KIRIINDUS

CD Kiri Industries Limited .(7 ~,.- .(7 ',t.-:J£ 0{-C"5 o' lcu ~ , ... August 10, 2021 To, To, BSE Limited National Stock Exchange of India Limited 1st Floor, Rotunda Building, Exchange Plaza, Bandra Kurla Complex, B.S. Marg, Fort, Mumbai -400 001 Bandra (E), Mumbai -400 051 Scrip Code: 532967 Scrip ID - KIRIINDUS Uear Sir/Madam, Sub: Submission of Q1-FY22 Earnings Presentation as pel' Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and our disclosure dated August 9, 2021 regarding intimation of Conference Call scheduled to be held on Wednesday, August 11, 2021 at 2.00 p.m. (1ST), please find attached herewith the Q1-FY22 Earnings Presentation. The Q1-FY22 Earnings Presentation is also available on website of the Company at www.kiriindustries.com. You are kindly requested to take note of the same. Thanking you, Yours faithfully, Suresh Gondalia Company Secretary Encl: As stated DYES INTERMEDIATES CHEMICALS N(>' N"'1<IRnQCII,O'll404, rf"r.r."MI n""II, ViII"O'" n",1hw",b• . PlnlNn '/iii? f\ Mil M7.tilill 71. Villagll: Dudhw.1I1:l. Till.: P:lllm. Tal. :Padra, 01$1.: Vadodar1l -391450. Gu)ar.1. India. Dlsl.: V8doda,a·391 4SOGu)aml, India I'tlona: +~'-:it>O~-'I.I'J444 Phon,: *91·2662-273124, 2~ FIX: .gl.26(12·213~~4 Flu: .91-2002-273120 Em.1I : Inlermedlale&Ut;,rkndullt1euom Web . WW'WJ,,,i,,'o(Iu$lrie~_GOm Email: IntCffncdlotc3@lltJrilndu3tr1c"oom Web: www.klrtlndu3trlc3.00m REGISTERED OFFICE: 7th floor. Hasubhai Chamber, opp. Town Hall, Ellisbridge, Ahmedabad -380 006. Gujarat Ondia). Phone: + 91-79·26574371·72-73 fax: + 91·79·26574374 CIN NO.:L24231GJ1998PLC034094 Company Overview Consolidated Revenue Break-up (INR Mn) 6,625 4,629 6,499 4,879 3,801 7,378 6,489 7,340 6,607 5,792 1,557 1,375 • Establishedin 1998, KiriIndustries Limited(KIL),isbasedout of Gujarat andhas emerged asoneof FY17 FY18 FY19 FY20 FY21 Q1-FY22 the largest manufacturers and exporters of a wide range of Dyes, Dyes Intermediates and Basic Domestic International ChemicalsfromIndiawith‘ZeroEffluent’. • KILisanaccreditedandcertifiedKeyBusinessPartnerwithworld’stopDyestuffmajorsacrossAsia- Revenue Breakup Q1-FY22 (Standalone) Pacific,theEUandAmerica. Basic Chemicals • It provides products and services across the whole value chain in numerous industrial sectors 3% (apparel,hosiery,automotive,carpets,leather,paper,homeupholstery,industrialfabrics,etc.) • Inthe22yearsoftheCompany’scorporatejourney,KILhasbeenfocusingonprovidingproductsof high quality standards, executing collaborations and strategic acquisitions, implementing Dyes environmentallyalignedR&D,findinginnovativesolutioncentricandall-encompassingcustomercare 35% • AllinitiativestakenbyKILhasenabledittosetitsfootprintsinover50countriesacross7continents. Dye • TheCompanyhassizeablemanufacturingfacilityof DyesIntermediatesandBasicchemicalsatPadra Intermediates (Baroda,Gujarat)andtostrengthenitscompetitiveedgeindyesvertical,KILformedajointventure 62% withLongsheng(China)andsetupamanufacturingfacilityfordyes. 2 About DyStar • The DyStar Group is a leading dyestuff and chemicalmanufacturer and solution provider, offeringa broadportfolioof colorants,specialtychemicals,andservicestocustomersacrosstheglobe. • With a heritage of more than a century in product development and innovation for the textile industry, DyStar also caters to multiple sectors including paints, coatings, paper and packaging industries. Its expansion into food and beveragesandpersonalcaresectorsreinforcesthecompany’spositionasaspecialtychemicalmanufacturer. KIL acquired Dystar • DyStar’s global presence offers customers reliable access to experts from offices, competence centres, agencies and in 2010, along with productionplantsspanningover50countries. Zhenjiang Longsheng • DyStarhas16manufacturingplantswithacombinedproductioncapacityof176,000TPA.Itisamarketleaderinglobal holding 37.57% dyesmarketwith amarketshareofover~21%. presently • Ithasexpertiseindyes,dyessolutions,leathersolutions,performancechemicals,andcustommanufacturingofspecial dyes/pigments. Total Revenue (USD Mn) Profit after Tax (USD Mn) 1,129 148 1,057 1,016 938 898 871 119 822 758 103 97 84 76 70 50 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY13 CY14 CY15 CY16 CY17 CY18* CY19* CY20 * Includes disputed provisions / write off in CY18 and CY19 of USD 113.02 Mnand USD 26.56 Mnrespectively 3 History 1995 2002 2007 2012 2016 DyStar was founded in 1995 as a FOUNDATION ACQUISITION: ACQUISITION: FOUNDATION: ACQUISITION: JOINT Color Texanlab Sustainable Emerald joint venture between Hoechst AG VENTURE OF: Solutions Textile Performance and Bayer Textile Dyes. In 2000, the Bayer AG and International Solutions Materials Hoechst AG Specialities textile dyes business from BASF was (Textile dyes, Group integrated. In 2010, DyStar Group Ind. Mitsubishi) was acquired by Kiri Industries Limited(KIL). JOINT VENTURE LAUNCH: Coloration OF: econfidence Specialist Bayer AG, program Hoechst AG, BASF AG ACQUISITION: (Textile Yorkshire ACQUISITION: dyes, Ind. Americas, Lenmar ICI/Zeneca RottaGroup Chemicals dyes and and Boehme ACQUISITION (Business and Sustainability Solution Mitsui Group BY KIL Assets) Leader Provider 2000 2004-06 2010 2013 4 Financial Highlights Q1-FY22 Financial Highlights (Consolidated) Q1-FY22 Financial Highlights (Standalone) Operational EBITDA EBITDA Margin Operational Revenue EBITDA EBITDA Margin Revenue INR 201 Mn 6.86% INR 2,928 Mn INR (37) Mn NA INR 1,995 Mn Net Profit PAT Margin Diluted EPS Net Profit PAT Margin Diluted EPS INR 68 Mn 2.32% INR 17.47 INR (96) Mn NA INR (1.85) 5 Q1-FY22 Standalone Operational Highlights Standalone: InQ1-FY22,thestandalonefinancialperformanceofthecompanywasnegativelyimpacted,duetothesecondwaveofCovid-19Pandemic. Domesticsalesgotimpactedbecauseofpartiallockdownswithinthecountry,resultinginaSalesdeclineof27.5%inQ-o-Qbasis. During Q1-FY22, although average price realizations and average cost of raw materials were higher than Q4-FY21, the domestic sales revenues were impactedduetosubstantiallylowervolumesonaccountofpartiallockdowns. The uncertainties of business operations under partial lockdowns across India and also in certain affected countries globally in second wave during Q1FY22 showed sharp and sudden increase in the basic chemicals and raw material prices. In short term, because of the contractual obligations of runningorderbook,thepassoverofincreasedcoststocustomers,wasnotfullypossible. Due to lower sales revenue and reduced margins, continuing fixed overheads of the company reduced the overall margins. The most important factor affecting the performance of Q1-FY22 on a standalone basis was the ongoing high legal cost on account of litigation in SingaporeCourtagainstSendaforthevaluationofDyStarandbuyoutofstakeofKiribySendaandalsoKiri’sclaimagainstDyStarfornottreatingKirias itspreferredsupplier,whichcouldnotgetabsorbed. 6 Q1-FY22 Consolidated Operational Highlights In Q1-FY22, Kiri Industries Limited (Kiri) had a Consolidated Turnover of INR 292.78 Crore, up 169 percent year on year, and a Consolidated Total Comprehensive Income of INR 90.56 Crore, up 257 percent year on year. Consolidated EBITDA is 59 % lower in Q1-FY22 compared to Q4-FY21, showing that financial performance is weaker in Q1FY22 primarily due to partial lockout as opposed to Q4-FY21, where the entire quarter was operational and had normal business operations. In the Consolidated Total Comprehensive Income, share of profit of DyStar(associate company of Kiri) amounts to INR 83.79 Crore and INR 16.09 Crore from LonsenKiri Chemical Industries Limited. 7 Update on Dystar court case in Singapore KiriIndustriesLimited(Kiri)hasbeenawardedvaluationofUS$481.60Millionforits37.57%stakeinDyStarGlobalHoldingsPteLtd(DGH)onJune21, 2021,bySingaporeInternationalCommercialCourt(SICC)whichhasbeencrystalizedbasedonthefinancialpositionofDyStarasonJuly3,2018. Both Kiri and Senda have filed appeals against SICC order dated 21 December, 2020 and 21 June 2021 with Court of Appeal (Supreme Court of Singapore)andKirihasalsofiledappealagainstSICCorderdated17March,2021andhearingdatesinSupremeCourtareawaited. IncaseofKiri’sclaimagainstDyStar(SIC7)bothpartieshavefiledtheirclosingsubmissionsaswellascostsubmissionsandorderfromSICCisawaited. 8 Q1-FY22 Standalone Income Statement PARTICULARS (INR Mn) Q1-FY22 Q1-FY21 Y-o-Y Q4-FY21 Q-o-Q Revenuefrom Operations 1,995 685 191.2% 2,752 (27.5)% Total Expenses 2,032 893 127.5% 2,495 (18.6)% EBITDA (37) (208) NA 257 NA EBITDA Margin(%) NA NA NA 9.34% NA Other Income 4 6 (33.3)% 3 33.3% Depreciation 109 81 34.6% 117 (6.8)% Finance Cost 9 9 NA 10 (10.0)% PBT (151) (292) NA 133 NA Tax (55) 16 NA (89) NA Profit After Tax (96) (308) NA 222 NA PAT Margin(%) NA NA NA 8.07% NA Other Comprehensive Income - - NA (2) NA Total Comprehensive Income (96) (308) NA 220 NA Diluted EPS (INR) (1.85) (5.95) NA 4.25 NA 10 Q1-FY22 Consolidated Income Statement PARTICULARS (INR Mn) Q1-FY22 Q1-FY21 Y-o-Y Q4-FY21 Q-o-Q Revenuefrom Operations 2,928 1,088 169.1% 3,629 (19.3)% Total Expenses 2,727 1,142 138.8% 3,139 (13.1)% EBITDA 201 (54) NA 490 (59.0)% EBITDA Margin 6.86% NA NA 13.50% (664) Bps Other Income 4 6 (33.3)% 5 (20.0)% Depreciation 127 98 29.6% 135 (5.9)% Finance Cost 10 9 11.1% 11 (9.1)% PBT 68 (155) NA 349 (80.5) % Tax - 51 NA (43) NA Profit After Tax 68 (206) NA 392 (82.7)% PAT Margin 2.32% NA NA 10.80% (848) Bps Share of Profit of Associates 838 (371) NA 770 8.8% Other Comprehensive Income - - NA (1) NA Total Comprehensive Income 906 (577) NA 1,161 (22.0)% Dilutes EPS (INR) 17.47 (11.14) NA 22.41 (22.0)% 11 Historical Standalone Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 Q1-FY22 Revenuefrom Operations 10,619 9,690 6,892 1,995 Total Expenses 9,055 8,729 6,901 2,032 EBITDA 1,564 961 (9) (37) EBITDA Margin 14.73% 9.92% NA NA Other Income 28 41 20 4 Depreciation 285 366 390 109 Finance Cost 44 45 38 9 PBT 1,263 591 (417) (151) Tax 63 89 (52) (55) Profit After Tax 1,200 502 (365) (96) PAT Margin 11.30% 5.18% NA NA Other Comprehensive Income (2) (4) (2) - Total Comprehensive Income 1,198 498 (367) (96) Diluted EPS (INR per share) 23.12 9.61 (7.08) (1.85) 13 Standalone Balance Sheet PARTICULARS (INR Mn) FY20 FY21 PARTICULARS (INR Mn) FY20 FY21 Equity 6,730 6,346 Non Current Assets 7,665 8,094 a) Property, Plant and Equipment 4,635 5,189 Equity Share Capital 336 336 b) Other Intangible assets - - Other Equity 6,394 6,010 c) Capital Work In Progress 767 579 Non Current Liabilities 1,124 1,113 d) Investment in Subsidiary/Associate 1,402 1,403 a) Financial Liabilities e) Financial Assets (i) Borrowings 960 952 (i) Investments 1 1 (ii) Trade Payables 1 5 (ii) Trade Receivable 20 12 (iii) Other Financial Liabilities 10 12 (ii)Other financial assets 108 119 f) Other Assets 732 694 b) Provisions 135 144 g) Deferred Tax Assets - 97 c) Deferred Tax Liabilities (Net) 18 - Current Assets 3,210 2,836 d) Other Non Current Liabilities - - a) Inventories 970 1,069 Current Liabilities 3,021 3,471 b) Financial Assets a) Financial Liabilities (i) Investments - - (i) Borrowings 6 6 (ii) Trade Receivables 1,887 1,446 (ii) Trade Payables 1,798 2,072 (iii)Cash and Cash Equivalents 55 40 (iv)Bank balances other than above 13 17 (iii) Other Financial Liabilities 779 950 (v) Loans 146 94 b) Other Current liabilities 350 421 (vi)Other financial assets 31 43 c) Provisions 18 22 c) Current Tax Assets (Net) - 5 d) Current Tax Liabilities (Net) 70 - d) Other Current Assets 108 122 GRAND TOTAL -EQUITIES & LIABILITES 10,875 10,930 GRAND TOTAL –ASSETS 10,875 10,930 14 Historical Consolidated Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 Q1-FY22 Revenuefrom Operations 13,938 13,054 9,570 2,928 Total Expenses 11,628 11,193 8,744 2,727 EBITDA 2,310 1,861 826 201 EBITDA Margin (%) 16.57% 14.26% 8.63% 6.86% Other Income 27 53 22 4 Depreciation 376 444 461 127 Finance Cost 51 49 40 10 PBT 1,910 1,421 347 68 Tax 334 264 129 - Profit After Tax 1,576 1,157 218 68 PAT Margin (%) 11.31% 8.86% 2.28% 2.32% Income from Associate 65 2,598 2,307 838 Other Comprehensive Income (2) (5) (1) - Total Comprehensive Income 1,639 3,750 2,524 906 DilutedEPS (INR per share) 31.62 72.34 48.69 17.47 15 Consolidated Balance Sheet PARTICULARS (INR Mn) FY20 FY21 PARTICULARS (INR Mn) FY20 FY21 Equity 19,334 21,844 Non Current Assets 18,919 21,575 Equity Share Capital 336 336 a) Property, Plant and Equipment 5,062 5,591 Other Equity 18,998 21,508 b) Other Intangible assets 56 42 c) Capital Work In Progress 785 584 Non Current Liabilities 1,164 1,125 d) Investment in Subsidiary/Associate 12,140 14,447 a) Financial Liabilities e) Financial Assets (i) Borrowings 960 952 (i) Investments 1 1 (ii) Trade Payable 1 5 (ii)Trade Receivable 20 12 (iii) Other Financial Liabilities 10 12 (iii) Other financial assets 120 131 b) Provisions 145 156 f) Other Assets 735 695 c) Deferred Tax Liabilities (Net) 48 - g) Deferred Tax Assets(Net) - 72 d) Other Non Current Liabilities - - Current Assets 5,119 5,425 a) Inventories 1,427 1,690 Current Liabilities 3,540 4,031 b) Financial Assets a) Financial Liabilities (i)Trade Receivables 3,204 3,293 (i) Borrowings 6 6 (ii) Cash and Cash Equivalents 124 74 (ii)Trade Payables 2,182 2,563 (iii)Bank balances other than above 29 30 (iii)Other Financial Liabilities 783 960 (iv) Loans 144 92 b)Other Current liabilities 449 478 (v) Other financial assets 31 44 c) Provisions 20 22 c) Current Tax Assets (Net) - 5 d)Current Tax Liablities (Net) 100 2 d) Other Current Assets 160 197 GRAND TOTAL -EQUITIES & LIABILITES 24,038 27,000 GRAND TOTAL –ASSETS 24,038 27,000 16 Consolidated Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & PAT (INR Mn) & PAT Margins (%) EBITDA Margins (%) 13,938 15.94% 16.57% 1,576 13,054 14.26% 11,983 11,352 13.27% 2,310 1,267 1,157 9,570 1,810 1,861 8.63% 1,095 1,590 2.28% 826 9.14% 11.16% 11.31% 8.86% 218 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 RoEand RoCE Net Debt : Equity Net Worth (INR Mn) ROE (%) ROCE (%) 26% 25% 21,844 19% 0.16 19,334 15,673 11% 9% 10% 12% 0.1 14,047 0.08 10,324 11% 0.04 0.04 7% 2% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 17 Capital Markets Share Price Data as on 30th June, 2021 Kiri Sensex 60% 50% 40% 30% 20% 10% 0% -10% -20% Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Price Data (30thJune,2021) INR Shareholding Pattern as on 30thJune,2021 Face Value 10.0 Market Price 590.4 Public 52 Week H/L 678.7/405.0 31% Promoters 38% Market Cap (Mn) 19,849.6 Equity Shares Outstanding (Mn) 33.6 FII/Banks 31% 1 Year Avg Trading Volume (‘000) 287.8 18 Disclaimer KiriIndustriesLimitedDisclaimer: Theinformationcontainedinthispresentationisonlycurrentasofitsdate.Allactionsandstatementsmadehereinorotherwiseshallbesubjecttotheapplicablelawsandregulationsasamendedfromtimetotime. Thereisnorepresentationthatallinformationrelatingtothecontexthasbeentakencareoffinthepresentationandneitherweundertakeanyobligationastotheregularupdatingoftheinformationasaresultof newinformation,futureeventsorotherwise.Wewillacceptnoliabilitywhatsoeverforanylossarisingdirectlyorindirectlyfromtheuseof,relianceofanyinformationcontainedinthispresentationorforany omissionoftheinformation.Theinformationshallnotbedistributedorusedbyanypersonorentityinanyjurisdictionorcountriesweresuchdistributionorusewouldbecontrarytotheapplicablelawsor Regulations.Itisadvisedthatpriortoactinguponthispresentationindependentconsultation/advisemaybeobtainedandnecessaryduediligence,investigationetc.maybedoneatyourend.Youmayalsocontact usdirectlyforanyquestionsorclarificationsatourend.Thispresentationcontaincertainstatementsoffutureexpectationsandotherforward-lookingstatements,includingthoserelatingtoourgeneralbusiness plansandstrategy,ourfuturefinancialconditionandgrowthprospects,andfuturedevelopmentsinourindustryandourcompetitiveandregulatoryenvironment.Inadditiontostatementswhichareforwardlooking byreasonofcontext,thewords‘may,will,should,expects,plans,intends,anticipates,believes,estimates,predicts,potentialorcontinueandsimilarexpressionsidentifyforwardlookingstatements.Actualresults, performancesoreventsmaydiffermateriallyfromtheseforward-lookingstatementsincludingtheplans,objectives,expectations,estimatesandintentionsexpressedinforwardlookingstatementsduetoanumber offactors,including withoutlimitationfuturechangesordevelopmentsinourbusiness,ourcompetitiveenvironment,telecommunications technologyandapplication,andpolitical,economic,legalandsocial conditionsinIndia.ItiscautionedthattheforegoinglistisnotexhaustiveThispresentationisnotbeingusedinconnectionwithanyinvitationofanofferoranofferofsecuritiesandshouldnotbeusedasabasisfor anyinvestmentdecision ValoremAdvisorsDisclaimer: ValoremAdvisorsisanIndependentInvestorRelationsManagementServicecompany.ThisPresentationhasbeenpreparedbyValoremAdvisorsbasedoninformationanddatawhichtheCompanyconsidersreliable, butValoremAdvisorsandtheCompanymakesnorepresentationorwarranty,expressorimplied,whatsoever,andnorelianceshallbeplacedon,thetruth,accuracy,completeness,fairnessandreasonablenessof thecontentsofthisPresentation.ThisPresentationmaynotbeallinclusiveandmaynotcontainalloftheinformationthatyoumayconsidermaterial.Anyliabilityinrespectofthecontentsof,oranyomissionfrom, thisPresentationisexpresslyexcluded.ValoremAdvisorsalsoherebycertifiesthatthedirectorsoremployeesofValoremAdvisorsdonotownanystockinpersonalorcompanycapacityoftheCompanyunderreview. For further details, please feel free to contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: kiri@valoremadvisors.com 19