Nath Bio-genes (india) Ltd. · NSE:NATHBIOGEN
Nath Bio-genes (india) — Q1 FY2023 Earnings Presentation
26 slides from Nath Bio-genes (india)'s earnings presentation, Aug 13, 2022
Slide 1: Nath Bio-Genes (I) Ltd. – Presentation on Unaudited Financial Results
é Ss Nath Bio-Genes (I) Ltd. (CIN L01110MH1993PLC072842) 13th August 2022 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-400051 BSE Code-537291 NS
Slide 2: Q1FY23 Investor Presentation
Q1FY23 Investor Presentation 1
Slide 3: Safe Harbour
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actua
Slide 4: Strategic Update
Strategic Update Q1FY23 Season Update New Products Developments/Launches Working Capital Kharif Season in progress Field Crop, Vegetable sales lined up Positive Operational Cash Flow in Q1 Cotton packets sold 10.15 Lacs New products launched in Cotton, Working capital cycle improved Non-Cotton; Non-
Slide 5: Key Operating and Financial Highlights
Key Operating and Financial Highlights o Non - cotton, non - paddy portfolio contribution at 31% to revenues Operating Performance o Cotton and Paddy portfolio contribution at 69% to revenues o Cotton and Paddy sales down YoY due to delayed and lower than anticipated monsoon in some parts of the cou
Slide 6: Managing Headwinds
Managing Headwinds Illegal BT Cotton o Farmers can grow only BT Cotton, however they have veered towards another hybrid – HT BT in past few years. o The process saves on labour required to physically remove weeds from cotton fields. But it has not been approved by regulators. o Record high of 80-82
Slide 7: Income Statement
Income Statement Particulars (INR Mn) Q1FY23 Q1FY22 % Change (YoY) Q4FY22 FY22 Total Revenue 2,093 2,146 -3 272 2,783 Gross Profit 1,059 1,028 3 197 1,544 Gross Margin (%) 50.6 47.9 270bps 72.0 55.5 EBITDA 345 481 -28 -212 373 EBITDA Margin (%) 16.5 22.4 -590bps 78.0 13.4 Depreciation 7 7 - 11 31 Fi
Slide 8: Segment wise Operating Performance
Segment wise Operating Performance Products Metric Q1FY23 Q1FY22 YOY Growth FY22 Cotton Packets in lakhs 10.15 13.64 -26% 11.90 Paddy Quintals 47,081 55,107 -15% 59,176 Other Crops (Bajra, Quintals 16,836 17,461 -4% 29,963 Maize) 7
Slide 9: Segmental Revenue Contribution
Segmental Revenue Contribution Q1FY22 Revenue Q1FY23 Revenue INR 2,146Mn INR 2,093 Mn Cotton, 30% Cotton, 31% Others, 38% Others, 31% Paddy, 32% Paddy, 38% Cotton Paddy Others Cotton Paddy Others • include: Jowar, Bajra, Maize, Mustard, Wheat
Slide 10: Highly Ranked Cotton Products – Gaining Market Share
Highly Ranked Cotton Products – Gaining Market Share o Volume growth of 5-10% projected for FY23 o Special Campaign being undertaken to educate farmers 3 YEAR OUTLOOK: 20% + Growth CAGR 10 Cotton Products launched in last 5 years 8-12 Products in Pipeline 9
Slide 11: Paddy: Strong Outlook
Paddy: Strong Outlook o Volume growth projected at 15-20% in FY23 3 YEAR OUTLOOK: o Research Efforts underway for new products 20% + Growth Presence of Paddy across India 10+ Key Products Key Markets Paddy Products launched in last 5 years Hybrid Vegetable Market Size: INR 25 – 30 Bn Loknath Bihar
Slide 12: Growing Vegetable Portfolio
Growing Vegetable Portfolio o Volume growth of 25-30% projected in FY23 3 YEAR OUTLOOK: o High Margin segment : 80%+ margins 30% + Growth o New products being launched o Vegetable vertical achieving results Hybrid Vegetable Market Size: INR 25 – 30 Bn Hybrid Vegetable Industry: Market Break-up 30+
Slide 13: Win Chi Win : Major Growth Booster
Win Chi Win : Major Growth Booster 3 YEAR OUTLOOK: o Volume growth of 25+% projected in FY23 30% + Growth o High Margin segment : 70%+ Margins o Territories enhanced to sustain growth Geographical Presence of Win Chi Win • A growth enhancer for • Concentrate on Plant Nutrient Segment for Cereals, Fr
Slide 14: Innovate, Help, Grow
Innovate, Help, Grow Innovate Help Grow (5 Year Performance] 45 150,000 45% New Seeds Developed in last 5 Employment Generated Revenue Growth years 100+ years 50,000 2.3x Contract Farmers EBITDA Growth till FY21 R&D Team experience #1-3 20,000+ 3.45x Direct Retailers PAT Growth till FY21 ICAR Trials
Slide 15: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Building A Strong Organisation; Evolved into a Dividend Paying Company Developing Innovative Products Making the Portfolio more Balanced Balance Sheet becoming Stronger Strategic Presence across Seed Value Chain Delivering strong growth despite an uncertain env
Slide 16: Corporate Overview
Corporate Overview
Slide 17: Strategy 4.0
Strategy 4.0 Altering strategy to create a more robust & de-risked business model Risks Change in Strategy Action Points o Portfolio Concentration o Limiting revenue contribution of any o Developing products in multiple Risk single crop to less than 25% food crops like Maize, Jowar, Bajra o Cotton &
Slide 18: Building a Strong Organisation
Building a Strong Organisation • Imbibing a culture of continuous growth and strong governance 500+ • Hiring industry experts in each key area of Employees operations – R&D, Finance, Supply-Chain • Empowered teams, well-aligned with organisation vision 150+ • Strong risk management framework New Emp
Slide 19: Developing Innovative Products
Developing Innovative Products Holistic Products to Address Problems of • World Class R&D Infrastructure • Launched 36 Innovative Products Developed Low Yields across Segments Climate Change • 8-10 new products in pipeline in cotton • 20+ new products in pipeline in Vegetables Pest Infestations Seed
Slide 20: Strategic Presence Across the Seed Value Chain
Strategic Presence Across the Seed Value Chain Genetic Resources/Germplasms 18,000+ Germplasm Library R&D 100+ years R&D Team experience New Seed Development ICAR Trials 36 done at Seed varieties launched in last 3 years Commercial Production this stage 50,000 Contract Farmers Marketing and Distribu
Slide 21: Appendix
Appendix 20
Slide 22: Maintaining Profitability; Strong Balance Sheet
Maintaining Profitability; Strong Balance Sheet Net Debt (INR Mn) Net Worth (INR Mn) 6,133 5,576 5,420 888 5,076 4,692 679 659 576 3,033 478 363 207 1,071 1,213 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 -121 EBITDA Margin (%) PAT Margin (%) 18% 18% 21% 22% 17% 1
Slide 23: Visionary Leadership; Attracting the Best Talent
Visionary Leadership; Attracting the Best Talent Mr. N Mr. Satish Nath Promoters are committed to sustainable Kagliwal Kagliwal MD growth and are working towards making Nath one Chairman of the best seeds company globally. Leadership Team Research & Product Development Nath leadership team shares th
Slide 24: Historical Income Statement
Historical Income Statement Nath Bio-Genes’ P&L Statement Particulars (INR Mn) FY22 FY21 FY20 Total Revenue 2,783 3076 2799 Gross Profit 1,544 1715 1536 Gross Margin (%) 56% 56% 55% EBITDA 373 667 547 EBITDA Margin (%) 13% 22% 20% Depreciation 31 28 14 Finance Cost 106 88 65 PBT (before exceptional)
Slide 25: Historical Balance Sheet
Historical Balance Sheet Assets (INR Mn)FY FY22 FY21 FY20 Liabilities FY22 FY21 FY20 Fixed Assets 2,449 2,469 2,460 Share Capital 190 190 190 Financial Assets 51 53 52 Reserves & Surplus 5,230 5,943 5,386 Other Non-current Assets 218 134 15 Long-Term Borrowings 7 7 3 Inventories 2,203 2,263 2,043 Lo
Slide 26: Thank You
Thank You CIN_NBIL_L01110MH1993PLC072842 For further information, please get in touch with: Sheetal Khanduja Monali Jain sheetal@GoIndiaadvisors.com monali@GoIndiaadvisors.com M:+91 97693 64166 M:+917597304020 25
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