Slide 1: Balkrishna Industries Ltd Investor Presentation
BALKRISHNA INDUSTRIES LTD Investor Presentation November, 2018
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries 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
Slide 3: Our Performance
GROWING TOGETHER Our Performance
Slide 4: BKT 2.0: Embarking on next Phase of Growth
BKT 2.0: Embarking on next Phase of Growth Global Manufacturing footprint Strategic initiative to strengthen the BKT Brand with a Plant in USA having a capacity of 20,000 MT p.a. at a capex of up to USD 100mn Carbon Black Plant Capex for Carbon Black Replacement of Waluj project is progressing as pe
Slide 5: USA Tire Plant: Strategically addressing Americas market
USA Tire Plant: Strategically addressing Americas market Greenfield Plant in USA 01 02 Faster Acceleration Setting up a Greenfield Plant in Made in USA Plant will USA with a capacity of 20,000 MT enable to penetrate faster p.a. at a capital outlay of up to with Local OEMs by USD 100mn offering them
Slide 6: Waluj Plant: Replacing existing Plant
Waluj Plant: Replacing existing Plant Current Plant New Plant • To set up Greenfield Plant on freehold • Waluj Plant is old very old and long due land of ~22 acres within near vicinity at a for complete revamping cost of approximately Rs.500 crores. Plant • The size of the plot is also small and as
Slide 7: Bhuj Capex: Moving up the Value Chain
Bhuj Capex: Moving up the Value Chain Upscaling to Warehousing Compound Increase Large sized Tires Space Mixing penetration with Brands 01 02 03 04 ▪ Adding 5,000 MT p.a. capacity The addition of higher Augmenting Increasing capacity of Large sized diameter tires sized diameter tires will Warehousin
Slide 8: Carbon Black Capex: Progressing as per schedule
Carbon Black Capex: Progressing as per schedule Plant Size Total Plant size to be 140,000 MT p.a. at a capex cost of Rs. 425 crores at Bhuj in Gujarat Timelines 60,000 MT p.a. capacity will be operational in March 2019 while the balance will be onstream by March 2021 Supplies to support USA Plant Pl
Slide 9: H1FY19 Performance
H1FY19 Performance Interim Dividend Sales Volume 2nd Interim Dividend declared at 109,093 MT Rs. 2/- per share in addition to Rs. 2/- per share paid in Q1FY19 14% YoY Revenue EBITDA Rs. 2,784 Crores Rs. 790 Crores 26% YoY 27% YoY EBITDA Margin Profit After Tax 28.4% Rs. 453 Crores 26 Bps YoY 27% YoY
Slide 10: Profit & Loss
Profit & Loss Standalone Particulars (Rs.Cr) Q2FY19 Q2FY18 YoY % H1FY19 H1FY18 YoY % FY18 Sales (MT) 52,339 49,331 6% 109,093 95,658 14% 199,213 Revenue from Operations 1,325 1,114 2,688 2,126 4,464 Realized Gain on Foreign Exchange 45 67 96 92 221 Total Income 1,370 1,182 16% 2,784 2,218 26% 4,686
Slide 11: Other Income and Net Forex Gain/(Loss)
Other Income and Net Forex Gain/(Loss) Standalone Particulars (Rs. Cr) Q2FY19 Q2FY18 H1FY19 H1FY18 Exchange Difference Gain (Realized) 47 73 100 103 Exchange Difference Gain (Un-Realized) 22 -7 42 22 Others 21 16 31 50 Total Other Income 91 83 173 175 Standalone Particulars (Rs. Cr) Q2FY19 Q2FY18 H1
Slide 12: Balance Sheet
Balance Sheet Particulars (Rs. Cr.) Sep’18 Mar’18 Particulars (Rs. Cr.) Sep’18 Mar’18 ASSETS EQUITY AND LIABILITIES Non-current assets 3,620 3,861 EQUITY 4,365 4,095 Property, Plant and Equipment 2,779 2,795 Equity Share Capital 39 39 Capital work-in-progress 195 118 Other Equity 4,326 4,057 Investm
Slide 13: Cash Holdings
Long Term Debt Profile 1,440 Rs. Cr Long Term Debt -607 -23 -593 -0 -217 0 Mar-16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 Long Term Debt 1,131 30 1,157 Cash Holdings -118 333 -280 61 Mar-16 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 Current Cash Holdings No Long Term Debt 13
Slide 14: Sales Profile
Sales Profile In MT Volume Guidance 210,000 – 220,000 MT for FY19 199,213 +8.68% 172,419 154,156 147,535 142,810 109,093 FY14 FY15 FY16 FY17 FY18 H1FY19 14
Slide 15: Strategy at BKT
KT, GROWING TOGETHER Strategy at BAT 15
Slide 16: Our Focus Area
Our Focus Area Market Reach Expand reach within existing Sales Channels as well increase footprint within replacement segment and OEMs 01 Penetrate Americas Increase share of business in USA markets by increasing 02 supplies from India and manufacturing from USA Plant Product portfolio expansion 03
Slide 17: To Serve Global OEMs...
KT, GROWING TOGETHER To Serve Global OEMs... CASE fit AGRICULTURE @e A.acco Your Agriculture Company JOHN DEERE ak CLARS OKT BG x \ Wy, eS Ky bot sera wl IRTG EN KALMAR CARGOTEC 17
Slide 18: With India Production and Global Sales
With India Production and Global Sales Aurangabad, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan Our plants India – Our Bhuj, Gujarat Manufacturing base Mould plant, Aurangabad 18
Slide 19: BKT - A Strong Indian Brand
BK /T] GROWING TOGETHER BKT - A Strong Indian Brand Spa 19
Slide 20: Balkrishna Industries – A Snapshot
Balkrishna Industries – A Snapshot Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market Wide and comprehensive product portfolio Deep understanding of OHT market has led to capabilities to manufacture over 2,500 SKU Capacities Achievable cap
Slide 21: Our Strong Evolution
Our Strong Evolution 2018 Announced Capex for a Greenfield Started Capex for Plant in USA along with Replacement of Carbon Black Project of Waluj Plant and capex at Bhuj Plant 140,000 MT p.a. Plant in 2015 2009 Crosses Rs. Plant in 2006 Chopanki, 1,000 cr Bhuj, Rajasthan Turnover Gujarat Production
Slide 22: Application of our Tires
Application of our Tires Agriculture Tires Cotton Pick Harvester Tractor Vineyard Tractor Pivot Irrigator Industrial Tires Loader Telehandler Mobile Crane OTR Tires Load Haul Dump Underground Mining Container Handler 22
Slide 23: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285 Mr. B K Bansal, Director - Finance Mr. Shogun Jain / Ms. Payal Dave bkbansal@bkt-tires.com shogun.ja