Laxmi Organic Industries Ltd. · NSE:LXCHEM
Laxmi Organic Industries — Q2 & H1 FY25 Earnings Presentation
39 slides from Laxmi Organic Industries's earnings presentation, Oct 29, 2024
Slide 1: Exchange intimation letter for analyst meet presentation
October 29, 2024 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Bandra Kurla Complex, 1st Floor, New Trading Ring, Bandra (E), Rotunda Building, P. J. Towers, Mumbai – 400 051 Dalal Street, Fort, Trading Symbol: LXCHEM Mumbai – 400 001 Scrip C
Slide 2: Geared to Win; Geared for Growth
Geared to Win; Geared for Growth Investor Presentation – Q2 & H1FY25 29 October 2024 www.laxmi.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), have been prepared by Laxmi Organic Industries Limited (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall no
Slide 4: Company Overview
Company Overview www.laxmi.com
Slide 5: Overview
Overview Essentials: Lean & Reliable supplier Specialties: World Class Technology serving diverse industries platforms with strong development capabilities serving diverse industries Large, global addressable Emphasis on Development, Quality, markets across Essentials (>USD 12bn) and ESG, Responsibl
Slide 6: Diversified Business Catering to Varied Industries
Diversified Business Catering to Varied Industries Essentials Specialties Pharmaceuticals Agrochemicals Inks & Paints Coatings Pharmaceuticals Agrochemicals Dyes & Pigments Personal Care End User Industries Printings Packaging Adhesives Fragrance & Flavour Paints & Coating Flame Redundant Electronic
Slide 7: Leadership Ambitions
Geared to Win Demonstrated 1 Cost and Technology leadership capability of Leadership absorbing and Market leadership – top 3 in scaling best in 2 Essentials (ex-China) and top class 5 in Specialties globally technologies Unlevered Balance Sheet – 3 Partner of choice for customers ready to invest Lar
Slide 8: Track Record of technology absorption and in-house R&D capabilities
Track Record of technology absorption and in-house R&D capabilities ◼ Acquisition of Ketene/Diketene ◼ Addition of >40 New Derivatives for multiple industries business 2010 including agro and pharma and CASE to the ◼ Acquired know-how of some Specialties Platform acquired from Clariant derivatives f
Slide 9: Customer Focused Projects – Some Recent Success Stories
Some Recent Success Stories Developed Developed Ethylene Oxide derivative from laboratory – gram to commercial – on scale for a global innovator Customer Focused Projects – On Spec & On Time Scaled Absorbed and scaled up mercaptan chemistry for an industry leading agrochemicals innovator Innovated I
Slide 10: Strategically located Manufacturing Sites
Strategically located Manufacturing Sites India Mahad (2 Sites) Manufacturing Units 3rd party storage tank agreements • Land parcel: 45 acres • Land Occupancy: 90% • Product Mix: o Essentials – 60% o Specialties – 40% Dahej* Europe Dahej* Lote* Mahad, Maharashtra (2 units) • Land parcel: 86 acres Lo
Slide 11: Network and Alliances
Network and Alliances Ravi Goenka Dr Rajan Venkatesh Harshvardhan Goenka Rajeev Goenka Manish Chokhani Executive Chairman Managing Director & Chief Executive Director – Strategy Non-Executive Director Non-Executive Director Executive Officer & Business Development Bachelor’s degree in Chemical Maste
Slide 12: Strong Management Team
Strong Management Team Harshvardhan Goenka (ED – Strategy & BD) Virag Shah (Executive VP Specialties) B.Sc. from Babson College, School of Business in Msc in Applied Chemistry and Business Administration. Two Boston, USA, and 11 years of experience in the decades of expertise in marketing, sales, an
Slide 13: Living Our Values to Deliver our Ambitions
Living Our Values to Deliver our Ambitions INTEGRITY INNOVATION To do what is right in the interest of all To create a culture where failure is our stakeholders with an unwavering the first step to success focus CUSTOMER CENTRICITY SUSTAINABILITY To improve the lives of our customers To make a posit
Slide 14: Accreditation & Certification
Accreditation & Certification Recognized for its sustainable practices Accredited facilities Biobased Product Label for Ethyl Acetate Going beyond the regulatory compliances Disclosure of Business Responsibility & Sustainability Report (BRSR) LAXMI ORGANIC INDUSTRIES LIMITED | Q2FY25 13
Slide 15: Awards & Accolades
Awards & Accolades State Level Award - DISH Certificate of Appreciation from National Safety Council of India for consecutive 3 years Best Supporter for fire mitigation National Level awards Site II: National Level EHS Merit Award 4th Level from National Safety Council of India – Announced in Dec. 2
Slide 16: Geared for Growth - Strategic Plan
Geared for Growth - Strategic Plan www.laxmi.com
Slide 17: Geared for Growth: Historical Performance
Geared for Growth: Historical Performance Growth Fueled by Strategic Acquisitions, Fast Technology Absorption together with achieving >20%+ Revenue Contribution from New Products launched in last 5 years Capacity Addition for ethyl acetate and acetaldehyde ◼ Acquired Ketene / Foray into Diketene bus
Slide 18: Geared for Growth: Positioned for the next Growth Phase
Geared for Growth: Positioned for the next Growth Phase Pivoted for the Next Growth Customer Needs Proven Success Phase Innovation 1 Product 1 Customer 2 2 Platform Plant Transited Price Product 3 Platform 3 Plant Strategic shift to Customer Centric Business Approach helped us gain more market and i
Slide 19: Geared for Growth: Financial Steering for FY28 Plan
Geared for Growth: Financial Steering for FY28 Plan Essentials Specialties Ketene/ Other / New Technology Platform Esterification Acetylation Fluorination Diketene Platforms Asset Turns Asset Turns 3x - 5x 1x - 2x Targeted Financial KPIs EBITDA Margins EBITDA Margins 8-12% 20-25% Combined ROCE 20% L
Slide 20: Consolidated Enterprise
Consolidated Enterprise (in INR Mn.) Capex Plan Revenue EBITDA* ROCE ~2x ~2.7x 7,500 20% 3,500 28,650 10% 2,839 FY 25 & 26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E FY24 FY28 E Key Highlights: Incremental Capex Investment Plan of ~ INR 11,000 Mn • On Consolidated basis the company plans to achieve RoCE:
Slide 21: Essentials: 5-Year Strategy and Right to Win
Essentials: 5-Year Strategy and Right to Win Go Deeper, Go Broader Strategy Grow in the Existing Products Enter in New Products • Retain India market share • Portfolio expansion • Grow exports • De-risking of business • Focus on continuous operational efficiencies • Future ready for biobased product
Slide 22: Essentials: Geared for Growth
Essentials: Geared for Growth (in INR Mn.) Incremental Capex Revenue EBITDA* ~2x ~3x 3,500 2,000 19,485 800 FY 25 & 26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E Key Highlights Key Update: Setting up of Investments of approx. INR 5,500 Mn will enable the company to • First world scale n-Butyl Acetate line
Slide 23: Specialties: 5-Year Strategy and Right to Win
Specialties : 5-Year Strategy and Right to Win Specialties Growth Drivers Strategy Expand & Optimise in Incumbents Enter in New Products • Grow market share • Focus on global customers • Fluro assets to start delivering revue in FY25 • Improve cost leadership via continuous operational • To have min
Slide 24: Specialties: Geared for Growth
Specialties: Geared for Growth (in INR Mn.) Incremental Capex Revenue EBITDA* ~2x ~2.5x 4,000 8,205 2,039 1,500 FY 25 & 26 FY 26-28 FY 24 FY 28 E FY 24 FY 28 E Key Highlights Investments of approx. INR 5,500 Mn will enable the company to • Expand and diversify the product portfolio and double the re
Slide 25: Financial Highlights Q2 & H1FY25
Financial Highlights Q2 & H1FY25 www.laxmi.com
Slide 26: From the desk of MD & CEO
From the desk of MD & CEO Commenting on the Q2 & H1FY25 results, Dr Rajan Venkatesh – MD & CEO says, “We have delivered double-digit top-line growth in Q2FY25 on a year-on-year basis and double-digit volume as well as bottom-line growth on a year-on-year basis in Q2FY25 and H1FY25 despite the prevai
Slide 27: Capex Update - Dahej
Capex Update - Dahej Organic CTE received Civil Foundation work for on 20-Jun-24 Amber-2 started at Dahej. Weigh bridge calibrated and ready for operations May June July Q2 Q3 2024 2024 2024 FY25 FY25 Inorganic EC Received on Public hearing Equipment installation 04-May-24 Completed on 18-Jul-24 wil
Slide 28: Capex Update - Lote
Capex Update - Lote COVID period Q3 FY’23 Q3 FY’20 Equipment's arrived from Q2’FY25 Acquisition of Q3 FY’21 Italy Q4’FY24 Samples approval on- technology and Q1 FY’24 assets from Miteni, Kilo Lab setup created at Mechanical going Italy Mahad- familiarization to Pilot plant and Kilo lab completion of
Slide 29: Consolidated Financial Highlights – Q2 & H1FY25
Consolidated Financial Highlights – Q2 & H1FY25 (in INR Mn.) Revenue EBITDA PAT +8% +25% +27% Key Highlights 14,894 1,459 624 13,815 • Revenue for Q2FY25 grew by 1,163 490 ~18% y-o-y and ~8% for H1FY25 +18% +92% +162% on a y-o-y basis 7,713 747 6,523 280 389 107 • Total volumes increased by ~19% on
Slide 30: Consolidated Business Highlights – Q2 & H1FY25
Consolidated Business Highlights – Q2 & H1FY25 (in INR Mn.) Essentials Revenue Specialties Revenue +4% +16% 10,142 4,751 9,713 4,102 +17% +23% 5,472 2,240 4,695 1,828 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 EBIDTA Contribution (in %) EBIDTA Contribution (in %) 31% 32% 33% 37% Q2FY24
Slide 31: De-risked Business Model continues to Deliver
De-risked Business Model continues to Deliver* Exports Continue to remain Relevant Revenue from Top 10 Customer 41% 37% 20% 29% 30% 34% 35% 35% 27% 26% 80% 71% 70% 65% 65% FY21 FY22 FY23 FY24 H1FY25 FY21 FY22 FY23 FY24 H1FY25 Exports Domestic *On consolidated basis LAXMI ORGANIC INDUSTRIES LIMITED |
Slide 32: Geographical Revenue
De-risked Business Model continues to Deliver Q2FY24 Vs Q2FY25 H1FY24 Vs H1FY25 Geographical Revenue 3% 6% 2% 5% 16% 21% 15% 23% 31% 18% 32% 22% Q2FY24 Q2FY25 H1FY24 H1FY25 19% 20% 27% 16% 16% 33% 7% 23% 28% 3% 6% 9% Europe Rest of Asia Pacific Africa America Middle East China Q2FY24 Vs Q2FY25 H1FY2
Slide 33: Consolidated Profit & Loss – Q2 & H1FY25
Consolidated Profit & Loss – Q2 & H1FY25 (in INR Mn.) Consolidated Particulars (Rs. Mn) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1FY25 H1FY24 Y-o-Y Revenue from operations 7,713 6,523 18.2% 7,182 7.4% 14,894 13,815 7.8% COGS 4,948 4,617 4,630 9,578 9,396 Gross Margin 2,765 1,905 45.1% 2,551 8.4% 5,316 4,41
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet (in INR Mn.) Assets (in INR Mn.) Sept-24 Mar-24 Mar-23 Equity and Liabilities (in INR Mn.) Sept-24 Mar-24 Mar-23 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Share Capital 563 552 530 Property, Plant and Equipment 8,976 8,708 7,057 Other Equity 17,999 17,425 13,
Slide 35: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement (in INR Mn.) Particulars (in INR Mn.) H1FY25 FY24 FY23 Profit before Tax 1,002 1,708 1,729 Adjustment for Non-Operating Items 532 1,192 896 Operating Profit before Working Capital Changes 1,534 2,900 2,625 Changes in Working Capital (1,662) 3,086 (133) Cash Generated
Slide 36: Annexures
LD Annexures www.laxmi.com
Slide 37: Merger of YFCPL
Merger of YFCPL Laxmi Organic Industries Limited has proposed the merger of its 100% subsidiary Yellowstone Fine Chemicals Private Limited (YFCPL). The admission for the merger was filed with NCLT in July 2024. The amalgamation of the YFCPL is expected to yield the following benefit: More efficient
Slide 38: Standalone Profit & Loss – Q2 & H1FY25
Standalone Profit & Loss – Q2 & H1FY25 (in INR Mn.) Standalone Particulars (Rs. Mn) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1FY25 H1FY24 Y-o-Y Revenue from Operations 7,442 6,364 16.9% 7,175 3.7% 14,616 13,301 9.9% COGS 4,737 4,436 4,583 9,320 8,912 Gross Margin 2,705 1,928 40.3% 2,591 4.4% 5,296 4,389 20
Slide 39: Thank You
Thank You Company: Laxmi Organic Industries Limited Investor Relations: Strategic Growth Advisors Pvt. Ltd. www.laxmi.com www.sgapl.net CIN: L24200MH1989PLC051736 CIN: U74140MH2010PTC204285 Mr. Nishant Dudhoria / Mr. Sagar Shroff Mr. Aniket Hirpara Email: nishant.dudhoria@sgapl.net / sagar.shroff@sg
Laxmi Organic Industries — Q2 & H1 FY25 Earnings Presentation on 6ix