Slide 1: Cover letter to stock exchanges
Divgi TorqTransfer Systems Limited Divgi TorqTransfer Systems CIN: L32201MH1964PLC013085 75, General Block, MIDC, Bhosari, Pune 411 026, India Tel: (+91-20) 63110110 Web: www.divgi-tts.com Ref.: DTTS/Sec/24-25/71 November 16, 2024 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroz
Slide 2: Investor Presentation Q2 & H1 FY25
Divgi TorqTransfer Systems Limited Investor Presentation Q2 & H1 FY25
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Divgi TorqTransfer Systems Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe fo
Slide 4: What we achieved in H1 FY25
Achievements in H1 FY25 What we achieved in H1 FY25 • In Q2 we improved profitability for transfer case business. This will continue for 2nd half of this financial year • Also; were able to regain our EBITDA margin profile trajectory of 27%+ in Q2FY25 and we expect to stay at these levels for the qu
Slide 5: Q2 & H1 FY25 Result Highlights
Q2 & H1 FY25 Result Highlights 4
Slide 6: Revenue Walk
Revenue-Walk Transfer Case E-Gear Drive Components Other Business Rs. In Crores -29% +25% +56% NexTrac Q2 81 14 23 ALH Q1 Synchro 11 42 58 6 12 After Market 14 Tooling & Other Operating 28 7 10 -24% 39 8 11 19 29 7 1 4 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 14 2 2 • Witnessed strong demand for th
Slide 7: Result Snapshot H1FY25
Result Snapshot H1FY25 Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) -12.2% -17.3% -34.9% • Total Income: Transfer case lower 135 37 21 volume impacted revenue for 119 H1FY25 which was to some extent 31 14 was compensated by EV and Component business, which witnessed bo
Slide 8: Result Snapshot Q2FY25
Result Snapshot Q2FY25 Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) +19.4% 74 -0.3% 19 11 +30.0% 17 59 59 14 8 6 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 EBITDA (%) PAT (%) 28.0% 14.6% 25.9% 13.2% 23.4% 10.0% Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2F
Slide 9: Adjusted Financial Snapshot
Adjusted Financial Snapshot As Reported Adjusted for like-to-like comparison Particulars (Rs. In Cr.) H1FY25 H1FY24 Y-o-Y Particulars (Rs. In Cr.) H1FY25 H1FY24 Y-o-Y Total Income 118.6 135.1 -12.3% Total Income 118.6 132.5 -10.5% EBITDA 30.5 36.9 -17.3% EBITDA 30.5 34.2 -11.0% EBITDA Margin (%) 25.
Slide 10: Management Commentary
Management Commentary • H1FY25: • Q1, we saw slowdown in our both core businesses Transfer case and EV transmission. Transfer case was impacted due to lower volume offtake as low-cost variant without 4WD was launched by our large OEM customer. In Q2, we realigned our production line to new upcoming
Slide 11: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. In Cr.) Q2FY25 Q2FY24 Y-o-Y Q1FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y Revenue From Operations 54.0 68.7 54.2 108.2 125.3 Other Income 5.3 4.8 5.1 10.4 9.8 Total Income 59.2 73.5 -19% 59.4 0% 118.6 135.1 -12% Raw Materials 21.6 28.5 23.5 45.1 50.5 Gross Profit 37.6 4
Slide 12: Balance Sheet
Balance Sheet Particulars (Rs. In Cr.) Sept-24 Mar-24 Particulars (Rs In Cr.) Sept-24 Mar-24 Assets Equity & Liabilities Non-Current Assets Total Equity Property, plant and equipment 219.4 211.7 Equity Share Capital 15.3 15.3 Capital work-in-progress 23.3 25.4 Other Equity 570.8 565.1 Right-of-use a
Slide 13: Cashflow
Cashflow Particulars (Rs. In Cr.) Sept-24 Sept-23 Profit Before Tax 18.6 28.5 Adjustments for: Non -Cash Items / Other Investment or Financial Items 2.0 (1.4) Operating profit before working capital changes 20.6 27.1 Changes in working capital 12.2 (11.3) Cash generated from Operations 32.8 15.9 Dir
Slide 14: Bharat Mobility Global Expo 2025
Bharat Mobility Global Expo 2025 Bharat Mobility Global Expo 2025 Inspired by the 7Cs mobility vision set by the Prime • We will be present at Bharat Mobility Global Expo 2025 Minister, the global expo celebrates India’s growing Auto Expo – The Components Show. role as a global hub for mobility, sho
Slide 15: Way Forward
Way Forward 14
Slide 16: Near term Growth Outlook
Near term Growth Outlook EV Transmission* Export Business Core Product Portfolio* • Ramping up production for • Further strengthening relationships with • Working with OEM to normalize the existing variants Tier I suppliers by expanding the product production loss of transfer case offerings from two
Slide 17: Long Term Growth Outlook based on Life cycle Revenues
Long Term Growth Outlook based on Life cycle Revenues Core & Other Product EV Transmission* Export Business Portfolio* Product: Manual Transmission Product: Product: Components Business BEV System & Components Transfer Case Export Next generation Business Components Business transmission products (H
Slide 18: Growth Strategy
Growth Strategy Application led Improve market share Geographic Customer diversification through and wallet share with diversification diversification new product offerings existing customers Next generation EV transmission transmission products • Will further strengthen our • Increase business with
Slide 19: Next generation transmission products update
Next generation transmission products update Automobile Industry Automobile Players DTTS • Challenges witnessed over the last 5 years: • Companies continuously working and • Being ancillary supplier to OEMs, need to • Changing customer expectations (from Mass adopting innovative solutions react quic
Slide 20: About Divgi
About Divgi 19
Slide 21: Company Overview
Company Overview 1964 50+ 4 Our Valued Customers Incorporated Years of Manufacturing experience facilities Vision To be recognized as a world-class Indian brand in automotive drivetrain components and systems Strategies Product Leadership Total Income* EBITDA* PAT* • Technology-Led Innovation • Cont
Slide 22: Journey so far
Journey so far 2023 - Listing 2018 • Awarded component 2024 business for supplies • Investment by Oman India Join to USA and Mexico Investment Firm II • Commercialisation of from 2022 BorgWarner • Shirwal Plant Developed 3 EV • Awarded the EV transmission transmission 2016 2021 components products •
Slide 23: Manufacturing Capabilities
Manufacturing Capabilities Year of Operations: 1996 Year of Operations: 1991 Product: Product: • Precision Grinding and • 4WD Transfer case Honing operations for transmission components Bhosari, Pune, Maharashtra Shivare, Pune Dist., Maharashtra Year of Operations: 1984 Year of Operations: 2023 Prod
Slide 24: Product Portfolio
Product Portfolio Automatic/Dual Clutch RWD Applications Manual Transmissions Synchronizers EV Transmission Key Components Transmissions Category / Product ICE (4WD/AWD) ICE (Manual) ICE (Automatic) Hybrid BEV Torque Transfer Systems - - - - Manual Transmission - - - - Synchronizer Systems - - Autom
Slide 25: Product Application
Product Application 4WD/AWD Products Manual Transmissions and Synchronizers Electric Vehicle Transmission Next generation transmission products (Hybrid/Automatic) Representative Images 24
Slide 26: Marquee Customers
Marquee Customers Few clientele… 30+ 50+ 50+ 10+ 10+ 10+ Years of Years of Years of Years of Years of Years of relationship relationship relationship relationship relationship relationship MT Components, EV transmission, Transfer case Transfer Cases & EV Transmission Transfer Cases, Engine Timing Tr
Slide 27: Presence across the world
Presence across the world Germany ~3 Crores Export Revenue (Rs. In Crores) UK USA China Portugal Korea Mexico India Thailand ~75 Crores New Export Business win (Rs. In Crores) Emerge as one of the fastest growing drivetrain solution companies in the world As of FY24 26
Slide 28: Our credible Board of Directors
Experienced Board Members Our credible Board of Directors Praveen Kadle Chairman and Jitendra Divgi Managing Director Hirendra Divgi Executive Director Pradip Dubhashi Independent Director Independent Director Individuals of proven capability and integrity Bringing diverse competencies to the table
Slide 29: Strong Leadership Team
Strong Leadership Team Zubair Kachi Deepak Vani Prasanna Deshpande Nilesh Shukla Rupam Parwate Mktg., Sales & ABD Chief Operating Officer & Engineering & Product Mfg Engineering & Operational Excellence Purchase Development Advanced Tech. Jitendra Divgi Managing Director Gopal Dalvi Mark John Nam Ju
Slide 30: Financials
Financials 2 4 ql 29
Slide 31: P&L – Historical Chart
P&L – Historical Chart Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) 279 273 82 51 242 74 73 46 60 38 40 195 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (%) PAT (%) 31.0% 30.5% 29.5% 19.6% 19.1% 18.4% 26.6% 14.6% FY21 FY22 FY23 FY24 FY21 FY22 FY23
Slide 32: Financial Ratios
Financial Ratios Fixed Assets Turnover Ratio (x) Working Capital (No. of Days) 1.39 1.30 1.16 62 days 66 days 69 days 87 days 0.97 98 84 85 FY21 FY22 FY23 FY24 76 61 62 60 Leverage ratios (x) & Net Debt (Rs. In Cr.) 58 49 46 44 (75.7) (117.9) (133.1) (262.7) (225.1) 42 0.2 FY21 FY22 FY23 FY24 0.0 0.
Slide 33: Capex and Cash
Capex and Cash Return on Capital Employed (RoCE %)* Capital Expenditure and Cash Reserves 17.5% 18.0% IPO proceeds capex – 169.60 Cash Reserves Capex crores of which ~47.82 crores 12.4% already deployed 9.3% 311 264 FY21 FY22 FY23 FY24 173 159 Return on Invested Capital (RoIC %) 32.4% 33.4% 78 68 25
Slide 34: Historical P&L Statement
Historical P&L Statement Particulars (Rs. In Cr.) FY24 FY23 FY22 FY21 Revenue From Operations 253.4 271.0 233.8 186.6 Other Income 19.6 7.6 8.1 8.5 Total Income 273.0 278.7 241.9 195.1 Raw Materials 106.2 111.4 93.6 67.0 Gross Profit 166.8 167.3 148.2 128.1 Employee Benefit Expenses 24.1 24.5 22.5 2
Slide 35: Balance Sheet
Balance Sheet Particulars (Rs. In Cr.) FY24 FY23 Particulars (Rs In Cr.) FY24 FY23 Assets Equity & Liabilities Non-Current Assets Total Equity Property, plant and equipment 211.7 111.1 Equity Share Capital 15.3 15.3 Capital work-in-progress 25.4 80.9 Other Equity 565.1 536.0 Right-of-use assets 1.5
Slide 36: Cashflow
Cashflow Particulars (Rs. In Cr.) FY24 FY23 Profit Before Tax 53.5 68.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.0 6.3 Operating profit before working capital changes 53.5 75.2 Changes in working capital 6.7 (16.9) Cash generated from Operations 46.8 58.2 Direct taxes
Slide 37: Annexure
Annexure 36
Slide 38: Q1FY25 – Key Highlights
Q1FY25 – Key Highlights Won Toyota Supplier of the year award for Second time Received a ‘Mega Offer Letter’ from the Government of Maharashtra Incentives Please note there are many predetermined conditions which company needs to fulfil to avail the incentives under the Mega Offer Letter. 37
Slide 39: New Order Win: Lifecycle Revenue of ~Rs. 800 crs
New Order Win Order from Prominent Indian Automotive player for transfer case business Lifecycle Revenue Commenting on this achievement Mr. Jitendra Divgi, Managing Director, Divgi of ~Rs. 800 crs TorqTransfer Systems Limited said, “We are happy with this new award for our core transfer case product
Slide 40: Export Component Business
Export Component Business Fortune's world's most admired company Revenue Lifecycle Sr. No. Product Awarded on SOP (Rs. In Cr.) 1 Hub Reduction 012 August 2023 111.6 June 2024 2 Hub Reduction 007 August 2023 55.6 August 2024 3 Hub Reduction 013 August 2023 12.8 August 2024 4 Yoke Flange - Big January
Slide 41: EV Transmission Business
EV Transmission Business Leading Indian OEM Revenue Lifecycle Sr. No. Product Awarded on SOP (Rs. In Cr.) 1 45KW EV transmission August 2023 131.5 August 2024 150KW EV transmission July 2024 2 August 2023 73.2 component sets 3 3-wheeler EV motor shaft August 2023 14.3 January 2024 200+ Crores revenu
Slide 42: Core & Other Products Business
Core & Other Products Business Leading Indian OEM Revenue Lifecycle Sr. No. Product Awarded on SOP (INR Crs) 1 Electric shift transfer case August 2023 210.0 June 2024 Manual transmission 2 August 2023 82.8 August 2024 counter shaft August 2023 3 Manual transmission Input Shaft 27.1 August 2023 320
Slide 43: Thank You
Thank You PRODUCT LEADERSHIP Company: Investor Relations Advisors: LIKE NO OTHER CIN: L32201MH1964PLC013085 CIN: U74140MH2010PTC204285 Ms. Sanika Nirgude Ms. Neha Shroff / Mr. Mayur Pednekar companysecretary@divgi-tts.com neha.shroff@sgapl.net / mayur.pednekar@sgapl.net +91 89566 65262 +91 77380 734