Meghmani Organics Limited · NSE:MOL
Meghmani Organics — FY2023 Earnings Presentation
41 slides from Meghmani Organics's earnings presentation, May 2, 2023
Slide 1: Exchange filing cover letter for investor presentation
Ref: MOL/2023-24/16 May 2, 2023 To, To, National Stock Exchange of India Limited BSE Limited “Exchange Plaza”, Bandra-Kurla Complex, Floor- 25, P J Tower, Bandra (East) Dalal Street, Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code:- 543331 Dear Sir, Sub: - Investor Presentation on Financial Re
Slide 2: Meghmani Organics Limited Investor Presentation - April 2023
Meghmani Organics Limited (MOL) (Erstwhile known as Meghmani Organochem Limited) Investor Presentation - April 2023
Slide 3: Content
CONTENT Evolution of Meghmani Organics over the years as a 03 Chemical Behemoth Remarkable scale & value in Agrochemicals; an industry 10 sensitive towards Agriculture 16 Quarterly Highlights 25 Financial Performance 30 Leadership and Management 36 Investment Rationale
Slide 4: Evolution of Meghmani Organics over the years as a Chemical Behemoth
Evolution of Meghmani Organics over the years as a Chemical Behemoth
Slide 5: Pigment Division Overview: Key Milestones
Pigment Division Overview: Key Milestones 1986 1996 2013 2021 Incorporated as a Pigment Diversification by setting up Setup Greenfield Pigment plant Acquisition of Kilburn Chemicals; foray into Manufacturer Greenfield Plant exclusively for Exports Titanium Dioxide (TiO2) Products Green & AZO Pigment
Slide 6: Pigments: Business Model & Performance
Pigments: Business Model & Performance Revenue from Operations (₹ Crore) & *Exports % Capacity (MTPA) & Utilization (%) 1,000 900 82 % 83% 81 % 78 % 800 77 % 756 Capacity Utilization 641 88% 700 605 617 77% 78% 76% 578 600 80% 60% 500 60% 400 40% 300 200 20% 32,940 33,180 33,180 33,180 33,180 100 0%
Slide 7: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Foray into Titanium Dioxide (TiO2) / White Pigments By Acquiring Kilburn Chemicals Limited for ₹ 132 Crore in December 2021 TiO2 Features It is the most widely used white pigment because of its brightness and its strong UV light absorbing capabilities. It
Slide 8: Pigments: Investing in Next Phase of Growth
Pigments: Investing in Next Phase of Growth Total Capex ₹ 600 crore* Installed Capacity 16,500 MTPA Phase I Funding: 70:30 mix ₹ 275 crore As on 31st March 2023, approx. ₹ 275 crore has been utilized Installed Capacity 16,500 MTPA Phase II ₹ 325 crore Meghmani Organics Limited 7
Slide 9: Pigments: Rationale for Foraying into TiO2
Pigments: Rationale for Foraying into TiO2 HIGH ENTRY BARRIER Capital intensive project. IMPORT SUBSTITUTE Require expertise of handling Meghmani’s foray into TiO2 is to of bulk volume of Ilmenite & promote import substitution Sulphuric acid. thereby contributing to the government’s ‘Make in I
Slide 10: Industry Overview Of TiO2
Industry Overview Of TiO2 Global TiO2 Players Indian TiO2 Manufacturers 29% 50% 22% 17% 13% 22% 22% 10% 8% 6% Market Share (%) Market Share (%) Chemours Tronox, USA Lomon Billions, Venator Kronos, USA Others Kerala Minerals & Travancore Titanium V.V.Titanium Kolmark Chemicals, (Dupont) USA China Mat
Slide 11: Remarkable scale & value in Agrochemicals
Remarkable scale & value in Agrochemicals; an industry sensitive towards Agriculture
Slide 12: Agro Chemical Division Overview: Key Milestones
Agro Chemical Division Overview: Key Milestones R&D Center Agrochemical plant Commissioned new Formulation plant Capacity (MTPA) 7,800 7,200 Plant Location Sanand Ankleshwar Dahej 1995 2003 2006 2016 2021 2021 GLP Accredited Lab Doubling 2,4-D Capex at the existing and expansion of R&D Capacity Form
Slide 13: Agro Chemical: Business Model & Performance
Agro Chemical: Business Model & Performance Revenue from Operations (₹ Crore) & Exports % Capacity (MTPA) & Utilization (%) 89% 87 % 2,100 79 % 79 % 1,940 Capacity Utilization 74 % 1,738 76% 78% 75% 1,600 66% 80% 56% 1,045 25% CAGR 60% 1,100 973 791 FY19 to 40% FY23 600 20% 28,260 32,280 36,825 51,0
Slide 14: Agro Chemicals: MOL's Positioning in the Industry Landscape
Agro Chemicals: MOL's Positioning in the Industry Landscape Leading manufacturer of Pesticides with products across entire value chain Capability to develop newer molecules at competitive cost backed up by in-house product development efforts Integrated Agro Chemical manufacturer Well-recognized For
Slide 15: Agro Chemicals: Investing in the Next Phase of Growth
Agro Chemicals: Investing in the Next Phase of Growth Commissioned in Phase I Q3FY23 Total Capex ₹ 390 crore Phase II To be announced • The Multi purpose product (MPP) plant got commissioned in Q3FY23. • Installed capacity of 5,000 MTPA. • The plant is located in Dahej as part of backward integratio
Slide 16: Agro Chemicals: Industry Overview
Agro Chemicals: Industry Overview Global Crop Protection Market Region Wise Global Crop Protection Market • Global market is expected to garner revenue of ~USD 250-270 Bn by 2025 with a CAGR of 5.5-6%. FY20-FY25. 12.8% 39.6% • Major chemicals used in agriculture to regulate plant growth are syntheti
Slide 17: Quarterly Highlights
Quarterly Highlights
Slide 18: Q4 & FY23 Results: Key Highlights (Standalone)
Q4 & FY23 Results: Key Highlights (Standalone) During FY23, the Company revenues stood at INR 2,557 Crore amidst challenging global macro-economic scenario. EBITDA stood at INR 364 Crore during the year, the EBITDA margin was at 14.2% in FY23 impacted by pigments segment which was partially offset
Slide 19: Q4 & FY23 Results: Key Highlights (Standalone)
Q4 & FY23 Results: Key Highlights (Standalone) Despite of the challenging global macro-environment, Meghmani Organics balance sheet continue to remain resilient demonstrating the management’s acumen towards risk management and financial prudence. The Company declared a final dividend of 140% (INR
Slide 20: Q4 & FY23 Results: Key Highlights (Standalone)
Q4 & FY23 Results: Key Highlights (Standalone) FY23: Key Highlights Overall Business Ranked as #1 Fortune Next 500 Company by Fortune India Agrochemicals Business Signed supply agreement with one of the leading Global Agrochemical Company for supply of specific agrochemical products for a peri
Slide 21: Q4 & FY23 Results: Key Highlights
Q4 & FY23 Results: Key Highlights Q4 FY23 YoY Analysis ₹ in Crore Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 41.0% 41.9% 16.8% 14.8% 137 13.2% 813 107 8.0% 565 84 45 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 FY23 YoY Analysis Revenues & Gross Margin EBITDA & EBITDA Margin
Slide 22: Q4 & FY23 Results: Agrochemicals Business
Q4 & FY23 Results: Agrochemicals Business Q4 FY23 YoY Analysis ₹ in Crore Production & Utilisation (%) Net Revenue (₹ Cr) & Exports* EBITDA (₹ Cr) & Margin (%) 85% 90 % 92 % 21.6% 72% 20.0% 10,856 9,702 606 460 131 92 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 FY23 YoY Analysis Production & Uti
Slide 23: Q4 & FY23 Results: Pigment Business
Q4 & FY23 Results: Pigment Business Q4 FY23 YoY Analysis ₹ in Crore Production & Utilisation (%) Net Revenue (₹ Cr) & Exports* EBITDA (₹ Cr) & Margin (%) 94% 55% 94 % 72 % 7,741 208 8.8% 4,534 18 (2.1%) 105 (2) Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 FY23 YoY Analysis Production & Utilisatio
Slide 24: P&L Statement
P&L Statement Particulars (₹ in Crore) Q4 FY23 Q4 FY22 YoY% FY23 FY22 YoY% Revenue from Operations 565 813 (30.6%) 2,557 2,494 2.5% COGS 328 479 (31.6%) 1,515 1,454 4.2% Gross Profit 237 334 (29.1%) 1,042 1,040 0.1% Gross Margins % 41.9% 41.0% 87 bps 40.7% 41.7% (96 bps) Employee Expenses 29 31 (7.7
Slide 25: Balance Sheet
Balance Sheet Particulars (₹ in Crore) Mar 23 Mar 22 Particulars (₹ in Crore) Mar 23 Mar 22 Equity & Liabilities Assets Share Capital 25 25 Property, Plant & Equipment 997 732 Reserves & Surplus 1,631 1,415 Capital WIP 135 179 Shareholder's Funds 1,656 1,440 Intangible Assets 12 11 Financial Assets
Slide 26: Financial Performance
Financial Performance o
Slide 27: Standalone Financial Performance
Standalone Financial Performance ₹ in Crore Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 16% * CAGR 12% * CAGR 10% 16.5% 17.2% 12.3% 15.2% 12.0% 11.9% 11.4% 42.5% 44.7% 14.5% 14.2% 41.7% 40.7% 9.8% 38.0% 308 379 364 2,494 2,557 280 250 232 236 192 185 1,625 1,623 169 1,410
Slide 28: Focus on Creating Shareholders Wealth
Focus on Creating Shareholders Wealth CAPITAL EMPLOYED (IN ₹ Crore) & RoCE (%) NET WORTH (IN ₹ Crore) & RoE (%) 4,00 0 40. 0% 3,00 0 40. 0% 3,50 0 16.3% 15.6% 17.1% 19.0% 22.0% 21.1% 23.6% 13.8% 20. 0% 17.2% 16.2% 20. 0% 2,50 0 3,00 0 0.0 % 0.0 % 2,50 0 2,00 0 -20.0% -20.0% 2,00 0 1,50 0 -40.0% -40.
Slide 29: Comfortable Debt Position & Prudent Working Capital Cycle
Comfortable Debt Position & Prudent Working Capital Cycle 0.42 0.39 0.27 0.22 0.34 112 115 113 94 1,656 76 1,440 1,167 838 991 327 494 693 85 77 50 92 74 51 92 81 60 69 73 67 77 89 72 264 262 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Debt Networth Debt-Equity (x) Receivable Days Inventory Da
Slide 30: To Summarize the Financial Performance
To Summarize the Financial Performance 1 4 EBDITA above industry average in both AgroChem and Pigments Consistently paying dividend. 2 5 Consistently Improving debt to ROCE above 13.5%+ for last 3 years. equity. D/E of less than 0.5 in past Endeavour is to improve RoCE. 3 years. 3 6 Consistent finan
Slide 31: Leadership and Management
Leadership and Management o
Slide 32: Leadership and Management: Founders
Leadership and Management : Founders Mr. Jayanti Patel Mr. Ashish Soparkar Executive Chairman Managing Director • 47 yrs of experience • 46 yrs of experience • Overseas international marketing • Overseas corporate affairs & finance • B.E (Chemical) • B.E (Chemical Mr. Natwarlal Patel Mr. Ramesh Pate
Slide 33: Leadership and Management: Independent Board
Leadership and Management : Independent Board Sri Manubhai K. Patel Prof. (Dr.) Ganapati Yadav CA with 37+ years of experience in Forex, Treasury and Credit Vice Chancellor of the Institute of Chemical Technology. With numerous Management. honours and distinctions for his contributions to green chem
Slide 34: Leadership and Management: Second Generation
Leadership and Management : Second Generation Mr. Ankit Patel Mr. Darshan Patel CEO (MOL) COO (Pigments) MOL • More than 12 yrs of experience • More than 10 yrs of experience • Executive Director at MFL • Executive Director at MFL • M.S. (Engg Management) from Australia • Heads Pigments & MBA from S
Slide 35: Group's Core Values and The Corporate Vision
Group’s Core Values Integrity Environment, Credibility Law abiding Being Human The Company will make The Company respects The Company abides by The Company will maintain Health and Safety efforts towards building a and ensures compliances the principle of humanity complete honesty and The Company is
Slide 36: From the Desk of the Chairman – The growth is inevitable
From the Desk of the Chairman – The growth is inevitable Good and transparent business practices. “We are committed to follow good and transparent business practices. These Ethical Values shall be the base and the backbone for all our endeavors to achieve our ‘Corporate Vision’. Committed to Core Bu
Slide 37: Investment Rationale
Investment Rationale o
Slide 38: Why Meghmani Organics
Why Meghmani Organics Understands Chemicals since 1986, Established Market Position along with management expertise across Pigments, Agro Chemicals and Basic Chemicals • largest producer of copper phthalocyanine (CPC) blue and is among the top 3 pigment blue players globally • largest, Integrated ma
Slide 39: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- March 2023 (IN %) NSE Ticker MOL BSE Ticker MOL | 543331 Share Price (₹)^ 85.2 Market Cap (₹ Crore)^ 2,165 PROMOTER 49.48% % Free Float^ 50.52 FIIs 1.53% Free float market cap (₹ Crore)^ 1,100 DIIs 0.47% Shares outstanding^ 25.4 Crores Public 48.52% 3M A
Slide 40: Safe Harbor
Safe Harbor This presentation has been prepared by Meghmani Organics Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information
Slide 41: Meghmani Organics Ltd Registered & Corporate Office, Investor Relations
MEGHMANI ORGANICS LTD (CIN: L24299GJ2019PLC110321) REGISTERED & CORPORATE OFFICE: ‘Meghmani House’, Behind Safal Profitaire, Prahlad Nagar, Ahmedabad, Gujarat, 380015 Tel: +91 79 71761000 www.meghmani.com INVESTOR RELATIONS G.S.Chahal | CHIEF FINANCIAL OFFICER E: ir@meghmani.com