Primo Chemicals Limited · NSE:PRIMO
Primo Chemicals — Q4 FY2023 Earnings Presentation
25 slides from Primo Chemicals's earnings presentation, Jun 29, 2023
Slide 1: Cover letter to BSE: Earnings Presentation
PRIMO CHEMICALS PCL.SEC:2023:2050 29.06.2023 BSE Limited, 1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, MUMBAI- 400 001 Scrip Code: 506852 Subject:- Company's Earnings Presentation Dear Sir, Pursuant to Regulation 30 read with Schedule 111 of the SEBI (Listing Oblig
Slide 2: Earnings Presentation Q4 and FY2023
HYDROGEN GAS CAUSTIC SODA LYE LIQUID CHLORINE SODIUM HYPOCHLORITE HYDROCHLORIC ACID Formerly known as Punjab Alkalies & Chemicals Ltd. (BSE: 506852) Earnings Presentation Q4 and FY2023 www.primochemicals.in
Slide 3: Company Snapshot
Company Snapshot Primo Chemicals is the largest producer of Caustic Soda in Northern India Products Upcoming Developments Manufacturing units: Location: Ropar, Punjab (India) Combined Manufacturing capacity of 165,000 TPA of Caustic Soda Caustic Soda Lye Caustic Soda Flake Hydrochloric Acid Aluminiu
Slide 4: Performance Highlights
Performance Highlights Page 3 of 24
Slide 5: FY23 - Performance Highlights
FY23 - Performance Highlights Rs. 7,074 Mn 56% FY 2023 Financial Performance Y-o-Y 51% Operating Revenue Gross Profit Margin ➢ Revenue increased by 56% ➢ EBITDA margins improved by 850 bps ➢ Net Profit margins improved by 645 bps 115% Rs. 2,185 Mn Y-o-Y 30% ➢ Net operating cash flows of Rs. 1,496 mi
Slide 6: Strategic Growth Priorities
Strategic Growth Priorities Strategic roadmap to double the revenue and profitability in upcoming years Recent Developments Upcoming Developments • Commissioning of Caustic Flakes plant in Q2 FY24. • Commissioning of Aluminum Chloride project in Q2FY24 Healthy growth of Caustic Soda (Environmental c
Slide 7: Operational Overview - Realization
Operational Overview - Realization Caustic Soda Rate / MT ECU Realization 52,766 51179 49573 54,565 52,862 46,720 51,183 49,698 39,847 41,685 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Caustic Soda Price ECU Realization • ECU realization was down by 16.1% and 21.
Slide 8: Operational Performance Indicators
Operational Performance Indicators Sales Volumes (MT) Utilised Capacity (MT) Total Capacity (MT) 38,000 38,000 Q4 FY23 Performance 35,072 32,477 32,165 30,466 31,745 32,465 24,750 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Sales Volumes (MT) Utilised Capacity (MT) Total
Slide 9: Annual Performance Trends
Annual Performance Trends (in Rupees Million) Revenue from Operations 56% YOY EBITDA 115% YOY 7,074 2,185 4,541 2,904 1,018 2,263 365 427 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 PBT 147% YOY Net Profit 132% YOY 1,865 1,374 592 755 88 82 182 201 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Notes: 1. EBITD
Slide 10: Annual Performance Trends
Annual Performance Trends Gross Profit Margins 410 bps YOY EBITDA Margins 810 bps YOY 51.1% 29.8% 47.0% 38.6% 21.7% 32.4% 15.2% 11.7% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 PBT Margins 930 bps YOY Net Profit Margins 610 bps YOY 18.7% 25.4% 12.6% 16.1% 5.8% 7.1% 2.8% 2.9% FY20 FY21 FY22 FY23 FY20 FY
Slide 11: Key Ratios
Key Ratios Return on Capital Return on Equity (%) CFO / EBITDA (%) Employed (%) 123% 43.5% 39.9% 38.8% 31.8% 75% 69.0% 68.5% 25.5% 23.6% 13.0% 9.9% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 (Consolidated Financials) ROCE = EBIT / Avg. Capital Employed of FY22 and FY23; ROE = Net Pr
Slide 12: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary Q4 Y-o-Y Q3 Q-o-Q Full Year Y-o-Y (in Rs. Mn) FY2023 FY2022 Growth (%) FY2023 Growth (%) FY2023 FY2022 Growth (%) Revenue from Operations 1,478 1,611 (8)% 1,876 (21)% 7,074 4,541 56% Other Income 74 49 51% 48 55% 262 152 73% Total Income 1,552 1,659 (6)% 1,
Slide 13: Company Overview
Company Overview Page 12 of 24
Slide 14: Key Strengths
Key Strengths Caustic Soda Chlorine and Hydrogen Power Supply and Strategic location Producer Captive Application Operations ➢ Primo Chemicals is the largest ➢ Acquisition of Flow Tech to ➢ Bhakra Nangal Dam, provides ➢ Manufacturing units located producer of Caustic Soda in secure forward integrati
Slide 15: Product Flow Summary
Product Flow Summary Accelerating strategic growth initiatives and fortifying our business for the future Raw Material Production Level 1 Production Level 2 Application Paper and Paper Pulp, Soap and Detergents, Textile, Dye, Stuff Caustic Soda Lye Industry, Aluminium Industry, Linear Alkyl, Benzine
Slide 16: Journey So Far
Journey So Far 100 TPD grassroot plant based on the HOECHST - UHDE Membrane Cell Manufacturing capacity Technology was expanded from 300 TPD to Commenced Installed capacity of commissioned (now Unit- Conversion of Existing 500 TPD operations with Caustic Soda Lye and II) Installed capacity of 200 TP
Slide 17: Board of Directors: Diversified Experience
Board of Directors: Diversified Experience Experienced team of management committed to strengthen business offerings and driving future growth Mr. Sukhbir Singh Dahiya Mr. Naveen Chopra (Non-Executive Chairman) (Managing Director) • An industrialist though leader with experience of over 31 years • E
Slide 18: Key Customers
Key Customers Diversified customer base operating across industry sectors Page 17 of 24
Slide 19: Industry Overview
Industry Overview Caustic Soda demand is expected to continue, and prices may stabilize at current levels amidst the ongoing rising global energy price environment Global Market Outlook Indian Market • The Caustic Soda industry is expected to see steady • 32 active Chlor-Alkali Units in India growth
Slide 20: ESG Initiatives
PRIMO CHEMICALS L1D. ESG Initiatives Page 19 of 24
Slide 21: Environment
Environment It has always been the top priority of the Company to carry out its operations in an environment friendly fashion • Environment Strategy: Primo Chemicals recognizes that effective environment management is fundamental to our business. We shall strive to integrate sound business practices
Slide 22: Social
Social Continue to enhance value creation in the society and in the community to promote sustained growth for the society and community • Social Strategy: In alignment with the vision of the Company, Primo, through its CSR initiatives, shall continue to "Punjab State enhance value creation in the so
Slide 23: Governance
Governance Philosophy on the code of Corporate Governance is to ensure fair and transparent business practices • Corporate Governance Policies: The Company’s core philosophy on the code of Corporate Governance is to ensure fair and transparent business practices with accountability for performance.
Slide 24: Disclaimer and Contact Information
Disclaimer and Contact Information This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Primo’s future business developments and economic per
Slide 25: Thank You
HYDROGEN GAS CAUSTIC SODA LYE (Formerly Known as Punjab Alkalies & Chemicals Limited) LIQUID CHLORINE SODIUM HYPOCHLORITE THANK YOU HYDROCHLORIC ACID REGISTERED OFFICE CORPORATE OFFICE www.primochemicals.in S.C.O. 125-127, Sector 17-B, Chandigarh – 160 017. (INDIA) BAY No. 46 – 50, Sector 31-A. Chan