National Fertilizers Ltd. · NSE:NFL
National Fertilizers — Q1 2018 Earnings Presentation
26 slides from National Fertilizers's earnings presentation, June 2017
Slide 1: Financial Performance for the Quarter June 2017
FINANCIAL PERFORMANCE FOR THE QUARTER JUNE 2017 1
Slide 2: 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 After Revamp – 35.68 LMT 10.662 9.999 5.115 5.115 4.785 Capacity utilization (2017-18 1st Qtr) w.r.t. RAC 138.6% 109.1% 95.8% 112.4% 114.9%
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Urea production of 9.39 LMT (capacity utilization of 116% of RAC) during the quarter as compared to 8.75 Lakh MT (capacity utilization of 108% of RAC) during CPLY#. Urea sale of 9.65 Lakh MT during the quarter as compared to 7.55 Lakh MT during CPLY i.e. increase of 2.10 L
Slide 4: Production of Urea
PRODUCTION OF UREA Lakh MT April-June 2017 CPLY Variance Unit with CPLY Actual MOU target Actual Nangal 1.37 1.41 1.06 0.31 Panipat 1.44 1.14 1.20 0.24 Bathinda 1.23 1.44 1.42 (0.19) Vijaipur I 2.36 2.38 2.63 (0.27) Vijaipur II 2.99 3.01 2.44 0.55 Total 9.39 9.38 8.75 0.64 Production of urea durin
Slide 5: On-Stream Days
ON-STREAM DAYS Units Apr-June 2017 CPLY Nangal 84 67 Panipat 88 76 Bathinda 76 89 Vijaipur-I 79 87 Vijaipur-II 90 74 5
Slide 6: Energy Consumption (Gcal/MT of Urea)
ENERGY CONSUMPTION (GCAL/MT OF UREA) Energy Norms Actual Energy Units under NUP-2015 Apr-June 2017 CPLY Nangal 7.095 6.931 7.380 Panipat 7.614 6.917 7.288 Bathinda 7.479 7.159 6.929 Vijaipur-I 5.904 5.853 5.770 Vijaipur-II 5.569 5.381 5.422 1. Energy consumption during current quarter was lower than
Slide 7: Production of Industrial Products & Bio-Fertilizers
PRODUCTION OF INDUSTRIAL PRODUCTS (with one stream in operation) & BIO-FERTILIZERS QTY IN MT April- Increase / Sr. Products June CPLY (Decrease No. 2017 ) 1 Nitric Acid 20145 19463 682 2 Ammonium Nitrate (Melts)* 2500 609 1891 3 Sodium Nitrate/ Nitrite 836 866 (30) 4 Bio-Fertilizers 62 53 9 * The ra
Slide 8: Purchase of Other Fertilizers etc.
PURCHASE OF OTHER FERTILIZERS ETC. April-June Increase/ Particulars Unit CPLY 2017 (Decrease) DAP * MT 97700 50082 47618 MOP @ MT 27487 - 27487 APS # MT 27005 - 27005 BS $ MT - 1000 (1000) Compost MT 2194 - 2194 Agro Chemicals Nos. 327255 - 327255 Seeds Qtls. 466 2520 (2054) * Diammonium Phosphate @
Slide 9: Sale of Urea
SALE OF UREA (LAKH MT) Actual Increase/ Zonal Offices CPLY April-June 17 (Decrease) Chandigarh Zone 4.61 2.91 1.70 Bhopal Zone 2.27 2.26 0.01 Lucknow Zone 2.77 2.38 0.39 TOTAL 9.65 7.55 2.10 9
Slide 10: Urea Stock
UREA STOCK (LAKH MT) As on As on As on Unit 30.06.2017 31.03.2017 30.06.2016 Silo 1.08 1.24 1.53 MIT 0.40 0.48 0.49 Warehouse 0.73 0.74 1.12 Total stock 2.21 2.46 3.14 Details of Silo stock Nangal 0.03 0.04 0.24 Panipat 0.03 0.19 0.13 Bathinda 0.06 0.21 0.25 Vijaipur I 0.49 0.35 0.46 Vijaipur II 0.4
Slide 11: Sales
SALES ` Crore Qtr. Increase / (decrease) Particulars CPLY June 2017 ` Crore % Sale quantity of urea (LMT) 9.65 7.55 2.10 (LMT) 28 Sale quantity of DAP (LMT) 0.16 - 0.16 (LMT) Gross Sales of Urea 1768.30 1291.50 476.80 37 Sale of Traded Goods (Breakup 58.02 27.88 30.14 108 in Slide 12) Sale of Indust
Slide 12: Sale of Traded Goods
Sale of Traded Goods Qtr. ended June-17 CPLY Increase/ (Decrease) Particulars Value Value Qty. Qty. with CPLY (` Crore) (` Crore) (` Crore) DAP (MT) 16162 49.14 - 3.85 45.29 MOP (MT) 3246 6.59 - 0.00 6.59 Seeds (Quintals) - - 2520 0.93 (0.93) Compost (MT) 1919 0.77 - - 0.77 Agro Chemicals (Nos.) 101
Slide 13: Sale of Industrial Products
Sale of Industrial Products Qtr. ended June-17 CPLY Increase/ Increase/ (Decrease) (Decrease) Particulars Value Value with CPLY Qty. Qty. with CPLY (` Crore) (` Crore) Qty/Value (` Crore) % (3)/ Nitric Acid (MT) 17874 39.96 18456 51.07 (11.11) (22) Ammonium Nitrate 321/ 2494 5.67 592 1.47 4.20 (MT)
Slide 14: Overall Performance
OVERALL PERFORMANCE ` Crore Increase / Qtr. Particulars CPLY (Decrease) June 2017 ` Crore % Gross Sales 1875.79 1375.11 500.68 36 Total Expenses 1789.36 1289.65 499.71 39 Earnings before interest, depreciation and 86.43 85.46 0.97 1 tax (EBITDA) Less : Other Income 7.79 10.56 (2.77) (26) Less : Fina
Slide 15: Details of Expenses
Details of Expenses Increase/ Remarks Particulars Qtr. June 17 CPLY (Decrease) Production of urea (LMT) 9.39 8.75 0.64 Production increased by 7%. Dispatches of urea (LMT) 9.55 8.17 1.38 Dispatches increased by 17%. (` Crore) (` Crore) (` Crore) Cost of Materials 767.27 619.36 147.91 Mainly increase
Slide 16: Finance Cost
FINANCE COST ` Crore Quarter Increase/ Particulars CPLY June 2017 (Decrease) Interest on Long Term Loans 2.57 3.96 (1.39) Interest on working capital Loans 35.20 64.35 (29.15) Other borrowing costs 2.68 2.89 (0.21) Total finance cost 40.45 71.20 (30.75) Less: Interest earned on deposits 0.70 3.24 (2
Slide 17: Analysis of Interest on Working Capital Loan
Analysis of Interest on Working Capital Loan Saving/ Particulars Qtr. June 17 CPLY (Increase) Average credit utilization (` crore) 2258.40 3325.18 1066.78 Average rate of interest 6.23% 7.74% 1.51% Interest on working capital loans (` crore) 35.20 64.35 29.15 Rate variance ` crore 8.51 Mix and Volum
Slide 18: Steps Taken to Reduce Finance Cost
STEPS TAKEN TO REDUCE FINANCE COST NFL negotiated with many Banks for lower interest rates for short term fund requirements. MIBOR Linked, CD rate linked and REPO rate linked STL availed with interest rate lower than MCLR linked loans. Short term borrowings through Inter Corporate Deposit (ICD
Slide 19: Financial Performance
FINANCIAL PERFORMANCE Company has earned profit before tax of ` 39.66 crore during the quarter 30th June, 2017 as against profit before tax of ` 1.01 crore during CPLY i.e. increase in profit by ` 38.65 crore. The profit before tax has increased mainly due to higher production and sale of urea, lowe
Slide 20: Interest Coverage Ratio
INTEREST COVERAGE RATIO Qtr. ended Particulars Unit CPLY June-17 EBITDA ` crore 94.22 96.02 Finance Cost ` crore 40.45 71.20 Loan Repayment ` crore 6.27 6.27 Interest Coverage Ratio Times 2.33 1.35 Debt Service Coverage Ratio Times 2.00 1.20 Interest Coverage Ratio has increased from 1.35 times du
Slide 21: Debt to Equity Ratio
DEBT TO EQUITY RATIO ` Crore S. As on Particulars CPLY No. 30th June 2017 1 Long term Borrowings 784.93 1644.56 2 Short term Borrowings 2818.09 2552.13 3 Total Borrowings 3603.02 4196.69 Borrowings pertaining to AFCP (Urea) 4 558.53 1303.60 excluded being reimbursed by GoI 5 Net Borrowings 3044.49 2
Slide 22: Key Financial Indicators
KEY FINANCIAL INDICATORS ` Crore S. Particulars Qtr. June 17 CPLY No. 1 Gross Sales (including subsidy) 1875.79 1375.11 2 EBDITA 94.22 96.02 3 Profit Before Tax 39.66 1.01 4 Profit After Tax 25.87 0.24 5 Total Comprehensive Income 25.50 (1.36) 6 Net Worth 1852.14 1713.53 7 Debt (for D:E ratio calcul
Slide 23: Key Financial Ratios
KEY FINANCIAL RATIOS S. Qtr. June Particulars CPLY No. 2017 1 Earning Per Share (` 10/- each) 0.53 0.005 2 Earning Per Share (` 10/- each) 0.52 (0.03) (after considering OCI) 3 Return (Total Comprehensive Income) on Net Worth 1.38 (0.08) 4 Return (Total Comprehensive Income) on Average Net 1.39 (0.0
Slide 24: Major Capex in Pipeline
MAJOR CAPEX IN PIPELINE RFCL JV of NFL, EIL and FCIL - NFL Equity contribution is ` 342 crore. (Detail in slide 25). 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 saving projects at Nangal, Bathinda
Slide 25: 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%. Zero Date - 25th September 2015 Project time schedule – 36 months from zero date Project Capital Cost - ` 5254 crore Debt Equity of 75 : 25
Slide 26: Thank You
THANK YOU 26