Shree Pushkar Chemicals & Fertilisers Limited has informed the Exchange regarding Investor Presentation for the Quarter and Year ended 31st March,2019 for reference to the stakeholders of the company.
Shree Pushkar Chemicals & Fertilisers Limited
Investor Presentation May 2019
1
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shree Pushkar Chemicals & Fertilisers Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but 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.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.
2
FY19 Financial Highlights
3
Record Annual Performance
Revenue
Highest Ever
Rs. 451.9 Crores
Adj. EBITDA*
Highest Ever
Rs. 69.3 Crores
Margin 15.3%
PAT
Highest Ever
Rs. 40.8 Crores Rs. 40.8 Crores
Margin 9.0% Margin 9.0%
The Board have recommended a Final Dividend of Rs. 1.5 per share (i.e. 15% of Face Value of the share)
As per Ind AS
On Consolidated Basis
*One off Expenses (Bad Debts Written Off)
4
Key Business Update
Commenced Sulphuric Acid plant of 100 TPD in Kisan Phosphates Pvt. Ltd.
Revamping of the Manufacturing facilities at Unit - 1 situated within MIDC Lote
Rationale
▪ To meet captive requirement of Acid & Power Plant of
700 KW capacity
▪ Expected to reduce power cost in said unit by ~25-
30%
then
Since
▪ Unit-1 started its manufacturing activities way back in 2001. several there expansions/debottlenecking over the years. Thus unit-I which is the oldest, has the maximum number of plants and the plot area is fully utilised resulting in congestion, leaving no area for modifications/ expansions.
been
has
▪ From time to time preventive maintenance were carried out and no major difficulties have been experienced in the past. Now over the last few quarters, we have been facing frequent breakdowns in some of the old DI plants which have been creating various operational difficulties.
▪ Keeping this in view, the Company has proposed to revamp some of the plants by taking up these plants for major overhaul, maintenance & replacement:
o Dismantling/ Scrapping/Modifying some of the vessels/ reactors/ equipment’s /plants which have outlived their age and replace them with new ones to make them more versatile
▪ The revamp will take place in a phased manner with a capex cost of ~ Rs 5 Crs and will be funded through internal accrual. The revamp is expected to be completed by end of the current financial year FY20.
Better Quality Better Quality
Optimum Optimum Efficiency Efficiency
Deployment of Deployment of Latest Technology Latest Technology
Value added Value added Products Products
Long term Sustainability
5
Planned Expansion through Internal Accrual
The planned capex of ~Rs. 75 crores in the dye intermediaries’ segment is in advanced stage of obtaining EIA/ MPCB clearance. The said expansion is expected to commence production in FY21
In process of acquiring Madhya Bharat Phosphates Pvt. Ltd, (MBPL) through NCLT with the total cost of ~Rs including crores refurbishment of said unit
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Rs 108 cr Capex through Internal Accrual
Revamping of the Manufacturing facilities at Unit -1 in MIDC Lote for Rs 5 Crores
6
FY19 Performance Highlights
Total Revenue from operations
Adjusted EBITDA
PAT
(Rs in Crores)
395.3 25.1
451.9
51.7
370.2
400.2
61.2 4.0
57.2
69.3
8.6
60.7
36.5 3.3
33.2
40.8 4.3
36.5
FY18
FY19
FY18
FY19*
FY18
FY19
Kisan Phosphates
Standalone
• Rising contribution from Dyestuff
• Improving Price Realisation
• Higher Recognition of Brand Dyecol
• Higher penetration in Export Market: +190%
Growth
• Improved Product Mix
• Impacted due to One off Expenses (Bad
Debts Written Off)
• Consistent improvement in Bottom line
As per Ind AS
On Consolidated Basis
*One off Expenses (Bad Debts Written Off)
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FY19 Segmental Highlights
•
•
Sustained contribution from Dyestuff segment to our revenues which has been on the uptrend. We believe, the realization of Dyestuff to improve as the increase in prices of dye intermediates gets passed on to the dyestuff
Acid Complex Division continues to have higher captive utilization for Dye Intermediates in view of additional capacity in Dye Intermediates and production of dyes
Revenue Break up FY19
Dyestuff
Dye Intermediates
7% Volume growth
2% Volume de-growth
8% Revenue growth
13% Revenue growth
20.1%
5.6%
Led by Higher Captive Consumption
24.1%
50.2%
Fertiliser
Acid Complex
66% Volume growth
43% Volume de-growth
30% Revenue growth
15% Revenue growth
Led by Higher Captive Consumption
Dyestuff
Others
Dye Intermediates
Fertiliser
*Volumes represent sales volumes
On Consolidated Basis
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Improvement in Working Capital
Receivables Days
79
79
FY18
FY19
Payable Days
68
54
Inventory Days
110
75
FY18
FY19
Working Capital Days
122
100
FY18
FY19
FY18
FY19
9
Consistent Growth in Business
(Rs in Crores)
210.1
266.5
251.2
+17%
308.1
395.3
451.9
14.0%
11.9%
13.9%
17.5%
15.4%
15.3%
+19%
54.0
61.1
69.3
29.4
31.8
34.9
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19*
Total Revenue from operations
EBITDA
11.8%
10.6%
12.4%
15.8%
13.9%
13.2%
4.9%
7.0%
8.9%
9.8%
9.2%
9.0%
+19%
48.5
55.1
59.5
+31%
30.2
36.5
40.8
24.8
28.2
31.1
18.7
22.3
10.4
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
As per Ind AS post FY17
On Consolidated Basis
*One off Expenses (Bad Debts Written Off)
EBIT
PAT
Margin %
10
Segmental Revenue Breakup
(Rs in Crores)
101.2
109.1
165.4
201.2
171.4
196.4
200.3
226.8
40.2
FY17
FY18
Dyestuff
16.3
FY19
FY14
FY15
FY16
FY17
FY18
FY19
Dye Intermediates
7.7
10.3
10.2
8.7
8.9
48.2
48.7
31.0
90.9
70.1
57.6
FY14
FY15
FY16
FY17
FY18
FY19
FY14
FY15
FY16
FY17
FY18
FY19
Acid Complex
Fertilisers
Higher captive consumption of Dye Intermediates and Acids, for Production of Dyes
As per Ind AS post FY17
On Consolidated Basis
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Key Financial Parameters
(Rs in Crores)
Net Debt
ROE %
58
22
45
7
-24
-8
21.1%
16.3%
13.7%
15.7%
15.4%
14.4%
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18#
Mar-19#
Mar-14
Mar-15
Mar-16^
Mar-17^
Mar-18#^
Mar-19#^
Net Debt to Equity
24.9%
19.6%
ROCE %
23.5%
17.2%
18.3%
18.0%
0.9
0.2
0.2
0.0
-0.1
0.0
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18#
Mar-19#
Mar-14
Mar-15
Mar-16^
Mar-17^
Mar-18#^
Mar-19#^
As per Ind AS post FY17
On Consolidated Basis
^Lower return ratios led by increase in Shareholder Capital post IPO
#Includes Kisan Phosphate in FY18 & FY19
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Consolidated P&L Statement
Particulars (Rs. In Crores) Revenue from Operations (Net of Excise) Raw Material Employee Cost Other Expenses Adj. EBITDA*
Q4 FY19 117.6 84.2 6.7 13.9 12.8
Q4 FY18 120.1 88.0 5.7 14.1 12.3
Y-o-Y -2.1%
3.7%
Adj. EBITDA Margin* One off Expenses* Other Income Depreciation EBIT EBIT Margin Finance Cost Profit before Tax PBT Margin Tax Reported PAT PAT Margin
Normalised PAT* Normalised PAT Margin*
10.9% 2.2 1.1 2.5 9.2 7.8% 1.8 7.4 6.3% -0.2 7.6 6.5%
9.9 8.4%
10.3% 0.0 0.5 2.2 10.7 8.9% 0.8 9.8 8.2% 0.5 9.4 7.8%
9.4 7.8%
-13.7%
-24.4%
-18.4%
5.3%
FY19
451.9 302.6 30.1 49.8 69.3 15.3% 2.2 2.4 10.0 59.5 13.2% 3.7
55.8 12.4% 15.0 40.8
9.0% 43.7 9.7%
FY18
395.3 272.1 18.7 43.3 61.2 15.5% 0.0 1.7 7.8 55.1 13.9% 2.9
52.2 13.2% 15.7 36.5
9.2% 36.5 9.2%
Y-o-Y
14.3%
13.3%
8.1%
6.9%
11.8%
19.5%
As per Ind AS
On Consolidated Basis
*One off Expenses (Bad Debts Written Off)
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Consolidated Balance Sheet
EQUITY AND LIABILITIES (Rs. In Crores) Equity Equity Share capital Other equity Sub-total - Shareholders' funds LIABILITIES Non-current liabilities Financial liabilities
Borrowings
Provisions Deferred tax liabilities (net) Other non-current liabilities Sub-total - Non-current liabilities Current liabilities Financial liabilities
Borrowings Trade payables Other financial liabilities Other current liabilities Provisions Current tax liabilities (net) Sub-total - Current liabilities TOTAL - EQUITY AND LIABILITIES
As per Ind AS
Mar-19 Mar-18
30.7 253.7 284.4
30.2 206.9 237.1
7.4 0.5 19.6 0.5 28.0
39.3 44.9 0.4 5.3 0.1 5.9 95.9 408.3
2.7 0.4 13.7 0.1 17.0
61.9 50.5 0.4 2.8 0.0 10.0 125.6 379.7
ASSETS (Rs. In crores) Non-current assets Property, plant and equipment Capital work-in-progress Goodwill Intangible Assets Under Development Financial assets Investments Other financial assets Other non-current assets Sub-total - Non-Current Assets Current assets Inventories Financial assets Trade receivables Cash and cash equivalents Bank balances other than Cash and Cash equivalents Loans Other financial assets Other current assets Sub-total - Current Assets Assets held for sale TOTAL - ASSETS
Mar-19 Mar-18
167.3 10.5 4.9 0.0
0.1 4.2 9.2 196.1
161.4 3.4 4.9 0.0
0.5 1.6 8.2 180.0
62.3
82.3
98.3 0.5 39.3 0.3 1.5 10.0 212.2 0.0 408.3
86.0 0.4 19.0 0.2 1.1 10.7 199.7 0.0 379.7
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Standalone P&L Statement
Particulars (Rs. In Crores)
Q4 FY19
Q4 FY18
Revenue from Operations (Net of Excise)
Raw Material
Employee Cost
Other Expenses
Adj. EBITDA*
Adj. EBITDA Margin*
One of Expense*
Other Income
Depreciation
EBIT
EBIT Margin
Finance Cost
Profit before Tax
PBT Margin
Tax
Reported PAT
PAT Margin
Normalised PAT*
Normalised PAT Margin*
102.2
75.8
5.9
10.1
10.5
10.3%
2.2
1.1
2.0
9.5
9.3%
0.8
8.8
8.6%
0.0
8.8
8.6% 11.0
10.8%
101.9
75.8
4.6
11.8
9.7
9.5%
0.0
0.5
1.7
8.5
8.3%
0.7
7.8
7.7%
1.5
6.3
6.2% 6.3
6.2%
Y-o-Y
0.3%
8.1%
12.2%
12.1%
39.6%
74.7%
FY19
400.2
273.8
26.7
38.9
60.7
15.2%
2.2
2.4
8.2
52.7
13.2%
2.0
50.7
12.7%
14.2
36.5
9.1% 39.3
9.8%
FY18
370.2
258.3
17.0
37.7
57.2
15.4%
0.0
1.7
6.9
51.9
14.0%
2.3
49.7
13.4%
16.5
33.2
9.0% 33.2
9.0%
Y-o-Y
8.1%
6.2%
1.5%
2.1%
9.9%
18.5%
As per Ind AS
On Standalone Basis
*One off Expenses (Bad Debts Written Off)
15
Standalone Balance Sheet
EQUITY AND LIABILITIES (Rs. In Crores) Equity Equity Share capital Other equity Sub-total - Shareholders' funds LIABILITIES Non-current liabilities Financial liabilities
Borrowings
Provisions Deferred tax liabilities (net) Other non-current liabilities Sub-total - Non-current liabilities Current liabilities Financial liabilities
Borrowings Trade payables Other financial liabilities Other current liabilities Provisions Current tax liabilities (net) Sub-total - Current liabilities TOTAL - EQUITY AND LIABILITIES
Mar-19 Mar-18
30.7 245.9 276.6
30.2 203.5 233.7
0.3 0.5 20.4 0.5 21.7
11.0 36.4 0.4 4.3 0.1 4.8 57.0 355.3
0.3 0.4 14.1 0.1 15.0
40.8 39.1 0.4 2.6 0.0 9.9 92.9 341.6
ASSETS (Rs. In crores) Non-current assets Property, plant and equipment Capital work-in-progress Goodwill Intangible Assets Under Development Financial assets Investments Other financial assets Other non-current assets Sub-total - Non-Current Assets Current assets Inventories Financial assets Trade receivables Cash and cash equivalents Bank balances other than Cash and Cash equivalents Loans Other financial assets Other current assets Sub-total - Current Assets Assets Classified as held for Sale TOTAL - ASSETS
Mar-19 Mar-18
137.9 10.5
141.8 0.3
0.0
0.0
21.4 3.8 9.1 182.6
21.8 1.5 7.3 172.6
46.0
67.1
79.4 0.4 39.3 0.3 1.4 5.9 172.7 0.0 355.3
72.4 0.3 19.0 0.2 1.1 8.9 169.0 0.0 341.6
As per Ind AS
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Business Overview
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A Winning Formula…
Ramping up of higher margin Dyestuff Segment
Products spread across 5 segments
Brand DyecolTM for Dyestuff Segment
Undertaken Backward & Forward Integration
Exports to world’s leading dye manufacturers
Single location plant at Lote Parshuram
Marketing through +300 dealers for Fertilisers
We have a sustainable Zero Waste Model
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Evolution of Our Business
1993 – 2003
2004- 2010
2011 – 2016
2017 & Beyond
•
• Commenced trading/imports of chemical products & dye Intermediates In 2001, changed our focus to manufacturing by starting Gamma Acid In 2002, began backward integration for In-house Raw Material & Cost Efficiencies
•
• Recycling of effluents from Dye Intermediates Division with the manufacturing of Di Calcium Phosphate in 2007
•
In 2010, commenced the Acid Division
•
•
In 2011, began use of Spent acid for manufacturing of SSP and Soil Conditioner In 2016: o o
Started our NPK Plant Expanded capacities within Dye Intermediates
o Moved up the Value chain with Manufacture of Dyestuff
•Rapidly expanded Dyestuff Segment by adding doubled capacity
•Commissioned additional capacity of SOP by 10,000 TPA
•Planned Expansion in the areas of Intermediates and Sulphur Dyes Derivatives
•Launched the brand DyecolTM for Dyestuff
•Acquired Kisan Phosphates in FY18
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Our Product Portfolio
Our Products
Constantly on the improvement based on market response with over 30 different shades in Reactive dyes Black, Yellow & Red
Gamma Acid, K- Acid, R- Salt, Vinyl Sulphone, Meta Ureido Aniline and H- Acid
Single Super Phosphate (SSP) Soil Conditioner, Mixed granulated fertiliser (NPK), Sulphate Of Potash (SOP)
Sulphuric Acid, Oleum and Chloro Sulphonic Acid (CSA)
Di- Calcium Phosphate (DCP)
DyeStuff
Dye Intermediates
Fertilizers
Acid Complex
Cattle Feed
Used for Dying of Textile / Yarns commonly cellulosic material
Products manufactured from organic chemicals and are further processed to obtain dyestuff
Phosphatic fertiliser & a fertiliser used to the improve the soils quality and for improving / Building soil
Active acid reagent typically used for Sulphonation reaction
Mainly used as a dietary supplement in animal feed products by cattle & poultry feed manufacturers
Applications of the Products
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A One Stop Solution
All our Plants are at a single location, Lote Parshuram, Maharashtra…
Unit 1 – Dye Intermediates
Unit 2 – SSP Granulation Plant
Unit 3 - New Reactive Dyes Plant
Unit 4 - SOP
Sulphuric Acid Plant
… leading to operational and logistics efficiencies.
New Application Lab for Testing of Dyes
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Persistent Focus on the High Margin Dyestuff Segment
FY17 Revenue : Rs 310.2 Crores
Others
5.0%
Dyes
12.9%
Fertiliser
18.5%
FY19 Revenue : Rs 400.2 Crores
Fertiliser
Others
4.0%
12.0%
Dyes
27.3%
63.4%
56.7%
Dye Intermediates
Dye Intermediates
*Above figures are on Standalone Basis
Increase in contribution of Dyestuff Segment
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An Overview of Dye Intermediates Business
❑ One of the few manufactures of wide range of dye intermediates
Revenue in Rs. Crores
in India with zero waste
❑ Post 2006, we have been enjoying best cost efficiency due to
recycling of effluents
❑ State of art integrated manufacturing facilities located at Lote
128
+10%
170
201
165
227
196
200
Parshuram, Maharashtra
❑ Total Capacity of 8,986 MTA
❑ Amongst India`s large manufacturers of K-Acid
❑ End Use in manufacturing of Dyes for Textile Industry
FY13
FY14
FY15
FY16
FY17*
FY18*
FY19*
*As per Ind AS
On Standalone Basis
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Our Fertilisers Division
Single Superphosphate (SSP)
Nitrogen Phosphorus Potassium (NPK)
Sulphate of Potash (SOP)
Soil Conditioner
Granular Calcium Chloride
• The main raw materials
for SSP are rock phosphate and sulphuric acid and it is based one of the simplest chemical reactions in the fertilizer industry
• SSP, which is a poor
farmer's fertilizer (price- wise), is an option to optimise the use of phosphatic fertilizers
• We have a capacity of
100,000 TPA which was started in 2011 + additional 100,000 TPA by way of Kisan Phosphates
• NPK fertilizer is primarily composed of three main elements: Nitrogen (N), Phosphorus (P), and Potassium (K)
• We have received a
license for manufacture of Mixed Fertilizer NPK in the state of Maharashtra
• We have a Capacity of 18,000 MTA and was launched on February 2016
• SOP is a preferred form of potassium in saline or sodic soil conditions and where irrigation water may have high chloride levels
• We started the SOP plant with a capacity of 10,000 MTA commenced Commercial Production in the end of September 2016 and further commissioned additional 10,000 MTA capacity based on improved demand
We are marketing our products through our own brand name
through our own marketing channels
• Soil conditioner is a product which is added to soil to improve the soil’s physical qualities, usually its fertility (ability to provide nutrition for plants) and sometimes aids its mechanics.
• We have a capacity of 12,000 MTA and commenced manufacture in 2011 + additional 6,000 TPA by way of Kisan Phsophates
• Launched its own soil
conditioner brand ‘Dharti Ratna’ in Western Maharashtra
• To utilize HCL
generated in SOP, we set up a granular calcium chloride plant
• Calcium Chloride is designed for snow removal and deicing operation
• The Plant has a
capacity of 6500 MTA. Commercial Production commenced in February 2017
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Zero Waste Methodology – Creating Value
B –Napthol
R Salt
Di Calcium Phosphate
Effluents
Effluents
Soil Conditioner
Gamma Acid
K - Acid
Meta Ureido Aniline
Vinyl Sulphone
Sulpho VS
H - Acid
Effluents
Chloro Sulphonic Acid
SSP
Final Products
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Our Strengths
Fast Paced Growth in our Dyestuff Segment
Substantial increment in the contribution from Dyestuff Segment to our Revenue on a quarter on quarter basis
Low Financial Leverage
Zero Debt Company with Debt to Equity nearly NIL
Internal Co-generation of Power
Use of High Pressure Steam generated from Acid Plant for Power Generation and Internal Consumption and also consume low pressure steam for general heating in the various plants, thus saving on fuel cost
Own logistics Fleet
For smooth transportation of raw material and products to Clients
Zero Waste Chemical Company
We do not incur large costs on effluent treatment due to our zero waste model
Cost Efficiencies
We are backward Integrated for Raw Material manufacturing
Single Location Plant
All Facilities within MIDC, Lotte Parshuram, Maharashtra, thus offering us numerous logistics and management control advantages
Inorganic Growth
Took the first step of inorganic growth by 100% equity acquisition of Kisan Phosphates Pvt Ltd, located in Hisar, Haryana
26
Growth Drivers for the Future
Environmentally Conscious
• A clean track record with no regulatory issues • Continue to recycle our effluents in our
integrated model and minimize discharge • We are already BlueSign certified company and our manufacturing bases are as per international EHS Standards
Working towards our Brand
Launched the brand DyecolTM for Dyestuff and looking to capture more value by leveraging our marketing capabilities
Plans For Expansion
• Reactive Dyes Capacity expanded to
6000 MTA
• Sulphate of Potash (SOP) capacity to
be doubled to 20,000 MTA
Growth within the Dyestuff Segment
We have been focusing on increasing revenue from the higher margin Dyes Business through the export and domestic markets
Our Vision is to become a complete Textile Solutions Provider
27
Key Management
Punit Makharia Chairman & Managing Director A first generation entrepreneur, he holds a Bachelors in Commerce with a rich business experience of over 2 decades in dealing with chemical and dyes intermediates
Gautam Makharia Managing Director
With and BE in Electronics and an MBA(Finance), his experience spans across GE, P & G, Barclays, BARC
Ratan Jha CFO
CA with 10+ years of experience in accountancy and taxation
Dilip Shah GM – Export Import Has 28 years of experience in the field of Import and Export
R Purohit GM Marketing–Fertilizer 20+ years of experience in strategic planning, marketing/ business development
S N Sengupta Associate Director A chemical engineer wiith experience of 34 years in project financing and techno economic feasibility studies of industrial projects
Rajkumar Sahani VP - Projects
A chemical Engineer with over 43 years of experience in setting up various chemical plants and has worked with R.C. Fertilisers Private Limited
Mahendra Kavadia
GM of Unit I
Over 29 years of experience in the field of dyes, chemicals and fertilisers
R M Tiwari
GM of Unit II 30 years of experience in manufacturing of fertilizers
Dolekar
GM of Unit III
With an B. Tech in Dyes & Pigments, he has over 20+ years of experience in the manufacture of Dyes
Satish Chavan
Company Secretary
With experience of over 2 years he is a CS with Bachelors degree in Commerce and Law
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For further information, please contact
Company :
Investor Relations Advisors :
Shree Pushkar Chemicals & Fertilisers Ltd CIN: L24100MH1993PLC071376 Mr. S N Sengupta, Associate Director sengupta@shreepushkar.com
Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Ms. Neha Shroff / Mr. Shrikant Sangani neha.shroff@sgapl.net /shrikant.sangani@sgapl.net Tel: 7738073466/ 9619595686
www.shreepushkar.com
www.sgapl.net
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