Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q1 FY2022 Earnings Presentation
29 slides from Meghmani Organics's earnings presentation, Aug 18, 2021
Slide 1: Exchange filing cover letter for Q1 FY22 investor presentation
MEGHMANIT vy ORGANICS LIMITED MeL (Formerly Known as Meghmani Organochem Limited) August 18, 2021 National Stock Exchange of India Limited | BSE Limited “Exchange Plaza”, Floor- 25, P J Tower, Bandra-Kurla Complex, Dalal Street, Bandra (East) Mumbai 400 051 Mumbai 400 001 SYMBOL:- MOL Scrip Code 543
Slide 2: Meghmani Organics Limited Q1 FY22 Results Presentation
Meghmani Organics Limited (Erstwhile known as Meghmani Organochem Limited) Q1 FY22 Results Presentation August 2021 www.meghmani.com
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 4: Discussion Summary Q1 FY22 Results Update
Discussion Summary Q1 FY22 RESULTS UPDATE 3
Slide 5: Q1 FY22: Result Highlights
Q1 FY22: Result Highlights Meghmani Organics continued to deliver strong results navigating multiple headwinds during Q1FY22. The Company’s revenue grew by 68.4% YoY to Rs. 4,957 million aided by robust growth from both the Pigments and Agrochemicals business. During the quarter, the Company’s Gross
Slide 6: Q1 FY22 Results: Key Highlights
Q1 FY22 Results: Key Highlights Q1 FY22 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin* 44.5% 44.0% 18.7% 17.6% 13.7% 4,957 9.7% 874 681 2,943 551 285 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 5
Slide 7: Q1 FY22 Results: Pigments Business
Q1 FY22 Results: Pigments Business Q1 FY22 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 57% 83% 77 % 85 % 600 16.8% 9,000 50.0% 15.1% 20.0% 8,000 6,844 0.0% 1,900 1,744 500 7,000 10.0% 1,700 400 -50.0% 6,000 4,743 -100.0% 1,500 300 264 0.
Slide 8: Q1 FY22 Results: Agrochemicals Business
Q1 FY22 Results: Agrochemicals Business Q1 FY22 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 71 % 81 % 84% 14,000 54% 100.0% 22.7% 12,000 1,200 21.9% 30.0% 9,465 50.0% 4,000 1,000 20.0% 10,000 3,500 3,213 704 0.0% 800 10.0% 8,000 3,000 6,
Slide 9: Q1 FY22 Results: Profit & Loss Statement
Q1 FY22 Results: Profit & Loss Statement Particulars (Rs. in Mn) Q1 FY22 Q1 FY21 YoY% Q4 FY21 QoQ% FY21 Revenue from Operations 4,957 2,943 68.4% 4,592 7.9% 16,234 COGS 2,775 1,635 69.7% 2,782 -0.3% 8,975 Gross Profit 2,182 1,308 66.8% 1,810 20.6% 7,260 Gross Margins % 44.0% 44.5% -43 bps 39.4% 461
Slide 10: Balance Sheet Statement
Balance Sheet Statement Particulars (Rs. in Mn) Mar 21 *Mar 20 Particulars (Rs. in Mn) Mar 21 *Mar 20 Equity & Liabilities Assets Share Capital 254 254 Property, Plant & Equipment 6,286 4,646 Reserves & Surplus 11,418 9,654 Capital WIP 1,059 964 Shareholder's Funds 11,673 9,908 Intangible Assets 111
Slide 11: About Us
CHEMISTRY OF SUC ABOUT US
Slide 12: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals • Started in 1986 • Started in 1995 • Amongst top 3 global Phthalocyanine based pigment • Among Top 10 producers of pesticides in India players • Products across entire value chain • 14% global market share • FY21 R
Slide 13: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 14: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Strong & lean Balance Sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 8.0% 01 04 • ROCE – 9.6% in FY17 to 17.1% in FY21 over FY17-21, with higher contribution • ROE – 6.8%
Slide 15: Key Milestones
Key Milestones Commissioned 2 New Plants in Agro Division: - Doubling the capacity of 2,4-D to 21,600 TPA 2020 - 21 - New Formulation Plant Setting up new Multipurpose Plant (New Molecules) Independent listing of Chloro-Alkalies & Derivatives business to unlock share holder value & Delisting f
Slide 16: Business Overview
MeL CHEMISTRY OF SUCCESS AT WORK
Slide 17: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with Total Capacity – 33,180 TPA 14% global market share & amongst top 3 (capacity wise) global pigments players Location Capacity Pr
Slide 18: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) Net Sales & Exports* (Rs Mn) 68 % 79 % 81 % 77 % 78 % 35,000 6,048 6,406 5,877 5,784 30,000 25,982 25,226 25,694 25,349 6,100 5,242 5,100 25,000 20,194 4,100 20,000 3,100 2,100 15,000 1,100 10,000 100 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY2
Slide 19: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 50.0 43.0 • Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 35.0 pigments
Slide 20: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Used for captive consumption • Established global presence across Africa, Brazil, LatAm, US and Europe Pesticide Intermediates • Strong pan-In
Slide 21: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) 30,000 27,898 646 680 581 567 616 25,000 18,431 18,666 18,145 370 20,000 16,219 348 356 354 307 15,000 10,000 260 268 290 310 5,000 227 0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Exports CIB (India) Net Sales an
Slide 22: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 65 Bn by 2020 58.7 • Key drivers - growing population, declining arable land & rising pest 51.2 1.7
Slide 23: Strategy & Outlook
STRATEGY & OUTLOOK @® os
Slide 24: Roadmap for achieving 20%+ top-line growth in next 3 years
Roadmap for achieving 20% + top-line growth in next 3 years • Among Top 3 producer of phthalocyanine pigments globally • Continue to focus on increasing domestic presence and capture market share Pigments • Expanding into new geographies • Diversification into new and lucrative pigment beyond phthal
Slide 25: Agrochemicals: Capex Plan
Agrochemicals: Capex Plan Capex Expected date of Expected Revenue Project (Rs mn) Completion (Rs mn) 2,4-D 1,270 Commissioned 2,000 (Capacity – 10.8k TPA) Formulation Plant 250 Commissioned 1,500 Multi Purpose Plant 3,100 Q2 FY23 6,000 (New Molecules) Total 4,620 9,500 24
Slide 26: Financial Overview
FINANCIAL OVERVIEW 25
Slide 27: Financial Snapshot
Financial Snapshot Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 8% * CAGR 16% * CAGR 35% 11.4% 12.0% 11.9% 42.1% 42.5% 44.7% 17.2% 38.0% 16.5% 36.2% 13.6% 14.5% 6.2% 1,850 11.9% 1,921 2,799 4.0% 1,687 16,247 16,234 2,323 2,363 12,605 14,104 11,175 1,712 1,332 769 415
Slide 28: Financial Snapshot
Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 130 106 112 115 113 0.56 0.60 0.39 0.27 0.23 82 74 81 65 77 6,977 9,908 11,673 6,329 8,380 103 89 85 92 92 3,533 4,170 3,265 2,639 2,630 -55 -48 -50 -51 -60 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Debt Equity D/E Receiva
Slide 29: For Further Queries
For Further Queries: Gurjant Singh Chahal, CFO Bharat Mody, IR Advisor Hiral Keniya / Vikash Verma, IR Consultants Email: ir@meghmani.com Email: ir@meghmani.com Contact: 90296 62801 / 96640 09029 Phone: +91-79717 61000 Phone: 98980 46584 Email: meghmani@dickensonworld.com