Remsons Industries Limited · NSE:REMSONSIND
Remsons Industries — Q3 FY24 Earnings Presentation
42 slides from Remsons Industries's earnings presentation, Feb 9, 2024
Slide 1: Exchange filing cover letter
9th February, 2024 To, To, The Manager The Manager – Listing Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, ‘G’ Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai – 400 051 Scr
Slide 2: Investor Presentation Q3FY24
INVESTOR PRESENTATION Q3FY24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Remsons Industries Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not
Slide 4: Table of Content
Table of Content Index Pg No 1. Business Overview & 4-25 Financials 2. Product Portfolio 26-32 3. Annexures 33-41 Note – Numbers are rounded off to the nearest digit. Calculation of ratios , margins and growth are considered accordingly. 3
Slide 5: Remsons: Decades of Excellence
Remsons: 5 Decades of Excellence Preferred supplier of high precision components to two, three, and four-wheeler vehicles, commercial vehicles, and off-highway vehicles. o Pioneers in the industry, India’s first Control Cables manufacturers 20% o >1,50,00,000 cables fitted across all segments ROE o
Slide 6: Management Commentary on Q3 & 9M FY24 Results
Management Commentary on Q3 & 9M FY24 Results I'm excited to share another exceptional quarter, exceeding expectations with 9% year- over-year revenue growth, reaching Rs 822Mn for 3QFY24. We achieved a remarkable 32% growth in EBITDA to Rs 84Mn, expanding the margin by an impressive 200bps to 10% i
Slide 7: Established Base; High Growth Trajectory
Established Base; High Growth Trajectory Net Revenue (Rs Mn) Remsons 1.0 o Established a strong cable business 3X jump in Revenue over the next three years o Built Loyal Customer Base with OEM’s ~9000-10000 o Diversified Portfolio preferred supplier across category of vehicles. o Survived the indust
Slide 8: Global and Diversified Business Model
Global and Diversified Business Model Revenue Split by Geography Revenue Split by Delivery Rest of World Aftermarket 24% 15% Sales Sales FY23 FY23 India OEM 76% 85% • A global business model thriving on customer-centricity, digital prowess, and strategic efficiency, cultivating key relationships and
Slide 9: Cable Chronicles: Remsons Odyssey in the Auto Value Chain
Cable Chronicles: Remsons Odyssey in the Auto Value Chain 2 Wheeler Commercial Wheeler • Brake- Front, Rear, Combi • Parking Brake Cable • Accelerator Cable • Bonnet Release Cables • Clutch Cable • Gear Shifter with Cables • Speedometer Cable • Cabin Storage Cables • Clutch / PKB Cable • Bottle Jack
Slide 10: Engineering driven, vertically integrated OEM
Engineering driven, vertically integrated OEM In-house manufacturing, validation and design Concept How we do it? Design How we do it? Product Support o Market LEAN Model Approach o Design Integration Kaizen Activities o Failure Mode & Effect intelligence/application o Resource o Eliminating Waste A
Slide 11: Strong Balance Sheet to support future growth
Strong Balance Sheet to support future growth ROCE & ROE Debt to Equity (x) 2.10 1.91 24% 21% 22% 20% 20% 1.46 ROCE 16% 16% 16% 15% 1.19 ROE 1.11 7% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Dividends Paid 1.5 1.5 1.5 • FY21 Debt Surge attributed to Magal Cables, UK Acquisition. 1 1 • Capita
Slide 12: Maintaining Resilience: Strong Position Amid Market Headwinds
Maintaining Resilience: Strong Position Amid Market Headwinds The Automotive Industry has faced several challenges in the recent years…. Covid Supply change Pandemic Labor shortages disruptions Semiconductor Logistic Issues Policy Changes shortages 11
Slide 13: Remsons approach to staying resilient
Remsons approach to staying resilient Growth in Sales of Remsons vs Growth of Vehicles Growth Drivers produced in India (%) 42% 27% Our presence across Expansion into New all sectors of the auto Technology Products industry 13% 9% 7% 2% Foray into HCV FY20 FY21 FY22 FY23 Segment with Organic and Exp
Slide 14: 3QFY24 Consolidated Key Result Highlights
3QFY24 Consolidated Key Result Highlights Revenue (Rs Mn) EBITDA (Rs Mn) 32% YoY 84 9% 822 YoY 64 • 9% revenue growth driven by 756 higher production volumes reflects our response to growing demand. 3QFY23 3QFY24 3QFY23 3QFY24 • EBITDA margins improved by 200bps to 10% led by improvement in U.K oper
Slide 15: Revenue Doubles in Four Years: A Rapid Growth Milestone
Revenue Doubles in Four Years: A Rapid Growth Milestone Net Revenue (Rs Mn) EBITDA (Rs Mn) & EBITDA Margin % CAGR CAGR 8% 259 20% 31% 7% 7% 202 6% 3128 2865 2262 4% 114 102 1494 1592 88 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 PAT (Rs Mn) & PAT Margin % Net worth (Rs Mn) 423 CAGR 84 25% 345
Slide 16: Consolidated Q3 FY24 Financial Performance
Consolidated Q3 FY24 Financial Performance Particulars (Rs in Mn) Q3FY24 Q3FY23 YoY% 9M FY24 9M FY23 YoY% Revenue from Operations 822.2 755.9 9% 2,313.0 2,363.6 -2% EBITDA 84.0 63.6 32% 231.8 181.9 27% EBITDA Margin % 10% 8% 200bps 10% 8% 200bps Depreciation 26.9 22.7 19% 80.7 64.2 26% Profit Before
Slide 17: Standalone Q3 FY24 Financial Performance
Standalone Q3 FY24 Financial Performance Particulars (Rs in Mn) Q3FY24 Q3FY23 YoY% 9M FY24 9M FY23 YoY% Revenue from Operations 703.3 657.6 7% 1,925.0 2,008.2 -4% EBITDA 73.6 56.9 29% 183.5 151.9 21% EBITDA Margin % 10% 9% 100bps 10% 8% 200 bps Depreciation 18.8 16.3 15% 56.9 45.3 26% Profit Before
Slide 18: Consolidated Historical Income Statement
Consolidated Historical Income Statement FYE March (Rs Mn) FY21 FY22 FY23 Revenue from Operations 2,261.5 2,864.5 3,128.0 EBITDA 101.6 202.3 259.4 EBITDA Margin 4% 7% 8% Depreciation 44.1 79.3 91.4 EBIT 57.5 122.9 168.0 EBIT Margin 3% 4% 5% Finance Cost 35.4 64.3 63.4 Other Income 24.1 7.4 16.0 Exce
Slide 19: Consolidated Historical Balance Sheet
Consolidated Historical Balance Sheet FYE March (Rs Mn) FY21 FY22 FY23 1HFY24 FYE March (Rs Mn) FY21 FY22 FY23 1HFY24 Assets Equity and Liabilities Non‐Current Assets Shareholders funds Fixed Assets 317.1 344.0 407.4 404.1 Share Capital 57.1 57.1 57.1 57.1 Right to use assets 88.1 68.7 48.9 86.9 Res
Slide 20: Strong Global Footprint
Strong Global Footprint REMSONS INDUSTRIES LIMITED. United Kingdom - A Application Support & Marketing Office France i 4 Mexico USA Germany Austria Sweden Italy Spain Turkey Singapore Nepal Sri Lanka Bangladesh Brazil Kenya Bhutan Application Support Office: @ Headquarters - India © Italy @ Manufact
Slide 21: Expanding Manufacturing Footprint
Expanding Manufacturing Footprint • Acquired Magal Cables, UK in 2020 which was our existing client. • The unit specializes in the production of Control Cables, Pedal Boxes, Winches, Jacks and Gear Shifters. • Got an access to cater to marquee global clients. • Secured at a cost-effective valuation,
Slide 22: Largely EV Agnostic Product Portfolio
Largely EV Agnostic Product Portfolio Push Pull Cables Handle Assembly Auto Adjust Clutch Cable Jacks Parking Break Assembly Winch Assembly Gear Shift System Pedal Box 21
Slide 23: Shift in Industry Trends
Shift in Industry Trends Rising population of Electrification young and HNI’s Government Policies Premiumisation and feature laden vehicles Green Mobility 22
Slide 24: We are observing and enhancing our Product Portfolio
We are observing and enhancing our Product Portfolio From India’s leading cable car manufacturer, We aim to Cash Flow diversify further Management JV’s & Collaborations Discipline & Efficiency Global Partnerships Tyre Mobility Sensors Asset Light Infotainment In-house Execution 23
Slide 25: Our Foray Into Tyre Mobility Kit
Our Foray Into Tyre Mobility Kit • Entered into exclusive JV with Aircom Group, Poland. • The kit effectively replaces the need of a regular spare wheel. • A further journey could be continued for 1000 kilometers with a maximum speed of 80km/h (50mph). • High growth opportunity directly co related t
Slide 26: Sectoral Tailwinds to Support Future Growth
Sectoral Tailwinds to Support Future Growth Total vehicles produced in India o India is projected to be one of the largest global 309,14,874 automotive and mobility hub. 263,53,293 259,31,867 o In India, only 29 out of 1000 people own a car, compared 230,40,66 to 226 in China and 581 in the US, unde
Slide 27: Cables
Cables Our diverse cable portfolio offers an eco-friendly alternative for Diverse Cable Portfolio: elevated passenger travel. Harnessing innovative technology, these cables pave the way for sustainable and efficient means Parking Break Cable ,Clutch Cable, Hood Release Cable of commuting above groun
Slide 28: Push Pull Cables
Push Pull Cables In-house validation ensures the excellence of our push-pull • Integrated Design & Manufacture Capability cables. We specialize in crafting these cables, offering swift solutions with quick-fix end fittings. • Design of Push Pull Cables ranging from Conduit Dia 3 MM To Dia 18 MM • He
Slide 29: Brake Mechanism
Brake Mechanism Parking Brake Mechanism Combi Brake Mechanism This product is designed to meet customers This product activates both the front and rear brakes mechanical needs to ensure good braking simultaneously. Besides, when the rear brake is performance and aesthetic integration with car’s pres
Slide 30: Gear Shift Systems
Gear Shift Systems We offer comprehensive shifter systems, encompassing • Complete Assembly with Cables. style elements (bezel, boot, knobs) to gearbox • From The Style (bezel, boot, and knobs) to the lever, components (levers, cables, and brackets), tailored to cables and brackets located in the Ge
Slide 31: Winches
Winches We develop and supply innovative winches that help to solve the problem of lifting the under-floor spare wheel. It requires minimal effort to stow or lift heavy wheels with these winches. • One of the first companies to solve the problem of Under- Floor Spare Wheel Lift and Storage. • As a p
Slide 32: Jack Kit
Jack Kit A comprehensive product which is available in traditional steel and aluminum with lightweight plastic components. • Lifting components for many Non-Automotive Applications. • Wide Ranging Puncture Management Equipment, including Jacks, Wrenches, Tool Kits And Stowage Systems. • Available in
Slide 33: Pedal Box Assembly
Pedal Box Assembly We design, develop and supply accelerator, brake and clutch pedals, either as individual components or as combined assemblies. This product proves to be very efficient and easy to use. • Capability to design, develop & supply Accelerator Brake and Clutch Pedals, either as individu
Slide 34: Our Milestone And Way Forward
Our Milestone And Way Forward o Remsons Ltd originated as a o Pioneering control o Indigenously o Indigenously trading company cables and pressure die- manufactured gear shift manufactured dash cast cable ends in India, with cables in India mounted park brake and we led the way. push pull cables 196
Slide 35: Management Profile
Management Profile Krishna Kejriwal Management Chairman &MD Krishna Kejriwal Rahul Kejriwal Amit Srivastava Chairman &MD Whole-Time Director CEO Sales • Science graduate, from University of • He has ~20 years of experience in the field of • A seasoned professional has~30 years' experience Bangalore
Slide 36: Leading Partnerships Fuelling Our Growth
Leading Partnerships Fuelling Our Growth 35
Slide 37: Remsons Quality Certifications
Remsons Quality Certifications 36
Slide 38: Recognitions And Honors: Celebrating Our Wins
Recognitions And Honors: Celebrating Our Wins 37
Slide 39: Sustainability
Sustainability SUSTAINABILITY 2021 7 sive ecovadis [Sustaissenty Rating © Ecovadis Score Card Shows about company's performance in four themes Environment Ethics = Labor & Human Rights Sustainable Procurement GLOBAL COMPACT © The Ten Principles of the United Nations —_ Global Compact are derived fro
Slide 40: Corporate Social Responsibilities - Activities
Corporate Social Responsibilities - Activities • Dignity Project –Distributing Menstrual kits to 600 Girls in School • Meri Pathshala – Revamping Projects in Rural Schools • Clean Water Project – Leprosy Ashram • Mid-Day Meal Sponsor – 400 Students per year • Computer Donations in Schools • Health C
Slide 41: Great Place To Work Certified
Great Place To Work Certified Ranking: Top 50 Among India’s Ranking: Top 100 India’s Best Best Workplace in India’s Best Mid-Size Workplaces in Auto and Auto Workplaces. Manufacturing 2024 Components. 40
Slide 42: For further information, please get in touch
For further information, please get in touch with Saloni Ajmera Tel: +91-99305 77801 Email: saloni@goindiaadvisors.com Remsons Industries Limited Tel: +91-22 3501 6400 Sheetal Khanduja Email: corporate@remsons.com Tel: +91-97693 64166 Email: sheetal@goindiaadvisors.com www.remsons.com www.goindiaadv