Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Q4 FY2024 Earnings Presentation
50 slides from Himadri Speciality Chemical's earnings presentation, Apr 26, 2024
Slide 1: Exchange filing cover letter - Investor Presentation
Ref. No: HSCL / Stock-Ex/2024-25/15 Date: 26/04/2024 E-mail: monika@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, 25th Floor, Bandra Kurla Complex, Dalal Stree
Slide 2: Where Innovation Meets Sustainability
WHERE INNOVATION MEETS SUSTAINABILITY Sustainable High Growth Capital Disciplined Business Opportunity Balance Sheet Investor Presentation | April 2024
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: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition
Slide 5: Strong and Sustainable Growth
Strong and Sustainable Growth RECORD SALES RECORD EBITDA IN RECORD PAT IN VOLUMES DEBT FREE COMPANY IMPROVING ROCE Q4FY24 Q4FY24 IN Q4FY24 Sales Volumes of EBITDA increased PAT increased by Cash balance of 28% (excl. 140,317 MT in by 45% to Rs. 177 49% to Rs. 115 Rs. 142 Crores as investment & CWIP)
Slide 6: Performance Trajectory Continues
Performance Trajectory Continues Sales Volume (MT) Revenue (Rs. in Crs) Sales Volumes Consistently increasing volumes for existing business and addition of new speciality product 1,40,317 1,177 1,24,024 1,029 1,053 1,005 1,10,211 951 99,989 1,01,030 Revenues Revenue at same level due to reduction in
Slide 7: Performance Trajectory Continues
Performance Trajectory Continues EBITDA (Rs. in Crs) PAT (Rs. in Crs) EBITDA Change in Product Mix and Operating Efficiency 177 115 169 108 156 101 131 88 122 77 PAT Capital Disciplined Growth with the aim to improve shareholder returns Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24
Slide 8: Performance Trajectory Continues
Performance Trajectory Continues Sales Volume (MT) Revenue (Rs. in Crs) EBITDA (Rs. in Crs) PAT (Rs. in Crs) +18% 0% +55% +98% 4,75,582 4,172 4,185 632 411 4,03,826 408 208 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Increase in profitability due to consistent move towards value added products On Standa
Slide 9: Capital Disciplined Balance Sheet
Capital Disciplined Balance Sheet Total Borrowings (Rs. In Crs) Cash & Cash Equivalents (Rs. In Crs) Net Debt ( Rs. In Crs) 836 742 583 719 636 578 600 315 200 263 136 -142 Mar-21 Mar-22 Mar-23 Mar-24 Mar-21 Mar-22 Mar-23 Mar-24 Mar-21 Mar-22 Mar-23 Mar-24 8
Slide 10: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition 9
Slide 11: EcoVadis Rating: Silver Medal
EcoVadis Rating : Silver Medal Himadri Speciality Chemical Ltd has recently been awarded with EcoVadis Silver Medal. This recognition ranks Himadri in the top 23% of the highest-rated companies in the world amongst more than 100,000+ rated companies. EcoVadis is one of the world’s largest and most t
Slide 12: Direct Signatory of UNGC
Direct Signatory of UNGC (United Nation Global Compact) We've joined the United Nations Global Compact (UNGC) as a direct signatory. This marks a pivotal moment for us, as it demonstrates our alignment with global sustainability principles and our commitment to upholding ethical business practices o
Slide 13: Where Sustainability Meets Innovation
Where Sustainability Meets Innovation POWER THE FUTURE Transformation Unfolds : From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity We will address substantial part of the critical raw material requirements of Lithium-Ion Batteries 12
Slide 14: Sustainable business model powered by in-house R&D
Sustainable business model powered by in-house R&D Addressing the need for a More than 90% of the green, long-term EV and power requirement being renewable energy solution met by inhouse generated by providing critical raw clean and green power material Energy Conservation through Waste Heat Recover
Slide 15: Net Zero Roadmap
Net Zero Roadmap Research Adapt • Explore innovative methods for capturing • Implement new energy sources and and transforming carbon emissions. technology advancements. • Utilize upcoming technologies to capture • Integrate renewable energy solutions for and convert carbon dioxide into value- reduc
Slide 16: Net Zero Roadmap (Scope 1, 2 & 3)
Net Zero Roadmap (Scope 1, 2 & 3) Scope 1,2 & 3 targets include science-based projects HIMADRI’S ROAD MAP aligning MIT-SLOAN En-roads climate simulator OUR NET ZERO To Scope 3 – Baseline Year 2023 AMBITION Scope 1 & 2 – Baseline Year 2021-22 Assumption: India will be regulated Reduce Packaging Emiss
Slide 17: Sustainability Objectives 2023-24 (Progress)
Sustainability Objectives 2023 – 24 (Progress) Objectives Measures Target FY 23-24 Progress FY 23-24 Main Domain UNGC -SDGs FY 23-24 vs Plan Progress Vison Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1() <1 1.18 People By 2025, Reduce Energy Intensity per metric tonne of
Slide 18: Sustainability Objectives 2024-25
Sustainability Objectives 2024 – 25 Objectives Measures Target FY 23-24 Progress FY 22-23 Main Domain UNGC -SDGs FY 24-25 Vision Zero Accident / Incident By 2025, Loss Time Injury Frequency Rate below 1(Vs 2021) <1 1.18 2.27 People By 2025, Reduce Energy Intensity per metric tonne of product sold En
Slide 19: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition 18
Slide 20: Capex - Carbon Black Expansion
Capex – Carbon Black Expansion Brownfield expansion of a new speciality carbon black line of 70,000 MTPA CAPEX TO MORE Increasing the total speciality carbon black capacity to 130,000 MTPA making it world’s largest speciality carbon THAN DOUBLE black capacity at single site SPECIALITY CARBON BLACK E
Slide 21: Applications - New Speciality Carbon Black Grades
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades ONYX JETEX ELECTRA KLAREX Speciality Carbon Blacks are Speciality blacks are designed to KLAREX, “clean” speciality blacks Speciality blacks offer low sulfur, premium grades that offer deep provide reliable color a
Slide 22: Applications - New Speciality Carbon Black Grades
New Speciality Carbon Black Grades 7 Speciality Black Series with more than 55 Grades COLORX BARONX VIRTEX COLORX is a powder black that BARNOX is latest innovation in Virtex black carbon series are for function exceptionally well as a speciality blacks and is a high performance specialiy tyres Appl
Slide 23: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition 22
Slide 24: Sicona Acquisition - Initiative in line with long term strategy
Sicona Acquisition- Initiative in line with long term strategy Why Sicona Investment • Sicona’s current generation silicon-composite anode technology delivers 50% to 100% higher capacity than conventional graphite anodes Sicona is an innovative Australian startup • Its anode materials can deliver mo
Slide 25: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition 24
Slide 26: Invati Creations - Acquisition Highlights
Invati Creations - Acquisition Highlights About Invati Creations Acquisition cost • Invati, founded by alumni from IIM Kolkata and IIT Kharagpur, has a strong focus on engineering Lithium-ion electrode materials for efficient energy 40% stake for a storage with higher energy density and longer batte
Slide 27: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition 26
Slide 28: Himadri LFP Cathode Vision
Himadri LFP Cathode Vision Bringing breakthrough Innovation to Sustainable Sourcing the Indian and Global LiB Industry To produce 200,000 MTPA of Lithium Iron Phosphate (LFP) Cathode Active Material, catering to 100 GWh of Li-ion o Long term partnership with lithium Battery, in phases in 5-6 years o
Slide 29: Where we play a role
Where we play a role HIMADRI’S PRESENCE Lithium Chemicals Cathode Active Material Upstream Downstream Refining of Lithium Best in Class & Exploration & Mining Concentrate to Lithium Sustainable Cathode Cell Manufacturing Carbonate and Lithium Active Material Hydroxide Production 28
Slide 30: Cathode Material Dynamics: Himadri's Strategic Advancements
Cathode Material Dynamics : Himadri’s Strategic Advancements Pioneering Innovation and Sustainable Growth in Cathode Material Landscape Large Global and Domestic Opportunity Market Projection : Cathode Material demand to reach 9.4 million tonnes annually by 2030 for global LiB cell production Domest
Slide 31: Sustainable Financial Performance
Sustainable Financial Performance ESG-focused innovations Capex – Speciality Carbon Black Expansion Sicona- 12.79% Acquisition Invati Creations - 40% Acquisition Himadri LFP Cathode Capex Birla Tyres Ltd - Acquisition 30
Slide 32: Birla Tyres Ltd - Acquisition Highlights
Birla Tyres Ltd - Acquisition Highlights ▪ Himadri Speciality Chemical Ltd (HSCL, Strategic Partner) along with Resolution Applicant - Dalmia Bharat Refractories Limited (DBRL) participated in the corporate insolvency resolution process of Birla Tyres Limited. ▪ LOI from the Resolution Professional
Slide 33: Value Acquisition
Value Acquisition The total acquisition cost is Rs. 306 Crores. Additional capex is required to make the plant fully operational. For Himadri Speciality Chemical Limited The replacement cost Time consumed to Forward integration Eligible for investment Sufficient land available for creating such a cr
Slide 34: Birla Tyres Limited - Turnaround Opportunity
Birla Tyres Limited – Turnaround Opportunity Having successfully forward integrated from Oil to Carbon Black, then to Speciality Carbon Black, Himadri stands at the threshold of an exciting transformation moving forward towards end customer, venturing into the world of Tyres Existing capability Stra
Slide 35: Journey of Transformation
JOURNEY OF TRANSFORMATION 34
Slide 36: HSCL: Transformation Unfolds
HSCL : Transformation Unfolds From Growing Carbon Value Chain to Promising Mobility and Energy Storage Opportunity 2011 to 2021 Portfolio of Few Promising Growth Products » Aluminium Grade Pitch » Heavy Creosote Oils Opportunity » Anthracene Oil/Carbon Black » Graphite Grade Binder Pitch 2010 » Grap
Slide 37: Applications across Industries
Applications across Industries Paints, Plastic & Fibre Graphite Electrodes Anti Corrosive Material Defence Construction Chemical Aluminium Lithium – Ion Batteries Infrastructure Rubber Industries Wood Preservative Oils Power Specialized Products 36
Slide 38: Marquee Clients across Industries
Marquee Clients across Industries The brand names/logos mentioned are the property of their respective owners and are used here for identification purpose only 37
Slide 39: Sustainable Growth in Core Business through Value-added products
Sustainable Growth in Core Business through Value-added products Our Core Business will continue to deliver strong growth Coal Tar Pitch Developed specialized pitch – one of the very few global manufacturers and Improved life of anodes through continuous process improvements Carbon Black Launched a
Slide 40: Positioned strong to cater the global demand for LiB raw materials
Positioned strong to cater the global demand for LiB raw materials LiB Growth Potential Li-ion battery demand is expected to grow by about 33% India Battery Energy Storage Demand annually to reach around 4,700 GWh by 2030.* ~4,700 260 ~6x 162 ~1,700 70 ~700 40 3 8 2022 2025 2030 2022 2025 2030 Mobil
Slide 41: LiB Recycling
Positioned strong to cater the global demand for LiB raw materials LiB Recycling Recycling of Lithium-ion Batteries(LiB) will play a significant role: 1. Lowering the dependency on mined minerals and providing a circular economy structure 2. Reducing the total CO2 emission The Global Availability of
Slide 42: Primary Cathode Active Material Used now - NMC & LFP
Primary Cathode Active Material Used now – NMC & LFP Safety Working of LFP battery fast charging Spec. capabilities energy LFP batteries use lithium iron phosphate as the cathode material alongside a graphite electrode with a metallic backing as the anode. cost Spec. power lifespan Unlike many catho
Slide 43: Key Takeaways
Key Takeaways Unparalleled access to growth opportunities High Value Product Strong Product Right Capacity Strong R&D Pipeline Clientele Leadership Diversified Global Cutting Edge Strategic End Markets Management Technologies Strong Brand Location Team Transformation Unfolds Addressing the needs of
Slide 44: Financial Performance
FINANCIAL PERFORMANCE Himadri 43
Slide 45: Standalone Profit & Loss Statement - Q4 & FY24
Standalone Profit & Loss Statement – Q4 & FY24 Particulars (In Rs. Crs) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Net Revenue From Operations 1,176.95 1,028.90 14.39% 1052.51 11.82% 4,184.89 4,171.84 0.31% Cost of Materials Consumed 852.68 782.05 756.34 3,035.15 3,267.14 Gross Profit 324.27 2
Slide 46: Consolidated Profit & Loss Statement - Q4 & FY24
Consolidated Profit & Loss Statement – Q4 & FY24 Particulars (In Rs. Crs) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Net Revenue From Operations 1,176.95 1,028.90 14.39% 1,052.51 11.82% 4,184.89 4,171.84 0.31% Cost of Materials Consumed 850.37 781.04 754.45 3,030.27 3,254.40 Gross Profit 326.5
Slide 47: Standalone Balance Sheet
Standalone Balance Sheet Particulars (in Rs. Crs.) Mar’ 24 Mar’ 23 Particulars (in Rs. Crs.) Mar’ 24 Mar’23 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2084.39 1729.97 EQUITY 2981.21 2215.60 Property, Plant and Equipment 1457.38 1431.78 Equity Share Capital 49.26 43.27 Capital work-in-progress
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (in Rs. Crs.) Mar’24 Mar’23 Particulars (in Rs. Crs.) Mar’24 Mar’23 ASSETS EQUITY AND LIABILITIES Non-Current Assets 2141.82 1793.04 EQUITY 3042.79 2277.69 Property, Plant and Equipment 1510.22 1488.13 Equity Share Capital 49.26 43.27 Capital work-in-progress 6
Slide 49: Cash Flow Statement
Cash Flow Statement Standalone Consolidated Particulars (Rs. Crs.) Mar-24 Mar-23 Mar-24 Mar-23 Profit Before Tax 573.14 271.81 573.86 280.25 Adjustments for: Non-Cash Items / Other Investment or Financial Items 70.86 103.69 75.40 98.96 Operating profit before working capital changes 644.00 375.50 64
Slide 50: Investor Relations contacts
Company : Investor Relations Advisors : CIN: L27106WB1987PLC042756 Mr. Somesh Satnalika Ms. Payal Dave : +91 9819916314 EVP - CTD & Strategy payal.dave@linkintime.co.in Email: ssatnalika@himadri.com Mr. Bhavya Shah: +91 8082748577 bhavya.shah@linkintime.co.in www.himadri.com www.orientcap.com 49
Himadri Speciality Chemical — Q4 FY2024 Earnings Presentation on 6ix