Rane (madras) Limited · NSE:RML
Rane (madras) — Q4 FY24 Earnings Presentation
59 slides from Rane (madras)'s earnings presentation, May 16, 2024
Slide 1: Exchange filing cover letter - Earnings Presentation
Registered Office: Tel : 91 44 2811 2472 “ Maithri " URL: www.ranegroup.com 132, Cathedral Road, Chennai 600 086. India. CIN : L65993TN2004PLC052856 Rane (Madras) Limited //Online submission// RML/SE/017/2024-25 May 16, 2024 BSE Limited National Stock Exchange of India Ltd. Listing Centre NEAPS Scri
Slide 2: Rane Group Earnings Presentation Q4 FY24
Rane Group Earnings Presentation | Q4 FY24 1
Slide 3: Table of Contents
Table of Contents Q4 FY24 Financial & Operational Performance Rane Group Overview 2
Slide 4: Rane Group Q4 FY24 Financial & Operational Performance
Rane Group Q4 FY24 Financial & Operational Performance 3
Slide 5: Vision and Growth Strategies
Vision and Growth Strategies To become the Preferred Trusted Supplier of Safety & Critical Auto Components Strategic pillars of growth 1 3 2 4 Strengthen Increased Focus Domestic on Aftermarket Leadership Increased mix of New Technology & International Product Revenues Introductions 4
Slide 6: Rane Group Business Drivers
Rane Group Business Drivers Business Drivers › 92%+ of revenue comes from powertrain agnostic products › Continued dominance on domestic market across major products › Increasing export mix for steering & linkages, valve train components and occupant safety products › Renewed focus on Aftermarket se
Slide 7: New Business Wins (Q4 FY24)
New Business Wins (Q4 FY24) RANE BRAKE LINING RANE (MADRAS) • Won Rs. 82 Cr order for R&P from domestic • Won Rs. 8 Cr order from various domestic PV customers and Rs. 71 Cr from International customers customers • Won orders worth Rs. 1.2 Cr from International • Won Rs. 23 Cr order for RCB from dom
Slide 8: We continue to target higher than the industry growth
We continue to target higher than the industry growth Industry Performance Review (Q4 FY24) Passenger Vehicle commercial Vehicle Farm Tractor 2-Wheeler Production YoY Growth# 10% 0% -16% 26% in % Rane Group Sales Growth YoY 11% 1% -34% 16% in % (India OEM) Rane Group Revenue Split * 64% 27% 4% 3% (I
Slide 9: Group Aggregate Sales (Q4 FY24)
Group Aggregate Sales (Q4 FY24) Group Aggregate Sales (Rs cr.) › Sales increased by 0.5% from Rs. 1,799.3 Cr in Q4 FY23 to Rs. 1,807.8 Cr in Q4 FY24 – Revenue from Indian OE customers grew by 5% supported by strong growth in passenger vehicle segment 1,799.3 1,807.8 0.5% YoY growth – Revenues from I
Slide 10: RHL consolidated – Financial Performance Review (Q4 FY24)
RHL consolidated – Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 7.8% 23.4% 576.5% 4.4% 12.1% YoY growth YoY growth YoY growth 10.0% 114.3 38.4 948.2 874.4 87.6 (0.9)% Q4 FY23 Q4 FY24 (8.1) Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 › Total Revenue decreased by 7.8%
Slide 11: RHL consolidated – Ratios and Return
RHL consolidated – Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity 0.91 1.06 ROCE 12.50% 12.73% EPS (Rs.) 86.67 43.61 DPS 25.00 17.00 BV(Rs.) 634.66 565.74 10
Slide 12: Rane (Madras) Limited
Rane (Madras) Limited Q4 FY24 Financial & Operational Performance 11
Slide 13: RML - Operational Performance Review (Q4 FY24)
RML - Operational Performance Review (Q4 FY24) Business Split (Q4 FY24) – RML India Business Drivers BY MARKET (%) › Challenging demand environment in India due to decline in the farm tractor India Intl OEM, 29 OEM&OES, segment 56 › Drop in off-take of steering products in select export geographies
Slide 14: RML Standalone – Financial Performance Review (Q4 FY24)
RML Standalone – Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT* (Rs cr.) 8.4% 11.1% 56% 96.7% (6.5) YoY growth YoY growth YoY growth Q4 FY23 Q4 FY24 63.2 (1.3)% 567.1 5.4% (195.7) 519.4 27.8 Q4 FY23 Q4 FY24 (34.5)% Q4 FY23 Q4 FY24 › Total Revenue decreased by 8.4%
Slide 15: RML Standalone – Ratios and Return
RML Standalone– Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity 2.68 2.12 ROCE 11.94% 20.14% EPS (Rs.) 9.15 -77.80 BV(Rs.) 160.61 151.88 14
Slide 16: RML Consolidated – Financial Performance Review (Q4 FY24)
RML Consolidated – Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 17.6% 10.2% 59.7% 198.2% YoY growth YoY growth 1.5% YoY growth 64.0 9.5 630.1 5.0% 519.3 Q4 FY23 Q4 FY24 25.8 (9.4) Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 (1.8)% › Total Revenue decreased by 17.6%
Slide 17: RML Consolidated – Ratios and Return
RML Consolidated– Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity 2.74 2.72 ROCE 7.05% 11.53% EPS (Rs.) 1.85 18.46 BV(Rs.) 157.32 148.52 16
Slide 18: Rane Engine Valve Limited
Rane Engine Valve Limited Q4 FY24 Financial & Operational Performance 17
Slide 19: REVL - Operational Performance Review (Q4 FY24)
REVL- Operational Performance Review (Q4 FY24) Business Split (Q4 FY24) Business Drivers BY MARKET (%) International India › 41% of revenue generated from EV insulated segment OEM, 23 OEM&OES, 59 › Improved financial performance driven by sales growth and better operational performance International
Slide 20: REVL – Financial Performance Review (Q4 FY24)
REVL – Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 10.7% 6.5% 2.5% 12.2% 11.7% YoY growth YoY growth YoY growth 136.5 3.6% 3.1% 151.2 16.6 17.7 4.9 4.7 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 › Total Revenue increased by 10.7 % from Rs. 136.5 Cr
Slide 21: REVL – Ratios and Return
REVL – Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity 1.01 1.30 ROCE 14.80% 8.10% EPS (Rs.) 15.93 -0.09 DPS 5.00 - Dividend payout (%) 32% - BV(Rs.) 167.00 148.47 20
Slide 22: Rane Brake Lining Limited
Rane Brake Lining Limited Q4 FY24 Financial & Operational Performance 21
Slide 23: RBL - Operational Performance Review (Q4 FY24)
RBL- Operational Performance Review (Q4 FY24) Business Split (Q4 FY24) BY MARKET (%) Business Drivers India OEM&OES, 55 › Market leader in Passenger Vehicle segment and increased penetration in two India Aftermarket, 40 wheeler segment › Dominant presence in Aftermarket segment, which accounts for 4
Slide 24: RBL – Financial Performance Review (Q4 FY24)
RBL – Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 12.6% 36.3% 28% 8.2% YoY growth 15.3% YoY growth 7.2% YoY growth 12.7% 165.8 186.7 17.8 15.4 28.6 12.0 21.0 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 › Total Revenue increased by 12.6% from Rs. 165
Slide 25: RBL – Ratios and Return
RBL – Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity - - ROCE 19.72% 17.07% EPS (Rs.) 52.11 43.29 DPS 30.00 25.00 Dividend payout (%) 58% 58% BV(Rs.) 363.63 337.88 24
Slide 26: ZF Rane Automotive India Private Limited
ZF Rane Automotive India Private Limited Q4 FY24 Financial & Operational Performance 25
Slide 27: ZRAI - Operational Performance Review (Q4 FY24)
ZRAI - Operational Performance Review (Q4 FY24) Business Split (Q4 FY24) BY MARKET (%) Business Drivers India OEM- India OEM- SGD, 39 › Sluggish M&HCV market impacted the growth of steering division OSD, 24 › Increased preference for safety features helped demand from domestic customers Intl OEM- SG
Slide 28: ZRAI - Financial Performance Review (Q4 FY24)
ZF Rane Automotive India Pvt Limited (ZRAI) - Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 7.4% 33.3% 6.5% 36.9% 13.1% YoY growth YoY growth 5.1% YoY growth 10.5 % 71.9 512.7 550.4 35.7 53.9 26.0 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 › Total Re
Slide 29: ZRAI – Ratios and Return
ZRAI – Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity 1.15 0.65 ROCE 14.88% 17.48% EPS (Rs.) 122.27 111.27 DPS 83.75 77.00 Dividend payout (%) 69% 70% BV(Rs.) 606.52 563.04 28
Slide 30: Rane NSK Steering Systems Private Limited
Rane NSK Steering Systems Private Limited Q4 FY24 Financial & Operational Performance 29
Slide 31: RNSS - Operational Performance Review (Q4 FY24)
RNSS - Operational Performance Review (Q4 FY24) Business Split (Q4 FY24) BY MARKET (%) Int OEM, 1 Business Drivers › Favorable growth in served models with the key customer India OEM&OES, 99 Operational Highlights BY VEHICLE SEGMENT (%) › Received Certificate of Appreciation from Suzuki Motor Gujara
Slide 32: RNSS - Financial Performance Review (Q4 FY24)
Rane NSK Steering Systems Private Limited (RNSS) - Financial Performance Review (Q4 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 11.7% 41.7% 98.3% (2.0) YoY growth YoY growth YoY growth 4.7% 2.5% 0.5% 400.2 447.1 18.9 (113.5) 11.0 Q4 FY23 Q4 FY24 (28.4%) Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24
Slide 33: RNSS – Ratios and Return
RNSS – Ratios and Return Particulars FY' 24 FY' 23 Debt : Equity 24.42 92.16 ROCE 6.62% 18.11% EPS (Rs.) 5.86 -55.37 BV(Rs.) 7.44 1.86 32
Slide 34: Rane Group About Us
Rane Group About Us Expanding Horizons eeoaeee eeoeooeooed Secocce
Slide 35: Rane Group – One of the Leading Auto Ancillary Player
Rane Group – One of the Leading Auto Ancillary Player GROUP SALES OF INR 7,199 CR (~USD 870 MN) Founded in 1929 and headquartered in Chennai, Rane Group is one of the STEERING AND SUSPENSION SYSTEMS preferred OE manufacturer and supplier for global auto majors 62% Rane (Madras) Ltd ZF Rane Automotiv
Slide 36: Holding Structure
Holding Structure Rane Holdings Ltd. (RHL) Subsidiaries Joint Venture/Associate Rane (Madras) Ltd. (RML) ZF Rane Automotive India 71.77% Pvt. Ltd. (ZRAI) 49% Rane Engine Valve Ltd. (REVL) 58.29% Rane NSK Steering Systems Pvt. Ltd. (RNSS) 49% Rane Brake Lining Ltd. (RBL) 50.03% Listed Share holding a
Slide 37: Rane (Madras) Ltd. (RML)
Rane (Madras) Ltd. (RML) MANUFACTURING PLANT • Market leader in steering gear and steering linkage products in India. We have started catering to hydraulic products such as HSU and steering cylinders. • Best in class manufacturing facilities at Chennai, Mysore, Puducherry and Pant Nagar. • End to en
Slide 38: Rane Engine Valve Ltd. (REVL)
Rane Engine Valve Ltd. (REVL) MANUFACTURING PLANT • Incepted In 1959, REVL manufactures valves and valve train components for various engine applications • Non Automotive applications such as power generation, marine, defence, locomotive, etc. • Comprehensive test laboratory for material characteris
Slide 39: Rane Brake Lining Ltd. (RBL)
Rane Brake Lining Ltd. (RBL) MANUFACTURING PLANT • Established in 1964, RBL is a leader in Friction Products across OEM segments and supplies products to over 15 countries • Technical collaboration with Nisshinbo Brakes Inc. and TMD Friction • Library of widely tested and approved formulations to su
Slide 40: ZF Rane Automotive India Private Limited
ZF Rane Automotive India Private Limited Joint venture partnership with ZF Group, Germany. MANUFACTURING PLANT Steering Gear Division • Design, Development and Application capability for complete Hydraulic Power Steering system for all vehicles. • Advanced design tools for 3D modeling, simulation, F
Slide 41: Rane NSK Steering Systems Private Limited (RNSS)
Rane NSK Steering Systems Private Limited (RNSS) MANUFACTURING PLANT • Joint venture partnership with NSK, Japan. • State-of-art R&D test lab for validation of steering columns. • Manufacturing facilities across four locations in Chennai, Bawal, Rudrapur & Ahmedabad. • Design & Development capabilit
Slide 42: Rane Group Product Range for Passenger Vehicle
Rane Group Product Range for Passenger Vehicle Light Metal Casting Products Rane (Madras) Valve train Components › Manual Steering Pinion Housing Gears Engine Timing Case Cover › Steering Linkages Engine Valves › Suspension Components Outboard Housing › Light Metal Casting Products Occupant Safety S
Slide 43: Rane Group Product Range for Commercial Vehicle
Rane Group Product Range for Commercial Vehicle Rane (Madras) Steering & Suspension Systems Light Metal Casting Products › Manual Steering Gears Hydraulic Pump Housing › Steering Linkages Manual Steering › Hydraulic Cylinders Column › Light Metal Casting Products Occupant Safety Systems Rane Engine
Slide 44: Rane Group Product Range for Farm Tractors
Rane Group Product Range for Farm Tractors Rane (Madras) Steering & Suspension Systems Friction Materials › Manual Steering Gears Clutch Facings › Steering Linkages Manual Steering › Hydraulic Cylinders Brake Lining Column Manual RCB › Hydrostatic Steering Unit Steering Gear Light Metal Casting Prod
Slide 45: Rane Group Product Range for Two/Three-Wheeler
Rane Group Product Range for Two/Three-Wheeler Friction Materials Disc pad Rane Brake Lining › Disc Pads Rane Engine Valve › Engine Valves › Valve Guides Valve train Components Valve Guides Engine Valves 44
Slide 46: Rane Group Product Range for Other Applications
Rane Group Product Range for Other Applications Friction Materials Railway Brake Block Sintered Brake Pads Rane (Madras) › Manual Steering Gears › Steering Linkages › Light Metal Casting Products Rane Engine Valve › Engine Valves Suspension Steering & Suspension Systems › Valve Guides Engine Valves
Slide 47: Our Illustrious Journey
Our Illustrious Journey An illustrious journey of over 80 years from distributor of automobile and auto components to winner of Deming prize for manufacturing Distribution Manufacturing Collaboration Operational Excellence Expanding Horizons 1929 - 1958 1959 - 1986 1987 - 2000 2000 - 2014 2015 onwar
Slide 48: Global Footprint
Global Footprint Sweden Canada Russia Germany Poland Slovakia UK Czech Republic Belgium Hungary France Austria Spain Romania USA Novi, MI Portugal Italy Turkey China Japan Qatar S. Korea Morocco Bhutan Nepal Bangladesh UAE India Saudi Arabia Singapore, Malaysia & Thailand Serve customers 30+ Sri Lan
Slide 49: Rane Aftermarket Business
Rane Aftermarket Business Increasing Group’s brand presence in aftermarket through enhanced product portfolio and wider market reach 48
Slide 50: In house R&D & Technology Partnership
In house R&D & Technology Partnership Strong CAE Capabilities – Design, Analysis & Simulation Software 230 R&D Engineers 42 Functional Test Rigs 26 Strength Test Rigs Hydraulic Power Steering Systems and Occupant Safety Systems 62 Durability Test Rigs 33 Environment al Test Rigs Energy Absorbing Ste
Slide 51: We create and deliver value to our customers
We create and deliver value to our customers Passenger Vehicle Commercial Vehicle Farm Tractor Two/Three-Wheeler Other Applications INDIA INTERNATIONAL 50
Slide 52: Awards and Accolades are testimony to our resolve for Excellence
Awards and Accolades are testimony to our resolve for Excellence ‘Customer at the core’ remains our priority on the goal to sustainable growth and profitability Rane Group Rane Engine Valve Rane Brake Lining Customer Award Category Customer Award Category Customer Award Category Quality & Customer M
Slide 53: Expanding Horizons – Customers
Expanding Horizons – Customers Rane Values Rane Approach Rane Credentials Value Proposition › Provide superior › Build strong › Modern manufacturing facilities › Technology collaboration › Superior products products and connections with with IATF 16949 certification with top global players driven by
Slide 54: Expanding Horizons – Employees
Expanding Horizons – Employees An exciting workplace founded on the principles of values, fairness and transparency that: Provides challenging Encourages learning Enhances career Rane Brand assignments opportunities Promise › Organisation Development Excellence Award for the exceptional practices on
Slide 55: Expanding Horizons – Environment
Expanding Horizons – Environment We create value through sustainable operations and optimal resource utilisation Dimensions of Sustainability at Rane Group Recognition in Sustainability Excellence Emission Waste • Rane Brake Lining - Puducherry won the CII National Award for Excellence in Energy Man
Slide 56: Expanding Horizons – Society
Expanding Horizons – Society › Rane Foundation (RF) is a public charitable trust founded by Rane’s promoters in the year 1967 › RF is the main arm for Rane’s Corporate Social Responsibility (CSR) initiatives and is exclusively funded by the Rane companies › Initiatives are focused on education, heal
Slide 57: Thank You
Thank You For further information, please contact: investorservices@ranegroup.com or diwakar.pingle@in.ey.com Rane Corporate Centre “Maithri" 132, Cathedral Road, Chennai - 600 086, India www.ranegroup.com 56
Slide 58: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion ACMA Automotive Component Manufacturers Association NPD New Product Development AMP Advanced Machining Processes OE Original Equipment ATV All-Terrain Vehicle OEM Original Equipment Manufacturer bps Basis point, 100 bps equal to
Slide 59: Disclaimer
Disclaimer This presentation may contain certain forward looking statements concerning Rane’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. T