IG Petrochemicals Ltd. · NSE:IGPL
IG Petrochemicals — Q2 FY2016 Earnings Presentation
21 slides from IG Petrochemicals's earnings presentation, Sep 30, 2015
Slide 1: I G Petrochemicals Ltd Investor Presentation – Q2FY16
I G Petrochemicals Ltd Investor Presentation – Q2FY16 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by I G Petrochemicals 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: Company Overview
Company Overview Numero Uno Indian manufacturer of Phthalic Anhydride (PA) Flagship company of Dhanuka Group One of the largest PA manufacturer in the world Lowest Cost producer of Phthalic Anhydride (PA) globally Higher capacity utilization with continued Consumption Pull for Phthalic Anhydride Sel
Slide 4: Focused Management
Focused Management Mr. M M Dhanuka: Chairman Mr. Nikunj Dhanuka: Managing Director Shri M M Dhanuka is B.E.(Chem) and Promoter of the A Commerce and a Management Graduate and Company Promoter of the Company Possesses over 35 years of varied experience and Possesses diverse experience in hand
Slide 5: Phthalic Anhydride (PA)
Phthalic Anhydride Phthalic Anhydride (PA) PA is a PA is a versatile PA is used as an PA is used in a Applications for downstream intermediate in intermediate for variety of PA are product of organic the production application in increasing Orthoxylene chemistry of Plasticizers, both consumer rapidl
Slide 6: End User Industries
End User Industries Plasticizers Paints CPC (Color Pigments) 16% 10% 41% 14% 19% Others Unsaturated Polyester Resin (UPR) 6
Slide 7: Phthalic Anhydride (PA): Varied Applications
Phthalic Anhydride (PA) : Varied Applications Pipes Textile Dyes Paints Packaging Materials Plastic Products Printing Inks 7
Slide 8: Manufacturing Capacity
Manufacturing Capacity Total Capacity Brownfield expansion of 1,69,250 MTA 53,000 MTPA (PA 3) Brownfield expansion of 50,000 MTPA (PA 2) De-bottlenecking of capacity 21,250 MTPA Started production with initial capacity of 45,000 MTPA (PA 1) 8
Slide 9: Manufacturing Facilities
Manufacturing Facilities Located at MIDC, Taloja in Raigad District, Maharashtra 3 units at Single Location 50 Km away from Jawaharlal Nehru Port Trust (JNPT), Nhavasheva, Mumbai, Maharashtra Proximity to India’s Chemical Hub 9
Slide 10: Key Customers
S Key Customers coeuU Jv KANSAI ASHLARD. NEROLAC PAINTS LIMITED With good chemistry great things happen? AQ Cc ® MEL ' AARTI a LIMITED World Leader in Resin Technology AkzoNobel Sli x ISCOrT BADER sal Mj a 10
Slide 11: Consumption Pull for Phthalic Anhydride
Consumption Pull for Phthalic Anhydride 01 02 03 Global market Better economic Stabilized Crude improvements - scenario influence Prices – Better Well positioned to demand for the Realizations grab the product in opportunities downstream markets 04 05 Infrastructure Consumption to Thrust – Strong &
Slide 12: Consumption Pull for Phthalic Anhydride
Consumption Pull for Phthalic Anhydride Stable crude prices - Long term Demand on track Drastic drop in crude prices – Buyers put-off thus increase in the production purchases in anticipation of further drop -3% +10% -39% -1% 112 109 970 99 1,204 1,188 886 60 FY12 FY13 FY12 FY13 FY14 FY15 FY14 FY15
Slide 13: Consumption Pull for Phthalic Anhydride
Consumption Pull for Phthalic Anhydride Global PA Consumption - ~5.5mn tones India’s GDP Growth Rate (%) +4% UPR Others 7.5% 7.9% 8.0% 20% 25% 6.9% 7.3% Plasticizer 55% 2013 2014 2015E 2016E 2017E Source: World Bank Asia-Pacific consumption is Resurging of Indian ~ + 50% economy – Pick up of dem
Slide 14: Key Competitive Advantages
Key Competitive Advantages 01 Lowest Cost Producer • In-house generation of power • Higher efficiency and reengineering process reduces cost per unit 02 Strategic Plant Location • Near to Port – Huge Saving in Freight Cost • Proximity to the Chemical Belt of India Better Recovery Process Enhancing S
Slide 15: Positive
Positive ROCE (%) 25.5% • DTA Sales and Catalyst cases decided 20.2% in Company’s favour – “Absolving the contingent liabilities related to 8.6% Excise and Customs duties to the 4.8% extent of Rs. 204.05 crs.” FY13 FY14 FY15 *H1FY16 • Upgrade in the Credit Rating for Long Term & Short Term Borrowing
Slide 16: Result Highlights
Result Highlights Sales EBITDA PAT Rs. In Crs +45% +225% 303 26 13 248 18 4 Q2FY15 Q2FY16 Q2FY15 Q2FY16 Q2FY15 Q2FY16 Sales EBITDA PAT +71% +185% 646 73 42 532 43 15 H1FY15 H1FY16 H1FY15 H1FY16 H1FY15 H1FY16 16
Slide 17: Margin Expansion
Margin Expansion EBITDA EBIT PAT 10.3% 8.9% 5.8% 5.3% 4.8% 1.3% Q2 FY15 Q2 FY16 13.8% 12.5% 6.6% 8.0% 5.9% 2.3% H1FY15 H1 FY16 17
Slide 18: Profit & Loss Statement - Quarterly
Profit & Loss Statement - Quarterly Particulars (Rs. In Crs) Q2FY16 Q2FY15 Y-o-Y Revenue from Operations 246.44 302.96 Other operating Income 1.55 0.27 Total Revenue 247.98 303.23 Cost of Material Consumed 197.93 275.12 Changes in Inventories -2.70 -17.57 Employee Expenses 7.22 7.22 Other Expenses 1
Slide 19: Profit & Loss Statement – Half Yearly
Profit & Loss Statement – Half Yearly Particulars (Rs. In Crs) H1FY16 H1FY15 Y-o-Y Revenue from Operations 528.79 645.40 Other operating Income 3.13 0.55 Total Revenue 531.91 645.94 Cost of Material Consumed 417.28 565.03 Changes in Inventories -14.40 -15.11 Employee Expenses 14.51 14.01 Other Expen
Slide 20: Balance Sheet
Balance Sheet Particulars (Rs.crs) Sep-15 Mar-15 Particulars (Rs.crs) Sep-15 Mar-15 Share Capital 30.80 30.80 Fixed Assets 324.89 326.78 Total Reserves 250.37 208.01 Tangible Assets 324.84 326.73 Intangible 0.05 0.04 Shareholder's Funds 281.16 238.81 Capital Work in Progress 1.83 0.77 Long-Term Borr
Slide 21: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : I G Petrochemicals Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L51496GA1988PLC000915 CIN: U74140MH2010PTC204285 Mr. R . Chandrasekaran -CFO Ms. Neha Shroff / Ms. Ruchi Rudra [email protected] [email protected] / rruchi