Tata Chemicals Limited has informed the Exchange regarding Investor Presentation
^-.TI' TATA
August 8, 2019
The General Manager Corporate Relations Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 00"1 Scrio Code: 500770
Dear Sir/Madam,
National Stock Exchange of lndia Ltd. Exchange Plaza Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Svmbol: TATACHEM
Sub: Submission of Analvsts/lnvestors Presentation
Ref.: Letter dated Julv 23. 20{9 informinq about Analvsts/lnvestors Presentation
Further to our referred letter, please find enclosed a presentation to be made to analysts/investors on the results for the first quarter ended June 30, 2019 for the analysts/investors call to be held today i.e. Thursday, August 8, 2019.
The presentation is being submitted in compliance with Regulation 30(6) read with Schedule lll Part A Para A of the Securities and Exchange Board of lndia (Listing Obligations and Disclosure Requirements) Regulations, 2015. A copy of the presentation is also uploaded on the Company's website www.tatachemicals.com.
You are requested to take the same on record.
Thanking you,
Yours faithfully, For Tata Ghemicals Limited
General Counsel & Company Secretary
Encl: As above
TATA CHEMICALS LIMITED Bombay House 24 Homi Mody Street Fort Mumbai 4O0 0Ol te q zl 6;6S Azsz Fax 91 22 6665 av3t44 wwwralachemi'als (om CIN : L242l9MHl 939PLC0O2893
Analyst / Investors Communication on Financial results for quarter ended June 2019 Date: 8 August 2019
1
Safe Harbour Statement
“This Presentation, except for the historical information, may contain statements, including the words or phrases such as
‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects,
should’ and similar expressions or variations of these expressions or negatives of these terms indicating future
performance or results, financial or otherwise of Tata Chemicals Limited, its direct and indirect subsidiaries and its
associates. Actual results might differ substantially or materially from those expressed or implied. Important factors that
could make a difference to the Company’s operations include, among others, economic conditions affecting demand /
supply, price conditions in the domestic and overseas markets in which the Company operates, changes in
Government policies and regulations, tax laws, and other statutes and incidental factors. You are urged to view all
statements contained herein with caution. Tata Chemicals Limited does not undertake any obligation to update or revise
forward look statements, whether as a result of new information, future events or otherwise”
2
Business Overview
3rd largest Soda Ash producer globally │5,000+ employees across 4 continents
│160 million households consume Tata Salt each month
3
Key Highlights
Demerger of Consumer Products Business to TGBL, subject to the requisite statutory and regulatory approvals
Revenue from Operations
Standalone : ₹ 1,031 Cr, up by 4%
Consolidated : ₹ 2,897 Cr, up by 6%
Net Profit for the Company (Continuing & Discontinued Operations)
Standalone : ₹ 254 Cr, down by 1%
Consolidated : ₹ 313 Cr, up by 19%
Borrowing and Cash Position
In Standalone books net borrowings is Cash Positive
In Consolidated books net borrowings stood at ₹ 1,871 Cr, Cash and Cash equivalent ₹ 4,463 Cr
4
Our Transformation
y r t s i
m e h C c i s a B
s l a c i m e h C y t l a i c e p S
s s e n i s u B r e m u s n o C
r e z i l i t r e F
y r t s i
m e h C c i s a B
s l a c i m e h C y t l a i c e p S
2016 From 4 businesses….
2019 and beyond…. …To 2 focused science driven chemistry businesses
Key levers to deliver on our transformation
Value-added specialty portfolio
High stakeholder engagement
Science-led differentiation
Sustainability
Operational Excellence
Customer Centricity
6
An Innovative, Science-led sustainable Chemistry company
TATA CHEMICALS Mission : Serving Society through Science
Vision : Will be a leading sustainable Chemistry Solutions Company serving customers based on innovative, science-led differentiated products and solutions
Basic Chemistry
Specialty Chemistry
Soda Ash
Sodium Bicarbonate
Salt Manufacturing
Agro Sciences
Nutritional Sciences
Material Sciences
Energy Sciences
Technology (R&D) , Digitization, Sustainability
Unified Approach, Underpinned by Science and Rooted in R&D
VALUES : SPICE (Safety, Passion, Integrity, Care, Excellence)
7
7
A strong basis in Chemistry
Basic Chemistry
Specialty Chemistry
Agro Sciences
Nutritional Sciences
Material Sciences
Energy Sciences
World’s 3rd largest producer of Soda Ash
Supplier of Choice to Global Brands
Reach of 80% of India’s districts
World's 6th largest producer of Sodium Bicarbonate
~13.5 Million farmer connects
India’s 1st and only Nutritional Sciences business (FOS /GOS)
Salt Manufacturing crossed 1Mn-mtpa in 2019
Green patented technology for manufacturing Highly Dispersible Silica (HDS) for Tyres
Strong R&D capabilities including nanotechnology (nZnO)
Become a leader in Energy Chemistry in India with a target of 25% market share in Lithium ion battery
8
Target Portfolio structure Strengthening the core
Creating categories for future
Basic Chemistry
Specialty Chemistry
Soda Ash
Chlor Caustic
Bromine
Agro Sciences
• Crop protection
solutions
• PGNs • Organic manure • Seeds
Nutritional Sciences*
• FOS/GOS • Animal/Human Nutrition • Salt Manufacturing • Sodium Bicarbonate • Aeroponics/Natural
Extracts
Material Sciences
• HDS • Nano Zinc Oxide • Rubber Additives
Energy Sciences
• Lithium
solutions: • Cells, Actives, • Recycling
• Fuel Cells
Revenues – FY25 (E)
Revenues – FY19
Specialty Chemistry 30%
Basic Chemistry 70%
Basic Chemistry, 49%
Specialty Chemistry, 51%
*Includes Salt Mfg. and BiCarb (India)
9
Our Strategy going forward…
Maintain Global Leadership in Soda Ash and scale further
Launch of value added products like Speckle grade Soda Ash,
Focus on debottlenecking and capacity expansion
Digitalisation and Customer Value Creation
Basic Chemistry • Asia’s largest chemical
complex
• Access to one of the
world’s largest reserves of Trona ore
• The UK's only & Africa’s largest manufacturer of soda ash
Scale existing Agro Sciences portfolio & build capabilities to offer next-gen Agri services
Specialty Chemistry R&D capabilities Science led differentiation Customer centricity
• •
•
Expand Nutraceuticals portfolio into gut health for human and animal nutrition
Focus on launching value added branded products like pharma grade bicarb
Explore opportunities in HDS adjacencies
Focus on Operational Excellence and Cost Competitiveness
Build capabilities in new-age energy materials for Li-ion chemistry
*Blended ROCE for individual businesses
10
₹1,600 Cr investment committed. Target ROCE of 18-20%
₹2,000 Cr investment committed. Target ROCE* of 18-20%
Q1 June 2019 Financial Updates
11
Financial Updates
Standalone (₹ Cr)
1,031
989
26%
255
26%
267
26%
256
25%
254
Q1 June 18
Q1 June 19
Q1 June 18
Q1 June 19
Q1 June 18
Q1 June 19
Revenue up by 4%
EBITDA up by 4%
PAT down by 1%
Consolidated (₹ Cr)
2,897
2,744
18%
491
20%
592
10%
262
11%
313
Q1 June 18
Q1 June 19
Q1 June 18
Q1 June 19
Q1 June 18
Q1 June 19
Revenues up by 6%
EBITDA up by 21%
PAT* up by 19%
Note: PAT includes Continued and Discontinued Operations, after Share in JV & associates & before NCI
12
Segment Revenues and Results
* s e u n e v e R
s t l u s e R
Consolidated *Excludes Inter Segment Revenue of ₹ 181 Cr (PY ₹ 201 Cr) & Unallocated Revenue of ₹ 4 Cr (PY ₹ 5 Cr)
Standalone *Excludes Inter Segment Revenue of ₹ 179 Cr (PY ₹ 198 Cr) & Unallocated Revenue of NIL (PY ₹ 3 Cr)
Q1 June 2018 (₹ Cr)
Q1 June 2019 (₹ Cr)
Q1 June 2018 (₹ Cr)
Q1 June 2019 (₹ Cr)
582
634
₹ 2,744 Cr
438
1,920
₹ 2,897 Cr
495
1,946
11
438
₹ 989 Cr
734
11
495
₹ 1,031 Cr
704
67
76
(5)
82
(5)
72
82
₹ 425 Cr
275
72
₹ 466 Cr
₹ 281 Cr
₹ 272 Cr
318
203
204
Basic Chemistry Products
Consumer Products
Specialty Products
13
Borrowings Position as on June 2019 Standalone (₹ Cr)
708
1
721
14
Gross Debt Mar19
Net Change
Revaluation
Gross Debt Jun19
Consolidated (₹ Cr)
3,318
Cash & Cash Equivalents
(2,597)
Net Cash
236
45
6,143
6,334
4,463
Gross Debt Mar'19
Net Change
Revaluation
Gross Debt Jun'19
1,871
Net Debt
Cash & Cash Equivalents
•
•
•
•
In Standalone books, the Company is net cash positive
to
Also scheduled repay approximately ₹ 670 Cr during H2 of FY20.
Paid dividend during the quarter
International entities, continues to focus on generating cash.
14
Segment: Basic Chemistry Products
• TCL India: Revenue at ₹704 Cr (down by 4%, vs PY ₹734 Cr), margins on the
Soda ash continues to improve over PY, leading to Segment results at ₹204 Cr
(PY ₹203 Cr), despite lower production volumes by 10kts.
• TCNA: Revenue at ₹845 Cr (up by 10%, vs PY ₹765 Cr), due to improved sales
volumes and better sales realization. EBITDA was at ₹189 Cr (up 43% vs PY
₹132 Cr).
• TCE Group: Revenue at ₹307 Cr (down by 11%, vs PY ₹344 Cr), due to lower
sales & trading volumes. EBITDA was at ₹15 Cr (down by 52% vs PY ₹31 Cr) on
the higher raw material and energy cost.
• TCML: Revenue at ₹123 Cr (up by ₹30 Cr, vs PY ₹93 Cr), due to higher sales
volumes and better sales realization. EBITDA was at ₹20 Cr (up ₹34 Cr vs PY
Loss of ₹ 14 Cr) on the back of improved efficiencies, lower input cost, lower
fixed cost and PY higher cost related to shutdown, siltation etc. due to heavy
rains.
Segment Revenues & Results (₹ Cr) Overall Segment Revenue at ₹ 1,946 Cr, up by 1 % │Segment results at ₹ 318 Cr, up by 16 %
1,920
1,946
275
318
Q1 June 18 Segment Revenue
Q1 June 19
Segment Results
Quarterly updates
• Received environmental approval for expansion of Soda Ash plant in Mithapur plant for ₹ 1,043 Cr.
• Target to take Salt manufacturing capacity to 1.1
MMT, from current capacity 1.0 MMT
15
Segment: Specialty Products
• Nutritional Solutions and Other Specialty products: Revenue from operations
stood at ₹11 Cr. We have completed the committed investments and have
Segment Revenues & Results (₹ Cr) Overall Segment Revenue at ₹ 634 Cr up by 9 % │Segment Results at ₹ 76 Cr, up by 13 %
finished commissioning of our new facility at Nellore and trail production will
582
634
•
•
•
commence soon.
Also, we are currently carrying out trial production at our Allied Silica facility
in Cuddalore. Bases sample quantity supplied (food grade & rubber grade) to
select customers, there is a good response and acceptance in the market.
Rallis India Limited: Revenue at ₹623 Cr (up by 9% vs PY ₹571 Cr) where
67
76
Q1 June 18
Q1 June 19
Segment Revenue
Segment Results
largely driven by International business (e.g. Brazil), with strong demand for
Quarterly updates
herbicides and Seed business (i.e. bajra, maize & cotton). Domestic Crop
Protection business remained soft due to challenging market conditions.
Rallis continues to focus towards strong, healthy and sustainable products
•
In last stage to setup state of art manufacturing facilities for Nutritional solutions and Silica business
• Rallis completed
first stage expansion of
Metribuzin in June 2019
with target to expand foot prints in South East Asian and African countries.
• Rallis continues to invest in strengthening brands
& development of new solutions
16
Updates: Our New sites
Nellore Site
Cuddalore Site
Scheduled to start operations by H2 FY20
Trial production in line with expectation
Both projects are on schedule and is built as per TCLs safety standards
17
Segment: Consumer Products Business
• Salt Business: Tata Salt continues to maintain its leadership position in the
branded salt segment with market share of 25.2% in the overall edible salt
market and ~65% market share in branded Salt market in India.
• Salt portfolio continues its strong foot hold in the market with higher sales
volumes (up 5% at 298 kts vs PY 284 kts). Margins were marginally impacted
due to higher marketing cost (up Rs 3 Cr) and costs related to demerger of
consumer business (Rs 8 Cr).
• Pulses and Spices: Pulses and Spices portfolio continues to perform well with
revenue growth of ~45% (vs PY), despite of strong competition from regional
brands and unorganized market.
• New Business: Products launched last year i.e. Tata Dx detergent and Tata
Dalicious Snacks are getting good traction in the market place. We plan to scale
up these products into different markets / cities in the near future.
Segment Revenues & Results (₹ Cr) Overall Segment revenue at ₹ 495 Cr up by 13 % │Segment Results at ₹ 72 Cr, down by 12 %
438
82
495
72
Q1 June 18
Q1 June 19
Segment Revenue
Segment Results
Quarterly updates • Golden hatrick at Flame Awards Asia 2019, won 3 Golds for activations at Pandharpur and Kumbh Mela
• Scale up of Tata Sampann coverage through
modern mind stores in major cities
• Management of Plastics generated in finished
goods packaging
18
Financial updates: Operating Entities
Statement of Profit and Loss (Continuing Operations) for the quarter ended June 2019
Units
₹ Cr
TCL India
US
UK
Africa
Rallis
Consolidated*
PY
CY
PY
CY
PY
CY
PY
CY
PY
CY
PY
CY
Revenue
989
1,031
765
845
344
307
93
123
571
623
2,744
2,897
EBITDA
255
267
132
189
31
15
(14)
20
PBT
PAT
368
359
264
254
52
21
91
47
5
5
(15)
(25)
(15)
(25)
9
9
81
76
55
95
87
68
491
592
373
412
214
209
* Consolidated financials is after adjusting SPV & Consolidation adjustments • PBT is after exceptional items & Share in JV and PAT (after NCI) for Equity Shareholders
19
Quantities: Major Products Soda Ash (in Kts)
Sodium Bicarbonate (in Kts)
536
55 82 169
Jun-18
541
63 68 163
Jun-19
523
53 77 203
Jun-18
549
79 76 193
Jun-19
26
25
24
26
25
29
24
27
Jun-18
Jun-19
Jun-18
Jun-19
Sales
Production
Sales
Production
TCL India
TCE
TCML
TCNA
TCL India
TCE
Salt Portfolio (in Kts)
284
298
304
273
Jun-18
Jun-19
Jun-18
Jun-19
Sales
Production
20
Additional Information Revenues (₹ Cr) & PAT (%)
10%
2,744
14%
2,961
11%
2,832
13%
2,759
10%
2,897
Earnings Price Per Share (in ₹)
12.6
12.2
8.4
9.7
8.5
Q1 FY19
Q2 FY19
Q3 FY19
Q4 FY19
Q1 FY20
Q1 FY19
Q2 FY19
Q3 FY19
Q4 FY19
Q1 FY20
Shareholding Pattern
Exchange rate (Average)
Promoter & Promoter Group, 30.6%
Non institution , 21.0%
Institutions, 48.4%
91.14
91.25
91.72
91.74
89.34
67.06
68.54
69.70
69.90
69.56
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
USD
GBP
21
22