Apcotex Industries Limited — Investor Presentation 2021

Jan 29, 2021

Date: 29th January 2021

To,	To,
Manager -Department of Corporate Services	The Manager -Listing Department,
BSE Limited	The National Stock Exchange of India Limited
Phiroze Jeejeebhoy Towers,	Exchange Plaza, Plot No. C/1,
Dalal Street,Fort,	Block G, Bandra -Kurla Complex,
Mumbai -400 001	Bandra (East),
	Mumbai -400 051
Scrip Code: 523694	Symbol: APCOTEXIND

Sub: Earnings Presentation – January 2021 (Q3 – FY 2020-21)

Dear Sir/Madam,

Please find enclosed herewith Earnings Presentation – January 2020. The same is for your reference and records.

Thanking you,

For Apcotex Industries Limited

Anand V Kumashi GM – Finance & Company Secretary

EARNINGS PRESENTATION 9M /Q3-FY21

Executive Summary

OVERVIEW

• ▶ Apcotex Industries Ltd (Apcotex) is a leading producer of Synthetic Rubber (Nitrile Rubber, High Styrene Rubber, Nitrile Polyblends and Nitrile Powder) and Synthetic Latex (XSB Latex, VP Latex, Styrene Acrylics and Nitrile Latex) in India.

• ▶ The company has one of the broadest range of Emulsion Polymers available in the market today.

• ▶ The various grades of Synthetic Rubber find application in products such as Automotive Components, Hoses, Gaskets, Rice De-husking Rollers, Printing and Industrial Rollers, Friction Materials, Belting and Footwear.

• ▶ Apcotex is listed on both the BSE and NSE and has an approximate market capitalisation of INR 8,593 Mn as on 31st December, 2020.

• ▶ SYNTHETIC LATEX

  • ▷ Paper/ Paper Board, Carpet, Construction, Tyre Cord, Speciality.

• ▶ SYNTHETIC RUBBER

  • ▷ Automobile, Footwear, Rice Rolls.

BUSINESS MIX MARQUEE CLIENTS MANUFACTURING

• ▶ SYNTHETIC LATEX
  • ▷ ITC Ltd, BILT, JK PAPER, Pidilite Industries, MRF, SRF,Century Enka, etc.
• ▶ SYNTHETIC RUBBER

▷ .

▷ Paragon Footwear, Ajanta Footwear, Relaxo Footwear, Jayshree Polymers, Parker Hannifin, etc.

• ▶ Taloja Facility: Maharashtra
  • ▷ 55,000 MTPA Synthetic Latex
  • ▷ 7,000 MTPA High Styrene Rubber
• ▶ Valia Facility: Gujarat
  • ▷ 21,000 MTPA Nitrile Rubber and Allied Products.

FY20 FINANCIALS

Revenue - INR 4,960 Mn Operating EBITDA - INR 334 Mn PAT- INR 166 Mn

Company Overview

Revenue (INR Mn) and Operating EBITDA Margin (%)

• ▶ The company's Taloja plant was established in 1980 as a division of Asian Paints (India) Ltd. In 1991, the division was spun off as a separate company, which was headed by Mr. Atul Choksey, former MD of Asian Paints. The company is currently headed by Abhiraj Choksey who is the Managing Director.
• ▶ Apcotex has a significant global presence and for last few years has done business in all continents and several countries.
• ▶ It is one of the leading producers of Synthetic Rubber and Synthetic Latex in India.
• ▶ Its state-of-the-art manufacturing plants are strategically located on the western coast of India.
• ▶ Over the past several years, the company has developed a strong Research & Development base, which has enabled them to develop, manufacture and export products and compete effectively against global players.
• ▶ Apcotex Industries has a workforce strength of over 450 fulltime employees.

9M/Q3-FY21 Financial Highlights

Q3-FY21 Financial Highlights		9M-FY21 Financial Highlights
INR 1,646 Mn	INR 243 Mn	INR 3,537 Mn	INR 386 Mn
Total Revenue	Operating EBITDA	Total Revenue	Operating EBITDA
14.76%	INR 166 Mn	10.91%	INR 216 Mn
Operating EBITDA Margin	Net Profit	Operating EBITDA Margin	Net Profit
10.09 %	INR 3.20 /share	6.11 %	INR 4.16 /share
Net Profit Margin	EPS	Net Profit Margin	EPS

Q3-FY21 Operational Highlights

• Business Performance: This quarter we have been able to achieve highest ever quarterly revenue of INR 164 Cr. In the terms of volumes, also we have achieved Highest ever quarterly volumes sales including exports. In the terms of EBITDA, PBT and PAT also we have achieved the highest no. in this quarter which are INR 25.67 Cr, 21.36 Cr. And 16.6 Cr respectively.
• Project Highlights: Out of INR 130-140 Cr capex plan from October 1, 2020 to December 31, 2021, the following are the major projects:
  • o XNBR Latex for Gloves (INR100 Cr): Detailed design completed and working on implementation plan, subject to permissions, expect commissioning during Q3 of FY 21-22.
  • o De-bottlenecking: At Taloja Plant (approx INR 15 Cr) to increase Latex manufacturing capacity by 15-20%

• Anti-dumping:

• o In the terms of Korea sunset review: Directorate General of Trade Remedies (DGTR) recommended extending duty for another 5 years on November 24, 2020. Awaiting for the notification from the Department of Revenue, Ministry of Finance but previous anti dumping duty from Korea has lapsed on December 3, 2020.
• o On the other hand Apcotex has filed a fresh petition against Russia, China, Japan and EU. Public hearing completed and awaiting final findings from DGTR.

Q3-FY21 Income Statement (As per IndAS)

Particulars (INR Mn)	Q3-FY21	Q3-FY20	Y-o-Y	Q2-FY21	Q-o-Q
Revenue	1,646	1,096	50.2%	1,293	27.3%
Total Expenses	1,403	1,090	28.7%	1,108	26.6%
Operating EBITDA	243	6	NA	185	31.4%
Operating EBITDA Margin	14.76%	0.55%	NA	14.31%	45 Bps
Depreciation	35	36	(2.8)%	40	(12.5)%
Finance Cost	8	2	NA	14	(42.9)%
Other Income	14	14	NA	12	16.7%
PBT	214	(18)	NA	143	49.7%
Tax	48	(4)	NA	27	77.8%
PAT	166	(14)	NA	116	43.1%
PAT Margin	10.09%	-	NA	8.97%	112 Bps
Other Comprehensive Income	91	15	NA	36	NA
TotalComprehensive Income	257	1	NA	152	69.1%
Diluted EPS (INR)	3.20	(0.27)	NA	2.24	42.9%

9M-FY21 Income Statement (As per IndAS)

Particulars (INR Mn)	9M-FY21	9M-FY20	Y-o-Y
Revenue	3,537	3,804	(7.0)%
Total Expenses	3,151	3,550	(11.2)%
Operating EBITDA	386	254	52.0%
Operating EBITDA Margin	10.91%	6.68%	423 Bps
Depreciation	113	98	15.3%
Finance Cost	30	9	NA
Other Income	44	47	(6.4)%
PBT	287	194	47.9%
Tax	71	58	22.4%
PAT	216	136	58.8%
PAT Margin	6.11%	3.58%	253 Bps
Other Comprehensive Income	162	8	NA
TotalComprehensive Income	378	144	NA
Diluted EPS (INR)	4.16	2.62	58.8%7

Historical Income Statement

Particulars (INR Mn)	FY18	FY19	FY20	9M-FY21
Revenue	5,382	6,257	4,960	3,537
Total Expenses	4,744	5,581	4,626	3,151
Operating EBITDA	638	676	334	386
OperatingEBITDA Margin	11.85%	10.80%	6.73%	10.91%
Depreciation	121	118	134	113
Finance Cost	16	18	13	30
Other Income	71	77	59	44
PBT	572	617	246	287
Exceptional Items	15	-	-	-
Tax	171	151	80	71
PAT	386	466	166	216
PAT Margin	7.17%	7.45%	3.35%	6.11%
Other Comprehensive Income	(3)	(2)	(56)	162
TotalComprehensive Income	383	464	110	378
Diluted EPS (INR)	18.63	8.99	3.21	4.16

Balance Sheet

Particulars(INR Mn)	FY-19	FY-20	H1-FY21
Shareholders Fund	2,778	2,513	2,633
Equity Share Capital	104	104	104
Other Equity	2,674	2,409	2,529
Total Non Current Liabilities	86	349	367
Deferred Tax liabilities	14	57	74
Borrowings	10	226	222
Long Term Provision	28	29	29
Other Financial Liabilities	34	37	42
Total Current Liabilities	906	1,107	938
Short Term Borrowings	30	189	92
Trade Payables	526	460	327
Other Current Liabilities	240	374	428
Short Term Provision	4	5	4
OtherCurrentLiabilities	106	79	87
TOTAL EQUITY & LIABILITIES	3,770	3,969	3,938

Particulars(INR Mn)	FY-19	FY-20	H1-FY21
Total Non Current Assets	1,624	1,916	2,148
Property, Plant andEquipment	750	1,239	1,447
Capital Work in progress	212	193	46
Non Current Investments	428	334	520
IntangibleAssets	14	9	7
Current Tax Assets (net)	38	55	57
Other Non Current Assets	182	86	71
Total Current Assets	2,146	2,053	1,790
Investments	261	211	387
Inventories	482	597	381
Trade Receivables	1,112	891	819
Cash & Cash Equivalents	57	117	39
Other BankBalances	44	43	42
Short Term loans & Advances	2	3	3
Other Financial Assets	40	60	35
Other Current Asset	148	131	84
TOTAL ASSETS	3,770	3,969	3,938

Historical Performance Indicators

FY18 FY19 FY20 9M-FY21

Apcotex Industries Ltd Disclaimer: This presentation and the accompanying slides (the "Presentation"), which have been prepared by Apcotex Industries Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation 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 Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.

Valorem Advisors Disclaimer:

Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation 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 Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies 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 feel free to contact our Investor Relations Representatives:

Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-49039500 Email: apcotex@valoremadvisors.com

Mr. Anand Kumashi Apcotex Industries Limited CIN: L99999MH1986PLC039199 Email: avkumashi@apcotex.com