Krishna Defence And Allied Industries Limited · NSE:KRISHNADEF
Krishna Defence And Allied Industries — H2 FY2024 Earnings Presentation
46 slides from Krishna Defence And Allied Industries's earnings presentation, May 28, 2024
Slide 1: Exchange filing cover letter for earnings presentation
Date: - 28.05.2024 To, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex Bandra (East), Mumbai - 400 051 Symbol: - KRISHNADEF ISIN: - INE0J5601015 Sub: - Earning Presentation for the quarter and financial year ended 31.03.2024 Respected Sir/ Ma’am, Pursuant to Regulation
Slide 2: Investor Presentation H2 & FY 2024
KRISHNA DEFENCE & ALLIED INDUSTRIES LIMITED DEFENCE | DAIRY Investor Presentation H2 & FY 2024
Slide 3: Safe Harbor
SAFE HARBOR This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities of Krishna Defence and Allied Industries Limited (“KDAIL”, "Company“), nor shall part, or all, of this document form the basis of, or be relied
Slide 4: Indigenous Defence Manufacturing
INDIGENOUS DEFENCE MANUFACTURING Equipped with Inhouse RESEARCH, DESIGN & DEVELOPMENT aimed at “IMPORT Substitution” INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 3
Slide 5: Table of Contents
TABLE OF CONTENTS 01 About Us 02 Business Overview 03 Industry Overview 04 Way Forward 05 Financial Highlights INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 4
Slide 6: About Us
01 ABOUT US www.krishnaallied.com INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 5
Slide 7: Company Overview
COMPANY OVERVIEW 1997 Revenue Break-up (FY24) Started with Krishna Defence and Allied Industries Limited is a rapidly Dairy advancing defence company, providing critical components to Indian Navy for manufacturing Dairy Equipment 14% its warships and developing special products for Indian Army. Our
Slide 8: Infrastructure Overview
INFRASTRUCTURE OVERVIEW KALOL Manufacturing of “Dairy Equipment” ~40,000 sq. ft. Accredited with ISO 9001:2015 Quality Management System as Manufacturer and Exporter VADODARA Regional office MUMBAI Our manufacturing capability includes a wide range of Head office critical assemblies and precision co
Slide 9: The Founder
THE FOUNDER With the engineering skills, Late Mr. Ashwin N. Shah, the founder and an inspirational leader, started an engineering company to manufacture Stainless Steel Milk Cans in 1997 with a small investment and small team at Kalol, Gujarat. In 2006, he entered the development of Ship It was his
Slide 10: Meet the Team
MEET THE TEAM Mr. Ankur Shah – Managing Director Mr. Piyush Patel – CFO He holds a degree of Bachelor of Engineering (Production) from He is the company’s Chief Financial Officer since January 1, 2014, University of Bombay. He has an overall experience of 22 years in all holding a Bachelor's in Scie
Slide 11: Board of Directors
BOARD OF DIRECTORS Mrs. Preyal Shah – Chairperson & Additional Mr. Divyakant Zaveri – Independent Director Non-Executive Director Mr. Ankur Shah – Managing Director Mr. Jaykumar Toshniwal – Independent Director Mr. Sandeep Kadam – Director Operations INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 10
Slide 12: Our Objectives
OUR OBJECTIVES MISSION VISION VALUES To continuously strive to deliver To become the go-to company for world- Performance with pride and honor innovative, cost efficient, and modern class Engineering products within India by wherein ethical behavior is encouraged. engineering solutions laced with th
Slide 13: Our Evolution
OUR EVOLUTION 1997 1997 2006 2006 2008 2008 2014 2014 2017 2017 Established and started the Entered the Defence Sector Recognition from DMRL, Awarded Defence Technology Received approval certificates organisation with manufacturing and became an ToT partner Hyderabad for successfully Absorption Awar
Slide 14: Business Overview
02 BUSINESS OVERVIEW www.krishnaallied.com INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 13
Slide 15: Business Overview
BUSINESS 1 Vertically integrated Defence solution provider OVERVIEW 2 Catering to indigenously developed defence products Diversified business of developing manufacturing equipment 3 Industry expertise into special steel alloys and steel products 4 Comprehensive in-house capabilities of research, de
Slide 16: Business Verticals
BUSINESS VERTICALS 86% DEFENCE It’s Engineering! 14% DAIRY INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 15
Slide 17: Financial Overview
FINANCIAL OVERVIEW EBITDA 200 13.9% 14.5% 15.0% Operating Revenue (INR Mn) 150 13.6% 14.0% 13.3% 100 12.6% 13.0% 1,064 50 12.0% 36 44 66 89 154 0 11.0% FY20 FY21 FY22 FY23 FY24 EBITDA (INR Mn) EBITDA % 637 918 499 Net Profit 350 522 9.2% 150 8.3% 10.0% 357 8.0% 250 100 5.3% 4.9% 243 6.0% 137 3.1% 50
Slide 18: Defence
DEFENCE Providing INDIGENOUS SOLUTION to the INDIAN DEFENCE INDUSTRY QUALITY In-house Development, Transfer of Technology from DRDO + 01 manufacturing and supply of Products 02 & others, production and supply of Products ON TIME DELIVERY Providing solutions to Indian Navy, Indian Army and for Homela
Slide 19: Defence (ToT)
DEFENCE (TOT) Space Heating IED Containment Solar Snow Mounting and Specialised Food Device (Bukhari) Vessel to contain Melter used at Support Container Awarded with used at high detonation effect high altitudes Equipment for extreme cold “Transfer of Technology” for altitude in very for Multi Spect
Slide 20: Defence Products (1/3)
DEFENCE PRODUCTS (1/3) Ship Building Steel Sections Special Steel Alloy Ballast Bricks Heavy Vehicle Factory Steel Profile In-house Development In-house Development In-house Development Description Description Description These are specialized steel sections which are It has low magnetic signature a
Slide 21: Defence Products (2/3)
DEFENCE PRODUCTS (2/3) Special Steel Alloy Welding Wire Welding Electrodes Improved Space Heating Device In-house Development In-house Development Transfer of Technology from DIPAS & DRDO Description Description Description It is made-up of complex alloys developed for It is specially developed fuse
Slide 22: Defence Products (3/3)
DEFENCE PRODUCTS (3/3) Description It helps in preventing intruding vehicle, ensuring safety of large Modular Vehicle Barrier gatherings/crowds and is used by security forces to prevent casualties from lone wolf attacks. In-house Development Application It is used by security forces to prevent crowd
Slide 23: R&D Capabilities
R&D CAPABILITIES R&D Our Research & Development Activities are being focused on developing new products and solutions Capabilities leading to improved production process and improved quality of existing products Product Designing • R&D activities are mainly undertaken at our Product Engineering manu
Slide 24: Competitive Strengths
COMPETITIVE STRENGTHS Registered and approved vendor for Indian Vertically integrated defence solution with Make in India Navy for supply of specialised steel section for Capability having industry expertise in steel and special Naval Shipbuilding in India to all the prominent steel alloy products s
Slide 25: Defence Clientele
DEFENCE CLIENTELE Indian Indian Boarder Defence Research & Armoured Vehicles Army Navy Security Forces Development Organisation Nigam Limited Mazagon Dock Hindustan Larsen Garden Reach Shipbuilders & Goa Shipbuilders Limited Shipyard Limited and Toubro Engineering Limited Shipyard Limited INVESTOR P
Slide 26: Dairy
DAIRY Growing at a steady pace Operating on an Autopilot mode Wide Range of Dairy Equipment Wide customer base across the country The company started its engineering activities by introducing Since 1997, our dairy equipment has brought in hygienic Milk Stainless Steel Cans for the dairy industry. Co
Slide 27: Dairy Equipment
DAIRY EQUIPMENT Description Features It is made of food grade AISI 304 (18/8) stainless • Strong and sturdy body Stainless Steel Milk Cans steel with capacity ranging from 5L to 50L. • Easy Use and cleaning • Corrosion and crack resistant • Provides extended shelf life to milk It is our “Patented Te
Slide 28: Industry Overview
03 INDUSTRY OVERVIEW www.krishnaallied.com INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 27
Slide 29: Defence Industry Overview (1/2)
DEFENCE INDUSTRY OVERVIEW (1/2) Indian Navy Outlook India’s vision to be among top 5 ship building nation and ship repair hub of the Military Fixed Naval Vessels & Surface Missile & Missile world in the next decade. Wing Combatants Defence System Indian Defence Sector’s top three largest Market Segm
Slide 30: Defence Industry Overview (2/2)
DEFENCE INDUSTRY OVERVIEW (2/2) In last five years, defence exports grew by India has one of the strongest military forces in the The Presence of Indian Private Sector has grown since 334% & India is now exporting to 75+ world and holds a place of strategic importance for the opening of the defence
Slide 31: Government Policies & Initiatives
GOVERNMENT POLICIES & INITIATIVES • In the last few years, the Government of India has taken various • As of 2022, India has the world’s 4th largest defence expenditure. policy initiatives and brought in reforms to encourage indigenous • Till April 2023, total 606 Industrial Licenses have been issue
Slide 32: Defence Budget Outlook
DEFENCE BUDGET OUTLOOK Capital Outlay Defence Services (INR Bn) Naval Fleet & Dockyard (INR Bn) 1,572 1,500 298 1,389 282 287 1,345 581 537 1,104 551 518 210 195 449 477 511 375 460 262 297 332 326 334 254 RE 2019-20 RE 2020-21 RE 2021-22 RE 2022-23 RE 2023-24 RE 2019-20 RE 2020-21 RE 2021-22 RE 202
Slide 33: Way Forward
04 WAY FORWARD www.krishnaallied.com INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 32
Slide 34: New Business Prospects
NEW BUSINESS PROSPECTS Specialised Weld Consumables for Defence & Aerospace Design, Development & Manufacture RF/Microwave/Optics Systems for Defence and Aerospace Survey In water Hull Survey for Indian Navy Vessels Collaboration Fire Resistant Composite Doors & Hatches INVESTOR PRESENTATION WWW.KRI
Slide 35: New Business Arena (1/2)
NEW BUSINESS ARENA (1/2) WAVEOPTIX DEFENCE SOLUTION PRIVATE LIMITED Special focus on Optic Fibre over Radio Frequency for long distance and secure Defence & Satcom Aerospace signal transmission Incorporated in Associate Company of Manufacturing of Dedicated team Designing, Developing and Manufacturi
Slide 36: New Business Arena (2/2)
NEW BUSINESS ARENA (2/2) Product/ Solutions Infrastructure USP • Bi-Directional RFOF for HF/VHF/UHF • Design & Development Team • Designed & manufactured in India to Radio • Manufacturing & Testing meet global standards • Multi-Link RF over Fiber for • RF Testing Facility (9KHz to 44GHz) • End-to-En
Slide 37: Way Forward
WAY FORWARD Development of New Defence Products The company is working towards new product development for the defence to indigenise the products which are currently being imported, Off set contract obligation and collaborate with Defence Research Agencies / Foreign agencies to develop and manufactu
Slide 38: Financial Highlights
05 FINANCIAL HIGHLIGHTS www.krishnaallied.com INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 37
Slide 39: Half Yearly Highlights
HALF YEARLY HIGHLIGHTS Revenue EBITDA EBITDA Margin Net Profit Net Profit Margin H2FY24 H2FY24 H2FY24 H2FY24 H2FY24 Rs 712 Mn Rs 107 Mn 15.1 % Rs 72 Mn 10.1 % 61.4 % YoY 90.8 % YoY +232 bps YoY 95.8 % YoY +177 bps YoY FY24 FY24 FY24 FY24 FY24 Rs 1,064 Mn Rs 154 Mn 14.5% Mn Rs 98 Mn 9.2 % 67.2 % YoY
Slide 40: Half Yearly Income Statement
HALF YEARLY INCOME STATEMENT Particulars (INR Mn) H2FY24 H1FY24 H2FY23 YoY% HoH% FY24 FY23 YoY% Revenue from Operations 712.0 352.3 441.0 61.43 102.10 1064.3 636.6 67.19 Total Expenditure 604.6 305.3 384.8 57.13 98.04 909.9 548.0 66.03 EBITDA 107.4 47.0 56.3 90.80 128.48 154.4 88.5 74.41 EBITDA Marg
Slide 41: Profit & Loss Statement
PROFIT & LOSS STATEMENT Particulars (INR Mn) FY21 FY22 FY23 FY24 Revenue from Operations 350.27 499.19 636.53 1064.3 Total Expenditure 306.20 432.88 548.04 909.9 EBITDA 44.06 66.32 88.50 154.4 EBITDA Margin 12.58% 13.28% 13.91% 14.51% Other income 13.01 4.24 9.53 12.5 Depreciation 13.97 16.76 19.68
Slide 42: Balance Sheet
BALANCE SHEET Particulars (INR Mn) FY23 FY24 Particulars (INR Mn) FY23 FY24 EQUITY & LIABILITIES ASSETS Shareholders' Fund 408.67 1,064.25 Non-Current Assets 185.17 239.03 Share Capital 114.48 137.05 Property, Plant & Equipment 123.39 146.24 Other Equity 294.19 927.20 Capital WIP 20.61 0.32 Non-Curr
Slide 43: Awards & Appreciation
AWARDS & APPRECIATION 42
Slide 44: INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM
INVESTOR PRESENTATION WWW.KRISHNAALLIED.COM 43
Slide 45: DTA Award, SME Award, NMRL Award
DTA Award SME Award NMRL Award Recognition with an Appreciation Certificate from Defence Metallurgical Research Laboratory (DMRL), Hyderabad for successfully developing Bulb Bars (ship building steel sections), a critical component for the Indian Navy’s indigenization program, as the project was of
Slide 46: Thank You
THANK YOU KRISHNA DEFENCE & ALLIED INDUSTRIES LTD 344, A to Z Industrial Estate, Lower Parel, Mumbai – 400 013. Email: info@krishnaallied.com +91 22 4220 3800 www.krishnaallied.com KAPT I FY ® Consulting Strategy & Investor Relations | Consulting Email: contact@kaptify.in +91-845 288 6099 www.kaptif
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