Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — Q2 FY23 Earnings Presentation
35 slides from Sharda Cropchem's earnings presentation, Oct 21, 2022
Slide 1: Cover letter to stock exchanges
Shard" Cropchenl Limited Tel. • +91 22667B2BOO ISO 9ao1 : 2015 Reg. No: 702949 FAX . +91 2266782828/66782808 E-mail . office@shardaintlcom CIN: LS1909MH2004PLC145007 Regd . Office : Prime Business Park , Dashrathlal Joshi Road, Vile Parle rN), Mumbai - 400056, India. www.shardacropchem .com 21 st Oc
Slide 2: Investor Presentation October 2022
Investor Presentation October 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sharda Cropchem Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: About Sharda Cropchem Limited
About Sharda Cropchem Limited
Slide 5: Fast-growing global agrochemicals company
“We are a fast-growing global agrochemicals company with a peer position in the generic crop protection chemicals industry. Our vast and growing library of dossiers and IPRs provide us solid foundations for growth in the global marketplace, especially in Advanced Markets such as Europe, North Americ
Slide 6: Agrochemical Focused Company
Agrochemical Focused Company Intellectual Property (IP) driven company engaged in marketing and distribution of wide range formulations and generic active ingredients Efficiently channelizing time and resources for strengthening core Asset Light Business Model competency of identifying generic molec
Slide 7: Asset Light Business Model
Asset Light Business Model Overall Agrochemical Value Chain Sharda’s Operating Area √ √ √ √ Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Manufacturing Research Packaging Distribution SHARDA CROPCHEM’s ASSET LIGHT BUSINESS MODEL Focus on identification of ge
Slide 8: Increasing Global Presence having a Widespread Distribution
Increasing Global Presence having a Widespread Distribution Over the years, we’ve built a strong brand Presence franchise within our global markets; we are benefiting through the economies of scale in 80+ countries our portfolio and leveraging value of our across Europe, NAFTA, supply chain to deliv
Slide 9: The Sharda Advantage
The Sharda Advantage THE SHARDA ADVANTAGE One Stop Healthy Solution Wide Product Quality with Faster Sales Global Reach relationships Provider for Range Affordability Service with suppliers Crop Care Products 8
Slide 10: Way Forward
Way Forward Forward Integration - Build Sales Force Expand & Strengthen Distribution Presence ➢ Leverage market presence and execution capabilities ➢ Expand geographical reach using existing library of dossiers ➢ Adopt the factory to farmer approach and be a one stop solution provider ➢ Two-fold str
Slide 11: Industry Outlook and Growth Drivers
Industry Outlook and Growth Drivers Global crop protection chemicals market value (In Billion USD) – CAGR of 3.5% 59.7 62.8 77.0 53.0 42.0 43.7 8.1 8.4 10.2 7.7 5.3 3.9 5.9 4.3 5.4 0.5 0.6 0.8 2020 2025e 2030e Herbicide Fungicide Insecticide Nematicide Molluscicide INDUSTRY DRIVERS 1 2 3 Fewer arabl
Slide 12: Experienced Management
Experienced Management Mr. Ramprakash V. Bubna Mr. Ashish Bubna Mr. Manish Bubna Mr. Ashok Vashisht Chairman & Managing Director Whole Time Director Whole Time Director Chief Financial Officer • Holds a Bachelor’s Degree of • Holds a Bachelor’s Degree in • Holds a Bachelor’s Degree in Chemical • He
Slide 13: Q2 FY23 Financial Highlights
Q2 FY23 Financial Highlights
Slide 14: Q2 FY23: Segment Wise Highlights
Q2 FY23: Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 78% 80% 22% 20% % of Revenue 100% 100% 576 146 722 140 503 643 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 +14% +4% +12% On Consolidated Basis 13
Slide 15: Q2 FY23: Product Wise Highlights (Agrochemical Segment)
Q2 FY23: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 52% 57% 32% 22% 16% 21% % of Revenue 100% 100% 327 159 124 576 503 261 125 83 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 +25% -22% +50% 14% On Consolidate
Slide 16: Q2 FY23: Region Wise Breakup (Agrochemical Segment)
Q2 FY23: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 43% 41% 36% 40% +11% +28% 576 238 230 216 179 503 Q2FY22 Q2FY23 Q2FY22 Q2FY23 LATAM Region RoW 14% 11% 7% 8% Q2FY22 Q2FY23 -10% +18% 71 64 44 37 +14% Q2FY22 Q2FY23 Q2FY22 Q2FY23 % of Rev
Slide 17: Q2 FY23: Region Wise Breakup (Non Agrochemical Segment)
Q2 FY23: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 30% 22% 50% 57% +19% -22% 146 41 83 140 32 70 Q2FY22 Q2FY23 Q2FY22 Q2FY23 LATAM Region RoW 5% 7% 15% 14% Q2FY22 Q2FY23 +26% +1% 10 21 21 8 +4% Q2FY22 Q2FY23 Q2FY22 Q2FY23 % of
Slide 18: Q2 FY23: Financial Highlights
Q2 FY23: Financial Highlights Cr. Revenues & GP Margin EBITDA & EBITDA Margin* 16.1% 28.0% 14.8% 27.3% Revenue growth led by better EBITDA and Margin 722 product mix & price realization 104 107 impacted due to lower GP 643 Margins, general inflation Gross Margins have been and strengthening of globa
Slide 19: Impact of weakened Euro to the Dollar in the last six months
Impact of weakened Euro to the Dollar in the last six months USD / Euro Price Chart 1.1500 Unprecedented depreciation of 1.11 Euro to the USD 1.1000 - 12% 1.0500 0.98 1.0000 0.9500 01-04-2022 21-04-2022 11-05-2022 31-05-2022 20-06-2022 10-07-2022 30-07-2022 19-08-2022 08-09-2022 28-09-2022 Euro Doll
Slide 20: H1 FY23 Financial Highlights
H1 FY23 Financial Highlights
Slide 21: H1 FY23 Segment Wise Highlights
H1 FY23 Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 82% 77% 18% 23% % of Revenue 100% 100% 1,190 356 1,546 1,037 1,265 228 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 +15% +56% +22% On Consolidated Basis 20
Slide 22: H1 FY23: Product Wise Highlights (Agrochemical Segment)
H1 FY23: Product Wise Highlights (Agrochemical Segment) Cr. Herbicides Insecticides Fungicides TOTAL REVENUES (Agrochemical Segment) 50% 57% 28% 19% 22% 24% % of Revenue 100% 100% 681 295 279 1,190 1,037 230 227 515 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 +32% -22% +24% +15% On Conso
Slide 23: H1 FY23: Region Wise Breakup (Agrochemical Segment)
H1 FY23: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 45% 46% 34% 36% +18% +19% 1,190 551 422 466 355 1,037 H1FY22 H1FY23 H1FY22 H1FY23 LATAM Region RoW 15% 12% 6% 6% H1FY22 H1FY23 -6% +18% 155 146 71 61 +15% H1FY22 H1FY23 H1FY22 H1FY23 % o
Slide 24: H1 FY23: Region Wise Breakup (Non Agrochemical Segment)
H1 FY23: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 29% 26% 47% 56% +39% +82% 356 91 197 65 109 228 H1FY22 H1FY23 H1FY22 H1FY23 LATAM Region RoW 6% 6% 18% 12% H1FY22 H1FY23 +81% +7% 23 41 45 13 +56% H1FY22 H1FY23 H1FY22 H1FY23 %
Slide 25: H1 FY23: Financial Highlights
H1 FY23: Financial Highlights Cr. Revenues & GP Margin EBITDA & EBITDA Margin* 16.6% 28.6% 26.3% 14.1% Revenue growth led by better EBITDA and Margin 1,546 product mix & price realization 210 218 impacted due to lower GP 1,265 Margins , general inflation Gross Margins have been and strengthening of
Slide 26: Strong Balance Sheet
Strong Balance Sheet Working Capital (in Days) RoCE RoE +550 bps +470 bps 86 days 91 days 25.7% 19.8% 20.2% 15.2% 92 86 73 74 67 70 Mar-21 Mar-22 Mar-21 Mar-22 Cash & Cash Total Equity Total Debt Equivalents Sep-21 Sep-22 Rs. 1,930 Rs. 17 Rs. 283 crores crores crores Inventory Days Recievable Days C
Slide 27: Annexure
Annexure
Slide 28: Q2 & H1 FY23 Financial Highlights
Q2 & H1 FY23 Financial Highlights Cr. Particulars Q2 FY23 Q2 FY22 Y-o-Y H1 FY23 H1 FY22 Y-o-Y Revenue from Operations 721.5 642.8 12% 1,546.0 1,265.5 22% COGS 524.4 462.9 1,139.5 903.1 Gross Profit 197.1 179.8 406.5 362.4 Gross Margin % 27.3% 28.0% 26.3% 28.6% Employee Expenses 8.6 10.5 17.0 20.6 Ot
Slide 29: Balance Sheet - Consolidated
Balance Sheet - Consolidated EQUITY & LIABILITIES Sept-22 Mar-22 ASSETS Sept-22 Mar-22 Equity Non-current assets Equity share capital 90.2 90.2 Other equity 1,840.4 1,822.2 Property, plant and equipment 11.1 14.4 Equity attributable to equity holders of the Company 1,930.6 1,912.4 Goodwill 0.0 0.0 N
Slide 30: Key Financial Performance Indices
Key Financial Performance Indices Cr. Revenue EBITDA & EBITDA Margin* Profit After Tax & PAT Margin 20.7% 18.5% 17.6% 19.0% 20.4% 11.2% 8.8% 8.2% 9.6% 9.8% 3,580 2,396 729 349 1,998 2,003 1,707 455 229 353 369 352 191 176 165 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
Slide 31: Historical Profit & Loss
Historical Profit & Loss Cr. Particulars FY22 FY21 FY20 FY19 FY18 Revenue from Operations 3,579.8 2,395.6 2,003.0 1,997.6 1,706.6 COGS 2,499.8 1,636.0 1,388.8 1,387.3 1,143.7 Gross Profit 1,080.0 759.7 614.3 610.2 562.8 Gross Margin % 30.2% 31.7% 30.7% 30.5% 33.0% Employee Expenses 44.2 37.3 34.9 33
Slide 32: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities Cr. Equities & Liabilities FY22 FY21 FY20 FY19 FY18 Shareholder's Funds Equity and Share Capital 90.2 90.2 90.2 90.2 90.2 Other Equity 1,822.2 1,524.1 1,312.6 1,193.7 1,044.6 Non-controlling Interest 0.3 0.3 0.3 0.2 0.2 Total Equity 1,912.8 1,614.6 1,403.1 1,284.
Slide 33: Balance Sheet - Assets
Balance Sheet - Assets Cr. ASSETS FY22 FY21 FY20 FY19 FY18 Assets Non-Current Assets Property, Plant and Equipment 14.4 20.9 27.8 13.5 10.7 Goodwill 0.0 0.4 0.4 0.4 0.4 Other Intangible assets 577.4 523.1 388.1 357.8 215.2 Intangible assets under development 212.2 131.0 161.4 219.8 359.9 Deferred Ta
Slide 34: CSR Activities
CSR Activities CSR initiatives taken up by the Company are in the areas of Promoting Education, Healthcare, Eradicating Hunger, Empowerment of Women, Animal Welfare, Promotion of Sports and Rural Development Projects Promoting Education Animal Welfare Medical Aid & Relief 33
Slide 35: Thank You
THANK YOU Company: Sharda Cropchem Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L67120MH1995PLC086696 CIN: U74140MH2010PTC204285 Mr. Ashok Vashisht - CFO Mr. Deven Dhruva / Mr. Karan Parekh cfo@shardaintl.com deven.dhruva@sgapl.net / karan.parekh@sgapl.net Tel: +91 22