Investor Presentation May 2016 Who we areA Snapshot ! Indias One - - PowerPoint PPT Presentation

▶
investor presentation
SMART_READER_LITE
LIVE PREVIEW

Investor Presentation May 2016 Who we areA Snapshot ! Indias One - - PowerPoint PPT Presentation

Feb 20, 2024 359 likes •616 views

Investor Presentation May 2016 Who we areA Snapshot ! Indias One of the largest Worlds Largest largest Manufacturing Cartridge Facilities of manufacturers of manufacturing Detonating Cord Industrial facility at a single and

slide-1
SLIDE 1

Investor Presentation

May 2016

slide-2
SLIDE 2

India’s largest manufacturers of Industrial Explosives and Initiating Systems World’s Largest Cartridge manufacturing facility at a single location. One of the largest Manufacturing Facilities of Detonating Cord and Cast Boosters in India

Who we are…A Snapshot !

India’s 1st Private Player to manufacture HMX & HMX Compounds India’s 1st Private Player to commence commercial supply to Defence for HMX Largest exporter of industrial explosive from India

slide-3
SLIDE 3

1983 Commenced business as a Trader in Explosives 1996 Started production of Cartridge explosives 1998 Commenced production of Detonators 2000 Started production of Bulk explosives 2001 2005 2006 Initial Public Offer (IPO) Got listed

Milestones

Included Cast

Booster and PETN in Product Protfolio

Started Exports. 2007 Extended presence in India by setting New Bulk Plants 2008-16 Manufacturing units in Zambia, Nigeria & Turkey Bulk Plants

Started commercial supply of HMX & Propellant for Defence

Emerged as India’s Largest Explosives Manufacturer Exporting to 20 Countries with product used in 40 countries

slide-4
SLIDE 4

Bulk explosives Cartridge Detonators Detonating Cord Cast Boosters

3,01,323 MTPA Licensed capacity

1,25,000 MTPA

Largest

Licensed capacity

190 Mn. Units 75 Mn. Metres

Licensed capacity

1650 MTPA

Product Range & Licensed Capacities

Licensed capacity Licensed capacity

Locational proximity to the mines

All units located at 50-60 kms radius from the major mining regions

Largest capacity in India

Largest cartridge manufacturing Facility at a single location in the world Well poised to cater to rising demand from Indian and

  • verseas mining

& Infrastructure Industries Largest Manufacturing Facility in India

Largest Manufacturing Facility in India

slide-5
SLIDE 5

Plants State Clients served 4 Maharashtra

  • 1. Western Coalfield Ltd.

2 MP

  • 1. Northern Coalfield Ltd
  • 2. Reliance power (sasan)
  • 3. Jai Prakash Coal

2 Chattisgarh

  • 1. South Eastern Coalfield Ltd.
  • 2. Lafarge, Parsak (Adani

group)

  • 3. Mahanadi Coalfields Ltd

Presence in India

2 Jharkhand

  • 1. Tisco
  • 2. Central Coalfield Ltd,
  • 3. Bharat Coking Coalfield Ltd .

3 Odhisha

  • 1. Mahanadi Coalfield Ltd.
  • 2. Tisco
  • 3. Iron Ore Mines

2 Teleangana SCCL 1 Rajasthan Hindustan Zinc, Jindal Saw 1 West Bengal Eastern Coalfield Ltd

slide-6
SLIDE 6

Raw Material Management

  • 70% of the total raw material consumed
  • Domestically sourced from Deepak Fertilizers, GNFC, RCF
  • Price volatility - rise/fall clause included in rate contract with

customers to a large extent

Key Raw Material – Ammonium Nitrate

  • The domestic price is ` 25000/MT
  • Total AN demand in India, for explosives, is ` 7 Lakhs MT

against a domestic production of ` 6 Lakhs MT

slide-7
SLIDE 7

Key Strengths

slide-8
SLIDE 8

Marquee Clientele

5/26/2016

slide-9
SLIDE 9

Customer Bifurcation (FY16)

Coal India 26.11% Non CIL & Inst 19.73% Trade & Others 25.02% Defence 0.46% Export & Overseas 28.68% Coal India 30.05% Non CIL & Inst 15.99% Trade & Others 26.15% Defence 0.00% Export & Overseas 27.80%

FY16 FY15

Particulars FY16 FY15 Coal India 432.91 437.71 Non CIL & Inst 327.19 233.01 Trade & Others 414.84 380.86 Defence 7.70 0.00 Export & Overseas 475.59 404.89 Total 1658.23 1456.47

Rs in Crs

slide-10
SLIDE 10

Regulatory Environment

One of the very few sectors needing Industrial License & Clearance from Home Ministry License also required Clearance required from IB-regarding safety of location & antecedents of Directors NoC required from District Magistrate NoC by District Magistrate after For underground License also required from Chief Controller

  • f Explosives, GoI

Magistrate after clearance by Police, PWD, Grampanchayat (Gasy mines) use permission required from DGMS Daily Reporting to PESO & Local Police

  • n Production and

Sales

slide-11
SLIDE 11

Market Dynamics

  • Size of the market ~ Rs 6500 Cr.
  • Historical growth 7-8% p.a. (last 10

years)

  • Future growth expected 12% p.a.
  • Annual Explosive consumption of ` 9

Lakh MT in FY15

  • Highly concentrated market with about

GLOBAL OVERVIEW DOMESTIC OVERVIEW

Major players India is 8th largest & fastest growing market globally

  • Highly concentrated market with about

30 manufacturers in the industry Major players Solar Industries India Limited is the market leader in the country

slide-12
SLIDE 12

Our Growth will come from…

Defence Sector

4. 2.

Overseas Market

3.

Renewed demand from Housing and Infrastructure revival

2.

Enhanced demand from coal mining

1.

Market

slide-13
SLIDE 13

Domestic Dynamics

  • Main drivers for explosives demand

1) Mining 2) Infrastructure development

  • Mining Industry is the major consumer of explosives. It accounts of 90% of total explosives
  • Coal Industry consumes 70% of total demand
  • CIL have planned to increase production from present 537 Mill. Tons in FY16 to 924 Mill.

Tons by 2020.

  • SCCL have planned to raise production from 60 Mill. Tons in FY16 to 74 Mill. Tons by 2020.
  • Iron Ore and Limestone expected to increase at 8 – 10% p.a. in same period.
  • CIL issues tender with reverse Auction with price escalation clause quarterly basis based on

movement in prices of AN, Diesel and Labor index.

  • MMDR Amendments bill and Coal Mines (Special provision) bill are likely to open up mining

sector in a big way.

slide-14
SLIDE 14

Global Reach & Presence

Facility : Capacity of 5000 MT

  • f Cartridge & 10000

Mt of Bulk & Nonel

Zambia

Facility : Capacity of 10000 MT of Cartridge & 5000 MT of Bulk.

Nigeria

Facility : Capacity of 40000 MT of ANFO, 5000 MT of Cartridge & Nonel

Turkey

Facility : Planning for Capacity of 25000 MT Bulk Explosive

South Africa

Mt of Bulk & Nonel Assembly.

  • Our Holding - 65%

5000 MT of Bulk.

  • Our Holding - 55%

Cartridge & Nonel Assembly Plant

  • Our Holding - 74.50%

MT Bulk Explosive

  • Our Holding-74%
slide-15
SLIDE 15

Defence- Indeed a large opportunity

  • The industry is poised for exponential growth
  • ver the next decade driven by substantial

growth such as need for an overhaul of defence equipment, inadequate defence equipment inventories in key areas, a sustainable GDP growth rate and a largely hostile geo-political environment

  • The sector has also witnessed a significant

governmental policy shift which eventually led to increased participation of private sector players in this sector- DPP, FDI policy, the tax framework, the industrial licensing policy and framework, the industrial licensing policy and the foreign trade policy

  • India

is the largest defence equipment importer in the world- The private sector is expected to capitalize

  • n

the R&D and technical capabilities

  • f

the DPSUs and global OEMs to meet demand

  • It

is estimated that Indian Government’s annual capex on defence is expected to grow to USD 36Bn by 2024, growing at a CAGR of 9.4%, clearly envisaging the immense

  • pportunity in the sector
slide-16
SLIDE 16

Specialty Chemicals for Defence Sector

Following orders have been received : Product Customer Value (Rs Crs) HMX & HMX Compound OFK-Jabalpur/DRDL-Hyd/TBRL 14.62 Propellant for Akash, Pyro Technique, Igniters/ Warheads Filling etc BDL – Hyd, DGOS - New Delhi, OFK, DRDL, ARDE, HEMRL, TBRL 58.19 Warheads Filling etc Total 72.81

slide-17
SLIDE 17

Our Journey in Numbers

+23.06% CAGR

723 cr 1031 cr 1213 cr 1216 cr 1456 cr 1658 cr 200 400 600 800 1000 1200 1400 1600 1800

Revenue

169 cr

+20.16% CA9R

FY06 FY11 FY12 FY13 FY14 FY15 FY16 130086 161033 190091 175764 221638 271171 50000 100000 150000 200000 250000 300000 FY06 FY11 FY12 FY13 FY14 FY15 FY16

Volume

44652

slide-18
SLIDE 18

+20.3% CAGR

Our Journey in Numbers

148 cr 195 cr 210 cr 232 cr 262 cr 310 cr 50 100 150 200 250 300 350 FY06 FY11 FY12 FY13 FY14 FY15 FY16

EBITDA

40 cr 147 cr 166 cr 150 200

PAT

+21.57% CAGR +20.25% CAGR

76 cr 101 cr 116 cr 118 cr 147 cr 50 100 150 FY06 FY11 FY12 FY13 FY14 FY15 FY16 22 cr 44 58 65 66 81 92 20 40 60 80 100 FY06 FY11 FY12 FY13 FY14 FY15 FY16

EPS

13

slide-19
SLIDE 19

Details of Borrowings

  • Rs. In Crs.

Particulars FY16 FY15 FY14 Short Term Borrowing (A) 190.96 165.00 272.21 Long Term Borrowing (B) 134.03 155.30 151.72 Total debt (A+B) 324.99 320.30 423.93 Share Capital 18.10 18.10 18.10 Share Capital 18.10 18.10 18.10 Reserves & Surplus 849.47 757.78 643.48 Total Equity 867.57 775.88 661.58 Cash Balance & FD & Short Term Investment 67.38 66.90 147.77 Net Debt 257.61 253.40 276.16 Net Debt Equity Ratio 0.30 0.33 0.42 Capex Done 135.51 119.47 160.22

slide-20
SLIDE 20

Financials – P&L 5 years

(Rs in crs) FY11 FY12 FY13 FY14 FY15 FY16 Gross Income 723.83 1030.68 1213.32 1216.5 1456.47 1658.23 Excise Duty 43.41 64.12 93.39 90.82 110.96 125.39 Net Income 680.42 966.56 1119.93 1125.68 1345.51 1532.84 Material Consumed 372.43 560.78 650.07 590.81 768.71 874.08 Other Costs 185.62 235.75 281.75 339.16 329.16 366.55 Other Costs 185.62 235.75 281.75 339.16 329.16 366.55 Other Income 25.59 24.65 16 18.43 14.29 17.67 EBIDTA 147.96 194.68 197 214.14 261.92 309.88 PAT 75.59 101.2 116 118.44 147.41 166.14 Material Consumed % 54.74% 58.02% 58.05% 52.48% 57.13% 57.02% EBIDTA % 21.75% 20.14% 17.64% 19.02% 19.47% 20.22% PAT % 11.11% 10.47% 11.29% 11.50% 10.96% 10.84% EPS (Annualised in Rs) 43.64 58.42 65.47 65.44 81.45 91.80

slide-21
SLIDE 21

Financials – B/S Rs in Crs FY11 FY12 FY13 FY14 FY15 FY16 Gross Block 270.29 386.35 436.77 575.40 667.36 880.98 Cash & Bank Balance 59.63 63.01 92.19 133.01 37.20 37.04 Net Worth 316.04 404.6 572.70 661.57 775.88 867.57 Loan Funds 138.67 283.26 344.52 442.75 328.48 346.47 Capital Employed 397.27 621.67 868.29 1048.63 1063.86 1170 Capital Employed 397.27 621.67 868.29 1048.63 1063.86 1170 Gross Debt Equity Ratio 0.44 0.70 0.60 0.67 0.41 0.40 Inventory Days 58 84 76 94 78 68 Debtors Days 48 49 47 55 48 58 ROCE 35.44 29.26 22.23 18.34 21.66 23.68 RONW 24.35 25.01 20.31 17.9 19.00 19.15 Working Capital Days 87 102 132 144 105 93 Book Value 172 224 316 366 431 479

slide-22
SLIDE 22

FY16 Financials Consolidated YOY Comparison Margins Rs in Crs. FY16 FY15 Change FY16 FY15 % Change Gross Sales 1658.23 1456.47 13.85 Net Sales 1532.84 1345.51 13.92 EBIDTA 309.89 261.92 18.31 20.22 19.47 0.75 Interest/ Fin 20.70 17.85 15.97 1.35 1.33 0.02 Interest/ Fin 20.70 17.85 15.97 1.35 1.33 0.02 Depreciation 32.82 31.45 4.36 2.14 2.34

  • 0.20

Exceptional 0.00 10.00

  • 100.00

0.00 0.74

  • 0.74

PBT 256.37 202.62 26.53 16.73 15.06 1.67 Tax 76.39 46.28 65.06 29.80 22.84 6.96 MI 13.84 8.93 54.98 0.90 0.66 0.24 PAT after MI 166.14 147.41 12.71 10.84 10.96

  • 0.12
slide-23
SLIDE 23

Shareholding (as on March 31, 2016)

72.98% 18.23% 3.14% 1.05% 0.42% 4.18% Promoters Mutual Funds Public FII Corporate Others Mutual Fund HDFC Fund (6.0648), SBI (5.9848), Kotak Fund (1.4976),DSP Rock (1.4273), Tata Fund (1.0778), Birla Sun life (0.8527), Kotak Fund ( 0.6169) FII Kotak Global Funds (0.8824), Nomura Singapore Ltd ( 0.1106), Fidility Investment Trust & Emerging Market Fund (0.0304), Aperios Emerging Connectivity Master Fund Limited (0.6266) Other Bodies Corporate Edelweiss Securities Limited (0.0565), Shah Investors Home Ltd ( 0.0304), IDBI Federal Life Insurance Co. Ltd ( 0.0293), Bharti AXA Life Insurance Company Ltd ( 0.0196) , ), Unilazer Venture Pvt Ltd (0.0101) Others ICICI Prudential Life Insurance (2.6650),

slide-24
SLIDE 24

Thank You Thank You

Nilesh Panpaliya CFO nilesh@solargroup.com www.solargroup.com