Dcw Ltd. · NSE:DCW
Dcw — Q1 FY2022 Earnings Presentation
38 slides from Dcw's earnings presentation, Aug 3, 2021
Slide 1: Investors' Presentation cover letter to stock exchanges
DCW LIMITED August 03, 2021 To, National Stock Exchange of India Ltd. | BSE Limited Exchange Plaza Bldg. Department of Corporate Services, 5th Floor, Plot No.C-1 1st floor, New Trading Ring ‘G’ Block, Near Wockhardt, Rotunda Building, Bandra Kurla Complex Phiroze Jeejeebhoy Towers, Mumbai 400 051. D
Slide 2: Investor Presentation - Q1FY22
LIMITE De REED INVESTOR PRESENTATION- Q1FY22
Slide 3: Disclaimer
DISCLAIMER The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate only as of the date it was originally issued. The figures mentioned in the data are rounded off. DCW Limited (“DCW” or the Company) strictly deni
Slide 4: Business Segments
Business Segments Financial Overview
Slide 5: Company Overview
pel VC] WY)el 3 Overview: * Established as Dhrangadhra Chemical Works in 1939 at Dhrangadhra, Gujarat as India’s first Soda Ash plant. Expanded, diversified and modernized its operations with a diversified range of products for supply to customers in both, domestic and international markets since ia
Slide 6: Segment Overview
Segment Overview Specialty Chemicals Intermediate Chemicals Commodity Chemicals Synthetic HCl, Utox, Liquid Chlorine, Caustic ae Soda Xa) As Sodium Bicarbonate, etc. Une) . Synthetic Y Y One of the ¥ Situated at ¥ Situated at rutile or v Situated at Y Sole largest, ¥ Situated at Sahupuram Dhrangadhr
Slide 7: Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals
Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals [ned Niche, Diversified Product Mix Moving Up The Value Chain Y Diversified product mix of Commodity, Intermediate Y . . . . . and Specialty Chemicals Increasing the contribution from high value, high margin Speci
Slide 8: Evolution — Moving Up The Value Chain
Evolution — Moving Up The Value Chain The Story So Far : Well Established Commodity Chemicals Player ? Synthetic Iron Oxide (SIOP) Plant 2017 @ Country’s first and 1970 only C-PVC plant ®synthetic Rutile and Integrated with technical PVC Resin plant license from Arkema, France 2007-2008 1965-1966 co
Slide 9: Focus on Sustainable Growth & Long Term Value Creation
Focus on Sustainable Growth & Long Term Value Creation Tal cctaate] male cela) Ly LN Se acclaare|e cele Sustainable Growth Increasing share of =" Our demand for =" Government’s thrust Specialty Chemicals =" Re-Engineering various products on Agriculture and plants to give like PVC, CPVC, Constructio
Slide 10: Sahupuram facility advantages and technology
» India’s sole manufacturer of C- >» Sahupuram facility situated in > 58 MW Cogen Power Plant + » Over 2,000-acre land at PVC with licenced technology the vicinity of the port 12 MW DG sets for backup at Sahupuram facility provides from Arkema (one of the four provides logistical advantage Sahupuram
Slide 11: Self-Sufficiency — CPP & Use Intermediate Products for Value Added Products
Self-Sufficiency — CPP & Use Intermediate Products for Value Added Products . ow | Sahupuram Facility Flow Dhrangadhra Facility Flow 3 5 = 5 >| Hydrogen __§_ eee . _ 22 _ ai) E Electrolysis | : al gl 8 | |e = 2 & —- Boiler —> a cd PVC Plant Chlorine HC Processing , Steam —-——————> Steam | A a0 beh V
Slide 12: Board of Directors — Wide Spectrum of Experience
Board of Directors — Wide Spectrum of Experience O Mr. Pramod Jain, Chairman & Managing Director MLL ULB YC) a Pe cel Mr. Vivek Jain, Managing Director Mr. Mudit Jain, Managing Director
Slide 13: Qualified Management with Deep Understanding of Chemicals Sector
Qualified Management with Deep Understanding of Chemicals Sector @. Dcuw Mr. Amitabh Gupta, CEO Mr. S. Ganapathy, COO Mr. Vimal Jain, CFO Ve lien esd Celtel e Waele Le ciiimaeeci rls
Slide 14: State Of The Art, Strategically Located Manufacturing Facilities
State Of The Art, Strategically Located Manufacturing Facilities Dhrangadhra Facility Products Manufactured: Soda Ash, Ammonium Bicarbonate, Sodium Bicarbonate
Slide 15: Our Esteemed Clientele
Our Esteemed Clientele Commodity Chemicals Nyy lathe alte
Slide 16: Company Overview
Company Overview Financial Overview
Slide 17: Capacity Overview
Capacity Overview 0: Ny oar Tia mean lerel es Commodity Chemicals uD me Set") Teel tts ase lets ase lets aS): ae elite Capacity: Capacity: Capacity: Capacity: Capacity: Capacity: 10,00 TPA Vy OO 42,000 TPA 90,000 TPA 96,000 TPA 1,08,000 TPA
Slide 18: C-PVC — A Niche Play
C-PVC — A Niche Play Sole manufacturer of C-PVC in India C-PVC Business Overview Revenue (INR Million) Sole manufacturer of C-PVC in India with technical license from Arkema, France 1486 Commenced operations at Sahupuram facility in 2017, successfully ramped-up utilisation since then 1029 Key client
Slide 19: SIOP — One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments
SIOP — One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments a Intermediate Chemicals provide high self-sufficiency and operating leverage to SIOP Business SIOP Business Overview Revenue (INR Million) * World’s first commercial scale Synthetic lron Oxide Pigment to prod
Slide 20: PVC — Favourable market dynamics
PVC — Favourable market dynamics With favourable market dynamics, PVC is expected to drive the next leg of growth in commodity chemicals PVC Business Overview Revenue (INR Million) * DCW’s PVC plant is situated at Sahupuram, Tamil Nadu 7082 * Well positioned to take the advantage of growing domestic
Slide 21: Caustic Soda — Cautious, Calibrated Approach For Production
Caustic Soda — Cautious, Calibrated Approach For Production Due To Recent Fall In Prices Company posted healthy ~11.5% EBIT Margin & ~70% utilisation as of FY20 despite industry headwinds Caustic Soda Business Overview Revenue (INR Million) * Pioneer of Caustic Soda manufacturing in India * DCW’s ca
Slide 22: Soda Ash - Consistent, High Margin Commodity Business
Soda Ash - Consistent, High Margin Commodity Business Long term steady performance for key operating matrices - production and capacity utilisation Soda Ash Business Overview Revenue (INR Million) * DCW’s soda ash plant is situated at Dhrangadhra, Gujarat * Company’s soda ash business witnessed robu
Slide 23: Intermediate Chemicals — Effectively Complements Other Segments
Intermediate Chemicals — Effectively Complements Other Segments 0) Intermediate Chemicals Overview * Wide range: Intermediate chemicals ensure self-sufficiency and additional source of revenue * Flexibility: The intermediate chemicals are either used to make other products or sold in the open market
Slide 24: Intermediate Chemicals — Product Overview
Intermediate Chemicals — Product Overview Intermediate Chemical Capacity (TPA) Application Liquid Chlorine 36,000 Captive Consumption - C-PVC Hydrochloric Acid 90,000 Captive Consumption — Synthetic Rutile Trichloroethylene 7,200 Sold in open market Ferric Chloride 6,000 Captive Consumption — SIOP U
Slide 25: Financial Overview
Company Overview Business Segments Financial Overview
Slide 26: Q1FY22 Key Highlights
Q1FY22 KEY HIGHLIGHTS Speciality Chemicals Revenue up by 83% YoY EBITDA contribution 30%+ Net Debt: Equity at 0.68 ason FY21 Higher Synthetic Rutile Cash PAT at INR Y/ Shipments in QIFY22 as a ede) Wilt
Slide 27: Q1FY22 Result — Key Highlights
Q1FY22 RESULT — KEY HIGHLIGHTS Q1FY22 YoY ANALYSIS In INR Million Aa LUIS) EBITDA & EBITDA MARGIN PBT & PBT MARGIN PAT & PAT MARGIN 5205 11.7% 11.4% ————__» 596 134 9 6% 207 2846 33% 1 334 79% 1 % 4% Q1FY22 f T 1 5.5% Q1FY22 1g 1 1 -156 Q1FY21 Q1FY22 Q1UFY21 Q1FY22 3.5% 98 Q1FY22 PAT includes except
Slide 28: Segmental Performance - Revenue
SEGMENTAL PERFORMANCE Le} [ney Crus Q1FY22 eye NA} ey Nee PVC 2,466.0 847.9 190.8% 2,591.6 -4.8% 7,081.6 4,541.0 55.9% Caustic Soda 1,654.1 1,213.4 36.3% 809.1 104.4% 3,557.1 4,675.3 “23.9% Soda Ash 407.1 366.9 11.0% 448.9 -9.3% 1,787.0 1,982.6 “9.9% C-PVC 433.9 265.9 63.2% 459.1 5.5% 1,485.7 1,029.
Slide 29: Segmental Performance - EBITDA
SEGMENTAL PERFORMANCE Le] [ney SY-To iTV aR) Q1FY22 Q1FY21 er 4 PVC 91.3 44.3 105.9% 486.9 -81.3% 1,141.8 -133.4 N.A Caustic Soda 249.1 125.7 98.2% 10.7 3536% 157.4 799.0 -80.3% Soda Ash 11.0 30.3 -63.6% 25.4 -56.7% 149.8 408.0 -63.3% C-PVC 164.3 94.7 73.4% 184.4 -10.9% 551.6 291.5 89.2% SIOP 30.3 -
Slide 30: PVC Business - Financial & Operating Metrics
PVC Business- Financial & Operating Metrics Key Financial Metrics Tai ool Team INR MVAT Leda) Q1FY22 QIUFY21 YoY% Q4FY21 Revenue from Operations 2,466.0 847.9 190.8% 2,591.6 -4.8% 7,082 4,541 EBITDA 91.3 44.3 105.9% 486.9 -81.3% 1,141.8 -133 EBITDA Margin (%) 3.7% 5.2% -150 bps 18.8% -1510 bps 16.1%
Slide 31: Caustic Soda Business - Financial & Operating Metrics
Caustic Soda Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) ohn oy. ohh val YoY% fol pail Revenue from Operations 1,654.1 1,213.4 36.3% 809.1 104.4% 3,557 4,675 -23.9% EBITDA 249.1 125.7 98.2% 10.7 3536% 157 799 -80.3% EBITDA Margin (%) 15.1% 10.4% 470 bps
Slide 32: Soda Ash Business - Financial & Operating Metrics
Soda Ash Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) ohn oy. ohh val YoY% fol pail Revenue from Operations 407.1 366.9 11.0% 448.9 -9.3% 1,787 1,983 -9.9% EBITDA 11.0 30.3 -63.6% 25.4 -56.7% 149.8 408 -63.3% EBITDA Margin (%) 2.7% 8.3% -560 bps 5.7% -30
Slide 33: C-PVC Business - Financial & Operating Metrics
C-PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q1FY22 Q1FY21 A (obs Q4FY21 Revenue from Operations 433.9 265.9 63.2% 459.1 -5.5% 1,486 1,029 44.3% EBITDA 164.3 94.7 73.4% 184.4 -10.9% 552 291 89.2% EBITDA Margin (%) 37.9% 35.6% 230 bps 40.2% -230 bps
Slide 34: SIOP Business - Financial & Operating Metrics
SIOP Business- Financial & Operating Metrics Key Financial Metrics Tai ool Team INR MVAT Leda) onl p72 outa eal YoY% Q4FY21 Revenue from Operations 188.3 103.0 82.9% 224.5 -16.1% 598 396 EBITDA 30.4 41 - 49.4 -38.5% 98.5 -26 EBITDA Margin (%) 16.1% -4.0% - 22.0% -590 bps 16.5% -6.5% Key Operational
Slide 35: Q1FY22 Result — Profit & Loss Statement
Q1FY22 RESULT — PROFIT & LOSS STATEMENT en ali) Syl a py, yl aps FY21 FY20 Net Revenue from Operations 5205.1 2845.9 82.9% 14643 12773 14.60% Other Income 22.4 8.2 171.6% 113 85 32.70% Total Income 5227.4 2854.1 83.2% 14756.0 12858.0 14.8% coGs 3235.6 1258.1 157.2% 7561 6360 18.90% Gross Profit 1969
Slide 36: FY21 Result — Balance Sheet
FY21 RESULT — BALANCE SHEET Asset (INR Million) FY21 4) MEL ey ia toem Net ced ad) FY21 FY20 Non-Current Assets Equity & Liabilities Property, Plant & Equipment 14,069 14,670 Equity Share Capital 522 522 Capital Work in Progress 38 125. Other Equity 6,350 6,256 Financial Assets Total Equity 6,872 6,
Slide 37: Historical Performance at a Glance
HISTORICAL PERFORMANCE AT A GLANCE In INR Million REVENUES! EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 15.1% 38 14,663 12.2% mg? .3% : 12.1% 07 13,528 i 1,655 1550 -0.3%EVI9 Y21 -2.1% L a i L : -268 FY19 FY20 FY21 FY19 FY20 FY21 LEVERAGE ANALYSIS RETURN METRICS (%) 1. °° 0.82 0.73 12.5% 13.3% 6
Slide 38: For Further Queries
FOR FURTHER QUERIES: Mr. Dilip Darji Sr. General Manager (Legal) & Company Secretary Email: dilip.darji@dcwltd.com pa) a LIMITED DICKENSON Mr. Chintan Mehta Email: dcw@dickensonworld.com Contact no: +91 9892183389