Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Escorts — Q2 FY2020 Earnings Presentation
31 slides from Escorts Kubota's earnings presentation, Nov 4, 2019
Slide 1: Cover letter to stock exchanges on Q2FY20 earnings presentation
c ESCORTS November 4, 2019 BSE Limited National Stock Exchange of India Delhi Stock Exchange Phiroze Jeejeebhoy Limited Limited Towers, Dalal Street, Exchange Plaza, Bandra Kurla DSE House, 3/1, Mumbai - 400 051 Complex, Bandra East, Mumbai - Asaf Ali Road, 400051 New Delhi - 110002 BSE-500495 DSE -
Slide 2: Q2 FY20 Earning Presentation
Q2 FY20 | EARNING PRESENTATION 4th November 2019 BSE: 500495 | NSE: ESCORTS Copyright @ Escorts Ltd. ESCORTS LIMITED 1
Slide 3: Escorts Limited: An Overview
Escorts Limited: An Overview India's leading engineering conglomerates and for over Seven decades it has helped accelerate India’s socio-economic development through its presence across the high growth sectors of • Agri-machinery Escorts Agri Machinery • Construction & Material Handling Equipment (E
Slide 4: Escorts Ltd. Q2 FY20 at a Glance
Escorts Ltd. Q2 FY20 at a Glance Industry Escorts Ltd. Particulars (YoY) Variance Growth Growth Domestic Tractor Volume -10.0% -8.6% 1.4% Export Tractor Volume -16.9% 97.7% 114.6% Total Tractor Volume -10.7% -6.1% 4.6% Construction Served Industry Volume -30.1% -28.8% 1.3% Railway Segment Revenue 19
Slide 5: Q2FY20 Highlights
Q2FY20 Highlights •EAM at 19,750 Volume & Sales • Q2: ₹ 126.7 Cr. EBIDTA • Q2: ₹ 1,323.9 Cr. • Q2 Profit Revenue •YoY down by 6.1% • Margin at 9.6% •QoQ down by 6.2% • YoY down by 5.3% • PAT: ₹ 104.6 Cr. • QoQ down by 7% • YoY margin down by 169 bps • EPS : ₹ 8.75 • QoQ margin down by • YoY up by 1.
Slide 6: Q2FY20 YoY at a Glance
Q2FY 20 YoY at a Glance Escorts Ltd. Particulars* Q2FY20 Q2FY19 Variance Domestic Tractor Market Share 11.2% 11.1% 17 bps Revenue ₹ 1,323.9 Cr. ₹ 1,398.4 Cr. -5.3% Material Cost 67.0% 67.5% -56 BPS Manpower Cost 9.5% 8.1% 138 Bps EBIDTA ₹ 126.7 Cr. ₹ 157.5 Cr. -19.5% EBIDTA Margin 9.6% 11.3% -169 bp
Slide 7: YoY Revenue de-grew by 5.3%; QoQ
YoY Revenue de-grew by 5.3%; QoQ ₹ Cr. Q2 Revenue Key Highlights (YoY) • Tractor Sales down by 6.1% at 19,750 units • Construction Sales down by 29% at 945 units • Railway division sale up by 19.6% ₹ Cr. Q2 Margin Key Highlights • Negatively Impacted by operating leverage and volume drop in both tra
Slide 8: Q2FY20 QoQ at a Glance
Q2FY 20 QoQ at a Glance Escorts Ltd. Particulars* Q2FY20 Q1FY20 Variance Domestic Tractor Market Share 11.2% 10.5% 71 bps Revenue ₹ 1,323.9 Cr. ₹ 1,423.0 Cr. -7.0% Material Cost 67.0% 69.0% -198 bps Manpower Cost 9.5% 8.6% 85 Bps EBIDTA ₹ 126.7 Cr. ₹ 142.4 Cr. -11.0% EBIDTA Margin 9.6% 10.0% -44 bps
Slide 9: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- Rating (₹ Crs.) 600 553 436 480 361 263 50 277 79 120 .0 111.0 Rating 96.0 maintained at 500 100 .0 AA- with Stable 400 290 outlook by ICRA 80.0 206 302 50.0 57.0 300 60.0 200 220 40.0 159 220 263 31.0 28.6 230 18.5 9.7 1
Slide 10: Management Message
Management Message Nikhil Nanda, Chairman and Managing Director “Our new products across business lines, investments in distribution for wider reach & enhanced customer experience with technology upgrades has helped us foray strong in the current industrial pace. Our continuous cost optimization ini
Slide 11: Segment Performance: EAM
Segment Performance : EAM Powering The Dreams Of Farmer 02-11-2019 Copyright @ Escorts Ltd. ESCORTS LIMITED 10
Slide 12: Domestic Tractor Industry Overview
Domestic Tractor Industry Overview In Lakh Quarterly Half Year 1.85 1.91 4.09 1.67 3.59 Q ended Sep'18 Q ended Jun'19 Q ended Sep'19 H Ended Sept'18 H Ended Sept'19 • In Q2FY20 on Y-o-Y domestic Industry down by ~10%. • Industry in Q2FY20 on Y-o-Y basis in North and central region de-grew by 1.8%, w
Slide 13: Q2FY20 Segment Highlights: EAM
Q2FY20 Segment Highlights : EAM • Domestic at • At ₹ 995.6 Cr. Revenue Volume •Market Share at • Q2: ₹ 102.5 Cr. Domestic Market Share EBIT 18,789 11.2% • YoY down by 4.6% • YoY down by 33.2% • YoY down by 8.6% •YoY up by 17 bps • QoQ down by 8.9% • QoQ down by 13.6% • QoQ down by 6.6% •QoQ up by 71
Slide 14: Recent Developments: CARE 24X7
Recent Developments CARE – 24X7 24X7 customer service across entire range of Powertrac and Farmtrac tractors. Now all our customers can just press a special button on their tractor any time of the day for any technical or other help and receive a call back from a trained Company Engineer within 2 mi
Slide 15: Electric Tractor: Gearing up for Future
Electric Gearing upTractor for Future Electric Tractor 02-11-2019 Copyright @ Escorts Ltd. ESCORTS LIMITED 14
Slide 16: Strategic Collaboration with Kubota Update
Strategic Collaboration with Kubota Update • Contract Manufacturing for Escorts and Kubota Product Manufacturing JV (50,000 • Factory under construction Phase 1 investment done in FY19 capacity) and phase 2 investment of approx. Rs. 60 cr. in FY20 • Production to start from June 2020 • Escorts Produ
Slide 17: Segment Performance: ECE
Segment Performance : ECE PREFERRED PARTNER IN NATION BUILDING 02-11-2019 Copyright @ Escorts Ltd. ESCORTS LIMITED 16
Slide 18: Served-Construction Industry Overview
Served-Construction Industry Overview In ‘000s Quarterly Half Year 14.2 28.9 10.7 9.9 20.7 Q ended Sept'18 Q ended June'19 Q ended Sept'19 H Ended Sept'18 H Ended Sept'19 • Served industry (Backhoe Loaders, Pick n carry crane and Compactors) went down by 28.6% in H1FY20 wrt to LY. • BHL industry dow
Slide 19: Q2FY20 Segment Highlights: ECE
Q2FY20 Segment Highlights : ECE • ECE at 945 • Q2: ₹ 5.4 Cr. Volume • Q2: ₹ 201 Cr. Revenue • Q2: 9.2% Served industry Market Share EBIT • YoY down by 29% • YoY up by 17 bps • YoY down by 19.3% • YoY up by 196.2% • QoQ down by 11.4% • QoQ down by 38 bps • QoQ down by 5.3% • QoQ up by 0.8% • Key High
Slide 20: Segment Performance: RED
Segment Performance : RED ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 02-11-2019 Copyright @ Escorts Ltd. ESCORTS LIMITED 19
Slide 21: Q2FY20 Segment Highlights: RED
Q2FY20 Segment Highlights : RED • As of Sept’19 • Q2: ₹ 126.7 Revenue Order Book • Q2: ₹ 24.2 Cr. EBIT around ₹ 500 Cr. • YoY up by 14.5% Cr. • YoY up by 19.6% • QoQ up by 2.4% • QoQ up by 7.3% •Execution time 12~15 Months • Breakup • Margin at • Key Highlight 19.1% • New product order • YoY down by
Slide 22: Shareholding Pattern
↑ SHAREHOLDING PATTERN 31.4% 33.3% 31.9% 33.9% 32.5% 28.5% 26.6% 28.0% 25.9% 27.3% 40.1% 40.1% 40.1% 40.2% 40.2% Sept'18 Dec'18 Mar'19 Jun'19 Sept'19 Promoters + Trust Institutions* Public * FPI/Financial Institutions/ Banks/Insurance Companies As of quarter ended 02-11-2019 Copyright @ Escorts Ltd.
Slide 23: Escorts Ltd. H1FY20 at a Glance
…Escorts Ltd. H1FY 20 at a Glance Escorts Ltd. Particulars (YoY)* H1FY20 H1FY19 Variance Domestic Tractor Market Share 10.9% 10.9% Revenue ₹ 2,746.8 Cr. ₹ 2,909.6 Cr. -5.6% Material Cost 68.0% 67.6% 44 bps Manpower Cost 9.0% 8.1% 98 Bps EBIDTA ₹ 269.1 Cr. ₹ 343.0 Cr. -21.6% EBIDTA Margin 9.8% 11.8%
Slide 24: Q2FY20 Results
Q2FY20 Results Escorts Limited Statement of Standalone Unaudited Financial Results for the quarter and six months ended September 30, 2019 Rs. in Crores Standalone results 3 Months ended Preceding 3 months Corresponding 3 For the six months ended For the year ended ended months ended in Particulars
Slide 25: Q2FY20 Results
Q2FY20 Results Profit from discontinued operations before tax - - 0.15 - 1.89 1.89 Tax expense of discontinued operations - - 0.05 - 0.66 0.66 Net profit from discontinued operations after tax - - 0.10 - 1.23 1.23 Net profit for the period 104.60 87.49 102.74 192.09 223.44 484.91 Other comprehensive
Slide 26: Q2FY20 Results: Statement of assets and liabilities
Q2FY20 Results Statement of assets and liabilities Rs. in Crores Particulars Standalone Particulars Standalone Unaudited Audited Unaudited Audited As at As at As at As at 30-09-2019 31-03-2019 30-09-2019 31-03-2019 ASSETS EQUITY AND LIABILITIES 1 Non-current assets 1 Equity a) Property, plant and eq
Slide 27: Q2FY20 Results: Segment wise revenue
Q2FY20 Results Segment wise revenue, results and capital employed for the quarter and six months ended September 30, 2019 Rs. in Crores Rs. in Crores Standalone Standalone 3 Months ended Preceding 3 months Corresponding 3 For the six months ended For the year ended 3 Months ended Preceding 3 months
Slide 28: Q2FY20 Results: Statement of cash flow
Q2FY20 Results Escorts Limited Unaudited standalone statement of cash flow for the six months ended September 30, 2019 Rs. in Crores Rs. in Crores Six months ended Six months ended 30 Sep 2019 30 Sep 2018 30 Sep 2019 30 Sep 2018 A Cash flow from operating activities Unaudited Unaudited Unaudited Una
Slide 29: Narrations
Narrations • EAM – Escorts Agri Machinery • ECE – Escorts Construction Equipment • RED – Railway Equipment Division • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • Q2FY20 – Represents the 3 months period from 1st July 2019 to 30th September 2019. • Q1FY20 – Represe
Slide 30: Safe Harbor
SAFE HARBOR Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im
Slide 31: Thank You
Thank You SCORTS Copyright @ Escorts Ltd. ESCORTS LIMITED 30