Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q1 FY2018 Earnings Presentation
47 slides from Himadri Speciality Chemical's earnings presentation, Aug 3, 2017
Slide 1: Stock exchange cover letter for investor presentation
Himadri Ref. No: HSCL / Stock-Ex/2017-18/047 Date: 3 August 2017 E-mail: blsharma@himadri.com Ref : Listing Code: 500184 Ref: Listing Code: HSCL BSE Limited National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, C-1, Block-G P. J. Towers, 25" Floor, Bandra Kurla Comple
Slide 2: Investor Presentation August 2017
(Formerly known as Himadri Chemicals & Industries Ltd.) INVESTOR PRESENTATION August - 2017
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himadri Speciality Chemical Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Impressive Growth with Sustainable Performance
Impressive Growth with Sustainable Performance Key Initiatives ✓ Increase in High Margin Products 25% 96% 330% ✓ Change in Customer Mix Text Here Text Here Volume (MT) EBITDA PAT ✓ Higher Utilization of Capacities Y-o-Y Growth 3
Slide 5: Performance Parameters
Performance Parameters Total Sales Volume (MT) EBITDA (Rs. Crs) +96.1% +25.3% 247 356,902 100 94,769 41% 75,661 27% of FY17 of FY17 EBITDA Volumes achieved 51 achieved 100 94,769 Q1FY17 Q1FY18 FY17 Q1FY18 Q1FY17 Q1FY18 FY17 Q1FY18 4
Slide 6: Long Term Debt reduced by Rs. 100 Crores
Long Term Debt reduced by Rs. 100 Crores In Rs. Crores Long Term Debt Working Capital Debt Net Debt +155 +69 -104 414 495 787 310 717 340 805 754 -19 -37 31-Mar-17 30-Jun-17 31-Mar-17 30-Jun-17 31-Mar-17 30-Jun-17 5
Slide 7: Standalone Profit & Loss
Standalone Profit & Loss Particulars (In Rs. Crs) Q1 FY18 Q1 FY17 Y-o-Y (%) Q4 FY17 Q-o-Q (%) Revenue from Operations 502.67 282.34 415.28 Excise Duty 50.35 27.28 39.68 Net Revenue From Operations 452.32 255.06 77.3% 375.60 20.4% Cost of materials consumed 320.80 161.20 252.42 Gross Profit 131.52 93
Slide 8: Himadri
_--) Himaadri
Slide 9: Financial Agenda
Fit for Future: Products & Value Creation Journey its Potential Looking back at Three by way of ▪ Accelerating Core Business Decades of Experience Vertical Integration ▪ Finding next Core Business Looking Forward with Financial Agenda Confidence
Slide 10: Leadership Position in our Products
Leadership Position in our Products Coal Tar Pitch Carbon Black 70% 17% Market Leadership as % of Total 85% Domestic Demand including Imports Source: Management Estimates (India Market Share) 9
Slide 11: Product Development was a Clear Focus
Product Development was a Clear Focus 2010 2017 Coal tar pitch – Binder grade Aluminium Grade Pitch Anthracene Oil/Carbon Coal tar pitch – Impregnating Graphite Grade Binder Pitch Black Oil/ CT Oil Carbon Black Graphite Grade Zero QI SNF Advanced Carbon Material (Quinolene Insoluble) coal tar PCE im
Slide 12: To make an Impact on the End Markets
To make an Impact on the End Markets Graphite Lithium – Ion Aluminium Missiles Electrodes Batteries Anti Corrosive Paints, Plastic & Rubber Industries Power Material Fibre Construction Wood Preservative Specialized Infrastructure Chemical Oils Products 11
Slide 13: If You Can Be One Thing, Be Dependable
If You Can Be One Thing, Be Dependable CTP Clientele CB Clientele Others Clientele 12
Slide 14: Rapid growth through R&D
Rapid growth through R&D » R&D Centre recognised by the Department of Science and Technology and the Department of Scientific and Industrial Research - Government of India » R&D Centre is an NABL (National Accreditation Board for Testing and Calibration Laboratories) - accredited lab » Research acti
Slide 15: Financial Agenda
Fit for Future: Products & Value Creation Journey its Potential Looking back at Three by way of ▪ Accelerating Core Business Decades of Experience Vertical Integration ▪ Finding next Core Business Looking Forward with Financial Agenda Confidence
Slide 16: Product Leadership – Accelerating Core Business
» Product Leadership – Accelerating Core Business ▪ Coal Tar Pitch ▪ Carbon Black ▪ Naphthalene ▪ Sulphonated Naphthalene Formaldehyde (SNF) 15
Slide 17: Coal Tar Pitch
Coal Tar Pitch Caters to more than Two-Third of demand for Indian Graphite and Aluminium Industries Supplier of upto 95% of Coal Tar Pitch requirements of certain Smelters One amongst the Few Global Manufacturers to Produce Zero QI (Quinolene Insoluble) – coal tar impregnated pitch and Advanced Carb
Slide 18: Graphite Grade Coal Tar Pitch
Critical Input in Downstream Industries Coal Tar Pitch Graphite Grade In Graphite Electrode Binder Pitch Manufacturing Graphite Grade Zero QI Coal tar Anode Impregnating Pitch Special Pitches Material In graphite electrode, nipple Used by DRDO in long range warhead missiles. In carbon composites, re
Slide 19: Inelastic & Growing Demand
Inelastic & Growing Demand » Inelastic Demand : Coal Tar Pitch is used in pre-baked anode in aluminium smelter to produce aluminium. Aluminium Smelting is a Continuous Process - Smelter cannot be stopped and restarted easily » Complex Chemical : Coal Tar Pitch is a Complex chemical with 22 Chemical
Slide 20: Capacity Built Up to Support Growth
Capacity Built Up to Support Growth Distillation Capacity Built Up in India » Raw Material Procurement: in MTPA 400,000 ▪ Largest Purchaser of Coal Tar in India from almost all domestic steel plants 137,500 ▪ Strategically imports Coal Tar based on prevailing global demand supply dynamics 12,500 74,
Slide 21: Carbon Black
Carbon Black Forward Integration to convert Coal Tar Oil into Carbon Black 3rd Largest Carbon Black Producer in India with Anything that is 120,000 MTPA manufactured Black has With Superior Inhouse Raw Carbon Black Material & R&D Capabilities launching Speciality Carbon Black range with niche applic
Slide 22: Benefits of Forward Integration
Benefits of Forward Integration Raw Material Leverage R&D Access to superior, consistent & Leveraged R&D strength to develop a customized Raw Material feed from range of speciality carbon black inhouse distillation units Raw products Material Leverage Leverage R&D R&D Power Generation Power Tail gas
Slide 23: Large Market Potential
Large Market Potential Indian Tyre - Commissioned Projects Speciality Carbon Black Rs. Crore in MTPA 915,000 21,000 17,000 49,000 India demand Global demand FY14 - 17 FY18 - 22E 2016 2016 Indian Tyre Market is ~ Rs. 500 Bn in FY16 Speciality black market in India is currently small at less than 5% o
Slide 24: Naphthalene
Naphthalene Value-additions through Capacity Refined Doubled for Naphthalene and refined Naphthalene SNF Also formulate Special Grade Naphthalene 23
Slide 25: Naphthalene Value Proposition
Naphthalene Value Proposition Special Grade Naphthalene Special Grade Naphthalene is formulated to cater customer's niche requirements in dyestuff and dyes intermediates application Naphthalene Moth Ball Moth Balls is made by using superior grade chemical composition and leading-edge techniques in c
Slide 26: Sulphonated Naphthalene Formaldehyde (SNF)
Sulphonated Naphthalene Formaldehyde (SNF) SNF – Next Generation Product for the Construction Chemical Industry (Admixture), Agro chemicals, Latex, Gypsum Largest Indian manufacturer of SNF with an installed capacity of 68,000 MTPA Highest Purity SNF manufactured from In-house produced Naphthalene P
Slide 27: High Performance Construction Chemicals
High Performance Construction Chemicals » Sulphonated Naphthalene Formaldehyde (SNF) is a speciality chemical condensate that helps improve concrete mixes by dispersing cement particles for extended workability and reinforcing compressive flexural strength ▪ Naphthalene, one of the by product of Coa
Slide 28: Future Products – Finding Next Core Business
»Future Products – Finding Next Core Business ▪ Advance Carbon Material 27
Slide 29: Advance Carbon Material
Advance Carbon Material Forward Integration from Coal Tar to Advance Carbon Material Anode Material used in Lithium-ion Batteries Only Producer of Advance Carbon Material in India Best in class Proprietary Technology With Cost Leadership 28
Slide 30: Application in Sunrise Sector
Application in Sunrise Sector Lithium-ion Battery Mobile Tablets Electric Vehicle Motor Train Others Digital Power Tool Laptop Energy Storage Cameras 29
Slide 31: At early stage of Growth
At early stage of Growth Global Shipments of Lithium-ion » First Indian Company to develop anode material of both Battery Anode Materials In Kt Synthetic and Natural varieties for lithium-ion batteries 369 ▪ Best-in-class Proprietary technology which involves Coal Tar 292 +26% treatment into Advance
Slide 32: Financial Agenda
Fit for Future: Products & Value Creation Journey its Potential Looking back at Three by way of ▪ Accelerating Core Business Decades of Experience Vertical Integration ▪ Finding next Core Business Looking Forward with Financial Agenda Confidence
Slide 33: Evolving…
Evolving… 2016 - 2017 • Transformed identity to 2008-2012 2013 - 2015 Himadri Speciality Chemical • Acquisition and Expansion of Limited SNF plant in Vapi and • Initiated a Brownfield • Commenced pitch melting Commission production of SNF project to enhance the CTD plant at Sambalpur, Odisha at Mahi
Slide 34: Presence at Strategic Locations in India
…with Presence at Strategic Locations in India… Product Capacity Plant Existing Capacity Coal Tar Distillation Capacity 400,000 Carbon Black – MTPA 120,000 Howrah Korba* Power Plant (Co. generation) – MW 20 Vapi Falta Hooghly Sambalpur* SNF - MTPA 68,000 Visakhapatnam All our facilities are Zero-Dis
Slide 35: Key Elements in Business Model
…supported by Key Elements in Business Model… R&D Centre at Mahistikry unit (Hooghly) - recognized by GoI* R&D Technical Know- Cutting-edge research and best-in-class technical capabilities how & Manpower Dedicated fleet of specially-designed 148 Tankers Storage & Raw material storage capacity of ar
Slide 36: Awards & Recognition
…with validation through Awards & Recognition 2013 ‘Best Large Corporate’ of WB in INR 1,000+ Cr Category 2014 ‘Highest Job Creator’ of WB in INR 1,000+ Cr Category 35
Slide 37: Value Creation Journey by way of Vertical Integration
Fit for Future: Products & Value Creation Journey its Potential Looking back at Three by way of ▪ Accelerating Core Business Decades of Experience Vertical Integration ▪ Finding next Core Business Looking Forward with Financial Agenda Confidence
Slide 38: Key Performance Indicator
Key Performance Indicator Total Sales Volume (MT) 356,902 299,137 272,771 263,151 259,968 FY13 FY14 FY15 FY16 FY17 37
Slide 39: Change in the Debt Composition
Change in the Debt Composition Total Debt Profile FY12 Total Debt Profile FY17 Rupee Debt 9.5% Rupee Debt 69.4% Dollar Debt 30.6% Dollar Debt 90.5% Change in Debt Composition from ~91% of Foreign Currency Loans to ~31% in FY17 38
Slide 40: Debt Repayment of over Rs. 500 Crores
Debt Repayment of over Rs. 500 Crores Rs. Crores Rupee Debt Dollar Debt $ million Net Debt Rs. Crores -66.3% 523 101 -35.8% 1,118 598 47 71 1,030 503 498 32 47 34 476 24 523 392 54 7 805 39 327 24 27 717 598 371 FY14 FY15 FY16 FY17 Rs. Crores 503 -63.1% 498 255 265 238 595 164 270 432 595 -59 -63 -3
Slide 41: Value Creation Journey by way of Vertical Integration
Fit for Future: Products & Value Creation Journey its Potential Looking back at Three by way of ▪ Accelerating Core Business Decades of Experience Vertical Integration ▪ Finding next Core Business Looking Forward with Financial Agenda Confidence
Slide 42: Strongly positioned to capture Growing Markets
Strongly positioned to capture Growing Markets Global Management Team Right Capacity Strategic Location High Value Product Product Cutting Edge Pipeline Leadership Technologies Strong Growing End Clientele Markets Strong R&D 41
Slide 43: Strategic Growth Priorities
Strategic Growth Priorities Carbon Black SNF Increase application of Increase in demand in Focus on Speciality Carbon lithium-ion batteries in the Widen the Product downstream industries with High Value-additions & Sunrise Sectors like Portfolio by Aluminium & Graphite Performance Electric Vehicles,
Slide 44: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : CIN: L27106WB1987PLC042756 CIN: U74140MH2010PTC204285 Mr. Somesh Satnalika Ms. Payal Dave / Ms. Hina Agarwal VP Strategy & Business Development +91 9819916314/ +91 9619906166 Email: ssatnalika@himadri.com Email: Payal.D
Slide 45: Impressive Growth with Sustainable Performance
Impressive Growth with Sustainable Performance Sales Volume of 94,769 MT; growth of 25% Y-o-Y EBITDA of Rs. 100 Crores; growth of 96% Y-o-Y PAT of Rs. 50 Crore; growth of 330% Y-o-Y Release: 3rd August, 2017, Kolkata Himadri Speciality Chemical Ltd, the largest vertically integrated Speciality Carbo
Slide 46: CEO commentary on results and performance
Commenting on the results and performance, Mr. Anurag Choudhary, CEO of Himadri Speciality Chemical Ltd said: “ Financial Year 2018 has started on a very good note. Your Company have delivered robust overall business performance. Our Product Mix is complemented with High Margin Products like Refined
Slide 47: About Himadri Speciality Chemical Ltd
About Himadri Speciality Chemical Ltd Himadri Speciality Chemical Ltd (“Himadri Speciality”) was established in 1987, is the largest vertically integrated speciality carbon company and the largest producer of coal tar pitch in India with headquarters in Kolkata, West Bengal. The Company is a leader
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