Monday, September 17, 2018

Meghmani Organics Limited (MOL) - Q1 results - investor presentation


Meghmani Organics Limited (MOL)
Q1 results investor presentation

ABOUT MOL

·       Presence in more than 75 countries

·       Subsidiaries in the Indonesia, Dubai, Europe and a representative office in China

·       4 Ware houses in Turkey, Russia, USA and Uruguay

·       7 Dedicated manufacturing facilities in India

·       STRONG LEADERSHIP

·       MR.JAYANTI PATEL EXECUTIVE CHAIRMAN
·       MR.ASHISH SOPARKAR – MANAGING EDITOR
·       MR.NATWARLAL PATEL – MANAGING DIRECTOR

PIGMENTS

·       Amongst Top 3 Global Phthalocyanine Based Pigment Players
·       14% Global Market Share
·       32.6% Of Overall Company Revenues

AGRO CHEMICALS

·       One Of the Largest Producers Of Pesticides In India
·       Products Across Entire Value Chain
·       35.6% Of Overall Company Revenues

Basic Chemicals

·       4th Largest Caustic-Chlorine Player In India
·       One Of the Lowest Cost Producers Of Caustic Soda In India
·       33.1% Of Overall Company Revenues

SUSTAINABLE COMPETITIVE ADVANTAGES

·       Rich experience of founding members
• Highly qualified technical staff 

Diversified Customer Base

• 400+ customer base in Pigments & Agro-Chemicals across diverse industries
• 2,800 stockists, agents,  distributors and dealers across India
• Close to 50%of revenue derived from export market

CONSISTENT REVENUE GROWTH

• Revenues have grown at CAGR of 11.2% over FY14-18, with higher contribution from Basic chemicals

• Improving capacity utilization and completion of on-going Rs.6.4 Bn capex will further provide significant growth and higher margin (by june 19)

• EBITDA margin has improved from 16.6% to 23.9%over FY14-18

Robust Return Ratios

• ROCE– 8.7%in FY14 to 23.9%in FY18
• ROE– 6.0%in FY14 to 24.2%in FY18

·       STRONG FREE CASH FLOW GENERATION
• D/E reduced from1.24x in FY14 to 0.35x in FY18
·       2018 :  MOL gave successful exit to IFC from MOL by
purchasing 24.97% for Rs2,212 Mn

SHARE OF EXPORTS

·       Pigments – 79%;    Agro Chemicals – 67%
·       Basic Chemicals – 5%;  Total Revenues – 52%

PIGMENTS BUSINESS: HIGHLIGHTS

 Largest Manufacturers Of Phthalocynione Based Pigments -14% Global Market Share –Among Top 3
Presence In 70 Countries
Subsidiaries In Us, Indonesia, Dubai And A Rep Office In China
90% Business From Repeat Clients
Vertically Integrated Manufaturing Facilities
Ahmedabad – 2940 Mtpa
Bharuch -17,400
Dahez – 12,600

GLOBAL PIGMENT MARKET

3 Segments – Organic, Inorganic And Speciality Pigment
India, China Leaders In Organic Pigments
India Leads In Phthalocyanine – Blue And Green Pigments

AGROCHEMICLAS BUSINESS HIGHLIGHTS

Leading Manufacturer Of Pesticides
Global Presence –Africa, Brazil, Lat Am, US And Europe
17 States In India
Over 36 Brands
Total Capacity -28260 Mtpa
Panoli – 7200 Mtpa; Ankleshwar – 6,420 Mtpa, Dahej – 14,640 Mtpa

BASIC CHEMICALS BUSINESS :

4th Largest Cuastic Chlorine Producer In India
Latest Technology From Japan
One Of The Most Efficient Caustic Soda Producers
New 60 Tpd Facility To Manufacture Cuastic Potash
CAUSTIC SODA, CHLORINE,SODA ASH,CAUSTIC POTASH

DAHEJ FACILITY 

CAUSTIC-CHLORINE – 166600 MTPA
CAUSTIC POTASH – 21000 MTPA

RS.6.4 BN CAPEX PLAN

3 PROJECTS (1) By Dec’18 :18,40,000MTPA; CHLOROFORM,CARBON TETRA CHLORIDE,MDC
(2)BY JUNE 19 :2,71,600MTPA CAUSTIC SODA
(3) JUNE 19 : 30,000 MTPA HYDROZEN PEROXIDE
MARGIN ACCRETIVE, HIGHER EBITDA MARGINS IN BASIC CHEMICALS

GLOBAL CHLOR-ALKALI MARKET

The global Chlor-Alkali industry is expected to grow at 5.3-5.9%CAGR(2017-2023), to reach USD125Bn by 2023
• Indian Chlor-Alkali Industry is poised to grow a CAGR of 6.5% during 2017-2022

Revenue Target Rs.10 Bn From Each Business Segment

• The Rs.6.4 Bn on-going capex plan provides a solid revenue growth visibility over coming years

Q1 FY 19 RESULTS ANALYSIS VIS A VIS Q1 FY 18

REVENUE GROWTH : 4212 ML TO 4765 MN BY 13.1%
GROSS MARGIN : FROM 45.5% TO 51.9%
EBITDA : FROM 912 MN TO 1240 MN BY 36&
EBITDA MARGIN : FROM 21.7% TO 26%
PAT : FROM 433 MN TO 771 MN (GROWTH OF 78%
PAT MARGIN :FROM 10.3% TO 16.2%
PAT AFTER MINORITY – 637 – 329 – 94%
MP : 87 year before :84 52 w Low/High : 72/129.40
EQUITY :25.43 CR
EPS 1.29 TO 2.50
FV :Rs.1

PUBLIC SHAREHOLDING – 39.2%
PROMOTERS – 50.3%

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