Bombay Super Hybrid Seeds Limited Investor Presentation PDF, January 2024

Ref. BSHSL\NSE\Investor Presentation January 29, 2024 To, National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E) Mumbai - 400 051 Ph: (022)-26598100-8114 Fax No: (022)-26598120 SUB: Investor Presentation. Script...

Ref. BSHSL\NSE\Investor Presentation January 29, 2024 To, National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E) Mumbai - 400 051 Ph: (022)-26598100-8114 Fax No: (022)-26598120 SUB: Investor Presentation. Script Symbol: BSHSL Dear Sir, With reference to the captioned subject we, Bombay Super Hybrid Seeds Limited (the “company’) are submitting herewith Investor Presentation for all the Stakeholders of the company. Kindly take the same in your record and oblige. Thanking You, Yours Faithfully, For, Bombay Super Hybrid Seeds Limited Digitally signed by Kakadiya Kakadiya Arvind Jadavji Arvind Jadavji Date: 2024.01.29 17:36:34 +05'30' Arvindkumar J. Kakadia Managing Director _____________________________ _____________________________ COMPANY OVERVIEW ___________________________ ___________________________ About Us: The Company lay his foundation well back by Mr. Jadavjibhai D. Kakadia – farmer from Kuvadava Village of Rajkot District, Gujarat. He was engaged in bulk Agricultural seed business since 1983. Initially, he was doing quality seed production, in bulk, of mainly Groundnut, Lucerne, Coriander. Then, Mr. Arvindkumar J. Kakadia was very keen to give their contribution by helping increase productivity of farming. He decided to handle the business of their father to take further of Agriculture business. He started company’s own brand name of “BOMBAY SUPER” and established marketing network within the Gujarat state and later to various important agriculture states. Mr. Arvindkumar J. Kakadiya (popular as “Pintu Patel”) instead of opting to go for cotton, vegetables sort of crop ranges where many companies were operating, started to focus on edible oilseed segment like Groundnut, Sesame. He was observing farming of these crops at home since child hood but realised that there was nothing like good packed and improved seed. Initially, the Company was established as Partnership Firm in Year 2000, with the passage of time it was decided to convert into a company and incorporated as “Bombay Super Hybrid Seeds Private Limited” on July 28, 2014 under the Companies Act, 2013 vide certificate of incorporation issued by the Registrar of Companies, Ahmedabad. Later on it was converted in to a public limited company and consequently the name was changed to “Bombay Super Hybrid Seeds Limited” (BSHSL) vide fresh certificate of incorporation dated September 14, 2017 issued by Registrar of Companies, Ahmedabad, Gujarat. Later on the company has come out with Initial Public Offerings (IPO) and has got its security listed on NSE EMERGE Platform (SME) on 25th April, 2018. The Company has got overwhelming response of Investors as IPO of company was subscribed to 9.48 Times. The promoters of the company Mr. Arvindkumar J. Kakadia with his tireless efforts and wide experience in Seeds & Agriculture Sector, the company’s drastic growth in today’s date has been possible.   KEY MANAGERIAL PERSONNEL:  ARVINDKUMAR J. KAKADIA- CHAIRMAN & MANAGING DIRECTOR: MR. Arvindkumar Jadavjibhai Kakadia aged 41 years, he is designated as Chairman and Managing Director and also the Promoter of our Company. He is one of the founder of the business. He has more than 38 years of experience in the Agriculture industry. He is playing vital role in formulating business strategies and effective implementation of the same. He is entrusted with the responsibility of expansion and overall management of the business of our Company, along with this He actively grab opportunities to expand our business and take it to new height at international Market. He is involved in taking major policy decision of the Company and has been actively involved in taking various approval regarding seeds and other matters from state and central government.His leadership abilities have been instrumental in leading the core team of our Company very effectively & efficiently.  KIRITKUMAR J. KAKADIA-WHOLE TIME DIRECTOR & CFO: MR. Kiritkumar Jadavjibhai Kakadia aged 43 years, He is designated as Whole-time Director and promoter of our Company. He is actively engaged in company since its Incorporation.He has rich and vast experience of 24 years in agriculture industry. He is entrusted with the responsibility of looking after matters relating to accounting and finance management of our Company. With his wide experience he effectively co-ordinate and manage human resource of our company. He efficiently undertakes networking with distribution channel of our Company. `  Journey So Far 1983-2004 2005-2009  Initiated Business in Gujarat States  Established a firm  Introduced Brand “BOMBAY SUPER”  Increased connectivity in all india 2014-2017 Started its Corporate Journey as Private Limited Company Working with Mainly Groundnut, Onion, Methi, Coriander. Started Company journey with operating business in the all States of India Company was operating its Business from Head office Converted as Limited Company. 2018-2019 The Company Listed its Capital at (NSE Emerge Platform). In the year 2018, The Company has expanded its Product Portfolio More than 30 Products. Business Expansion and Distribution Network Expanded to 8 Major States of India Established Depot in 5 States of India. 2020-2023 Migration of Equity share to Main Board of National Stock Exchange of India Product Portfolio expanded from 30 Products to More than 120 Products Business Expansion and Distribution Network Expanded to 14 Major States of India The Business of the Company was expanded with Depot in 8 States of India 2023-Present  Succesfully developed its footprint to major part of india  Latest world class Technology Equipped Machinery  Well Established Infrastructurs  Largest Seeds Product Portfolio  Lakhs of Satisfied customers  Expansion of R&D Farm  ACHIEVEMENTS  RESEARCH & DEVELOPMENT (R & D) Technical Collaboration 1. ICRISAT: RESEARCH & DEVELOPEMENT ACTIVITY RESEARCH & DEVELOPEMENT FARM FULLY AUTOMATIC PROCESSING UNIT R&D Laboratory Infrastructure Our company is backed with highly experienced R & D Team Ou r C ompa n y is l o cat ed at Sh r een a th j i In du st r i al Esta te Pl ot and R& D Infrastructure, Our R & D team undertakes and analyses following activities at Lab : no 8 to 11 , Na ti on al Hi gh way 8 / B, K u va dav a , Ra jko t , Gu jara t. 1. Seeds DNA 2. GOT of All Seeds In fra st ru ctu r e of th e compa n y is su rr ou n d ed in 3,00 ,000 Sq Fe 3. Checks Germination of Seed at every Steps with at et , wh ich incl udes fully equ ippe d p r o cessi ng Un it. 4. most accuracy: (i) ) At the time of Harvest (ii) i) After Processing (iii) i) At the time of Packing   COMPANY RECOGNITIONS : 1. Sponsor at Asia Pacific Seed Association (APSA), 2019 at Malaysia. 2. Participated in World Seed Congress, 2018 at Brisbane, Australia. 3. The company also got recognition of ISO 9001: 2015. 4. Udhyog Aadhar No. GJ20B0020847 5. Participated & sponsored Asia Pacific Seed Association (APSA), 2015, 2016 & 2017 at Goa, Seoul, Bangkok respectively. 6. Participate in Africa Seed Trade Congress, Nairobi 2015-16 7. Possess valid export licence of Govt. of India (Both from NSC & APEDA)  LATEST ACHIEVEMENT: the Department of Scientific and Industrial Research (DSIR) of Ministry of Science & Technology, New Delhi has accorded prestigious recognition to R & D Units of the company by which company can avail custom / central excise duty exemption on the purchase/import of equipment, consumables, instruments and spares there of used for Research & development activities during the period of recognition.  COMPANY R & D TIE UP : 1. Member consortia with ICRISAT (International Crop Research Institute for Semi-Arid Tropics), Patancheru, Hyderabad. 2. Business Planning and Development tie up with JNKVV Jawaharlal Nehru Krishi Vishwa Vidhyalay, Jabalpur, Madhya Pradesh. 3. Business Planning and Development tie up with premier agriculture research institute, Indian Agriculture Research Institute (IARI), New Delhi. 4. Sourcing of notified germplasm from Indian Horticulture Research Institute (IIHR) Bangalore. 5. Sourcing of notified germplasm from MPKV Rahuri, Maharashtra. 6. Sourcing of notified germplasm from JAU, Junagadh, AAU- Anand, MPKV-Rahuri. 7. Company tie up with hybrid maize CIMMYT, Mexico. 8. Wheat high zinc and Fe content. With tie-up with harvest plus ICRISAT. 9. Breeding for improved varieties of HOT PAPPER in collaboration of Jeil seed Bio co ltd.  NEW PROCESSES DEVELOPED : - The Company has signed MOU with ICRISAT for accessing global Groundnut and Chick peak germplasm. This has enable for short and medium duration cultivation of Groundnut with high yield, extra bold seeds and High oleic acid for low cholesterol. - Buhler Company, Switzerland, machines for Sortex grading established which differentiate seeds on basis of seed’s size, colour sorting, gravity and M.T.R etc. - The Company has constructed Seed cold storage facilities of 10000 Metric Ton, which is constructed in such a way that without much use of high electricity consuming cold storage plant, it can be stored and viability can be extended. This has been done by mix of knowledge of our ancient temperature control way with addition of modern structures.  ESTMATED PROJECTION-TURNOVER (Figures in Lakh): Financial Year Estimated Turnover 2024-25 3000-3100 2025-26 3500-3600 2026-27 4500-4700 2027-28 6000-6200 REVENUE FROM OPERATION-ESTIMATED 7000 6000 6000 5000 4500 4000 3500 3000 3000 2000 1000 0 2024-25 2025-26 2026-27 2027-28  FUTURE PROJECTS : The company has plan to spend Rs.1 Crore for R & D expansion along with ongoing activities for various following projects: 1. Breeding for improved varieties of HOT PEPPER in collaboration of MNC for yield and its chewing can Inhibit rate of alpha-glycosidase and helpful in natural way for DIABETES patients. 2. Development of improved PEARL MILLET varieties for high Iron, Zinc and Downey mildew resistance, dual purpose and white grub resistance , high yielding, early maturing, high oleic acid varieties of groundnut in collaboration with ICRISAT. 3. Development of high yielding, early maturing, good foliage hybrid of Corn in collaboration with CIMMYT. 4. Accessing Bio fortified, high Zinc, WHEAT varieties in collaboration of Harvest Plus, an organization largely funded by Bill and Melinda gates foundation. 5. Accessing adaptability of Anti-Cancer Korean CABBAGE for Indian conditions. (Claimed to have much high B Carotene and Gluconasturtiin). 6. Screening and evaluation of various exotic germplasm in VEGETABLS & FLOWERS. 7. Development of High Yielding Yellow mosaic resistant variety kartikey in collaboration with MPKV Rahuri Maharashtra. 8. Development of PADDY with different varieties such as PB-1509, PB-1692, PB-1718, PB-1847 in collaboration with Punjab Agri University. 9. Development of Fennel in collaboration with Centre of seed spices-Ajmer. 10. Development of new moong variety with maturity of 60 days short duration and resistance to yellow mojaic. _____________________________ _____________________________ FINANCIAL HIGHLIGHTS _____________________________ _____________________________ FINANCIAL PERFORMANCE – QUARTERLY [FIGURES IN LAKHS]: REVENUE FROM OPERATION PROFIT BEFORE TAX 9000 900 7633.8 798.65 8000 800 6895.55 709.34 7000 700 6000 600 5000 500 4000 3375.87 400 3000 300 173.55 2000 200 1000 100 0 0 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 PROFIT AFTER TAX EBITDA & MARGINS 800 1000 935.79 14 687.75 684.75 700 900 817.1312 12 12 800 600 700 10 500 9 600 8 400 500 400 6 300 298.59 300 4 200 157.04 200 100 2 100 0 0 0 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 EARNING PER SHARE 0.7 0.66 0.63 0.6 0.5 0.4 0.3 0.2 0.15 0.1 0 Q3FY23 Q2FY24 Q3FY24 REVENUE FROM OPERATION YEAR WISE (EXCLUDING OTHER INCOME): (in %) YEAR GROUNDNUT GRAM WHEAT SOYABEAN CUMIN OTHER AGRI PRODUCTS FY22 48.82 16.10 5.20 4.92 1.94 23.02 FY23 10.79 5.45 5.42 2.77 25.94 49.63 H1FY24 54.70 11.88 4.88 2.77 6.89 16.49 REVENUE FROM OPERATION PRODUCT WISE(%) H1FY24 54.7 11.88 4.88 5.16 6.89 16.49 FY23 49.63 10.79 5.45 5.42 2.77 25.94 FY22 48.82 16.1 5.2 4.921.94 23.02 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GROUNDNUT GRAM WHEAT SOYABEAN CUMIN OTHER AGRI PRODUCTS BOMBAY SUPER continues to maintain growth momentum with focus on margins and strengthening balance sheet TOTAL REVENUE FROM OPERATIONS 25000 22860.52 19217.89 20000 17176.2 15052.49 15000 10348.33 10000 7708.95 5000 0 FY19 FY20 FY21 FY22 FY23 H1FY24 EBITDA & MARGINS 2500 12 2220.61 10.51 2000 9.71 10 1582.12 1423.13 8 1500 7.41 6.26 6.09 6 908.525.29 1000 630.18 4 482.86 500 2 0 0 FY19 FY20 FY21 FY22 FY23 H1FY24 PROFIT BEFORE TAX 2000 1783.33 1800 1600 1400 1294.12 1200 1102.37 1000 800 610.7 600 280.11 346.23 400 200 0 FY19 FY20 FY21 FY22 FY23 H1FY24  PROFIT AFTER TAX 1800 1678.15 1600 1400 1220.65 1200 1050.38 1000 800 579.91 600 400 208.42 266.47 200 0 FY19 FY20 FY21 FY22 FY23 H1FY24 RETURN ON EQUITY (%) 35 30 29.79 26.6 25 20 20.04 15 10 11.42 10.08 5 0 FY19 FY20 FY21 FY22 FY23 *PAT=PROFIT AFTER TAX/TOTAL EQUITY EARNING PER SHARE 1800 1678.15 1600 1400 1220.65 1200 1050.38 1000 800 579.91 600 400 266.47 208.42 200 0 FY19 FY20 FY21 FY22 FY23 H1FY24  STATEMENT OF PROFIT & LOSS (QUARTERLY) Particulars (In Lakh) Q3FY24 Q2FY24 Q-o-Q% Q3FY23 Y-o-Y% Income Revenue from operations 7633.80 3375.87 6895.55 Other income 13.98 6.71 21.13 Total Income 7647.78 3382.57 126% 6916.68 11% Expenses Purchase/Production 6813.05 2767.62 9350.47 Expenses Changes in inventories (1298.79) (164.29) (3722.78) Employee benefits 81.92 28.50 111.75 expense Finance costs 99.14 88.04 72.79 Depreciation and 38.00 37.00 35.00 amortization expense Other expenses 1,115.82 452.15 360.11 Total expenses (II) 6,849.13 3209.02 6207.34 Profit before tax (III) = (I - 798.65 173.55 360% 709.34 13% II) Tax expense Current tax expenses 110.90 16.51 44.00 Deferred tax charge / -- -- -- (Credit) Total tax expense (IV) 110.90 16.51 44.00 Profit for the period (V) = 687.75 157.04 338% 665.34 3% (III - IV)  STATEMENT OF PROFIT & LOSS (ANNUAL/HALF YEARLY) Particulars (In Lakh) H1FY24 FY23 FY22 FY21 FY20 FY19 Income: Revenue from Operations 15,042.42 22,791.81 19,172.42 17,134.53 10,324.84 7,660.45 Other Income 10.07 68.70 45.47 41.67 23.49 48.50 Total Income 15,052.49 22,860.52 19,217.89 17,176.20 10,348.33 7,708.95 Expenses: Purchase of stock in trade 8,065.88 12,745.54 11,276.25 12,203.40 8,980.14 7,463.98 Production Expenses - 10,788.93 7,092.39 4,456.52 - Changes in Inventories of Finished Goods, 4,220.60 (4,408.54) (2,221.25) (1,888.55) (363.68) (1,082.01) Work-in- Progress and Stock in Trade Employee Benefits Expense 91.80 314.21 360.79 343.83 264.20 252.11 Finance Costs 213.18 302.67 189.40 130.73 123.46 95.91 Depreciation and Amortisation Expense 74.00 134.61 131.35 167.09 160.49 106.84 Other Expenses 1,092.09 1,199.77 1,286.59 1,152.49 837.48 392.01 Total Expenses 13,757.55 21,077.19 18,115.52 16,565.51 10,002.09 7,228.84 Profit before tax 1,294.94 1,783.33 1,102.37 610.70 346.23 280.11 EBITDA 1,582.12 2,220.61 1,423.13 908.52 630.18 482.86 (MARGIN %) 10.51 9.71 7.41 5.29 6.09 6.26 Tax Expense Income Tax - Current Year 74.29 111.07 57.54 40.90 75.00 69.50 - Earlier Year - - 3.91 (7.67) 11.03 0.02 Deferred Tax Charge - (5.89) (9.47) (2.44) (6.27) 2.17 74.29 105.18 51.99 30.79 79.76 71.69 Profit for the Year 1,220.65 1,678.15 1,050.38 579.91 266.47 208.42 Earnings Per Equity Share [Nominal Value Per Share: Re. 1 (Previous Year: Rs. 10)] Basic and Diluted 3.47 3.24 1.16 1.61 10.06 5.33  BALANCE SHEET-SNAPSHOT Particulars (In H1FY24 FY23 FY22 FY21 FY20 FY19 Lakh) Assets I) Non-Current Assets a) Property, plant 795.93 862.65 709.89 825.49 860.77 892.97 and Equipment b) Capital Work - - - - - 21.56 In progress c) Intangible 0.16 3.08 - - - Assets 1.13 d) Financial - - - - - - Assets e) Deferred Tax 33.08 27.19 15.28 9.01 Assets (Net) 33.08 17.72 f) Other Non- 6.16 11.42 33.64 43.49 current Assets 10.92 22.95 835.33 751.58 909.69 967.03 907.78 866.16 II) Current Assets a) Inventories 7,140.98 6,966.14 2,854.41 2,496.80 11,361.59 4,787.91 b) Financial Assets (i) Trade 2,092.46 1,612.34 715.67 303.45 Receivables 858.42 748.50 (ii) Cash and 13.36 26.33 17.53 6.88 cash equivalents 8.10 518.60 (iii) Loans - - - - - - (iii) Other - - - - - - Financial Assets c) Current Tax 28.04 28.04 - - - Assets (net) 28.04 d) Other current 734.47 385.72 194.62 74.48 assets 123.86 347.40 10,009.31 9,018.57 3,782.23 2,881.61 12,380.00 6,402.41 Total Assets 10,844.64 13,287.78 9,770.15 7,268.57 4,691.92 3,848.64 Particulars (In H1FY24 FY23 FY22 FY21 FY20 FY19 Lakh) Equity and Liabilities Equity a) Equity Share 1,049.37 1,049.37 1,049.37 787.03 655.86 Capital 1,049.37 b) Other Equity 5,800.35 2,899.74 1,844.28 1,547.22 1,411.92 4,584.18 6,849.72 5,633.56 3,949.12 2,893.65 2,334.25 2,067.78 Liabilities I) Non-Current Liabilities a) Financial Liabilities (i) Borrowings 81.22 7.79 202.16 227.29 258.10 68.80 (ii) Trade - - - - - - Payables b) Provisions 59.53 40.39 37.83 7.35 - 41.30 b) Other Non- 134.43 108.48 89.52 84.94 51.42 current liabilities 119.13 275.18 156.66 329.51 319.58 309.52 - 229.23 II) Current Liabilities a) Financial Liabilities (i) Borrowings 2,127.89 3,939.45 2,782.27 1,268.14 1,000.97 5,213.91 (ii) Trade 579.17 735.12 193.98 145.05 90.24 Payables 1,168.94 (ii) Other - - - 55.22 62.58 71.84 Financial Liabilities b) Other current 996.67 976.85 1,007.78 487.32 229.78 liabilities 1,018.76 c) Provisions - 9.32 6.16 75.00 78.51 12.23 d) Current Tax 16.01 3.64 - - Provision 11.16 3,719.74 5,664.37 4,045.41 2,038.09 1,471.34 7,425.00 Total Equity 10,844.64 13,287.78 9,770.15 7,268.57 4,691.92 3,848.64 and Liabilities