é o O . N a t h B i o - G e n e s ( 1 ) L t d . ( C I N L 0 111 0 M H 1 99 3 P L C 0 7 2 8 4 2 ) 1 5 % J u n e 2 0 2 0 h e M a n a g e r - L i s t i n g L i s t i n g T T h e M a n a g e r - N a t i o n a l S t o c k E x c h a n g e o f I n d i a L t d . , B S E L i m i t e d l e x P l a z a , B a n d r a - K u r l a C o m p E x c h a n g e P h i r o z e J ee j ee b h o y T o w e r s , D a l a l S t r ee t , n d r a ( E ) B a M u m b a i - 4 000 5 1 M u m b a i - 4 0 0 0 0 1 N S E C o d e - N A T H B I O G E N B S E C o d e - 5 3 7 2 9 1 D e a r S i r s , o n 3 1 s t M a r c h 2 0 2 0 . c i a l R e s u l t s a s i o n o n A u d i t e d F i n a n S u b j e c t - P r e s e n t a t P l e a s e f i n d t h e a tt a c h e d h e r e w i t h , p r e s e n t a t i o n o n A u d i t e d f i n a n c i a l r e s u l t s f o r t h e 3 1 s t M a r c h 2 0 2 0 . l y e a r e n d e d q u a r t e r a n d f i n a n c i a T h i s i s f o r y o u r i n f o r m a t i o n a n d r e c o r d p u r p o s e T h a n k i n g Y o u F o r N a t h B i o - G e n e s ( I n d i a ) L i m i t e d D e v i n d e r K h u r a n a C h i e f F i n a n c i a l O ff i c e r “ = N a t h H o u s e , N a t h R o a d , A u r a n g a b a d - 4 3 1 00 5 ( M S ) T e l : 0 2 4 0 - 2 3 7 6 3 1 4 / 5 / 6 / 7 N A T H E m a i l : i n f o @ n a t h s ee d s . c o m www . n a t h b i o g e n e s . c o m = 1 , C h a t e a u W i n d s o r , 8 6 V ee r N a r i m a n R o a d , M u m b a i - 4 000 2 0 ( M S ) T e l : 0 22 - 22 8 7 1 00 1 , 22 8 7 5 6 5 3 / 4 / 5 G R O U P
Nath Bio Genes (India) Limited Earnings Presentation Q4 & FY20
Safe Harbour Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Nath Bio Genes (India) Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances. 2
Highest Ever Revenue despite a Challenging Environment Strong Financial Performance… (INR Mn except as stated) FY20 FY19 YoY % o FY20 revenue growth of 21%; highest ever top Revenue 2,799 2,309 21% line achieved at INR 280 crores EBITDA 547 432 26% o Gross Margins maintained at 54.9% PAT 505 384 31% o Generated positive Operating cash flow o Debtors collection period improved EPS 26.6 20.2 31% o Working Capital cycle improving Product Volume Growth Revenue Growth Driven By Superior Operating Performance Cotton 46% 45% o Cotton registered strong growth at 45% Y-O-Y o Vegetables segment grew by 30% Paddy 32% 8% o Minimal impact of COVID on Rabi season; Vegetable 56% 30% Kharif 20 Season progressing well Win Chi Win 27% 24% o Timely action taken to ensure un-hindered processing and dispatches in spite of COVID situation 3
FY20 Guidance met; Moving towards Higher Trajectory FY20 Guidance FY20 Actuals Revenue Guidance FY20 INR 2,800-3,100 Mn 2,799 Gross Margin 50%+ 54.9% Long Term Debt NIL NIL Moving Towards a Higher Growth Trajectory Moving Towards a Higher Growth Trajectory Revenue Guidance FY21 20%+ Gross Margin 50%+ 4
Driven by Superior R&D; Highly Ranked Cotton Seeds Launched o Multi Year Process o Involves extensive testing by Indian Council of Agricultural Research o Sanket (NBC 1111) Product Rankings Hybrid Cotton Rank (for Yield o High Yield – 39% higher than BGII BG cotton Year Zone Seed Kg/Ha) hybrid and 26% higher than local BGII BG cotton South Zone 1 Hybrid 2017-18 Central Zone 3 Sanket (NBC South Zone 1 o High tolerance to sucking pests 1111) 2018-19 Central Zone 2 South Zone 3 2017-18 Central Zone 1 South Zone 2 Daksh (NBC Central Zone 3 1103) 2018-19 o Daksh (NBC 1103) o High Yield – 22% higher than BGII BG cotton hybrid and 8% higher than local BGII BG cotton Hybrid o Best suited for cultivation under rainfed conditions
Circumventing a Global Pandemic – Farmers First! Timely Actions; Dedicated Teams Successfully avoided disruption of processing Field Operations Resumed & logistics on account of COVID Agri categorised as an essential commodity; Received 92% of targeted seed production Teams immediately mobilised 16 Lacs + packets of cotton placed in the Secured permissions to operate 24/7; Staff Market accommodated at factory premises Nath teams reached out to farmers; Sales collection recovered in April/May necessary support ensured 6
Sector and Company Outlook remains Strong Agri is Surviving Corona o Sector was exempted from lockdown o Multiple relief packages announced by GOI in early April o Loan moratorium to positively impact Agri sector borrowers o Normal Monsoons expected by IMD Nath is Gaining Market Share o Nath has gained market share in these adverse times as marginal and unorganised players have been adversely impacted o Exponential growth expected in Cotton – 40-50% annual for next two years • R&D teams working on awards winning products – 2 new cotton seeds launched o Capturing the market in Rabi Season through Vegetables and Win Chi Win 7
A journey of Thousand Miles Begins with a Single Step… Cotton (Mn Pkts) Paddy (Quintals) Vegetables (Quintals) Win Chi Win (Litres) FY19 0.8 mn FY19 56K FY19 2.7K FY19 43K FY23E FY23E FY23E FY23E 125K 90K 10K 4.5 mn 27% 62% 12% 27% 5 Year CAGR NBIL’s Transformational Journey NBIL’s Transformational Journey Market Leading Strong Balance Sheet; Diversified Revenue World-class R&D Revitalised Marketing Products stream Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) EPS (Per Share) FY15 1,853 FY15 347 FY15 253 FY15 15.8 FY20 FY20 FY20 FY20 2,799 547 505 26.6
Visionary Leadership; Attracting the Best Talent Mr. N Kagliwal Nath Promoters are committed to Mr. S Kagliwal Chairman MD sustainable growth and are working towards making Nath one of the best seeds company globally. Leadership Team Nath leadership team shares the same passion as its promoters. The leadership team comprises of the best talent in Industry. Mr. M Dhande Mr K Reddy Head Mr. D Khurana Business Leader – Supply Chain CFO Combined work experience of 250 Years Combined R&D experience of 100 Years Mr R Kumar Dr S Raina Dr Ish Kumar Dr C Pathak 9 Head - VEG Head - Cotton Head - Paddy Head - VEG
Management Focussed on Improving Efficiencies… Maintaining high Giving lesser Ramping up inventory for advances as products collections from achieving higher gain prominence in Receivables sales the market 10
Achieved Targets… On Track to Achieving Guidance Key Revenue FY20 Guidance FY20 Actual Contributor 1,166,566 Cotton 1,200,000 packets packets* 74,116 Paddy 60,000 Quintals Quintals 3,500 4,075 Vegetables Quintals Quintals 55,000 51,293 Win Chi Win Litres Litres *Net of sales return, which stood at 11% - Lowest in NBIL history 11
Superior Products Drive Strong Financial Performance – FY20 Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) PAT Margin (%) EPS (INR/Share) PAT (INR Mn) PAT (INR Mn) 31% 31% 26.6 505 20.2 384 FY19 FY20 FY19 FY20 12
Superior Products Drive Strong Financial Performance – Q4FY20 Revenue (INR Mn) Gross Margin (%) EBITDA (INR Mn) 15% 300 Bps PAT Margin (%) EPS (INR/Share) PAT (INR Mn) 210 Bps 39% 39% 76 4.0 2.9 55 Q4FY19 Q4FY20 Q4FY19 Q4FY20 13
Summary and Focus Areas Build on fast growing Vegetables and Win Chi Win Segments Enhance product lines in Cotton to meet changing customer requirements Improving the Distribution Network to reach Northern and Southern Indian States 14
Increasing Focus on Marketing • Three vertical being enhanced and strengthened. • D4 concept and distribution network in progress. Identified 200+ PAN India distributors to be personally serviced by individual officers from Cotton NGBL sales team; focusing on increasing presence in untouched areas of the existing states Significant hiring in the sales and marketing Vegetables verticals under the leadership of Mr Ravi Kumar Creating a separate sales and distribution team; Plant Nutrient Exclusive distributor being appointed 15
Cotton – Highly Ranked Products Operating Highlights Key States: Maharashtra, Gujarat, Karnataka, Andhra Pradesh, Telangana, MP Other geographies being targeted: Orissa, North India Top Products (ranked #1-3): NBC 102, NBC 1022, NBC 1111, NBC 1103, NBC 10 Product Pipeline Volume Guidance Sales Projection Million Packets Products having completed 1 year of ICAR Trials FY18-19 (A) 0.8 – will go in for 2 nd year of trials & then commercialization: FY19-20 (A) 1.1 • NBC 1821 • FY20-21 (E) 1.7 NBC 1851 • NBC 1811 FY21-22 (E) 2.5 16
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