Slide 1: Q2 FY2018 Earnings Presentation
DYNAMATIC TECHNOLOGIES LIMITED Q2 FY2018 EARNINGS PRESENTATION Zp Je = i cr. . HYDRAULICS AEROSPACE & DEFENCE AUTOMOTIVE
Slide 2: Born to Fly
BORN TO FLY
Slide 3: Q2 FY2018 highlights
Q2 FY2018 • Net Revenue of Rs. 3,421 mn; up 8.6% from Rs. 3,148 mn in Q1 FY18 Q1 FY2018 o Aerospace & Defence segment revenue of 26% Rs. 898 mn; up 27.4% from Rs. 705 mn 22% last quarter 57% 51% 20% o Hydraulics segment revenue of Rs. 790 mn; up 22.9% from Rs. 643 mn last 23% quarter • EBITDA of Rs.
Slide 4: Management commentary on the results
Commenting on the results, said: “Two of the most historic reforms – Goods and Services Tax (GST) and application of IND-AS were implemented in the midst of the financial year. During the Q2 FY2018, the Company has transitioned seamlessly, both in operational and financial sphere, reflecting the int
Slide 5: Consolidated financial results
Revenue 3,421 3,813 3,148 6,569 7,751 EBITDA 319 457 217 536 937 Profit After Tax (PAT) 13 100 (95) (82) 228 Basic EPS (Rs.) 2.05 15.79 (14.92) (12.87) 36.00 Total Comprehensive 50 79 (40) 10 124 Income (Rs.) • Q2 FY2018 revenues from Aerospace & Defence and Hydraulics segments increased by 7.8% and
Slide 6: Currency impact: EURO, GBP and USD vs. INR
EURO vs. INR 73.31 75.15 (1.84) 71.02 2.29 GBP vs. INR 83.34 92.02 (8.68) 82.47 0.88 USD vs. INR 64.37 66.95 (2.57) 64.46 (0.08) EURO GBP EURO Revenue (Rs. mn) (33.4) (64.2) (1.1) (132.9) EBITDA (Rs. mn) (1.2) (6.3) (1.1) (42.8) • On a constant currency basis, Q2 FY2018 revenue, if adjusted for a fo
Slide 7: Aerospace & Defence segment
UK 32% India 610 531 458 1,067 1,031 UK 288 302 247 535 649 India 68% India 174 216 102 276 421 UK 32 42 30 62 113 • Continuing order book execution led to substantial revenue growth in Q2 FY2018 • Increase in raw material expense on account of new projects mix combined with higher headcount for new
Slide 8: Hydraulics segment
UK 30% India 556 481 446 1,002 924 UK 234 211 197 431 449 India 70% India 75 89 59 134 164 UK 31 7 (0) 30 24 • Hydraulics segment continued its strong performance during Q2 and 6M FY2018, mainly on account of increased order offtakes. UK operations also performed well during Q2 FY2018. Also, for 6M
Slide 9: Automotive segment
India 20% India – M 192 186 183 375 386 India – F 256 258 237 493 542 India – F: Inter Co.Settlement (104) (163) (97) (201) (342) Germany Germany 1,388 2,022 1,478 2,866 4,131 80% India – M (34) (21) (29) (63) (42) India – F (8) 16 3 (5) 31 Note: India – M: India – Machining Germany 58 102 67 125 22
Slide 10: Quarterly revenue, segment mix and EBITDA trend
3,813 3,783 3,520 22% 25% 24% 22% 26% 3,421 18% 20% 19% 20% 7.5% 3,148 8.6% 23% (3.2)% (16.8)% 60% 55% 58% 57% 51% (7.7)% Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Automotive Hydraulics Aerospace & Defence 457 388 335 319 217 12.0% 10.3% 9.5% 9.3% 6.9% Q2 FY17 Q
Slide 11: Debt, net worth and credit rating
(Rs. million) Sept 30, 2017 June 30, 2017 Long Term 1.9x 4,913 5,099 Borrowings 1.1x 1.2x Short Term 0.9x 2,084 1,798 Borrowings 0.4x Total Debt 6,997 6,897 195 Less: Cash & Cash 182 180 419 319 177 Equivalents 166 Net Debt 6,577 6,579 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Net Worth 3,350 3,325 No
Slide 12: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products for business the automotive, hydraulic, aerospace and defense industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 13: Vertically Integrated Facilities, R&D and customers
Vertically • Advanced iron foundry in India and Germany. Also has aluminium foundry in India for Integrated captive use Facilities • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of manufacturing highly intricate castings • In-house division for design validation and op
Slide 14: Combination of Stable and High Growth Businesses
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components • Audi • Hyundai including engine, transmission, • BMW • Nissan turbocharger and chassis parts 50.6% of Q2 • Daimler • Tata Motors FY18 • Metallurgical ferrous and • Ford •
Slide 15: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors • Samena Capital and Citi Group Others Promoters • HDFC Mutual Fund 22.6% 50.2% • Alchemy and Group • SBI Mutual Fund DIIs • Goldman Sachs 12.4% • Mukul Agarwal and Group • Premier Investment Fund FIIs • Cyril Traders 14.8% •
Slide 16: Income statement
Net Sales / Income from Operations (Net of Excise Duty) 3,421 3,813 Other Operating Income Cost of Raw Materials Consumed 1,612 2,274 Changes in Inventories of Finished Goods, WIP and Stock in Trade 158 (163) Employee Benefit Expenses 599 557 Other Expenditure 732 688 Depreciation and Amortization E
Slide 17: Balance sheet: assets
Goodwill 907 Fixed Assets 7,139 Non-Current Investment 17 Deferred tax asset (net) 0 Long Term Loans and Advances 156 Other Non Current Assets 42 Inventories 2,659 Trade Receivables / Sundry Debtors 1,779 Cash and Cash Equivalents 256 Bank Balance Other than Cash 164 Other Financial Assets 1 Short-T
Slide 18: Balance sheet: equity and liabilities
Share capital 63 Reserves and surplus 3,286 Money Received against Share Warrants 0 Non-controlling interest (Preference capital) 0 Long-Term Borrowings 4,489 Deferred Tax Liabilities (net) 89 Other Long Term Liabilities 16 Long Term Provisions 125 Short-Term Borrowings 2,084 Trade Payables 2,503 Ot
Slide 19: Forward-looking statements 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 Dynamatic Technologies’ (“Dynamatic” or the “Company”) future business developments
Slide 20: Dynamatic Technologies Limited contact details
Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India +91 80 2839 4933 / 34 / 35 +91 80 2839 5823 hanuman.sharma@dynamatics.net Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India +91 80 2839 4933 / 34 / 35 +91 80 2839 5