Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — Q4 FY19 Earnings Presentation
42 slides from Nath Bio-genes (india)'s earnings presentation, May 31, 2019
Slide 1: Presentation on Audited Financial Results cover letter
, ts *. Nath Bio-Genes (1) Ltd. (CIN L01110MH1993PLC072842) 31St May 2019 The Manager-Listing The Manager-Listing BSE Limited National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex Dalal Street, Bandra (E) Mumbai-400001 Mumbai-40005 1 BSE Code-537291 N
Slide 2: Earnings Presentation Q4 & full year FY19
Nath Bio Genes (India) Limited Earnings Presentation Q4 & full year FY19
Slide 3: FY19 – Strong Financial & Operating Performance
FY19 – Strong Financial & Operating Performance… Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) 20 2,309 7.1% % 56% 433 1,917 54.30% 404 FY18 FY19 FY18 FY19 FY18 FY19 PAT (INR Mn) PAT Margin (%) EPS (INR/Share) 31 386 16.7% 31 20.30 % % 294 15.50 15.3% 2 FY18 FY19 FY18 FY19 FY18 FY19
Slide 4: Driven by Robust Sales
…Driven by Robust Sales FY19 Revenue Delivering on the Stated Forecasts INR 2.3 Billion Key Revenue Sales Actual Sales % Growth Contributor Forecasted in FY19 YoY (On actual for FY19 unit sales over last year) Others Cotton 800,000 801,792 62.1% 18% Cotton 26% packets packets Paddy 56,000 55,957 10.
Slide 5: Q4FY19 Snapshot
Q4FY19 Snapshot Particulars (INR Mn) Q4FY19 Q4FY18 % Change (YoY) Total Revenue 523 500 4.6% Gross Profit 239 279 -14.4% Gross Margin (%) 45.7% 55.8% EBITDA 58 36 59.7% EBITDA Margin (%) 11.1% 7.3% Depreciation 4 2 Finance Cost 13 21 - 34.6% PBT 45 21 118.9% PAT 55 17 216.9% PAT Margin (%) 10.6% 3.5
Slide 6: FY19 Snapshot
FY19 Snapshot Particulars (INR Mn) FY19 FY18 % Change (YoY) Total Revenue 2309 1,917 20.5% Gross Profit 1253 1,073 16.8% Gross Margin (%) 54.3% 56.0% EBITDA 433 404 7.1% EBITDA Margin (%) 19.1% 21% Depreciation 14 10 Finance Cost 52 103 - 49.5% PBT 389 300 29.6% PAT 386 294 31.0% PAT Margin (%) 16.7
Slide 7: Cotton – Top Performers & FY20 Outlook
Cotton – Top Performers & FY20 Outlook Top Variants In-Roads into the Future New developments: • NBC 102 (Rainfed) • Early and Synchronous Maturity, for • Excellent Drought and sucking High Density Planting (Machine pest tolerance Picking) • 25-40 Q/Ha • GMS Conversion, for better quality hybrid see
Slide 8: Paddy – Top Performers & FY20 Outlook
Paddy – Top Performers & FY20 Outlook Top Variants In-Roads into the Future • Gazab – Long Slender • Suitable for rainfed rice areas New developments: • Maturity: 120-125 days; Yield: 8-10 t/ha • Early maturity, fine grain and resistance to diseases and pests • Loknath - 505 Medium Bold • Tolerance
Slide 9: Vegetables – Top Performers & FY20 Outlook
Vegetables – Top Performers & FY20 Outlook Top Variants In-Roads into the Future • Okra Aim: NOH 05: Yield - 25-30 T/Ha • To clock revenues of INR 350 Mn, NOH 03: Yield – 20-22 T/Ha making NBIL a serious player in this highly profitable vertical • Tomato • Revamp segment via dedicated SBU, NTH
Slide 10: Win-Chi-Win – Top States & FY20 Outlook
Win-Chi-Win – Top States & FY20 Outlook Top States In-Roads into the Future • Gujarat Aim: 70,000 litres in FY21 • Maharashtra New developments: • Uttar Pradesh • Introducing separate kit for 1 acre land as a tiffin dose • Rajasthan • New SKUs: 500, 1,000 & 4,000 ml • New product testing on Biopesti
Slide 11: Working Capital Cycle: Increasing Inventory for Higher Sales
Working Capital Cycle: Increasing Inventory for Higher Sales Particulars (INR Mn) FY19 Revenue 2,309 Inventories 1,554 Trade Receivables 1,080 Advances for Future Sales 256 Trade Payables 502 Net Working Capital 1,875 317 297 280 277 250 240 246 235 171 156 102 108 111 95 70 79 61 56 44 40 FY16 FY17
Slide 12: Geared Up for a Strong & Stable FY20
Geared Up for a Strong & Stable FY20 Revenue by FY20 INR 2,800-3,100 Mn Gross Margin 50%+ Long Term Debt NIL FY20 Revenue Drivers Aggressive Marketing Targets Key Segment Sales Forecasted for FY20 • 2 New States Entered: Odisha, West Bengal Cotton 1,200,000 packets Paddy 60,000 Quintals • 2 New Vert
Slide 13: Nath: Gaining Grounds - Transformational Genes
Nath: Gaining Grounds - Transformational Genes.. Market Leading Products • Exceptional High Yielding Cotton Hybrids with High Level Biotic & Abiotic Stress tolerance INR 2,309 Mn • Superior Worldwide Collection & FY19 Revenue Development of Trait Specific Elite Germplasm World-class R&D Strong Balan
Slide 14: To Deliver Bumper Harvest
..To Deliver Bumper Harvest.. Cotton Paddy FY23 FY23 4.5 mn packets 90K Quintals FY21 FY21 2.0 mn packets 72K Quintals FY19 FY19 0.8 mn packets 56K Quintals Vegetables Win Chi Win FY23 FY23 10K Quintals 125K Litres FY21 FY21 5K Quintals 70K Litres FY19 FY19 2.7K Quintals 43K Litres 13
Slide 15: Resulting in Multi-Fold Value Creation
..Resulting in Multi-Fold Value Creation.. Revenue by FY20 INR 2,800-3,100 Mn Revenue by FY21 INR 4,000-4,500 Mn Gross Margin 50%+ Long Term Debt NIL Roadmap to A Successful Future Others Others 18% Win-Chi-Win 13% Cotton 7% 26% Cotton Win-Chi-Win 42% Vegetables 10% 9% Vegetables 10% Paddy Paddy 36%
Slide 16: In a Fast Growing Industry – Global Seed Market
..In a Fast Growing Industry – Global Seed Market.. 2023 2018 2012 2009 US$ 93 US$ 53 Billion US$ 44 Billion Billion US$ 22 Market Share Billion Rest of the World 25% USA, China France, 50% Brazil, Transgenics, MAS, GeneEditing, RNAi India, Canada Technologies might hasten the growth, faster 25% tha
Slide 17: Indian Seed Market At an Inflection Point
Indian Seed Market At an Inflection Point.. 2023 2018 2014 2009 US$ 8 US$ 3.6 Billion US$ 2 Billion Market Share Billion US$ 1 Bajra Others Billion 4% 19% Cotton 36% Wheat 5% Vegetables 17% Corn Seed Demand from China’s 130 Rice 9% US$ 9 Billion 10% million hectares of Agricultural land Seed Demand
Slide 18: Organisation Focused on R&D; Best-in-Class Infrastructure
..Through an Organisation Focused on R&D; With Best-in-Class Infrastructure.. High quality standards and compliance 18 Breeding and Evaluation R&D Stations in different Agro‐Climatic conditions More than 300 acres of land dedicated to Research and Development, across the nation Collaboration
Slide 19: R&D Focused Technologies to Boost Breeding
..R&D Focused Technologies to Boost Breeding.. Developing new product takes 6-8 years: Conventional Approach Commercial Development Upto 2-3 Upto 3-4 years years Variety Application Development Oriented Research Upto 2-3 Upto 1-2 years years First Crossing Pre-Breeding At NBIL, We are Re-Engineering
Slide 20: R&D Beyond Compare
..R&D Beyond Compare.. o Designed for major agro – climatic conditions Cotton o High level resistance to Sucking Pests & Water Stress (Drought) o Widely adapted Heterotic Hybrid with High Yield Potential and resistance to diseases Paddy o Breeding Speciality: Open Pollinated Varieties (OPV) o Qualit
Slide 21: R&D Infrastructure of International Standards
..R&D Infrastructure of International Standards.. o 200 acres of R&D farm at Isarwadi, Aurangabad for major field crops: Cotton, Maize, Millets, Wheat, Oil Cotton & Other Seeds crops Field Crops o Cold Storage, Seed Increase, Innovative Breeding Experimental Studies, Administrative and Technical Sup
Slide 22: Cotton: Jewel in the Crown
Cotton: Jewel in the Crown Best range of Bt-Cotton Hybrids in India NBL’s premium cotton hybrid seed will ensure market leadership in cotton for next 5 years Developing Seeds which meets farmers’ Needs Enhanced Drought Assured Yield in varied climatic High Resistances to Sucking Pests Re
Slide 23: Cotton: Differentiated Products to drive Market Share
Cotton: Differentiated Products to drive Market Share Zone Wise Product Performance vs Peers All India Coordinated Trials (ICAR and Min. Agriculture, New Delhi) South Irrigated Central Irrigated South Rainfed Central Rainfed Product Yield* Rank Product Yield* Rank Product Yield* Rank Product Yield*
Slide 24: Cotton Industry Outlook
Cotton Industry Outlook Domestic Cotton Industry Bt Cotton seed market is of 50 mn packets per annum and around 30% of the total seed market. India's 2018-19 forward cotton export contract up 100% YoY In 2017-18, India could not sign as many forward contracts since cotton availability was rest
Slide 25: Paddy: Focus on Hybrids – Exceeding the Yield Barrier
Paddy: Focus on Hybrids – Exceeding the Yield Barrier NBIL already has significant presence in high‐yielding, disease‐resistant hybrid paddy seeds We have now come up with a new range of Super Hybrids and an exceptional collection of speciality OPV products. Growth Projection Revenue Contributio
Slide 26: Paddy: Market Leaders; Super Hybrids
Paddy: Market Leaders; Super Hybrids Gazab Super Duper Highest Yielding Medium maturity hybrid Early maturity duration (110- (120‐125 days). Average yield: 9-10 115 days). Average yield: 8-9 tons/ha tons/ha Non-shattering and very high milling out-turn (more than 70%) Very high grain fertili
Slide 27: Paddy: New OPVs for New Emerging Market Segments
Paddy: New OPVs for New Emerging Market Segments Shweta-43 Khushi-27 Very attractive medium fine grain, Much in demand, short cylinder grain type having an average of 325-350 grains/panicle Medium maturity (125 days) & Medium Short heighted (80-90 cm), non- plant height (110 cm) shattering a
Slide 28: Paddy: New OPVs for New Emerging Market Segments
Paddy: New OPVs for New Emerging Market Segments Kasturi-09 Menka Strong aromatic and long cylinder grains, Long fine, basmati type, highly reputed for excellent cooking and eating aromatic grains; Very good quality characteristics cooking quality Fits well in rotation with Wheat, Semi dwarf (95
Slide 29: Hybrid Rice to help meet India's Food Security Mission
Hybrid Rice to help meet India’s Food Security Mission India Rice Requirement by 2020: National Food Security Mission (NFSM) 122 million tonnes -22 o Rice Million Tonnes o Wheat Current Rice Production: o Pulses 100 million tonnes Hybrid Rice Boost productivity levels Higher Profitability to Early &
Slide 30: Vegetables: Multiple High Value Products
Vegetables: Multiple High Value Products Multiple crops per year provide sustainable revenue stream Diversified Portfolio of high value & highly competitive products Hybrid Vegetables hold Significant Potential Higher Yield Disease and Pest Resistance Better Quality Growth Projection 9
Slide 31: Vegetables: Supplying India's Best Hybrid Products
Vegetables: Supplying India’s Best Hybrid Products High Value Products Tomato Okra Chilli o Unique high o Resistant to virus o Very good hybrid level virus with better quality vigour and profuse resistant & yield fruit branching o Highest market o Large product o Novel source of share pipeline high
Slide 32: Vegetables: Hot Favorite Hybrids
Vegetables: Hot Favorite Hybrids Priya NOH – 05 NBH – 13 NTH – 1894 NBGIH – 274 NCH – 2 31
Slide 33: Plant Nutrient Supplement: Exclusive Tie-Up for Win Chi Win
Plant Nutrient Supplement : Exclusive Tie-Up for Win Chi Win Exclusive Tie up with a Chinese company to Round-the-year: High demand market Win chi Win in India Proven Performance: Visible & quantifiable gains in Vegetables, Field and Horticulture Crops & even Plantation Crops Negligible Competit
Slide 34: Revamped Marketing: Direct Reach Substantially Enhanced
Revamped Marketing: Direct Reach Substantially Enhanced 16 131 2000+ Business Centres Territories Distributors Improving Direct Increase contract Add Nath Farm Reach farmers Advisors Current direct 1,50,000 contract 400 Nath Farm retailers 7,000+ farmers Advisors 20,000+ Direct Each Ma
Slide 35: Exports: A Huge Opportunity Unfolding
Exports: A Huge Opportunity Unfolding o Exploring opportunities in countries with similar agronomical conditions Philippines & Sudan – Significant Growth Expected; Final Approvals Pending o Testing completed; Trial marketing commenced Products Being Export Export o NBL team spent significant tim
Slide 36: Improving Profitability; Strong Balance Sheet
Improving Profitability; Strong Balance Sheet Zero Long Term Debt Return Ratios Improving QIP funds used to repay full debt in Feb’18 On back of higher profitability Land Bank worth INR 200 crores Working Capital Improving To be monetised to fund future Capex requirement Inventory Days down
Slide 37: Appendix
Nath Bio Genes (India) Limited Appendix
Slide 38: Outreach
Outreach BB a HEAD OFFICE CORPORATE OFFICE LIAISIONING OFFICE PRODUCTION CENTRES MARKETING CENTRES RESEARCH AND EVALUATION CENTRES EXPORTING COUNTRIES 3 INDIAN CAPITAL
Slide 39: Leadership Team
Leadership Team Mr. Nandkishor Mr. Satish Kagliwal – Mr. Devinder Khurana Mr. Madhav Dhande – Kagliwal – Chairman MD – CFO Business Lead Founder chairman of Managing Director of the CFA (US), CAIIB, he is a M.Sc. in Entomology Nath Group. He is a Post Nath Bio-Genes (India) finance professional with
Slide 40: Historical Financials – P&L
Historical Financials – P&L Particulars (INR Mn) FY19 FY18 FY17 Total Revenue 2,309 1,917 1,698 Gross Profit 1,253 1,073 990 Gross Margin (%) 54.3% 56.0% 58.3% EBITDA 433 404 289 EBITDA Margin (%) 18.7% 21.1% 17.0% Depreciation 14 10 30 Finance Cost 52 103 97 PBT 389 300 166 Tax Rate (%) 0.8% 2.1% 2
Slide 41: Historical Financials – Balance Sheet
Historical Financials – Balance Sheet Assets (INR Mn) FY19 FY18 FY17 Liabilities FY19 FY18 FY17 Fixed Assets 2,317 2,109 2,073 Share Capital 190 190 160 Financial Assets 52 61 60 Reserves & Surplus 4,885 4,502 2,873 Other Non-current 20 Long-Term 5 4 201 Assets Borrowings Inventories 1,554 1,235 1,3
Slide 42: Thank You!
Thank You! For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Tanya Khosla tanya@GoIndiaAdvisors.com M:+91 97693 87813 41
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