Acutaas Chemicals Ltd · NSE:ACUTAAS
Acutaas Chemicals — Ami Organics — Q4 FY2023 Earnings Presentation
45 slides from Acutaas Chemicals's earnings presentation, May 14, 2023
Slide 1: Cover letter to stock exchanges
ho Ami Organics Limited CIN No. : L24100GJ2007PLC051093 Registered Office :- Plot No. 440/4, 5 & 6, Road No. 82/A, G.1.D.C. Sachin, Surat - 394230, Dist. Surat, Gujarat, India. May 14, 2023 To, To, The Listing Department, The Listing Department BSE LIMITED, National Stock Exchange of India Limited,
Slide 2: Investor Presentation
MAY - 2023 Investor Presentation Ami Organics Limited B S E : 5 4 3 3 4 9 | NS E : A MIO RG | W W W . A MIO RG A NICS . CO M 1
Slide 3: Contents
Contents 1 Q4FY23 Results 2 Company Overview 3 Advanced Pharma intermediate 4 Specialty Chemicals 5 Working towards better tomorrow 2
Slide 4: Contents: Q4FY23 Results
Contents 1 Q4FY23 Results ➢ Management Commentary ➢ Q4FY23 Earnings Highlights ➢ Financial performance – Q4FY23 ➢ Financial performance – FY23 ➢ P&L Statement for Q4FY23 & FY23 ➢ Performance highlights over the years ➢ Financials for the last three years ➢ Shareholder Information 3
Slide 5: Management Commentary
Management Commentary “The financial year 2023 has been very challenging on all fronts and I am happy Revenue for that we have been able to deliver robust growth despite these challenges. Our Q4FY23 full year total revenue grew by 19% YoY to Rs. 621cr. This was driven by Advance Pharmaceutical Inter
Slide 6: Q4FY23 Earnings Highlights
Q4FY23 Earnings Highlights Financial Highlights Q4FY23 Highlights: ✓ Revenue from operations for Q4FY23 grew by 29.8% YoY to Rs. 1,864 mn; Sequentially revenue grew by 22.3% ✓ The Gross margin for the quarter was at 43.6% as compared to 44.1% in Q4FY22 and 46% in Q3FY23. Lower gross margin was due b
Slide 7: Q4FY23 Earnings Highlights (Continued)
Q4FY23 Earnings Highlights (Continued) Key Business Highlights ✓ Export at 59%; domestic business at 41% (FY23) ✓ Advance Pharmaceutical Intermediates: o Expanded scope of Fermion contract to add more advance intermediates for the same API resulting in multi fold increase in contract value. o Added
Slide 8: Financial performance – Q4 FY23
Financial performance – Q4 FY23 Q4FY22 Q4FY23 Revenue from Operations (Rs Mn) YoY Growth: 34% 8% 30% 1,860 1,600 1,430 1,190 240 260 Advance Intermediates Chemicals Total EBITDA & EBITDA Margin PAT EPS (Rs Mn) (Rs Mn) EBITDA EBITDA Margin PAT PAT Margin EPS 290 280 450 21.9% 23.0% 270 260 19.0% 250
Slide 9: Financial performance – FY23
Financial performance – FY23 FY22 FY23 Revenue from Operations (Rs Mn) YoY Growth: 22% 3% 19% 6,170 5,180 5,201 4,241 960 990 Advance Intermediates Chemicals Total EBITDA & EBITDA Margin PAT EPS (Rs Mn) (Rs Mn) EBITDA EBITDA Margin PAT PAT Margin EPS 20.2% 19.9% 13.8% 1,300 21.0% 860 15.0% 850 840 8
Slide 10: P&L Statement for Q4FY23 & FY23
P&L Statement for Q4FY23 & FY23 Particulars (Rs. Mn) Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Revenue from Operations 1,864 1,435 29.8% 1,524 22.3% 6,167 5,201 18.6% COGS 1,051 802 823 3,309 2,728 Gross Profit 813 634 28.3% 700 16.1% 2,858 2,473 15.6% Gross Margin 43.6% 44.1% 46.0% 46.3% 47.5% Emp
Slide 11: Performance highlights over the years
Performance highlights over the years FY20 FY21 FY22 FY23 Revenue from Operations – Growth Trends (Rs Mn) FY20-23 CAGR: 31% 137% 37% 6,170 5,180 5,201 4,241 3,240 3406 2322 2396 960 990 74 166 Advance Intermediates Chemicals Total Revenue – by Business Verticals Revenue from Exports Share of Top 10
Slide 12: Performance highlights over the years (cont’d)
Performance highlights over the years (cont’d) EBITDA and EBITDA Margins (%) PAT and PAT Margins (%) (Rs Mn) (Rs Mn) EBITDA (₹ Mn) EBITDA Margin (%) PAT (₹ Mn) PAT Margin (%) 1400 23.5% 25.0% 20.2% 1,227 15.9% 1200 17.1% 20.0% 13.8% 833 1000 19.9% 11.5% 1,052 800 15.0% 719 13.5% 600 802 540 10.0% 40
Slide 13: Financials for the last three years
Financials for the last three years Restated Summary Statement of Profit and Loss Restated Summary Statement of Assets and Liabilities Particulars (Rs. Mn) FY21 FY22 FY23 Particulars (Rs. Mn) FY21 FY22 FY23 I. ASSETS NON-CURRENT ASSETS Revenue from Operations 3,406 5,201 6,167 Property, Plant and Eq
Slide 14: Shareholder Information
Shareholder Information AMI Shareholding as on 31st March 2023 Share Information (as on 31st March 2023) NSE Ticker AMIORG BSE Ticker 543349 Promoters Others 39.4% Market Cap (Rs. Cr) 3,239 42.4% (Shares pledged – Nil) Shares Outstanding 3,64,37,062 3M ADTV (Shares)* 50,517 3M ADTV (Rs. cr)* 4.6 MF
Slide 15: Contents: Company Overview
Contents 2 Company Overview ➢ Company Overview ➢ Our Journey ➢ Our Products ➢ Strong and Long-term relations with Diversified Customers across Geographies ➢ Our Manufacturing Facilities ➢ Superior R&D Capabilities ➢ Our Founders ➢ Our Leadership ➢ What makes us different 14
Slide 16: Company Overview
Company Overview AMI Organics (AMI) is a research and development driven manufacturer of specialty chemicals with varied end usage and is focused on the development and manufacturing of advanced pharmaceutical intermediates (“Pharma Intermediates”) for regulated and generic active pharmaceutical ing
Slide 17: Our Journey
Our Journey ▪ Obtained certifications for ISO 9001:2015 and ISO 14001:2015 ▪ Received second EIR from USFDA for manufacturing ▪ Established a tertiary ETP facility at Sachin to become zero liquid discharge plant ▪ Increased ▪ Commencement of a new R&D warehouse capacity, lab at Sachin equipped with
Slide 18: Our Products
Our Products Advance Intermediates for Pharmaceuticals Specialty Chemicals ▪ Advanced Intermediates: ▪ Niche KSM for Agrochem and Finechem companies ✓ 185+ Products ▪ Parabens & paraben formulations, Salicylic Acid and other specialty chemicals that find end-use in ✓ Intermediates across 17 therapeu
Slide 19: Strong and Long-term relations with Diversified Customers across Geographies
Strong and Long-term relations with Diversified Customers across Geographies Revenue from Exports Exports Revenue as % of Revenue from Operations Key Exports Destinations Europe 46% 52% 58% 59% (FY23) Israel Japan North America China (Rs mn) 3,639 India 3,010 US Japan South America 1% 1% Others Germ
Slide 20: Strong and Long-term relations with Diversified Customers (cont’d)
Strong and Long-term relations with Diversified Customers across Geographies (cont’d) Clientele Advanced Pharma Intermediates (Top Clients) Specialty Chemicals (Top Clients) Generic Innovators 19
Slide 21: Our Manufacturing Facilities
Our Manufacturing Facilities Manufacturing Total Land Area Installed Capacity Facilities Total (sq mtrs) 75,892 (MTPA) 6,060 Placeholder for warehouse picture Placeholder for facility Placeholder for facility Placeholder for facility picture picture picture Sachin Unit Ankleshwar Unit Jhagadia Unit
Slide 22: Superior R&D Capabilities
Superior R&D Capabilities 01 02 03 R&D Expenditures R&D Lab Technology State-of-the-art ADL fully supported by equipment 86 65 70 77 analytical instruments Modern fume hood system, (Rs mn) 23,681 sq. ft. (LCMASS, GCMASS, UV autoclave, high vacuum spectrophotometer, distillation assembly, glass R&D e
Slide 23: Superior R&D Capabilities (Cont’d)
Superior R&D Capabilities (Cont’d) Our Capabilities in Key Chemistry Etherification Amination Esterification Diazotization AMI Organics R&D Centre in Surat Nitration Chlorination & hydrolysis Acylation Alkylation Bromination Hydrogenation Fluorination 22
Slide 24: Superior R&D Capabilities (Cont’d) – Continuous Flow Reactor
Superior R&D Capabilities (Cont’d) Continuous Flow Reactor ▪ Continuous flow reactors are more efficient, and sustainable when compared to manufacturing products using traditional reactors. ▪ AMI has successfully developed capabilities in Plug Flow, Catalytic fixed-bed flow, Tubular flow kind of rea
Slide 25: Our Founders
Our Founders Our Founders The visionaries who built this company Nareshkumar Patel Chetankumar Vaghasia Executive Chairman, MD Whole-time Director ▪ Mr. Nareshkumar Patel is founder of the Company. ▪ Mr. Chetankumar Vaghasia is one of the co-founders ▪ He has been associated with the Company since i
Slide 26: Our Leadership
Our Leadership Board of Directors Virendra Mishra Girikrishna Maniar Richa Goyal Hetal Gandhi Dr. Anita Bandyopadhyay Mr. Ram Mohan Rao Locande Whole-time Director Non-executive, Non-executive, Non-executive Independent Director Whole-time Director Independent Director Independent Director Independe
Slide 27: What makes us different
What makes us different 1 4 Niche Product Portfolio with a strong market share High entry barriers ✓ Niche products with limited competition focused on the Chronic disease ✓ A long gestation period to be enlisted as a supplier market ✓ The involvement of complex chemistries ✓ Our key products hold m
Slide 28: Contents: Advanced Pharma intermediate
Contents 3 Advanced Pharma intermediate ➢ A leading Advanced Intermediate Manufacturer from India ➢ Our Business Model ➢ Capex ➢ Our strategy and outlook ➢ Industry Overview 27
Slide 29: A leading Advanced Intermediate Manufacturer from India
A leading Advanced Intermediate Manufacturer from India Historical Business Performance 5,180 50-90% 5,180 Market Share in 185+ 4,269 FY23 Customers Revenue Key Molecules Added ~40 new 3,240 (INR mn) customers in FY23 2,322 30 14 2 FY20 FY21 FY22 FY23 New Products Process Patents Manufacturing 91% 8
Slide 30: Our Business Model – Advanced Intermediates for Pharmaceuticals
Our Business Model – Advanced Intermediates for Pharmaceuticals Import Substitute ~1-3% ► Supplying import substitute intermediates to domestic pharma companies CDMO Contract Manufacturing for big pharma companies 5% ► ► Exclusive long term supply contracts Regulatory market business ► Supplying NCE
Slide 31: Uniqueness of our business model
Uniqueness of our business model 1 Chronic Therapy focused 91% of the products catered on fast-growing Chronic segment Wide Product Basket 2 Wider basket of products, with 500+ molecules 3 R&D leadership ✓ First to market with target products Presence across value chain 4 ✓ Products available with d
Slide 32: CAPEX – Expansion of Pharma Intermediate Business
CAPEX – Expansion of Pharma Intermediate Business CAPEX – INR 190cr CAPEX – Funding On 29th April, BOD approved the Capex plan of INR The Capex will be funded through a mix of General 190cr to build a brownfield plant in Ankleshwar, Corporate funds of IPO proceeds, internal accruals, and Gujarat, to
Slide 33: Our strategy and outlook
Our strategy and outlook Strategy Outlook 190cr Capex to expand capacities for the Advance intermediate business Growing Innovator business because of track record of innovation, timely supply, and consistent quality Expect to continue the historical growth rate in the coming years Products already
Slide 34: Industry Overview
Industry Overview Currently ~85% of our revenue come from …with Global API industry estimated to products used in Pharmaceutical industry grow by 6%; witnessing shift in production specifically for manufacturing of APIs… activity from developed markets to Asia Revenue (FY23) Speciality Chemicals 229
Slide 35: Contents: Specialty Chemicals
Contents 4 Specialty Chemicals ➢ Speciality Chemicals - Overview ➢ New Product launched ➢ Acquisition of Gujarat Organics facilities ➢ Acquisition of Baba Fine Chemicals (BFC) ➢ Industry Overview ➢ Our strategy and outlook 34
Slide 36: Speciality Chemicals - Overview
Speciality Chemicals - Overview Historical Business Performance 990 300+ 30+ 990 FY23 Customers Countries 960 Revenue across the globe (Customer locations (INR mn) Added ~20 new customers in FY23 166 74 FY20 FY21 FY22 FY23 3 50+ 1 New Products Products Manufacturing 18% 16% 3% Launched in KSM for Ag
Slide 37: New Product developed – Electrolyte Additive
New Product developed – Electrolyte Additive Electrolyte for cells Industry Analysis ▪ AMI Organics has successfully developed a core Barriers to Entry 01 03 Substitutes 02 electrolyte additive for cells used in energy storage devices. Complex product with a high Best performing product amongst barr
Slide 38: Acquisition of Baba Fine Chemicals (BFC)
Acquisition of Baba Fine Chemicals (BFC) 1 2 3 4 AOL will acquire Purchase The The consideration Partnership Agreement consideration of will be discharged interest BFC by signed on 22nd Rs. 68.2cr is through a taking 55% April 2023 with derived based on combination cash partnership listed Condition
Slide 39: Our strategy and outlook
Our strategy and outlook Strategy Outlook Business to grow at a faster rate than core pharma intermediate business due to lower base Development and entry into newer molecules with strong entry barriers to accelerate the growth Continue to work on improving operational efficiencies to deliver better
Slide 40: Industry Overview
Industry Overview Our existing Chemicals segment supplies KSMs to Agrochemicals and Fine Chemicals company … KSMs Global KSM Market – Size and Growth India KSM Market – Size and Growth (USD Bn) (USD Bn) 40 8.0 CAGR 6.1% CAGR CAGR 30 10.6% 6.1% 4.8 22 CAGR 9.8% 3.0 2015 2020 2025F 2015 2020 2025F Why
Slide 41: Industry Overview
Industry Overview …whereas our new acquired units manufactures preservatives along with some specialty chemicals such as salicylic acid Parabens Salicylic Acid Global Paraben Market – Global Paraben Market – Global Salicylic Acid Market – Global Salicylic Acid Market – Size and Growth Split by Appli
Slide 42: Working Toward Better Tomorrow
Contents 5 Working Toward Better Tomorrow 41
Slide 43: Working Towards Better Tomorrow
Working Towards Better Tomorrow Environment: Social: Governance: ➢ Zero Liquid Discharge based ➢ Company’s Sachin Facility is ✓ 50% of the board constitutes in-house effluent plant at SA 8000:2014 certified of independent directors Sachin Unit ➢ The SA8000® Standard is the ✓ Audit and NRC are headed
Slide 44: Safe Harbor
Safe Harbor The Presentation is to provide the general background information about the Company’s activities as at the date of the Presentation. The information contained herein is for general information purposes only and based on estimates and should not be considered as a recommendation that any
Slide 45: For more information please contact
For more information please contact: Ami Organics Limited Ernst & Young Ekta Srivastava, Company Rahul Thakur Secretary & Compliance Officer Rahul.thakur@in.ey.com cs@amiorganics.com Advait Bhadekar Advait.bhadekar@in.ey.com © 2020 Ami Organics Limited, All Rights Reserved. 44