National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q1 FY2018-19 Earnings Presentation
45 slides from National Fertilizers's earnings presentation, June 2018
Slide 1: Financial Performance for the Quarter June 2018
FINANCIAL PERFORMANCE FOR THE QUARTER JUNE 2018 National Fertilizers Limited
Slide 2: Brief Overview
BRIEF OVERVIEW Introduction • Incorporated on 23rd August, 1974. • Share Capital details as on 30.06.2018. Authorized capital : ₹ 1,000.00 crore. Paid up capital : ₹ 490.58 crore. Net-worth : ₹ 2,028.95 crore. Shareholding Pattern as on 30.06.2018: Government of India 74.71% Financial inst
Slide 3: Brief on Plants and Trading Activities
BRIEF ON PLANTS AND TRADING ACTIVITIES UREA Vijaipur-II Vijaipur-I Bathinda Panipat Nangal ANNUAL CAPACITY (LMT) – 32.31 LMT 8.646 8.646 5.115 5.115 4.785 (RAC) Annual Capacity after Urea Capacity 10.662 9.999 5.115 5.115 4.785 Enhancement Projects at Vijaipur-I & II units – 35.68 LMT Capacity utili
Slide 4: Brief on Plants and Trading Activities
BRIEF ON PLANTS AND TRADING ACTIVITIES Industrial Products, Bio-Fertilizers , Technical Surplus Ammonia etc. Traded Goods Sr. Plant Located at No. of Annual Capacity Import streams of each stream 1. DAP (MT) 2. MoP 3. APS 1. Nitric acid Nangal 2* 91410 4. NPK 2. Ammonium Nitrate Nangal 2* 118800 Dom
Slide 5: Performance Highlights FY 2017-18
PERFORMANCE HIGHLIGHTS FY 2017-18 Ever best achievements during the FY 2017-18. 1. Production of Urea: 38.10 LMT 2. Sale of Urea: 39.16 LMT 3. Import of DAP/MOP/APS/NPK/BS: 4.59 LMT 4. Sale of DAP/MOP/APS/NPK/BS/Compost: 3.93 LMT 5. Sale of all fertilizers: 43.09 LMT 6. Turnover of ₹ 8928.29 crore
Slide 6: Performance Highlights FY 2017-18
PERFORMANCE HIGHLIGHTS FY 2017-18 Increased non urea business from 1% in 2014-15 to 15% in 2017-18. Transformed from single product to a multiple product company (16 major products) Import of fertilizers like DAP, MOP, NPK, APS, BS to the tune of 4.47 LMT (increase of 106% over previous year)
Slide 7: Financial Performance at a Glance
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 3 Years) (₹crore) SL .No. Particulars 2015-16 2016-17 2017-18 1 Production (Urea) (LMT) 37.99 38.10054 38.10250 2 Capacity Utilization w.r.t. RAC (Urea %) 117.60 117.90 117.94 3 Sale of Urea (LMT) 36.41 37.58 39.16 4 Sale of Other Fertilizers (LMT) 0.52 2
Slide 8: Financial Performance at a Glance
FINANCIAL PERFORMANCE AT A GLANCE (Preceding 3 Years) (₹crore) Particulars 2015-16 2016-17 2017-18 SL .No. 17 Net Fixed Assets 4291 4109 4144 18 Working Capital 1487 1424 735 19 Long Term Borrowings 1828 981 170 20 Short Term Borrowings 4296 3154 2890 21 Net Worth 1691 1827 1987 22 Return on Net Wor
Slide 9: Sale Quantity (Preceding Years)
SALE QUANTITY (Preceding 3 Years) SL .No. Particulars 2015-16 2016-17 2017-18 1 Sale of Urea (LMT) 36.41 37.58 39.16 2 Sale of Traded Goods:- DAP (LMT) 0.51 2.14 3.28 MOP (LMT) - - 0.27 APS (LMT) - - 0.26 BS (LMT) 0.01 0.03 - Compost (LMT) - 0.03 0.12 Total (2) 0.52 2.20 3.93 3 Sale of Industrial an
Slide 10: Performance for the Quarter June-2018
PERFORMANCE FOR THE QUARTER JUNE-2018 10
Slide 11: Performance Highlights
PERFORMANCE HIGHLIGHTS Production of urea of 9.12 LMT (9.39 LMT during CPLY) Sale of urea 8.56 LMT (9.65 LMT during CPLY) Sale of DAP/MOP/APS/NPK/Compost of 0.59 LMT (0.21 LMT during CPLY) Sale of all fertilizers of 9.15 LMT (9.86 LMT during CPLY) Gross Sale of ₹ 2158.50 crore (₹ 1870.87 c
Slide 12: Overall Performance
OVERALL PERFORMANCE ₹Crore Particulars Qtr. CPLY Increase/(decrease) June 2018 ₹ Crore % Gross Sales 2158.50 1870.87 287.63 15 Other Operating Revenue 8.86 5.41 3.45 64 Total Revenue from Operation 2167.36 1876.28 291.08 16 Total Expenses 2020.57 1784.44 236.13 13 Earnings before interest, depreciat
Slide 13: Sale (Qty. & Value)
SALE (QTY. & VALUE) ₹ Crore Particulars Qtr. CPLY Increase/(decrease) June 2018 ₹ Crore % Sale quantity of Urea (LMT) 8.56 9.65 (1.09) LMT (11) Sale quantity of DAP/MOP/APS 0.59 0.21 0.38 LMT 181 /BS/Compost (LMT) (details in slide no. 12) Total 9.15 9.86 (0.71) LMT (7) Gross Sales of urea (₹ Crore)
Slide 14: Sale Break up of Other Fertilizers & Other Products
Sale Break up of (Other Fertilizers & Other Product) Traded goods (Qty. and Value) Qtr. Increase/ CPLY Qty. Qty. Inc./ June 2018 (Decrease) Particulars Inc./ (Dec.) (Dec.)with Value Value with CPLY Qty. Qty. with CPLY CPLY% (₹ Crore) (₹ Crore) (₹ Crore) Other Fertilizers DAP (LMT) 0.44 155.75 0.16 4
Slide 15: Sale Break up of Industrial & Other Products
Sale Break up of Industrial & Other Products (Qty. & Value) Qtr. June 2018 CPLY Increase/ Qty Qty. (Decrease) Increase/ Inc./ (Dec.) Particulars Value Value (₹ Qty. Qty. with CPLY (Decrease) with CPLY (₹ Crore) Crore) (₹ Crore) with CPLY % Nitric Acid (MT) 16191 39.76 17874 36.54 3.22 (1683) (9) Amm
Slide 16: Sale of Urea (Zone Wise)
SALE OF UREA (ZONE WISE) (LAKH MT) Zonal Offices Qtr. Increase/ June 2018 CPLY (Decrease) Chandigarh 3.87 4.61 (0.74) Bhopal 2.53 2.27 0.26 Lucknow 2.16 2.77 (0.61) TOTAL 8.56 9.65 (1.09) Sale of urea at Chandigarh and Lucknow zone is lower in comparison to CPLY due to lower availability of stock
Slide 17: Turnover Growth in Qtr. June 2018
Turnover Growth in Qtr. June 2018 ₹ 2158.50 crore (Qtr. June 2018) (15%) ₹ 1870.87 crore (CPLY) 17
Slide 18: Sale Breakup Segment wise
Sale Breakup Segment wise-Urea/Traded goods/Industrial Product & Others (Value & % turnover ) CPLY Qtr. June 2018 ₹ 193.47 ₹ 57.93 Crore ₹ 50.06 Crore (3%) ₹ 49.46 (9%) Crore Crore (3%) (2%) Urea Urea Traded Goods Traded Goods Indisrial Product & Others Indisrial Product & Others ₹ 1763.48 ₹ 1914.97
Slide 19: Urea Sales Quantity & Value
Urea Sales Quantity & Value Quantity Value 8.56 LMT ₹ 1914.97 crore (Qtr. June 2018) (Qtr. June 2018) (9%) (11%) 9.65 LMT ₹ 1763.48 crore (CPLY) (CPLY) 19
Slide 20: Traded Fertilizers Sale Quantity & Value
Traded Fertilizers Sale Quantity & Value Quantity Value 0.59 LMT ₹ 188.62 crore (Qtr. June 2018) (Qtr. June 2018) (234%) (181%) 0.21 LMT ₹ 56.41 crore (CPLY) (CPLY) 20
Slide 21: Sale Quantity & Value of Industrial Products
Sale Quantity & Value of Industrial Products 0.196 LMT ₹ 49.42 crore (Qtr. June 2018) (Qtr. June 2018) (8%) (7.5%) 0.212 LMT ₹ 45.63 crore (CPLY) (CPLY) 21
Slide 22: Sale of Agro chemicals
Sale of Agro chemicals (KG/Ltr.) Agro chemicals 300000 267533 250000 Quantity In KG/Ltr 200000 150000 101441 100000 50000 0 CPLY Qtr. June 2018 Period 22
Slide 23: Details of Expenses for the Quarter
DETAILS OF EXPENSES FOR THE QUARTER JUNE-2018 23
Slide 24: Details of Expenses for Qtr. June 18
Details of Expenses for Qr. June 18 Particulars Qr. June CPLY Increase/ Remarks 18 (Decrease) Production of urea (LMT) 9.12 9.39 (0.27) Decrease mainly at Nangal unit due to annual turnaround. Purchases of other 2.17 1.54 0.63 Higher purchase of DAP (0.76 LMT) and NPK fertilizers (LMT) (0.37 LMT) wh
Slide 25: Purchase of Traded Goods (Qty. and Value)
Purchase of Traded goods (Qty. and Value) Particulars Qr. June 18 CPLY Increase/ Qty. Inc./ Qty. Inc./ (Decrease) (Dec.) (Dec.) with Qty. Value (₹ Qty. Value with CPLY with CPLY CPLY % Crore) (₹ Crore) ₹ ( Crore) DAP (IMP) (LMT) 1.74 523.02 0.98 246.44 276.58 0.76 78 MOP (IMP) (LMT) - - 0.27 39.95 (
Slide 26: Purchase Value and Quantity of Traded Goods
Purchase Value and Quantity of Traded Goods Quantity Value 2.17 LMT ₹ 618.19 crore (Qr. June 18) (Qr. June 18) (41%) (85%) 1.54 LMT ₹ 334.50 crore (CPLY) (CPLY) 26
Slide 27: Production, Stock & Energy Consumption for the Quarter
PRODUCTION, STOCK & ENERGY CONSUMPTION FOR THE QUARTER JUNE-2018 27
Slide 28: Urea Production
UREA PRODUCTION Lakh MT April-June 2018 CPLY Variance with CPLY Unit Actual Actual Nangal 1.03 1.37 (0.34) Panipat 1.45 1.44 0.01 Bathinda 1.46 1.23 0.23 Vijaipur I 2.35 2.36 (0.01) Vijaipur II 2.83 2.99 (0.16) Total 9.12 9.39 (0.27) Production of urea during the quarter was higher at Panipat & Ba
Slide 29: Production of Urea (Preceding Years)
Production of Urea (Preceding 3 Years) (Qty. in MT) Production of Urea Annual Units 2015-16 2016-17 2017-18 NANGAL 546510 501759 542829 PANIPAT 567020 543057 560070 BATHINDA 548267 568418 562501 VIJAIPUR- I 992362 1058191 1050300 VIJAIPUR-II 1144412 1138629 1094550 TOTAL 3798571 3810054 3810250 Capa
Slide 30: On-Stream Days (Preceding Years)
On-Stream Days (Preceding 3 Years) Stream Days Annual Units 2015-16 2016-17 2017-18 NANGAL 342 316 334 PANIPAT 348 334 342 BATHINDA 336 349 342 VIJAIPUR- I 328 349 346 VIJAIPUR-II 347 338 320 Stream Days for the 1st Quarter 2015-16 2016-17 2017-18 2018-19 Units Q1 Q1 Q1 Q1 NANGAL 82 67 84 67 PANIPAT
Slide 31: Energy Consumption
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Norms Revised Energy Actual Energy Units NUP Norms for 2018-19* April-June 2018 CPLY Nangal 7.095 7.083 6.854 6.931 Panipat 7.614 7.592 6.708 6.917 Bathinda 7.479 7.459 6.861 7.159 Vijaipur I 5.904 5.896 5.842 5.853 Vijaipur II 5.569 5.500 5.461 5.381 * En
Slide 32: Urea Stock
UREA STOCK (LAKH MT) Unit As on As on As on 30.06.2018 31.03.2018 30.06.2017 Silo 1.17 0.91 1.08 MIT 0.47 0.10 0.40 Warehouse 0.33 0.40 0.73 Total stock 1.97 1.41 2.21 Details of silo stock Nangal 0.06 0.09 0.03 Panipat 0.16 0.08 0.03 Bathinda 0.04 0.12 0.06 Vijaipur I 0.45 0.16 0.49 Vijaipur II 0.4
Slide 33: Stock of Traded Fertilizer
Stock of Traded Fertilizer (MT) Products Stock as on Stock as on Increase/ 30.06.2018 30.06.2017 (Decrease) w.r.t. CPLY DAP 130857 81538 49319 MOP - 24241 (24241) APS 22905 27005 (4100) NPK 68510 - 68510 BS - 64 (64) Compost 529 305 224 Total 222801 133153 89648 Closing stock as on 30th June 2018
Slide 34: Analysis of Finance Cost
Analysis of Finance Cost 34
Slide 35: Break up of Total Finance Cost for Qtr. June 2018
BREAK UP OF TOTAL FINANCE COST FOR Qtr. JUNE 2018 ₹ Crore Particulars Qtr. June 2018 CPLY Increase/ (Decrease) Interest on Long Term Loans 1.88 2.57 (0.69) Interest on working capital Loans 53.03 29.28 23.75 Other borrowing costs (CP related 0.63 0.83 (0.20) charges) Other interest (mainly interest
Slide 36: Analysis of Interest Cost on Working Capital Loans
ANALYSIS OF INTEREST COST ON WORKING CAPITAL LOANS ₹ Crore Particulars Amount ₹ crore Interest on working capital loans in Qr. June 18 60.66 (₹ 53.03 crore (Urea) + ₹ 7.63 crore (Trading activities)) Interest on working capital loans in Qr. June 17 35.20 (₹ 29.28 crore (Urea) + ₹ 5.92 crore (Trading
Slide 37: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST Borrowing through CP for a higher period of 60 to 90 days (with maturity within the quarter) instead of 30 days for better rate /saving in other costs i.e. stamp duty, arranger fee, NSDL charges etc. - Saving of around ₹ 2.5 crore. Availed short term funds of ₹
Slide 38: Profit Variance Analysis for Qtr. June 2018
PROFIT VARIANCE ANALYSIS FOR Qtr. JUNE 2018 Company has earned Profit Before Tax of ₹ 65.91 as against Profit Before Tax of ₹ 39.66 crore during CPLY i.e. increase in profit by ₹ 26.25 crore. PBT has increased mainly due to: 1. Saving on account of decrease in energy consumption 2. Increase in contr
Slide 39: Important Financial Indicators
Important Financial Indicators Particulars Unit Qtr. June CPLY FY 2017-18 2018 Debt Service Coverage Ratio Times 2.35 2.00 2.35 Interest Coverage Ratio Times 2.31 2.33 3.15 Debt to Equity Ratio Times 2.19:1 1.64:1 1.54:1 Earning Per Share of ₹ ₹ /Share 10 * 0.84 0.53 4.34 Return on Average Net Worth
Slide 40: Segment Results for FY 2017-18
SEGMENT RESULTS FOR FY 2017-18 40
Slide 41: Segment Results
SEGMENT RESULTS ₹ crore Qtr. June 2018 CPLY Particulars ₹ crore % ₹ crore % Segment Revenue Own Fertilizers (Urea, BS and Bio- 1915.08 89% 1763.9 94% fertilizers) Fertilizer Trading 188.62 9% 56.41 3% Other Products 54.80 2% 50.56 3% Total 2158.50 100% 1870.9 100% Segment Results (i.e Profit before
Slide 42: Project Activities
PROJECT ACTIVITIES 42
Slide 43: Project Activities
Project Activities Energy saving scheme at Nangal, Bathinda and Panipat units at an estimated cost of ~ ₹ 675 crore has been taken up and work is in progress. SBI has sanctioned Rupee Term Loan of ₹ 1044 crore for Energy Saving and other capex of all units. Energy saving schemes at Vijaipur I
Slide 44: Overview of Ramagundam Project
Overview of Ramagundam Project Joint Venture of NFL, Engineers India Limited (EIL) & Fertilizers Corporation of India Limited (FCIL) is undertaking the revival of Ramagundam unit of FCIL Plant Capacity Ammonia Plant : 2200 MTPD (0.726 MMTPA) Urea Plant : 3850 MTPD (1.27 MMTPA) Project Cost - ₹ 5
Slide 45: Thank You
THANK YOU 45
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