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Vikas EcoTech Limited Investor Presentation 2018
62285_rns_2018-11-19_0245dbeb-1894-462f-88ae-d5fde3f38b4b.pdf
Investor Presentation
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VEL/IP/19/11/2018 19
th November, 2018
| The General Manager-Listing | The General Manager-Listing |
|---|---|
| National Stock Exchange Limited | Bombay Stock Exchange Limited |
| Exchange Plaza, Bandra-Kurla Complex | Phiroze JeejeeBhoy Towers |
| Bandra(E) Mumbai-400051 | Dalal Street Fort, |
| Fax:- 022-26598235/36 | Mumbai-400001 |
| NSE Symbol- VIKASECO | Scrip Code:- 530961 |
Sub: - Q2 FY19 Earnings Presentation
Dear Sir/ Madam,
Please find attached herewith Earnings Presentation for the 2nd quarter and Half year FY 2018- 19 results of the Company for your record and further dissemination.
Kindly place it on record and update your website.
Thanking you
Shareholder Value Creation through a De-Risked Business Model
| New ProductDevelopment | oo | R&D team innovating several new compounds for testing & eventual introduction inthe marketIntroduced new alternative to lead stabiliser, apart from Organotins: Calcium Zincstabiliser | |||
|---|---|---|---|---|---|
| Vertical Integration | o | Demerger approval by NCLT complete; Low margin entity 'Vikas Multicorp Ltd.' to belisted separately at exchanges | |||
| Geographical Expansion | oo | Low availability of key raw material (2-EHTG) continues to hamper OrganotinproductionNew deals & agreements constituted to ensure stable environment going forward | |||
| Shareholder ValueCreation | oo | Tapping newer clients in pvc pipes, footwear, automotive, pharma, etc. sectors withpresence across IndiaFirst sales to USA for Organotin stabilisers marked new exposure to largestinternational market |
Vikas Ecotech Limited Q2FY19 Corporate Presentation
Backward Integration to ensure Scalable Organotin Production
Exploring Options to Increase US Sales
JV with Chinese Partner
| <One of World's largest producerfor Tin metal & Tin chemicals | As a result of increased US duties, the Chinese producers of Organotins are exploring supplypossibilities from India. They are considering moving manufacturing operations overseas |
|---|---|
| <Among the Top 10 groupenterprises prioritised byProvincial Govt. | and are exploring strategic tie-ups for US market sales.Talks ongoing for long-term agreement with Chinese partner for sale of Organotins to USAunder a joint brand + technical support. |
Other Strategic Updates
| National Green Tribunalruling on Lead in PVCpipes | o | NGT has Instructed Ministry of Environment, Forests & Climate Changes (MoEF &CC) to finalise standards for usage of Lead in PVC pipes along with Bureau of IndianStandards (BIS) and implement a complete phase out of Lead in PVC pipes within aspecified time-frame |
|---|---|---|
| Government Action | In May 2018, the MoEF & CC proposed draft rules to regulate the use of leadstabilizers in the manufacture of PVC pipes and fittings.The guidelines have indicated timelines of 1-3 years for phasing out lead stabilizers inmost of the PVC pipes.Proposed ruling is expected shortly from the ministry along with the new BISstandards laying down the guidelines for use of Lead stabilizers. | |
| Fire InsuranceClaim | o | Insurance Surveyor has submitted the final report of company's claim to OrientalInsurance Co. Ltd. in November, 2018. Company expects the settlement of claimduring the current Financial Year. |
| INR Mn | Q2 FY19 | Q1 FY19 | H1 FY19 | FY18 |
|---|---|---|---|---|
| Net Revenues | 487 | 589 | 1,075 | 2,402 |
| Expenses | 367 | 462 | 829 | 1,838 |
| EBITDA | 120 | 127 | 246 | 564 |
| EBITDA Margin | 24.6% | 21.5% | 22.9% | 23.5% |
| Depreciation | 11 | 11 | 22 | 36 |
| Finance Cost | 20 | 29 | 49 | 108 |
| PBT | 88 | 87 | 175 | 420 |
| PBT Margin | 18.2% | 14.7% | 16.3% | 17.5% |
| Tax Expense: | 19 | 31 | 51 | 145 |
| PAT | 69 | 56 | 125 | 275 |
| PAT Margin | 14.2% | 9.5% | 11.6% | 11.4% |
| Basic EPS | 0.25 | 0.20 | 0.45 | 0.98 |
Q2FY19: Stable Performance Amid Supply Constraints
Demerged financial statements
| ASSETS (INR Mn) | H1 FY19 | FY18 | EQUITY AND LIABILITIES (INR Mn) | H1 FY19 | FY18 |
|---|---|---|---|---|---|
| Non-current assets | Equity | ||||
| Property, plant and equipment | 290 | 272 | Equity share capital | 280 | 280 |
| Financial assets | Other equity | 1,138 | 1,012 | ||
| Loans | 5 | 5 | |||
| Investments | - | 48 | Non-current liabilities | ||
| Deferred tax assets (net) | 18 | 18 | Financial liabilities | ||
| Other non-current assets | 190 | 134 | Borrowings | 43 | 54 |
| Provisions | 1 | 4 | |||
| Current assets | |||||
| Inventories | 957 | 786 | Current liabilities | ||
| Financial assets | Financial liabilities | ||||
| Trade receivables | 1,217 | 1,391 | Borrowings | 1,220 | 1,335 |
| Cash and cash equivalents | 3 | 33 | Trade payables | 263 | 296 |
| Other bank balances | 131 | 56 | Other financial liabilities | 26 | 27 |
| Other financial assets | 3 | 1 | Provisions | 0 | 1 |
| Assets Held for Sale | - | 33 | Other current liabilities | 43 | 37 |
| Other current assets | 386 | 400 | Current tax liabilities (net) | 184 | 134 |
| TOTAL | 3,200 | 3,178 | TOTAL | 3,200 | 3,178 |
Standalone Balance Sheet
Demerged financial statements
For further information, please contact -
Ms. Tanya Khosla Go India Advisors +91 9769387813 tanya@goindiaadvisors.com
9 Vikas Ecotech Limited Q2FY19 Corporate Presentation