Basf India Limited · NSE:BASF
Basf India — Investor Presentation (August 2020)
25 slides from Basf India's investor presentation, Aug 24, 2020
Slide 1: Analyst Meet
Analyst Meet Narayan Krishnamohan Managing Director, BASF India Limited Narendranath J. Baliga Chief Financial Officer, BASF India Limited Mumbai, 24.08.2020
Slide 2: Forward looking statements Cautionary Note
Forward looking statements Only matters in the public domain can be subject matter of discussion in this meeting As a matter of policy, we do not provide any forecast about Cautionary the future business situation Note We do not comment or give guidance on future results or business outlook
Slide 3: We remain committed to EHS and Sustainability
We remain committed to EHS and Sustainability
Slide 4: Driving high standards in EHS & Sustainability on all fronts
Driving high standards in EHS & Sustainability on all fronts Emphasis on EHS Standards Reinforcing Sustainability Quotient Internal Focus Global Safety Days Reduce, Reuse, Recycle 161 activities in India across sites & offices Enhanced water storage & saving capacities at Dahej & Mangalore sites Agr
Slide 5: FY19-20: a challenging year with economic slowdown, declining GDP
FY19-20: a challenging year with economic slowdown, declining GDP COVID-19 further dents growth. June, July 2020 show revival signs amid easing of lockdown India GDP 6.1% ~ 6% 4.2% FY 21-22 FY 18-19 FY 19-20 IMF Forecast ~ -4.5 % FY 20-21 IMF Forecast Manufacturing growth Auto Agriculture 6.9% ■ Sal
Slide 6: Despite challenges, our diverse portfolio and customer focused projects enabled profitable growth
Despite challenges, our diverse portfolio and customer focused projects enabled profitable growth during FY 2019-20
Slide 7: Expanding production capacity at our sites
Expanding production capacity at our sites Focus on safety and driving efficiencies continued Digitalization for cost savings, increasing production & efficiency Dahej- Cellasto plant Mangalore- Coatings plant Expansion of Cellasto® manufacturing Doubling production capacity of Polymer capacity
Slide 8: We continue to optimize our business portfolio to strengthen competitiveness
We continue to optimize our business portfolio to strengthen competitiveness Acquisition of BASF Performance Polyamides Divestiture of OBA & Construction Chemicals business Complementary product portfolio, well known Technyl® brand Divestiture of stilbene based Optical Brightening Agents to Arch
Slide 9: Driving customer collaboration @Creation Center inaugurated in May 2019
Creation Center launched in May 2019 Driving customer collaboration @Creation Center inaugurated in May 2019 >40 customers visited Engaged in >50 topics
Slide 10: Technology driving efforts to enhance processes & customer outreach
Technology driving efforts to enhance processes & customer outreach Successful roll out of Net Promoter Score (NPS) Implementing digital channels across businesses NPS enables feedback, suggestions from customers to address ~3.4 lac followers on BASF Agricultural Solutions Facebook page. pain po
Slide 11: Segment Revenue breakup
Segment Revenue breakup FY 2019-20 (Rs. in million) Agricultural Solutions Chemicals 11,140 (15%) 10,160 (14%) Agricultural Materials Industrial Solutions Performance Materials Solutions Nutrition & Care 14,651 (20%) Monomers Dispersions Performance Chemicals Materials 16,923 (23%) Surface Nutrition
Slide 12: Segmental performance
Segmental performance FY 2019-20 Revenue Results Rs. in million Rs. in million +19% -7% Good growth with diversified portfolio, above 11,140 662 612 normal monsoon 9,333 Agricultural Solutions Profitability marginally impacted by higher input costs 18-19 19-20 18-19 19-20 +3% +57% Modest growt
Slide 13: Segmental performance
Segmental performance FY 2019-20 Revenue Results Rs. in million Rs. in million +4% +1% Increase in revenue driven by capacity expansion 11,479 11,919 526 532 at Dahej, right product mix & merchandize volumes Industrial Solutions Profitability maintained despite high volatility in 18-19 19-20 18-
Slide 14: Segmental performance
Segmental performance FY 2019-20 Revenue Results Rs. in million Rs. in million +93% +31% Higher volumes from merchandize business 14,651 driving sales growth Nutrition & Care 7,581 Improvement in EBIT due to better pricing -214 strategy -312 18-19 19-20 18-19 19-20 >+100% +62% Petrochemicals w
Slide 15: We achieved strong profitable growth in FY 2019-20
We achieved strong profitable growth in FY 2019-20 In Rs. million Revenue EBIT bEI PBT bEI > +100% > +100% +25% 75,511 1,205 371 60,257 309 -542 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 Shift from agency to merchandise business also added to topline growth Profitable growth driven by strong f
Slide 16: Improvement in key ratios: FY 2019-20
Improvement in key ratios: FY 2019-20 Current Ratio Debt/ Equity RoCE 1.3 0.6 5.9% 1.2 0.5 1.3% 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 Control on working capital with stringent monitoring Borrowings reduced to Rs.6,630 million (PY: Rs.9,122 million) Operational cash flow increased by
Slide 17: Q1 FY 20-21
Q1 FY 20-21
Slide 18: COVID-19 pandemic: focus on employee safety and customer collaboration
COVID-19 pandemic We remain focused on employee safety and active customer collaboration in a challenging business environment
Slide 19: Ensuring safe start up and enhanced safety measures for our employees
Ensuring safe start up and enhanced safety measures for our employees Temperature screening, Phased wise approach Download Aarogya Setu Employee Health & masks, sanitization, to resuming office mobile app Safety survey social distancing, etc.
Slide 20: COVID-19: A challenging Q1/FY21
COVID-19: A challenging Q1/FY21 Sluggish demand in key sectors- auto, construction, consumer etc. Credit Risk management Liquidity management Supply Chain – high cost, delayed clearance Labor availability Restricted business environment
Slide 21: Business performance: Q1 results (Apr–Jun'20)
BASF India Limited In Rs. million Business performance: Q1 results (Apr–Jun’20) Revenue PBT before exceptional items 20,000 18,486 17,697 400 295 16,138 200 176 10,000 0 -200 -400 0 -378 Jun’19 Mar’20 Jun’20 Jun’19 Mar’20 Jun’20 Positive growth for Agro, Nutrition & Care segments Trend Slowdow
Slide 22: Business performance: Q1 results - Revenue development by segment
BASF India Limited In Rs. million Business performance: Q1 results (Apr–Jun’20) Revenue development by segment Main customer industries: Automotive, Consumer Durables and Construction 1,953 2,436 606 3,265 1,102 414 17,697 16,138 899 Total Sales Agricultural Nutrition Chemicals Materials Industrial
Slide 23: Business performance: Q1 results - Results development by segment
BASF India Limited In Rs. million Business performance: Q1 results (Apr–Jun’20) Results development by segment Main customer industries: Automotive, Consumer Durables and Construction 55 64 385 240 417 232 421 6 -256 Total Agricultural Nutrition Chemicals Materials Industrial Surface Others & Total
Slide 24: FY 20-21 – Overcoming challenges in an uncertain environment
FY 20-21 – Overcoming challenges in an uncertain environment Uncertain external Growth hurdles Business Challenges environment Sluggish demand in key sectors Credit risk management COVID-19 Scenario – auto, construction, consumer Supply Chain: higher costs, Geopolitical tension Restricti
Slide 25: BASF - We create chemistry
O- BASF We create chemistry