Gujarat Narmada Valley Fertilizers & Chemicals Ltd. · NSE:GNFC
Gujarat Narmada Valley Fertilizers & Chemicals — Investor Presentation (July 2018)
44 slides from Gujarat Narmada Valley Fertilizers & Chemicals's investor presentation, Jul 9, 2018
Slide 1: Submission letter to exchanges: Analysts/Investors Meet FY 2018
Gujarat Narmada Valley Fertilizers & Chemicals Limited CIN : L24110GJ1976PLC002903 PO. Narmadanagar - 392 015, Dist. Bharuch, Gujarat. India Ph (02642) 247001,247002 (An ISO 14001 & OHSAS 18001 Company) Website www.gnfc.in NO. SEC/BD/SE/ FAX : 02642 - 247084 July 10, 2018 E-Mail: tjlakhmapurkarf@gnf
Slide 2: Investors’ Meet Presentation 9 July 2018
Investors’ Meet Presentation 9 July 2018 1
Slide 3: About GNFC
About GNFC Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) est. 1976, is a Government of Gujarat promoted company, listed on BSE & NSE Headquarters- Bharuch, Gujarat Business Segments – Chemicals & Fertilizers Revenue Contribution- 70% Chemicals and around 30% fertilizers 2
Slide 4: Business Segments - Fertilizers
Business Segments - Fertilizers 118% Utilization % in 2017-18 637 Installed Capacity in Thousand MT’s 151% 142 Urea Ammonium Nitro-Phosphate (Complex Fertilizer) 3
Slide 5: Business Segments - Chemicals
Business Segments - Chemicals 121% Utilization % in 2017-18 347 Installed Capacity in Thousand MT’s 68% 269 106% 156% 150% 93% 220% 125% 116 119% 100 64 53 50 10 35 Weak Nitric Concentrated Ammonium Acetic acid Formic acid Toluene Di- Aniline Methanol Ethyl acetate Acid Nitric Acid Nitrate (AN) Isoc
Slide 6: Strengths
Strengths Robust manufacturing technologies; Multi-product basket which helps to increase turnover & absorbed and adopted from sustain profitability even in adverse conditions technology experts worldwide Record capacity utilization in all plants, through indigenously Consistent profit from first in
Slide 7: Uniqueness
Uniqueness Only manufacturer of Toluene Never lost a single man-day Di-isocyanate (TDI) in South East on account of labour Asia & Indian Sub Continent discord Largest producer of Formic Absorbed state-of-the art Acid in India. One of the top complex technologies from producers of Aniline, AN Melt, l
Slide 8: Uniqueness: technology partnerships
Uniqueness We have successful track record of forging technology partnerships with international players combined with strong operations capability Technology Providers BASF Plinke BASF Germany Germany For Ammonium Nitro phosphate For Concentrated-Nitric Acid Haldor Topsoe BP Chemicals Denmark UK Fo
Slide 9: GNFC in Everyday Life
GNFC in Everyday Life Lets talk about Chemicals….. Medicines Adhesives Clothes 24*7 Furniture Mattress Perfumes There is some GNFC in your everyday life….. 8
Slide 10: Toluene Di-Isocyanate
Toluene Di-Isocyanate Major Brands Using TDI from GNFC Market Share of TDI in India IMPORT 35% GNFC 65% TECHNOLOGY PROVIDER 9
Slide 11: Aniline
Aniline Major Brands Using Aniline from GNFC Market Share of Aniline in India IMPORT 40% GNFC 60% TECHNOLOGY PROVIDER 10
Slide 12: Formic Acid
Formic Acid Major Brands Using Formic Acid from GNFC Market Share of Formic Acid in India IMPORT 42% GNFC 58% TECHNOLOGY PROVIDER 11
Slide 13: Technical Grade Urea
Technical Grade Urea Major Brands Using TGU from GNFC Market Share of TGU in India IMPORT 49% GNFC 51% TECHNOLOGY PROVIDER 12
Slide 14: Acetic Acid
Acetic Acid Major Brands Using Acetic Acid from GNFC Market Share of Acetic Acid in India GNFC 16% IMPORT 84% TECHNOLOGY PROVIDER & 13
Slide 15: Ethyl Acetate
Ethyl Acetate Major Brands Using Ethyl Acetate from GNFC Market Share of Ethyl Acetate in India JR Argo, 5%, Ashok Alco Dhampur, 2%, Chem, 3%, Others, 1%, Pentokey Organy (Goda), 5%, Jubiliant , 26%, IOLCP, 7%, GNFC, 20%, Somaiya/ Godavari, Laxmi 17%, Organics, 14%, TECHNOLOGY PROVIDER 14
Slide 16: Forex Savings
Forex Savings GNFC is involved in the manufacturing of key chemicals which are otherwise largely imported by India. Thus, GNFC has been contributing significantly to Honorable PM’s vision of Make in India In 2017,18: Import Substitute Sales of Industrial Products = 11.12 lakh MTs Products Sales of F
Slide 17: Export to 67 Countries Worldwide
Export to 67 Countries Worldwide Russia MIDDLE EAST Belarus Canada Iran UAE France Oman Saudi Arabia ASIA & AUSTRALIA Spain Israel Sirya Albania Georgia Pakistan Lebanon Jordan Bangladesh CENTRAL & SOUTH AMERICA Bahrain Korea Brazil Nepal Mexico Philippines Columbia Sri Lanka WEST & NORTH AFRICA EAS
Slide 18: Marketing & Distribution Network
Marketing & Distribution Network New Delhi Mehsana Jaipur Lucknow Udaipur Amethi Ahmedabad Vadodara Bharuch Bhopal Dahej Indore Rajkot Jalgaon Surat Pune Bhavnagar Manufacturing Locations Mumbai Liaison Offices IP Marketing Offices Regional Offices Area Offices Narmada Khedut Sahay Kendras (68 Kendr
Slide 19: Key Financials: Revenue Trend
Key Financials Revenue Trend 16% 6058 5196 5098 5170 4527 4988 4062 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Figures in ₹ Crore 18
Slide 20: Key Financials: Long-term Debt
Key Financials Long-term Debt 2180 2198 Only public sector company 1670 to have prepaid its long-term debt 888 0 FY14 FY15 FY16 FY17 FY18 Figures in ₹ Crore 19
Slide 21: Key Financials: Working Capital
Key Financials Working Capital 1675 1645 1422 1070 228 0 FY14 FY15 FY16 FY17 FY18 As on date Figures in ₹ Crore 20
Slide 22: Key Financials: Export Growth
Key Financials Export Growth 629 CAGR 49% 361 212 126 85 FY14 FY15 FY16 FY17 FY18 Figures in ₹ Crore 21
Slide 23: Key Financials: EBITDA
Key Financials EBITDA CAGR 1532 23% 1170 815 662 31 FY14 FY15 FY16 FY17 FY18 Figures in ₹ Crore 22
Slide 24: Key Financials: PBT
Key Financials PBT CAGR 1162 29% 715 424 268 -452 FY14 FY15 FY16 FY17 FY18 23 Figures in ₹ Crore
Slide 25: Key Financials: PAT
Key Financials PAT CAGR 790 28% 521 292 173 -452 FY14 FY15 FY16 FY17 FY18 24 Figures in ₹ Crore
Slide 26: Key Financials: EPS
Key Financials EPS CAGR 51 28% 34 19 11 -29 FY14 FY15 FY16 FY17 FY18 25 Figures in ₹
Slide 27: Market Performance
Market Performance Market Capitalization Growth comparison: Sensex , Nifty & GNFC 500% 10000 400% 8000 300% INR CRORES 6000 200% 100% 4000 0% 2000 -100% 2014-15 2015-16 2016-17 2017-18 0 BSE Sensex 25% 13% 32% 51% FY15 FY16 FY17 FY18 Nifty 27% 15% 37% 55% Market Cap 1054 1269 4468 8524 GNFC -13% 4%
Slide 28: Peer Comparison
Peer Comparison COMPARISON OF KEY METRICS FY-18 Major peers compared GNFC Vs Industry Avg. Company Name Initials Chambal Fertilisers& Chemicals Limited CFCL 27% 26% Coromandel International Limited CIL 22% 19% Deepak Fertilisers& Petrochemicals Deepak Corporation Limited 13% 13% Gujarat State Fertil
Slide 29: Peer Comparison
Peer Comparison OPBITDA/OI 25.60% 10.50% 11.20% 9.40% 8.90% 9% 9.10% 5.60% 7.10% 4.40% 3.20% GNFC CFCL NFL CIL NFCL ZACL RCF GSFC Deepak MCFL MFL PAT/OI 13.21% 6.44% 7.56% 6.07% 2.38% 2.78% 2.25% 0.89% 1.07% -0.54% -2.69% GNFC CFCL NFL CIL NFCL ZACL RCF GSFC Deepak MCFL MFL 28 Source: ICRA - June 18
Slide 30: Peer Comparison
Peer Comparison ROCE 22% 21% 10% 11% 10% 11% 10% 9% 7% 6% 4% 5% GNFC IFFCO CFCL NFL CIL NFCL ZACL RCF GSFC Deepak MCFL MFL Interest Coverage 15.4 12.9 6.2 7.2 4.1 5.2 3.1 3.6 1.2 1.3 2.2 0.7 GNFC IFFCO CFCL NFL CIL NFCL ZACL RCF GSFC Deepak MCFL MFL 29 Source: CRISIL - June 18
Slide 31: Peer Comparison
Peer Comparison Net Cash Accruals/Total Debt 464% 28% 17% 57% 13% 10% 10% 5% 6% 9% 7% -2% GNFC IFFCO CFCL NFL CIL NFCL ZACL RCF GSFC Deepak MCFL MFL Gearing Ratio 4.60 2.79 1.90 1.52 1.37 1.21 0.88 0.80 0.05 0.43 0.14 -3.06 GNFC IFFCO CFCL NFL CIL NFCL ZACL RCF GSFC Deepak MCFL MFL 30 Source: CRISIL
Slide 32: Highest Ever PBT recorded by any GoG Company
Highest Ever PBT recorded by any GoG Company 1162 Profit Before Tax (PBT) 1113 1011 904 750 FY18 641 FY12 FY18 FY13 354 FY18 272 FY15 FY13 167 FY17 FY17 GNFC GSFC GSPL GMDC GACL GGL GIPCL GSECL GUVNL 31
Slide 33: Foreign Portfolio Investors - Countrywise
Foreign Portfolio Investors - Countrywise UK (6) NETEHRLANDS (4) CANADA (5) IRELAND (10) DENMARK (1) LUXEMBORG (4) CHINA (1) USA (80) GERMANY (2) FRANCE (1) SOUTH KOREA (1) SWITZERLAND (4) BRUNEI (1) CAYMAN ISLANDS (1) SINGAPORE (7) NEW ZEALAND (1) MAURITIUS (11) As on 16-06-2018 AUSTRALIA (4) 32
Slide 34: Major Foreign Institutional Investors
Major Foreign Institutional Investors USA Mauritius • World Bank Pension Fund • Ishares Emsc Mauritius CO. • Florida Retirement System - Acadian Asset • Morgan Stanley Mauritius Company Limited. Management, Inc • Ishares Core Emerging Markets Mauritius Co. • Fidelity Puritan Trust • Kuber India Fund
Slide 35: Major Foreign Institutional Investors
Major Foreign Institutional Investors Netherlands Luxemborg • Stichting Shell Pensioenfonds • Wellington Management Funds (Luxembourg) Ii Sicav Wellington Alta Fund • Blue Sky Passive Equity Emerging Markets • Wmc Gem Systematic Equity Fund Global Fund • Ram (lux) systematic funds - emerging markets
Slide 36: Increase in FPIs
Increase in FPIs Foreign Portfolio Investors 160 144 140 Number of FPI’s 120 100 80 60 56 40 20 0 As on 30-09-2016 As on 16-06-2018 35
Slide 37: Business Restructuring in last few years
Business Restructuring in last few years Initiated bold, quick & effective measures for Safety, Operational Stability and Increase in Throughput for TDI-II Greenfield plant. As at FY18, the capacity utilization for the TDI-II plant stood at 93% as against 80% of average operating rates across the gl
Slide 38: Business Restructuring in last few years
Business Restructuring in last few years Facilitated fuel supply arrangement of coal from 4.27 lacs MT per annum to 9.12 lacs MT per annum. Facilitated Major negotiations for ensuring savings of more than INR 750 Crores over last 4 years. Enhanced domestic market share to 65% for TDI from around 32%
Slide 39: Expansion and Growth Plans
Expansion and Growth Plans Focusing on the core capabilities & existing strengths, the board has already approved expansion plans for these major chemicals TDI Revamp Acetic Acid Formic Acid Concentrated Di-Calcium Ammonia Nitric Acid Phosphate 38
Slide 40: The NEEM Project
The NEEM Project BACKGROUND In 2015, the Government of India made it mandatory to Neem coat 100% of Urea to prevent diversion Shri Narendra Modi, Prime Minister of India, announced this vision on August 15, 2015. 39
Slide 41: The ‘NEEM’ Project
The ‘NEEM’ Project GNFC created a transformative model of shared value creation through the ‘Neem Project’ The Neem Project http://gnfcneem.in/ • Mandatory 100% Neem coating of Urea directive from Government of India Trigger for change • Prominence of unorganized players in the Neem oil market • Sol
Slide 42: Cashless Initiative
Cashless Initiative PoS No. of Talukas Installed Covered In Gujarat 8000+ 243 # Farmers Fertilizer Bags Transaction Benefitted Purchased Worth 3,50,000 37.39 lakh INR 128.24 Crore # Non- # Organizational Organizational Transactions PM Transactions PM ~ 9000 ~ 40,000 41
Slide 43: Awards & Recognitions
Awards & Recognitions PORTER PRIZE- PORTER PRIZE- CNBC Awaaz CEO Award Cashless Initiative Neem Project - Outstanding Growth GOLDEN PEACOCK IBC Best Company CII ITC AWARD AWARD Sustainability Award GLOBAL CSR ABP NEWS INDIA CSR Dainik Bhaskar 42 AWARD AWARD AWARD Indian Pride Award
Slide 44: Thank You
THANK YOU Gujarat Narmada Valley Fertilizers & Chemicals Limited P.O.: Narmadanagar – 392 015. District: Bharuch, Gujarat, INDIA. Phone: +91 - 2642 - 247001, 247002 43
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