INVESTOR PRESENTATION. May 2017

Transcription

1 INVESTOR PRESENTATION May 2017

2 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

3 Contents Group overview Sudarshan culture Financial results Business outlook 3

4 Contents Group overview Sudarshan culture Financial results Business outlook 4

5 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

6 Highlights Growth engine - in pursuit of the vision o o From a non existent to the 5 th 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 o o o Introduced 100+ new products - High Performance range, Cosmetic range Best in class infrastructure for Analytical and Application testing Best in class R&D professionals 6

7 Highlights Reliability and Sustainability o o 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 o Among Top 50 Dream Companies to Work o Certified as Great place to Work 7

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

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

10 Our Infrastructure - R&D capabilities 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 10

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

12 Contents Group overview Sudarshan culture Financial results Business outlook 12

13 13 Sudarshan culture - Four components

14 14 Sudarshan culture - Higher purpose

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

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

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

18 Contents Group overview Sudarshan culture Financial results Business outlook 18

19 Consolidated Financials FY16-17 Fiscal year Amounts in Million Total income 15,226 14,093 PBDIT 1, % 1, % PBIT 1, % 1, % PBT 1, % % PAT 1, % % Strategic initiatives have helped in improving operating profit margins 19

20 Standalone Financials FY16-17 Fiscal year Amounts in Million Total income 12,929 12,073 PBDIT 1, % 1, % PBIT 1, % 1, % PBT 1, % % PAT % % 20

21 Standalone Financials (Quarter) For the quarter Total income 3,336 3,178 Amounts in Million PBDIT % % PBIT % % PBT % % PAT % % 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

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

23 Key ratios - Standalone As on Debt-Equity Interest coverage Current ratio EPS (basic & diluted) 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

24 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

25 Contents Group overview Sudarshan culture Financial results Business outlook 25

26 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

27 Thank You

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