Phillips Carbon Black Limited. Efficient Growth November 2015

Transcription

1 Phillips Carbon Black Limited Efficient Growth November

2 The Group Companies RP- Sanjiv Goenka Group Power & Natural Resources Carbon Black Retail Media & Entertainment Infrastructure IT & Education 2

3 6 Business Sectors, 15+ companies, 55,000+ employees, 3,00,000 + shareholders CESC Phillips Carbon Black Spencer`s Retail Firstsource Solutions Saregama India Harrisons Malayalam Fully Integrated Private Power Utility Largest Carbon Black Manufacturer 2 nd Largest Food Based Retailer Top 3 Pure Play BPO Player Biggest Collection of Indian Music Tea and Rubber Plantations 3

4 RP- Sanjiv Goenka Group Revenue (Rs. bn) FY-10 FY`11 FY`12 FY`13 FY`14 FY` EBIDTA (Rs. bn) FY-10 FY`11 FY`12 FY`13 FY`14 FY` Gross Assets (Rs. bn) FY-10 FY`11 FY`12 FY`13 FY`14 FY` Gross Debt (Rs. bn) FY-10 FY`11 FY`12 FY`13 FY`14 FY`15 Group Debt : Equity 1.5 : 1 4

5 Financials of Group companies (Rs. bn ) Gross Revenues (FY`15) EBIDTA (FY`15) Net Profit (FY`15) Current Market cap Promoter Holding Institutional Holding CESC % 42% Firstsource Solutions % 15% Spencer`s Retail (0.67) (1.51) - 100% - Haldia Energy 1.73 (0.82) (0.30) - 100% - Crescent Power % - Surya Vidyut % - Phillips Carbon Black % 11% Saregama India % 18% Harrisons Malayalam 3.34 (0.21) (0.35) % 6% DIL Chandrapur (Not fully operational) 1.32 (0.63) (4.58) - 100% - Noida Power % - 5

6 Phillips Carbon Black - at a Glance Business Largest producer of Carbon Black in India and 7th largest in the World Capacity Largest CB Capacity of 4,72,000 MT p.a. across four locations in India Co Generation Green Power Plant at each location aggregating 76MW Customers Leading tyre companies around the globe Exports Exports to over 30 countries Awards Award for Best Environment Management to Kochi unit by Kerala State Government Top Exports award received in Certifications ISO/TS16949:2009, ISO14001: 2004, OHSAS 18001:2007 Stock Listed on BSE (Code ); NSE (PHILIPCARB) 6

7 Key Milestones Aggressive Growth : Total CB Capacity is 4,72,000 MT and 76 MW CPP Golden Jubilee Year Capacity Increase: Kochi: 50,000 MT Mundra : 90,000 MT Capacity increase: Mundra : 50,000 MT Durgapur : 12,000 MT Speciality Carbon Black Business Started with Phillips Petroleum Co, USA at Durgapur with 14,000 MT. Technical collaboration with Columbian Chemical; Total Capacity was 78,000 MT Acquisition of CB division of Gujarat Carbon Ltd, 25,000 MT; Total Capacity was 1,03,000 MT Amalgamation with Carbon & Chemicals, Ltd, Kochi, 40,000 MT; Total Capacity increased to 143,000 MT Total Capacity by 2004 was 270,000 MT PCBL s strength lies in both Greenfield & Brownfield expansion 7

8 Business Profile Market Leadership Largest producer of CB in India for many years - Ranks 7th globally by Capacity Product Mix - Wide Product Portfolio for Rubber black Current installed capacity for CB & CPP Sl.No Location CB (MT) CPP (MW) 1 Durgapur, W.Bengal 1,47, Mundra, Gujarat 140, Palej, Gujarat 95, Kochi, Kerala 90, Total 4,72, Presence in Specialty Black ( Plastic Applications ) Value creating business model Focus on Specialty Black - High performance Rubber Blacks - Power plants based on tail gas 8

9 Business Profile..contd Shareholding Pattern as on June 15 6% 4% 11% 54% 25% Domestic Positioning in Capacity (KTPY) Promoter Public 100 Others FIIs Domestic Insti PCBL SKI India Himadri CCIL RalsonCarbon Market Share Domestic and Export (Lakh MT) 9

10 Business Profile..contd Revenue Split (%) : FY15 CB Revenue Split (%) : FY15 3% 27% 97% 73% Carbon Black Power National International EBITDA Split ( Rs. Crs, %) : FY15 (Rs 49 Crs) [PERCENT AGE] (Rs [VALUE] Crs) [PERCE Carbon Black Power 10

11 Highlights 1 Globally accepted Carbon Black brand 2 Wide range of product portfolio in rubber black 3 Leading speciality black player in India 4 In house Research & Development centre 5 Manufacturing facilities & virtual plants strategically located near customer locations 11

12 Global Foot Prints U.K GERMANY ITALY CHARLESTON FRANCE TURKEY IRAN CHINA HOUSTON USA ISRAEL SAUDI ARABIA NIGERIA EGYPT UAE JAPAN NEPAL S. KOREA BANGLADESH THAILAND MALAYSIA TAIWAN ETHOPIA VIETNAM PHILIPPINES PERU BRAZIL KENYA SRI LANKA INDONESIA AUSTRALIA NEW ZEALAND Market Presence Decanting Station / Warehouses

13 Customer Profile

14 Outlook of Automobile and tyre Industry Automobile Industry expected to grow by around 10% in India in FY 16 Passenger car registered a growth of 8.6% in April Jun 15 with 23.2% growth in MHCV Luxury car market expected to grow at a faster pace with a growth of around 15% ~ 20% Domestic tyre demand expected to grow by around 9 to 10% in FY16 with CAGR of around 11% ~ 12% over next three years According to Crisil research the demand is to be driven by MHCV & Passenger vehicle segments

15 Growth Drivers & Risks Growth Drivers Economic growth driving demand in automobile, construction, electronics sectors Tyre capacities migration to Asia Long term Business tie-up with global tyre customers Moving up the value chain in product portfolio Growing Specialty Black business Key Risks Volatility in crude price Competition from Global CB players in China, Korea, Russia 15

16 Business Acceleration Underway PAST 3 YEARS Steps Taken Now (FY16 Onwards) Poor industry demand Tyre demand Global penetration Growth in both Intl and Dom mkt New customers added High raw material prices FY13-15 New Grades added Dumping from Cost Management China Better power rates Higher Export of power FY16 Onwards Improving Specialty segment Specialty business Forex losses Lower capacity utilization Decline in EBITDA Reduced Finance cost Volume Ramp Up Profitability Boost 16

17 Power Generation mitigates core business risk 120% 100% 80% 60% EBITDA split (%) 233 Crs 244 Crs 119 Crs 155 Crs 28% 27% 31% 58% 210 Crs 23% 40% 72% 73% 69% 77% 20% 42% 0% FY11 FY12 FY13 FY14 FY15 Carbon Black Power 17

18 Sales increase with focus on International market Volume Growth International Market growth New grades of CB added International market growth > domestic market Growth in tyre demand with GDP growth Growth in specialty business New Customers added New grades added for existing customers Strong focus on North America and Europe Expanding customers base Hutchison Tirelobong Toyoda Milliken Mitas Trelloborg CGS Wider Product Portfolio PCBL has added more than ten new grades in last one year which can act as an entry barrier for peers Cleared grid approval process for many International tyre customers Capable to customize the same grade for different customers 18

19 Reducing Finance cost Borrowing cost reduced by 1.5% Fall in working capital requirement by Rs 100 Crs despite volume growth Interest cost to reduce by Rs 25 Crs p.a Fall in Crude Prices Efficient WC Management 19

20 Speciality Business brings efficient growth High demand of specialty CB in plastics fiber, ink and paints More than 10% growth in volumes is expected FDA approval received for specific grade to be used in plastics in developed market Demand from international market is expected to be better than domestic market Strong focus to grow in specialty segment as margin are higher. Currently 2% of volumes being sold in specialty 20

21 Accelerating contribution by power segment FY12 FY13 FY14 FY15 CB Production (MT Lakhs) Power Generation (MU Lakhs) Power Export (MU Lakhs) Avg Selling Price (Rs/Kwh) Power Sale (Rs Crs) Power EBITDA (Rs Crs) POWER BUSINESS TO GROW Carbon Black Volumes Going up Approximately 40% of power generated is used to meet captive requirement, balance 60% is exported to grid CBFS Usage > CBO Usage Increase in Power Tariffs Growth in CB capacity utilization would increase revenue from sale of exported power

22 Financial Overview (Rs. crs) FY11 FY12 FY13 FY14 FY15 Profit & Loss Statement Net Sales EBITDA Depreciation Finance Cost PBT (40) (88) 14 Tax (19) (1) 2 PAT (22) (88) 12 22

23 Performance Summary Particulars Q2FY16 Q1FY16 %Change (QoQ) Q2FY15 %Change (YoY) Production (MT) 82,523 79,070 4% 83,730 (1%) Capacity Utilization(%) 80% 77% 3% 82% (2%) Total Sales Volume (MT) 82,444 83,992 (2%) 82,736 0% Domestic (MT) 59,387 61,485 (3%) 60,504 (2%) Export (MT) 23,057 22,507 2% 22,232 4% Rs Crs Rs Crs Rs Crs Net Sales (incl. other income) % 660 (23%) EBITDA (before forex) % 64 (14%) EBITDA% 11% 10% 1% 10% 1% PBT % % PAT % % Power realization Rate (Rs/KWH) (5%) % 23

24 Performance Summary YTD Particulars YTD Sep FY16 YTD Sep FY15 % Change Production (MT) 161, ,011 2% Capacity Utilization(%) 79% 77% 2% Total Sales Volume (MT) 166, ,981 5% Domestic (MT) 120, ,460 4% Export (MT) 45,564 42,521 7% Rs Crs Rs Crs Net Sales (incl. other income) (23%) EBITDA (before forex) (9%) EBITDA% 11% 9% 2% PBT % PAT % Power realization Rate (Rs/KWH) %

25 Thank You 25