Slide 1: Investor Presentation
Investor Presentation July 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by NOCIL 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 securities, and
Slide 3: Results Highlights
Results Highlights
Slide 4: Quarterly Performance
Quarterly Performance Rs. In Crores Revenue from Operations* Operating EBITDA PBT +24.7% +45.5% +42.6% 268 80 77 215 55 54 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Q1FY18 Q1FY19 Operating EBITDA Margins PBT Margins +449 bps +369 bps 29.9% 28.6% 25.4% 24.9% Q1FY18 Q1FY19 Q1FY18 Q1FY19 * Revenue from operations is
Slide 5: Consistent Performance
Consistent Performance Rs. In Crores Revenue from Operations* Operating EBITDA PBT 268 80 77 215 193 55 54 37 36 Q1FY17 Q1FY18 Q1FY19 Q1FY17 Q1FY18 Q1FY19 Q1FY17 Q1FY18 Q1FY19 Operating EBITDA Margins PBT Margins 29.9% 28.6% 25.4% 24.9% 19.3% 18.6% Q1FY17 Q1FY18 Q1FY19 Q1FY17 Q1FY18 Q1FY19 * Revenue
Slide 6: CAPEX – Key Growth Driver
CAPEX – Key Growth Driver To capitalize on growth opportunities, Company has Capex Phase I – Rs. 170 crores Phase II – Total Capex of Rs. 255 crores* Announced in March’17 • Phase I (a) - Expansion at Navi • For expansion of its production facilities for Rubber Chemicals (including Mumbai has been i
Slide 7: Statement of Profit & Loss - Quarterly
Statement of Profit & Loss - Quarterly Rs. In Crores Q1 FY19 Q1 FY18 Y-o-Y Q4 FY18 Q-o-Q Revenue from Operations* 268 215 24.7% 276 -2.8% Total Raw Material cost 119 96 122 Value Addition** 149 119 154 Value Addition (%) 55.6% 55.6% 55.8% Employee Expenses 18 19 17 Other Operating Expenses 51 46 52
Slide 8: Company Overview
Wh ARVIND MAFATLAL GRouP NOcIL LIMITED Company Overview
Slide 9: NOCIL in a Snapshot
NOCIL in a Snapshot Part of Arvind Mafatlal Group Largest Rubber Chemicals Manufacturer in India Expertise in Rubber Chemical Business over 4 decades State of the Art, Innovative, Sustainable & Competitive Technologies Wide range of Rubber Chemicals to suit customer needs Long Term Business Relation
Slide 10: Management Team
Management Team Mr. Hrishikesh . A. Mafatlal – Promoter & Chairman Mr. S. R. Deo – Managing Director • Executive Chairman and Promoter Director of NOCIL Ltd • M. Tech. in Chemical Engineering from IIT Kanpur • Associated with the company for nearly 39 years in various • B.Com. (Hons.) & has attended
Slide 11: Manufacturing facilities
Manufacturing facilities Navi Mumbai Plant Dahej Plant Set up in 1976 Commercialized operation in March 2013 Located in Trans-Thane Creek industrial area at Navi Located about 45 kms from Bharuch, Gujarat Mumbai, Thane - Belapur’s industrial zone designated for the chemical Industry, about 40 kms aw
Slide 12: Products & their Usage
Products & their Usage ACCELERATORS Increase the speed of vulcanization to improve productivity ANTI-DEGRADANTS/ ANTI-OXIDANTS An ingredient in rubber compounds which deters the ageing or inhibits degradation due to oxygen attack of rubber products thereby enhancing service life PRE VULCANIZATION IN
Slide 13: Our Value Proposition
Our Value Proposition Products & Product Forms R & D and Quality Assurance ▪ Experienced, capable & innovative ▪ Wide Range of Rubber Chemical Products team ▪ Varied Product Forms of R & D scientists. ▪ Ultra Modern Laboratories & Pilot 1 Plant Facilities ▪ Latest Analytical Instruments 3 2 Sales, M
Slide 14: R&D and Total Quality Management
R&D and Total Quality Management Research & Technology Quality Assurance Certifications Development ▪ NOCIL’s Research Centre is ▪ Quality Management ▪ ISO 9001:2008 recognized by Ministry of Science System with a focus on ▪ ISO 14001:2004 and Technology, Government of Quality of Raw materials, Indi
Slide 15: Industry Potential
Industry Potential Our Positioning
Slide 16: Positive Outlook: Global Rubber Consumption
Positive Outlook Global Rubber Consumption (Natural + Synthetic) In Lakh tonnes 290.0 290.0 282.8 7.2 8.2 274.6 268.0 6.6 263.4 4.6 7.6 255.8 2013 2014 2015 2016 2017 2018* Total Rubber Chemicals constitute ~3% - ~4% of the Rubber Consumption Every year ~40k additional demand for Rubber chemicals is
Slide 17: Huge Growth Opportunities
Huge Growth Opportunities Growth Expectations (Rs. Bn) 16,160 – 18,895 CAGR CAGR 2,074 – 2,423 growth: 9,560 growth: Automotive - Tyre 12%-14% 12%-14% Industry 11,320 Industry 4,640 6,600 595 3,325 - 1,315 7,575 2015 2026P 2015 2026P PV Car Penetration Levels Per 1,000 Population 500 450 425 250 200
Slide 18: Growth Drivers
Growth Drivers 01 High performance tyres & extended life, Automotive & Industrial products will increase rubber processing chemical loadings Stringent environmental compliance and cost increase in China 02 leading to Better level playing field Rising Income levels & increase in Motor vehicle ownersh
Slide 19: FUTURE Ready
Wh ARVIND MAFATLAL GRouP NOCIL LIMITE D FUTURE Ready
Slide 20: Technology & Speciality Chemicals – Moving up the curve
Technology & Speciality Chemicals – Moving up the curve Overall Improvement in Margin Profile of the Company 55% 56% 50% 52% 46% 42% 35% 30% 27% 19% 21% 19% 16% 17% 10% 4% 14% 8% 11% 4% FY13 FY14 FY15 FY16 FY17 FY18 Q1FY19 EBITDA (%) Value Addition (%) PAT (%) ✓ Strong Process R&D Capabilities leadi
Slide 21: Key Strengths
Key Strengths Dependable & Quality Wide Experienced Player in Product Management Rubber Range Team Chemicals Industry New Committed capacity plans for addition in Strong future Rubber Customer growth Chemicals Relationships with good Technical Support 21
Slide 22: Annual Financials
Wh ARVIND MAFATLAL GRouP NOcIL LIMITED
Slide 23: Consistent Annual Performance
Consistent Annual Performance Rs. In Crores Revenue from Operations* Operating EBITDA +16% CAGR +38% 968 263 CAGR 715 742 158 138 FY16 FY17 FY18 FY16 FY17 FY18 PBT PAT** +46% 253 +47% 169 CAGR CAGR 146 97 118 78 FY16 FY17 FY18 FY16 FY17 FY18 Figures are on Standalone basis * Revenue from operations
Slide 24: Improving Margin Trend
Improving Margin Trend Value Addition* Operating EBITDA Margin 51.6% 54.5% 27.2% 49.7% 21.3% 19.3% FY16 FY17 FY18 FY16 FY17 FY18 PBT Margin PAT Margin** 26.2% 17.4% 19.7% 13.0% 16.5% 10.9% FY16 FY17 FY18 FY16 FY17 FY18 *Revenue (-) cost of raw materials consumed (-) cost of traded goods (-) change i
Slide 25: Key Performance Ratios
Key Performance Ratios ROE ROCE 16.3% 24.5% 10.2% 10.7% 15.8% 16.1% FY16** FY17 FY18 FY16** FY17 FY18 Total Debt* (Rs. In Crores) Total Debt / Equity (x) 26 0.03 15 0.02 5 0.00 FY16** FY17 FY18 FY16** FY17 FY18 * Incl. Current Maturities **Calculated with 1st April’16 Balance Sheet figures Financial
Slide 26: Statement of Profit & Loss - Annually
Statement of Profit & Loss - Annually Particulars (Rs. In Crores) FY18 FY17 Revenue from Operations* 968 742 Cost of Material Consumed 444 330 Purchase of Stock-in-trade 3 3 Changes in Inventories -7 26 Value Addition** 527 383 Value Addition (%) 54.5% 51.6% Employee Expenses 67 61 Other Operating E
Slide 27: Balance Sheet
Balance Sheet Particulars (Rs. In Crores) March’18 March’17 Particulars (Rs. In Crores) March’18 March’17 ASSETS EQUITY AND LIABILITIES Non-Current Assets 652 741 EQUITY 1,037 905 Property, Plant and Equipment 499 514 Equity Share Capital 164 164 Capital work-in-progress 39 3 Other Equity 873 741 In
Slide 28: Consistent Dividend Record
Consistent Dividend Record As % of Face Value (Rs. 10) 25% 18% 12% 10% 6% 2014 2015 2016 2017 2018 28
Slide 29: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : NOCIL Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L99999MH1961PLC012003 CIN: U74140MH2010PTC204285 Mr. P. Srinivasan - CFO Ms. Payal Dave / Ms. Neha Shroff finance@nocil.com payal.dave@sgapl.net / neha.shroff@sgapl.ne