Tata Chemicals Limited has informed the Exchange about Investor Presentation
October 27, 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 Limited Exchange Plaza, Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Symbol: TATACHEM
Sub: Submission of Analysts/Investors Presentation
Ref: Letter dated October 19, 2021 providing details of the Analysts/Investors Call
Further to our referred letter, please find enclosed a presentation to be made to analysts/investors on the Audited Standalone and Unaudited Consolidated Financial Results for the the second quarter and half year ended September 30, 2021 during analysts/investors call to be held on Thursday, October 28, 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.
The presentation www.tatachemicals.com
is also being made available on
the Company's website at
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
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
Till FY17
Divestment of Urea Business
FY18
FY19
FY20
FY21
Investment approval of ₹ 2,700 Cr for expansion of Mithapur operations
Completed Demerger of Consumer Products Business
Divestment of Phosphate Fertiliser Business
Started to build 5,000 MT Prebiotic plant
Acquired Silica Plant for HDS
Focused Chemistry Solutions Company
Footprint across 4 Continents
Employing ~5,000 people
With 13 Manufacturing units
Supported by 3 R&D centers with 200 + Scientists
3
Basic Chemistry Products
Specialty Products
Rallis India Limited*
Major Products
Soda ash, Bicarb, Salt, Marine chemicals and Cement
Prebiotics Specialty silica
Crop Care, Crop Protection and Seeds (herbicides, fungicides and insecticides, etc)
Installed Capacity
Location
Soda Ash: 9,17,000 MTPA Bicarb: 105,500 MTPA Salt: 1,170,000 MTPA
Gujarat
Prebiotic - 5,000 MTPA Specialty silica-10,000 MTPA
Andhra Pradesh Tamil Nadu
Maharashtra Gujarat
Lote
Akola
Ankleshwar
Dahej
* TCL holds 50.06% Stake in Rallis India Limited
4
Major Products
Installed Capacity
US
Soda Ash
2,540,000 MTPA
UK
Soda Ash, Bicarb Salt
Soda Ash: 400,000 MTPA Bicarb: 130,000 MTPA Salt: 430,000 MTPA
Kenya
Soda Ash
350,000 MTPA
Location
Wyoming, US
Lostock & Winnington, UK Middlewich, UK
Magadi, Kenya
5
e r t n e C n o i t a v o n n I
L C T
D & R a i d n I
s i l l a R
225 Technically skilled Scientists in R&D
3 State-of-the-art innovation Centers
Strong intellectual property |157 patents held
(cumulative); 97 Active Applications
6
7
₹ 3,023 Cr
₹ 501 Cr (17%)
₹ 248 Cr (8%)
↑ 16% vs. Sept20
↑ 30% vs Sept20
↑ 87% vs Sept20
Robust volumes growth vs PY across products (Soda ash (27%), Salt (5%) & Bicarb (6%))
Soda Ash pricing improving across all geographies
Challenging environment of increasing input costs & supply chain bottlenecks
Standalone Revenue grew by 18% vs PY and EBITDA grew by 65%
Gross Debt as on 30th Sept 21 is ₹ 7,108 Cr (vs ₹ 6,933 Cr as on Mar21)
Soda Ash Volumes
Q2 FY 22
Q2 FY 21
946 Kts
744 Kts
Salt Volumes
Q2 FY 22
Q2 FY 21
402 Kts
382 Kts
Net Debt
Q2 FY 22
Q4 FY 21
4,158 Cr
3,828 Cr
8
Standalone | ₹ Crore
828
847
717
Q2 Sep20
Q1 Jun21
Q2 Sep21
Revenue up by ₹ 130 Crore (↑18%)
Consolidated | ₹ Crore
2,977
3,023
2,609
3,50 0
3,00 0
2,50 0
2,00 0
1,50 0
1,00 0
EBITDA
EBITDA margin
Operational PBT
Non Operational PBT
Profit After Tax
PAT margins
29%
239
23%
192
16%
116
Q2 Sep20
Q1 Jun21
Q2 Sep21
EBITDA up by ₹ 75 Crore (↑65%)
EBITDA
EBITDA margin
20%
601
17%
501
15%
386
30%
25%
20%
15%
10%
25%
20%
15%
10%
5%
0%
-5%
-10%
240
220
200
180
160
140
120
100
80
700
600
500
400
300
200
100
-
100 %
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
166
103
63
282
101
181
177
45
132
Q2 Sep20
Q1 Jun21
Q2 Sep21
PBT up by ₹ 11 Crore (↑7%)
Non Operational PBT
Profit Before Tax
189
69
120
428
54
374
320
56
264
28%
228
19%
135
16%
135
Q2 Sep20
Q1 Jun21
Q2 Sep21
PAT remained flat
Profit After Tax
PAT margins
5%
132
11%
342
8%
248
30%
28%
26%
24%
22%
20%
18%
16%
14%
12%
10%
25%
20%
15%
10%
5%
0%
-5%
-10%
240
220
200
180
160
140
120
100
80
800
700
600
500
400
300
200
100
-
Q2 Sep20
Q1 Jun21
Q2 Sep21
Q2 Sep20
Q1 Jun21
Q2 Sep21
Q2 Sep20
Q1 Jun21
Q2 Sep21
Q2 Sep20
Q1 Jun21
Q2 Sep21
Revenue up by ₹ 413 Crore (↑16%)
EBITDA up by ₹ 115 Crore (↑30%)
PBT up by ₹ 131 Crore (↑69%)
PAT up by ₹ 115 Crore (↑87%)
Note: Change is vs PY quarter PBT & PAT includes Continuing operations, after Share in JV & associates & before NCI
9
Standalone | ₹ Crore
1,675
1,345
YTD Sept20
YTD Sept21
Revenue up by ₹ 329 Crore (↑24%)
Consolidated | ₹ Crore
4,958
6,000
500
450
400
350
300
250
200
150
100
50
-
1,200
1,000
800
600
400
200
-
26%
430
20%
272
YTD Sept20
YTD Sept21
EBITDA up by ₹ 158 Crore (↑58%)
18%
1,102
15%
746
30%
25%
20%
15%
10%
5%
0%
25%
20%
15%
10%
5%
0%
Non Operational PBT
Profit Before Tax
308
141
167
459
146
313
YTD Sept20
YTD Sept21
PBT up by ₹ 151 Crore (↑49%)
Non Operational PBT
Profit Before Tax
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
299
127
172
747
111
636
22%
363
18%
244
YTD Sept20
YTD Sept21
PAT up by ₹ 119 Crore (↑49%)
10%
590
4%
206
400
350
300
250
200
150
100
50
-
700
600
500
400
300
200
100
-
YTD Sept20
YTD Sept21
YTD Sept20
YTD Sept21
YTD Sept20
YTD Sept21
YTD Sept20
YTD Sept21
Revenue up by ₹ 1,042 Crore (↑21%)
EBITDA up by ₹ 356 Crore (↑48%)
PBT up by ₹ 448 Crore (↑150%)
PAT up by ₹ 384 Crore (↑186%)
Note: Change is vs PY quarter PBT & PAT includes Continuing operations, after Share in JV & associates & before NCI % in respective charts represents margins
25%
20%
15%
10%
5%
0%
25%
20%
15%
10%
5%
0%
10
₹ Crore
Consolidated
Standalone
Q2 Sept20 Q1 Jun21 Q2 Sept21
Var vs. PY (Sep20 Vs Sep21)
Q2 Sept20 Q1 Jun21 Q2 Sept21
Var vs. PY (Sep20 Vs Sep21)
s e u n e v e R t n e m g e S
Basic Chemistry Products
1,839
2,173
2,235
Specialty Products
Less: Inter Segment Revenue
766
(3)
797
(1)
786
(3)
2,602
2,970
3,018
Unallocated Revenue
8
8
4
Total Segment Revenue
2,609
2,977
3,023
Basic Chemistry Products
t n e m g e S
s t l u s e R
Specialty Products
Segment Results
Unallocated Expenses / (Income)
Finance Costs
Profit after exceptional items, before share of profit of joint ventures and tax
152
90
242
(20)
84
179
346
93
439
(19)
81
377
279
58
337
(9)
84
262
396
20
0
417
(3)
413
128
(32)
95
11
0
84
677
41
-
717
0
717
121
(9)
113
(58)
4
770
57
-
826
2
828
234
(12)
222
(64)
4
791
58
-
849
(2)
847
195
(12)
183
2
5
166
282
177
114
18
-
132
(2)
130
74
(3)
70
59
0
11
Basic Chemistry Products includes Soda Ash, Bicarb , Salt , Marine Chemicals and Other products Speciality Includes Nutritional Solutions, Silica and Rallis India
11
Material
India
US
UK
Kenya
Headwind on Input Costs
Coal
Gas
s e i t i l i t U
Heavy Fuel Oil (HFO)
• Gas price has gone up substantially
• Coal price (including higher freight) has
gone up 4x
₹ Crore
Sep-20
Jun-21 Sep-21
Sep-20
Jun-21 Sep-21
Standalone
Consolidated
• Carbon UK ETS prices up from GBP 25-30
per MT in March 21 to GBP 75 per MT in
Revenue from operations
717
828
847
2,609
2,977
3,023
Cost of Production1
414
416
477
1,403
1,472
1,620
Sept 21
Contribution
303
412
370
1,207
1,505
1,403
•
Increase in cost of bought out raw salt due
Contribution Margin 42%
50%
44%
46%
51%
46%
to excessive rainfall
1Cost of production includes the following heads under the SEBI financial statements (a) cost of raw materials (b) change in inventory ( c) purchase of stock in trade ( d) power & fuel (e ) freight and forwarding charges
12
₹ Crore
Non - Current Assets
Inventories
Investments
Trade Receivables
Cash and Bank Balance
Others Current Assets
Total Assets
Equity & Reserves
Non - Controlling Interests
Non-Current Liabilities
Borrowings (Non Current) / Lease Liabilities
Borrowings (Current) / Lease Liabilities
Trade Payables
Others Current Liabilities
Total Equities and Liabilities
Consolidated
Standalone
31-Mar-21
30-Sept-21
31-Mar-21
30-Sept-21
21,691
23,518
1,687
1,563
1,397
1,411
588
28,337
14,290
853
3,343
5,388
1,544
1,683
1,236
1,873
1,506
1,668
1,315
1,280
31,161
16,365
891
3,780
5,616
1,492
1,803
1,213
11,789
522
1,282
145
685
242
14,665
13,257
-
364
5
4
482
553
12,938
675
1,279
157
441
293
15,783
14,325
-
468
3
4
408
575
28,337
31,161
14,665
15,783
13
Standalone | ₹ Crore
Consolidated | ₹ Crore
900
800
700
600
500
400
300
200
100
-
500
450
400
350
300
250
200
150
100
50
-
250
200
150
100
50
-
e u n e v e R
i
n g r a M & A D T I B E
i
n g r a M & T A P
628
717
812
841
828
847
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
25%
156
16%
116
22%
175
20%
164
29%
239
23%
192
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
17%
109
19%
135
14%
116
14%
120
28%
228
16%
135
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
30%
25%
20%
15%
10%
5%
0%
2,348
2,609
2,606
2,636
2,977
3,023
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
15%
360
15%
386
18%
472
11% 283
20%
601
17%
501
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
3%
5%
8%
74
132
201
11%
8%
1%
29
342
248
3,500
3,000
2,500
2,000
1,500
1,000
500
-
1,000
900
800
700
600
500
400
300
200
100
-
1,000
900
800
700
600
500
400
300
200
100
-
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
25%
20%
15%
10%
5%
0%
13%
11%
9%
7%
5%
3%
1%
-1%
-3%
-5%
14
Soda Ash | In Kts
Sodium Bicarbonate | in Kts
Salt Portfolio | in Kts
India
US
UK
Kenya
India
UK
India
UK
744
946
771
970
52
55
51
51
382
402
369
387
86 68
613
65 87
453
51 67
475
80 79
613
151
178
166
198
25
27
26
21
87
82
77
83
25
30
25
30
295
320
292
304
Sep-20
Sep-21
Sep-20
Sep-21
Sep-20
Sep-21
Sep-20
Sep-21
Sep-20
Sep-21
Sep-20
Sep-21
Sales
Production
Sales
Production
Sales
Production
15
Overall Soda Ash sales volumes back to pre COVID levels
Domestic
Domestic
Exports
→India
volumes
robust
s t K n I
| a i d n I
s t K n I
| K U
400
350
300
250
200
150
100
50
-
150
130
110
90
70
50
30
10
(1 0)
163
154
158
159
151
118
168
184
167
178
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Domestic
77
68
70
71
67
70
67
68
68
62
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
s t K n I
| S U
s t K n I
|
a y n e K
1,40 0
1,20 0
1,00 0
800
600
400
200
-
200
180
160
140
120
100
80
60
40
20
-
541
570
571
553
253
295
276
257
288
275
294
295
389
139
250
568
580
613
475
475
197
181
309
319
353
278
295
259
261
260
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
Domestic
Exports
74
75
63
45
58
18
16
40
28 12
56
19
57
41
17
51
37
15
55
39
16
83
86
68
55
71
13
12
64
22
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Q3 FY21
Q4 FY21
Q1 FY22
Q2 FY22
especially
from
flat and
container glass business.
→UK
soda
ash
volumes
remain consistent vs PY
→ US volumes remain strong
due
to
higher
export
volumes.
→Kenya volumes higher on
the back of
improved
demand from South East
Asian market
16
Key Highlights
India
US
→ Revenue at ₹ 791 Cr (up 17%), EBIT was ₹ 195 Cr up (vs ₹ 121 Cr PY).
→ Margins improved on account of higher volumes and increase in prices largely offset by higher raw
materials and energy cost, though fixed cost remain in control.
→ Revenue at ₹ 867 Cr (up by 22%) and EBIT was ₹ 114 Cr (vs. ₹ 16 Cr PY)
→ US domestic volumes remained stable while export volumes grew well. Margin improvement led by
higher volumes.
→ Revenue at ₹ 416 Cr (up by 23%) and EBIT was ₹ (57) Cr (vs. ₹ 11 Cr PY).
UK
→ UK soda ash sales volumes remained stable. Higher gas and carbon prices led to increase in
electricity income.
→ Margins were impacted mainly due to sharp raise in the energy costs and carbon price.
Segment Revenue at ₹ 2,235 Cr (up by 22%)
Segment results at ₹ 279 Cr (up by 84%)
1,839
152
2,173
2,235
346
279
Q2 Sep20
Q1 Jun21
Q2 Sep21
→ Revenue at ₹ 140 Cr (up by 54%) and EBIT was ₹ 26 Cr (vs. ₹ (2) Cr PY).
Kenya
→ Kenya had strong export volumes and continued its focus on cost optimization and plant efficiencies.
Segment Revenue
Segment Results
One time cost of Rs 11 Cr on account of manpower restructuring.
Basic Chemistry Products includes Soda Ash, Bicarb , Salt , Marine Chemicals and Other products
17
Key Highlights
Segment Revenue at ₹ 786 Cr (up by 3%)
Segment results at ₹ 58 Cr vs ₹ 90 Cr PY
→ Revenue increased for the quarter to ₹ 58 Cr (up by 43%), on the back of higher sales
Specialty Products
volumes across products portfolio.
→ Export market gaining traction for FOS products
→ Food grade silica demand remained stable; Tyre & Rubber segment demand remained low.
Agri Science (Rallis India Ltd)
→ Revenue at ₹ 727 Cr and EBIT stood at ₹ 69 Cr vs ₹ 97 Cr PY
→ Revenue remained steady with growth in Crop Care, domestic and International business.
Seeds revenue remained lower.
→ Margins were impacted due to sharp raise in the input cost & fixed costs along with higher
sales returns, erratic rainfall impacting seeds business
766
797
786
90
93
58
Q2 Sep20
Q1 Jun21
Q2 Sep21
Segment Revenue
Segment Results
Speciality Products Includes Nutritional Solutions, Silica and Rallis India
18
Statement of Profit and Loss for the quarter ended Sept21
Units ₹ Cr
Revenues
EBITDA
EBIT
PBT
PAT (before NCI)
PAT (after NCI)
TCL India
PY
CY
Var
PY
US
CY
Var
PY
UK
CY
Kenya
Rallis
Consolidated
Var
PY
CY
Var
PY
CY
Var
PY
CY
Var
717
847
130
711
867
156
337
416
79
91
140
49
724
727
3
2,609
3,023
414
116
192
76
96
196
100
46 (18)
(64)
6
33
27
118
87 (31)
386
501
115
68
137
69
16
114
98
11 (57)
(68)
(2)
26
28
97
69 (28)
194
301
107
166
177
11 (26)
76
102
2 (67)
(69)
(5)
11
16
110
76 (34)
189
320
131
135
155
20 (24)
66
90
2 (67)
(69)
(5)
11
16
83
56 (26)
132
268
136
135
155
20 (44)
47
91
2 (67)
(69)
(5)
11
16
83
56 (26)
70
221
151
Statement of Profit and Loss for the Year till date Sept21
Units ₹ Cr
Revenues
EBITDA EBIT2 PBT3 PAT (before NCI) PAT (after NCI)4
TCL India
PY
CY
Var
PY
US
CY
Var
PY
UK
CY
Kenya
Rallis
Var
PY
CY
Var
PY
CY
Var
Consolidated1 CY
PY
Var
1,345
1,675
330
1,329
1,705
376
652
822
170
191
274
83
1,383
1,468
85
4,958
6,000
1,042
272
430
158
131
369
238
74
11 (63)
16
58
42
242
209 (33)
746
1,102
356
176
322
146 (31)
208
238
5 (65)
(70)
(1)
43
44
204
173 (31)
364
705
341
308
459
151 (146)
131
277 (13)
(85)
(72)
(8)
27
35
230
186 (44)
299
747
448
244
383
139 (115)
117
232 (13)
(86)
(72)
(8)
27
35
175
139 (36)
206
610
404
244
383
139 (150)
85
236 (13)
(86)
(72)
(8)
27
35
175
139 (36)
84
509
425
1 .Consolidated financials is after adjusting SPV & other adjustments , 2. EBIT excludes Other Income 3 .PBT is after exceptional items & Share in JV and PAT (before NCI) 4 .Rallis financials represent 100 % share. Consolidated numbers is after adjustment of Rallis India’s NCI.
19
Current Year
Near Term
• Grow volumes & maximize realizations in soda ash (price
• First tranche of Soda Ash, Bicarb & Salt expansion on stream
Standalone
a i d n I
Rallis
increased in Q2 FY22)
• Timely execution of capacity expansion: Salt 165k MT by
end of FY22
• New product introduction, strengthen and leverage brand
power and distribution reach.
• Maximize revenue from current Active Ingredients portfolio
by scale up/debottlenecking capacities
by FY23, delivering incremental revenues
• Continue focus on costs • Qualification with customers on Prebiotics & Silica • Research led new Active Ingredients and combination formulations to build a strong and innovative product portfolio
• Leveraging emerging technologies for value added portfolio
including GM traits
US
l a n o i t a n r e t n I
UK
• Volume recovery to pre covid levels • Export price maximization &
target higher domestic
realizations during contract renewals in Q4 FY 22
• Hold volumes & pricing ; Target higher realizations during
• Manage ANSAC exit through own supply chain & sales
teams
contract renewals in Q4 FY 22
• Manage energy & carbon cost pressures and continuous
• Operational
efficiencies
through
cost
structure
cost focus
rationalization
Kenya
• Sustain volume growth momentum
• Steady volumes & continuous cost focus
Invest and grow in India
• • Focus on cash generation across geographies • Deleverage international debt
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ESG initiatives
Priorities
Focus Areas
Climate Change
Signed SBTi and taken absolute carbon emission reduction target
• Fuel Change, Energy efficiency, renewable energy
& CCU & usage.
Circular Economy
Fresh Water Neutrality, zero solid waste and recycle
• Water harvesting and conservation • Solid waste recycle & cement plant consumes
waste material at Mithapur
Biodiversity
Preserve Natural Capital, conservation & restoration of biodiversity
• Mangroves plantation in and around Mithapur • Whale shark conservation • Water harvesting for farm lands
Carbon Capture Utilisation Unit in UK commissioned in Sept 21
Employees Back to Office with safety and precautions
MD Safety Award Distribution at Mithapur
A tribute to JRD Tata at Akola-Rallis unit
Vaccination Camp at Cuddalore
Employee Safety and Health
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Tata Chemicals wins Dun & Bradstreet award for ESG Performance in the Manufacturing category
Tata Chemicals bags 3 Platinum prizes at CII's 15th Six Sigma National Competition
Tata Chemicals bags 4th spot in Responsible Business Ranking 2021 (Study carried out by Futurescape & announced during the Economic Times SDG Summit 2021)
Tata Chemicals receives DSIR recognition for Mithapur R&D and IC Pune until Mar’24
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Consolidated Earnings Price Per Share | In ₹
Exchange | Average rate per ₹
11.3
7.9
USD
GBP
6.3
2.8
0.5
0.5
Q1 FY20
Q2 FY20
Q3 FY20
Q4 FY20
Q1 FY21
Q2 FY21
Shareholding Pattern as on Sept 21 | In %
95.19
75.07
95.99
97.09
103.16
102.61
74.63
74.21
73.73
73.91
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Non institution , 28%
Promoter & Promoter Group, 38%
Institutions, 35%
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For any queries please contact below :
Nandakumar Tirumalai
nandu@tatachemicals.com
Sridhar Radhakrishnan
rsridhar@tatachemicals.com
Sameer Kulkarni
sakulkarni@tatachemicals.com
Gavin Desa
gavin@cdr-india.com
Suraj Digawalekar
suraj@cdr-india.com
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