Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q2 FY25 Earnings Presentation
43 slides from Sona Blw Precision Forgings's earnings presentation, Oct 23, 2024
Slide 1: Exchange filing cover letter for investor presentation
Date: - 23rd October, 2024 BSE Ltd. National Stock Exchange of India Ltd. Regd. Office: Floor - 25, Listing Dept., Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai-400 001. Mumbai - 400 051 BSE Scrip Code: 543300 NSE Scrip: SONACOMS Subject: Invest
Slide 2: Q2 FY25 Earnings Presentation
Q2 FY25 Earnings Presentation 23 October 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Our Management
Our Management Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 5: Adding a new track of growth
Adding a new track of growth
Slide 6: The acquisition of EKL Railway Equipment Division will be a step forward in our journey
The acquisition of EKL Railway Equipment Division will be a step forward in our journey towards realization of our new vision Twelve months ago, we changed our Vision Statement And targeted growth opportunities with some filters • Long-term product relevance • Capability for market leadership in fas
Slide 7: EKL Railway Equipment Division ticks all the filters set for our growth opportunity targets
EKL Railway Equipment Division ticks all the filters set for our growth opportunity targets Indian railways is one of the largest and fast-growing networks in the world Long-term product relevance Railway Equipment Division is the Capability for market market leader in railway brake systems leadersh
Slide 8: Indian railways is one of the largest and fastest growing networks in the world
Indian railways is one of the largest and fastest growing RED networks in the world 4th Largest railway 4th Largest rail freight 24mn Passengers 1,500MT Freight network in the world carrier in the world carried daily Carried in 2024 Railway’s capex has been growing consistently and budgetary support
Slide 9: Escort Kubota's Railway Equipment Division is the market leader in railway brake systems
Escort Kubota’s Railway Equipment Division is the market RED leader in the railway brake systems Brake systems is the largest product segment Diversified portfolio of other products • Introduced manufacturing compressed air brake systems in railway application for the first time in India • Oldest am
Slide 10: Railway Equipment Division has an attractive financial track record
Railway Equipment Division has an attractive financial RED track record of high growth, profitability and return 9,504 8,419 6,362 57.7% 4,790 45.7% 43.1% 38.3% 38.7% 2,447 18.9% 20.5% 16.0% 14.8% 13.8% FY21 FY22 FY23 FY24 Q1FY25 Revenue (INR mn) EBIT Margin ROCE Source: Earnings Presentation of Esc
Slide 11: Railway is one of the cleanest forms of mobility
Railway is one of the cleanest forms of mobility RED Carbon footprint of travel per passenger-kilometer, 2022 (in grams of CO2 equivalents) Domestic Flight 246 Passenger Car 170 International Flight 148 Motorbike 114 Diesel Bus 97 Plug-in hybrid car 68 Electric car 47 National rail 35 Electric Bus 3
Slide 12: Acquisition of Railway Equipment Division is expected to be EPS accretive from the first year
Acquisition of Railway Equipment Division is expected to RED be EPS accretive for us from the first year • Sona Comstar will acquire Railway Equipment Division for an Enterprise Value of INR 16 billion • Transaction structured as a slump sale of Railway Equipment Division as a going concern • Sona C
Slide 13: Business Performance Highlights
Business Performance Highlights Complete Drivetrain of an Electric Vehicle
Slide 14: Q2 FY25 Financial Performance Highlights
Q2 FY25 Financial Performance Highlights 9,251 mn | 17% 2,549 mn | 14% 1,439 mn | 16% Revenue | YoY Growth EBITDA | YoY Growth PAT1 | YoY Growth 27.6% EBITDA Margin 15.5% PAT Margin2 3,172 mn | 53% 36% BEV Revenue | YoY Growth Q2 FY25 Product Revenue Share from BEV Notes: 1. PAT includes an impact o
Slide 15: H1 FY25 Financial Performance Highlights
H1 FY25 Financial Performance Highlights 18,181 mn | 19% 5,061 mn | 19% 2,859 mn | 21% Revenue | YoY Growth EBITDA | YoY Growth PAT1 | YoY Growth 27.8% EBITDA Margin 15.7% PAT Margin2 20.7% 18.0% RoCE3 RoE4 Notes: 1. PAT includes an impact of ₹83 million in exceptional expenses related to potential
Slide 16: Update on our Strategic Priorities
Update on our Strategic Priorities Tool and Die Shop in our Gurgaon Plant
Slide 17: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 16
Slide 18: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 35% 6,000 mn 53% H1 FY25 Product Revenue H1 FY25 BEV segment H1 FY25 BEV revenue Share from BEV revenue YoY growth 55 56 +1 (12+15+28)1 (13+14+29)1 EV Programs1 awarded across EV Programs1 awarded across 31 customers as at the end of 32 customers as at the end
Slide 19: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 18
Slide 20: Our net order book stands at ₹231 billion (7.3x FY24 revenue)
Our net order book1 stands at ₹231 billion (7.3x FY24 revenue) 233 bn 14 bn Orders consumed from 12 bn 231 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q1 FY25 programs won in Q2 FY25 Q2 FY25 programs during Q2 FY25 Non-EV EV Rs. 180 Billion (78%) Rs. 51 Bi
Slide 21: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 20
Slide 22: Diversified Product Revenue Mix – By Powertrain
Diversified Product Revenue Mix – By Powertrain Battery EV increasing as 35% of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 18% in FY22 to 9% in H1 FY25 FY22 FY23 FY24 H1 FY25 25% 26% 29% 35% 26% 21% 24% 20% 31% 38% 37% 3
Slide 23: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Market segment 5% 1% 3% 5% 1% 1% FY24 H1 FY25 24% PV 10% 26% 40% 70% 72% FY24 FY24 CV 14% 10% 32% 24% 28% 2% 0% E2W/E3W 6% 0.4% 7% 3% 5% 7% 27% 22% 44% 9% Non-Automotive H1 H1 10% 9% FY25 FY25 Semiconductors 32% 20% & Embedded SW 28% 1.0% 1.5% 22
Slide 24: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 23
Slide 25: We are now ASPICE Level-2 certified
We are now ASPICE Level-2 certified that demonstrates the strength of our software development process Connected Zone Monitoring Intelligent Sensors 360˚ Short-range Radar Sensors Electric HV e-Axle Robotics Gears 4 Spool Gear EDL Epicyclic Geartrain Reduction In-cabin Sensors Non-ferrous Drive Unit
Slide 26: Q2 & FY25 Financial Update
Q2 & FY25 Financial Update Cross Sectional View of Hub Type EV Traction Motor
Slide 27: Q2 FY25 Financials
Q2 FY25 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 14% YoY: 18% YoY: 17% YoY: 16% YoY: 23% 2,549 2,632 1,584 9,251 1,439 2,233 2,238 7,908 1,238 1,286 28.2% 27.6% 28.3% 28.5% 15.7% 15.5% 16.3% 17.1% 2,070 3,172 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25
Slide 28: H1 FY25 Financials
H1 FY25 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 19% YoY: 22% YoY: 19% YoY: 21% YoY: 26% 5,061 5,226 3,065 18,181 2,859 4,267 4,276 2,431 15,230 2,359 28.0% 27.8% 28.1% 28.7% 15.5% 15.7% 16.0% 16.8% 3,913 6,000 H1 FY24 H1 FY25 H1 FY24 H1 FY
Slide 29: FCFO of INR 2,433 mn in H1 FY25
FCFO of INR 2,433 mn in H1 FY25 Numbers in Rs. mn Free Cash Flow from Operations: INR 2,433 mn EBITDA 5,061 Investments1 (18,896) ∆ Working capital 248 NOVELIC Investments (264) Tax paid (620) Loan repayment (2,239) (net of drawdown) Others (20) Dividend and others (879) Notes: 1. Includes FD and mu
Slide 30: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 6.2 6.0 5.2 5.7 36.1% 36.3% 32.4% 31.0% 34.6% 26.6% 28.5% 30.4% 20.7% 18.0% Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 5.0 5
Slide 31: Q&A
Q&A
Slide 32: Appendix
Appendix Our Stall at Bharat Mobility Global Expo 2024
Slide 33: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Became publicly listed • 2 Plants • 2 Plants • 47 Customers (37+10) • 74 customers • 1 Product • 2 Products • 9 Plants (5+4) • 10 plants • 10 Products (5+5) • 20 products Revenue in INR
Slide 34: One Vision
One Vision To become one of the World’s most Respected and Valuable Mobility Technology companies for our Customers, Employees & Shareholders. 33
Slide 35: Guided by Values
Guided by Values 35.4% Agility Growth 5-year Revenue CAGR 27.1% Vitality Margins Integrity 5-year Avg. EBITDA >25% Returns Frugality ROE Each Year (FY20-FY24) 34
Slide 36: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally USA Location Capacity3 Germany China Location Capacity3 Tecumseh, MI 1 mn starter motors Belgium Cologne Hangzhou - Ypsilanti, MI Genk 7 of the world’s top 10 PV OEMs1a Serbia Belgrade 3 of the world’s top 10 CV OEMs1b Novi Sad Mexico Location C
Slide 37: Revenue share from BEV has grown 18x over 5 years
Revenue share from BEV has grown 18x over 5 years, with absolute BEV revenue growth at 51x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 18x 51x 12,000 H1FY25 Annualized 8,859 29% 35% 6,707 25% 26% 5,042 14% 2,057 6,000 H1FY25 2.0% 234 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY20 FY21 FY22 FY23 FY24 FY
Slide 38: 56 EV programs across 32 different customers
56 EV programs across 321 different customers No. of North America Europe2 Asia programs customers 7 Customers 5 Customers 5 Customers 4 14 3 4 2 3 27 11 3 3 8 8 18 5 2 3 1 1 18 7 3 3 13 10 1 1 1 1 - - 5 26 +1 India Programs in fully ramped-up production 18 Customers +1 Programs in ramp-up or not ye
Slide 39: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.2% CY23 8.1% of Differential Gears1 Global Market Share CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% CY23 4.2% of Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tract
Slide 40: Product Summary
Product Summary Passenger Vehicles 10 Spool Gears 9 Electronically Locking 13 Differential (EDL) 12 360° Short Range 8 In-Cabin Radar Radar Sensors* 7 Sensors 11 15 Epicyclic 6 1 5 Geartrain 2 4 Integrated 3 Motor Controller Intermediate Module Gears (for Predictive Active Suspension) Commercial Veh
Slide 41: Product Summary
Product Summary Off Highway Vehicles Buses 6 Differential Bevel Gears Spiral Bevel Gears 5 In-Cabin Radar Sensors 3 7 8 4 1 4 2 1 3 Portal Axle Gears 2 5 7 Traction Motor 360° Short Range Radar Sensors* Controller Light Commercial Vehicles /3-Wheeler (Cargo) Controller* Steering 360° Short Bevel Box
Slide 42: Product Summary
Product Summary Industrial Automation, Electric 2-Wheelers AGVs & Robots 1 Hub Wheel Motor Integrated Drive Motor 4 5 Robotics Gears* & Controller 1 3 360° Short Range 4 2 Radar Sensors* 6 Integrated Hub Motor & Controller* 2 Zone Monitoring Sensors* Drive Motor 3 Bot Motors* Electric 3-Wheelers 360
Slide 43: ESG Performance Highlights
ESG Performance Highlights 14.3 Low Risk Top 9% We have published our second sustainability report Negligible Low Medium High Severe Out of 16,049 in December 2023 0-10 10-20 20-30 30-40 40+ global companies ESG Risk Rating (Core) Click on the image to read the report • 10% and 15% improvement in em
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