Paradeep Phosphates Ltd. · NSE:PARADEEP
Paradeep Phosphates — Investor Presentation (July 2023)
42 slides from Paradeep Phosphates's investor presentation, July 2023
Slide 1: Investor Presentation July 2023
Investor Presentation www.paradeepphosphates.com July 2023 Nourishing the Future - Feeding the Nation
Slide 2: Agenda
Agenda • PPL Investment Case • Industry Dynamics • Environment, Social and Governance • Financial Performance Highlights 2 Page 2 of 30 2
Slide 3: PPL Investment Case
PPL Investment Case Page 3 of 30
Slide 4: Business Overview
Business Overview Paradeep Phosphates is India’s second largest integrated phosphatic private sector company ▪ Paradeep Phosphates Limited (PPL) is India’s second largest private sector phosphatic company with a capacity of 3.0 MMTPA (finished fertilizers NPK, DAP and Urea) 3.0 MMTPA 15 States ▪ Div
Slide 5: PPL Investment Case
PPL Investment Case Backward integration and 3 MMTPA fungible capacity resulting in higher market share and competitive EBITDA / tonne India’s 2nd largest private sector phosphatic fertilizer 1 manufacturer with pan-India distribution capability 2 Competitive EBIDTA per tonne in the industry led by
Slide 6: Competitive Positioning
Competitive Positioning Manufacturing Comprehensive Product Backward integration of Capabilities Portfolio rock phosphate Paradeep capacity 1.8 MTPA: Consumer product portfolio: Raw material: NPK / DAP – 1.8 MTPA Five grades of NPK Stable source of raw materials, especially Goa capacity 1.2 MTPA: DA
Slide 7: FY23 Operational Highlights
FY23 Operational Highlights Strengthened total capacity by 150% to reach a run rate of 3 MMTPA of finished fertilizers Q1 Q2 Q3 Q4 • Completion of revamp of three • Goa plant started operating • Successfully completed the • Achieved highest ever monthly out of four granulation trains at all three tr
Slide 8: Raw Material and Operational Backward Integration
Raw Material and Operational Backward Integration Established long-term agreements with suppliers to ensure a secure and competitive cost structure ▪ PPL sources raw materials locally and primarily from Morocco, Jordan, Qatar, Saudi Arabia and Canada Primary Raw Materials ▪ Long-term agreement with
Slide 9: Core PPL Product Portfolio
Core PPL Product Portfolio Well diversified product portfolio to cover the entire range of the non urea fertilizer market • Leadership position in the non-urea fertilizer market with diversified product portfolio ensuring that farmers have access to the right products to improve their yields • The p
Slide 10: New Launches
New Launches NPK 14:28:14 NPK 24:24:00 NPK 14:28:0 NPK14:35:14 • Contains Nitrogen, Phosphorus • It contains two major plant • Contains a minimum of 24.0% • Complex fertilizer containing all and Potassium in the ratio of nutrients, Nitrogen and Nitrogen and 24.0% Phosphorous major nutrients with sci
Slide 11: PPL Industrial Product Portfolio
PPL Industrial Product Portfolio Innovative high margin products that improve soil health and yield Phospho-gypsum Zypmite Sulphuric acid HFSA • Phospho-gypsum contains • Zypmite is a micronutrient mixture • Sulphuric acid is one of the raw • HFSA is an inorganic compound, Sulphur and Calcium in the
Slide 12: Manufacturing Locations
Manufacturing Locations Location Paradeep, Odisha Zuarinagar, Goa Area (Acres) 2,282 260 Target Market East, Central and South West, Central and South DAP, NPK-20, N-12, N-10, NPK-10, N-12, N-14, N-19, Feriliser Products N-14 N-28, DAP, Urea Installed fertilizer NPK / DAP: 0.8 Capacity NPK / DAP: 1.
Slide 13: Sales and Distribution Network
Sales and Distribution Network PPL Total States Currently Present 15 Regional Marketing Offices 21 Stock Points 512+ No. of Dealers 5,300+ No. of Retailers 72,900+ Farmers Covered ~ 8+ Mn • Structured distribution network facilitates efficient sale of products and promotes brand visibility • Underta
Slide 14: Snapshot of Integrated Manufacturing Process
Snapshot of Integrated Manufacturing Process Feedstock Processing End Product Sulphur Steam (Imported) Sulphuric acid plant Turbine generator Power Sulphuric acid Gypsum pond Phospho gypsum Phospho Rock phosphate Phosphoric acid plant gypsum (Imported from OCP Group) DAP / NPK Phosphoric acid Granul
Slide 15: PPL Growth Strategy
PPL Growth Strategy • Expand into allied areas such as crop protection and specialty plant nutrition • To achieve best capacity utilization for 3 MMTPA capacity (1.8 MMTPA at Paradeep Capacity Utilization and Product Plant and 1.2 MMTPA for Goa Plant) Diversification • To have the product mix aligne
Slide 16: Growth Drivers in FY 2024
Growth Drivers in FY 2024 Paradeep Phosphates is looking to capitalize on the following drivers to grow topline and bottom-line in FY 24 01 Million Incremental Potential to generate Value Added NPKs 33% Lesser Fixed Capacity along with additional EBIDTA beyond DAP Cost Per Ton Backward Integration •
Slide 17: Industry Dynamics
Industry Dynamics Page 17 of 30
Slide 18: Key Macroeconomic Growth Drivers
Key Macroeconomic Growth Drivers Food Security Policy Support Soil Health Dietary Shifts • The adequate use of fertilizers and • The Indian government has • Roughly one third of the world’s • Consumers, particularly in high- efficient nutrient management implemented a number of policies soil is degr
Slide 19: Government Initiatives: More Space For Growth
Government Initiatives: More Space For Growth Favorable policy environment to bring focus to balanced nutrition Indian Fertilizer Market • Nutrient Based Subsidy (NBS) Scheme to promote (Rs. Billion) balanced use of fertilizers, improving agricultural productivity, promoting the growth of the indige
Slide 20: NPK Fertilizer Composition Trend
NPK Fertilizer Composition Trend N – P – K Composition Trend Key Observations 7.2 6.7 6.6 • NPK (Nitrogen, Phosphorus and Potassium) are the macro nutrients required for the crop growth 5.8 • Ideal target ratio of NPK mix for balanced soil health and crop growth is 4:2:1 • Excess of Nitrogen can dis
Slide 21: Environment, Social and Governance
Environment, Social and Governance Page 21 of 30
Slide 22: Key Highlights of the Sustainability Report
Key Highlights of the Sustainability Report Key Material Topics and Materiality Index Environmental Social Governance - 276,506 KwH Total - 2,480 employees - 60% Independent renewable including contractual Directors on Board energy consumed workers - 100 % Employees - 97% Waste recycled - 25 Average
Slide 23: Sustainability a Core Pillar of Strategy
Sustainability a Core Pillar of Strategy 255 kWh solar module has been installed within the With reference to last year, PPL has saved 225,191 Paradeep PPL township tCO2e GHG emissions PPL has undertaken rainwater harvesting at the captive 6.85 Lacs Cumulative trees planted since inception lake of 2
Slide 24: Sustainability a Core Pillar of Strategy
Sustainability a Core Pillar of Strategy The Company has strong workforce of Total 2,480 employees and workers The Company has outreach of 8+ Million Farmers The Company spends average 43 Training sessions which reached over 20,000 farmers 25 training hours for employees PPL is strongly committed to
Slide 25: Sustainability a Core Pillar of Strategy
Sustainability a Core Pillar of Strategy No environmental, social or ethical 5 out of 9 Board of Directors are Independent litigation identified against the Company 100% of employees trained on 27001 : 2013 ISO Certified Information System code of conduct and HR policies Formalisation of Prevention
Slide 26: 2022 Sustainability Report Highlights
2022 Sustainability Report Highlights Aligned with United Nation’s SDG Reduce environmental impact by localizing Provided regular basic health facilities via the the raw material Molten Sulphur from Indian ‘Mobile Health Van’ initiative led by a team of Oil Corporation Limited (IOCL). This trained d
Slide 27: Farmer Engagement: FY2023
Farmer Engagement: FY2023 Committed to creating a food secure nation through innovative and affordable solutions for the farmers 7,000+ Farmer Meetings 700+ Crop Seminar 230+ Retail Meeting 1,000+ Demonstrations 5,000+ Campaigns Farmer Training School (FTS) Mobile Soil Testing Labs - Odisha Digitali
Slide 28: Certifications and Accreditation
Certifications and Accreditation Paradeep Plant Goa Plant • Certified as a premium member of the British Safety Council • Bureau veritas certification holding SAS – UK Branch for • Obtained product steward excellent management excellence certificate under system and control IFA protect and sustain s
Slide 29: Awards & Recognitions
Awards & Recognitions Industry Recognition Awards CIDC Vishwakarma Award Accolades by CII for CSR Golden Peacock Excellence Award by Best Professionally Managed Co. Energy Conservation Initiatives Award - 2022 Odisha CSR Forum - 2022 Make in Odisha Conclave - Nov 2022 Exceed Award 2022 on OSH in PAP
Slide 30: Experienced Board of Directors (1/2)
Experienced Board of Directors (1/2) • Holds a bachelor’s degree in • Chairman of Fertilizer Association • A full-time position as the Adviser commerce from University of of India (FAI) and is a member of to the CEO and Chief Economist Calcutta the Board of Directors of of OCP, Morocco International
Slide 31: Experienced Board of Directors (2/2)
Experienced Board of Directors (2/2) • An experienced Civil Servant, retired from Indian • Holds a bachelor’s and master’s degree in English from Utkal Administrative Services (IAS), Skilled in Public Policy, University; retired officer from IAS batch of 1973 Administration, Strategic Planning, Indu
Slide 32: Management Team
Management Team • Holds master’s degree in • Board Member of Directors of Zuari Agro International Business from Indian Chemicals Limited ZACL, Fertilizer • Member of ICAI (Institute of Cost Institute of Foreign Trade (IIFT) and Association of India (FAI) & International Accountants of India) Bachel
Slide 33: PPL Financial Performance
PPL Financial Performance Page 33 of 30
Slide 34: FY23 Performance Highlights
FY23 Performance Highlights (in Million) Total Income EBITDA PBT Net Profit Rs. 133,407 Rs. 8,921 Rs. 4,262 Rs. 3,042 Goa Plant one time cost : Rs. 845 Goa Plant one time cost : Rs. 845 Post Goa Plant one time cost: Rs 845 Adjusted EBITDA : Rs. 9,765 Adjusted PBT : Rs. 5,106 70% Y-o-Y Adjusted EBITD
Slide 35: FY23 PPL Operational Highlights
FY23 PPL Operational Highlights (Production Volume) Total fertilizers DAP N-20 2,032,516 MT 675,056 MT 556,300 MT 63% Y-o-Y (4)% Y-o-Y 46% Y-o-Y Other NPK Sulphuric Acid Phosphoric Acid 414,360 MT 1,202,865 MT 302,545 MT 230% Y-o-Y (4)% Y-o-Y 1% Y-o-Y Industrial Products Urea Production: 386,800 MT
Slide 36: Annual Performance Trends
Annual Performance Trends Strong track record of financial performance, registering highest ever annual Revenue of Rs. 133,407 mn, with 70% a(inY-o-Y growth Rupees Million) Revenue from Operations EBITDA and Margins 32% 17% 133,407 CAGR 8,921 CAGR 7,104 78,587 5,615 4,808 4,947 51,647 43,579 41,929
Slide 37: Leverage Profile and Working Capital Cycle
Leverage Profile and Working Capital Cycle (In Millions) FY20 FY21 FY22 FY23 Key Observation Long Term Debt 1,394 1,134 5,282 6,119 Short Term Debt 20,791 11,378 24,261 40,192 • Working capital management, cash flow conversion Total Debt 22,185 12,512 29,543 46,311 cycle has remained efficient Less:
Slide 38: Key Return and Leverage Ratios
Key Return and Leverage Ratios ROCE % ROE % Net Debt / Equity 26.0% 26.4% 24.3% 24.5% 19.7% 2.05x 20.9% 13.0% 1.38x 1.3x 12.5% 11.0% 10.6% 1.06x 0.63x FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • Borrowings are primarily short term in nature utilized to procure raw ma
Slide 39: Consolidated Financial Performance Summary
Consolidated Financial Performance Summary (in Rupees Million) Full Year Y-o-Y (Rs. Million) FY2023 FY2022 Growth(%) Revenue from Operations 133,407 78,587 70% Other Income 911 393 132% Total Income 134,318 78,980 70% Cost of Material Consumed 104,397 52,462 99% Purchase of Trading goods 1,823 14,28
Slide 40: Share Holding Pattern Top Shareholders 07th July 2023
Share Holding Pattern Top Shareholders 07th July 2023 Promoters Group % PPL Shareholdings # Insurance ZACL* 50-50 Joint Companies Venture 5% Foreign Portfolio Investors ZMPPL** 5% OCP Group 56.1 % Paradeep Phosphates Mutual Funds (DII) 18% Promoter group 56% Top Shareholders# in DII, FII and Insuran
Slide 41: Disclaimer and Contact Information
Disclaimer and Contact Information Disclaimer This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to “Paradeep Phosphates” future business deve
Slide 42: Thank You
Thank You Registered Office Paradeep Phosphates Limited 5th Floor, Bayan Bhavan Pandit Jawaharlal Nehru Marg Bhubaneswar - 751 001, Odisha, India Contact: +91 22 6169 5988 [email protected]
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