Navin Fluorine International Limited

Result Update Presentation

Q2 FY17

Safe Harbor
This presentation and the accompanying slides (the Presentation), which have been prepared by Navin Fluorine
International 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.
Certain matters discussed in this Presentation may contain statements regarding the Companys market opportunity and
business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not
guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult
to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the
economies of various international markets, the performance of the industry in India and world-wide, competition, the companys
ability to successfully implement its strategy, the Companys future levels of growth and expansion, technological
implementation, changes and advancements, changes in revenue, income or cash flows, the Companys market preferences and its
exposure to market risks, as well as other risks. The Companys actual results, levels of activity, performance or achievements
could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no
obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and
projections made by third parties included in this Presentation are not adopted by the Company and the Company is not
responsible for such third party statements and projections.

Journey Up the Value Chain Continues in H1 FY17...

...Driven by Business, Product & Geography Mix

Note: H1 FY17 Results compared with H1 FY16

* Adjusted Profit After Tax = PAT less Exceptional Item

Consistent Dividend Performance

Dividend as % of Face Value of Rs.10 Per Share
Special

Final

Robust Dividend Payout

Interim

750%

Continuous Dividend
since last 10 years

Special Dividend of Rs.

60 per share in FY 12

Declared Interim
Dividend at 110% of
Face Value i.e., Rs.11.00
per share in H1 FY17

Declared Special
Dividend of Rs.7.50 per
share

210%
185%
140%

150%

150%

160%

160%

FY10

FY11

FY12

FY13

FY14

FY15

FY16

22%

24%

37%

40%

36%

38%

29%

H1 FY17

Pay out Ratio = (Dividend + DDT) / PAT

Declared Special Dividend of Rs.7.50 per share & Interim Dividend of Rs.11.00 per share

Revenue Mix : Business Unit Wise

7%

6%

12%

18%

40%

24%

33%

44%

31%
30%
16%

15%

16%

15%
16%

38%

H1 FY16
CRAMS

* Standalone Results

40%

34%

35%

H1 FY17

Q2 FY16

Specialty Chemicals

Inorganic Fluorides

30%

Q1 FY17

Refrigerant Gases

Q2 FY17

Business Units Performance

176

194

215

154
119

FY12

FY13

FY14

FY15

FY16

H1 FY17

Exports
30%

Domestic
70%

* Standalone Results

98

99

113

105

94
56

FY12

Geographic Mix H1 FY17

195

Inorganic Fluorides

Revenue (Rs.Crs)

Refrigerants

FY13

FY14

FY15

FY16

H1 FY17

Exports
7%

Domestic
93%

Business Units Performance

215
159

178

CRAMS**

239

156
108

FY12

FY13

FY14

FY15

Revenue (Rs.Crs)

Specialty Chemicals

FY16 H1 FY17

87
63

14
FY13

26

31

FY14

FY15

FY16

H1 FY17

Exports
44%

Domestic
56%

** CRAMS business generating revenue since FY13

* Standalone Results

Geographic Mix H1 FY17

Domestic
0%

Exports
100%

Key Updates
Greenfield Facility at Dahej, Gujarat
JV with Piramal Enterprises Ltd. to develop, manufacture and sell speciality
Fluorochemicals for healthcare segment
Product validation in process

Entered into agreement with Honeywell

For a small scale manufacturing project on HFO-1234 yf

Next Generation Refrigerant Gas with GWP less than 1
For use in vehicle air conditioning systems.

Exceptional Item in Q2 FY17

Exceptional Item amounting to Rs.27.33 Crs is profit arising out of divestment of
long term investments, i.e., shareholding in Group Companies during the quarter,
as part of agreement executed amongst Promoter, Promoter Group & three listed
entities Arvind Mafatlal Group

Standalone Profitability Statement

Rs. Crs.

Q2 FY17

Q2 FY16

Change %

H1 FY17

H1 FY16

Change %

FY16

Revenue

183

151

21%

347

301

15%

636

Raw Material
Employee Expenses
Other Expenses
Operating EBITDA
Operating EBITDA Margin

79
18
45
41
22.3%

63
15
41
32
21.0%

28%
129 bps

144
37
86
80
23.2%

134
31
78
57
19.0%

40%
416 bps

292
66
162
116
18.3%

Interest Expenses
Depreciation
Operating PBT
Operating PBT Margin
Other Income
PBT Before Exceptional Item
Exceptional Item*
PBT After Exceptional Item
Tax
Profit After Tax
^ Adjusted Profit After Tax
Adjusted Profit After Tax Margin

0
6
35
19.0%
6
41
27
68
13
55
28
15.4%

1
5
26
17.4%
9
35
0
35
12
23
23
15.4%

0
12
68
19.7%
12
80
27
108
24
84
57
16.3%

1
9
47
15.5%
13
60
0
60
18
41
41
13.7%

32%
156 bps

21%

* Profit arising out of divestment of long term investments, i.e., shareholding in Group Companies during the quarter,
as part of agreement executed amongst Promoter, Promoter Group & three listed entities Arvind Mafatlal Group
^ Adjusted PAT = PAT less Exceptional Item
9

46%
414 bps

37%
262 bps

3
21
92
14.5%
25
117
0
117
30
86
86
13.6%

Standalone Balance Sheet

Rs. Crs.
Shareholders Fund
Share capital
Reserves & Surplus
Non-current liabilities
Long term borrowings
Deferred Tax Liabilities (net)
Other non-current liabilities
Current liabilities
Short term borrowings
Trade Payables
Other current liabilities
Total Liabilities
Non-current assets
Fixed assets
Non-current Investments
Long-term loans and advances
Current assets
Current Investments
Inventories
Trade receivables
Cash and bank balances
Short Term Loans & Advances
Other current assets
Total Assets

10

Sep16

Mar16

10
708

10
624

35
29

36
27

81
21
884

30
92
29
848

283
211
48

282
213
48

79
89
117
19
36
3
884

53
63
138
15
34
3
848

Business Overview

11

Overview
Largest Integrated Specialty
Fluorochemical Company in India

Built Indias only plant with high

pressure fluorination capabilities with
cGMP compliance for CRAMS Business

Manufacturing plants
strategically located
closer to major ports

Over 45 years of expertise

in Handling Fluorine

Strong Clientele base in India

& abroad, including Global
Innovators

Pioneers of Refrigerant
Gas manufacturing in India
RESPONSIBLE CARE
certification

12

Business Units (BU) - Standalone

FY11 Revenue %

FY16 Revenue %

Commenced CRAMS business in 2011

CRAMS 0%

Specialty
Chemicals 27%

CRAMS 14%

Specialty
Chemicals 38%

Refrigerants (incl.
CER) 55%

Refrigerants
34%

Inorganic
Fluorides 18%

Inorganic
Fluorides 14%

Commenced Specialty Chemicals in

2000
Inorganic Fluorides &
Refrigerants are
traditional business
since 1967

Focus on Rising up Fluorine Value-Pyramid

13

Clients across the Globe

14

Key Strengths
Fluorination Capabilities
Pioneered Manufacturing of
Refrigerant Gases in India
Over 45 years of experience in
handling Fluorine
Extensive expertise focusing on
specialty fluorine chemistry

Manufacturing
Chemical Complex at Surat spread
over 135 acres, houses Refrigerant,
Inorganic Fluorides & Specialty
Chemicals Plants
cGMP Compliant Pilot plant for CRAMS
in Dewas
cGMP Compliant Manufacturing plant
for CRAMS fully operational

15

In-house R&D
State-of-the-art R&D centre Navin
Research Innovation Centre at Surat
DSIR approved R&D Centre
Supports in product addition &
process efficiency in all business units
R&D strength augmented by
Manchester Organics Acquisition

Raw Material Sourcing

Backward integration for Raw material
through 25% JV partner in the only
Fluorspar beneficiation company in
India
Supply from JV to commence in FY18
Diversified sourcing of Fluorspar away
from China

Growth driven by Every Business Unit

CRAMS
Business progression from Contract Research to Contract
Manufacturing
cGMP compliant manufacturing facility operational

Specialty Chemicals
Introduction of new high value added molecules in portfolio
Entry into newer geographies

Inorganic Fluorides
Introduction of new molecules in portfolio
Entry into newer geographies

Refrigerants
Strong demand for air conditioning and refrigeration equipment
Increasing usage as feedstock in pharma

16

Strategy Begins to Yield Results

Operating PBT Margin (%)

Operating EBITDA Margin (%)

14%

18%
15%

FY13

13%

FY14

10%

12%

FY15

FY16

Return on Net Worth (%)

FY13

8%

8%

FY14

FY15

Return on Capital Employed (%)

18%

14%
9%

FY13

17 * Standalone Results

10%

FY14

12%

9%

FY15

FY16

FY16

FY13

11%

11%

FY14

FY15

FY16

Consolidated Profitability Statement

Rs. Crs.

FY16

FY15

Change %

Revenue

680

592

15%

Raw Material

311

289

Employee Expenses

81

74

Other Expenses

171

156

EBITDA

117

72

63%

17.3%

12.2%

506 bps

Interest Expenses

Depreciation

22

20

Operating PBT

91

49

87%

13.4%

8.2%

516 bps

Other Income

24

30

PBT

116

78

Tax

32

20

Profit After Tax

84

58

Minority Interest

(4)

Extraordinary Items
PAT after Minority Interest and Extraordinary
Items

84

55

EBITDA Margin

Operating PBT Margin

18

53%

Consolidated Balance Sheet

Rs. Crs.
Shareholders Fund
Share capital
Reserves & Surplus
Minority Interest
Non-current liabilities
Long term borrowings
Deferred Tax Liabilities (net)
Other non-current liabilities
Current liabilities
Short term borrowings
Trade Payables
Other current liabilities
Total Liabilities
Non-current assets
Fixed assets
Goodwill on Consolidation
Non-current Investments
Long-term loans and advances
Current assets
Current Investments
Inventories
Trade receivables
Cash and bank balances
Short Term Loans & Advances
Other current assets
Total Assets

19

Mar16

Mar15

10
636
-

10
578
13

48
37
29

27
32
28

34
96
66
954

34
89
41
852

307
88
117
96

293
41
116
91

53
76
150
29
34
4
954

55
76
120
28
28
4
852

Contact

For further information, please contact:

20

Company :

Investor Relations Advisors :

Navin Fluorine International Ltd.

CIN : L24110MH1998PLC115499

Strategic Growth Advisors Pvt. Ltd.

CIN : U74140MH2010PTC204285

Mr. Sitendu Nagchaudhuri

Chief Financial Officer
sitendu.nagchaudhuri@nfil.in

Ms. Payal Dave

022 6114 6679
payal.dave@sgapl.net

www.nfil.in

www.sgapl.net