Meghmani Organics Limited · NSE:MOL
Meghmani Organics — Q4 FY19 Earnings Presentation
33 slides from Meghmani Organics's earnings presentation, May 2019
Slide 1: Meghmani Organics Limited Q4 FY19 Results Presentation
Meghmani Organics Limited (MOL) Q4 FY19 Results Presentation May 2019
Slide 2: Disclaimer
Disclaimer The presentation has been prepared by Meghmani Organics Limited (“MOL” or the “Company”) solely for information purposes and does not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall f
Slide 3: Discussion Summary
Discussion Summary Q4 FY19 Results Update About Us Business Overview Strategy & Outlook Financial Overview 3
Slide 4: Q4 & FY19 Results: Key Highlights
Q4 & FY19 Results: Key Highlights Q4 FY19 YoY Analysis Rs Mn Revenues & Gross Margin EBITDA & EBITDA Margin PAT & PAT Margin* 54.6% 50.6% 28.5% 25.5% 10.7% 11.9% 5,577 1,587 665 4,710 1,200 18 % 32 % 502 33 % Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 FY19 YoY Analysis 49.5% 50.5% 26.1% 23.9% 1
Slide 5: Q4 & FY19 Results: Revenue Analysis
Q4 & FY19 Results: Revenue Analysis Q4 FY19 YoY Analysis Rs Mn Segment wise Breakup Region wise Breakup 42% 34% 53% 47% 28% 40% 47% 53% 30% 26% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Pigment Agro Chemical Basic Chemical Export Domestic FY19 YoY Analysis 33% 34% 50% 47% 35% 37% 50% 53% 32% 29% FY18 FY19 FY1
Slide 6: Q4 & FY19 Results: Pigments Business
Q4 & FY19 Results: Pigments Business Q4 FY19 YoY Analysis Production & Utilisation (%) Dispatch / Sales (MT) Net Sales (Rs Mn) & Exports EBITDA (Rs Mn) & Margin (%) 90% 14.8 81 % 76% 13.3 65% % 6,000 350 % 15.0% 9,000 5,500 4,881 8,000 7,288 50.0% 5,000 1,463 1,464 300 10.0% 4,500 3,828 1,500 250 21
Slide 7: Q4 & FY19 Results: Agrochemicals Business
Q4 & FY19 Results: Agrochemicals Business Q4 FY19 YoY Analysis Production & Utilisation (%) Dispatch / Sales (MT) Net Sales (Rs Mn) & Exports EBITDA (Rs Mn) & Margin (%) 79 % 79 % 25.6 57% 75% 7,800 900 5.7% % 30.0% 5,000 6,800 50.0% 4,178 2,305 800 10.0% 5,800 5,300 4,500 2,500 700 591 -10.0% 4,000
Slide 8: Q4 & FY19 Results: Basic Chemicals Business
Q4 & FY19 Results: Basic Chemicals Business Q4 FY19 YoY Analysis Production & Utilisation (%) Dispatch / Sales (MT) Net Sales (Rs Mn) & Exports EBITDA (Rs Mn) & Margin (%) 47.0 46.0 90% 92% 2% 4% 62,000 1,400 % % 50.0% 51,000 80.0% 41,144 42,425 1,994 1,200 45.0% 52,000 60.0% 1,935 936 40.0% 42,052
Slide 9: Consolidated Profit & Loss Statement
Q4 & FY19 Results: Consolidated Profit & Loss Statement Particulars (Rs. in Mn) Q4 FY19 Q4 FY18 YoY% FY19 FY18 YoY% Revenue from Operations 5,577 4,710 18.4% 20,880 18,033 15.8% COGS 2,756 2,138 28.9% 10,330 9,103 13.5% Gross Profit 2,822 2,572 9.7% 10,550 8,930 18.1% Gross Margins % 50.6% 54.6% -40
Slide 10: Consolidated Balance Sheet Statement
Q4 & FY19 Results: Consolidated Balance Sheet Statement Particulars (Rs. in Mn.) Mar 19 Mar 18 Particulars (Rs. in Mn.) Mar 19 Mar 18 Equity & Liabilities Assets Share Capital 254 254 Property,Plant & Equipment 7,250 7,793 Reserves & Surplus 9,782 8,451 Capital WIP 5,127 747 Shareholder's Funds 10,0
Slide 11: Discussion Summary: About Us
Discussion Summary Q4 FY19 Results Update About Us Business Overview Strategy & Outlook Financial Overview 11
Slide 12: Well-Established Presence Across International & Domestic Markets
Well-Established Presence Across International & Domestic Markets Presence in more than 75 countries, serving over 400 customers across all three business segments Global distribution network with subsidiaries in the US, Dubai and a representative office in China 4 Warehouses in Turkey, Russia
Slide 13: Leading Diversified Chemicals Company Poised for Rapid Growth
Leading Diversified Chemicals Company Poised for Rapid Growth Pigments Agrochemicals Basic Chemicals • Started in 1986 • Started in 1995 • Started in 2009 • Amongst top 3 global Phthalocyanine • One of the largest producers of pesticides • 7th largest caustic-chlorine player in India based pigment p
Slide 14: Sustainable Competitive Advantages
Sustainable Competitive Advantages Experienced & Qualified Management Strong Financial Performance and Technical Team • Consistent Revenue Growth • Rich experience of many decades in chemical sector among the founding members of the • Improving Profitability & Return Ratios company • Healthy Balance
Slide 15: Key Financial Metrics
Key Financial Metrics Robust Return Ratios • Improving profitability • Leaner balance sheet Consistent Revenue Growth • Significant improvement in return ratios • Revenues have grown at CAGR 12.7% 01 04 • ROCE – 9.7% in FY15 to 29.2% in FY19 over FY15-19, with higher contribution • ROE – 7.4% in FY1
Slide 16: Key Milestones
Key Milestones MOL gave successful exit to IFC from MFL by 2018 purchasing 24.97% for Rs 2,212 Mn 2016 Expansion into Caustic Potash production Setup new Pigment plant at Dahej SEZ 2013 - 14 Expansion of Caustic-Chlorine facility Acquired Agrochemical assets from Rallis 2000 - 10 Singapo
Slide 17: Strong Leadership Team to Deliver Long Term Growth
Strong Leadership Team to Deliver Long Term Growth Experienced Leadership Team Mr. Jayanti Patel Mr. Ashish Soparkar Mr. Natwarlal Patel Mr. Ramesh Patel Mr. Anand Patel Executive Chairman Managing Director Managing Director Executive Director Executive Director • 37 yrs of experience • 37 yrs of ex
Slide 18: Discussion Summary: Business Overview
Discussion Summary Q4 FY19 Results Update About Us Business Overview Strategy & Outlook Financial Overview 18
Slide 19: Pigments Business: Key Highlights
Pigments Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • Largest manufacturers of Phthalocyanine-based pigments with Total Capacity – 32,940 MTPA 14% global market share & amongst top 3 (capacity wise) global pigments players Location Capacity P
Slide 20: Pigments Business: Operational Overview
Pigments Business: Operational Overview Production (MT) & Capacity Utilisation (%) Dispatch / Sales (MT) 83.4% 35,000 76.6% 20,000 62.6% 64.8% 80.0% 18,000 16,090 15,999 30,000 70.0% 16,000 13,519 14,462 50.5% 25,982 25,226 60.0% 14,000 11,622 25,000 50.0% 12,000 19,487 20,194 40.0% 10,000 20,000 8,
Slide 21: Pigments Business: Industry Overview
Pigments Business: Industry Overview Global Pigments Market Global Pigments Market Size (USD Bn) • The global pigments industry consists of three segments – organic, in-organic and specialty pigment 27.6 30.0 • Organic pigments account for 35-40% mkt. share out of total 25.0 21.7 pigments industry 2
Slide 22: Agrochemicals Business: Key Highlights
Agrochemicals Business: Key Highlights Established Business Profile Product Profile • Leading manufacturer of pesticides – products across entire value chain Sold to technical grade pesticides Pesticide Intermediates manufacturers • Established global presence across Africa, Brazil, LatAm, US and Eu
Slide 23: Agrochemicals Business: Operational Overview
Agrochemicals Business: Operational Overview Registrations Base Production (MT) & Capacity Utilisation (%) Dispatch / Sales (MT) 40,000 616 69.7% 68.0% 65.6% 80.0% 25,000 581 567 35,000 60.5% 59.7% 70.0% 492 30,000 20,000 17,342 16,430 462 60.0% 15,624 354 307 348 25,000 13,369 18,431 18,666 50.0% 1
Slide 24: Agrochemicals Business: Crop-protection Industry Overview
Agrochemicals Business: Crop-protection Industry Overview Global Crop Protection Market Global Crop Protection Market (USD Bn) • The global crop protection market is set to grow steadily to reach USD 58.7 Bn by 2020 58.7 • Key drivers - growing population, declining arable land & rising pest 51.2 1.
Slide 25: Basic Chemicals Business: Key Highlights
Basic Chemicals Business: Key Highlights Established Business Profile Vertically Integrated Manufacturing Facilities • 7th largest (by capacity) Caustic-Chlorine producer in India Dahej Facility • Latest 4th generation ‘Zero Gap Membrane Technology’ sourced from Products Capacity (MTPA) Asahi Kasei
Slide 26: Basic Chemicals Business: Operational Overview
Basic Chemicals Business: Operational Overview Production (MT) & Capacity Utilisation (%) Dispatch / Sales (MT) 93.0% 88.0% 300,000 86.0% 86.1% 100.0% 77.0% 90.0% 185,000 157,313 156,298 250,000 80.0% 70.0% 165,000 134,564 140,175 138,219 200,000 145,985 143,977 161,674 161,473 145,000 143,074 60.0%
Slide 27: Basic Chemicals Business: Industry Overview
Basic Chemicals Business: Industry Overview Global Chlor-Alkali Market Global Chlor-Alkali Market Size (USD Bn) • The global Chlor-Alkali industry is expected to grow at 5.3-5.9% 5.9% CAGR CAGR (2017-2023), to reach USD 125 Bn by 2023 125.0 140.0 120.0 88.6 • The global demand for Chlor-Alkali produ
Slide 28: Discussion Summary: Strategy & Outlook
Discussion Summary Q4 FY19 Results Update About Us Business Overview Strategy & Outlook Financial Overview 28
Slide 29: Revenue Target Rs 10 Bn From Each Business Segment
Revenue Target Rs 10 Bn From Each Business Segment • This is MOL’s high margin segment • The Rs 6.4 Bn on-going capex plan provides a solid revenue growth visibility over coming years • MOL’s backward integrated facilities puts it in an advantageous position, given the • Continue to leverage the mar
Slide 30: Discussion Summary: Financial Overview
Discussion Summary Q4 FY19 Results Update About Us Business Overview Strategy & Outlook Financial Overview 30
Slide 31: Last Five Years Summary
Last Five Years Summary Rs Mn Revenues * & Gross Margin Revenues - Segment Breakup CAGR 13% 50.5% 46.9% 49.5% 44.1% 28% 30% 28% 33% 34% 41.0% 20,880 18,034 37% 34% 35% 35% 37% 12,942 13,322 14,196 35% 36% 37% 32% 29% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Pigment Agro Chemical Basic Chemi
Slide 32: Last Five Years Summary
Last Five Years Summary Rs Mn Leverage Analysis Working Capital Analysis * 1.00 117 118 114 0.76 0.62 0.53 0.35 88 91 11,528 74 81 72 52 59 6,383 7,575 8,732 10,919 88 81 86 73 70 6,398 5,781 7,162 -45 -44 -45 -37 -39 4,610 3,858 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Receivable Days Inve
Slide 33: For Further Queries
For Further Queries: Gurjant Singh Chahal, CFO Email: ir@meghmani.com Phone: +91-79717 61000 Mitul Bhagat / Mehul Mehta IR Consultant Contact: 87678 77559 / 98920 62162 Email: mitul.bhagat@dickensonir.com mehul.mehta@dickensonir.com