Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q4 FY23 Earnings Presentation
37 slides from Sudarshan Chemical Industries's earnings presentation, May 23, 2023
Slide 1: Investor Presentation Q4 FY23
Investor Presentation Q4 FY23
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements • These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: Company Overview
COMPANY OV ae ERVIEW
Slide 4: Our Company at Glance
Our Company at Glance We are a leading world-class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants ~$287Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 5: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. Sudarshan Mexico S. de R.L de CV. JAPAN Sudarshan
Slide 6: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider A consistent performance with Sales growing at a 218% EBITDA ₹ Cr 146% CAGR of 10% and Operating profit growing at a CAGR Domestic Revenue ₹ Cr 2,302 275 of 8% despite exiting some of the businesses. Exports Revenue ₹ Cr 2,201 FY23 has
Slide 7: Pigments Application - a global $8.6bn market opportunity
Pigments Application - a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 8: Pigment Industry View
Pigment Industry View • Tightening monetary policies by major central banks leading to demand contraction across major economies • Stabilization of RM prices and continuing high energy costs in Europe • Europe: Persistent geopolitical pressure resulting in higher energy cost resulting in flat demand
Slide 9: Quarterly Performance
Quarterly Performance
Slide 10: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 691 86 85 45 627 +10% 528 33 42 13.7% 12.3% 7.9% 7.1% 4.7% 1 0.1% Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 * EBITDA as percen
Slide 11: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights - Key Ratios Current Ratio Cash conversion cycle 1.1 1.1 1.1 112 96 74 Earnings per Share 6.5 4.7 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Net Debt to Equity Ratio Debt ₹ Cr Net Debt to EBITDA 0.1 4.5 Q4 FY22 Q3 FY23 Q4 FY23 1.2 3.8 1.0 1.0 2.9 793 946 797 Q4
Slide 12: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 594 41.0% 41.5% 76 558 40.0% 73 +6% 483 38 13.7% 12.3% 7.8% Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 ➢ Subdued demand across geographies and
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights - Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 301 293 286 272 +5% +8% 251 232 Mix % 51% 52% 51% 49% 48% 49% Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr 412 388 +6% 181 340 171 +6% 143 Mix % 69% 70%
Slide 14: Annual Performance
Annual Performance
Slide 15: Annual Performance Highlights - Consolidated Financials
Annual Performance Highlights - Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) +1% -14% +10% 2,302 288 140 2,201 275 130 246 1,864 109 1,708 211 1,593 204 81 15.4% 14.4% 12.8% 12.5% 7.5% 6.4% 45 9.2% 5.9% 5.1% 1.9% FY19 FY20 FY21 FY22 FY2
Slide 16: Financial Highlights
Financial Highlights Earnings per Share Return on Capital Employed Gross Block ₹ Cr Cash conversion cycle Working capital % to 1,629 Income from Operations 15.9% 15.3% 14.8% 113 1,235 93 96 20.2 18.8 11.5% 86 863 932 74 15.7 11.7 641 6.1% 6.5 28% 23% 24% 25% 20% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY
Slide 17: Annual Performance Highlights - Pigment Business
Annual Performance Highlights - Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) -2% +9% 2,079 43.4% 43.1% 281 2,020 42.8% 269 41.8% 1,753 40.2% 234 1,590 211 1,477 194 16.0% 14.3% 14.7% 13.3% 9.3% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY2
Slide 18: Pigment Business: Overseas geographies continue to have steady growth
Pigment Business: Overseas geographies continue to have steady growth Domestic Revenue ₹ Cr Export Revenue ₹ Cr +9% +2% +9% +4% 1,033 1,055 1,024 987 897 856 806 783 756 721 Mix % 51% 51% 49% 51% 51% 49% 49% 51% 49% 49% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ➢ With the investment in infra
Slide 19: Pigment Business: Shift towards Specialty to continue
Pigment Business: Shift towards Specialty to continue Specialty Revenue ₹ Cr Non-Specialty Revenue ₹ Cr +9% +4% +8% +1% 1,435 637 644 1,383 1,204 549 1,109 481 1,005 471 Mix % 68% 70% 69% 68% 69% 32% 30% 31% 32% 31% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ➢ Focus on growing our Specialty p
Slide 20: Business Outlook
Business Outlook
Slide 21: Business Outlook - FY24 and beyond
Business Outlook - FY24 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Gradual sales ramp-up of new • Expanding product portfolio to build • Building one of the most efficient Capex's expec
Slide 22: About Sudarshan
ABOUT SUDARSHAN
Slide 23: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 24: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 - 1989 1989 - 2006 2006 - 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 25: Our Governance Structure - Board Of Directors
Our Governance Structure - Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. D. N. Damania Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani (Non-Executive, (Non- Executive, (Non-Executive, (Non-Execut
Slide 26: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 27: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 28: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 29: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 30: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 31: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 32: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERCIAL EXCELLENCE ENVIRONMENT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practice
Slide 33: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 34: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 35: Shareholder Information
Shareholder Information Share Information (as at 31st March 2023) Shareholding Pattern (as at 31st March 2023) Promoters 35.82% NSE Ticker SUDARSCHEM FIIs and FPIs 3.12% BSE Ticker 506655 Mutual Funds 12.29% Others 48.77% Market Cap (₹ mn) 27,213 % free-float 64.18% SUDARSHAN NIFTY 500 Free-float ma
Slide 36: Awards And Accolades
Awards And Accolades Mahatma Awards 2021 in CSR Global CSR Award 2020 HR Excellence Award 2018 Brands of Maharashtra 1st in Chemicals & Fertilizer Excellence Platinum Category Sector Global Clean Village Award - ‘Dream Company to Work For’ Global WasteMet Award 2018 DMAI Award for Energy Energy & En
Slide 37: Thank You
THANK YOU Investor Relations at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 7th Floor, Eleven West Panchshil, Survey No. 25, Near PAN Card Club Road, Baner, Pune – 411 045, Mahar
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