Talbros Automotive Components Limited · NSE:TALBROAUTO
Talbros Automotive Components — Q3 FY2024 Earnings Presentation
31 slides from Talbros Automotive Components's earnings presentation, Feb 7, 2024
Slide 1: Talbros Automotive Components Ltd. exchange filing cover letter
ta lb @ Talbros Automotive Components Ltd. www.talbros.com 7" February, 2024 The Bombay Stock Exchange Ltd. The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, 5" Floor, Plot No. C/1, Dalal Street, Fort G Block, Bandra Kurla Complex, Mumbai — 400 001 Bandra (East), M
Slide 2: Q3 & 9M FY24 Investor Presentation
Q 3 & 9 M F Y 2 4 I NV ESTOR P RESENTATIO N February 2024
Slide 3: Talbros Automotive Components Ltd (TACL) - Group
Talbros Automotive Components Ltd (TACL) - Group Product Portfolio Entities TACL Group Turnover*(Rs. Crs.) 9MFY23 9MFY24 Gaskets & TACL Standalone 316 382 Heat Shields Nippon Leakless Talbros Pvt Ltd** 69 75 Forgings TACL Standalone 161 203 9MFY23 9MFY24 757 941 Chassis Marelli Talbros Chassis Syste
Slide 4: MDs Comments
MDs Comments Commenting on the performance Mr. Anuj Talwar, Jt. Managing Director, Talbros Automotive Components Limited said: “In Q3 FY24, TACL has demonstrated strong growth in profitability compared to the previous year, with a 40% increase in EBITDA to Rs. 33 crores and a 66% growth in Net Profi
Slide 5: New Multi year orders worth over Rs. 400 crores received in Jul-23
New Multi year orders worth over Rs. 400 crores received in Jul -23 The order covers the following product lines Orders received from a leading established export OEM for the Electric Vehicles (EV) for Body in White - Stamped Metal Part for over Rs. 165 crores over 5 years (Expected SOP for these pr
Slide 6: New Multi year orders worth over Rs. 580 crores received in Nov-23
New Multi year orders worth over Rs. 580 crores received in Nov -23 The order covers the following product lines Orders received from a leading export OEM for Electric Vehicles (EV) for products such as EDS Brackets, Transcradle Bracket, Mid-Metal Shield, S3 Pack and Battery Stampings for ~Rs. 270 c
Slide 7: Sale of Share in Joint Venture in Dec'23
Sale of Share in Joint Venture in Dec’23 ✓ On 22nd December 2023, Board of Directors of Talbros Automotive Components Limited (TACL) have approved the Divestment of its entire 40% stake in its Joint Venture company Nippon Leakless Talbros. Post the stake sale by TACL, Nippon Leakless will own 100% o
Slide 8: Q3 & 9M FY24 Consolidated Performance Highlights
Q3 & 9M FY24 Consolidated Performance Highlights Total Income from Operations^ EBITDA^ Profit After Tax* 14.9% 16.5% 8.6% 11.3% +26% +40% +66% 201.5 33.2 22.7 Q3 FY24 159.7 23.8 13.7 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 14.0% 15.7% 8.1% 10.3% +22% +38% +56% 583.4 91.8 60.2 9M FY24 476.5 66.7 38
Slide 9: Q3FY24 Consolidated Performance Highlights
Q3FY24 Consolidated Performance Highlights Gasket & Heat Forgings MTCS TMR NLT* Shield +26% +27% +24% +42% +22% 130.3 71.2 68.7 28.5 26.0 Revenues 103.5 56.1 55.2 21.3 20.1 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 +47% +29% +47% +69% +50% 21.0 12.2 9.5 2.2 7.1 EBITDA 9.5
Slide 10: 9MFY24 Consolidated Performance Highlights
9MFY24 Consolidated Performance Highlights Gasket & Heat Forgings MTCS TMR NLT* Shield +21% +26% +22% +62% +9% 381.9 202.7 189.6 91.6 75.1 Revenues 68.7 315.9 160.6 155.2 56.4 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 +34% +49% +50% +112% +25% 57.9 35.0 25.2 6.7 18.8 EBIT
Slide 11: Across varied segments…
Across varied segments… 8% 11% 9% Domestic Breakup* 22% 22% 10% 26% 11% 13% 2 & 3 Wheelers Passenger Vehicle FY22 FY23 9MFY24 HCV & LCV Agri & Off Loaders 28% 24% 26% 28% Others 28% 34% 8% 8% 9% 5% 4% 3% Breakup (Type of OEM Market)* Exports 23% FY22 25% FY23 25% 9MFY24 After Market 64% 63% 63% Othe
Slide 12: Strong Balance Sheet
Strong Balance Sheet Return on Capital Employed (RoCE) Return on Equity (RoE) Debt / Equity 19.3% 19.2% 0.29 16.3% 16.5% 16.3% 16.6% 0.24 0.19 FY22 FY23 H1FY24* FY22 FY23 H1FY24* Mar-22 Mar-23 Sep-23 RoE = PAT / Avg. Equity ; RoCE = EBIT / Avg. Capital Employed (Equity + Total Debt) *Annualized 11
Slide 13: Q3 & 9M FY24 Consolidated Profit & Loss Statement
Q3 & 9M FY24 Consolidated Profit & Loss Statement Particulars (Rs. Crores) Q3FY24 Q3FY23 Y-o-Y 9MFY24 9MFY23 YoY Revenue from Operations 198.7 158.5 25% 575.6 472.2 22% Other Income 2.7 1.1 7.8 4.3 Total Revenue from Operation 201.5 159.7 26% 583.4 476.5 22% Raw Material 108.7 86.4 316.4 254.2 Emplo
Slide 14: Hedged Portfolio…
Hedged Portfolio… 9MFY24 - Revenue Contribution Segments Product Portfolio Market Exposure TMR 6% ▪ 2 Wheelers ▪ Gaskets ▪ OEMs NLK 4% ▪ 3Wheelers ▪ Heat Shields ▪ After Market MTCS ▪ Passenger Vehicles ▪ Forgings ▪ Exports 12% ▪ Commercial Vehicles ▪ Chassis Systems ▪ Others Forgings ▪ Anti vibrati
Slide 15: Having Diversified Customer base - Top 10 Customers
Having Diversified Customer base - Top 10 Customers FY23 9MFY24 01 Maruti Suzuki India 13% 01 Maruti Suzuki India 14% 02 TATA Motors 8% 02 TATA Motors 9% 03 Jaguar Land Rover 7% 03 Bajaj Auto 7% 04 Bajaj Auto 7% 04 TATA CUMMINS 7% 05 TATA CUMMINS 6% 05 Jaguar Land Rover 6% 06 HERO MOTOCORP 6% 06 HER
Slide 16: Gasket Business
Gasket Business ▪ ~50% Market share in Gaskets 3x the nearest competitor Total Income ▪ Market Leader in – Two-Wheeler, Agri & Off Loaders, HCV & LCV segment 433 382 382 ▪ Single Source Supplier for 5 of our customers 333 265 287 ▪ Signed up exclusive contract with SANWA for Light Weight Aluminium H
Slide 17: Forgings Business
Forgings Business ▪ One stop solution for Hot Forging (750 to 2,500 Ton Press) Total Income ▪ Strong presence in Overseas Market & Supplier to Top Tier I companies ▪ One Stop Solution for Die Design, Machine parts and Heat treatment 220 (Normalizing and Carbohydrizing) 204 203 166 170 ▪ Moving towar
Slide 18: Strong Global Partnerships - Joint Ventures
Strong Global Partnerships - Joint Ventures Talbros Marugo Rubber Pvt. Ltd. (TMR) Marelli Talbros Chassis Systems Pvt Ltd (MTC) Nippon Leakless Corporation (NLK)* ✓ Marugo Rubber Industries Ltd (Japan) - Global ✓ Magneti Marelli S.p.a (Milano) - A Fiat group ✓ Nippon Leakless Corporation (Japan) - O
Slide 19: JV's Performance Highlights - Total Income from Operations
JV’s Performance Highlights - Total Income from Operations Talbros Marugo Rubber Marelli Talbros Chassis Systems Nippon Leakless Talbros* 91.6 209.6 122.1 84.8 189.6 106.0 164.6 83.4 86.2 129.7 136.8 74.2 75.1 52.0 54.7 124.3 45.8 41.0 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24
Slide 20: Venturing into EV
Venturing into EV FORGINGS o Marelli Talbros is working on new RFQ’s for several Supplying parts for Plug-in hybrid Indian and global OEM’s for supporting Electric Vehicles to OEMs globally development of future EV’s o Marelli Talbros Supplies Critical Suspension Components to EV’s Increased Focus o
Slide 21: Capex Plans - TACL
Capex Plans - TACL Addl. Capex to reach Utilization Levels (FY23) Revenues of FY27e Gasket & Heat Shield 85% Rs. 50 Crores To be funded by Internal Accruals Capex of Rs. 25-30 Crs. Forgings 77% Rs. 60 Crores per annum Marelli Talbros Chassis Systems* 73% Rs. 80 Crores These amounts will (MTCS) be fu
Slide 22: Talbros 2.0 – The Way Forward
Talbros 2.0 – The Way Forward Increased Export Increased Comfortable Debt Higher Returns Sales Margins Profile 25% in FY23 EBITDA Margins Total Debt to to increase from RoCE to increase to remain under ~14% to to 20% + going 35% + in ~15-16% by Rs. 100 ahead FY27e crores FY27e D R I V I N G F U T U
Slide 23: About Us
About Us Over 6 Decades of experience in Auto Component manufacturing Diversified Auto Component Player Across Two Wheelers, PVs, CVs Off-Highway and Farm Equipments One of the Electric Vehicles – Supply to EV’s (Major OEM’s globally) Most Hedged Diversified Product Portfolio – Gasket & Heat Shields
Slide 24: Leadership Team driving Growth & Profitability
Leadership Team driving Growth & Profitability Anuj Talwar – Joint Managing Director Is a Bachelor in Business Administration from college of William & Mary, Virgina, USA and Master of Business Administration from Boston University Graduate School of Management. He has been associated with the Compa
Slide 25: Strong Board of Directors
Strong Board of Directors Mr. Naresh Talwar Mr. Umesh Talwar Mr. Varun Talwar Mr. Anuj Talwar Mr. Navin Juneja Mr. Vidur Talwar Chairman Vice Chairman & MD Joint Managing Joint Managing Director & Group CFO Non-Executive Director Director Director Mr. Deepak Jain Mr Anil Kumar Mehra Mr. Amit Burman
Slide 26: Executive Management
Executive Management Mr. Manish Khanna Mrs. Seema Narang Chief Financial Officer Company Secretary A Qualified CA and MBA, he has over 18 years of experience with LeeBoy India She has over 30 years of experience in the secretarial department and has worked with Constructions, Doosan Infracore, Escor
Slide 27: Scope of Joint Ventures
Scope of Joint Ventures Rear Twist Beam Axle Fuel Hose Strut Mount Steering Bush Front Cross Members Engine Mount Suspension Arms Bush Wheel Group + Corner Module Air Hose Control Arms Knuckles Exhaust Hanger MMT MMT TMR TMR Existing Business Planned for Future Existing Business Planned for Future 2
Slide 28: Evolving Product Portfolio
Evolving Product Portfolio JV with Marugo Evolution Rubber Continues... Revenue FY07 JV with Magneti Marelli Hoses Hoses TA with SANWA Anti Vibration Anti Vibration Gasket 100% Acquired Sheet Metal, Products Products Entry into Forgings, JV with NLK - Gaskets Chassis Systems Chassis Systems Chassis
Slide 29: Hedged Customer Base
Diversified Customer - OEM 2 Wheeler Passenger Hedged Customer Base HCV/LCV Agri & Off Loader Agri & Off Loader 28
Slide 30: Customer Awards for Best Performances
Customer Awards for Best Performances Appreciation Award for Response to New ACMA Atmanirbhar Award from Jaguar Land Rover Quality improvement Overall Performance to Product Development Excellence Awards for Gasket Business 2022 contest award – MTCS - 2023 2023 2022 Kirloskar Oil Engines Ltd 2021 JL
Slide 31: THANK YOU !
THANK YOU ! For further information, please contact: Company : Investor Relations Advisors : Talbros Automotive Components Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L29199HR1956PLC033107 CIN: U74140MH2010PTC204285 Ms. Seema Narang Mr. Deven Dhruva/ Mr. Harsh Shah seema_narang@talbros.com deven.d
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