Laxmi Organic Industries Ltd. · NSE:LXCHEM
Laxmi Organic Industries — Q2 FY23 Earnings Presentation
22 slides from Laxmi Organic Industries's earnings presentation, Nov 11, 2022
Slide 1: Exchange intimation letter for investor presentation
November 11, 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Bandra Kurla Complex, 1st Floor, New Trading Ring, Bandra (E), Rotunda Building, P. J. Towers, Mumbai – 400 051 Dalal Street, Fort, Trading Symbol: LXCHEM Mumbai – 400 001 Scrip
Slide 2: Investor Presentation – Q2 FY23 | November, 2022
LAXMI ORGANIC INDUSTRIES LTD w w w. l a x m i . c o m Investor Presentation – Q2 FY23 | November, 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Laxmi Organics Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the
Slide 4: Agenda
Agenda 01 Company overview 02 Strategic Overview 03 Financial Performance
Slide 5: Company overview
82.2 Company overview
Slide 6: Stable, Growing & Diversified Business
Stable, Growing & Diversified Business AI SI FI Acetyl Specialty Fluoro-Specialty Intermediaries Intermediaries Intermediaries o #1 in India o #1 in India o USD 4.0bn GTM opportunity o Top 5 in the world o Very strong NPD o World class technology o High & growing contracted revenue o Customer approv
Slide 7: The Journey So Far
The Journey So Far Entered Specialty Chemicals business – Glacial Acetic Acquisition of Clariant’s diketene Entry into fluorospecialty business – Acid mfg business Acquisition of Miteni, Italy assets facility estd 2 windmills of Hydro-electric power 0.6MW each project installed commissioned 2010 201
Slide 8: Strategic overview
Strategic overview
Slide 9: Consolidating Growth & Building for Future
Consolidating Growth & Building for Future Consolidating AI + Growing SI Consolidating SI + Growing FI Particulars FY11-FY14 FY15-FY18 FY19-FY22 FY23 H1 AI Revenue Contribution 77% 63% 60% 65% SI Revenue Contribution 23% 37% 40% 35% EBITDA CAGR (%) 4% 22% 31% ~75% of the margin has come from the SI
Slide 10: The Journey Ahead: % Contribution to Revenue
The Journey Ahead 120% 16% 15% 100% FI FI 10% 10% SI 80% 30% % Contribution to Revenue SI SI 35% 40% 60% 9% 40% AI 70% AI AI 55% 20% 50% 0% H1'23 FY'25 FY'27 The next 5years the margin expansion will come from SI & FI businesses, contributing ca. 70% to the profitability LAXMI ORGANIC LIMITED | Q2 a
Slide 11: Key Growth Levers in Place
Key Growth Levers in Place STRONG INFRASTRUCTURE CUSTOMERS Company BALANCE SHEET Competitor • Well Invested Infrastructure • Diversified customer base across • Responsible growth • Mega site for AI; no expansion geographies and industries • Prudent leverage - D/E ratio at required • Forward integrat
Slide 12: De-risked Business Model
De-risked Business Model Robust Export Share Diversified Industry Base (INR Mn) Domestic Export Pharmaceuticals 4,777 5,046 4,438 4,478 32% 23% Agrochemicals FY22 3,324 3,131 3,066 2,928 Colour and 6% pigment 1,909 2% 1,407 Printing and 2% Packaging 35% Coating Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Con
Slide 13: Financial Performance
loo! Financial Performance
Slide 14: Key Developments Q2 FY23- SI
Key Developments Q2 FY23- SI Product Mix Optimisation - Rebased Specialty Intermediaries – Market Overview 100 100 o While demand softness remained due to inflationary pressures, the 96 96 Company maintained its market leadership position and increased market share in some products and segments 88 o
Slide 15: Key Developments Q2 FY23- AI
Key Developments Q2 FY23- AI ETAC FOB (USD/t) Acetyls Intermediary – Market Overview 1,600 1,400 1,200 o ETAC prices globally saw softening in Q2 1,000 800 o European demand saw a steep fall with the recessionary 600 environment and currency moves becoming more stark 400 200 - o We continue to maint
Slide 16: H1 FY23 Overview
H1 FY23 Overview Business Overview Supply Chain Overview o Two main projects in SI segment are on o Continued focus on responsible domestic track and global sourcing has ensured cash, o First plant commissioned in Q1 and has inventory and supply chain optimisation commenced production o Second plant
Slide 17: Financial Highlights: Q2FY23
Financial Highlights: Q2FY23 SALES EBITDA PAT EPS (INR Mn) (INR Mn) (INR Mn) (INR) Q2’FY23 ₹ 6,522 ₹ 286 ₹ 86 ₹ 0.32 YOY: + 7% - 7% - 87% - 37% QOQ: - 14% -72% -41% + 13% Q2’FY22 ₹ 6,081 ₹ 309 ₹ 146 ₹ 0.55 Q1’FY23 ₹ 7,566 ₹ 1,004 ₹ 644 ₹ 2.44 SI business remains to be a strong contributor to the EBI
Slide 18: Financial Highlights: H1FY23
Financial Highlights: H1FY23 SALES EBITDA CFO/ PAT EPS (INR Mn) (INR Mn) EBITDA (INR Mn) (INR) H1’FY23 ₹ 14,088 ₹ 1,290 55% ₹ 731 ₹ 2.76 YOY: + 5% -27% - 38% - 38% H1’FY22 ₹ 13,444 ₹ 1,761 9% ₹ 1,169 ₹ 4.43 FY’22 ₹ 30,842 ₹ 3,676 27% ₹ 2,575 ₹ 9.76 Cash flow from operations have strengthened given t
Slide 19: Business Unit Overview
Business Unit Overview AI business SI business Contribution to Top-line 70% Contribution to Top-line 30% Contribution to Profits 33% Contribution to Profits 67% Exports 31% Exports 39% SI business continues to be the focus for future investments and growth LAXMI ORGANIC LIMITED | Q2 and H1FY23 18
Slide 20: Quarterly Performance – Consolidated Results
Quarterly Performance – Consolidated Results INR Mn Particulars Q2 FY23 Q1 FY23 QoQ (%) Q2 FY22 YoY (%) H1 FY23 H1 FY22 YoY (%) Revenue from Operations 6,522 7,566 -14% 6,081 7% 14,088 13,444 5% Cost of Materials 3,317 4,179 -21% 3,288 1% 7,496 7,070 6% Gross Profits 3,205 3,387 -5% 2,793 15% 6,592
Slide 21: Delivering Shared Value to all Stakeholders
Delivering Shared Value to all Stakeholders CUSTOMER INTERGRITY SUSTAINABILTY INNOVATION CENTRICITY o Always on the lookout for o Proud partner of many o Signatories to Responsible o To create a culture of customer-specific and well established and well- Care- a voluntary innovation where failure ma
Slide 22: Thank You
THANK YOU For further information, please get in touch with: Monali Jain Aniket Hirpara monali@GoIndiaadvisors.com aniket.hirpara@laxmi.com M:+91 7597304020 M:+91 7666830913
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