Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q2 FY20 Earnings Presentation
33 slides from Meghmani Organics's earnings presentation, November 2019
Slide 1: Meghmani Organics Limited Q2 FY20 Results Presentation
Meghmani Organics Limited (MOL) Q2 FY20 Results Presentation Nov 2019
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited or the solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of a
Slide 3: Discussion Summary
Discussion Summary Q2 FY20 Results Update About Us Business Overview Strategy & Outlook Financial Overview 3
Slide 4: Q2 & H1FY20 Results: Key Highlights
Q2 & H1FY20 Results: Key Highlights Q2 FY20 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin* 49.8% 18.3% 46.4% 23.3% 12.3% 20.7% 5,324 1,168 5,014 1,103 975 6% 6% 58 % 618 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 H1 FY20 YoY Analysis 50.8% 43.2% 24.6% 21.4%
Slide 5: Q2 & H1 FY20 Results: Revenue Analysis
Q2 & H1 FY20 Results: Revenue Analysis Q2 FY20 YoY Analysis Rs Mn Segment wise Breakup Region wise Breakup 30% 30% 47% 46% 39% 40% 53% 54% 31% 30% Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Pigment Agro Chemical Chloro Alkali & its Derivatives Export Domestic H1 FY20 YoY Analysis 33% 28% 49% 45% 36% 44% 51% 55
Slide 6: Q2 & H1 FY20 Results: Pigments Business
Q2 & H1 FY20 Results: Pigments Business Q2 FY20 YoY Analysis Production & Utilisation (%) Dispatch / Sales (MT) Net Sales (Rs Mn) & Exports EBITDA (Rs Mn) & Margin (%) 86% 84 % 73% 81% 13.7% 14.8% 6,000 350 15.0% 9,000 5,500 7,123 50.0% 4,442 1,645 300 243 10.0% 8,000 6,670 5,000 1,700 1,547 7,000 0
Slide 7: Q2 & H1 FY20 Results: Agrochemicals Business
Q2 & H1 FY20 Results: Agrochemicals Business Q2 FY20 YoY Analysis Production & Utilisation (%) Dispatch / Sales (MT) Net Sales (Rs Mn) & Exports EBITDA (Rs Mn) & Margin (%) 64% 71% 65 % 75% 7,000 6,000 700 22.0% 21.0% 30.0% 5,500 6,000 5,143 50.0% 5,000 4,600 2,183 600 20.0% 2,200 5,000 4,497 0.0% 4
Slide 8: Q2 & H1 FY20 Results: Chloro Alkali & its Derivatives Business
Q2 & H1 FY20 Results: Chloro Alkali & its Derivatives Business Q2 FY20 YoY Analysis Production & Utilisation (%) Dispatch / Sales (MT) Net Sales (Rs Mn) & Exports EBITDA (Rs Mn) & Margin (%) 89% 8% 4% 73% 37.3% 40.0% 1,200 62,000 80.0% 61,000 1,800 30.7% 35.0% 52,000 48,211 60.0% 51,000 46,012 1,700
Slide 9: Q2 & H1 FY20 Results: Consolidated Profit & Loss Statement
Q2 & H1 FY20 Results: Consolidated Profit & Loss Statement Particulars (Rs. in Mn) Q2 FY20 Q2 FY19 YoY% H1 FY20 H1 FY19 YoY% Revenue from Operations 5,324 5,014 6.2% 11,486 9,779 17.5% COGS 2,853 2,518 13.3% 6,523 4,812 35.6% Gross Profit 2,471 2,496 -1.0% 4,963 4,967 -0.1% Gross Margins % 46.4% 49.
Slide 10: Q2 & H1 FY20 Results: Consolidated Balance Sheet Statement
Q2 & H1 FY20 Results: Consolidated Balance Sheet Statement Particulars (Rs. in Mn) Sep 20 Mar 19 Particulars (Rs. in Mn) Sep 19 Mar 19 Equity & Liabilities Assets Share Capital 254 254 Property,Plant & Equipment 8,962 7,250 Reserves & Surplus 11,065 9,782 Capital WIP 5,681 5,127 Shareholder's Funds
Slide 11: Discussion Summary: About Us
Discussion Summary Q2 FY20 Results Update About Us Business Overview Strategy & Outlook Financial Overview 11
Slide 12: Well-Established Presence Across International & Domestic Markets
Well-Established Presence Across International & Domestic Markets Presence in more than 75 countries, serving over 400 customers across all three business segments Global distribution network with subsidiaries in the US, Dubai and a representative office in China 4 Warehouses in Turkey, Russia, USA
Slide 13: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Chloro Alkali & its Derivatives Agrochemicals Started in 1986 Started in 2009 Started in 1995 Amongst top 3 global Phthalocyanine 7th largest caustic-chlorine player in One of the largest producers of based pigment players India
Slide 14: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team Consistent Revenue Growth Rich experience of many decades in chemical sector among the founding members of the Improving Profitability & Return Ratios company Healthy Balance Sheet H
Slide 15: Key Financial Metrics
Key Financial Metrics Robust Return Ratios Improving profitability Leaner balance sheet Consistent Revenue Growth Significant improvement in return ratios Revenues have grown at CAGR 12.7% 01 04 ROCE 9.7% in FY15 to 29.2% in FY19 over FY15-19, with higher contribution ROE 7.4% in FY15 to 26.3% in FY
Slide 16: Key Milestones
Key Milestones 2019 Expansion into Chlormethane (CMS) production MOL gave successful exit to IFC from MFL by 2018 purchasing 24.97% for Rs 2,212 Mn 2016 Expansion into Caustic Potash production Setup new Pigment plant at Dahej SEZ 2013 - 14 Expansion of Caustic-Chlorine facility Acquired Agrochemica
Slide 17: Strong Leadership Team to Deliver Long Term Growth
Strong Leadership Team to Deliver Long Term Growth Experienced Leadership Team Mr. Jayanti Patel Mr. Ashish Soparkar Mr. Natwarlal Patel Mr. Ramesh Patel Mr. Anand Patel Executive Chairman Managing Director Managing Director Executive Director Executive Director 37 yrs of experience 37 yrs of experi
Slide 18: Discussion Summary: Business Overview
Discussion Summary Q2 FY20 Results Update About Us Business Overview Strategy & Outlook Financial Overview 18
Slide 19: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities Largest manufacturers of Phthalocyanine-based pigments with Total Capacity 32,940 MTPA 14% global market share & amongst top 3 (capacity wise) global pigments players Capacity Location Produ
Slide 20: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) & Capacity Utilisation (%) Dispatch / Sales (MT) 83.4% 35,000 76.6% 20,000 62.6% 64.8% 80.0% 18,000 16,090 15,999 30,000 70.0% 13,519 14,462 50.5% 25,982 25,226 60.0% 16,000 14,000 11,622 25,000 50.0% 12,000 19,487 20,194 40.0% 10,000 20,000 8,
Slide 21: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) The global pigments industry consists of three segments organic, in-organic and specialty pigment 50.0 43.0 Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 35.0 pigments indust
Slide 22: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile Leading manufacturer of pesticides products across entire value chain Sold to technical grade pesticides Pesticide Intermediates manufacturers Established global presence across Africa, Brazil, LatAm, US and Europe S
Slide 23: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) & Capacity Utilisation (%) Dispatch / Sales (MT) 40,000 616 69.7% 68.0% 65.6% 80.0% 25,000 581 567 35,000 60.5% 59.7% 70.0% 492 30,000 20,000 17,342 16,430 462 60.0% 15,624 354 307 348 25,000 13,369 18,431 18,666 50.0% 1
Slide 24: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) The global crop protection market is set to grow steadily to reach USD 58.7 Bn by 2020 58.7 Key drivers - growing population, declining arable land & rising pest 51.2 1.7 co
Slide 25: Chloro Alkali & its Derivatives Business: Key Highlights
Chloro Alkali & its Derivatives Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities 7th largest (by capacity) Caustic-Chlorine producer in India Dahej Facility Latest 4th Products Capacity (MTPA) Asahi Kasei Chemical Corp, Japan Caustic-Chlorine 166,6
Slide 26: Chloro Alkali & its Derivatives Business: Operational Overview
Chloro Alkali & its Derivatives Business: Operational Overview Production (MT) & Capacity Utilisation (%) Dispatch / Sales (MT) 93.0% 88.0% 300,000 86.0% 86.1% 100.0% 77.0% 90.0% 185,000 157,313 156,298 250,000 80.0% 70.0% 165,000 134,564 140,175 138,219 200,000 143,074 145,985 143,977 161,674 161,4
Slide 27: Chloro Alkali & its Derivatives Business: Industry Overview
Chloro Alkali & its Derivatives Business: Industry Overview Global Chlor-Alkali Market Global Chlor-Alkali Market Size (USD Bn) The global Chlor-Alkali industry is expected to grow at 5.3-5.9% 5.9% CAGR CAGR (2017-2023), to reach USD 125 Bn by 2023 125.0 140.0 120.0 88.6 The global demand for Chlor-
Slide 28: Discussion Summary: Strategy & Outlook
Discussion Summary Q2 FY20 Results Update About Us Business Overview Strategy & Outlook Financial Overview 28
Slide 29: Revenue Target Rs 10 Bn From Each Business Segment
Revenue Target Rs 10 Bn From Each Business Segment The Rs 6.4 Bn on-going capex & Rs 2.75 bn additional capex plan for manufacturing Epichlorohydrin (ECH) provides a solid revenue in an advantageous position, given the growth visibility over coming years MOL is one of the largest producer of current
Slide 30: Discussion Summary: Financial Overview
Discussion Summary Q2 FY20 Results Update About Us Business Overview Strategy & Outlook Financial Overview 30
Slide 31: Financial Summary
Financial Summary Rs Mn Revenues * & Gross Margin Revenues - Segment Breakup * CAGR 13% 50.5% 46.9% 49.5% 44.1% 43.2% 28% 30% 28% 33% 34% 28% 41.0% 20,880 18,034 37% 34% 35% 35% 37% 44% 12,942 13,322 14,196 11,486 35% 36% 37% 32% 29% 28% FY15 FY16 FY17 FY18 FY19 H1 FY20 FY15 FY16 FY17 FY18 FY19 H1 F
Slide 32: Financial Summary
Financial Summary Rs Mn Leverage Analysis Working Capital Analysis * 1.00 115 116 112 0.76 0.53 0.62 0.55 0.35 87 91 86 11,528 13,152 73 80 71 52 59 64 6,383 7,575 8,732 10,919 86 80 85 71 70 67 6,398 5,781 7,162 7,218 -44 -44 -44 -36 -39 -45 4,610 3,858 FY15 FY16 FY17 FY18 FY19 H1 FY20 FY15 FY16 FY
Slide 33: For Further Queries:
For Further Queries: Gurjant Singh Chahal, CFO Email: ir@meghmani.com Phone: +91-79717 61000 Hiral Keniya / Mehul Mehta IR Consultant Contact: 90296 62801 / 98920 62162 Email: meghmani@dickensonworld.com