AARTI Industries Ltd · NSE:AARTIIND
AARTI Industries — Q4 FY2017 Earnings Presentation
28 slides from AARTI Industries's earnings presentation, May 22, 2017
Slide 1: Exchange filing cover letter for results presentation
AART( (NGUSTRIES CIM(TEG 71, Udyog Kshetra. 2nd Floor, Mulund - Goregaon Link Road, Mulund (West), Mumbai-400 080.INDIA @: 00-91-6797 6666, 2591 8195 e Fax : 00-91-22-2590 4806 / 2565 3185 / 3234 Regd. Office : Plot No. 801 / 23, G.I.D.C. Estate, Phase Ill, Vapi - 396 195, Dist. Valsad, Gujrat.INDIA
Slide 2: Q4 & FY17 Results Presentation
Aarti Industries Limited Q4 & FY17 Results Presentation
Slide 3: Disclaimer
Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with Bombay Stock Exchange and National Stock Exchange, and our reports to shareholders. The company does not undertake to
Slide 4: Content
Content At a glance Quarterly performance 5 year financial performance 3
Slide 5: At a glance
At a glance 4
Slide 6: Profile
Profile Aarti is one of the Globally ranks at Promoters are First Generation Technocrats Highly integrated operations Present in niche most 1st – 4th position • 5 of 6 Promoter Directors are engineers. 3 of 4 • Cost-efficient processes chemistry spaces. competitive for 75% of its Founder Promoters a
Slide 7: Transformation Journey
Transformation Journey Hitting right milestones at right time • Merged Salvigor Labs, Set up producers of DMS and Set up Alchemie Sulphuric Acid and additional (Europe) Ltd. a their downstream Aarti unit at Vapi to subsidiary in products into Aarti. Organics manufacture UK Merged Alchemie Pvt Ltd NC
Slide 8: Transformation Journey
Transformation Journey • Custom Synthesis • Scaled NCB capacity from 57,000 division (Vapi) received • Merged TPA to 75,000 TPA USFDA approval. manufacturing division of Anushakti • Expanded caffeine capacity • Upgraded Chemicals and Merged promoter’s investment hydrogenation unit • Drugs Ltd. into
Slide 9: What differentiates us
What differentiates us Product mix comprises more Most chemical companies focus than 125 research-led products on a handful of products We have focused on the manufacture Most chemical companies focus on a of integrated derivatives fragmented standalone product mix We have global capacities & are be
Slide 10: Global Partner of Choice
Global Partner of Choice Aarti Industries is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale-up engineering competence (asset utilization) Vendor servicing to Make-to-stock to Partner of Choice Transformed robust Make-to-o
Slide 11: Key Investment Theme
Key Investment Theme Clear Path to Value Creation Economies of Scale and Operational Efficiency: Global Partner of Global De-risked portfolio • Highly Backward Integrated Choice leadership in Increasing focus – multiple and gainful usage of by- engagements with key products – on high margin products
Slide 12: Quarterly Performance
Quarterly Performance 11
Slide 13: FY17 Highlights
FY17 Highlights Financial • FY17 Consolidated EBITDA up by 14% YoY to Rs. 653 crore with an EBITDA margin of 22% • FY17 Consolidated PAT up by 23% YoY to Rs. 316 crore • CRISIL has upgraded its ratings on our bank facilities and debt instruments to 'CRISIL AA-/Stable/CRISIL A1+' from 'CRISIL A+/Posi
Slide 14: FY17 Highlights
FY17 Highlights • In Q4FY17, operationalized captive co-generation power plant at Jhagadia, Kutch and Vapi. AIL now has a total of five power plants – two at Vapi and one each at Jhagadia, Kutch and Tarapur; which would help reduce power costs significantly • Operationalized Solar plants with aggreg
Slide 15: Chairman's Message
Chairman’s Message Commenting on the performance for Q4 & FY17, Mr. Rajendra Gogri – Chairman & M.D. at Aarti Industries Ltd. said, “We have ended the year on a strong note with volumes up 10% YoY in Q4 and up 8% YoY in FY17. I am happy to state we have delivered on our annual targets (15-20% growth
Slide 16: Q4 & FY17 P&L (Standalone)
Q4 & FY17 P&L (Standalone) Y-o-Y Y-o-Y Particulars Q4 Q4 FY17 FY16 Growth Growth (Rs. Crore) FY17 FY16 (%) (%) Gross Income from Operations 3,053 2,943 4% 835 752 11% • Depreciation has Net Income from Operations 2,827 2,698 5% 773 694 11% increased as new production facilities have Exports 1,415 1,
Slide 17: Q4 & FY17 – Speciality Chemicals (Standalone)
Q4 & FY17 – Speciality Chemicals (Standalone) Revenue 2,357 2,456 573 664 • Speciality Chemicals volume growth increased by 10% YoY in Q4 and 8% YoY in FY17 Q4 Q4 FY16 FY17 FY16 FY17 • Revenues are linked to pass through of key raw-material prices EBIT • FY17 EBIT expanded by 10% as value addition c
Slide 18: Q4 & FY17 – Other Businesses (Standalone)
Q4 & FY17 – Other Businesses (Standalone) • Debottlenecking and expansion activities have facilitated growth in pharma volumes Pharmaceuticals Pharmaceuticals Revenue EBIT • Since major fixed costs already built-in, incremental volumes 426 426 48 will result in significant increase in segmental prof
Slide 19: FY17 P&L (Consolidated)
FY17 P&L (Consolidated) Speciality Speciality EBIT Y-o-Y Particulars Revenue FY17 FY16 Growth (Rs. Crore) (%) 2,430 2,569 Gross Income from Operations 3,165 3,013 5% 504 566 Net Income from Operations 2,978 2,760 8% FY16 FY17 FY16 FY17 Exports 1,523 1,352 13% Pharmaceuticals Pharmaceuticals % of Tot
Slide 20: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Particulars As on As on (Rs. Crore) Mar 31, 2016 Mar 31, 2017 Shareholders Funds 1,189 1,426 Net Debt 1,290 1,561 Tangible Fixed Assets 1,246 1,695 • Strong execution of growth- Net Current Assets 876 964 oriented investments resulted in positive impact on returns on cap
Slide 21: 5 year financial performance
5 year financial performance 20
Slide 22: Revenue Performance (Consolidated)
Revenue Performance (Consolidated) Operating revenues have Revenue Export Deep engagement with grown on the back of global customers in 4,000 CAGR: 8.7% strong volume growth in Speciality chemicals and 2,908 2,780 2,927 3000 key business segments 3,000 2,632 pharma. In addition, part and better prod
Slide 23: EBIT Performance (Consolidated)
EBIT Performance (Consolidated) Higher growth relative to EBIT revenue highlights value CAGR: 16.6 % 615 addition delivered by AIL 542 447 333 366 FY13 FY14 FY15 FY16 FY17 Speciality Chemicals Pharmacuticals Home & Personal Care CAGR: 15.4% 566 CAGR: 52.0% 48 5 504 408 39 4 36 319 333 30 3 9 1 (0) F
Slide 24: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) Gross Profit (Rs. Cr.) & Gross margin EBITDA & Net Profit (Rs. Cr.) 1500 41.3% 44.9% 50% 800 316 400 38.8% 36.0% 37.0% 257 40% 600 206 300 1000 30% 134 162 400 200 20% 500 200 100 1076 1244 1422 361 401 466 572 656 10% 813 947 0 0% 0 0 FY13 FY14 FY15 FY16 FY17 F
Slide 25: Financial Highlights – (Consolidated)
Financial Highlights – (Consolidated) 21.1% 20.0% 21.2% 23.8% 23.4% 25.9% 4,000 25.0% 1,500 24.1% 30.0% 21.8% 20.0% 20.0% 20.0% 25.0% 3,000 1,000 20.0% 15.0% 2,000 15.0% 10.0% 500 10.0% 1,710 2,006 2,193 2,400 2,862 1,016 1,114 1,362 1,000 756 871 5.0% 5.0% 0 0.0% 0 0.0% FY13 FY14 FY15 FY16 FY17 FY1
Slide 26: About Us
About Us Aarti Industries (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale- up engineering competence (asset utilization)
Slide 27: Contact Us
Contact Us For further information please log on to www.aartigroup.com or contact: Mr. Chetan Gandhi / Mrs. Mona Patel Aarti Industries Limited Tel: +91 22 6797 6666 Email: [email protected] Vikram Rajput / Shiv Muttoo CDR India Tel: +91 22 6645 1223/1207 Email: [email protected] shiv@cdr-indi
Slide 28: Thank You
Thank You 27