Sigachi Industries Limited has informed the Exchange about Investor Presentation
To,
The Manager BSE Limited P. J. Towers, Dalal Street Mumbai-400001 (BSE Scrip Code: 543389)
Dear Sir/Madam,
Date: 15.05.2022
The Manager, NSE Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai- 400051. (NSE Symbol: SIGACHI)
Sub: Earnings Presentation on Q4 FY 2022
Unit: Sigachi Industries Limited
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) 2015, and with reference to the subject cited, please find enclosed Presentation on Earnings for Q4 FY 2022 results. The same is also updated on the website of the Company www.sigachi.com
This is for your information and records.
Thanking You,
Yours faithfully For Sigachi Industries Limited
Shreya Mitra Company Secretary and Compliance Officer
Encl: As above.
SHREYA MITRADigitally signed by SHREYA MITRA Date: 2022.05.15 21:59:42 +05'30' Sigachi Industries Limited Earnings Presentation Q4-FY22/FY22
Company Snapshot
Legacy of more than 3 decades in manufacturing of cellulose-based excipient
Supported by Experienced Management Team
Long standing Pan India presence & Exports to more than 40 countries
R&D Facility in Dahej is approved by DSIR and also have other 2 in- house laboratories
3 state-of-the-art manufacturing facilities situated in Hyderabad and Gujarat
3 year CAGR
Revenue: 25% EBITDA: 27% PAT: 28%
Sigachi Industries Limited
2
Company Overview
• Sigachi Industries Limited (Sigachi), incorporated in the year 1989, is one of the
leading manufacturers of Micro Crystalline Cellulose (MCC) in the world.
• Sigachi manufactures
excipients, which predominantly find usage in the pharmaceutical, supplement and food industries.
cellulose-based
high-quality
• The company has created a niche in manufacturing highly innovative pre- formulated excipients & 60+ widely used excipients of international quality standards.
• With two facilities in Gujarat and one in Telangana, Sigachi ensures supply chain
reliability for its customers in India and across the globe.
• Sigachi has a global sales and distribution network and exports to more than 40 countries across Asia, Australia, American Continent, Europe and Middle East.
• From its state-of-the-art R & D facility the company ensures continuous
innovation to efficiently meet evolving customer demands.
• The company also has an agreement with Gujarat Alkalies and Chemicals Limited (“GACL”) for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminum chloride.
Revenue (INR Mn) & EBITDA Margins (%)
2,503
1,928
1,290
20.16%
1,391
17.83%
20.12%
21.21%
1,007
11.65%
FY18
FY19
FY20
FY21
FY22
Sigachi Industries Limited
3
Key Strengths
One of the leading manufacturers of MCC in India with over 30 years’ experience: • Made advancements in development of MCC and positioned as one of the key manufacturing players globally
• Technical Division infrastructure, advantage in India
capabilities, and
gives a
capable R&D manufacturing first mover
India
Pan presence: • A long-standing market presence in
International market
and
India and internationally
• Export
to
products
countries including Australia, USA, South America, Italy, Denmark, China, U.K., Poland, Colombia, Bangladesh, to name a few
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Comprehensive product portfolio enables to serve diverse end-use applications: • Customize the usage and application of industries to food, nutraceuticals
to various not
the products including but pharmaceutical, and cosmetics
limited
• Manufacture MCC in various grades ranging from 15 microns to 250 microns
standing
Presence across diverse industry verticals with long relationship with customers : • Customization of products based on and
specifications
customer requirements
• Track record of consistent delivery of quality and cost-effective products and solutions through strategic alignment of key customers’ goals over the years
Growth led by continuous investment and focus on R&D:
• Regular investments in R&D to expand the product offerings and to streamline manufacturing process
• The R&D in Dahej has been approved by
DSIR
• Possess 2 in-house laboratories
Strategically facilities •
located
manufacturing
Set up 3 multi locational manufacturing units namely, Hyderabad, Telangana (“Unit I”), Jhagadia, Gujarat (“Unit II”) and Dahej, Gujarat (“Unit III”) which helps provide timely, efficient and customized delivery of the products in terms with the specific demographic needs
Sigachi Industries Limited
4
Financial Overview
5
Q4-FY22/FY22 Consolidated Financial Highlights
Q4-FY22 Performance
FY22 Performance
INR 725 Mn Operating Income
INR 146 Mn Operating EBITDA
20.14% Operating EBITDA Margins
INR 2,503 Mn Operating Income
INR 531 Mn Operating EBITDA
21.21% Operating EBITDA Margins
INR 116 Mn Net Profit
16.00% PAT Margins
INR 4.49/Share Diluted EPS
INR 400 Mn Net Profit
15.98% PAT Margins
INR 15.44/Share Diluted EPS
Sigachi Industries Limited
7
Q4-FY22/FY22 Operational Highlights
• Revenue growth of 40.23% in Q4-FY22 on a YoY basis was mainly driven by increased demand for MCC across all industries, with volume
growth of ~13%, and realisation growth of ~19%
• Successful passing on of higher input costs to customers and increased capacities to some extent improved the margins on a QoQ basis.
• The blended capacity utilization across all the three plants increased to 93.27% in FY22 as compared to 89.29% in FY21.
• Sale of exports of products increased to 75.43% in FY22 from previous year of 73.60% with continuous efforts to enhance the global
client base through marketing efforts and customizing products for various applications as per requirements of customers.
• The company is constantly thriving to improve upon its R&D capabilities and cost-effective manufacturing processes and thereby remain
as a manufacturer of choice with highest quality standards.
• Focus on high margin yielding product mix and cost-effective manufacturing processes, effective management of inventory resulted in
increase of EBITDA and Profitability for FY22.
• The consumption of material has reduced to 48% from 52% due to adoption of cost effective process and favorable product mix.
• Company expects that the growth trend will continue with current profitability at sustainable levels.
• Furthermore, capacities of around 7000 MT will be added during the latter part of FY23 which will contribute to the additional revenue
growth in the coming financial years.
Sigachi Industries Limited
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Quarterly Consolidated Financial Performance
Particulars (INR Mn)
Operational Revenue
Total Expenses
EBITDA
EBITDA Margin (%)
Depreciation and amortisation
Finance costs
Other Income
PBT
Tax Expense
PAT
PAT Margin (%)
Diluted EPS
Q4-FY22
Q4-FY21
Y-o-Y
Q3-FY22
Q-o-Q
725
579
146
517
403
114
40.23%
43.67%
28.07%
656
530
126
10.52%
9.25%
15.87%
20.14%
22.05%
(191) bps
19.21%
93 bps
8
4
17
151
35
116
6
2
6
33.33%
100.00%
-
7
3
5
14.29%
66.67%
-
112
34.82%
121
24.79%
21
91
66.67%
27.47%
26
95
34.62%
22.11%
16.00%
17.60%
(160) bps
14.48%
152 bps
4.49
3.97
13.10%
3.86
16.32%
Sigachi Industries Limited
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Annual Consolidated Financial Performance
Particulars (INR Mn)
Operational Revenue
Total Expenses
EBITDA
EBITDA Margin (%)
Depreciation and amortisation
Finance costs
Other Income
PBT
Tax Expense
PAT
PAT Margin (%)
Diluted EPS
FY22
2,503
1,972
531
FY21
1,928
1,540
388
21.21%
20.12%
29
12
26
516
116
400
23
13
33
385
82
303
15.98%
15.44
15.72%
13.13
Y-o-Y
29.82%
28.05%
36.86%
109 bps
26.09%
-
NA
34.03%
41.46%
32.01%
26 bps
17.59%
Sigachi Industries Limited
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Historical Consolidated Financial Performance
Particulars (INR Mn)
Operational Revenue
Total Expenses
EBITDA
EBITDA Margin (%)
Depreciation and amortisation
Finance costs
Other Income
PBT
Tax Expense
PAT
PAT Margin (%)
Diluted EPS
FY19
1,290
1,030
260
FY20
1,391
1,143
248
FY21
1,928
1,540
388
FY22
2503
1972
531
20.16%
17.83%
20.12%
21.21%
17
35
39
247
57
190
20
23
48
253
50
203
23
13
33
385
82
303
29
12
26
516
116
400
14.73%
14.59%
8.25
8.81
15.72%
13.13
15.98%
15.44
Sigachi Industries Limited
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Historical Consolidated Balance Sheet
Particulars (INR Mn)
FY20
FY21
EQUITY
Equity Share Capital
Other Equity
NON-CURRENT LIABILITIES
a) Financial Liabilities
i) Borrowings
b) Provisions
c) Deferred tax liabilities (net)
CURRENT LIABILITIES
a) Financial Liabilities
i) Borrowings
ii) Trade Payables
iii) Other financial liabilities
b) Other current liabilities
c) Provisions
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
FY22
2277
307
1970
76
12
9
55
Particulars (INR Mn)
NON-CURRENT ASSETS
a) Property, plant and equipment
b) Capital work-in-progress
c) Intangible assets
d) Financial assets
i) Investments
ii) Other Financial Assets
e) Other non-current assets
332
106
6
59
12
a) Financial Assets
i) Trade Receivables
ii) Cash and cash equivalents
iii) Bank balances other than above
iv) Other financial assets
b) Other current assets
942
77
865
70
19
8
43
80
7
43
9
322
515
CURRENT ASSETS
270
183
646
77
569
55
19
7
29
390
72
14
33
1
445
1,091
392
591
c) Inventories
1,334
2,868
TOTAL ASSETS
FY20
371
312
31
4
-
14
10
720
276
88
18
46
13
279
1,091
FY21
463
376
37
3
2
18
27
FY22
1069
527
97
7
2
351
85
871
1799
358
159
21
100
21
212
601
291
403
128
71
305
1,334
2,868
Sigachi Industries Limited
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Consolidated Financial Highlights
Operational Revenue (INR Mn)
EBIDTA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
2,503
1,928
531
388
400
303
1,290
1,391
1,007
260
20.16%
248
17.83%
20.12%
21.21%
117
11.65%
190
203
14.59%
15.72%
15.98%
69
6.66%
14.73%
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
Net Debt to Equity (x)
Cash Conversion Cycle (Days)
0.98
0.46
0.28
0.22
-0.15
FY18
FY19
FY20
FY21
FY22
130
117
88
94
92
ROCE (%) and ROE(%)
ROE
ROCE
57%
42%
41%
26%
40%
31%
39%
32%
22%
18%
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
Sigachi Industries Limited
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Capital Market Information
Share Price Movement (Up to 31st March, 2022)
10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Sigachi Returns
Sensex Returns
Market Data (INR) as on 31st March, 2022
Shareholding Pattern as on 31st March, 2022
Face Value
CMP
52 Week H/L
Market Cap (INR Mn)
Shares O/S (Mn)
Avg. Vol. Since Listing (‘000)
10.0
289.2
648.0 / 270.0
8877
30.7
429.6
Public 48%
Promoters 49%
DII 3%
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Sigachi Industries Limited
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Disclaimer
Sigachi Industries Limited Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Sigachi Industries Limited (Sigachi), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward- looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further details, please feel free to contact our Investor Relations Representatives:
Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: sigachi@valoremadvisors.com
Sigachi Industries Limited
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Thank You
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