Sigachi Industries Limited has informed the Exchange about Investor Presentation
SIGACHI INDUSTRIES LIMITED
CIN: L24110TG1989PLC009497 AN EXCiPACT GMP, ISO 9001:2015 &FSSC 22000 CERTIFIED COMPANY www.sigachi.com
s
To,
Date: 25.05.2023
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 for Q4 FY 23
Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) 2015, and with reference to the subject cited, please find enclosed the Earnings Presentation for Q4 FY 2023 for the earnings call to be held on 29.05.2023. The same is also uploaded 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
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
Sigachi Industries Limited Earnings Presentation Q4-FY23/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 50 countries
R&D Facility in Dahej is approved by DSIR and also have other 2 in- house laboratories
4 state-of-the-art manufacturing facilities situated in Hyderabad and Gujarat
3 year CAGR
Revenue: 29.49% EBITDA: 33.27% PAT: 29.02%
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 (%)
3,020
• 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 two 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 50 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 has an agreement with Gujarat Alkalies and Chemicals Limited (“GACL”) and also with Grasim Industries(Aditya Birla Group) for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminum chloride.
2,503
1,928
1,391
17.83%
20.12%
21.21%
19.43%
FY20
FY21
FY22
FY23
Sigachi Industries Limited
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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
capable R&D manufacturing gives a first mover
and
India
Pan presence: • A long-standing market presence in
International market
India and internationally
• Exporting products to over 50 countries worldwide, including regions of US, UK, Australia, EU region, Middle East and SE Asia
Presence across diverse industry verticals with relationship with long customers : • Customization of products based on and
specifications
standing
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 Dahej R&D Division has been approved and has received an accreditation by DSIR to undertake R&D activities
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
Strategically located manufacturing facilities Set up 4 multi locational manufacturing • units namely, Hyderabad, Sultanpur unit TG (“Unit I”), Jhagadia, Gujarat (“Unit II”) and Dahej, Gujarat (“Unit III”) and Kurnool plant (“Unit IV”) 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 in Pharma: 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 Dahej 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- Food & Nutrition are integral to good health: 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.
Health Care Division : Capture the growing Branded Generics & OTC market and cater to the increasing health expenditure in India through launch of various products in the healthcare sector
Dedicated Transformation office to oversee the Hyper growth: Enhancing customer base through marketing efforts and customizing products for various applications as per requirements of customers
Sigachi Industries Limited
5
Financial Overview
6
Q4-FY23/FY23 Consolidated Highlights
Q4-FY23 Financial Highlights
FY23 Financial Highlights
INR 724 Mn Operating Income
INR 122 Mn Operating EBITDA
16.85% Operating EBITDA Margins
INR 3020 Mn Operating Income
INR 587 Mn Operating EBITDA
19.43% Operating EBITDA Margins
INR 73 Mn Net Profit
10.08% PAT Margins
INR 2.38/Share Diluted EPS
INR 436 Mn Net Profit
14.43% PAT Margins
INR 14.16/Share Diluted EPS
Sigachi Industries Limited
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Q4-FY23/FY23 Operational Highlights
• Revenue growth in FY23 primarily driven by realisation growth of ~15% YoY .
• Focus on high margin yielding product mix and cost-effective manufacturing processes, effective management of
inventory resulted in increase of EBITDA and Profitability.
• During the quarter the company was successful in being able to pass on increased freight & raw material prices on
to customers.
• Company is constantly thriving to improve upon its R&D capabilities and cost-effective manufacturing processes
and thereby remain a manufacturer of choice with highest quality standards.
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 (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS
Q4-FY23
Q4-FY22
Y-o-Y
Q3-FY23
724
602
122
725
579
146
(0.14)%
3.9%
(16.43)%
688
548
140
Q-o-Q
5.23%
9.85%
(12.85)%
16.85%
20.14%
(329)Bps
20.35%
(350)Bps
20
14
15
103
30
73
8
4
17
151
35
116
150%
250%
(11.76)%
(31.78)%
(14.28)%
(37.06)%
18
12
13
11.11%
16.67%
15.38%
123
(16.26)%
25
98
20%
(25.51)%
10.08%
16.00%
(592)Bps
14.24%
(416)Bps
7
80
2.38
(5)
111
4.49
NA
(27.93)%
0
98
NA
(18.37)%
(47)%
3.20
(25.62)%
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 (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS
FY23
3,020
2,433
587
FY22
2,503
1,972
531
19.43%
21.21%
66
43
67
545
109
436
29
12
26
516
116
400
Y-o-Y
20.65%
23.37%
10.54%
(178)Bps
127.58%
258.33%
157.69%
5.62%
(6.03)%
9%
14.43%
15.98%
(155)Bps
1
437
14.16
(6)
394
15.44
NA
10.91%
(8.29)%
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 (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS
FY20
1,391
1,143
248
FY21
1,928
1,540
388
FY22
2,503
1,972
531
FY23
3,020
2,433
587
17.83%
20.12%
21.21%
19.43%
20
23
48
253
50
203
23
13
33
385
82
303
29
12
26
516
116
400
66
43
67
545
109
436
14.59%
15.72%
15.98%
14.43%
(0)
203
8.81
1
304
13.13
(6)
394
15.44
1
437
14.16
Sigachi Industries Limited
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Historical Consolidated Balance Sheet
Particulars (INR Mn) 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
FY20 646
FY21 942
77
569
55
19
-
7
29
390
77
865
70
19
-
8
43
322
270
183
-
72
14
33
1
-
80
7
43
9
FY22
2,277
307
1,970
76
12
-
9
55
515
332
-
106
6
59
12
FY23
2683
307
2376
308
10
231
15
52
747
395
41
208
9
94
-
Particulars (INR Mn)
NON-CURRENT ASSETS
a) Property, plant and equipment
b) Capital work-in-progress
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
1055
3738
c) Inventories
TOTAL ASSETS
FY20
FY21
FY22
1,069
527
97
-
7
2
351
85
FY23
1964
960
349
257
7
2
225
164
463
376
37
-
3
2
18
27
871
1,799
1774
358
159
21
100
21
212
601
291
403
128
71
305
802
137
190
69
110
466
371
312
31
-
4
-
14
10
720
276
88
18
46
13
279
1,091
1,334
2,868
3738
Sigachi Industries Limited
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Consolidated Financial Highlights
Operational Revenue (INR Mn)
EBIDTA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
3,020
2,503
587
531
1,928
1,391
388
248
17.83%
20.12%
21.21%
19.43%
436
400
303
203
14.59%
14.43%
15.72%
15.98%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Net Debt to Equity (x)
Cash Conversion Cycle (Days)
ROCE (%) and ROE(%)
ROE
ROCE
0.28
0.22
FY20
FY21
FY22
-0.15
0.03
FY23
130
117
92
149
40%
31%
39%
32%
22%
18%
19%
16%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Sigachi Industries Limited
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Capital Market Information
20%
10%
0%
-10%
-20%
-30%
Share Price Performance
Apr 22
May 22
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Nov 22
Dec 22
Jan 23
Feb 23
Mar 23
SENSEX
SIGACHI
Market Data (INR) as on 31st March, 2023
Shareholding Pattern as on 31st March, 2023
Face Value
CMP
52 Week H/L
Market Cap (INR Mn)
Shares O/S (Mn)
Avg. Volume (‘000)
10.0
225.10
359.0/220.0
6,920.13
30.7
168.4
Public 52%
Promoters 48%
14
Sigachi Industries Limited
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Disclaimer
SigachiIndustriesLimitedDisclaimer: 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.
ValoremAdvisorsDisclaimer: 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