Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Q3 FY19 Earnings Presentation
33 slides from Aksharchem India's earnings presentation, Feb 7, 2019
Slide 1: Investor Presentation - February 2019 (exchange cover letter)
® AksharChem Ref: AKSHAR/SE/2018-19/1902/52 February 7, 2019 To, To, Deputy General Manager The Gene al Manager (Listing) Department of Corporate Services Natio I Stock Exchange of India Ltd. BSE Limited 5th oor, Exchange Plaza, 25 th Floor, P. J. Towers andra Kurla Complex, Dalal Street Bandra (Eas
Slide 2: AksharChem (India) Limited Investor Presentation - February 2019
AksharChem (India) Limited Investor Presentation - February 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (India) 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 se
Slide 4: Result Update
AksharChem . Result Update
Slide 5: Result Highlights
Result Highlights Total Volume (MT) +4% +10% 2,355 6,919 2,255 6,268 1,843 +28% Q3 FY18 Q2 FY19 Q3 FY19 9M FY18 9M FY19 Our product demand is intact so our business continues to grow on volume basis making it more sustainable 4
Slide 6: Profit & Loss Statement - Q3 FY19
Profit & Loss Statement* - Q3 FY19 Particulars (In Crs.) Q3 FY19 Q3 FY18 Y-o-Y Comments Net Revenue from Operations 82.0 58.8 39% Raw Material 56.7 34.4 • Revenue growth on the back of high volumes and better realizations Employee Expenses 2.3 2.7 • Impact on margins was due : Other Expenses 17.9 12
Slide 7: Profit & Loss Statement - 9M FY19
Profit & Loss Statement* - 9M FY19 Particulars (In Crs.) 9M FY19 9M FY18 FY18 Net Revenue from Operations 242.8 187.7 264.3 Raw Material 153.5 112.0 160.3 Employee Expenses 6.9 5.7 8.4 Other Expenses 53.3 38.0 54.0 EBITDA 29.1 32.0 41.6 EBITDA % 12.0% 17.1% 15.7% Other Income 3.3 6.9 7.1 Depreciatio
Slide 8: Balance Sheet
Balance Sheet* Assets (In Crs.) Sep-18 Mar-18 Equity & Liabilities (In Crs.) Sep-18 Mar-18 Property, Plant & Equipment 100.5 86.0 Share Capital 8.2 8.2 Capital Work-in-Progress 44.8 25.8 Other Equity - Reserve 240.4 229.5 Other Intangible Assets 0.1 0.1 Intangible Assets under Development 0.2 0.2 To
Slide 9: From the Chairperson's Desk
From the Chairperson’s Desk At AksharChem, we believe growth is the only constant in dynamic business environment. Innovation is our heritage, the foundation on which our Company is built. Our efforts focus on continuous improvement in products and processes. Our products comply with all internation
Slide 10: Update on Capex
AksharChem . Update on Capex
Slide 11: Capacity Utilisation
Capacity Utilisation Installed Capacity Production Capacity Utilisation 11,400* 100 94% 90 9,720 9,720 87% 9,240 9,240 80% 80% 80 75% 74% 8,441 70 7,800 7,786 7,428 6,881 7,096 60 6,000 5,838 5,642 50 40 30 20 10 0 FY13 FY14 FY15 FY16 FY17 FY18 9M FY19 * Total Capacity available for the full year 10
Slide 12: Expansion Plan
Expansion Plan Existing Capacity Additional Capacity Post Expansion Capacity Proposed Projects (In TPA) (In TPA) (In TPA) ORGANIC PIGMENTS CPC Green 1,920 480 2,400 DYES & INTERMEDIATES H Acid - 1,200 1,200 SPECIALTY CHEMICALS Precipitated Silica - 10,000 10,000 11
Slide 13: Company Overview
AksharChem . Company Overview
Slide 14: We Have Developed The EDGE
We Have Developed The EDGE Largest exporter of VINYL SULPHONE in India with ~ 45% share in exports of this product 31% Revenue CAGR FY12-18 61% Net Worth CAGR FY12-18 85% Exports FY17-18 One of the largest exporters from India and among the largest players globally for CPC GREEN PIGMENT with a globa
Slide 15: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades • CAPEX plan Promoted by Mrs. Became a listed entity announced for CPC CPC Green (Capacity Green, H-Acid & Paru M. Jaykrishna as IPO objective: to fund 1,440 TPA) Division of Precipitated Silica Audichem (India) Pvt. plant capacity . Asahi Songwon . Ltd. expansion from
Slide 16: With Right Products
With Right Products Dye Intermediates Pigments Products Vinyl Sulphone & H-Acid CPC Green Capacity 9,000 TPA 2,400 TPA Usage Intermediate product for Dye Used as colouring agents Manufacturing Key Acentanilide , Caustic Soda & CPC Blue, Aluminium Chloride Raw Materials Other Chemicals & Other Chemic
Slide 17: With Diversified End User Industry
With Diversified End User Industry Plastics Rubber Plastics CPC Green CPC Green CPC Green Ink Plastics Paint CPC Green CPC Green CPC Green 16
Slide 18: With Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 19: With State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness. 18
Slide 20: With Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand Philippines SOUTH Malaysia AMERICA Brazil Indonesia AUSTRALIA South Africa Presence in over 20 countries *Map
Slide 21: Investment on Environment for Sustainable Growth
Investment on Environment for Sustainable Growth Consistent Spending for Pollution Treatment Expenses (In Crs.) 12.0 11.6 11.5 10.8 9.7 FY15 FY16 FY17 FY18 9M FY19 ➢ It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses ➢ Internationally recogn
Slide 22: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Founder, Chairperson & Mg. Director Jt. Managing Director & CEO Her role is that of a strategic decision Responsible for all Management and policy maker to ensure growth. decisions and overall developments of the company. Mr. Ji
Slide 23: With Awards & Accolades
With Awards & Accolades • Trishul Award for the • Top Performer Women • Special Trophy for self • Gold Award for the outstanding export Entrepreneur-NON MSME manufactured direct export outstanding export performance in Panel I: of Dyes of Rs. 25 Crores and performance in Merchant Dyes and Dye above
Slide 24: Business Strategy
AksharChem . Business Strategy
Slide 25: Reinforcing Our Strengths
Reinforcing Our Strengths… Strong Balance Sheet Nil Debt as of Sept 2018. Debt Rating : Care A1+ for short term banking facility & CARE A+/CARE Better Planning A1+ for long term/short term bank Training facilities Achieved 83% capacity Provided training to utilisation through better technical and sh
Slide 26: ... and Building a Sustainable Future
… and Building a Sustainable Future 02 04 01 03 Widen our products portfolio Focus on extending our presence in with value added products South East Asia, NAFTA and India to provide geographic hedge Focus on developing strong Maintain extensive supply business relationships with chain network across
Slide 27: Industry Opportunity
AksharChem . Industry Opportunity
Slide 28: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) ➢ The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2019 : 8.4 1. Reduction in support by the Chinese government in terms of +10% ▪ Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 29: Strengths to drive Global Leadership
Strengths to drive Global Leadership AKSHARCHEM is compliant with INTERNATIONAL QUALITY and ENVIRONMENT STANDARDS ▪ Long term quantity contract with leading GLOBAL Customer CUSTOMERS Relationships ▪ Strong Relationship with the customers for more than 2 decades ▪ ZERO Product return till date Superi
Slide 30: Financials
AksharChem . Financials
Slide 31: Key Financial Parameters
Key Financial Parameters In Crs. Net Revenue EBITDA 15% 10% 248 264 77 243 200 188 42 32 29 27 FY15 FY16 FY17 FY18 9M FY19 FY15 FY16 FY17 FY18 9M FY19 PAT Cash PAT 24% 21% 53 58 31 35 19 20 21 23 16 17 FY15 FY16 FY17 FY18 9M FY19 FY15 FY16 FY17 FY18 9M FY19 FY17 was an exceptional year on the back o
Slide 32: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 37.7% 47.5% 22.4% 26.8% 19.6% 25.2% 18.6% 18.7% 12.9% 12.0% Mar-15 Mar-16 Mar-17 Mar-18 Sep-18^ Mar-15 Mar-16 Mar-17 Mar-18 Sep-18^ Debt to Equity (x) Current Ratio (x) 0.4 2.9 2.5 0.3 1.3 1.7 0.2 1.1 0.0 0.0 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-15 Mar-16
Slide 33: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Ms. Neha Shroff / Ms. Khushbu Shah cs@aksharchemindia.com neha.shroff@sgapl.net / khush