Tatva Chintan Pharma Chem Limited · NSE:TATVA
Tatva Chintan Pharma Chem — Q4 FY24 Earnings Presentation
39 slides from Tatva Chintan Pharma Chem's earnings presentation, May 3, 2024
Slide 1: Exchange filing cover letter
Date: 03 May 2024 Ref. No.: TCPCL/SEC/2024-25/00012 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, Ban
Slide 2: Investor Presentation Q4FY24 & FY24
Investor Presentation Tatva Chintan Pharma Chem Limited (TCPCL) Q4FY24 & FY24 03 May 2024
Slide 3: Contents
Contents 01 02 03 04 Quarter & twelve-month 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: Consolidated Financial Performance
Consolidated Financial Performance 3
Slide 5: Q4FY24 & FY24: Financial Result highlights
Q4FY24 & FY24: Financial Result highlights Q4FY24 HIGHLIGHTS EBIDTA (Excl. Other Income & PAT & PAT Margin 1 (In ₹ Mn, %) EPS (In ₹) Revenue from Operations 1 (In ₹ Mn) 9.00 EBIDTA Margin 1 (In ₹ Mn, %) 180 18.0% 8.00 15.9% 13.6% 7.65 13.1% 7.00 15. 0% 13.1% 180 160 16.0% 140 14.0% 160 9.8% 6.00 1,2
Slide 6: Q4FY24 & FY24: Consolidated P&L
Q4FY24 & FY24 : Consolidated P&L Q4 Q4 YoY Q3 QoQ YoY Particulars (₹ Mn) FY24 FY23 FY24 FY23 (%) FY24 (%) (%) Revenue from Operation 982.66 1,245.11 -21.08% 842.06 16.70% 3,935.04 4,236.12 -7.11% Total Income 1,027.94 1,253.56 -18.00% 854.16 20.35% 4,010.13 4,293.56 -6.60% EBITDA (Excl. Other Income
Slide 7: Q4FY24 & FY24: Operational highlights
Q4FY24 & FY24 : Operational highlights OPERATING REVENUE SPLIT (IN %) Q4FY24 FY24 PTC 28% PTC 27% SDA 41% SDA 42% ELECTROLYTE SALTS 1% ELECTROLYTE SALTS 1% PASC 29% PASC 29% OTHERS 1% OTHERS 1% Tatva Chintan Pharma Chem Limited 6
Slide 8: Chairman & MD's Comments on Results
Chairman & MD’s Comments on Results • During Q4FY24, the company reported revenue from operations of ₹983 million, decline by 21% YoY. EBITDA during the quarter was at ₹156 million, “ decline by 4% YoY. EBIDTA margins were at 15.9% v/s 13.1% in Q4FY23. We continue to grow organically by • During FY2
Slide 9: 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 90 57 75 14% 17% 14% 17% 22% 11% 8% 21% 22% 25% 52 4,336 14 4,236 3,935 3,004 1,082 15% 8% 2,632 14% 304 959 682 664 CAGR* CAGR* 6
Slide 10: Consolidated Statement of Profit & Loss
Consolidated Statement of Profit & Loss As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 31 March 2022 31 March 2023 31 March 2024 Audited Audited Audited Audited Audited Audited Income Revenue from operations 2,063.07 2,632.39 3,003.59 4,336.47 4,236.12 3,935.04 Total Income 2,068
Slide 11: Consolidated Statement of Balance Sheet
Consolidated Statement of Balance Sheet As at Particulars (₹ Mn) 31 March 2019 31 March 2020 31 March 2021 31 March 2022 31 March 2023 31 March 2024 Audited Audited Audited Audited Audited Audited Assets Fixed Assets 665.75 1,110.60 1,203.51 1,592.96 1,957.71 4,265.35 Capital work-in-progress 60.36
Slide 12: TATVA CHINTAN at Glance
TATVA CHINTAN at Glance 11
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 – FY24 1996 • Plants located at Ankleshwar and Dahej SEZ, Gujarat with an existing combined installed capacit
Slide 14: Product Categories
Product Categories 13
Slide 15: Phase Transfer Catalyst (PTC) – a Catalyst with Innumerable Benefits
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 environme
Slide 16: 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 17: Electrolysis – a better and greener way of producing SDAs
Electrolysis – a better and greener way of producing SDAs ABOUT ELECTROLYSIS BENEFITS • TATVA 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 18: 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 19: Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC)
Pharmaceuticals and Agrochemicals Intermediates and other Specialty Chemicals (PASC) – WHICH PRODUCTS ARE END USER INDUSTRY TATVA CHINTAN’S TATVA is the largest MANUFACTURED? APPLICATION POSITION IN PASC producer of Glymes in India and third • Various pharmaceutical and agrochemical products such as
Slide 20: Continuous Flow Chemistry – sophisticated method with analytical expertise
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 20
Slide 21: 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 1,655 customers across wide spectrum of Chemical Industries which ensures a 1,432 1,335 1,277 sustainable business model.
Slide 22: Leading Sustainable practices coupled with cutting edge technology
Leading Sustainable practices coupled with cutting edge technology 21
Slide 23: Integrated and Modern Manufacturing Facility
Integrated and Modern Manufacturing Facility ANKLESHWAR DAHEJ SEZ • Both the plants are in-close proximity to • Manufacturing facility started in 1996 • Manufacturing started in 2017 Hazira port. • Converted into a ‘zero liquid effluent discharge’ facility from • Sophisticated quality control lab eq
Slide 24: 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.) 300 Scientific and Industrial Research (“DSIR”), Government of India. • Equipped with glass assemblies, continuous flow reactors, and
Slide 25: …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 26: Expansive international presence with Marquee clientele
Expansive international presence with Marquee clientele 25
Slide 27: 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 exports products to over 25+ countries viz. USA, China, Germany, Japan, South Africa and UK. • Subsidiaries facilitates overseas operations:- • Tatva Chint
Slide 28: Why TATVA CHINTAN
Why TATVA CHINTAN 27
Slide 29: Investment Rationale
Investment Rationale Presence in niche Track record of Wide basket of Continuous focus High industry Capex to boost the specialty chemicals developing wide products are used in on R&D and in house barriers as new capacities and pave space with limited product basket varied industries developed entra
Slide 30: Industry Outlook
Industry Outlook 29
Slide 31: 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 Advantage vs development: Manufacturers: CHINA 39% China du
Slide 32: Global Chemical Industry
Global Chemical Industry GLOBAL PTC SDA CHEMICAL Commodity Chemicals INDUSTRY • Basic Chemicals 1,190 1.19 MARKET SIZE • Manufactured In large volumes Mkt Size 2022 (USD Mn) Mkt Size 2022 (USD bn) • Mkt Size USD 3,700bn • ~Expected 4% CAGR 1,640 5.5% 1.65 5.6% 5,030 Speciality Chemicals Mkt Size 202
Slide 33: Our Business
Our Business 32
Slide 34: 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 • Listed on Company manufacturing capacity at of ₹ 500.00 million Manufacturing Facility Tatva Chintan Europe BSE and NSE our Ankleshwar BV, a wholly owne
Slide 35: 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 MA N A GIN G D IRE C T O R WH O L E T IME D IRE C T O R WH O L E T IME D IRE C T O R IN D E PE N D E NT D IRE C T O R IN D
Slide 36: Shareholder Information
Shareholder Information SHAREHOLDING PATTERN- March 2024 (IN %) NSE Ticker TATVA BSE Ticker 543321 IPO Listing Date 29 July 2021 Share Price (₹)^ 1,079 PROMOTER 72.02% Market Cap (₹ Mn)^ 25,231 MF 12.84% % Free Float^ 27.98% March PUBLIC 11.10% Free float market cap (₹ Mn)^ 7,060 2024 Shares outstan
Slide 37: 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 2,072.8 ISSUE SIZE ₹5,000 MILLION Capex at Dahej Plant Of: ₹1471 mn AT ₹1,083/SHARE 1,471.0 C
Slide 38: 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 39: Thank You
MAY 2024 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 CIN: L24232GJ1996PLC029894 Krishna.pate
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