Ifb Industries Ltd · NSE:IFBIND
Ifb Industries — Q3 FY24 Earnings Presentation
53 slides from Ifb Industries's earnings presentation, Jan 27, 2024
Slide 1: Investors Presentation and Conference call cover letter
I lilIl I}.B Industries Limited CorPorate Office I Plot No.-lND-5, Sector-1 East Calcutta Township,Kolkata'700 107 Telephone : {91 } (33) 3584947519524 lgtllftnuary,2024 Fax i (91) (33) 39849676 Web : www.ifbindustries.com The Manager Department of Corporate Services Bombay Stock Exchange Ltd, Phiro
Slide 2: Conference call invitation 3QFY24 results
NIRMALBANG .r r ., l.; ! i fj:1 i|: i 1i l::,: rrij n ':i i-f, l ir i,-':i Institutional Equities NIRMAL BANG INSTITUTIONAL EQUITIES Cordially invites you to a conference call to discuss the 3QFY24 results of IFB lndustries Ltd. ITll On Tuesday, 30 January 2024 at 5:00 pm IST IFB lndustries manageme
Slide 3: Financial Report Quarter Ended 31st December 2023
IFB lndustries Limited f Flnancial Report Cuarter [rrded 3 ]sl December, 2023 o1
Slide 4: Trend For The Quarter
Trend For The Quafter Tota'|, Revanse ({ in Crora) Operating PTofiUEBITDA ({ in Crore) tl4 I 140 930 938 981 70 699 42 31 33 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 1 9-20 FY20-21 FY21-22 FY22-23 FY23-24 l03 +03 Free €ashflowg Months Ending Decemb-er Kin€ro.r4 289 182 71 -39 -96 FY 19-20 FY
Slide 5: Parameters of Q3 FY 23-24
Parameters of Q3 FY 23-24 (t in Crore) Total Revenue EBITDA il,1rto {70 (r) 160/o {+} 1 130/o Net Profit Margln 2.1ala (+l27Jbps Recelvables Accounts Fayable '7434 t944 (+) 200/o (+l 4a/a RONW" 12.2o/o {+) 620 bps Crowth/de-growth has been calculated in comparison with the corresponding quarter/peri
Slide 6: Financial Summary of IFB Industries Ltd - Q3 FY24
Financial Report-Quarter Ended 3l st December,2a23 Financial Summary of IFB Industries Ltd-Q3 FY 24 QS (t in Crore) Particulars Q3 {FY 23-24) Q3 {FY 22-23) YTD (FY 23-24)' YTD (FY 22-23l, Revenue 1,140.34 980.79 3,277.31 3,131.98 EBITDA 70.36 33.O7 185.87 145.49 EBITDA o/o on Revenue 6.17 3.37 5.61
Slide 7: Borrowing Position
Bonowlng Position Total bon owing was tl 32.14 Crore as on Quarter end date including term loan amount of 773.22 Crore. Break-up of bonowings is as follows: (T in Crore) l:.,. ECB* 34.8'6 Standard Chartered AC Project Five Years Rupee Term Loan 22.7s lClCl Bank Stamping Division Seven Years Rupee Te
Slide 8: Available Fund Balances
Financial Report-Quarter Ended 3l st December, 2a23 Available Fund Balances Qr Against the aforesaid borrowing, as on 31st December '23, our Cash and Bank Balances (including lnvestments in Mutual Funds) were at t282.84 Crore. Hence the Company's net cash balance was positive after considering its o
Slide 9: Home Appliances Division
Financial Report-Quarter Ended 3'l st December,2O23 Home Appliances Division QS The industry continued to be flat/in de-growth in Q3. However, we believe that the overall demand scenario in the medium term will remain stable. For the Company, our focus continues to be on expanding our presence in th
Slide 10: IFB Points and Modular Kitchen
Financial Report-Quarter Ended 3l st December, 2023 The new design for IFB Points has been expanded to -160 stores. We are ffi5 running this program for changeover of all existing stores to the new design; and this will be completed by the end of this fiscal year. The IFB Point count is at 485 store
Slide 11: Engineering Division
Financial Report-Quarter Ended 3l st December,2a23 Engineering Division QS The business environment in Q3 FY'23-'24 witnessed an improvement in selected D, segments. \ lt) I trt . As far as 4W demand was concerned, all OEM posted higher numbers compared to Q3 of '22-'23. The 4W is expected to contin
Slide 12: Home Appliances Division
Financial Report*Quarter Ended 31 st December, 2O23 : I Home Appiliances Dlvision 't0
Slide 13: Range Of Products (Home Appliances Division)
Financial Report-Quarter Ended 3l st December,2A23 Range Of Products (Home Appliances Division) QS f,f,l The Division's range of products covers both domestic and industrial application categories. The updates at the end of 3rd Quarter for each of the product categories are given below Front Loading
Slide 14: Washer Dryer Refreshers
Financial Report-Quarter Ended 3l st December, 2A23 Washer Dryer Refreshers QS This product is lndia's first 3-in-l product offering which has washing, drying and refreshing features, all in one. The product has been placed in -2,000 counters and is selling at an average +l of -1,500 units per month
Slide 15: Top Load Washers
Financial Report-Quarter Ended 31 st December, 2O23 Top Load Washers QS Our models with ln-built Heaters and Steam Enabled washing programs continue to do well where they have been placed in the market. There is an increasing demand for models of higher capacities, which has been a consistent trend
Slide 16: Industrial Segments - Laundry and Dishwashing Equipment
!i { Financial Report-Quarter Ended 3l st December, 2O23 t,') { ,1 tl .Y lndustrial Segments-Laundry and Dishwashing Equipment QS \\ I I I il l'r I I I I IFB has a comprehensive solution for all aspects of a commercial laundry setup. Our teams understand customer requirements in terms of layout prep
Slide 17: Microwave Ovens
d*t H Financial Report-Quarter Ended 3l st December,2O23 Ld*-# Microwave Ovens l' IFB continues to be among the top three dominant players in this category and for the third Quarter for FY '23, closely touching the No. 2 position. We have bridged the required model ? gaps in the Solo category, which
Slide 18: Dishwashers
*F tfd"taH#* Financial Report-Quarter Ended 3l st December,2023 q-* r ! f L'lJV I -tr't- F' tud# d III Hi --!trl I I Dishwashers The domestic Dishwasher segment has seen a reduction in demand from the previous Quarter. ln fact for the third Quarter of FY '23-'24. the market has established to an ext
Slide 19: Air Conditioners
Financial Report-Quarter Ended 3'l st December,2023 Air Conditioners QS Our range for this season is rolling out and the ranges will be differentiated and positioned for the volume for the season ahead. As per new guidelines {official gazette not yet published), the current 5 Star model would become
Slide 20: Product-wise spread in Home Appliances Division
Financial Report-Quarter Ended 3'l st December,2O23 QTR Product-wise spread in Home Appliances Division Q: 3.Oolo 17.1o/o ACs l.8o/o 1O.7o/o I others : Refrigerators ?ls I Dishwashers ffi Front Loaders I lndustrial Products 9.8o/o j Microwaves 2,3olo 2.7olo 45.9o/o f Service I Top Loaders Financial
Slide 21: HAD Quarterly and YTD Results
HAD Quarterly Results-q5 (FY 20.23-241{t in Crore) Revenue EBITDA EBT 763.22 907.16 o 57.00 27.42 I 't5.01 @ -13.43 FY23 FY24 FY 23 FY 24 FY 24 FY 23 HAD YTD ResultsjYTD December'23 (FV 2023-24, Revenue EBITDA EBT c 2494.71 2506J3 137.79 FY23 FY24 o 100.06 FY23 FY24 l@ 17.65 FY 23 50.09 FY 24 lle
Slide 22: Refrigerator Plant in Pune, Ranjangaon (Phase III)
Financial Report-Quarter Ended 3l st December,2O23 Refrigerator Plant in Pune, Ranjangaon (Phase lll) Qr IFB lndustries Limited invested {97 Crore in its associate ffitH '. -t:. a. company, IFB Refrigeration Limited and thereby currently holds 44.44o/a of total equily. The Plant has come up well and
Slide 23: Engineering Division
Financial Report-Quarter Ended 3 1 st Decemb er, 2O23 QS fi ',i ' i.. .t'Ir T$ ,-.ti ,-E #$ 'lI l*$.t1+'' t t fr / '> ,&_ i a.. & !' I {}t $. a./ T e #rn -#f ,'..4 Engineering Division 121
Slide 24: Business Updates
Business Updates o 0 Eusiness targeted improvement Engineering Division grew by 5olo in Q3FY 24 as cornpared in operatlons through cost to Q3 FY 23. reduction and effieiency improv€ment measuresi The domestic auto sector which led to an EBITDA growth rnainly grew in 2-wheeler of l8olo in Q3 FY 24 sv
Slide 25: Key Financial - Revenue Trend - Engineering Division
Key Flnancial-Revenue Trend-Engineering Division Revenue Trend for December Quarter Revenue Trend for YTD December (in t/Crore) (in (/Crore) 54O 567 185 197 417 147 150 295 FY20-21 FY21-22 FY22-23 FY23-24 FY20-21 FY21-22 FY22-23 FY23-24 Revenue: Revenue growth is moderate in terms of quarterly and Y
Slide 26: Revenue Streams for Growth - Near-Term
Revenue Streams for Growth-Near-Term Existi;rg Buslness To de-riskthe brisiness frorn the expected ir,npaet with the advent of EVs the €srnpant's strategies are: 1,. To lnteraat witn ifie eNlsting players in the domestlc EV market. 2. Earlyengagernent wlth players ontering the EV nrarket. 3- EV |{eu
Slide 27: Growth Strategy Long-Term: M&A
Financial Report-Quarter Ended 3'l st December,2O23 QS Growth Strategy Long-Term: M&A The Company is actively seeking M&A opporlunities for the Engineering Division's quantum growth, with a focus on finding a suitable target for takeover. There are no planned greenfield projects at present. The Divi
Slide 28: Segment Wise Sales - Engineering Division
Financial Report-Quarter Ended 3l st Decemb er, 2A23 Segment Wise Sales-Engineering Division Q: Segment-analysis of IFB: Q3 2023-24 'I 0.80o/o .80o/o , 2.5oo/o 41 .1Oo/o 4.4oo/o f 4-wheelers I2-wheelers il Heavy Vehicles il Electricals I Tractors & Others 49.4oo/o I others We are looking at opportun
Slide 29: Steady Improvement in ROCE (Engineering Division)
Financial Report-Quarter Ended 3'l st December,2A23 Steady lmprovement in ROCE* (Engineering Division) Qr 30.7 28.1 -..""" 22.8 20.6 18.7 YTD YTD YTD YTD YTD December 23 March 23 )une24 September 24 December 24 lmprovement in ROCE is mainly due to the following reasons: . Optimisation of working cap
Slide 30: Financial Summary of Engineering Division
Financial Report-Quarter Ended 3'l st December,2a23 Financial Summary of Engineering Division Q: (t in Crore) Particulars Q3 {FY 23-24',) Q3 {FY 22-23], YTD (FY 2s-24) YTD (FY 22-231 Revenue 197.23 18s.39 566.5s 540.37 EBITDA 28,84 24.34 79.95 63.95 'I '1.83 EBITDA o/o on revenue 14.63 13.13 14."t 1
Slide 31: Q3 Vertical-wise Growth
Q3 Vertical-wise Growth (? in Crore) FBD Stamping After Market Total Engineering Crowth YOY 156.16 197.23 20.14 185.39 142.50 o o 23.70 19.17 20.93 @ FY23 FY24 FY23 FY24 FY23 FY 24 FY23 FY24 Crowth YOY 3l o -I :o 25.12 28.84 21.57 24.34 2.98 FY 23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 l2e
Slide 32: Annual Vertical-wise Growth
Annual Vertical-wise Growth (t in Crore) FBD Stamping After Market Total Engineering Crowth YOY I 451.71 566.55 60.28 54p,.37 426.78 o o 57-43 56.13 54.55 @ FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Growth YOY 70.16 79.95 o o o s9.79 65.95 9.03 7;t3 o.76 -2.93 FY23 FY24 FY23 FY24 FY 23 FY 24 FY23 FY24
Slide 33: Engineering Division Quarterly and YTD Results
Engineering Division Quarterly Results-Q3 IFY 2023-'241 (T in Crore) Revenue EBITDA EBT 197.23 185.39 28.84 o o 18.75 24.34 13.51 FY23 FY24 FY23 FY24 FY23 FY24 Engineering Division YTD Results IFY 2O23-241 Revenue EBITDA EBT 54o,.37 556.55 o I o o 79.95 50.37 65.95 30.12 Fv2s Fv24 FY23 FY24 FY23 FY2
Slide 34: Capex spends remain prudent
Financial Report-Quarter Ended 3'l st December,2O23 Capex spends remain prudent QS Lower the ratio denotes efficiency of internal funding through ploughing back of profits 4.52 0.1 2.70 2.16 L94 1.65 o.02 Q2 Q3 Q4 Q1 Q2 Q3 FY',22-',23 FY',22-'23 Fv'72-'23 FY',23-',24 Fy'23-'24 FY'23-',24 Capex to EB
Slide 35: Motor Division
Motor Division Appliance Motor Sales is not reported separately as it is an internal sale to Home Appliance Division. Once the new BLDC motor line starts production, we will be selling to other external companies also. During the Quarter, the Division's revenue did not grow as anticipated due to del
Slide 36: Automotive Motor Division
Financial Report-Quarter Ended 3'l st December,2023 Automotive Motor Division QS (( in Crore) Particulars Q3 (FY 2s-24) Q5 (FY 22-23]. YTD (FY 23-24) YTD (FY 22-23) Revenue 16.57 16.89 48.35 54.41 EBITDA o.41 o.46 0.54 2_71 EBITDA o/o on revenue 2.47 2.72 1.12 4.98 EBT 0.01 -0.01 -o.57 1.52 EBT o/o
Slide 37: Steel Division
Financial Report-Quarter Ended 3'l st December,2a23 Steel Division QS ({ in Crore) Particulars Q3 (FY 23-24t Q5 (FY 22-23l, YTD (FY 23-241 YTD {FY 22-23',) Revenue 38.08 34.69 113.44 109.43 EBITDA 0.30 t.t 9 0.01 2.85 EBITDA o/o on revenue o.79 3.43 0.01 2.60 -3.35 '1.30 EBT -0.96 0.60 EBT o/o on re
Slide 38: GAAL subsidiary results
GAAL (t in Crore) Revenue 10.29 9.39 45.84 33.17 EBITDA 0.87 o.02 4AO 0.68 EBITDA o/o on revenue 8.45 o.21 9.60 i.os EBT o.87 0.02 4.40 0.68 EBT o/o on revenue 8.45 0.21 9.60 2.O5 IFB lndustries Limited, the Holding Company, has one wholly owned subsidiary-Global Automotive and Appliances Pte Ltd (G
Slide 39: TAAL subsidiary results
ffi3--# Financial Report-Quarter Ended 3l st December,2023 Ld TAAL (t in Crore) Particulars Q3 (FY 23-24) Q3 (FY 22-23) YTD (FY 23-24) YTD (FY 22-23l' '13.08 46.99 33.62 Revenue 17.83 1.37 o.62 1 0a 1"42 EBITDA EBITDA o/o ol-l reV€flu€ 7.68 4.14 4.21 4.22 EBT 0.78 o.o7 o.17 -a.29 EBT o/o on revenue
Slide 40: Note on current status after takeover
Financial Report-Quarter Ended 3'l st December,2023 QS ,: * Note on current status after takeover 3B
Slide 41: Note on Acquisition of Ramson
Financial Report-Quarter Ended 3'l st December,2o23 Note on Acquisition of Ramson Qr lndustrial Laundry Manufacturing Business was acquired from Ramson on I8th October 20] 8. Due to the Pandemic our business was severely impacted as hotels, railway and other institutions were all closed in FY'20-'21
Slide 42: Industrial laundry financial highlights
Financial Report-Quarter Ended 31 st Decemb er, 2023 QS Financial highlights are summarised below Particulars UOM FY FY FY FY FY-Q5 FY-WD-Dec 2019-20 2020-21 2021-22 2022-23 2023-24 2023-24 Revenue t/Cr 41.36 30.76 45.86 76.83 27.O2 68.62 EBITDA {/Cr -4.2 -4.O2 -1.03 7.27 4.24 7.37 EBITDA Vo Percent
Slide 43: Note on Stamping Division takeover
Financial Report-Quarter Ended 3l st December,2A23 Note on Stamping Division takeover QS IFB lndustries Ltd acquired the Stamping Division from IFB Automotive Private Ltd in October 201 9 to position its Engineering Division as a one-stop-shop for the Automobile Components Business. Performance Prog
Slide 44: Note on Acquisition of Steel-Trishan Metals
Financial Report-Quarter Ended 3'l st December,2023 .l Note on Acquisition of Steel-Trishan Metals Q5 5'l o/o of equity of Trishan Metals Pvt Ltd (Manufacturer of Cold Rolled Strips) was acquired by IFBIL in July '1 6. The remaining 49o/o was acquired on 31st October '20. Finally, it was amalgamated
Slide 45: Note on Automotive Motor Division takeover
Note on Automotive Motor Division takeover The Motor Division of IFB lndustries acquired the Automotive Motor Division from IFB Automotive Pvt. Ltd. in October 201 9. The rationale for acquiring the Automotive business was to bring in synergy between the two Divisions, which could result in substant
Slide 46: Standalone Income Statement
STANDALONE INCOME STATEMENT (t in Crore) QTR YTD ''l ' ,: ti,, ;:, ..,\,:.: '-1, l, :l ::, .:/t' i:i ,":,t ,',:t.t: Total Sale of Products 1,406,81 1,179.74 3,975,65 3,784.57 Less: Trade Scheme and Discounts 337.95 253.O1 896.90 816,54 Net Sales 1,068;85 926.74 3,078-75 2,958.03 Sale of Services 33.
Slide 47: Standalone Balance Sheet
Key lndlcer n* on STANDALONE BALANCE SHEET (T in Crore) !t Docenrber" 2o2l , ',1 t:t\-r ).'',, ,',11, i;:,i 1'. .,) 1' A55ETS Property, Plant and Equipment" 663.7] 657.31 .l.lir i:. t lr' r'_ lnvestment in Subsidiaries ireso-' 81.60 1. .,1. t. t,1, lnvestment in Equity Shares 2.25 2.25 546.28 638.38
Slide 48: Standalone Key Ratios
STANDALONE KEY RATIOS QTR YTD Key lndlcet as on 3t 2m3 Earnings Per Share (in t) (Not Annualised) 5.85 (0.34) '13.s8 6.12 jj, r j,j : t.jll;, ' ' 'i. Book Value Per Share (in () 175.46 163.04 175.46 163.04 ir,{ri)ltli Cunent Ratio (#) 1.12 1.12 1.12 1.12 Quick Ratio {#) 0.69 o.57 0;59 4.57 EB lTDAff
Slide 49: Standalone Cash Flow Statement
Key lndlces as on STANDALONE CASH FLOW STATEMENT YTD {t in Crore) 3l December,2023 ':: :::'. \ | ':) ,) ,:,tl i:;:l:i,.,...':,r.: CASH FLOWS FROM OPERATING ACTIVITIES i,,: j!,;liir',.,til: 1.,;l: itri !.,ir:l:i ' ..,, -.r,rir;.tr:i: l Profit Before Tax v4.13 t7.15 li,r.r l: !.,.,: .i: l,:1 Non Cash
Slide 50: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT QTR ({ in Crore) Total Sale of Products 1,201.53 Less: Trade Scheme and Discounts 3:5]:9.6 253.O1 Net Sales 110.95,95 944.52 Sale of Services 33;92 26.19 -Othet Ofi;ating nevenues - --- 3:tr2.,6: 24.45 Revenue From Operations 999.15 Total lncome 1,OO3.20 EBITDA 33.74 EB
Slide 51: Consolidated Highlights
CONSOLIDATED HIGH LIGHTS ({ in Crore) Total lncome 1,167.90 1,OO3.20 Earning Before Depreciation, lnterest and Tax 64.8s 33.74 Earning Before lnterest and Tax 33.O5 3.70 Profit Before Tax 26.28 (3.35) Profit After Tax 18.55 {1 . r4} Earnings Per Share ({) (Not Annualised) 4.57 t0.28) Cash and Liquid
Slide 52: Consolidated Balance Sheet
Key lndlces as on CONSOLIDATED BALANCE SHEET (t in Crore) 5l December,2023 '..:,'tt)r. 1,, .,.',.'i't: l;i:,ii,i j.')';': ASSETS ri,,, .t:,,.-. .i I \ t-.. Property, Plant and Eguipment" 688.54 715.69 . ..,', ,, ,,, 't,' ', '. lnvestment in Equity Shares 77.15 96.84 lnventories ss0.36 573.O9 lnvestm
Slide 53: Disclaimer
Disclaimer qs This presentation contains stotements which reJlect the Management's current views and estimotes and may be construed results to difier materially from the forward-laoking in nature. The future involves certain risks and uncertainties that may cause actual current views being expressed