Vishnu Chemicals Limited · NSE:VISHNU
Vishnu Chemicals — Q2 FY22 Earnings Presentation
21 slides from Vishnu Chemicals's earnings presentation, Nov 7, 2021
Slide 1: Exchange filing cover letter: Investor Presentation on Q2 F22 Results
7th November, 2021 VCL/SE/55/2021-22 To To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G Dalal Street, Fort, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 516072 NSE Symbol: VISHNU Through: BSE Listin
Slide 2: Corporate Presentation November 2021
Corporate Presentation November 2021 High performance speciality chemicals 1
Slide 3: Contents
Introduction 04 Performance driven earnings with strong 05 Balance Sheet as focus Chromium Chemicals 06 Chromium Chemicals - Highlights 08 Barium Chemicals – Our Journey at a 10 glance Barium Chemicals 11 Barium Chemicals – Highlights 12 Summary 14 Results & Highlights 15 Investor Information 18 Dis
Slide 4: 30+ years track record, deep process knowledge, diversified product mix
30+ years Greater Track record Portfolio Coherence Flexible Deep Process Product Mix Knowledge Efficient & Evolved Diversified Applications Reliable Product Quality Global Value accretive Reach & Opportunity Growth 3
Slide 5: Overview and consolidated P&L summary
Established in 1989, Vishnu Chemicals Limited is a market leader in manufacturing and sales of Chromium chemicals and Barium compounds across the world. Overview From its modest origins more than three decades ago, the company is built on the tenets of production, customer centric approach, reli
Slide 6: Flexible product mix and focus on performance and return metrics
Entering the new decade with a flexible product mix and scale to emerge as one of leading producers of high performance speciality chemicals globally. And now the focus is on consistently delivering performance which will strengthen return metrics as well as balance sheet. Consolidated EPS in Rs Con
Slide 7: Chromium chemicals: key product and industry overview
Key product Sodium Dichromate (SDC): Na2Cr2O7 Derivative products Basic Chrome Sulphate, Chrome Oxide Green, Chromic Acid, Potassium Dichromate, White Sodium Sulphate. 700,000 MTPA is the global demand for Chromium chemicals growing at 6% p.a. India demand would be around 60,000 MTPA. This inclu
Slide 8: Developed flexible product mix to reduce industry, currency and geography risk
Developed flexible product EARLIER mix Concentrated portfolio of products in Chromium Finds Chemicals led to low operating levels and exposed the Better utilization multi industry business to multiple risks: Solution implemented hence operating applications with wide geographical over the years leve
Slide 9: Chromium chemicals standalone: better product mix to drive volumes
Leading manufacturer in India & South Asia. Better product mix to drive volumes: STANDALONE - CHROMIUM CHEMICALS Till FY16, the company was pretty much focused on two products - In Rs Cr H1FY22 FY21 Sodium Dichromate and Basic Chrome Sulphate. In the last few years, we have pivoted our strategy and
Slide 10: Backward integration: sodium carbonate
Backward Integration: Majority of the capital expenditure towards sodium carbonate is completed. One of its kind and highly complex infrastructure. Majority of our sodium carbonate’s current requirement will be met through the process. Significant cost reduction expected from upon being operational
Slide 11: Barium subsidiary turnaround since 2015 acquisition
From being a loss making facility during the acquisition from Solvay in 2015, today the Barium subsidiary contributes to over 35% of consolidated profits. Led the growth from the front to And now the focus is to increase emerge as one of the leading Barium market share with higher volumes Chemical m
Slide 12: Barium carbonate: key product and industry overview
Key product Barium Carbonate: BaCO3 Global Barium Carbonate market size is USD 350 M growing at 3.4% CAGR. India demand is about 35,000 MTPA. Industry Overview ~40% of market share in India. Peers: Belgium, China. The construction and real estate industries have witnessed significant growth
Slide 13: Barium chemicals: leading manufacturer in India
Leading manufacturer in India: Other players have less than 1/10th of Vishnu’s current capacity. SUBSIDIARY - BARIUM CHEMICALS Turned around ailing business segment post acquisition in 2015: In Rs Cr H1FY22 FY21 Contributes to more than 35% of consolidated profits. Income 84.5 113.4 Highest qualit
Slide 14: Incremental barium carbonate capacity expected Q4FY22E
Incremental capacity of 20,000 TPA of Barium Carbonate expected to be operational by Q4FY22E. Sustainability of higher realisations and margins: The realisations per tonne have increased in the current fiscal and are likely to sustain due to following reasons: China plus 1 strategy has made us a p
Slide 15: Summary
Journey from modest origins. Production is our focus. Leading position in India, operating in a market with substantial barriers to entry. Turnaround of Barium chemicals (Vishnu Barium Private Limited). Product portfolio that is decisive to achieve and sustain competitive advantage. Effici
Slide 16: Results & Highlights
Results & Highlights 15
Slide 17: Consolidated results Q2FY22 and H1FY22
Y-o-Y Q-o-Q Y-o-Y In Rs Cr Q2FY22 Q2FY21 change Q1FY22 change H1FY22 H1FY21 change FY21 Q2FY22 Revenues Income 241.8 182.6 32% 197.9 22% 439.7 334.6 31% 681.5 rose by 32% y-o-y EBITDA 34.5 20.2 70% 27.7 24% 62.2 39.0 60% 80.2 EBITDA Margin 14.3% 11.0% 14.0% 14.2% 11.7% 11.8% Depreciation 5.5 5.0 5.5
Slide 18: Quarterly performance: chromium and barium chemicals
Across the world, our customers are looking at pricing from the VCL Chromium Chemicals Particulars Income EBITDA PAT point of view of end user demand, consistent supply and to 182 199 mitigate shipping delays. 133 154 162 25 109 20 20 Company demonstrated ability to pass the rise in input prices
Slide 19: Investor information: shareholding and dividend record
Public 24.80% Consistent Dividend Track Record 2018 2019 FIIs/FPIs 2020 0.20% 2021 *Brokerages covering Vishnu Promoters 75.00% HDFC Retail Arihant Capital Promoters FIIs/FPIs Public *In order of coverage initiated 18
Slide 20: Disclaimer
This presentation and the accompanying slides (the You acknowledge and agree that the Company and/or its The information contained in this Presentation is not to be taken as "Presentation”) have been prepared by Vishnu Chemicals affiliated companies and/or their respective employees and/or any recom
Slide 21: Website and investor relations contact
Website www.vishnuchemicals.com Investor Relations Contact investors@vishnuchemicals.com 20