Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q2 FY23 Earnings Presentation
25 slides from Tata Chemicals's earnings presentation, Oct 27, 2022
Slide 1: Exchange submission letter for analysts/investors presentation
October 27, 2022 The General Manager The Manager, Listing Department Corporate Relations Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street Mumbai 400 051 Mumbai 400 001 Symbol: TATACHEM Scrip Code: 5
Slide 2: Investors Communication: Quarter & Half Year ended September 2022 Q2 FY23
Investors Communication ----------------------------- Quarter & Half Year ended September 2022 : Q2 FY23
Slide 3: Forward-looking statements disclaimer
“This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of thes
Slide 4: Tata Chemicals - Overview
Tata Chemicals - Overview
Slide 5: Company journey and footprint
Till FY21 FY19 FY20 FY18 Onwards Divestment of Urea Investment approval Completed and Phosphate for expansion of Demerger of Fertiliser Business Mithapur operations Consumer Products Business Entry into Fermentation and Silica platforms through 5,000 MT Prebiotic plant and Focused Chemistry Solution
Slide 6: India operations: products and installed capacity
India India Rallis India Limited1 Major Soda ash, Bicarb, Salt, Marine chemicals Prebiotics Crop Care, Crop Protection and Seeds Products and Cement Specialty silica (herbicides, fungicides and insecticides, etc) Soda Ash: 1,091,000 MTPA Installed Prebiotic: 5,000 MTPA Bicarb: 150,000 MTPA Capacity
Slide 7: Major products and installed capacity: US, UK, Kenya
US UK Kenya Major Soda Ash, Bicarb, Soda Ash Soda Ash Products Salt Soda Ash: 400,000 MTPA Installed 2,540,000 MTPA Bicarb: 130,000 MTPA 350,000 MTPA Capacity Salt: 430,000 MTPA Lostock & Winnington, Location Wyoming, US Middlewich, UK Magadi, Kenya 6
Slide 8: TCL Innovation Centre
TCL Innovation Centre ◊ 200+ Technically skilled Scientists in R&D ◊ 3 State-of-the-art innovation Centers ◊ Intellectual property |180 patents held; 114 Active Applications Rallis India R&D 7
Slide 9: Financial Highlights
Financial Highlights Quarter & Half Year ended September 2022 : Q2 FY23
Slide 10: Quarter highlights: revenue, EBITDA, debt
◊ Robust soda ash demand continues across all geographies and applications, pricing stable ₹ 4,239 Cr (CY) vs ₹ 3,022 Cr (PY) ◊ Input costs mainly energy continue to remain at elevated levels ₹ 920 Cr (CY) vs. ₹ 501 Cr (PY) ◊ EBITDA growth amidst a favorable market environment and a challenging cost
Slide 11: Consolidated and standalone quarterly results
Consolidated | ₹ Crore 3,995 4,239 EBITDA Profit Before Tax Profit After Tax 3,022 797 723 641 685 1,015 920 501 320 248 Q2 Sep 21 Q1 Jun 22 Q2 Sep 22 Q2 Sep 21 Q1 Jun 22 Q2 Sep 22 Q2 Sep 21 Q1 Jun 22 Q2 Sep 22 Q2 Sep 21 Q1 Jun 22 Q2 Sep 22 Revenue up by ₹ 1,217 Crore (↑40%) EBITDA up by ₹ 419 Crore
Slide 12: Consolidated and standalone half-year results
Consolidated | ₹ Crore 8,234 EBITDA Profit Before Tax Profit After Tax 6,000 1,935 1,520 1,326 1,102 748 590 YTD Sep 21 YTD Sep 22 YTD Sep 21 YTD Sep 22 YTD Sep 21 YTD Sep 22 YTD Sep 21 YTD Sep 22 Revenue up by ₹ 2,234 Crore (↑37%) EBITDA up by ₹ 833 Crore (↑76%) PBT up by ₹ 772 Crore (↑103%) PAT up
Slide 13: Highlights by business unit
India PY CY US PY CY Rallis PY CY Vol In ‘000MT ₹ Cr Vol In ‘000 MT Revenue 727 951 Soda Ash 178 154 EBITDA 87 118 Bi Carb 31 28 Soda Ash 617 561 PAT 56 71 Salt 320 303 ₹ Cr Revenue 847 1,185 ₹ Cr Highlights Revenue 867 1,179 ➢ Soda Ash demand supply EBITDA 193 294 EBITDA 196 211 situation continues
Slide 14: Segment revenues and results
Consolidated Standalone ₹ Crore Q2 Sep 21 Q1 Jun 22 Q2 Sep 22 Variance Q2 Sep 21 Q1 Jun 22 Q2 Sep 22 Variance Basic Chemistry Products 2,233 3,060 3,242 1,009 792 1,154 1,137 345 Segment Revenues Specialty Products 787 934 999 212 58 71 48 (10) Less: Inter Segment Revenue (2) (5) (9) (7) - - - - 3,0
Slide 15: Statement of Profit and Loss by unit
Statement of Profit and Loss for the quarter ended Sep 22 Units Consolidated TCL India US UK Kenya Rallis ₹ Cr PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var Revenues 3,022 4,239 1,217 847 1,185 338 867 1,179 312 416 651 236 140 251 111 727 951 224 EBITDA 501 920 419 193 294 101 196 211
Slide 16: Balance sheet summary
Consolidated Standalone Rs Cr 31-Mar-22 30-Sep-22 31-Mar-22 30-Sep-22 Non - Current Assets 25,098 26,324 14,170 14,771 Inventories 2,294 2,532 880 1,115 Investments 1,325 1,189 1,113 1,141 Trade Receivables 1,933 2,538 182 179 Cash and Cash Equivalents 1,311 645 493 91 Others Current Assets 1,882 1,
Slide 17: Revenue, EBITDA and PAT trends
Consolidated | ₹ Crore Standalone | ₹ Crore 4,50 0 3,995 4,239 1,40 0 1,225 1,185 4,00 0 3,481 1,115 2,977 3,023 3,142 1,20 0 931 841 847 3,50 0 3,00 0 2,606 2,636 1,00 0 812 828 Revenue 800 2,50 0 2,00 0 600 1,50 0 400 1,00 0 200 500 - - Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY
Slide 18: Energy Inputs and soda ash applications
Tata Chem Soda Ash : Market Applications Input Costs Consolidated Standalone Others, 17% Detergents, ₹ Crore Sep-21 Sep-22 Growth Sep-21 Sep-22 Growth 17% Revenue 3,022 4,239 847 1,185 Chemicals, Flat Glass, Cost of Production1 1,620 2,235 476 701 27% 17% Contribution 1,402 2,004 602 371 484 113 Con
Slide 19: Soda ash, bicarb and salt volumes
Soda Ash | In Kts Sodium Bicarbonate | in Kts Salt | in Kts India US UK Kenya India UK India UK 950 857 1,845 1,742 56 58 110 116 402 387 802 805 86 73 170 157 82 84 178 172 68 69 136 133 25 30 52 58 617 561 1,194 1,129 320 303 631 633 31 28 58 58 178 154 346 323 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 S
Slide 20: Soda ash volumes by unit
Domestic Domestic Exports India | In Kts US | In Kts 168 184 167 178 176 169 617 588 617 151 156 154 568 578 568 561 475 475 197 181 309 317 353 320 323 276 289 278 295 259 261 264 268 294 292 272 - - - - - - - - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY21 FY21 FY21 FY22 FY22 FY22 FY2
Slide 21: Strategic priorities by business
• Deliver consistent market and customer delivery performance through customer engagement TCL • Deliver capacity expansions on schedule - Soda Ash, Bicarb & Salt expansion on stream by FY23 & FY24 • Continue focus on cost management • Extend Portfolio offerings: New product introductions, plug portf
Slide 22: Capacity expansion: current status
Expansion - Ongoing Expansion - Planned Capacity Incremental Capacity Products (Lacs MT) H1 FY23 H2 FY23 H1 FY24 H2 FY24 Products (beyond Ongoing Expansion) Expansion Soda Ash 2.3 Soda Ash ~30% 0.45 1.85 Bicarb 0.7 Bicarb ~40% 0.70 Salt 3.3 3.30 Silica 5x Till September 22 Target Completion by Mar 2
Slide 23: ESG initiatives
ESG initiatives Priorities Focus Areas • CCU unit in UK operational Climate Carbon Emission Reduction • Solar Power transition at Mithapur and Magadi under planning stage Change • Energy audit and efficiency initiatives under implementation at Mithapur • Piloting Concentrated Solar Thermal at Rallis
Slide 24: Awards and recognition
Tata Chemicals receives award for The Economic Sustainable Organizations - 2022 Tata Chemicals Aniali Limestone Mine Awarded Five-Star Rating by GOI for the fourth year in a row Rallis India Limited has received Indian Chemical Council (ICC) K. V. Mariwala award Rallis India Limited bags two awards
Slide 25: Chemistry of Resilience: contacts
For any queries please contact below : Sriram Srinivasan ssriram@tatachemicals.com Sameer V Kulkarni sakulkarni@tatachemicals.com Gavin Desa gavin@cdr-india.com Chemistry of Resilience Suraj Digawalekar suraj@cdr-india.com 24