Slide 1: Cover letter to stock exchanges
DCW LIMITED December 03, 2020 To, The BSE Limited National Stock Exchange of India Ltd. Department of Corporate Services, Exchange Plaza Bldg. 1* floor, New Trading Ring 5 Floor, Plot No.C-1 Rotunda Building, ‘G’ Block, Near Wockhardt, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, M
Slide 2: DCW Limited Investor Presentation December 2020
DCW LIMITED INVESTOR PRESENTATION December 2020
Slide 3: Disclaimer
DISCLAIMER The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate only as of the date it was originally issued. The figures mentioned in the data are rounded off. DCW Limited (“DCW” or the Company) strictly deni
Slide 4: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 5: DCW at a Glance
DCW AT A GLANCE Overview: • Established as Dhrangadhra Chemical Works in 1939 at Dhrangadhra, Gujarat as India’s first Soda Ash plant. • Expanded, diversified and modernized its operations with a diversified range of products for supply to customers in both, domestic and international markets since
Slide 6: Segment Overview
Segment Overview Specialty Chemicals Intermediate Chemicals Commodity Chemicals Synthetic HCl, Utox, Liquid Chlorine, Caustic C-PVC SIOP Sodium Bicarbonate, etc. Soda Ash PVC Rutile Soda ✓ Synthetic ✓ Sole ✓ One of the ✓ Situated at ✓ Situated at ✓ Situated at rutile or ✓ Situated at manufacturer la
Slide 7: Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals
Niche, Diversified Chemical Company with Presence in Commodity and Specialty Chemicals Niche, Diversified Product Mix Moving Up The Value Chain ✓ Diversified product mix of Commodity, Intermediate and Specialty Chemicals ✓ Increasing the contribution from high value, high margin Specialty Chemicals
Slide 8: Evolution – Moving Up The Value Chain
Evolution – Moving Up The Value Chain The Story So Far : Well Established Commodity Chemicals Player Transition Towards Specialty Chemicals & Self- Sufficiency 2016 Synthetic Iron Oxide (SIOP) Plant 2017 Country’s first and 1970 only C-PVC plant Synthetic Rutile and Integrated with technical PVC Res
Slide 9: Focus on Sustainable Growth & Long Term Value Creation
Focus on Sustainable Growth & Long Term Value Creation Internal Factors External Factors Strategic Operating Sustainable Growth Demand Government Initiatives Initiatives Drivers Initiatives ▪ Our demand for ▪ Government’s thrust ▪ Increasing share of ▪ Re-Engineering various products on Agriculture
Slide 10: Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities
Key Strengths: Strategic Location, Captive Power, Technology & Scale-up Opportunities Exclusive Technological Tie- Significant Scale-up Strategic Location Captive Power Plant ups for Specialty Chemicals Opportunities ➢ Sahupuram facility situated in ➢ 58 MW Cogen Power Plant + ➢ India’s sole manufac
Slide 11: Self-Sufficiency – CPP & Use of Intermediate Products for Value Added Products
Self-Sufficiency – CPP & Use Intermediate Products for Value Added Products Water Sahupuram Facility Flow Dhrangadhra Facility Flow Salt Material Ammonia Electrolysis Hydrogen Caustic Soda Raw Coal Salt Boiler Fly Ash PVC Plant Chlorine HCl Soda Ash Processing Steam Steam 50 MW PVC Resin Power Sodiu
Slide 12: Board of Directors – Wide Spectrum of Experience
Board of Directors – Wide Spectrum of Experience Mr. Pramod Jain, Chairman & Managing Director Mr. Bakul Jain, Managing Director • Overall 50 years of wide experience in the Industry • Overall 38 years of wide experience in the Industry • Under his leadership, the capacity of Soda Ash Plant at Dhran
Slide 13: Qualified Management with Deep Understanding of Chemicals Sector
Qualified Management with Deep Understanding of Chemicals Sector Mr. Amitabh Gupta, CEO Mr. S. Ganapathy, COO • Holds Bachelor’s degree in Physics, Chemistry and • M.Sc. - Chemistry & MMS – Marketing from Mumbai Mathematics and Master’s degree in Physics. University • Associated with the Company for
Slide 14: State Of The Art, Strategically Located Manufacturing Facilities
State Of The Art, Strategically Located Manufacturing Facilities Dhrangadhra Facility Sahupuram Facility Products Manufactured: Soda Ash, Ammonium Bicarbonate, Products Manufactured: Caustic Soda, PVC, SIOP, C-PVC, SR, Liquid Sodium Bicarbonate Chlorine, Utox, Hydrochloric Acid, Trichloroethylene, e
Slide 15: Our Esteemed Clientele
Our Esteemed Clientele Commodity Chemicals National Aluminium Company Finolex Industries Limited Hindustan Unilever Limited (HUL) (NALCO) Tamil Nadu Newsprint and Papers Ashirvad Pipes Pvt Limited Manali Petrochemical Limited Limited Specialty Chemicals Osaka Titanium Corporation, Japan TOHO Titaniu
Slide 16: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 17: Capacity Overview
Capacity Overview Specialty Chemicals Commodity Chemicals C-PVC SIOP Synthetic Rutile PVC Caustic Soda Soda Ash ✓ Installed ✓ Installed ✓ Installed ✓ Installed ✓ Installed ✓ Installed Capacity: Capacity: Capacity: Capacity: Capacity: Capacity: 10,00 TPA 27,000 TPA 42,000 TPA 90,000 TPA 96,000 TPA 1,
Slide 18: C-PVC – A Niche Play
C-PVC – A Niche Play Sole manufacturer of C-PVC in India C-PVC Business Overview Revenue (INR Million) • Sole manufacturer of C-PVC in India with technical license from Arkema, France 1029.0 • Commenced operations at Sahupuram facility in 2017, successfully 825.0 ramped-up utilisation since then • K
Slide 19: SIOP – One of the largest commercial scale manufacturers of Synthetic Iron Oxide Pigments
SIOP – One of the largest, commercial scale manufacturers of Synthetic Iron Oxide Pigments Intermediate Chemicals provide high self-sufficiency and operating leverage to SIOP Business SIOP Business Overview Revenue (INR Million) • World’s first commercial scale Synthetic Iron Oxide Pigment to produc
Slide 20: PVC – Favourable market dynamics
PVC – Favourable market dynamics With favourable market dynamics, PVC is expected to drive the next leg of growth in commodity chemicals PVC Business Overview Revenue (INR Million) • DCW’s PVC plant is situated at Sahupuram, Tamil Nadu 5459.0 5338.0 • Well positioned to take the advantage of growing
Slide 21: Caustic Soda – Cautious, Calibrated Approach For Production Due To Recent Fall In Prices
Caustic Soda – Cautious, Calibrated Approach For Production Due To Recent Fall In Prices Company posted healthy ~11.5% EBIT Margin & ~70% utilisation as of FY20 despite industry headwinds Caustic Soda Business Overview Revenue (INR Million) • Pioneer of Caustic Soda manufacturing in India • DCW’s ca
Slide 22: Soda Ash - Consistent, High Margin Commodity Business
Soda Ash - Consistent, High Margin Commodity Business Long term steady performance for key operating matrices - production and capacity utilisation Soda Ash Business Overview Revenue (INR Million) • DCW’s soda ash plant is situated at Dhrangadhra, Gujarat • Healthy EBIT Margin of 17.5% as on FY20 21
Slide 23: Intermediate Chemicals – Effectively Complements Other Segments
Intermediate Chemicals – Effectively Complements Other Segments Intermediate Chemicals ensure the uninterrupted, cost-effective supply for value-addition products. Trichloroethylene Plant Intermediate Chemicals Overview • Wide range: Intermediate chemicals ensure self-sufficiency and additional sour
Slide 24: Intermediate Chemicals – Product Overview
Intermediate Chemicals – Product Overview Intermediate Chemical Capacity (TPA) Application Liquid Chlorine 36,000 Captive Consumption - C-PVC Hydrochloric Acid 90,000 Captive Consumption - C-PVC Trichloroethylene 7,200 Sold in open market Ferric Chloride 6,000 Captive Consumption – SIOP Utox 1,800 S
Slide 25: Company Overview, Business Segments, Financial Overview
Company Overview Business Segments Financial Overview
Slide 26: Q2FY21 Key Highlights
Q2FY21 KEY HIGHLIGHTS Specialty Chemicals: 53% growth in EBITDA 19% growth in top-line Commodity Chemicals QoQ QoQ revenue mix (%)13:87 31% EBITDA margin for SIOP on cusp of 84% revenue growth C-PVC business turnaround QoQ of PVC Business PVC & Specialty Chemicals contributed C-PVC capacity utilisat
Slide 27: Q2FY21 Result – Key Highlights
Q2FY21 RESULT – KEY HIGHLIGHTS Q2FY21 YoY ANALYSIS In INR Million REVENUES 1 EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN PAT & PAT MARGIN 3,554.7 14.7% 3,394.4 14.3% 0.5% 0.5% 0.3% 0.3% 506.1 495.5 4.5% 2.1% 43.9% 48.5% 17.5 18.6 9.8 9.6 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 1. Inclu
Slide 28: H1FY21 Result – Key Highlights
H1FY21 RESULT – KEY HIGHLIGHTS H1FY21 YoY ANALYSIS In INR Million REVENUES 1 EBITDA & EBITDA MARGIN 2 PBT & PBT MARGIN PAT & PAT MARGIN 14.8% 13.2% 6,720.1 6,248.6 992.5 7% 17 % 821.0 0.5% 0.5% -1.4% 35.5 33.6 -2.4% H1FY20 H1FY21 H1FY20 H1FY21 H1FY20 H1FY21 H1FY20 H1FY21 -88.7 1. Including other inc
Slide 29: Segmental Performance – Revenue
SEGMENTAL PERFORMANCE Revenue Breakdown - By Segments (INR Million) Segments Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% PVC 1,563.1 1,177.0 33% 847.9 84% 2,411.0 2,233.2 8% Caustic Soda 877.6 1,385.8 -37% 1,213.4 -28% 2,090.9 2,648.1 -21% Soda Ash 465.1 493.0 -6% 366.9 27% 832.0 1,050.0 -21%
Slide 30: Segmental Performance – EBITDA
SEGMENTAL PERFORMANCE EBITDA Breakdown - By Segments (INR Million) Segments Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% PVC 227.9 16.2 1309% 44.3 414% 272.2 -10.7 - Caustic Soda 71.5 300.6 -76% 125.7 -43% 197.2 601.1 -67% Soda Ash 43.9 70.3 -38% 30.3 45% 74.2 225.8 -67% C-PVC 103.9 94.3 10% 94
Slide 31: PVC Business- Financial & Operating Metrics
PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue from Operations 1,563.1 1,177.0 33% 847.9 84% 2,411.0 2,233.2 8% EBITDA 227.9 16.2 1309% 44.3 414% 272.2 -10.7 - EBITDA Margin (%) 14.6% 1.4% 1320b
Slide 32: Caustic Soda Business- Financial & Operating Metrics
Caustic Soda Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue from Operations 877.6 1385.8 -37% 1,213.4 -28% 2090.9 2648.1 -21% EBITDA 71.5 300.6 -76% 125.7 -43% 197.2 601.1 -67% EBITDA Margin (%) 8.1
Slide 33: Soda Ash Business- Financial & Operating Metrics
Soda Ash Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue from Operations 465.1 493.0 -6% 366.9 27% 832.0 1050.0 -21% EBITDA 43.9 70.3 -38% 30.3 45% 74.2 225.8 -67% EBITDA Margin (%) 9.4% 14.3% -490Bp
Slide 34: C-PVC Business- Financial & Operating Metrics
C-PVC Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue from Operations 334.2 348.3 -4% 265.9 26% 600.1 522.7 15% EBITDA 103.9 94.3 10% 94.7 10% 198.7 130.9 52% EBITDA Margin (%) 31.1% 27.1% 400Bps 35.
Slide 35: SIOP Business- Financial & Operating Metrics
SIOP Business- Financial & Operating Metrics Key Financial Metrics Particulars (in INR Million) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue from Operations 99.2 83.9 18% 102.9 -4% 202.2 150.6 34% EBITDA 30.8 -10.0 410% -4.1 845% 26.7 -18.3 246% EBITDA Margin (%) 31.0% -11.9% 4290Bps -4
Slide 36: Q2 & H1FY21 Result – Profit & Loss Statement
Q2 & H1FY21 RESULT – PROFIT & LOSS STATEMENT Particulars (INR Million) Q2 FY21 Q2 FY20 YoY% H1FY21 H1FY20 YoY% Revenue from Operations 3379.1 3541.7 -5% 6225.0 6700.0 -7% Other Income 15.3 13.0 18% 23.6 20.1 17% Total Revenue 3394.4 3554.7 -5% 6248.6 6720.1 -7% Cost of Material Consumed 1718.0 1738.
Slide 37: H1FY21 – Balance Sheet
H1FY21 – BALANCE SHEET Particulars (INR Million) Sep-20 Mar-20 Particulars (INR Million) Sep-20 Mar-20 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets Share Capital 522.1 522.1 a. Fixed Assets 14,260.8 14,669.9 Other Equity 6,172.2 6,256.0 b. Capital work in progress 186.9 124.7
Slide 38: Historical Performance at a Glance
HISTORICAL PERFORMANCE AT A GLANCE In INR Million REVENUES1 EBITDA & EBITDA MARGIN (%) PAT & PAT MARGIN (%) 12.0% 11.5% 13,528 10.4% FY18 FY19 FY20 12,773 1,619 1,464 -0.3% 1,257 12,134 -1.7% -43 -2.1% -202 -268 FY18 FY19 FY20 FY18 FY19 FY20 LEVERAGE ANALYSIS RETURN METRICS (%) 1.28 1.05 0.73 12.5%
Slide 39: For Further Queries
FOR FURTHER QUERIES: Mr. Dilip Darji General Manager (Legal) & Company Secretary Email: dilip.darji@dcwltd.com Mr. Chinmay Madgulkar /Mr. Chintan Mehta IR Consultant Email: dcw@dickensonworld.com Contact no: +91 9860088296/ 9892183389