Tatva Chintan Pharma Chem Limited · NSE:TATVA
Tatva Chintan Pharma Chem — Q3 FY2023 Earnings Presentation
40 slides from Tatva Chintan Pharma Chem's earnings presentation, Jan 24, 2023
Slide 1: Exchange filing cover letter
Date: 24 January 2023 Ref. No.: TCPCL/SEC/2022-23/00090 To, The General Manager, The Manager, Corporate relationship department, Listing department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Fort, Bandra-Kurla, Complex
Slide 2: Investor Presentation Q3 & 9MFY23
Investor Presentation Tatva Chintan Pharma Chem Limited (TCPCL) Q3 & 9MFY23 24 January 2023
Slide 3: Contents
Contents 01 02 03 04 Q3 & 9MFY23 TATVA CHINTAN at Glance Product Categories Leading Sustainable Financial Performance practices coupled with cutting edge technology 05 06 07 08 Expansive international Why TATVA CHINTAN Industry Outlook Our Business presence with Marquee clientele 2
Slide 4: Q3 & 9MFY23: Result highlights
Q3 & 9MFY23: Result highlights Q3FY23 HIGHLIGHTS Revenue from Operations 1 (In ₹ Mn) EBIDTA (Excl. Other Income & PAT & PAT Margin 1 (In ₹ Mn, %) 250 25% EPS (In ₹) EBIDTA Margin 1 (In ₹ Mn, %) 300 25% 22% 200 20% 1,207 250 23% 20% 150 15% 239 200 15% 15% 228 10 179 100 10% 10% 116 150 15% 10% 25% 4
Slide 5: Q3 & 9MFY23: Operational highlights
Q3 & 9MFY23 : Operational highlights OPERATING REVENUE SPLIT (IN %) Q3FY23 9MFY23 PTC 27% PTC 35% SDA 47% SDA 24% ELECTROLYTE SALTS 3% ELECTROLYTE SALTS 5% PASC 22% PASC 35% OTHERS 1% OTHERS 1% Tatva Chintan Pharma Chem Limited 5
Slide 6: Q3 & 9MFY23: Consolidated P&L
Q3 & 9MFY23: Consolidated P&L Particulars (₹ Mn) Q3 FY23 Q3 FY22 YoY (%) Q2 FY23 QoQ (%) 9M FY23 9M FY22 YoY (%) Revenue from Operation 1,206.07 1,046.70 15.23% 900.91 33.87% 2,991.00 3,351.17 -10.75% Total Income 1,221.27 1,092.84 11.75% 916.40 33.27% 3,039.99 3,437.04 -11.55% EBITDA (Excl. Other I
Slide 7: Chairman & MD's Comments on Results
Chairman & MD’s Comments on Results • During this quarter, the company reported revenue of ₹ 1,206 million, a growth of 15% YoY and 34% QoQ respectively. As anticipated, improved offtake in SDA segment is reflected in numbers of this quarter. “ • EBITDA during this quarter was ₹ 179 million, a decli
Slide 8: Consolidated Annualized Financial Highlights
Consolidated Annualized Financial Highlights REVENUE FROM OPERATIONS1 (IN ₹ MN) PROFITABILITY1 (IN ₹ MN) EBITDA (Excluding Other Income) & EBITDA Margin PAT & PAT Margin 89 17% 22% 25% 15% 10% 14% 17% 22% 10% 21% 59 4,336 959 14 49 5 523 3,004 1083 47% 67% 2,632 28% 378 443 2991 285 205 2,063 665 CA
Slide 9: Creating value for our stakeholders
Creating value for our stakeholders NET DEBT1 (IN ₹ Mn) & NET DEBT/EBITDA (TIMES) CAPITAL EMPLOYED1 (IN ₹ Mn) & RoCE (%) 1,40 0 2.5 6,00 0 35% 33% 1,20 0 2.25 5,00 0 32% 30% 2 1,00 0 25% 4,00 0 26% 1.61 1.5 800 22% 20% 3,00 0 600 1.26 1 15% 1.02 2,00 0 400 10% 0.5 1,00 0 1,968 1,199 1,149 1,613 4,86
Slide 10: Consolidated Statement Profit & Loss
Consolidated Statement Profit & Loss As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 31 March 2022 31 Dec 2022 Audited Audited Audited Audited Un-Audited Income Revenue from operations 2,063.07 2,632.39 3,003.59 4,336.47 2,991.00 Total Income 2,068.01 2,646.22 3,055.59 4,425.41 3,
Slide 11: Consolidated Statement Balance Sheet
Consolidated Statement Balance Sheet As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 31 March 2022 30 Sep 2022 Audited Audited Audited Audited Un-Audited Assets Fixed Assets 665.75 1,110.60 1,203.51 1,592.96 1,605.02 Capital work-in-progress 60.36 48.92 98.11 514.91 1,294.54 Intan
Slide 12: TATVA CHINTAN at Glance
TATVA CHINTAN at Glance 12
Slide 13: TATVA CHINTAN at Glance
TATVA CHINTAN at Glance INTEGRATED SPECIALTY CHEMICAL COMPANY, PRESENT ACROSS THE VALUE CHAIN • Established by first generation entrepreneur engineers in Manufacturing Products Revenue Split – FY22 1996 • Plants located at Ankleshwar and Dahej SEZ, Gujarat with an existing combined installed capacit
Slide 14: TATVA CHINTAN at Glance (Contd.)
TATVA CHINTAN at Glance (Contd.) KEY FINANCIAL NUMBERS FY22 CRISIL A- Stable/ A2+ 4,336 27% 44.59 22% Revenue from EBIDTA % EPS RoCE % Operations (In ₹) Credit Rating (In ₹ Mn) 25+ 471+ 20% 1,199 0.25 Countries Workforce RoE % Borrowings Net Debt / Equity Export (In ₹ Mn) (In times) Tatva Chintan Ph
Slide 15: Product Categories
Product Categories » & = i © Se
Slide 16: Phase Transfer Catalyst (PTC)
Phase Transfer Catalyst (PTC) A Catalyst with Innumerable Benefits WHAT ARE PTC? BENEFITS DEMAND DRIVERS • PTC are used to facilitate the • Offers faster reactions • Rising demand for technologically Tatva Chintan’s migration of a reactant from one • Higher conversion or yields, advanced environment
Slide 17: Structure Directing Agents (SDA)
Structure Directing Agents (SDA) – An important ingredient for making the world more sustainable WHAT ARE SDA? BENEFITS DEMAND DRIVERS • High purity Quaternary salts that SDAs are important raw material for • With the recent developments in Tatva Chintan’s helps in the formation of creation of high
Slide 18: Electrolysis – A better and greener way of producing SDAs
Electrolysis – A better and greener way of producing SDAs ABOUT ELECTROLYSIS BENEFITS • TCPCL started R&D into developing SDAs • Electrolysis is considered as a ‘green’ since 2007 chemistry process wherein apart from a single starting raw material, the process largely uses • In 2015, it received com
Slide 19: Electrolyte Salts – Aiding the technological thrust
Electrolyte Salts – Aiding the technological thrust WHAT ARE ELECTROLYTE BENEFITS DEMAND DRIVERS • Due to their properties like fast Tatva Chintan’s SALTS? Currently, these are used along with charging ability, superior low Lithium battery in EV vehicles PRESENCE IN SALTS • Electrolyte Salts are use
Slide 20: Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)
Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC) WHICH PRODUCTS ARE END USER INDUSTRY APPLICATION Tatva Chintan’s MANUFACTURED? POSITION IN PASC • Various pharmaceutical and agrochemical products such as Pharmaceuticals Agro Actives 2016 TCPCL is the intermediates
Slide 21: Continuous Flow Chemistry
Continuous Flow Chemistry- sophisticated method with analytical expertise ABOUT BENEFITS PROCESS • Tatva Chintan started R&D into • Continuous Flow Chemistry is • Structure directing agents are continuous flow chemistry since considered as a ‘green’ chemistry converted to Zeolite based catalysts 201
Slide 22: Value derived from Product Categories
Value derived from Product Categories REVENUE FROM EACH PRODUCT CATEGORY1 (In ₹ Mn.) 2,248 Considering the wide range of applications of our products, Tatva Chintan can cater to customers across wide spectrum of Chemical Industries which ensures a sustainable business model. 1,202 728 1054 1036 1,02
Slide 23: Leading Sustainable practices coupled with cutting edge technology
Leading Sustainable practices coupled with cutting edge technology 23
Slide 24: Integrated and Modern Manufacturing Facility
Integrated and Modern Manufacturing Facility ANKLESHWAR DAHEJ SEZ COMBINED CAPACITY • Both the plants are in-close proximity to • Manufacturing facility started in 1996 • Manufacturing started in 2017 Installed Hazira port. • Converted into a ‘zero liquid effluent • Sophisticated quality control lab
Slide 25: One of the prominent Research & Development center
One of the prominent Research & Development center R&D CAPITAL AND REVENUE EXPENDITURE • Dedicated R&D facility at Vadodara recognized by the Department of (In ₹ Mn.) 80 Scientific and Industrial Research (“DSIR”), Government of India. Currently spread over 10,000 Sq. ft and being expanded to 36,000
Slide 26: With a focus on 'green' chemistry processes
…With a focus on ‘green’ chemistry processes Tatva Chintan’s ‘green’ chemistry is based on the principles of clean chemistry, minimum requirement of auxiliary substances, minimum waste and by-products and safe chemistry • Undertaking various ‘green’ chemistry processes • By deploying electrolysis fo
Slide 27: Expansive international presence with Marquee clientele
Expansive international presence with Marquee clientele 27
Slide 28: Fostered long term relationship with marquee clientele
Fostered long term relationship with marquee clientele while continuously expanding presence in global market ESTEEMED CUSTOMERS EXPORTS • Tatva Chintan exports products to over 25 countries viz. USA, China, Germany, Japan, South Africa and UK. • Subsidiaries facilitates overseas operations:- • Tatv
Slide 29: Why TATVA CHINTAN
Ze Why TATVA . CHINTAN @
Slide 30: Investment Rationale
Investment Rationale Strong position in Successful track Wide basket of Continuous focus High industry Capex to boost the the niche specialty record on widening products are used in on R&D and in house barriers as new capacities and pave chemicals space with product basket, varied industries develop
Slide 31: Industry Outlook
Industry Outlook 31
Slide 32: India's rapidly expanding footprint in Global Chemical Market
India's rapidly expanding footprint in Global Chemical Market SHARE OF COUNTRIES IN GLOBAL TRENDS IN SPECIALTY CHEMICALS LANDSCAPE CHEMICAL INDUSTRY (IN %) Indian Chemical Move towards Opportunity Industry got sustainable product for Indian CHINA 41% Advantage vs development: Manufacturers: EU 15% C
Slide 33: Global Chemical Industry
Global Chemical Industry GLOBAL Commodity Chemicals PTC SDA CHEMICAL • Basic Chemicals INDUSTRY • Manufactured In large volumes 1,031 964 Mkt Size Mkt Size MARKET SIZE • Mkt Size USD 3,700bn 2019 (USD Mn) 2019 (USD Mn) • ~Expected 6% CAGR 1,328 5.1% 1.4 6.8% Speciality Chemicals 4,738 • Value Added
Slide 34: Our Business
Our Business 34
Slide 35: Major Events & Milestones
Major Events & Milestones 1996 2007 2013 2017 2019 2021 Incorporation of our Expansion of Achieved turnover Set up our Dahej SEZ Incorporation of Tatva • Listed on Company manufacturing capacity at of ₹ 500.00 million Manufacturing Facility Chintan Europe BV, BSE and NSE our Ankleshwar a wholly owne
Slide 36: Leadership and Management
Leadership and Management Chintan Nitinkumar Shah Ajaykumar Mansukhlal Shekhar Rasiklal Somani Dr. Manher Chimanlal CA Subhash Ambubhai Dr. Avani Rajesh Umatt Patel Desai Patel M ANAG I N G D I R E C T O R WHOLE TIME DIRECTOR WHOLE TIME DIRECTOR I ND E P E ND E NT D I R E C T O R I ND E P E ND E NT
Slide 37: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- DECEMBER 2022 (IN %) NSE Ticker TATVA BSE Ticker 543321 IPO Listing Date 29 July 2021 Share Price (₹)^ 2,150 PROMOTER 79.17% Market Cap (₹ Mn)^ 47,669 MF 11.12% % Free Float^ 20.8% December PUBLIC 5.26% Free float market cap (₹ Mn)^ 9,929 2022 Shares out
Slide 38: Net IPO Proceeds
Net IPO Proceeds USE OF NET IPO PROCEEDS1 (IN ₹ MN) The Net Proceeds are utilized in accordance with the details provided in the following chart: Offer for Sale: Raised ₹2750 mn Fresh Issue: Raised ₹2250 mn 2,073 ISSUE SIZE ₹5,000 MILLION Capex at Dahej Plant Of: ₹1471 mn AT ₹1,083/SHARE 1,471 Capex
Slide 39: Safe Harbor
Safe Harbor Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company's results may
Slide 40: Thank You
JAN 2023 Thank You TATVA CHINTAN PHARMA CHEM LIMITED INVESTOR RELATIONS AT CORPORATE OFFICE TATVA CHINTAN Plot No. 353, G.I.D.C, Mr. Ashok Bothra Makarpura, Vadodara – 390 010, Gujarat, India finance@tatvachintan.com BSE: 543321 EY NSE: TATVA Ms. Krishna Patel, Mr. Rahul Thakur CIN: L24232GJ1996PLC0
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