitive Strength
Competitive Strength Well Invested Infrastructure Well established brand o State of the art manufacturing facility o MFL is a known brand in Indian chemical market o Strategic location with close connectivity to o Serving domestic customers for last 12 Yrs ports and raw material availability. o Pan
Slide 12: Catering to High Growth Industries
Catering to High Growth Industries Increased market potential & higher growth exposure Refinery Paper & Pulp Fluoropolymers Soap & Detergents Textiles Dyes & Pigment Pharmaceuticals Agrochemicals Alumina PU Foams Paints PTFE Pipes CPVC Pipes Refrigerant Gas Water Treatment Electronics The addressabl
Slide 13: Levers of Future Growth
Levers of Future Growth Manufacturing Plant Capacity (KTPA) 400 Q4FY24 Q4FY24 45 60 50 50 30 21 CPVC Resin Epichlorohydrin Chloromethanes Hydrogen Peroxide Chlorotoluene & its Caustic Soda Caustic Potash *Q2FY23 *Q1FY23 *Q2FY20 *Q2FY21 value chain Expected Commissioning, * Commissioning date 12 | ME
Slide 14: Transitioning to Value added products
Transitioning Transitioning to Value to Value added added products Specialty Chemicals Chlor-Alkali – 74% Chlor-Alkali–– Chlor-Alkali < 40% 40% FY2022 Derivatives FY2027E ₹1,551 Cr 26% ₹5,000 Cr Derivatives & Derivatives & Specialty Specialty& Derivatives Chemicals – 68% Chemicals Specialty 60% Chem
Slide 15: Product Portfolio – Chlor-Alkali
Product Portfolio – Chlor-Alkali Caustic Soda (NaOH) Caustic Potash (KOH) India’s NaOH Requirement: 4,200 KTPA India’s KOH Requirement: 91 KTPA Demand CAGR: ~ 8% Demand CAGR: ~ 8% Alumina Textile Chemicals Agrochemicals API o We are 4th largest producer in India o We are 3rd largest producer
Slide 16: Product Portfolio – Derivative products
Product Portfolio – Derivative products Chloromethanes (CMS) Hydrogen Peroxide (H2O2) India’s CMS Requirement: 517 KTPA India’s H2O2 Requirement: 328 KTPA Demand CAGR: ~ 12% Demand CAGR: ~ 10% Solvent in Pharma PTFE Pipes Refrigerant Gas Paper & pulp Textile Chemicals o We are 5th largest pr
Slide 17: New Product Portfolio – Specialty Chemicals
New Product Portfolio – Specialty Chemicals CPVC Resin Epichlorohydrin (ECH) India’s CPVC Requirement: 140 KTPA India’s ECH Requirement: 80 KTPA Demand CAGR: ~ 13% Demand CAGR: ~ 15% Wind mill Automobile Adhesives Pipes and Fixtures o Largest producer in India o 1st company in India to produ
Slide 18: Chlorotoluene & its value chain - Specialty Chemicals
Chlorotoluene & its value chain - Specialty Chemicals Project Details Rationale o Capex for the project will be ₹ 180 Cr and o Foundation for the next phase of growth in expected revenue of Rs. 300 Cr Specialty Chemicals o Expected commissioning date: Q4FY24 o Chlorine is captive a raw material - in
Slide 19: Research & Development Centre
Research & Development Centre Project Details Rationale o Capex for the project will be ₹ 25 Cr o R&D center will be used for creating further molecules for Chlorotoluene and other new molecules, which will be intermediates for o A step towards strengthening presence in pharmaceutical and agrochemic
Slide 20: Professional Management Team
Professional Management Team Mr. Maulik Patel Mr. Kaushal Soparkar Chairman & Managing Managing Director Director Mr. Yash Chitnis Mr. Sanjay Jain Mr. Naresh Agarwal Mr. Vijay Vasudeva Sales Head – Chief Financial Sales Head – Chlor- Head of Operations Derivatives & Specialty Officer Chemicals Alkal
Slide 21: 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 22: Growth Strategy
Growth Strategy Forward & Backward Opportunities in high New Value Chains: Achieving economies Integration: growth sectors: of scale: o Scale up capacities in o Explore opportunities o Expand chemistry o Optimising existing existing products in various sectors expertise to enter complex o New value
Slide 23: Financial Performance – P&L
Financial Performance – P&L Revenue from operations (₹ Cr) EBITDA (₹ Cr & %) PAT (₹ Cr & %) CAGR 32% 44% 26% 25% 43% 1,551 509 253 32% 32% 33% 18% 183 16% 155 12% 312 829 255 261 710 112 598 611 194 101 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021
Slide 24: Balance Sheet Ratios
Balance Sheet Ratios ROCE (%) ROE (%) Debt/EBITDA (x) 38% 36% 35% 36% 36% 2.7 29% 2.1 1.9 21% 16% 16% 1.3 15% 0.3 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 FY2018 FY2019 FY2020 FY2021 FY2022 23 | MEGHMANI FINECHEM LIMITED
Slide 25: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY18 FY19 FY20 FY21 FY22 Total Revenue 602 720 613 831 1,555 Gross Profit* 335 431 300 407 716 Gross Margin (%) 56% 61% 49% 49% 46% EBITDA 255 312 194 261 510 EBITDA Margin (%) 43% 44% 32% 32% 33% Depreciation 55 54 44 74 86 Finance Cost 9 25 11 29 44 PBT
Slide 26: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY20 FY21 FY22 Liabilities (₹ Cr) FY20 FY21 FY22 Fixed Assets 1,131 1,228 1,657 Share Capital 42 42 42 Financial Assets 4 10 8 Reserves & Surplus 542 643 684 Other Non-current Assets 5 29 11 Long-Term Borrowings 418 340 557 Inventories 48 54 154 Redeemable Prefer
Slide 27: About Us and Investor Contact
About Us and Investor Contact Corporate Office Manufacturing Site Regional Office Regional Office “Meghmani House”, B/h Safal CH/1 and CH/2, GIDC Industrial Regus Mid-Town 1st Floor, 303-B, Alpha, Main Street, Profitaire, Corporate Road, Estate, Dahej, Tal. Vagra, Dist. 101, Mid Town Plaza, Hiranand