Azad Engineering Limited · NSE:AZAD
Azad Engineering — Q1 FY25 Earnings Presentation
30 slides from Azad Engineering's earnings presentation, Aug 8, 2024
Slide 1: Exchange filing cover letter for investor presentation
AZA D cs/rP-Q1 [2 a24-2s) ^N Date: August 08, 2024 To, The Listing Department National Stock Exchange of India Ltd. ExchangePlaza, Plot No. C/L, G Block Bandra-Kurla Complex, Bandra [E) Mumb ar - 400 051 Dear Sir/Madam, Subiect :Investor Presentation for the quarter ended tune 30, ZOZ4. Reference :I
Slide 2: Azad Engineering Limited Investor Presentation August 2024
Azad Engineering Limited Investor Presentation August 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Azad Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Year gone by
Year gone by AZA NY
Slide 5: Highest ever quarterly performance
Highest ever quarterly performance Rs. 984.1 Mn Rs. 339.2 Mn Rs. 171.3 Mn 29.6% 34.5% margin I 28.8% 17.4% margin I 131.5% Revenue Adjusted EBITDA PAT Q1FY25 vs. Q1 FY24 (Rs. Mn) Energy & Oil & Gas Aerospace & Defence Other operating Revenues Revenues Revenues* % Revenue contribution 89.6% 78.4% 7.2
Slide 6: Performance Highlights
Performance Highlights Quarterly performance (Standalone) (Rs. Mn) “Q1 FY25 was an outstanding quarter for Azad, with revenue (Rs.984.1 Margins Mn) and profitability (Adjusted EBITDA – Rs.339.2 Mn and PAT – Rs.171.3 Revenue Adj EBITDA* Mn) at record levels. On a YoY basis, the topline grew by 29.6%,
Slide 7: Revenue Mix
Revenue Mix (Rs. Mn) Q1FY25 Q1FY24 YoY FY24 Revenue from operations* § The Energy and Oil & Gas segment Energy and Oil & Gas 771.1 680.1 13.4% 2,846.1 grew by 13.4% in Q1FY25 mainly due to additional capacity. The company has Domestic 22.7 32.1 226.0 started execution of O&G orders in Exports 748.4
Slide 8: Standalone Profit & Loss Account
Standalone Profit & Loss Account Standalone (Rs. Mn) Q1FY25 Q1FY24 YoY Revenue from Operations 984.1 759.1 29.6% § Non-recurring expenses include: Consumption 153.2 77.8 § Loss on foreign exchange transactions and Employee expenses 204.4 154.8 translations other than those considered as Other Expens
Slide 9: Update on Business Development & Growth
Update on Business Development & Growth Signed an agreement for a tenure of 5 years from Siemens Energy Global GmbH & Co. to manufacture and supply critical rotating components for their global demands of advanced gas and thermal turbine engines Secured a prestigious nation pride contract from GTRE
Slide 10: Company Overview
Company Overview AZA x :
Slide 11: Azad Engineering Ltd.: Snapshot
Azad Engineering Ltd.: Snapshot Preferred name in the manufacturing of highly-engineered, complex and mission & life-critical components Supplying to highly regulated industries having significant entry barriers End-markets with massive TAM FY27 Aerospace & Defence INR 1,530 bn TAM Substantial exper
Slide 12: Project and Life Critical Portfolio of Diversified Products (1/2)
Project and Life Critical Portfolio of Diversified Products (1/2) Energy and Oil & Gas Industry Product Category Products End-Use Industry/Application Last Stage Airfoil – Rotary & Fixed Airfoil Last Stage Airfoil - Stationary Welding Chamfers Electric Power Generation Nuclear Power Turbine – Turbin
Slide 13: Project and Life Critical Portfolio of Diversified Products (2/2)
Project and Life Critical Portfolio of Diversified Products (2/2) Aerospace and Defence Industry Product Category Products End-Use Industry/Application Housing, Compressor & Airfoils, Unison Rings, Arm, Levers Body, Assembly Mount Aero Engine Assembly Business Jet Aircrafts Auxiliary Power Unit Comm
Slide 14: Significant Entry Barriers at Each Stage
Significant Entry Barriers at Each Stage Azad has delivered over 3 million mission critical parts with Zero parts per million defects requirement to its customers. It has demonstrated efficiencies pursuant to machining time reduction and adherence to strict quality, resulting in a massive competitiv
Slide 15: Critical Source Supplier to OEMs - Aerospace & Defence
Critical Source Supplier to OEMs with High Global Market Penetration - Aerospace & Defence Azad is a supplier to six of the key manufacturers in aerospace and defence industry Addressable market Growth Drivers Key components used in an aircraft Aerospace & Defence1 • Opportunity to increase wallet s
Slide 16: Critical Source Supplier to OEMs - Energy Turbine Industries
Critical Source Supplier to OEMs with High Global Market Penetration – Energy Turbine Industries Azad, being a critical components supplier, is a key link in the global supply chain for the OEMs Azad’s customer market share in Global turbine components1 Gas power turbine Player 4 Player 5 5% Azad’s
Slide 17: Long-standing and Deep Customer Relationships With OEMs
Long-standing and Deep Customer Relationships With OEMs As a strategic and growth partner to customers across highly regulated industries, Azad enjoys long-term relationships with high customer stickiness and a high percentage of repeat business, which allows us to have long-term contracts, a stable
Slide 18: Well-diversified Business with Global Operations
Well-diversified Business with Global Operations Azad caters to multiple customers across the globe has average relationship for over 10 years with key customers Revenue Breakup Q1FY25 FY24 Domestic Domestic UK Switzerland 9.5% 12.5% Hungary Poland France Sweden Germany Italy 90.5% 87.5% Exports Exp
Slide 19: Advanced Manufacturing Facilities With Focus on Innovation
Advanced Manufacturing Facilities With Focus on Innovation and Cost Competitiveness Azad’s all facilities (except which are earmarked for specific clients) are fungible in nature Four manufacturing facilities in Hyderabad Facilities in Pipeline Spread across 20,000 Sq.mts Facility 1 Facility 2 ~95,0
Slide 20: Experienced Promoter and Board of Directors
Experienced Promoter and Board of Directors…. Rakesh Chopdar Jyoti Chopdar Vishnu Malpani Chairman & CEO Whole-Time Director Whole-Time Director • Involved with Azad since 2003 • Passed the examination for • Holds a bachelor’s degree in pic with two decades of experience pic bachelor’s degree in art
Slide 21: With Strong Management Team
….with Strong Management Team Ronak Jajoo Ashok Gentyala Balaji PR Chief Financial Officer Head - Engineering & Operations Head – Business Growth • Passed the examination for post • Holds a diploma in mechanical • Previously worked with Miranda graduate degree in business engineering Tools, Helix To
Slide 22: Way Forward
Way Forward AZA x y
Slide 23: Unique positioning and growth strategy
Best-in-class engineering portfolio lending a strong moat with significant entry barriers Supplier of choice to highly regulated industries Ä Producer of mission critical components; High complexity and precision requirements Ä Unique Long haul journey with vendor qualifications taking up to 30-48 m
Slide 24: Historical financials
Historical financials AZA x y
Slide 25: Consistent Track Record of Financial Performance
Consistent Track Record of Financial Performance Margin Revenue From Operations Adj. EBITDA* & EBITDA Margin PAT and PAT Margin In Rs. Mn 30.2% 32.5% 31.6% 34.5% 9.4% 15.1% 3.4% 17.2% 3,407.7 +40.6% 1,174.5 2,516.8 +46.8% 585.8 +72.1% 1,944.7 795.8 631.7 1,227.2 294.6 370.9 115.0 85.1 FY21 FY22 FY23
Slide 26: Restated Standalone Statement of Profit and Loss
Restated Standalone Statement of Profit and Loss (Rs. Mn) FY24 FY23 FY22 FY21 CAGR (FY21- 24) Revenue from Operations 3,407.7 2,516.8 1,944.7 1,227.2 40.6% Consumption 460.2 301.5 207.6 138.1 § Non-recurring expenses include: Employee expenses 742.7 592.7 462.7 326.0 § Fire related expenses Other Ex
Slide 27: EBITDA & PBT Bridge
EBITDA & PBT Bridge (Rs. Mn)$ Q1FY25 Q1FY24 FY24 FY23 FY22 FY21 (A) Adj EBITDA 339.2 263.4 1,174.5 795.8 631.7 370.9 (B) Non - Recurring Expenses Fire related expenses 0.0 0.0 0.0 63.0 0.0 0.0 Provision for credit impaired trade receivable 3.1 1.3 8.6 4.8 2.4 7.9 Professional and consultancy charges
Slide 28: Annexures
Annexures AZA x ,
Slide 29: Utilisation of IPO Proceeds
Utilisation of IPO Proceeds Net Proceeds from IPO – Rs.2,227.49 Mn Rs. 604 Mn Funding Capital Expenditure Rs. 1,382 Mn Repayment of borrowings in part or full Rs.242 Mn General Corporate Purpose The amount utilized for general corporate purposes does not exceed 25% of the Gross Proceeds 28
Slide 30: For more information Please contact
For more information Please contact: Company: Investor Relations Advisor: Strategic Growth Advisors Pvt Ltd. Azad Engineering Limited: CIN: U74210TG1983PLC004132 CIN: U74140MH2010PTC204285 Mr. Ful Kumar Gautam, Company Secretary & Shikha Puri / Riddhish Bhayani Compliance Officer Email id: shikha.pu