Tata Chemicals Limited has informed the Exchange about Investor Presentation
January 28, 2021
The General Manager Corporate Relations Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001 Scrip Code: 500770
Dear Sir/Madam,
The Manager, Listing Department National Stock Exchange of India Ltd Exchange Plaza, 5th Floor, Plot No. G Block, Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Symbol: TATACHEM
Sub: Submission of Analysts/Investors Presentation
Ref: Letter dated January 18, 2021 informing about Analysts/Investors Presentation
Further to our referred letter dated January 18, 2021, please find enclosed a presentation to be made to analysts/investors on the results for the third quarter and nine months ended December 31, 2020 for the analysts/investors call to be held on Friday, January 29, 2021.
The presentation is being submitted in compliance with Regulation 30(6) read with Schedule III Part A Para A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
A copy of www.tatachemicals.com.
the presentation
is also uploaded on
the Company's website
You are requested to take the same on record.
Thanking you,
Yours faithfully, For Tata Chemicals Limited
Rajiv Chandan General Counsel & Company Secretary
Encl: as above
Q3 & 9 months ended FY20-21 Financial Results
Analyst and Shareholders Communication
28 th January 2021
1
“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
Consolidated Revenue
Consolidated EBITDA
₹ 2,606 Cr
↓ 0.7% (vs PY Q3)
↓ 0.1% (vs CY Q2)
₹ 472 Cr (18% margin)
↓ 0.3% (vs PY Q3)
↑ 22% (vs CY Q2)
Operational Cash Conversion remained at ₹ 379 Cr for the quarter
Consolidated Cash & Cash Equivalent as on 31st Dec 20 is ₹ 3,118 Cr (vs ₹ 3,660 Cr as on Mar20)
Standalone continues to remain Cash Positive
Standalone Cash & Cash Equivalent as on 31st Dec 20 is ₹ 1,965 Cr (vs ₹ 2,162 Cr as on Mar20)
Soda Ash Volumes
Q3 FY 21
768 Kts
Q3 FY 20
837 Kts
IVSD Salt Volumes
Q3 FY 21
319 Kts
Q3 FY 20
271 Kts
Consolidated Net Debt
Dec 20
INR 3,743 Cr
Mar 20
INR 4,042 Cr
3
Standalone | ₹ Crore
759
717
812
Q3 Dec19
Q2 Sept20
Q3 Dec20
Revenue up by ₹ 53 Crore (↑7%)
Consolidated | ₹ Crore
2,623
2,609
2,606
3,00 0
2,50 0
2,00 0
1,50 0
1,00 0
500
-
240
220
200
180
160
140
120
100
80
700
600
500
400
300
200
100
-
EBITDA
EBITDA margin
Operational PBT Non Operational PBT
Profit After Tax
PAT margins
26%
195
16%
116
22%
175
30%
25%
20%
15%
10%
5%
0%
100 %
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
188
35
153
166
103
63
148
26
122
Q3 Dec19
Q2 Sept20
Q3 Dec20
Q3 Dec19
Q2 Sept20
Q3 Dec20
EBITDA down by ₹ 20 Crore (↓ 10%)
PBT down by ₹ 40Crore (↓21 %)
EBITDA
EBITDA margin
Operational PBT Non Operational PBT
18%
473
15%
386
18%
472
25%
20%
15%
10%
5%
0%
-5%
-10%
289
59
230
189
69
121
255
43
212
240
220
200
180
160
140
120
100
80
800
700
600
500
400
300
200
100
-
18%
19%
14%
137
135
116
Q3 Dec19
Q2 Sept20
Q3 Dec20
PAT down by ₹ 21 Crore (↓16%)
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Profit After Tax
PAT margins
8%
221
5%
132
8%
201
Q3 Dec19
Q2 Sept20
Q3 Dec20
Q3 Dec19
Q2 Sept20
Q3 Dec20
Q3 Dec19
Q2 Sept20
Q3 Dec20
Q3 Dec19
Q2 Sept20
Q3 Dec20
Revenue down by ₹ 17 Crore (↓1 %)
EBITDA down by ₹ 1 Crore (↓0.3 %)
PBT down by ₹ 34 Crore (↓12 %)
PAT down by ₹ 20 Crore (↓9%)
Note: * PBT & PAT includes Continuing operations, after Share in JV & associates & before NCI
25%
20%
15%
10%
5%
0%
-5%
-10%
4
Standalone | ₹ Crore
2,186
2,158
EBITDA
EBITDA margin
Operational PBT Non Operational PBT
Profit After Tax
PAT margins
26%
578
700
600
500
400
300
200
100
-
21%
447
30%
25%
20%
15%
10%
5%
0%
692
262
430
456
167
289
YTD Dec19
YTD Dec20
YTD Dec19
YTD Dec20
YTD Dec19
YTD Dec20
Revenue down by ₹ 29 Crore (↓1%)
EBITDA down by ₹ 131 Crore (↓23 %)
PBT down by ₹ 236 Crore (↓34 %)
Consolidated | ₹ Crore
9,00 0
8,00 0
7,00 0
6,00 0
5,00 0
4,00 0
3,00 0
2,00 0
1,00 0
-
7,979
7,564
EBITDA
EBITDA margin
Operational PBT Non Operational PBT
1,80 0
1,60 0
1,40 0
1,20 0
1,00 0
800
600
400
200
-
19%
1,549
16%
1,218
25%
20%
15%
10%
5%
0%
100 %
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1,031
236
796
554
170
384
600
500
400
300
200
100
-
900
800
700
600
500
400
300
200
100
-
25%
554
17%
360
30%
25%
20%
15%
10%
5%
0%
YTD Dec19
YTD Dec20
PAT down by ₹ 194 Crore (↓35%)
Profit After Tax
PAT margins
831
10%
407
5%
25%
20%
15%
10%
5%
0%
YTD Dec19
YTD Dec20
YTD Dec19
YTD Dec20
YTD Dec19
YTD Dec20
YTD Dec19
YTD Dec20
Revenue down by ₹ 415 Crore (↓5 %)
EBITDA down by ₹ 331 Crore (↓21 %)
PBT down by ₹ 478 Crore (↓46 %)
PAT down by ₹ 424 Crore (↓51%)
Note: PBT & PAT is after Share in JV & associates & before NCI
5
d e t a d
i l
o s n o C
l
e n o a d n a t S
Cash Conversion
Q2 FY21
Q3 FY21
9m FY21
Operational Working Capital
Mar-20
Sept-20
Dec-20
EBITDA
Operation Working Capital Δ
Cash Conversion
Cash Conversion %
386
199
585
152%
472
(93)
379
80%
1218
Inventories
406
Receivables
1,869
1,580
1,631
1,314
1,594
1,351
Payables
(1,631)
(1,626)
(1,533)
1,625
Operational Working Capital
1,818
1,319
1,412
133%
Operation Working Capital Δ
(93)
Cash Conversion
Q2 FY21
Q3 FY21
9m FY21
Operational Working Capital
Mar-20
Jun-20
Dec-20
EBITDA
Operation Working Capital Δ
116
25
175
108
447
43
Inventories
Receivables
Payables
Cash Conversion
142
282
490
Operational Working Capital
Cash Conversion %
122%
162%
110%
Operation Working Capital Δ
701
140
(575)
266
538
138
(346)
331
455
138
(370)
223
108
Cash conversion remains healthy both on Consolidated and Standalone basis
6
₹ Crore
Consolidated
Standalone
Q3 Dec19
Q3 Dec20
Variance
Q3 Dec19
Q3 Dec20
Variance
Basic Chemistry Products
2,010
1,987
e u n e v e R t n e m g e S
t n e m g e S
s t l u s e R
Specialty Products
Less: Inter Segment Revenue
Unallocated Revenue
Total Segment Revenue
Basic Chemistry Products
Specialty Products
Segment Results
Unallocated Expenses / (Income)
Finance Costs
Profit after exceptional items, before share of profit of joint ventures and tax
604
(3)
2,611
13
2,623
328
40
367
(1)
75
293
618
(4)
2,601
5
2,606
298
38
336
7
81
248
(23)
14
-
(9)
(7)
(16)
(29)
(2)
(31)
8
5
(44)
729
21
-
750
9
759
213
(8)
204
11
5
188
765
47
-
812
0
812
180
(14)
166
14
4
148
35
26
-
62
(9)
53
(33)
(6)
(38)
3
(1)
(40)
7
3,00 0
2,50 0
2,00 0
1,50 0
1,00 0
500
-
100 0
900
800
700
600
500
400
300
200
100
0
100 0
900
800
700
600
500
400
300
200
100
0
e u n e v e R
& A D T I B E
i
n g r a M
i
n g r a M & T A P
2,584
2,771
2,623
2,378
2,348
2,609
2,606
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
20%
515
20% 561
18% 473
17%
400
15% 360
15%
386
18% 472
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
9%
231
14%
379
8%
221
8%
198
3%
74
5%
132
8%
201
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
25%
20%
15%
10%
5%
0%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
8
s t K n
I | a d n
i
I
s t K n
I | e p o r u E
400
350
300
250
200
150
100
50
-
150
130
110
90
70
50
30
10
(1 0)
163
154
158
168
151
118
Q1 FY20 Q2 FY20 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21
Domestic
68
77
70
67
70
62
-
-
-
-
-
-
Q1 FY20 Q2 FY20 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21
1,20 0
1,00 0
800
600
400
200
-
160
140
120
100
80
60
40
20
-
s t K n
I |
a c i r e m A h t r o N
s t K n
I | a y n e K
541
570
571
253
295
276
288
275
294
389
139
250
475
475
197
181
278
295
Q1 FY20 Q2 FY20 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21
Domestic
Exports
63
45
18
74
58
16
57
41
17
51
37
15
56
39
16
40
28 12
Q1 FY20 Q2 FY20 Q3 FY20 Q1 FY21 Q2 FY21 Q3 FY21
Domestic
Domestic
Exports
• Higher demand for soda India
the
in
ash Operations.
• UK and Magadi operation had good third quarter with higher sales volume in both the units.
• Domestic
Demand improved in US, however exports remained benign,
• Overall we had witnessed good traction across all geographies
9
Revenue Movement | ₹ Crore
26
35
130
3,00 0
2,90 0
2,80 0
2,70 0
2,60 0
2,50 0
2,40 0
2,30 0
2,20 0
2,10 0
2,00 0
2,623
Q3 Dec FY20
→ India Operation had a healthy volumes growth
across product portfolio.
→ US had a challenging third quarter. We could see
good traction coming from domestic market,
which is partly offset by lower volumes in export
26
25
36
35
market.
→ TCE and Magadi operations had a positive
improvement with higher sales volumes in Soda
2,606
ash, bicarb and Salt respectively.
→ On consolidated financials, Y-O-Y impact was on
account of lower volumes (US) and lower sales
realization.
BCP India
SP India
TCNA
TCE
Magadi
Rallis
SPV & Elim Q3 Dec FY21
10
600
500
400
300
200
100
-
450
400
350
300
250
200
150
100
50
-
PBT Standalone Movement | ₹ Crore
→ Standalone Other Income Breakup
Details
Q3 FY20
Q3 FY21
Dividend Income from JV & Sub
Miscellaneous & Interest Income
-
35
35
-
26
26
35
153
18
13
122
→ Overall margin was impacted due to lower sales realisation
188
PBT Q3 FY20 Reported
Other Income
PBT Q3 FY20 - Core Net Production Cost
Fixed & Other Expenditure
PBT Q3 FY21 - Core
PBT Consolidated movement | ₹ Crore
59
37
19
230
212
Other Income
PBT Q3 FY20 - Core Net Production Cost
Fixed & Other Expenditure
PBT Q3 FY21 - Core
289
PBT Q3 FY20 Reported
→ Consolidated Other Income Breakup
Details
Interest Income
Miscellaneous Other Income
Q3 FY20
Q3 FY21
9
50
59
12
31
43
11
Consolidated Debt Position | ₹ Crore
795
45
7,702
6,862
3,118
Gross Debt Mar20
Net Change
Revaluation
Gross Debt Dec20
3,743
Net Debt
Cash & Cash Equivalents
s l i
a t e D
•
•
•
Consolidated Cash and Cash Equivalent as on 31st December 2020 is ₹ 3,118 Cr (vs ₹ 3,660 Cr as on Mar20)
Standalone continues to be Debt Free
Standalone Cash and Cash Equivalent as on 30th September 2020 is ₹ 1,965 Cr (vs ₹ 2,160 Cr as on Mar20)
12
Key Highlights
Segment Revenue at ₹ 1,987 Cr (down by 1%) |
• Revenue at ₹ 765 Cr (up 5%), operating margins were subdued at ₹ 180 Cr (margin 24%),
Segment results at ₹ 298 Cr (down by 9%)
India Operations
down from ₹ 213 Cr (margin 29%) vs PY.
• Healthy volumes in Soda Ash, Salt, Cement, were partly offset by lower sales realisation • While volumes remained elevated, margins though were impacted on account of lower
sales realization
US Operations
• Revenue stood at ₹ 742 Cr (down by 15%) and EBITDA was at ₹ 158 Cr (down by 14%) • US Sales volumes (Y-o-Y) were down 95kts, domestic market continues with steady
growth, but export market still continues to face challenges.
• Overall margins was impacted due to lower sales realisation & adverse distribution cost
UK Operations
• Revenue stood at ₹ 374 Cr (up by 7%) and EBITDA was at ₹ 45 Cr (up by 5%) • UK Sales volumes (Y-o-Y) were in line with PY for all products i.e. Soda Ash, Bicarb and Salt • Overall margins improved due to higher sales realisation and improved manufacturing
efficiency.
Kenya Operations
• Revenue stood at ₹ 107 Cr (up by 30%) and EBITDA was at ₹ 26Cr (vs (9) Cr PY) • Magadi Sales volumes (Y-o-Y) were higher by 16 kts vs PY. • Positive impact of lower input price and plant spent, negated lower sales realisation.
2,010
1,987
328
298
Q3 Dec19
Q3 Dec20
Segment Revenue
Segment Results
13
Specialty Products
Nutritional Science
Silica Business
Agro Science (Rallis India Ltd)
Key Highlights
•
Specialty products (Standalone) business had encouraging quarter. Overall Revenue
increased to ₹ 47 Cr (up by 124%), due to higher volumes across products portfolio.
Segment Revenue at ₹ 618 Cr (up by 2%) | Segment
results at ₹ 38 Cr (down by 4%)
• Overall nutritional science business had encouraging demand.
•
•
Sales volumes and sales realization increased across product portfolio.
604
618
Silica demand is expected to improve. Orders in non food and food segment should
improve once the trials succeed and product acceptability is established.
• Pricing will be a major challenge, may face initial headwinds on pricing from competitors.
• •
•
Revenue stood at ₹ 570 Cr (up 7%) and EBITDA stood at ₹ 63 Cr (up 13%) Revenues up due to improved business from domestic market and seeds business. Despite improved domestic volumes, international business had a challenging quarter due to lower Metri sales realisation. Overall margins remain consistent vs PY, despite one time charge on account of substandard seed stocks and non moving items.
40
Q3 Dec19
38
Q3 Dec20
Segment Revenue
Segment Results
14
Statement of Profit and Loss for the quarter ended December 2020
Units
₹ Crore
Net Income
EBITDA
PBT
PAT
TCL India
US
UK
Africa
Rallis
Consolidated
PY
CY
PY
CY
PY
CY
PY
CY
PY
CY
PY
CY
759
195
188
137
812
175
148
116
872
183
79
40
742
158
35
19
348
43
8
8
374
45
2
2
82
(9)
(20)
(20)
107
534
570
2,623
2,606
26
18
18
56
48
36
63
62
46
473
289
167
472
255
161
Statement of Profit and Loss for the 9 months ended December 2020
Units
₹ Crore
TCL India
US
UK
Africa
Rallis
Consolidated
PY
CY
PY
CY
PY
CY
PY
CY
PY
CY
PY
CY
Net Income
2,186
2,158
2,603
2,071
EBITDA
PBT
PAT
578
692
554
447
456
360
557
256
133
289
(111)
(131)
991
106
1
1
1,026
119
(11)
(11)
347
39
5
5
298
1,906
1,954
7,979
7,564
41
10
10
269
240
185
305
292
220
1,549
1,218
1,031
622
554
245
* Consolidated financials is after adjusting SPV & Other adjustments • PBT is after exceptional items & Share in JV and PAT (after NCI) for Equity Shareholders
15
r e t r a u Q e h t
r o F
e t a D
l l i
T r a e Y
Soda Ash | In Kts TCL India
TCNA
TCE
TCM
TCL India
TCE
Sodium Bicarbonate | in Kts
Edible Salt* | in Kts
40 70
56 70
63 94
70 97
569
474
587
496
158
168
208
214
27
28
29
29
30
31
34
33
319
322
271
264
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Sales
Production
Sales
Production
Sales
Production
Soda Ash | In Kts TCL India
TCNA
TCE
TCM
TCL India
TCE
Sodium Bicarbonate | in Kts
Edible Salt* | in Kts
177 215
165 199
201 257
193 263
1,678
1,336
1,703
1,321
475
437
603
497
78
85
80
82
76
85
89
77
767
912
770
922
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
Sales
Production
Sales
Production
Sales
Production
* India Operations
16
Mithapur Expansion Plan
Product wise revised Implementation and Commissioning Schedule
Utilities , 32%
Vacume Salt , 23%
₹ 2,400 Cr
Caustic , 13%
Soda Ash , 26%
Cement , 3%
Bicarb , 3%
Incremental Revenue Realisation | In MT
Products
FY21 E
FY22 P
FY23 P
Total
Soda Ash
-
45,000 183,000 228,000
Cement
Vaccum Salt
- 188,000 165,000 353,000
Products In Lac MT
FY20
FY21
FY22
FY23
FY24 & Beyond
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total
Soda Ash
0.20
0.25
1.83
2.28
Vaccum Salt
0.23
1.65 1.65
Bicarb
0.31
3.53
0.31
2.21
2.21
Bicarb
Cement
Caustic
-
-
-
-
31,000
31,000
- 221,000 221,000
Caustic
0.18
0.18
0.36
18,000
18,000
36,000
Capex rephasing
17
Revenues | ₹ Crore & PAT | In %
Earnings Price Per Share | In ₹
3,50 0
3,00 0
2,50 0
2,00 0
1,50 0
1,00 0
500
-
2,623
2,378
2,348
2,609
2,606
8%
8%
8%
3%
5%
25%
20%
15%
10%
5%
0%
6.6
7.3
6.3
2.8
0.5
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Shareholding Pattern | In %
Exchange | Average rate per ₹
Non institution , 25.1%
Promoter & Promoter Group, 38.0%
Institutions, 36.9%
89.29
90.13
USD
GBP
94.19
95.19
95.99
70.37
70.88
75.87
75.07
74.63
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
18
19