Sigachi Industries Limited has informed the Exchange about Earnings Presentation on Q2 FY23 Results
SIGACHI INDUSTRIES LIMITED
CIN: U24110TG1989PLC009497 AN EXCiPACT GMP, ISO 9001:2015 &FSSC 22000 CERTIFIED COMPANY
s
To,
Date: 27.10.2022
The Manager BSE Limited P. J. Towers, Dalal Street Mumbai-400001 (BSE Scrip Code: 543389)
Dear Sir/Madam,
The Manager, NSE Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai- 400051. (NSE Symbol: SIGACHI)
Sub: Earnings Presentation on Q2 FY 23 Results
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 Q2 FY 2023 results. The same the Company is also uploaded on www.sigachi.com .
the website of
This is for your information and records.
Thanking You,
Yours faithfully For Sigachi Industries Limited
Shreya Mitra Company Secretary and Compliance Officer
Registered Office: #229/1 & 90, 2nd Floor, Kalyan’s Tulsiram Chambers, Madinaguda, Hyderabad-49, Telangana State, India. Email: info@sigachi.com, Customer Service +91 40 40114874 - 76
SHREYA MITRADigitally signed by SHREYA MITRA Date: 2022.10.27 16:23:01 +05'30' Sigachi Industries Limited Earnings Presentation Q2/H1-FY23
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.
Revenue (INR Mn) & EBITDA Margins (%)
2,503
• 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.
1,928
1,608
20.12%
21.21%
20.27%
1,391
17.83%
FY20
FY21
FY22
H1-FY23
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
41
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
• 2 R&D Division and 2
in-house
laboratories
• The laboratory in the Jhagadia R&D Division has been approved and has received an accreditation by DSIR to undertake R&D activities
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
Strategy going forward
Diversifying Product Mix: Manufacturing higher grades of products as well as enhancing product basket by offering innovative new value-added products
Enhancing global footprint: Increasing market share by exploring untapped markets
Expanding manufacturing capacites: At Dahej and Jhagadia to focus on the growing demand of MCC, setting up a new unit at Kurnool to manufacture CCS
Increasing focus on core business segment: Pushing efforts towards manufacturing MCC and its various grades for various industries or applications leading to optimum resource utilization
Widen its horizon: Company will venture into the human nutritional segment, with a prime focus on B2B markets, in India and across the globe. The product portfolio will include spray- dried ingredients, micronutrient premixes and other allied products.
Launch of Health Care Division : Capture the growing OTC market and cater to the increasing health expenditure in India due to the pandemic with focus to increase brand extension through launch of various products in the healthcare sector
Ensuring that the customer base increases through marketing efforts: Enhancing customer base through marketing efforts and customizing products for various applications as per requirements of customers
Sigachi Industries Limited
5
Financial Overview
6
Q2/H1-FY23 Consolidated Highlights
Q2-FY23 Financial Highlights
H1-FY23 Financial Highlights
INR 825 Mn Operating Income
INR 163 Mn Operating EBITDA
+44% YoY
+21% YoY
19.76% Operating EBITDA Margins -384 Bps YoY
INR 1,608 Mn Operating Income
INR 326 Mn Operating EBITDA
+43% YoY
+27% YoY
20.27% Operating EBITDA Margins -266 Bps YoY
INR 136 Mn Net Profit
+37% YoY
16.48% PAT Margins
-82 Bps YoY
INR 4.42/Share Diluted EPS
+3% YoY
INR 264 Mn Net Profit
+40% YoY
16.42% PAT Margins
-44 Bps YoY
INR 8.59/Share Diluted EPS
+5% YoY
Sigachi Industries Limited
7
Q2/H1-FY23 Operational Highlights
• Revenue growth driven by increased demand for MCC across all industries, with volume growth of ~8.5% and realisation growth
of ~25% in Q2-FY23 on a YOY basis.
• Decline in EBITDA margins in Q2-FY23 on a YOY and QOQ basis was due to higher raw material costs and increase in costs on new
business initiatives of OTC and Nutraceuticals which are in nascent stage of launch and hence contribution to margins are low
currently.
•
Export sales increased by about 40% to INR 113.20 Cr in H1-FY23 as compared to INR 80.87 Cr in H1-FY22.
• Capacity utilization increased to 94.50% in H1-FY23 as compared to 93.27% in FY22.
• Company successfully passed on freight & raw material increases to the customers.
• Company expects the growth trend to continue with current profitability at sustainable levels.
•
Furthermore, capacities of around 7,000MT will be added during the latter part of FY23 which will contribute to additional
revenue growth in the coming financial years.
• Company is constantly thriving to improve on its R&D capabilities and cost-effective manufacturing processes and there by remain
as a manufacturer of choice with highest quality standards.
Sigachi Industries Limited
8
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
Q2-FY23
Q2-FY22
Y-o-Y
Q1-FY23
Q-o-Q
825
662
163
572
437
135
44.2%
51.5%
20.7%
783
620
163
5.4%
6.8%
NA
19.76%
23.60%
(384) Bps
20.82%
(106) Bps
21
12
22
152
16
136
8
2
2
128
29
99
NA
NA
NA
18.8%
(44.8)%
37.4%
8
5
16
166
38
128
NA
NA
37.5%
(8.4)%
(57.9)%
6.25%
16.48%
17.30%
(82) Bps
16.35%
13 Bps
4.42
4.28
3.27%
4.17
6.0%
Sigachi Industries Limited
9
Half Yearly 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
H1-FY23
H1-FY22
1,608
1,282
326
1,121
864
257
Y-o-Y
43.4%
48.3%
26.8%
20.27%
22.93%
(266) Bps
29
17
38
318
54
264
14
4
4
243
54
189
NA
NA
NA
30.9%
NA
39.7%
16.42%
16.86%
(44) Bps
8.59
8.18
5.0%
Sigachi Industries Limited
10
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
FY20
1,391
1,143
248
FY21
1,928
1,540
388
FY22
2,503
1,972
531
H1-FY23
1,608
1,282
326
17.83%
20.12%
21.21%
20.27%
20
23
48
253
50
203
23
13
33
385
82
303
29
12
26
516
116
400
29
17
38
318
54
264
14.59%
8.81
15.72%
13.13
15.98%
15.44
16.42%
8.59
Sigachi Industries Limited
11
Historical Consolidated Balance Sheet
Particulars (INR Mn)
FY20
FY21
H1-FY23
Particulars (INR Mn)
FY20
FY21
EQUITY
Equity Share Capital
Other Equity
NON-CURRENT LIABILITIES
a) Financial Liabilities
i) Borrowings
ii) Lease Liability
b) Provisions
c) Deferred tax liabilities (net)
CURRENT LIABILITIES
a) Financial Liabilities
i) Borrowings
ii) Lease Liabilities
iii) Trade Payables
iv) Other financial liabilities
b) Other current liabilities
c) Provisions
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
646
77
569
55
19
-
7
29
390
942
77
865
70
19
-
8
43
322
270
183
-
72
14
33
1
-
80
7
43
9
FY22
2,277
307
2,504
307
NON-CURRENT ASSETS
a) Property, plant and equipment
1,970
2,197
b) Capital work-in-progress
76
12
-
9
55
515
332
-
106
6
59
12
295
10
231
8
46
727
384
36
215
5
69
18
c) Right of Use Assets
c) Intangible assets
d) Financial assets
i) Investments
ii) Other Financial Assets
e) Other non-current assets
CURRENT ASSETS
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
445
1,091
392
1,334
591
2,868
1,022
3,525
c) Inventories
TOTAL ASSETS
371
312
31
-
4
-
14
10
720
276
88
18
46
13
279
FY22
1,069
527
97
-
7
2
351
85
H1-FY23
1,882
794
177
260
7
2
479
164
463
376
37
-
3
2
18
27
871
1,799
1,643
358
159
21
100
21
212
601
291
403
128
71
305
791
63
177
156
93
363
1,091
1,334
2,868
3,525
Sigachi Industries Limited
12
Consolidated Financial Highlights
Operational Revenue (INR Mn)
EBIDTA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
1,928
1,391
2,503
1608
531
388
248
17.83%
20.12%
21.21%
400
303
326
20.27%
203
264
16.42%
14.59%
15.72%
15.98%
FY20
FY21
FY22
H1-FY23
FY20
FY21
FY22
H1-FY23
FY20
FY21
FY22
H1-FY23
Net Debt to Equity (x)
Cash Conversion Cycle (Days)
0.28
0.22
130
117
92
ROCE (%) and ROE(%)
ROE
ROCE
40%
31%
39%
32%
0.06
FY20
FY21
FY22
H1-FY23
FY20
FY21
FY22
FY20
FY21
22%
18%
FY22
-0.15
Sigachi Industries Limited
13
Capital Market Information
Share Price Movement Upto 30th Sept
15%
5%
-5%
-15%
-25%
-35%
-45%
-55%
-65%
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Jul-22
Aug-22
Sep-22
SENSEX
SIGACHI
Market Data (INR) as on 30th Sept, 2022
Shareholding Pattern as on 30th Sept, 2022
Face Value
CMP
52 Week H/L
Market Cap (INR Mn)
Shares O/S (Mn)
Avg. Vol. Since Listing (‘000)
10.0
268.6
648.0/231.3
8,258.9
30.7
270.31
Public 52%
Promoters 48%
14
Sigachi Industries Limited
14
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
15
Thank You
16