Rane (madras) Limited · NSE:RML
Rane (madras) — Q2 FY24 Earnings Presentation
51 slides from Rane (madras)'s earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter: Earnings Presentation Q2 FY24
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 /048/ 2023-24 November 10, 2023 BSE Limited National Stock Exchange of India Ltd. Listing Centre NEAP
Slide 2: Rane Group Earnings Presentation Q2 FY24
Rane Group Earnings Presentation | Q2 FY24 1
Slide 3: Table of Contents
Table of Contents Q2 FY24 Financial & Operational Performance Rane Group Overview 2
Slide 4: Q2 FY24 Financial & Operational Performance
Rane Group Q2 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 (Q2 FY24)
New Business Wins (Q2 FY24) RANE (MADRAS) • Won Rs. 50 Cr order for RCB from domestic RANE BRAKE LINING LCV customer • Won Rs. 24 Cr order for Light Metal Casting • Won orders worth Rs. 7 Cr from various products from export customer domestic customers for PV application • Won Rs.10 Cr order for lin
Slide 8: We continue to target higher than the industry growth
We continue to target higher than the industry growth Industry Performance Review (Q2 FY24) Passenger Vehicle commercial Vehicle Farm Tractor 2-Wheeler Production YoY Growth# 6% 9% -10% -2% in % Rane Group Sales Growth YoY 18% 22% -6% 15% in % (India OEM) Rane Group Revenue Split * 62% 26% 6% 3% (In
Slide 9: Group Aggregate Sales (Q2 FY24)
Group Aggregate Sales (Q2 FY24) Group Aggregate Sales (Rs cr.) › Sales increased by 15.8% from Rs. 1,639.2 Cr in Q2 FY23 to Rs. 1,897.5 Cr in Q2 FY24 – Revenue from Indian OE customers grew 16% supported by strong growth across vehicle segments 1,639.2 1,897.5 15.8% – Revenues from International cus
Slide 10: RHL consolidated – Financial Performance Review (Q2 FY24)
RHL consolidated – Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 7.6% 7.8% 5.5 % 119% 5.3% 66.8 72.7 8.7% 2.6 % YoY growth YoY growth 51.1 YoY growth 883.8 930.0 23.3 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 › Total Revenue increased by 5.3% from R
Slide 11: Rane (Madras) Limited
Rane (Madras) Limited Q2 FY24 Financial & Operational Performance 10
Slide 12: RML - Operational Performance Review (Q2 FY24)
RML - Operational Performance Review (Q2 FY24) Business Split (Q2 FY24) – RML India Business Drivers BY MARKET (%) › Slower growth for Steering division due to lower volume on served models in Indian India Intl OEM, 31 market, however continues to have robust order pipeline OEM&OES, 58 › Higher volu
Slide 13: RML Standalone – Financial Performance Review (Q2 FY24)
RML Standalone – Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT* (Rs cr.) 9.2% 2.9% 8.1% 6.7% 54.3% 20.1% 537.0 572.9 1.3% YoY growth 52.6 YoY growth 43.8 YoY growth 15.8 7.2 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 › Total Revenue increased by 6.7% from Rs.
Slide 14: RML Consolidated – Financial Performance Review (Q2 FY24)
RML Consolidated – Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 2.9% 0.0% 17.8 600.6 1.9% 5.6% 5.3 % 3.7% NM% 611.9 0.05 YoY growth YoY growth YoY growth Q2 FY23 Q2 FY24 33.8 32.5 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 › Total Revenue increased by 1.9% from Rs.
Slide 15: Rane Engine Valve Limited
Rane Engine Valve Limited Q2 FY24 Financial & Operational Performance 14
Slide 16: REVL - Operational Performance Review (Q2 FY24)
REVL- Operational Performance Review (Q2 FY24) Business Split (Q2 FY24) Business Drivers BY MARKET (%) › 42% of revenue generated from EV insulated segment International OEM, 27 India OEM&OES, 58 › Improved financial performance through › Strong execution of orders International › Increasing mix of
Slide 17: REVL – Financial Performance Review (Q2 FY24)
REVL – Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 6.7% 6.4% 123.3 143.7 16.5% 11.5% NM% 1.0% YoY growth YoY growth YoY growth 8.3 9.2 (0.04) 1.5 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 (-0.0%) › Total Revenue increased by 16.5 % from Rs. 123.3
Slide 18: Rane Brake Lining Limited
Rane Brake Lining Limited Q2 FY24 Financial & Operational Performance 17
Slide 19: RBL - Operational Performance Review (Q2 FY24)
RBL- Operational Performance Review (Q2 FY24) Business Split (Q2 FY24) BY MARKET (%) Business Drivers India India OEM&OES, 61 › Market leader in Passenger Vehicle segment and increased penetration in two Aftermarket, 33 wheeler segment › Strong presence in Aftermarket segment › Expanding the Interna
Slide 20: RBL – Financial Performance Review (Q2 FY24)
RBL – Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 11.2% 6.1% 9.5% 29.1% 4.5% 144.7 158.2 9.3% 17.8 48% 13.8 9.6 YoY growth YoY growth YoY growth 6.5 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 › Total Revenue increased by 9.3% from Rs. 144.7 Cr in Q
Slide 21: ZF Rane Automotive India Private Limited
ZF Rane Automotive India Private Limited Q2 FY24 Financial & Operational Performance 20
Slide 22: ZRAI - Operational Performance Review (Q2 FY24)
ZRAI - Operational Performance Review (Q2 FY24) Business Split (Q2 FY24) BY MARKET (%) Business Drivers Intl OEM- India OEM- SGD, 38 OSD, 35 › Strong growth in Commercial Vehicle segment drives growth of steering division › Occupant safety division benefits from increased preference for safer cars a
Slide 23: ZRAI - Financial Performance Review (Q2 FY24)
ZF Rane Automotive India Pvt Limited (ZRAI) - Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 9.8% 5.1% 4.2% 10.4% 23% 16.9% 1.9% 449.4 552.7 54.4 YoY growth 46.6 YoY growth 22.9 23.4 YoY growth Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 › Total Revenu
Slide 24: Rane NSK Steering Systems Private Limited
Rane NSK Steering Systems Private Limited Q2 FY24 Financial & Operational Performance 23
Slide 25: RNSS - Operational Performance Review (Q2 FY24)
RNSS - Operational Performance Review (Q2 FY24) Business Split (Q2 FY24) BY MARKET (%) Int OEM, 1 Business Drivers › Favourable growth in served models with the key customer › Strong growth for Manual Steering Column product with new launches India OEM&OES, 99 Operational Highlights BY VEHICLE SEGME
Slide 26: RNSS - Financial Performance Review (Q2 FY24)
Rane NSK Steering Systems Private Limited (RNSS) - Financial Performance Review (Q2 FY24) Total Revenue (Rs cr.) EBITDA (Rs cr.) PAT (Rs cr.) 1.9% 467.1 28.8% 7% 5.6% 2.1% 9.1 112.7% 362.6 1.2% YoY growth YoY growth YoY growth 25.9 4.3 25.4 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 › Total Rev
Slide 27: Rane Group Overview – About Us
Rane Group About Us Expanding Horizons eoeeooo eeoeooe Beeoo50e
Slide 28: Rane Group – One of the Leading Auto Ancillary Player
Rane Group – One of the Leading Auto Ancillary Player GROUP SALES OF INR 6,690 CR (~USD 820 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 61% Rane (Madras) Ltd ZF Rane Automotiv
Slide 29: Holding Structure
Holding Structure Promoters Rane Holdings Ltd. (RHL) 47% Subsidiaries Joint Venture/Associate Rane (Madras) Ltd. (RML) ZF Rane Automotive India 72% Pvt. Ltd. (ZRAI) 49% Rane Engine Valve Ltd. (REVL) 58% Rane NSK Steering Systems Pvt. Ltd. (RNSS) 49% Rane Brake Lining Ltd. (RBL) 50% Listed Share hold
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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 38: Rane Group Product Range for Two/Three-Wheeler
Rane Group Product Range for Two/Three-Wheeler Friction Materials Rane (Madras) Disc pad › Light Metal Casting Products Light Metal Casting Products Rane Brake Lining Battery Box & Cover › Disc Pads Rane Engine Valve › Engine Valves › Valve Guides Valve train Components Valve Guides Engine Valves 37
Slide 39: 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 40: 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 41: 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 Mexico UAE India Saudi Arabia Singapore, Malaysia & Thailand Serve customers 30+
Slide 42: Rane Aftermarket Business
Rane Aftermarket Business Increasing Group’s brand presence in aftermarket through enhanced product portfolio and wider market reach 41
Slide 43: 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 44: 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 43
Slide 45: 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 46: 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 47: 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 48: 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 49: 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 48
Slide 50: Glossary of Abbreviations
Glossary of Abbreviations Abbreviation Expansion Abbreviation Expansion ACMA Automotive Component Manufacturers Association OE Original Equipment AMP Advanced Machining Processes OEM Original Equipment Manufacturer bps Basis point, 100 bps equal to 1% OES Original Equipment Supplier BV Book Value pe
Slide 51: 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