Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q1 FY22 Earnings Presentation
23 slides from Tata Chemicals's earnings presentation, Aug 5, 2021
Slide 1: Submission of Analysts/Investors Presentation to exchanges
August 5, 2021 The General Manager The Manager, Listing Department Corporate Relations Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra-Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E) Dalal Street Mumbai 400 051 Mumbai 400 001 Symbol: TATACHEM Scrip Code: 500
Slide 2: Investors Communication Quarter ended June 2021: Q1 FY22
qp TATA TATA CHEMICALS Investors Communication Quarter ended June 2021 : Q1 FY22 Responsive. Resilient. Responsible.
Slide 3: Forward-looking statements disclaimer
“This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of thes
Slide 4: Company journey and global footprint
Till FY18 FY19 FY20 FY21 FY17 Divestment of Divestment of Investment Completed Urea Business Phosphate approval of ₹ Demerger of Fertiliser Business 2,700 Cr for Consumer expansion of Products Business Started to build Mithapur 5,000 MT operations Prebiotic plant Acquired Silica Focused Chemistry Pl
Slide 5: Basic Chemistry, Specialty Products and Rallis India
Basic Chemistry Products Specialty Products Rallis India Limited* Prebiotics Soda ash, Bicarb, Salt, Marine Crop Care, Crop Protection and Seeds Major Products Specialty silica chemicals and Cement (herbicides, fungicides and insecticides, etc) Soda Ash: 9,17,000 TPA Installed Prebiotic - 5,000 TPA
Slide 6: International operations: US, UK, Kenya
US UK Kenya Soda Ash, Bicarb Major Soda Ash Salt Soda Ash Products Soda Ash: 400,000 TPA Installed Bicarb: 130,000 TPA 2,450,000 TPA 350,000 TPA Capacity Salt: 430,000 TPA Lostock & Winnington, UK Location Wyoming, US Middlewich, UK Magadi, Kenya 5
Slide 7: TCL Innovation Centre
TCL Innovation Centre 228 Technically skilled Scientists in R&D 3 State-of-the-art innovation Centers Strong intellectual property |152 patents held (cumulative); 93 Active Applications Rallis India R&D 6
Slide 8: Financial Highlights Q1 FY22
Financial Highlights Q1 FY22
Slide 9: Q1 FY22 financial highlights
₹ 2,977 Cr ₹ 601 Cr (20%) ₹ 342 Cr (11%) ↑ 27% vs. Jun20 ↑ 67% in Jun20 ↑ 362% in Jun20 Soda Ash Volumes Q1 FY 22 898 Kts Soda ash volume recovery on a sequential quarter basis and above FY20 levels Q1 FY 21 624 Kts Soda ash pricing recovers on sequential basis Standalone Salt Volumes Q1 FY 22 408 K
Slide 10: Standalone and consolidated financials
Standalone | ₹ Crore 900 EBITDA EBITDA margin Operational PBT Non Operational PBT Profit After Tax PAT margins 841 28% 800 828 29% 100% 30% 30% 240 240 700 90% 28% 25% 142 158 282 220 220 80% 26% 25% 70% 200 600 200 24% 628 180 60% 180 17% 22% 20% 239 39 52 228 50% 101 20% 14% 20% 500 160 160 40% 18
Slide 11: Segment revenues and results
Consolidated Standalone ₹ Crore Q1 June20 Q4 Mar 21 Q1 June21 Var vs. PY Q1 June20 Q4 Mar 21 Q1 June21 Var vs. PY Basic Chemistry Products 1,672 2,111 2,173 500 612 792 770 158 Segment Revenues Specialty Products 676 520 797 122 16 49 57 41 Less: Inter Segment Revenue (3) (1) (1) 2 - - - - 2,345 2,6
Slide 12: Soda ash, bicarb and salt volumes for the quarter
Soda Ash | In Kts Sodium Bicarbonate | in Kts Salt Portfolio | in Kts 624 898 625 944 51 55 48 59 385 408 405 415 57 83 57 64 62 68 87 79 27 28 96 96 96 30 30 87 For the Quarter 580 580 387 372 312 309 319 28 31 298 21 18 118 167 117 213 Jun-20 Jun-21 Jun-20 Jun-21 Jun-20 Jun-21 Jun-20 Jun-21 Jun-20
Slide 13: Revenue, EBITDA and PAT trends
Standalone | ₹ Crore Consolidated | ₹ Crore 812 841 828 759 2,977 900 719 734 717 708 2,771 3,50 0 2,584 2,623 2,609 2,606 2,636 800 628 2,378 2,348 3,00 0 700 2,50 0 Revenue 600 500 2,00 0 400 1,50 0 300 1,00 0 200 500 100 - - Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22
Slide 14: Regional sales volumes by quarter
→ India volumes steady and 400 1,400 350 1,200 300 above pre covid levels . 184 1,000 India | In Kts 163 168 167 570 571 568 580 158 159 553 250 US | In Kts 154 151 541 → US export volumes 800 200 475 475 118 600 389 continues strong recovery. 150 253 295 276 257 309 319 197 181 400 139 100 → UK vol
Slide 15: Revenue movement and Basic Chemistry Products commentary
Revenue Movement | ₹ Crore → India operations had good traction across product portfolio vs June20. 6 3,000 82 → US volumes continues upward trend; Export volumes 2,900 34 robust. Spot market sees price recovery and expect contract 2,800 91 market to follow on renewals 2,700 → UK had steady volumes
Slide 16: Basic Chemistry Products key highlights
Key Highlights Segment Revenue at ₹ 2,173 Cr (up by 30%) → Revenue at ₹ 770 Cr (up 26%), EBIT was up at ₹ 234 Cr up (vs ₹ 159 Cr PY). Segment results at ₹ 346 Cr (up by 209%) India → Overall margins improved on account of higher volumes partially impacted due to higher input and energy cost. 2,111 2
Slide 17: Specialty Products and Agro Science highlights
Key Highlights Segment Revenue at ₹ 797 Cr (up by 18%) Segment results at ₹ 93 Cr vs ₹ 93 Cr PY → Specialty products business in India continues to be on the growth path. → Revenue increased for the quarter to ₹ 57 Cr (up by 256%), on the back of increasing Specialty volumes across products portfoli
Slide 18: Statement of Profit and Loss for the quarter
Statement of Profit and Loss for the quarter ended Units TCL India US UK Kenya Rallis Consolidated ₹ Cr PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var PY CY Var Revenues 628 828 200 619 837 218 316 407 91 100 134 34 659 741 82 2,348 2,977 629 EBITDA 156 239 83 35 173 138 28 29 1 10 25 15 124 122
Slide 19: Mithapur expansion on track
Mithapur expansion is on track; with some minor delays around availability of labour due to Covid Capacity (Lacs MT) Current Status Products H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 Current Additional Soda Ash 9.17 2.30 0.45 Lacs 1.85 Lacs Bicarb 1.05 0.70 0.7 Lacs Salt 11.70 3.30 1.65 Lacs 1.65 Lacs
Slide 20: Outlook by region: current year and near term
Current Year Near Term • Grow volumes & maximize realizations in soda ash (price • First tranche of Soda Ash, Bicarb & Salt expansion on stream increased in June & July 21) by FY23, delivering incremental revenues Standalone • Timely execution of capacity expansion: Salt 165k MT by • Continue focus
Slide 21: Awards and recognitions; employee safety and health
Awards and Recognitions Continue focus on Employee Safety & Health ‘Product Innovator of the Year Award’ at FICCI Chemicals and Petrochemicals Awards 2021 Key Employee Engagement Initiatives UK : Mental Health Awareness USA : Cinco de Mayo Celebration Kenya : Quarterly Communication 20
Slide 22: Earnings per share, exchange rates, shareholding pattern
Consolidated Earnings Price Per Share | In ₹ Exchange | Average rate per ₹ USD GBP 11.3 103.16 94.19 95.19 95.99 97.09 7.3 6.3 2.8 0.5 0.5 75.87 75.07 74.63 74.21 73.73 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Shareholding Pattern as on June 21 | In % Non institut
Slide 23: Contact details for queries
For any queries please contact below : Nandakumar Tirumalai [email protected] Sridhar Radhakrishnan, Sameer V Kulkarni [email protected], [email protected] Gavin Desa [email protected] Suraj Digawalekar [email protected] 22