Sharda Motor Industries Ltd. · NSE:SHARDAMOTR
Sharda Motor Industries — Q3 FY2023 Earnings Presentation
37 slides from Sharda Motor Industries's earnings presentation, Feb 1, 2023
Slide 1: Exchange submission cover letter
SMIL: BSE/NSE: 22-23/0102/2 1st February, 2023 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, 5th Floor Pheroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street, Mumbai - 400 001 Bandra - Kurla Complex, Mumbai - 400 051 (SCRIP CODE - 535602)
Slide 2: Sharda Motor Industries Investor Presentation January 2023
San SHARDA MOTOR INDUSTRIES LIMITED Investor Presentation January 2023 ying Let’s do great things together! www.shardamotor.com
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), has been prepared by Sharda Motor Industries Limited (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 form the
Slide 4: 3
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Slide 5: Leading Auto-ancillary Company with Global Aspirations
Foundation Founded in 1986, Sharda Motor has scaled to numerous highs in the automotive industry. Leading Auto-ancillary Company with Global Aspirations ▪ Offers highly engineered products and services commencing from emission to World class Manufacturing Infrastructure suspension systems, roof syst
Slide 6: Company milestones and history
1987 IPO and listing on Delhi Stock Exchange 5
Slide 7: Presence in Pan India and Joint Venture Abroad
Presence in Pan India Delhi Haridwar Sanand Pune Chennai Sanand Exhaust System Exhaust System Exhaust System Suspension Tube Mill / R&D Namyang Assembly Nashik Nashik Haridwar Delhi Pune Exhaust System Exhaust System Roof System Pune Stamping of Parts & Corporate Office Suspension Assembly Fuel Tank
Slide 8: R&D unit for exhaust and emission systems
Established R&D unit for exhaust system in 2002 and emission system 2010 at Mahindra World City, Chennai A state of art facility to Design, Simulate, Testing and Prototype of exhaust system for PVs & CVs as well as non-automotive applications R&D Centre has the full capabilities to cater to various
Slide 9: Development timing and achievements
Passenger Vehicle Full Range of Full Range of Medium & Heavy Full Range of ranging Stationery Engine Off-Road Vehicle Commercial Vehicle Tractors Engines 0.6L – 3L ranging 2.5L – 8L Timing: TIMING COST PROCESS PROCESS TESTING PTOTOTYPES Achievement of Achievement of STABILITY Integration of new All
Slide 10: Design and development responsibilities
Concept Acoustic Structural Responsibilities CFD Analysis Proto Build Industrialization Testing SOP Design Simulation Analysis Passenger Vehicle Engine Small Commercial Vehicle Engine Light Commercial Vehicle Engine Medium Commercial Vehicle Engine Heavy Commercial Vehicle 3 Wheeler Passenger / Load
Slide 11: Leading to increase in content per vehicle
Leading to increase in content per Vehicle Legislation Impact CEV IV & V and TREM IV & V emission standards • With applicability of new emission norms, the Off Off-Road are for non road diesel engines used in Highway Addressable Market will become construction equipment and agricultural tractors equ
Slide 12: Operational efficiencies and technology as entry barrier
• Sustainable growth in operating profits vs Cyclical auto industry Operational efficiencies • Backward integration by producing in-house bought out parts • Strategic technology partnership giving access to world class technology in emission Technology – Key entry barrier control system act as a key
Slide 13: Structural advantage, value accretion, complete control
Leveraging of existing Structural Advantage Value Accretion Complete Control setup for new applications Completely backward With manufacturing Over process and supply Established expertise in integrated with two infrastructure already in chain efficiencies, leading to manufacturing of tube mills and
Slide 14: Electric Vehicle Drivers: Getting Future Ready
Getting Future Ready Electric vehicle market is estimated to be a Rs. 50,000 crore opportunity in India by 2025. Electric Vehicle Drivers India could be a leader in shared mobility by 2030, providing opportunities for electric vehicles De-Risking Investment in Emerging Technologies EV market in Indi
Slide 15: Joint ventures and technical collaboration
Joint Venture Technical Joint Venture Exhaust Systems Collaboration Lithium Battery Manufacturing Eberspaecher* and Sharda Motor Entered a technical Kinetic Green^ and Sharda Industries Ltd. entered into a JV to partnership with Bestop Inc. Motor Industries Ltd. entered manufacture commercial vehicl
Slide 16: Emission control: from idea to manufacturing
Catering to Serving PV, CV Annual Indian Market Domestic & and Off-road Production of Share of ~30% International segment. ~1 million units customers 5 plants strategically located Catering to most of the 3 stamping plants managing across India and present in OEM’s in PV segment all critical stampin
Slide 17: Suspension and roof systems expertise
Annual Production of ~1.8 Indian Market Share of ~10% 2 manufacturing units lakh units Development, Project planning & Testing & Concept, Design and Digitizing Validation Expertise in this arena with its world-class manufacturing processes Arm Lower Control Front Suspension Upper Arm Assy Assy. Lowe
Slide 18: Board of Directors
Mr. Kishan Parikh Chairman, Independent Director Holds Bachelor’s Degree in commerce and has 30+ years of experience in area of Business Management and managing Financial activities Mr. Ashok Kumar Bhattacharya Independent Director He holds Bachelor’s degree from IIT, Kharagpur and PhD. from Cambrid
Slide 19: Management team
Mr. Ajay Relan Managing Director Responsible for overall manufacturing operations, Plant, Research & Development, Product Development and complete supervision of the Company Mr. Deepak Bhaskar Chief People Officer MBA in HR from SIMS, Pune & Executive MBA in Business Management from MDI, Gurgaon. Ha
Slide 20: Awards and recognition
21awqzs 21awqzs 21awqzs Silver award in Business Silver award in Business Mahindra Supplier Excellence Special Appreciation BS6 Mahindra & Mahindra Annual Alignment Category by Ashok Alignment Category by Ashok Award for Business Partner of the by Mahindra & Mahindra (2021) Commodity Award (2014) Le
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Q3 FY23 Revenue, EBITDA, PAT
INR Crores REVENUE EBITDA PAT* +19% +3% +19% 698 686 76 55 579 64 62 46 39 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3FY23 * Including Profit/(loss) in JV and Associates 21 21
Slide 23: 9M FY23 Revenue, EBITDA, PAT
INR Crores REVENUE EBITDA PAT* +23% +23% +39% 146 2,012 201 1,637 105 164 9M FY22 9M FY23 9M FY22 9M FY23 9M FY22 9M FY23 * Including Profit/(loss) in JV and Associates 22 22
Slide 24: Consolidated income statement Q3 FY23
INR Crores Particulars (Rs. Crores) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 686.0 578.6 19% 698.0 -2% 2,011.8 1,637.5 23% Cost of Goods Sold 556.0 464.5 556.8 1,619.3 1,312.6 Gross Profit 130.0 114.1 14% 141.1 -8% 392.5 324.8 21% Gross Profit Margin 18.9% 19.7% 20.2% 1
Slide 25: Standalone income statement Q3 FY23
INR Crores Particulars (Rs. Crores) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 686.0 578.6 19% 698.0 -2% 2,011.8 1637.5 23% Cost of Goods Sold 556.0 464.5 556.8 1,619.3 1312.6 Gross Profit 130.0 114.1 14% 141.1 -8% 392.5 324.8 21% Gross Profit Margin 18.95% 19.72% 20.22%
Slide 26: Consolidated balance sheet Sep-22
INR Crores Equity & Liabilities Sep-22 Mar-22 Assets Sep-22 Mar-22 Total Equity 648.9 572.9 Non - Current Assets 241.4 195.7 Property Plant & Equipments 171.4 145.5 Share Capital 5.9 5.9 Capital Work In Progress 0.3 0.1 Reserves & Surplus 642.9 566.9 Right of Use Asset 23.2 10.2 Intangible assets 0.
Slide 27: Standalone balance sheet Sep-22
INR Crores Equity & Liabilities Sep-22 Mar-22 Assets Sep-22 Mar-22 Non - Current Assets 267.1 220.6 Total Equity 674.7 599.8 Property Plant & Equipments 171.4 145.5 Share Capital 5.9 5.9 Capital Work In Progress 0.3 0.1 Right of Use Asset 23.2 10.2 Reserves & Surplus 668.7 593.8 Intangible assets 0.
Slide 28: Cash flow statement H1 FY23
INR Crores Standalone Consolidated Particulars H1 FY23 H1 FY22 H1 FY23 H1 FY22 Net Profit Before Tax 132.6 97.4 133.7 91.0 Adjustments for: Non -Cash Items / Other Investment or Financial Items 7.4 8.2 6.3 14.7 Operating profit before working capital changes 140.0 105.6 140.0 105.6 Changes in workin
Slide 29: Revenue, EBITDA, PAT FY18-FY22
INR Crores REVENUE EBITDA PAT^ 2255 228 149 +167% 1737 129 128 81 116 68 67 938 96 845 863 52 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 * Consolidated Excluding Seating Business ^ Including Profit/(loss) in JV and Associates 28 28
Slide 30: Consolidated income statement FY22
INR Crores Particulars FY22 FY21 YoY Revenue from Operations 2,255.3 1,736.5 30% Cost of Goods Sold 1,806.1 1,419.5 Gross Profit 449.2 317.0 42% Gross Profit Margin 19.92% 18.26% Employee Cost 92.4 81.6 Other Expenses 129.1 106.2 EBITDA 227.8 129.2 76% EBITDA Margin 10.10% 7.44% Other Income 29.5 21
Slide 31: Consolidated balance sheet Mar-22
INR Crores Equity & Liabilities Mar-22 Mar-21 Assets Mar-22 Mar-21 Total Equity 572.9 430.9 Non - Current Assets 195.7 218.1 Property Plant & Equipments 145.5 168.0 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.1 Reserves & Surplus 566.9 424.9 Right of Use Asset 10.2 10.5 Intangible assets 0.
Slide 32: Standalone income statement FY22
INR Crores Particulars (Rs. Crores) FY22 FY21 YoY Revenue from Operations 2,255.3 1,736.5 30% Cost of Goods Sold 1,806.1 1,419.5 Gross Profit 449.2 317.0 42% Gross Profit Margin 19.92% 18.26% 166 Employee Cost 92.4 81.6 Other Expenses 129.1 106.2 EBITDA 227.8 129.2 76% EBITDA Margin 10.10% 7.44% 266
Slide 33: Standalone balance sheet Mar-22
INR Crores Equity & Liabilities Mar-22 Mar-21 Assets Mar-22 Mar-21 Non - Current Assets 220.6 232.7 Total Equity 599.8 445.4 Property Plant & Equipments 145.5 168.0 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.1 Reserves & Surplus 593.8 439.5 Right of Use Asset 10.2 10.5 Intangible assets 0.
Slide 34: Cash flow statement FY22
INR Crores Standalone as on Consolidated Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Net Profit Before Tax 215.2 105.3 215.2 105.3 Adjustments for: Non -Cash Items / Other Investment or Financial Items 20.2 29.6 20.2 29.6 Operating profit before working capital changes 235.4 134.8 235.4 134.
Slide 35: Adjusted ROCE
INR Crores Particulars (Rs. Crores) H1 FY23^ FY22 FY21 FY20 FY19 FY18 Interest Income on Cash (A) 15.86 13.24 10.00 5.50 4.80 3.90 EBIT (B) 272.40 216.67 106.70 79.40 113.25 97.18 Equity Capital (C) 648.89 572.89 430.90 364.60 409.36 317.99 Debt Capital (D) 0.00 0.00 0.00 0.00 0.00 0.00 Cash & Equiv
Slide 36: CSR initiatives
Tree Planting Stop Plastic 1 Pollution Blood Donation Drive Sharda Motor believes in the Installed plastic bottle shredding Organized blood donation camps preservation of the environment. Our machine at Jamshedpur district of to help hospitals and blood banks team of volunteers contributed their Jha
Slide 37: Company and Investor Relations contacts
Company Investor Relations Advisors CIN: L74899DL 1986PLC023202 CIN: U74140MH2010PTC204285 Mr. Puru Aggarwal Mr. Jigar Kavaiya / Mr. Pratik Shah President and Group CFO COO-IR Practice / Business Analysis 011-47334100 +91 9920602034 / +91 9870030585 puru.aggarwal@shardamotor.com jigar.kavaiya@sgapl.
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