Chemplast Sanmar Limited · NSE:CHEMPLASTS
Chemplast Sanmar — Q2 FY25 Earnings Presentation
37 slides from Chemplast Sanmar's earnings presentation, Nov 5, 2024
Slide 1: Stock exchange filing: Investor Presentation Q2 FY25
5th November, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai – 400 001 Mumbai – 400 050 Scrip Code - 543336 Scrip Symbol - CHEMPLASTS Subject: Investor Presentation Please find enclosed a copy of Investor
Slide 2: Chemplast Sanmar Ltd. Investor Presentation – Q2 FY '25
Chemplast Sanmar Ltd. Investor Presentation – Q2 FY ’25
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the ‘Presentation’), which have been prepared by Chemplast Sanmar Ltd. (the ‘Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Performance Highlights
Performance Highlights Se
Slide 5: Performance Highlights: Q2 & H1 FY '25
Performance Highlights: Q2 & H1 FY ’25 Key Highlights Revenues EBITDA PAT • PVC (both Suspension and Paste) witnessed price and margin pressures Margin Rs. Cr due to excessive dumping in Q2 FY ’25 5% 3% 988 993 o Suspension PVC : On a promising development, earlier this week, 46 provisional anti-dum
Slide 6: MD's Message
MD’s Message “The Company reported a topline of Rs. 2,138 crore for H1 FY ‘25 despite multiple headwinds. After a healthy performance in Q1 FY ‘25, PVC prices resumed their volatile trajectory due to excessive dumping and witnessed a significant downturn during the September quarter. Amidst this tou
Slide 7: Segmental Highlights - Quarterly
Segmental Highlights - Quarterly Rs. Cr Speciality Chemicals Value -added Suspension PVC Consolidated Chemicals# Revenue Break-up 1,145 637 641 988 993 351 152 161 303 128 223 529 Q2 FY '24 Q1 FY '25 Q2 FY '25 Q2 FY '24 Q1 FY '25 Q2 FY '25 Q2 FY '24 Q1 FY '25 Q2 FY '25 Q2 FY '24 Q1 FY '25 Q2 FY '25
Slide 8: Segmental Highlights – Half Yearly
Segmental Highlights – Half Yearly Rs. Cr Speciality Chemicals Value -added Suspension PVC Consolidated Chemicals# Revenue Break-up 2,138 1,984 1,290 1,170 654 440 313 254 H1 FY '24 H1 FY '25 H1 FY '24 H1 FY '25 H1 FY '24 H1 FY '25 H1 FY '24 H1 FY '25 mt 2,83,893 2,68,115 Sales Volume 1,67,442 1,50,
Slide 9: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Rs. Cr Particulars Q2 FY ’25 Q2 FY ’24 Y-o-Y Q1 FY ’25 Q-o-Q H1 FY ’25 H1 FY ’24 Y-o-Y Revenue from Operations 993 988 1% 1,145 -13% 2,138 1,984 8% Cost of Goods Sold 624 656 -5% 685 -9% 1,309 1,381 -5% Employee Cost 66 39 69% 58 13% 125 77 61% Other Expenses 277 2
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Rs. Cr Assets Sept ’24 Mar ’24 Equity And Liabilities Sept ’24 Mar ‘24 Non-Current Assets Equity a) Property, Plant And Equipment 3,860 3,846 a) Equity Share Capital 79 79 b) Capital Work in Progress 247 190 b) Other Equity 1,625 1,587 c) Right Of Use Asset c) Instruments
Slide 11: Consolidated Cashflow Statement
Consolidated Cashflow Statement Rs. Cr Particulars Sept ’24 Sept ’23 Net Profit Before Tax (33) (84) Adjustments for: Non Cash Items / Other Investment or Financial Items 180 80 Operating profit before working capital changes 147 (3) Changes in working capital (2) (163) Cash generated from Operation
Slide 12: Stand-alone Profit & Loss Account
Stand-alone Profit & Loss Account Rs. Cr Particulars Q2 FY ’25 Q2 FY ’24 Y-o-Y Q1 FY ’25 Q-o-Q H1 FY ’25 H1 FY ’24 Y-o-Y Revenue from Operations 516 351 47% 560 -8% 1,076 700 54% Cost of Goods Sold 246 151 63% 264 -7% 510 306 67% Employee Cost 45 26 75% 40 13% 85 51 65% Other Expenses 211 182 16% 21
Slide 13: Stand-alone Balance Sheet
Stand-alone Balance Sheet Rs. Cr Assets Sept ’24 Mar ’24 Equity And Liabilities Sept ’24 Mar ‘24 Non-Current Assets Equity a) Property, Plant And Equipment 2,922 2,918 a) Equity Share Capital 79 79 b) Capital Work in Progress 246 186 b) Other Equity 3,796 3,761 c) Right Of Use Asset 9 11 Total Equit
Slide 14: Stand-alone Cashflow Statement
Stand-alone Cashflow Statement Rs. Cr Particulars Sept ’24 Sept ’23 Net Profit Before Tax (38) (54) Adjustments for: Non Cash Items / Other Investment or Financial Items 98 18 Operating profit before working capital changes 60 (36) Changes in working capital 22 (79) Cash generated from Operations 82
Slide 15: Company Overview
Company Overview Ss
Slide 16: Chemplast Sanmar: Leading Chemical Manufacturer in India
Chemplast Sanmar: Leading Chemical Manufacturer in India… 4 Manufacturing Experienced management #1 #1 sites with a high degree of team with deep domain manufacturer Leading player manufacturer of backward integration (2) expertise of Speciality in Custom S-PVC in South Paste PVC Manufactured India
Slide 17: With a Diversified Product Portfolio
… with a Diversified Product Portfolio Chemplast Sanmar CCVL (1) Speciality Chemicals Value-added Chemicals Suspension PVC Speciality Paste PVC Custom Caustic Soda Hydrogen Chloromethanes resin Manufacturing peroxide Irrigation Auto and Paper End-user Footwear Furniture Pharma Agrochemicals Textile
Slide 18: The Sanmar Advantage: Speciality Paste PVC
1. Speciality Paste PVC Part of speciality chemical division of Chemplast Sanmar. Largest manufacturer of Speciality Paste PVC resin in India • Manufactured at Mettur facility since 1968; 41 ktpa one-step process capacity added at Cuddalore in Q4-FY ‘24 CSL is the oldest player and one of only two c
Slide 19: The Sanmar Advantage: Custom Manufactured Chemicals
2. Custom Manufactured Chemicals Part of speciality chemicals division of Chemplast Sanmar; growing Renowned for our Sustainability, Environmental and Safety rapidly on the back of 15 years of long-standing client relationships stewardship • Quality manufacturing at Berigai facility in a safe and su
Slide 20: The Sanmar Advantage: Caustic Soda, Hydrogen Peroxide, Chloromethanes
3. Caustic Soda | Hydrogen Peroxide | Chloromethanes | Ref. Gas Part of Value-added chemicals division of Chemplast Sanmar; These complete the integration story of the company • Generated as a joint product in the process of manufacture of Capacity chlorine Caustic soda 119,000 • Sold at 48-50% conc
Slide 21: The Sanmar Advantage: Suspension PVC
4. Suspension PVC (1) Largest manufacturer of S-PVC in South India Strong customer relationships with a diversified dealer/ and second largest in India customer network • Manufactured at Cuddalore facility since 2009; 331 ktpa capacity The Sanmar Advantage • This facility has a captive import termin
Slide 22: Key Strengths
Key Strengths
Slide 23: Key Strengths
Key Strengths ‣ Over five decades track record ‣ State-of-the-art manufacturing units at strategic locations ‣ Significant expansion projects – Speciality chemicals Chemplast Sanmar Limited ‣ High growth industry ‣ Strong focus on sustainability ‣ Committed leadership team with eminent board 22
Slide 24: Over five decades track record
1. Over five decades track record Commencement of Expansion of Marine terminal Capacity expansion: CCVL became a wholly Commissioned Phase 1 of manufacturing of production capacity facility and EDC Paste PVC to 66,000 tpa at owned subsidiary of our Custom Manufacturing PVC resins at Mettur of PVC re
Slide 25: State-of-the-art Manufacturing Units
2. State-of-the-art Manufacturing Units… 01 Mettur, Tamil Nadu • The site consist of 4 plants with high degree of integration • Paste PVC – 66 ktpa • Zero liquid discharge facility • Hydrogen Peroxide – 34 ktpa • Sourcing of power from a captive power plant of 48.5 MW • Chloromethanes – 35 ktpa • Re
Slide 26: With a High Degree of Backward Integration
… with a High Degree of Backward Integration Mettur Plant Externally Procured Hydrogen Hydrogen By Product Peroxide 34kt Product Sold Imported Coal Caustic Soda Methanol EDC Power Plant Ref. Electrolysis Gases Paste PVC 48.5 MW VCM 70 kt 66 kt Chloromethanes Chlorine HCl HCl 35 kt Salt 400kt (Vedara
Slide 27: Significant expansion projects – Speciality chemicals
3. Significant expansion projects – Speciality chemicals 5,410 mtpa 910 Steady state mtpa 1432 Phase 3 mtpa 2,000 Phase 2 Project mtpa initiated 1,068 mtpa Phase 1 To be Commissioned Existing (Q3 FY ‘25) Commissioned (Sep ’23) • Commissioned Phase 1 of new multi-purpose production block (‘MPB’) in S
Slide 28: High Growth Industry
4. High Growth Industry… Products Speciality Paste PVC Suspension PVC Custom Manufactured Chemicals • India heavily import dependent • India set to outpace global Agro-CMC • India heavily import dependent • Demand growing at a fair clip market - AIs and advanced Key • Enough headroom to grow – no ca
Slide 29: With CSL's unique position to capitalize on it
… with CSL’s unique position to capitalize on it Technology not Leverage Existing Infra Owns vacant industrial land and available on License 01 other infrastructure for future leg Paste PVC manufacturing technology is closely of expansion guarded and is not readily available on license 02 High Safet
Slide 30: Strong Focus on Sustainability
5. Strong Focus on Sustainability… Environment • Harmonious relationship with Friendly Practices Health & Safety Measures neighboring communities • Zero liquid discharge policy • Transport safety - Installation • Desalination plants at coastal of speed control & safety • Receive enquiries from poten
Slide 31: With various awards & recognitions
… with various awards & recognitions Accreditations Key Awards Sword of Sword of Honor Honor British Safety ECOVADIS SILVER Star Award from British Safety Council MEDAL National Safety Council Council 2021, 2020, Mettur Safety Safety Cuddalore Plant 2 One of the two winners of the ‘Sustainability FI
Slide 32: Committed Leadership Team With Eminent Board
6. Committed Leadership Team With Eminent Board Dr. Krishna Kumar Rangachari N Krishnamoorthy Vijay Sankar Ramkumar Shankar Managing Director - Chairman & Managing Director Deputy Managing Director - Custom Manufactured Commercial Non Executive Director Chemicals Division Aditya Jain Dr. Lakshmi Vij
Slide 33: Historical Financials
Historical Financials es
Slide 34: Historical Segmental Highlights
Historical Segmental Highlights Rs. Cr Speciality Chemicals Value-added Suspension PVC Total Revenue Break-up Chemicals# 3,880 5,892 1,272 2,992 4,941 1,086 863 2,510 740 2,440 3,799 3,923 913 966 1,863 3,123 749 511 517 376 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '21 FY '22 FY '23 FY '24 FY '2
Slide 35: Performance Trend
Performance Trend Revenue EBITDA Rs. Cr 13% 22% 20% 9% 1% Margin 5,892 1,197 4,941 855# 3,799 3,923 3,123 400 468 26 FY '20 FY '21 FY '22 FY '23 FY '24 FY '20 FY '21 FY '22 FY '23 FY '24 PAT Net Debt -2% 8% 11% 3% -4% 649 2,060 310++ 1459 152 741 -47 -362 -184 -158 FY '20 FY '21 FY '22 FY '23 FY '24
Slide 36: Way forward
Way forward The Company expects margins to improve and Realisations are expected to be under pressure Speciality Paste Caustic Soda 4 in the short-term and stabilize thereafter on the 1 sustain over the medium to long term driven by PVC the tightness in global demand supply back of growth in demand
Slide 37: Thank You!
Thank You! Company Chemplast Sanmar Ltd. CIN- L24230TN1985PLC011637 Harish Sridhar / C S Sayee Venkatram - Investor Relations grd@sanmargoup.com www.chemplastsanmar.com Investor relations advisor Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Shikha Puri / Shrikant Sangani shikha.pu