Mangalam Organics Ltd · NSE:MANORG
Mangalam Organics — Q2 FY2023 Earnings Presentation
44 slides from Mangalam Organics's earnings presentation, Nov 12, 2022
Slide 1: Exchange filing letter: Investor Presentation for quarter ended September 30, 2022
Registered Office / Factory : Village Kumbhivali, Savroli-Kharpada Road, Khalapur-410 202, Dist. Raigad (Maharashtra) Tel. 02192 - 276140 Date: November 12, 2022 BSE Limited The National Stock Exchange of India Limited Listing & Compliance Department Listing & Compliance Department Phiroze Jeejeebho
Slide 2: Investor Presentation – November 2022
Investor Presentation – November 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Mangalam Organics 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 sec
Slide 4: Company Overview
Company Overview
Slide 5: Business Overview
Business Overview Who Our Our wide We Are Legacy Footprint Mangalam Organics Limited is a Our operations are led by an Turpentine, our principal raw pioneer in the field of pine experienced management team, material to manufacture chemistry. It is a leading with over five decades of Camphor, is proc
Slide 6: Our Journey
Our Journey Business-to-Business Business-to-Consumer Brand Product Brand Trading Manufacturing Expansion Listing Diversification Listing Expansion Establishment Portfolio Strengthening 1946 1949 1988 1994 2007 2013 2017 2020 2021 2022 Late Ramgopal Late Ramgopal Facility built for Facility built fo
Slide 7: Our Business Segments
Our Business Segments B2B - Terpene Revenue break-up • Camphor: Religious use, healthcare products, hygiene products 80% • Dipentene: Paints, cleaning and degreasing agents • Sodium Acetate: Textile and dyes industry, Leather tanning • Isobornyl Acetate: Fragrance and flavor Terpene • Isoborneol: Fr
Slide 8: Our Business Model
Our Business Model Chemistry B2C Retailing Competitive Cost Capabilities Expertise Edge Advantage 1. In our Terpene operations, continuing focus on yields, time cycle, energy conservation and quality of the products has enabled us to maintain our sales volume and profitability. 2. Through our Resin
Slide 9: Our Product Portfolio – B2B
Our Product Portfolio – B2B Business-to-Business Terpene Synthetic Resin Camphor| Dipentene | Sodium Acetate Terpene Phenolic Resin | Alkyl Phenolic Resin | Rosin Esters 8
Slide 10: Our Product Portfolio – B2C
Our Product Portfolio – B2C Business-to-Consumer CamPure - Homecare and personal care products based on Camphor Mangalam - Camphor tablets for pious uses Private Labelling Initiatives 9
Slide 11: Our Key Clientele
Our Key Clientele Terpene Operations Synthetic Resin Operations Retail Operations 10
Slide 12: Financials
Financials
Slide 13: FY22 Consolidated Financial Performance
FY22 Consolidated Financial Performance Revenues (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +45% -29% -37% 490.6 127.8 84.6 338.2 91.0 53.7 FY21 FY22 FY21 FY22 FY21 FY22 EBITDA Margin (%) PAT Margin (%) • Revenue growth of 45% in FY22 vs FY21. 1930 bps 1410 bps • Increase in input costs lead to declin
Slide 14: YOY FY23 Consolidated Financial Performance
YOY FY23 Consolidated Financial Performance Revenues (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +7.85% -163.82% -195.92% 154.3 22.3 143.1 34.3 -21.9 -21.4 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 EBITDA Margin (%) PAT Margin (%) • Revenue growth of 7.85 % in Q2 FY23 vs Q2 FY22. 3820 bps 2947 bp
Slide 15: Q2 FY23 Consolidated Profit & Loss Statement
Q2 FY23 Consolidated Profit & Loss Statement Particulars (Rs. Crs) Q2 FY23 Q2 FY22 Y-o-Y (%) Q1 FY23 Q-O-Q FY22 FY21 Y-o-Y (%) Revenue from Operations 154.28 143.05 7.85 104.38 47.81 490.60 338.20 45.06 Cost of Materials Consumed 118.10 85.69 37.82 122.10 284.30 147.10 Purchase of stock in trade 0.4
Slide 16: Notes
Notes 1. The company has incurred losses mainly on account of inadequate recovery from sales using previously purchased high-cost raw materials and sharp fall in camphor prices. The company has absorbed most of the old inventory and a more normal cycle of raw material and sales price is expected in
Slide 17: Profit & Loss Statement (Audited)
Profit & Loss Statement (Audited) Particulars (Rs. Crs) FY22 FY21 FY20 FY19 Revenue from Operations 490.6 338.2 374.5 424.6 Cost of Materials Consumed 284.3 147.1 209.7 249.4 Purchase of stock in trade 5.2 3.9 4.0 4.0 Changes in Inventories of finished goods, work in progress and stock-in trade -12.
Slide 18: Consolidated Balance Sheet (Audited)
Consolidated Balance Sheet (Audited) Equity & Liabilities (Rs. Crs) Mar-22 Mar-21 Assets (Rs. Crs) Mar-22 Mar-21 Equity Share Capital 8.6 8.6 Property, plant and equipment 198.0 120.6 Other Equity 295.5 243.1 Capital Work-in-Progress 7.7 Total Equity 304.1 251.7 Financial Assets Financial liabilitie
Slide 19: Cash Flow Statement (Audited)
Cash Flow Statement (Audited) Particulars (Rs. Crs) FY22 FY21 FY20 Profit before Tax 73.1 114.1 62.9 Operating Profit before Working Capital Changes 91.9 128.0 77.1 Changes in Working Capital -153.2 -72.1 33.3 Cash Generated from Operations -61.3 55.8 110.4 Direct Taxes paid (net of refund) 21.8 29.
Slide 20: Performance in Charts (Audited)
Performance in Charts (Audited) Revenues (Rs. Crs) EBITDA (Rs. Crs) PAT (Rs. Crs) +5% -6% -9% 490.6 424.6 127.8 84.6 374.5 108.6 72.4 338.2 86.3 91.0 53.7 47.6 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Earnings Per Share (in Rs) EBITDA Margins (%) PAT Margins (%) 98.8 37.8% 25.0% 8
Slide 21: Capital Disciplined Growth (Audited)
Capital Disciplined Growth (Audited) RoCE* (%) RoE# (%) Net Debt to Equity (x) 76.7% 79.6% 0.69 0.65 54.2% 44.0% 0.41 40.5% 33.1% 26.4% 27.7% 21.3% 20.6% 0.10 0.10 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Cash Flow from Operations (Rs.
Slide 22: Transformation from B2B to B2C
Transformation from B2B to B2C
Slide 23: Mangalam – Brand to reckon with
Mangalam – Brand to reckon with Why Camphor? As written in our Holy books, Pure Camphor symbolises union with God as it burns completely, leaving behind no trace. Pure Camphor dispels negativity, keeps one healthy and attracts prosperity. Significance of the Camphor Flame Camphor flame inspires the
Slide 24: Mangalam over the last year (Brand strengthening)
Mangalam over the last year (Brand strengthening) 23
Slide 25: CamPure - Homecare and personal care products with the goodness of camphor
CamPure - Homecare and personal care products with the goodness of camphor CamPure CamPure A creation with a rich history and Cone vibrant future an organic product made from the extract of the pine tree. While in the Indian domestic market, CamPure Camphor is widely used for religious Sticks purpos
Slide 26: CamPure over the last year (Brand Strengthening)
CamPure over the last year (Brand Strengthening) 25
Slide 27: Reviews For Our Products
Reviews For Our Products Mangalam ae CamPure 100% Organic Air Freshener Preserves fabric mosquito © @ (& NZ os 100% Organic fragrance Elevates mood Cas) ¥E.¥ Mangalam camPure ‘camphor Handwash Mangalam camPure Camphor Power Mangalam CamPure CCamphor Soap - Saft & oa Buy CComPure 100% Organic Mangala
Slide 28: Our Bestsellers Products on Amazon
Our Bestsellers Products on Amazon 27
Slide 29: Social Media Presence
Social Media Presence Mangalam Organics Limited @) Native Audio Spot
Slide 30: Television Commercial
Television Commercial To watch – Click here To watch – Click here To watch – Click here To watch – Click here To watch – Click here To watch – Click here 29
Slide 31: Future Strategy
Future Strategy
Slide 32: 1. B2B – Unlocking the Value of Intermediates
1. B2B – Unlocking the Value of Intermediates Our endeavour to unlock the saleable value of intermediates and improve the quality of Terpineol Camphor is on track. This will enable us to reduce our dependence on market dynamics Iso Bornyl Alpha Campholenic of a single product, “Camphor” and a single
Slide 33: 2. B2B – Synthetic Resins – Niche Approach
2. B2B – Synthetic Resins – Niche Approach Bespoke and Niche Approach Terpene Phenolic Resin Alkyl Phenolic Resin Rosin Modified Resins • Increase range of terpene phenols to • Understand customer pain points and • Explore opportunities of import cater wide needs of customers in provide tailormade p
Slide 34: 3. B2C – Future Growth Strategy
3. B2C – Future Growth Strategy Expansion in Product Expansion in Portfolio 1 2 Geographical Reach Introduction of new products for the Increase the distribution strength from retail markets to increase our market current 60 salesmen to 150 salesmen in one share year thereby increase penetration to
Slide 35: 4. B2C – Target retail market with e-Commerce
4. B2C – Target retail market with e-Commerce Pin Codes serviced from e-Commerce orders 12,000 + 9,000 3,700 2,500 FY19 FY20 FY21 FY22 34
Slide 36: Corporate Social Responsibility
Corporate Social Responsibility Renovation of Healthcare Centre Renovation of School Investor Presentation 35
Slide 37: Manufacturing Facility
Manufacturing Facility
Slide 38: Our Manufacturing Facilities
Our Manufacturing Facilities PRODUCTION FACILITY Our plant is located on the Mumbai – Pune expressway in Kumbhivali. 37
Slide 39: Our Manufacturing Facilities
Our Manufacturing Facilities 38
Slide 40: Our Sales Network
Our Sales Network Manufacturing Plant Head Office Warehouse & Marketing Office Marketing Office PAN India Presence With Growing Export Footprints Note : Map not to scale. For illustrative purpose only. 39
Slide 41: Key Management Team
Key Management Team
Slide 42: Our Board of Directors
Our Board of Directors Mr. Kamalkumar Dujodwala (Chairman) Mr. Shree Narayan Baheti (Independent Director) A Graduate in Science along with training at National Chemical Laboratory, Mr. Kamalkumar Mr. Shree Narayan Baheti is holding a degree in B.E. (Electricals) from College of Engineering and Dujo
Slide 43: Our Management Team
Our Management Team Mr. Sanjay Bhardwaj – Chief Executive Officer Sanjay Bhardwaj is a qualified Chartered Accountant. He has been working with the Company in various capacities and departments since last 27 years i.e. from 1st November, 1994 to present. He has successfully handled various portfolio
Slide 44: Ms. Shachi Sanghavi
Mangalam Organics Limited Ms. Shachi Sanghavi +91 22 4920 4089 cs@mangalamorganics.com www.mangalamorganics.com CIN: L24110MH1981PLC024742