Carraro India Ltd. · NSE:CARRARO
Carraro India — Q3 FY25 Earnings Presentation
38 slides from Carraro India's earnings presentation, Feb 6, 2025
Slide 1: Exchange intimation letter for investor presentation
06th February, 2025 The Manager, The Manager, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 BSE Scrip Code: 544320 NSE Symbol: CARRARO Sub.: Investor presentation on
Slide 2: Carraro India Limited Investor Presentation – February 2025
Carraro India Limited Investor Presentation – February 2025
Slide 3: Safe harbour
Safe harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Carraro India Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: 9M & Q3 FY25 Highlights
€ CARRARO India 9M & Q3 FY25 Highlights
Slide 5: Management Commentary
Management Commentary Commenting on the performance Mr. Balaji Gopalan, Managing Director said: “In the first nine months of FY25, total income declined by ~3% year-over-year, mainly due to lower export offtake. While our domestic business remains strong, driven by robust demand for locally sold pro
Slide 6: Key Highlights
Key Highlights Key highlights during the quarter & nine months ended December 2024 • Strong growth of +10% in domestic sales for Q3 FY25 compared to same period last year. • Started pilot batch supply of drivelines for teleboom handlers to OEMs, • The short-term trend also remains positive, indicati
Slide 7: Consolidated Financial Highlights
Consolidated Financial Highlights (INR Mn) Total Income EBITDA PAT -3% +26% +45% 14,109 13,755 1,375 645 1,091 444 +3% -15% -24% 4,397 4,528 429 365 194 148 9M FY24 9M FY25 Q3 FY24 Q3 FY25 9M FY24 9M FY25 Q3 FY24 Q3 FY25 9M FY24 9M FY25 Q3 FY24 Q3 FY25 Gross Margin*(%) EBITDA Margin (%) PAT Margin (
Slide 8: Consolidated Revenue Breakdown: 9M FY25
Consolidated Revenue Breakdown: 9M FY25 (INR Mn) Total Income Mix Agricultural Vehicles Construction Vehicles Others Other Income 0% -3% -9% Revenue from Operations 6,500 6,529 5,760 1,698 5,561 1,543 -2.5% 14,109 13,755 151 122 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 Domestic Revenue Export Reven
Slide 9: Consolidated Revenue Breakdown: Q3 FY25
Consolidated Revenue Breakdown: Q3 FY25 (INR Mn) Total Income Mix Agricultural Vehicles Construction Vehicles Others Other Income +3% +10% -18% Revenue from Operations 1,993 2,048 1,987 554 1,800 452 +3.0% 4,528 4,396 41 49 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Domestic Revenue Export Revenue 4,
Slide 10: Consolidated Revenue Bridge
Consolidated Revenue Bridge (INR Mn) 9M FY25 Q3 FY25 13,958 29 103 199 187 4,487 156 54 13,633 4,347 9M FY24 Agricultural Construction Others 9M FY25 Q3 FY24 Agricultural Construction Others Q3 FY25 Vehicle Vehicle Vehicle Vehicle 104 13,958 130 4,487 429 269 13,633 4,347 9M FY24 Domestic Export 9M
Slide 11: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (INR Mn) Q3FY25 Q3FY24 YoY 9MFY25 9MFY24 YoY 9MFY25 Revenue from Operations 4,487 4,347 3% 13,633 13,958 -2% Other Income 41 49 122 151 • Total Income: Degrowth of 3% Total Income 4,528 4,397 3% 13,755 14,109 -3% • Strong Domestic revenue (excl. indirec
Slide 12: About us
) CARRARO India About us
Slide 13: Carraro Group: Overview
Carraro Group: Overview The Carraro Group: Over 90 years in Action Carraro India - Strong Synergy with the Carraro Group Headquarters in Italy Collaboration with Carraro Group’s global Carraro S.p.A. R&D centers for knowhow and technologies 100% In-depth knowledge of OEM requirements acquired throug
Slide 14: Carraro India: Overview
Carraro India: Overview 2 Manufacturing facilities & Marquee Part of Carraro Group OEM Customers 1 R&D Centre Presence of 25+ years as an independent Tier-I solution provider 250+ suppliers 55+ 1,600+ for axles, transmission systems, gears and Domestic & Internationally R&D team members Employees ot
Slide 15: Our Journey
Our Journey 1997 1999 2000 2006 2013 2014 Establishment of a first Commenced production of Commenced manufacturing Establishment of Carraro Launch of 120 HP tractor Amalgamation of Turbo manufacturing center in transmission systems of axles Technologies India Pvt. Ltd. transmission Gears and Carraro
Slide 16: Board of directors
Board of directors Mr. Ettore Francesco Sequi Mr. Balaji Gopalan Mr. Davide Grossi Chairman and Independent Director Managing Director Whole-time Director and Chief Financial Officer • Pre-reform degree in Political Science, University of Cagliari • Ph.D. in Human Resource Management, University • M
Slide 17: Management Team
Management Team Mr. Balaji Gopalan Mr. Davide Grossi Mr. Sudhendra Mannikar Managing Director Whole-time Director and Chief Financial Officer Whole-time Director and Chief Operating Officer • Ph.D. in Human Resource Management, University • Masters in Accounting, Corporate Finance, and of Pune Contr
Slide 18: Technologically Advanced Manufacturing Capabilities
Technologically Advanced Manufacturing Capabilities Plant 1 – Drivelines (Ranjangaon, Pune) Plant 2 – Gears (Ranjangaon, Pune) Key Products Axles and transmissions systems for agricultural and construction equipment Gears and gear shafts Heat treatment (carburizing & induction, hardening & Technolog
Slide 19: Strong In-House R&D Capabilities in India
Strong In-House R&D Capabilities in India Key Activities Undertaken in R&D Center Close Connection with Global R&D Centers1 Application Engineering Argentina Italy Luxemburg China Product Solutions2 Carraro India’s R&D Capabilities Virtual Validations Certifications Production # Prototypes Area 7 pr
Slide 20: Comprehensive and Customized Product Offerings
Comprehensive and Customized Product Offerings Carraro India’s axles and transmissions system products are not easily replaceable due to complexity and time required to adapt them for use by OEM customer in its products1 Transmission Systems Drivelines Manufacturing Plant Drivelines Technology Certi
Slide 21: End Industry Application
End Industry Application Revenue Split (9MFY25) Agricultural 11.3% Vehicles Agricultural Tractors 47.9% Construction Vehicles Tractor Harvester Others 40.8% 1 2 1 Domestic v/s Export Split (9MFY25) Construction Back-hoe loader Compact wheel loader Soil compactor (BHL) (CWL) (SCOM) Vehicles 34.3% Dom
Slide 22: Longstanding Relationships with Marquee Customers
Longstanding Relationships with Marquee Customers Tier 1 OEM supplier developing customized solutions for leading Domestic & International Brands Agricultural Tractors Construction Vehicle & Others ….many more The Brand Names mentioned are the property of their respective owners and are used here fo
Slide 23: Growth Strategies
Growth Strategies Huge Industry Opportunities: Poised for significant growth Critical and Complex Driveline Components: Competitive edge Customer centric & Customized solutions: Co-partner Diversifying & Localising Supplier base: Reducing cost of production Future ready products for Emerging Technol
Slide 24: 1. Huge Industry Opportunities
1. Huge Industry Opportunities Total Indian Agriculture Tractor Market (Sales Volume: ‘000 units) Total Indian Construction Vehicle Market (Sales Volume: ‘000 units) • India has the world’s largest +8.2% tractor market, consuming 1,578 Total Backhoe Loader CAGR 35-40% of all tractors sold (Sales vol
Slide 25: 2. Critical and Complex Driveline Components
2. Critical and Complex Driveline Components Leading Independent Tier 1 Supplier of Axles and Transmission Systems Longstanding Relationships Early-mover Advantage High Switching Costs Infrastructure with Customers Deep understanding of the One-stop shop tier 1 OEM High switching costs due to High i
Slide 26: 3. Customer Centric & Customized Solutions
3. Customer Centric & Customized Solutions Innovation for one of the large OEM in Agricultural & Construction Vehicles Innovation for one of the large OEM in Construction Vehicles Motor grader < 100 HP ▪ Supported one of the large OEM in construction vehicles in its business growth ▪ Worked with one
Slide 27: 4. Diversifying & Localizing Supplier base
4. Diversifying & Localizing Supplier base Geographical Spread of Key Suppliers in India (As of Dec’24) Initiatives to Foster and Maintain Stable Supplier Relationships Domestic Supplier base 189 Quality, cost, delivery and Rapid improvement workshops to ensure quality of suppliers development Long-
Slide 28: 5. Future ready products for Emerging Technologies
5. Future ready products for Emerging Technologies …Positions Carraro India as an innovative player in the space with potential for collaboration in product development Transmission-Hydrostatic-Electric Transmission System for Electric Tractors Starting from standard … to design a specific driveline
Slide 29: Historical Financial Highlights
Historical Financial Highlights
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Mn) 9MFY25 FY24 FY23 FY22 Revenue from Operations 13,633 17,910 17,131 14,975 Other Income 122 182 202 225 Total Income 13,755 18,093 17,333 15,201 Cost of Goods Sold 10,008 13,131 12,757 11,221 Gross Profit 3,748 4,961 4,576 3,980 Gross Profit M
Slide 31: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Equity & Liabilities (INR Mn) Sep-24 Mar-24 Mar-23 Mar-22 Assets (INR Mn) Sep-24 Mar-24 Mar-23 Mar-22 Total Equity 4,195 3,699 3,375 2,926 Non - Current Assets 4,148 4,019 3,559 3,377 Equity Share Capital 569 569 569 569 Property, Plant & Equipment 3,055 3,117 2,
Slide 32: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (INR Mn) Sep-24 FY24 FY23 FY22 Profit Before Tax 669 844 656 307 Adjustments for: Non - Cash Items / Other Investment or Financial Items 401 600 609 532 Operating profit before working capital changes 1,070 1,444 1,265 839 Changes in working capital -561
Slide 33: Improving Performance Trend
Improving Performance Trend (INR Mn) Total Income EBITDA PAT +9% 18,093 +35% 1,500 645 17,333 +67% 626 1,375 15,201 1,248 13,755 485 829 224 FY22 FY23 FY24 9MFY25 FY22 FY23 FY24 9MFY25 FY22 FY23 FY24 9MFY25 Gross Margin (%) EBITDA Margin (%) PAT Margin (%) 26.2% 26.4% 27.4% 27.2% 10.0% 4.7% 8.3% 7.2
Slide 34: Strong balance sheet & return ratios
Strong balance sheet & return ratios Net working capital days Debt to Equity (x) Working Capital (days) 0 15 28 63 194 0.62 0.57 0.58 158 0.50 139 123 102 99 77 73 80 63 65 50 Mar-22 Mar-23 Mar-24 Sep-24 FY22 FY23 FY24 H1FY25* Inventory days Debtor days Creditor days ROCE (%) ROE (%) 21.9% 19.8% 19.
Slide 35: Annexure
) CARRARO India Annexure
Slide 36: ESG Initiatives
ESG Initiatives Policies & Practices ▪ Environment, health & safety policy ▪ Results-based assessments of the management systems ▪ Digitized solutions and minimize of waste of resources Environmental Certifications ▪ ISO 14001:2015 (Plant 1 and 2) Policies & Practices ▪ Diversity policy ▪ Quality po
Slide 37: Awards & Accolades
Awards & Accolades Manitou Equipment – CSR Corporate Social Escorts Kubota Limited awarded Carraro Mahindra Group Supplier Excellence award Responsibility Award India as Best in For excellent performance of our Spare Parts Outstanding contribution for Corporate Social Spares parts Supplier Annual Su
Slide 38: Thank You
Thank You Company: Investor Relations Advisors: Carraro India Limited Strategic Growth Advisors Pvt. Ltd. CIN: L52609PN1997PLC132629 CIN: U74140MH2010PTC204285 Mr. Davide Grossi - CFO Ms. Neha Shroff / Mr. Abhishek Shah Email id: investor_relator@carraroindia.com Email id: neha.shroff@sgapl.net / ab