Sharda Motor Industries Ltd. · NSE:SHARDAMOTR
Sharda Motor Industries — Q1 FY2023 Earnings Presentation
33 slides from Sharda Motor Industries's earnings presentation, Aug 12, 2022
Slide 1: Submission of Investors Presentation covering letter
SMIL: BSE/NSE: 22-23/1208 August 12, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, 5th Floor Pheroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street, Mumbai - 400 001 Bandra - Kurla Complex, Mumbai - 400 051 (SCRIP CODE - 535602) (Sym
Slide 2: Sharda Motor Industries Limited Investor Presentation August 2022
Osun SHARDA MOTOR INDUSTRIES LIMITED Investor Presentation August 2022 ying Let’s do great things together! www.shardamotor.com
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), has been prepared by Sharda Motor Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the
Slide 4: Group Overview
Group Overview 3
Slide 5: Leading Auto-ancillary Company with Global Aspirations
Foundation Founded in 1986, Sharda Motor has scaled to numerous highs in the automotive industry. Leading Auto-ancillary Company with Global Aspirations Offers highly engineered products and services commencing from emission to World class Manufacturing Infrastructure suspension systems, roof syst
Slide 6: IPO and listing on Delhi Stock Exchange
1987 IPO and listing on Delhi Stock Exchange 5
Slide 7: Presence in Pan India, Joint Venture Abroad
Presence in Pan India Delhi Haridwar Sanad Pune Chennai Sanad Exhaust System Exhaust System Exhaust System Suspension Tube Mill / R&D Namyang Assembly Nashik Nashik Haridwar Delhi Pune Exhaust System Exhaust System Roof System Pune Stamping of Parts & Corporate Office Suspension Assembly Fuel Tank C
Slide 8: Established R&D unit for exhaust and emission systems
Established R&D unit for exhaust system in 2002 and emission system 2010 at Mahindra World City, Chennai A state of art facility to Design, Simulate, Testing and Prototype of exhaust system for PVs & CVs as well as non-automotive applications R&D Centre has the full capabilities to cater to various
Slide 9: Timing: Achievement of all milestones
Passenger Vehicle Full Range of Full Range of Medium & Heavy Full Range of ranging Stationery Engine Off-Road Vehicle Commercial Vehicle Tractors Engines 0.6L – 3L ranging 2.5L – 8L Timing: TIMING COST PROCESS PROCESS TESTING PTOTOTYPES Achievement of Achievement of STABILITY Integration of new All
Slide 10: Responsibilities across design and testing
Concept Acoustic Structural Responsibilities CFD Analysis Proto Build Industrialization Testing SOP Design Simulation Analysis Passenger Vehicle Engine Small Commercial Vehicle Engine Light Commercial Vehicle Engine Medium Commercial Vehicle Engine Heavy Commercial Vehicle 3 Wheeler Passenger / Load
Slide 11: Leading to increase in content per Vehicle
Leading to increase in content per Vehicle Legislation Impact CEV IV & V and TREM IV & V emission standards • With applicability of new emission norms, the Off Off-Road are for non road diesel engines used in Highway Addressable Market will become construction equipment and agricultural tractors equ
Slide 12: Operational efficiencies, technology and asset efficiency
• Sustainable growth in operating profits vs Cyclical auto industry Operational efficiencies • Backward integration by producing in-house bought out parts • Strategic technology partnership giving access to world class technology in emission Technology – Key entry barrier control system act as a key
Slide 13: Structural Advantage, Value Accretion, Complete Control
Leveraging of existing Structural Advantage Value Accretion Complete Control setup for new applications Completely backward With manufacturing Over process and supply Established expertise in integrated with two infrastructure already in chain efficiencies, leading to manufacturing of tube mills and
Slide 14: Electric Vehicle Drivers
Getting Future Ready Electric vehicle market is estimated to be a Rs. 50,000 crore opportunity in India by 2025. Electric Vehicle Drivers India could be a leader in shared mobility by 2030, providing opportunities for electric vehicles De-Risking Investment in Emerging Technologies EV market in Indi
Slide 15: Joint Ventures and Technical Collaboration
Joint Venture Technical Joint Venture Exhaust Systems Collaboration Lithium Battery Manufacturing Eberspaecher* and Sharda Motor Entered a technical Kinetic Green^ and Sharda Industries Ltd. entered into a JV to partnership with Bestop Inc. Motor Industries Ltd. entered manufacture commercial vehicl
Slide 16: Exhaust systems: from idea to manufacturing
Catering to Serving PV, CV Annual Indian Market Domestic & and Off-road Production of Share of ~30% International segment. ~1 million units customers 5 plants strategically located Catering to most of the 3 stamping plants managing across India and present in OEM’s in PV segment all critical stampin
Slide 17: Suspension systems: world-class manufacturing processes
Annual Production of ~1.8 Indian Market Share of ~10% 2 manufacturing units lakh units Development, Project planning & Testing & Concept, Design and Digitizing Validation Expertise in this arena with its world-class manufacturing processes Arm Lower Control Front Suspension Upper Arm Assy Assy. Lowe
Slide 18: Board of Directors
Mr. Kishan Parikh Chairman, Independent Director Mr. Ashok Kumar Bhattacharya Holds Bachelor’s Degree in commerce and has 30+ years of Independent Director experience in area of Business Management and managing He holds Bachelor’s degree from IIT, Kharagpur and PhD. from Financial activities Cambrid
Slide 19: Management Team
Mr. Ajay Relan Mr. Deepak Bhaskar Managing Director Chief People Officer Responsible for overall manufacturing operations, Plant, Research MBA in HR from SIMS, Pune & Executive MBA in Business & Development, Product Development and complete supervision Management from MDI, Gurgaon. Has proven leader
Slide 20: Awards and recognition
21awqzs 21awqzs 21awqzs Silver award in Business Silver award in Business Mahindra Supplier Excellence Special Appreciation BS6 Mahindra & Mahindra Annual Alignment Category by Ashok Alignment Category by Ashok Award for Business Partner of the by Mahindra & Mahindra (2021) Commodity Award (2014) Le
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Revenue, EBITDA and PAT
INR Crores REVENUE EBITDA PAT* +33% +51% +85% 618 628 64.3 45.2 60.8 44 472 40.1 24.4 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 * Including Profit/(loss) in JV and Associates 21 21
Slide 23: Consolidated Q1FY23 income statement
INR Crores Particulars Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenue from Operations 627.8 471.7 33% 617.9 2% Cost of Goods Sold 506.5 381.1 493.5 Gross Profit 121.3 90.6 34% 124.4 -2% Gross Profit Margin 19.33% 19.22% 20.13% Employee Cost 23.4 22.5 24.6 Other Expenses 37.1 28.0 35.6 EBITDA 60.8 40.1 51% 64.
Slide 24: Standalone Q1FY23 income statement
INR Crores Particulars Q1FY23 Q1FY22 YoY Q4FY22 QoQ Revenue from Operations 627.8 471.7 33% 617.9 2% Cost of Goods Sold 506.5 381.1 493.5 Gross Profit 121.3 90.6 34% 124.4 -2% Gross Profit Margin 19.33% 19.22% 20.13% Employee Cost 23.4 22.5 24.6 Other Expenses 37.1 28.0 35.6 EBITDA 60.8 40.1 51% 64.
Slide 25: Consolidated FY22 income statement
INR Crores Particulars FY22 FY21 YoY Revenue from Operations 2,255.3 1,736.5 30% Cost of Goods Sold 1,806.1 1,419.5 Gross Profit 449.2 317.0 42% Gross Profit Margin 19.92% 18.26% Employee Cost 92.4 81.6 Other Expenses 129.1 106.2 EBITDA 227.8 129.2 76% EBITDA Margin 10.10% 7.44% Other Income 29.5 21
Slide 26: Consolidated balance sheet
INR Crores Equity & Liabilities Mar-22 Mar-21 Assets Mar-22 Mar-21 Total Equity 572.9 430.9 Non - Current Assets 195.7 218.1 Property Plant & Equipments 145.5 168.0 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.1 Reserves & Surplus 566.9 424.9 Right of Use Asset 10.2 10.5 Intangible assets 0.
Slide 27: Standalone FY22 income statement
INR Crores Particulars (Rs. Crores) FY22 FY21 YoY Revenue from Operations 2,255.3 1,736.5 30% Cost of Goods Sold 1,806.1 1,419.5 Gross Profit 449.2 317.0 42% Gross Profit Margin 19.92% 18.26% 166 Employee Cost 92.4 81.6 Other Expenses 129.1 106.2 EBITDA 227.8 129.2 76% EBITDA Margin 10.10% 7.44% 266
Slide 28: Standalone balance sheet
INR Crores Equity & Liabilities Mar-22 Mar-21 Assets Mar-22 Mar-21 Non - Current Assets 220.6 232.7 Total Equity 599.8 445.4 Property Plant & Equipments 145.5 168.0 Share Capital 5.9 5.9 Capital Work In Progress 0.1 0.1 Reserves & Surplus 593.8 439.5 Right of Use Asset 10.2 10.5 Intangible assets 0.
Slide 29: Cash flow statement
INR Crores Standalone as on Consolidated Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Net Profit Before Tax 215.2 105.3 215.2 105.3 Adjustments for: Non -Cash Items / Other Investment or Financial Items 20.2 29.6 20.2 29.6 Operating profit before working capital changes 235.4 134.8 235.4 134.
Slide 30: Revenue, EBITDA and PAT FY18-FY22
INR Crores REVENUE EBITDA PAT^ 2255 228 149 +167% 1737 129 128 81 116 68 67 938 96 845 863 52 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 * Consolidated Excluding Seating Business ^ Including Profit/(loss) in JV and Associates 29 29
Slide 31: Adjusted ROCE
INR Crores Particulars FY22 FY21 FY20 FY19 FY18 Interest Income on Cash (A) 13.24 10.00 5.50 4.80 3.90 EBIT (B) 216.67 106.70 79.40 113.25 97.18 Equity Capital (C) 572.89 430.90 364.60 409.36 317.99 Debt Capital (D) - - - - - Cash & Equivalents (E) 395.61 263.00 146.30 141.14 73.71 Adj. ROCE = (B-A)
Slide 32: CSR initiatives
Tree Planting Stop Plastic 1 Pollution Blood Donation Drive Sharda Motor believes in the Installed plastic bottle shredding Organized blood donation camps preservation of the environment. Our machine at Jamshedpur district of to help hospitals and blood banks team of volunteers contributed their Jha
Slide 33: Company and Investor Relations Advisors
Company Investor Relations Advisors CIN: L74899DL 1986PLC023202 CIN: U74140MH2010PTC204285 Mr. Srinivasan Narasimhan Mr. Jigar Kavaiya / Mr. Pratik Shah Chief Financial Officer Deputy Head-IR Practice / Business Analysis 02135-674400 +91 9920602034 / +91 9870030585 sn.s@shardamotor.com jigar.kavaiya
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