Kirloskar Brothers Ltd. · NSE:KIRLOSBROS
Kirloskar Brothers — Q3 FY2022 Earnings Presentation
64 slides from Kirloskar Brothers's earnings presentation, Feb 13, 2022
Slide 1: Kirloskar Brothers Limited
KIRLOSKAR BROTHERS LIMITED A Kirloskar Group Company I Enriching Lives SEC/ F:22 February 13, 2022 (BSE Scrip Code - 500241) (NSE Symbol - KIRLOSBROS) BSE Limited National Stock Exchange of India Ltd., Corporate Relationship Department, 5th Floor, Exchange Plaza, 2nd Floor, New Trading Ring, Sandra
Slide 2: Q3FY22 Investor Presentation
Kirloskar Brothers Limited Q3FY22 Investor Presentation
Slide 3: Safe Harbour
Enriching Lives Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Kirloskar Brothers Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or sub
Slide 4: Table of Content
Enriching Lives Table of Content 01 About Us 04 Financial Highlights Historical Performance at a 02 Strategic Focus 05 Glance Our Joint Ventures & Notable Projects 03 06 Subsidiaries 3
Slide 5: Our Purpose – Vision – Mission – Values
Our Purpose – Vision – Mission – Values I Enriching Lives Our Purpose Our Values • Teamwork with Mutual Trust and Empathy Enriching Enriching Lives. Transcending Transcending • Commitment towards the Environment Boundaries. Boundaries. • Integrity and Accountability Our Mission • Speed and Accuracy
Slide 6: Company at Glance
Company at Glance • Enriching Lives Inherent Strength Global Capabilities Catering to Presence Since Employee Strength Built Over Time 6 Domestic & 5 6 Continents & 130+ Years International Plants 6,000+ 100+ Countries Strong Brand Portfolio • K~PL Enriching Lives Diversified Product Product Offerin
Slide 7: Legacy of 130+ Years
Legacy of 130+ Years I Enriching Lives IDEATE INNOVATE IMPLEMENT 1888-1920 1941-1958 1988-2009 2010-2020 2021 Onwards Strategic Strategic & Establishment Establishment Restructuring Restructuring Acquisition Acquisition Phase Phase Technology Technology Monetize Monetize Phase Phase Phase Phase Expa
Slide 8: Our Business & Product Line
Our Business & Product Line I Enriching Lives Our Business & Application Our Product Line Large & Medium pumping solutions Small pumps for day-to-day use at Flow up to 120,000 m³/hr. for complex fluid management households and farms 75+ Types of Pumps (528,000 US GPM) system Valves for industrial an
Slide 9: Our Innovative Solutions
Our Innovative Solutions I Enriching Lives Solar Pumping System Pump Selection Package Fire Pump Monitoring Lowest Life-Cycle Cost (LLC)™Pump Sodium Pumps for Nuclear Power Plant Kirlosmart Condition Monitoring Augmented Reality Mobile Training Canned Motor Pump Additive Manufacturing 3D Printer 8
Slide 10: Global Footprint Through Local Presence
Global Footprint Through Local Presence I Enriching L.rves Atlanta, USA Coleford, Almelo Shirwal, India Sanand, India Karad Projects and Motors Jebel Ali, United Kingdom The Netherlands Ltd UAE Egypt Dewas, India Johannesburg, Bangkok, Thailand South Africa Kirloskarvadi, India Legend Global Headqua
Slide 11: High Qualified Management Team
High Qualified Management Team I Enriching Lives Mr. Sanjay Kirloskar Mr. Alok Kirloskar Chairman & Managing Director Managing Director – Kirloskar Brothers International B.V. • Mr. Sanjay Kirloskar holds a Bachelor’s in Science degree in • Bachelor in Business Administration with a concentration Me
Slide 12: Board of Directors
Board of Directors I Enriching Lives Bachelor’s in Economics (Hons.) from St. Chairman of the Goa-based Dempo Group of Mr. Shobinder Stephens College, Delhi University and a member Mr.Shrinivas V. Companies, which has diversified interests in Duggal industries such as shipbuilding, food processing,
Slide 13: Board of Directors
Board of Directors • Enriching Lives Mr. Pradyumna Former Director of National Institute of Design Mr. Pratap B. Shirke Holds master’s degree from Stanford University, (NID), currently a Senior Advisor of Design USA. Holds directorship on various global Vyas Non-Executive & Non- Promotion and Innova
Slide 14: Long Standing Relationships with Marquee Clientele
Long Standing Relationships with Marquee Clientele.. I Enriching Lives TOTAL • NIH I I . equ11no1r 1 ... ~ _ ~ "~· • p r . PUMPS .· Gono-a>Ph:il i'ps MORR,ISON='ie P111lll3 ll'ROTF.:C'llTlllOl'!il LTD Utillity :Services Note: Logo belongs to the respective owners 13
Slide 15: Our Global Partnerships
Our Global Partnerships I Enriching Lives ArcelorMittal ,I/ )STtransformateurs NAYARA ENERGY HllTAC·HI •e ~lli1:5J?TIIT the' Ne-:l('.91: - - '11.l!u DAN•L~ Note: Logo belongs to the respective owners 14
Slide 16: Awards & Accolades
Awards & Accolades I Enriching Lives '"'"'I• •tt'o0m•t1l Ol f' ... l Joli, n.. ,,..,.,,. .. '"""olt"'1110tlJW>Vc.,,I t~~~ lhfWl"1-. =~l::.:.~~:y::: Ir~ ti~~ l!~n )~ ~ _, -~~~ ,.,,,,,~~cirnr_H __ a<l'ljr)Jl~"'JC(>litfOl~-- .... ICl'J,.. by"""°''•· S....t-•• ••Kl••"""" rvtn t'(I btt 001 IOf<l\I~ uu 11
Slide 17: ESG Initiatives
ESG Initiatives • Enriching Lives ~ ~ ~~J ~ § Environmental E vironmental Social Social Governance Governance • Owned renewable energy sources such as solar • CSR: Vikas Charitable Trust established in 1994 for • Sustainability reporting since 2009-10 and power and wind power contribute to 20%-30 %
Slide 18: Corporate Social Responsibility
Corporate Social Responsibility I Enriching Lives Examples of our CSR activities in India • Supporting creation of clean water source for underprivileged school kids • Health-check, eye-check camps and Vaccination camps • Tree Plantation • Donating first aid boxes and water pumps to schools of under
Slide 19: Corporate Social Responsibility
Corporate Social Responsibility I Enriching Lives All-women operated manufacturing facility in Kaniyur and 35% women workforce in Sanand factory is a testimony to the importance that it bestows towards gender equality and women empowerment. 18
Slide 20: CSR Initiatives in India
CSR Initiatives in India I Enriching Lives KBL conducts an array of activities and campaigns throughout the year Primarily, the company focuses on three areas for its CSR contributions Education, Healthcare, and Environment through the Vikas Charitable trust and Sou. Radhabai Trust Kirloskar High Sc
Slide 21: CSR Initiatives Outside India
CSR Initiatives Outside India I Enriching Lives During Thai cave rescue, KBL sent our multi-national team of experts comprising of members from KBL (India), KBTL (Thailand) and SPP Pumps (UK), who were present on-site at the Mae Sai cave to offer their technical expertise during the rescue operation
Slide 22: Table of Content
Table of Content • Enriching Lives 01 About Us 04 Financial Highlights Historical Performance at a 02 Strategic Focus 05 Glance Our Joint Ventures & Notable Projects 03 06 Subsidiaries 21
Slide 23: A Unique Value Proposition
A Unique Value Proposition • Enriching Lives • From Conceptualization to Manufacturing to End to end offering – Implementation has resulted into offering complete • KBL is a global company with local presence across all One Stop Solution basket of solutions to the customers across multiple major tra
Slide 24: …And Improving Product Mix
…And Improving Product Mix I Enriching Lives 8% 15% 13% 16% 14% 17% 54% 26% 28% 24% 15% 12% 50% 47% 43% 20% FY2010 FY2015 FY2017 FY2021 Made to Stock Made to Order Engineered to Order Projects - Trading & Civil Only KBL (Standalone) has a presence in EPC/Projects Business. No international subsidiar
Slide 25: Multiple Triggers to Drive the Growth Momentum
..Coupled with Multiple Triggers to Drive the Growth Momentum • Enriching Lives Recurring Revenue Stream Large System Integrators Growing revenue share from Framework Contracts & Selectively supplying to large system integrators and services Subscription Platform to counter the cyclicality & provide
Slide 26: Staying Ahead of the Curve through Digital Initiatives
Staying Ahead of the Curve through Digital Initiatives I Enriching Lives • Over a decade, KBL has strategically invested in various strategic digital initiatives like Virtual Reality (VR), Augmented Reality (AR), Artificial Intelligence (AI) , Internet of Things (IoT) and 3-D Printing - Provides Tec
Slide 27: Subscription Platform - Creating Market Opportunity
Subscription Platform - Creating Market Opportunity I Enriching Lives Subscription platform is aimed towards leveraging the technological and domain expertise to create a scalable and sustainable business Traditional Solution Market Opportunities • Manage customer site, refurbish, repair & upgrade a
Slide 28: Way Ahead….
Way Ahead…. I Enriching Lives KBL has strategically reduced EPC business exposure and increased contribution from Services & Value-Added Products Reduced EPC Business exposure Reduced Exposure to EPC business J • KBL has reduced exposure towards low margin, lumpy and working capital Increased focus
Slide 29: Table of Content
Table of Content • Enriching Lives 01 About Us 04 Financial Highlights Historical Performance at a 02 Strategic Focus 05 Glance Our Joint Ventures & Notable Projects 03 06 Subsidiaries 28
Slide 30: Group Structure
Group Structure • Enriching Lives Kirloskar Brothers Ltd. (India) Kirloskar Brothers International The Kolhapur Steel Ltd. Karad Projects & Kirloskar Corrocoat Pvt. Kirloskar Ebara Pumps B.V. (The Netherlands) (100%) (99.74%) Motors Ltd. (100%) Ltd. (65%) Ltd. (45%) (India) SPP Pumps Kirloskar Pompe
Slide 31: Leveraging the localised global presence
Leveraging the localised global presence I Enriching Lives KBL is leveraging the localised global presence through cost-synergies, duty-free access and local sourcing norms Duty-free Access & preference to Local Manufacturers ▪ Provides duty-free access to fast-growing ASEAN region through value add
Slide 32: SPP Pumps Limited, United Kingdom
SPP Pumps Limited, United Kingdom I Enriching Lives Genesis Product Profile • 130+ years of heritage • Lowest Life Cycle Pumps for water supply and PUIVIPS • R&D, manufacturing and test facilities in the UK industrial • Fire fighting pumps Strategy • Worldwide revenues of £76m ( ~30% of consol. ✓ Le
Slide 33: SyncroFlo Inc., The United States of America
SyncroFlo Inc., The United States of America I Enriching Lives Genesis Product Profile ) • Leading American pump packager • Plumbing & HVAC Systems: Ironheart PR, Syr 1c:re>Fle> • Wholly-owned Subsidiary of SPP Pumps Ironheart LT, ES Ironheart, VMS Ironheart, PL1rnpir1g Sysrem Se>IL1rie>r1.s Limited
Slide 34: SPP Pumps Limited, United Kingdom
SPP Pumps Limited, United Kingdom • Enriching Lives Revenue (£ Mn.) EBITDA (£ Mn.) PAT (£ Mn.) 103.5 6.6 4.2 95.6 79.1 75.5 3.3 0.4 1.8 -0.4 FY18 FY19 FY20 FY21 -2.7 -4.7 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 8.8% 5.6% 3.4% 0.4% 2.2% -0.6% -2.6% -4.6% FY18 FY19 FY2
Slide 35: Rodelta Pumps International B.V., The Netherlands
Rodelta Pumps International B.V., The Netherlands I Enriching Lives Genesis Product Profile • Established by Sulzer in 1946, acquired by KBL • API Pumps conforming to API-610 standards, ()RODELTA® in June 2015 12th edition Strategy • Leading manufacturer of API and Non-API • Pumps for Municipal Wate
Slide 36: Rodelta Pumps International B.V., The Netherlands
Rodelta Pumps International B.V., The Netherlands • Enriching Lives Revenue (€ Mn.) EBITDA (€ Mn.) PAT (€ Mn.) 13.4 0.5 0.1 10.5 8.6 -1.1 -1.1 7.8 -0.4 -0.8 FY18 FY19 FY20 FY21 -2.7 -4.8 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 5.9% 1.1% -10.2% -5.3% -14.5% -8.0% -20.
Slide 37: Kirloskar Brothers (Thailand) Limited, Thailand
Kirloskar Brothers (Thailand) Limited, Thailand I Enriching Lives Genesis Product Profile • Assembly and packaging for sales of • Fire fighting pumps Enriching Lives centrifugal pumpsets in South-East Asian • Chemical pumps markets Strategy • Water supply pumps ✓ Access ASEAN region duty-free throug
Slide 38: Kirloskar Brothers (Thailand) Limited, Thailand
Kirloskar Brothers (Thailand) Limited, Thailand • Enriching Lives Revenue (THB in Mn.) EBITDA (THB in Mn.) PAT (THB in Mn.) 610.7 36.6 14.8 22.7 381.1 -3.8 336.3 344.1 -11.9 -24.0 FY18 FY19 FY20 FY21 -56.7 -57.4 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 10.6% 4.3% 6.0%
Slide 39: Braybar Pumps Limited, South Africa
Braybar Pumps Limited, South Africa I Enriching Lives Genesis Product Profile • Manufacturing and sales of high head multi- • Fire fighting pumps stage pumps, rubber lined slurry pumps and white metal lined bearings • Mine de-watering pumps • Successfully overcome the BBBEE regulations • Chemical pu
Slide 40: Braybar Pumps Limited, South Africa
Braybar Pumps Limited, South Africa • Enriching Lives Revenue (ZAR Mn.) EBITDA (ZAR Mn.) PAT (ZAR Mn.) 107.3 13.7 5.4 69.8 72.1 71.5 2.9 -3.4 -9.4 -3.3 FY18 FY19 FY20 FY21 -9.0 -17.5 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 19.2% 7.5% -3.2% 2.7% -13.1% -4.6% Note: Inc
Slide 41: Karad Projects And Motors Limited (KPML)
Karad Projects And Motors Limited (KPML) I Enriching Lives Genesis Product Profile • KPML is a wholly owned subsidiary of KBL. • Stamping: Electrical Stampings , Core packs, Wound Stators , Die Cast Rotors , Copper Brazed • 3 manufacturing plants located at Karad, Strategy Rotors, Rotor Fitted Shaft
Slide 42: Karad Projects And Motors Limited
Karad Projects And Motors Limited • Enriching Lives Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 336.3 325.4 321.9 33.7 33.4 37.6 308.4 30.6 26.0 18.7 19.9 16.4 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 10.5% 10.8% 12.2% 9.4% 7.7% 5.8%
Slide 43: Kirloskar Ebara Pumps Limited
Kirloskar Ebara Pumps Limited I Enriching Lives Genesis Product Profile • Established in 1988 as a Joint Venture (JV) • Pumps: company promoted by KBL and Ebara • Centrifugal pumps as per API 610 Strategy Corporation with a mission to manufacture • Multistage Boiler feedwater pumps ✓ Expand Services
Slide 44: Kirloskar Ebara Pumps Limited
Kirloskar Ebara Pumps Limited • Enriching Lives Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 180.4 36.6 20.3 164.1 34.9 158.9 160.9 18.4 17.5 19.0 7.7 8.0 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 21.3% 11.2% 11.2% 20.3% 11.0% 11.8% 4.9
Slide 45: The Kolhapur Steel Limited (TKSL)
The Kolhapur Steel Limited (TKSL) I Enriching Lives Genesis Product Profile • • Kolhapur Steel Limited (TKSL) is a wholly owned subsidiary company of KBL. Established in the year 1965. • • • • High Grade Steel Alloy Castings for Pumps Steel Turbines Hydro Turbines THE 11119 I KC>LH.A.PUR • En.richin
Slide 46: The Kolhapur Steel Limited
The Kolhapur Steel Limited • Enriching Lives Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 45.7 2.8 0.3 36.0 30.9 20.9 -5.2 -7.6 -8.6 -11.6 FY18 FY19 FY20 FY21 -10.8 -13.9 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 6.2% 0.6% -14.4% -21.2% -28.0% -37.4% -51.5
Slide 47: Kirloskar Corrocoat Private Limited
Kirloskar Corrocoat Private Limited I Enriching Lives Genesis Product Profile • JV between KBL and Corrocoat Ltd. U.K. • Corroglass - High performance engineering CORROCOAT • The company manufactures glass flake glass flake filled composites Strategy polymer coatings at its state-of-the-art plant at
Slide 48: Kirloskar Corrocoat Private Limited
Kirloskar Corrocoat Private Limited • Enriching Lives Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 34.6 3.7 1.6 27.8 24.3 20.1 1.7 0.1 0.4 0.1 -0.9 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 -1.1 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 10.6% 4.7% 6.8% 0.2% 1.3% 0.7% -3.9% FY18
Slide 49: Table of Content
Table of Content • Enriching Lives 01 About Us 04 Financial Highlights Historical Performance at a 02 Strategic Focus 05 Glance Our Joint Ventures & Notable Projects 03 06 Subsidiaries 48
Slide 50: Orderbook
Orderbook I Enriching Lives Robust Orderbook Implying Strong Revenue Visibility Sector (In Rs. crores) Q3 FY22 Q2 FY22 Q1 FY22 Q4 FY21 Q3 FY21 Irrigation + Water Resource Mgmt. 718 733 691 733 746 Power 490 460 460 481 406 Oil & Gas 68 42 36 40 41 Marine & Defence 76 48 50 52 21 Industry 111 98 87 6
Slide 51: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement • Enriching Lives Particulars (Rs. Crores) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Net Revenue from Operations 725.3 760.8 -4.7% 2,103.2 1,857.7 13.2% Other Income 15.9 11.6 35.6 32.4 COGS 389 401.5 1,149.7 997.7 Gross Profit 352.2 370.9 -5.0% 989.1 892.4 10.8% Gro
Slide 52: Q3 & 9MFY22 Key Subsidiaries Financials Performance
Q3 & 9MFY22 Key Subsidiaries Financials Performance • Enriching Lives Revenue from Operations (Rs. Crores) Q3FY22 Q3FY21 9MFY22 9MFY21 KBL 521.0 464.3 1,403.1 1,158.1 KCPL 7.0 4.6 17.3 11.3 TKSL 8.7 7.3 22.2 13.2 KPML 137.5 86.3 352.7 181.9 KBIBV (consol.) 213.4 302.1 688.0 718.5 Subtotal 887.6 864.
Slide 53: Table of Content
Table of Content • Enriching Lives 01 About Us 04 Financial Highlights Historical Performance at a 02 Strategic Focus 05 Glance Our Joint Ventures & Notable Projects 03 06 Subsidiaries 52
Slide 54: Historical Financial Performance
Historical Financial Performance • Enriching Lives Consolidated Revenue (Rs. Crores) EBITDA (Rs. Crores) PAT (Rs. Crores) 3,349 294 154 3,135 2,657 2,775 2,717 245 172 151 126 68 46 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 -2 -5 FY17 FY18 FY19 FY20 FY21 EBITDA Margin (%) PAT Margin (%) 10.8
Slide 55: Historical Financial Performance
Historical Financial Performance • Enriching Lives Consolidated EPS (in Rs.) Net Worth (Rs. Crores) Leverage (X) 20.3 1,107 0.6 901 946 912 946 0.4 0.4 0.4 9.1 0.3 6.2 0.5 0.4 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 RoCE (%) RoE(%) 18.0% 13.9% 15.1% 10.3% 7.2% 8.4%
Slide 56: Consolidated Profit & Loss Statement
Enriching Lives Consolidated Profit & Loss Statement Particulars (Rs. Crores) FY21 FY20 FY19 FY18 FY17 Net Revenue from Operations (Net of Excise) 2,716.5 3,135.4 3349.0 2775.4 2656.8 Other Income 53.8 37.6 23.7 21.9 30.6 COGS 1,449.5 1,641.9 1829.8 1456.8 1293.3 Gross Profit 1,320.8 1,531.1 1,542.9
Slide 57: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement • Enriching Lives Particulars (Rs. Crores) FY21 FY20 FY19 FY18 FY17 Particulars (Rs. Crores) FY21 FY20 FY19 FY18 FY17 Equity Non Current assets Property, Plant and Equipment 428.4 429.4 433.6 426.4 443.0 Equity Share capital 15.9 15.9 15.9 15.9 15.9 Capital work
Slide 58: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement • Enriching Lives Particulars (Rs. Crores) FY21 FY20 FY19 FY18 FY17 Profit Before Taxes 182.1 121.3 40.6 73.3 16.4 Changes in working capital 170.1 219.9 39.6 49.9 78.4 Cash generated from operations 352.2 341.2 80.2 123.2 94.8 Direct taxes paid (net of refund) 35.8
Slide 59: Table of Content
Table of Content • Enriching Lives 01 About Us 04 Financial Highlights Historical Performance at a 02 Strategic Focus 05 Glance 03 Our Joint Ventures & Subsidiaries 06 Notable Projects 58
Slide 60: Notable Work – Building & Construction
Notable Work – Building & Construction I Enriching Lives KBL's pumping solutions are operational in many of the world's iconic buildings The Shard, UK White House, Hong Kong–Zhuhai– Marina Bay Sands, Atal Tunnel, India Statue of Unity, India Washington Macau Bridge Singapore 59
Slide 61: Notable Projects – Power
Notable Projects – Power I Enriching Lives KBL is the first and leading manufacturers of critical pumps for nuclear power in India. Supplied primary and secondary sodium pump to Bhavini and specialised pump sets for the ITER (International Thermonuclear Experimental Reactor) project in France, the w
Slide 62: Notable Projects – Municipal Water
Notable Projects – Municipal Water I Enriching Lives Thailand Uttar Pradesh, India Mumbai, India Thames River, UK Gwari Culvert, India South Africa 61
Slide 63: Notable Projects – Irrigation
Notable Projects – Irrigation I Enriching Lives KBL’s irrigation solutions are operational across the world Sardar Sarovar, India Senegal Laos Bheema, India Egypt EDIA, Portugal 62
Slide 64: For further information, please contact
For further information, please contact Company: Investor Relations Advisor: CIN: L29113PN1920PLC000670 CIN: U74140MH2010PTC204285 Mr. Chittaranjan Mate Mr. Chinmay Madgulkar / Mr. Jigar Kavaiya Email: Chittaranjan.Mate@kbl.co.in E: chinmay.m@sgapl.net / jigar.kavaiya@sgapl.net T: 020 2721 1147 T: +