Supreme Petrochem Limited has informed the Exchange about Investor Presentation
,o SUPREME PETROCHEM LTD
Regd. Office : Solitaire Corporate Park, Building No. 11,5th Floor, 167' Guru Hargovindji Marg, Andheri-Ghatkopar Link Road, Chakala, Andheri (East), Mumbai-4o0 093. INDIA @ :91-22-6709'1900 Fax -022-4OOS 5681 ' CIN:123200MH1989PLC054633 Website : www.supremepetrochem.com r Email : corporate@spl'co.in
Ref : C FA/CS/86/AGM-3 4 12023-2024
January 18,2024
BSE Limited Phiroze Jeejeebhoy Towers, 1st Floor, Dalal Street, Mumbai - 400 001 Script Code - 500405
Dear Sir/Madam,
National Stock Exchange of lndia Ltd Exchange Plaza, Bandra Kurla Complex Bandra East, Mumbai- 400 051 Scrip Code - SPLPETRO
Sub: Submission of "Earninos Presentation (Q3/9M-FY24}" under Re9ulation 30 of
SEBI (LODRI. Resulation. 2015
With reference to the captioned subject matter, please find herewith attached an "Earnings presentation (Q3/9M-FY24)" prepared by the Company for the general awareness of its shareholders comprising of Company's overview, key strengths, future growth strategies, exhibitions, CSR initiatives, sustainability initiatives and Financial and Business highlights etc. This presentation will also be available on the Company's website.
Kindly take above document on record.
Thanking you
Yours faithfully, FoT SUPREME PETROCHEM LTD
(,
D. N. MISHRA COMPANY SECRETARY
tso 14001.2015
BUREAU VERITAS Cerlilication
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INDIAN
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Certificats No. lNAMCST 249c2F228
S U P R E M E P E T R O C H E M L I M I T E D
E A R N I N G S P R E S E N T A T I O N
Q 3 / 9 M - F Y 2 4
Snapshot
Strong Promoter Lineage: Taparias (Supreme Industries), Rajan Raheja (Exide, Prism Johnson, Sonata Software)
Long-term Credit rating AA-/Stable from CRISIL and AA-/ Outlook Stable from IND-Ra and short-term rating A1+ from both
Market Leader in Polystyrene and Expanded Polystyrene with market share exceeding 50%
India's first truly international scale state-of-art Styrenics complex at Amdoshi
Debt Free Company
FY23 ROE: 27%; ROCE: 36%
India's first and only plant of Extruded Polystyrene Insulation Foam Board (XPS).
3 Year CAGR of Total Volume Sales: 11.75%
Globally reputed supplier to customers in over 100 countries worldwide owing to its internationally acclaimed quality and safety record
Zero liquid discharge at both plants
Supreme Petrochem Limited
2
Company has entered into a Shareholder Agreement and Share Purchase Agreement to acquire 26% of a JV with Tata Power Renewable Energy Ltd for supply of 12.5MW Solar Power to the Company’s plant at Amdoshi, Raigad, Maharashtra
COMPANY OVERVIEW
Company Overview
•
•
SPL was formed as joint venture between the Supreme Industries Ltd., India's largest plastics processor and the well diversified Rajan Raheja Group.
Supreme Petrochem Limited (SPL) started commercial operations in October 1995 with the business to manufacture Polystyrene (PS).
• The company is the undisputed leader in Polystyrene in India, with a market share
exceeding 50%.
•
SPL is the largest exporter of PS from India, with customers in more than 100 countries around the globe.
• To widen its Styrenics spectrum, SPL forayed into Expanded Polystyrene (EPS) in 2006 at
Manali, Chennai and since then has become the business leader.
•
In 2009, SPL started India’s first and only integrated plant of Extruded Polystyrene Insulation foam boards to promote Green Building movement in India and to combat Co2 emissions
• The product range of the company includes General Purpose Polystyrene, High Impact Polystyrene, Expandable Polystyrene, Masterbatches and Compounds, and Extruded Polystyrene (INSUboard).
•
From being a large commodity player, SPL is now increasingly operating as a supplier of value added products.
Revenue (INR Mn) & EBITDA Margins (%)
50,323
52,872
31,852
21.00%
17.97%
12.45%
2 8.0 0 %
2 1.0 0 %
1 4.0 0 %
7 .00 %
0 .00 %
36,905
7.90%
FY21
FY22
FY23
9M-FY24
Supreme Petrochem Limited Supreme Petrochem Limited
4
Key Strengths
Leading Manufacturers of Polystyrene & Expandable Polystyrene in India with over 25 years of experience
First mover advantage in XPS
Comprehensive styrenics product portfolio enabling to serve diverse end-use applications.
Strong Balance Sheet with zero debt on the books
Well placed to benefit from the growth in the domestic consumer durables, automobiles, Government emphasis on Universal Education and excellent customer relations
Technology for the fully automated, DCS controlled plant sourced from world leader Huntsman thru ABB Lummus Crest
Ongoing capex of over INR ₹ 1,200 Crs to cater to additional demand without any external borrowings
Mass ABS project under implementation in technical licensing arrangement with Versalis which shall have low carbon footprint
Supreme Petrochem Limited
5
Future Growth Strategies
1
2
3
Capacity Expansion
• •
Polystyrene expansion and first phase of EPS expansion commenced commercial production from January 2023 The company is undertaking capex for enhancing Compounds and Masterbatches, EPS and XPS capacities at its Amdoshi Plant to cater to the additional demand.
New Product Launches
•
The company has entered into an agreement for License and Basic Engineering Design with Versalis for Mass ABS for one line of 70,000 KTA. ABS is the favored engineering plastic when it comes to application in automotive parts.
• Negotiations are under way with M/s Versalis for the second line of Mass ABS.
Global Customers
• With PS & EPS (first phase) expansion completed and increased product availability, SPL increased its
exports.
Supreme Petrochem Limited
6
Exhibitions
Plastivision 2023 Mumbai
Plast Imagen 2023 Mexico
7
Supreme Petrochem Limited
7
CSR Initiatives
E-Classroom Facility
Providing Natural Drinking Water
8
Anganwadi Centre
Public Toilet
Automated ELISA Machine & Refrigerated Centrifuge donated by SPL to Jankalyan Raktakendra, Mahad
Supreme Petrochem Limited
8
Sustainability Initiatives
•
•
Sustainable and inclusive growth, well being of society & employees and effective corporate governance are part of ideology the company follows for creating long term value for its stakeholders.
Company has taken the following actions in this direction :-
ꟷ Installed zero effluent/liquid discharge system at both manufacturing locations -Amdoshi in Maharashtra & New Manali town in Tamil Nadu which not only reduce water intake for its processes but also ensures no liquid effluent gets out.
ꟷ Joined a SPV with Tata Power renewable energy Ltd. for setting up a solar power plant to generate 12.5 mw. Once operational in Q1 of 2024-25 it would meet 50% of the current energy requirement at its Amdoshi, Maharashtra plant. At Chennai EPS plant, 60% of energy for current year met from renewable sources.
ꟷ Collaborated with Indian Centre for Plastics in Environment (ICPE) to help create awareness about collection & responsible recycling of post consumer waste.
ꟷ Tied up with two NGOs to encourage organized collection of post consumer
EPS packaging waste and recycle thereof in MMR.
ꟷ Working with recyclers in Mumbai Metropolitan Region (MMR) to bring
unorganized recyclers into formal sector
Supreme Petrochem Limited
9
Sustainability Initiatives
• Mass ABS plant under
implementation employs
technology
•
specifically chosen inter- alia for its low carbon foot print. Extruded Polystyrene Insulation Foam Board (XPS) when used in a building results in energy savings and reduced carbon footprints due to its superior insulation properties.
• Using big sized (30 kl – 40 kl) tank lorries for movement of liquid styrene from port to its plant at Amdoshi plant and large trucks carrying a load of 25MT to 35MT per trip for movement of finished products for distances beyond 350Km help reducing carbon emissions. Company complies with all directions of CPCB including extended producer responsibility (EPR).
•
Supreme Petrochem Limited
10
FINANCIAL OVERVIEW
Q3/9M-FY24 Financial Highlights
Q3-FY24 Financial Highlights
9M-FY24 Financial Highlights
INR 11,877 Mn Operating Income
INR 949 Mn Operating EBITDA
7.99% Operating EBITDA Margins
INR 36,905 Mn Operating Income
INR 2,915 Mn Operating EBITDA
7.90% Operating EBITDA Margins
INR 677 Mn Net Profit
5.70% PAT Margins
INR 3.60/Share Diluted EPS
INR 2,150 Mn Net Profit
5.83% PAT Margins
INR 11.43/Share Diluted EPS
SPL has INR 793 Cr of cash & cash equivalents, bank deposits and investments in various Mutual Funds schemes.
The company continues to remain debt free and all capital expenditure is being met from internal cash accruals and reserves.
Supreme Petrochem Limited
12
Q3/9M-FY24 Business Highlights
• Styrene Monomer prices were range bound during the quarter.
• The Company’s sale of manufactured products during the quarter were flat on YoY basis with marginal
increase of 1.7%.
• The Company’s sale of manufactured products including exports increased by 12% on YoY basis for the
9M period April – December FY24.
• Chennai EPS plant was shut due to cyclone causing heavy rains and floods for 15 days and restarted operations from December 20, 2023. Certain items of fixed assets and some parts of inventory of raw materials, finished goods, and stores & spares got damaged. The insurance company has appointed surveyors and this is in progress.
• Missile attack by Yemen’s Houthi rebels on commercial ships starting from late November is impacting
exports of Company’s products to USA, Europe including Turkey.
Supreme Petrochem Limited
13
Q3/9M-FY24 Operating Highlights
Operational Revenue (INR Mn)
Operational EBITDA (INR Mn)
Quantities Sold in MT
0.6%
11,804
11,877
(20.4)%
1.7%
1,192
949
69,469
70,623
Q3-FY23
Q3-FY24
Q3-FY23
Q3-FY24
Q3-FY23
Q3-FY24
Operational Revenue (INR Mn)
Operational EBITDA (INR Mn)
Quantities Sold in MT
(5.4)%
39,004
36,905
(35.2)%
4,499
2,04,273
12.1%
2,28,926
2,915
4 2 Y F - 3 Q
4 2 Y F - M 9
9M-FY23
9M-FY24
9M-FY23
9M-FY24
Supreme Petrochem Limited
9M-FY23
9M-FY24
14
Quarterly Financial Performance
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Depreciation and Amortization expenses
Finance costs
Other Income
PBT
Tax
PAT
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR)
Nominal Value of Share
Supreme Petrochem Limited
Q3-FY24
Q3-FY23
11,877
10,928
949
7.99%
151
30
156
924
247
677
11,804
10,612
1,192
Y-o-Y
0.6%
3.0%
(20.4)%
10.10%
(211)Bps
110
10
142
1,214
316
898
37.3%
NA
9.9%
(23.9)%
(21.8)%
(24.6)%
5.70%
7.61%
(191)Bps
(2)
675
3.60
2
(2)
896
4.78
2
0.0%
(24.7)%
(24.7)%
NA
Q2-FY24
12,777
11,714
1,063
8.32%
143
19
156
1,057
276
781
6.11%
(2)
779
4.15
2
Q-o-Q
(7.0)%
(6.7)%
(10.7)%
(33)Bps
5.6%
57.9%
0.0%
(12.6)%
(10.5)%
(13.3)%
(41)Bps
0.0%
(13.4)%
(13.3)%
NA
15
YTD Financial Performance
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Depreciation and amortisation expenses
Finance costs
Other Income
PBT
Tax
PAT
PATMargins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR)
Nominal Value of Share
Supreme Petrochem Limited
9M-FY24
9M-FY23
36,905
33,990
2,915
7.90%
435
55
491
2,916
766
2,150
5.83%
(5)
2,145
11.43
2
39,004
34,505
4,499
11.53%
331
28
380
4,520
1,132
3,388
8.69%
(5)
3,383
18.02
2
Y-o-Y
(5.4)%
(1.5)%
(35.2)%
(363)Bps
31.4%
96.4%
29.2%
(35.5)%
(32.3)%
(36.5)%
(286)Bps
0.0%
(36.6)%
(36.6)%
NA
16
Historical Income Statement
Particulars (INR Mn)
Revenue from Operations
Total Expenses
EBITDA
EBITDA Margins (%)
Depreciation and amortisation expenses
Finance costs
Other Income
PBT
Tax
PAT
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Diluted EPS (INR)
Nominal Value of Share
Supreme Petrochem Limited
FY21
31,852
25,162
6,690
21.00%
392
73
213
6,438
1,663
4,775
FY22
50,323
41,282
9,041
17.97%
419
48
305
8,878
2,245
6,633
14.99%
13.18%
(8)
4,767
50.63
10
(9)
6,624
35.27
2
FY23
52,872
46,290
6,582
12.45%
466
36
589
6,669
1,688
4,981
9.42%
(4)
4,977
26.49
2
9M-FY24
36,905
33,990
2,915
7.90%
435
55
491
2,916
766
2,150
5.83%
(5)
2,145
11.43
2
17
Historical Balance Sheet
Particulars (INR Mn)
EQUITY
Share Capital
Other Equity
LIABILITIES
NON-CURRENT LIABILITIES
Long term provision
Other non-current liabilities
Lease Liabilities
Deferred tax liability (net)
CURRENT LIABILITIES
Financial liabilities
(i) Trade Payables
(ii) Other Financial liabilities
(iii) Lease Liabilities
Other Current liabilities
Provisions
Curent Tax Liabilities (net)
TOTAL LIABILITIES
GRAND TOTAL - EQUITY AND LIABILITIES
Supreme Petrochem Limited
FY22
15,156
376
14,780
578
34
33
167
344
7,049
FY23
18,439
376
18,063
450
36
36
24
354
8,421
H1-FY24
Particulars (INR Mn)
18,593
NON-CURRENT ASSETS
376
18,217
1,091
43
37
638
373
Property, plant & equipment
Intangible Assets
Capital Work-in-progress
Right to use assets
Financial assets
(i) Loans
(ii) Other financial assets
Other non-current assets
CURRENT ASSETS
7,007
Inventories
Financial assets
5,259
7,820
6,099
(i) Investment in Liquid Scheme of MF
966
206
590
26
1
296
143
134
22
6
483
156
210
39
20
(ii) Trade Receivable
(iii) Cash and cash equivalents
(iv) Other bank balances
(v) Loans
(vi) Other financial assets
Current tax assets (net)
7,627
22,783
8,871
27,310
8,098
Other current assets
26,691
GRAND TOTAL - ASSETS
FY22
5,333
3,020
5
1,789
344
12
48
115
17,450
3,008
4,838
4,118
2,175
2,299
8
600
88
316
FY23
7,025
5,115
4
1,080
147
20
249
410
20,285
6,469
5,626
3,623
833
2,662
9
563
130
370
H1-FY24
9,118
6,355
3
1,466
776
17
53
448
17,573
4,559
4,466
3,872
2,125
1,963
8
164
130
286
22,783
27,310
26,691
18
Key Financial Highlights
Operational Revenue (INR Mn)
EBITDA (INR Mn) & EBITDA Margins (%)
PAT (INR Mn) & PAT Margins (%)
50,323
52,872
31,852
36,905
9,041
6,690
21.00%
17.97%
6,582
12.45%
2 8.0 0 %
2 1.0 0 %
1 4.0 0 %
7 .00 %
0 .00 %
2,915
7.90%
4,775
14.99%
1.54%
6,633
14.99% 4,981
13.18%
3.77%
9.42%
2 8.0 0 %
2 1.0 0 %
1 4.0 0 %
7 .00 %
0 .00 %
13.18% 2,150
5.83%
FY21
FY22
FY23
9M-FY24
FY21
FY22
FY23
9M-FY24
FY21
FY22
FY23
9M-FY24
Volume in MT (‘000)
Net Debt to Equity (x)
273
286
234
229
FY21
FY22
FY23
H1-FY24
FY21
FY22
FY23
9M-FY24
Supreme Petrochem Limited
-0.49
-0.46
-0.54
-0.61
ROCE (%) and ROE (%)
ROE
ROCE
57%
57%
45%
44%
36%
27%
FY21
FY22
FY23
19
Capital Market Information
Share Price Movement (Up to 31st December , 2023)
60%
40%
20%
0%
-20%
Jan/2023
Feb/2023 Mar/2023
Apr/2023
May/2023
Jun/2023
Jul/2023
Aug/2023
Sep/2023
Oct/2023
Nov/2023
Dec/2023
SPL
SENSEX
Market Data (INR) (As on 31st December 2023)
Shareholding Pattern (As on 31st December 2023)
Face Value
CMP
52 Week H/L
Market Cap (INR Mn)
Shares O/S (Mn)
Avg. Vol. (‘000)
Supreme Petrochem Limited
2.0
559.7
599.75/352.1
1,05,256.1
188.0
120.41
30.68%
2.46%
2.62%
64.24%
Promoters
DII
FPI + FII
Public
20
Disclaimer
Supreme Petrochem 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 Supreme Petrochem Limited (Supreme), 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: supreme@valoremadvisors.com
Supreme Petrochem Limited
21
THANK YOU