Sansera Engineering Limited · NSE:SANSERA
Sansera Engineering — Q3 FY24 Earnings Presentation
54 slides from Sansera Engineering's earnings presentation, Feb 12, 2024
Slide 1: Cover letter to stock exchanges
February 12, 2024 The National Stock Exchange of India Ltd The Department of Corporate Services Exchange Plaza, C-1, Block G BSE Limited, Bandra – Kurla Complex P.J. Towers, Dalal Street Mumbai 400051 Mumbai 400001 Scrip Symbol: SANSERA Scrip Code: 543358 Dear Sir/ Madam Subject: Investors Presentat
Slide 2: Investors Presentation February 2024
INVESTORS PRESENTATION February 2024 SANSERA ENGINEERING LIMITED 1
Slide 3: Safe harbour
Safe harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sansera Engineering Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 4: Performance highlights
Performance highlights
Slide 5: Management Commentary
Management Commentary Commenting on the performance Mr. B R Preetham Executive Director & CEO, Sansera Engineering Limited said, “The results of Q3 FY24 reflect our consistent growth; we delivered another record quarter in a row. This is particularly noteworthy, as the third quarter is known to be a
Slide 6: Performance Highlights
Performance Highlights Margins Q3FY24 Rs. 7.1 Bn Rs. 1.2 Bn Rs in Mln Highest ever quarterly Revenue Highest ever quarterly EBITDA Revenue* EBITDA PAT 15.9% 16.9% 5.6% 6.8% › Improvement in topline driven by 32% 27% YoY increase in International business 36% along with 27% YoY growth in 7,126 domest
Slide 7: Completed construction of new machining facility at Sansera Plant 11, Bidadi
Completed construction of new machining facility at Sansera Plant 11, Bidadi Focused on production of Aluminum and Steel Components for Tech Agnostic & Non-Auto segments 66
Slide 8: Strong and diverse business pipeline for future growth
Strong and diverse business pipeline for future growth Rs. 7 Bn worth of incremental orders in 9MFY24 Orderbook (peak annual revenues for new business) Rs. 13.3 Bn Rs. 17.0 Bn Rs. 19.3 Bn Rs. 20.4 Bn Non-auto 26% 23% 21% 23% xEV 18% Auto-Tech 30% 31% 30% 33% Agnostic & xEV Tech Agnostic 12% 47% 48%
Slide 9: Growth Path
Growth Path 489 LOIs/Purchase Orders from 87 customers in the auto and 51 customers in the non-auto sector Auto-ICE This orderbook is expected Auto-Tech Agnostic to reach its peak annual xEV revenue in the next 3 years Non-Auto 4,758 2,450 3,618 62.8% 9,599 In addition, the company is 23,466 continu
Slide 10: Sales Mix Trend: By End-Use Segments
Sales Mix Trend: By End-Use Segments Auto – ICE Auto-Tech Agnostic xEV Non-Auto 76.4% 75.6% 76.1% 12.5% 12.6% 12.2% 7.9% Q3 FY24 7.3% 4.8% 6.2% 4.6% 3.8% Sales Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 Q3FY23 Q2FY24 Q3FY24 mix % 78.8% 77.7% 76.0% 11.9% 12.2% 11.1% 9M FY24 6.8% 7
Slide 11: Sales Mix: By Geographies
Sales Mix: By Geographies Sales mix (%) Q3FY24 Q3FY23 Q2FY24 9MFY24 9MFY23 India 68.3% 69.2% 71.3% 69.3% 72.7% Europe 18.1% 19.1% 16.4% 18.0% 17.3% USA 11.0% 7.6% 9.5% 9.8% 6.5% Other Foreign Countries 2.6% 4.2% 2.9% 2.9% 3.5% International 31.7% 30.8% 28.7% 30.7% 27.3% Exports from India 25.0% 23.1
Slide 12: Update on Electric Mobility
Update on Electric Mobility Visible growth in the revenue contribution from xEV segment 18% 16* xEV 10 (2W) 4 (PV) 2 (CV) of orderbook Customers Sales Contribution from xEV (INR Mln) 880 817 521 New American multinational automotive xEV customer’s orders spread over multiple components has started c
Slide 13: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (Rs. in Mln) Q3FY24 Q3FY23 YoY 9MFY24 9MFY23 YoY Revenue From Operation 7,126.4 5,596.4 27% 20,655.9 17,274.5 20% Cost of goods sold (incl power & fuel cost) 4,267.5 3,338.7 12,389.6 10,363.0 Gross Profit 2,858.9 2,257.7 27% 8,266.3 6,911.4 20% Gross Pr
Slide 14: Company Overview
Company Overview
Slide 15: Sansera Engineering Ltd.: A Glance
Sansera Engineering Ltd.: A Glance Auto ICE Tech Agnostic & xEV Strong execution capabilities Prominent player with Emerging player working longstanding OEM with marquee names in the industry 17 500+ relationships Integrated Dedicated engineering team manufacturing including aerospace, machine 36% 6
Slide 16: Growing consistently over the years and…
Growing consistently over the years and… Rs in Mln Revenue From Operations* EBITDA PAT 10 10 10 Year CAGR Year CAGR Year CAGR 23,460 3,848 1,483 16% 15% 20% 5,477 946 247 FY13 FY23 FY13 FY23 FY13 FY23 100% 78% ICE contribution ** From Q1FY24 onwards “Revenue from operation” is shown instead of “Tota
Slide 17: Diverse revenue profile (1/2)
Diverse revenue profile (1/2) A wide portfolio of products across 80+ product families catering to 96* auto and non-auto customers across 27 countries By Geography By Customer % % 17 18 17 14 15 25 24 21 7 10 12 13 11 7 9 4 14 3 10 3 4 10 12 10 6 7 8 5 9 7 6 5 72 69 65 63 49 52 41 46 FY21 FY22 FY23
Slide 18: Diverse revenue profile (2/2)
Diverse revenue profile (2/2) % of Sales By Product Non-Auto & Tech Auto-ICE 83 Agnostic Comps 78 76 39 34 35 6 4 2 1 3 18 16 3 15 2 4 18 20 3 14 16 18 16 10 8 4 4 5 5 5 6 3 5 5 5 FY22 FY23 9MFY24 FY22 FY23 9MFY24 FY22 FY23 9MFY24 Aerospace Connecting rods Gear shifter dorks Non Auto & Tech Agnostic
Slide 19: … Making Strides Towards Our Vision
… Making Strides Towards Our Vision Auto-ICE Auto-Tech Agnostic & xEV Non-Auto 83.4% 77.7% 76.0% 60% 6.1% 10.4% 11.8% 20% 10.5% 11.9% 12.2% 20% +9.0% +32.0% +100.9% Revenue 16,895 2,585 15,494 14,732 2,260 2,290 2,358 contribution* 1,958 % 1,125 FY22 FY23 9MFY24 Vision FY22 FY23 9MFY24 Vision FY22 F
Slide 20: Strategic pillars
Track record of growth & diversification Wide range of product offerings Strategic pillars Diverse sectoral revenue profile Well entrenched customer relationships Strong execution capabilities 19
Slide 21: Track record of growth & diversification
Track record of growth & diversification Over the four decades, Sansera has created differentiated products and diversified across product categories as well as geographies • Commenced • Concluded the construction of 2004- 2014 2020 development of 2022 1981 1990 2017 new Aerospace and Defence 08 com
Slide 22: Wide range of product offerings: Auto (ICE)
Wide range of product offerings: Auto (ICE) Sansera has a track record of developing complex and critical precision engineered components for the automotive sector over multiple decades. Majority of the products are sold directly to OEMs in finished (forged and machined) condition, resulting in sign
Slide 23: Wide range of product offerings: Auto (Tech-Agnostic and xEV)
Wide range of product offerings: Auto (Tech-Agnostic and xEV) Tech-Agnostic and xEV have been a key focus area for Sansera in the past few years. We continue to accelerate this growth as we are already working with well known domestic as well as global customers Tech-Agnostic xEV 2W / e-2W PV / Hybr
Slide 24: Wide range of product offerings: Non-Auto
Wide range of product offerings: Non-Auto Over the years, the company leveraged its existing capabilities to manufacture precision components for several non- automotive sectors and established its presence in the aerospace, off-road and agriculture sectors Aerospace & Defence Off-road Agriculture O
Slide 25: Well entrenched customer relationships
Well entrenched customer relationships Within India, relationship with All major 2 W OEMs 20+ 10+ <10 Relationship with 5 Key PV OEMs, Years Years Years accounting for 54% of Market share 40% 20% 40% India 30+ years of relationship with the Leading PV OEM Continuous new Longstanding relationships cu
Slide 26: Integrated manufacturing facilities
Integrated manufacturing facilities Sansera has 16 plants in operation across India and 1 in Sweden All its facilities are located in close proximity to the client production facilities Manesar (Gurgaon) (1) Pantnagar (1) Shorter product development and delivery times Mehsana (1) Greater control Str
Slide 27: Levers for future growth
Levers for future growth
Slide 28: Levers for future growth
Levers for future growth Diversify further into non-automotive businesses and expand addressable Leverage existing market capabilities in tech agnostic products Strengthen xEV especially aluminium Business forged components Consolidate and strengthen global market share in existing portfolio 27
Slide 29: Strengthen global ICE market share in existing portfolio
Strengthen global ICE market share in existing portfolio Indian market Two wheelers Largest supplier of connecting rods, rocker arms and gear shifter forks Light Vehicles Key industry trends Sansera focuses on providing Largest › Faster engine upgrades high value-added and supplier of connecting rod
Slide 30: Product portfolio transformation
Product portfolio transformation Aggressively expanding the product range into fast growing and trending space EV & Tech-Agnostic and Defense & Aerospace High focus on new age comps in Auto side and Non-auto comps in recent years GSF (2W) Split Fractured GSF Integral Suspension Non-Auto Cabin Tilt N
Slide 31: Strengthen xEV Business
Strengthen xEV Business Sansera endeavors to be ahead of the curve in the EV space with a clear emphasis and focus on development of a new mobility world Wealth of experience in ICE providing solid foundation for growth in the EV space Strong R&D and design capabilities to meet the requirements of b
Slide 32: Large Aerospace & Defence Facility, Jigani Hobli, Bengaluru
Large Aerospace & Defence Facility, Jigani Hobli, Bengaluru Ready Infrastructure to capture the new opprtunities 140,000 sq ft 2/3 of the space 1/3 of the space Covered area dedicated for Aerospace dedicated for defence Strong relationship with Big boost from Multiple growth opportunities in top aer
Slide 33: Strategic investment in MMRFIC Technology Pvt Ltd
Strategic investment in MMRFIC Technology Pvt Ltd (Bengaluru) Deal Size INR 200 Mln MMRFIC is a Research, Design and ~21% stake based on projected Manufacturing entity, building sub- FY24 EBITDA systems for next generation Radars by Date – March 2023 leveraging machine learning with Sansera has righ
Slide 34: Way forward
Way forward We will continue to focus on • Delivering high quality products to customers • Capital efficiency • Consistent performance Maintain momentum to grow non-auto business Continue to add high tech products to the portfolio Enhance exports in auto and non-auto space Explore inorgani
Slide 35: Historical Performance
Won | ANU ‘AMM AAI ‘A ren Historical Performance
Slide 36: Historical Performance Highlights
Historical Performance Highlights Margins Rs in Mln Revenue from Operations* EBITDA PAT 18.0% 15.7% 18.1% 17.1% 16.4% 17.1% 6.0% 5.5% 7.1% 6.6% 6.3% 6.8% 23,460 19,975 20,656 3,848 1,483 1,411 16,284 15,593 3,421 3,528 1,319 14,615 2,930 2,821 1,099 981 2,290 799 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19
Slide 37: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss Particulars (Rs. in Mln) FY23 FY22 FY21 FY20 FY19 Revenue From Operations* 23,460.4 19,975.3 15,592.6 14,614.8 16,283.6 Cost of goods sold (incl power & fuel cost) 14,161.6 11,895.9 9,167.2 8,811.1 9,869.4 Gross Profit 9,298.8 8,079.5 6,425.4 5,803.7 6,414.2
Slide 38: Annexure
Annexure
Slide 39: Distinguished Board of Directors
Distinguished Board of Directors S Sekhar Vasan F R Singhvi B R Preetham Chairman and Managing Director Joint Managing Director Executive Director & CEO › 30+ years of experience and has oversight across all › 40 years of experience in the field of manufacturing › 40+ years of professional experienc
Slide 40: Experienced Professional Management Team (1/2)
Experienced Professional Management Team (1/2) Sansera is an employee driven, professionally managed organization. Majority of the senior management has been with the Company for more than 10 years and have led the expansion of our product families and customer base, resulting in business growth and
Slide 41: Experienced Professional Management Team (2/2)
Experienced Professional Management Team (2/2) Rakesh S B P R Suresh Head Aerospace Division Head Corp. Training & Quality system › 30+ years pf experience in various fields including sales, › 30+ years of experience in the fields of quality systems marketing and aerospace engineering, 6+ years at S
Slide 42: Strong execution capabilities (1/2)
Strong execution capabilities (1/2) 500+ Dedicated engineering team supporting automotive, aerospace, machine building, automation & technical functions In- House Machine Building Capabilities 83 Automated Cells Vertical honing machines Double disc grinding machines 69 70 58 8 station 51 special Rou
Slide 43: Strong execution capabilities (2/2)
Strong execution capabilities (2/2) Product Design 3D Modelling CAE and Testing Advanced engineering Process Design AutoCAD – 2D Siemens Teamcentre (Product Lifecycle Implemented Siemens PLM Management) (Product Lifecycle Management) software to Special cutting Machine Design integrate all engineeri
Slide 44: Awards & Accolades
Awards & Accolades Honda Motor India Raytheon Royal Enfield Fanuc Robotics V E Powertrain Delivery & Quality of Spare Parts Premier Award for Reliable partner in Best Automation Quality and Delivery outstanding achievement during 2023-2024 Quality & Delivery 2023 Solution Excellence in collaboration
Slide 45: Recent CSR Activity Conducted – Makkala Santhe Habba
Recent CSR Activity Conducted – Makkala Santhe Habba ❖ Objective: To drive concept of small business & promotion of talent ❖ Idea promoted by: Volunteers of SANSERA ❖ Items sold: Food items -Chats & Pakodas, beverages, games etc..., ❖ Location: Campus of GHPS Begur ❖ No. of Students participated: 45
Slide 46: Recent CSR Activity Conducted – School Finishing Students
Recent CSR Activity Conducted – School Finishing Students ❖ Partner: Vonisha Foundatio ❖ Budget Planned: Rs. 6 lac For Dropout ❖ Sansera Contribution: Nil Students ❖ Location: GHS Begur (Sansera newly built Multi -Purpose Hall) ❖ No. of Students benefited: 13 Boys & 21 Girls, Total 34 45
Slide 47: Recent CSR Activity Conducted – Food Trolly Distribution
Recent CSR Activity Conducted – Food Trolly Distribution Name of School No. of Trolley ❖ Impact Study of Food Trolley GHS Haragadde 2 ❖ No. of Schools Benefited: 7 GHPS Kittiganahalli 1 GH PS Thirumagondanahalli 1 ❖ Total Trolleys Distributed: 8 GHPS Hennagara 1 ❖ Total Children: 1,673 GHS Begur 1 G
Slide 48: Clean Drive By Volunteers
Clean Drive By Volunteers Hebbagodi 47
Slide 49: Clean Drive By Volunteers
Clean Drive By Volunteers Thirumagondanahalli 48
Slide 50: Highly involved in ESG Practices (1/3)
Highly involved in ESG Practices (1/3) Initiatives taken in Education Sector (govt schools) 5s Award given in Hargadde School Sepember 2023 5s Activity at Schools Q2 2023 Rs. 24.9 Lakhs Scholarship distributed Scholarship Program Voluntaries at School Independence day program Supporting to Sports pl
Slide 51: Highly involved in ESG Practices (2/3)
Highly involved in ESG Practices (2/3) Initiatives taken in Health Sector International Yoga day Celebration BP Awareness Program in Bengur School ADOPTION OF TB PATIENTS OF ANEKAL TALUK - TB Health care program at Sansera supported schools & Elimination program event partners - Narayana Netralaya &
Slide 52: Highly involved in ESG Practices (3/3)
Highly involved in ESG Practices (3/3) Initiatives taken for Environment KYALASANAHALLI LAKE January 2017 Present • Hands-free Waste Processing TRASHBOT • Segregates into bio and Non-bio Components A de-centralised • Handles all kinds of Mixed Waste automated mixed waste • Output Efficiency of up to
Slide 53: Other ESG Activities
Other ESG Activities Sansera Sustainable programs shared at a State level meeting by Sansera’s JMD Plantation by Sansera Employees 52
Slide 54: Thank you
For more information please contact: Company: Sansera Engineering Limited CIN: L34103KA1981PLC004542 Mr. Rajesh Kumar Modi, Company Secretary & Compliance Officer Email id: rajesh.modi@sansera.in Investor Relations Advisor: Strategic Growth Advisors Pvt Ltd. CIN: U74140MH2010PTC204285 Shikha Puri /