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/24-25/49 August 10, 2024 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze
Slide 2: Investor Presentation Q1FY25
Divgi TorqTransfer Systems Limited Investor Presentation Q1FY25
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: 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. 3
Slide 5: 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 TorqTransfer Systems Limited said, of ~Rs. 800 crs “We are happy with this new award for our core transfer case product
Slide 6: Q1FY25 Result Highlights
Q1FY25 Result Highlights Divgi-tTTs
Slide 7: Quarterly Revenue-Walk
Quarterly Revenue-Walk Transfer Cases (Rs. In Cr.) Particulars (Rs. In Cr.) Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q FY24 -25% 39 Transfer Case 29.4 39.1 -25% 34.4 -14% 155.1 • Lower pickup in units from major OEM due to 29 the launch of low-cost variant without 4WD NexTrac 1.2 1.8 1.5 7.2 • Exploring globa
Slide 8: Adjusted Financial Snapshot
Adjusted Financial Snapshot As Reported Adjusted for like-to-like comparison Particulars (Rs. In Cr.) Q1FY25 Q1FY24 Y-o-Y Particulars (Rs. In Cr.) Q1FY25 Q1FY24 Y-o-Y Total Income 59.4 61.6 -3.6% Total Income 59.4 59.0 0.6% EBITDA 13.9 17.8 -21.9% EBITDA 13.9 15.2 -8.4% EBITDA Margin (%) 23.4% 28.9%
Slide 9: Result Snapshot Y-o-Y
Result Snapshot Y-o-Y Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) • Total Income: Offtake in Core business segment i.e. transfer case, -3.6% -21.9% -42.7% was impacted however was 62 59 18 10 compensated by EV and Component 14 business 6 • EBITDA: Change in product mi
Slide 10: Result Snapshot
Result Snapshot Particulars (Rs. In Cr.) Q1FY25 Q1FY24 Y-o-Y Q4FY24 Q-o-Q FY24 Revenue From Operations 54.2 56.6 65.1 253.4 Other Income 5.1 5.0 5.1 19.6 Total Income 59.4 61.6 -4% 70.2 -15% 273.0 Raw Materials 23.5 22.1 27.3 106.2 Gross Profit 35.9 39.6 -9% 42.9 -16% 166.8 Employee Benefit Expenses
Slide 11: Management Commentary
Management Commentary • Q1FY25: • Total Income saw a decline on y-o-y basis primarily due to declining Transfer case volume sale. The lower offtake in the volumes was on the back of the launch of low-cost variant without 4WD by our large OEM customers due to competitive pressure • EV transmission an
Slide 12: Way Forward
Way Forward Divgi-tTTs 1
Slide 13: 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 14: 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: Product: Product: Manual Transmission Components Business BEV System & Components Transfer Case Export Business Components Business Automatic and Hybrid Transmissions Lifec
Slide 15: Growth Strategy
Growth Strategy Application led Improve market share Geographic Customer diversification through and wallet share with diversification diversification new product offerings existing customers EV Automatic transmission transmission • Will further strengthen our • Increase business with existing • New
Slide 16: Hybrid Automatic Business Update
Hybrid Automatic Business Update Automobile Industry Automobile Players DTTS • Challenges witnessed over the last 5 years: • Being ancillary supplier to OEMs, need to • Companies continuously working and react quickly to all the new • Changing customer expectations (from Mass adopting innovative sol
Slide 17: About Divgi
About Divgi Divgi-tTTs 16
Slide 18: 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 19: 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 products 2016 2021 components •
Slide 20: 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 21: 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 22: Product Application
Product Application 4WD/AWD Products Manual Transmissions and Synchronizers Electric Vehicle Transmission Automatic Transmissions Representative Images 21
Slide 23: 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 24: 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 23
Slide 25: Experienced Board Members
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 26: Strong Leadership Team
Strong Leadership Team Zubair Kachi Deepak Vani Prasanna Deshpande Chief Operating Officer & Rakesh Sharma Rupam Parwate Mktg., Sales & ABD Engineering & Product Purchase Mfg Engineering & Operational Excellence Development Growth & Launch Jitendra Divgi Managing Director Gopal Dalvi Mark John Nam J
Slide 27: Financials
Financials I? Divgi-tTTs 26
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: Annexure
Annexure Divgi-tTTs 33
Slide 35: 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 36: 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 37: 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 38: 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