Rane Holdings Limited · NSE:RANEHOLDIN
Rane — Q4 FY22 Earnings Presentation
46 slides from Rane's earnings presentation, May 30, 2022
Slide 1: Earnings presentation cover letter to stock exchanges
Registered Office Tel: 91 44 2811 2472 “Maithri” URL; www.ranegroup.com 132, Cathedral Road, Chennai 600 086, India. CIN: L35999TN1936PLC002202 __________________________________________ Rane Holdings Limited ____________________________________ // Online submission // RHL /SE/013/2022-23 May 30, 20
Slide 2: Rane Group Earnings Presentation Q4 FY22
Rane Group Earnings Presentation | Q4 FY22 M a y 2 0 2 2 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Outline
Outline › Overview › Industry Performance Review – Q4 FY22 › Rane Group Performance Review – Q4 FY22 › Group Companies Performance Highlights – Q4 FY22 Not to be copied or distributed without permission of Rane Holdings Limited 2
Slide 4: Overview
Overview › Founded in 1929 for trading in automobile and automotive parts; Headquartered in Chennai, India. 6% 1% › Commenced manufacturing operations in 1959. 7% › Group Sales of INR 5,313 Cr (~USD 700 Mn) 9% › Most preferred manufacturer and supplier for global auto majors › Serves a variety of in
Slide 5: Business Portfolio
Business Portfolio 1% Revenue by 10% Markets Group Sales in 2021-22: INR 5,313 Cr (~USD 700 Mn) UO 21% with 22% from International markets 68% 3% 3% Revenue by Markets Revenue by Vehicle Segment (India OEM) 6% 68% India - OEM 63% Passenger Vehicle 25% Commercial Vehicle 21% International - OEM 25% 6
Slide 6: Rane Group – Business Structure
Rane Group – Business Structure Steering and ZF Rane Automotive Rane (Madras) Ltd. Rane NSK Steering Suspension India Pvt Ltd. Steering & Linkages Division Systems Pvt Ltd. Systems Steering Gear Division Friction Rane Brake Lining Ltd. materials Valve Train Rane Engine Valve Ltd. Components RANE GRO
Slide 7: Rane Group – Holding Structure
Rane Group – Holding Structure Promoters Rane Holdings Ltd. (RHL) 47% Subsidiaries Joint Ventures Rane (Madras) Ltd. (RML) ZF Rane Automotive India 72% Pvt. Ltd. (ZRAI) 49% Rane Light Metal Castings Inc. (RLMCA) 100% Rane NSK Steering Systems Rane Engine Valve Ltd. Pvt. Ltd. (RNSS) 49% (REVL) 55% Ra
Slide 8: Outline
Outline › Overview › Industry Performance Review – Q4 FY22 › Rane Group Performance Review – Q4 FY22 › Group Companies Performance Highlights – Q4 FY22 Not to be copied or distributed without permission of Rane Holdings Limited 7
Slide 9: Industry Performance Review (Q4 FY22)
Industry Performance Review (Q4 FY22) Production YoY Rane Group Sales Growth Rane Group Revenue Vehicle Segment Growth# in % YoY in % (India OEM) Split * (India OEM) Passenger Cars (PC) (10%) 10% 40% Utility Vehicles (MUV) 20% 34% 21% Vans (19)% 22% 1% - Total Passenger Vehicle 2% 17% 62% Small Comm
Slide 10: Outline
Outline › Overview › Industry Performance Review – Q4 FY22 › Rane Group Performance Review – Q4 FY22 › Group Companies Performance Highlights – Q4 FY22 Not to be copied or distributed without permission of Rane Holdings Limited 9
Slide 11: Group Aggregate Performance Review (Q4 FY22)
Group Aggregate Performance Review (Q4 FY22) Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 8.4% -3.3% -3.3% 9.1% Q4 FY2021 Q4 FY2022 1,565.9 14.2% 131.7 1395.4 12.2% -46.6 126.0 4.2% -53.2 Q4 FY2021 Q4 FY2022 * PBT includes Exceptional items Q4 FY2021 Q4 FY2022 › Total Revenue increased by 12
Slide 12: Group Aggregate Performance Review (YTD)
Group Aggregate Performance Review (YTD) Rs Cr FY21# FY22 Total Revenue 4,140.4 5,440.1 EBITDA 299.9 395.7 EBITDA Margin 7.2% 7.3% PBT Before Exceptional Items 41.3 122.9 Exceptional Income / (Expenses)* (154.9) (119.1) PBT (113.6) 3.8 PBT Margin -2.7% 0.1% PAT (96.7) (0.7) PAT Margin -2.3% 0.0% Tot
Slide 13: RHL Consolidated Performance Review (Q4 FY22)
RHL Consolidated Performance Review (Q4 FY22) Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 9.3% 1.1% 7.7% 791.9 407.3% 17.2% -2.7 8.4 42.0% 74.0 675.5 -0.4% 52.1 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 * PBT includes net profit/loss from JV and Exceptional items › Total R
Slide 14: RHL Consolidated Performance Review (YTD)
RHL Consolidated Performance Review (YTD) Rs Cr FY21# FY22 Total Revenue 2,057.0 2,714.7 EBITDA 133.8 203.1 EBITDA Margin 6.5% 7.5% PBT Before Share of profit/ (loss) of JV & Exceptional (26.2) 40.1 Items Share of profit/ (loss) of JV (Net of Exceptional items & (27.3) (7.4) Tax) Exceptional Income
Slide 15: RHL: (Consolidated) Ratios and Return
RHL: (Consolidated) Ratios and Return Particulars FY21 FY22 Debt: Equity (in times) 0.86 1.01 EPS (basic) (Rs.) (35.42) 16.91 DPS (Rs.) - 12 Dividend Payout (%) - 50% BV (Rs.) 535.44 544.65 Not to be copied or distributed without permission of Rane Holdings Limited 14
Slide 16: Outline
Outline › Industry Performance Review – Q4 FY22 › Rane Group Performance Review – Q4 FY22 › Group Companies Performance Highlights – Q4 FY22 Not to be copied or distributed without permission of Rane Holdings Limited 15
Slide 17: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) Not to be copied or distributed without permission of Rane Holdings Limited 16
Slide 18: RML Standalone – Operational Performance Review
RML Standalone – Operational Performance Review Business Split (Q4 FY22) Market Environment By Market (%) › Strong demand across vehicle segments in Indian market except Farm Tractors India Intl OEM, 26 OEM&OES, 59 › Strong demand from International customers for Steering and Light Metal Castings pr
Slide 19: RML Standalone – Financial Performance Review
RML Standalone – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 10.4% 5.5% 457.3 25.1 380.4 6.7% 47.7 86.0% Q4 FY2021 Q4 FY2022 20.2% 146.0% 25.7 -54.1 -14.2% Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 › Total Revenue increased by 20.2% from Rs. 380.4 Cr in Q4 FY 21 t
Slide 20: RML – Standalone Financials (YTD)
RML – Standalone Financials (YTD) Rs Cr FY21# FY22 Total Revenue 1,151.1 1,561.8 EBITDA 93.2 133.6 EBITDA Margin 8.1% 8.6% PBT Before Exceptional Items 17.5 51.5 Exceptional Income / (Expenses)* (62.5) - PBT (45.0) 51.5 PBT Margin -3.9% 3.3% PAT (50.7) 36.6 PAT Margin -4.4% 2.3% Total Comprehensive
Slide 21: RML Consolidated – Financial Performance Review
RML Consolidated – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT (Rs cr.) 6.2% 1.2% 510.3 5.9 412.9 23.6% Q4 FY2021 Q4 FY2022 2.4% -12.1 148.4% 220.0% 31.7 9.9 Q4 FY2021 Q4 FY2022 -2.9% Q4 FY2021 Q4 FY2022 › Total Revenue increased by 23.6% from Rs. 412.9 Cr in Q4 FY21 to R
Slide 22: RML – Consolidated Financials (YTD)
RML – Consolidated Financials (YTD) Rs Cr FY21# FY22 Total Revenue 1,274.3 1,747.6 EBITDA 37.7 79.5 EBITDA Margin 3.0% 4.5% PBT Before Exceptional Items (55.5) (21.2) Exceptional Income / (Expenses)* - 46.71 PBT (55.5) 25.5 PBT Margin -4.4% 1.5% PAT (61.1) 10.7 PAT Margin -4.8% 0.6% Total Comprehens
Slide 23: RML: Ratios and Return
RML: Ratios and Return RML Standalone FY21 FY22 Debt: Equity (in times) 0.99 1.19 RoCE% 6.64% 8.81% EPS (basic) (Rs.) -39.51 23.94 BV (Rs.) 211.66 230.51 RML Consolidated FY21 FY22 Debt: Equity (in times) 2.53 2.52 RoCE% -4.41% -0.19% EPS (basic) (Rs.) -47.66 6.97 BV (Rs.) 124.89 140.26 Not to be co
Slide 24: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) Not to be copied or distributed without permission of Rane Holdings Limited 23
Slide 25: REVL – Operational Performance Review
REVL – Operational Performance Review Business Split (Q4 FY22) Market Environment By Market (%) › Lower demand from Indian Two Wheeler segment India Aftermarket, 9 › Higher offtake from International customers India OEM&OES, Intl OEM & 56 Aftermarket, 35 Operational Highlights By Vehicle Segment (%)
Slide 26: REVL – Financial Performance Review
REVL – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs. cr.) 9.1% 2.7% 6.4% 10.0 2.9 475.6% 109.5 11.2% -0.8% 98.5 6.3 57.3% Q4 FY2021 Q4 FY2022 -0.8 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 * PBT includes Exceptional items › Total Revenue increased by 11.2% from Rs. 98.5
Slide 27: REVL – Financials (YTD)
REVL – Financials (YTD) Rs Cr FY21# FY22 Total Revenue 304.9 385.0 EBITDA (0.7) 16.4 EBITDA Margin -0.2% 4.3% PBT Before Exceptional Items (31.9) (11.5) Exceptional Income / (Expenses) * 22.2 (3.55) PBT (9.7) (15.0) PBT Margin -3.2% -3.9% PAT (6.1) (11.9) PAT Margin -2.0% -3.1% Total Comprehensive I
Slide 28: REVL: Ratios and Return
REVL: Ratios and Return Particulars FY21 FY22 Debt: Equity (in times) 1.09 1.33 RoCE% -0.69% -3.17% EPS (basic) (Rs.) -9.06 -17.65 BV (Rs.) 156.52 144.60 Not to be copied or distributed without permission of Rane Holdings Limited 27
Slide 29: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) Not to be copied or distributed without permission of Rane Holdings Limited 28
Slide 30: RBL – Operational Performance Review
RBL – Operational Performance Review Business Split (Q4 FY22) Market Environment By Market (%) Intl OEM & After › Strong demand from Indian OE segment; Enhanced presence in Two Wheeler Market, 5 India OEM&OES, segment 55 › Muted demand from Aftermarket segment India Aftermarket, 40 Operational Highl
Slide 31: RBL – Financial Performance Review
RBL – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 18.2% 13.9% 10.0% 14% 27.7 21.2 152.4 3.0% 157.0 21.9 -20.9% -25.8% 15.7 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 * PBT includes Exceptional items › Total Revenue increased by 3% from Rs. 152.4
Slide 32: RBL – Financials (YTD)
RBL – Financials (YTD) Rs Cr FY21# FY22 Total Revenue 434.8 518.2 EBITDA 71.6 56.8 EBITDA Margin 16.5% 11.0% PBT Before Exceptional Items 46.9 35.3 Exceptional Income / (Expenses)* - (0.66) PBT 46.9 34.7 PBT Margin 10.8% 6.7% PAT 31.8 27.1 PAT Margin 7.3% 5.2% Total Comprehensive Income 32.5 26.7 #
Slide 33: RBL: Ratios and Return
RBL: Ratios and Return Particulars FY21 FY22 Debt: Equity (in times) 0.00 0.00 RoCE% 20.1% 14.3% EPS (basic) (Rs.) 40.45 35.03 DPS (Rs.) 25.0 20.0 Dividend Payout (%) 61% 57% BV (Rs.) 306.57 314.16 Not to be copied or distributed without permission of Rane Holdings Limited 32
Slide 34: ZF Rane Automotive India Pvt. Ltd (ZRAI)
ZF Rane Automotive India Pvt. Ltd (Rane TRW Steering Systems Pvt. Ltd.)(ZRAI) Not to be copied or distributed without permission of Rane Holdings Limited 33
Slide 35: ZRAI – Operational Performance Review
ZRAI – Operational Performance Review Business Split (Q4 FY22) Market Environment By Market (%) › Steering business: Robust demand from Commercial Vehicle segment Intl OEM, 25 India › Occupant Safety business: OEM&OES, 70 › Strong demand from Utility Vehicle segment in India › Lower offtake from int
Slide 36: ZRAI – Financial Performance Review
ZRAI – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT (Rs cr.) 11.0% 9.8% 6.7% 6.1% 38.4 37.0 347.2 378.6 9.0% -3.5% 23.2 23.2 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 › Total Revenue increased by 9% from Rs. 347.2 Cr in Q4 FY21 to Rs. 378.6 Cr in Q4 FY22
Slide 37: ZRAI – Financials (YTD)
ZRAI – Financials (YTD) Rs Cr FY21# FY22 Total Revenue 1,038.9 1,344.9 EBITDA 87.1 121.0 EBITDA Margin 8.4% 9.0% PBT Before Exceptional Items 33.3 63.3 Exceptional Income / (Expenses) - - PBT 33.3 63.3 PBT Margin 3.2% 4.7% PAT 24.9 49.4 PAT Margin 2.4% 3.7% Total Comprehensive Income 24.8 49.6 # The
Slide 38: ZRAI: Ratios and Return
ZRAI: Ratios and Return Particulars FY21 FY22 Debt: Equity (in times) 0.57 0.43 RoCE% 6.5% 11.4% EPS (basic) (Rs.) 28.55 56.52 DPS (Rs.) 14 39 Dividend Payout (%) 49% 69% BV (Rs.) 449.32 492.06 Not to be copied or distributed without permission of Rane Holdings Limited 37
Slide 39: Rane NSK Steering Systems Pvt. Ltd. (RNSS)
Rane NSK Steering Systems Pvt. Ltd. (RNSS) Not to be copied or distributed without permission of Rane Holdings Limited 38
Slide 40: RNSS – Operational Performance Review
RNSS – Operational Performance Review Business Split (Q4 FY22) Market Environment By Market (%) › Growth in Utility Vehicle segment offset drop in volumes in Passenger Car segment Intl OEM,… India OEM&OES, 100 Operational Highlights › Received ACMA Atmanirbhar Excellence Silver Award for New Product
Slide 41: RNSS – Financial Performance Review
RNSS – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 12.0% Q4 FY2021 Q4 FY2022 -32.4% (75.6) 45.7 7.8% 6.6% (100.0) 382.1 407.4 13.4% -19.8% 31.6 -24.6% Q4 FY2021 Q4 FY2022 Q4 FY2021 Q4 FY2022 * PBT includes Exceptional items › Total Revenue increased by 6.6% from
Slide 42: RNSS – Financials (YTD)
RNSS – Financials (YTD) Rs Cr FY21# FY22 Total Revenue 1,076.5 1,435.5 EBITDA 108.3 125.2 EBITDA Margin 10.1% 8.7% PBT Before Exceptional Items 54.7 61.9 Exceptional Income / (Expenses) * (177.1) (161.6) PBT (122.4) (99.7) PBT Margin -11.4% -6.9% PAT (81.3) (65.0) PAT Margin -7.5% -4.5% Total Compre
Slide 43: RNSS: Ratios and Return
RNSS: Ratios and Return Particulars FY21 FY22 Debt: Equity (in times) 0.78 1.59 RoCE% 24.3% 42.58% EPS (basic) (Rs.) -45.39 -36.33 BV (Rs.) 94.01 57.32 Not to be copied or distributed without permission of Rane Holdings Limited 42
Slide 44: Thank You
Thank You Rane Corporate Centre For further information, please contact: “Maithri" 132, Cathedral Road, investorservices@ranegroup.com or dpingle@christensenir.com Chennai - 600 086, India www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 43
Slide 45: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion Abbreviation Expansion ACMA Automotive Component Manufacturers MPV Multi Purpose Vehicles RoCE Return on Capital Employed Association MUV Multi Utility Vehicles SCV Small Commercial Vehicles bps Basis point, 100 bps equal to 1%
Slide 46: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. T