AARTI Industries Ltd · NSE:AARTIIND
AARTI Industries — Q1 FY2019 Earnings Presentation
21 slides from AARTI Industries's earnings presentation, Aug 6, 2018
Slide 1: Cover letter to stock exchanges
@lffiir,=, Ref. No.: AIL I B.36 | 20la I 577 August 6,2018 To, To, Listing/ ComPliance DePartment Listing/ Compliance DePartment BSE LTD. National Stock Exchange of Phiroze JeejeebhoY Towers, India Limited Dalal Street, "Exchange Plaza", Plot No. C/ 1, Mumbai - 4O0 001. G Block Bandra-Kurla ComPlex,
Slide 2: Q1 FY19 Results Presentation
1 Q1 FY19 Results Presentation
Slide 3: Disclaimer
2 Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does no
Slide 4: Content
3 Content At a glance Quarterly performance 5 year financial performance
Slide 5: At a glance
@ AARTI INDUSTRIES LIMITED Ata glance
Slide 6: Profile
5 Profile Aarti is one of the Globally ranks at Promoters are First Generation Technocrats Highly integrated operations Present in niche most 1st – 4th position for • 5 of 6 Promoter Directors are engineers. 3 of 4 • Cost-efficient processes chemistry spaces. competitive 75% of its portfolio. Founde
Slide 7: Transformation Journey
6 Transformation Journey Hitting right milestones at right time • Merged Salvigor Labs, producers of DMS and Sulphuric Acid and their Set up additional downstream products unit at Vapi to Set up Alchemie Merged into Aarti. Aarti manufacture (Europe) Ltd. a Alchemie Organics Pvt NCB with • Change of
Slide 8: Transformation Journey
7 Transformation Journey • Crossed Rs. 1,000 cr total • Commenced calcium chloride facility income. and 2nd Phase of PDA facility at • Merged Jhagadia Surfactants • Commenced multipurpose Ethylation Specialities unit at Dahej SEZ, Gujarat Pvt. Ltd. • Crossed Rs. 2,900 cr • Operationalized Co-generat
Slide 9: What differentiates us
8 What differentiates us Our product mix comprises more Most chemical companies focus than 125 research-led products on a handful of products We have focused on the manufacture Most chemical companies focus on a of integrated derivatives fragmented standalone product mix We have global capacities &
Slide 10: Global Partner of Choice
9 Global Partner of Choice Aarti Industries is a rare instance of a global speciality chemicals company that combines process chemistry competence with scale-up engineering competence Vendor servicing to Make-to-stock to robust Partner of Choice To Transform Make-to-order Knowledge from arbitrage Ov
Slide 11: Multi-year deals
10 Multi-year deals Rapidly changing global environment where global industrial players graduating from Conventional Long-Term Vendor Strategic Knowledge Short-Term Cost Arbitrage Stability and Enlistments Partnerships Arbitrage Opportunism Model Sustainability Relationship-driven approach where we
Slide 12: Key Investment Theme
11 Key Investment Theme Clear Path to Value Creation Economies of Scale and Operational Efficiency: • Highly Backward Integrated Global Partner of and gainful usage of by- Choice Leadership Increasing focus De-risked portfolio – products, ensuring steady engagements with excellence – on high margin
Slide 13: Quarterly Performance
can) AARTI INDUSTRIES LIMITED Quarterly Performance
Slide 14: Chairman's Message
13 Chairman’s Message Commenting on the performance for Q1 FY19, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Ltd. said, ““We have started the current financial year with strong momentum, delivering 12% growth in specialty chemicals volumes in line with the guidance shared previously. EBIT
Slide 15: Q1 FY19 Highlights
14 Q1 FY19 Highlights Financial • Rupee volatility impact • As part of its strategy to safeguard business against currency risks, Company had entered into forward contracts to hedge its exports contracts. In Q1FY19, EBIDTA impacted by Rs 28.95 crs due to Mark to Market loss on such contracts. • Comp
Slide 16: Q1 FY19 P&L (Standalone)
15 Q1 FY19 P&L (Standalone) Y-o-Y Q-o-Q Particulars Q4 Q1 FY19 Q1 FY18 Growth Growth (Rs. Crore) FY18 (%) (%) Gross Income from 1078.48 791.81 36.2 1029.39 4.8 Operations Exports 426.11 361.37 17.9 400.65 6.4 • Higher revenue contribution from the % of Total Income 39.5 45.6 38.9 direct linkage and
Slide 17: Q1 FY19 – Speciality Chemicals (Standalone)
16 Q1 FY19 – Speciality Chemicals (Standalone) Revenue 848 626 • Revenues are linked to pass through of key raw-material prices • Speciality Chemicals volume growth increased by 12% YoY in Q1 with growth across end user industries Q1 FY18 Q1 FY19 – Expect approx. 12-15% volume growth for FY19 EBIT 1
Slide 18: Q1 FY19 – Pharma & HPC (Standalone)
17 Q1 FY19– Pharma & HPC (Standalone) • EBIT performance remains strong Pharmaceuticals Pharmaceuticals EBIT • Improved QoQ EBIT run rate enabled by enhanced Revenue 26 business across markets and operating leverage - 150 committed to sustain momentum 106 14 • Since major fixed costs already built-i
Slide 19: About Us
18 About Us Aarti Industries (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL is a rare instance of a global speciality chemicals company that combines process chemistry competence (recipe focus) with scale-up engineering competence (asset utilizatio
Slide 20: Contact Us
19 Contact Us For further information please log on to www.aarti-industries.com or contact: Mr. Chetan Gandhi / Mr. Raj Sarraf Aarti Industries Limited Tel: +91 22 6797 6666 Email: [email protected] Vikram Rajput / Shiv Muttoo CDR India Tel: +91 22 6645 1223/1207 Email: [email protected]
Slide 21: Thank You
@ AARTI INDUSTRIES LIMITED Thank You