Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — FY2023 Earnings Presentation
34 slides from Sharda Cropchem's earnings presentation, May 12, 2023
Slide 1: Filing cover letter to stock exchanges
12th May, 2023 To, National Stock Exchange of India BSE Limited Limited Phiroze Jeejeebhoi Tower, Exchange Plaza, 5th Floor, Plot No. Dalal Street, C/1, Mumbai – 400 001 G-Block, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Trading Symbol: SHARDACROP Scrip Code: 538666 Subject: Investors / Ana
Slide 2: Investor Presentation May 2023
Investor Presentation May 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sharda Cropchem 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 secur
Slide 4: About Sharda Cropchem Limited
About Sharda Cropchem Limited
Slide 5: Fast-growing global agrochemicals company
“We are a fast-growing global agrochemicals company with a peer position in the generic crop protection chemicals industry. Our vast and growing library of dossiers and IPRs provide us solid foundations for growth in the global marketplace, especially in Advanced Markets such as Europe, North Americ
Slide 6: Agrochemical Focused Company
Agrochemical Focused Company Intellectual Property (IP) driven company engaged in marketing and distribution of wide range formulations and generic active ingredients Efficiently channelizing time and resources for strengthening core Asset Light Business Model competency of identifying generic molec
Slide 7: Asset Light Business Model
Asset Light Business Model Overall Agrochemical Value Chain Sharda’s Operating Area √ √ √ √ Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Manufacturing Research Packaging Distribution SHARDA CROPCHEM’s ASSET LIGHT BUSINESS MODEL Focus on identification of ge
Slide 8: Increasing Global Presence having a Widespread Distribution
Increasing Global Presence having a Widespread Distribution Over the years, we’ve built a strong brand Presence franchise within our global markets; we are benefiting through the economies of scale in 80+ countries our portfolio and leveraging value of our across Europe, NAFTA, supply chain to deliv
Slide 9: The Sharda Advantage
The Sharda Advantage THE SHARDA ADVANTAGE One Stop Healthy Solution Wide Product Quality with Faster Sales Global Reach relationships Provider for Range Affordability Service with suppliers Crop Care Products 8
Slide 10: Way Forward
Way Forward Forward Integration - Build Sales Force Expand & Strengthen Distribution Presence ➢ Leverage market presence and execution capabilities ➢ Expand geographical reach using existing library of dossiers ➢ Adopt the factory to farmer approach and be a one stop solution provider ➢ Two-fold str
Slide 11: Industry Outlook and Growth Drivers
Industry Outlook and Growth Drivers Global crop protection chemicals market value (In Billion USD) – CAGR of 3.5% 59.7 62.8 77.0 53.0 42.0 43.7 8.1 8.4 10.2 7.7 5.3 3.9 5.9 4.3 5.4 0.5 0.6 0.8 2020 2025e 2030e Herbicide Fungicide Insecticide Nematicide Molluscicide INDUSTRY DRIVERS 1 2 3 Fewer arabl
Slide 12: Experienced Management
Experienced Management Mr. Ramprakash V. Bubna Mr. Ashish Bubna Mr. Manish Bubna Mr. Ashok Vashisht Chairman & Managing Director Whole Time Director Whole Time Director Chief Financial Officer • Holds a Bachelor’s Degree of • Holds a Bachelor’s Degree in • Holds a Bachelor’s Degree in Chemical • He
Slide 13: Q4 FY23 Financial Highlights
Q4 FY23 Financial Highlights
Slide 14: Q4 FY23: Segment Wise Highlights
Q4 FY23: Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 87% 89% 13% 11% % of Revenue 100% 100% 1,316 191 1,434 1,482 1,243 166 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 +6% -13% +3% On Consolidated Basis 13
Slide 15: Q4 FY23: Region Wise Breakup (Agrochemical Segment)
Q4 FY23: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 49% 68% 39% 23% +46% -37% 1,316 893 487 1,243 611 309 Q4FY22 Q4FY23 Q4FY22 Q4FY23 LATAM Region RoW 9% 4% 3% 5% Q4FY22 Q4FY23 +88% -58% 110 67 47 36 +6% Q4FY22 Q4FY23 Q4FY22 Q4FY23 % of R
Slide 16: Q4 FY23: Region Wise Breakup (Non Agrochemical Segment)
Q4 FY23: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 28% 12% 57% 67% +1% -64% 191 54 110 111 166 19 Q4FY22 Q4FY23 Q4FY22 Q4FY23 LATAM Region RoW 5% 3% 9% 18% Q4FY22 Q4FY23 +78% -50% 10 31 5 17 -13% Q4FY22 Q4FY23 Q4FY22 Q4FY23 % o
Slide 17: Q4 FY23: Financial Highlights
Q4 FY23: Financial Highlights Cr. Revenues & GP Margin EBITDA & EBITDA Margin* 22.1% 31.6% 21.0% 29.2% Revenue growth led by better product mix & price realization EBITDA and EBIDTA 1,434 1,482 317 312 Margins were impacted Gross Margins have improved due to general inflation by 240 basis points due
Slide 18: FY23 Financial Highlights
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Slide 19: FY23 Segment Wise Highlights
FY23 Segment Wise Highlights Cr. Agrochemical Segment Non Agrochemical Segment TOTAL REVENUES 84% 83% 16% 17% % of Revenue 100% 100% 3,348 697 4,045 3,004 3,580 576 FY22 FY23 FY22 FY23 FY22 FY23 +11% +21% +13% On Consolidated Basis 18
Slide 20: FY23: Region Wise Breakup (Agrochemical Segment)
FY23: Region Wise Breakup (Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Agrochemical Segment) 46% 53% 38% 34% +29% -2% 3,348 1,774 1,153 1,125 1,379 3,004 FY22 FY23 FY22 FY23 LATAM Region RoW 10% 7% 5% 6% FY22 FY23 +34% -24% 315 209 239 156 +11% FY22 FY23 FY22 FY23 % of Revenue On C
Slide 21: FY23: Region Wise Breakup (Non Agrochemical Segment)
FY23: Region Wise Breakup (Non Agrochemical Segment) Cr. Europe NAFTA Region TOTAL REVENUES (Non - Agrochemical Segment) 31% 20% 50% 61% +47% -24% 697 179 424 136 287 576 FY22 FY23 FY22 FY23 LATAM Region RoW 5% 5% 14% 14% FY22 FY23 +35% +23% 37 101 27 82 +21% FY22 FY23 FY22 FY23 % of Revenue On Cons
Slide 22: Impact of weakened Euro to the Dollar in FY23
Impact of weakened Euro to the Dollar in FY23 USD / Euro Price Chart 1.15 Unprecedented depreciation of Euro to the USD The Euro has rebounded to some extent and this 1.11 led to forex losses of Rs. 82 crores in H1 FY23 has led to forex gain of Rs. 24 crores in H2 FY23 1.1 1.09 1.05 1 0.98 0.95 01-0
Slide 23: FY23: Financial Highlights
FY23: Financial Highlights Cr. Revenues & GP Margin EBITDA & EBITDA Margin* 20.4% 30.2% 29.3% 17.6% Revenue growth led by better EBITDA and EBIDTA Margins product mix and price realization. were impacted due to lower GP 4,045 729 713 Margins driven by weakening of 3,580 Gross Margins have been €/$ l
Slide 24: Strong Balance Sheet
Strong Balance Sheet Working Capital (in Days) RoCE RoE 25.7% 19.8% 89 days 104 days 20.8% 16.5% 152 138 140 121 Mar-22 Mar-23 Mar-22 Mar-23 91 72 Cash & Cash Total Equity Total Debt Equivalents Mar-22 Mar-23 Rs. 2,232 Rs. 3 crores Rs. 328 crores crores* Inventory Days Recievable Days Creditor Days
Slide 25: Annexure
Annexure
Slide 26: Q4 & FY23 Financial Highlights
Q4 & FY23 Financial Highlights Cr. Particulars Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Revenue from Operations 1,481.8 1,434.5 3% 4,045.2 3,579.8 13% COGS 1,013.9 1,015.3 2,860.8 2,499.8 Gross Profit 467.9 419.2 1,184.4 1,080.0 Gross Margin % 31.6% 29.2% 29.3% 30.2% Employee Expenses 15.2 12.7 44.8 44
Slide 27: Balance Sheet - Consolidated
Balance Sheet - Consolidated Cr. EQUITY & LIABILITIES Mar-23 Mar-22 ASSETS Mar-23 Mar-22 Equity Non-current assets Equity share capital 90.2 90.2 Other equity 2141.8 1822.2 Property, plant and equipment 5.0 14.4 Equity attributable to equity holders of the Company 2,232.0 1,912.5 Goodwill 0.0 0.0 No
Slide 28: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Cr.) FY23 FY22 Profit Before Tax 430.7 464.2 Adjustments 266.5 256.9 Operating profit before working capital changes 697.2 721.1 Changes in working capital -303.7 -379.2 Cash generated from operations 393.5 341.9 Direct taxes paid (net of refund) -65.3 -74.8 Net
Slide 29: Key Financial Performance Indices
Key Financial Performance Indices Cr. Revenue EBITDA & EBITDA Margin* Profit After Tax & PAT Margin 20.7% 18.5% 17.6% 19.0% 17.6% 11.2% 8.8% 8.2% 9.8% 8.5% 4,045 3,580 729 713 349 342 2,396 1,998 2,003 455 229 369 352 176 165 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 30: Historical Profit & Loss
Historical Profit & Loss Cr. Particulars FY23 FY22 FY21 FY20 FY19 Revenue from Operations 4,045.2 3,579.8 2,395.6 2,003.0 1,997.6 COGS 2,860.8 2,499.8 1,636.0 1,388.8 1,387.3 Gross Profit 1,184.4 1,080.0 759.7 614.3 610.2 Gross Margin % 29.3% 30.2% 31.7% 30.7% 30.5% Employee Expenses 44.8 44.2 37.3
Slide 31: Balance Sheet – Equity & Liabilities
Balance Sheet – Equity & Liabilities Cr. Equities & Liabilities FY23 FY22 FY21 FY20 FY19 Shareholder's Funds Equity and Share Capital 90.2 90.2 90.2 90.2 90.2 Other Equity 2141.8 1,822.2 1,524.1 1,312.6 1,193.7 Non-controlling Interest 0.4 0.3 0.3 0.3 0.2 Total Equity 2,232.4 1,912.8 1,614.6 1,403.1
Slide 32: Balance Sheet - Assets
Balance Sheet - Assets Cr. ASSETS FY23 FY22 FY21 FY20 FY19 Assets Non-Current Assets Property, Plant and Equipment 5.0 14.4 20.9 27.8 13.5 Goodwill 0.0 0.0 0.4 0.4 0.4 Other Intangible assets 663.0 577.4 523.1 388.1 357.8 Intangible assets under development 203.9 212.2 131.0 161.4 219.8 Deferred Tax
Slide 33: CSR Activities
CSR Activities CSR initiatives taken up by the Company are in the areas of Promoting Education, Healthcare, Eradicating Hunger, Empowerment of Women, Animal Welfare, Promotion of Sports and Rural Development Projects Promoting Education Animal Welfare Medical Aid & Relief 32
Slide 34: Thank You
THANK YOU Company: Sharda Cropchem Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L51909MH2004PLC145007 CIN: U74140MH2010PTC204285 Mr. Ashok Vashisht - CFO Mr. Deven Dhruva cfo@shardaintl.com deven.dhruva@sgapl.net Tel: +91 22 6678 2800 Tel: +91 98333 73300