Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Q3 FY2019 Earnings Presentation
17 slides from Varroc Engineering's earnings presentation, Feb 8, 2019
Slide 1: Varroc Engineering Limited – Exchange Filing Cover Letter
Varroc Engineering limited Regd. & Corp. Office L-4, MIDC, Industrial Area Waluj, Aurangabad 431 136 I Tel +91 240 6653600 Fax +91 240 2564540 email: varroc.info@varroc.com www.varrocgroup.com Vdrroc Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/I NT/2018-19/ 49 February 08, 2019 To, (1) T
Slide 2: Q3 & 9M FY19 Results Presentation
Q3 & 9M FY19 Results Presentation
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Industry Trends in Q3 FY19
Industry Trends in Q3 FY19 Global Passenger Cars Market Production -4.6% +2.1% -15.2% • Global Passenger Vehicle 41,09,460 41,95,440 84,28,366 Q3 FY2018 production declined in Q3 FY19 56,91,506 54,30,288 71,50,939 Q3 FY2019 • Decline in Europe and China due to the impact of ongoing political uncerta
Slide 5: Business Highlights: Q3 FY19
Business Highlights : Q3 FY19 • Revenue from Operations for Q3 FY19 up by 18.3% YoY# • EBITDA increased by 40% YoY* • India Business: strong performance with 22.6% Revenue growth and 150 bps EBITDA margin improvement • VLS: Revenue growth of 8% in Euro terms in spite of challenging market conditions
Slide 6: Varroc Group: Summary Key Financials Q3 & 9M FY19
Varroc Group: Summary Key Financials Q3 & 9M FY19 (INR Mn) Growth Growth Particulars Q3 FY 19 Q3 FY18 (Y-o-Y) 9M FY 19 9M FY18 (Y-o-Y) Revenue from Operations - Reported 29,550 25,405 16.3% 88,831 73,939 20.1% Revenue from operations : like-for-like 29,276 24,745 18.3% 88,029 70,898 24.2% Other inco
Slide 7: Varroc Group: Business Wise Performance Q3 FY19
Varroc Group: Business Wise Performance Q3 FY19 (INR Mn) Q3 FY19 Q3 FY18 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA Like-for-like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 10,567 10,567 1,257 1,257 11.9% 8,689 8,617 899 899 10.4% 2
Slide 8: India Business: Financial Performance
India Business : Financial Performance Revenue India Revenue Split by Customer(1) Q3 FY 2019, % (INR Mn) +23% 10,567 Bajaj 8,689 8,617 26.7% Honda Royal Enfield 1.6% 52.9% 4.6% Yamaha Q3 FY2018 Q3 FY2018 Q3 FY2019 Reported Adjusted Reported 6.1% Mahindra & Mahindra 8.2% Strong growth across division
Slide 9: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance 50% China Joint Venture: Q3 FY 18 Revenue: 1651 Mn INR Revenue (1) Q3 FY 19 Revenue: 1029 Mn INR VLS Revenue Split by Customer(2) (INR Mn) Q3 FY 2019, % +16% Customer A 17.4% 18.7% 17,875 17,601 Customer B 15,767 15,180 Customer C 12.8% 20.4% Cus
Slide 10: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) +31% 20 18 0.6 1.8 2.7 17.0 0.1 16.5 - 16 14.3 1.1 14 1.0 12.6 2.7 12 1.8 10 8 Q3 FY2018 Discontinued Q3 FY2018: Revenue RM impact Overheads Other income Q3 FY2019: Start-up Launch Ind AS 115 Q3 FY2019: Interior Like-for-Like impact
Slide 11: Varroc Group: Business Wise Performance 9M FY19
Varroc Group: Business Wise Performance 9M FY19 (INR Mn) 9M FY19 9M FY18 EBITDA # Revenue Like-for- Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 32,495 32,495 3,744 3,744 11.5% 26,724 25,770 2,769 2,769
Slide 12: R & D / Business Updates
R & D / Business Updates Global Lighting Business • CES Show Las Vegas: VLS showcased various technologies in the fields of personalization, connectivity/communication, innovative styling, and autonomous vehicles at the CES show. Focused technologies and products showcased : • Adaptive Driving Beam
Slide 13: R & D / Business Updates
R & D / Business Updates Polymer • Increased traction in the 4W segment with significant business wins from leading OEMs • Our differentiated and unique molding technology for light weighting and paint elimination has won business with a leading 4W player and has generated huge interest with 2W play
Slide 14: Facility Readiness – Brazil
Facility Readiness – Brazil Decorating / Cleaning Molding Assembly line Assembly line 12
Slide 15: Construction Status – Morocco, Phase II
Construction Status – Morocco, Phase II Phase II (Marked with orange outline) Morocco Phase II – Construction activity progress Metallic Structure – Phase II Metallic Structure – Phase II 13
Slide 16: Business Outlook
Business Outlook India Business • Indian 2W/3W market : After a soft festival season, start to Q4 FY19 weaker than expected VLS Business • Europe: Impact of Brexit uncertainty and new diesel regulations expected to continue • Czech: operational efficiencies at Czech plants started to show improvemen
Slide 17: Thank You
Thank You