Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q3 FY2022 Earnings Presentation
31 slides from Meghmani Organics's earnings presentation, Feb 2, 2022
Slide 1: Exchange filing cover letter for investor presentation
ORGANICS LDV Chemistry of Success at Work Ref: MOL/2021-22/40 February 2, 2022 To, To, National Stock Exchange of India BSE Limited Limited Floor- 25, P J Tower, “Exchange Plaza”, Bandra-Kurla Dalal Street, Complex, Mumbai 400 001 Bandra (East) Serip Code:- 543331 Mumbai 400 051 SYMBOL:- MOL Dear Si
Slide 2: Q3 & 9MFY22 Results Presentation
Meghmani Organics Limited (Erstwhile known as Meghmani Organochem Limited) Q3 & 9MFY22 Results Presentation February 2022 www.meghmani.com
Slide 3: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 4: Discussion Summary: Q3 & 9MFY22 Results Update
Discussion Summary Q3 & 9MFY22 RESULTS UPDATE 3
Slide 5: Q3 & 9MFY22: Result Highlights
Q3 & 9MFY22: Result Highlights Despite challenging business environment, Meghmani Organics Ltd. (MOL) revenue grew by 43.7% YoY to Rs. 6,392 million in Q3 FY22 aided by higher realisation from Pigments along with improvement in volume & higher realisation from Agrochemicals business. During the quar
Slide 6: Q3 & 9MFY22 Results: Key Highlights
Q3 & 9MFY22 Results: Key Highlights Q3 FY22 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin 45.7% 39.7% 20.2% 12.5% 10.6% 6,392 12.1% 4,449 900 774 557 679 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 9M FY22 YoY Analysis Revenues & Gross Margin EBITDA & EBITDA
Slide 7: Q3 & 9MFY22 Results: Pigments Business
Q3 & 9MFY22 Results: Pigments Business Q3 FY22 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 86% 88% 77% 82 % 700 9,000 19.1% 30.0% 8,000 7,099 7,281 50.0% 600 20.0% 7,000 0.0% 2,500 2,017 500 4.9% 10.0% 6,000 -50.0% 2,000 1,623 5,000 -100
Slide 8: Q3 & 9MFY22 Results: Agrochemicals Business
Q3 & 9MFY22 Results: Agrochemicals Business Q3 FY22 YoY Analysis Rs Mn Production & Utilisation (%) Net Revenue (Rs Mn) & Exports* EBITDA (Rs Mn) & Margin (%) 82% 88 % 91 % 74% 14,000 1,800 24.6% 30.0% 1,600 12,000 9,428 50% 6,000 1,400 17.7% 20.0% 10,000 5,000 4,375 1,200 8,000 6,641 0% 10.0% 4,000
Slide 9: Q3 & 9MFY22 Results: Profit & Loss Statement
Q3 & 9MFY22 Results: Profit & Loss Statement Particulars (Rs. in Mn) Q3 FY22 Q3 FY21 YoY% 9M FY22 9M FY21 YoY% FY21 Revenue from Operations 6,392 4,449 43.7% 16,806 11,642 44.4% 16,234 COGS 3,857 2,417 59.6% 9,744 6,193 57.3% 8,975 Gross Profit 2,535 2,032 24.8% 7,062 5,450 29.6% 7,260 Gross Margins
Slide 10: Balance Sheet Statement
Balance Sheet Statement Particulars (Rs. in Mn) Sep 21 Mar 21 Particulars (Rs. in Mn) Sep 21 Mar 21 Equity & Liabilities Assets Share Capital 254 254 Property, Plant & Equipment 6,897 6,286 Reserves & Surplus 12,394 11,418 Capital WIP 1,357 1,059 Shareholder's Funds 12,648 11,673 Intangible Assets 1
Slide 11: About Us
CHEMISTRY OF SUC ABOUT US
Slide 12: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals • Started in 1986 • Started in 1995 • Amongst top 3 global Phthalocyanine based pigment • Among Top 10 producers of pesticides in India players • Products across entire value chain • 14% global market share • FY21 R
Slide 13: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 14: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Strong & lean Balance Sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 8.0% 01 04 • ROCE – 9.6% in FY17 to 17.1% in FY21 over FY17-21, with higher contribution • ROE – 6.8%
Slide 15: Key Milestones
Key Milestones Foray into Titanium Dioxide (TiO2) pigment with Kilburn 2021 - 22 Chemicals acquisition Commissioned 2 New Plants in Agro Division: Doubling the capacity of 2,4-D to 21,600 TPA & New Formulation Plant 2020 - 21 Setting up new Multipurpose Plant (New Molecules) Independent list
Slide 16: Business Overview
MeL CHEMISTRY OF SUCCESS AT WORK
Slide 17: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with Total Capacity – 33,180 TPA 14% global market share & amongst top 3 (capacity wise) global pigments players Location Capacity Pr
Slide 18: Titanium Dioxide (TiO2): Industry Overview
Titanium Dioxide (TiO2): Industry Overview Titanium Dioxide (TiO2): Snapshot Domestic Market Size (MTPA) • Titanium Dioxide (TiO2) is a naturally occurring white opaque mineral used a bright white pigment 320,000 300,000 • Key raw materials are ilmenite ore and sulphuric acid 300,000 280,000 • TiO2
Slide 19: Investment Rationale for Kilburn Chemical's Acquisition
Investment Rationale for Kilburn Chemical’s Acquisition Sustainable Growth Diversification into new pigment 01 High profitability boosting the overall return ratios Import Substitution 02 Growing application of Titanium Dioxide (TiO2) in multiple industries Making notable contribution to the
Slide 20: Titanium Dioxide (TiO2): Project Dynamics
Titanium Dioxide (TiO2): Project Dynamics Proposed Capacity: 33,000 TPA Expected Revenue: Rs. 750 Crores Total Capex: Rs. 600 Crores Payback Period: ~ 5 Years (Commercialization from Q3 FY24) Expected Margin/Ratios EBITDA margin: 25% ROCE: 20% ROE: 20% 19
Slide 21: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) Net Sales & Exports* (Rs Mn) 68 % 79 % 81 % 77 % 78 % 84 % 35,000 6,048 6,406 5,877 5,784 5,479 30,000 25,982 25,226 25,694 25,349 6,100 5,242 5,100 25,000 20,194 21,621 4,100 20,000 3,100 2,100 15,000 1,100 10,000 100 FY17 FY18 FY19 FY20 FY21
Slide 22: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 50.0 43.0 • Organic pigments account for 35-40% mkt. share out of total 45.0 40.0 29.0 35.0 pigments
Slide 23: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Used for captive consumption • Established global presence across Africa, Brazil, LatAm, US and Europe Pesticide Intermediates • Strong pan-In
Slide 24: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) 35,000 646 680 682 27,898 29,135 581 567 616 30,000 25,000 370 372 18,431 18,666 18,145 348 356 20,000 16,219 354 307 15,000 10,000 260 268 290 310 310 227 5,000 0 FY17 FY18 FY19 FY20 FY21 9M FY22 FY17 FY18 FY19 FY20 FY2
Slide 25: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 77 Bn by 2030 77.0 • Key drivers - growing population, declining arable land & rising pest 59.8 conc
Slide 26: Strategy & Outlook
STRATEGY & OUTLOOK @® os
Slide 27: Roadmap for achieving 20%+ top-line growth in next 3 years
Roadmap for achieving 20% + top-line growth in next 3 years • Among Top 3 producer of phthalocyanine pigments globally • Continue to focus on increasing domestic presence and capture market share Pigments • Expanding into new geographies • Diversification into new and lucrative white pigment TiO2. •
Slide 28: Financial Overview
FINANCIAL OVERVIEW 27
Slide 29: Financial Snapshot
Financial Snapshot Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin * CAGR 8% * CAGR 16% * CAGR 35% 11.4% 12.0% 11.9% 12.0% 44.7% 42.0% 16.5% 17.2% 42.1% 42.5% 14.5% 38.0% 13.6% 14.4% 36.2% 11.9% 6.2% 1,850 2,010 1,921 2,799 4.0% 1,687 16,247 16,234 16,806 2,323 2,363 2,425 11,1
Slide 30: Financial Snapshot
Financial Snapshot Rs Mn Leverage Analysis Working Capital Analysis * 0.56 0.60 0.39 0.27 0.22 0.36 144 130 115 106 112 113 13,328 146 6,977 9,908 11,673 82 65 77 74 81 6,329 8,380 103 89 85 92 92 120 3,533 4,170 3,265 2,639 2,619 4,787 -55 -48 -50 -51 -60 -123 FY17 FY18 FY19 FY20 FY21 9M FY22 FY17
Slide 31: For Further Queries
For Further Queries: Gurjant Singh Chahal, CFO Bharat Mody, IR Advisor Hiral Keniya / Chintan Mehta, IR Consultants Email: ir@meghmani.com Email: ir@meghmani.com Contact: 90296 62801 / 98921 83389 Phone: +91-79717 61000 Phone: 98980 46584 Email: meghmani@dickensonworld.com