Nocil Limited · NSE:NOCIL
Nocil — H1 FY2019 Earnings Presentation
31 slides from Nocil's earnings presentation, Oct 31, 2018
Slide 1: Cover letter to stock exchanges
Reg. Office: Mafatlal House, 3rd Floor, H.T. Parekh Marg, Backbay Reclamation, Churchgate, Mumbai-400 020, India. Tel.: 91 22 6657 6100, 6636 4062 Fax: 91 22 6636 4060 Website: www.nocil.com NOCIL LIMITED CIN: L99999MH1961PLC012003 Email: investorcare@nocil.com 31st October 2018 SEC/122B The Secreta
Slide 2: Investor Presentation October 2018
Investor Presentation October 2018
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by NOCIL Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 4: Results Highlights
Results Highlights
Slide 5: Another Year of Strong Performance
Another Year of Strong Performance Rs. In Crores Revenue from Operations* Operating EBITDA PAT 968 263 169 56% 60% 61% Revenues EBITDA PAT achieved achieved achieved 159 104 540 FY18 H1FY19 FY18 H1FY19 FY18 H1FY19 H1FY19 EBITDA Margins of 29.4% * Revenue from operations is net of GST/Excise duty 4
Slide 6: Profitability doubles in 3 years
Profitability doubles in 3 years Rs. In Crores Revenue from Operations* Value Additions** Operating EBITDA 540 302 159 443 239 374 196 109 79 H1FY17 H1FY18 H1FY19 H1FY17 H1FY18 H1FY19 H1FY17 H1FY18 H1FY19 PBT PBT Margins PAT 153 104 108 73 76 51 H1FY17 H1FY18 H1FY19 H1FY17 H1FY18 H1FY19 * Revenue fr
Slide 7: Improving Operating Efficiency
Improving Operating Efficiency Value Additions** Operating EBITDA Margins 53.9% 55.8% 29.5% 52.4% 24.6% 21.2% H1FY17 H1FY18 H1FY19 H1FY17 H1FY18 H1FY19 PBT Margins PAT Margins 28.4% 19.2% 24.4% 16.4% 20.2% 13.6% H1FY17 H1FY18 H1FY19 H1FY17 H1FY18 H1FY19 **(Revenue (-) cost of raw materials consumed
Slide 8: Revenue Analysis and Break-up
Revenue Analysis and Break-up Revenue Growth Bridge Geography-wise Revenue mix Rs. In Crs. 49 540 Domestic Exports 48 29% 443 Series H1FY19 H1FY18 Volume Value H1FY19 Growth Growth 71% Growth in Revenue was equally contributed by Volume & Value growth: ✓ Volume growth – Robust demand ✓ Value growth
Slide 9: Quarterly Performance
Quarterly Performance Rs. In Crores Revenue from Operations* Value Additions** Operating EBITDA 272 153 79 228 119 181 101 54 42 Q2FY17 Q2FY18 Q2FY19 Q2FY17 Q2FY18 Q2FY19 Q2FY17 Q2FY18 Q2FY19 PBT PAT 76 53 55 38 40 27 Q2FY17 Q2FY18 Q2FY19 Q2FY17 Q2FY18 Q2FY19 * Revenue from operations is net of GST/
Slide 10: Quarterly Margin Profile
Quarterly Margin Profile Value Additions** Operating EBITDA Margins 55.6% 56.1% 29.0% 52.4% 23.3% 23.7% Q2FY17 Q2FY18 Q2FY19 Q2FY17 Q2FY18 Q2FY19 PBT Margins PAT Margins 28.1% 19.4% 24.0% 16.7% 22.0% 15.1% Q2FY17 Q2FY18 Q2FY19 Q2FY17 Q2FY18 Q2FY19 **(Revenue (-) cost of raw materials consumed (-) co
Slide 11: CAPEX – Key Growth Driver
CAPEX – Key Growth Driver To capitalize on growth opportunities, Company has Capex Phase I – Rs. 170 crores Phase II – Total Capex of Rs. 255 crores* Announced in March’17 Phase I (a) - Expansion at • For expansion of its production facilities for Rubber Chemicals (including Navi Mumbai has been int
Slide 12: Company Overview
Wh ARVIND MAFATLAL GRouP NOcIL LIMITED Company Overview
Slide 13: NOCIL in a Snapshot
NOCIL in a Snapshot Part of Arvind Mafatlal Group Largest Rubber Chemicals Manufacturer in India Expertise in Rubber Chemical Business over 4 decades State of the Art, Innovative, Sustainable & Competitive Technologies Wide range of Rubber Chemicals to suit customer needs Long Term Business Relation
Slide 14: Management Team
Management Team Mr. Hrishikesh . A. Mafatlal – Promoter & Chairman Mr. S. R. Deo – Managing Director • Executive Chairman and Promoter Director of NOCIL Ltd • M. Tech. in Chemical Engineering from IIT Kanpur • Associated with the company for nearly 39 years in various • B.Com. (Hons.) & has attended
Slide 15: Manufacturing facilities
Manufacturing facilities Navi Mumbai Plant Dahej Plant Set up in 1976 Commercialized operation in March 2013 Located in Trans-Thane Creek industrial area at Navi Located about 45 kms from Bharuch, Gujarat Mumbai, Thane - Belapur’s industrial zone designated for the chemical Industry, about 40 kms aw
Slide 16: Products & their Usage
Products & their Usage ACCELERATORS Increase the speed of vulcanization to improve productivity ANTI-DEGRADANTS/ ANTI-OXIDANTS An ingredient in rubber compounds which deters the ageing or inhibits degradation due to oxygen attack of rubber products thereby enhancing service life SPECIALISED APPLICAT
Slide 17: Our Value Proposition
Our Value Proposition Products & Product Forms R & D and Quality Assurance ▪ Experienced, capable & innovative ▪ Wide Range of Rubber Chemical Products team ▪ Varied Product Forms of R & D scientists. ▪ Ultra Modern Laboratories & Pilot 1 Plant Facilities ▪ Latest Analytical Instruments 3 2 Sales, M
Slide 18: R&D and Total Quality Management
R&D and Total Quality Management Research & Technology Quality Assurance Certifications Development ▪ NOCIL’s Research Centre is ▪ Quality Management ▪ ISO 9001:2008 recognized by Ministry of Science System with a focus on ▪ ISO 14001:2004 and Technology, Government of Quality of Raw materials, Indi
Slide 19: Industry Potential
Industry Potential Our Positioning
Slide 20: Positive Outlook
Positive Outlook Global Rubber Consumption (Natural + Synthetic) In Lakh tonnes 290.0 290.0 282.8 7.2 8.2 274.6 268.0 6.6 263.4 4.6 7.6 255.8 2013 2014 2015 2016 2017 2018* Total Rubber Chemicals constitute 3% - 4% of the Rubber Consumption Every year ~40k additional demand for Rubber chemicals is c
Slide 21: Growth Opportunities
Growth Opportunities Expansion Plans of Tyre Industry Automotive & Tyre Industry are expected to grow at Global Tyre Industry CAGR 12% – 14% have already for next 4 to 5 years Continuous committed $7.50 Bn Demand for comprising of 82Mn Rubber units of Car tyres & Chemicals 7.5Mn units of truck/bus t
Slide 22: Growth Opportunities
Growth Opportunities PV Car Penetration Levels Per 1,000 Population 500 450 425 250 200 125 50 10 World Europe Japan United States Russia Mexico China India Source : ATMA - Indian Tyre Industry Report & Tire Business (Aug 18) 21
Slide 23: Growth Drivers
Growth Drivers 01 High performance tyres & extended life, Automotive & Industrial products will increase rubber processing chemical loadings Stringent environmental compliance and cost increase in China 02 leading to Better level playing field Rising Income levels & increase in Motor vehicle ownersh
Slide 24: FUTURE Ready
Wh ARVIND MAFATLAL GRouP NOCIL LIMITE D FUTURE Ready
Slide 25: Technology & Speciality Chemicals – Moving up the curve
Technology & Speciality Chemicals – Moving up the curve Overall Improvement in Margin Profile of the Company 55% 56% 50% 52% 46% 42% 35% 27% 29% 19% 21% 16% 10% 19% 4% 14% 17% 8% 11% 4% FY13 FY14 FY15 FY16 FY17 FY18 H1FY19 EBITDA (%) Value Addition (%) PAT (%) ✓ Strong Process R&D Capabilities leadi
Slide 26: Key Strengths
Key Strengths Dependable & Quality Wide Experienced Player in Product Management Rubber Range Team Chemicals Industry New Committed capacity plans for addition in Strong future Rubber Customer growth Chemicals Relationships with good Technical Support 25
Slide 27: Financials
Wh ARVIND MaFATLAL GRour NOCIL LIMITED Financials
Slide 28: Statement of Profit & Loss - Quarterly
Statement of Profit & Loss - Quarterly Rs. In Crores Q2 FY19 Q2 FY18 Y-o-Y Net Revenue from Operations * 272 228 19.5% Total Raw Material Cost 119 108 Value Addition** 153 119 27.9% Value Addition % 56.1% 52.4% 368 bps Employee Expenses 16 16 Other Operating Expenses 57 49 Operating EBITDA 79 54 46.
Slide 29: Statement of Profit & Loss – Half Yearly
Statement of Profit & Loss – Half Yearly Rs. In Crores H1 FY19 H1 FY18 Y-o-Y FY18 Net Revenue from Operations* 540 443 22.0% 968 Total Raw Material Cost 238 204 441 Value Addition** 302 239 26.4% 527 Value Addition % 55.9% 53.9% 191 bps 54.5% Employee Expenses 34 35 67 Other Operating Expenses 109 9
Slide 30: Balance Sheet
Balance Sheet Particulars (Rs. In Crores) Sept’18 Mar’18 Particulars (Rs. In Crores) Sept’18 Mar’18 ASSETS EQUITY AND LIABILITIES Non-Current Assets 741 652 EQUITY 1,082 1,037 Property, Plant and Equipment 503 499 Equity Share Capital 165 164 Capital work-in-progress 104 39 Other Equity 917 873 Inve
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : NOCIL Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L99999MH1961PLC012003 CIN: U74140MH2010PTC204285 Mr. P. Srinivasan - CFO Ms. Payal Dave / Ms. Neha Shroff finance@nocil.com payal.dave@sgapl.net / neha.shroff@sgapl.ne