Bharat Forge Ltd · NSE:BHARATFORG
Bharat Forge — Investor Presentation (July 2014)
19 slides from Bharat Forge's investor presentation, July 2014
Slide 1: Investor Presentation July 2014
INVESTOR PRESENTATION JULY 2014
Slide 2: Bharat Forge Limited - A Global Industrial Conglomerate
Bharat Forge Limited - A Global Industrial Conglomerate Bharat Forge: Profile Global Forging Conglomerate Consolidated Revenues: ~ US$ 1.2 bn. 8 Manufacturing locations across 3 countries. Geography Capacity (TPA) Global Marquee Customer base of more than 35 OEM’s & 385,000 Tier- 1 companies a
Slide 3: Highlights for year 2013-14: standalone operations
Highlights for year 2013-14 : standalone operations Strong performance driven by market share increase across segments & geographies. Margin expansion with increase of 210 bps YOY during the year largely driven by higher capacity utilization growth in export market critical & technology di
Slide 4: Standalone Results – FY 2014
Standalone Results – FY 2014 (USD Million) Particulars FY14 FY13 Growth % Shipment Tonnage 174,808 172,030 1.6% Domestic Sales 259 261 -0.9% Export Sales 308 264 16.5% Total Revenue 567 525 7.9% EBITDA 144 122 17.7% EBITDA % 25.4% 23.3% PBT 99 74 35.3% PAT 67 51 30.9% 4
Slide 5: Standalone Financial Ratios
Standalone Financial Ratios (USD Million) Particulars 31 March 2014 31 March 2013 Debt 332 312 Equity 449 385 Cash 166 109 Particulars 31 March 2014 31 March 2013 Debt Equity Ratio 0.74 0.81 Debt Equity Ratio (Net) 0.37 0.53 Return on Capital Employed 16% 14% Return on Net Worth 16% 14% 5
Slide 6: Consolidated Results – FY 2014
Consolidated Results – FY 2014 (USD Million) Particulars FY14 FY13 Growth % Total Income 1,119 861 30.0% EBITDA 174 134 30.1% EBITDA % 15.5% 15.5% PBT 104 69 49.9% PAT after Minority Interest 87 51 71.7% Loss from Discontinued operations (4) (10) 6 Profit After Tax 83 41 101.3%
Slide 7: Consolidated Financial Ratios
Consolidated Financial Ratios (USD Million) Particulars 31 March 2014 31 March 2013 Debt 427 464 Equity 447 376 Cash 199 157 Particulars 31 March 2014 31 March 2013 Debt Equity Ratio 0.95 1.23 Debt Equity Ratio (Net) 0.50 0.81 Return on Capital Employed 15% 12% Return on Net Worth 18% 12% 7
Slide 8: Geographical Breakup - Standalone
Geographical Breakup - Standalone De-risked business model yielding good results FY 2014 4% India 4% FY 2009 23% 24% India US US 46% Europe 51% Europe Asia Pac 21% Asia Pac 27% Particulars (USD Million) FY 2014 FY 2009 India 259 176 US 153 73 Europe 131 82 Asia Pac 24 12 8
Slide 9: Segmental Breakup… Increasing share of Industrial
Segmental Breakup… Increasing share of Industrial Expanded addressable market segment & New customer additions 8% FY 2014 20% CV Chassis 14% 20% FY 2009 CV Chassis CV Engines CV Engines 41% Non Auto 32% Non-Auto PV 34% PV 31% Particulars (USD Million) FY 2014 FY 2009 CV Chassis 103 62 CV Engines 1
Slide 10: State of Market: Truck & Car
State of Market: Truck & Car NORTH AMERICA EUROPE CHINA Strong order inflow, positive Forecast flat on YOY basis. Euro Truck market weak – sentiment for future. Overall V transition issues at large. industrial sentiment is weak. positive outlook for CY 14 & 15. Mixed sentiment. BFL well Car sector i
Slide 11: Passenger Cars.. New order wins & Increasing product portfolio
Passenger Cars.. New order wins & Increasing product portfolio Current Scenario: Passenger car business account for 16% of consolidated revenues but less than 10% of standalone sales . Actions Taken: Have won 4 export orders from Global OEM for supply of engine components. Working on many more deals
Slide 12: Commercial Vehicles… More Penetration & New Customer
Commercial Vehicles… More Penetration & New Customer Current Scenario: Commercial Vehicles has been the mainstay for the company with CV(Engine & Chassis) accounting for ~50% of sales Actions Taken: LTA’s with existing customer in place to maintain current share of business. New products introduced
Slide 13: New Verticals… Greater Focus… India’s Growth
New Verticals… Greater Focus… India’s Growth Industrial Business Energy Transportation Construction & Mining Oil & Gas Aerospace Metal & Mining Power Construction Locomotive General Thermal Hydro Wind Engineering Marine Infrastructure Supply Business 13
Slide 14: Progression of Industrial Business
Progression of Industrial Business FY 2004 FY 2009 FY 2014 21% Non-auto Non-auto Non-auto Auto 33% Auto 41% Auto 59% 67% 79% US$ 27 million US$ 100 million US$ 213 million Development of product “first time right” using in house technology & 14 capabilities and higher value addition US$ = Rs 60
Slide 15: State of Industry: Industrial
State of Industry: Industrial Construction, Mining & Oil & Gas Other Sectors… Power-Gen • Shale gas & oil • Construction market • Locomotive sector is exploration very strong in demand seeing slow stable N. America. Market improvement. • Wind industry holding opening in UK & E. • Mining remains ebbe
Slide 16: Industrial Sector
Industrial Sector Current Scenario: BFL’s concerted efforts in industrial is visible with the segment accounting for more than 40% of standalone revenues as against ~30% 5 years ago. Actions Taken: Concerted thrust on new product development, enhancing market share & value addition with existing cus
Slide 17: Asset Light Capex: Changing the Approach
Asset Light Capex: Changing the Approach CUSTOMER PRODUCT CAPEX PEOPLE PRODUCT CAPEX PEOPLE CUSTOMER 17
Slide 18: Strategy going forward
Strategy going forward Focus on increasing value No major capex in the past add & new product 12 -15 months. development using Technology & innovation Become a net debt free company in 2 years & Focus on generating free Create value for cash flow shareholders FOCUS ON EFFICIENT & JUDICIOUS ALLOCATIO
Slide 19: Thank You
Thank You < KALYANI 19