Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Investec Investor Conference, Mumbai, February 29, 2024
18 slides from Varroc Engineering's conference presentation, Feb 28, 2024
Slide 1: Intimation of schedule of conference with analysts/investors
Varroc Engineering Limited Regd. & Corp. Office L‐4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 136, Fax + 91 240 2564540 www.varroc.com Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2023-24/120 February 28, 2024 To, The Manager- List
Slide 2: Varroc Investor Presentation
VARROC INVESTOR 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: About Us
About Us Four primary business lines: Varroc is a leading global auto technology company with a product portfolio covering a wide range of 08 7000+ electrical, electronics, Countries Employees lighting, polymer, metallic, after-market and advanced ELECTRICAL - LIGHTING safety solutions 36 ELECTRONIC
Slide 5: Symmetric Representation of Varroc (Post Divestment)
Symmetric Representation of Varroc (Post Divestment) Promoter Share Holding Public Share Holding 75.0% 25.0% Varroc Engineering Limited VEL - Standalone Operations Overseas Joint Ventures* Overseas Subsidiaries India Subsidiaries’ & JV ● Varroc TYC (China JV for ● IMES ITALY ● Electrical and Electro
Slide 6: Technology for Two Wheelers
Technology for Two Wheelers Electronic Fuel Injection LED Headlamps, Mirrors for ICE vehicles and BS6 Safety Sustainability catalytic converters Traction motor and controller, Power assist ISG, and e- Connected Displays, TFT Drivetrain energy management and sensor Interfaces, Electrification systems
Slide 7: Technology for Four Wheelers
Technology for Four Wheelers ADAS, Driver Monitoring Systems, Surround View Systems, LED Headlamps & LCUs, Adaptive Front Safety Lighting Systems Mirrors Safety Signature Lighting, Interior Systems, In-Cabin Sensing, Personalization Personalization Interior Mood Lighting, Center Consoles FOTA in Tel
Slide 8: Varroc's EV Product Offering
Varroc’s EV Product Offering WE OFFER WIDE RANGE OF PRODUCTS FOR ELECTRIC VEHICLE WITH LOCALISED MANUFACTURING (2W/3W) 8 7 6 5 4 3 2 1 Telematics On Board BMS TFT/fully Throttle DC-DC Motor PMSM Charger Digital Position Sensor Converter Controller Traction Motor Cluster Under Testing & Development E
Slide 9: Excelling as a Systems Supplier
Excelling as a Systems Supplier Components • Customer CTQs • Component Design • Robust analysis to predict the design meets all CTQs • Tolerance analysis to ensure DFM Motor • Material and component data Base to speed up the design Sub-Systems • Customer requirements and CTQs • Sub-system level CTQs
Slide 10: Unlocking Synergies across Businesses
Unlocking Synergies across Businesses Varroc's unique positioning as a systems supplier is strengthened through collaboration across its businesses. Traction Motor 4W ORVM Mirror with Gearbox Polymer + Electrical Electrical + Metallic Cross Mirror and Tailgate Business Seat with Signal Lighting Poly
Slide 11: Capabilities: Product Development
Capabilities: Product Development End-to-end capabilities across design, engineering, testing/validation, tooling, manufacturing and delivery Testing and Validation Project and Program Facilities CAE and Simulation Management Structural & Vibration Functional Performance DFSS/DMAIC Product Life Cycl
Slide 12: Highlights 9M FY24
Highlights 9M FY24 1. 9M FY24 revenue growth of 7.4% at Rs. 55,771 million; Indian operations grew YoY by 10.9% 2. Revenue from supplying to EV customers increasing QoQ, Q1 FY 24 was ~4.0% of Revenue, Q2 FY24 was 4,4% and Q3 FY24 was 5.3% of the revenue, supported by strong performance of key EV cus
Slide 13: Profitability Statement - 9M for last 3 years
Profitability Statement - 9M for last 3 years Figure in Rs Millions Particulars 9M FY24 9M FY23 9M FY22 2Y Growth Revenue 55,771 51,921 42,082 32.5% Gross Profit 20,419 18,305 14,807 37.9% Gross Margin % EBITDA 36.6% 5,403 35.3% 4,372 35.2% 140 bps 2,883 87.4% Positive Operating EBITDA % 9.7% 8.4% 6
Slide 14: Key Financial Indicators
Key Financial Indicators Improved return ratio and strengthening of balance sheet is improving debt servicing ability Please note that for calculation purpose, we have annualised EBIT, EBITDA and Interest cost for H1FY24 & H1 FY23
Slide 15: Revenue Breakdown by Categories
Revenue Breakdown by Categories Indian growth story, growing content, electrification, system supplier etc. driving the revenue breakdown PBU= Polymer Business Unit; EBU = Electrical & Electronics Business Unit; MBU = Metallic Business Unit
Slide 16: Focus areas for Varroc
Focus areas for Varroc Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure t
Slide 17: Why Varroc
Why Varroc Continuous Focus on R&D Strong Competitive Long Standing, Comprehensive Low-Cost Capabilities Enhancing Position in a Growing Growing Customer Solution Provider Manufacturing Portfolio Market Segment Relationships Footprint • End-to-end services across design, • Developing innovative, cos
Slide 18: Thank You
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Varroc Engineering — Investec Investor Conference, Mumbai, February 29, 2024 on 6ix