Rane Holdings Limited · NSE:RANEHOLDIN
Rane — Q4 FY21 Earnings Presentation
46 slides from Rane's earnings presentation, Jun 14, 2021
Slide 1: Cover letter to stock exchanges: earnings presentation submission
Registered Office Tel: 91 44 2811 2472 “Maithri” URL; www.ranegroup.com 132, Cathedral Road, Chennai 600 086, India. CIN: L35999TN1936PLC002202 __________________________________________ Rane Holdings Limited ____________________________________ // Online submission // RHL / SE /16/ 2021-22 June 14,
Slide 2: Rane Group Earnings Presentation Q4 FY21
Rane Group Earnings Presentation | Q4 FY21 J u n e 2 0 2 1 www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 1
Slide 3: Outline
Outline › Overview › Industry Performance Review – Q4 FY21 › Rane Group Performance Review – Q4 FY21 › Group Companies Performance Highlights – Q4 FY21 Not to be copied or distributed without permission of Rane Holdings Limited 2
Slide 4: Overview
Overview › Founded in 1929 for trading in automobile and automotive parts; Headquartered in Chennai, India. 5% 1% › Commenced manufacturing operations in 1959. 8% › Group Sales of INR 4,036 Cr (~USD 550 Mn) › Most preferred manufacturer and supplier for global 11% auto majors › Serves a variety of i
Slide 5: Business Portfolio INR 4,036 Cr
Business Portfolio 1% Revenue by 11% Markets Group Sales in 2020-21: INR 4,036 Cr (~USD 550 Mn) UO 21% with 22% from International markets 67% 4% 2% Revenue by Markets Revenue by Vehicle Segment (India OEM) 61% 9% 67% India - OEM Passenger Vehicle 24% Commercial Vehicle 21% International - OEM 9% Tr
Slide 6: Rane Group – Business Structure
Rane Group – Business Structure Steering and Rane TRW Steering Rane (Madras) Ltd. Rane NSK Steering Suspension Systems Pvt Ltd. Steering & Linkages Division Systems Pvt Ltd. Systems Steering Gear Division Friction Rane Brake Lining Ltd. materials Valve Train Rane Engine Valve Ltd. Components RANE GR
Slide 7: Rane Group – Holding Structure
Rane Group – Holding Structure Promoters Rane Holdings Ltd. (RHL) 46% Subsidiaries Joint Ventures Rane (Madras) Ltd. (RML) Rane TRW Steering Systems 68% Pvt. Ltd. (RTSS) 50% Rane Light Metal Castings Inc. (RLMCA) 100% Rane NSK Steering Systems Rane Engine Valve Ltd. Pvt. Ltd. (RNSS) 49% (REVL) 55% R
Slide 8: Outline
Outline › Overview › Industry Performance Review – Q4 FY21 › Rane Group Performance Review – Q4 FY21 › Group Companies Performance Highlights – Q4 FY21 Not to be copied or distributed without permission of Rane Holdings Limited 7
Slide 9: Industry Performance Review (Q4 FY21)
Industry Performance Review (Q4 FY21) Production YoY Rane Group Sales Growth Rane Group Revenue Vehicle Segment Growth# in % YoY in % (India OEM) Split * (India OEM) Passenger Cars (PC) 13% 26% 41% Utility Vehicles (MUV) 50% 40% 18% Vans 9% 15% 1% - Total Passenger Vehicle 25% 30% 60% Small Commerci
Slide 10: Outline
Outline › Overview › Industry Performance Review – Q4 FY21 › Rane Group Performance Review – Q4 FY21 › Group Companies Performance Highlights – Q4 FY21 Not to be copied or distributed without permission of Rane Holdings Limited 9
Slide 11: Group Aggregate Performance Review (Q4 FY21)
Group Aggregate Performance Review (Q4 FY21) Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 9% -4.5 Q4 FY2020 Q4 FY2021 8.3% 1,395.3 126.0 -3.3% 51.1% -0.4% 38.4% 1,008.3 83.4 -46.6 Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 * PBT includes Exceptional items › Total Revenue increased by 38.4% from
Slide 12: Group Aggregate Performance Review (YTD)
Group Aggregate Performance Review (YTD) Rs Cr FY20 FY21# Total Revenue 4,436.8 4,140.4 EBITDA 351.2 299.9 EBITDA Margin 7.9% 7.2% PBT Before Exceptional Items 73.7 41.3 Exceptional Income / (Expenses)* (106.5) (154.9) PBT (32.8) (113.6) PBT Margin -0.7% -2.7% PAT (28.3) (96.7) PAT Margin -0.6% -2.3
Slide 13: RHL Consolidated Performance Review (Q4 FY21)
RHL Consolidated Performance Review (Q4 FY21) Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 7.7% 8.3% Q4 FY2020 Q4 FY2021 52.1 25.5% 34.4% 675.5 -3.7 41.5 -2.7 502.8 -0.4% -0.7% Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 * PBT includes net profit/loss from JV and Exceptional items › Total Revenu
Slide 14: RHL Consolidated Performance Review (YTD)
RHL Consolidated Performance Review (YTD) Rs Cr FY20 FY21# Total Revenue 2,184.0 2,057.0 EBITDA 171.2 133.8 EBITDA Margin 7.8% 6.5% PBT Before Share of profit/ (loss) of JV & Exceptional Items (7.6) (26.2) Share of profit/ (loss) of JV (Net of Exceptional items & (0.4) (27.3) Tax) Exceptional Income
Slide 15: RHL: (Consolidated) Ratios and Return
RHL: (Consolidated) Ratios and Return Particulars FY20 FY21 Debt: Equity (in times) 0.77 0.86 EPS (basic) (Rs.) (1.90) (35.42) DPS (Rs.) 8.0 - Dividend Payout (%) 25% - BV (Rs.) 575.94 535.44 Not to be copied or distributed without permission of Rane Holdings Limited 14
Slide 16: Outline
Outline › Industry Performance Review – Q4 FY21 › Rane Group Performance Review – Q4 FY21 › Group Companies Performance Highlights – Q4 FY21 Not to be copied or distributed without permission of Rane Holdings Limited 15
Slide 17: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) Not to be copied or distributed without permission of Rane Holdings Limited 16
Slide 18: RML Standalone – Operational Performance Review
RML Standalone – Operational Performance Review Business Split (Q4 FY21) Market Environment By Market (%) › Strong demand across vehicle segments in Indian market Intl OEM, 23 India OEM&OES, 61 › Strong demand from International customers for Steering products › Robust demand in Indian Aftermarket s
Slide 19: RML Standalone – Financial Performance Review
RML Standalone – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 9.3% 6.7% 380.4 Q4 FY2020 Q4 FY2021 25.6 259.4 6.1% -34.4 46.6% 24.2 -13.3% -54.1 Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 -14.2% * PBT includes Exceptional items › Total Revenue increased by 46.6% from
Slide 20: RML – Standalone Financials (YTD)
RML – Standalone Financials (YTD) Rs Cr FY20 FY21# Total Revenue 1,119.2 1,151.0 EBITDA 98.5 93.2 EBITDA Margin 8.8% 8.1% PBT Before Exceptional Items 14.1 17.5 Exceptional Income / (Expenses)* (37.6) (62.5) PBT (23.4) (45.0) PBT Margin -2.1% -3.9% PAT (24.4) (50.7) PAT Margin -2.2% -4.4% Total Comp
Slide 21: RML Consolidated – Financial Performance Review
RML Consolidated – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT (Rs cr.) 3.7% 2.4% Q4 FY2020 Q4 FY2021 412.9 40.6% 10.9 9.9 293.6 8.7% -12.1 -2.9% -17.6 Q4 FY2020 Q4 FY2021 -6.0% Q4 FY2020 Q4 FY2021 › Total Revenue increased by 40.6% from Rs. 293.6 Cr in Q4 FY20 to Rs. 412
Slide 22: RML – Consolidated Financials (YTD)
RML – Consolidated Financials (YTD) Rs Cr FY20 FY21# Total Revenue 1,291.5 1,274.3 EBITDA 60.6 37.7 EBITDA Margin 4.7% 3.0% PBT Before Exceptional Items (42.6) (55.5) Exceptional Income / (Expenses) (2.0) - PBT (44.5) (55.5) PBT Margin -3.4% -4.4% PAT (45.5) (61.1) PAT Margin -3.5% -4.8% Total Compr
Slide 23: RML: Ratios and Return
RML: Ratios and Return RML Standalone FY20 FY21 Debt: Equity (in times) 1.19 0.99 RoCE% 7.1% 6.4% EPS (basic) (Rs.) -20.37 -34.80 BV (Rs.) 239.71 211.66 RML Consolidated FY20 FY21 Debt: Equity (in times) 2.56 2.53 RoCE% -0.8% -4.4% EPS (basic) (Rs.) -37.95 -41.97 BV (Rs.) 146.46 124.89 Not to be cop
Slide 24: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) Not to be copied or distributed without permission of Rane Holdings Limited 23
Slide 25: REVL – Operational Performance Review
REVL – Operational Performance Review Business Split (Q4 FY21) Market Environment By Market (%) › Strong demand from Indian OE segment India Aftermarket, 8 › Lower offtake from International customers Intl OEM & India Aftermarket, 30 OEM&OES, 62 Operational Highlights By Vehicle Segment (%) › Plants
Slide 26: REVL – Financial Performance Review
REVL – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs. cr.) 6.4% Q4 FY2020 Q4 FY2021 6.3 -0.8 4.9% 28.6% -0.8% 98.5 70.1% 3.7 -5.5 76.6 -7.2% Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 * PBT includes Exceptional items › Total Revenue increased by 28.6% from Rs. 98.5 Cr in
Slide 27: REVL – Financials (YTD)
REVL – Financials (YTD) Rs Cr FY20 FY21# Total Revenue 358.1 304.9 EBITDA 13.3 (0.7) EBITDA Margin 3.7% -0.2% PBT Before Exceptional Items (25.3) (31.9) Exceptional Income / (Expenses) * - 22.2 PBT (25.3) (9.7) PBT Margin -7.1% -3.2% PAT (16.3) (6.1) PAT Margin -4.6% -2.0% Total Comprehensive Income
Slide 28: REVL: Ratios and Return
REVL: Ratios and Return Particulars FY20 FY21 Debt: Equity (in times) 1.09 1.09 RoCE% -6.6% -12.0% EPS (basic) (Rs.) -24.31 -9.06 BV (Rs.) 165.19 156.52 Not to be copied or distributed without permission of Rane Holdings Limited 27
Slide 29: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) Not to be copied or distributed without permission of Rane Holdings Limited 28
Slide 30: RBL – Operational Performance Review
RBL – Operational Performance Review Business Split (Q4 FY21) Market Environment By Market (%) Intl OEM & After › Robust demand across vehicle segments in India Market, 5 India OEM&OES, 52 › Higher pull in Aftermarket segment India Aftermarket, 43 Operational Highlights By Vehicle Segment (%) › Achi
Slide 31: RBL – Financial Performance Review
RBL – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT (Rs cr.) 18.2% 13.9% 18.2% 21.2 26.9% 12.0% 27.1% 27.7 47.4% 152.4 21.8 119.8 14.4 Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 › Total Revenue increased by 27.1% from Rs. 119.8 Cr in Q4 FY20 to Rs. 152.4 Cr
Slide 32: RBL – Financials (YTD)
RBL – Financials (YTD) Rs Cr FY20 FY21# Total Revenue 481.4 434.8 EBITDA 71.0 71.6 EBITDA Margin 14.7% 16.5% PBT Before Exceptional Items 44.7 46.9 Exceptional Income / (Expenses) - - PBT 44.7 46.9 PBT Margin 9.3% 10.8% PAT 34.3 31.8 PAT Margin 7.1% 7.3% Total Comprehensive Income 33.4 32.5 # The bu
Slide 33: RBL: Ratios and Return
RBL: Ratios and Return Particulars FY20 FY21 Debt: Equity (in times) 0.00 0.00 RoCE% 20.3% 20.1% EPS (basic) (Rs.) 43.39 40.45 DPS (Rs.) 17.0 25.0 Dividend Payout (%) 42% 61% BV (Rs.) 289.10 306.57 Not to be copied or distributed without permission of Rane Holdings Limited 32
Slide 34: Rane TRW Steering Systems Pvt. Ltd. (RTSS)
Rane TRW Steering Systems Pvt. Ltd. (RTSS) Not to be copied or distributed without permission of Rane Holdings Limited 33
Slide 35: RTSS – Operational Performance Review
RTSS – Operational Performance Review Business Split (Q4 FY21) Market Environment By Market (%) › Steering business: Increase in share of business helped to post faster growth India OEM&OES, › Occupant Safety business: Better schedules from export customers helped mitigate Intl OEM, 31 64 lower dema
Slide 36: RTSS – Financial Performance Review
RTSS – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT (Rs cr.) 6.7% 11.0% 72.5% 9.0% 38.4 115.2% 23.2 4.4% 40.9% 347.2 246.5 22.2 10.8 Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 › Total Revenue increased by 40.9% from Rs. 246.5 Cr in Q4 FY20 to Rs. 347.2 Cr
Slide 37: RTSS – Financials (YTD)
RTSS – Financials (YTD) Rs Cr FY20 FY21# Total Revenue 1,137.1 1,038.9 EBITDA 94.1 87.1 EBITDA Margin 8.3% 8.4% PBT Before Exceptional Items 43.2 33.3 Exceptional Income / (Expenses) - - PBT 43.2 33.3 PBT Margin 3.8% 3.2% PAT 33.2 24.9 PAT Margin 2.9% 2.4% Total Comprehensive Income 31.1 24.8 # The
Slide 38: RTSS: Ratios and Return
RTSS: Ratios and Return Particulars FY20 FY21 Debt: Equity (in times) 0.37 0.56 RoCE% 7.1% 9.6% EPS (basic) (Rs.) 37.99 28.55 DPS (Rs.) 14.0 14.0 Dividend Payout (%) 40% 49% BV (Rs.) 428.98 449.32 Not to be copied or distributed without permission of Rane Holdings Limited 37
Slide 39: Rane NSK Steering Systems Pvt. Ltd. (RNSS)
Rane NSK Steering Systems Pvt. Ltd. (RNSS) Not to be copied or distributed without permission of Rane Holdings Limited 38
Slide 40: RNSS – Operational Performance Review
RNSS – Operational Performance Review Business Split (Q4 FY21) Market Environment By Market (%) › Strong growth in passenger vehicle segment particularly from served models in MUV Intl OEM,… India OEM&OES, segment 100 Operational Highlights › Bawal Plant won the “Excellence in Health, Safety & Envir
Slide 41: RNSS – Financial Performance Review
RNSS – Financial Performance Review Total Revenue (Rs cr.) EBITDA (Rs cr.) PBT* (Rs cr.) 12.0% Q4 FY2020 Q4 FY2021 9.7% 45.7 -4.5 75.8% -1.7% 43.2% 382.1 -75.6 26.0 266.8 -19.8% Q4 FY2020 Q4 FY2021 Q4 FY2020 Q4 FY2021 * PBT includes Exceptional items › Total Revenue increased by 43.2% from Rs. 266.8
Slide 42: RNSS – Financials (YTD)
RNSS – Financials (YTD) Rs Cr FY20 FY21# Total Revenue 1,148.9 1,076.5 EBITDA 115.3 108.3 EBITDA Margin 10.0% 10.1% PBT Before Exceptional Items 59.6 54.7 Exceptional Income / (Expenses) * (104.6) (177.1) PBT (45.0) (122.4) PBT Margin -3.9% -11.4% PAT (29.6) (81.3) PAT Margin -2.6% -7.5% Total Compr
Slide 43: RNSS: Ratios and Return
RNSS: Ratios and Return Particulars FY20 FY21 Debt: Equity (in times) 0.18 0.78 RoCE% 19.7% 24.3% EPS (basic) (Rs.) -16.53 -45.39 BV (Rs.) 139.42 94.01 Not to be copied or distributed without permission of Rane Holdings Limited 42
Slide 44: Thank You
Thank You Rane Corporate Centre For further information, please contact: “Maithri" 132, Cathedral Road, investorservices@ranegroup.com or dpingle@christensenir.com Chennai - 600 086, India www.ranegroup.com Not to be copied or distributed without permission of Rane Holdings Limited 43
Slide 45: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion ACMA Automotive Component Manufacturers OEM Original Equipment Manufacturer Association OES Original Equipment Supplier Bps Basis point, 100 bps equal to 1% PAT Profit After Tax BV Book Value per share PBT Profit Before Tax DPS
Slide 46: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. T