Seya Industries Ltd — Earnings Release 2020

Aug 5, 2019

August 5, 2019

To, Corporate Relationship Department BSE Limited P.J. Tower, Dalal Street, Fort, Mumbai Script Code: 524324

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To, Listing Compliances National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra East, Mumbai - 400051 Symbol: SEYAIND

Sub: Results – Press Release

Dear Sir/Madam,

Please find enclosed following

1. Press Release for the Results for June 2019

2. Earnings Call Invite – Rescheduled from 11:00 a.m. to 12:00 noon on August 6, 2019

Kindly take the same on record.

Thanking you

Yours faithfully For and on behalf of the Board of Directors Seya Industries Ltd

Manisha Solanki

Company Secretary & Compliance Officer

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CIN: L99999MH1990PLC058499

Investors Release

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Seya Industries Ltd

Business Growth Continues with Steady Growth in EBITDA/tonne

Mumbai, 05[th] August 2019 :

Seya Industries Ltd, Mumbai based emerging leader in specialty chemical Industry, has announced its results for June’19 quarter ended.

Result Highlights:

Particulars(Rs. In Crs)	Q1FY20	Q1FY19	YoY %	Q4FY19	Q-o-Q
Sales Volume(MTPA)	4,871	5,053	(3.6%)	4,665	4.4%
Total Revenue(Net of taxes)	98.2	105.1	(6.6%)	95.4	2.9%
EBITDA	37.9	34.5	9.7%	33.7	12.3%
EBITDAper tonne	77,716	68,297	13.8%	72,270	7.5%
PAT	23.4	18.3	27.4%	26.2	(10.9%)

Sales Volume:

• Volume was lower on Y-o-Y basis on the back of Increased Captive consumption to Manufacture High-Value and High Margin Products

• Volume was higher on Q-o-Q basis on the back of Increased demand for expanded capacity of High Value and High Margin Products recently commissioned by the Company.

Total Revenue (Net of taxes):

• Revenue was down by 6.6% to Rs. 98 Cr in Q1FY20 as compared to Rs. 105 Cr in Q1FY19 due to normalization of china led growth in realization per tonne compare to last year same period

• On Q-o-Q basis, we saw revenue growth of 4.4% due to better product mix and expanded capacity of High Value and High Margin Products recently commissioned by the Company

EBITDA per tonne:

• Due to continuous effort of moving up the value chain and increase contribution from recently expanded capacity of high-margin products. Our EBITDA per tonne increased by 13.8% on y-o-y basis and 12.3% on Q-o-Q basis.

PAT:

• Commercialisation of expanded capacity of high margin product, better product mix and overall efficiency resulting into high profitability growth of 27.4% on Y-o-Y to Rs. 23 crs.

• On Q-o-Q basis, PAT was lower due to tax adjustment in Q4FY19 on the back of Balancing figures between the Audited figures in respect of the Full Financial year and the year to date figures up to the third quarter, hence the same are not comparable with Q1FY20

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Investors Release

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Key Updates:

• Listing of Securities on National Stock Exchange

The Company got listed on National Stock Exchange of India Ltd. (NSE) with effect from July 11, 2019.

The Company has successfully fulfilled all the criteria laid down by NSE for the listing which will further give an access to the investors who deal with the equities on the National Stock Exchange

Description of Security	Symbol	No. of Securities	ISIN number
Equity shares of Rs. 10/-	SEYAIND	2,46,00,000	INE573R01012

• Capacity Expansions:

Successful completion of PNA capacity addition of 4,000 MTPA and started commercial production of the same. The contribution of the same have started reflecting in Q1FY20

• De-bottlenecking and Improvement of Efficiencies at Existing Capacities:

The Company is committed to take initiatives to continuously upgrade its manufacturing facilities. Beyond continuous process improvements and effective debottlenecking of our existing asset base, we also upgrade the effluent treatment plant simultaneously to protect the environment. The benefits of these will be witnessed through higher margins in the years to come.

• Mega Green-Field Project Under Implementation:

With a clearly defined vision to emerge as an Integrated Global producer for Specialty Chemicals and having invested Rs. 5 Bn in Capex in last 6 years, Company is progressing on its journey for another round of expansion at cost of Rs. 7.35 Bn, to be commissioned and commercialized during H2FY20 with additional installed capacity of 527,900 MTPA.

The proposed expansion is progressing and has accomplished 80% Site Completion until June 2019.

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Investors Release

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Commenting on the performance Mr. Ashok Rajani, Chairman & Managing Director, Seya Industries Ltd said

“It is a great pleasure that the Financial Year 2020 has started on a very good note. Your Company has delivered robust overall business performance and witnessed significant improvement in EBIDTA/tonne on YoY basis on the backdrop of increase revenue contribution from downstream products, commercialisation of expanded capacity of higher margin product and softening of raw material prices. During the quarter, due to normalization of China led growth, the realization per tonne was comparatively lower on Y-o-Y basis.

Expansion in the higher margin products portfolio would lead to next leg of growth for the Company. The future outlook of these downstream products looks promising. The commercialisation of ongoing mega greenfield expansion project is expected to contribute substantial portion of our volume and revenue going ahead leading to sustainable growth in profitability.

In the last few years, we had taken various initiatives like backward integration to reduce the volatility and dependability for some of our key raw materials, focusing towards product & process improvement, forward integration into high margin downstream products, customer alignment, and better utilization of our assets to build the Company for longterm sustainable growth.

We have already started receiving the benefits of our efforts to innovate in products and bring efficiencies in system. Moving forward, we reiterate our Confidence in our ability to deliver Improving Performance and increased Shareholders Value.”

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Investors Release

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About Seya Industries Limited:

Seya Industries Limited (BSE Code: 524324) a Company promoted by Technocrats, is engaged in manufacturing of Specialty chemicals at its state of the art manufacturing facilities in MIDC Tarapur, Boisar a notified chemical manufacturing zone 90kms from Mumbai which have wide spectrum of applications in the manufacture of Pharmaceuticals (like Paracetamol, floxacins, etc), Personal & Health Care Products (like Hair dyes), Printing Inks & Paints (used in Laser/Ink jet Printers, for Road markings, etc), Agrochemicals (like DDT, etc) Insecticides/Pesticides (like Quinalphos, Mortein, Baygon, etc), Rubber chemicals (for Leather protection), Textile dyes, Thermic fluids (used as heating medium), etc. The company’s strength lies in its wide product offerings, ability to adapt to new markets and being environmentally friendly. As part of its management system, Seya has developed a detailed technology transfer program to ensure that not only do the specialty chemicals are safely transferred to customer’s but all regulatory requirements for the products, packaging and transport are addressed. Seya can undertake production runs that are customer specific ranging from a few kilos to thousands of tonnes. Its Research and Development team have extensive experience in the design and scaling up of processes, supported by analytical team and facilities which can quickly bring production to a commercial scale and meet customer timeline targets. For further information, please visit www.seya.in

Safe Harbor:

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.

For further details please contact:

Company	Investor Relations Advisors
Seya Industries Ltd CIN No: U24119MH2002PLC136003 Name: Ms. Manisha Solanki Email id:corporate@seya.in Tel No.: 022 – 2673 2894	Strategic Growth Advisors Pvt Ltd. CIN No: U74140MH2010PTC204285 Name: Ms. Neha Shroff / Mr. Shrikant Sangani Email id: neha.shroff@sgapl.net/ shrikant.sangani@sgapl.net Tel No: +91 77380 73466 / +91 79774 15681

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Seya Industries Limited

Cordially invites you to its

Earnings Call

To discuss the operational and financial performance for Q1FY20

Day/Date : Tuesday, 6[th] August 2019 Rescheduled Time : 12:00 noon

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Local Access Numbers
+91 22 6280 1309
Primary Numbers:
+91 22 7115 8210
Local Access Number:
+91-7045671221
(Available all over India)
USA: 1 866 746 2133
Toll Free Numbers: UK: 0 808 101 1573
Singapore: 800 101 2045
Hong Kong: 800 964 448
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Participants:

Mr. Amrit A. Rajani – Promoter & Chief Operating Officer

We look forward to your participation

RSVP

Neha Shroff/ Shrikant Sangani Strategic Growth Advisors Pvt. Ltd. Contact: +91 22 6114 6603/ +91 22 6114 6677