Aksharchem India Ltd. · NSE:AKSHARCHEM
Aksharchem India — Investor Presentation (January 2017)
32 slides from Aksharchem India's investor presentation, January 2017
Slide 1: AksharChem (India) Limited Investor Presentation
AksharChem (India) Limited Investor Presentation January 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (India) 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 se
Slide 3: Results Update
Results Update 3
Slide 4: Financial Highlights Q3 FY17
4 Financial Highlights Q3 FY17 In Crs. Revenue EBITDA PAT 45% 181% 246% 72 27 18 50 10 5 Q3 FY16 Q3 FY17 Q3 FY16 Q3 FY17 Q3 FY16 Q3 FY17 EBITDA (%) PAT (%) +1,850 bps +1,430 bps 38.2% 24.5% 19.7% 10.2% Q3 FY16 Q3 FY17 Q3 FY16 Q3 FY17
Slide 5: Financial Highlights 9M FY17
5 Financial Highlights 9M FY17 In Crs. Revenue EBITDA PAT 48% 201% 257% 207 73 45 139 24 13 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 EBITDA (%) PAT (%) +1,790 bps +1,270 bps 35.3% 21.7% 17.4% 9.0% 9M FY16 9M FY17 9M FY16 9M FY17
Slide 6: Business Update
Business Update Business Update on Capex Plan: The Board of Directors has approved a Capital Expenditure Plan upto Rs. 175 Crores to be done over a period of 12-18 months in Specialty Chemicals, Dyes & Intermediates and Organic Pigments Commenting on the Result, Mr. Munjal Jaykrishna, Joint Managing
Slide 7: Company Overview
- Company ~ Overview
Slide 8: We Have Developed The EDGE
We Have Developed The EDGE 38 % 59 % 82% 0.1X Revenue Net Worth Exports Debt CAGR FY12-16 CAGR FY12-16 FY15-16 Sep 2016 Largest exporter of VINYL SULPHONE in India with over 45% share in exports of this product One of the largest exporters from India and among the largest players globally for CPC GR
Slide 9: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades Became a listed CPC Green entity (Capacity 1,440 Incorporated as TPA) Division of Audichem (India) IPO objective: to Asahi Songwon Pvt. Ltd. fund plant capacity Merged into the expansion from 600 Company TPA to 2,040 TPA 1989 1994 2014 1991-93 2003 2016 Began commercial
Slide 10: With Right Products
With Right Products Dye Intermediates Pigments Vinyl Sulphone CPC Green Intermediate product for Dye Used as colouring agents Manufacturing Made From Acetanilide Made From Crude Blue, PAN 60% of FY16 sales 40% of FY16 sales One of the fastest growing Vinyl Sulphone manufacturers in India 10
Slide 11: With Diversified End User Industry
With Diversified End User Industry Textile Industry Rubber Vinyl Sulphone CPC Green Ink Plastics CPC Green CPC Green Leather CPC Green Paint CPC Green 11
Slide 12: With Trust & Credibility
With Trust & Credibility 20 Year relationship 17 Year relationship 15 Year relationship 8 Year relationship 4 Year relationship 5 Year relationship Over 2 decades of Relationship with the biggest dye stuff houses in the world 12
Slide 13: With Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 14: With State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area 14
Slide 15: With Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand FY16,% of Revenue Philippines SOUTH Malaysia ROTW, AMERICA Brazil Indonesia Europe, 4% 6% AUSTRALIA Pan India
Slide 16: With Environmental Sustainability
With Environmental Sustainability Increasing Pollution Treatment Expenses (In Crs.) 10.8 9.7 5.9 4.8 2.6 FY12 FY13 FY14 FY15 FY16 It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses Internationally recognised processes that as a % of Reve
Slide 17: With Capacity Expansion
With Capacity Expansion Expansions Installed Capacity Production Capacity Utilisation FY17: (Completed) 94% – Expanded CPC Green Capacity by 9,240 9,240 480 TPA 80% 75% 74% 7,800 61% 7,428 6,881 Future plans 6,000 6,000 5,838 – Further Expansion of CPC Green 5,642 – New products in the pipeline
Slide 18: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Founder, Chairperson & MD Joint Managing Director and CFO Her role is that of a strategic decision Responsible for production, finance, and policy maker to ensure growth. marketing and overall developments of the company. Mr. Ga
Slide 19: With Awards & Accolades
With Awards & Accolades • Top Performer Women Entrepreneur-NON MSME • Trophy for self manufactured domestic sale of Dye 2016-17 Intermediates between Rs. 5 Crores to Rs. 15 Crores during the year 2014-15 • Second Award for self manufactured direct export of Dye Intermediates during the year 2014-15
Slide 20: Business Strategy
20 - .Business Strategy
Slide 21: Reinforcing Our Strengths…
Reinforcing Our Strengths… Strong Balance Sheet 0.1 Debt / Equity ratio Debt Rating : Care A for long term banking facility & Care Better Planning A1 for short term banking Achieved 80% capacity facility utilisation through better planning and ensuring higher plant uptime Training Provided training
Slide 22: … and Building a Sustainable Future
… and Building a Sustainable Future Widen our products portfolio with value added products Focus on developing strong business relationships with customers Focus on extending our presence in South East Asia, NAFTA and India to provide geographic hedge Maintain extensive supply chain network across t
Slide 23: Industry Opportunity
23 > _. Industry - Opportunity
Slide 24: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2019 : 8.4 1. Reduction in support by the Chinese government in terms of +10% Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 25: Strengths to drive Global Leadership
Strengths to drive Global Leadership Latest Technology Superior Products • Technology sourced from World • ZERO Product return till date Leader • Largest Exporter of VS : ~45% Share • Green Technology for Effluent • Largest Player of CPC Green Pigment Treatment key in Chemical Industry Customer Rela
Slide 26: Financials
Financials 26
Slide 27: Key Financial Parameters
Key Financial Parameters In Crs. Gross Profit EBITDA 113 73 +45.9% 74 79 +73.7% 64 33 32 27 25 6 FY13 FY14 FY15 FY16 9MFY17 FY13 FY14 FY15 FY16 9MFY17 PAT Cash PAT 45 48 +63.7% +61.3% 20 21 21 16 17 20 4 5 FY13 FY14 FY15 FY16 9MFY17 FY13 FY14 FY15 FY16 9MFY17 * Pigment business added in FY15 27
Slide 28: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 58.8% 73.2% 47.5% 32.4% 22.4% 22.4% 19.6% 26.8% 25.2% 16.1% FY13 FY14 FY15 FY16 Sep-16 FY13 FY14 FY15 FY16 Sep-16 Debt to Equity (x) Current Ratio (x) 0.8 1.8 1.2 1.3 1.0 1.1 0.4 0.3 0.3 0.1 FY13 FY14 FY15 FY16 Sep-16 FY13 FY14 FY15 FY16 Sep-16 * Sep-16 calc
Slide 29: Profit & Loss Statement
Profit & Loss Statement Particulars (In Crs.) Q3 FY17 Q3 FY16 Y-o-Y 9M FY17 9M FY16 Y-o-Y Net Revenue from Operations 71.7 49.6 44.5% 206.8 139.4 48.4% Raw Material 31.8 28.5 94.1 81.9 Employee Expenses 1.7 1.7 5.0 4.5 Other Expenses 10.8 9.7 34.8 28.7 EBITDA 27.4 9.8 180.7% 72.9 24.3 200.5% EBITDA
Slide 30: Profit & Loss Statement
Profit & Loss Statement Particulars (In Crs.) FY16 FY15 FY14 FY13 Net Revenue from Operations 187.83 199.99 144.99 95.90 Raw Material 109.33 125.77 81.23 70.60 Employee Expenses 6.25 5.76 3.93 1.70 Other Expenses 39.90 41.00 27.00 17.44 EBITDA 32.35 27.45 32.83 6.17 EBITDA Margin 17.2% 13.7% 22.6% 6
Slide 31: Balance Sheet
Balance Sheet Equity & Liabilities (In Crs.) Sept-16 Mar-16 Assets (In Crs.) Sept-16 Mar-16 Share Capital 7.31 7.31 Total Fixed Assets 67.28 60.47 Reserves & Surplus 105.12 77.69 Non Current Investments 28.50 22.50 Shareholders Funds 112.43 85.00 Long Term Loans & Advances 3.52 1.51 Long Term Borrow
Slide 32: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Mr. Vishal Nair / Ms. Neha Shroff cs@aksharchemindia.com vishal.nair@sgapl.net / neha.s
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