Slide 1: Covering letter to exchanges
July 24, 2020 श्रावण – शक् ु लपक्ष- चतर्थ ु ी ववक्रम सम्वत २०७७ National Stock Exchange of India BSE Limited Limited Corporate Relationship Department, “Exchange Plaza” 1st Floor, New Trading Ring, Rotunda Building, P.J. Bandra – Kurla Complex, Towers, Bandra (E), Mumbai – 400 051 Dalal Street, Fort
Slide 2: GHCL Limited Q1 FY21 Investor Update
GHCL LIMITED DRIVING EXCELLENCE Q1 FY21 Investor Update July 2020
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by GHCL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 4: Table of contents
Table of contents Company Inorganic Quarterly update Overview Chemicals Segment Textiles Segment 4 14 23 33 3
Slide 5: Quarterly Update
Quarterly Update 4
Slide 6: Management Commentary
Management Commentary Commenting on the Q1 FY21 performance, Mr. R. S. Jalan, MD said: As the global CoVID crises evolve even further, we are now witnessing a much wider impact on the economies around the world. These are the trying and uncertain times and understandability there is sense of unease
Slide 7: Update on COVID-19
Update on COVID- 19 Due care has been ensured for our people and processes to circumvent getting contracted with COVID-19. The Lockdowns has impacted operations for a major part of the period followed by lower offtakes due to economic slowdown and disruptive supply chain. Soda Ash Plant utiliz
Slide 8: Demand momentum in key end-user segments of Soda Ash
Demand momentum in key end-user segments of Soda Ash Soda Ash Demand Dynamics Post COVID-19 requirement: Demand for detergents has maintained through the Detergents and soaps typically consume lockdown. ~40% of Soda Ash production Around end of June, demand from detergent segment has reached t
Slide 9: Performance Highlights – Q1 FY21
Performance Highlights – Q1 FY21 Revenues EBITDA PBT PAT Cash Profit ` 440 crore ` 84 crore ` 23 crore ` 17 crore ` 50 crore Segment-wise Revenue break-up* Domestic : Exports Revenue break-up* Exports, Textiles, 18% 33% Inorganic Chemicals, Domestic, 67% 82% 8 *Based on FY20 Financials.
Slide 10: Profit & Loss Statement
Profit & Loss Statement Rs. In Crore Particulars Q1 FY21 Q1 FY20 YoY Q4 FY20 QoQ FY20 FY19 YoY Sales 440 879 -50% 734 -40% 3,272 3,385 -3 % Operating Expenses 356 657 -46% 572 -38% 2,509 2,601 -4 % EBITDA 84 222 -62% 161 -48% 763 784 -3 % EBITDA Margin 19.1% 25.2% -6.1% 22.0% -2.8% 23.3% 23.2% 10 BP
Slide 11: Q1 FY21 Segment Highlights – Inorganic Chemicals
Q1 FY21 Segment Highlights – Inorganic Chemicals Chemicals – Quarterly Trend Particulars Q1 FY21 Q1 FY20 YoY Revenue* (Rs cr) EBITDA (Rs cr) EBITDA (%) Revenue (Rs. Crores) 346 588 -41% 32.0% 33.0% 31.2% EBITDA (Rs. Crores) 80 188 -58% 28.6% 23.1% EBITDA % 23% 32% -9% 588 188 542 179 549 157 519 346
Slide 12: Q1 FY21 Segment Highlights – Textiles
Q1 FY21 Segment Highlights – Textiles Particulars Q1 FY21 Q1 FY20 YoY Textile – Quarterly Trend Revenue ( Rs. Crores) 94 262 -68% Revenue* (Rs cr) EBITDA (Rs cr) EBITDA (%) 11.6% 8.6% EBITDA ( Rs. Crores) 4 34 -87% 7.0% 4.8% 214 94 -0.5% 4.5 EBITDA % 4.8% 11.6% -6.8% 292 34 283 24 285 20 Q1 FY20 Q2
Slide 13: Efficient Capital Allocation (Q1 FY21) & Key Ratios
Efficient Capital Allocation (Q1 FY21) & Key Ratio’s Rs. 19 Crore Rs. 17 crore Rs. 50 cr CAPEX** OPREATIONS Generated Cash Profits (net of Tax) Inorganic Chemicals Decrease in Working Capital Rs. Rs. 17 crore 17 Crores Textiles Rs. 48 crore Rs. 2 crore (Decrease in Gross Debt) Net Net- Debt Debt ROC
Slide 14: Demerger of the Textiles business of GHCL
Demerger of the Textiles business of GHCL Fine prints of demerger The Board approved a scheme of demerger where Textiles business of GHCL will be demerged into a separate Company Focused Shareholders of GHCL will be allotted shares in the new company in the swap ratio of 1:1, one share of Rs. 2
Slide 15: Company Overview
Company Overview 14
Slide 16: GHCL - An Introduction
GHCL - An Introduction Targeting Best in class •To grow profits at a CAGR 20% on a long Focused management approach and term horizon •Operations management strategy led by professional •To create value systems that defines our •CAPEX planning and execution management team Culture •Financial manageme
Slide 17: GHCL Overview
GHCL Overview 3 decades of Indian Leading soda ash player in India Manufacturing experience Professionally managed Listed on 2 premier stock workforce exchanges of India Focus to emerge as a sustainable Business Philosophy of Inclusive business organization growth of all stakeholders 16
Slide 18: Balanced growth opportunities across businesses
Balanced growth opportunities across businesses Inorganic Chemicals (67%*) Textiles Segment (33%*) Margin leadership in the industry Presence across the value chain Among top 3 soda ash players. Spinning Weaving •Catering 1/4th of Indian soda ash demand •1,84,416 Spindles •12 mn meters pa •3,320 Rot
Slide 19: Evolution of GHCL through the years
Evolution of GHCL through the years Soda Ash production capacity increased to 9.75 Lacs MTPA Doubled Sodium bicarbonate capacity to 60 K Soda Ash capacity increased to 8.5 Lakh MTPA MTPA Entered Spinning business with 65 K spindles Added TFOs for value added yarn and Air jet subsequently increased t
Slide 20: Spearheaded by Pre-eminent Professionals
Spearheaded by Pre-eminent Professionals Neelabh Dalmia NN Radia Sunil Bhatnagar M. Sivabalasubramanian R S Jalan Executive Director , Textiles President & COO, Soda Ash President Marketing, Soda Ash CEO, Spinning Managing Director Unique leadership style with endeared managerial abilities drives al
Slide 21: Experienced and accomplished Board of Directors
Experienced and accomplished Board of Directors Mr. Sanjay Dalmia Mr. Anurag Dalmia (Chairman) (Vice Chairman) Mr. R.S. Jalan Mr. Arun Kumar Jain Dr. Manoj Vaish (Managing Director) (Ex-IRS) (Independent Director) (Independent Director) Mr. Raman Chopra Justice (Rtd.) Ravindra Singh Mrs. Vijaylaxmi
Slide 22: Core values at forefront..
Core values at forefront.. GHCL is an unique work place which is dotted with its Core Thoughtful and Confidence in each Values, defining its culture. show regards for Respect Trust others capabilities another person. and intentions. Every employee in the company is expected to imbibe its Core Va
Slide 23: Strong Institutional & HNI Holding – 40.89%
Strong Institutional & HNI** Holding – 40.89% Institutional Holding – 35.21%, HNI’s**- 5.68% 19.26% 14.45% 16.76% Promoter & Promoter Foreign Portfolio Mutual Group MF holding has increased Investors Funds from 13.05% in March 20 to 16.76% in June 20 39.85% 4% 5.68% Insurance Companies/ HNI’s** Fina
Slide 24: Inorganic Chemicals
Inorganic Chemicals 23
Slide 25: Commanding leadership in Soda Ash manufacturing
Commanding leadership in Soda Ash manufacturing Key Differentiators Limestone Single largest (25% captive) Soda ash plant and Salt (35% in India at a captive) mine single location located within Innovated from coke to 40 km distance +90% 11.00L MT +30%* Best in class EBITDA Margins; briquette coke C
Slide 26: Global outlook on the soda ash industry
Global outlook on the soda ash industry Soda Ash Market Outlook Soda Ash demand disruption continues around the GLOBAL SIZE: CAPACITY-70 MMT, PRODUCTION-61 MMT world owing to Covid-19. Witnessing an oversupply situation despite moves by producers to lower the EUROPE production. CAPACITY: 14.5 MMT
Slide 27: Soda Ash Dynamics (Domestic Industry)
Soda Ash Dynamics (Domestic Industry) Domestic market share Domestic Demand Concentration West Tata 15% Import, Chem, 23% North 20% South 29% Others, 19% 5% GHCL, 25% Nirma, East, Gujarat 27% 9% 28% Tata Chem GHCL Nirma Others Import North Gujarat East South West * Based on External demand for FY19
Slide 28: Aim to be the Single Largest Soda Ash producer in the country
….Aim to be the Single Largest Soda Ash producer in the country Historical capacity addition trend in Soda Ash (in lakh tonnes) Positive demand momentum from key end-user industries warranted calibrated expansions through the years CAGR: 5% 11 9.8 Capacities enhanced from 8.5 Lakh Tonnes 9.5 8.5
Slide 29: Inorganic Chemicals – Varied Offerings in Soda Ash
Inorganic Chemicals – Varied Offerings in Soda Ash Positive demand One of India’s Largest State of the Art Products are marketed in momentum from key end- Manufacturers of Soda Manufacturing Facility India under the brand user industries warranted Ash Light and Soda Ash located at Sutrapada, name ‘L
Slide 30: Application diversity of Soda Ash across end-user industries
Application diversity of Soda Ash across end-user industries 29
Slide 31: Inorganic Chemicals – Sodium Bicarbonate
Inorganic Chemicals – Sodium Bicarbonate Specialization and experience in manufacturing of around a decade Doubled capacity from 30,000 to 60,000 MT in December 2017 Generally named as baking soda, bread soda, cooking soda and bicarbonate of soda Used in Cooking, Pharmaceuticals, Fire Extinguishers,
Slide 32: Marquee Clients
HE GUJARAT 2 BOROSIL ik LIMITED f SAINT-GOBAIN coat Ds @@PATANJALL, 6 Piramal Glass i HINDUSTAN ZINC orr
Slide 33: Inorganic Chemicals – Consumer Products
Inorganic Chemicals – Consumer Products Premium edible Salt Manufacturer in South India Expanding product portfolio i.e. Salt, Honey, Spices and Powder Spices under the brand i-FLO. Ventured into the Premium Honey Category by pioneering the entry of Jujube Honey Under powdered spices categor
Slide 34: Textiles Segment
= SZSEES CIRKULARITY
Slide 35: GHCL's Home Textile 4 Pillar Strategy
GHCL's Home Textile 4 Pillar Strategy Sustainability Traceability Giving Back to Innovation Society 34
Slide 36: Complete Integration improving the efficiency
Complete Integration improving the efficiency Presence across value chain 1.85 Lacs Spindles, 3,320 Rotors, 5,760 TFO Drums, 5 Air jet Spinning Machines 12 Mn Meters 45 Mn Meters 30 Mn Meters Bed Sheets & Spinning Weaving Fabric Processing Cut & Sew Made-up’s Also sold in Sold in Market Market Spi
Slide 37: Marquee Clients
Marquee Clients 36
Slide 38: REKOOP recycled products
Reinventing the to REKOOP REKOOP 2.0 Manufactured and Sold by GHCL under REKOOP brand Bottle Flake Yarn Flake Fibre Bed sheets Fibre Yarn DNA Tags Fibre to be manufactured and supplied by Reliance Industries Patented technology developed in association with Applied DNA Sciences(ADNAS) & GHCL 37
Slide 39: Sustainable yarn collections
THE SPIN WIN Aocoliecrianen ‘5% COMBER NOIL, 49% ORGANIC COTTON Upcyeled as 0 result of the reuse of Combe Nesl a wested produc BE he Yarn epioning process. Using Comber Noil instoad of Cotton NATURLIG reduces the consumption of water b atiebeore ‘around $200 gallons persel. NATURAL, ScOURED DUBBY ©
Slide 40: Focus on driving profitable growth
Focus on driving profitable growth Soda Consumer Ash Products Textiles Modular, phase-wise capex Expanding product to give sustained volume portfolio and growth geographic footprint remains the key Emphasis on high efficiency objective in operations Continuing to drive performance Cash flo
Slide 41: Awards & Recognitions
Awards & Recognitions India’s 367 Awarded trio of Golden Peacock Referred as Great Place to awards for Corporate work in four consecutive years Governance, Corporate social 366 of participation responsibility and National Quality 4 Notch Upgrades in last 4 years Enhanced Credit Ratings – Upgraded to
Slide 42: About Us
About Us GHCL Limited was incorporated on 14th of October 1983. The company Contact Us: has established itself as a well-diversified group with an ascertained footprint in chemicals, textiles and consumer products segment. In chemicals, the company mainly manufactures Soda Ash (Anhydrous Sunil Gupta
Slide 43: Thank You
Thank You 42