Sumitomo Chemical India Ltd. · NSE:SUMICHEM
Sumitomo Chemical India — Q1 FY2024 Earnings Presentation
42 slides from Sumitomo Chemical India's earnings presentation, Jul 31, 2023
Slide 1: Exchange filing cover letter for investor presentation
+ SUMITOMO CHEMICAL INDIA LTD. Corporate Office: 13/14, Aradhana IDC, Near Virwani Industrial Estate, Goregaon (East), Corporate Identity Number (CIN) - L24110MH2000PLC124224 Mumbai - 400 063. Tel. : +91-22-4252 2200 / Fax : +91-22-4252 2380 URL http://www.sumichem-india.co.in SCIL/ SEC/ 2023 31st J
Slide 2: Evolving Responsibly – Investor Presentation July 2023
Evolving Responsibly Sumitomo Chemical India LTD. Investor Presentation July 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sumitomo Chemical India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Financial Performance and Key Highlights
Financial Performance and Key Highlights 3 Innovate Nurture Grow www.sumichem.co.in
Slide 5: Performance Highlights – Quarter
Performance Highlights – Quarter Revenue (Rs Crs) Gross Profit (Rs. Crs) 986 347 724 225 Q1FY23 Q1FY24 Q1FY23 Q1FY24 EBITDA (Rs. Crs) PAT (Rs Crs) 188 138 81 62 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Given the seasonality in the business, it is best monitored on an annual basis 4 Innovate Nurture Grow www.sumi
Slide 6: Performance Highlights – Q1FY24
Performance Highlights – Q1FY24 ✓ Our stance has been to consistently emphasize the importance of evaluating our performance on a yearly basis. This approach acknowledges that the performance of a specific quarter can be influenced, either positively or negatively, by external factors beyond the con
Slide 7: New Product Launches - PAN India
New Product Launches - PAN India Herbicide Herbicide Herbicide Insecticide Oxadiargyl 1% + Pretilachlor 6% GR Tembotrione 34.4% SC Chlorantrasniliprole 0.4% w/w GR Glufosinate Ammonium 13.5 SL Category: Herbicide 6 Innovate Nurture Grow www.sumichem.co.in
Slide 8: Consolidated Profit & Loss Account Statement – Quarter
Consolidated Profit & Loss Account Statement – Quarter Particulars (Rs. Crs) Q1 FY24 Q1 FY23 YoY Q4 FY23 QoQ FY23 Revenue from Operations 724.2 985.8 -27% 651.6 11% 3,511.0 COGS 498.9 639.2 447.4 2,270.6 Gross Profit 225.4 346.6 -35% 204.1 10% 1,240.3 Gross Profit % 31.1% 35.2% -405 bps 31.3% -21 bp
Slide 9: Revenue Breakup – Q1FY24
Revenue Breakup – Q1FY24 Product Breakup Geographic Breakup 7% 9% 7% 1% 4% 0% 2% 1% 8% 4% 3% 3% 3% 2% 2% 0% 8% 1% 8% 5% 39% 39% 6% Q1FY23 7% Q1FY24 Q1FY23 Q1FY24 80% 32% 33% 86% Insecticides PGR Fungicides Domestic Japan Europe North America Herbicides Metal Phosphides AND & EHD* Africa Asia (Ex. In
Slide 10: Consolidated Working Capital Movement
Consolidated Working Capital Movement Change Change Particulars (Rs. Crs) Jun-23* Jun-22* (Jun-23 to Mar-23* (Jun-23 to Jun-22) Mar-23) Inventory (A) 805.6 957.8 -152.2 888.7 -83.1 Inventory Days (Inventories/ COGS* No. of days in period) (i) 147 136 143 Trade Receivables (B) 810.0 1,057.9 -247.9 94
Slide 11: Company Overview
Company Overview 10 Innovate Nurture Grow www.sumichem.co.in
Slide 12: Journey to 15x Growth in India
Journey to 15x Growth in India SCIL – Vision & Mission Strategically Located Manufacturing Facilities Formidable Player in the Indian Strong Focus on R&D, Process Innovation Agrochemicals Space and Safety, Health and Environment (SHE) Diversified & De-risked Portfolio Across Autonomous Board with Va
Slide 13: SCIL - Vision & Mission
SCIL - Vision & Mission Vision & Values Mission Vision: Marketing and Sales: • To be a trusted market leader in Indian crop- • Further penetration into Indian market & take protection sector leadership; expand exports • To develop a vibrant corporate culture • Strengthen Sales Force, Distribution an
Slide 14: Journey to 15x Growth in India in last 13 years
Journey to 15x Growth in India in last 13 years Feasibility study to set-up correct business model to Exploration Phase : 2000 – 2009 capture potential in Indian market and start aggressive growth phase Manufacturing JV with New Acquired product - 2000 Chemi Industries 2002 Started EHD (Public Healt
Slide 15: Key Products
Formidable Player in the Indian Agrochemicals Space 5 200+ Brands Manufacturing Grown 15X+ over FY11-23 700+ SKUs Facilities Rs. Bn 14 15X 25+ Patents Technical 200+ Registrations 35.1 Actives 15,000+ Direct 1600+ Employees Distributors & 1500+ FDOs# #FDOs - Field Development 60 Depots Officers (con
Slide 16: Diversified & De-risked Portfolio Across the Agro-Chem Value Chain
Diversified & De-risked Portfolio Across the Agro-Chem Value Chain Well-Diversified across multiple dimensions Business Products Geographies Customers Crops Served Segments Diversified Portfolio Across Segments Geographic Diversification with Exports to ~50 countries Generics Speciality 7% 1% 4% Aus
Slide 17: Strong Brand and Well-Entrenched Distribution Network
Strong Brand and Well-Entrenched Distribution Network ✓ Strong brand with market leading position across various product categories ✓ Dual brand portfolio can offer products at all price points serving multiple 26 States 60 Depots customer sub-segments ✓ In-depth knowledge of own research products,
Slide 18: Expanding Brand Visibility and Connect
Expanding Brand Visibility and Connect ✓ Wide range of generics and speciality products for Increased crop presence and providing crop protection solutions ✓ More than 1,500+ Relationship managers connecting to 4.4 million+ farmers throughout crop cycle ✓ Over 200 brands covering maximum of crops an
Slide 19: Digital Marketing Initiatives
Digital Marketing Initiatives Develop “Digital Marketing” as a parallel support to Traditional marketing system leading to improved sales. YouTube - Advantage ✓ Our Digital Assets : 23 websites (9 local languages), engaged with 20 million consumers in FY23 More than 53,000 subscribers http://www.dan
Slide 20: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Connectivity to Major Cities and Proximity to Main Highways, Ports Reduces Logistic Time and Costs Plant Location Area (acres) Segment Served Product Manufactured Manufacturing of Technical Grade Pesticides Technical Grade Products: Bhavnagar ~58 Chlorp
Slide 21: R&D: End-to-End Product Development Capabilities
R&D: End-to-End Product Development Capabilities ❑ 3 fully equipped, DSIR approved R&D labs located at Mumbai, Bhavnagar and Gajod capable of synthesis, technical product and formulation development; Soil Health Research Laboratory and in-house field trials ❑ R&D Team comprises of 75+ qualified and
Slide 22: Capex Plans
Capex Plans Regular Capex Additional Capex Research & Development Rs. 70-75 crore p.a. Rs. 120 crore over 2 years for 5 products* Indian R&D team is working on manufacturing several off-patent products for Domestic as well as Exports To manufacture additional proprietary technical to global affiliat
Slide 23: Thrust on Safety, Health and Environment (SHE)
Thrust on Safety, Health and Environment (SHE) Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Abiding by SCC Japan’s EHS Policies ISO:9001:2015, ISO-14001:2015 and OHSAS18001:2007 for the manufacturing sites at Bhavnagar, Gajod, Tarapu
Slide 24: Awards & Accolades
Awards & Accolades Quality Certifications Ensure Consistent product quality and healthy working environment at manufacturing sites Jamnalal Bajaj Award for “Fair Business and Practices” National Safety Award by Labour Ministry, Government of India for safety performance Chemexcil Best Exporter's awa
Slide 25: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Dr. Mukul Govindji Asher Preeti Gautam Mehta Chairman and Independent Director Independent Non-executive Director ▪ Professorial Fellow at Lee Kuan Yew School of Public Policy at ▪ 30 years of experience in corporate laws, foreign investment the Nationa
Slide 26: Autonomous Board with Vast Industry Experience
Autonomous Board with Vast Industry Experience Tadashi Katayama Masanori Uzawa Non-executive Director Non-executive Director ▪ MBA from Vanderbilt University, U.S.A. ▪ MBA from University of Virginia, USA and a and a Master’s degree from Kyoto Bachelor’s degree from the University of University in J
Slide 27: Growth Strategies
Growth Strategies Continued Investment in R&D and Pipeline Capacity Expansion Achieving Market Leadership in • Aim to invest in seamless integration of R&D between SCIL and SCC • units which would help improve our production processes, Driving operational efficiencies maintaining highest safety stan
Slide 28: Financial Performance & Key Takeaways
Financial Performance & Key Takeaways 27 Innovate Nurture Grow www.sumichem.co.in
Slide 29: Historical Performance Highlights
Historical Performance Highlights Revenue (Rs Crs) EBITDA (Rs. Crs) & EBITDA Margin (%) PAT (Rs Crs) +13% 3,511 +25% 667 502 3,065 600 +28% 424 2,645 487 2,228 2,425 345 1,913 333 291 205 217 145 166 18.4% 19.6% 19.0% 11.3% 13.0% 13.7% FY18* FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 FY1
Slide 30: Consolidated Profit & Loss Account Statement
Consolidated Profit & Loss Account Statement Particulars (Rs. Crs) FY23 FY22 FY21 FY20 FY19 FY18 Net Revenue from Operations 3,511.0 3,061.2 2,644.9 2,424.8 2,228.4 1,912.9* COGS 2,270.6 1,908.0 1,655.4 1,607.6 1,458.9 1,238.7 Gross Profit 1,240.3 1,153.2 989.5 817.2 769.6 674.2 Gross Profit % 35.3%
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Equity & Liabilities (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Non-Current Assets (A) 581.2 487.6 367.6 360.6 318.3 312.7 EQUITY (A) 2,381.8 1,927.2 1,541.3 1,221.8 1,048.4 954.0 Property, Plant and Equip
Slide 32: Consolidated Working Capital Movement
Consolidated Working Capital Movement Particulars (Rs. Crs) Mar-23 Mar-22 Mar-21 Mar-20 Mar-19 Inventory (A) 888.7 937.8 754.4 588.0 680.6 Inventory Days (Inventories/ COGS*365) (i) 143 179 166 134 170 Trade Receivables (B) 946.1 843.1 848.2 849.8 671.0 Trade Receivables Days (Trade Receivables / Re
Slide 33: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended Year ended Year ended Year ended Year ended Year ended Particulars (Rs. Crs) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar19 31-Mar-18 Net Profit Before Tax 654.2 575.7 453.3 266.5 259.8 221.0 Adjustments for: Non-Cash Items / Other Investment or Financia
Slide 34: Key Takeaways
Key Takeaways Formidable Player in the Indian Experienced Management Team Well-diversified Product Portfolio Strong Brand and Well-Entrenched Agro-chem Space and Board of Directors Across Agro-Chem Value Chain Distribution Network ▪ Strong / leadership position across ▪ Strong management and ▪ Multi
Slide 35: Annexures
Annexures Glance of various events to bring people together 34 Innovate Nurture Grow www.sumichem.co.in
Slide 36: Glance of various events to bring people together
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Slide 37: Annual Sales Conference – Sumi Manthan
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Slide 38: Annual Distributor Meet – Sumi Bandhan
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Slide 39: Goal Setting Meet – Bhavnagar
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Slide 40: Goal Setting Meet – Gajod
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Slide 41: Goal Setting Meet – Vapi, Silvassa, Tarapur
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Slide 42: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Sumitomo Chemical India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110MH2000PLC124224 CIN: U74140MH2010PTC204285 Mr. Jigar Kavaiya / Mr. Parin Narichania +91 99206 02034 / +91 99300 25733 investor.relations@sum
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