Slide 1: Q3 & Nine Month FY2016 Earnings
Q3 & NINE MONTH FY2016 EARNINGS
Slide 2: Important Notice
IMPORTANT NOTICE This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies’ (“Dynamatic” or the “Company”) future busin
Slide 3: Performance Highlights: Consolidated Financial Highlights
PERFORMANCE HIGHLIGHTS Consolidated Financial Highlights Q3 FY2016 Highlights Revenue Breakup Q3 FY2016 • Net Revenues of Rs. 3,628 million • EBITDA of Rs. 300 million at 8.3% Q3 FY2015 18% margin 18% • Interest expense declined by 6.4% y-o-y to Rs. 175 million 17% 17% 65% • Net Debt of Rs. 5,464 mi
Slide 4: Performance Highlights: Management Commentary
PERFORMANCE HIGHLIGHTS Management Commentary Commenting on the results, Mr. Udayant Malhoutra, CEO and Managing Director said: “Our performance during the quarter was a clear reflection of the prevailing difficult global macroeconomic scenario. This coupled with significant depreciation of the India
Slide 5: Performance Highlights: Foreign Exchange Fluctuation
PERFORMANCE HIGHLIGHTS Foreign Exchange Fluctuation Exchange Q3 Q3 9M 9M Impact Impact % Impact Impact % Rate FY2016 FY2015 FY2016 FY2015 EURO vs. INR 71.60 79.92 (8.32) (10.4)% 71.60 79.92 (8.32) (10.4)% GBP vs. INR 99.44 100.00 (0.56) (0.6)% 99.44 100.00 (0.56) (0.6)% USD vs. INR 64.78 60.77 4.01
Slide 6: Financial Performance Summary
FINANCIAL PERFORMANCE SUMMARY Consolidated Performance Highlights Q3 y-o-y Q2 q-o-q Nine Months y-o-y Rs. million Growth Growth Growth FY16 FY15 (%) FY16 (%) FY16 FY15 (%) Revenue 3,628 3,835 (5.4)% 3,704 (2.0)% 11,059 12,403 (10.8)% EBITDA 300 343 (12.3)% 338 (11.1)% 883 1,180 (25.1)% Margin (%) 8.
Slide 7: Aerospace and Defence Segment
AEROSPACE AND DEFENCE SEGMENT Q3 FY16 Revenue Financial Overview Breakup Q3 y-o-y Q2 q-o-q Nine Months y-o-y Rs. Growth Growth Growth million FY16 FY15 FY16 FY16 FY15 (%) (%) (%) India UK 53% Revenue 665 691 (3.7)% 652 2.0% 1,915 1,973 (2.9)% 47% India 352 338 3.9% 336 4.6% 954 874 9.2% UK 314 353 (
Slide 8: Hydraulics Segment
HYDRAULICS SEGMENT Q3 FY16 Revenue Financial Overview Breakup Q3 y-o-y Q2 q-o-q Nine Months y-o-y Rs. Growth Growth Growth million FY16 FY15 FY16 FY16 FY15 (%) (%) (%) UK India 36% Revenue 623 660 (5.7)% 692 (10.0)% 1,930 2,259 (14.5)% 64% India 398 425 (6.3)% 443 (10.2)% 1,232 1,390 (11.4)% UK 225
Slide 9: Automotive Segment
AUTOMOTIVE SEGMENT Q3 FY16 Revenue Financial Overview Breakup Q3 y-o-y Q2 q-o-q Nine Months y-o-y Rs. Growth Growth Growth million FY16 FY15 FY16 FY16 FY15 India (%) (%) (%) Germany 13% Revenue 2,346 2,484 (5.6)% 2,357 (0.5)% 7,214 8,181 (11.8)% 87% India – M 235 269 (12.7)% 254 (7.7)% 770 950 (18.9
Slide 10: Quarterly Financial Trends
QUARTERLY FINANCIAL TRENDS Financial Performance Revenue (Rs. mn) and Growth (Q-o-Q) Segment Wise Revenue Contribution 3,835 3,885 3,728 3,704 18% 17% 16% 18% 18% 3,628 17% 17% 17% 19% 17% (0.7)% (2.0)% (4.0)% (11.2)% 1.3% 65% 66% 67% 64% 65% Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q3 FY15 Q4 FY15 Q
Slide 11: Focus on Deleveraging the Balance Sheet
QUARTERLY FINANCIAL TRENDS Focus on Deleveraging the Balance Sheet Capital Structure Interest Expense (Rs. mn) & Interest Coverage (x) (Rs. million) Dec 31, 2015 Sep 30, 2015 187 186 193 Long Term 182 175 5,044 4,760 Borrowings Short Term 966 956 Borrowings Total Debt 6,010 5,716 1.2x 1.1x 1.1x 1.0x
Slide 12: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products business for the automotive, hydraulic, aerospace and defence industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 13: Dynamatic Overview
DYNAMATIC OVERVIEW Vertically • Advanced iron foundry in India and Germany. Also has aluminium foundry in India for Integrated captive use Facilities • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of manufacturing highly intricate castings • In-house division for desig
Slide 14: Combination of Stable and High Growth Businesses
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components • Audi • Hyundai including engine, transmission, • BMW • Nissan turbocharger and chassis parts 65% of Q3 • Daimler • Tata Motors FY16 • Metallurgical ferrous and • Ford • Vo
Slide 15: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors Others • Goldman Sachs India • L&T Infrastructure Fund Promoters Equity Fund 24% • Principal Mutual Fund 51% • HDFC Trustee Company • Param Capital Research Limited (HDFC Pvt Ltd Infrastructure Fund) DIIs • Citigroup Global •
Slide 16: Financial Statements: Income Statement (Quarterly Trend)
FINANCIAL STATEMENTS Income Statement (Quarterly Trend) Profit & Loss Statement (Rs. million) Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Revenues Net Sales / Income from Operations (Net of Excise Duty) 3,790 3,838 3,691 3,670 3,598 Other Operating Income 45 47 37 33 30 Total Revenues 3,835 3,885 3,728
Slide 17: Financial Statements: Income Statement (Annual Trend)
FINANCIAL STATEMENTS Income Statement (Annual Trend) Profit & Loss Statement (Rs. million) FY14 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 15,719 16,115 Other Operating Income 156 174 Total Revenues 15,875 16,288 Expenses Cost of Raw Materials Consumed 8,982 9,611 Changes
Slide 18: Financial Statements: Balance Sheet – Assets
FINANCIAL STATEMENTS Balance Sheet – Assets Balance Sheet (Rs. million) Mar-14 Sep-14 Mar-15 Sep-15 ASSETS Non-Current Assets Goodwill 679 679 879 950 Fixed Assets i) Tangible Fixed Assets 5,967 5,558 5,355 5,211 ii) Intangible Fixed Assets 224 193 202 179 iii) Capital work in progress 28 71 44 295
Slide 19: Financial Statements: Balance Sheet – Liabilities
FINANCIAL STATEMENTS Balance Sheet – Liabilities Balance Sheet (Rs. million) Mar-14 Sep-14 Mar-15 Sep-15 EQUITY and LIABILITIES Shareholders Fund Share capital 55 60 63 63 Reserves and surplus 1,376 2,134 2,453 2,397 Money Received against Share Warrants 100 0 0 0 Non-controlling interest (Preferenc
Slide 20: Contact Details
CONTACT DETAILS Mr. Hanuman Sharma Executive Director and Chief Financial Officer Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India T: +91 80 2839 4933 / 34 / 35 F: +91 80 2839 5823 E: hanuman.sharma@dynamatics.net Mr. Naveen Chandra Head – Legal, Complianc