Ceat Limited · NSE:CEATLTD
Ceat — Q2 FY2022 Earnings Presentation
33 slides from Ceat's earnings presentation, Oct 25, 2021
Slide 1: Cover letter to stock exchanges for Q2 FY22 investor presentation
October 25, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai 400001 Mumbai 400051 Security Code: 500878 Symbol: CEATLTD NCD Symbol: CL23,CL25 CP Listed ISIN: INE482A14AL2, INE482A14AM0, INE4
Slide 2: Q2 FY22 – Investor Presentation
An Group Company Q2 FY22 – Investor Presentation | 25th October 2021
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Table of Contents
Table of Contents Section 1: RPG Group Overview 4-6 Section 2: Business Overview 7-17 Section 3: Operational & Financial Overview 18-26 Section 4: Environment, Social and Governance (ESG) Overview 27-31
Slide 5: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 6: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979. The group currently operates in various UNLEASHTALENT industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in TOUCHLI
Slide 7: RPG Group: Key Financials
RPG Group: Key Financials FY17-21 Gross Total Income (Rs Cr.) FY17-21 CAGR: CAGR: 7.0% EBITDA PAT EBITDA 10.1% 3,006 PAT 8.9% 26,269 2,594 23,833 24,682 2,423 21,766 2,218 20,052 2,045 1,377 1,031 1,099 1,111 980 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Market Cap Net Worth ROE ROCE 12,000.
Slide 8: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 9: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Pierre E. Cohade Chairman, Non Executive Director Managing Director COO and Whole Time Director Non Executive Non Independent Director Atul C. Choksey Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive N
Slide 10: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Senior Vice President Managing Director Chief Financial Officer Chief Operating Officer – Human Resources Dilip Modak Saurav Mukherjee Peter Becker Senior Vice President Senior Vice President Senior Vice President – Manufacturing
Slide 11: Overview
Overview India’s leading tyre company with over 60 yrs of presence Distribution Network : 4,400+ dealers, 550+ CEAT special channels 7 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 player
Slide 12: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 13: Differentiated Products
1 Differentiated Products Strengthening OEM Relationships Key developments ▪ Recent entries in new models – Mahindra Bolero Neo, Okaya EV Scooter, Olectra EV Bus, Ashok Leyland Ecomet, Hero MotoCorp HF Deluxe (BSVI), Hero Glamour Refresh, Mahindra Jeeto Z Series, Nissan Magnite, Renault Kiger, Mahin
Slide 14: Strong Brand
2 Strong Brand SecuraDrive New Campaign Gripp X3 New Campaign Stronger Association with IPL 13
Slide 15: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) CEAT Tyre Stop 4,400+ 550+ 300+ CEAT Special Channels Dealers & Channel Partners (Shoppe / SIS) Distributors 45,000+ 580+ Sub-dealers Districts 14
Slide 16: Deep OEM Partnerships
4 Deep OEM Partnerships TATA Motors Ashok Leyland VECV Escorts AMW TAFE Mahindra Daimler Eicher SML Isuzu JBM Group Maruti Suzuki TATA Motors Mahindra Renault Hyundai KIA Nissan Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piag
Slide 17: World Class R&D
5 World Class R&D State-of-the-Art R&D Center, Halol R&D Office, Germany ▪ Significant investment on tyre testing infrastructure like Anechoic Chamber, Flat Track Test Machine ▪ Focus on upcoming technologies like Electric Vehicle, Sustainability and Smart Tyres ▪ 100+ patent filings till date 16
Slide 18: Expanding Global Reach
6 Expanding Global Reach Key Export Clusters Emerging markets ▪ Exports to 100+ Countries in 7 Europe Cluster clusters US Cluster ▪ Sri Lanka: Manufacturing facility and Leadership position Middle East in the market and with 50+% Cluster market share Far East 1 Cluster Far East 2 Cluster ▪ Focused p
Slide 19: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 20: Q2 FY22 Operational Highlights
Q2 FY22 Operational Highlights Customer Day CEAT Shoppe Design Refresh CEAT personnel interacted with customers and end users across India New Launches on CEAT tyres Unveiled New Premium look of CEAT Shoppe Mahindra Bolero Neo Oreva EV Bike 19
Slide 21: Consolidated: Q2 FY22 Financial Highlights
Consolidated: Q2 FY22 Financial Highlights Q2 FY22 v/s Q1 FY22 (Q-o-Q) Q2 FY22 v/s Q2 FY21 (Y-o-Y) ▪ Net revenue grew by 28.6% to INR 2,452 Crs from INR ▪ Net revenue from operations grew by 23.9% to INR 2,452 1,906 Crs Crs from INR 1,978 Crs ▪ Gross margin contracted to 36.9% from 38.9% ▪ Gross mar
Slide 22: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 7,610 6,985 6,779 6,283 5,722 Net Sales 4,358 (INR Cr) FY17 FY18 FY19 FY20 FY21 H1 FY22 13.4% 16. 0% 14. 0% 12.0% 9.2% 10.2% 10.9% 1,019 Margin trends 12. 0% 9.5% EBITDA (INR Cr) 10. 0% 741 8.0 % 638 663 685 6.0 % EBITDA to Net 400 4.0 % Sales % 2.0 % 0.
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 9.0 % 450 8.0 % 400 6.3% PAT trends 5.7% 7.0 % 350 6.0 % 300 3.6% PAT (INR Cr) 3.7% 3.4% 5.0 % 250 200 432 4.0 % 361 3.0 % PAT to Net Sales% 1.5% 150 100 233 251 230 2.0 % 65 1.0 % 50 - 0.0 % FY17 FY18 FY19 FY20 FY21 H1 FY22 Notes All figures are per IND AS 22
Slide 24: Consolidated: Q2 and H1 FY22 Financials
Consolidated: Q2 and H1 FY22 Financials All figures in INR Cr Parameter Q2 FY21 Q1 FY22 Q2 FY22 QoQ YoY H1 FY21 H1 FY22 YoY Net Revenue from operations 1,978.5 1,906.4 2,451.8 29% 24% 3,098.6 4,358.2 41% Raw Material 1,059.2 1,164.3 1,547.0 33% 46% 1,728.4 2,711.3 57% Gross margin 919.3 742.1 904.8
Slide 25: Consolidated: Leverage / coverage Profile
Consolidated: Leverage / coverage Profile Total Debt (INR Cr) 924 872 1,498 1,929 1,418 2,004 2,0 00 LT Debt (INR Cr) 1,693 1,657 Debt breakup 1,5 00 1,274 1,397 ST Debt (INR Cr) 866 0.66 1,0 00 0.54 0.60 0.38 676 0.42 500 D/E 0.33 58 196 224 236 21 347 0 FY 17 FY18 FY19 FY20 FY21 H1 FY22 1,019 Leve
Slide 26: Standalone: Q2 and H1 FY22 Financials
Standalone: Q2 and H1 FY22 Financials All figures in INR Cr Parameter Q2 FY21 Q1 FY22 Q2 FY22 QoQ YoY H1 FY21 H1 FY22 YoY Net Revenue from operations 1,965.1 1,897.8 2,432.3 28% 24% 3,081.3 4,330.1 41% Raw Material 1,049.3 1,163.8 1,535.9 32% 46% 1,718.9 2,699.7 57% Gross margin 915.9 733.9 896.5 22
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 2,000 40,00,000 35,00,000 1,500 30,00,000 25,00,000 1,000 20,00,000 15,00,000 500 10,00,000 5,00,000 - - Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Source : Stock Exchange. The above data is updated till 30th Septe
Slide 28: Section 4: Environment, Social and Governance (ESG) Overview
Section5: Section 4:Operational Environment,& Social, Financial Governance (ESG) Overview Overview
Slide 29: Sustainability Goals
Sustainability Goals Manufacturing ✓ Plant electricity through rooftop / captive solar plants ✓ Using briquette as fuel Materials Transportation ✓ Greener raw materials; Reduce Carbon Footprint by 50% ✓ Network optimization recycled crumb rubber by 2030 ✓ Alternate Mode of Transport ✓ ESG compliant
Slide 30: Commitment to Environment
Commitment to Environment • Nasik, Bhandup and Nagpur plant are certified for energy management system • Rooftop solar commissioned at Nagpur and Ambernath factories. Installation completed at Halol and Chennai. 26% of plant power requirement through rooftop solar till date • Tied-up with TATA Power
Slide 31: Commitment to Diversity and Inclusion
Commitment to Diversity and Inclusion • Flexible and inclusive HR policies like employee referral incentive for gender and geography diversity hirings • Gender diversity in new hirings at 29.5% • Internship program launched for “Women Returning to Work” and “Specially abled candidates” • 1st batch o
Slide 32: Commitment to Society
Commitment to Society • Education: − Functional English training for school children − Teachers empowered to create right learning environment for students − Magic classroom on national television (DD) − ‘A story a day’ initiative which involved sharing stories for students • Community − Covid fever
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