Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Escorts — Q2 FY21 Earnings Presentation
44 slides from Escorts Kubota's earnings presentation, Nov 2, 2020
Slide 1: Covering letter to stock exchanges
c ESCORTS November 2, 2020 BSE Limited National Stock Exchange of Delhi Stock Exchange Phiroze Jeejeebhoy Towers, India Limited Limited Dalal Street, Exchange Plaza, DSE House, 3/1, Mumbai -400 051 Sandra Kurla Complex, Asaf Ali Road, Sandra East, New Delhi -110 002 Mumbai -400 051 BSE-500495 NSE -
Slide 2: Q2 FY21 Earning Presentation
Q2 FY21 | EARNING PRESENTATION 2nd November 2020 BSE: 500495 | NSE: ESCORTS Copyright @ Escorts Ltd. ESCORTS LIMITED 1
Slide 3: Contents
Contents • Escorts Ltd. An Overview • Q2 FY21 at a Glance (Standalone) • YoY • QoQ • H1 FY21 at a Glance (Standalone) • Credit Rating & Debt Profile • Management Message • Segmental Highlights • EAM • ECE • RED • Shareholding pattern • Q2 FY21 at a Glance (Consolidated) • H1 FY21 at a Glance (Consol
Slide 4: Escorts Limited: An Overview
Escorts Limited: An Overview India's leading engineering conglomerates and for over Seven decades it has helped accelerate India’s socio-economic development through its presence across the high growth sectors of • Agri-machinery Escorts • Construction & Material Handling Equipment Agri Machinery (E
Slide 5: Standalone Q2FY21 YoY at a Glance
Standalone Q2FY21 YoY at a Glance Escorts Ltd. Particulars (YoY) Q2FY21 Q2FY20 Variance Domestic Tractor Market Share 9.8% 11.2% -144 bps Revenue ₹ 1,639.7 Cr. ₹ 1,323.9 Cr. 23.9% Material Cost 63.6% 67.0% -345 bps Manpower Cost 7.7% 9.5% -181 bps EBIDTA ₹ 300.9 Cr. ₹ 126.7 Cr. 137.4% EBIDTA Margin
Slide 6: Standalone Q2FY21 Highlights (YoY)
Standalone Q2FY21 Highlights (YoY) •EAM at 24,441 • Q2: ₹1,639.7 Cr. EBIDTA Volume & Sales • Q2FY21 Revenue Profit •YoY up by 23.8% • YoY up by 23.9% • Q2: ₹ 300.9 Cr. • Margin at 18.3% • PAT: ₹ 229.9 Cr. Division Wise Revenue • YoY margin up by 878 •ECE at 821 Split bps • Margin at 14.0%. •YoY down
Slide 7: YoY Revenue grew by 25.4%; EBIT up by 8.9%
YoY Revenue grew by 25.4%; EBIT up by 8.9% ₹ Cr. Q2 Revenue Key Highlights (YoY) • Tractor Sales up by 23.8% at 24,441 units • Construction Sales down by 13.1% at 821 units • Railway division sale up by 26.4% ₹ Cr. Q2 EBIT Key Highlights • Operating leverage in both tractor and railway equipment div
Slide 8: Standalone Q2FY21 QoQ at a Glance
Standalone Q2FY21 QoQ at a Glance Escorts Ltd. Particulars Q2FY21 Q1FY21 Variance Domestic Tractor Market Share 9.8% 10.7% -92 bps Revenue ₹ 1,639.7 Cr. ₹ 1,061.6 Cr. 54.5% Material Cost 63.6% 67.1% -358 bps Manpower Cost 7.7% 11.9% -423 bps EBIDTA ₹ 300.9 Cr. ₹ 119.6 Cr. 151.5% EBIDTA Margin 18.4%
Slide 9: Standalone Q2FY21 Highlights (QoQ)
Standalone Q2FY21 Highlights (QoQ) •EAM at 24,441 • Q2: ₹1,639.7 Cr. EBIDTA Volume & Sales • Q2FY21 Revenue Profit •QoQ up by 34.7% • QoQ up by 54.5% • Q2: ₹ 300.9 Cr. • Margin at 18.4% • PAT: ₹ 229.9 Cr. Division Wise Revenue • QoQ margin up by 708 •ECE at 821 Split bps • Margin at 14.0%. •QoQ up b
Slide 10: QoQ Revenue Grew by 54.5%; EBIT up by 152.9%
QoQ Revenue Grew by 54.5%; EBIT up by 152.9% ₹ Cr. Q2 Revenue Key Highlights (QoQ) • Tractor Sales up by 34.7% at 24,441 units • Construction Sales up by 250.9% at 821 units • Railway division sale up by 191.8% ₹ Cr. Q2 EBIT Key Highlights • Operating leverage across all division • NPD contribution
Slide 11: Standalone H1FY21 YoY at a Glance
Standalone H1FY21 YoY at a Glance Escorts Ltd. Particulars (YoY) H1FY21 H1FY20 Variance Domestic Tractor Market Share 10.2% 10.9% -68 bps Revenue ₹ 2,701.3 Cr. ₹ 2,746.8 Cr. -1.7% Material Cost 65.0% 68.0% -307 bps Manpower Cost 9.3% 9.0% 29 bps EBIDTA ₹ 420.5 Cr. ₹ 269.1 Cr. 56.2% EBIDTA Margin 15.
Slide 12: Standalone H1FY21 Highlights (YoY)
Standalone H1FY21 Highlights (YoY) •EAM at 42,591 • H1: ₹ 2,701.3 Cr. EBIDTA Volume & Sales • H1FY21 Revenue Profit •YoY up by 4.4% • YoY down by 1.7% • H1: ₹ 420.5 Cr. • Margin at 15.6% • PAT: ₹ 322.1 Cr. Division Wise Revenue • YoY margin up by 577 •ECE at 1,055 Split bps • Margin at 11.9%. •YoY d
Slide 13: YoY Revenue de-grew by 1.7%; EBIT up by 69.1%
YoY Revenue de-grew by 1.7%; EBIT up by 69.1% ₹ Cr. H1 Revenue Key Highlights (YoY) • Tractor Sales up by 4.4% at 42,591 units • Construction Sales down by 47.6% at 1,055 units • Railway division sale down by 12.1% ₹ Cr. H1 EBIT Key Highlights • Operating leverage in both tractor division. • NPD con
Slide 14: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- AA Rating (₹ Crs.) 600 553 436 480 361 263 50 277 7 0 120.0 111.0 Rating Upgrade by ICRA AA with 500 100.0 96.0 Stable outlook 400 290 80.0 Rating reaffirmed by 206 302 300 50.0 CRISIL to AA- 57.0 60.0 Outlook Changed fro
Slide 15: Management Message
Management Message Nikhil Nanda, Chairman and Managing Director “The Agri sector has been on an unprecedented boom. Maintaining highest safety measures and working closely with our partners to work around supply chain challenges, the demand for our tractors has so far outpaced our supplies. We think
Slide 16: Segment Performance: EAM
Segment Performance : EAM Spreading Prosperity…..Improving Lives Copyright @ Escorts Ltd. ESCORTS LIMITED 15
Slide 17: Domestic Tractor Industry Overview
Domestic Tractor Industry Overview In Lakh Quarterly Half year 2.36 4.02 3.59 1.67 1.65 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 • In Q2FY21 on Y-o-Y domestic Industry up by ~41.4%. • Industry in Q2FY21 on Y-o-Y basis in North and central region grew by 30%, whereas industry grew by 56% in South and west
Slide 18: Q2FY21 Segment Highlights: EAM
Q2FY21 Segment Highlights : EAM • Domestic at • Q2: ₹ 264.8 Cr. Volume Revenue •Market Share at EBIT Domestic Market Share 9.8% • At ₹ 1,322.2 Cr. 23,156 • YoY up by 158.3% • YoY up by 23.2% •YoY down by 144 • YoY up by 32.8% • QoQ up by 92.1% • QoQ up by 30.9% bps • QoQ up by 38.7% •QoQ down by 92
Slide 19: H1FY21 Segment Highlights: EAM
H1FY21 Segment Highlights : EAM • Domestic at Volume Revenue •Market Share at EBIT Domestic Market Share 10.2% • At ₹ 2,275.7 Cr. 40,846 • H1: ₹ 402.6 Cr. • YoY up by 5.0% • YoY up by 9.1% • YoY up by 81.8% •YoY down by 68 bps • Export at 1,745 • Margin at 17.7% • YoY down by 7.6% •Farmtrac : Powert
Slide 20: Strategic Collaboration with Kubota Update
Strategic Collaboration with Kubota Update Manufacturing JV (50,000 • Contract Manufacturing for Escorts and Kubota Product capacity) • Production started for Kubota tractors in Q2FY21 • Escorts Products offering under Joint Branding “E Kubota” to Kubota Global Channel for Global market Escorts Prod
Slide 21: Segment Performance: ECE
Segment Performance : ECE PREFERRED PARTNER IN NATION BUILDING Copyright @ Escorts Ltd. ESCORTS LIMITED 20
Slide 22: Served-Construction Equipment Industry Overview
Served-Construction Equipment Industry Overview In ‘000s Quarterly Half Year 13.0 20.7 17.3 9.9 4.3 Q2FY20 Q1FY21 Q2FY21 H1FY20 H1FY21 • Served industry (Backhoe Loaders, Pick n carry crane and Compactors) went up by ~31% in Q2FY21 wrt to LY. • In Q2FY21 BHL industry up by 44%, compactor up by 47% a
Slide 23: Q2FY21 Segment Highlights: ECE
Q2FY21 Segment Highlights : ECE • ECE at 821 • Q2: ₹ 156.9 • Q2: ₹ 2.7 Cr. Volume Revenue • Q2: Carne market Served industry Market Share EBIT • YoY down by 13.1% Share 36.5% Cr. • QoQ up by 250.9% • YoY down by ~347 • YoY down by 21.9% bps • QoQ up by 199% • Key Highlight • Margin at 1.7% •YoY down
Slide 24: H1FY21 Segment Highlights: ECE
H1FY21 Segment Highlights : ECE • ECE at 1,055 • H1: ₹ 209.4 • H1: ₹ (14.1) Volume Revenue • H1: Carne market Served industry Market Share EBIT • YoY down by 47.6% Share 37.1% Cr. Cr. • YoY down by ~243 • YoY down by 49.3% bps • Key Highlight •Revenue Break up • Served industry up Product wise • Mar
Slide 25: Segment Performance: RED
Segment Performance : RED ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT Copyright @ Escorts Ltd. ESCORTS LIMITED 24
Slide 26: Q2FY21 Segment Highlights: RED
Q2FY21 Segment Highlights : RED • As of Sept’2020 • Q2: ₹ 160.2 Cr. Order Book Revenue EBIT more than ₹ 350 • YoY up by 26.4% • Q2: ₹ 32.5 Cr. • QoQ up by 191.8% Cr. • YoY up by 34.3% •Execution time • QoQ up by2188.8% 6~8 Months • Breakup • Key Highlight • Due to unprecedented COVID-19 pandemic • M
Slide 27: H1FY21 Segment Highlights: RED
H1FY21 Segment Highlights : RED • As of Sept’2020 • H1: ₹ 215.1 Cr. Order Book Revenue EBIT more than ₹ 350 • YoY down by 12.1% • H1: ₹ 33.9 Cr. Cr. • YoY down by 29.1% •Execution time 6~8 Months • Breakup • Key Highlight • Margin at • Due to unprecedented COVID-19 pandemic 15.8% situation during fi
Slide 28: Shareholding Pattern
↑ SHAREHOLDING PATTERN 9.09% 30.66% 30.32% 27.99% 26.93% 21.97% 26.58% 26.92% 29.26% 30.32% 30.12% 2.51% 2.51% 2.51% 2.51% 2.23% 40.25% 40.25% 40.25% 40.25% 36.59% Sept'2019 Dec'2019 Mar'2020 June' 2020 Sept' 2020 Promoters + Trust Non Promoter-Non Public Institutions* Public Kubota Corporation * FP
Slide 29: Consolidated Q2 (YoY) at a Glance
Consolidated Q2FY20 (YoY) at a Glance Escorts Ltd. Particulars (YoY) Q2FY21 Q2FY20 Variance Revenue from operations ₹ 1,654.2 Cr. ₹ 1,333.8 Cr. 24.0% Material Cost 63.5% 66.8% -327 bps Manpower Cost 7.8% 9.6% -181 bps EBIDTA ₹ 298.1 Cr. ₹ 124.9 Cr. 138.7% EBIDTA Margin 18.0% 9.4% 865 bps PAT ₹ 227.2
Slide 30: Consolidated H1 (YoY) at a Glance
Consolidated H1FY20 (YoY) at a Glance Escorts Ltd. Particulars (YoY) H1FY21 H1FY20 Variance Revenue from operations ₹ 2,743.4 Cr. ₹ 2,774.2 Cr. -1.1% Material Cost 64.9% 67.8% -290 bps Manpower Cost 9.4% 9.1% 28 bps EBIDTA ₹ 420.0 Cr. ₹ 267.3 Cr. 57.2% EBIDTA Margin 15.3% 9.6% 568 bps PAT ₹ 319.8 Cr
Slide 31: Standalone Results
Standalone Results Escorts Limited Statement of Standalone Unaudited Financial Results for the quarter and six months ended September 30, 2020 Rs. in Crores Standalone results 3 Months ended Preceding 3 Corresponding 3 For the Six Months e nde d For the year months ended months ended in ended Partic
Slide 32: Standalone Results: Assets and Liabilities
Standalone Results Statement of assets and liabilities Rs. in Crores Particulars Standalone Particulars Standalone Unaudited Audited Unaudited Audited As at As at As at As at 30-09-2020 31-03-2020 30-09-2020 31-03-2020 ASSETS EQUITY AND LIABILITIES 1 Non-current assets 1 Equity a) Property, plant an
Slide 33: Standalone Results: Segment Revenue and Results
I Standalone Results ESCORTS LIMITED Segment wise r-evenue, r-esulls and capital err,.:>l<>yed for- tt'le quarter- and six rnontt'ls ended September- 30, 2020 c ESCORTS Standalone 3 Months ended P.-eceding 3 Co.-.-esponding 3 F<>r- ti.:!- six m <>ntt-.s. enc:ted SI_ months ended months ended in Part
Slide 34: Standalone Results: Segment Liabilities
Standalone Results Rs. in Crores Standalone 3 Months ended Preceding 3 Corresponding 3 For the six months ended For the year ended Sl. months ended months ended in Particulars the previous year No. 30-09-2020 30-06-2020 30-09-2019 30-09-2020 30-09-2019 31-03-2020 Unaudited Unaudited Unaudited Unaudi
Slide 35: Standalone Cash Flow Statement
Standalone Results Escorts Limited Unaudited standalone statement of cash flow for the six months ended September 30, 2020 (₹ crores) Six months ended Six months ended A Cash flow from operating activities 30 Sep 2020 30 Sep 2019 30 Sep 2020 30 Sep 2019 B Cash flows from investing activities Profit
Slide 36: Consolidated Results
Consolidated Results Copyright @ Escorts Ltd. ESCORTS LIMITED 35
Slide 37: Consolidated Results
Consolidated Results Rs. in Crores 3 Months ended Preceding 3 Corresponding 3 For the six months ended For the year ended months ended months ended in the previous year 30/09/2020 30/06/2020 30/09/2019 30/09/2020 30/09/2019 31/03/2020 Unaudited Unaudited Unaudited Unaudited Unaudited Audited Other c
Slide 38: Consolidated Results: Assets and Liabilities
Consolidated Results Statement of assets and liabilities Rs in Crores Particulars Particulars Consolidated Consolidated As at 30/09/2020 As at 31/03/2020 As at 30/09/2020 As at 31/03/2020 Unaudited Audited Unaudited Audited ASSETS EQUITY AND LIABILITIES 1 Non-current assets 1 Equity a) Property, pla
Slide 39: Consolidated Results: Segment Revenue and Results
Consolidated Results ESCORTS LIMITED Segment wise revenue, results and capital employed for the quarter and six months ended September 30, 2020 Rs. in Crores Consolidated 3 Months ended Preceding 3 months Corresponding 3 For the six months ended For the year Sl. Particulars ended months ended in the
Slide 40: Consolidated Results: Segment Liabilities
Consolidated Results Rs. in Crores Consolidated 3 Months ended Preceding 3 months Corresponding 3 For the six months ended For the year Sl. Particulars ended months ended in the ended No. previous year 30/09/2020 30/06/2020 30/09/2019 30/09/2020 30/09/2019 31/03/2020 Unaudited Unaudited Unaudited Un
Slide 41: Consolidated Cash Flow Statement
Consolidated Results Escorts Limited Unaudited consolidated Cash Flow Statement for the six months ended September 30, 2020 (₹ crores) Six months ended Six months ended 30 Sep 2020 30 Sep 2019 30 Sep 2020 30 Sep 2019 A Cash flow from operating activities B Cash flows from investing activities Profit
Slide 42: Narrations
Narrations • EAM – Escorts Agri Machinery • ECE – Escorts Construction Equipment • RED – Railway Equipment Division • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • Q2FY21 – Represents the 3 months period from 1st July 2020 to 30th September 2020. • Q1FY21 – Represe
Slide 43: Safe Harbor
SAFE HARBOR Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im
Slide 44: Thank You
Thank You Copyright @ Escorts Ltd. ESCORTS LIMITED 43