gocl corporation limited · project- i o as part of the sustainable rural development program, an...

GOCL Corporation Limited

Welcome to Shareholders

57th Annual General Meeting

27th September 2018

Financials

FY 2017-18

Consolidated Financials

Financial Highlights in F2018( Consolidated )

Figures may be rounded for presentation purpose

8.39

5.436.59 6.74

F2015 F2016 F2017 F2018

42

2732 33

F2015 F2016 F2017 F2018

472562 577 551

F2015 F2016 F2017 F2018

Net Revenue : 551 ` Cr PAT : 33.43 ` Cr EPS : 6.74 `

Market Conditions in F2018

o Drop in average price of Detonators by 25%

o Explosives average price fallen by over 8%

o Shift in demand of Products

o Transition to GST affected Sales activity in month of June

2017

2018

F2017 F2018

Fall in Detonator Price

20172018

10

30

50

70

90

110

2017 2018

Fall in Explosives Price

25% 8%

o Net Revenue : 121

o Marginal Dip in revenue mainly due to :

- Reduced operations in Mining & Infrastructure Division due to non-operations of mines in metal sector

- Fall in average price of products

Financial Highlights in F2018( Standalone )

133122 130 121

F2015 F2016 F2017 F2018

Net Revenue (` cr)


` Cr.

o Profitability maintained inspite of lower turnover by

- Process Innovations & Upgrades

- Aggressive marketing strategies

o Profit before Tax : Rs. 25 cr ( Rs. 21 cr )



21

25

F 2017 F 2018

PBT

( Excluding exceptional items )

( Ex. Exceptional Items )(` cr)


6.19

3.554.25 4.48

F2015 F2016 F2017 F2018

42

26 28 29

F2015 F2016 F2017 F2018


31

1821 22

F2015 F2016 F2017 F2018

PBT : 29 ` Cr PAT : 22 ` Cr EPS : 4.48 `

398%

216%

130%

GOCL S&P BSE smallCap

Nifty 500

5 year Returns on Stock

398%

Value to our Investors

*Return as on 5th September 2018

28.71%28.82%

2017 2018

( Excluding Investment Property )Return on Capital Employed

28.71% 28.82%

2017 2018

( Excluding Investment Property )Return on Capital Employed

Long Term Borrowings : Nil

Short Term Borrowings : Rs. 9.62 crores

Borrowings

Divisionwise

Performance

Energetics

o Net Revenue : Rs. 90.75 Cr (Rs. 92.72 Cr)

o Shift in retail sector demand from plain detonators and electric detonators to non-electric detonators and cords

93 91

0

20

40

60

80

100

2017 2018

Net Revenue ` Cr

Product Segment Increase in

volumes

Non-electric Detonators 56%

Cartridge Explosives 15%

Electronic Detonators 100%

Pentolite Boosters 100%

Energetics

Division focused on Increasing volumes across all emerging demandsegments.

Energetics

Special Products Group

o Sales of the Group increased by 81% over the previous year

o Qualified for various pyro devices for the missile programmes

o Several new products of projects have been taken up

Mining & Infrastructure

o Turnover : Rs. 1.39 Cr (Rs. 6.57 Cr)

o Curtailed operations due to clients not having received miningapproval from the State Governments under the MMRDA Act

o Further review of equipment which were idle or had becomeinefficient were disposed off during the year

IDL Explosives LimitedA Wholly Owned Subsidiary

IDL Explosives Limited

o Net Revenue : Rs. 416 Cr ( Rs. 422 Cr )

o Drop in market prices of by over 8% and salesaffected for full month due to GST transition

o Profit maintained by increasing efficiency andvolumes

o Profit Before Tax : Rs. 21.53 Cr ( Rs. 20.57 Cr )

o Profit After Tax : Rs. 13.88 Cr ( Rs. 12.93 Cr )

A Wholly Owned Subsidiary


12.9313.88

7

8

9

10

11

12

13

14

15

2017 2018

Profit After Tax ` Cr

20.5721.53

7

9

11

13

15

17

19

21

23

2017 2018

Profit Before Tax ` Cr

422 416

0

50

100

150

200

250

300

350

400

450

2017 2018

Net Revenue ` Cr

Exports

o Exports recorded for the year was at Rs. 35.28 crores ( Rs. 37.45 crores )

o Export activities increased during the year but due to unavailability of vessels atChennai several shipments could not be completed by the end of the year

o Continued with the thrust into new markets and countries and with the focus onvalue-added products

o Maintained its strong competitive position through effective cost control andlogistics management

Credit Ratings

Long term Rating

IVR A - with stable outlook

Short term Rating

IVR A2 +

( For IDL Explosives Limited )

Long term Rating

[ICRA] BBB

Short term Rating

[ICRA] A3 +

IVR : Infomerics Valuation and Rating Private Limited

Outlook for the year

2018 - 19

The Mining Industry is a strategic sector for any large economy

The Mineral Sector constitutes 2.5% to the GDP and is planned to increase to 3% of the GDP

Infrastructure Sector is poised for break-through expansion with a CAGR of 35% and above

The Government of India plans to invest heavily in Infrastructure sector such asRenewable Energy, Railway Network, Smart Cities, Affordable Housing, Highways & Rural Roads

A step increase in demand for the energetics and explosives industry is expected

Energetics & Explosives

Outlook for the year 2018-19

Initiated several projects for upgradation and modification of processes, products and equipment to enhance quality, productivity and safety to create superior value for the stake-holders

Licences have been received in IDLEL for enhancement of capacities at 13 locations by 1,07,000 tonnes of bulk explosives

R&D efforts resulted in production activities, efficiencies and cost savings in several areas

New products were developed such as multilayer shock tubes for exports

Capacity expansion for electronic initiators were stabilised

The efforts made by Technical Services and R&D teams in the introduction of the new products will be visible in the business results from the current year

Energetics & Explosives ( Contd… )


Your Company along with IDLEL has Rs. 704 crores worth of orders on hand

Special Products Group emerging as a high quality supplier for specialized Defenceitems including high energy materials and critical energetic components for missiles

Transfer of Technology ( TOT ) from DRDO has been fully absorbed and further TOTs are envisaged

The Company is planning to increase its exposure to new Defence projects under the “Make in India” initiatives



The demand for Metal Clad plates is showing good growth prospects as large chemical, shipbuilding and defence projects build momentum

Special products also developed for railways and space are receiving their due attention

Metal Clads are extremely specialized products for which the Company is one of the global licencees with major certifications from Lloyd Register, American Bureau of Shipping and the Indian Register of Shipping

We expect this activity to increase many fold in the coming years



Exports earmarked as a strategic thrust area and is aiming for a jump in export sales by adding new sales territories and high-end products

Emerging demand in major countries in South East Asia, Africa, Middle East, Gulf countries and Eastern Europe

The demand for our traditional products will continue to grow and we have the full range of products and R&D to also cater to any shift in demand to more advanced products in the coming years

Margins from exports through effective cost control and logistics management will also contribute substantially to the bottom-line of the Company



Realty

‘Ecopolis’

Realty Project at Bengaluru

Ecopolis @ Bengaluru

Realty

o The first Lease Agreement has been signed with AXA Business ServicesPrivate Limited, for one full floor of 73,465 sft in Block 3

o The revenue stream will start after the fit out period from Q3 F 2019

Bengaluru ( Contd… )

Realty

o Block 2 is in the final stages of completion

o It has approx. 7.3 lakh sq. ft of leasable area

o Consists of Basements, Ground floor and 10 upper Floors

o It is a pre-certified LEED Gold rated building

o The block would be ready for clients fit-out works by Q4 of F2019


Realty

‘Ecopolis’ has been awarded the ‘Best Construction Project’ by CIDC


(CIDC : The Construction Industry Development Council )

Criteria:o New / innovative techniqueso Green Technologieso Health, Safety &

Environment measureso Quality Manpowero Engineeringo Management

Realty

o Plans for development of the balance land are under finalization consideringsome serious interest from large organizations for built to suit requirementsin the SEZ block

o The Developer is closely working with real estate advisors and consultants,and have received client’s sale / lease and built-to-suit requirements and areworking towards a positive conclusion


Integrated Knowledge Park@ Hyderabad

Realty

o Metro rail coupled with the eight lane 158 kms Outer Ring Road will ease commute timings in the city

o Several micro markets have developed over the last 2 / 3 years with relatively better priced properties and living zones close to the places of work

o Market absorption for residential and IT / ITES businesses have increased

o The growth of the IT / ITES sector has also resulted in the development of the organised retail sector

Hyderabad

Realty

o The 100-acre integrated mixed use Knowledge park is located in Kukatpallywhich is easily accessible to all the hotspots of the city. This knowledge parkcomprises of IT/ITeS office space, Retail segment, Educational Institution,Hotel, Hospital and Residential apartments

o The master plan has been redesigned and a detailed Phase 1 plan of thedevelopment has been submitted

o The approval from the Airports Authority of India (AAI) has been received

o Application for Fire NOC to Safety Fire department has been made

Hyderabad ( Contd… )

Strategic Investment

o The Company had invested through its wholly owned subsidiary HGHLLimited, UK, in Houghton International Inc. in the year 2012

o We had also announced that Houghton International was being merged withQuaker Chemical Corporation ( Listed on NYSE ). The merger process isprogressing and is expected to complete by Q4 F2018

o The valuation of our holding as at March 31, 2018 stands at Rs. 440 crores

Corporate Social Responsibility

o The CSR Committees recommended CSR expenditure of Rs. 60 lakhs for the year 2017-18

o In GOCL, two projects in the Education and Rural Development were identified and work orders released


Project- I

o As part of the Sustainable Rural Development program, an Innovative Digital Education Initiative was undertaken

o Interactive smart boards and projectors for imparting teaching in an audio-visual form, in 5 zilla parishad and residential schools in Palghar District of Maharashtra

o The course content for the particular class and selected subjects (PCM and Social Sciences) will be delivered in audio-visual form


Project – II

o The project involved major renovations in the school premises including repair of walls and roofing

o A School Library and a Science Laboratory were created

o Computer Room with audio visual facilities has been set up to teach and train students for the digital world


In IDL Explosives, two projects namely :

o Repairs & widening of roads under Rural Development Scheme.

o Toilets were constructed as part of Swachh Bharat Abhiyan.


o A Scheme of Arrangement has been proposed during the year for amalgamation of two of the wholly owned subsidiaries, namely, IDL Buildware Limited and Gulf Carosserie India Limited

o Pursuant to the directions of the Hon’ble National Company Law Tribunal (NCLT), Hyderabad Bench, the Scheme of Arrangement has been approved with requisite majority of the Shareholders and the Creditors

o The Scheme is presently pending hearing before the Hon’ble NCLT

Scheme of Arrangement

Promoter Holdings

Hinduja Power Limited, Mauritius ( HPL ) continued to reinforcetheir confidence in the long term prospects of your Company byincreasing their shareholding to 74.94%

In Conclusion

In conclusion, the economy is accelerating with the reforms andattention of the Government under its ‘Make in India’ initiatives whichwill drive the growth of manufacturing, mining and infrastructure,including power and real estate sectors

We therefore, expect these business areas of the Company to growwell in the years ahead

Thank You

Safe Harbour Statement

This document may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking

statements represent current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to

differ materially. GOCL disclaims any obligation to update / revise or publicly release any revision to these forward-looking statements in light of

new information or future events.

This material was used by GOCL Corporation Limited during an oral presentation; it is not a complete record of the discussion. No part of this

presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from GOCL Corporation Limited.

GOCL Corporation Limited

Welcome to Shareholders

57th Annual General Meeting

27th September 2018

gocl corporation limited · project- i o as part of the sustainable rural development program, an...

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