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Owns registrations
which takes 1-3 years to
obtain
Global client base with
~70% business from
exports
Well known brands such
as Megastar, Megacyper,
Megaban, Synergy,
Courage
Intermediate,
Technical Grade &
Formulations
CPC Blue,
Pigment Green,
Pigment Blue
Market leadership in
Blue Pigment with ~7%
global market share
Agrochemicals
Pigments
Strategically located
facility
Caustic-Chlorine;
expanding into
Caustic Potash
Basic Chemicals
chain
Building`an
energy
~5.6
bn in
Invested
icient
INDIA
lastsuf
5 fyrs;
current
capacity with
can ramp up
world class
revenue
up to ` 20.0
Inf rastructure and
bnintegrated value
Drivers in place to
fuel the next phase
of growth. . . .
New Caustic Potash facility at Dahej with capacity of 60 TPD and investment of ` 650
mn financed through internal accruals expected to commence production by
Dec2015
Chemicals witnessed moderate growth due to lower volume growth and reduction in ECU
realizations
Basic
Agrochemicals and Pigments benefitted from increased capacity utilizations which resulted in strong
Agrochemicals
Consolidated net sales up 8% YoY to reach ` 3,331 mn in Q1 FY16 driven by growth in Pigments and
8 Annexure
8 Company Overview
8 Financial Performance
Contents
78
91%
149
PAT for the quarter up 91% to reach ` 149 mn driven by increase in EBITDA and also decrease in
minority interest from ` 62 mn in Q1 FY15 to ` 39 mn in Q1 FY16
Margins benefitted from softening of raw materials prices (raw materials cost increased 3% YoY vs
sales growth of 8% YoY) and decrease in other expenditure (decreased 2% YoY) partially offset by
increase in personnel cost by 15% YoY
* Minority interest refers to the portion of subsidiarys stock not owned by MOL
EBITDA for the quarter up 37% YoY at ` 683 mn with EBITDA margin at 20.5% (vs 16.2% in Q1 FY15)
140
35%
188
499
37%
683
PAT before
Minority*
Net sales up 8% YoY to reach ` 3,331 mn in Q1 FY16 driven by growth in Pigments (14% YoY) and
Agrochemicals (12% YoY)
3,078
8%
3,331
EBITDA
Q1 FY15
Q1 FY16
Net Sales
Consolidated, Figures in ` mn
Pigments
33%
Other segment decreased by 16% due to strategic decision of the company to focus more on the
higher value manufacturing activities
Basic Chemicals grew 7% due to comparatively lower volume growth and reduction in
Electrochemical Unit (ECU) realization
Agrochemicals business grew 12% driven by increased volumes of 2-4 D, Cypermethrin and
formulations
Agrochemicals
31%
Pigments
32%
Pigments business increased by 14% in Q1 FY16 driven by sales of Alpha Blue manufactured at
Dahej SEZ plant (not there in Q1 FY15)
Basic
Chemicals
26%
Others
11%
Q1 FY15
Agrochemicals
33%
Basic
Chemicals
26%
Others
8%
Q1 FY16
Consolidated, Figures in ` mn
900
950
1,000
1,050
1,100
1,150
EBIT Margins
Net Sales
-2%
900
1,000
3%
950
1,050
8%
13%
1,100
Net Sales
Q1 FY15
968
9%
12%
EBIT Margins
Q1 FY16
1,088
16%
Agrochemicals
760
0%
7805%
860
20%
840
15%
820
80010%
Net Sales
Q1 FY15
800
24%
Margins impacted due to lower volume growth and ~2% reduction in ECU realization
Margins increased from 9% to 16% driven by substantial reduction in raw material prices and
improved capacity utilization
EBIT Margins
Q1 FY16
10%
15%
20%
25%
Margins more than doubled from 5% to 11% driven by improved operational performance which
resulted in better absorption of overheads; the segment also benefitted because of exchange rate
gains
7%
855
21%
Basic Chemicals
Net sales from Pigment business increased to ` 1,111 mn in Q1 FY16, up 14% YoY
Q1 FY16
14%
1,111
11%
Q1 FY15
978
5%
Pigments
Consolidated, Figures in ` mn
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2,000
250
1,500
200
1,000
3,500
350
3,000
300
2,500
400
4,000
31%
Q1 FY15
Volume (in MT)
2,581
375
200
1,000
250
11,000
300
21,000
350
31,000
400
41,000
Q1 FY16
Price (` /kg)
3,389
321
Agrochemicals
However, realizations were down 14% YoY due to pressure on selling price as a result of reduction in
raw material price
Q1 FY16
Price (` /kg)
33,756
27.5
However, realizations were down 8% due to pressure on selling price as a result of reduction in raw
material price
11%
Q1 FY15
Volume (in MT)
30,389
28.1
Basic Chemicals
Volumes of the Pigments business grew 21% YoY to reach 3,504 MT in Q1 FY16
Price (` /kg)
Q1 FY16
3,504
350
21%
Q1 FY15
2,899
381
Pigments
Consolidated, Figures in ` mn
20
22
24
26
28
30
Exports
58%
Pigments
Agrochemicals
Basic Chemicals
Others
Total
77%
72%
1%
99%
58%
Exports
23%
28%
99%
1%
42%
Domestic
Q1 FY16
Segmental breakdown
Domestic
42%
Q1 FY16
75%
73%
1%
97%
57%
Exports
25%
27%
99%
3%
43%
Domestic
Q1 FY15
Exports
57%
Domestic
43%
Q1 FY15
Consolidated, Figures in ` mn
Q1 FY16
61%
Q1 FY15
60%
71%
Q1 FY16
Agrochemicals
Q1 FY15
105%
Basic Chemicals
Q1 FY16
83%
10
Reduction in utilization levels for Basic Chemicals as the capacity has increased from 1,19,000 MTPA
in Q1 FY15 to 1,66,600 MTPA in Q1 FY16
Q1 FY15
51%
Pigment
8 Annexure
8 Company Overview
8 Financial Performance
Contents
11
Strengths
Backward
Integration
Installed Capacity
Established in
Long
term
client
relationships with 90%
business
from
repeat
clients
Owns
registrations
that take 1-3 years to
obtain
In-house production of
intermediates
and
technical grade - used to
manufacture
formulations (Bulk and
Brand)
Since 1995
Total: 20,520 MTPA
Agrochemicals
Market leadership in
Blue Pigment with ~7%
global market share
Since 1986
Pigment
Strategically
facility
located
Latest
fourth
generation membrane
cell
technology
imported
from
Asahi
Kasei, Japan
Since 2009
Basic Chemicals
12
Profitability
Profitability
*Deleveraging
Sweating the
Capacity
Increased
ROE/ROCE
Business
Growth
13
Cost reduction
initiatives
Sweating of capacity
increasing utilization at
existing plants
No additional/major
capex required in the
next 2 years
Basic Chemicals
Agrochemicals
Pigments
8 Annexure
8 Company Overview
8 Financial Performance
Contents
14
Particulars
Net sales / income from operations
Other Operating Income
Total Income from Operations
Total Expenditure
Consumption of Raw Material
Personnel Cost
Other Expenditure
EBITDA
Depreciation & Amortisation
EBIT
Interest & Finance Charges
Other Income
PBT before exceptional items
Exceptional items
PBT
Tax Expense
PAT (From ordinary activities)
Extraordinary items
PAT
Minority Expense
PAT after Minority
Q1 FY16
3,331
55
3,386
2,703
1,915
192
595
683
192
491
179
4
316
316
127
188
188
39
149
Q1 FY15
3,078
50
3,127
2,628
1,851
167
610
499
202
297
177
18
138
138
(2)
140
140
62
78
YoY (%)
8%
11%
8%
3%
3%
15%
-2%
37%
-5%
65%
1%
-80%
129%
NM
129%
NM
35%
NM
35%
-36%
91%
Consolidated
Q4'FY15
QoQ (%)
2,875
16%
75
-26%
2,950
15%
2,393
13%
1,614
19%
185
4%
594
0%
557
23%
198
-3%
358
37%
161
11%
30
-88%
227
39%
2
NM
225
40%
(1)
NM
226
-17%
NM
226
-17%
71
-44%
155
-4%
15
FY15
12,678
264
12,942
10,911
7,640
725
2,545
2,031
747
1,284
746
64
602
2
600
140
460
460
21
439
Figures in ` Million
Particulars
Net sales / income from operations
Other Operating Income
Total Income from Operations
Total Expenditure
Consumption of Raw Material
Personnel Cost
Other Expenditure
EBITDA
Depreciation & Amortisation
EBIT
Interest & Finance Charges
Other Income
PBT before exceptional items
Exceptional items
PBT
Tax Expense
PAT (From ordinary activities)
Extraordinary items
PAT
Minority Expense
PAT after Minority
Q1 FY16
2,435
55
2,490
2,147
1,452
143
552
343
90
253
108
1
146
146
83
63
63
63
Q1 FY15
2,205
49
2,254
2,054
1,396
125
534
200
87
113
112
11
12
12
8
5
5
5
QoQ (%)
21%
-26%
19%
16%
19%
5%
12%
39%
0%
61%
-10%
-93%
157%
NM
572%
NM
333%
NM
333%
NM
333%
16
FY15
9,219
263
9,482
8,483
5,813
544
2,126
998
350
648
477
186
358
35
322
60
262
262
262
Figures in ` Million
(Distribution)
(Distribution)
Meghmani Overseas FZE
(Distribution)
P T Meghmani Organics Indonesia
(Distribution)
Meghmani Organics USA INC.
(Caustic Manufacturing)
Corporate
Bodies, 7.4%
Singapore
Depository
Shares,
15.8%
Public &
Others,
25.4%
FII/DII, 1.0%
No of shares: 254 mn
Shareholding Pattern
(June 30, 2015)
* 25% stake in Meghmani Finechem Limited held by IFC Washington and remaining 18% by individual promoters
100%
100%
100%
100%
57%
MOL
Corporate Structure
Promoters,
50.4%
17
MOL undertakes no obligation to publicly revise any forward looking statements to reflect future / likely
events or circumstances.
These factors include, but are not limited to, general market, macro-economic, governmental and
regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological
developments, changes in the financial conditions of third parties dealing with us, legislative developments,
and other key factors that could affect our business and financial performance.
While these forward looking statements indicate our assessment and future expectations concerning the
development of our business, a number of risks, uncertainties and other unknown factors could cause
actual developments and results to differ materially from our expectations.
This presentation contains statements that contain forward looking statements including, but without
limitation, statements relating to the implementation of strategic initiatives, and other statements relating
to MOLs future business developments and economic performance.
Disclaimer
18
Email: ir@meghmani.com
Phone: +91-79-71761000
Contact us
19