Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q1 FY23 Earnings Presentation
28 slides from Tata Chemicals's earnings presentation, Aug 9, 2022
Slide 1: Submission of Analysts/Investors Presentation
TI' ^-\ TATA August 9, 2022 The General Manager The Manager, Listing DePartment Corporate Relations Department National Stock Exchange of lndia Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street Mumbai 400 051 Mumbai 400 001 Svmbol: TATACHEM Sc
Slide 2: Investors Communication Q1 FY23
Investors Communication ----------------------------- Quarter Ended June 2022 : Q1 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: 3
3
Slide 5: Company journey and footprint
Till FY18 FY19 FY20 FY21 FY17 Divestment of Urea Divestment of Investment approval Completed Business Phosphate Fertiliser for expansion of Demerger of Business Mithapur operations Consumer Products Business Started to build 5,000 MT Prebiotic plant Acquired Silica Plant Focused Chemistry Solutions
Slide 6: India operations: products and 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: 917,700 MTPA Installed Prebiotic: 5,000 MTPA Bicarb: 112,000 MTPA Capacity Sp
Slide 7: US, UK and Kenya operations: products and capacity
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 |177 patents held; 114 Active Applications Rallis India R&D 7
Slide 9: Financial Highlights
Financial Highlights Quarter Ended June 2022 : Q1 FY23
Slide 10: Q1 FY23 financial highlights
Revenue ₹ 3,995 Cr ◊ Robust soda ash demand continues across ↑ ₹ 1017 Cr vs. Jun21 all geographies and applications EBITDA ₹ 1,015 Cr ◊ Input costs mainly energy continue to remain at ↑ ₹ 414 Cr vs Jun21 elevated levels % EBITDA 25% ◊ Strong revenue, EBITDA growth amidst a favorable market environme
Slide 11: Consolidated and standalone financials
Consolidated | ₹ Crore 3,995 EBITDA EBITDA margin Profit Before Tax PBT margin Profit After Tax PAT margin 3,481 2,978 25% 20% 19% 20% 16% 11% 14% 14% 15% 1,015 797 641 657 428 513 342 470 601 Q1 Jun21 Q4 Mar22 Q1 Jun22 Q1 Jun21 Q4 Mar22 Q1 Jun22 Q1 Jun21 Q4 Mar22 Q1 Jun22 Q1 Jun21 Q4 Mar22 Q1 Jun22
Slide 12: 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 896 885 943 966 55 58 58 59 408 418 414 416 83 83 64 83 68 65 87 89 96 88 96 88 27 28 28 28 578 568 580 585 312 330 319 328 28 30 30 31 167 169 213 209 Jun-21 Jun-22 Jun-21 Jun-22 Jun-21 Jun-22 Jun-21 Jun
Slide 13: Soda ash market applications and input costs
Tata Chem Soda Ash : Market Applications Input Costs Consolidated Standalone Others, 15% Detergents, ₹ Crore June-21 June-22 Growth June-21 June-22 Growth 17% Revenue 2,978 3,995 828 1,225 Chemicals, Flat Glass, Cost of Production1 1,473 1,931 416 641 28% 17% Contribution 1,505 2,064 559 412 584 172
Slide 14: TCL India highlights
Q1 FY 23 Financial Performance Revenue EBITDA EBITDA YoY growth YoY growth Margin Highlights 48% 67% 32% ◊ Mithapur unit operating at full capacity ◊ Higher soda ash and bi carb realizations on the PY CY % YoY back of strong market demand, market tightness In ‘000MT ◊ EBITDA improvement due to impro
Slide 15: US highlights
Q1 FY 23 Financial Performance Revenue EBITDA EBITDA YoY growth YoY growth Margin Highlights 34% 59% 25% ◊ Overall US volumes remain strong with growth in domestic and export market; overall market PY CY % YoY remains tight Volumes In ‘000 MT Soda Ash Volumes 577.6 567.9 (1.7%) ◊ Export prices remai
Slide 16: UK highlights
Q1 FY 23 Financial Performance Revenue EBITDA EBITDA YoY growth YoY growth Margin Highlights 31% 233% 18% ◊ EBITDA improvement on account of improved realizations which offset significant increase in raw PY CY % YoY material and energy costs Volumes In ‘000 MT Soda Ash 67.5 64.6 (4.3%) ◊ Marginally
Slide 17: Kenya highlights
Q1 FY 23 Financial Performance Revenue EBITDA EBITDA YoY growth YoY growth Margin Highlights 84% 375% 49% ◊ Kenya operation maintained its steady performance with higher sales volume and higher export PY CY % YoY realizations Volumes In ‘000 MT Soda Ash 83.1 83.3 0.2% ◊ Margins improved vs PY on acc
Slide 18: Rallis India highlights
Q1 FY 23 Financial Performance Revenue EBITDA EBITDA YoY growth YoY growth Margin Highlights 17% (7)% 13% ◊ Higher revenues driven by robust growth in crop care PY CY % YoY ◊ Margins impacted due to cost inflation and ₹ Cr competitive pricing Revenue 741 863 17% ◊ External factors affecting costs, m
Slide 19: Grow the core, invest in adjacencies, focus on cash generation
• Deliver consistent market and customer delivery performance 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 portfolio gaps Rallis • Strengthe
Slide 20: Capacity expansion current status
Phase I expansion (current) Phase II expansion (planned) Capacity Incremental Capacity (Lacs MT) Products Products H1 FY23 H2 FY23 H1 FY24 H2 FY24 (beyond Phase I) Expansion Soda Ash 2.3 Soda Ash ~30% 0.45 1.85 Bicarb 0.7 Bicarb ~40% 0.70 Salt 3.3 Silica 5x 3.30 Till June 22 Target Completion by Mar
Slide 21: ESG initiatives
ESG initiatives Priorities Focus Areas Climate • Carbon Capture and Use unit in UK commissioned Signed SBTi and taken emission target Change • Energy Efficiency projects under implementation • Water harvesting and conservation projects on track Circular Water Neutrality, zero solid waste and recycle
Slide 22: Awards and recognition
Tata Chemicals was conferred the coveted TAAP Jury Award at the Tata Affirmative Action Programme (TAAP) Convention for FY21. Tata Chemicals recognised as JRDQV award winner and industry leader for crossing 650 Innovation center receives award for Industry Best practice implementation of points in B
Slide 23: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 24: Segment revenues and results
Consolidated Standalone ₹ Crore Q1 Jun 21 Q4 Mar 22 Q1 Jun 22 Variance Q1 Jun 21 Q4 Mar 22 Q1 Jun 22 Variance Basic Chemistry Products 2,174 2,903 3,060 886 769 1,046 1,154 385 Segment Revenues Specialty Products 797 564 934 137 57 58 71 14 Less: Inter Segment Revenue (1) (4) (5) (4) - - - - 2,970 3
Slide 25: Quarterly revenue, EBITDA and PAT trends
Standalone | ₹ Crore Consolidated | ₹ Crore 1,40 0 1,225 4,50 0 3,995 1,115 4,00 0 3,481 3,142 1,20 0 931 3,50 0 2,978 3,023 1,00 0 812 841 828 847 2,609 2,606 2,636 717 3,00 0 Revenue 800 2,50 0 2,00 0 600 1,50 0 400 1,00 0 200 500 - - Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23
Slide 26: Statement of Profit and Loss for the quarter ended June 22
Statement of Profit and Loss for the quarter ended June 22 Units TCL India US UK Kenya Rallis Consolidated ₹ Cr PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var Revenues 828 1,225 397 837 1,119 282 407 531 125 134 246 112 741 863 122 2,978 3,995 1,017 EBITDA 238 398 160 173 276 103 29 98
Slide 27: Sales volumes by region: India, US, UK, Kenya
Domestic Domestic Exports India | In Kts US | In Kts 184 188 176 613 617 168 167 169 568 578 588 568 151 156 475 475 118 389 309 317 353 320 323 276 197 181 139 250 278 295 259 261 260 268 294 292 - - - - - - - - - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY21 FY21 FY21 FY21 FY22 FY22 F
Slide 28: Chemistry of Resilience
For any queries please contact below : Sridhar Radhakrishnan rsridhar@tatachemicals.com Sameer V Kulkarni sakulkarni@tatachemicals.com Gavin Desa gavin@cdr-india.com Chemistry of Resilience Suraj Digawalekar suraj@cdr-india.com 27