EARNINGS PRESENTATION Q1 - FY17

Transcription

1 EARNINGS PRESENTATION Q1 - FY17 1

2 EXECUTIVE SUMMARY OVERVIEW Ion Exchange (India) Ltd (Ion Exchange), formed in 1964, is a pioneer in water, waste water treatment & environment solubons and caters to various industries, homes & communibes. Headquartered in Mumbai, the company has six manufacturing & assembly facilibes across India, and one each in Bangladesh and UAE. It also has presence across other key geographies. InstallaBon: 1 lakh globally; 500+ in core sectors. BUSINESS & REVENUE MIX (STANDALONE %) Engineering (54%) Provides comprehensive and integrated services and solubons in water & waste water treatment including Sea Water desalinabon, Recycle and Zero liquid discharge plants to diverse industries. Chemicals (36%) - Provides a comprehensive range of resins, speciality chemicals and customized chemical treatment programmes for water, non-water and specialty applicabons. Consumer Products (10%) Caters to individuals, hotels, spas, educabonal insbtubons, hospitals, laboratories, railway and defence establishments providing safe drinking water and a clean environment. MARQUEE CLIENTS Industrial NTPC,NPC, Reliance, IOCL, JSW, CPCL, L&T, Essar group, IRCTC, BHEL, Tata Group, InsNtuNonal Leela, Military Engineering Services, Taj Hotels, Holiday Inn, Hyaa Regency, Oberoi Hotels, Apollo Hospitals, Escorts Heart InsBtute, DLF, Puravankar. InternaNonal Cargill, Technip France, Unilever group, Jurong, Thyssenkrupp ( Uhde), Jacobs, Kawasaki, Mitsubishi, PDO Oman, Emirates Steel, IKPP Indonesia STANDALONE FINANCIALS (FY16) Total Income INR 8,123 Mn EBITDA INR 720 Mn PAT INR 345 Mn 2

3 COMPANY OVERVIEW Ion Exchange was originally formed as a subsidiary of PermuBt, UK in It became a wholly owned Indian company in The company is currently celebrabng its 51 st Year of operabons. The company has expanded its footprints globally and possesses a diversified product range. It offers one stop water and non-water treatment solubons catering to diverse segments like infrastructure, industry, insbtubons, municipal, homes and communibes, urban and rural. The company offers a wide range of solubons across the water cycle from pretreatment to process water treatment, waste water treatment, recycle, zero liquid discharge, sewage treatment, packaged Drinking water, Sea Water desalinabon etc. The company is also engaged in manufacturing ion exchange resins, speciality chemicals for water and waste water treatment as well as non-water applicabons. It has two facilibes for In-house R&D and two applicabons and tesbng centers. STANDALONE REVENUE BREAK UP FY16 Consumer 10 % Chemical 36 % Engineering 54 % STANDALONE GEOGRAPHICAL BREAKUP FY16 The company has over 50 patents to their credit and 100+ products commercialized. The company has a global presence apart from presence in major cibes in India with sales & service centers and dealer network of more than 100. The company exports to Africa, Japan, Middle East, Russia, South East Asia, Europe, UK, USA, Canada and neighbouring countries. Exports 22% DomesBc 78% 3

4 Q1-FY17 FINANCIAL HIGHLIGHTS q Q1-FY17 Financial performance: Total Income : INR 1,939 Mn; Growth of (19.7%) Q-o-Q and 16.9% Y-o-Y EBITDA : INR 156 Mn; Growth of (48.2%) Q-o-Q and 34.5% Y-o-Y EBITDA Margin : 8.0%; Growth of (450) Bps Q-o-Q and 100 Bps Y-o-Y Net Profit : INR 67 Mn; Growth of (59.6%) Q-o-Q and 52.3% Y-o-Y PAT Margin : 3.5%; Growth of (340) Bps Q-o-Q and 80 Bps Y-o-Y Diluted EPS : 4.61 INR 4

5 Q1- FY17 STANDALONE INCOME STATEMENT INCOME STATEMENT (INR MN) Q1-FY17 Q4-FY16 Q-o-Q Q1-FY16 YoY Total Income* 1,939 2,415 (19.7%) 1, % Total Expenses 1,783 2,114 (15.7%) 1, % EBITDA (48.2%) % EBITDA Margin 8.0% 12.5% (450 Bps) 7.0% 100 Bps DepreciaBon % % Finance Cost (10.0%) % PBT (58.1%) % Tax (55.0%) % Profit Aaer Tax (59.6%) % PAT Margin 3.5% 6.9% (340 Bps) 2.7% 80 Bps EPS (INR Diluted) (58.8%) % *Total income includes other income 5

6 SEGMENTAL BREAKUP- QUARTERLY STANDALONE ENGINEERING CHEMICALS CONSUMER PRODUCTS R E V E N U E E B I T INR Mn 1, INR Mn Q1FY16 27 Q1FY Q1FY17 39 Q1FY17 INR Mn INR Mn Q1FY16 94 Q1FY Q1FY Q1FY17 INR Mn INR Mn Q1FY16 Q1FY Q1FY17 Q1FY17-9 6

7 HISTORICAL STANDALONE INCOME STATEMENT INCOME STATEMENT (INR MN) FY13 FY14 FY15 FY16 Total Income* 7,732 7,201 7,400 8,123 Total Expenses 7,208 6,705 6,813 7,403 EBITDA EBITDA Margin 6.8% 6.9% 7.9% 8.9% DepreciaBon Finance Cost PBT Tax Profit Aaer Tax PAT Margin 2.8% 2.8% 3.5% 4.2% EPS (INR Diluted) *Total income includes other income 7

8 HISTORICAL BALANCE SHEET - STANDALONE PARTICULARS (INR MN) FY 15 FY16 PARTICULARS (INR MN) FY15 FY16 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital (A) Fixed Assets (B) Reserves& Surplus 2,058 2,355 (B) Non-current investments Total -Shareholder Funds 2,203 2,501 (C) Deferred tax assets (Net) 0 0 Non Current LiabiliBes (D) Long term loans & advance (A) Long Term Borrowings (E) Other non-current assets (B) Deferred Tax LiabiliBes (Net) (C) Other Long Term liabilibes Total - Non Current Assets 1,966 2,125 (D) Long Term provisions Current Assets Total - Non Current LiabiliNes (A) Current Investments 1 1 Current LiabiliBes (B) Inventories (A) Short term Borrowings (C) Trade Receivables 3,265 3,353 (B) Trade Payables 2,703 2,893 (D) Cash & Bank Balances (C) Other Current LiabiliBes (E) Short-term loans & advances (D) Short-term provisions (F) Other current assets 2 5 Total Current LiabiliNes 3,789 4,096 Total Current Assets 4,355 4,873 GRAND TOTAL - EQUITIES & LIABILITES 6,321 6,998 GRAND TOTAL ASSETS 6,321 6,998 8

9 HISTORICAL CONSOLIDATED INCOME STATEMENT INCOME STATEMENT (INR MN) FY13 FY14 FY15 FY16 Total Income* 8,620 7,978 8,048 8,760 Total Expenses 8,081 7,588 7,539 8,138 EBITDA EBITDA Margin 6.3% 4.9% 6.3% 7.1% DepreciaBon Finance Cost PBT Tax Profit Aaer Tax, before Minority interest Add : Profit / (Loss) from Associate (1) Less : Minority Interest PAT PAT Margin 1.6% 0.6% 1.2% 1.7% EPS (INR Diluted) *Total income includes other income 9

10 HISTORICAL BALANCE SHEET - CONSOLIDATED PARTICULARS (INR MN) FY 15 FY 16 PARTICULARS (INR MN) FY15 FY 16 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets (A) Share Capital (A)Fixed Assets (B) Reserves& Surplus 1,420 1,560 (B) Non-current investments Total -Shareholder Funds 1,561 1,701 (C) Deferred tax assets (Net) 8 8 Minority Interest (D) Long term advance Non Current LiabiliBes (E) Other non-current assets (A) Long Term Borrowings (B) Deferred Tax LiabiliBes (Net) Total - Non Current Assets 1,760 1,888 (C) Other Long Term liabilibes Current Assets (D) Long Term provisions (A) Current Investments 1 1 Total - Non Current LiabiliNes (B) Inventories Current LiabiliBes (C) Trade Receivables 3,582 3,630 (A) Short term Borrowings (D) Cash and Bank Balances (B) Trade Payables 3,162 3,314 (E) Short-term loans and advances (C) Other Current LiabiliBes (F) Other current assets 3 5 (D) Short-term provisions Total Current Assets 5,042 5,273 Total Current LiabiliNes 4,681 4,867 GRAND TOTAL - EQUITIES & LIABILITES 6,802 7,161 GRAND TOTAL ASSETS 6,802 7,161 10

11 CAPITAL MARKET DATA SHARE PRICE PERFORMANCE (UPTO 30 th JUNE, 2016) ION SENSEX 80% 60% 40% 20% 0% -20% -40% PRICE DATA (AS ON 30 th JUNE, 2016) SHAREHOLDING PATTERN (AS ON 30 th JUNE, 2016) Face value (INR) 10 Market Price (INR) Week H/L (INR) 394.2/221 Market Cap (INR Mn) 4,807.4 Equity Shares Outstanding (Mn) % 44% Promoters DII Others 1 Year Avg. trading volume ( 000) % 11

12 Disclaimer Ion Exchange (India) Limited No representabon or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the informabon or opinions contained in this presentabon. Such informabon and opinions are in all events not current aser the date of this presentabon. Certain statements made in this presentabon may not be based on historical informabon or facts and may be "forward looking statements" based on the currently held beliefs and assumpbons of the management of Ion Exchange (India) Limited ( Company or IONEX ), which are expressed in good faith and in their opinion reasonable, including those relabng to the Company s general business plans and strategy, its future financial condibon and growth prospects and future developments in its industry and its compebbve and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainbes and other factors, which may cause the actual results, financial condibon, performance or achievements of the Company or industry results to differ materially from the results, financial condibon, performance or achievements expressed or implied by such forwardlooking statements, including future changes or developments in the Company s business, its compebbve environment and polibcal, economic, legal and social condibons. Further, past performance is not necessarily indicabve of future results. Given these risks, uncertainbes and other factors, viewers of this presentabon are cauboned not to place undue reliance on these forward-looking statements. The Company disclaims any obligabon to update these forward-looking statements to reflect future events or developments. This presentabon is for general informabon purposes only, without regard to any specific objecbves, financial situabons or informabonal needs of any parbcular person. This presentabon does not consbtute an offer or invitabon to purchase or subscribe for any securibes in any jurisdicbon, including the United States. No part of it should form the basis of or be relied upon in connecbon with any investment decision or any contract or commitment to purchase or subscribe for any securibes. None of our securibes may be offered or sold in the United States, without registrabon under the U.S. SecuriBes Act of 1933, as amended, or pursuant to an exempbon from registrabon there from. This presentabon is confidenbal and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor RelaBons Management Service company. This PresentaBon has been prepared by Valorem Advisors based on informabon and data which the Company considers reliable, but Valorem Advisors and the Company makes no representabon or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this PresentaBon. This PresentaBon may not be all inclusive and may not contain all of the informabon that you may consider material. Any liability in respect of the contents of, or any omission from, this PresentaBon is expressly excluded. Valorem Advisors also hereby cernfies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. For further details please contact our Investor RelaNons RepresentaNves: VALOREM ADVISORS Mr. Anuj Sonpal Tel: /22/23/24 ion@valoremadvisors.com 12

13 THANK YOU 13