NOCIL LTD - Q2 FY 18-19 - RESULTS REVIEW

NOCIL LTD

Q2 FY 18-19 

RESULTS REVIEW

NOCIL in a Snapshot

Part of Arvind Mafatlal Group

Largest Rubber Chemicals Manufacturer in India

Expertise in Rubber Chemical Business over 4 decades

State of the Art, Innovative, Sustainable & Competitive Technologies

Wide range of Rubber Chemicals to suit customer needs

Long Term Business Relationships with Tyre Majors (Both Domestic & International)

Strong Marketing & Distribution Service Network

Certified for Quality and Health/Safety/Environment.

Environment Friendly Processes

Awarded Responsible Care Logo by Indian Chemical Council

MANAGEMENT

1.         HRISHIKESH A. MAFATLAL. PROMOTER & CHAIRMAN

2.         S.R.DEO , MD

PLANTS AT

1.         NAVI MUMBAI PLANT

·       Located in - Belapur’s industrial zone designated for  chemical Industry, about 40 kms away from Mumbai

·       State-of-the-art technology for the manufacture of the entire range of Rubber Chemicals for Tyre & other Rubber Products

2.         DAHEJ PLANT

·       Located about 45 kms from Bharuch, Gujarat

·       Location has synergistic Chemicals & Petrochemicals industry

·       excellent connectivity with Dahej & Hazira Port

·       Fully automated continuous process plant developed completely with in-house technology

Products & their Usage

1. ACCELERATORS

Increase the speed of vulcanization to improve productivity

2. ANTI-DEGRADANTS/ ANTI-OXIDANTS

An ingredient in rubber compounds which deters the ageing or inhibits degradation due to oxygen attack of rubber products thereby enhancing service life

3. SPECIALISED APPLICATIONS

·       Pre vulcanization inhibitor, Post vulcanization stabilizer, Zinc based applications etc.

·       One Stop Shop with Wide Range to suit Market Requirements

·       NOCIL’s Research Centre is recognized by Ministry of Science and Technology, Government of India

·       Key Areas Focussed upon

•     Process Development, scale up, commercial implementation

•     Environmental strategies for sustainable growth

•     Research initiatives as per customers’ perceived needs

•     Rubber Chemicals constitute 3% - 4% of the Rubber Consumption

•     Every year ~40k additional demand for Rubber chemicals is created

•     AUTOMOTIVE AND TYRE INDUSTRY WILL GROW AT 12%-14% FOR NEXT 4-5 YEARS

•     Domestic Tyre Industry have already committed INR 15 – 18 Bn towards expansion plans

•     CONTINUOUS DEMAND FOR RUBBER CHEMICALS

•     CAR PENETRATION IS VERY LOW AND INCREASING

•     INCOME LEVELS ARE RISING

•     STATE OF ART TECHNOLOGY

•     HIGH VALUE ADDED PRODUCTS

KEY STRENGTHS OF NOCIL

•     DEPENDABLE & QUALITY PLAYER

•     WIDE PRODUCT RANGE

•     STRONG CUSTOMER RELATIONSHIPS

•     NEW CAPACITY ADDITIONS

•     COMMITTED PLANS FOR FUTURE GROWTH

H1 FY 19 PERFORMANCE

H1 REVENUE : RS.540 CR (56% OF FY 18 REVENUES)

FROM RS.443 CR IN H1 FY 18, 

VOLUME GROWTH WAS RS.48 CR AND VALUE GROWTH WAS RS.49 CR AND TOTAL H1 FY 19 WAS RS.540 CR

H1 OPERATING EBITDA : RS.159 CR (60% OF FY 18)

HI EBITDA MARGINS : 29.4%

H1 PAT : RS.104 CR (61% OF FY 18) H1 FY 17 : RS.51 CRORES) DOUBLED IN 3 YEARS 

PAT MARGINS : 19.2% (16.4% FY 18; 13.6% FY 17)

Q2 FY 19 PERFORMANCE

REVENUE : RS.272 CR (228 CR FY 18/+19.5%)(181 CR FY 17)

PBT : RS.76 CR ( RS.35 FY 18/+39.7%)( RS.40 CR FY 17)

PAT RS.53 CR ( RS.38 CR FY 18/+38.8%)(RS.27 CR FY 17)

PAT MARGINS : 19.4% (16.7% FY 18/15.1% FY 17)

INTEREST : ZERO

CAPEX – KEY GROWTH DRIVER

PHASE.1 RS.170 CR ANNOUNCED IN MARCH 17

(A)     NAVI MUMBAI EXPANSION COMPLETED. COMMERCIAL PRODUCTION IN Q1 FY 19

(B)     EXPANSION AT DEHEJ; COMMERCIAL PRODUCTION IN Q3 FY 19

PHASE II CAPEX RS.255 CR

1.         FOR EXPANSION OF RUBBER CHEMICALS PRODUCTION AT DEHAJ AND NAVI MUMBAI – ANNOUNCED IN DEC 17

2.         ANOTHER EXPANSION ANNOUNCED IN JAN 18

3.         COMMERCIAL PRODUCTION EXPECTED BY END OF H1 FY 19-20

4.         CAPEX BY INTERNAL ACCRUALS

5.         EXPANSION WILL MAKE ASSET TURNOVER AS 2 X