Balkrishna Industries Limited · NSE:BALKRISIND
Balkrishna Industries — Q3 FY2023 Earnings Presentation
36 slides from Balkrishna Industries's earnings presentation, February 2023
Slide 1: Balkrishna Industries Ltd Investor Presentation
BALKRISHNA INDUSTRIES LTD Investor Presentation February‘2023
Slide 2: Safe Harbor
GROWING TOGETHER Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Balkrishna Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 3: Growing Together – Years of Growth
BK/T, GROWING TOGETHER WA YEARS OF GROWTH
Slide 4: Performance Snapshot – Q3FY23
Performance Snapshot – Q3FY23 GROWING TOGETHER Sales Volumes Revenue 66,480 MT Rs. 2,215 Crs EBITDA EBITDA margin PAT Rs. 423 Crs Rs. 19.1% Rs. 100 Crs Declared 3rd interim Dividend of Rs. 4/- per equity share PAT 4
Slide 5: Management Commentary
Management Commentary GROWING TOGETHER Currently, experiencing channel inventory The end demand is still holding up, but the channel The situation has been relatively clearance in end markets. The distribution issues of ordering continue to impact the volumes. better in North America however channel
Slide 6: Capex Status
Capex Status GROWING TOGETHER ▪ Commissioned 55,000 MTPA Carbon Black capacity along with Power Plant Carbon Black and ▪ The Project of advanced carbon material for 30,000 MTPA is proceeding as per schedule Captive Power Plant ▪ Project Capex cost - Rs. 650cr ▪ The Board had earlier intended to repl
Slide 7: Sales Volume Profile – 9MFY23
Sales Volume Profile – 9MFY23 GROWING TOGETHER In MT 2,88,795 +10% 2,27,131 2,28,505 2,11,261 1,99,213 2,01,760 FY18 FY19 FY20 FY21 FY22 9MFY23 All Figures on Standalone basis 7
Slide 8: Volume Profile
Volume Profile GROWING TOGETHER Segmental Sales Channel Sales Geographical Sales 3.1% 2.5% 10.5% 27.7% 33.7% 21.1% 9MFY23 9MFY23 9MFY23 49.4% 63.2% 69.8% 19.0% Agriculture OTR Others Replacement OEM Others Europe Americas India RoW All Figures on Standalone basis 8
Slide 9: Profit & Loss
Profit & Loss GROWING TOGETHER Standalone Particulars (Rs in Cr) Q3FY23 Q3FY22 YoY 9MFY23 9MFY22 YoY FY22 • Average Hedge rate for Sales (MT) 66,480 70,320 -5% 228,505 211,676 8% 288,795 Q3FY23 was Rs. 85 versus Revenue from Operations 2,142 2,030 7,493 5,893 8,267 average custom rate (used Realized
Slide 10: Net Forex Gain/(Loss)
Net Forex Gain/(Loss) GROWING TOGETHER Particulars (Rs in Cr) Q3FY23 Q3FY22 9MFY23 9MFY22 Foreign Exchange Fluctuation on Sales 73 49 255 94 Foreign Exchange Fluctuation on Others 6 14 35 36 Total Realised Gain/(Loss) – A 78 64 289 130 Total Unrealized Gain/(Loss) - B -166 17 -91 60 Net Forex Gain/(
Slide 11: Balance Sheet
Balance Sheet GROWING TOGETHER Particulars (Rs. Cr.) Sep’22 Mar’22 Particulars (Rs. Cr.) Sep’22 Mar’22 ASSETS EQUITY AND LIABILITIES Non-current assets 7,839 7,054 EQUITY 7,630 6,925 Property, Plant and Equipment 4,644 3,906 Equity Share Capital 39 39 Capital work-in-progress 1,281 1,258 Other Equit
Slide 12: Cash Flow
Cash Flow GROWING TOGETHER Particulars (Rs. Cr.) H1FY23 FY22 Operating profit before working capital changes 1,114 2,163 Changes in working capital -483 -825 Cash generated from operations 631 1,339 Direct taxes paid (net of refund) and others -177 -457 Net Cash from Operating Activities 454 881 Net
Slide 13: Resilient Business Model
GROWING TOGETHER Resilient Business Model Gross Cash and Cash equivalents of Rs. 2,082 Cr as on 31st December, 2022 Diversified Product Portfolio, spread across Agriculture, Industrial, Construction, Earthmoving, Mining, Port, Lawn and Garden and ATV tires Self Reliant in Carbon Black along with Mul
Slide 14: Strategy at BKT
GROWING TOGETHER Strategy at BKT 14
Slide 15: Our Focus Area
Our Focus Area GROWING TOGETHER Expand reach within existing Sales Expand the product portfolio by adding Reach 100% utilization levels at Bhuj Channels as well increase footprint large sized tires and strengthen Plant in the next few years within replacement segment and OEMs relationship with Custo
Slide 16: To Serve Global OEMs…
To Serve Global OEMs… GROWING TOGETHER The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only 16
Slide 17: With India Production and Global Sales
GROWING TOGETHER With India Production and Global Sales Waluj, Maharashtra Bhiwadi, Rajasthan Chopanki, Rajasthan India Our Manufacturing base Bhuj, Gujarat Mould plant, Dombivali Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of
Slide 18: Balkrishna Industries – A Snapshot
Balkrishna Industries – A Snapshot GROWING TOGETHER 01 Leading ‘Off-Highway Tire” Exporter BKT is India’s Leading player in the Global ‘Off Highway Tire (OHT)’ Market Wide and comprehensive product portfolio 02 Deep understanding of OHT market has led to capabilities to manufacture over 3,200 SKUs C
Slide 19: Our Strong Evolution
Our Strong Evolution GROWING TOGETHER 1987 1995 2002 2003 1st Plant in Aurangabad Production of ATV, inaugurated by Started Production of Plant in Bhiwadi, Off-Highway Tires Gardening and our Founder Chairman, Rajasthan earthmoving Tires Late Mr. M P Poddar 2011 2009 2008 2006 2004 Launch of Plant i
Slide 20: Business Practices Driving our Long-Term Sustainability
Business Practices Driving our GROWING TOGETHER Long-Term Sustainability Energy Efficiency Environment Waste Management • To ensure energy efficiency Initiated use of ‘Green • Controlled emissions through electrostatic • Implemented disciplined waste Energy’ – installing 5MW windmills and 2 MW solar
Slide 21: Outcomes of our Sustainability Process
Outcomes of our Sustainability Process GROWING TOGETHER Future Targets Key Performance • Zero Liquid Discharge (ZLD) 1:1 High-yield ratio between material • Green House Gas (GHG) emissions input & output with 99% efficiency leading to minimal process • Waste reduction Proportion of recyclable raw ma
Slide 22: Promoting Education, Health & Rural Development
Promoting Education, Health & Rural GROWING TOGETHER Development Our Endeavour is to improve the lives of children and adults, and our mission is to ensure health with dignity to every underprivileged children and adult 22
Slide 23: BKT – A Strong Global Brand from INDIA
GROWING TOGETHER BKT – A Strong Global Brand from INDIA 23
Slide 24: Strengthening BKT Brand: Americas
GROWING TOGETHER Strengthening BKT Brand : Americas BKT is the Official and Exclusive Tire manufacturer of MONSTER JAM and its fleet of Monster Trucks – Monster Jam is a top sporting event in America 24
Slide 25: Strengthening BKT Brand: Canada
GROWING TOGETHER Strengthening BKT Brand : Canada BKT Continental Cup – Curling: BKT is the Title Sponsor of Continental Cup 25
Slide 26: Strengthening BKT Brand: Spain, Europe
Strengthening BKT Brand: Spain, Europe GROWING TOGETHER BKT is the Official Global Partner for the Spanish Football League “La Liga” 26
Slide 27: Strengthening BKT Brand: Italy, Europe
Strengthening BKT Brand: Italy, Europe GROWING TOGETHER BKT is the Title Sponsor for the ITALIAN SERIE ‘B’ FOOTBALL CHAMPIONSHIP – THE NEWBORN - “SERIE BKT” 27
Slide 28: Strengthening BKT Brand: France, Europe
GROWING TOGETHER Strengthening BKT Brand: France, Europe BKT is the Sponsor for the “LIGUE de Football Professionel (LFP)” in France 28
Slide 29: Strengthening BKT Brand: France, Europe
GROWING TOGETHER Strengthening BKT Brand: France, Europe BKT Is Official Tire Supplier for Rugby World Cup France 2023 29
Slide 30: Rugby Championship
GROWING TOGETHER RUGBY CHAMPIONSHIP BKT is associated with United Rugby Championship 30
Slide 31: Strengthening BKT Brand: Europe
GROWING TOGETHER Strengthening BKT Brand : EUROPE Premium Partner of EUROLEAGUE BASKETBALL 31
Slide 32: Strengthening BKT Brand: Tractor of the Year - Europe
Strengthening BKT Brand : GROWING TOGETHER Tractor of the year (TotY) - EUROPE Team of expert journalists in agricultural mechanization, assign the Tractor of the Year (TotY) award to the ‘Best European Tractor’ 32
Slide 33: Strengthening BKT Brand: Australia
GROWING TOGETHER Strengthening BKT Brand : Australia BKT is the Official “OFF-HIGHWAY TIRE PARTNER” for KFC BIG BASH LEAGUE (THE AUSTRALIAN CRICKET LEAGUE) 33
Slide 34: Strengthening BKT Brand: India
Strengthening BKT Brand : India GROWING TOGETHER Official Partner of Teams in the Cricket T20 League for Season 14 The Brand Names and logos mentioned are the property of their respective owners and are used here for identification purposes only 34
Slide 35: Strengthening BKT Brand: India
Strengthening BKT Brand : India GROWING TOGETHER Click here for the BKT Video Ranveer Singh is the Brand Ambassador of BKT 35
Slide 36: Thank You
Thank You Company Investor Relations Advisor Balkrishna Industries Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L99999MH1961PLC012185 CIN - U74140MH2010PTC204285 Mr. M S. Bajaj Mr. Shogun Jain Senior President (Commercial) & CFO shogun.jain@sgapl.net msbajaj@bkt-tires.com +91 77383 77756 www.bkt-t
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