Sudarshan Chemical Industries Limited · NSE:SUDARSCHEM
Sudarshan Chemical Industries — Q2 FY22 Earnings Presentation
36 slides from Sudarshan Chemical Industries's earnings presentation, Oct 29, 2021
Slide 1: Investor Presentation Q2 FY22
Investor Presentation Q2 FY22
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward‐looking statements • These forward‐looking statements involve a number of risks, uncertainties and other factors that could cause actual results t
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Our Company at Glance
Our Company at Glance We are a leading world‐class color solutions provider with a focus on exceptional and sustainable results CONSOLIDATED PEOPLE BUSINESS FOCUS GEOGRAPHIC REACH INFRASTRUCTURE REVENUES 2 Manufacturing plants $250 Mn 50+ sales team Pigment Largest pigment producer in Mahad & Roha a
Slide 5: Our Global Presence
Our Global Presence We Export to 85+ countries with 50+ sales members GLOBAL HEAD OFFICE NORTH AMERICA Sudarshan Chemical Industries Limited Sudarshan North Americas Inc. CHINA EUROPE Sudarshan (Shanghai) Trading Co Ltd. MEXICO Sudarshan Europe B.V. Sudarshan Mexico S. de R.L de CV. JAPAN Sudarshan
Slide 6: A journey towards a leading world class color solutions provider
A journey towards a leading world class color solutions provider Domestic Revenue ₹ Cr 157% EBITDA ₹ Cr 236% EBITDA % A Consistent performance with Sales growing at a Exports Revenue ₹ Cr 1,864 288 CAGR of 10% and Operating profit by 13% despite 1,438 exiting some of the businesses 953 192 781 724 F
Slide 7: Pigments Application - a global $8.6bn market opportunity
Pigments Application ‐ a global $8.6bn market opportunity We are uniquely placed to offer a comprehensive range high performance and speciality pigments COATINGS PLASTICS INKS COSMETICS A pallete with a wide spectrum High performance and special General purpose and high Effect pigments for cosmetics
Slide 8: Pigment Industry View
Pigment Industry View • Input cost escalation seen across multiple intermediates • Sharp increase in energy costs • Logistics disruptions continuing leading to cost escalations and tight container availability • Industry consolidation trend continued 8
Slide 9: Investing for growth of our Pigment business
Investing for growth of our Pigment business FY20 ₹ 222 Cr Put to use: ₹ 293 Cr Capex incurred FY21 ₹ 71 Cr Capex overall revenue Projects under potential estimated at implementation at ~ ₹ 1,500 Cr at full Capex plan: ₹ 357 Cr capacity ramp up over ₹ 750 Cr three years Capex estimate for FY22 at ~
Slide 10: Quarterly Financials
Quarterly Financials
Slide 11: Quarterly Performance Highlights - Consolidated Financials
Quarterly Performance Highlights ‐ Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 498 68 30 474 62 429 +16% 26 53 23 15.8% 13.1% 7.1% 10.6% 5.5% 4.6% Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 * EBITDA as percent to To
Slide 12: Quarterly Performance Highlights - Key Ratios
Quarterly Performance Highlights ‐ Key Ratios Current Ratio Cash conversion cycle 1.3 1.2 113 1.1 105 96 Earnings per Share 4.4 3.8 3.3 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Debt to Equity Ratio Net debt ₹ Cr Net Debt to EBITDA 1.1 2.8 2.4 2.4 Q2FY21 Q1FY22 Q2FY22 0.9 0.9 562 720 791 Q2FY21 Q1FY
Slide 13: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights ‐ Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 453 448 47.1% 66 66 402 +12% 44.0% 43.5% 50 16.3% 14.5% 11.2% Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Capacity utilisation during Q2FY22 was at ~ 6
Slide 14: Quarterly Performance Highlights - Pigment Business
Quarterly Performance Highlights ‐ Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 239 250 202 203 +18% 200 209 +5% Mix % 50% 45% 53% 50% 55% 47% Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Specialty Revenue ₹ Cr Non‐Specialty Revenue ₹ Cr 318 302 146 271 +11% 131 135 +11% 67% 70% 67% 33% 3
Slide 15: Half Yearly Financials
Half Yearly Financials
Slide 16: Half Yearly Performance Highlights - Consolidated Financials
Half Yearly Performance Highlights ‐ Consolidated Financials Income from Operations (In ₹ Cr) EBITDA* (In ₹ Cr & Margin%) PAT (In ₹ Cr & Margin%) 1,083 167 92 972 +24% 781 121 115 49 49 15.4% 15.4% 8.5% 11.8% 6.2% 5.0% H1FY21 H2FY21 H1FY22 H1FY21 H2FY21 H1FY22 H1FY21 H2FY21 H1FY22 * EBITDA as percen
Slide 17: Half Yearly Performance Highlights - Pigment Business
Half Yearly Performance Highlights ‐ Pigment Business Income from Operations (In ₹ Cr) Gross margin % EBITDA* (In ₹ Cr & Margin%) 1,010 45.3% 43.9% 162 901 43.1% +21% 743 119 116 16.0% 16.0% 12.9% H1FY21 H2FY21 H1FY22 H1FY21 H2FY22 H1FY22 H1FY21 H2FY21 H1FY22 * EBITDA as percent to Total Income from
Slide 18: Half Yearly Performance Highlights - Pigment Business
Half Yearly Performance Highlights ‐ Pigment Business Domestic Revenue ₹ Cr Export Revenue ₹ Cr 534 476 459 421 +9% 442 322 +37% Mix % 43% 53% 49% 57% 47% 51% H1FY21 H2FY21 H1FY22 H1FY21 H2FY21 H1FY22 Specialty Revenue ₹ Cr Non‐Specialty Revenue ₹ Cr 692 318 620 281 511 +21% 233 +21% Mix % 69% 69% 6
Slide 19: Business Outlook
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Slide 20: Business Outlook - FY22 and beyond
Business Outlook ‐ FY22 and beyond Capex program to drive future growth Efficiency and continuous improvement Business mix change to continue and bring in EBITDA improvement focus • Capex projects under commissioning • Expanding product portfolio to build • Building one of the most efficient in the
Slide 21: About
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Slide 22: Our Vision, Mission & Values
Our Vision, Mission & Values Our growth is fueled by an immense drive to be a leading player in our field MISSION VISION VALUES World class Global To be amongst the top Seva (Service), Courage, Color Solution provider three pigment players Commitment and with an innovative and in the world Passion,
Slide 23: Our Journey
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy Establishing the Business Next leap in Technology Going Global 1952 ‐ 1989 1989 ‐ 2006 2006 ‐ 2018 Efforts largely domestic with limited Building technical capabilities & Scaled up infrastr
Slide 24: Our Governance Structure - Board Of Directors
Our Governance Structure ‐ Board Of Directors Mr. Pradeep Rathi Mr. Rajesh Rathi Mr. Ashish Vij (Chairman) (Managing Director) (Whole Time Director) Mr. D. N. Damania Mr. S. Padmanabhan Mrs. Shubhalakshmi A. Panse Mr. Naresh T. Raisinghani (Non‐Executive, (Non‐ Executive, (Non‐Executive, (Non‐Execut
Slide 25: Our Products Portfolio
Our Products Portfolio Azo Coloured material made of organic compound with Phthalos Organic Pigments pigment properties. Commonly used for Coatings, HPPs plastics, Inks & Textile applications Dispersions Chromes Made up of mineral compounds. Are mainly oxides, Inorganic Pigments Cadmiums sulphides o
Slide 26: The Pigment Approval Cycle
The Pigment Approval Cycle Approval cycle for pigment sales varies across products and Sudarshan Chemicals is well placed in this regard COATINGS PLASTICS INKS COSMETICS Coatings remains a prominent Market leaders in multiple Focus on niche applications focus area with Automotive geographies offerin
Slide 27: Our Technical Capability
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis
Slide 28: Our Infrastructure
Our Infrastructure SCIL is focused on building capabilities across research, development & technical service. Manufacturing Site: Roha Manufacturing Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Disp
Slide 29: Global Pigments Market Overview
Global Pigments Market Overview Global Colour Pigment Market* ‐ Relevant to Sudarshan Effect o Our estimate of the Global Colour Pigments Market is ~$ 0.6 10B, market opportunities open to Sudarshan are ~$ 8.6B. o Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. I
Slide 30: Our Pillars Of Growth
Our Pillars Of Growth We believe Growth will come from a focused approach to broaden product portfolio and renewed application focus Product Portfolio 01 • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 Application Focus • C
Slide 31: Building Capabilities
Building Capabilities We focus on building capabilities across functions to achieve our vision STRENGTHEN R&D MANUFACTURING & OPERATIONS COMMERCIAL EXCELLENCE ENVIRONMENT EXCELLENCE SUSTAINABILITY Faster launch of new and Lean & Six Sigma, Capex Improving reach, channel Best in class safety practice
Slide 32: Our Competitive Advantage
Our Competitive Advantage We achieve excellent product and process reliability Product Consistency & Reliable technical Environment & Reliable Service Process Control information Occupational Health Laboratories certified by the Recognized for operational 800+ tests National Accreditation Board Ensu
Slide 33: Empowering our society and safeguarding our environment
Empowering our society and safeguarding our environment “SUDHA” (Sudarshan’s Holistic Aspiration) Our EHS initiatives Women Empowerment Effluent Treatment 1,000+ women 8+ villages Our state of the art effluent treatment facilities and the standards of Livelihood initiatives through Paper Bags making
Slide 34: Shareholder Information
Shareholder Information Share Information (as at 30th September 2021) Shareholding Pattern (as at 30th September 2021) Promoters 35.73% NSE Ticker SUDARSCHEM FIIs and FPIs 9.37% BSE Ticker 506655 Mutual Funds 7.54% Others 47.36% Market Cap (INR mn) 45,562 % free‐float 64.27% SUDARSHAN NIFTY 500 MSCI
Slide 35: Awards And Accolades
Awards And Accolades Mahatma Awards 2020 in CSR Global CSR Award 2020 HR Excellence Award 2018 ‘Dream Company to Work For’ Excellence Platinum Category 1st in Chemicals & Fertilizer in Chemical Sector Sector World HRD Congress 2017 Global Clean Village Award ‐ Global WasteMet Award 2018 DMAI Award f
Slide 36: Thank You
THANK YOU Investor Relations at Sudarshan: Mr. Mandar M. Velankar +91 20 6828 1200 investorrelations@sudarshan.com CIN: L24119PN1951PLC008409 www.sudarshan.com Sudarshan Chemical Industries Limited 162 Wellesley Road, Pune, Maharashtra ‐ 411001 36
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