July 31, 2020 The General Manager The Manager, Listing Department Corporate Relations Department National Stock Exchange of India Ltd Exchange Plaza, 5 th Floor, Plot No. BSE Limited Phiroze Jeejeebhoy Towers G Block, Bandra-Kurla Complex Dalal Street Bandra (E) Mumbai 400 001 Mumbai 400 051 Scrip Code: 500770 Symbol: TATACHEM Dear Sir/Madam, Sub: Submission of Analysts/Investors Presentation Ref: Letter dated July 20, 2020 informing about Analysts/Investors Presentation Further to our referred letter dated July 20, 2020, please find enclosed a presentation to be made to analysts/investors on the results for the first quarter ended June 30, 2020 for the analysts/investors call to be held on Monday, August 3, 2020. 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 the presentation is also uploaded on the Company's website www.tatachemicals.com. 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
Q1 FY20-21 Financial Results Analyst and Shareholders Communication 31 July 2020 1
❶ Soda Ash Market Overview ❷ Our Focus Areas ❸ Performance Highlights ❹ Financial Performance Manufacturing With 13 Supported by 3 Employing ~5,000 Footprint across 4 Manufacturing R&D centers with people Continents plants 200 + experts 2
Soda Ash: Global Demand situation Market Size shrinks; Led by Flat Glass Industry • Total (Down 3.8 MMT Total Capacity is estimated to be operating at ~80% vs. historic of vs 2019) 61.9 MMT 58.1 MMT ~86%; Demand reduction of 6% vs 2019 • Reduction in demand from Flat Glass Industry is estimated 20.4 ↓ to be ~18% 20.3 • Soaps & Detergents less impacted with estimated growth of 6.8 ↑ 7.0 ~3% 14.9 • ↓ Solar Glass in Asia continues to grow 14.5 • Container glass and Other glass is down by 3% but recovering 19.8 ↓ 16.3 • Spot prices already seeing a decline, contract prices may Global Global follow soon Demand 2019 Demand 2020 Flat Glass Container & Other Glass Soaps & Detergents Other Chemicals Source: Internal Estimates 3
Soda Ash: Demand and Supply Steep fall in US Export, other regions see muted demand TCL Split between Impact on TCL Business Units Key Highlights Domestic & Exports Vols. (In Kts) Performance • Demand is returning, but growth subdued 163 118 • Flat Glass industry tend to de grow, it’s operations started after 3 months Volumes ↓ ~ 27% India of Lockdown • Good demand from Soaps and Detergents industry Q1 FY20 Q1 FY21 • Container glass fared better than flat glass but still with negative growth 251 288 250 • Domestic Flat Glass demand drop by 20% 138 Domestic Volume ↓ ~13% • Export demand significantly low driven by Flat glass line closures US Export Volume ↓~45% • Container glass demand in export markets also soft Q1 FY20 Q1 FY21 • Domestic Container Glass demand less impacted • Container Glass demand remained relatively stable; minor impact on 68 62 account of closure of hospitality sector UK Volumes ↓ ~9% • Detergent and Bicarb demand grew Q1 FY20 Q1 FY21 • Flat glass lines closed; TCE has negligible sales into that sector 45 41 18 17 Domestic Volume ↓ ~6% • Container Glass demand remained relatively stable Africa Export Volume ↓~10% Q1 FY20 Q1 FY21 4 ` Exports Domestic
Focus Area: Long Term Priority Tata Chemicals Limited Mission : Serving Society through Science Vision: Will be a leading sustainable Science led Company serving customers based on innovative differentiated products and solutions Performance Nutritional Materials Science Science Science Energy Agro Technology (R&D) Ӏ Digitization Ӏ Sustainability Unified Approach, Underpinned by Science and Rooted in R&D Over Values : SPICE {Safety Ӏ Passion Ӏ Integrity Ӏ Care Ӏ Excellence} 5
Investment Alignment with Strategy Mar20 Mar21 Mar22 Mar23 Delay in Months Investment continues IVSD No Change as planned Higher Growth Bicarb No Change Products Agro Sciences No Change Soda Ash Upto 9 months Investment under Stable watch Growth Caustic Upto 12 month Product Cement Upto 12 month Extended period We continue to invest in our expansion projects, with more diligence and caution 6
Performance Highlights Soda Ash Volumes EBITDA Revenue CY CY Q1 FY 21 624 Kts INR 2,348 Cr INR 360 Cr Q1 FY 20 833 Kts IVSD Salt Volumes Margin 15% ↓ 9% vs PY ↓ 460 bps vs PY Q1 FY 21 298 Kts Q1 FY 20 237 Kts Completed refinancing of loan in US for USD 375 million Consolidated Net Debt Highest ever production and sale of IVSD salt June 20 INR 3,760 Crs Mar 20 INR 4,042 Crs Standalone continues to be Debt Free 7
Financial Performance : For the quarter ended June 2020 Standalone | ₹ Crore 750 250 30% Operational PBT Non Operational PBT 250 40% 26% 25% 29% 700 25% 30% 719 200 200 650 17% 20% 20% 250 600 10% 628 15% 159 150 150 550 200 0% 10% 500 206 -10% 189 150 100 39 100 5% 109 156 450 -20% 100 0% 400 133 -30% 50 50 103 -5% 50 350 -40% 300 - -10% - - -50% Q1 Jun19 Q1 Jun20 Q1 Jun19 Q1 Jun20 Q1 Jun19 Q1 Jun20 Q1 Jun19 Q1 Jun20 Revenue down by ₹ 91 Crore ( ↓ 13 %) EBITDA down by ₹ 34 Crore ( ↓ 18 %) PBT down by ₹ 149 Crore ( ↓ 51 %) PAT down by ₹ 97 Crore ( ↓ 47%) Consolidated | ₹ Crore 20% 3,000 800 20% Operational PBT Non Operational PBT 800 30% 18% 700 700 20% 2,500 15% 16% 2,584 9% 600 600 10% 14% 3% 2,348 2,000 500 500 0% 12% 87 1,500 400 10% 400 -10% 231 8% 300 515 300 -20% 1,000 6% 255 360 200 74 200 -30% 4% 59 500 100 2% 100 -40% 51 - - 0% - -50% Q1 Jun19 Q1 Jun20 Q1 Jun19 Q1 Jun20 Q1 Jun19 Q1 Jun20 Q1 Jun19 Q1 Jun20 Revenue down by ₹ 236 Crore ( ↓ 9 %) EBITDA down by ₹ 155 Crore ( ↓ 30 %) PBT down by ₹ 232 Crore ( ↓ 68% %) PAT down by ₹ 157 Crore ( ↓ 68%) 8 Note: * PBT & PAT includes Continuing operations, after Share in JV & associates & before NCI
Financial Performance : Segment Revenues and Results Consolidated Standalone ₹ Crore Q1 Jun19 Q1 Jun20 Variance Q1 Jun19 Q1 Jun20 Variance Basic Chemistry Products 1,949 1,672 (277) 708 612 (96) Segment Revenue Specialty Products 634 676 42 11 16 5 Less: Inter Segment Revenue (3) (3) (0) - - - 2,580 2,345 (235) 719 628 (91) Unallocated Revenue 4 3 (1) - - - Total Segment Revenue 2,584 2,348 (236) 719 628 (91) Basic Chemistry Products 318 112 (207) 204 159 (45) Segment Results Specialty Products 76 93 18 (5) (15) (10) Segment Results 394 205 (189) 200 144 (56) Unallocated Expenses / (Income) (45) (23) 22 (112) (3) 109 Finance Costs 94 118 24 20 4 (15) Profit after exceptional items, before 345 111 (234) 292 142 (149) share of profit of joint ventures and tax 9
Financial Performance : Revenue Movement Revenue Movement | ₹ Crore → On consolidated financials impact on Revenue 2,600 96 from Operation is majorly driven by US 5 2,500 operations. 2,400 226 → Export sales volumes in US operations is 62 impacted ( ↓ 45% vs PY) partially due to COVID 2,300 2,584 9 36 26 lockdown. 2,200 2,348 → Domestic market in US maintained it’s 2,100 resistance. 2,000 Q1 June BCP India SP India TCNA TCE Magadi Rallis SPV & Q1 June FY20 Elim FY21 10
Financial Performance : PBT Movement PBT Standalone Movement | ₹ Crore → Standalone Other Income Breakup: 350 Standalone Q1 FY20 Q1 FY21 300 Dividend Income from JV 72 - 250 159 Dividend Income from Subsidiaries 26 - 200 Interest & Miscellaneous Income 60 39 292 150 52 159 39 23 100 133 104 50 → Other Income of ₹ 39 Crs in Q1 FY21 vs ₹ 159 Cr PY is - due to NIL dividend from JV vs ₹ 72 Cr PY and Rallis PBT Q1 FY20 Other Income PBT Q1 FY20 - Net Fixed & Other PBT Q1 FY21 - Reported Core Production Cost Exoenditure Core dividend NIL vs ₹ 25 Cr PY, which was received in Q1 last year. PBT Consolidated movement | ₹ Crore → Consolidated Other Income Breakup: 350 87 300 Consolidated Q1 FY20 Q1 FY21 250 Interest Income 19 12 200 Dividend & Miscellaneous Income 68 47 342 225 150 87 59 255 100 21 50 51 - PBT Q1 FY20 Other Income PBT Q1 FY20 - Net Fixed & Other PBT Q1 FY21 - Reported Core Production Cost Exoenditure Core 11
Financial Performance : Borrowing Position as on June 2020 Consolidated Debt Position | ₹ Crore 589 95 3,258 7,702 7,018 3,760 Gross Debt Mar20 Net Change Revaluation Gross Debt Jun20 Cash & Cash Equivalents Net Debt • Refinancing of debt in US for USD 375 million completed • Partial repayment of Borrowing in US, UK, Rallis and SPV out of internal accruals Details • Consolidated Cash and Cash Equivalent as on 30 th June 2020 is ₹ 3,258 Cr (vs ₹ 3,660 Cr as on Mar20) • Standalone continues to be Debt Free • Standalone Cash and Cash Equivalent as on 30 th June 2020 is ₹ 1,999 Cr (vs ₹ 2,162 Cr as on Mar20) 12
Recommend
More recommend
