Himadri Speciality Chemical Ltd. · NSE:HSCL
Himadri Speciality Chemical — Himadri Chemicals & Industries — FY2016 Earnings Presentation
27 slides from Himadri Speciality Chemical's earnings presentation, May 23, 2016
Slide 1: Investor Presentation May 23, 2016
www.himadri.com HIMADRI CHEMICALS & INDUSTRIES LIMITED Investor Presentation May 23, 2016
Slide 2: Safe harbor
Safe harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Himdari Chemicals & Industries Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 3: Agenda
Agenda Company Overview Journey So Far/ Milestones Business Overview Product Suite Key Strengths Manufacturing facilities Customers Global Presence Management Profile Strategic Outlook Financial Performance 3
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview • One of few integrated Speciality Carbon Chemical Largest Coal Tar Pitch companies in the world with global leadership position manufacturing company • Largest producer of Coal Tar Pitch in India with ~65% market share • One of the few global manufacturers to produce Zero Quinolene
Slide 6: Journey so far
Journey so far Started operations of expanded 2014 capacity of coal tar distillation at Mahistikry, Hooghly • R&D centre recognized by Government of India 2011 • Commissioned production of SNF at Hooghly • Started a CTP plant in China 2012 Expanded the capacity of 2010 Carbon Black and power plant a
Slide 7: Business Overview
Business Overview
Slide 8: Business Overview
Business Overview Coal Tar Pitch Complex speciality chemical with 22 chemical and physical properties obtained through coal tar distillation Carbon Black One of most important industrial chemicals in world with applications in rubber, plastics, coating, inks and batteries
Slide 9: Wide array of high demand speciality chemicals
Wide array of high demand speciality chemicals Products Applicability/developments Aluminium grade pitch Aluminium production Graphite grade binder pitch Graphite electrode manufacture Graphite grade zero QI coal tar Graphite electrode, nipple impregnation and UHP grade impregnating pitch electrode
Slide 10: Wide array of high demand speciality chemicals contd...
Wide array of high demand speciality chemicals contd... Category Product Applicability/developments Reinforcing agent for rubber, abrasion-resistant, tear-resistant, Carbon Black Carbon black improving fracture behavior with improved dynamic mechanical properties Anti-corrosion protection to undergr
Slide 11: Key Strengths- An Integrated Speciality Carbon Chemical Company
Key Strengths- An Integrated Speciality Carbon Chemical Company with global leadership position Compelling Competitive Position Storage & Distribution Strategic Sourcing Advantages • Long-term relationships with all major Indian raw • Plants well-connected through various material suppliers • Engage
Slide 12: Manufacturing Facilities
Manufacturing Facilities Strategically Located Manufacturing Locations Howrah, West BengalHooghly, West Bengal Vapi, Gujarat Sambalpur, Orissa Korba, Chattisgarh Vizag, Andhra Pradesh Capacity (MTPA) CTD CB SNF Howrah 48,000 Hooghly 3,22,000 1,20,000 50,000 Vizag 30,000 Vapi 18,000 Total 4,00,000 1,
Slide 13: Blue Chip Customers
Blue Chip Customers Coal Tar Pitch 13
Slide 14: Strong Global Presence
Strong Global Presence Poland USA China Egypt UAE Bahrain Japan Nepal Bangladesh Malaysia Singapore Philippines Ecuador Sri Lanka Indonesia Chile 14
Slide 15: Professional Management Team
Professional Management Team More than two decades of experience in finance and overall operations of Company Anurag Choudhary Under his leadership company gained reputation in international markets, undertook CEO expansion projects, raised capital through prominent investors viz; CVC & Bain Cap
Slide 16: Strategic Outlook
Strategic Outlook Key Growth Drivers Strategic Objectives Be amongst top three producers of Coal Tar Maintaining domestic leadership in Coal Tar Pitch products globally Leverage significant demand for Carbon Black in Become lowest cost producer of Coal Tar products tyre and speciality segmen
Slide 17: Annual Financial Highlights
Annual Financial Highlights
Slide 18: Financial Highlights - Standalone
Financial Highlights - Standalone 565bps 26% Gross Profit Margin EBITDA 27.9% Rs 155 cr 455bps 0.98 EBITDA Margin Debt Equity Ratio 13.5% 1.32 in FY15
Slide 19: Annual Financial Highlights - Standalone
Annual Financial Highlights - Standalone Sales Volumes Revenue from Operations In MT In Rs. Cr. 1363 1378 2,99,137 1152 2,59,968 2,72,771 2014 2015 2016 2014 2015 2016 Gross Profit EBITDA* In Rs. Cr. In Rs. Cr. 324 179 306 321 155 123 2014 2015 2016 2014 2015 2016 *EBITDA is inclusive of other opera
Slide 20: Annual Balance Sheet Highlights - Standalone
Annual Balance Sheet Highlights - Standalone In Rs. Cr. Net Worth Total Debt 1,326 889 1,089 834 827 867 2014 2015 2016 2014 2015 2016 Net Debt Net Working Capital 1,118 1,030 746 805 616 468 2014 2015 2016 2014 2015 2016 20
Slide 21: Consolidated annual profitability highlights
Consolidated annual profitability highlights In Rs. Cr. FY-16 FY-15 YoY • Revenue from Revenue from Operations 1,182.6 1,436.3 (18%) operations at Rs 1,183 crore, mainly on Other Operating Income 0.8 1.7 account of decrease in Total Income 1,183.4 1,438.0 (18%)% price realisation; Raw Material & oth
Slide 22: Consolidated balance sheet highlights
Consolidated balance sheet highlights In Rs. Cr. FY-16 FY-15 In Rs. Cr. FY-16 FY-15 Shareholder’s Funds 846.9 788.5 Non-current Assets 1,332.5 1,365.9 Share capital 41.8 38.6 Fixed assets 1,211.3 1,242.4 Reserves & Surplus 805.0 749.9 Non-current Investments 2.0 2.0 Minority Interest - 0.3 Long-term
Slide 23: Quarterly Financial Highlights
Quarterly Financial Highlights
Slide 24: Standalone Quarterly Highlights – Last Five Quarters
Standalone Quarterly Highlights – Last Five Quarters Revenue from Operations EBITDA* In Rs. Cr. In Rs. Cr. 342 310 306 54 276 49 260 36 17 7 Q4 FY15 Q1 FY16 Q2 FY16 Q3FY16 Q4FY16 Q4 FY15 Q1 FY16 Q2 FY16 Q3FY16 Q4FY16 *EBITDA is inclusive of other operating income, but excludes other income and Forei
Slide 25: Quarterly Highlights - Standalone
Quarterly Highlights - Standalone Particulars (In Rs. Cr.) Q4 FY16 Q4 FY15 YoY Q3 FY16 QoQ Total Income from Operations 260.2 341.9 (24%) 305.5 (15%) • Revenue from operations at Rs 260 crore, mainly on account of decrease Total Expenditure 211.2 335.4 (37%) 252.0 (16%) in price realisation; However
Slide 26: Recent Developments
Recent Developments Conversion of Deep Discount Bond • Conversion of 12,300 Deep Discount Debentures (12.2% pa) into 3,26,75,297 equity shares of Re. 1/- each • Conversion price at Rs. 19/- per shares (including premium of Rs. 18/- per share) resulting in increased promoter holding. Post DDD Shareho
Slide 27: Thank You
Thank You 500184 HCIL HCI IN HMCH.NS For further information, please contact: Company : Investor Relations Advisors : Himadri Chemicals & Industries Limited Bridge Investor Relations Pvt. Ltd. Savli Mangle Anurag Choudhary savli@bridge-ir.com anurag@himadri.com Dheeraj Manwani dheeraj@bridge-ir.com
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