Slide 1: Earnings presentation cover letter to stock exchanges
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Slide 2: Rane Group Earnings Presentation Q2 FY20
Rane Group Earnings Presentation | Q2 FY20 N o v e m b e r 2 0 1 9 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Outline
Outline › Industry Performance Review – Q2 FY20 › Rane Group Performance Review – Q2 FY20 › Group Companies Performance Highlights – Q2 FY20 Not to be copied or distributed without permission of Rane Holdings Limited 2
Slide 4: Industry Performance Review (Q2 FY20)
Industry Performance Review (Q2 FY20) Production YoY Rane Group Sales Growth Rane Group Revenue Vehicle Segment Growth# in % YoY in % (India OEM) Split * (India OEM) Passenger Cars (PC) -24% -25% 48% Utility Vehicles (MUV) -5% -43% 15% Vans -34% 5% 1% - Total Passenger Vehicle -20% -30% 64% Small Co
Slide 5: Outline
Outline › Industry Performance Review – Q2 FY20 › Rane Group Performance Review – Q2 FY20 › Group Companies Performance Highlights – Q2 FY20 Not to be copied or distributed without permission of Rane Holdings Limited 4
Slide 6: Group Aggregate Performance Review (Q2 FY20)
Group Aggregate Performance Review (Q2 FY20) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 10.9% 6.3% 1,371.6 7.8% 150.1 85.9 1,087.4 20.7% 83.1% 43.6% 1.3% 84.6 14.5 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items › Total Net Revenue dropped by
Slide 7: RHL Consolidated Performance Review (Q2 FY20)
RHL Consolidated Performance Review (Q2 FY20) Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 9.6% 8.5% 7.5% 647.9 61.9 55.3 551.7 84.7% 32.8% 41.6 14.8% 1.5% 8.5 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items and includes profits from JV › Total
Slide 8: Group Aggregate Performance Review (YTD)
Group Aggregate Performance Review (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 2,714.0 2,340.3 -13.8% EBITDA 293.9 178.1 -39.4% EBITDA Margin 10.8% 7.6% -322 bps PBT Before Exceptional Items 167.7 39.3 -76.6% Exceptional (Expenses) / Income * (2.9) (51.8) PBT 164.8 (12.5) -107.6% PBT Margin
Slide 9: RHL Consolidated Performance Review (YTD)
RHL Consolidated Performance Review (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 1,290.6 1,135.2 -12.0% EBITDA 123.0 85.4 -30.6% EBITDA Margin 9.5% 7.5% -201 bps PBT Before Exceptional Items 109.7 24.2 -77.9% Exceptional (Expenses) / Income * (1.4) (25.4) PBT 108.3 (1.1) -101.0% PBT Margin 8
Slide 10: Outline
Outline › Industry Performance Review – Q2 FY20 › Rane Group Performance Review – Q2 FY20 › Group Companies Performance Highlights – Q2 FY20 Not to be copied or distributed without permission of Rane Holdings Limited 9
Slide 11: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) Not to be copied or distributed without permission of Rane Holdings Limited 10
Slide 12: RML Standalone – Operational Performance Review
RML Standalone – Operational Performance Review Business Split (Q2 FY20) Market Environment By Market (%) › Adverse market condition across vehicle segments in India Intl OEM, 23 India OEM&OES, 62 – Higher penetration of power steering in SCV and LCV segment resulted in decline in served market – Hi
Slide 13: RML Standalone – Financial Performance Review
RML Standalone – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.4% 5.7% 355.6 8.6% 282.4 20.1 40.5 40.3% 87.0% 20.6% 24.2 0.9% 2.6 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items › Total Net Revenue dropped by 20.6%
Slide 14: RML – Standalone Financials (YTD)
RML – Standalone Financials (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 703.1 579.6 -17.6% EBITDA 79.5 49.7 -37.5% EBITDA Margin 11.3% 8.6% -274 bps PBT Before Exceptional Items 40.4 7.5 -81.4% Exceptional (Expenses) / Income - - PBT 40.4 7.5 -81.4% PBT Margin 5.7% 1.3% -445 bps PAT 27.2 5.
Slide 15: RML Consolidated – Financial Performance Review
RML Consolidated – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 9.5% 3.3% 400.8 13.1 331.2 38.3 4.5% 17.3% 61.4% Q2 FY2019 Q2 FY2020 182.5% 14.8 (10.8) Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 -3.3% * PBT before exceptional items › Total Net Revenue decreased
Slide 16: RML – Consolidated Financials (YTD)
RML – Consolidated Financials (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 797.5 677.4 -15.1% EBITDA 72.3 31.3 -56.7% EBITDA Margin 9.1% 4.6% -444 bps PBT Before Exceptional Items 24.1 (19.4) -180.7% Exceptional (Expenses) / Income - - PBT 24.1 (19.4) -180.7% PBT Margin 3.0% -2.9% -589 bps P
Slide 17: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) Not to be copied or distributed without permission of Rane Holdings Limited 16
Slide 18: REVL – Operational Performance Review
REVL – Operational Performance Review Business Split (Q2 FY20) Market Environment By Market (%) › Drop in volume across vehicle segments in India Intl Aftermarket, 8 India Aftermarket, 8 › Export Aftermarkets sales cushioned drop in offtake from International OE customer India Intl OEM, 22 OEM&OES,
Slide 19: REVL – Financial Performance Review
REVL – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs. cr.) 4.7% Q2 FY2019 Q2 FY2020 3.1% (6.4) (5.7) 107.8 94.6 33.6% 4.5 10.7% 12.3% 3.4 -6.0% -5.9% Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items › Total Net Revenue declined by 12.3% from R
Slide 20: REVL – Financials (YTD)
REVL – Financials (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 210.9 198.6 -5.8% EBITDA 6.7 7.8 15.4% EBITDA Margin 3.2% 3.9% 72 bps PBT Before Exceptional Items (13.0) (12.2) 6.3% Exceptional (Expenses) / Income - - PBT (13.0) (12.2) 6.3% PBT Margin -6.2% -6.1% 3 bps PAT (8.5) (7.9) 6.3% PA
Slide 21: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) Not to be copied or distributed without permission of Rane Holdings Limited 20
Slide 22: RBL – Operational Performance Review
RBL – Operational Performance Review Business Split (Q2 FY20) Market Environment By Market (%) › Volume drop across Indian vehicle segments; Favourable demand from two wheeler Intl OEM, 5 India OEM&OES, segment driven by migration to disc brakes 58 › Muted demand from Indian Aftermarket business Ind
Slide 23: RBL – Financial Performance Review
RBL – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 13.6% 8.0% 6.1% 10.8% 121.3 15.2 8.9 112.1 13.1 21.3% 7.6% 16.3% 7.4 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items › Total Net Revenue decreased by 7.6% from Rs. 1
Slide 24: RBL – Financials (YTD)
RBL – Financials (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 244.4 231.0 -5.5% EBITDA 28.6 30.9 8.1% EBITDA Margin 11.7% 13.4% 169 bps PBT Before Exceptional Items 17.3 18.3 5.8% Exceptional (Expenses) / Income - - PBT 17.3 18.3 5.8% PBT Margin 7.1% 7.9% 84 bps PAT 11.9 14.8 24.4% PAT Margi
Slide 25: Rane TRW Steering Systems Pvt. Ltd. (RTSS)
Rane TRW Steering Systems Pvt. Ltd. (RTSS) Not to be copied or distributed without permission of Rane Holdings Limited 24
Slide 26: RTSS – Operational Performance Review
RTSS – Operational Performance Review Business Split (Q2 FY20) Market Environment By Market (%) › Significant drop in Indian Commercial Vehicle volumes impacted steering gear products India OEM&OES, › Export remains focus for occupant safety products to mitigate the drop in domestic 53 Intl OEM, 42
Slide 27: RTSS – Financial Performance Review
RTSS – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 8.4% 11.9% 9.5% 26.9 5.0% 320.8 284.3 38.2 29.0% 11.4% 47.5% 27.2 14.1 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items › Total Net Revenue decreased by 11.4% from R
Slide 28: RTSS – Financials (YTD)
RTSS – Financials (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 662.7 638.0 -3.7% EBITDA 79.4 50.6 -36.3% EBITDA Margin 12.0% 7.9% -405 bps PBT Before Exceptional Items 57.1 23.8 -58.4% Exceptional (Expenses) / Income - - PBT 57.1 23.8 -58.4% PBT Margin 8.6% 3.7% -490 bps PAT 38.1 17.6 -53.9%
Slide 29: Rane NSK Steering Systems Pvt. Ltd. (RNSS)
Rane NSK Steering Systems Pvt. Ltd. (RNSS) Not to be copied or distributed without permission of Rane Holdings Limited 28
Slide 30: RNSS – Operational Performance Review
RNSS – Operational Performance Review Business Split (Q2 FY20) Market Environment By Market (%) › Significant drop in Passenger Vehicle volumes impacted EPS volumes Intl OEM, 1 India OEM&OES, › MSC volumes impacted by drop in Commercial Vehicle volumes 99 Operational Highlights By Vehicle Segment (%
Slide 31: RNSS – Financial Performance Review
RNSS – Financial Performance Review Total Net Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 11.5% 14.4% 57.6 9.0% 46.0 59.3% 80.4% 3.5% 400.1 35.0% 260.0 23.4 9.0 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 Q2 FY2019 Q2 FY2020 * PBT before exceptional items › Total Net Revenue decreased by 35.0% from R
Slide 32: RNSS – Financials (YTD)
RNSS – Financials (YTD) Rs Cr 6M FY19 6M FY20 Growth Total Net Revenue 756.7 584.9 -22.7% EBITDA 107.7 58.6 -45.6% EBITDA Margin 14.2% 10.0% -422 bps PBT Before Exceptional Items 84.6 31.3 -63.0% Exceptional (Expenses) / Income * (2.9) (51.8) PBT 81.7 (20.6) -125.1% PBT Margin 10.8% -3.5% -1431 bps
Slide 33: Thank You
Thank You Rane Corporate Centre For further information, please contact: “Maithri" 132, Cathedral Road, investorservices@ranegroup.com or dpingle@christensenir.com Chennai - 600 086, India www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 32
Slide 34: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion bps Basis point, 100 bps equal to 1% OE Original Equipment CII Confederation of Indian Industry OEM Original Equipment Manufacturer EBITDA Earnings Before Interest, Tax and Depreciation & OES Original Equipment Supplier Amortiza
Slide 35: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. T