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INVESTOR PRESENTATION
May 2017
SLIDE 2 This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our exposure to changes in general economic conditions, market, Foreign currency and other risks, changes in government policies/regulations, tax regimes as also technological changes. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of subsequent development, information or events or
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Safe-harbor statement
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Group overview Sudarshan culture Financial results Business outlook
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Contents
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Group overview Sudarshan culture Financial results Business outlook
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Contents
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Sudarshan at glance
Incepted in 1952 Manufacturer of Pigments, Effect pigments & Agrochemicals
5th largest pigment producer in the world
Largest pigment producer in India with 35% market share
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Highlights
- Growth engine - in pursuit of the vision
- From a non existent to the 5th largest producer in the last 7 years
- Major capacity expansion lined up over next 5 years’ under MOU signed
with Government of Maharashtra for ₹ 1,000 crores investment
- Cutting Edge Technology
- Introduced 100+ new products - High Performance range, Cosmetic range
- Best in class infrastructure for Analytical and Application testing
- Best in class R&D professionals
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Highlights
- Reliability and Sustainability
- British Safety Council - Sword of Honor
- Amongst the top suppliers in the world, which meet the stringent social
compliance norms of the Cosmetic Industry
- Culture
- Among “Top 50 Dream Companies to Work”
- Certified as “Great place to Work”
SLIDE 8 Global Head Office
Our Infrastructure - Global Presence
South America Office
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Sudarshan Chemical Industries Limited Prescient Color Limited Reico Industries Limited Sudarshan Europe B.V. Sudarshan North America Inc. Sudarshan Mexico S. De R.L. DE C.V. Sudarshan (Shanghai) Trading Company Ltd.
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Our Infrastructure - India
- Global Head office in Pune
- R&D in Ambadwet near Pune
- India based Manufacturing
- Roha
- Mahad
SLIDE 10 10 People
- More than 50 scientists
- Global experts panel for competency
enhancement
- Analytical and Application lab experts
Process
- Stage Gate process
- DOE approach to solutions
Infrastructure
- Dedicated site for R&D with investments
>USD 10 Mn
- State of the art equipment for
characterization, reverse engineering and composition analysis
- Ability to handle crystal modification &
surface treatments
- Comprehensive list of equipment to ensure
reproducibility in end application
Our Infrastructure - R&D capabilities
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Consolidated financial trend
8.9% 11.5% 10.7% 11.9% 13.1% 7.5% 13.0% 12.5% 16.0% 17.5% FY13 FY14 FY15 FY16 FY17 PBDIT % ROCE
Sales CAGR 15% PBDIT CAGR 26%
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Group overview Sudarshan culture Financial results Business outlook
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Contents
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Sudarshan culture - Four components
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Sudarshan culture - Higher purpose
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Sudarshan culture - Vision
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To be amongst the top four pigment players in the world
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Sudarshan culture - Vision
World Class Global Colour Solution Provider Innovative & vibrant culture with an
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Sudarshan culture - Values
Seva (Serve) Courage Commitment & Passion Respect Trust
T R C C S
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Group overview Sudarshan culture Financial results Business outlook
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Contents
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Consolidated Financials FY16-17
31.03.2017 31.03.2016
Total income 15,226 14,093 PBDIT 1,990 13.1% 1,674 11.9% PBIT 1,445 9.5% 1,193 8.5% PBT 1,362 8.9% 990 7.0% PAT 1,034 6.8% 699 5.0%
Fiscal year
Amounts in ₹ Million
- Strategic initiatives have helped in improving operating profit margins
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Standalone Financials FY16-17
31.03.2017 31.03.2016
Total income 12,929 12,073 PBDIT 1,735 13.4% 1,557 12.9% PBIT 1,236 9.6% 1,120 9.3% PBT 1,218 9.4% 985 8.2% PAT 894 6.9% 716 5.9%
Fiscal year
Amounts in ₹ Million
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Standalone Financials (Quarter)
31.03.2017 31.03.2016
Total income 3,336 3,178 PBDIT 358 10.7% 420 13.2% PBIT 222 6.6% 292 9.2% PBT 247 7.4% 312 9.8% PAT 191 5.7% 219 6.9%
For the quarter
- Specific increases in raw materials; sales side price increases with some lag
- Appreciation of Rupee against Euro and USD impacted sales realisation and
- perating profit margins
Amounts in ₹ Million
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Dividend
6 months ended
recommended dividend at the rate of 175% (including interim dividend of 125% which was paid in March)
87.5% 150.0% 175.0% FY15 FY16 FY17 Dividend history
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Key ratios - Standalone
31.03.2017 31.03.2016
Debt-Equity 0.91 1.06 Interest coverage 6.68 5.38 Current ratio 1.18 1.42 EPS (basic & diluted) 12.92 10.35
As on
- Current ratio is impacted due to current maturity of public deposits. Ratio will
improve as it will be replaced with lower cost long term debt
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Business highlights
6 months ended
- Inauguration of R&D and Application centre which
has been upgraded to world class standards
- China and Mexico subsidiary registration formalities
completed; operations to commence soon
- Cross functional focus to prepare for Goods &
Services tax (GST)
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Group overview Sudarshan culture Financial results Business outlook
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Contents
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Business outlook
6 months ended
India market demand improvement to continue Short term impact is likely for June as demand may roll over to next months due to GST implementation Expected improvement in demand from overseas geographies Operational excellence project to augment production capacity; lowering need for capital expenditure
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Thank You
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