Deepak Fertilisers And Petrochemicals Corporation Ltd. · NSE:DEEPAKFERT
Deepak Fertilisers And Petrochemicals — Elara Investor Conference 2019
37 slides from Deepak Fertilisers And Petrochemicals's conference presentation, Sep 4, 2019
Slide 1: Regulation 30 intimation: Elara Investor Conference
... DEEPAK FERTILISERS Regd. Office: Sai Hira, Survey No. 93, AND PETROCHEMICALS Mundhwa, Pune • 411 036, India. Tel: +91 (20) 6645 8000 CORPORATION LIMITED 4 September 2019 The Secretary Listing Department BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, "Exchange Plaza"
Slide 2: Corporate Presentation
Products to Solutions Commodities to Brands INDUSTRIAL CHEMICALS AGM Presentation Deepak Fertilisers And August 2019 Petrochemicals Corporation Ltd. Corporate Presentation MINING CHEMICALS (BSE: 500645; NSE: DEEPAKFERT) ` September 2019 CROP NUTRITION 1 A Journey of 40 Years
Slide 3: Table of Contents
Table of Contents 1. Business Overview 2. Chemicals Segment 3. Fertilisers Segment 4. Consolidated Financial Performance 5. Looking Forward… 6. Annexure 2
Slide 4: Business Overview
Business Overview 3
Slide 5: Deepak Fertilisers And Petrochemicals: An Overview
Deepak Fertilisers And Petrochemicals: An Overview Diversified Business Installed Capacity • Strong knowledge base and experience in: o Mining Chemicals Technical Industrial 485 1,352 o Industrial Chemicals KTPA Ammonium KTPA Chemicals o Crop Nutrition Nitrate • Diversified ammonia downstream player
Slide 6: Catering to Diverse End User Segments
Catering to Diverse End User Segments Segments Highlights End Market • Only manufacturer of solid TAN in India Technical • Explosives Ammonium Nitrate • Preferred partner of mining, infrastructure and explosives companies • Mining Mining • Strategically located plants on East and West coasts of Indi
Slide 7: Leading Market Position through Four Decades of Sustained Growth
Leading Market Position through Four Decades of Sustained Growth Continuous expansion through adoption of global technology and additions of production capacity Started IPA facility and expanded TAN (LDAN) and industrial chemicals (ANP, 1990- nitric acid) capacity 2010- 1979 1999 2019 2003: Acquired
Slide 8: Strategic Geographic Footprint
Strategic Geographic Footprint 7
Slide 9: Key Clientele
Key Clientele Mining Chemicals Industrial Chemicals Black Diamond Explosives Rajasthan State Mines & Minerals 8
Slide 10: Chemicals Segment
Chemicals Segment 9
Slide 11: TAN Market Demand in India
TAN Market Demand in India Driven by Coal Sector Expected to Outstrip Supply AN Demand-Supply Scenario in India ▪ Mining and infrastructure sectors are key demand drivers for TAN consumption Mineral Production (in Million MT) in India – Coal alone accounts for about 67% of current TAN demand and is
Slide 12: TAN: Key Products, Applications & Customers
TAN: Key Products, Applications & Customers Low Density High Density Medical Grade Ammonium Ammonium Ammonium Ammonium Nitrate Solution Nitrate Nitrate Nitrate Products Optimex & Optiform Optispan Optimex+ AN Melt Vertex Vertex Vertex Super Norma Supreme To Manufacture To Manufacture To Manufacture
Slide 13: Nitric Acid: DFPCL Market Position and Demand
Nitric Acid: DFPCL Market Position and Demand Strong Demand and strong market position to sustain profitability DNA, CNA & SNA – Demand Outlook Strong Market Position – Limited competition from PSUs 80% 400 370 71% 70% 350 327 DFPCL GNFC Peer 1 RCF Peer 2 NFL Peer 3 Others 60% 300 264 49% 240 50% 25
Slide 14: Nitric Acid Capacity Expansion
Nitric Acid Capacity Expansion Expanded Footprints in Dahej, Gujarat • Commissioning of Commercial Operations: April 2019 • DFPCL’s Market Positioning: • Production Capacities: ~92 KTPA (CNA); ~148 KTPA (DNA) • Second largest manufacturer of Nitric Acid in South • Key Highlights: East Asia and large
Slide 15: Leading IPA Player
Leading IPA Player Strong Market Share, restricted RM availability and customer stickiness to drive profitability • DFPCL is the only producer of the merchant IPA in India; with ~80% market share o Primary customer is pharma sector (~80%), expected to grow at 12-15% CAGR through FY 2020 o Pharma ind
Slide 16: Fertilisers Segment
Fertilisers Segment 15
Slide 17: Key Market Trends
Key Market Trends Key Market Trends Implications Acreage of horticulture has increased significantly between 2004 – 2014 Shift in consumption towards high value foods like in states like Maharashtra (21%), Gujarat (200%), Karnataka (50%), fruits, vegetables & processed foods Telangana/AP (48%) & Mad
Slide 18: CNB Business overview
CNB Business overview Key Highlights STL presence across India ➢ Largest specialty fertilizer company in India with 20% market share in WSF, Foliar and Micronutrients and 34% market share in Bentonite Sulphur Jammu Kashmir ➢ 18% market share in NP/ NPK market in Maharashtra Himachal Pradesh ➢ 25+ ye
Slide 19: Diversifying from Commodity to Specialty
Diversifying from Commodity to Specialty Increasing presence in value added products Key Differentiators Investing in select adjacencies that will accelerate adoption ➢ Smartek: Unique product of crop nutrition solutions Pivoting to a crop nutrition solution provider established by proprietary Build
Slide 20: SMARTEK and CNS
SMARTEK and CNS Successful ramp-up of Differentiated Performance Fertiliser- Smartek since launch in FY18 122,579 • SMARTEK trial production started in FY17 • Launched SMARTEK N10 in FY18 Rabbi Season; SMARTEK N12 and SMARTEK N20 launched in FY19 13,165 • 10,000+ demos of SMARTEK undertaken across g
Slide 21: Consolidated Financial Performance
Consolidated Financial Performance 20
Slide 22: Consolidated Quarterly Highlights
Consolidated Quarterly Highlights Revenue from Operations (Rs. Cr) Operating EBITDA (Rs. Cr) and Margins (%) 1,769 1,453 115 108 120 1,294 88 1,122 10.7% 7.4% 6.5% 6.8% Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Chemicals: Trading Revenues (Rs. Cr) Profit After Tax (Rs. Cr) - 100 200 30
Slide 23: Consolidated Quarterly Highlights
Consolidated Quarterly Highlights Financial Performance Revenue Breakdown • Total Revenues reported at ~ Rs. 1,122 Cr in Q1 FY2020 Q1 FY20: Rs 1,122 Cr • Operating EBITDA stood at Rs. 120 Cr; Margins improved significantly from 6.8% (Q4 FY2019) to 10.7% (Q1 FY2020). Operating margins were 6.7% in Q1
Slide 24: Consolidated Segment Highlights: Chemicals
Consolidated Segment Highlights: Chemicals Manufactured TAN Sales Manufactured IPA Sales Manufactured Acids Sales +12% -21% +30% 89 128 330 295 71 99 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 • Manufactured Chemical business reported revenues of ~Rs. 613 crores in Q1 FY20 as compared to ~Rs. 610 cro
Slide 25: Consolidated Segment Highlights: Fertilisers
Consolidated Segment Highlights: Fertilisers Manufactured NP and NPK Sales Manufactured Bensulf sales -21% -24% 410 19 324 15 Q1FY19 Q1FY20 Q1FY19 Q1FY20 • Manufactured Fertilisers business reported revenues of ~Rs. 341 crores in Q1 FY20 as compared to ~Rs. 429 crores in Q1 FY19. Fertilisers Trading
Slide 26: Consolidated Annual Performance
Consolidated Annual Performance Revenue from Operations and Operating EBITDA (Rs. Cr) Mar-18 Mar-19 ST Debt 2,839 1,176 LT Debt 626 1,771 545 Current Maturities 67 85 6,742 Total Debt 3,532 3,032 Cash & Cash Equivalent 470 334 6,062 Net Debt 3,063 2,698 473 Equity 2,087 2,142 Net Debt/ Equity 1.47x
Slide 27: Consolidated Sales Volume
Consolidated Sales Volume Q-o-Q Y-o-Y Volume MT Q1 FY20 Q4 FY19 Q1 FY19 FY19 FY18 Y-o-Y growth growth growth Methanol 10,370 4,444 133.3% 19,236 (46.1)% 52,215 46,652 11.9% Nitric Acid 62,477 49,078 27.3% 46,232 35.1% 199,201 218,120 (8.7)% IPA 10,827 14,782 (26.8)% 11,682 (7.3)% 61,274 74,100 (17.3
Slide 28: Looking Forward…
Looking Forward… 27
Slide 29: Looking Forward…
Looking Forward… • Backward integration: Ammonia Facility o In the process of setting up a state-of-the-art 500KTPA Ammonia facility at Taloja, at a Cost of Rs. 2,950 crores o Tied up the entire debt requirement of about Rs. 2,044 crore o Door-to-door tenor of 19 years, including the initial constru
Slide 30: Annexure
DEEPAK FERTILISERS. AND PETROCHEMICALS, CORPORATION LIMITED
Slide 31: CNB Product Portfolio
CNB Product Portfolio NPK Products Specialty Products NPK Bulk NPK Differentiated NPK 10.26.26 NPK 12.32.16 NPK 20.20.00.13 NP 24.24.00 (ANP) NPK 10.26.26 NPK 12.32.16 NPK 20.20.00.13 (Smartek) (Smartek) (Smartek) Traded Bulk Products Bensulf WSF CNS Other Specialty Products Bensulf FRT Mahadhan SMA
Slide 32: Shareholding Information
Shareholding Information Capital Market Data Shareholding Pattern as on 30th June 2019 Market Cap (August 23, 2019) Rs. ~700Cr Share Price (August 23, 2019) Rs. 79.75 Shares Outstanding 8.82 Cr Promoters 51.5% Total no. of Shareholders 101,650 (June 2019) NSE and BSE Tickers DEEPAKFERT; 500645 Other
Slide 33: Strong and Independent Board of Directors
Strong and Independent Board of Directors Executive Director Sailesh C. Mehta Chairman and Managing Director Non-Executive Non-Independent Director Independent Director Parul S. Mehta M. P. Shinde Ashok Kumar Purwaha Berjis Desai Alok Perti Experience in corporate public Experience in Chemical, Soli
Slide 34: Management with Strong Industry Experience
Management with Strong Industry Experience Sailesh C. Mehta Amitabh Bhargava D . S. Ravindra Raju Education: B. Com., MBA (USA) Experience: ~25 Years Experience: ~30 Years Education: BE (IIT), MBA (SP Jain) Education: BE (IIT), PGDBM (XLRI) Chairman and MD President and CFO President – Manufacturing
Slide 35: Awards and Recognition
Awards and Recognition Mahadhan was honoured with “Agribusiness Smartek awarded for Best formulation – Innovation at leadership” award at the 11th Global Agriculture the Agribusiness Summit and Agri Awards 2019 Leadership Summit 2018 Smartek won RMAI Agribusiness Leadership Award Mahadhan received B
Slide 36: Recent CSR Activities
Recent CSR Activities Rural Initiatives Establishment of keshar mango farm and support for Dairy Development project Medical health camp Vocational Skill Development mango sale Urban Initiatives Trained 132 aspirants in various vocational Income Generation Livelihood Enhancement through Entrepreneur
Slide 37: Investor Relations Contact
Investor Relations Contact: Deepak Balwani deepak.balwani@dfpcl.com Associate Vice President – Investor Relations +91 20 6645 8733 Amitabh Bhargava amitabh.bhargava@dfpcl.com Reg. Off and Corp. Off: Sai Hira, Survey No. 93, Mundhwa, Pune - 411 036 President and Chief Financial Officer +91 20 6645 82
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