Bodal Chemicals Limited · NSE:BODALCHEM
Bodal Chemicals — Q3 FY23 Earnings Presentation
34 slides from Bodal Chemicals's earnings presentation, Feb 14, 2023
Slide 1: Exchange submission cover letter
By Online Submission Sec/22-23/162 Date: 14-02-2023 To, To, The General Manager, The General Manager, BSE Ltd. National Stock Exchange of India Ltd. 1st Floor, New Trading Ring, Exchange Plaza, Rotunda Building, P.J. Tower, Plot no. C/1, G Block, Dalal Street, Fort Bandra-Kurla Complex Mumbai- 400 0
Slide 2: Bodal Chemicals Limited Investor Presentation – February 2023
Bodal Chemicals Limited Investor Presentation – February 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Bodal Chemicals 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 secu
Slide 4: Q3 & 9M FY23 Highlights
Q3 & 9M FY23 Highlights
Slide 5: Business Highlights
Business Highlights 9M Rs 11,782 mn Rs 1,142 mn Rs 352 mn FY23 Revenue EBITDA PAT • Overall business performance for 9MFY23 has been weak with total revenue of Rs 11,782 mn, a de-growth of 20% on a YoY basis. Consumption of end user industries has been sluggish due to overall slowdown in the global
Slide 6: Performance Highlights
Performance Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 13.2% 8.4% 6.8% 0.8% Margin 5,684 750 201 Q3 FY23 Performance 3,180 268 24 Q3 FY22 Q3 FY23 Q3FY22 Q3FY23 Q3 FY22 Q3 FY23 12.3% 9.7% 4.8% 3.0% 9M FY23 14,681 1,806 11,782 698 Performance 1,142 352 9M FY22 9M FY23 9M FY22 9M
Slide 7: Revenue and Geographic Breakup
Performance Highlights 9M FY22 9M FY23 Revenue Rs 14,372 mn Revenue Rs 11,472 mn 5% 9% 6% 2% Basic Chemicals 2% 12% Dyestuff Revenue Breakup 12% 20% Dye Intermediates 36% 39% Caustic Soda 36% TCCA 22% Others Geographic Breakup 67% Domestc 67% 33% 33% Export * On Consolidated basis excluding other no
Slide 8: Revenue Breakup and Production Volume
Performance Highlights (Rs in mn) Basic Chemicals Dyestuff Dye Intermediates Chlor Alkali TCCA Revenue Breakup 1,326 1,339 5,129 5,222 2,292 242 4,420 1,796 174 2,580 1,958 2,083 778 404 1,282 627 248 821 18 1 Q3’22 Q3’23 9M’22 9M’23 Q3’22 Q3’23 9M’22 9M’23 Q3’22 Q3’23 9M’22 9M’23 Q3’22 Q3’23 9M’22
Slide 9: Subsidiaries Performance
Subsidiaries Performance (Rs in mn) BCTPL Sen-er Boya BCL China -100% -21% -30% Revenue 56 703 324 557 228 0 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 BCTPL Sener Boya Bodal-China Particulars (Rs in mn) 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 Sales 55.8 0.0 703.0 556.5 323.8 227.9 PBT
Slide 10: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. In Mn) Q3 FY23 Q3 FY22 Y-o-Y% 9M FY23 9M FY22 Y-o-Y% Revenue from Operation 3,157.8 5,618.1 11,704.6 14,533.3 Other Income 22.2 66.4 77.3 147.6 Total Income 3,180.0 5,684.4 -44.1% 11,781.9 14,680.8 -19.7% Raw Material Consumed 1,717.0 3,088.6 6,7
Slide 11: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (Rs. In Mn) Q3 FY23 Q3 FY22 Y-o-Y% 9M FY23 9M FY22 Y-o-Y% Revenue from Operation 3,043.9 5,521.9 11,514.4 14,191.8 Other Income 23.0 26.2 43.9 82.3 Total Income 3,066.9 5,548.1 -44.7% 11,558.4 14,274.0 -19.0% Raw Material Consumed 1,636.6 2,991.7 6,657.
Slide 12: Company Overview
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Slide 13: A Leading Chemical Manufacturer
A Leading Chemical Manufacturer 3 10 Rs. 20,680 mn Decade Old Organization Manufacturing Facilities FY22 Consolidated Revenue 5% 10% Basic Chemicals 2% Dyestuff 13% Dye Intermediates 35% 70+ 10 Chlor Alkali Distributors Across India 7 Domestic + 3 Overseas Depots 36% TCCA Others Domestc 200+ 600+ 68
Slide 14: Company Evolution
Company Evolution 1989 1993 - 1994 1997-2004 2006-2010 ▪ Incorporated as JK ▪ Acquired Unit II & Unit III ▪ 1997-Acquired two Units ▪ 2006-Listed on BSE via reverse merger Pharma at Unit II-A ▪ Name changed to Bodal ▪ 2004 -Acquired Unit I & with Dintex Dye Chem (Unit I) Chemicals Pvt. Ltd. Forward
Slide 15: Geographical Footprint
Geographical Footprint ~33% of Total revenue comes from exports 45+ Countries Global Presence North America Europe Rest of Asia Revenue Breakup India Domestic Export 100% 100% 100% 100% 100% South America 56% 59% 67% 68% 69% 44% 41% 33% 32% 31% FY18 FY19 FY20 FY21 FY22 Note : Maps not to scale. All
Slide 16: Longstanding Clientele
Longstanding Clientele Basic Chemicals Dye Intermediates Dyestuffs 70+ 600+ Distributors Across India Customers 15
Slide 17: Experienced Board & Management Team
Experienced Board & Management Team Mr. Suresh J. Patel Mr. Bhavin S. Patel Mr. Ankit S. Patel Mr. Mayur Padhya Chairman & MD Executive Director Executive Director Chief Financial Officer Experience : 35 years Experience : 19 years Experience : 15 years Experience : 27 years Background : Background
Slide 18: Awards & Certifications
Awards & Certifications Awards Certificates 2005-06 2016-17 ▪ BCL has ISO 9001:2015 and ISO 14001:2015 certifications ▪ Received the prestigious Chemexcil Gold Award for ▪ Highest Self Manufacturing Turnover for Domestic and for their production of Dye intermediates & Dyestuffs. outstanding performa
Slide 19: Product Overview
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Slide 20: Diversified Product Portfolio
Diversified Product Portfolio Existing Products New Products Additions Basic Chemicals Dye Intermediates Dyestuffs Chlor Alkali Sulphuric Acid* Benzene Derivative ▪ Sulphuric Acid ▪ Vinyl Sulphone & ▪ Reactive Dyes ▪ Caustic soda ▪ Sulphuric Acid ▪ MCB ▪ Chlorosulphonic Acid Derivatives ▪ Acid Dyes
Slide 21: Manufacturing Value Chain
Manufacturing Value Chain Input Materials Basic Chemicals Dye Intermediates Dyestuffs Trion Chemicals End Use Industry Water Vinyl Sulphone + Derivatives Reactive Dyes Textiles Para Nitro Aniline Ice H Acid Beta Naphthol Steam DASA Sulphuric Acid Power Acid Dyes Leather FC Acid Sulphur Chloro Sulpho
Slide 22: Manufacturing Facilities
Manufacturing Facilities Total 10 10 Depots In-house R&D Lab Total Employees Manufacturing Facilities (Exclusive Distribution Warehouse) ▪ 3 – Ahmedabad, Gujarat ▪ 1 - Ahmedabad, Gujarat ▪ Domestic 2,000+ ▪ 7 - India ▪ 4 - Vadodara, Gujarat ▪ 2 - Vadodara, Gujarat ▪ Contract Labours ~1,500 ▪ 1 - Chi
Slide 23: Our Subsidiaries
Our Subsidiaries (Rs in mn) Company FY22 Location Stake Details Name Revenue Bodal Chemicals Trading Gujarat, India 100% Rs 67 mn Trading and Marketing subsidiary Private Limited Bodal Chemicals Trading Trading & Marketing subsidiary for China and adjacent China 100% Rs 356 mn Shijiazhuang Limited c
Slide 24: Key Growth Drivers
Key Growth Drivers Dyestuff Expansion TCCA Division Vinyl Sulphone at SPS Turkish entity Sener Boya Dyestuffs capacity of 35,000 Acquired 100% stake in Trion Vinyl Sulphone plant of 6,000 Acquired ~ 100% stake to MTPA will be ramped-up Chemicals and amalgamated with MTPA capacity at SPS has been str
Slide 25: Next Level of Growth
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Slide 26: Capex To Drive Next Level Of Growth
Capex To Drive Next Level Of Growth Greenfield Saykha Project Key Synergies Project Location ▪ Saykha, Gujarat ▪ Strategic Location Products ▪ Benzene Downstream ~63,000 MTPA + Sulphuric Acid ~3,40,000 MTPA ▪ Diversified Product Portfolio ▪ ~Rs 2,200 mn Benzene + ~ Rs 1,250 mn Sulphuric Acid + ~Rs 6
Slide 27: Moving Up The Value Chain With New Chemistries
Moving Up The Value Chain With New Chemistries Sulphur Chain Benzene Chain Chlor Alkali Chain Chlorine Oleum 23% - 65% PNCB Salt & Water Electrolysis Caustic Soda Solution (Power) 2,4 DNCB Sulphur Liquid SO3 ONCB Sulphuric Acid Benzene MCB Hydrogen MNCB • Sulphuric Acid Captive Consumption <10% Chlo
Slide 28: Capex To Be Completed in FY24
Capex To Be Completed in FY24 Revenue Visibility Chemical Segments FY22 FY23 FY24 Basic Chemicals 10% ✓ ✓ Dye Intermediates 36% ✓ ✓ Dyestuffs 35% ✓ ✓ Trichloroisocyanuric Acid (TCCA) 2% ✓ ✓ Caustic Soda 13% ✓ ✓ Sulphuric Acid & Derivatives (New additional capacity) - - ✓* Benzene Downstream - - ✓ Ot
Slide 29: Way Forward
Way Forward Lower cost of production Capacity rampup Economies of scale New client penetration Long term relationship with customers Ongoing internal efficiencies Superior quality Our Edge Rigorous integration 3+ decades of experience New greenfield expansion Diverse client base Higher focus on B2C
Slide 30: Financial Highlights
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Slide 31: Financial Highlights
Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) PAT (Rs. In Mn) 20,680 2,495 2,369 1,413 2,039 1,219 14,369 13,852 987 11,517 12,424 1,481 860 1,198 398 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA Margin (%) PAT Margin (%) 17.0% 16.6% 10.7% 9.9% 10.7
Slide 32: Key Ratios
Key Ratios Net Debt/ Equity (x) Return on Equity(%) Trending lower due to increasing 0.53 17.5% capital expenditure 17.0% 0.33 9.2% 9.3% 0.17 0.19 0.12 4.1% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Return on Capital Employed (%) Net Working Capital Days Trending lower due to increasing capi
Slide 33: Segmental Performance
Segmental Performance Basic Chemical Dyestuffs Dye Intermediates Total Revenue (Rs in mn) Revenue Breakup 1,955 6,551 6,544 18,915 5,895 6,034 1,601 5,324 1,282 1,269 4,808 4,618 4,589 13,940 1,149 3,993 11,329 12,377 11,477 3,533 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21
Slide 34: Thank You
Thank You Contact Information Company: Investor Relation Advisors: Bodal Chemicals Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – : L24110GJ1986PLC009003 CIN - U74140MH2010PTC204285 Mr. Mayur Padhya Mr. Shrikant Sangani / Ms. Pankti Majithia Chief Financial Officer Email - shrikant.sangani@sgapl.net