AksharChem India Ltd. · NSE:AKSHARCHEM
AksharChem India — H1 FY19 Earnings Presentation
34 slides from AksharChem India's earnings presentation, Nov 1, 2018
Slide 1: Cover letter to stock exchanges: Investor Presentation November 2018
® AksharChem Ref: Al(SHAR/SE/2018-19/1811/38 November 01, 2018 To; To, Deputy General Manager The. General nager (Listing) Department·ofCorporate Services National oek Exchange of India .Ltd. BSELimited 5th Flo , Exchange Plaza, 25 th Floor, P. J. Towers B a Kurla Complex, Dalal Street . andra (East
Slide 2: AksharChem (India) Limited Investor Presentation - November 2018
AksharChem (India) Limited Investor Presentation - November 2018
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by AksharChem (India) 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 4: Result Update
AksharChem . Result Update
Slide 5: Investment in Capacity Expansion for Future Growth
Investment in Capacity Expansion for Future Growth Production & Sales Capacity Built Up (MT) Volumes (MT) 11,400 Production Sales Quantity 1,680 +3.16% 9,720 4,633 4,564 4,424 +14.61% 4,043 FY18 H1 FY19- Capacity H1 FY18 H1 FY19 Capacity As on Date Addition 4
Slide 6: Financial Highlights Q2 & H1 FY19
Financial Highlights Q2 & H1 FY19* In Crs. Net Revenue from Operations EBITDA Profit After Tax +30% +40% -28% 85 16 10 66 11 7 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 EBITDA Profit After Tax Net Revenue from Operations +25% +4% -14% 161 23 24 17 129 15 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18
Slide 7: From the Chairperson's Desk
From the Chairperson’s Desk At AksharChem, we believe growth is the only constant in dynamic business environment. Innovation is our heritage, the foundation on which our Company is built. Our efforts focus on continuous improvement in products and processes. Our products comply with all internation
Slide 8: Update on Capex
AksharChem . Update on Capex
Slide 9: Capacity Utilisation
Capacity Utilisation Installed Capacity Production Capacity Utilisation 11,400* 100 94% 90 9,720 9,720 87% 9,240 9,240 80% 80% 80 75% 74% 8,441 70 7,800 7,786 7,428 6,881 60 6,000 5,838 5,642 50 4,633 40 30 20 10 0 FY13 FY14 FY15 FY16 FY17 FY18 H1 FY19 * Total Capacity available for the full year 8
Slide 10: Update on Expansion Plan
Update on Expansion Plan Existing Capacity Additional Capacity Post Expansion Capacity Proposed Projects (In TPA) (In TPA) (In TPA) ORGANIC PIGMENTS CPC Green 1,920 480 2,400 DYES & INTERMEDIATES H Acid - 1,200 1,200 SPECIALTY CHEMICALS Precipitated Silica - 10,000 10,000 CPC Green H-Acid Precipitat
Slide 11: Company Overview
AksharChem . Company Overview
Slide 12: We Have Developed The EDGE
We Have Developed The EDGE Largest exporter of VINYL SULPHONE in India with ~ 45% share in exports of this product 31% Revenue CAGR FY12-18 61% Net Worth CAGR FY12-18 85% Exports FY17-18 One of the largest exporters from India and among the largest players globally for CPC GREEN PIGMENT with a globa
Slide 13: With Legacy of Over 2 Decades
With Legacy of Over 2 Decades • CAPEX plan Promoted by Mrs. Became a listed entity announced for CPC CPC Green (Capacity Green, H-Acid & Paru M. Jaykrishna as IPO objective: to fund 1,440 TPA) Division of Precipitated Silica Audichem (India) Pvt. plant capacity . Asahi Songwon . Ltd. expansion from
Slide 14: With Right Products
With Right Products Dye Intermediates Pigments Products Vinyl Sulphone & H-Acid CPC Green Capacity 9,000 TPA 2,400 TPA Usage Intermediate product for Dye Used as colouring agents Manufacturing Key Acentanilide , Caustic Soda & CPC Blue, Aluminium Chloride Raw Materials Other Chemicals & Other Chemic
Slide 15: With Diversified End User Industry
With Diversified End User Industry Plastics Rubber Plastics CPC Green CPC Green CPC Green Ink Plastics Paint CPC Green CPC Green CPC Green 14
Slide 16: With Process & Quality
With Process & Quality Investment in Focus on Superior Quality Certifications + Process Automation Technologies Technology Driven Products Resulting In • Best Quality reliable products with zero product return in the history of the Company. • No bad debts during the history of the Company. Reduction
Slide 17: With State of the Art Manufacturing
With State of the Art Manufacturing Strategically Located in the Chemical Belt of Gujarat, at Mehsana Covering over 100,000 sq mt. of area Map not to scale. All data, information and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness. 16
Slide 18: With Expanding Footprints
With Expanding Footprints Netherlands United Kingdom Germany Russia Belgium Canada South Korea France EUROPE NORTH Italy USA AMERICA China Japan Spain Turkey India Taiwan Mexico UAE Thailand Philippines SOUTH Malaysia AMERICA Brazil Indonesia AUSTRALIA South Africa Presence in over 20 countries *Map
Slide 19: Investment on Environment for Sustainable Growth
Investment on Environment for Sustainable Growth Consistent Spending for Pollution Treatment Expenses (In Crs.) 12.0 11.6 10.8 9.7 7.5 FY15 FY16 FY17 FY18 H1 FY19 ➢ It takes over 3 years to get Environmental Clearances from the Government Annual Pollution treatment expenses ➢ Internationally recogni
Slide 20: With Experienced Board
With Experienced Board Mrs. Paru M. Jaykrishna Mr. Munjal M. Jaykrishna Founder, Chairperson & Mg. Director Jt. Managing Director & CEO Her role is that of a strategic decision Responsible for all Management and policy maker to ensure growth. decisions and overall developments of the company. Mr. Ji
Slide 21: With Awards & Accolades
With Awards & Accolades • Trishul Award for the • Top Performer Women • Special Trophy for self • Gold Award for the outstanding export Entrepreneur-NON MSME manufactured direct export outstanding export performance in Panel I: of Dyes of Rs. 25 Crores and performance in Merchant Dyes and Dye above
Slide 22: Business Strategy
AksharChem . Business Strategy
Slide 23: Reinforcing Our Strengths…
Reinforcing Our Strengths… Strong Balance Sheet Nil Debt as of Sept 2018. Debt Rating : Care A1+ for short term banking facility & CARE A+/CARE Better Planning A1+ for long term/short term bank Training facilities Achieved 87% capacity Provided training to utilisation through better technical and sh
Slide 24: … and Building a Sustainable Future
… and Building a Sustainable Future 02 04 01 03 Widen our products portfolio Focus on extending our presence in with value added products South East Asia, NAFTA and India to provide geographic hedge Focus on developing strong Maintain extensive supply business relationships with chain network across
Slide 25: Industry Opportunity
AksharChem . Industry Opportunity
Slide 26: Opportunity in the Industry
Opportunity in the Industry Dyes & Pigment (USD bn) ➢ The Indian production of dyes and pigments is expected to grow at 11.4% CAGR till 2019 : 8.4 1. Reduction in support by the Chinese government in terms of +10% ▪ Tighter pollution control norms : China’s National Environmental Protection Law 7.5
Slide 27: Strengths to drive Global Leadership
Strengths to drive Global Leadership AKSHARCHEM is compliant with INTERNATIONAL QUALITY and ENVIRONMENT STANDARDS ▪ Long term quantity contract with leading GLOBAL Customer CUSTOMERS Relationships ▪ Strong Relationship with the customers for more than 2 decades ▪ ZERO Product return till date Superi
Slide 28: Financials
AksharChem . Financials
Slide 29: Key Financial Parameters
Key Financial Parameters In Crs. Net Revenue EBITDA 15% 10% 248 264 77 200 188 161 42 32 27 24 FY15 FY16 FY17 FY18 H1 FY19 FY15 FY16 FY17 FY18 H1 FY19 PAT Cash PAT 24% 21% 53 58 31 35 16 17 20 21 15 17 FY15 FY16 FY17 FY18 H1 FY19 FY15 FY16 FY17 FY18 H1 FY19 FY17 was an exceptional year on the back o
Slide 30: Key Financial Parameters
Key Financial Parameters ROE (%) ROCE (%) 37.7% 47.5% 22.4% 26.8% 19.6% 25.2% 18.6% 18.7% 12.9% 12.0% Mar-15 Mar-16 Mar-17 Mar-18 Sep-18^ Mar-15 Mar-16 Mar-17 Mar-18 Sep-18^ Debt to Equity (x) Current Ratio (x) 0.4 2.9 2.5 0.3 1.3 1.7 0.2 1.1 0.0 0.0 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-15 Mar-16
Slide 31: Profit & Loss Statement - Q2 FY19
Profit & Loss Statement* - Q2 FY19 Particulars (In Crs.) Q2 FY19 Q2 FY18 Y-o-Y Q1 FY19 Q-o-Q Net Revenue from Operations 85.3 65.6 30% 75.5 13% Raw Material 48.0 39.5 48.8 Employee Expenses 2.5 1.6 2.1 Other Expenses 19.3 13.3 16.1 EBITDA 15.6 11.2 40% 8.5 85% EBITDA % 18.3% 17.0% 11.2% Other Income
Slide 32: Profit & Loss Statement - H1 FY19
Profit & Loss Statement* - H1 FY19 Particulars (In Crs.) H1 FY19 H1 FY18 Y-o-Y FY18 Net Revenue from Operations 160.8 128.9 25% 264.3 Raw Material 96.8 77.6 160.3 Employee Expenses 4.6 3.0 8.4 Other Expenses 35.3 25.2 54.0 EBITDA 24.1 23.1 4% 41.6 EBITDA % 15.0% 17.9% 15.7% Other Income 1.4 4.6 7.1
Slide 33: Balance Sheet
Balance Sheet* Assets (In Crs.) Sep-18 Mar-18 Equity & Liabilities (In Crs.) Sep-18 Mar-18 Property, Plant & Equipment 100.5 86.0 Share Capital 8.2 8.2 Capital Work-in-Progress 44.8 25.8 Other Equity - Reserve 240.4 229.5 Other Intangible Assets 0.1 0.1 Intangible Assets under Development 0.2 0.2 To
Slide 34: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : AksharChem (India) Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24110GJ1989PLC012441 CIN: U74140MH2010PTC204285 Mr. Meet Joshi Ms. Neha Shroff / Ms. Khushbu Shah [email protected] [email protected] / khush