Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q2 & H1 FY24 Earnings Presentation
37 slides from Sona Blw Precision Forgings's earnings presentation, Oct 25, 2023
Slide 1: Stock exchange filing cover letter for investor presentation
Date: - 25th October, 2023 BSE Ltd. National Stock Exchange of India Ltd. Regd. Office: Floor - 25, Listing Dept., Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai-400 001. Mumbai - 400 051 BSE Scrip Code: 543300 NSE Scrip: SONACOMS Subject: Invest
Slide 2: Q2 & H1 FY24 Earnings Presentation
Q2 & H1 FY24 Earnings Presentation 25 October 2023
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Our Management
Our Management Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 5: One Vision
One Vision To become one of the World’s most Respected and Valuable Auto Mobility Technology companies for our Customers, Employees & Shareholders. 4
Slide 6: Our new technology roadmap for E.P.I.C. mobility
Our new technology roadmap for E.P.I.C. mobility also displays our product evolution journey Connected Zone Monitoring Intelligent Sensors 360˚ Short-range Radar Sensors Electric HV e-Axle Epicyclic Geartrain In-cabin Robotics Gears EDL Sensors HV Non-ferrous Spool Gear Reduction Motor Parts Drive U
Slide 7: Financial Performance Highlights
Financial Performance Highlights Our net formed differential gears
Slide 8: Q2 FY24 Financial Performance Highlights
Q2 FY24 Financial Performance Highlights 7,908 mn | 20% 2,233 mn | 35% 1,238 mn | 34% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 28.2% EBITDA Margin 15.7% PAT Margin1 2,070 mn | 58% 27% BEV Revenue | YoY Growth Q2 FY24 Revenue Share from BEV Notes: 1. PAT margin percentage calculated
Slide 9: H1 FY24 Financial Performance Highlights
H1 FY24 Financial Performance Highlights 15,230 mn | 22% 4,267 mn | 38% 2,359 mn | 40% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 28.0% EBITDA Margin 15.5% PAT Margin1 32.3% 28.7% RoCE2 RoE3 Notes: 1. PAT margin percentage calculated from PAT including non-controlling interest 2. ROCE
Slide 10: Update on our Strategic Priorities
Update on our Strategic Priorities Net formed differential gears coming out of our forging press
Slide 11: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 10
Slide 12: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 27% 3,913 mn 33% H1 FY24 Revenue Share H1 FY24 BEV segment H1 FY24 BEV revenue from BEV revenue YoY growth 46 48 +2 (10+13+23)1 (10+15+23)1 EV Programs1 awarded across EV Programs1 awarded across 27 customers as at the end of 28 customers as at the end of Q1 F
Slide 13: New EV OEM customer and Indian OEM for electric 3-wheeler motors
We added another high-end EV OEM customer with a unique drivetrain architecture & a legacy Indian OEM for electric 3-wheeler motors Rotor Embedded Mid-Drive Differential Sub-Assembly Traction Motor For Electric Passenger Vehicles For Electric 3-Wheelers New Customer Existing Customer North American
Slide 14: 48 EV programs across 28 different customers
48 EV programs across 281 different customers No. of North America Europe2 Asia programs customers 7 Customers +1 5 Customers 4 Customers - 3 12 1 6 2 2 24 11 6 6 15 5 2 3 1 15 7 3 3 11 9 1 1 - 3 3 - +1 4 22 +1 Programs in fully ramped-up production India Programs in ramp-up or not yet in production
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 14
Slide 16: Our net order book grows to ₹221 billion
Our net order book1 grows to ₹221 billion (8.3x FY23 revenue) 220 bn 5 bn Orders consumed from 6 bn 221 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q1 FY24 programs won in Q2 FY24 Q2 FY24 programs during Q2 FY24 Non-EV EV Rs. 171 Billion (78%) Rs. 49 Billi
Slide 17: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 16
Slide 18: Diversified Revenue Mix – By Powertrain
Diversified Revenue Mix – By Powertrain Battery EV increasing as a % of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 25% in FY21 to 11% in H1 FY24 FY21 FY22 FY23 H1 FY24 14% 25% 26% 27% 27% 26% 21% 23% 34% 31% 38% 39% 25%
Slide 19: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Vehicle segment 7% 1% 4% 1% 4% 23% FY23 PV H1 FY24 20% 15% 43% FY23 FY23 69% 70% CV 21% 32% 29% 15% 15% 0.5% 1% 6% 1% 5% 4% OHV 21% 40% 11% 23% 12% 10% H1 H1 FY24 FY24 E2W/E3W 4% 5% 23% 35% 30% 18
Slide 20: Q2 & H1 FY24 Financial Update
Q2 & H1 FY24 Financial Update Our final drive gears
Slide 21: Q2 FY24 Financials
Q2 FY24 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 35% YoY: 39% YoY: 20% YoY: 34% 7,908 2,233 1,238 1,283 6,574 1,657 925 28.2% 25.2% 14.1% 15.7% 16.2% 1,310 2,070 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY24 (adj) o BEV Revenue gr
Slide 22: H1 FY24 Financials
H1 FY24 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 38% YoY: 44% YoY: 22% YoY: 40% 15,230 4,267 2,359 2,424 12,466 3,082 1,684 28.0% 24.9% 15.5% 15.9% 2,937 3,913 13.5% H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY24 (adj) o BEV Revenu
Slide 23: FCFO of INR 1,592 mn in H1 FY24
FCFO of INR 1,592 mn in H1 FY24 Numbers in Rs. mn Opening Cash as Net cash flow from Net cash flow from Net cash flow from Closing Cash as on on 1st April 2023 operating activities investing activities financing activities 30th September 2023 EBITDA 4,267 Capex (1,408) Net loan 645 drawn ∆ Working N
Slide 24: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 6.3 5.2 5.7 36.1% 36.3% 5.1 32.4% 32.3% 34.6% 28.8% 30.4% 30.4% 26.6% 28.7% Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5
Slide 25: Q&A / New Product Development Discussion
Q&A New Product Development Discussion
Slide 26: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 27: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Started journey as a public company • 2 Plants • 2 Plants • 47 Customers (37+10) • 72 customers • 1 Product • 2 Products • 9 Plants (5+4) • 9 plants • 10 Products (5+5) • 17 products Re
Slide 28: One Vision
One Vision To become one of the World’s most Respected and Valuable Mobility Technology companies for our Customers, Employees & Shareholders. 27
Slide 29: Guided by Values
Guided by Values 34.5% Agility Growth 5-year Revenue CAGR 26.8% Vitality Margins Integrity 5-year Avg. EBITDA >25% Returns Frugality ROE Each Year (FY19-FY23) 28
Slide 30: Vertically-integrated and modular solutions provider for the new EPIC value chain
Vertically-integrated and modular electro-mechanical and autonomous solutions provider for the new EPIC value chain Customer Mobility Interface Provider Integrated Powertrain Autonomous Solutions Solutions Provider OEM Provider • Radar Boards & Antenna Design • Embedded & Application Software Electr
Slide 31: Electrification: Our Approach to Market
Electrification: Our Approach to Market Driveline Solutions Motor Solutions Core Strength: Core Strength: Power Rating High Torque, High Power Density EV Products Low Voltage, High Power Density Commercial Personal Personal Commercial > 600 kW 300 – 600 kW Epicyclic Spool EDL Geartrain Gears 100 – 3
Slide 32: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally USA Location Capacity3 Germany China Location Capacity3 Tecumseh, MI 1 mn starter motors Belgium Cologne Hangzhou 1 mn starter motors Ypsilanti, MI Genk 7 of the world’s top 10 PV OEMs1a Serbia Belgrade 3 of the world’s top 10 CV OEMs1b Novi Sad
Slide 33: Product Summary
Product Summary Passenger Vehicles 10 Spool Gears 9 Electronically Locking 13 Differential (EDL) 12 11 360° Short Range 8 Radar Sensors* 7 Reduction In-Cabin Radar 11 Epicyclic Drive Unit* Sensors* 6 1 5 Geartrain 2 4 Integrated 3 Motor Controller Intermediate Module Gears (for Predictive Active Sus
Slide 34: Product Summary
Product Summary Off Highway Vehicles Buses 6 Differential Bevel Gears Spiral Bevel Gears 5 In-Cabin Radar Sensors* 3 7 8 4 1 4 2 1 3 Portal Axle Gears 2 5 Traction Motor 360° Short Range Radar Sensors* Controller Light Commercial Vehicles /3-Wheeler (Cargo) Controller* 360° Short Range Radar Sensors
Slide 35: Product Summary
Product Summary Industrial Automation, Electric 2-Wheelers AGVs & Robots 1 Hub Wheel Motor Integrated Motor & 4 Robotics Gears* 5 1 Controller* 3 360° Short Range 4 2 Radar Sensors* 360° Short Range Radar Sensors* 2 Zone Monitoring Sensors* Drive Motor 3 Bot Motors* Electric 3-Wheelers Controller Bu
Slide 36: Revenue share from BEV has grown 21x over 5 years
Revenue share from BEV has grown 21x over 5 years, with absolute BEV revenue growth at 45x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 45x 7,826 H1FY24 21x Annualized 6,707 25% 26% 27% 5,042 14% 2,057 3,913 H1FY24 1.3% 2.0% 174 234 FY19 FY20 FY21 FY22 FY23 H1 FY24 FY19 FY20 FY21 FY22 FY23 FY24
Slide 37: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share of CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.2% Differential Gears1 Global Market Share of CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tractors to dominate the
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