Greaves Cotton Limited · NSE:GREAVESCOT
Greaves Cotton — Q3 FY2023 Earnings Presentation
28 slides from Greaves Cotton's earnings presentation, Feb 9, 2023
Slide 1: Investor Presentation cover letter to stock exchanges
GREAVES SINCE 1859 9th February, 2023 The Manager - Listing The Manager - Listing BSE Limited National Stock Exchange of India Limited BSE Code - 501455 NSE Code - GREAVESCOT Dear Sir/Madam, Sub: Investor Presentation In furtherance to our letter dated 1st February, 2023 and pursuant to Regulation 3
Slide 2: Transformation for Sustainable Growth
TRANSFORMATION FOR SUSTAINABLE GROWTH DEVELOPING THE COMPLETE MOBILITY ECOSYSTEM Q3 and 9 months of FY2023 Earnings Presentation (9th February 2023) POWERTRAIN ELECTRIC MOBILITY RETAIL FINANCE TECHNOLOGY
Slide 3: Q3 FY23 financial highlights
Q3 FY23 financial highlights Greaves Cotton recorded consolidated revenue of Rs.514 crore for Q3 FY23 Revenue EBITDA PAT • Auto applications business registered YoY growth of 136% Rs. 514 Cr Rs. 3Cr Rs. 6 Cr • Powertrain business has registered Y-o-Y revenue growth of 26% +6% y-o-y Margin: 0.6% Marg
Slide 4: Management commentary
Management commentary Strong net cash position of INR 1171 cr as of 31st December 2022 Nagesh Basavanhalli Strengthening the clean tech portfolio with e-powertrains Executive Vice Chairman Greaves Retail, a promising business, will evolve to offer a best-in- class omnichannel retail experience
Slide 5: Greaves signs binding term sheet to acquire 100% stake in Excel Controlinkage
Greaves signs binding term sheet to acquire 100% stake through multiple tranches in Excel Controlinkage Pvt Ltd. • Incorporated in 1994 by Mr. Vipul Gupta, Mr. Atul Gupta and Mr. Ashok Mrig, Excel is India’s leading manufacturer of motion control systems with integrated capabilities to manufacture P
Slide 6: Excel had normalised EBITDA margins of 28%
Excel had normalised EBITDA margins of 28%; Deal value Excel at 7.5x of FY23 Normalised EBITDA for first Tranche Particulars FY20 FY21 FY22 FY23 (F) Total Revenues 105 120 167 175 • Sustainable high EBITDA margins above 25% Normalised EBITDA* 20 27 45 50 • High ROCE of over 30% Financial Normalised
Slide 7: Diversification strategy continuing to impact the business
Diversification strategy continuing to impact the business Transitioning to meet the new battery norms impacted EV production and primary revenues in Q3 660 699 513 621 486 514 23 237 281 318 330 374 141 229 181 42 90 452 495 490 15 302 379 374 374 365 288 214 284 Q2FY18 Q2FY19 Q2FY20 Q2FY21 Q1FY22
Slide 8: Greaves Mobility Eco-System
Diversification strategy that began in 2016, is helping us build strong business portfolio Components R&D Powertrain Retail Service & Spares Finance GREAVES MOBILITY ECO-SYSTEM Democratizing sustainable mobility in India Q3 AND 9 MONTHS OF FY23 INVESTOR PRESENTATION 7
Slide 9: Corporate structure for sustainable growth
Corporate structure for sustainable growth Non- Auto Auto E2W E3W Multi-Brand EV Multi-Brand sales & retail service Enabling Businesses + • Poised to become India’s most complete mobility ecosystem player with unveil of 6 new electric 2 & 3 wheelers and entry into high margin electric powertrain bus
Slide 10: Developments in Greaves Powertrain – Auto & Non-Auto
Developments in Greaves Powertrain – Auto & Non-Auto Auto Non-Auto • Foray into electric powertrain • New orders received from recently added OEMs. • Ready with diesel and CNG engines upgrade for • Technically qualified to supply NASE engines to the Indian upcoming emission compliance- OBD-IIA Army.
Slide 11: Future ready with electric powertrain for mainstream India
Future ready with electric powertrain for mainstream India Accelerating EV transition with ‘Made in India’ electric powertrain solutions, underpinned by global design & technology Partners with UK-based design firm, Eta Green Power Ltd to bring exclusive technology to the Indian market To introduce
Slide 12: Greaves Retail – team being strengthened to build omni-channel network
Greaves Retail – team being strengthened to build omni-channel network Q3 AND 9 MONTHS OF FY23 INVESTOR PRESENTATION 11
Slide 13: Key business enablers: developing expertise across ecosystem
Key business enablers: developing expertise across ecosystem • A new team in place to drive growth • Aspires to be a technology convergence ccatalyzer for the company’s products, looping • Offering tech-enabled financing for back cutting-edge technology and solutions from electric vehicles around th
Slide 14: Design inspiration for new products
Design inspiration for new products Designed Engineered Made in India in India in India The inspiration for designing our new range of electric vehicles has been the magnificent bird, the Arctic Tern A full spectrum of products – across price points, & consumer segments Q3 AND 9 MONTHS OF FY23 INVES
Slide 15: Greaves at the Auto Expo
Greaves at the Auto Expo Q3 AND 9 MONTHS OF FY23 INVESTOR PRESENTATION 14
Slide 16: Auto Expo got widespread media coverage & reach
Auto Expo got widespread media coverage & reach Media Coverage Digital 505+ 64 Million Impressions coverages pre-expo + media launch + press notes/interviews/ press 33 Million Reach releases 7 Million Engagement Extensive media coverage – Print & Digital Ampere ‘Har Gully Electric’ brand campaign re
Slide 17: 2 wheeler product portfolio showcased at the Auto Expo
2 wheeler product portfolio showcased at the Auto Expo Connected, high performance scooter, with a true range of 100+ km in power mode Sporty, smart Robust, well designed Elegant scooter for Sporty scooter for the high-speed scooter & comfortable scooter the family youth for the discerning for the g
Slide 18: 3 wheeler product portfolio showcased at the Auto Expo
3 wheeler product portfolio showcased at the Auto Expo New age, well designed New age, well designed cargo 3W Futuristic cargo with new age design, 3W with comfortable seating with a strong body, and superior comfort & superior performance for driver & passenger ergonomics for drivers’ comfort Q3 AN
Slide 19: Making India a global EV destination
Making India a global EV destination Rolled out more than 1.15 Lakh E2W from its production facility in Ranipet. The facility was inaugurated in November 2021 The Capital Infusion from Abdul Latif Jameel Group will further boost the capex projects With a capacity of 250,000 units p.a. Ranipet plant
Slide 20: Financial performance
Financial performance Greaves Consolidated Result Q3 FY23 Segment Revenues (INR Cr.) 1% Revenue EBITDA PAT 486 514 27% Engines 44% 14 3 6 Aftermarket (6) E- Mobility Other 27% Q3 FY22 Q3 FY23 Greaves Standalone Result Q3 FY22 Segment Revenues Revenue EBITDA PAT 1% 365 301 Engines 37% 37% Aftermarket
Slide 21: Financial snapshot
Financial snapshot Particulars (Consolidated) Q3 Growth (%) Q2 Growth (%) 9MFY23 Growth (%) (Rs. Cr.) FY23 FY22 Y-o-Y FY23 Q-o-Q FY23 FY22 Y-o-Y Income from Operations 514 486 6% 699 (27%) 1,873 1,089 72% RMC (%) 69.3% 74.0% 73.3% 72.4% 73.6% Employee Cost 52 45 50 149 128 Other Expenses 102* 68 94
Slide 22: Segment volume
Segment volume Q3 Growth (%) Q2 Growth (%) 9MFY23 Growth (%) Volumes (Units) FY23 FY22 Y-o-Y FY23 Q-o-Q FY23 FY22 Y-o-Y Auto Engines 18,327 8,141 125% 16,207 13% 50,646 26,234 93% Non-Auto Engines 8,585 8,490 1% 9,563 (10%) 28,258 28,969 (2%) Engines 26,912 16,631 62% 25,770 4% 78,904 55,203 43% Non
Slide 23: Balance sheet and cash flow trend
Balance sheet and cash flow trend (Rs. Cr.) Dec-21 Mar-22 Sep-22 Dec -22 Cash & Cash Equivalent 279 438 1,336 1,175 Short Term Debt 24 64 18 4 • Since its foray into electric mobility, Greaves as a group has raised and committed close to INR 1500 Long Term Debt 10 169 50 - crores for: • New products
Slide 24: In summary – driving growth momentum
In summary – driving growth momentum Consolidated revenue at INR 514 cr in Q3FY23, Introducing technology enabled and energy Financial R&D efficient products, with a greater focus on the Highlights & cash position of INR 1171 cr as on 31st December focus 2022 battery safety standards Diversification
Slide 25: Transitioning to a more forward looking, clean tech business
Transformation for sustainable growth Transitioning to a more forward looking, clean tech business with • Motors and controllers for e-powertrain • New acquisition of Excel Controlinkage Pvt Ltd offering significant synergies • Large portfolio of electric 2 & 3 wheelers • Multi-brand retail • EV fin
Slide 26: Awards and recognition
Awards and recognition Great Place to Manufacturing Automotive Social Impact Work- and Quality Promising Hall of Fame Award 2021 by Second year in a Excellence Brands 2021 Nov 2021 by ACEF Asian row 2021 by by ET ET Polymers Leaders Quantic Q3 AND 9 MONTHS OF FY23 INVESTOR PRESENTATION 25
Slide 27: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Greaves Cotton (“Greaves” or the Company) future business developments an
Slide 28: Thank You
SOUND FUNDAMENTALS| STABLE CASHFLOW | AGILE STRUCTURE GROWING BRANDS | GROWING RETAIL FOOTPRINT | GROWING CUSTOMER BASE MOBILITY SOLUTIONS | MOVING PEOPLE | MOVING CARGO THANK YOU REGISTERED OFFICE For further information, please contact Greaves Cotton Limited Jaylaxmi Kumar Anvita Raghuram / Bhusha