Phillips Carbon Black Limited January 2016

Transcription

1 Phillips Carbon Black Limited January

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

3 Financials of Group companies Gross Revenues (FY`15) EBIDTA (FY`15) Net Profit (FY`15) Current Market cap Promoter Holding (Rs. bn ) 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 % - 3

4 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 Power Plant at each location aggregating 76MW Customers Leading tyre companies around the globe Exports International market presence in 30 countries Awards Award for Best Environment Management to Kochi unit by Kerala State Government Top Exports award received in by AIRIA Certifications Stock Listed on ISO/TS16949:2009, ISO9001: 2008, ISO14001: 2004,OHSAS18001:2007 BSE (Code ); NSE (PHILIPCARB) 4

5 PCBL Journey 270 KT Mundra : 90 KT Mundra & Durgapur : 62 KT Kochi : 50 KT, PCBL Capacity : 472 KT Specialty Blacks Rubber Black Rubber & Specialty Blacks Among the lead players in National Market & International Market presence Started with Phillips Petroleum Co. USA at Durgapur : 14 KT capacity Technical collaboration with Columbian Chemical : 78 KT Acquisition of CB division of Gujarat Carbon Ltd : 103 KT Amalgamation with Carbon & Chemicals, Ltd, Kochi : 143 KT 5

6 Business Profile Market Leadership Largest producer of CB in India for many years - Ranks 7th globally by Capacity CB is a critical raw material for Tyre Industry Product Mix - Wide Product Portfolio for Rubber black - Presence in Specialty Black ( Plastic Applications ) Value creating business model Focus on Specialty Black - High performance Rubber Blacks - Power plants based on tail gas Source : ATMA 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,

7 Business Profile..contd Shareholding Pattern as on Sept 15 Others, 36% FII, 6% DII, 4% Promoter, 54% Domestic Positioning in Capacity (KTPY) PCBL SKI India Himadri CCIL RalsonCarbon Market Share Domestic and Export (Lakh MT) 7 Source : Notch, PCBL estimates

8 Business Profile..contd Revenue Split (%) : FY15 CB Revenue Split (%) : FY15 3% 27% 97% 73% Carbon Black Power National International EBITDA Split ( Rs. Crs, %) : FY15 49, 23% 161, 77% Carbon Black Power 8

9 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 9

10 Global Footprints USA Western Europe Eastern Europe TURKEY ISRAEL IRAN SAUDI ARABIA UAE NEPAL S. KOREA CHINA JAPAN BANGLADESH TAIWAN THAILAND VIETNAM NIGERIA ETHOPIA KENYA SRI LANKA MALAYSIA INDONESIA PHILIPPINES PERU SINGAPORE BRAZIL AUSTRALIA NEW ZEALAND Manufacturing Facilities Market presence/ Warehouses Decanting Stations 10 10

11 Customer Profile AND MANY MORE 11

12 Indian Tyre Industry Overview 39 tyre companies 60 tyre plants 11 ATMA member companies Rs. 50,000 crs tyre industry turnover in India Rs. 10,500 crs tyre exports from India 12% CAGR in last five years Total Tyre Production (Lakhs Nos) Source : ATMA

13 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 13

14 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 High raw material prices FY13-15 Dumping from China New customers added New Grades added Higher Export of power FY16 Onwards Improving Specialty segment Cost Management Forex losses Better power rates Specialty business Reduced Finance cost Lower capacity utilization Decline in EBITDA Volume Ramp Up Profitability Boost 14

15 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 15

16 Sales increase with focus on International market Volume Growth New grades of CB added in the product portfolio International market growth > domestic market Growth in tyre demand with GDP growth Growth in specialty business International Market growth Expansion in the customer base New grades added for existing customers Strong focus on North America and Europe Grades customization as per the customer s requirement US FDA approved grades in specialty product portfolio 16

17 Reducing Finance cost Borrowing cost reduction Fall in working capital requirement despite volume growth Reduction in Interest cost Fall in Crude Prices Efficient WC Management 17

18 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 Growth in CB capacity utilization would increase revenue from sale of exported power CBFS Usage > CBO Usage Increase in Power Tariffs 18

19 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 19

20 Performance Summary Particulars Q3FY16 Q2FY16 %Change (QoQ) Q3FY15 %Change (YoY) Production (MT) 82,806 82, % 80,292 3% Capacity Utilization(%) 81% 80% 0.3% 78% 3% Total Sales Volume (MT) 80,203 82,444 (3%) 77,374 4% Domestic (MT) 57,596 59,387 (3%) 55,910 3% Export (MT) 22,607 23,057 (2%) 21,464 5% Rs Crs Rs Crs Rs Crs Net Sales (incl. other income) (9%) 609 (24%) EBITDA (before forex) % 63 (5%) EBITDA% 13% 11% 2% 10% 3% PBT % 11 78% PAT % 7 19% Power realization Rate (Rs/KWH) (8%) 3.74 (11%) 20

21 Particulars YTD Dec FY16 YTD Dec FY15 % Change Production (MT) 244, ,303 3% Capacity Utilization(%) 79% 77% 3% Total Sales Volume (MT) 246, ,355 4% Domestic (MT) 178, ,371 4% Export (MT) 68,171 63,984 7% Rs Crs Rs Crs Net Sales (incl. other income) (23%) EBITDA (before forex) (8%) EBITDA% 11% 9% 2% PBT % PAT % Power realization Rate (Rs/KWH) %

22 Thank You 22