Rossari Biotech Limited has informed the Exchange about Investor Presentation
January 21, 2024
DCS-CRD BSE Limited First Floor, New Trade Wing Rotunda Building, Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai 400001 Fax No.2272 3121/2037/2039
Listing Compliance National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor, Plot No. C/1, ‘G’ Block, Bandra- Kurla Complex Bandra East, Mumbai 400 051 Fax No.2659 8237/8238
Stock Code: 543213
Stock Code: ROSSARI
Dear Sir/Madam,
Subject.: Q3 FY24 Earnings Presentation
Please find enclosed a copy of the Earnings Presentation for the quarter ended December 31, 2023.
The same may please be taken on record and suitably disseminated to all concerned.
Thanking you,
Yours Sincerely, For Rossari Biotech Limited PARUL GUPTA _______________________ Parul Gupta Company Secretary & Compliance Officer Membership No.: A38895
Digitally signed by PARUL GUPTA Date: 2024.01.21 12:10:47 +05'30'
Encl.: as above
Rossari Biotech Limited Q3 & 9M FY24 Results Presentation
January 20, 2024
Disclaimer
Certain statements and opinions with respect to the anticipated future performance of Rossari Biotech Ltd
(Rossari) in the presentation (“forward-looking statements”), which reflect various assumptions concerning
the strategies, objectives and anticipated results may or may not prove to be correct. Such forward-looking
statements involve a number of risks, uncertainties and assumptions which could cause actual results or
events to differ materially from those expressed or implied by the forward-looking statements. These
include, among other factors, changes in economic, political, regulatory, business or other market
conditions. Such forward-looking statements only speak as at the date the presentation is provided to the
recipient and Rossari is not under any obligation to update or revise such forward-looking statements to
reflect new events or circumstances. No representation or warranty (whether express or implied) is given in
respect of any information in this presentation or that this presentation is suitable for the recipient’s
purposes. The delivery of this presentation does not imply that the information herein is correct as at any
time subsequent to the date hereof and Rossari has no obligation whatsoever to update any of the
information or the conclusions contained herein or to correct any inaccuracies which may become apparent
subsequent to the date hereof.
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Q3 FY24 Results Overview
3
Q3 FY24 – Key Financial Highlights
Revenue from Operations (Rs. In cr)
EBITDA (Rs. In cr)
PAT (Rs. In cr)
Consistent quarterly Revenue
Highest quarterly EBITDA
Highest quarterly PAT
463.8
483.5
389.3
63.7
63.6
54.2
34.4
32.9
25.7
y l r e t r a u Q g n o r t S
e c n a m r o f r e P
Q3 FY24
Q2 FY24
Q3 FY23
Q3 FY24
Q2 FY24
Q3 FY23
Q3 FY24
Q2 FY24
Q3 FY23
Shift % (Y-o-Y)
Shift % (Q-o-Q)
19.1%
-4.1%
17.5%
0.2%
33.9%
4.6%
Margins (%)
13.7%
13.2%
13.9%
7.4%
6.8%
6.6%
Note: 1) All figures, unless mentioned otherwise, are on a consolidated basis.
4
Financial Performance Snapshot
Revenue (Rs. crore)
EBITDA (Rs. crore)
PAT (Rs. crore)
1,483
1,656
1,358
124
709
183
223
185
98
107
97
80
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
•
Consistent growth trajectory over the past three years, driven by both organic and inorganic growth strategies
ROE
ROCE
Net Debt to Equity
23%
16%
12%
13%
28%
24%
21%
21%
FY21
FY22
FY23
9M FY24
FY21
FY22
FY23
9M FY24
0.04
(0.10)
(0.08)
(0.22) FY21
FY22
FY23
9M FY24
• While near-term investments and strategic initiatives have led to a moderation in ROCE and ROE, the balance sheet position remains strong. The
Company is confident of reporting improved return metrics in the future as these investments start yielding results
5
Management Message
Commenting on the performance, in a joint statement, Mr. Edward Menezes, Promoter & Executive Chairman, and Mr. Sunil Chari, Promoter & Managing Director, said
“We are pleased to report yet another strong quarter, with revenues and profits showing a significant Y-o-Y increase of 19% and 34%, respectively. This performance is primarily attributed to the healthy growth witnessed in our Home, Personal Care & Performance Chemicals (HPPC) division. The division achieved a robust improvement of 31%, underpinning the efforts put in by our team to drive growth in a challenging operating environment. Despite a subdued performance from the Textile Specialty Chemicals (TSC) due to the industry headwinds and Animal Health and Nutrition (AHN) due to seasonal softness, we are optimistic about recovery in these divisions in the coming quarters.
This quarter, while revenues were marginally lower Q-o-Q, we were able to surpass our last quarter’s PAT, setting a new record. On a nine month basis also, our revenues have grown by 9% while PAT growth has been at a high of 23% Vs previous year.
Our growth strategy remains focused on expanding across all business divisions. Having historically seeded new verticals within our core chemistries, our aim in the coming years is to significantly scale up these ventures. We are particularly focused on areas like specialty surfactants, phenoxy series, institutional cleaning, performance chemicals etc. Our plan remains to tap into global markets with our existing and new products, spread into newer geographies and increase our wallet share with existing partners.
The emphasis on R&D remains a pivotal aspect of the Company’s growth and innovation strategy. Rossari's position as a premier solutions provider is fortified by its R&D capabilities, which enable us to meet evolving market needs and solidify our role as a sought-after partner for bespoke solutions in the specialty chemicals sector. We are dedicated to leveraging our R&D expertise to drive future growth, create value, and strengthen our reputation as a leading provider of intelligent and sustainable solutions across various industries.
In the face of global challenges in the chemical industry, India is set to emerge as a major hub for chemical manufacturing. With our robust R&D framework, strong financial foundation, expanding manufacturing capacities, and diverse product portfolio, we see significant growth opportunities in both domestic and international markets for all our business verticals. Over the next few years, we are confident that this strategic positioning will lead to strong YoY growth, enabling us to create substantial value for all our stakeholders.”
6
Key Developments
Update on Capital Expansion Plan
In a strategic move towards future readiness, in the last quarter we had announced an expansion of our facility at Dahej, to foray into products related to HPPC in the specialty chemical space, as well as for producing ingredients for our subsidiary companies. Also, to cater to the growing demand in agro chemicals, home and personal care, oil & gas and the pharma sector, we had further announced expansion of the Ethoxylation capacity at the Dahej facility of Unitop Chemicals Private Limited.
Work on both these projects has started and is going as per schedule. Commissioning is expected to happen, in a
phased manner, by Q3 FY25.
7
Abridged P&L Statement - Consolidated
Particulars (Rs. crore) Revenues from Operations
Total Expenditure
• COGS
• Employee benefits expense
• Other expenses
EBITDA
EBITDA Margin (%)
Other Income
Finance Costs
Depreciation and Amortization
PBT
Share of profit /(loss) of associate
Tax expense
PAT
PAT Margin (%)
EPS Diluted (Rs.)
Q3 FY24 463.8
Q3 FY23 389.3
Y-o-Y Shift (%) 19.1%
9M FY24 1,357.8
9M FY23 1,249.4
Y-o-Y Shift (%) 8.7%
323.0
26.0
51.1
63.7
13.7%
3.5
4.3
15.1
47.8
0.0
13.4
34.4
7.4%
6.2
272.4
24.2
38.5
54.2
13.9%
1.1
4.6
16.0
34.7
0.0
9.0
25.7
6.6%
4.6
18.6%
7.4%
32.7%
17.5%
-20 bps
218.2%
-6.5%
-5.6%
37.8%
0.0%
48.9%
33.9%
80 bps
955.2
78.1
139.5
185.0
13.6%
7.1
15.7
44.3
132.1
(0.0)
35.5
96.6
7.1%
885.0
71.8
124.2
168.4
13.5%
2.7
18.0
46.9
107.0
0.8
28.7
78.3
6.3%
17.5
14.1
7.9%
8.8%
12.3%
9.8%
10 bps
163.0%
-12.8%
-5.5%
23.5%
-100.0%
23.7%
23.4%
80 bps
Note: 1) All figures, unless mentioned otherwise, are on a consolidated basis.
8
Q3 FY24 - Segment-wise Details
Segment-wise Revenue Break-up (Rs. crore)
Q3 FY24
Q2 FY24
Q3 FY23
355.4
367.1
271.2
83.4
95.9
89.5
25.0
20.5
28.6
Shift (Y-o-Y) %
Shift (Q-o-Q) %
HPPC
31.0%
-3.2%
TSC
-6.8%
-13.0%
AHN
-12.6%
22.0%
Note: 1) All figures, unless mentioned otherwise, are on a consolidated basis
2) Home, Personal Care and Performance Chemicals (HPPC); Textile Specialty Chemicals (TSC); Animal Health and Nutrition (AHN)
9
Q3 FY24 - Financial and Operational Discussions
Net Revenue
Q3 FY24 Revenues from operations increased by 19% YoY to Rs. 463.8 crore from Rs. 389.3 crore
The Company successfully registered significant YoY topline growth during the quarter amidst challenging external conditions
o Overall growth was primarily assisted by robust performance of the HPPC division, underpinned by significant contributions from specialty surfactants, phenoxy series, institutional cleaning, performance chemicals. Additionally, the AHN segment made a strong recovery of 22% from Q2 FY24
o TSC division faced a slowdown this quarter, largely due to soft demand in the underlying Textile industry. However, we are optimistic on
demand coming back in both domestic and export markets in the next fiscal, leading to a positive turnaround for this vertical
Revenue contribution from the HPPC division stood at 77%, followed by TSC and AHN at 18% and 5% respectively
EBITDA
Q3 FY24 EBITDA at a high of Rs. 63.7 crore, up 18% Y-o-Y; with EBITDA Margins at 14%
Stable raw material situation combined with growth in revenues supported operating profits
The Company anticipates reporting sustained profitability in the upcoming quarters, backed by improving capacity utilization levels
PAT
Q3 FY24 PAT improved by 34% to a high of Rs. 34.4 crore on Y-o-Y basis
Note:
1) All figures, unless mentioned otherwise, are on a consolidated basis.
10
Company Overview
11
Rossari – At a Glance
Technocrat promoters with
45+
cumulative years of experience in the specialty chemicals industry
8*
354,100*
4*
Manufacturing facilities
MTPA
Capacity Installed
R&D Facilities
34%
Revenue CAGR %
(FY19-23)
24%
PAT CAGR %
(FY19-23)
Rossari – A Specialty-Chemical manufacturer providing intelligent and sustainable chemical solutions for customers across industries
* Including production capacities and R&D facilities of Unitop Chemicals & Tristar Intermediates
12
Business Overview
One of the leading specialty chemicals manufacturer delivering differentiated & tailor-made solutions across Home, Personal Care and Performance Chemicals (HPPC), Textile Specialty Chemicals (TSC) and Animal Health and Nutrition (AHN) businesses
HPPC
TSC
AHN
One of the fastest-growing
specialty chemicals manufacturer in the HPPC sector in India
Tailor-made range of solutions
across industries - FMCG, Home & Personal Care, Cosmetics, Pulp & Paper, Ceramics, Agro, Oil and Gas
Key product-groups: Soaps &
Detergents, Ink, Paints & Coatings, Ceramic & Tiles, Pulp & Paper, Cements, Water treatment chemicals , Aroma Chemicals, Agro Chemicals
Largest textile specialty chemical
Manufactures a range of over 100
manufacturer in India
Provides specialty chemical
solutions across entire value-chain of the textile industry
Solution applications: Thread, Yarn and Man-made Fibre production, digital printing, fabric processing, dyeing auxiliaries and garment finishing range
products from poultry feed supplements and additives, pet grooming and pet treats
Wide range of feed additives : Vitamin Premix, Acidifiers, Disinfectants, Enzymes, Trace Minerals and liquid Essential oils
Pet-grooming and pet-care
products
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Strengthening Market Presence
Growing client base of over 1,000 customers both India and International
Diversifying customer base to lower concentration risk
Increasingly tapping new segments across domestic and international markets
Building direct touch-points with several clients
Widening distribution network to drive reach
Company’s focus towards demand generation
Distributors’ focus towards demand servicing
Strong and long-standing relationships with several clients and distributors spanning 15+ years
14
Robust Manufacturing Capabilities
Manufacturing Facility at Silvassa
Located on 8.6 acres of land Fungible manufacturing capabilities for powders, granules and liquids Facility has a comprehensive range of testing & packaging capabilities Effluent treatment facility, with 2,500 MT bulk storage capacity for acid, alkali,
base oils and surfactants
Manufacturing Facility at Dahej
Enjoys proximity to multi-cargo port of Dahej – providing cost & logistical
advantage
State-of-the-art facility, well-equipped with advanced technologies Designed on lean manufacturing principles Driving cost efficiencies and economies of scale
Dahej Sarigam
Silvassa
Unitop’s Manufacturing Facility at Dahej
Located on 10 acres of land Superior facility for the Agrochemicals and Oil & Gas segment Fully equipped R&D
centre dedicated
to product
development, quality and process standardisation
Adequate scope for further capacity expansion
Tristar’s Manufacturing Facility at Sarigam
3 manufacturing units located in chemical zone at GIDC,
Sarigam
Leading manufacturer of preservatives, aroma chemicals,
and home and personal care additives Access to High-tech distillation facilities
Asset-light approach enables healthy return ratios
15
Strategic Growth Levers
Augmenting product portfolio with enhanced emphasis on green solutions
Identifying and developing new niches in product offerings
by leveraging R&D capabilities
Strong upcoming pipeline of new product launches centered on customer requirements, higher product excellence and process sustainability
Increase wallet share across existing customer base while also tapping new customer segments
Capitalize on cross-selling opportunities & address sourcing
requirements of MNC customers
Consolidate position as a preferred supplier for customers
Innovation-backed solutions to enrich customer experience
Strengthen innovation platform to deliver
differentiated offerings and provide unique product value
Combining consumer insights and strong market research to provide solutions with shorter lead times
Seeding new business lines
Evaluating opportunities to introduce new business lines based on existing business capabilities and technical know-how
New businesses to drive the next leg of growth
Inorganic growth through strategic value- accretive acquisitions
Expanding presence into newer categories of
specialty chemical segments and personal care, strengthen market reach and broaden product portfolio
Driving economies of scale and market
consolidation
Maintain financial discipline Performance-focused and high growth-driven while maintaining strong financial discipline Prudent management of cash and financial
resources at all times
16
Inorganic Initiatives
Executed two synergistic acquisitions and one strategic investment in FY 2022 complementing the ethos of Rossari’s business model
SF
Unitop Chemicals
Unitop solutions sold across 25+ countries
Tristar Intermediates Prominent player in the field of Preservatives, Aroma Chemicals, and Home & Personal Care Additives
Romakk Chemicals
Primarily engaged in the business of manufacturing silicone oils
Presence in high-potential Specialty chemical segments, such as Agrochemicals and Oil & Gas segments
Operates three manufacturing sites in India with a total capacity of 86,000 MTPA
Professionally-managed, well-experienced and competent talent pool to build progressive future
Key Financials: FY2023 revenues stood at Rs. 554 crore, with EBITDA at Rs. 81 crore and PAT at 55 crore; Zero Net debt
Expanded product portfolio in Personal Care segment to facilitate cross-selling opportunities
Strategic investment to strengthen Rossari’s presence in Home and Personal Care segment
Preferred supplier to various reputed companies and MNCs across India, Europe, USA and Far East countries
High-tech distillation manufacturing facilities at Sarigam, Gujarat with a total capacity of 15,000 MTPA
In FY2023, revenues stood at Rs. 209 crore, with EBITDA at Rs. 18 crore and PAT at Rs. 10 crore
Exciting portfolio of products focused on the Home and Personal care industry
17
Key Synergies from Acquisitions
Strategic & value-accretive acquisitions accelerate growth and drive economies of scale
Augmented presence in Specialty Chemical, Personal Care and Agrochemical segments
Expansion of addressable domestic and export markets and end-user applications
Extension of manufacturing capabilities
Pooling together of related technologies provides R&D edge
Inorganic investments within operational and financial discipline criteria outlined by Board
18
Focus on Green & Sustainable Chemical Solutions
Specialists in producing environmentally- benign substitutes that replace legacy and harmful products
Focus on green, sustainable and cost neutral products
Minimizing carbon footprint of manufacturing processes while maximizing customer benefits
Aggressively embracing sustainability in business operations to accelerate growth
19
Annexure
20
Conference Call Details
Q3 FY2024 Earnings Conference Call
Time
04:00 p.m. IST on Tuesday, January 23, 2024
To enable participants to connect to the conference call without having to wait for an operator, please register at the below mentioned link:
Pre-registration
Primary dial-in number
+ 91 22 6280 1141 / 7115 8042
21
About Us
across
providing
intelligent
customers India,
Rossari Biotech Limited (Rossari) (BSE: 543213, NSE: ROSSARI), is a Specialty-Chemicals manufacturer and sustainable industries. for solutions the Company operates Headquartered at Mumbai, strategically located manufacturing facilities at Silvassa and Dahej. The Company offers tailor-made solutions for Home, Personal Care and Performance chemicals (HPPC), Textile specialty chemicals and Animal Health and Nutrition (AHN). With differentiated product offerings, Rossari caters to an array of applications across FMCG, Industrial Cleaning, Personal Care, Textile Specialty Home care, Chemicals, Performance Chemicals, the Animal Health and Nutrition and Pet Care businesses. The Company has an extensive and a dedicated network of distributors spread all over India.
For further information, please contact:
Ketan Sablok
Rossari Biotech
Tel: +91 22 6123 3800
Email: ketan.sablok@rossari.com
Anoop Poojari / Mitesh Jain
CDR India
Tel: +91 98330 90434 / 96194 44691
Email: anoop@cdr-india.com / mitesh@cdr-india.com
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