Slide 1: Rane Group Earnings Presentation | Q4 FY23
Rane Group Earnings Presentation | Q4 FY23 1
Slide 2: Table of Contents
Table of Contents Q4 FY23 Financial & Operational Performance Rane Group Overview 2
Slide 3: Q4FY23 Financial & Operational Performance
Rane Group Q4FY23 Financial & Operational Performance 3
Slide 4: Vision and Growth Strategies
Vision and Growth Strategies To become the Preferred Trusted Supplier of Safety & Critical Auto Components Strategic pillars of growth 1 3 2 4 Strengthen Increased Focus Domestic on Aftermarket Leadership Increased mix of New Technology & International Product Revenues Introductions 4
Slide 5: Rane Group Business Drivers
Rane Group Business Drivers Business Drivers › 93%+ of revenue comes from powertrain agnostic products › Continued dominance on domestic market across major products › Increasing export mix for steering & linkages, valve train components and occupant safety products › Renewed focus on Aftermarket se
Slide 6: New Business Wins (Q4 FY23)
New Business Wins (Q4 FY23) RANE (MADRAS) • Won Rs. 18 Cr order for EPS for Electric LCV RANE BRAKE LINING • Won Rs. 70 Cr orders for steering and suspension • Won orders worth Rs. 10 Cr from various products from various international customers customers including EV Two Wheeler • Won Rs. 25 Cr ord
Slide 7: We continue to target higher than the industry growth
We continue to target higher than the industry growth Industry Performance Review (Q4 FY23) Passenger Vehicle commercial Vehicle Farm Tractor 2-Wheeler Production YoY Growth# 13% 6% 35% -3% in % Rane Group Sales Growth YoY 9% 7% 66% 24% in % (India OEM) Rane Group Revenue Split * 61% 28% 6% 3% (Indi
Slide 8: Group Aggregate Sales (Q4 FY23)
Group Aggregate Sales (Q4 FY23) Total Revenue (Rs cr.) › Total Revenue increased by 18% from Rs. 1,565.9 Cr in Q4 FY22 to Rs. 1,847.2 Cr in Q4 FY23 – Revenue from Indian OE customers grew 10% supported by strong growth across 1,847.20 18.0% vehicle segments YoY growth 1,565.90 – Revenues from Intern
Slide 9: RHL consolidated – Financial Performance Review (Q4 FY23)
RHL consolidated – Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) -1.6% -0.9% Q4 FY22 Q4 FY23 12.1% (8.1) 19.7% 54.6% 36.9% 948.2 9.3% (12.8) YoY growth 114.3 YoY growth YoY growth 73.9 791.9 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 › Total Revenue increased by 19.
Slide 10: RHL consolidated – Ratios and Return
RHL consolidated – Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity 1.06 1.01 ROCE 12.73% 4.86% EPS (Rs.) 43.61 16.91 DPS 17.00 12.00 BV(Rs.) 565.74 544.65 10
Slide 11: Rane (Madras) Limited
Rane (Madras) Limited Q4 FY23 Financial & Operational Performance 11
Slide 12: RML - Operational Performance Review (Q4 FY23)
RML - Operational Performance Review (Q4 FY23) Business Drivers Business Split (Q4 FY23) – RML India › Strong order book pipeline for Steering and Linkages products BY MARKET (%) India › Light Metal Castings India business working on operational improvements and Intl OEM, 30 OEM&OES, 57 launching ne
Slide 13: RML Standalone – Financial Performance Review (Q4 FY23)
RML Standalone – Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) Adjusted PAT* (Rs cr.) PAT (Rs cr.) 4.8% 16.7 11.1% 10.4% Q4 FY22 Q4 FY23 3.7% 1272.0% 457.3 567.1 24.0% 32.4% 65.0% 3.7% 27.5 (195.7) 63.2 YoY growth YoY growth YoY growth YoY growth 47.7 16.7 (34.5)% Q4
Slide 14: RML Standalone – Ratios and Return
RML Standalone– Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity 2.12 1.19 ROCE 20.14% 8.81% EPS (Rs.) -77.80 23.94 BV(Rs.) 151.88 230.51 14
Slide 15: RML Consolidated – Financial Performance Review (Q4 FY23)
RML Consolidated – Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 10.2% 1.5% 9.5 630.1 23.5% 101.9% 475.6% 510.3 6.2% YoY growth 64.0 YoY growth YoY growth 31.7 (2.5) (0.5)% Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 › Total Revenue increased by 23.5%
Slide 16: RML Consolidated – Ratios and Return
RML Consolidated– Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity 2.72 2.52 ROCE 11.53% -0.19% EPS (Rs.) 18.46 6.97 BV(Rs.) 148.52 140.26 16
Slide 17: Rane Engine Valve Limited
Rane Engine Valve Limited Q4 FY23 Financial & Operational Performance 17
Slide 18: REVL - Operational Performance Review (Q4 FY23)
REVL- Operational Performance Review (Q4 FY23) Business Split (Q4 FY23) BY MARKET (%) Business Drivers India OEM&OES, 57 International OEM, 26 › 44% of revenue generated from EV insulated segment › Sustaining financial turnaround through › Higher capacity realization and new business ramp up Interna
Slide 19: REVL – Financial Performance Review (Q4 FY23)
REVL – Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 12.2% 3.6% 16.6 136.5 24.7% 9.1% 66.9% NM 109.5 4.9 YoY growth 9.9 YoY growth YoY growth (0.01) (0.0%) Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 › Total Revenue increased by 24.7% from Rs. 109.5 C
Slide 20: REVL – Ratios and Return
REVL – Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity 1.30 1.33 ROCE 8.10% -3.17% EPS (Rs.) -0.09 -17.65 BV(Rs.) 148.47 144.60 20
Slide 21: Rane Brake Lining Limited
Rane Brake Lining Limited Q4 FY23 Financial & Operational Performance 21
Slide 22: RBL - Operational Performance Review (Q4 FY23)
RBL- Operational Performance Review (Q4 FY23) Business Split (Q4 FY23) BY MARKET (%) Intl OEM & Business Drivers Aftermarket, 5 India OEM&OES, 53 › Market leader in Passenger Vehicle segment and increased penetration in two wheeler segment › Dominant presence in Aftermarket segment, which accounts f
Slide 23: RBL – Financial Performance Review (Q4 FY23)
RBL – Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 8.3% 14.0% 9.5% 165.8 5.7% 21.9 (4.1)% 3.2% 8.0% 13.1 YoY growth 12.7% YoY growth 7.2% YoY growth 21.0 12.0 157.0 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 › Total Revenue increased by 5.7% from Rs
Slide 24: RBL – Ratios and Return
RBL – Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity - - ROCE 17.07% 14.30% EPS (Rs.) 43.29 35.03 DPS 25.00 20.00 Dividend payout (%) 58% 57% BV(Rs.) 337.88 314.16 24
Slide 25: ZF Rane Automotive India Private Limited
ZF Rane Automotive India Private Limited Q4 FY23 Financial & Operational Performance 25
Slide 26: ZRAI - Operational Performance Review (Q4 FY23)
ZRAI - Operational Performance Review (Q4 FY23) Business Split (Q4 FY23) BY MARKET (%) Business Drivers India Intl OEM & OEM&OES, 63 › Market upcycle in commercial vehicle segment aids growth in steering division Aftermarket, 33 › Occupant safety division benefits from evolving safety regulation in
Slide 27: ZRAI - Financial Performance Review (Q4 FY23)
ZF Rane Automotive India Pvt Limited (ZRAI) - Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 5.1% 10.5% 4.6% 35.4% 9.8% 45.7% 48..1% 512.7 378.7 53.9 26.0 YoY growth YoY growth YoY growth 37.0 17.6 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 › Total Re
Slide 28: ZRAI – Ratios and Return
ZRAI – Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity 0.65 0.43 ROCE 17.48% 11.40% EPS (Rs.) 111.27 56.52 DPS 77.00 39.00 Dividend payout (%) 70% 69% BV(Rs.) 563.04 492.06 28
Slide 29: Rane NSK Steering Systems Private Limited
Rane NSK Steering Systems Private Limited Q4FY23 Financial & Operational Performance 29
Slide 30: RNSS - Operational Performance Review (Q4 FY23)
RNSS - Operational Performance Review (Q4 FY23) Business Split (Q4 FY23) BY MARKET (%) Int OEM, 1 Business Drivers › Favourable share of business with key customer › Strong growth for Manual Steering Column product with new product introductions India OEM&OES, 99 Operational Highlights BY VEHICLE SE
Slide 31: RNSS - Financial Performance Review (Q4 FY23)
Rane NSK Steering Systems Private Limited (RNSS) - Financial Performance Review (Q4 FY23) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 7.8% Q4 FY22 Q4 FY23 -65.2 2.0% 407.4 (1.8)% 4.7% 40.1% -113.5 74.2% YoY growth 31.6 YoY growth YoY growth (16.0)% 18.9 400.2 (28.4)% Q4 FY22 Q4 FY23 Q4 FY22
Slide 32: RNSS – Ratios and Return
RNSS – Ratios and Return Particulars FY' 23 FY' 22 Debt : Equity 92.16 1.59 ROCE 18.11% 42.58% EPS (Rs.) -55.37 -36.34 BV(Rs.) 1.86 57.32 32
Slide 33: Rane Group About Us
Rane Group About Us Expanding Horizons eeoeaoee eeoeooeood Seccce
Slide 34: Rane Group – One of the Leading Auto Ancillary Player
Rane Group – One of the Leading Auto Ancillary Player GROUP SALES OF INR 6,690 CR (~USD 820 MN) Founded in 1929 and headquartered in Chennai, Rane Group is one of the STEERING AND SUSPENSION SYSTEMS preferred OE manufacturer and supplier for global auto majors 61% Rane (Madras) Ltd ZF Rane Automotiv
Slide 35: Holding Structure
Holding Structure Promoters Rane Holdings Ltd. (RHL) 47% Subsidiaries Joint Venture/Associate Rane (Madras) Ltd. (RML) ZF Rane Automotive India 72% Pvt. Ltd. (ZRAI) 49% Rane Light Metal Castings Inc. (RLMCA) 100% ZF Rane Occupants Systems Pvt. Ltd. (ZROS) 100% Rane Engine Valve Ltd. (REVL) 57% Rane
Slide 36: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) MANUFACTURING PLANT • Market leader in steering gear and steering linkage products in India. We have started catering to hydraulic products such as HSU and steering cylinders. • Best in class manufacturing facilities at Chennai, Mysore, Puducherry and Pant Nagar. • End to en
Slide 37: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) MANUFACTURING PLANT • Incepted In 1959, REVL manufactures valves and valve train components for various engine applications • Non Automotive applications such as power generation, marine, defence, locomotive, etc. • Comprehensive test laboratory for material characteris
Slide 38: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) MANUFACTURING PLANT • Established in 1964, RBL is a leader in Friction Products across OEM segments and supplies products to over 15 countries • Technical collaboration with Nisshinbo Brakes Inc. and TMD Friction • Library of widely tested and approved formulations to su
Slide 39: ZF Rane Automotive India Private Limited - Steering Gear Division
ZF Rane Automotive India Private Limited - Steering Gear Division (ZRAI - SGD) Joint venture partnership with ZF Group, Germany. MANUFACTURING PLANT Steering Gear Division • Design, Development and Application capability for complete Hydraulic Power Steering system for all vehicles. • Advanced desig
Slide 40: Rane NSK Steering Systems Private Limited (RNSS)
Rane NSK Steering Systems Private Limited (RNSS) MANUFACTURING PLANT • Joint venture partnership with NSK, Japan. • State-of-art R&D test lab for validation of steering columns. • Manufacturing facilities across four locations in Chennai, Bawal, Rudrapur & Ahmedabad. • Design & Development capabilit
Slide 41: Rane Group Product Range for Passenger Vehicle
Rane Group Product Range for Passenger Vehicle Light Metal Casting Products Rane (Madras) Valve train Components › Manual Steering Pinion Housing Gears Engine Timing Case Cover › Steering Linkages Engine Valves › Suspension Components Outboard Housing › Light Metal Casting Products Occupant Safety S
Slide 42: Rane Group Product Range for Commercial Vehicle
Rane Group Product Range for Commercial Vehicle Rane (Madras) Steering & Suspension Systems Light Metal Casting Products › Manual Steering Gears Hydraulic Pump Housing › Steering Linkages Manual Steering › Hydraulic Cylinders Column › Light Metal Casting Products Occupant Safety Systems Rane Engine
Slide 43: Rane Group Product Range for Farm Tractors
Rane Group Product Range for Farm Tractors Rane (Madras) Steering & Suspension Systems Friction Materials › Manual Steering Gears Clutch Facings › Steering Linkages Manual Steering › Hydraulic Cylinders Brake Lining Column Manual RCB › Hydrostatic Steering Unit Steering Gear Light Metal Casting Prod
Slide 44: Rane Group Product Range for Two/Three-Wheeler
Rane Group Product Range for Two/Three-Wheeler Friction Materials Rane (Madras) Disc pad › Light Metal Casting Products Light Metal Casting Products Rane Brake Lining Battery Box & Cover › Disc Pads Rane Engine Valve › Engine Valves › Valve Guides Valve train Components Valve Guides Engine Valves 44
Slide 45: Rane Group Product Range for Other Applications
Rane Group Product Range for Other Applications Friction Materials Railway Brake Block Sintered Brake Pads Rane (Madras) › Manual Steering Gears › Steering Linkages › Light Metal Casting Products Rane Engine Valve › Engine Valves Suspension Steering & Suspension Systems › Valve Guides Engine Valves
Slide 46: Our Illustrious Journey
Our Illustrious Journey An illustrious journey of over 80 years from distributor of automobile and auto components to winner of Deming prize for manufacturing Distribution Manufacturing Collaboration Operational Excellence Expanding Horizons 1929 - 1958 1959 - 1986 1987 - 2000 2000 - 2014 2015 onwar
Slide 47: Global Footprint
Global Footprint Sweden Canada Russia Germany Poland Slovakia UK Czech Republic Belgium Hungary France Austria Spain Romania USA Novi, MI Portugal Italy Turkey China Japan Russellville, KY Qatar S. Korea Morocco Bhutan Nepal Bangladesh Mexico UAE India Saudi Arabia Singapore, Malaysia & Thailand Ser
Slide 48: Rane Aftermarket Business
Rane Aftermarket Business Increasing Group’s brand presence in aftermarket through enhanced product portfolio and wider market reach 48
Slide 49: In house R&D & Technology Partnership
In house R&D & Technology Partnership Strong CAE Capabilities – Design, Analysis & Simulation Software 230 R&D Engineers 42 Functional Test Rigs 26 Strength Test Rigs Hydraulic Power Steering Systems and Occupant Safety Systems 62 Durability Test Rigs 33 Environment al Test Rigs Energy Absorbing Ste
Slide 50: We create and deliver value to our customers
We create and deliver value to our customers Passenger Vehicle Commercial Vehicle Farm Tractor Two/Three-Wheeler Other Applications INDIA INTERNATIONAL 50
Slide 51: Awards and Accolades are testimony to our resolve for Excellence
Awards and Accolades are testimony to our resolve for Excellence ‘Customer at the core’ remains our priority on the goal to sustainable growth and profitability Rane Group Rane (Madras) Rane Brake Lining Customer Award Category Customer Award Category Customer Award Category Volvo Eicher New Product
Slide 52: Expanding Horizons – Customers
Expanding Horizons – Customers Rane Values Rane Approach Rane Credentials Value Proposition › Provide superior › Build strong › Modern manufacturing facilities › Technology collaboration › Superior products products and connections with with TS 16949 certification with top global players driven by e
Slide 53: Expanding Horizons – Employees
Expanding Horizons – Employees An exciting workplace founded on the principles of values, fairness and transparency that: Provides challenging Encourages learning Enhances career Rane Brand assignments opportunities Promise › Organisation Development Excellence Award for the exceptional practices on
Slide 54: Expanding Horizons – Society
Expanding Horizons – Society › Rane Foundation (RF) is a public charitable trust founded by Rane’s promoters in the year 1967 › RF is the main arm for Rane’s Corporate Social Responsibility (CSR) initiatives and is exclusively funded by the Rane companies › Initiatives are focused on education, heal
Slide 55: Thank You
Thank You For further information, please contact: investorservices@ranegroup.com or diwakar.pingle@in.ey.com Rane Corporate Centre “Maithri" 132, Cathedral Road, Chennai - 600 086, India www.ranegroup.com 55
Slide 56: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion ACMA Automotive Component Manufacturers Association OES Original Equipment Supplier bps Basis point, 100 bps equal to 1% PAT Profit After Tax BV Book Value per share PBT Profit Before Tax Cr Crores PC Passenger Car CV Commercial
Slide 57: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. T