Talbros Automotive Components Limited · NSE:TALBROAUTO
Talbros Automotive Components — H1 FY20 Earnings Presentation
37 slides from Talbros Automotive Components's earnings presentation, Nov 14, 2019
Slide 1: Investor Presentation November 2019
1 INVESTOR PRESENTATION November 2019 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Talbros Automotive Components Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscrib
Slide 3: Talbros Automotive Components Ltd (TACL) - Group
Talbros Automotive Components Ltd (TACL) - Group Product Portfolio Entities TACL Group Turnover*(Rs. Crs) FY19 H1 FY20 TACL Standalone 333 138 Gaskets Nippon Lealkless Talbros Pvt Ltd 122 57 H1 FY20 351 Forgings TACL Standalone 166 67 FY19 V/S 803 Magneti Marelli Talbros Chassis Chassis Components 1
Slide 4: TACL Group – Corporate Structure
TACL Group – Corporate Structure Figures in Rs. Crores FY19^ H1 FY20^ Talbros Auto Components Limited – Group Turnover Gaskets 333 138 Talbros Automotive Components Ltd. Forgings 166 67 FY19 H1 FY20 40% 50% 50% 803 351 Nippon Leakless Talbros Pvt Magneti Marelli Talbros Talbros Marugo Rubber Pvt Ltd
Slide 5: FY20 Guidance: Revised
FY20 Guidance: Revised Group Turnover# Rs. 675 – 700 Crs Auto Sector has been hit by multiple Headwinds Few of our key customers have undertaken Revenue# prolonged production Revised FY20 (As per Ind AS) shutdowns thus Target Rs. 435 – 475 Crs hampering our growth Based on the above we have revised
Slide 6: Consolidated H1 FY20 Highlights
Consolidated H1 FY20 Highlights Commenting on the performance Mr. Anuj Talwar, Jt. Managing Director, Talbros Automotive Components Limited said: 201 Crores “The first six months of FY20 have been extremely challenging for the Indian automotive industry. The only silver lining in such difficult time
Slide 7: Consolidated Q2 FY20 Performance Highlights
Consolidated Q2 FY20 Performance Highlights Rs. Crores Total Income from Operations^ EBIDTA^ PAT 129.2 15.6 7.6 92.1 10.2 3.0 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 As per Ind AS ^ Includes other income 7
Slide 8: Consolidated H1 FY20 Performance Highlights
Consolidated H1 FY20 Performance Highlights Rs. Crores Total Income from Operations^ EBIDTA^ PAT 253.3 29.9 13.8 201.2 22.5 7.6 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 As per Ind AS ^ Includes other income 8
Slide 9: Q2 FY20 JV’s Performance Highlights
Q2 FY20 JV’s Performance Highlights Nippon Leakless Talbros Pvt Ltd* Magneti Marelli Talbros Chassis Systems Talbros Marugo Rubber Pvt Ltd* Pvt Ltd* Total Income from Operations Total Income from Operations Total Income from Operations 13.5 18.2 7.0 11.2 16.2 5.5 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q
Slide 10: H1 FY20 JV’s Performance Highlights
H1 FY20 JV’s Performance Highlights Nippon Leakless Talbros Pvt Ltd* Magneti Marelli Talbros Chassis Systems Talbros Marugo Rubber Pvt Ltd* Pvt Ltd* Total Income from Operations Total Income from Operations Total Income from Operations 26.5 33.9 32.6 12.8 22.8 11.6 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19
Slide 11: Q2 FY20 Consolidated Profit & Loss Statement
Q2 FY20 Consolidated Profit & Loss Statement Particulars (Rs. In crores) Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 Revenue from Operations (Net of Excise) 90.7 128.3 198.2 251.5 Other Income 1.3 0.9 2.9 1.8 Total revenue from Operation 92.1 129.2 201.2 253.3 Raw Material 49.0 72.4 107.7 141.2 Employee Cost 14
Slide 12: H1 FY20 Consolidated Balance Sheet
H1 FY20 Consolidated Balance Sheet ASSETS Sep-19 Mar-19 EQUITY AND LIABILITIES Sep-19 Mar-19 Non-current assets Equity Property, plant and equipment 142.5 139.7 Equity Share capital 12.3 12.3 Capital work-in-progress 8.9 6.4 Other equity 184.3 186.4 Intangible assets 1.6 1.1 Sub-total - Shareholders
Slide 13: H1 FY20 Consolidated Cash Flow Statement
H1 FY20 Consolidated Cash Flow Statement Particulars (Rs In Cr) H1 FY20 H1 FY19 PBT 9.0 18.7 Adjustments 13.0 10.9 Operating profit before working capital changes 22.1 29.6 Changes in working capital -9.8 -44.7 Cash generated from operations 12.3 -15.1 Direct taxes paid (net of refund) -1.5 -2.1 Net
Slide 14: Q2 FY20 Standalone Profit & Loss Statement
Q2 FY20 Standalone Profit & Loss Statement Particulars (Rs. In crores) Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 Revenue from Operations (Net of Excise) 90.7 128.3 198.2 251.5 Other Income 2.5 2.1 4.1 4.2 Total revenue from Operation 93.3 130.4 202.4 255.7 Raw Material 49.0 72.4 107.7 141.2 Employee Cost 14.1
Slide 15: H1 FY19 Standalone Balance Sheet
H1 FY19 Standalone Balance Sheet ASSETS Sep-19 Mar-19 EQUITY AND LIABILITIES Sep-19 Mar-19 Non-current assets Equity Property, plant and equipment 142.5 139.7 Equity Share capital 12.3 12.3 Capital work-in-progress 8.9 6.4 Other equity 166.8 171.9 Intangible assets 1.6 1.1 Sub-total - Shareholders'
Slide 16: H1 FY20 Standalone Cash Flow Statement
H1 FY20 Standalone Cash Flow Statement Particulars (Rs In Cr) H1 FY20 H1 FY19 PBT 6.1 16.1 Adjustments 15.9 13.5 Operating profit before working capital changes 22.1 29.6 Changes in working capital -9.8 -44.7 Cash generated from operations 12.3 -15.1 Direct taxes paid (net of refund) -1.5 -2.1 Net C
Slide 17: Business Confirmations & Strategy
Business Confirmations & Strategy Gaskets Standalone Nippon Leakless JV* New Orders received in the recent past: ▪ Export Order from a European OEM worth Rs. 5 Cr p.a. +5% ▪ To supply Integrated Wire Harness Gasket to an OEM worth Rs. 15-20 Crs +10% 333 47 49 p.a. Supplies to start from Q1FY21 292 4
Slide 18: Business Confirmations & Strategy
Business Confirmations & Strategy Magneti Marelli Talbros Chassis Systems Pvt Ltd (MMT)* ▪ Order received in the past quarters: ▪ from a Domestic OEM for Lower Control Arm worth Rs. 10 Crs 65 +28% p.a. Supplies to start from Q1FY21 54 ▪ from an OEM in UK worth ~Rs. 35+ Crores per annum 43 31 33 ▪ fr
Slide 19: Leadership Team driving Growth & Profitability
Leadership Team driving Growth & Profitability Joint Managing Director Director & Group CFO Anuj Talwar Navin Juneja Is a Bachelor in Business Is a B.Sc. (Mathematics) and Administration from college of Chartered Accountant (FCA). He is William & Mary, Virgina, USA and working as Finance Head of Tal
Slide 20: One of the Most Hedged Auto Component Players
About Us Over 6 Decades of experience in Auto Component manufacturing One of the Diversified Auto Component player with presence across Two Wheelers, Passenger, Commercial Vehicles and Farm Equipment's Most Hedged Auto Wide client base, ~40% revenue from top 5 clients Component Businesses across OEM
Slide 21: Diversified Portfolio
Diversified Portfolio H1FY20 - Revenue Contribution Segments Product Portfolio Market Exposure TMR 4% ▪ 2 Wheelers ▪ Gaskets ▪ OEMs NLK 8% ▪ 3Wheelers ▪ Heat Shields ▪ After Market MMT ▪ Passenger Vehicles ▪ Forgings ▪ Exports 12% ▪ Chassis Systems ▪ Commercial Vehicles ▪ Others Forgings ▪ Anti vibr
Slide 22: Growth Strategy
Growth Strategy 22
Slide 23: Strong Global Partnerships - Joint Ventures
Strong Global Partnerships - Joint Ventures Joint Ventures About the JV Products Customers ▪ Nippon Leakless Corporation (Japan) - One of the ▪ Hero Motor Corp largest global manufacturers of gaskets and a ▪ HMSI major Supplier for Honda Gaskets ▪ India Yamaha ▪ Honda Car India ▪ Established in 2005
Slide 24: Strong Tailwinds…
Strong Tailwinds… Stricter environmental Norms ▪ BS-VI expected implementation by 2020 Jump towards BS VI ▪ Developing new products such as Heat Shields under Technical Licensing Agreement with 01 SANWA Packaging Huge Potential of Indian Passenger Vehicles Segment Joint Ventures increasing ▪ India’s
Slide 25: The Automotive Opportunities
The Automotive Opportunities +27.4% +30.5% +9.9% Million Units 10.0 2.4 30.2 20.7 3.8 0.8 FY17 FY21F FY17 FY21F FY17 FY21F Passenger Vehicles Commercial Vehicles 2W & 3W Vehicles Source: IBEF TACL: Domestic Sales Break up H1FY20 Agri & Off Others, 5% Loaders, 7% 2 & 3 Wheelers, 40% 20% 40% Strong gr
Slide 26: Business Overview
Business Overview 26
Slide 27: Key Milestones
Key Milestones Payen Talbros Technical Agreement •2008 - Technical Agreement JV with Marugo Rubber, incorporated in with Nippon Leakless, with SANWA, Japan Japan for Anti-Vibration collaboration with Japan to manufacture • 2009 – Technical Agreement and Hoses Coopers Payen UK Non-Asbestos Gaskets wi
Slide 28: Board of Directors
Board of Directors Mr. Naresh Talwar Mr. Umesh Talwar Mr. Varun Talwar Chairman Vice Chairman & MD Joint Managing Director Mr. Anuj Talwar Mr. Navin Juneja Mr. Vidur Talwar Joint Managing Director Director Non Executive Director Mr. V Mohan Mr Anil Kumar Mehra Mr. Amit Burman Independent Director In
Slide 29: Executive Management
Executive Management Mr. Manish Khanna Mrs. Seema Narang Chief Financial Officer Company Secretary A Qualified CA and MBA, he has over 17 years of experience with LeeBoy India She has over 22 years of experience in the secretarial department and has worked with Constructions, Doosan Infracore, Escor
Slide 30: Standalone Business - Gaskets
Standalone Business - Gaskets H1FY20 Revenue Rs 138 Crores H1FY20 OEM Breakup ▪ In – House tool design and manufacturing Export 4% ▪ ~40% Market share in Gaskets 3x the Others 14% 2 & 3 Wheelers 5% nearest competitor 13% After Passenger Vehicle ▪ Market Leader in – Two Wheeler, Agri & Market 48% 13%
Slide 31: Standalone Business - Forgings
Standalone Business - Forgings H1FY20 Revenue Rs 67 Crores ▪ One stop solution for Hot Forging (750 to Exports 2,500 Ton Press) 43% ▪ In-House tool design and manufacturing OEM Others ▪ Strong presence in Overseas Market & 52% 5% Supplier to top Tier I companies ▪ One Stop Solution for Die Design, P
Slide 32: Scope of Joint Ventures
Scope of Joint Ventures Rear Twist Beam Axle Fuel Hose Strut Mount Steering Bush Front Cross Members Engine Mount Suspension Arms Bush Wheel Group + Corner Module Air Hose Control Arms Knuckles Exhaust Hanger MMT MMT TMR TMR Existing Business Planned for Future Existing Business Planned for Future 3
Slide 33: Evolving Product Portfolio
Evolving Product Portfolio JV with Marugo Evolution Rubber Continues... Revenue FY07 JV with Magneti Marelli Hoses Hoses TA with SANWA Anti Vibration Anti Vibration Gasket 100% Acquired Sheet Metal, Products Products Entry into Forgings, JV with NLK - Gaskets Chassis Systems Chassis Systems Chassis
Slide 34: Hedged Customer Base
Diversified Customer - OEM 2 Wheeler Passenger Hedged Customer Base HCV/LCV Agri & Off Loader Agri & Off Loader 34
Slide 35: Manufacturing Facilities
Manufacturing Facilities Forging Gasket Bawal – Haryana Faridabad, Haryana (2 plants & R&D Centre) Pune, Maharashtra & Sitarganj, Uttarakhand Talbros Marugo Rubber Manesar – Gurgaon Nippon Leakless Bawal – Haryana Haridwar – Uttarakhand Magneti Marelli Talbros Faridabad - Haryana 35
Slide 36: Equity
Equity Consistently paying Dividend for the last 50 years In Rs 1.8 1.5 1.5 1.5 1.5 1.2 1.2 1.2 1.2 1.2 1.0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Promoter Shareholding 56.6% 56.6% 56.6% 56.6% 57.2% 51.5% 53.9% 54.0% 44.5% 45.6% 46.3% 41.6% 37.8% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Ju
Slide 37: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Talbros Automotive Components Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L29199HR1956PLC033107 CIN: U74140MH2010PTC204285 Mr. Navin Juneja – Director & Group CFO Mr. Shogun Jain / Mr. Pratik R. Shah Email: navinjunej
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