Tata Chemicals Limited · NSE:TATACHEM
Tata Chemicals — Q4 FY2017 Earnings Presentation
29 slides from Tata Chemicals's earnings presentation, May 26, 2017
Slide 1: Submission of presentation to NSE
The National Stock Exchange of lndia Ltd. Exchange Plaza Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Svmbol: TATACHEM Dear Sir/Madam, SUB: SUBMISSION OF PRESENTATION MADE TO ANALYSTS/INVESTORS please find enclosed herewith the presentation to be made to analysts/investors on the Results for the q
Slide 2: Investors Communication Q4 & 12 months ended 31 March 2017
Investors Communication Q4 & 12 months ended 31 March, 2017 26 May 2017 1
Slide 3: Safe Harbour Statement
Safe Harbour Statement “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 expression
Slide 4: Major events during FY2017
Major events during FY2017 Transfer of ownership rights of assets related to Urea and Customised Fertilizer business situated in Babrala, UP to Yara Fertiliser India Private Limited on a slump sale basis, for Rs 2,670 Crs, subject to adjustments. New green field projects with the total investment of
Slide 5: Results for Q4 & 12 months ended 31 March 2017
Results for Q4 & 12 months ended 31 March, 2017 4
Slide 6: Key Highlights
Key Highlights Babrala Operation classified as Discontinued Operation Volumes of Soda Ash, Bicard and Salt up by over FY16 Consolidated Revenue Lower by Rs 1,931 Crs (13% over FY16) Standalone Revenue Lower by Rs 1,999 Crs (24% over FY16) Consolidated Profit up by Rs.223 Crs (29% over FY16
Slide 7: Key Highlights – Quarter ended 31 March 2017
Key Highlights – Quarter ended 31 March, 2017 Continuing Operations Discontinuing Operations Consolidated Standalone Consolidated / Standalone Consolidated (Rs Crs) Q4 Q4 Q4 Q4 Q4 Q4 Var Var Var Mar17 Mar16 Mar17 Mar16 Mar17 Mar16 Net Income 3,002 3,565 (563) 1,351 1,829 (478) 528 482 46 EBITDA 488
Slide 8: Key Highlights – YTD 31 March 2017
Key Highlights – YTD 31 March, 2017 Continuing Operations Discontinuing Operations Consolidated Standalone Consolidated / Standalone Consolidated (Rs Crs) YTD YTD YTD YTD YTD YTD Var Var Var Mar17 Mar16 Mar17 Mar16 Mar17 Mar16 Net Income 13,289 15,220 (1,931) 6,471 8,470 (1,999) 1,983 2,304 (321) EB
Slide 9: Results: Segment Financials – Continuing Operations
Results : Segment Financials – Continuing Operations Consolidated Standalone Rs Crs Q4 Mar17 Q4 Mar16 YTD Mar17 YTD Mar16 Q4 Mar17 Q4 Mar16 YTD Mar17 YTD Mar16 Income Inorganic Chemicals 2,203 2,303 8,634 8,820 917 930 3,557 3,638 Fertilisers 400 790 2,288 4,113 400 790 2,288 4,113 Other Agri inputs
Slide 10: Balance Sheet for the period
Balance Sheet for the period (Rs. Crs) Consolidated Standalone 31-Mar-17 31-Mar-16 31-Mar-17 31-Mar-16 ASSETS Non-current assets 16,241 16,777 8,328 8,373 Current assets Inventories 1,381 1,932 612 1,095 Trade Receivables 2,088 3,566 1,032 2,554 Cash and Bank Balance 1,665 1,265 1,112 600 Others Cur
Slide 11: Financials on Babrala Operations
Financials on Babrala Operations Segment Financials – Discontinuing Operations Consolidated / Standalone Rs Crs Q4 Mar17 Q4 Mar16 YTD Mar17 YTD Mar16 Segment Revenue 528 482 1,983 2,304 Segment Results 89 15 196 113 Segment Assets 1,532 1,738 1,532 1,738 Segment Liabilities 511 115 511 115 Rs Crs Q4
Slide 12: Update on the Babrala transaction
Update on the Babrala transaction Transfer of assets of Urea and Customised Fertilizer business to Yara Fertiliser India Private Limited (“Yara”) is expected to be completed during 2nd Quarter of FY2017-18. S No Approvals required Current Status 1 Observation /No Objection Letters from NSE / BSE √ 2
Slide 13: Results: Entity wise breakups
Results : Entity wise breakups Mar 16 Rs Crs TCL India TCNA TCEHL TCAHL Rallis Consolidated Period ended March 2016 Q4 YTD Q4 YTD Q4 YTD Q4 YTD Q4 YTD Q4 YTD Net Income (Including Other 1,829 8,470 807 3,063 429 1,695 208 696 367 1,628 3,565 15,220 Operating Income) Profit from Operations 176 971 19
Slide 14: Debt Waterfall chart – As on March 2017
Debt Water fall chart – As on March 2017 Consolidated Gross and Net Debt 10,000 1,345 Consolidated Net Debt as on Mar16 8,000 303 1,870 Rs 7,830 Crs Rs Crs 6,000 9,090 Net Debt 4,000 7,443 down by 5,573 2,000 Rs.2,257 crs - Gross Debt Mar'16 Net Change Revaluation Gross Debt Mar'17 Cash & Cash Net D
Slide 15: Volumes: YTD March 2017 for Key products
Volumes : YTD – March 2017 for Key products Soda Ash volumes (In Kts.) Sodium Bicardonate volumes (In Kts.) 4,000 250 3,000 200 In Kts 2,000 150 In Kts 1,000 100 - Sales Production Sales Production 50 YTD Mar 17 YTD Mar 16 - TCNA 2,241 2,216 2,104 2,122 Sales Production Sales Production TCML 272 300
Slide 16: Volumes: Q4 March 2017 for Key products
Volumes : Q4 – March 2017 for Key products Soda Ash volumes (In Kts.) Sodium Bicardonate volumes (In Kts.) 1,000 60 800 50 In Kts 600 40 400 In Kts 200 30 - 20 Sales Production Sales Production 10 Q4 Mar 17 Q4 Mar 16 - TCNA 543 509 542 574 Sales Production Sales Production TCML 76 67 88 69 Q4 Mar 17
Slide 17: General Information
General Information TATA Chemicals - Share Price movement (close) TCL- Market Capitalisation and Nifty 50 Index 700 17,000 599 Price per share in Rs 600 15,000 13,000 Rs in Crore 500 11,000 400 9,000 300 7,000 200 5,000 Jul-16 Sep-16 Feb-17 Nov-16 Mar-16 Apr-16 May-16 Jun-16 Aug-16 Jan-17 Mar-17 Oct
Slide 18: IND-AS transition
<p TATA IND-AS transition TATA CHEMICALS LIMITED 17
Slide 19: Significant Accounting policies
Significant Accounting policies • The financial results have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards ("Ind AS") as presented under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder an
Slide 20: Ind-AS Impact
Ind-AS Impact Ind-AS: 16 – Property, Pant & Equipment. I GAAP IND-AS Cost of major inspections is recognized in the Cost of major Cost of major inspections are generally carrying amount of property, plant and equipment 1 inspections expensed when incurred. as a replacement, subject to recognition cr
Slide 21: Ind-AS Impact
Ind-AS Impact Ind-AS: 10 – Events after Reporting period I GAAP IND-AS Dividend is proposed or declared after the Liability for dividends declared to holders of equity Dividend balance sheet date but before approval of the 4 instruments are recognised in the period when treatment financial statement
Slide 22: Ind-AS Impact
Ind-AS Impact Ind-AS 18 : Leases I GAAP IND-AS Service arrangements Arrangements with embedded lease of assets No specific guidance and generally accounted 7 requiring use of would need to be identified and accounted for as as expenses specific assets – lease Lease accounting Ind-AS 18 : Revenues Th
Slide 23: Ind-AS Impact
Ind-AS Impact Structural Impact I GAAP IND-AS Consolidated Consolidation is based on directly or indirectly Consolidation is based on control, powers and 10 Financial through subsidiaries, with ownership of rights Statements generally over 50% stake. Joint ventures where consolidated based on Under
Slide 24: Comparative Profit and Loss Statement – Standalone
Comparative Profit and Loss Statement – Standalone IGAAP Ind-AS Reference Rs. Crs Adjustments FY2016 FY2016 No Revenue 10,906 (2,436) 8,470 8 Operating Expenditure 9,880 (2,381) 7,499 8 EBITDA 1,026 (55) 971 - Depreciation 188 (34) 154 1, 2, 7 Other Incomes 158 7 164 - EBIT 996 (14) 982 - Finance Co
Slide 25: Comparative Profit and Loss Statement – Consolidated
Comparative Profit and Loss Statement – Consolidated IGAAP Ind-AS Reference Rs. Crs Adjustments FY2016 FY2016 no Revenue 17,708 (2,488) 15,220 8 Operating Expenditure 15,543 (2,414) 13,128 8 EBITDA 2,165 (73) 2,092 - Depreciation 465 61 526 1, 2, 7 Other Incomes 123 3 125 - EBIT 1,823 (132) 1,691 -
Slide 26: Balance Sheet as at 31st March 2016 – Standalone
Balance Sheet as at 31st March 2016 – Standalone IGAAP Ind-AS Reference Rs. Crs. Adjustment FY2016 FY2016 no ASSETS Non-current assets 6,884 1,489 8,373 1-3, 5, 7 Current assets Inventories 1,095 - 1,095 - Trade Receivables 2,554 - 2,554 - Cash and Cash equivalent 600 - 600 - Others Current Assets 4
Slide 27: Balance Sheet as at 31st March 2016 – Consolidated
Balance Sheet as at 31st March 2016 – Consolidated IGAAP Ind-AS Reference Rs. Crs. Adjustments FY2016 FY2016 no ASSETS Non-current assets 13,424 3,353 16,777 1 - 3, 5, 7 Current assets Inventories 2,002 (70) 1,932 Trade Receivables 3,521 45 3,566 10, 11 Cash and Cash equivalent 1,371 (106) 1,265 Oth
Slide 28: Business
Business Chemicals Portfolio • Tata Chemicals is the world’s 2nd largest producer of soda ash with manufacturing facilities in North America, Europe, Asia & Africa. • Key Supplier to all major manufacturers of glass, detergents and other industrial products. • World’s 3rd largest producer of sodium
Slide 29: For any question/queries please contact
For any question /queries please contact John Mulhall [email protected] +91 22 6665 8282 Sameer Kulkarni [email protected] +91 22 6665 7942 Keya Muriya [email protected] +91 22 6665 7496 Gavin Desa [email protected] +91 22 6645 1237 Suraj Digawalekar — [email protected]