Chemcon Speciality Chemicals Ltd · NSE:CHEMCON
Chemcon Speciality Chemicals — Investor Presentation (May 2023)
32 slides from Chemcon Speciality Chemicals's investor presentation, May 27, 2023
Slide 1: Exchange filing cover letter
27th May 2023 To, To, BSE Limited National Stock Exchange of India Limited Listing Compliance & Legal Regulatory Listing & Compliance Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra East, Mumbai 400 051 Stock Code: 543233 Stock Symbol: CHEMCON D
Slide 2: Chemcon Speciality Chemicals Limited Investor Presentation – May 2023
Chemcon Speciality Chemicals Limited Investor Presentation – May 2023
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Chemcon Speciality Chemicals Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe
Slide 4: Q4 & FY23 Highlights
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Slide 5: Business Highlights
Business Highlights “We have closed the fiscal year with a total income of Rs. 303 crores, an increase of 18% from the previous year. During the most recent quarter, there were a number of sluggish spots, which were followed reasonable demand in March. The general downturn in the end-user market hav
Slide 6: Financial Highlights
Financial Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 89.1 27.5 21.3 76.5 79.1 13.5 14.1 11.4 10.5 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Q4 FY22 Q3 FY23 Q4 FY23 Geographic-Wise (%) Business-wise (%) Sales Volume (MT) 3,245 3,231 2% 1% 3% 2,979 Others 27% 38% Bromides 43%
Slide 7: Financial Highlights
Financial Highlights Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 302.9 81.6 62.8 257.1 70.7 55.1 FY22 FY23 FY22 FY23 FY22 FY23 Geographic-Wise (%) Business-wise (%) Sales Volume (MT) 10,975 10,076 Others 1% 2% Export 37% 23% 0% 35% Bromides 59% Bromides 6,500 7,606 3% Bromobenzene Bromobenze
Slide 8: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Crs) Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Revenue from Operations 79.1 89.1 -11.3% 302.9 257.1 17.8% Cost of Goods Sold 53.6 45.3 175.7 124.4 Employee Cost 5.0 5.1 20.5 19.1 Other Expenses 6.4 11.2 35.9 32.0 EBITDA 14.1 27.5 -48.8% 70.7 81.6 -13.4% EBITDA Ma
Slide 9: Consolidate Balance Sheet
Consolidate Balance Sheet ASSETS (Rs. Crs) Mar-23 Mar-22 EQUITY AND LIABILITIES Mar-23 Mar-23 Non-Current Assets EQUITY AND LIABILITIES Equity a) Property, Plant And Equipment 141.4 81.7 a) Equity Share Capital 36.6 36.6 b) Capital Work in Progress 13.6 34.0 b) Other Equity 420.7 380.6 c) Right Of U
Slide 10: Consolidate Cash Flow Statement
Consolidate Cash Flow Statement Particulars (Rs. Crs.) Mar-23 Mar-22 Net Profit Before Tax 74.2 84.0 Adjustments for: Non Cash Items / Other Investment or Financial Items 0.8 1.4 Operating profit before working capital changes 73.3 82.6 Changes in working capital -38.5 14.6 Cash generated from Opera
Slide 11: Company Overview
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Slide 12: Company Snapshot
Company Snapshot Incorporated in 1988 Only Manufacturer of HMDS in India Manufacturer of Speciality Chemicals 3rd Largest Manufacturer of HMDS Worldwide An ISO 9001:2015 and ISO 14001:2015 Certified Company Largest Manufacturer of CMIC worldwide Business Verticals: HMDS, CMIC, Bromides & Bromobenzen
Slide 13: Evolution
Evolution FY89 FY95-98 FY01-03 FY05 FY14 FY15-16 » Company was » First sale of few » Commenced HMDS » First export shipment of » First sale of CMIC » First sale of Calcium incorporated as chemical products Business in 2001 HMDS Bromide (Solution) Gujarat Quinone • Pyridine Private Limited Hydrobromi
Slide 14: Global Market Presence
Global Market Presence Global Presence Key Countries » United States of » Japan America » United Arab FY23 Export Contribution*: » Italy Emirates ~59% » South Korea » Germany » Russia » Spain » People’s Republic of » Thailand China » Malaysia Over Two Decades of • Manufacturing Well Equipped to Seiz
Slide 15: Entry Barriers
Entry Barriers Complex Chemistry Stringent Impurity Measure » The involvement of complex chemistry in » Our processes and products are subject to, and the manufacture of the Products, which is measured against, high quality standards and difficult to commercialize on a large scale stringent impurity
Slide 16: Key Long-Term Relationships
Key Long-Term Relationships Pharmaceutical Chemicals Oilwell Completion Chemicals Inorganic HMDS CMIC Bromides Shree Radha CC Gran Limited Overseas Liability Company Longstanding New Product New Customer Strong Base Clients Development Reach Major customers Leading to increase Few customers age Well
Slide 17: Moving up the Value Chain
Moving up the Value Chain Added New Product like FY15 Revenue FY23 Revenue Business BromoBenzene & Others Rs 64 Crs Rs 303 Crs Commenced CMIC business in 2014 CMIC Rs 10 Crs Rs 46 Crs HMDS Rs 36 Crs Rs 130 Crs Commenced HMDS business in 2001 Bromides Rs 13 Crs Rs 107 Crs Commenced Bromide business i
Slide 18: Key Certifications
Key Certifications Key Certificates R&D Environment In-house laboratory to test Complying All Environment Laws » Raw materials procured » The Environment (Protection) Act, 1986 » New Products & Innovation » Water Prevention and Control of Pollution Act » Final products testing at the various stages
Slide 19: Product Overview
Product Overview
Slide 20: Market Overview
Market Overview HMDS CMIC Bromides Global Market ~35,700 MT ~6,880 MT ~362,000 MT Capacity (CY19) Global Market ~25,390 MT ~3,927 MT ~246,000 MT Production (CY19) Chemcon Production 1,950 MT 997 MT 4,275 MT (FY23) Chemcon Share in ~8% ~25% ~2% Global Market Domestic Import (CY19) ~1,622 MT ~1,574 MT
Slide 21: HMDS
HMDS Hexamethyldisilazane / Hexamethyldisilane » HMDS, an organosilicon compound, is a reagent and a precursor to bases that are popular in organic synthesis and organometallic chemistry » HMDS is widely used in the pharmaceutical industry as a silylating agent in the process of manufacture of pharm
Slide 22: CMIC
CMIC Chloromethyl Isopropyl Carbonate » CMIC (chloromethyl isopropyl carbonate) is an antiviral drug intermediate product, which is a key intermediate for anti-AIDS and anti-hepatitis B drug Tenofovir » The downstream product of chloromethyl isopropyl carbonate, Tenofovir is a nucleotide antiviral d
Slide 23: Oilwell Completion Chemicals - Bromides
Oilwell Completion Chemicals - Bromides Inorganic Bromides: Calcium Bromide, Zinc Bromide and Sodium Bromide » Oilwell Completion Chemicals are used to complete the well and is normally a salty solution made up of chlorides or bromides » In addition to cleaning the wellbore, after the drilling is fi
Slide 24: Manufacturing Facilities
Manufacturing Facilities Installed Capacity Volume Reactor Located at Manjusar near Plant No Product categories Product Manufactured (MT P.A) Capacity (In KL) Vadodara, Gujarat P-3 & P-7 HMDS and ancillary products 4,200 177.80 9 Operational Plants P-2 HMDS (hi-purity) 600 13.00 P-4 CMIC 1 Proposed
Slide 25: Located at Manjusar near Vadodara, Gujarat
Located at Manjusar near Vadodara, Gujarat 24
Slide 26: Growth Drivers
Growth Drivers Capacity Expansion Import Substitution » We intend to build additional plants P10 unit in FY24 » India’s current domestic demand is being catered by imports for HMDS and CMIC » These additional plant will manufacture chemicals which are principally used in the » We are the only manufa
Slide 27: Way Forward
Way Forward Moderate Recovery in Exploring Moderate Growth in Opportunities in Pharma Industry Oil Industry New Products Leading to Long Term Sustainable Growth New Products, New Clients, New Applications, New Opportunities 26
Slide 28: Financial Highlights
Financial Highlights
Slide 29: Financial Trends
Financial Trends Total Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) 303.3 302.9 81.1 81.6 62.8 262.1 257.1 70.3 70.7 56.4 55.1 243.5 66.1 48.9 43.0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Geographic-Wise (%) Business-wise (%) Sales Volume (MT)* 10,149 10,076 10,73
Slide 30: Performance Highlights
Performance Highlights Total Revenue (Rs. Cr) 130 131 130 121 122 107 107 84 88 68 60 48 46 34 31 HMDS CMIC Bromides FY19 FY20 FY21 FY22 FY23 Sales Volume (MTPA) 7,606 7,217 6,500 5,529 3,552 2,710 3,057 2,290 1,987 1,672 1,805 1,261 1,286 1,145 896 HMDS CMIC Bromides 29
Slide 31: Key Ratios
Key Ratios Fixed Asset Net Debt/ equity (x) Turnover(x) 0.35 7.7 0.31 5.5 0.15 3.7 3.2 0.09 2.1 0.01 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 ROCE (%) ROE (%) 49% 45% 35% 34% 21% 19% 16% 15% 15% 12% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 30
Slide 32: Thank You
Thank You Chemcon Speciality Chemicals Ltd. CIN – L24231GJ1988PLC011652 Mr. Rajesh Gandhi - CFO Email – rajesh@cscpl.com www.cscpl.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Shrikant Sangani / Ms. Pankti Majithia Email - shrikant.sangani@sgapl.net/ pankti.majithia@sgapl.
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