Jk Tyre & Industries Limited · NSE:JKTYRE
Jk Tyre & Industries — Q4 FY2021 Earnings Presentation
33 slides from Jk Tyre & Industries's earnings presentation, May 20, 2021
Slide 1: Cover letter to stock exchanges on earnings presentation
{K SEET Y FRE & INDUSTRIES LTD. JKTIL:SECTL:SE:2021 Date: 20th May 2021 BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, | Exchange Plaza, C -1, Block G, Dalal Street, Bandra —Kurla Complex, Mumbai-400 001. Bandra (E), Mumbai -400 051. Through: BSE Listing Centre | Through:
Slide 2: Sustainability in Mobility: Earnings Presentation Q4 FY2021 & FY2021
SUSTAINABILITY IN MOBILITY EARNINGS PRESENTATION Q4 FY2021 & FY2021
Slide 3: Business Overview
1 Business Overview 2 4Q FY2021 & FY2021 Performance Review 3 Cavendish Turnaround Story 4 Growth Strategy 5 Sustainability 1
Slide 4: JK Tyre at a Glance
JK Tyre at a Glance Innovation at JK Tyre 40+ 25th Years of experience in tyre Ranked top tyre company Pioneer of radial technology in India and No. 1 in Truck/Bus manufacturing in the world Radial (TBR) manufacturer State-of-the-art Centralized Tech Centre at Mysore – “Raghupati Singhania Centr
Slide 5: Global Manufacturing Platforms
Global Manufacturing Platforms India 12 Manufacturing Facilities with Annual Production Capacity of 5,75,000 Metric Tonnes (~32 million tyres)1 Uttarakhand – 3 Installed Capacity FY21 -Utilization Rajasthan – 1 (MT) Consolidated 5,75,000 75% Madhya Pradesh – 1 Annual Capacity by Product Line – Volum
Slide 6: Digital Marketing Initiatives
Digital Marketing Initiatives Social Media Content Marketing Google My Business 1 Consistent Social Media Presence 2 Content Oriented Digital Marketing No.1 Tyre Brand at Social Tyre Industry Highest no. of 600+ Brand Shops listed at Media in terms of Followers views at YouTube 77Mn+ Google My Busin
Slide 7: Extensive Distribution Network
Extensive Distribution Network Extensive Distribution Network India Distribution Network 6,000+ Dealers 500 Distributors 58 JK Tyres 415 JK Tyre 200 Xpress 45 JK Re-tread Tie up with 870 Fleet Operators Truck Wheels Steel Wheels Wheels centres Tie up with 3 Oil Marketing Companies Fully equi
Slide 8: Leadership Team
Leadership Team Dr. Raghupati Singhania Chairman & Managing Director Anshuman Singhania Arun K. Bajoria A. K. Kinra Sanjeev Aggarwal V. K. Misra Praveen Chaudhury Managing Director Director & President Financial Advisor CFO Technical Director COO – JK TORNEL Dr. R. Mukhopadhyay A. K. Makkar Srinivas
Slide 9: Strong R&D Capabilities
Strong R&D Capabilities Technology – Global Tech Centre (RPSCOE): • Centralized Tech Center in Mysore, Karnataka with more than 200 R&D and Technology Scientist and Engineers in following facilities: HASETRI - Asia's first and India’s foremost highly versatile and State-of-the-art Tyre / Elastomer I
Slide 10: Innovative Products Gaining Traction
Innovative Products Gaining Traction TBR - JUH XF & JDH XF PCR – Levitas (UHP) PCR – Taximax – 1Lac km. tyre Fuel Saver Technology Design Short Braking Distance Very High Mileage & Durability Low RRC & Low Noise High cornering stability Superior Grip & Braking High Mileage Better Tra
Slide 11: Product Portfolio Differentiation
Product Portfolio Differentiation Smart Tyres Green Tyres Recently acquired smart tyre technology start-up to revolutionize “Green tyre" technology increases fuel efficiency thereby conserving Indian tyre market – First in India to launch Tyre Pressure natural resources Monitoring System (TPMS) base
Slide 12: Key Customers
Key Customers Passenger Car Tractor Truck & Bus OTR 2 Wheeler 2 Wheeler – Electric 10
Slide 13: Revenue Segmentation: End User Market
Revenue Segmentation : End User Market Revenue Mix by Market – FY21 Exports 14% Exports 18% OEMs India 20% Operations OEMs Consolidated 18% Replacement Replacement 66% 64% Revenue Mix by Product Line – FY21 Others Others 16% 13% 2/3 Wheelers 2/3 Wheelers 5% 6% India Consolidated Operations Truck and
Slide 14: Performance Review
1 Business Overview 2 4Q FY2021 & FY2021 Performance Review 3 Cavendish Turnaround Story 4 Growth Strategy 5 Sustainability 12
Slide 15: FY2021 in Review – Key Financials Highlights
FY2021 in Review – Key Financials Highlights Strong Operational and Financial Performance in FY21 Rs.929 Cr (-17%) Net Debt Reduction Rs.884 Cr (+89%) Higher Cash Accruals Rs.1,349 Cr (+33%) Deleveraging Balance Sheet – Rs.9,145 Cr (+4%) EBIDTA and Growth Reduction in Robust Cash borrowings through
Slide 16: Q4FY21 & FY21 Performance Highlights (Consolidated)
Q4FY21 & FY21 Performance Highlights (Consolidated) Q4FY21 vs. Q4FY20 (Y-o-Y) FY21* vs. FY20 1. Production Volumes (MT) 43% 1. Production Volume (MT) 6% 2. Net Revenue from operations 4% 2. Net Revenue from operations 63% 3. EBITDA 33% 3. EBITDA 119% 4. EBITDA margins 310 bps 4. EBITDA Margins 410 b
Slide 17: Successfully Implementing Debt Reduction Strategy
Successfully Implementing Debt Reduction Strategy Target to reduce Long term Debt by 45% by FY2024 Net Debt (Rs. crore) Net Debt to EBITDA (Times) 5,412 -17% 4,483 5.33x 3.32x FY2020 FY2021 FY2020 FY2021 Interest Coverage Ratio (Times) Net Debt to Equity (Times) 2.90x 2.23x 1.61x 1.85x FY2020 FY2021
Slide 18: Robust Performance delivered in adversities
Robust Performance delivered in adversities Annual EBDITA up 33% & PAT up 134% EPS 2X to Rs. 12.97 from Rs. 6.12 Swiftly Responding to Covid-19 Crisis • Prioritized safety of employees, refined risk mitigation plan, re-visited systems and processes, increased communication with customers and channel
Slide 19: Consolidated Financial Performance
Consolidated Financial Performance Y-o-Y Y-o-Y (Rs. Crore) Q4FY21 Q4FY20 FY2021 FY2020 Growth (%) Growth (%) Turnover 2,945 1,803 63% 9,145 8,753 4% EBITDA 472 216 119% 1,349 1016 33% Margin 16.0% 12.0% 410 bps 14.8% 11.6% 310 bps PBDT (Cash Profit) 367 81 353% 884 467 89% PBT 281 (82) 534 (17) PAT
Slide 20: Standalone Financial Performance
Standalone Financial Performance Y-o-Y Y-o-Y (Rs. Crore) Q4FY21 Q4FY20 FY2021 FY2020 Growth (%) Growth (%) Turnover 2,037 1,360 50% 6,170 6,120 1% EBITDA 316 143 120% 887 678 31% Margin 15.5% 10.5% 500 bps 14.4% 11.1% 330 bps PBDT (Cash Profit) 259 58 343% 620 335 85% PBT 210 (16) 396 85 364% PAT 13
Slide 21: New Business Acquisition in FY21
New Business Acquisition in FY21 Gaining OEM footprint and volumes across product segments Hyundai CRETA & KIA New SWIFT DZIRE and New WAGON R Force Traveler SELTOS New SWIFT TATA INTRA TATA GOLD 19
Slide 22: Key Marketing Initiatives
Key Marketing Initiatives Ranger Re-targeting Campaign Zindagi Ke Pahiye - Youtube Campaign (Hits of over 24 Million) (Record hits of over 70 Million – Highest in Tyre Industry) Awarded Digital Campaign of the year by Global Digital Marketing 20
Slide 23: Cavendish Turnaround Story
1 Business Overview 2 4Q FY2021 & FY2021 Performance Review 3 Cavendish Turnaround Story 4 Growth Strategy 5 Sustainability 21
Slide 24: Cavendish Operational Turnaround
Cavendish Operational Turnaround Post acquisition started production with ~150 MT / Day, now peak level production ~ 500 MT / Day, a multi-fold growth Cavendish Performance Turnaround Installed Capacity (‘000 MT) and Utilization % • Achieved operational turnaround in the first year of acquisition wi
Slide 25: Cavendish Financial Turnaround
Cavendish Financial Turnaround With operational turnaround, Cavendish continues to deliver improved financial performance and leverage profile Revenue from Operations (Rs. crore) Net Debt / EBIDTA – Times (x) 2571 2316 2221 8.43x 1673 6.90x 7.00x 4.79x FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 EBITDA
Slide 26: Growth Strategy
1 Business Overview 2 4Q FY2021 & FY2021 Performance Review 3 Cavendish Turnaround Story 4 Growth Strategy 5 Sustainability 24
Slide 27: Growth Strategy
Growth Strategy Management remains fully committed to implement its strategy to further expand its market presence and gain market share Strengthen Product Market Position Increase Global Deleverage Maximizing Portfolio across Business Balance Sheet Benefits of CIL Premiumization Segments Share Acqu
Slide 28: Sustainability
1 Business Overview 2 4Q FY2021 & FY2021 Performance Review 3 Cavendish Turnaround Story 4 Growth Strategy 5 Sustainability 26
Slide 29: Sustainability – Environment
Sustainability – Environment Safety – Reportable Incident (Nos.) Energy Consumption (GJ / Tonne) 27 22 17 11.24 10.70 10.26 10.36 6 9.50 4 2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 All Plants awarded with “Sword of Honour” by British World’s Lowest energy consum
Slide 30: Sustainability – Operational Efficiencies
Sustainability – Operational Efficiencies Specific Power Consumption – Kwh / Kg “Innovative Practices Award, "Sustainable Development Goals" by United Nations Global Compact Network India” 0.937 0.894 0.874 0.863 0.810 2016-17 2017-18 2018-19 2019-20 2020-21 Reducing Power Consumption trend every ye
Slide 31: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) Livelihood More than 1 lac people benefitted through our projects, viz., skill building, SHGs, agricultural & livestock Enhancement development etc. Adult literacy programs in remote villages (over 50,000 beneficiaries), Mysuru prisoners (over 6,000), Education
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by JK Tyre & Industries Limited (the “Company” or “JK Tyres”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distr
Slide 33: JK Tyre & Industries Ltd. contact details
MkOrvreE= TOTAL CONTROL JK TYRE & INDUSTRIES LTD. HEAD OFFICE 3, Bahadur Shah Zafar Marg, New Delhi - 110 002 T: +91-11-66001112 © F: +91-11-23322059 REGISTERED OFFICE AND WORKS Jaykaygram, PO-Tyre Factory Kankroli - 313 342, Rajasthan T: 02952-302400/330011 « F: 02952-232018 CIN:L67120RJ1951PLC0459
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