Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Investor Presentation (October 2021)
48 slides from Balaji Amines's investor presentation, Oct 28, 2021
Slide 1: Cover letter to stock exchanges
28th October, 2021 To, The General Manager-Department of The Manager-Listing Department, Corporate Services, National Stock Exchange of India Limited, BSE Limited, "Exchange plaza", 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Dalal Street, Mumbai -400 001. Bandra-Kurla Complex, Scri
Slide 2: Balaji Amines Limited Investor Presentation October 2021
Balaji Amines Limited Investor Presentation October 2021 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balaji Amines 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 securiti
Slide 4: Q2FY22: Standalone Performance Highlights
Q2FY22: Standalone Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 25.49% 29.66% 23.23% 16.82% 20.75% 15.84% 55.09% 41.32% 46.01% 439.33 116.92 81.81 394.26 102.06 69.59 283.28 72.22 47.66 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 3
Slide 5: H1FY22: Standalone Performance Highlights
H1FY22: Standalone Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 25.33% 26.27% 16.59% 18.16% +67.98% +74.18% +83.95% 833.58 218.98 151.41 496.25 125.72 82.31 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 4
Slide 6: Q2FY22: Consolidated Performance Highlights
Q2FY22: Consolidated Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 26.28% 31.93% 25.40% 15.62% 21.55% 16.66% 86.76% 80.48% 99.25% 528.67 144.29 97.40 134.26 88.07 451.94 283.07 74.39 44.20 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 5
Slide 7: H1FY22: Consolidated Performance Highlights
H1FY22: Consolidated Performance Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) Margin 25.41% 28.41% 14.94% 18.91% +116.11% +144.73% +93.32% 980.61 278.55 185.46 507.26 128.89 75.78 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 6
Slide 8: Q2FY22 Performance Highlights
Q2FY22 Performance Highlights Sales volumes were up by 1.96% from 23,151 MT in Q2FY21 to 23,604 MT in Q2FY22. The overall demand for our product basket remained healthy despite the temporary reduction in demand for certain products from pharmaceutical clients on account of Chinese API KSM unavailabi
Slide 9: Expansion Plans
Expansion Plans Acetonitrile Di-methyl Carbonate Methylamines Dimethyl Formamide ❑ Have installed capacity of 9,000 ton ❑ Under the phase-1 of Greenfield ❑ Market Leader in Methylamines ❑ Market Leader in Dimethyl production in India with installed Formamide (DMF) production in per annum (TPA). Curr
Slide 10: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q2FY22 Q2FY21 Y-o-Y H1FY22 H1FY21 Y-o-Y FY21 Total Revenue 439.33 283.28 55.09% 833.58 496.25 67.98% 1,239.81 Raw Material 241.86 147.35 439.76 259.04 622.69 Employee expense 18.99 15.14 37.09 25.97 65.68 Other expenses 76.42 48.57 137
Slide 11: Consolidated Statement of Profit & Loss
Consolidated Statement of Profit & Loss Particulars (in Rs. Crore) Q2FY22 Q2FY21 Y-o-Y H1FY22 H1FY21 Y-o-Y FY21 Total Revenue 528.67 283.07 86.76% 980.61 507.26 93.32% 1,317.5 Raw Material 279.32 137.48 498.99 255.84 630.26 Employee expense 19.65 15.61 38.31 26.83 67.82 Other expenses 95.44 55.59 16
Slide 12: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Sep-21 Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) Sep-21 Mar-21 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 473.07 344.34 (b) Other equity 1029.37 890.93 (b) Capital work-in-progress 79.21 173.27
Slide 13: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crs.) Sep-21 Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) Sep-21 Mar-21 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 665.34 542.92 (b) Other equity 1,045.09 887.91 (b) Capital work-in-progress 79.21 173.
Slide 14: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow Statement for twelve months ended (in Rs. Crore) FY21 FY20 Profit before interest and tax 204.58 113.51 Other income considered -6.83 -4.87 Depreciation 14.40 12.21 Operating profit before working capital changes 212.15 120.85 Changes in working capital -228.
Slide 15: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement for twelve months ended (in Rs. Crore) FY21 FY20 Profit before interest and tax 257.82 111.66 Other income considered -4.20 -1.96 Depreciation 20.73 17.23 Operating profit before working capital changes 274.35 126.93 Changes in working capital -27
Slide 16: Section 1: About Us
SECTION 1 About Us
Slide 17: Amines Industry – Unique but Critical Industry with growth potential
Amines Industry – Unique but Critical Industry with growth potential The size of Aliphatic Amines industry globally is For Indian Amine manufacturers, 45-55% of the $4.9 billion. Globally, the Amine industry is export revenue comes from Europe alone. USA 8 1 oligopolistic with two-three producers ca
Slide 18: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India Largest manufacturer of Aliphatic State-of-the-art manufacturing 25+ Product basket Zero Liquid Discharge Amines in India facilities fully equipped with latest DCS technology facilities Only Company to develop an Indigenous Technology
Slide 19: Our Products are supplied to India's fast-growing Industries
Our Products are supplied to India’s fast-growing Industries INDUSTRY WISE – REVENUE BREAKUP 3% 4% 3% 4% 3% 2% 4% 51% 26% Pharma Agrochem Paints & Resins Animal Feeds Oil & Gas Rubber Cleaning Chemicals Water Treatment Chemicals Dye and Textiles Others 18
Slide 20: Highly Experienced Management Team
Highly Experienced Management Team Mr. A. Srinivas Reddy Mr. D. Ram Reddy Mr. A. Pratap Reddy Mr. N. Rajeshwar Reddy Mr. G. Hemanth Reddy Whole Time Director Managing Director Executive Chairman Joint Managing Director Whole Time Director & CFO • Post Graduate in Computer • 35 years of experience ac
Slide 21: Diversified Product Portfolio
Diversified Product Portfolio Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing consumption and • Amine Derivatives are used to make further salts and • Albeit a small and fastest growing segment applications in a Chemically mature Industry such other complex ch
Slide 22: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals 21 The company logos mentioned above are the property of their respective owners and are used here for identification purposes only
Slide 23: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Focus towards high-value derivatives and Develop new indigenous technology for specialty chemicals with an aim to move up manufacturing products leading to lowering in the value-chain with vertical integration manufacturing costs & improving
Slide 24: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Balaji Amines In MTPA Balaji Speciality Chemicals In MTPA Existing Installed Proposed Licensed Product Application Areas Product Application Areas Capacity Capacity Capacity Methyl Amine 48,000 50,000 Pharma, Agro, Dye & Rubber Pesticides, Ethylenediami
Slide 25: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities 14.96% of the Total Revenue for FY21 i.e. Rs. 185.44 Crore is generated from exports spanning across continents 24 Note: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representati
Slide 26: Awards & Certificates (1/2)
Awards & Certificates – A Testimony of our capabilities (1/2) ISO Certificate Two Star Export House ISO Certificate ISO 9001 : 2015 Certificate Certificate of Merit – CHEMEXCIL First Award – CHEMEXCIL 25
Slide 27: Awards & Certificates (2/2)
Awards & Certificates – A Testimony of our capabilities (2/2) Product Innovator of Distinguished Contribution Excellent CSR in Water the Year in Chemicals – in the Indian Chemicals Conservation 2018 Industry WHO GMP Certificate REACH Pre-Registration Niryat Shree Award by FIEO 26
Slide 28: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Long-Term Issuer Rating affirmed at ‘IND AA-’ by India Ratings and Research (Ind-Ra) .” The ratings process highlighted the following factors:- • Largest manufacturer of aliphatic amines and their derivatives in India • Increased product offtake and meani
Slide 29: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth Complex Manufacturing High Lead time Capex Heavy Business Complex manufacturing process Niche product offering with high High fixed costs, with fixed asset requiring high levels of lead time in customer approvals turns hovering in the r
Slide 30: Well positioned Business Model aimed at Sustainable growth
Well positioned Business Model aimed at Sustainable growth Value-Added Products Applicability in Solvents segment Capex towards high-value derivatives and specialty Solvents account for 80%-90% of the mass chemicals will materialize into higher revenue and enhanced margins 01 utilised in a typical p
Slide 31: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Mega Project Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Status Technology mover advantage for Products Environmental Ethylamines plant in Project cost of Rs. Capacity installed Plan
Slide 32: Balaji Speciality Chemicals – Production commenced in FY20
Balaji Speciality Chemicals – Production commenced in FY20 Manufacturing products such Undertook capex of about Rs. Received Mega project status as Ethylene Diamine, 250 crore; loan contribution of for the Project from 01 Piperazine, 02 Rs. 150 crore. Expected 03 Maharashtra State Aminoethylpiperazi
Slide 33: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage Environment Conscious New Products Identification of new products and Waste-water treatment and minimization of effluents development of latest process by adopting Industry best practices for effluent technologies treatment. Efficiency
Slide 34: Section 2: Hotel Division
SECTION 2 Hotel Division
Slide 35: Balaji Sarovar Premiere (Solapur)
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur Balaji Sarovar Premiere (Solapur) 34
Slide 36: Balaji Sarovar Premiere – At a Glance
Balaji Sarovar Premiere – At a Glance • Commenced Operations in October 2013 Hotel Balaji Sarovar Premier is the only 5 star hotel in Solapur • Invested Rs. 110 crore in the Hotel Project via mix of Debt and Equity • Tied up with Sarovar Group for the Management of the Hotel on Management Fee + Reve
Slide 37: Balaji Sarovar Premiere – Operating Matrix (FY21)
Balaji Sarovar Premiere – Operating Matrix (FY21) 129 Rooms Constitutes 0.59% Rs. 3,634 ARR of Total Revenue 23% Occupancy Rate Balaji Negligible Routine Capex incurred Sarovar RS. 830 RevPAR Premiere Renowned Five Star Hotel In the City of Solapur ARR : Average Room Revenue RevPAR: Revenue per Avai
Slide 38: Section 3: Financial Performance
SECTION 3 Financial Performance
Slide 39: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) +18% 1,318 379 244 +26% +31% 943 941 861 670 190 193 186 113 117 153 97 82 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 EBITDA Margin (%) PAT Margin (%) RoE (%) 28.8% 18.5% 27.0% 22.
Slide 40: Strong Core RoCE Profile
Strong Core RoCE Profile Particulars (Rs. Crs.) FY20 FY21 Consolidated Debt 259.57 127.07 909.92 ▪ For FY20, investments made to the tune of Rs. 112.35 crore in Consolidated Networth 668.37 subsidiary company of Balaji Amines not considered, as the Total Capital Employed 927.94 1,036.99 volume offta
Slide 41: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) FY21 FY20 YoY Total Revenue 1,239.81 929.32 33.41% Raw Material 622.69 511.17 Employee Cost 65.68 49.62 Other Expenses 212.79 178.50 EBITDA 338.65 190.03 78.21% EBITDA Margin 27.31% 20.45% Depreciation 23.34 24.18 EBIT 315.31 165.85 90
Slide 42: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Mar-21 Mar-20 EQUITY AND LIABILITIES (Rs. Crs.) Mar-21 Mar-20 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 344.34 363.40 (a) Equity Share capital 6.48 6.48 (b) Capital work-in-progress 173.27 46.27 (b) Other equity 890.93 661.16 S
Slide 43: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (in Rs. Crore) FY21 FY20 YoY Total Revenue 1,317.53 940.79 40.05% Raw Material 630.26 513.83 Employee Cost 67.82 50.99 Other Expenses 240.15 190.21 EBITDA 379.30 185.76 104.19% EBITDA Margin 28.79% 19.75% Depreciation 34.41 31.62 EBIT 344.89 154.14 123.
Slide 44: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crore) Mar-21 Mar-20 EQUITY AND LIABILITIES (Rs. Crore) Mar-21 Mar-20 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 542.92 573.00 (a) Equity Share capital 6.48 6.48 (b) Capital work-in-progress 173.28 46.26 (b) Other equity 887.91 651.
Slide 45: Consistent Dividend Payout
Consistent Dividend Payout 200% 160% 140% 130% 110% FY17 FY18 FY19 FY20 FY21 Particulars (Rs. per share) FY17 FY18 FY19 FY20 FY21 Consolidated Book Value 111.87 149.71 182.71 206.28 280.84 Consolidated EPS 25.42 34.93 36.27 32.34 73.52 Dividend 2.20 2.60 2.80 3.20 4.00 44
Slide 46: Section 4: Moving towards Growth Prospects
SECTION 4 Moving towards Growth Prospects
Slide 47: Balaji Amines Ltd - Progressing steadily
Balaji Amines Ltd - Progressing steadily Capex Phase Brownfield Expansion Subsidiary Expansion Greenfield Manufacturing of new products such Expansion and commercialization of Capex for Phase 1 of Greenfield Moving to higher margin niche as Ethylene Diamine, Piperazine and 90-acre project in MIDC Ch
Slide 48: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Strategic Growth Advisors Pvt. Ltd. Balaji Amines Ltd. CIN - U74140MH2010PTC204285 CIN - L24132MH1988PLC049387 Mr. Shogun Jain / Mr. Parin Narichania Email - info@balajiamines.com shogun.jain@sgapl.net / parin.n@sgapl.n