Valiant Organics Limited has informed the Exchange about Investor Presentation on Earnings Calls for the Quarter ended June 30,2022
••••
Valiant Organics Limited
Date: August 06,2022
To, Listing/Compliance Department BSE LTD Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001.
BSE CODE-540145
Sub: Investor Presentation.
Dear Sir/Madam,
To, Listing/Compliance Department National Stock Exchange of India Limited "Exchange Plaza",Plot No.C/1, G Block Bandra-Kurla Complex, Sandra (E), Mumbai- 400 051. NSE COOE-VALIANTORG
Pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, please find enclosed herewith Q 1 FY23 Results presentation of Valiant Organics Limited
A copy of aforesaid Investor Presentation is also hosted on the website of company www.valiantorganics.com
Kindly take the same on your record and acknowledge.
Thanking You,
Yours Faithfully,
Regd. Office : 109, Udyog Kshetra, lst Floor, Mulund Goregaon Link Rd, Mulund West, Mumbai 400 080, India.
+9122 6797 6683 • info@valiantorganics.com • www.valiantorganicscom CIN NO. : l24230MH2005PLC151348
E a r n i n g s P r e s e n t a t i o n | Q 1 - F Y 2 3
SNAPSHOT
One of the largest chlorophenol derivatives manufacturer globally
One of the leading manufacturer of Benzene derivatives products
One of the largest domestic PNA manufacturer
One of the few commercial players in Ortho Anisidine and Para Anisidine
Amongst 1st few domestic PAP Manufacturers
Diversified client base across Pharmaceuticals, Dyes & Pigments, Agrochemicals and specialty chemicals.
6 Manufacturing units across 5 Locations
5 Zero Liquid Discharge plants
Total Production Capacity of 70,000 TPA
850+ Employees
2
Company Overview
Valiant Organics Limited was incorporated in 1984 by first generation technocrats and is headquartered out of Mumbai, India.
The company is focused on the manufacturing and marketing of specialty chemicals which find usage in a variety of industries, including agrochemicals, pharmaceuticals, dyes, pigments, and veterinary medications.
Key chemistries include Chlorination, Hydrogenation, Ammonolysis, Acetylation, Sulphonation, Methoxylation amongst others.
Over the years the company has primarily focused on manufacturing specialty chemicals that have a high demand but low supply and are primarily dependent on imports.
The company is listed on both the BSE and NSE with a market capitalization of INR 14,474 Mn as on 30th June, 2022.
Operating Revenue (INR Mn) and EBITDA Margin (%)
FY22 Revenue Break-up – Chemistries
FY22 Revenue Break-up – End user Industry
14000
12000
10000
8000
6000
4000
2000
0
11,533
6,749
7,548
26.71%
27.19%
17.77%
50. 00%
45. 00%
40. 00%
35. 00%
30. 00%
25. 00%
20. 00%
15. 00%
10. 00%
5. 00%
0. 00%
2,660
11.99%
FY20
FY21 Revenue
FY22 EBITDA Margin
Q1-FY23
Others, 9%
Ammonolysis, 31%
Chlorination, 29%
Hydrogenation, 31%
Dyes & Pigments, 29%
Pharmaceuticals, 17%
Specialty Chemicals, 14%
Agro Chemicals, 40%
Valiant Organics Limited | August 2022
3
Chemistries And Product Basket
Ammonolysis
Key Products: • •
Para Nitro Aniline Ortho Chloro Para Nitro Aniline
Industries Served: • •
Dyes Pigments
FY22 Revenue Share
31%
Hydrogenation
Ortho Anisidine Para Anisidine IPPCA
Key Products: • • • • Meta Chloro Aniline • Para Amino Phenol • Ortho Amino Phenol
Industries Served: • • • •
Dyes Pigments Pharmaceutical Agro Chemicals
Others Acetylation Key Products: • • •
6 Acetyl OAPSA OA Acetanilide PA Acetanilide
Industries Served: • Dyes
Sulphonation Key Products: • OT5SA • 4B Acid • 2B Acid
Methoxylation Key Products: • •
Ortho Nitro Anisole Para Nitro Anisole
Industries Served: • Dyes • Pigments
Industries Served: • Dyes • Pigments
31%
9%
Valiant Organics Limited | August 2022
29%
Chlorination
Key Products: • • • • •
Para ChloroPhenol (PCP) Ortho ChloroPhenol (OCP) 2,4 Di Chlorophenol (2,4 DCP) 2,6 Di ChloroPhenol (2,6 DCP) 2,4,6 Tri ChloroPhenol (2,4,6 TCP)
Industries Served: • Agro Chemicals • Cosmetics • Veterinary • Pharmaceuticals
4
Manufacturing Footprint
CHLORINATION – SARIGAM • Capacity: 18,000 MTPA • Products: PCP, OCP, 2,4 DCP, 2,6 DCP, 2,4,6 TCP
AMMONOLYSIS - VAPI • •
Capacity: 9,000 MTPA Products: PNA, OCPNA
AMMONOLYSIS - TARAPUR • Capacity: 6,600 MTPA • Products: PNA
HYDROGENATION & METHOXYLATION- JHAGADIA UNIT 1 • •
Capacity: 27,000 MTPA Products: ONA/OA, PNA/PA, IPPCA, CONVERSION PRODUCTS
HYDROGENATION – JHAGADIA UNIT 2 • •
Capacity: 12,000 MTPA Products: PAP, PHARMA INTERMEDIATES
ACETYLATION & SULPHONATION – AHMEDABAD • •
Capacity: 1,800 MTPA Products: 6 ACETYL OAPSA, OA/PA ACETANILIDE, OT5SA
Valiant Organics Limited | August 2022
5
Key Strengths
Domain expertise and broad process understanding in a variety of chemistries. The executive team is made up of first-generation technocrats with more than 50 years of collective expertise.
Wide supply chain provides the continuous availability of adequate and high-quality raw materials and manufacturing.
Plant locations are strategically located near ports to provide a competitive advantage, significant logistical cost savings, and faster delivery times.
Robust Business Model
Integrated Operations
Strong Customer Relations
Distinct Product Portfolio
Domain Knowledge
Widespread Supply Chain
Strategic Location of Plants
Diverse product range and client base across numerous industries and countries provides a sustainable business model in multiple chemistries by lowering product, industry, and geographical risk.
Multi-use and backward integrated plants to produce a wide range of products and tailor them to meet the diverse needs, technical qualifications, batch sizes, and delivery schedules of our clients.
Established multi-year relationships with clients in both domestic and international markets due to high-quality standards, innovative production capabilities.
Manufacturing a diverse range of intermediates as well as value-added products for a variety of industries.
Valiant Organics Limited | August 2022
6
Capex Projects
Product
Commissioned
Para Nitro Aniline (PNA) & Ortho Chloro Para Nitro Aniline (OCPNA)
Ortho Nitro Anisole (ONA)
Para Nitro Anisole (PNA)
Para Anisidine (PA)
Ongoing Projects
Installed Capacity (MT per month)
Approx. Capex (INR Mn)
Project Status
Remarks
550
600
200
150
~ 70
Completing phase-wise
• Expansion from 550 TPM to 750 TPM at Vapi plant • Full capacity addition in progress
Completed in Q4 FY’20
• Backward integrated for existing product Ortho Anisidine
~ 350-400
Completed in Q4 FY’20
• Captive use towards manufacture of Para Anisidine
Completed in Q4 FY’20
• Currently mostly being imported in India • Valiant will be one of the major producers in India
Para Amino Phenol (PAP)
1,000
~ 2,200
Completed in Q4 FY’21
the actual production delayed
• Currently, limited availability domestically and mostly imported • Due to technical difficulties in achieving the desired specification,
Ortho Amino Phenol (OAP)
100
~ 150
Pharma Intermediates
20
~ 600
Phase 1 production to commence from Q2 FY’23
Expected production from Q2 FY’23
• Ramp up in process for batch operations on-going. • Simultaneous work on-going towards continuous process
• Currently, entirely imported in India • Part of the production will be utilized as forward integration for
one of company's existing products
• Trial run successful
• Multi-purpose plant for forward integration within Group
Company
• Will manufacture N-1, N-2 raw materials for API products • Delay due to approvals
Valiant Organics Limited | August 2022
7
Q1-FY23 HIGHLIGHTS
Valiant Organics Limited | August 2022
8
Q1-FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS
INR 2,660 Mn Operational Revenue
11.99% Operating EBITDA Margin
6.35% PAT Margin
INR 319 Mn Operating EBITDA
INR 169 Mn Profit After Tax
INR 5.52/ Share EPS
Valiant Organics Limited | August 2022
9
Q1-FY23 Operational Highlights
• Q1-FY23 financials were impacted primarily due to the unfortunate blast at our Chlorination plant in Sarigam leading to shutdown for an extensive period of time, as well as subdued demand of our hydrogenation products and mandatory maintenance shut down at one of our Ammonolysis plant. The Sarigram plant has resumed partial operations since 21st July 2022, although it will take a few weeks to restore to normalcy due to ordering/delivery/erection of new machinery. The cost of damage and loss of business is covered under insurance.
•
• With regard to PAP, batch process is running as planned and have maintained an average
run rate of 350 MT/month for Q1-FY23.
•
•
The Pharma Intermediates project is still awaiting approvals. Water runs have been done and trial runs and production in a phased manner will commence immediately once the approvals are received.
Price volatility stabilized to a certain extent in Q1-FY23 for our key raw materials and the positive impact of this will be seen in the quarters ahead if the market dynamics continue to remain the same.
Q1-FY23 Revenue Break-up – Chemistries
Others, 7%
Chlorination, 17%
Ammonolysis, 32%
Hydrogenation, 44%
Valiant Organics Limited | August 2022
10
Key Chemistries
Chlorination (INR Mn)
Hydrogenation (INR Mn)
Ammonolysis (INR Mn)
Others (INR Mn)
784
568
399
Q1-FY22
Q4-FY22
Q1-FY23
4,291
3,733
1,892
824
752
617
Q1-FY22
Q4-FY22
Q1-FY23
2,934
3,181
2,640
1,048
1,036
450
Q1-FY22
Q4-FY22
Q1-FY23
4,353
3,829
2,980
1, 200
1, 000
800
600
400
200
0
5, 000
4, 500
4, 000
3, 500
3, 000
2, 500
2, 000
1, 500
1, 000
500
0
900
800
700
600
500
400
300
200
100
0
3, 500
3, 000
2, 500
2, 000
1, 500
1, 000
500
0
250
209
159
Q1-FY22
Q4-FY22
Q1-FY23
593
327
230
300
250
200
150
100
50
0
700
600
500
400
300
200
100
0
Q1-FY22
Q4-FY22
Q1-FY23
Q1-FY22
Q4-FY22
Q1-FY23
Q1-FY22
Q4-FY22
Q1-FY23
Q1-FY22
Q4-FY22
Q1-FY23
900
800
700
600
500
400
300
200
100
0
5, 000
4, 500
4, 000
3, 500
3, 000
2, 500
2, 000
1, 500
1, 000
500
0
S E U N E V E R
) T M
(
S E M U L O V S E L A S
Valiant Organics Limited | August 2022
11
Quarterly Consolidated Financial Performance
Particulars (INR Mn)
Q1-FY23
Q1-FY22
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
PBT
Tax
PAT
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Basic/ Diluted EPS (INR)
Valiant Organics Limited | August 2022
2,660
2,341
319
11.99%
19
68
27
243
74
169
6.35%
(5)
164
5.52
2,441
1,937
504
20.65%
9
67
19
427
141
286
Y-o-Y
9.0%
20.9%
(36.7)%
(866) Bps
NA
1.5%
42.1%
(43.1)%
(47.5)%
(40.9)%
Q4-FY22
3,476
2,906
570
Q-o-Q
(23.5)%
(19.4)%
(44.0)%
16.40%
(441) Bps
22
84
17
491
120
371
(13.6)%
(19.0)%
58.8%
(50.5)%
(38.3)%
(54.4)%
11.72%
(537) Bps
10.67%
(432) Bps
6
292
9.53
NA
(43.8)%
(42.1)%
1
372
11.12
NA
(55.9)%
(50.4)%
12
Quarterly Standalone Financial Performance
Particulars (INR Mn)
Q1-FY23
Q1-FY22
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
PBT
Tax
PAT
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Basic/Diluted EPS (INR)
Valiant Organics Limited | August 2022
2,346
2,084
262
11.17%
12
65
27
182
44
138
5.88%
(7)
131
4.93
1,843
1,450
393
21.32%
26
61
18
340
74
266
Y-o-Y
27.3%
43.7%
(33.3)%
NA
(53.8)%
6.6%
50.0%
(46.5)%
(40.5)%
(48.1)%
Q4-FY22
2,906
2,462
444
Q-o-Q
(19.3)%
(15.4)%
(41.0)%
15.28%
(411) Bps
9
73
17
363
91
272
33.3%
(11.0)%
58.8%
(49.9)%
(51.6)%
(49.3)%
14.43%
(855) Bps
9.36%
(348) Bps
6
272
9.53
NA
(51.8)%
(48.3)%
2
274
9.72
NA
(52.2)%
(49.3)%
13
HISTORICAL FINANCIAL OVERVIEW
Valiant Organics Limited | August 2022
14
Historical Consolidated Income Statement
Particulars (INR Mn)
Operational Income
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
PBT
Tax
Profit After Tax
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR per share)
*FY21 onward figures as per Ind AS
Valiant Organics Limited | August 2022
FY20
6,749
4,946
1,803
26.71%
63
158
23
1,685
423
1,262
FY21*
7,548
5,496
2,052
27.19%
59
212
50
1,849
540
1,309
FY22*
11,533
9,484
2,049
17.77%
74
296
65
1,762
483
1,279
18.70%
17.34%
11.09%
2
1,264
44.32
69
1,378
40.97
6
1,285
40.51
Q1-FY23*
2,660
2,341
319
11.99%
19
68
27
243
74
169
6.35%
(5)
164
5.52
15
Consolidated Balance Sheet
Particulars (INR Mn) EQUITY
a) Equity Share Capital
b) Other Equity
c) Optionally Convertible Preference Shares
d) Non Controlling Interest
LIABILITIES
Non-Current Liabilities
Financial Liabilities
a) Borrowings
b) Lease Liabilities
c) Provisions
d) Deferred Tax Liabilities (Net)
Current Liabilities
a) Financial Liabilities
(i) Borrowings
(ii) Trade Payables
(iii) Other Financial Liabilities
(iv) Lease Liabilities
b) Other Current Liabilities
c) Provisions
FY20 4,007
121
3,736
18
132
992
841
-
2
149
1,692
406
879
359
-
13
35
FY21* 5,086
272
4,747
4
63
FY22* 6,489
272
5,856
4
357
971
1,340
751
2
15
203
2,706
1,330
1,072
253
4
21
26
1,058
5
11
266
4,018
2,568
1,238
161
3
24
24
Particulars (INR Mn) Non-Current Assets a) Property, Plant and Equipment b) Capital Work In Progress c) Right-Of-Use Assets d) Goodwill e) Goodwill on Consolidation f) Financial Assets (i) Investments (ii) Loans (iii) Other Financial Assets g) Other Non-Current assets Current Assets a) Inventories
b) Financial Assets
(i) Investments (ii) Trade Receivables (iii) Cash and Cash Equivalents (iv) Other Bank balances (v) Loans (vi) Other financial assets
c) Other Current Assets d) Current Tax Assets (Net)
GRAND TOTAL - EQUITIES & LIABILITES
6,691
8,763
11,847
GRAND TOTAL – ASSETS
*FY21 onward figures as per Ind AS
Valiant Organics Limited | August 2022
FY20 4,451 2,729 1,291 7 28 -
181 61 - 154 2,240 449
47 1,326 77 50 7 - 242 42
6,691
FY21* 5,731 4,967 459 6 - 123
23 59 - 94 3,032 722
40 1,568 128 182 5 2 363 22
8,763
FY22* 6,652 5,303 1,116 8 - 123
33 58 - 11 5,195 1,136
46 3,209 251 203 5 3 233 109
11,847
16
Historical Standalone Income Statement
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Finance Cost
PBT
Tax
Profit After Tax (After Merger)
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR per share)
*FY21 onward figures as per Ind AS
Valiant Organics Limited | August 2022
FY20
5,836
4,103
1,733
29.69%
52
130
10
1,645
406
1,239
FY21*
5,742
4,170
1,572
27.38%
169
186
35
1,520
374
1,146
21.23%
19.96%
10.85%
2
1,241
44.32
69
1,215
40.98
8
1,037
36.81
FY22*
9,484
7,834
1,650
Q1-FY23*
2,346
2,084
262
17.40%
11.17%
56
273
64
1,369
340
1,029
12
65
27
182
44
138
5.88%
(7)
131
4.93
17
Standalone Balance Sheet
Particulars (INR Mn) EQUITY a) Equity Share Capital b) Other Equity
c) Optionally Convertible Preference Shares
LIABILITIES
Non-Current Liabilities Financial Liabilities a) Borrowings b) Lease Liabilities
c) Provisions d) Deferred Tax Liabilities (Net) e) Other Non-Current Liabilities Current Liabilities
a) Financial Liabilities (i) Borrowings (ii) Trade Payables
(iii) Other Financial Liabilities (iv) Lease Liabilities b) Other Current Liabilities c) Provisions
d) Current Tax Liabilities (Net)
FY20 3,875 121 3,736
18
953
808 -
2 143 - 1,462
221 840
355 - 13 33
-
FY21* 5,023 272
4,747
4
962
748 2 15 197
- 2,071
736 1,042 244 3
20 26
-
FY22* 6,031 272
5,755
4
1,215
940 2 10 263
- 3,583
2,110 1,271 154 2
22 24
-
Particulars (INR Mn) Non-Current Assets
a) Property, Plant and Equipment
b) Capital Work In Progress c) Right-Of-Use Assets
d) Goodwill
(i) Investments in Subsidiaries (ii) Loans
(iii) Other Financial Assets
j) Other Non-Current assets Current Assets
a) Inventories
b) Financial Assets (i) Investments
(ii) Trade Receivables
(iii) Cash and Cash Equivalents
(iv) Other Bank balances
(v) Loans (vi) Other financial assets c) Other Current Assets
d) Current Tax Assets (Net)
FY20 4,381
2,525
1,291 3
28
145 54
181
154 1,909
409
12
1,108
75
30
6 - 224
45
FY21* 5,798
4,771 459
4
- 395
52
24 93 2,258
660
1
1,166 86
32
5
2 257
49
FY22* 6,787
5,085 1,102
4
- 501
52
32 11 4,042
973
1
2,532 230
3
5
3 217
78
GRAND TOTAL - EQUITIES & LIABILITES
6,290
8,056
10,829
GRAND TOTAL – ASSETS
6,290
8,056
10,829
*FY21 onward figures as per Ind AS
Valiant Organics Limited | August 2022
18
Consolidated Financial Highlights
Operational Revenue (INR Mn)
EBITDA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
14, 000
12, 000
10, 000
8, 000
6, 000
4, 000
2, 000
-
0.6
0.5
0.4
0.3
0.2
0.1
0.0
11,533
6,749
7,548
2,052
2,049
1,803
26.71%
27.19%
17.77%
2,100
1,800
1,500
1,200
900
600
300
-
2,660
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
1, 400
1, 100
800
500
200
- 100
319
11.99%
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
Net Debt to Equity (x)
0.49
0.30
0.23
Net Worth (INR Mn)
6,489
5,086
4,008
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
1,282
1,309
1,279
18.70%
17.34%
11.09%
169
6.35%
FY20
FY21
FY22
Q1-FY23
Return on Capital Employed & Return on Equity (%)
33.33%
31.49%
30.41%
25.73%
22.39%
19.71%
ROCE
ROE (%)
FY20
FY21
FY22
FY20
FY21
FY22
FY20
FY21
FY22
Valiant Organics Limited | August 2022
19
Capital Market Information
Share Price up to 30th June 2022
30% 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% -80%
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Vali ant
Sensex
Price Data (As on 30th June, 2022)
Face Value
Market Price
52 Week H/L
Market Cap (Mn)
Equity Shares Outstanding (Mn)
1 Year Avg Trading Volume (‘000)
INR
10.00
533.05
1,674.5 / 504.5
14,474.17
27.15
87.02
Shareholding pattern (As on 30st June, 2022)
Promoters, 38.46%
Public, 57.66%
FII, 1.99%
DII, 1.28%
AIF, 0.62%
Valiant Organics Limited | August 2022
20
Disclaimer
Valiant Organics Limited 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 Valiant Organics Limited (“Company”), 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.
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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.
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Valiant Organics Limited | August 2022
21
THANK YOU
Valiant Organics Limited | August 2022
22