GFL LIMITED — Interim / Quarterly Report 2020

Nov 14, 2019

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GFL LIMITED

QUARTERLY INVESTOR UPDATE Q2FY20

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DISCLAIMER

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This presentation and the following discussion may contain “forward looking statements” by GFL Limited (“GFL” or “the Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future state of affairs, results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of GFL about the business, industry and markets in which GFL operates.

These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond GFL’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements.

Such statements are not, and should not be construed, as a representation as to future performance or achievements of GFL. In particular, such statements should not be regarded as a projection of future performance of GFL. It should be noted that the actual performance or achievements of GFL may vary significantly from such statements.

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INDEX

• Background

• Demerger Scheme

• Background

• Salient features of the Scheme

• Structure before the Scheme

• Structure after the Scheme

• Consolidated Financial Results

• Assets and Liabilities bifurcation

• Shareholding Structure

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BACKGROUND

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• INOX Group is a diversified conglomerate engaged in the business of industrial gases, fluorochemicals, multiplexes, wind

• energy solutions and cryogenic engineering

• Gujarat Fluorochemicals Limited (GFL) has been engaged in the business of manufacturing of chemicals (caustic soda, chlorine, chloromethanes), refrigerants (HCFC22), fluoropolymers (PTFE) and other fluorochemicals, etc

• GFL has also being carrying on other businesses through its investments in two listed entities:

  • 51% stake in INOX Leisure Limited (ILL) – engaged in operating a national chain of multiplex cinema theatres

  • 57% stake in INOX Wind Limited (IWL) – engaged in the business of providing wind energy solutions to its customers, who are primarily IPPs

• The Board of Directors of Gujarat Fluorochemicals Limited (GFL) approved, subject to approval of its Shareholders, Creditors and other regulatory authorities, including those of the Stock Exchanges, Securities Exchange Board of India (SEBI) and the National Company Law Tribunal (NCLT), a Scheme for the demerger of its chemical business into another company that eventually would be a mirror image company GFL

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SALIENT FEATURES OF THE SCHEME

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• Appointed Date of Demerger: April 1, 2019

• Post demerger, the name of GFL is changed to GFL Limited (GFL1) and the name of the company to which the chemical business is transferred, is changed to Gujarat Fluorochemicals Limited (GFL2)

• Share entitlement ratio: 1 equity share of Re. 1 each, fully paid up, in GFL2, for every 1 equity share of Re.1 each, fully paid up, held in GFL.

• All assets and liabilities are recorded in GFL2 at book values.

• GFL2 got listed on the BSE and NSE on 16th October 2019.

• Both the companies are now separately listed on the BSE and NSE.

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STRUCTURE BEFORE THE SCHEME

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Promoters Public
68.33% 31.67%
GFL
51.32% 56.98%
Chemical Business Cinema Business Wind Energy Business Other Businesses
-
100% stake in IIL
-
Ranjitnagar Plant
-
100% stake in IRL
-
Dahej Plant
-
Captive Wind Power Plants
-
100% stake in GFL Singapore
-
100% stake in GFL USA
-
100% stake in GFL Germany
-
74% stake in GFL Morocco
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STRUCTURE AFTER THE SCHEME

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Promoters Public
Promoters Public
68.33% 31.67%
68.33%
31.67%
GFL 2
GFL 1
51.32% 56.98%
Chemical Business
Cinema Wind Energy
Other Businesses
Business Business
-
Ranjitnagar Plant
- -
Dahej Plant 100% stake in IIL
- -
Captive Wind Power Plants 100% stake in IRL
-
100% stake in GFL Singapore
-
100% stake in GFL USA
-
100% stake in GFL Germany
-
74% stake in GFL Morocco
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CONSOLIDATED FINANCIAL RESULTS

Q2FY20 YoY ANALYSIS

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REVENUES
814
661
19 %
Q2 FY19 Q2 FY20
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EBITDA ** & EBITDA MARGIN

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25%
13%
166
107
55 %
Q2 FY19 Q2 FY20
EBIDTA EBIDTA %
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In Rs. Cr

PAT[#] & PAT MARGIN

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3% -1%
21
0 135 %
21
0
-7
Q2 FY19 Q2 FY20
-7
PAT IT Credit PAT %
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H1FY20 YoY ANALYSIS

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REVENUES
1,490 1,465
2 %
H1 FY19 H1 FY20
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EBITDA ** & EBITDA MARGIN

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24%
17%
358
258
39 %
H1 FY19 H1 FY20
EBIDTA EBIDTA %
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PAT[#] & PAT MARGIN

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4% 1%
66
0
66 82 % 12
0
12
H1 FY19 H1 FY20
PAT IT Credit PAT %
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Note: * Revenue from Operations, ** EBITDA excluding Other Income, [# ] PAT including IT Credit of earlier year

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CONSOLIDATED – REVENUE BREAKUP

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In Rs. Cr

CONSOLIDATED REVENUES – BUSINESS WISE BREAKUP

814

	437 12 365 42 % 78 % 68 %	437 12 365 42 % 78 % 68 %	~~0~~ 139 3 520 661 Q2 FY20	~~0~~ 139 3 520 661 Q2 FY20
	~~0~~ Q2 FY19
% Share			Q2 FY19	Q2 FY20
GFL Limited			0.0%	0.0%
Wind Turbine ManufacturingBusiness			53.6%	21.0%
Wind FarmingBusiness			1.5%	0.4%
Film Exhibition Business			44.9%	78.6%
Other Subsidiaries/Intersegment			0.0%	0.0%

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1490
1465
47
780
30 %
1013
18
66 %
867
6
54 % 398
0 0
-176
H1 FY19 H1 FY20
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% Share	H1 FY19	H1 FY20
GFL Limited	0.0%	0.0%
Wind Turbine ManufacturingBusiness	58.2%	27.2%
Wind FarmingBusiness	1.2%	0.4%
Film Exhibition Business	52.4%	69.2%
Other Subsidiaries/Intersegment	-11.8%	3.2%

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CONSOLIDATED – EBITDA BREAKUP

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In Rs. Cr

CONSOLIDATED EBITDA – BUSINESS WISE BREAKUP

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166
107 251 %
91 %
48 168
102 %
8
51 1027 %
0 1 -1-1 0
Q2 FY19 Q2 FY20
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% Share	Q2 FY19	Q2 FY20
GFL Limited	-0.1%	-0.8%
Wind Turbine ManufacturingBusiness	47.9%	-0.6%
Wind FarmingBusiness	7.5%	0.4%
Film Exhibition Business	44.7%	101.2%
Other Subsidiaries/Intersegment	0.0%	-0.2%

	~~0~~ 122 11 131 258 142 % 82 % 69 % 529 %	~~0~~ 122 11 131 258 142 % 82 % 69 % 529 %	~~-1~~ 37 2 318 2 358 H1 FY20	~~-1~~ 37 2 318 2 358 H1 FY20
	~~-6~~ H1 FY19
%	Share	H1 FY19		H1 FY20
	GFL Limited	-0.1%		-0.4%
	Wind Turbine ManufacturingBusiness	47.1%		10.4%
	Wind FarmingBusiness	4.4%		0.6%
	Film Exhibition Business	50.9%		88.8%
	Other Subsidiaries/Intersegment	-2.3%		0.6%

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CONSOLIDATED – PAT BREAKUP

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In Rs. Cr

CONSOLIDATED PAT – BUSINESS WISE BREAKUP

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-7
146 %
0
21
0 2613 % 35
14
8 8
0 -1 7014 %
-46
10 %
-5
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Q2 FY19 Q2 FY20

% Share	Q2 FY19	Q2 FY20
GFL Limited	36.1%	113.7%
Wind Turbine ManufacturingBusiness	-3.0%	-616.4%
Wind FarmingBusiness	-0.9%	-70.4%
Film Exhibition Business	66.8%	469.0%
Other Subsidiaries/Intersegment	1.0%	4.1%

	14 16 10 -60 ~~-4~~ -10 51 62 -6 3 66 12 H1 FY19 H1 FY20 21 % 178 % ~~714%~~ 12 %	14 16 10 -60 ~~-4~~ -10 51 62 -6 3 66 12 H1 FY19 H1 FY20 21 % 178 % ~~714%~~ 12 %	14 16 10 -60 ~~-4~~ -10 51 62 -6 3 66 12 H1 FY19 H1 FY20 21 % 178 % ~~714%~~ 12 %
% Share		H1 FY19	H1 FY20
GFL Limited		21.9%	138.3%
Wind Turbine ManufacturingBusiness		14.7%	-509.9%
Wind FarmingBusiness		-5.3%	-83.3%
Film Exhibition Business		77.3%	526.5%
Other Subsidiaries/Intersegment		-8.6%	28.4%

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CONSOLIDATED – ASSETS BREAKUP

Rs. in crores

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2,503
467
2,250
1,866
1,102
45 1,648 39
1,750
7
74
977
741
1,250
1,100 673
14 0
205
1,822
454
1,627
750
1,140 1,086 182
375
851
0
250 232
440
143
(80) (61)
(404)
(250)
(734)
(750)
Fixed Assets Right of Use assets Trade Receivables Other Assets Inventories Financial Assets Deferred Tax Assets
IWL ILL GFL IRL Other/Inter Company Total
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CONSOLIDATED – LIABILITIES BREAKUP

Rs. in crores

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4,000 3,447
117
3,500
1,174
3,000
2,500 2,379
2
681
2,000
1,338
135
21
1,500
277 1,234 857
4
8
2,376 119 242
1,000 53
1,905
1,279
500 1,103 1,000
11
- 11 0
(430) (374) (437)
(500)
Equity Lease liabilities Other Liabilities Trade Payables Borrowings Deferred Tax Assets
IWL ILL GFL IRL Other/Inter Company
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SHAREHOLDING STRUCTURE – GFL LIMITED

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Share Price Performance
210
190
170
150
130
110
90
70
50
30
07-8-19 17-8-19 27-8-19 06-9-19 16-9-19 26-9-19 06-10-19 16-10-19 26-10-19
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% Shareholding – September 2019
Public / Others,
21.21
(22.46)
FII, 4.58 Promoter &
Promoter Group,
(4.71)
68.72
(68.33)
DII, 5.49
(4.50)
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Source: Company
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|||||
|---|---|---|---|
|Market|Data|As on|31.10.2019 (BSE)|
|Market capitalization (Rs Cr)|927|
|Price (Rs.)|84.35|
|No. of shares outstanding (Cr)|10.99|
|Face Value (Rs.)|1.0|
|52 week High-Low (Rs.)|172.28-48.55|
|Key|Investors –September 2019|% Holding|
|Hdfc Trustee Company Ltd|2.40%|
|HDFC Small Cap Fund|1.84%|
|Aditya Birla Sun Life Trustee Private Limited A/c Aditya|
|1.17%|
|Birla|Sun Life|Midcap|Fund|
|FIL Investments (Mauritius) Ltd|1.13%|
|Vanguard Emerging Markets Stock Index Fund, A Series Of|
|0.37%|
|Vanguard International Equity Index Funds|
|Dimensional Emerging Markets Value Fund|0.35%|
|0.32%|
|Vanguard Total International Stock Index Fund|
|India Opportunities Growth Fund Ltd - Pinewood Strategy|0.29%|
|DFA Investment Dimensions Group|0.24|
|Ishares Core Emerging Markets Mauritius|0.22|

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FOR FURTHER QUERIES:

Deepak Asher Director and Group Head (Corporate Finance) Email : deepakasher@gfl.co.in

Dhruv Shah Company Secretary Email : dhruv.shah@gfl.co.in

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