Balaji Amines Limited · NSE:BALAMINES
Balaji Amines — Q2 FY2023 Earnings Presentation
46 slides from Balaji Amines's earnings presentation, Oct 28, 2022
Slide 1: Exchange filing cover letter for investor presentation
28th October, 2022 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, Bandra-Kurla Complex, Dalal Street, Mumbai - 400 001. Band
Slide 2: Investor Presentation October 2022
Investor Presentation October 2022
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: Q2FY23: Financial Highlights
Q2FY23 : Financial Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) EBITDA & PAT Margin 18.95% 31.06% 34.71% 674.86 219.48 148.04 33% 630.41 28% Consolidated 529.99 175.96 118.64 25% 22% 134.26 88.07 19% 17% Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY2
Slide 5: H1FY23: Financial Highlights
H1FY23 : Financial Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (Rs. Crore) EBITDA & PAT Margin 32.72% 41.96% 43.79% 1,305.27 395.44 266.68 28% 30% Consolidated 983.49 278.55 185.46 20% 19% H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 Revenue (Rs. Crore) EBITDA (Rs. Crore) PAT (R
Slide 6: Q2FY23 Consolidated Performance Highlights
Q2FY23 Consolidated Performance Highlights Revenue from Operations for Q2FY23 stood at ₹ 630.41 crore, up by 18.95%, as compared to ₹ 529.99 crore in Q2FY22. Total volumes stood at 28,498 MT for Q2FY23 as against 28,360 MT in Q2FY22. For Q2FY23 • Amines volumes stood at 6,310 MT • Amines Derivatives
Slide 7: Phase-2 Expansion Plans at our 90-acre Greenfield Project (Unit IV)
Phase-2 Expansion Plans at our 90-acre Greenfield Project (Unit IV) N-Butylamine Acetonitrile Methylamines Dimethyl Formamide We plan to undertake capex for a new Post the process of de-bottlenecking Market Leader in Methylamines Market Leader in Dimethyl Formamide product, namely N-Butylami
Slide 8: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) Q2FY23 Q2FY22 Y-o-Y H1FY23 H1FY22 Y-o-Y Total Revenue 451.98 440.39 2.63% 969.45 836.06 15.95% Raw Material 260.59 241.86 538.92 439.76 Employee expense 20.52 18.99 45.36 37.09 Other expenses 81.71 77.49 163.45 140.23 EBITDA 89.17 102.
Slide 9: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Sep – 22 Mar-22 EQUITY AND LIABILITIES (Rs. Crs.) Sep – 22 Mar-22 (1) NON-CURRENT ASSETS EQUITY (a) Property, plant & equipment 605.05 495.03 (a) Equity Share capital 6.48 6.48 (b) Other equity 1319.87 1,185.91 (b) Capital work-in-progress 34.83 1
Slide 10: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow Statement for twelve months ended (in Rs. Crore) Sep - 22 Sep - 21 Profit before Tax 205.21 202.48 Adjustment for Non-Operating Items -13.00 -12.10 Operating Profit before Working Capital Changes 218.21 214.59 Changes in Working Capital -109.51 -196.03 Cash G
Slide 11: Consolidated Statement of Profit & Loss
Consolidated Statement of Profit & Loss Particulars (in Rs. Crore) Q2FY23 Q2FY22 Y-o-Y H1FY23 H1FY22 Y-o-Y Total Revenue 630.41 529.99 18.95% 1305.27 983.49 32.72% Raw Material 325.40 279.32 644.64 498.99 Employee expense 21.27 19.65 47.49 38.31 Other expenses 107.78 96.76 217.70 167.63 EBITDA 175.9
Slide 12: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crs.) Sep-22 Mar-22 EQUITY AND LIABILITIES (Rs. Crs.) Sep-22 Mar-22 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 784.10 681.18 (b) Other equity 1,437.98 1,243.37 (b) Capital work-in-progress 34.83 14
Slide 13: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement for twelve months ended (in Rs. Crore) Sep - 22 Sep -21 Profit before Tax 366.82 250.53 Adjustment for Non-Operating Items -25.36 -26.12 Operating Profit before Working Capital Changes 392.19 276.66 Changes in Working Capital -248.47 -247.73 Cash
Slide 14: About Us
About Us
Slide 15: 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 The consumable nature of demand and the is $4.9 billion. Globally, the Amine industry is oligopolistic nature of the industry, results in oligopolistic with two-three producers a stron
Slide 16: Balaji Amines Ltd – A Leading player in Aliphatic Amines in India
Balaji Amines Ltd – A Leading player in Aliphatic Amines in India State-of-the-art Forward integrated manufacturing suite of products Largest manufacturer of Aliphatic Amines in facilities fully equipped with latest DCS 30+ Product Downstream products added based on strength of amine manufacturing w
Slide 17: 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 16
Slide 18: 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 19: Diversified Product Portfolio
Diversified Product Portfolio Particulars Amines Amine Derivatives Specialty & Other Chemicals • Aliphatic Amines find increasing • Amine Derivatives are used to make consumption and applications in a further salts and other complex chemical • Albeit a small and fastest growing Chemically mature Ind
Slide 20: Clientele
Clientele Amines Amine Derivatives Specialty & Other Chemicals 19
Slide 21: 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 22: Key Products (Current & Proposed) in Portfolio
Key Products (Current & Proposed) in Portfolio Product Existing Installed Capacity Proposed Capacity Application Areas Methyl Amine 48,000 40,000 Pharma, Agro, Dye & Rubber Ethyl Amine 22,500 - Pharma, Agro, Dye & Rubber DMAHCL / DMAC 31,000 7,500 Pharma Choline Chloride 60% (Corn Cob) 6,000 - Anima
Slide 23: We are Global suppliers – a significant validation of our Capabilities
We are Global suppliers – a significant validation of our Capabilities • UK • Japan • US • Turkey • Argentina • Finland • Canada • Indonesia • Israel • Switzerland • India • Sri Lanka • Pakistan • Russia • Bangladesh • Malaysia • Oman • Singapore • Germany • Bahrein • Italy • Jordan • Egypt • Guatem
Slide 24: Awards & Certificates – A Testimony of our capabilities
Awards & Certificates – A Testimony of our capabilities ISO Certificate Two Star Export House ISO Certificate ISO 9001 : 2015 Certificate Certificate of Merit - CHEMEXCIL First Award - CHEMEXCIL 23
Slide 25: Awards & Certificates – A Testimony of our capabilities
Awards & Certificates – A Testimony of our capabilities Product Innovator of the Year in Chemicals – 2018 Distinguished Contribution in the Indian Chemicals Industry WHO GMP Niryat Shree Award Excellent CSR in Water REACH Pre- Certificate by FIEO Conservation Registration 24
Slide 26: We are Growing…Sustainably and Consistently
We are Growing…Sustainably and Consistently “Long-Term Issuer Rating upgraded to ‘IND AA’ from ‘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 • Sole producer for a f
Slide 27: High entry barrier Business – Paving way for Sustainable growth
High entry barrier Business – Paving way for Sustainable growth 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 range of 1.5- technological know-how. Efficient 2x. Optimum
Slide 28: 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 29: Greenfield Project to fuel growth and add Revenue Visibility
Greenfield Project to fuel growth and add Revenue Visibility Strategically Project Accorded Project Capex Product Profile Indigenous New Products = 1st High Demand Located Plant Mega Project Status Technology mover advantage for Products Environmental In Phase-1 of Project cost of Rs. New Acetonitri
Slide 30: Balaji Speciality Chemicals – Production commenced in FY20
Balaji Speciality Chemicals – Production commenced in FY20 Manufacturing products such as Ethylene Diamine (EDA), Piperazine Anhydrous (PIP) , Di Ethylene Tri 01 Amine (DETA), Amino Ethyl Ethanol Amines (AEEA) 04 BAL owns 55% in subsidiary Balaji Speciality and Amino Ethyl Piperazine (AEP) which are
Slide 31: R&D led Investments to provide significant early mover advantage
R&D led Investments to provide significant early mover advantage New Products Optimization Integration Continuous efforts to optimize Identification of new utilization of energy, utilities & Backward and forward products and development of raw materials consumption and integration of products to lat
Slide 32: Hotel Division
Hotel Division
Slide 33: Balaji Sarovar Premiere – Best in class Business Hotel in Solapur
Balaji Sarovar Premiere – Best in class Business Hotel in Solapur • 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 Ho
Slide 34: Balaji Sarovar Premiere – Operating Matrix
Balaji Sarovar Premiere – Operating Matrix Constitutes 129 Rooms 0.84% of Negligible Routine Capex incurred Rs. 3,666 ARR Total Revenue 47% RS. 1,705 Occupancy Rate RevPAR Renowned Five Star Hotel In the City of Solapur For FY22 ARR : Average Room Revenue RevPAR: Revenue per Available Room 33
Slide 35: Financial Performance
Financial Performance
Slide 36: Consolidated Performance Highlights
Consolidated Performance Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs) PAT (Rs. Crs.) 2,328 637 418 +28% +35% +39% 1,318 379 244 861 943 941 190 193 186 113 117 97 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 EBITDA Margin (%) PAT Margin (%) RoE (%) 28.8% 27.4% 18.5% 1
Slide 37: Strong Core ROCE Profile
Strong Core ROCE Profile Particulars (Rs. Crs.) FY20 FY21 FY22 Consolidated Debt 259.57 127.07 100.64 For FY20, investments made to the tune of Rs. 112.35 crore in Consolidated Networth 668.37 909.92 1,314.86 subsidiary company of Balaji Amines not considered, as the volume Total Capital Employed
Slide 38: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (in Rs. Crore) FY22 FY21 YoY Total Revenue 2,327.60 1,317.53 76.66% Raw Material 1,222.53 630.26 Employee Cost 91.54 67.82 Other Expenses 376.14 240.15 EBITDA 637.39 379.30 68.04% EBITDA Margin 27.38% 28.79% Depreciation 42.00 34.41 EBIT 595.39 344.89 7
Slide 39: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement ASSETS (Rs. Crs.) Mar-22 Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) Mar-22 Mar-21 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 681.18 542.92 (b) Other equity 1,243.37 887.91 (b) Capital work-in-progress 140.94 173
Slide 40: Standalone Statement of Profit & Loss
Standalone Statement of Profit & Loss Particulars (in Rs. Crore) FY22 FY21 YoY Total Revenue 1,930.19 1,239.81 55.68% Raw Material 1,073.07 622.69 Employee Cost 88.73 65.68 Other Expenses 309.04 212.79 EBITDA 459.35 338.65 35.64% EBITDA Margin 23.80% 27.31% Depreciation 29.17 23.34 EBIT 430.18 315.3
Slide 41: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement ASSETS (Rs. Crs.) Mar-22 Mar-21 EQUITY AND LIABILITIES (Rs. Crs.) Mar-22 Mar-21 (1) NON-CURRENT ASSETS EQUITY (a) Equity Share capital 6.48 6.48 (a) Property, plant & equipment 495.03 344.34 (b) Other equity 1,185.91 890.93 (b) Capital work-in-progress 140.93 173.2
Slide 42: Consistent Dividend Payout
Consistent Dividend Payout 300% 200% 160% 130% 140% FY18 FY19 FY20 FY21 FY22 Particulars (Rs. per share) FY18 FY19 FY20 FY21 FY22 Consolidated Book Value 149.71 182.71 206.28 280.83 405.81 Consolidated EPS 34.93 36.27 32.34 73.52 113.71 Dividend 2.60 2.80 3.20 4.00 6.00 41
Slide 43: Moving towards Growth Prospects
Moving towards Growth Prospects
Slide 44: Balaji Amines Ltd - Progressing steadily
Balaji Amines Ltd - Progressing steadily Increased capacity Ramp up in production Greenfield Capex Phase - 2 utilization & capacity at Subsidiary Plant additions of Phase – 1 capex Expansion and commercialization of Ramp up in manufacturing of 90-acre project in MIDC Chincholi to Higher capacity uti
Slide 45: ESG & CSR Initiatives
ESG & CSR Initiatives Distribution of RNA Covid -19 testing machine to Dr. Babasaheb Distribution of highflow O2 therapy machine – 2 and bipap machine 1 Ambedkar University, Osmanabad to ESIS Hospital, Solapur on 20.01.2022 Donated Rs. 1 Crore to CM Relief Fund towards Set-up of ME- Electrical Crema
Slide 46: Thank You
Thank You For further information, please contact: Company : Investor Relations Advisors : Orient Capital (a division of Link Group) Mr. Rasika Sawant Balaji Amines Ltd. +91 9594457518 CIN - L24132MH1988PLC049387 rasika.sawant@linkintime.co.in Email - cs@balajiamines.com Ms. Rajesh Agrawal +91 99674