Sudarshan Chemical Industries Limited Investor Presentation June, 2019
Safe harbour statement This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our exposure to changes in general economic conditions, market, Foreign currency and other risks, changes in government policies/regulations, tax regimes as also technological changes. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of subsequent development, information or events or otherwise.
Financial Overview June, 2019
Performance Highlights Income from Operations ( In ₹ Cr ) EBITDA* ( In ₹ Cr & Margin%) 404 404 69 69 397 397 solidated View 62 62 363 363 360 360 349 349 58 58 50 50 17.0% 16.1% 15.7% 34 34 13.8% Conso 9.7% Co Q1FY1 Y19 Q2FY1 Y19 Q3FY1 Y19 Q4FY1 Y19 Q1FY2 Y20 Q1FY1 Y19 Q2FY1 Y19 Q3FY1 Y19 Q4FY1 Y19 Q1FY2 Y20 FY19 ₹ 1,477 Cr FY19 ₹ 211 Cr @ 14.3% • Consolidated Q1FY20 income from operations at ₹ 397 cr, a growth of 10% as compared to Q1FY19. • Special alty pigments port rtfolio volume gre grew 13 13% YoY an and Non-Special alty port rtfolio gre grew 4% YoY. • Q1FY20 exports as a % of revenue at ~49%. • EBITDA Margins at 15.7% down marginally as compared to Q1FY19. Our efforts for fixed cost optimization and savings in manufacturing overheads continued over the quarter. • FY20 planned capex stands at INR 200 cr. EBITDA * as percent to Total Income from operations (excluding other income) Previous quarter / year figures have been restated and do not include financials of discontinued operations Note No te: Specia ialt lty portf rtfoli lio in inclu ludes Azos, Hig igh Perf rform rmance Pig igments ts, Cosmeti tics an and Pig igment Dis ispers rsio ions. Non-Specia ialt lty portf rtfoli lio includes Blue & Green Pi Pigm gments, Inorg rganic pigm gments ts an and Industri rial effect pigm gments
Gross Margin Performance 44.2% 42.8% 41.8% 40.6% 39.6% solidated View Conso Co Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 FY19 @ 41.8% • Q1FY20 Gross Margins improved to ~42% as compared to Q4FY19 Gross Margins which were at ~40%; this is despite continuing of pressure on select intermediates. • Margins improved at the back of customer pass through of input price escalations. Previous quarter / year figures have been restated and do not include financials of discontinued operations.
Key Ratios Return on Capital Employed (annualized) Debt - Equity Ratio 19.4% 15.6% 0.6 0.5 FY19 Q1FY20 FY19 Q1FY20 Current Ratio Earnings per Share (annualized)* 1.4 1.4 17.6 12.7 FY19 Q1FY20 FY19 Q1FY20 Ratios on a consolidated basis. Previous quarter / year figures have been restated and do not include financials of discontinued operations * Earnings per share calculated excluding exceptional items
About Sudarshan
Our Company at a glance… We are a leading world-class color solutions provider with a focus on exceptional and sustainable results. CONSO SOLIDATED MARKET GEOGRAPHIC PEOPLE BUSINESS BU SS REVENUES S CAPITALIZATION CA 50+ sales team. REAC ACH FOCU CUS 60+ channel partners. FY19 turnover at INR ~2,200 cr+ Largest pigment Pigment 2,000+ global $212 Mn Listed on BSE (1981) Focus. Don’t producer in India. workforce. & NSE (1995) compete with Exports to 85+ countries. customers.
Our Mission, Vision & Values Our growth is fueled by an immense drive to be a leading player in our field. MISSION World class Global Color Solution provider with an innovative and vibrant culture VISION To be amongst the top three pigment players in the world VALUES Seva (Service), Courage, Commitment and Passion, Respect, Trust
Our Journey Evolution of Sudarshan from a local player to a global player is result of a well crafted strategy. Establishing the Business Going g Global Next leap in Technology gy 1952 - 1989 1989 1989 - 2006 2006 2006 - 2018 2018 Scaled up infrastructure to world Efforts largely domestic with Building technical capabilities & class standards limited portfolio range infrastructure Footprints in Europe & USA Manufacturing plant in Mahad Net revenue at ₹ 400 Cr for Pthalos & Effect Pigments FY06 Manufacturing Improved plant in Roha portfolio with HPPs and Effects Listed on for Cosmetics NSE Manufacturing plant in Pune Net revenue Listed on at ₹ 1,000 Cr Inception of BSE FY14 Sudarshan State of art technology centre at Sutarwadi
Our Global Presence Exports to 85+ countries with 50+ sales members GLOBAL HEAD OFFIC GL ICE Sudarshan Chemical Industries Limited NOR NORTH AM AMERI ERICA Sudarshan North Americas Inc. EUR EUROPE OPE Sudarshan Europe B.V. CHI HINA MEX EXICO Sudarshan (Shanghai) Trading Co Ltd. Sudarshan Mexico S. de R.L de CV.
Our Product Portfolio PIGMENTS PI ORGANIC INOR ORGANIC Azo EFFE EFFECT Chromes Phthalos Mica base for Cadmiums HPPs industrial and Iron Oxides Dispersions cosmetics Org rganic Pigme gments Colored material made of organic compound with pigment properties. Commonly used for Coatings, plastics, Inks & Textile applications. Inorganic Pigme gments Made up of mineral compounds. Are mainly oxides, sulphides of one or more than one metals. Used for plastics and industrial coatings. Eff ffect Pigme gments ts Pigments with mica base and coated with oxides to give shimmer and glow. Mainly used in plastics, automotive coatings, cosmetics applications
Pigments Application Sudarshan is uniquely placed to offer a comprehensive range - general purpose grades, high performance and effect pigments. COATINGS GS COSM SMETICS PLAS ASTICS INK NKS A pallete with a wide Effect pigments for High performance and General purpose and high spectrum of colors and cosmetics & personal care special effect for the performance pigments for performance for plastic applications. coating industry. inks. applications. Enjoy leadership position A strategically important Focus on niche in plastics segment in Our key focus area with growth area for applications in the ink multiple geographies; targeted significant Sudarshan; we continue industry with necessary attributed to our detailed growth in the automotive building capabilities in expertise in offset and know-how of the and decorative segments. end application. liquid ink segments. industry.
Our Technical Capability PEOPLE • 100+ Scientists & Technical resources • Global experts' panel for competency enhancement • Analytical & Application Lab experts INFR FRASTRUCTURE • Dedicated site for R&D with investments > USD 10Mn • State of art equipment for characterization and composition analysis • Ability to handle crystal modification & surface treatments • Ability to ensure reproducibility in end application PROC OCESS • Stage Gate Process • DOE approach to solutions
Our Infrastructure We spend over $4M every year on research, development & technical service and over $2M on environmental compliance with a $3.4M effluent plant. Manufacturing Site: Roha Manufacturing g Site: Mahad Built in 1973; 1100+ trained team members. Built in 1993; 500+ trained team members. Products Manufactured: AZO, HPP, Effect Pigments, Dispersions Products Manufactured: B&G, HPP, Effect Pigments Our Manufacturing Plants with Modern Water Treatment Facility and Certified by BSC and having won Sword of Honour for Safety.
Global Pigments Market Overview Global Colour Pigment Market* - Relevant to Sudarshan • Our estimate of the Global Colour Pigments Market is ~$ 10B, market opportunities open to Sudarshan are US USD 0.6 ~$ 8.6B. Billion Bi • Global Organic Pigment market is expected to grow at ~3% CAGR over the next 5 years. 3.0 • India is set for strong, sustainable growth in pigment manufacturing with substantial export opportunities. 5.0 • Sudarshan is well placed to expand market share for all its applications. • We expect this strong growth to come from our coatings, inks, plastics and cosmetics segments. Organic Inorganic Effect * Excludes Black, White and Metallic Pigments. Based on internal Pigment industry study and various market research reports
Our Pillars of Growth Growth will come from a focused approach to broaden product portfolio and renewed application focus. 01 01 Product Portfolio • Enhance Product Portfolio across • Organic (especially HPPs and Inks) • Inorganic HPPs • Effect Pigments • Solvent Dyes 02 02 Application Focus • Continued focus on decorative coatings and plastics • Additional focus on Automotive Coatings, Industrial Effects & Cosmetics 03 03 Geographic Presence • Expand global footprint to newer geographies, and gain market shares in US, EU and China
Recommend
More recommend
