National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q2 FY2017-18 Earnings Presentation
45 slides from National Fertilizers's earnings presentation, Nov 30, 2017
Slide 1: Financial Performance for the 2nd Quarter and Half Year Ended 30/9/17
FINANCIAL PERFORMANCE FOR THE 2 QUARTER nd ENDED ON 30/9/17 / HALF YEAR ENDED ON 30/9/17 Dated: 30/11/17
Slide 2: Brief Overview
BRIEF OVERVIEW Introduction • Incorporated on 23rd August, 1974. • Capital Details as on 30/09/2017. a. Authorized capital of ` 1000 Crore. b. Paid up capital of ` 490.58 Crore. c. Net-worth of ` 1868.29 Crore. d. Shareholding Pattern: 74.71% Government of India and 25.29 % is held by financial inst
Slide 3: Brief on Plants and Trading Activities
BRIEF ON PLANTS AND TRADING ACTIVITIES UREA Vijaipur-II Vijaipur-I Bathinda Panipat Nangal ANNUAL CAPACITY (LMT) – 32.31 LMT (RAC) 8.646 8.646 5.115 5.115 4.785 Annual Capacity after Urea Capacity Enhancement Projects at 10.662 9.999 5.115 5.115 4.785 Vijaipur-I & II units – 35.68 LMT Capacity utili
Slide 4: Financial Performance at a Glance
FINANCIAL PERFORMANCE AT A GLANCE ` Crore SL .No. Particulars 2014-15 2015-16 2016-17 1 Production (Urea) (LMT) 36.39 37.99 38.1 2 Capacity Utilization (Urea %) 112.6 117.6 117.9 3 Turnover 8520 7794 7663 4 Other Income 37 47 45 5 Total Expenses 8138 7237 7108 6 EBITDA 419 604 600 7 Interest 301 228
Slide 5: Performance Highlights (For 6 months as on 30/09/17)
PERFORMANCE HIGHLIGHTS (For 6 months as on 30/09/17) Ever best achievements during first half year of the financial years: 1. Ever best Urea production of 18.67 LMT (capacity utilization of 116% of RAC) during the half year ended as compared to 18.63 Lakh MT (capacity utilization of 115% of RAC) d
Slide 6: Production of Urea
PRODUCTION OF UREA Lakh MT Unit July-Sep 17 CPLY Apr-Jun 17 CPLY Apr-Sep 17 CPLY Nangal 1.49 1.33 1.37 1.06 2.87 2.38 Panipat 1.48 1.32 1.44 1.20 2.92 2.52 Bathinda 1.39 1.42 1.23 1.42 2.61 2.84 Vijaipur I 2.73 2.74 2.36 2.63 5.09 5.37 Vijaipur II 2.18 3.07 2.99 2.44 5.18 5.52 Total 9.27 9.88 9.39 8
Slide 7: Production of Urea - First Half of Last Years
Production For The First Half (6 months) of Last 5 Years Production in LMT 20 18.4 18.63 18.67 17.48 17.99 16 Production of urea 12 8 4 0 Sept 2013 Sept 2014 Sept 2015 Sept 2016 Sept 2017 Period 7
Slide 8: On-Stream Days
ON-STREAM DAYS July-Sep Apr-Jun Apr-Sep Unit CPLY CPLY CPLY 17 17 17 Nangal 91 84 84 67 175 151 Panipat 92 81 88 76 180 157 Bathinda 85 89 76 89 161 178 Vijaipur I 90 91 79 87 169 178 Vijaipur II 65 92 90 74 155 166 1. Production of urea during the half year was higher at Nangal and Panipat units as
Slide 9: Energy Consumption (Gcal/MT of Urea)
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Norms Units July-Sep 17 CPLY Apr-Sep 17 CPLY under NUP-2015 Nangal 7.095 6.696 7.003 6.826 7.178 Panipat 7.614 6.775 7.122 6.843 7.247 Bathinda 7.479 6.938 6.868 7.121 6.930 Vijaipur-I 5.904 5.748 5.702 5.795 5.734 Vijaipur-II 5.569 5.404 5.306 5.391 5.358
Slide 10: Production of Industrial Products & Bio-Fertilizers
PRODUCTION OF INDUSTRIAL PRODUCTS (with one stream in operation) & BIO-FERTILIZERS Qty. in MT Sr. July-Sep Apr-Jun Apr-Sep Products CPLY CPLY CPLY No. 17 17 17 A. Nangal Unit 1 Nitric Acid 15915 17697 20145 19463 36060 37160 Ammonium Nitrate 2 1530 2845 2500 609 4030 3454 (Melts)* 3 Sodium Nitrate/
Slide 11: Purchase of Other Fertilizers etc.
PURCHASE OF OTHER FERTILIZERS ETC. July-Sep Apr-Jun Apr-Sep Particulars Unit CPLY CPLY CPLY 17 17 17 DAP * MT 190620 164121 97700 50082 288320 214203 MOP @ MT - - 27487 - 27487 - APS # MT - - 27005 - 27005 - BS $ MT - 3019 - 1000 - 4019 Total MT 190620 167140 152192 51082 342812 218222 Compost MT 22
Slide 12: Sale of Urea
SALE OF UREA (LAKH MT) Zonal July-Sep Apr-Jun Apr-Sep CPLY CPLY CPLY Offices 17 17 17 Chandigarh 3.51 3.96 4.61 2.91 8.12 6.87 Zone Bhopal Zone 3.20 2.87 2.27 2.26 5.47 5.13 Lucknow 3.36 2.90 2.77 2.38 6.12 5.27 Zone TOTAL 10.07 9.73 9.65 7.55 19.71 17.27 The above three zones caters to 16 states an
Slide 13: Sale Quantity of Urea for First Half of Last 5 Years
Sale Quantity Of Urea For The First Half (6 months) of Last 5 Years Sales in LMT 20 19.71 17.99 18.5 17.25 17.27 16 Sales of urea 12 8 4 0 Sept 2013 Sept 2014 Sept 2015 Sept 2016 Sept 2017 Period 13
Slide 14: Total Fertilizers Sales Quantity for First Half of Last 5 Years
Total Fertilizers Sales Quantity For The First Half (6 months) of Last 5 Years Total Fertilizer Sales Quantity in LMT 25 20.69 18.50 17.43 18.46 20 16.91 15 10 5 0 HY Sept 2013 HY Sept 2014 HY Sept 2015 HY Sept 2016 HY Sept 2017 14
Slide 15: Sale Quantity of Industrial Products for First Half of Last 5 Years
Sale Quantity of Industrial Products For The First Half (6 months) of Last 5 Years Nitric Acid (100%) 40000 34326 MT 35000 32625 MT 30000 21789 MT 23136 MT 25000 20000 15000 12462 MT 10000 5000 0 HY Sept 2013 HY Sept 2014 HY Sept 2015 HY Sept 2016 HY Sept 2017 SALES QUANTITY IN MT Ammonium Nitrate (
Slide 16: Sales Quantity and Value
SALES QUANTITY AND VALUE ` Crore Inc. / July-Sep Apr-Jun Apr-Sep Particulars CPLY CPLY CPLY (Dec.) 17 17 17 % Sale quantity of urea 10.07 9.73 9.65 7.55 19.71 17.27 14 (LMT) Sale quantity of 0.85 0.45 0.16 - 1.04 0.45 125 DAP/MOP/NPK (LMT) Total 10.92 10.18 9.81 7.55 20.75 17.72 20 Gross Sales of Ur
Slide 17: Sale of Traded Goods - Breakup
Sale of Traded Goods - Breakup ` Crore Jul-Sep Apr-Jun Value Inc. CPLY CPLY Apr-Sep CPLY Particulars 17 Value 17 Value / (Dec.) Value Value 17 Value Value % DAP (MT) 216.07 143.50 49.14 3.85 265.21 147.35 80 MOP (MT) 20.23 - 6.59 - 26.82 - 100 NPK (MT) 17.86 - - - 17.86 - 100 BS (MT) 0.16 3.18 - - 0
Slide 18: Sale of Industrial Products - Breakup
Sale of Industrial Products - Breakup Value Jul-Sep CPLY Apr-Jun CPLY Apr-Sep CPLY Inc. / Particulars 17 Value Value 17 Value Value 17 Value Value (Dec.) (` Crore) (` Crore) (` Crore) (` Crore) (` Crore) (` Crore) % Nitric Acid (MT) 19.69 38.75 39.96 51.07 58.15 89.82 (35) Ammonium 3.10 6.98 5.67 1.
Slide 19: Sale Value of Urea for HY 17-18 and HY 16-17
Sale Value of Urea For HY 17-18 and HY 16-17 Urea ₹ 4,000 ` 3610.13 Crore ₹ 3,500 ` 2979.05 Crore ₹ 3,000 ₹ 2,500 ₹ 2,000 ₹ 1,500 ₹ 1,000 ₹ 500 ₹0 HY 2016-17 HY 2017-18 19
Slide 20: Sale Value of Traded Goods for HY 17-18 and HY 16-17
Sale Value of Traded Goods For HY 17-18 and HY 16-17 Traded Goods 350 ` 314.43 Crore 300 250 200 ` 182.61 Crore 150 100 50 0 HY 2016-17 HY 2017-18 20
Slide 21: Sale Value of Industrial Product for HY 17-18 and HY 16-17
Sale Value of Industrial Product For HY 17-18 and HY 16-17 Industrial Product 120 ` 105.53 Crore 100 ` 79.02 Crore 80 60 40 20 0 HY 2016-17 HY 2017-18 21
Slide 22: Sale Value of Urea and Other Products for HY
Sale Value of Urea and Other Products for HY Ended 17 4003.58 HY 2016-17 `314.43 HY 2017-18 `79.02 crore , 50% `182.61 ` 105.53 crore crore (6%) (3%) (2%) (8%) `2979.05, 91% `3610.13 crore , 90% Urea Traded Goods IP Urea Traded Goods IP 22
Slide 23: Details of Stock of Fertilizers
DETAILS OF STOCK OF FERTILIZERS (LAKH MT) As on As on As on Unit 30.09.2017 31.03.2017 30.09.2016 A) UREA 1. Silo 0.36 1.24 1.75 2. MIT 0.30 0.48 0.37 3. Warehouse 0.75 0.74 1.18 Total stock Of Urea (1+2+3) 1.41 2.46 3.30 Note : Urea stock has reduced from 3.30 LMT as on 31.03.2017 to 1.41 LMT as on
Slide 24: Overall Performance (2nd Quarter ended 30/9/17)
OVERALL PERFORMANCE (2 Quarter ended on 30/9/17) nd ` Crore Increase / Qtr. Particulars CPLY (Decrease) Sep 17 ` Crore % Gross Sales 2132.71 1895.85 236.86 13 Total Expenses (Break up in next slide) 1968.15 1758.46 209.69 12 Earnings before interest, depreciation and 164.56 137.39 27.17 20 tax (EBIT
Slide 25: Details of Expenses (2nd Quarter ended 30/9/17)
Details of Expenses (2 Quarter ended on 30/9/17) nd Qtr. CPLY Increase/ Remarks Particulars Sep 2017 (Decrease) Production of urea (LMT) 9.27 9.88 (0.61) Mainly due to annual shutdown at Vijaipur-II unit. Dispatches of urea (LMT) 9.99 9.66 0.33 Dispatches increased by 3%. (` Crore) (` Crore) (` Cror
Slide 26: Finance Cost
FINANCE COST ` Crore Increase/ Particulars Qtr. Sep 17 CPLY (Decrease) Interest on Long Term Loans 1.95 5.38 (3.43) Interest on working capital Loans 50.63 39.31 11.32 Other borrowing costs 2.36 0.62 1.74 Total finance cost 54.94 45.31 9.63 Less: Interest earned on deposits 1.08 3.18 (2.10) Net fina
Slide 27: Analysis of Interest on Working Capital Loan
Analysis of Interest on Working Capital Loan Saving/ Particulars Qtr. Sep 17 CPLY (Increase) Average credit utilization (` crore) 3151.96 2162.33 (989.63) Average rate of interest 6.33% 6.85% 0.52% Interest on working capital loans (` crore) 50.63 39.31 11.32 Rate variance - Savings ` crore 4.07 Qua
Slide 28: Interest Coverage Ratio
INTEREST COVERAGE RATIO Qtr. ended Particulars Unit CPLY Sep 17 EBITDA ` crore 174.17 150.38 Finance Cost ` crore 54.94 45.31 Loan Repayment ` crore 25.23 22.29 Interest Coverage Ratio Times 3.17 3.32 Debt Service Coverage Ratio Times 2.17 2.22 Interest Coverage Ratio has decreased from 3.32 times
Slide 29: Financial Performance (Quarter ended 30/9/17)
FINANCIAL PERFORMANCE (Quarter ended 30/9/17) Company has earned PBT of ` 103.47 crore during the quarter ended 30th September, 2017 as against PBT of ` 86.86 crore during CPLY i.e. increase in profit by ` 16.61 crore.(19.12%) PBT has increased mainly due to: 1) Lower energy consumption. 2) Increase
Slide 30: Overall Performance (half year ended on 30/9/17)
OVERALL PERFORMANCE (half year ended on 30/9/17) ` Crore Increase / HY Particulars CPLY (Decrease) Sep 17 ` Crore % Gross Sales 4003.58 3267.19 736.39 23 Total Expenses (Break up in next slide) 3752.61 3044.32 708.29 23 Earnings before interest, depreciation and 250.97 222.87 28.10 13 tax (EBITDA) L
Slide 31: Details of Expenses (half year ended on 30/9/17)
Details of Expenses (half year ended on 30/9/17) HY CPLY Increase/ Remarks Particulars Sept 2017 (Decrease) Production of urea (LMT) 18.67 18.63 0.04 Marginally increased Dispatches of urea (LMT) 19.54 17.83 1.71 Dispatches increased by ~ 10% (` Crore) (` Crore) (` Crore) Cost of Materials 1521.22 1
Slide 32: Finance Cost
FINANCE COST ` Crore Increase/ Particulars HY Sep 17 CPLY (Decrease) Interest on Long Term Loans 4.52 9.34 (4.82) Interest on working capital Loans 86.66 104.51 (17.85) Other borrowing costs 4.21 2.66 (1.55) Total finance cost 95.39 116.51 (21.12) Less: Interest earned on deposits 1.78 6.42 (4.64) N
Slide 33: Analysis of Interest on Working Capital Loan
Analysis of Interest on Working Capital Loan Saving/ Particulars HY Sep 17 CPLY (Increase) Average credit utilization (` crore) 2705.94 2749.15 43.21 Average rate of interest 6.29% 7.39% 1.10% Interest on working capital loans (` crore) 86.66 104.51 17.85 Rate variance - Savings ` crore 16.25 Quanti
Slide 34: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST NFL negotiated with Banks for lower interest rates for short term fund requirements. MIBOR Linked, CD rate linked and REPO rate linked STLs availed with interest rate lower than MCLR / CC limit rates. Short term borrowings through Inter Corporate Deposit (ICD
Slide 35: Overall Performance
OVERALL PERFORMANCE ` Crore Q-1 June Q-2 Sep- HY Q-1 Q-2 Sep- CPLY Inc./(Dec.) HY Particulars 17 17 Sep 17 June16 16 (HY Sept-16) ` Crore % Gross Sales 1870.87 2132.71 4003.58 1371.34 1895.85 3267.19 736.39 23 Total Expenses 1784.46 1968.15 3752.61 1285.86 1758.46 3044.32 708.29 23 Earnings before i
Slide 36: Segment Results
SEGMENT RESULTS ` Crore Qtr. ended HY ended Particulars CPLY CPLY Sep 17 Sep 17 Segment Revenue Urea 1846.75 1691.32 3610.13 2979.05 86.59% 89.21% 90.17% 91.18% Other Products (Industrial Products, 285.96 204.53 393.45 288.14 Traded Goods and Bio-Fertilizers) 13.41% 10.79% 9.83% 8.82% Total 2132.71
Slide 37: Interest Coverage Ratio
INTEREST COVERAGE RATIO HY ended Particulars Unit CPLY Sep 17 EBITDA ` crore 268.39 246.40 Finance Cost ` crore 95.39 116.51 Loan Repayment ` crore 31.50 28.56 Interest Coverage Ratio Times 2.81 2.11 Debt Service Coverage Ratio Times 2.11 1.66 Interest Coverage Ratio has increased from 2.11 times
Slide 38: Financial Performance (Half-Year ended 30/9/17)
FINANCIAL PERFORMANCE (Half-Year ended 30/9/17) Company has earned profit before tax of ` 143.13 crore during the half year ended 30th September, 2017 as against profit before tax of ` 87.87 crore during CPLY i.e. increase in profit by ` 55.26 crore (62.89%). PBT has increased mainly due to: 1) Lowe
Slide 39: EBITDA for the Last Financial Years Including HY 2017-18
EBITDA For The Last 5 Financial Year Including HY 2017-18 EBITDA 600 ` 556.97 ` 555.22 500 400 ` 376.55 300 ` 250.97 200 ` 126.59 100 0 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 HY 2017-18 39
Slide 40: Debt to Equity Ratio
DEBT TO EQUITY RATIO ` Crore S. As on Particulars CPLY No. 30th Sep 17 1 Long term Borrowings 575.39 1387.87 2 Short term Borrowings 3318.19 2221.47 3 Total Borrowings 3893.58 3609.34 Borrowings pertaining to AFCP (Urea) 4 372.39 1118.66 excluded being reimbursed by GoI 5 Net Borrowings 3521.19 2490
Slide 41: Key Financial Indicators
KEY FINANCIAL INDICATORS ` Crore S. Particulars HY Sep 17 CPLY No. 1 Gross Sales (including subsidy) 4003.58 3267.19 2 EBDITA 268.39 246.40 3 Profit Before Tax 143.13 87.87 4 Profit After Tax 92.59 45.91 5 Total Comprehensive Income 91.84 42.75 6 Net Worth 1868.29 1675.10 7 Debt (for D:E ratio calcu
Slide 42: Key Financial Ratios
KEY FINANCIAL RATIOS S. Particulars HY Sep 17 CPLY No. 1 Earning Per Share (` 10/- each) 1.89 0.94 2 Earning Per Share (` 10/- each) 1.87 0.87 (after considering OCI) 3 Return (Total Comprehensive Income) on Net Worth 4.92 2.55 4 Return (Total Comprehensive Income) on Average Net 4.97 2.54 Worth 5 E
Slide 43: Major Capex in Pipeline
MAJOR CAPEX IN PIPELINE RFCL JV of NFL, EIL and FCIL - NFL Equity contribution (being 26% of total equity of RFCL) is ` 342 crore. (Detail in slide 44). Di-Nitrogen Tetroxide Plant at Vijaipur unit on Built Own Operate and Supply (BOOS) basis for ISRO with a project cost of ` 350 crore. Energy
Slide 44: Major Capex in Ramagundam Fertilizers & Chemical Limited (RFCL) Project
MAJOR CAPEX IN RAMAGUNDAM FERTILIZERS & CHEMICAL LIMITED (RFCL) PROJECT Detail of the project Equity contribution NFL - 26%, EIL - 26%, FCIL - 11%, State Government of Telangana 11% Zero Date - 25th September 2015 Project time schedule – 36 months from zero date i.e. 25/9/15 Project Capita
Slide 45: Thank You
THANK YOU 45
National Fertilizers — Q2 FY2017-18 Earnings Presentation on 6ix