Tube Investments Of India Limited · NSE:TIINDIA
Tube Investments Of India — Investor Presentation (August 2016)
70 slides from Tube Investments Of India's investor presentation, August 2016
Slide 1: Investor Presentation
Investor Presentation August 2016 Stock Codes: BSE: 504973 NSE: TUBEINVEST Bloomberg: TI IN / TI IB Reuters: TUBE.NS / TUBE.BO CIN: L35921TN1949PLC002905 1 Tube Investment of India Limited
Slide 2: Contents
Contents 1.About Murugappa Group 2.Tube Investments of India Limited 3.Business Divisional Performance 4.Company Financials -------------------------------------------------------------------------------Disclaimer------------------------------------------------------------------------------ This pre
Slide 3: Murugappa Group
Murugappa Group INR 295 Billion Conglomerate One of the largest family promoted, professionally managed, diversified business groups… 3
Slide 4: The Philosophy we cherish
The Philosophy we cherish The fundamental principle of economic activity is that no man you transact with will lose; then you shall not. - Arthashastra 4
Slide 5: Genesis and early years of growth
Genesis and early years of growth 1900 – 1915 A. M. Murugappa lays the foundation of the Group by establishing a money-lending and banking business, with Ramanathan Chettiar in Burma, under the name A. M. M. Rm. Firm. 1915 - 1934 The Company diversifies into textiles, rubber plantation, insurance an
Slide 6: Decades of Growth
Decades of Growth 1981 – 1990 New acquisitions take place demonstrating the Company’s capability to turn around businesses. Existing Companies and new acquisitions are consolidated and the Muruguppa Group is formed. 1991 – 2000 The Group is restructured where core businesses are streamlined and port
Slide 7: History – From Acorn to Oak
History — From Acorn to Oak murugappa MURUGAPPA GROUP: THE ROAD TRAVELLED ' ; Acquisition of Strategic stake in Acquired 49% stake in . TIFERT, Tunisia, Business Agreement Cargill making Silk road Sarted new Sot Tl and with Foskor by Coromandel, VAW, sugar 100% subsidiary of Started a money lending
Slide 8: Murugappa Group Today
Murugappa Group Today 8
Slide 9: Major Group Companies
Major Group Companies Coromandel International Ltd. • Leading manufacture of wide range of Fertilizers, Pesticides & Specialty Nutrients • Fully integrated fertilizer complex • Second Largest producer of phosphatic fertilizers India E.I.D. Parry India Ltd. • One of the largest producers of sugar in
Slide 10: Major Group Companies
Major Group Companies Tube Investments of India Ltd. • Preferred supplier of precision tubes and Strips to major automotive companies in India and abroad • Metal Forming supplies doorframes to all major auto manufacturer and other roll formed sections for railway wagons and coaches • Market leader i
Slide 11: Major Group Companies
Major Group Companies Cholamandalam Investment and Finance Company Ltd. • Leading financial services provider with a pan India presence • Offers Vehicle Finance, Home Equity Loans, Home Loans, Corporate Finance and Rural Finance • Its subsidiaries are Cholamandalam Distribution Services Limited (C
Slide 12: Other Group Companies
Other Group Companies Parry Enterprises India Limited Wendt India Limited Parry Infra Parry Murray and Co Limited Murugappa Morgan Thermal Sterling Abrasives Limited Ceramics Limited Southern Energy Development Corporation Ambadi Enterprises Limited Placon (India) Private Limited Shanthi Gears Limit
Slide 13: Group Financials
Group Financials 35000 12% 10% 29,470 30000 9% 26926 10% 8% 25000 22314 22466 24350 7% 8% 20000 17051 7% 6% 6% 6% 15000 13617 4% 10000 5000 1354 1527 1850 1489 1415 1780 1,880 2% 0 0% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Turnover PBT PBT % Sales *PBT is excluding Extra- Ordinary I
Slide 14: Group Composition
Group Composition Group Turnover, 2015-16 Group EBITDA, 2015-16 CEC, 122, 0% DBG, 547, 2% CEC, 13, 0% DBG, 94, 3% Chola MS, Chola MS, 229, 2452, 8% 8% Coromandel , Coromandel , CIFCL, 4214, 14% 11614, 39% 837, 28% CIFCL, 901, 30% CUMI , 2172, 7% EID , 168, 6% TII , 4451, 15% TII , 431, 14% CUMI , 36
Slide 15: Global Partner Today
Global Partner Today - Germany - U.K. Groupe Chimique Tunisien Sociedad Quimicay - Tunisia Minera - Chile - Japan - South Africa Yanmar - Japan Tsubamex company limited - Japan Mitsui & Co Ltd - Japan 15
Slide 16: Global Footprint
Global Footprint Canada UK Russia Holland China France California Middle Florida India East Tunisia Thailand Philippines Brazil Australia South Africa Argentina Chile Manufacturing Base Russia – Silicon carbide South Africa – Zirconia, Phosphoric acid Marketing & Distribution Base Tunisia – Phosphor
Slide 17: The Spirit of the Murugappa Group
The Spirit of the Murugappa Group 17
Slide 18: Social Responsibility
Social Responsibility AMM Foundation is a non-profit organization run by the Murugappa Group 4 Schools, a polytechnic; approximately 10,500 students 4 Hospitals - over 8 lakh patients treated last year Scholarships for needy meritorious students Scholarships for scholars for pursuing their professio
Slide 19: Tube Investments of India Limited
Tube Investments of India Limited 19
Slide 20: TII- A Conglomerate
TII- A Conglomerate • TI Cycles setup with BSA and Hercules 1949 Brands • Entered Precision tubes with 1955 incorporation of Tube Products of India • Entered Chains business with 1960 incorporation of TIDC 1965 • TI Metal Forming setup • Promoted Cholamandalam 1978 Investment and Finance Company Ltd
Slide 21: TII- A Conglomerate
TII- A Conglomerate • Indigenously manufactured 100 CC bike 1985 chain • Promoted Cholamandalam MS General 2001 Insurance 2010 • Acquired SEDIS, France 2012 • Acquired Shanthi Gears Ltd • Entered into Large Dia Tube manufacturing 2014 • Promoted TI Tsubamex Pvt Ltd • TI sold 14% stake in Cholamandal
Slide 22: Corporate Overview
Corporate Overview Manufacturing Key Financials (TII Consolidated) – As per I GAAP • Manufacturers of ₹ Cr. 2015-16* 2014-15 Growth • Tubes, Strips, & Tubular Components Revenue 7,991 9,722 -18% • Bicycles & Fitness Products, EBITDA (Incl Other Income) 928 1,259 -26% • Chains for Automobile sector &
Slide 23: Leadership Position- TII Standalone
Leadership Position- TII Standalone Largest Supplier of Steel Precision Second largest bicycle producer in Tubes (CDW) India Leader in Chains and Fine blanked Preferred supplier for metal components formed door frames 23
Slide 24: Directors and Management
Directors and Management Directors Mr. M. M. Murugappan Mr. L. Ramkumar Mr. N. Srinivasan Mr. S. Sandilya Mr. Pradeep V. Mr. C.K. Sharma Mr. Hemant Ms. Madhu Chairman Managing Director Bhide Nerurkar Dubhashi 24
Slide 25: Financial Strength
Financial Strength • Credit Rating CRISIL AA for long term CRISIL A1+ for short term Total Debt/Equity 1.20 Standalone Balance Sheet 1.10 1.10 1.08 Total Debt / Equity – 0.48 1.00 0.75 Long term Debt / Equity – 0.33 0.80 0.71 Financial Services 0.60 0.48 0.40 Capital adequacy ratio – 1
Slide 26: TII – Share Price and Shareholding Pattern
TII – Share Price and Shareholding Pattern Shareholding Pattern 100% 25.8% 25.5% 25.5% 25.4% 24.9% 80% 12.0% 12.1% 11.7% 11.1% 12.0% 60% 13.3% 13.6% 14.0% 14.7% 14.2% 40% 20% 48.8% 48.8% 48.8% 48.8% 48.8% 0% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Promoter FII DII Others Share Price Movement 30th Jun ’16
Slide 27: Cycles / Components
Cycles / Components Pioneers in Selling Cycling… not just cycles 27
Slide 28: Industry and Business Drivers
Industry and Business Drivers Industry Trade Sales – Q1 2016-17 Overall healthy growth in both 100% Standards as well as Specials segments 80% in the Quarter 59% 66% 60% Business Drivers 40% Large dealer network across India – over 20% 41% 34% 10,000 touch points across India 0% Industry TII
Slide 29: Key Success Factors
Key Success Factors • Our flagship brands “BSA” and “HERCULES” were recognised Brand equity for excellence at the World brand Congress in Singapore. Super Premium • Super premium has registered a growth of 27 % vis-à-vis Lifestyle Cycles same quarter last year Pioneer in Retail • BSA Go, BSA Hercule
Slide 30: Business Highlights – Q1 2016-17
Business Highlights – Q1 2016-17 TI Cycles new state-of-the-art manufacturing plant inaugurated at Rajpura, Punjab on 09th Jun 2016. Built with a capital expenditure of Rs.105 Crores, Plant has capacity to manufacture 2.5 lakhs cycles per month, with the ability to expand when required. Robust
Slide 31: Key Financial Trends
Key Financial Trends figures in ₹ Crores Sales 1600 1483 1400 1294 1273 1324 1196 1200 1000 800 600 425 400 200 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 YTD Note: Gross Sales include Excise Duty to comply with IND AS and figures has been suitably adjusted ROCE % - Based on End Capital Emplo
Slide 32: Key Financials – Q1 2016-17
Key Financials – Q1 2016-17 figures in ₹ Crores 2016-17 2015-16 Particulars % Growth Q1 Q1 Volumes Cycles (Lac nos) 13 13 -2% Gross Sales 425 427 0% EBITDA 26 31 -17% 6% 7% PBIT (Before Exceptional Item) 23 29 -21% 5% 7% APPLICATION OF FUNDS Net Fixed Assets (Incl. CWIP) 140 62 Net Working Capital 9
Slide 33: Engineering
Engineering Leader in CDW tubes for the Automotive industry 33
Slide 34: Business Overview
Business Overview Industry Business Mix Tubes: Significant Player in safety critical applications Non- 2 wheelers: Leader in Front Forks in India Auto 4 wheelers: Leader in many critical 22% applications such as side impact beam, steering columns etc. CRSS: Niche player in specialized prod
Slide 35: Key Success Factors
Key Success Factors • Market leader in High Quality & Safety critical CDW Tube CDW Tubes for 2W and 4W applications • Plants at 4 different locations, well placed in Multi Location all the regions Gearing for Non- • Large-dia plant gave a significant foray into Auto Non Auto segment CRSS • Continued
Slide 36: Business Highlights – Q1 2016-17
Business Highlights – Q1 2016-17 Highest PBT in a quarter ₹ 30.74 Cr against plan of ₹ 19.11 Cr Received Best supplier Award for Make in India (Localization) from M/s Spicer for Tiruttani Tubes Plant Highest Exports Sales TPI Tiruttani Plant Received Global Strategic Supplier Award from Show
Slide 37: Key Financial Trends
Key Financial Trends figures in ₹ Crores Sales 2000 1791 1638 1685 1710 1589 1500 1000 462 500 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 YTD Note: Gross Sales include Excise Duty to comply with IND AS and figures has been suitably adjusted ROCE % - Based on End Capital Employed ROCE % - Base
Slide 38: Key Financials - Q1 2016-17
Key Financials - Q1 2016-17 figures in ₹ Crores Particulars 2016-17 Q1 2015-16 Q1 % Growth Strips: (Volumes Tonnes) (Incl. Group) 20803 18454 13% Tubes: (Volumes Tonnes) 42532 36603 16% Domestic 38018 34343 11% Exports 4514 2261 100% Large Dia Tubes: (Volumes Tonnes) 3599 2154 67% Gross Sales (incl.
Slide 39: Metal Formed Products
Metal Formed Products Precision Value added Components 39
Slide 40: Business Overview
Business Overview Industry Business Mix Growth in 2W Scooters by 31% and motor cycles by 8% in YTD Jun ‘16 Passenger Vehicles industry grew by 4% 19% 11% YTD Jun ‘16 compared to same period last year and Commercial vehicle industry grown by 16% Business Drivers 70% Factories located closer
Slide 41: Key Success Factors
Key Success Factors • Market leader in Drive chain and Cam chain in Segment Leader OEM segment Multi Location • Strategically located plants near leading OEMs • Strong brand equity - “Diamond and Rombo” Brand Equity brands Quality • PPM less than customer target • Catering to major 2W OEMs and Tier
Slide 42: Business Highlights – Q1 2016-17
Business Highlights – Q1 2016-17 Awards received from Bajaj Auto Ltd for Fine Blanking Quality and TPM Excellence Market Leadership in Chains across segments Received Gold Award from Bajaj Auto Ltd for New business opportunities from Agri Fine Blanking quality performance Equipment OEMs Grow
Slide 43: Key Financial Trends
Key Financial Trends figures in ₹ Crores Sales 1200 962 994 1000 923 883 873 800 600 400 253 200 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 YTD Note: Gross Sales include Excise Duty to comply with IND AS and figures has been suitably adjusted ROCE % - Based on End Capital Employed ROCE % - Ba
Slide 44: Key Financials - Q1 2016-17
Key Financials - Q1 2016-17 figures in ₹ Crores Particulars 2016-17 Q1 2015-16 Q1 % Growth Doorframes (Lakh Sets) 2 1 2% Sections for railway wagons (Sets) 378 218 73% Coach-side/End wall (Sets) 38 19 100% Chains: Domestic (Lac ESS feet) 200 192 4% Exports (Lac ESS feet) 19 20 -4% Gross Sales (incl.
Slide 45: Metal Formed Products (Contd.)
Metal Formed Products (Contd.) Leading French Manufacturer of Industrial Chains 45
Slide 46: Business Overview
Business Overview Sales Mix FY ‘15 F C 10 – Holding company of Sedis Two plants in France Rest of World, 32% Five global patents Leader in special and engineering France & Italy, class chains 68% Range of industries catered to Waste Treatment / Car / escalator / Key Products textiles / f
Slide 47: Key Financial Trends
Key Financial Trends figures in K Euro Sales 35000 33256 33265 31800 32668 32804 30000 25000 20000 15000 10000 7616 5000 0 2011 2012 2013 2014 2015 2016 Q1 ROCE %- Based on End Capital Employed 20% 15% 15% 10% 5% 4% 4% 1% 0% 0% -2% -5% 2011 2012 2013 2014 2015 2016 Q1 47
Slide 48: Key Financials - Q1 2016
Key Financials - Q1 2016 figures in K Euro Particulars 2016 Q1 2015 Q1 Sales 7616 8316 EBITDA 229 450 3% 5% PBT -105 30 -1% 0% PAT -35 57 -0% 1% APPLICATION OF FUNDS Net Fixed Assets (Incl. CWIP) 6500 6330 Net Working Capital 9189 9031 Investments 541 685 Total Capital Employed 16230 16046 Sales/NWC
Slide 49: Gears & Gear Products
Gears & Gear Products Shanthi Gears (SGL) - Strong Brand in Industrial Gears 49
Slide 50: Business Overview
Business Overview Shareholding Pattern Began operations in 1969 at Coimbatore 100% 22.8% 22.7% 22.5% 24.20% 24.8% Leader in custom-made gears & loose 80% 7.0% 7.2% 7.4% 5.70% 5.1% gears 0.1% 0.0% 0.0% 0.0% 0.0% 60% ~70% of revenues come from 40% customized products 70.1% 70.1% 70.1% 70.1% 70.1
Slide 51: Business Highlights – Q1 2016-17
Business Highlights – Q1 2016-17 Increased enquiry activities from repeat customers and railways Continuous drive on cost efficiency Significant growth in Service Business Regional Customer Connect Program activated Participation in Seminars and Exhibition forums 51
Slide 52: Key Financial Trends
Key Financial Trends figures in ₹ Crores Sales 200 187 179 159 167 165 150 100 46 50 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 YTD Note: Gross Sales include Excise Duty to comply with IND AS and figures has been suitably adjusted ROCE % - Based on End Capital Employed 18% 16% 16% 14% 12% 10%
Slide 53: Key Financials – Q1 2016-17
Key Financials – Q1 2016-17 figures in ₹ Crores Particulars 2016-17 Q1 2015-16 Q1 % Growth Gross Sales 46 41 11% EBITDA 8 4 92% 18% 11% PBIT 7 2 170% 14% 6% PBT 7 2 170% 14% 6% PAT 5 1 254% 11% 3% APPLICATION OF FUNDS Net Fixed Assets (Incl. CWIP) 77 82 Investments 120 106 Net Working Capital 89 85
Slide 54: Financial Services
Financial Services 36 Cholamandalam Investment and Finance Company Ltd. (CIFCL) Financing your Assets…since 1978 54
Slide 55: Business Overview
Business Overview Shareholding Pattern Established in 1978, one of India’s leading NBFC’s, focused in the rural and semi-urban sector with a market capitalization of INR 148 bn^ Presence across vehicle finance, business finance, home equity loans, stock broking and distribution of financial prod
Slide 56: Business Strengths
Business Strengths • Founded in 1978, India’s leading NBFC, Focused in Rural and semi urban sector Positioning with Market cap of INR 148 bn^ • Part of the INR 295 bn Murugappa Group – founded in 1900, one of India’s Exceptional Lineage leading business conglomerate Robust Sector • Presence across v
Slide 57: CIFCL – Standalone Performance – Q1 2016-17
CIFCL – Standalone Performance – Q1 2016-17 57
Slide 58: Key Financial Trends
Key Financial Trends figures in ₹ Crores Disbursements Total Income from Operations 20000 5000 16380 4214 16000 4000 3715 13114 12808 3279 12118 12000 3000 2568 8888 8000 2000 1779 4561 1115 4000 1000 0 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 59: Key Consolidated Financials – Q1 2016-17
Key Consolidated Financials – Q1 2016-17 figures in ₹ Crores Particulars 2016-17 Q1 2015-16 Q1 %Growth Disbursements 4561 3508 30% Total Income from Operations 1115 990 13% % of Total Income 24% 28% PBT 256 172 49% % of Total Income 23% 17% PAT 167 111 50% % of Total Income 15% 11% ROTA% (PBT) 3.80%
Slide 60: Insurance
Insurance Chola ®MS
Slide 61: Business Overview
Business Overview Share Holding • Among the fastest growing general insurance companies in India • 7th largest private general insurance company in 40% India 60% • Product basket comprises accident, engineering, health, liability, marine, motor, property, travel TII Mitsui Sumitomo and rural insuran
Slide 62: Business Strengths
Business Strengths Robust Underwriting Strong Distribution Capability and Tailor Made Products Partners operating efficiencies Strong Chola High Rural State of the Art Synergies Penetration Technology 62
Slide 63: Business Highlights – Q1 2016-17
Business Highlights – Q1 2016-17 • GWP - growth of 36% over YTD Jun ’15 • PBT grown by 83% over YTD Jun’15 • Investment grew by 22% compared to Jun’15 • Management Expenses as percentage of GWP remains flat compared to previous years. • Retail Contribution to total GWP raised from 82% in Jun’15 to 9
Slide 64: Key Financials Q1 2016-17
Key Financials Q1 2016-17 figures in ₹ Crores 2016-17 2015-16 Particulars % Growth Q1 Q1 Gross Written Premium (Incl. 652 480 36% RI Accept) Net Written Premium 496 379 31% PBT 71 39 83% PAT 49 26 85% Total Investment 4035 3318 22% Combined Ratio (CoR%) - Excl 103% 107% IMTPIP Investment Yield % 8.8
Slide 65: Company Financials
murugappa @ Company Financials 65
Slide 66: Performance Trends
Performance Trends figures in ₹ Crores Gross Sales PBIT and PBIT% (Before Exceptional Items) 5000 4041 350 322 10% 3916 4000 3664 3642 3610 300 9% 276 9% 255 2648% 259 8% 250 8% 3000 7% 7% 200 6% 2000 150 4% 1098 88 1000 100 2% 50 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 0 0% YTD 2011-12 20
Slide 67: Performance Trends
Performance Trends Earnings Per Share (Basic)- In Rs Book Value Per Share – In Rs 45.00 120.00 107.76 110.06 39.08 40.00 35.00 100.00 30.00 80.00 66.29 70.57 25.00 59.84 63.28 20.00 60.00 15.00 9.69 40.00 10.00 5.58 5.04 6.46 5.00 2.26 20.00 0.00 0.00 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Slide 68: Performance Trends
Performance Trends ROCE% - Based on End Capital Employed 18% 16% 16% 14% 11% 12% 10% 10% 10% 9% 8% 8% 6% 4% 2% 0% 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 YTD ROCE% - Based on Average Capital Employed 18% 17% 16% 14% 12% 12% 11% 10% 10% 9% 9% 8% 6% 4% 2% 0% 2011-12 2012-13 2013-14 2014-15 201
Slide 69: Key Standalone Financials – Q1 2016-17
Key Standalone Financials – Q1 2016-17 figures in ₹ Crores Q1 Q1 Particulars 2016-17 2015-16 Gross Sales / Income from Operations 1098 1032 Growth % 6% 3% Total Income from Operations 1146 1076 Growth % 7% 3% EBITDA 106 86 % to Gross Sales 10% 8% PBIT 88 62 % to Gross Sales 8% 6% Profit Before Tax 6
Slide 70: Corporate Office
Corporate Office: Tube Investments of India Ltd. "Dare House", 234 N S C Bose Road, Chennai- 600 001, India. +91 44 4217 7770 +91 44 4211 0404 info@tii.murugappa.com 70
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