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=4 Dhanuka Agritech Limited AN ISO 9001 : 2015 COMPANY
Online
Date: 10th June, 2_020
Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G. Block, Bandra- Kurla Complex, Bandra East, Mumbai-400 051
Symbol- DHANUKA
The Department of Corporate Services Listing The Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 Scrip Code: 507717
Sub: Investors Presentation on Audited Financial Results (Standalone & Consolidated) of the Company for the Quarter and Financial Year ended 31st March, 2020 .
Dear Sir,
Pursuant to the Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached above stated Investors Presentation on Audited Financial Results (Standalone & Consolidated) of the Company for the Quarter and Financial Year ended 31st March, 2020.
Duly received and approved by Board in its Meeting held 10th June, 2020.
We hope you will find the same in order.
Thanking You, Yours faithfully,
Encl: a/a
Corporate Office: 14th Floor, Building SA, Cyber City, DLF Phase-Ill, Gurugram-122002, Haryana, (India), . Board : +91-124- 3838 500/501, E-mail : [email protected], Website : www.dl:ianuka.com
Registered Office: 82, Abhinash Mansion Joshi Road, Karol Bagh, New Delhi-110005, Ph. :+9111 23534551, 23534557
CIN:L24219DL1985PLC020126
Dhanuka Agritech Limited (DAL)(BSE: 507717; NSE: DHANUKA)
Q4 and FY2020
Earnings Presentation
June 10, 2020
2
Content Page No.
Performance Highlights 3 – 9
Company Overview 10 – 12
Financial Overview 13 – 14
Table of Content
3
1,1261,415
11.2%12.6%
1.9%
3.9%
5.9%
7.9%
9.9%
11.9%
13.9%
FY 19 FY 20
PAT and PAT Margin
1,460
1,735
14.5%
15.5%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
FY 19 FY 20
EBITDA and EBITDA Margin
10,058 11,201
38.7%36.5%
12.0%
17.0%
22.0%
27.0%
32.0%
37.0%
FY 19 FY 20
Revenue from Operations and Gross Margin
268390
13.9%17.1%
0.0%
5.0%
10.0%
15.0%
20.0%
Q4 FY 19 Q4 FY 20
PAT and PAT Margin
330458
17.1%20.1%
Q4 FY 19 Q4 FY 20
EBITDA and EBITDA Margin
1,927 2,276
42.0%
42.8%
38.0%
38.5%
39.0%
39.5%
40.0%
40.5%
41.0%
41.5%
42.0%
42.5%
43.0%
Q4 FY 19 Q4 FY 20
Revenue from Operations and Gross Margin
Q4 and Full Year FY2020 Result Highlights
All Figures in Rs Mn
Q4 FY2019 vs Q4 FY2020
FY2019 vs FY2020
18% 39% 46%
11% 19% 26%
4
“Driven by the focus of winning customers through planned strategies, the Company’s financial
performance continued to gain momentum quarter after quarter this year. The Company has registered
11.36% growth in Turnover this year, which shows Company’s initiatives have reaped good results.
Being an Agro-industry, Govt. allowed us functioning during the COVID-19 pandemic in lockdown 2, and
hence the impact of lockdown was not much. The masses realized the importance of farmers and
agriculture. With this year’s favourable monsoon forecast coupled with a slew of initiatives announced by
the Govt., we are hopeful of much positive performance in the fiscal year 2020-21. At the same time, we
will remain committed to improving our product mix, ongoing branding initiatives, and new product
offerings. Dhanuka Agritech has always been working towards providing better solutions to farmers and
improving their livelihood. We strongly believe that both, Indian agriculture and Indian farmers have a
bright future. Our company will continue to empower them through such initiatives and help bring
prosperity to our farmer friends.
The company is working towards farmer’s welfare by strengthening Agri-inputs dealer as a strong
extension service provider and for that our ‘Diploma in Agricultural Extension Service in Input Dealers’
(DEASI) program in association with many Agriculture universities stabling new milestone. The Company
keeps adding new products every year through its collaborations and is continuously on the lookout to
bring the latest technology to Indian Farmers.”
Managing Director’s Message
Mr. Mahendra K Dhanuka
Managing Director
5
Particulars (Rs. million) Q4 FY2020 Q4 FY2019 YoY% FY2020 FY2019 YoY%
Revenue from Operations 2,276 1,927 18.1% 11,201 10,058 11.4%
COGS 1,301 1,118 16.4% 7,117 6,167 15.4%
Gross Profit 975 809 20.4% 4,084 3,892 4.9%
Gross Profit Margin (as a % of sales) 42.8% 42.0% 36.5% 38.7%
Employee Benefit Expenses 242 237 1.8% 1,052 1,047 0.5%
Other expenses 276 242 14.0% 1,297 1,385 (6.4%)
EBITDA 458 330 38.6% 1,735 1,460 18.8%
EBITDA Margin (as a % of sales) 20.1% 17.1% 15.5% 14.5%
Depreciation and amortisation expenses 37 30 22.7% 164 123 32.5%
EBIT 420 300 40.2% 1,571 1,336 17.6%
EBIT Margin (as a % of sales) 18.5% 15.6% 14.0% 13.3%
Finance Cost 4 3 20.1% 16 9 74.4%
Other Income 87 64 34.5% 251 212 18.3%
PBT 503 361 39.4% 1,806 1,540 17.3%
Total Tax 113 93 21.0% 392 414 (5.3%)
PAT 390 268 45.8% 1,415 1,126 25.7%
PAT Margin (as a % of sales) 17.1% 13.9% 12.6% 11.2%
Basic EPS 8.20 5.53 48.1% 29.71 23.02 29.1%
Q4 and Full Year FY2020 Income Statement
6
Performance Discussion
FY2020 vs. FY2019
• Revenue from Operations during FY2020 grew by 11.4% Y-o-Y. Fungicides registered 10.4% Y-o-Y growth, Herbicides grewby 18.1% and Insecticides recorded a growth of 12.6%
o Total volumes recorded a growth of 12.7% as against 1.4% last year
• EBITDA: Higher operating leverage aided EBITDA margin expansion by ~100 bps Y-o-Y
• Top 10 products accounted for 32.6% of the total revenue compared to 34.8% last year
• Innovation Turnover Index (ITI) stood at 12% in FY20. It is expected to improve in the coming year led by robust pipeline ofnew launches
Q4 FY2020 vs. Q4 FY2019
• Revenue from Operations grew by 18.1% Y-o-Y driven by strong sales momentum across product segments. Fungicidesregistered 33.0% Y-o-Y growth, Herbicides grew by 32.6% and Insecticides recorded a growth of 14.9%
• EBITDA: Higher operating leverage aided EBITDA margin expansion by ~300 bps Y-o-Y
7
43% 43%
16% 15%
29% 31%
12% 11%
FY 19 FY 20
Insectisides Fungicides Herbicides Others
FY2020 Revenue mix (By Geography and Segment)
Rs. 10,058 mn
• Focus is on expanding the share of fast growing ‘Herbicides’ segment in the medium term
• Well diversified portfolio across business segment and key geographies
All Figures in Rs mn
28% 25%
29% 31%
12% 11%
31% 33%
FY 19 FY 20
North South East West
Rs. 10,058 mn Rs. 11,201 mn Rs. 11,201 mn
8
Innovation Turnover Index
11%
13%
20%
17%
20%
17%
12%
FY14 FY15 FY16 FY17 FY18 FY19 FY20
New Molecules as a % of Total Revenue
• On an average, more than 15% of revenue contribution comes from new product launches
• Acceptance of new molecules to result in increase of Innovation Turnover Index going forward
9
Update on COVID – 19
• Temporarily disruption in operations during the initial
days of the lockdown which resulted in partial
deferment of the Company’s revenues from the month
of March to Q1 FY21
• Operations resumed in a phased manner from the
beginning of April as per Government directives
• Company’s product portfolio falls under essentials
category; hence, major impact is not foreseen to the
business due to the coronavirus pandemic
Business Impact Initiatives Undertaken
• Implemented various measures promptly to protect
employees, communities and operations to ensure
supply chain was not impacted
• Encouraged non-critical operations to work from
home and carry out interactions electronically
• The Company adheres to social distancing norms
across sites and the staff is encouraged to maintain two
meters distance from co-workers and other
stakeholders who operate in and around the sites
10
Why Dhanuka Agritech?
Unique Asset Light Model
Minimal investments required in fixed assets.
Aim is to leverage strong formulation
capabilities by partnering with global
innovators
Robust Pipeline
Focus on margin accretive 9(3) portfolio.
Target to launch 10 new products across all
segments over the next two years
Rural FMCG Play
40 warehouses, 7,000+ distributors and
80,000+ retailers to service the needs of
over 10 million touchpoints across farmers
Profitable Growth
Higher contribution of margin accretive
products, growth in volumes from existing
products to drive return ratios
Global Innovator Tie Ups
World’s leading agrochemical companies
from the US, Japan and Europe have
partnered with Dhanuka Agritech to
introduce latest technology to Indian
farmlands
Diverse Product Portfolio
300+ registrations across Herbicides,
Insecticides, Fungicides and Plant Growth
Regulators, ~90 Products across all
segments
00 o�o 00
-�-
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11
Product Segments
Herbicides Fungicides Insecticides Plant Growth Regulators
Total number of Products 25 16 38 9
% of Revenues (FY2020) 31% 15% 43% 11%
Key Products
Barrier Craze, D-Era,
Dhanutop, Fuzi Super, Maxx-
soy, Nabood, Noweed,
Oxykill, Ozone, Qurin,
Sakura, Sempra, Targa Super,
Weedmar, Dumil 10% SL,
Fenox 1000, Dhanutop Super
Cursor, Dhanteam, Dhanuka
M-45, Dhanustin,
Hexadhan,Conika, Kasu-B,
Godiwa, Vitavax Power,
Lustre, Protocol, Sheathmar,
Sixer, Zerox, Godiwa,
GodiwaSuper, Spectrum
Aaatank, Adfyre, Apple,
Areva, Bombard, Caldan,
Cover, Danfuron, Dhanpreet,
Em-1, Fax, Foster, Markar,
Media, Mortar, Omite, Pager,
Super-D, Superkiller, D-one,
Markar Super, Domar
Dhanvarsha, Dhanuvit,
Dhanzyme Gold, Maxyld,
Wetcit, Suelo
12
Top 10 Brands contribute 33% of Total Revenue
Herbicides Insecticides Plant Growth Regulator
•
s �
13
31.7%29.5% 30.5%
26.0%
20.5%22.8%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
83%
100%
37%
83%
9%
93%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
FY2020 Balance Sheet and Return Ratios
Figures in Rs mn Sep-19 Mar-20
Short Term Debt 70 80
Long Term Debt - -
Total Debt 70 80
Cash & Cash Equivalent 22 263
Net debt/ (Net Cash) 48 (183)
Equity 7,133 7,077
Total Debt/Equity 0.01x 0.01x
CFO/EBITDA (%)
ROE (%) ROCE (%)
Robust return ratios and cash flow generation across business cycles
28.8%
24.2% 24.3%21.8%
17.7%21.0%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
Calculation Methodology: ROE = PAT/ (Average Total Equity), ROCE = EBIT/ (Average Capital Employed), Capital Employed = Total Equity + Short Term Borrowings + Long Term Borrowings
14
1,061 1,0731,219 1,262
1,1261,415
13.5%12.9%
12.2%12.9%
11.2%
12.6%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
1,317 1,3981,699 1,661
1,4601,735
16.8% 16.9% 17.0% 17.0%
14.5%15.5%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
7,851 8,28810,008 9,762 10,058 11,201
37.3% 39.0%
50.2%
42.4%38.7%
36.5%
FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
Revenue from Operations and Gross Margin EBITDA and EBITDA Margin
PAT and PAT Margin
Annual P&L Trend: Focus on Profitable Growth
All Figures in Rs Mn
15
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to theimplementation of strategic initiatives, and other statements relating to Dhanuka Agritech Limited (“Dhanuka Agritech” or the Company) futurebusiness developments and economic performance.
While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number ofrisks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.
These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currencyexchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us,legislative developments, and other key factors that could affect our business and financial performance.
Dhanuka Agritech undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.
For further information, please contact:
Jitin Sadana
Company Secretary
Dhanuka Agritech Limited
+91 124 3838 500
Rohan Rege / Himanshu Patel
Churchgate Partners
+91 22 6169 5988
Disclaimer
Dhanuka Agritech Limited(CIN: L24219DL1985PLC020126)
14th Floor, Building 5A
DLF Cyber Terrace, Cyber City
DLF Phase III
Gurgaon- 122002 (Haryana)
