Sharda Cropchem Ltd. · NSE:SHARDACROP
Sharda Cropchem — H1 FY15 Earnings Presentation
17 slides from Sharda Cropchem's earnings presentation, Nov 7, 2014
Slide 1: Second Quarter & First Half FY15 Results Presentation
SECOND QUARTER & FIRST HALF FY15 RESULTS PRESENTATION 7TH NOVEMBER 2014
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Sharda Cropchem Limited (“Sharda” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financia
Slide 3: Discussion Summary
DISCUSSION SUMMARY Q2 & H1 FY15 Results Highlights Q2 & H1 FY15 Consolidated Financials About Us Business Model Business Strategy & Outlook 3
Slide 4: Q2 & H1 FY15 Results: Key Highlights
Q2 & H1 FY15 RESULTS: KEY HIGHLIGHTS In Rs Mn Q2 FY15 YoY ANALYSIS REVENUES & GROSS MARGIN EBITDA & EBITDA MARGIN * PAT & PAT MARGIN 32.8% 31.9% 19.3% 17.3% 11.1% 9.9% 2,668.1 1,862.4 462.2 265.2 360.2 206.2 43.4 % 28.3 % 28.6 % Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Revenues Gross Margin %
Slide 5: Q2 & H1 FY15 Results: Key Highlights
Q2 & H1 FY15 RESULTS: KEY HIGHLIGHTS FINANCIAL UPDATE - • H1 FY15 Total Revenues from Operations increased by 50.0% YoY to Rs. 5,367.4 mn from Rs. 3,581.5 mn in H1 FY14. • H1 FY15 Gross Profit increased by 50.9% to Rs. 1,831.1 mn from Rs. 1,213.8 mn in H1 FY14. Gross Margin improved by 20.2 bps YoY
Slide 6: Q2 & H1 FY15 Results: Revenue Analysis
Q2 & H1 FY15 RESULTS: REVENUE ANALYSIS Q2 FY15 YoY % CHANGE IN REVENUE FROM OPERATIONS Volumes Impact 34.0% Price Impact 43.4% 12.9% Currency Impact -3.6% H1 FY15 YoY % CHANGE IN REVENUE FROM OPERATIONS Volumes Impact 21.0% Price Impact 49.9% 26.2% Currency Impact 2.7% 6
Slide 7: Q2 & H1 FY15 Results: Revenue Analysis
Q2 & H1 FY15 RESULTS: REVENUE ANALYSIS AGROCHEMICALS VS. NON-AGROCHEMICALS GEOGRAPHICAL PRESENCE – AGROCHEMICAL SALES Total 1,857.0 2,662.8 3,581.5 5,367.4 Total 1,587.9 2,160.4 2,944.3 4,396.1 Revenues Revenues 13.4% 14.5% 18.9% 17.8% 18.1% 12.1% 11.7% 11.7% 23.4% 26.7% 22.8% 20.4% 25.1% 20.2% 19.5
Slide 8: Update on Registrations
UPDATE ON REGISTRATIONS REGISTRATIONS AS ON REGISTRATIONS - FORMULATIONS VS. REGISTRATIONS PIPELINE AS ON 30-SEP-14 - 1255 ACTIVE INGREDIENTS 30-SEP-14 - 575 307 103 166 147 335 68 86 1089 545 239 Sep-14 Sep-14 Sep-14 Europe NAFTA LATAM RoW Formulations AIs Europe NAFTA LATAM RoW REGISTRATIONS PIPEL
Slide 9: Ratio Analysis
RATIO ANALYSIS LEVERAGE ANALYSIS RETURN METRICS 42.9% 5,557.5 6,270.3 37.9% 27.0% 29.2% 2,102.0 20.9% 21.8% 1,908.7 399.1 244.8 FY14 Sep-14 FY14 Sep-14 * Debt Equity C&CE ROE % ROCE % Cash Adj. ROCE % * Calculated On Trailing 12 Months WORKING CAPITAL ANALYSIS ** 185 • Total Debt to Equity at 0.04x
Slide 10: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Mn) Q2 FY15 Q2 FY14 YoY % Q1 FY15 QoQ % H1 FY15 H1 FY14 YoY % Revenue from Operations 2,662.8 1,857.0 43.4% 2,704.5 -1.5% 5,367.4 3,581.5 49.9% Other Operating Income 5.3 5.4 -1.7% 5.9 -10.6% 11.2 5.2 114.4% Total Revenues 2,668.1 1,862.4 43.3%
Slide 11: About Us: Company Overview
ABOUT US: COMPANY OVERVIEW Sharda Cropchem Limited is a global crop protection chemical company largely operating across Europe, NAFTA and Latin America across fungicides, herbicides and insecticides. Sharda operates with an asset light business model focused on identification and registration o
Slide 12: About Us: Our Presence
ABOUT US: OUR PRESENCE Agrochemical Operations Diversified business operations across the globe leading to reduced risk of adverse market and seasonal conditions. 12
Slide 13: About Us: Shareholding Structure
ABOUT US: SHAREHOLDING STRUCTURE Market Data As on 31.10.14 (BSE) Share Price Performance 300 Rs 264.65 Market capitalization (Rs Mn) 23,877 250 Price (Rs.) 264.65 200 150 Listing Price No. of shares outstanding (Mn) 90.22 Rs 156.00 100 Face Value (Rs.) 10.00 Sep-14 Oct-14 52 week High-Low (Rs.) 217
Slide 14: About Us: Financial Summary
ABOUT US: FINANCIAL SUMMARY REVENUES EBITDA & EBITDA Margin PAT & PAT Margin CAGR: 23.0% 7,926 8,147 CAGR: 28.3% CAGR: 38.6% 20.8% 21.9% 13.1% 18.5% 19.6% 19.5% 11.1% 10.6% 6,201 9.2% 8.1% 4,494 1,549 1,786 1,069 1,291 687 844 3,559 882 660 289 414 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 F
Slide 15: Differentiated Business Model: Asset Light Model
DIFFERENTIATED BUSINESS MODEL: ASSET LIGHT MODEL Agrochemical Value Chain Sharda’s Operating Area Basic & Applied Active Ingredient Formulation & Marketing & Identification Registration Research Manufacturing Packaging Distribution ASSET LIGHT BUSINESS MODEL Sharda’s Model: Traditional Model: Demand
Slide 16: Business Strategy & Outlook
BUSINESS STRATEGY & OUTLOOK Leverage market presence and execution capabilities. Forward Integration - Adopt the factory-to-farmer approach & be a one-stop solution provider. Build own Sales Force Strategy on ground in Mexico, Colombia, South Africa & India . Expand & Strengthen Expand geogr
Slide 17: Thank You
FOR FURTHER QUERIES: THANK YOU Mr. Gautam Arora Mr. Ammeet Sabarwal / Mr. Nilesh Dalvi Chief Financial Officer IR Consultant Email: garora@shardaintl.com Email: ammeet.sabarwal@dickensonir.com Contact No: +91 22 6678 2800 nilesh.dalvi@dickensonir.com Contact No: +91 9819576873 / 9819289131 17