Slide 1: Q1 FY2015 Earnings Presentation
DYNAMATIC TECHNOLOGIES LIMITED Q1 FY2015 EARNINGS PRESENTATION . HYDRAULICS AEROSPACE & DEFENCE AUTOMOTIVE
Slide 2: Important Notice
IMPORTANT NOTICE This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies’ (“Dynamatic” or “Company”) future business
Slide 3: Performance Highlights
PERFORMANCE HIGHLIGHTS Consolidated Financial Highlights Q1 FY15 Highlights Q1 FY15 Revenue Breakup • Net Revenues increased 19.8% y-o-y to Rs. 4,250 million Aerospace & Defence 14% Automotive • EBITDA increased by 56.0% y-o-y to Rs. 68% 463 million • EBITDA margin of 10.9%, an increase of 250 bps o
Slide 4: Performance Highlights: Management Commentary
PERFORMANCE HIGHLIGHTS Management Commentary Commenting on the results, Mr. Udayant Malhoutra, CEO and Managing Director said: “We are pleased to announce a strong topline performance coupled with an improvement in the operational profitability. All our divisions continued to grow on a y-o-y basis,
Slide 5: Performance Highlights: Deleveraging Strategy
PERFORMANCE HIGHLIGHTS Deleveraging Strategy Equity Infusion by the Promoter Group: o Rs. 125 million in March 2013, Rs. 75 million in March 2014 and Rs. 300 million in FY2015 Sale and Lease Back: o Entered into a sale and lease back transaction without any obligation to repurchase for a facility in
Slide 6: Financial Performance Summary
FINANCIAL PERFORMANCE SUMMARY Consolidated Performance Highlights Q1 y-o-y Q4 q-o-q Rs. million Growth Growth FY15 FY14 (%) FY14 (%) Revenue 4,250 3,548 19.8% 4,304 (1.3)% EBITDA 463 297 56.0% 426 8.7% Margin (%) 10.9% 8.4% 9.9% Profit After Tax (PAT) (110) (104) nm 132 nm Margin (%) (2.6)% (2.9)% 3
Slide 7: Automotive Segment
AUTOMOTIVE SEGMENT Financial Overview Performance Overview Q1 y-o-y Q4 q-o-q • India revenue remained subdued Rs. million growth growth FY15 FY14 FY14 • However, achieved profitability driven by (%) (%) profitable sales mix and cost saving Revenue 2,873 2,398 19.8% 2,900 (1.0)% initiatives undertake
Slide 8: Hydraulics Segment
HYDRAULICS SEGMENT Financial Overview Performance Overview Q1 y-o-y Q4 q-o-q • India revenue increased y-o-y led by Rs. million growth growth continued strong demand from the FY15 FY14 (%) FY14 (%) agriculture sector Revenue 782 693 12.8% 776 0.8% • UK profitability affected y-o-y due to India 457 3
Slide 9: Aerospace and Defence Segment
AEROSPACE AND DEFENCE SEGMENT Financial Overview Performance Overview Q1 y-o-y Q4 q-o-q • Robust y-o-y growth in revenues of both Rs. million growth growth India and UK businesses due to strong FY15 FY14 (%) FY14 (%) execution of the existing orders as per Revenue 593 454 30.5% 629 (5.8)% long-term
Slide 10: Quarterly Financial Trends
QUARTERLY FINANCIAL TRENDS Strong Financial Performance Revenue (Rs. mn) Segment Wise Revenue Contribution 4,304 4,250 13% 14% 15% 15% 14% 4,024 3,999 3,548 20% 20% 20% 18% 18% 13.4% 7.6% 68% 66% 65% 67% 68% (1.3)% (7.8)% (0.6)% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Automotive Hydraulics Aerospace
Slide 11: Quarterly Financial Trends: Deleveraging the Balance Sheet
QUARTERLY FINANCIAL TRENDS Focus on Deleveraging the Balance Sheet Capital Structure Debt and Net Debt (Rs.mn) 6,595 (Rs. million) Jun 30, 2014 Mar 31, 2014 6,265 6,140 5,916 5,475 5,550 Long Term Borrowings 4,645 4,908 Short Term 1,495 1,008 Borrowings Total Debt 6,140 5,916 Less: Cash & Cash 591 4
Slide 12: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products for the business automotive, hydraulic, aerospace and defence industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 13: Dynamatic Overview
DYNAMATIC OVERVIEW Vertically • Advanced iron and aluminium foundries in India and Germany for captive use Integrated • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of Facilities manufacturing highly intricate castings • In-house division for design validation and opti
Slide 14: Dynamatic Overview
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components including engine, transmission, turbocharger and chassis parts 68% of Q1 FY15 • Metallurgical ferrous and Revenue aluminium castings • Hydraulic valves HYDRAULICS • Hydrauli
Slide 15: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors Others 26% Promoters 55% DIIs 0% Param Capital FIIs 19% Shareholding Pattern Trend Equity History Shareholders Sep-13 Dec-13 Mar-14 Jun-14 Equity Year Event Capital (Rs. mn) Promoters 55.3% 55.3% 56.0% 54.6% 1974 Initial Publ
Slide 16: Financial Statements: Income Statement
FINANCIAL STATEMENTS Income Statement Profit & Loss Statement (Rs. million) Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 3,509 3,984 3,960 4,266 4,217 Other Operating Income 39 40 39 39 33 Total Revenues 3,548 4,024 3,999 4,304 4,250 Expens
Slide 17: Financial Statements: Balance Sheet – Assets
FINANCIAL STATEMENTS Balance Sheet – Assets Balance Sheet (Rs. million) Q4 FY13 Q2 FY14 Q4 FY14 ASSETS Non-Current Assets Goodwill 679 679 679 Fixed Assets 0 0 0 i) Tangible Fixed Assets 5,671 5,685 5,967 ii) Intangible Fixed Assets 260 272 224 iii) Capital work in progress 742 769 28 iv) Intangible
Slide 18: Financial Statements: Balance Sheet – Liabilities
FINANCIAL STATEMENTS Balance Sheet – Liabilities Balance Sheet (Rs. million) Q4 FY13 Q2 FY14 Q4 FY14 EQUITY and LIABILITIES Shareholders Fund Share capital 54 54 55 Reserves and surplus 1,157 859 1,376 Money Received against Share Warrants 125 125 100 Non-controlling interest (Preference capital) 33
Slide 19: Contact Details
CONTACT DETAILS Mr. Hanuman Sharma Chief Financial Officer Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India T: +91 80 2839 4933 / 34 / 35 F: +91 80 2839 5823 E: hanuman.sharma@dynamatics.net Mr. Naveen Chandra DGM-Compliance, Legal & Company Secretary Dyna