Slide 1: Exchange cover letter: earnings presentation submission
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Slide 2: Rane Group Earnings Presentation Q3 FY20
Rane Group Earnings Presentation | Q3 FY20 F e b r u a r y 2 0 2 0 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Outline
Outline › Industry Performance Review – Q3 FY20 › Rane Group Performance Review – Q3 FY20 › Group Companies Performance Highlights – Q3 FY20 Not to be copied or distributed without permission of Rane Holdings Limited 2
Slide 4: Industry Performance Review (Q3 FY20)
Industry Performance Review (Q3 FY20) Production YoY Rane Group Sales Growth Rane Group Revenue Vehicle Segment Growth# in % YoY in % (India OEM) Split * (India OEM) Passenger Cars (PC) -18% -9% 46% Utility Vehicles (MUV) 28% -11% 20% Vans -54% -30% 1% - Total Passenger Vehicle -8% -10% 67% Small Co
Slide 5: Outline
Outline › Industry Performance Review – Q3 FY20 › Rane Group Performance Review – Q3 FY20 › Group Companies Performance Highlights – Q3 FY20 Not to be copied or distributed without permission of Rane Holdings Limited 4
Slide 6: Group Aggregate Performance Review (Q3 FY20)
Group Aggregate Performance Review (Q3 FY20) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 4.9% 9.9% 8.2% 1,311.4 63.8 1,088.1 130.0 1.9% 17.0% 67.9% 31.2% 89.4 20.5 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 * PBT before exceptional items › Total Net Revenue dropped by 1
Slide 7: RHL Consolidated Performance Review (Q3 FY20)
RHL Consolidated Performance Review (Q3 FY20) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 9.9% 8.1% 7.1% 638.8 63.3 546.0 29.9% 44.4 14.5% 45.4 72.2% 2.3% 12.6 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 * PBT before exceptional items and includes profits from JV › Total
Slide 8: Group Aggregate Performance Review (YTD)
Group Aggregate Performance Review (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 4,025.4 3,428.5 -14.8% EBITDA 424.4 267.5 -37.0% EBITDA Margin 10.5% 7.8% -274 bps PBT Before Exceptional Items 231.5 59.8 -74.2% Exceptional (Expenses) / Income * (23.3) (88.1) PBT 208.2 (28.3) -113.6% PBT Margi
Slide 9: RHL Consolidated Performance Review (YTD)
RHL Consolidated Performance Review (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 1,929.3 1,681.2 -12.9% EBITDA 186.3 129.7 -30.4% EBITDA Margin 9.7% 7.7% -194 bps PBT Before Exceptional Items 155.0 36.9 -76.2% Exceptional (Expenses) / Income * (11.4) (43.1) PBT 143.6 (6.3) -104.4% PBT Margin
Slide 10: Outline
Outline › Industry Performance Review – Q3 FY20 › Rane Group Performance Review – Q3 FY20 › Group Companies Performance Highlights – Q3 FY20 Not to be copied or distributed without permission of Rane Holdings Limited 9
Slide 11: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) Not to be copied or distributed without permission of Rane Holdings Limited 10
Slide 12: RML Standalone – Operational Performance Review
RML Standalone – Operational Performance Review Business Split (Q3 FY20) Market Environment By Market (%) › Adverse market condition across vehicle segments in India Intl OEM, 21 India OEM&OES, 60 – Higher penetration of power steering in LCV & Farm Tractor segment resulted in decline in served mark
Slide 13: RML Standalone – Financial Performance Review
RML Standalone – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 4.3% 10.4% 341.9 8.8% 14.6 280.2 30.8% 76.4% 1.2% 18.0% 35.6 24.6 3.5 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 * PBT before exceptional items › Total Net Revenue dropped by 18.0%
Slide 14: RML – Standalone Financials (YTD)
RML – Standalone Financials (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 1,045.0 859.8 -17.7% EBITDA 115.1 74.3 -35.4% EBITDA Margin 11.0% 8.6% -237 bps PBT Before Exceptional Items 55.0 11.0 -80.1% Exceptional (Expenses) / Income - - PBT 55.0 11.0 -80.1% PBT Margin 5.3% 1.3% -399 bps PAT 38
Slide 15: RML Consolidated – Financial Performance Review
RML Consolidated – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 0.7% 7.4% 2.9 387.7 320.5 5.7% Q3 FY2019 Q3 FY2020 17.3% 28.9 37.0% 18.2 357.7% (7.5) Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 -2.3% * PBT before exceptional items › Total Net Revenue decreased by
Slide 16: RML – Consolidated Financials (YTD)
RML – Consolidated Financials (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 1,185.2 997.9 -15.8% EBITDA 101.1 49.5 -51.1% EBITDA Margin 8.5% 5.0% -357 bps PBT Before Exceptional Items 27.0 (26.9) -199.7% Exceptional (Expenses) / Income - - PBT 27.0 (26.9) -199.7% PBT Margin 2.3% -2.7% -497 bp
Slide 17: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) Not to be copied or distributed without permission of Rane Holdings Limited 16
Slide 18: REVL – Operational Performance Review
REVL – Operational Performance Review Business Split (Q3 FY20) Market Environment By Market (%) › Drop in volume across major vehicle segments in India Intl Aftermarket, 11 India › Drop in offtake from International customer Aftermarket, 7 India Intl OEM, 18 OEM&OES, 64 Operational Highlights By Veh
Slide 19: REVL – Financial Performance Review
REVL – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs. cr.) 4.8% Q3 FY2019 Q3 FY2020 (5.1) 5.2 107.5 (7.6) 2.2% -4.8% 48.1% 22.9% 82.9 64.4% 1.8 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 -9.2% * PBT before exceptional items › Total Net Revenue declined by 22.9% from R
Slide 20: REVL – Financials (YTD)
REVL – Financials (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 318.4 281.6 -11.6% EBITDA 11.9 9.6 -19.3% EBITDA Margin 3.7% 3.4% -33 bps PBT Before Exceptional Items (18.1) (19.8) -9.0% Exceptional (Expenses) / Income - - PBT (18.1) (19.8) -9.0% PBT Margin -5.7% -7.0% -133 bps PAT (11.9) (12
Slide 21: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) Not to be copied or distributed without permission of Rane Holdings Limited 20
Slide 22: RBL – Operational Performance Review
RBL – Operational Performance Review Business Split (Q3 FY20) Market Environment By Market (%) › Volume drop across Indian vehicle segments; Favourable demand from 2-Wheeler Intl OEM, 6 India OEM&OES, segment driven by migration to disc brakes 54 › Muted demand from Indian Aftermarket business India
Slide 23: RBL – Financial Performance Review
RBL – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 15.2% 11.1% 9.2% 13.9% 20.5 134.5 14.9 130.6 19.6% 12.0 2.9% 11.1% 18.2 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 * PBT before exceptional items › Total Net Revenue decreased by 2.9% from Rs
Slide 24: RBL – Financials (YTD)
RBL – Financials (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 378.9 361.6 -4.6% EBITDA 49.0 49.2 0.3% EBITDA Margin 12.9% 13.6% 66 bps PBT Before Exceptional Items 32.3 30.3 -6.0% Exceptional (Expenses) / Income - - PBT 32.3 30.3 -6.0% PBT Margin 8.5% 8.4% -13 bps PAT 22.4 25.0 11.5% PAT Mar
Slide 25: Rane TRW Steering Systems Pvt. Ltd. (RTSS)
Rane TRW Steering Systems Pvt. Ltd. (RTSS) Not to be copied or distributed without permission of Rane Holdings Limited 24
Slide 26: RTSS – Operational Performance Review
RTSS – Operational Performance Review Business Split (Q3 FY20) Market Environment By Market (%) › Significant drop in Indian Commercial Vehicle volumes impacted steering gear products India OEM&OES, › Occupant safety products: Drop in domestic Passenger Vehicle market and lower Intl OEM, 36 59 offta
Slide 27: RTSS – Financial Performance Review
RTSS – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 7.1% 10.6% 35.6 8.4% 335.3 23.9 24.7% 3.4% 40.2% 63.7% 252.6 21.3 8.7 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 * PBT before exceptional items › Total Net Revenue decreased by 24.7% from Rs
Slide 28: RTSS – Financials (YTD)
RTSS – Financials (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 998.0 890.6 -10.8% EBITDA 115.6 71.9 -37.8% EBITDA Margin 11.6% 8.1% -351 bps PBT Before Exceptional Items 81.1 32.4 -60.0% Exceptional (Expenses) / Income - - PBT 81.1 32.4 -60.0% PBT Margin 8.1% 3.6% -448 bps PAT 53.9 25.0 -53.
Slide 29: Rane NSK Steering Systems Pvt. Ltd. (RNSS)
Rane NSK Steering Systems Pvt. Ltd. (RNSS) Not to be copied or distributed without permission of Rane Holdings Limited 28
Slide 30: RNSS – Operational Performance Review
RNSS – Operational Performance Review Business Split (Q3 FY20) Market Environment By Market (%) › Drop in Passenger Vehicle segment impacted EPS performance Intl OEM, 1 India OEM&OES, › MSC volumes impacted by drop in Commercial Vehicle segment 99 Operational Highlights By Vehicle Segment (%) › Purs
Slide 31: RNSS – Financial Performance Review
RNSS – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 12.1% 8.5% 10.3% 5.5% 40.7 30.6 297.3 16.4 336.6 24.7% 28.8 43.1% 11.7% Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 Q3 FY2019 Q3 FY2020 * PBT before exceptional items › Total Net Revenue decreased by 11.7% from
Slide 32: RNSS – Financials (YTD)
RNSS – Financials (YTD) Rs Cr 9M FY19 9M FY20 Growth Total Net Revenue 1,093.3 882.1 -19.3% EBITDA 148.4 89.2 -39.9% EBITDA Margin 13.6% 10.1% -346 bps PBT Before Exceptional Items 113.3 47.6 -58.0% Exceptional (Expenses) / Income * (23.3) (88.1) PBT 90.0 (40.4) -144.9% PBT Margin 8.2% -4.6% -1282 b
Slide 33: Thank You
Thank You Rane Corporate Centre For further information, please contact: “Maithri" 132, Cathedral Road, investorservices@ranegroup.com or dpingle@christensenir.com Chennai - 600 086, India www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 32
Slide 34: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion bps Basis point, 100 bps equal to 1% OE Original Equipment CII Confederation of Indian Industry OEM Original Equipment Manufacturer EBITDA Earnings Before Interest, Tax and Depreciation & OES Original Equipment Supplier Amortiza
Slide 35: 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