AARTI Industries Ltd · NSE:AARTIIND
AARTI Industries — H1 FY2019 Earnings Presentation
25 slides from AARTI Industries's earnings presentation, Nov 2, 2018
Slide 1: Exchange filing cover letter
@lffii;r*=. Ref. No.: AIL/B-36 l 2Ol8 l 847 November 21 2OL8 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE LTD. National Stock Exchange of Phir oze Jeej eebhoy Towers, India Limited Dalal Street, "Exchange Plaza" , Plot No. C I l, Mumbai - 40O O01. G Block Banclra-Kurla C
Slide 2: Q2 & H1FY19 Results Presentation
Q2 & H1FY19 Results Presentation
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not
Slide 4: Agenda
Agenda 1 | At a glance 2 | Quarterly performance 3 | 5 year financial performance 3
Slide 5: Company Profile
Company Profile Established in 1975 & listed on Indian stock exchange in1992 Chemicals Polymer & additives Five of six Promoter Directors have engineering background. Three of four Founder Promoters are chemical engineers from Agrochemicals & intermediates ICT (formerly known as UDCT) Dyes
Slide 6: Profile
Profile Aarti is one of the Globally ranks at 1st – Promoters are First Generation Technocrats Highly integrated operations Present in niche most 4th position for 75% • 5 of 6 Promoter Directors are engineers. 3 of 4 Founder • Cost‐efficient processes chemistry spaces. competitive of its portfolio.
Slide 7: Transformation Journey
Transformation Journey Hitting right milestones at right time • Merged Salvigor Labs, producers of DMS and Sulphuric Acid and their Set up additional downstream products into unit at Vapi to Set up Alchemie Aarti. manufacture (Europe) Ltd. a Merged Alchemie Aarti Organics NCB with • Change of name f
Slide 8: Transformation Journey
Transformation Journey • Commenced calcium chloride facility and 2nd Phase of PDA facility at Jhagadia • Crossed Rs. 1,000 cr total • Commenced multipurpose Ethylation unit at income. Dahej SEZ, Gujarat • Merged Surfactants • Crossed Rs. 2,900 cr Total • Crossed Rs. 1,500 cr total • Operationalized
Slide 9: What differentiates us
What differentiates us Our product mix comprises more than 125 research‐led Most chemical companies focus on a handful of products products Most chemical companies focus on a fragmented standalone We have focused on the manufacture of integrated derivatives product mix Most chemical companies serve
Slide 10: Global Partner of Choice
Global Partner of Choice Aarti Industries is a rare instance of a global speciality chemicals company that combines process chemistry competence with scale‐up engineering competence Vendor servicing to Make‐to‐stock to Partner of Choice robust Make‐to‐order To Transform Knowledge from arbitrage Over
Slide 11: Multi-year deals
Multi-year deals Rapidly changing global environment where global industrial players graduating from Vendor Strategic Conventional Cost Knowledge Short‐Term Long‐Term Stability Enlistments Partnerships Arbitrage Model Arbitrage Opportunism and Sustainability Relationship‐driven approach where we are
Slide 12: Key Investment Theme
Key Investment Theme Clear Path to Value Creation Balanced capacity model: Economies of Scale and Operational Efficiency: • Agile operations Quality and • Highly Backward enable higher environment Integrated and gainful customization and Global Partner polices mapped to usage of by‐products, value m
Slide 13: Agenda
Agenda 1 | At a glance 2 | Quarterly performance 3 | 5 year financial performance 12
Slide 14: Chairman’s Message
Chairman’s Message Commenting on the performance for Q2 & H1 FY19, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Ltd. said, “During Q2, we have delivered the strongest performance in our history – reporting 46% growth in revenues, 51% growth in EBITDA and 57% in profit after tax. This has a
Slide 15: Q2 FY19 Highlights
Q2 FY19 Highlights Financial Corporate Rupee volatility impact – The Board of Directors of the Company has inter alia passed an enabling resolution for raising of funds, for – As part of its strategy to safeguard business raising of funds by way of issue of equity shares or any against currency
Slide 16: Q2 & H1FY19 P&L (Standalone)
Q2 & H1FY19 P&L (Standalone) Y‐o‐Y Q‐o‐Q Particulars H1 FY19 H1 FY18 Growth Q2 FY19 Q2 FY18 Growth (Rs. Crore) (%) (%) Gross Income from 2,378.00 1,679.70 41.6 1,299.52 887.89 46.4 Operations Exports 867.45 774.0 12.1 471.37 412.63 14.2 • Strong volume growth, additional benefit from the expanding %
Slide 17: Q2 & H1FY19 – Speciality Chemicals (Standalone)
Q2 & H1FY19 – Speciality Chemicals (Standalone) Revenue 1888 1317 1039 691 Volume growth of 10% Higher capacity utilization across various units Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Continuing geographical shift in production to India leading to higher demand even from domestic end‐users EBIT 358 2
Slide 18: Q2 & H1FY19 – Pharma & HPC (Standalone)
Q2 & H1FY19– Pharma & HPC (Standalone) Continuing expansion in margins Pharmaceuticals Revenue Pharmaceuticals EBIT Expanding business volumes across markets and operating 342 55 leverage – expected to sustain momentum Since major fixed costs already built‐in, incremental volumes 243 192 29 33
Slide 19: Agenda
Agenda 1 | At a glance 2 | Quarterly performance 3 | 5 year financial performance 18
Slide 20: Revenue Performance (Consolidated)
Revenue Performance (Consolidated) Operating revenues have Revenue Export Deep engagement with grown on the back of strong CAGR: 9.7% global customers in Speciality volume growth in key 1,523 1,596 chemicals and pharma. In 1,449 1,431 business segments and 1,281 addition, part of domestic better pro
Slide 21: EBIT Performance (Consolidated)
EBIT Performance (Consolidated) Higher growth relative to revenue EBIT highlights value addition CAGR: 15.9% 660 615 delivered by AIL 542 447 366 FY14 FY15 FY16 FY17 FY18 Speciality Chemicals Pharmacuticals Home & Personal Care CAGR: 14% CAGR: 27.4% 566 578 504 79 4 408 3 3 333 48 36 39 30 1 (0) FY1
Slide 22: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) EBITDA & Net Profit (Rs. Cr.) 316 331 257 206 162 401 466 572 653 707 FY14 FY15 FY16 FY17 FY18 EBITDA Net Profit Earnings Per Share (EPS) 38.45 40.65 30.83 23.24 18.34 FY14 FY15 FY16 FY17 FY18 21
Slide 23: About Us
About Us Aarti Industries (AIL) is one of the most competitive benzene‐based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale‐up engineering competence (asset utilization).
Slide 24: Contact Us
Contact Us For further information please log on to www.aarti‐industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: info@aarti‐industries.com Shiv Muttoo / Varun Divadkar CDR India Tel: +91 22 6645 1207/ 97637 02204 Email: shiv@cdr‐india.
Slide 25: Thank You
AARTI INDUSTRIES LIMITED I —| PRODUCTIVITY WITH SAFETY Is OUR MOTTO | Usha H MA WA SAR ea S ee a \ AL ime = 7 * Ni Thank You