INVESTOR PRESENTATION May 2017 Safe-harbor statement This - PowerPoint PPT Presentation

INVESTOR PRESENTATION May 2017

Safe-harbor statement 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 otherwise. 2

Contents Group overview Sudarshan culture Financial results Business outlook 3

Contents Group overview Sudarshan culture Financial results Business outlook 4

Sudarshan at glance Incepted in 1952 Manufacturer of Pigments, Effect pigments & Agrochemicals Largest pigment producer in India with 35% market share 5 th largest pigment producer in the world 5

Highlights  Growth engine - in pursuit of the vision From a non existent to the 5 th largest producer in the last 7 years o o Major capacity expansion lined up over next 5 years’ under MOU signed with Government of Maharashtra for ₹ 1,000 crores investment  Cutting Edge Technology o Introduced 100+ new products - High Performance range, Cosmetic range o Best in class infrastructure for Analytical and Application testing o Best in class R&D professionals 6

Highlights  Reliability and Sustainability o British Safety Council - Sword of Honor o Amongst the top suppliers in the world, which meet the stringent social compliance norms of the Cosmetic Industry  Culture o Among “Top 50 Dream Companies to Work” o Certified as “Great place to Work” 7

Our Infrastructure - Global Presence Sudarshan Europe B.V. Sudarshan (Shanghai) Sudarshan North Trading Company Ltd. America Inc. Sudarshan Global Mexico S. De R.L. DE C.V. Head Office Sudarshan Chemical Industries Limited Prescient Color South Limited America Reico Industries Office Limited 8

Our Infrastructure - India  Global Head office in Pune  R&D in Ambadwet near Pune  India based Manufacturing  Roha  Mahad 9

Our Infrastructure - R&D capabilities People Process • • More than 50 scientists Stage Gate process • • Global experts panel for competency DOE approach to solutions enhancement • Analytical and Application lab experts 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 10

Consolidated financial trend PBDIT % ROCE 17.5% 16.0% 13.0% 12.5% 7.5% 13.1% 11.9% 11.5% 10.7% 8.9% FY13 FY14 FY15 FY16 FY17 Sales CAGR 15% PBDIT CAGR 26% 11

Contents Group overview Sudarshan culture Financial results Business outlook 12

Sudarshan culture - Four components 13

Sudarshan culture - Higher purpose 14

Sudarshan culture - Vision To be amongst the top four pigment players in the world 15

Sudarshan culture - Vision World Class Global Colour Solution Provider with an Innovative & vibrant culture 16

Sudarshan culture - Values S Seva (Serve) C Courage C Commitment & Passion R Respect T Trust 17

Contents Group overview Sudarshan culture Financial results Business outlook 18

Consolidated Financials FY16-17 Fiscal year Amounts in ₹ Million 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% • Strategic initiatives have helped in improving operating profit margins 19

Standalone Financials FY16-17 Fiscal year Amounts in ₹ Million 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% 20

Standalone Financials (Quarter) For the quarter Amounts in ₹ Million 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% • Specific increases in raw materials; sales side price increases with some lag • Appreciation of Rupee against Euro and USD impacted sales realisation and operating profit margins 21

Dividend 6 months ended • Board of Directors have Dividend history 175.0% recommended dividend at 150.0% the rate of 175% (including 87.5% interim dividend of 125% which was paid in March) FY15 FY16 FY17 22

Key ratios - Standalone As on 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 • 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 23

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) 24

Contents Group overview Sudarshan culture Financial results Business outlook 25

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 26

Thank You