Ion Exchange (india) Ltd. · NSE:IONEXCHANG
Ion Exchange (india) — H1 FY2019 Earnings Presentation
42 slides from Ion Exchange (india)'s earnings presentation, Nov 21, 2018
Slide 1: Submission of Analyst / Investor Presentation
• .. - 8 ION EXCHANGE R~~t»v~ flu, P~fvd November 21 , 2018 The Corporate Relationship Dept. BSE Limited P.J . Towers, Dalal Street, Mumbai - 400 00 I BSE Company Code: 500214 Dear Sir/ Madam, Sub: Submission of Analyst I Investor Presentation Pursuant to Regulation 30(6) read with Part A of Schedul
Slide 2: Investor Presentation - October 2018
INVESTOR PRESENTATION - OCTOBER 2018
Slide 3: Our Vision
Our Vision To be the leader in our business which is so vital to people’s lives and the environment. 2
Slide 4: Business Overview / Financial Overview
_ a Rebreshing the Planet Vo So BUSINESS OVERVIEW e\NANCIAL OVERVIEW
Slide 5: Executive Summary
@ ION EXCHANGE Rebreshing the Planet
Slide 6: Executive Summary
Executive Summary BUSINESS & REVENUE (%) MIX - OVERVIEW MARQUEE CLIENTS CONSOLIDATED • Ion Exchange (India) Ltd. (Ion • Engineering (58%) – Provides • Industrial – NTPC, NPC, Reliance, Exchange), formed in 1964, is a comprehensive and integrated IOCL, JSW, CPCL, L&T, Essar group, pioneer in water, w
Slide 7: Company Overview
@ ION EXCHANGE Refreshing the Planch COMPANY OVERVIEW
Slide 8: Company Overview
Company Overview • Ion Exchange was originally formed as a subsidiary of Permutit, UK in 1964. REVENUE BREAKUP FY18* It became a wholly owned Indian company in 1985. The company is currently in its 54th Year of operations. Consumer Products • The company has expanded its footprints globally and poss
Slide 9: Key Management Personnel
Key Management Personnel MANAGEMENT TEAM • Aankur Patni • S. N. Iyengar Executive Director Executive VP – Medium Industry • Dinesh Sharma • Anil Khera Executive Director Executive VP- Chemical • Ajay A. Popat • Vasant Naik President – Corporate Sr. VP – Finance Diversification, Technology & Marketin
Slide 10: Key Milestones
Key Milestones 1998 Consumer products 1982 manufacturing started at Engineering and fabrication Goa. 1964 Incorporated as 60% subsidiary setup started at Hosur. 2010 of Permutit Co., U.K. 1983 Commissioned largest RO based water desalination Industrial Chemical Production 1965 started at Patancheru.
Slide 11: Global Footprint
Global Footprint Canada USA Bahrain Bangladesh Saudi Arabia UAE Oman India Thailand Tanzania Singapore Malaysia Nigeria Kenya Indonesia South Africa International Division Manufacturing Facilities 10
Slide 12: Domestic Footprint
Domestic Footprint ANKLESHWAR, GUJARAT WADA, MAHARASHTRA Resin Facility - Fabrication Water and Facility non-water PATANCHERU, TELANGANA RABALE, MAHARASHTRA EOU & Chemicals Engineering Facility Design Facility Corporate Office VERNA, GOA VERNA, GOA International Division HOSUR, TAMIL NADU Regional &
Slide 13: Research And Development
Research And Development Strong focus on R&D Well established in-house R&D department since 1965 Recognized by Department of Scientific and Industrial Research (DSIR), New Delhi For Chemicals at Patancheru, Telangana For Engineered Products & Systems at Vashi, Maharashtra Product application and tes
Slide 14: Awards & Accolades
Awards & Accolades Water Digest 2015-16 4 TIMES IN A ROW Water Award Chemtech CEW Leadership Mera Brand Awards for Zero (UNESCO) & Excellence Award B- Most Preferred RO Brand 3 TIMES 8 TIMES 2015-16 4 TIMES Best Best Best Best Water Solutions Water Company Water Treatment Water Treatment- Provider w
Slide 15: Key Strengths
Key Strengths 1 Design, Engineering and supply of water, waste water treatment and recycle plants on turnkey, BOT and EPC basis. 50 4 50 years of pan India presence. 2 Largest one stop shop water solution's provider in Asia. 5 Manufacturer of chemicals 3 Global footprint with exports and ion exchang
Slide 16: Future Strategy
Future Strategy Engineering • Increased application coverage • Increased exposure to of resin and membrane international markets. technologies. • Selectively target Infrastructure • New Government initiatives and Municipal projects. resulting in more opportunities. Chemicals • Resins for pharmaceuti
Slide 17: Business Overview
@ ION EXCHANGE Refreshing the Planch BUSINESS OVERVIEW
Slide 18: Business
Business Ion Exchange (India) Ltd, formed in 1964, is a pioneer in water, waste water treatment & environment solutions and caters to various industries, homes & communities Process Applications Industrial Waste Water with Resins/Membranes Treatment/Recycle & Management of Solid Waste Management Pro
Slide 19: Business Segments
Business Segments Business Segments ^ Engineering Chemicals Consumer (58%) (32%) Products (10%) Industrial Retail Industrial Chemicals Municipal Institution Resins O&M / Services Rural Water treatment chemicals Specialty Chemicals Conventional Resins Specialty Resins ^ Consolidated as on FY2018 18
Slide 20: Work-flow Process
Work-flow Process Water Treatment Water Treatment Waste Treatment Specialty Raw Water Treatment I II & Recycle Chemicals • Disinfection Membrane Ion Exchange • Aerobic Process • Polyelectrolytes o Chlogen Processes Processes o Activated Sludge o Coagulants o Ozonator • Micro/Ultra- • Demineralizers
Slide 21: Engineering
Engineering • The Company designs, engineers, manufactures and sells REVENUES* (INR MN) medium and large size equipment for water and waste water treatment plants including recycling & Zero liquid discharge 7,000 6,404 6,348 plants. 6,000 5,140 4,850 5,000 4,573 • Extensive technologies, process des
Slide 22: Engineering - Industrial
Engineering - Industrial PROJECTS: • Ion Exchange integrates extensive process technologies and design, engineering & project management expertise into design & build projects, on turnkey, BOOT or EPC basis. Specially formed teams manage and support each and every stage of project implementation. •
Slide 23: Clientele - Industrial & Institution
Clientele - Industrial & Institution AUTO- ELECTRONICS/ PAPER AND HEAVY INDUSTRIAL PETROCHEMICALS HOTELS POWER PHARMA TEXTILES MOBILES ELECTRICALS PULP FOOD & CHEMICALS SUGAR CEMENT HOSPITALS REAL ESTATE BEVERAGES 22
Slide 24: Engineering - O&M and Services
Engineering - O&M and Services Ion Exchange’s O&M and services provides single-source responsibility, saves customers expense, manpower, supervision and the hassle of maintaining facilities in-house. O&M CONTRACTS • Annual Maintenance: Water & waste water equipment for efficient performance and zero
Slide 25: Engineering Industry Overview
Engineering Industry Overview MARKET POTENTIAL • The domestic industrial sector is expected to grow at a CAGR of 5-7% while waste water management is projected to grow at a CAGR of 8-10% through 2015-2020. • Capital expenditure on water and waste water infrastructure in India is set to increase by 8
Slide 26: Engineering Industry Overview
Engineering Industry Overview MAKE IN INDIA • The GOI’s ‘Make in India’ Programme is expected to generate new opportunities as Industrial capex gains traction. • INR 500 bn (USD 7.7 bn) has been allocated for investment in 500 towns and cities under AMRUT and another INR 480 bn (USD 7.4 bn) has been
Slide 27: Chemicals
Chemicals • The company is engaged in manufacturing water REVENUES* (INR MN) treatment chemicals, ion exchange resins and other 4,000 specialty chemicals. 3,511 3,535 3,500 3,106 2,949 3,000 • Water treatment chemicals are used in boiler, cooling 2,547 water treatment, coagulation and flocculation,
Slide 28: Water Treatment & Specialty Chemicals
Water Treatment & Specialty Chemicals • The company manufactures Water Treatment & Specialty Chemicals in a modern ISO 9001, 14001 and OHSAS 18001 certified manufacturing facility. • Ion Exchange is known for their tailor made treatment programs coupled with continuous developments of newer formulat
Slide 29: Chemicals - Resins
Chemicals - Resins Resins are backed by innovation, quality and service, sustained R&D and state-of-the-art ISO 9001 and 14001 certified manufacturing facilities. They also have FDA approved pharma grade resin facility. Ion Exchange offers products under the registered trademark of INDION RESINS whi
Slide 30: Chemicals Industry Overview
Chemicals Industry Overview MARKET POTENTIAL • The market for water and water treatment chemicals in India is expected to expand leaps and bounds due to the focus on optimum utilization of water resources. • In 2016, global demand for water treatment chemicals totalled $25.4 billion which is forecas
Slide 31: Consumer Products
Consumer Products The company’s water and environment management solutions REVENUES* (INR MN) extend beyond the industrial sector to homes, hotels, spas, 1200 educational institutions, hospitals, laboratories, realty sector 1,086 1,025 and defence establishments providing safe drinking water and 100
Slide 32: Consumer Products - Retail & Community
Consumer Products - Retail & Community • Ion Exchange is the pioneer of the revolutionary RO technology, in India. With its National & International presence, Zero B has emerged as one of the premier brand of the company in this segment. At Zero B, every product is crafted with meticulous attention
Slide 33: Financial Overview
@ ION EXCHANGE Refreshing the Planch FINANCIAL OVERVIEW
Slide 34: Standalone Income Statement (As per IndAS)
Standalone Income Statement (As per IndAS) INCOME STATEMENT (INR MN) FY17 FY18 H1-FY19 Total Income* 9,811 10,243 4,652 Total Expenses 8,862 9,239 4,125 EBITDA 949 1,004 527 EBITDA Margins (%) 9.67% 9.80% 11.33% Depreciation 108 119 89 Finance Cost 128 157 81 PBT 713 728 357 Tax 243 250 127 Profit A
Slide 35: Standalone Balance Sheet (As per IndAS)
Standalone Balance Sheet (As per IndAS) PARTICULARS (INR MN) FY17 FY18 H1-FY19 PARTICULARS (INR MN) FY17 FY18 H1-FY19 EQUITIES & LIABILITIES ASSETS Equity Non-Current Assets (A) Equity Share Capital 147 147 147 (A) Property, Plant and Equipment 887 1,347 1,362 (B) Other Equity 2,562 2,987 3,165 (B)
Slide 36: Financials - Standalone
Financials - Standalone REVENUES* (INR MN) EBITDA (INR MN) PAT (INR MN) GROWTH GROWTH GROWTH 470 478 10,243 1,004 4% 9,811 6% 2% 949 FY17 FY18 FY17 FY18 FY17 FY18 NET DEBT/EQUITY ROE and ROCE WORKING CAPITAL DAYS FY17 FY18 24.3% 70 65 20.3% 65 61 60 17.3% 15.2% 55 (0.3) ROE ROCE 50 (0.4) FY17 FY18 F
Slide 37: Consolidated Income Statement (As per IndAS)
Consolidated Income Statement (As per IndAS) INCOME STATEMENT (INR MN) FY17 FY18 Total Income^ 10,594 10,760 Total Expenses 9,776 9,779 EBITDA 818 981 EBITDA Margins (%) 7.72% 9.12% Depreciation 118 131 Finance Cost 163 187 PBT 537 663 Share of Profit of equity accounted Investee 1 1 Tax 248 264 Pro
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet (As per IndAS) PARTICULARS (INR MN) FY17 FY18 PARTICULARS (INR MN) FY17 FY18 EQUITIES & LIABILITIES ASSETS Equity Non-Current Assets (A) Equity Share Capital 142 142 (A) Property, Plant and Equipment 977 1,436 (B) Other Equity 1,525 1,859 (B) Capital Work-in-progress 336 6
Slide 39: Financials - Consolidated
Financials - Consolidated REVENUES* (INR MN) EBITDA (INR MN) PAT **(INR MN) 10,760 398 10,594 981 GROWTH GROWTH GROWTH 2% 20% 818 38% 288 FY17 FY18 FY17 FY18 FY17 FY18 NET DEBT/ EQUITY ROE and ROCE WORKING CAPITAL DAYS FY17 FY18 69 16.8% 19.6% 67 26.1% 24.3% (0.4) ROE ROCE (0.6) FY17 FY18 FY17 FY18
Slide 40: Market Data (Bloomberg – ION IN, Reuters – IONX.BO)
Market Data (Bloomberg – ION IN, Reuters – IONX.BO) 1 YEAR SHARE PRICE MOVEMENT (AS ON 30th SEPTEMBER, 2018) 30% Ion Exchange Sensex 20% 10% 0% -10% -20% -30% Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 PRICE DATA (AS ON 30th SEPTEMBER, 2018) SHAREHOLDING PATT
Slide 41: Disclaimer
Disclaimer Ion Exchange (India) Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all e
Slide 42: Thank You
@ ION EXCHANGE Refreshing the Planet
Ion Exchange (India) — H1 FY2019 Earnings Presentation on 6ix