Wednesday, October 24, 2018

BHAGERIA INDUSTRIES - Q2 FY 19 RESULTS -INVESTOR PRESENTATION OCT 2018


BHAGERIA INDUSTRIES
Q2 FY 19 RESULTS &

INVESTOR PRESENTATION OCT 2018

MANAGEMENT :
1.         SURESH BHAGERIA, CHAIRMAN
2.         VINOD BHAGERIA MD
3.         VIKAS BHAGERIA JT MD
4.         CHANDRAPRABHA BHAGERIA EXEC. DR

GOT CHEMEXIL FIRST AWARD FOR SMALL SCALE SECTOR 2015-16

PRODUCTS :-

Dye Intermediates :- H-Acid; Vinyl Sulphone; Gamma Acid

Q2 FY 19 RESULTS

Rs.Cr            Q2FY19  Q2FY18 % Ch
Net Sales      121.6     89.8       35.4%
Total Expenses 79.4    66.9       18.6%
EBITDA         42.2       22.9       84.8%
EBITDA margin 34.7% 25.5% --
PBT               40.6       16.5       146.9%
PAT               28.2       10.7       164.9%
PAT Margin    23.2%    11.9%    --
EPS :5 QTRS : 12.91   8.17       4.87       9.18       5.77
MP :314
P/E : 6.08
VOLUME : 69000
52 W L H : 211 : 365
FV : RS.5
LAST YEAR THIS TIME MP : 303
-      - -  -  -  -  -  -  -  -  -  -
Q1 RESULTS HIGH LIGHTS

NET SALES :+40%YOY
                     +9% QOQ
NET PROFITS : +332% YOY
                           +68% QOQ

ANNUAL HIGH LIGHTS

Rs.Cr            FY 16     FY 17     FY 18
NET SALES    239        374        373
EBITDA         26.5       62.4       79.8
PAT               15.4       43.54     40.3

EXPORTS

Exports Contributing to 44% of Revenues
·       Europe 2%
·       US 2%
·       Asia Pacific 96%

·       Exports 44%
·       Domestic 56%

For H1FY19

·       Increasing geographical diversification
·       Adding newer geographies: started exporting to the US market
·       New client additions : added KISKO Group and Kimsoy Boya
·       Net Long Term Debt Free

·       Repaid over Rs 103 crore debt since Mar’17
·       Total Revenue from solar business (Q2FY19)
·       Rs 6cr PLF (30MW) – 24*

·       Solar project fully commissioned in Maharashtra
 25 year PPA with Solar Energy Corporation of India
(SECI)
 Capacity-30MW
Tariff–Rs4.41/unit
Total project capex–Rs.180 cr

Existing project

Solar rooftop solution -25 year PPA with  Asahi India Glass Ltd, TRIL Ltd, Lucas Ltd & Kajaria Ceramics Ltd.
Capacity –4 MW
Tariff –Rs 6.61/unit

PLANTS :

2 Manufacturing plants
10+ Ship-to-countries
373 Revenue in Rs Cr (FY18)
21% EBITDA Margin(FY18)
500+Employees
33% Return on Capital Employed  (FY18 chemical biz)
EPS Rs 18.5 per share(FY18) (FV Rs.5)
Dividend Rs 5.5 per share (110 % for FY18)


Manufacturing Facilities

Vapi, Gujarat
-Vinyl Sulphone
Boisar, Maharshtra
-H-Acid/Gamma Acid
O VAPI : Located in chemical belt of Gujarat
O Best pollution control facilities
O BOISAR : Spread over 25 acres; land available for expansion
O Captive solar power plant
All facilities are moving towards zero discharge  by end of this fiscal

Market share of total global capacity

·       GAMMA ACID : 30%
·       H-ACID 13%
·       VINYL SULPHONE – 5%
Amongst the leading 3 manufacturers of H-Acid and Gamma Acid
Total Capacity of Dye Intermediates  ~9,500 TPA

HOW ? MARGIN LEADERSHIP IN THE INDUSTRY:-

·       Cost optimization through various initiatives
·       95%+ Capacity utilization
·       CONSISTENTLY STRONG EBITDA MARGINS

• HOW ? Sourcing of raw materials

Bulk purchases which saves cost
Proximity to sources of raw material
Strategically located close to major ports, saves
on logistics cost
Optimum and efficient use of by-products and
effluent generated in the manufacturing process
·       H1 EBITDA MARGIN IS 32.7 ( FY 18 : 20.7)
·       No. of long term partnerships –domestic and global both
• Backward Integration into manufacturing of Sulphuric Acid at Tarapur, Boisar.
 Consent received from Maharashtra Pollution Control Board (MPCB)
 Sulphuric acid & derivatives (Capacity of 150 TPD)
 25% oleum (Capacity of 10 TPD)
 65% oleum (Capacity of 30 TPD)
 Chloro Sulphuric Acid (Capacity of 30 TPD)
 Brownfield capex of Rs.100 crs to be financed by internal accruals in next 3 years
• 3.4 acres of land acquired at GIDC, Vapi, Gujarat
 MOU signed for proposed expansion in the chemical business (other chemicals)

 NOTE : Readers can listen to the YouTube Video on this in my channel VIJAYAMOHAN STOCK MARKET STRATEGIST

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