Epigral Ltd · NSE:EPIGRAL
Epigral — Meghmani Finechem — Q4 FY2022 Earnings Presentation
23 slides from Epigral's earnings presentation, Apr 25, 2022
Slide 1: Covering letter to stock exchanges for earnings presentation
MEGHMANI LTD. Regd. Oflice: CH/1, CH/2, GIDC Industrial Estate, Dahej, Tai. Vagra, Bharuch - 392 130. Gujarat, (INDIA) Phone: +91- 635 9953661/62/63/64/65, E-mail: helpdesk@meghmanifinechem.com, URL: www.meghmanilinechem.com GIN: L24100GJ2007PLC051717 25 th April, 2022 To, National Stock Exchange of
Slide 2: Meghmani Finechem Limited Q4 & FY22 Earnings Presentation
Meghmani Finechem Limited Q4 & FY22 Earnings Presentation 25th April, 2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Meghmani Finechem Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall
Slide 4: Company Overview
Company Overview Founded: 32% 29% 2007 5 Year Revenue CAGR (FY22) 5 Year EBITDA CAGR (FY22) Employees: 850+ 1.3x 29% Debt to Equity (FY22) ROCE (FY22) Capacity: Chlor-Alkali# – 315 KTPA 5,000 Derivatives# – 110 KTPA Revenue from operations (₹ Cr) 1551 Certified: Responsible Care Certificate 829 710
Slide 5: Key Highlights – FY2022
Key Highlights – FY2022 Operational Highlights: o Overall plant utilisation increased to 87% in FY22 compared to 81% in FY21 o Hydrogen Peroxide (H2O2) achieved capacity utilization of 78% in FY22 , up 21% on a YoY basis o Caustic Soda & Caustic Potash ECU realisation is up 74% & 27% respectively o
Slide 6: Key Highlights – Q4FY22
Key Highlights – Q4FY22 Operational Highlights: o Overall plant utilization was marginally up 90% compared to 89% in the corresponding prior period o Caustic soda ECU realization is up 112% YoY; Caustic Potash is up 73% on a YoY basis. o CMS & Hydrogen Peroxide sales realization is up 26% & 16% resp
Slide 7: CMD Message
CMD Message “This has been a landmark year for MFL. We made a debut on stock exchange as an independent entity in August 2021. I am pleased to announce, we have delivered record financial performance. We have achieved highest ever Revenue & PAT of ₹ 1,551 Cr and ₹ 253 Cr. This is a testimony of our
Slide 8: Revenue & Gross Margin
Revenue & Gross Margin 850 YoY Growth - 93% 70% 2,000 YoY Growth - 87% 70% 750 1,800 51% 55% 60% 60% 1,600 53% 51% 1,551 650 50% 46% 50% 1,400 50% 54% 550 499 1,200 422 40% 450 40% 1,000 340 829 350 30% 290 30% 800 259 250 600 20% 20% 400 150 10% 10% 200 50 - 0% -50 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY2
Slide 9: EBITDA & EBITDA Margin
EBITDA & EBITDA Margin 300 YoY Growth - 118% 45% YoY Growth % - 95% 700 38% 33% 40% 32% 33% 250 35% 600 33% 32% 35% 509 30% 28% 500 200 30% 31% 175 23% 25% 400 150 141 18% 20% 101 300 261 92 13% 100 80 15% 200 10% 8% 50 5% 100 3% - 0% - -2% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY2021 FY2022 ₹ Cr EBITD
Slide 10: PAT & PAT Margin
PAT & PAT Margin 170 YoY Growth % - 202% 25% 400 YoY Growth % - 151% 20% 150 350 16% 18% 20% 20% 16% 130 300 17% 12% 253 14% 110 99 250 14% 15% 12% 90 13% 13% 200 10% 70 70 8% 10% 150 47 101 6% 50 37 33 100 30 4% 5% 50 2% 10 - 0% -10 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 0% FY2021 FY2022 ₹ Cr PAT Margi
Slide 11: Creating Superior Shareholder Value
Creating Superior Shareholder Value ROCE (%) ROE (%) Debt/EBITDA (x) 36% 29% 2.1 1.9 16% 15% FY21 FY22 FY21 FY22 FY21 FY22 o ROCE and ROE improved on account of higher realization from all the products; and supported by volume growth on account of expansion of H2O2 and Caustic Soda o Debt/EBITDA has
Slide 12: Revenue Break-up – Diversified Business Model
Revenue Break-up – Diversified Business Model 26% 26% FY2021 FY2022 ₹ 829 Cr ₹ 1,551 Cr 74% 74% Chlor-Alkali Derivatives Chlor-Alkali Derivatives 11 | MEGHMANI FINECHEM LIMITED
Slide 13: Operational Overview – Chlor-Alkali
Operational Overview – Chlor-Alkali Chlor-Alkali Production (KTPA) & Utilisation (%) 100 92% 350 90% 90% 90 89% 90% 300 86% 80 87% 88% 85% 88% 70 250 81% 86% 60 80% 200 84% 50 79% 82% 150 40 270 75% 71 68 69 70 80% 230 30 62 100 78% 70% 20 50 10 76% - 65% - 74% FY2021 FY2022 Q4FY21 Q1FY22 Q2FY22 Q3F
Slide 14: Operational Overview – Derivatives
Operational Overview – Derivatives 17 Chloromethane - Production (KTPA) 110% & Utilisation (%) 103% 105% 105% 103% 55 15 108% 107% 105% 100% 50 100% 13 94% 100% 11 95% 45 95% 14 13 40 50 52 9 13 13 90% 12 90% 7 85% 35 5 80% 30 85% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY2021 FY2022 For Quarter Ending F
Slide 15: Operational Overview – Realisations
Operational Overview – Realisations FY22 - Change in ECU and Sales Realization % YoY Caustic Soda ECU Realization 74% 53% 49,336 45,852 27% 27,201 20% 23,246 25,183 Caustic Soda - ECU Caustic Potash - ECU Chloromethanes Hydrogen Peroxide Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 o Improved realizations acr
Slide 16: Debt Maturity Profile as on 31st March 2022
Debt Maturity Profile as on 31st March 2022 Long Term Debt *– ₹ 909 Cr 33% o Net long-term debt increased by ₹ 239 Cr in FY22 19% 15% 15% o The debt maturity profile indicates a strong Free 9% 9% Cash flow o More then 40% of our debt have average maturity of more then 4 years 1 Year 2 Years 3 Years
Slide 17: Project Update
Project Update Expected Capex Spends - ₹ Cr % of project Product Capacity Commissioning completed 449 Date Epichlorohydrin 50KTPA Q1FY23 95% CPVC Resin 30KTPA Q2FY23 90% Caustic Soda 180 106KTPA Q2FY23 85% with CPP 135 Chlorotoluene & - Q4FY24 - its value chain R&D Centre - Q2FY24 - FY2021 FY2022 FY
Slide 18: FY2023 Outlook
FY2023 Outlook ~50% ~26% + ~25% + <2.0x Sales Growth EBITDA Margin Return on Capital Target to sustain Net Employed Debt to EBIDITA Vision – To achieve revenue of ₹ 5,000 Cr by FY2027 17 | MEGHMANI FINECHEM LIMITED
Slide 19: Focused on ESG
Focused on ESG ENVIRONMENT o Focused on using best technology to manage critical resources, to moderate the consumption of energy and natural resources and drive operations efficiently o Focus is to manufacture more from less, basis for environment responsibility o Commitment towards reduce energy i
Slide 20: Income Statement
Income Statement Particulars (₹ Cr) Q4 FY22 Q4 FY21 % Change FY22 FY21 % Change Revenue from Operations 499 259 93% 1,551 829 87% Gross Profit 275 140 97% 790 443 78% Gross Margin (%) 55% 54% 51% 54% EBITDA 175 80 118% 509 261 95% EBITDA Margin (%) 35% 31% 33% 32% Depreciation 21 21 -1% 86 74 17% Fi
Slide 21: Historic Income Statement
Historic Income Statement Particulars (₹ Cr) FY17 FY18 FY19 FY20 FY21 FY22 Total Revenue 393 602 720 613 831 1,555 Gross Profit 167 359 455 335 443 790 Gross Margin (%) 43% 60% 64% 55% 53% 51% EBITDA 144 255 312 194 261 510 EBITDA Margin (%) 37% 43% 44% 32% 32% 33% Depreciation 55 55 54 44 74 86 Fin
Slide 22: Historic Balance Sheet
Historic Balance Sheet Assets (₹ Cr) FY20 FY21 FY22 Liabilities (₹ Cr) FY20 FY21 FY22 Fixed Assets 1,131 1,228 1,657 Share Capital 42 42 42 Financial Assets 4 10 8 Reserves & Surplus 542 643 684 Other Non-current Assets 5 29 11 Long-Term Borrowings 418 340 557 Inventories 48 54 154 Redeemable Prefer
Slide 23: About Us & Investor Contact
About Us & Investor Contact Meghmani Finechem Limited (“MFL”), incorporated in 2007, is a leading manufacturer of Chlor-Alkali products and value-added Derivatives. The company has state of the art manufacturing facilities in Gujarat, Dahej – a leading PCPIR region in the country. MFL’s Dahej facili