Srf Limited · NSE:SRF
Srf — Investor Presentation (March 2015)
48 slides from Srf's investor presentation, March 2015
Slide 1: SRF Limited Investor Presentation
SRF Limited Investor Presentation Hongkong, March 2015 Diversity. Innovation. Performance
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ mat
Slide 3: Contents
Contents Overview Business Segments Consolidated Snapshots Outlook Other Milestones 3
Slide 4: Overview
Overview
Slide 5: History & Heritage
Overview History & Heritage Our legacy since 1889 Known as one of India’s respected business houses Winner of Deming Prize Group known for philanthropic work 2004: Tyre Cord Business Run and manage some of the premiere 2012: Chemicals Business academic institutions of India 5
Slide 6: Operations
Overview Operations SRF is • A multi-business manufacturing entity • An Indian multinational • Engaged in the manufacture of chemical based industrial intermediates 9 plants in India 4 plants abroad 6
Slide 7: Business Leadership
Overview Business Leadership SRF has been one of the early players in India to enter: Nylon tyre Belting Coated cord fabrics fabrics fabrics Specialty chemicals Engineering Refrigerants plastics • First and the only company in India so far to have developed technology to manufacture HFC-134a, an ozo
Slide 8: Market Rankings
Overview Market Rankings Global No. 2 Belting fabrics Nylon 6 tyre cord fabrics Tyre cords Belting Fishnet Domestic Market fabrics twine Leader Engineering Specialty Refrigerants plastics chemicals Domestic No. 2 Packaging films 8
Slide 9: At a Glance as on 31st March 2014
Overview At a Glance as on 31st March 2014 Revenues EBIT No of Business Segments No of Countries with No of Countries Exporting Global Workforce Manufacturing Plants to Consolidated, FY14 figures in $ million (USD/INR=60) 9 rounded off
Slide 10: Business Profile
Overview Business Profile Technical Textiles Chemicals & Polymers Packaging Films Fluorochemicals Films for Flexible Packaging • Tyre cord fabrics • Refrigerants • Bi-axially Oriented (nylon & polyester) • Pharma grade propellant Polyethylene • Belting fabrics • Chlorinated solvents Terephthalate (B
Slide 11: Shareholding Pattern
Overview Shareholding Pattern Shareholding Pattern (27th Feb’15) DII 12.5% % of total Prominent Shareholders FIIs 13.5% capital UTI Mutual Fund 3.92 DSP Mutual Fund 3.96 Sundaram Mutual Fund 3.98 Promoters 52.4% Public 16.4% Amansa Capital 4.09 Government Pension Fund Global 1.85 GOLDMAN SACHS 1.60
Slide 12: SRF share performance VS Nifty
SRF share performance VS Nifty SRF share had hit a 52 week high of Rs 1025 translating into a market cap of almost 5900 cr. SRF is a part of MSCI Index 12
Slide 13: Path of Progress
Overview Path of Progress Commences production of Commenced production Shri Ram Fibres nylon engineering plastics of coated fabrics renamed as SRF Ltd 1970 1979 1986 1990 Incorporated as 1974 1983 1989 Shri Ram Fibres Commissioning of Belting Entered Chemicals Business Commenced with production of r
Slide 14: Business Evolution
Overview Business Evolution Relative Composition (in %) of Businesses FY11 Revenue* FY14 Revenue $579 mn $669.6 mn Successful Transformation: Multiple business entity with focus 54.2% 53.4% 363.3mn on knowledge Technical Textiles 309.3mn based industries 23.8% Chemicals & Polymers 21.5% 159.4mn 124.
Slide 15: Growth Levers
Overview Growth Levers Focus on building Nurture innovation leadership businesses through R&D Build and Reposition maintain market portfolio towards leadership in knowledge based business Build a Company products segments known and respected for its R&D Continue to build capabilities De-risk from ne
Slide 16: Leadership Team
Overview Leadership Team Mr. Arun Bharat Ram Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram Chairman Managing Director Dy Managing Director Mr. Rajdeep Anand Mr. Sushil Kapoor Mr. Rajendra Prasad President (CTG) President & CEO (TTB) President & CFO Mr. Prashant Yadav Mr. Prashant Mehra Mr. Anurag Jain
Slide 17: Business Segments
Technical Textiles Chemicals & Polymers Packaging Films Business Segments
Slide 18: Nylon Tyre Cord Fabrics
Technical Textiles Chemicals & Polymers Packaging Films Nylon Tyre Cord Fabrics Despite increase in radialisation of bus & truck tyre segment, the demand for NTCF is expected to remain stable on account of growth in Tractor, 2 wheeler and OTR tyre segments Continues to be the domestic market leader
Slide 19: Polyester Tyre Cord Fabrics
Technical Textiles Chemicals & Polymers Packaging Films Polyester Tyre Cord Fabrics Global surplus in PTCF leading to lower realisations; yarn developed for alternate applications The only manufacturer of polyester tyre cord fabrics in India 19
Slide 20: Belting Fabrics
Technical Textiles Chemicals & Polymers Packaging Films Belting Fabrics Largest manufacturer of belting fabrics in India and second largest in the world; domestic market share ~60% Segment reporting healthy performance; anticipated improvement in infrastructure sector to provide further boost Facili
Slide 21: Coated Fabrics
Technical Textiles Chemicals & Polymers Packaging Films Coated Fabrics State-of-the-art coating line offers PVC coated fabric with Acrylic / PVDF finishes and polyurethane coated fabrics Integrated manufacturing facility from polyester yarn to fabricated articles Economic slowdown has impacted perfo
Slide 22: Laminated Fabrics
Technical Textiles Chemicals & Polymers Packaging Films Laminated Fabrics Laminated fabric is a combination of a polyester fabric with a film (PVC or another) on either or both sides Lower advertising spends on account of slowdown has led to subdued demand New modern facility in Uttarakhand, India 2
Slide 23: Technical Textiles Key Highlights
Technical Textiles Chemicals & Polymers Packaging Films Key Highlights Revenue Operating Profits Consolidated Standalone Consolidated Standalone 356.5 354.7 363.3 309.3 30.0 300.8 27.2 27.9 19.2 20.5 75.4 72.1 7.4 8.6 6.9 69.4 FY11 FY12 FY13 FY14 FY14 Q1 Q2 Q3 FY11 FY12 FY13 FY14 FY 14 Q1 Q2 Q3 FY15
Slide 24: Business Segments
Technical Textiles Chemicals & Polymers Packaging Films Business Segments
Slide 25: Fluorochemicals Business
Technical Textiles Chemicals & Polymers Packaging Films Fluorochemicals Business Refrigerant portfolio consists of R-22, R-134a and HFC blends: R-410A, R-404A and R-407C Over 40% share of the Only manufacturer Indian market besides being of R-134a in India well accepted worldwide Global distribution
Slide 26: Specialty Chemicals
Technical Textiles Chemicals & Polymers Packaging Films Specialty Chemicals Strong knowledge of Fluorination Business and other halogen chemistry along More than 25 years of with concerted focus on R&D led experience handling fluorine to development of complex Organo- molecules; one of the most fluo
Slide 27: Driving Innovation through R&D
Driving Innovation through R&D • Developing internal competencies and capabilities to create breakthrough process innovations • Equipped with state-of-the-art R&D facilities and an ingenious team of scientists and technologists • 2 R&D centres in India • Focus on developing new processes and technol
Slide 28: Chemical Complex at Dahej
Technical Textiles Chemicals & Polymers Packaging Films Chemical Complex at Dahej • Presently developing 126 acres out of 293 Operational acres in Phase I Units • Facilities to produce multiple products o Five Specialty with focus on fluorochemicals and Chemicals plants specialty chemicals o New Glo
Slide 29: Chemicals & Polymers Key Highlights
Technical Textiles Chemicals & Polymers Packaging Films Key Highlights Revenues Operating Profit Consolidated Standalone Consolidated Standalone 200.8 99 CER 172.5 159.3 159.3 Ex CER 73.3 124.5 43.8 57.9 49 70.2 22.8 31.8 31.8 53.4 53.3 51.1 22.2 42.3 127.5 128.7 101.7 12.8 14.3 12.4 26.8 28.8 15.6
Slide 30: Business Segments
Technical Textiles Chemicals & Polymers Packaging Films Business Segments
Slide 31: Packaging Films Key Highlights
Technical Textiles Chemicals & Polymers Packaging Films Key Highlights Global demand-supply mismatch; product is a pure Industry estimated to grow at commodity and goes apprx 5% p.a. globally and apprx through industry cycles; 12% p.a. domestically No new capacity addition announced Second-largest E
Slide 32: Overseas Operations
Technical Textiles Chemicals & Polymers Packaging Films Overseas Operations BOPP Plant at South Africa BOPET Plant at Thailand • Set up a greenfield BOPP film plant and a • Set up a greenfield BOPET film plant and a vacuum metallisation plant in KwaZulu Natal, vacuum metallisation plant in Rayong, S
Slide 33: Packaging Films Key Highlights
Technical Textiles Chemicals & Polymers Packaging Films Key Highlights Revenue Operating Profits Consolidated Standalone Consolidated Standalone 145.2 147.0 58.0 110.0 103.3 109.4 28.2 29.3 26.4 4.2 1.0 -0.8 4.0 1.8 2.7 1.2 FY11 FY12 FY13 FY14 FY14 Q1 Q2 Q3 FY11 FY12 FY13 FY14 FY14 Q1 FY15Q2 FY15Q3
Slide 34: Consolidated Snapshots
Consolidated Snapshots
Slide 35: Consolidated Financial Performance: Revenue
Consolidated Financial Performance Snapshots Trends Consolidated Revenue Standalone Revenue 667.3 669.6 630.5 579 73.3 43.8 569.5 22.8 CER 556.2 594 586.7 Ex CER 157.0 154.7 146.9 FY11 FY12 FY13 FY14 FY14 FY15 Q1 FY15 Q2 FY15 Q3 Business Segments Technical Textiles 356.5 354.7 363.3 CPB Packaging Fi
Slide 36: Consolidated Financial Performance: EBIT
Consolidated Financial Performance Snapshots Trends Consolidated EBIT Standalone EBIT 130.5 113.2 22.2 74.7 70.2 56.8 CER 108.3 42.3 50.7 Ex CER 25.3 22.8 19.0 43 32.4 FY11 FY12 FY13 FY14 FY14 FY15 FY15 FY15 Q1 Q2 Q3 Business Segments CER 99 CPB Ex CER Packaging Films Technical Textiles 58.0 70.2 57
Slide 37: Consolidated Financial Performance: PBIDT, PAT, EPS
Consolidated Financial Performance Snapshots Trends PBIDT PAT Consolidated Standalone Consolidated Standalone 159 81 144 22.2 14.8 CER 63 CER 110 70.2 Ex CER 88 88.6 Ex CER 42 42.3 PBIDT Margin% 47 36.1 136.8 27 PAT Margin% (Ex CER) 66.2 (Ex CER) 28.4 73.8 33.5 31.4 PBIDT Margin% 16.6 27 67.7 27.6 1
Slide 38: Net Worth and Gross Block
Consolidated Financial Performance Snapshots Trends Net Worth Gross Block 323 340 292 1,019 257 793 632 691 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 $ million (USD/INR=60) $ million (USD/INR=60) • Dahej facility to produce multiple products with focus on specialty chemicals and fluorochemicals • Retu
Slide 39: Dividend Payout, Net Debt, Returns
Consolidated Financial Performance Snapshots Trends Dividend Payout* (%) Net Debt: Equity (x) 41.2 1.02 0.8 25.0 26.4 0.58 0.59 20.4 FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14 * Including Corporate Dividend Tax RONW (%) ROCE 94.2 32 CWIP in $ Mn 69.6 22 ROCE (%) 13 29.4 24.2 8 18.8 13.9 18.7 7.9 FY11 F
Slide 40: Outlook
Outlook
Slide 41: Outlook: Technical Textiles
Technical Textiles Outlook Business • NTCF is expected to remain a key business in the segment and a generator of steady cash flow • Demand for NTCF to mirror Indian GDP growth as it is closely linked to the transportation sector • Improving macroeconomic environment to have a positive impact on lam
Slide 42: Outlook: Chemicals & Polymers
Chemicals & Polymers Outlook Business • Expanded R-134a capacities to assist sales improvement in the domestic and export markets • Loss of R-22 markets due to phase down for emissive use will be compensated by increasing feedstock use by the Specialty Chemicals segment • Future potential and prospe
Slide 43: Outlook: Packaging Films
Packaging Films Outlook Business • Robust domestic FMCG demand and fast urbanisation leading to healthy growth in demand: industry being cyclical, the situation is expected to turnaround in the near future • Focus on full utilisation of assets and incorporating more value-added products in the portf
Slide 44: Other Milestones
Other Milestones
Slide 45: Awards & Recognitions
Other Awards & Recognitions Milestones Winner of Deming Prizes for 2 businesses Chemicals Tyre Cord Business Business 2012 2004 CII-ITC SRF in Sustainability Awards Forbes’ 2008 Strong Commitment ‘Best Under a 2009, 2010 & 2011 Significant Achievement Billion List’ 2013 Sustainability 2011 Prize 45
Slide 46: CSR Awards
Other Awards & Recognitions Milestones CSR Awards 2012 Businessworld FICCI CSR Award Best CFO Award 2013 Aaj Tak Care Awards 2013 Greentech CSR Award 2012: ‘Best CFO’ presented by a leading Indian business magazine BusinessWorld 46
Slide 47: Concern for Community
Other Concern for Community Milestones Education Vocational Skills Undertakes up-gradation of government schools under ‘Quality Undertakes several initiatives to Education for All’ programme, improve the employability of people covering 90 primary and middle especially the younger generation schools
Slide 48: Thank you
Ze, SoRe We always find a better way Thank you