Professional Documents
Culture Documents
(MOL)
Q3 FY16 Investor Presentation
February 2016
Pigments
Agrochemicals
Basic Chemicals
CPC Blue,
Pigment Green,
Pigment Blue
Intermediate,
Technical Grade &
Formulations
Caustic-Chlorine;
expanding into
Caustic Potash
Market leadership in
Blue Pigment with ~7%
global market share
Owns registrations
which takes 1-3 years to
obtain
Strategically located
facility
Basic Chemicals reported strong increase in both volumes (up 12%) and ECU realizations (up 15%)
Pigments witnessed 15% volume increase; realizations impacted due to passing on of benefits
of
Agrochemicals business reported 15% increase in volumes; realizations impacted due to change in
product mix to match the demand pattern
EBITDA increased 71% in the quarter to Rs 707 mn driven by improved operational performance,
especially in the Basic Chemicals division
Pigments business performed well driven by domestic Pigments business (up 87% YoY)
PAT at Rs 232 mn as compared with Rs (46) mn in Q3 FY15; benefitting from
improved operational performance, lower finance charges and lower tax liability
New Caustic Potash facility at Dahej with capacity of 60 TPD and investment of Rs
650 mn financed through internal accruals expected to commence production by
April 2016
3
Contents
Financial Performance
Company Overview
Annexure
Net Sales
Q3 FY16
Q3 FY15
EBITDA
PAT before
Minority*
3,074
707
342
232
4%
71%
NM
NM
2,958
413
(81)
(46)
Net sales increased 4% YoY to Rs 3,074 mn in Q3 FY16 driven by strong performance of Basic
Chemicals
EBITDA for the quarter up by a significant 71% YoY to Rs 707 mn with EBITDA margin at 23% (vs 14%
in Q3 FY15)
Margins benefitted from improved operations performance, softening of raw materials prices (raw
materials cost decreased 14% YoY) partially offset by increase in personnel cost (9% YoY) and increase
in other expenditure (2% YoY)
PAT before minority interest increased from Rs (81) mn in Q3 FY15 to Rs 342 mn in Q3 FY16
benefitting from strong operational performance coupled with lower interest charges
PAT for the quarter at Rs 232 mn compared with Rs (46) mn in Q3 FY15 benefitting from improved
performance and lower tax liability due to deferred tax for Basic Chemicals
Minority interest refers to the portion of a subsidiarys stock not owned by MOL. Meghmani Finechem is a 57% owned subsidiary of MOL
Q3 FY16
Q3 FY15
Others
10%
Others
11%
Basic
Chemicals
31%
Pigments
33%
Agrochemicals
26%
Basic
Chemicals
25%
Pigments
33%
Agrochemicals
32%
Basic Chemicals reported a strong quarter with 29% YoY growth in net sales driven by both volume
increase (12% YoY) and ECU realizations increase (15% YoY)
Pigments business up 5% in Q3 FY16 driven by 15% growth in volumes; however realizations were
down 8% YoY due to passing on benefits of reduction in raw material prices and operational
efficiencies to long term clientele
Agrochemicals business decreased by 13% YoY - volumes were up 15% YoY; however realizations fell
24% YoY due to change in product mix to match the demand pattern
Note: Sales breakdown includes intersegment sales of Rs 236 mn in Q3 FY16 and Rs 217 mn in Q3 FY15
Others business segment includes merchant trading
Pigments
1,150
Agrochemicals
18%
1,100
1,050
950
1,039
1,091
900
800
10%
700
600
5%
500
850
1,20020%
14%
1,000
15%
900
11%
1,000
20%
1,100
12%
1,010
Basic Chemicals
1,100
15%
1,000
90010%
874
800
5%
700
6000%
38%
33%
22%
23%
786
18%
Q3 FY16
Q3 FY15
Q3 FY16
Q3 FY15
Q3 FY16
Net Sales
EBITDA Margins
Net Sales
EBITDA Margins
Net Sales
EBITDA Margins
EBITDA margins improved from 11% to 18% driven by improved operational performance and lower
commodity prices significantly benefitting raw material costs
28%
1,012
Q3 FY15
43%
40%
Margins decreased from 14% to 12% - third quarter is usually a muted season and change in product
mix has also impacted performance
Net sales from Basic Chemicals reached Rs 1,012 mn in Q3 FY16, up 29% YoY
Margins approximately doubled from 22% to 40% led by both volume growth and higher ECU
realizations
Pigments
3,500
367
3,300
Agrochemicals
336
3,100
3,000
400
2,500
350
3,246
2,700
2,831
2,500
250
1,500
41,000
500
413
2,000
300
2,900
Basic Chemicals
2,447
312
400
31,000
2,802
300
21,000
200
11,000
100
200
1,000
Q3 FY15
Q3 FY16
Volume (in MT)
Price (Rs/Kg)
26.00
33,176
24.00
37,191
22.00
1,000
0
Q3 FY15
Volume (in MT)
Q3 FY16
Price (Rs/Kg)
20.00
Q3 FY15
Q3 FY16
Volume (in MT)
Price (Rs/Kg)
However, realizations down 8% due to passing on of benefits of reduction in raw material price to long
term customers
28.00
23.686
30.00
27.208
However realizations down 24% impacted by change in product mix to match the demand pattern
ECU realizations also improved 15% compared with Q3 FY15 due to favourable demand supply
scenario
Q3 FY15
Q3 FY16
Domestic
48%
Domestic
40%
Exports
52%
Segmental breakdown
Q3 FY16
Pigments
Agrochemicals
Basic Chemicals
Others
Total
Q3 FY15
Exports
Domestic
Exports
Domestic
656
582
33
330
1,601
273
292
906
2
1,473
745
734
5
304
1,789
145
280
728
15
1,169
Exports
60%
Pigment
Agrochemicals
65%
57%
46%
Q3 FY15
Basic Chemicals
90%
56%
Q3 FY16
Q3 FY15
Q3 FY16
84%
Q3 FY15
Q3 FY16
Note: Capacity of Dahej Agro Plant increased from 8,940 MTPA in Q3 FY15 to 10,260 MTPA in Q3 FY16. The
Agrochemicals business had a higher production of 2,894 MT as compared with 2,749 in Q3 FY15
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Net Sales
9M FY16
9M FY15
EBITDA
PAT before
Minority*
9,806
2,146
781
592
0.03%
46%
234%
109%
9,803
1,475
234
283
Net sales stable YoY at Rs 9,806 mn in 9M FY16 compared with Rs 9,803 mn in 9M FY15. While H1
FY16 was down 2% YoY, Q3 FY16 was up 4% YoY driving 9M FY16 performance
EBITDA for 9M FY16 up 46% YoY at Rs 2,146 mn with EBITDA margin at 22% (vs 15% in 9M FY15)
Margins benefitted from improved operational performance, softening of raw materials prices (raw
materials cost decreased 12% YoY) and decrease in other expenditure (decreased 3% YoY) partially
offset by increase in personnel cost by 11% YoY
PAT before minority interest increased from Rs 234 mn in 9M FY15 to Rs 781 mn in 9M FY16
benefitting from strong operational performance coupled with lower interest charges
Minority interest refers to the portion of subsidiarys stock not owned by MOL
Meghmani Finechem, a 57% owned subsidiary declared dividend which resulted in negative minority interest in 9M FY15
11
Contents
Financial Performance
Company Overview
Annexure
12
Agrochemicals
Basic Chemicals
Established in
Since 1986
Installed Capacity
Backward
Integration
Strengths
Since 1995
Total: 20,520 MTPA
Dahej: 10,260 MTPA
Panoli: 3,600 MTPA
Ankleshwar: 6,660 MTPA
In-house production of
intermediates
and
technical grade - used to
manufacture
formulations (Bulk and
Brand)
Market leadership in
Blue Pigment with ~7%
global market share
Owns
registrations
that take 1-3 years to
obtain
Long
term
client
relationships with 90%
business
from
repeat
clients
Since 2009
Total: (Dahej): 1,66,600
MTPA
located
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Agrochemicals
Basic Chemicals
No additional/major
capex required in the
next 2 years
Business
Growth
Increased
ROE/ROCE
Sweating the
Capacity
Sweating of capacity
increasing utilization at
existing plants
Profitability
Profitability
Cost reduction
initiatives
*Deleveraging
*Plan to reduce debt by Rs 2.25 by March 2017
Contents
Financial Performance
Company Overview
Annexure
15
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
Q3 FY16
3,074
35
3,110
2,402
1,566
203
634
707
193
515
149
11
376
376
35
342
342
110
232
Q3 FY15
2,958
81
3,039
2,626
1,817
186
623
413
191
222
211
7
18
18
99
(81)
(81)
(36)
(46)
Consolidated
YoY (%)
Q2 FY16
4%
3,401
-56%
55
2%
3,456
-9%
2,701
-14%
1,835
9%
202
2%
663
71%
756
1%
193
132%
563
-29%
186
55%
8
2005%
385
NM
2005%
385
-65%
134
NM
251
NM
NM
251
NM
41
NM
211
QoQ (%)
-10%
-36%
-10%
-11%
-15%
1%
-4%
-6%
0%
-9%
-20%
34%
-2%
NM
-2%
-74%
36%
NM
36%
170%
10%
9M FY16 9M FY15
9,806
9,803
145
189
9,952
9,992
7,806
8,518
5,316
6,026
598
541
1,892
1,951
2,146
1,475
577
549
1,569
926
514
585
22
34
1,077
374
1,077
374
296
141
781
234
781
234
189
(50)
592
283
YoY (%)
0%
-23%
0%
-8%
-12%
11%
-3%
46%
5%
69%
-12%
-34%
188%
NM
188%
110%
234%
NM
234%
NM
109%
16
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
Q3 FY16 Q3 FY15
2,119
2,238
35
80
2,154
2,318
1,867
2,051
1,163
1,397
149
141
555
514
287
267
91
88
196
179
119
127
10
6
87
58
87
58
22
14
65
44
65
44
65
44
Standalone
YoY (%)
-5%
-56%
-7%
-9%
-17%
6%
8%
7%
3%
9%
-6%
64%
49%
NM
49%
49%
49%
NM
49%
NM
49%
Q2 FY16
2,493
55
2,547
2,103
1,394
151
558
445
90
354
99
4
259
60
200
90
110
110
110
QoQ (%)
-15%
-36%
-15%
-11%
-17%
-1%
-1%
-35%
1%
-45%
20%
147%
-66%
NM
-56%
-76%
-41%
NM
-41%
NM
-41%
9M FY16 9M FY15
7,046
7,201
145
189
7,191
7,389
6,117
6,638
4,009
4,598
444
408
1,664
1,632
1,074
751
272
260
802
491
327
356
16
165
492
301
60
432
301
194
53
238
248
238
248
238
248
YoY (%)
-2.1%
-23.4%
-3%
-8%
-13%
9%
2%
43%
5%
63%
-8%
-90%
64%
NM
44%
265%
-4%
NM
-4%
NM
-4%
17
Shareholding Pattern
(December 31 , 2015)
No of shares: 217 mn
MOL
57%
100%
100%
100%
100%
(Distribution)
Meghmani Organics USA INC.
(Distribution)
P T Meghmani Organics Indonesia
(Distribution)
Meghmani Overseas FZE
Public &
Others
39.2%
Promoters
59.6%
FII/DII
1.2%
(Distribution)
18
Disclaimer
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.
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.
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.
MOL undertakes no obligation to publicly revise any forward looking statements to reflect future / likely
events or circumstances.
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Contact us
For any Investor Relations queries, please contact:
Email: ir@meghmani.com
Phone: +91-79-71761000
20