Permanent Magnets Limited · BSE:PERMAGN
Permanent Magnets — Q4 FY2023 Earnings Presentation
44 slides from Permanent Magnets's earnings presentation, March 2023
Slide 1: Investor Presentation Q4 & FY23
INVESTOR PRESENTATION Q4 & FY23 Permanent Magnets Limited 01
Slide 2: Inside this document
Inside this COMPANY 03 BUSINESS 17 document OVERVIEW OVERVIEW STRATEGIC REVIEW 24 INDUSRTY GROWTH DRIVERS 27 FINANCIAL SNAPSHOT 32 QUARTERLY SNAPSHOT 37 Permanent Magnets Limited 02
Slide 3: Company Overview
Company Overview JOURNEY & TRANSFORMATION 04 PML AT A GLANCE 05 PML’S VALUE PROPOSITION 06 ROBUST CAPABILITIES 07 PRODUCT PLATFORMS 08 KEY PRODUCTS 09 CRITICAL PRODUCT APPLICATIONS 10 ESTABLISHED CLIENTELE 12 SEASONED MANAGEMENT TEAM 13 STRONG CORPORATE GOVERNANCE 14 KEY TECHNICAL PARTNERSHIPS 15 QU
Slide 4: Journey and Transformation
COMPANY OVERVIEW Journey and Transformation KEY MILESTONES 1960 Growth in magnets business for 2005 energy meters and automobile applications 2000 Commenced magnetic 2005 Hi-perm division started: assemblies export Soft Magnetic Parts • Change in the energy meters 2005 technology led to a downturn i
Slide 5: PML at a glance
COMPANY OVERVIEW PML at a glance Permanent Magnets is a leading solution provider of electrical 60+ 467 YEARS OF EXPERTISE COMMITTED TEAM components and assemblies INTO MAGNETS, MAGNETIC ASSEMBLIES, AND SHUNTS MEMBERS INCLUDING 72 ENGINEERS based on certain core technologies such as current & speed
Slide 6: PML's value proposition
COMPANY OVERVIEW PML’s value proposition PML is a solution provider with expertise in design, prototype and production of components and assemblies related to Automobile, Metering and other sectors Capabilities to conceptualise and implement customised AIMS TO BE A Strict adherence to the design and
Slide 7: Robust Capabilities
COMPANY OVERVIEW Robust Capabilities PML has exceptional expertise in the fields of metallurgy, mechanical engineering, electrical engineering and electronics, enabling it to offer comprehensive solutions to its clients • Experts in metallurgy, mechanical, electrical UNDERSTANDING OF QUALITY & and e
Slide 8: Product Platforms
COMPANY OVERVIEW Product MAGNETIC SENSING CURRENT SENSING MAGNETIC ASSEMBLIES Platforms Technologies focused on: Technologies focused on: Magnetic assemblies focused on performing functions such as: • Speed sensing • Shunt current sensors • Holding Focus on building • Torque sensing • Angular sensin
Slide 9: Key Products
COMPANY OVERVIEW Key Products 01 MAGNETIC SENSING 02 03 CURRENT SENSING MAGNETIC ASSEMBLIES 04 05 ALLOYS ZAMAK DIE CASTING Module Current Sensing Module Shielding C Shape Magnetic Lifter Alloy Ingot ZAMAK Valve Shunt Current Sensing Module Shielding-MuMETAL Zero Gauss Stator Rotor Iron Filing Remova
Slide 10: Critical Product Applications
COMPANY OVERVIEW Critical Product Applications Speed Sensor AUTOMOBILE 1 Laminations 1 Permanent Magnets 2 Rotor Laminations 3 EPS Battery 1 7 Current Sensor 4 4 4 4 Shields Shunt Flux Concentrator 3 6 5 Battery 2 Monitoring Sensor 5 Clamp On 5 HSM 800 5 Smart Battery Clamp 6 Toroidal Cut Core 7 BMS
Slide 11: Critical Product Applications
COMPANY OVERVIEW Critical Product Applications ELECTRICITY METER GAS METER 1 CT 2 1 2 Shunt 4 3 3 Brass terminal 4 Diaphragm Assembly Permanent Magnets Limited 011
Slide 12: Established Clientele
COMPANY OVERVIEW Established Clientele Automobiles & Electricity Meters are PML’s key application industries PML is the only supplier >> AUTOMOBILE >> ELECTRICITY METERS for many ~50% of Tier-I Top 3 products and PML is a preferred supplier of electrical PML is a supplier to the top 3 electricity am
Slide 13: Seasoned Management Team
COMPANY OVERVIEW Seasoned Management Team PML's management team is well-balanced, comprising seasoned business executives and a young, dynamic team of around 15 second-level managers, in the average age group of 35 years MR. SHARAD TAPARIA MR. PRABHAKAR KAMATH MR. SUKHMAL JAIN MR. GIRISH MAHAJAN Man
Slide 14: Strong Corporate Governance
COMPANY OVERVIEW Strong Corporate Governance Board is headed by a Non-Executive Chairman and has a balanced composition of Independent, Executive and Non-Executive Directors MR. RAJEEV MUNDRA MR. SHARAD TAPARIA MR. KAMAL BINANI MR. MUKUL TAPARIA MS. SUNAINA TAPARIA MR. GIRISH DESAI Chairman, Indepen
Slide 15: Key Technical Partnerships
COMPANY OVERVIEW Key Technical Partnerships PML has, on multiple occasions, established significant technical & commercial alliances in order to keep abreast with the most recent technological developments, and explore uncharted markets LEGACY RECENT COLLABORATIONS PARTNERSHIPS Centro Magneti Perman
Slide 16: Quality Control Systems
COMPANY OVERVIEW Quality Control Systems SCOPE OF CERTIFICATIONS KEY CERTIFICATIONS 01 • PML adheres to the quality standards of the ISO 14001:2015 ISO 17025:2017 AS9100D:2016 industry • The production facilities and QMS are Design, manufacture and certified by IATF, AS, EMS and OSHAS supply of Magn
Slide 17: Business Overview
Business Overview NEW PRODUCT DEVELOPMENT 18 PRODUCT LIFE CYCLE 19 COMPONENTS TO MODULES 20 BROAD-BASING CUSTOMER BASE 21 GEOGRAPHY-WISE SALES TREND 22 APPLICATIONS-WISE SALES TREND 23 Permanent Magnets Limited 017
Slide 18: New Product Development
BUSINESS OVERVIEW New Product Development For customer designed Developing cost-effective Incorporating COMMERCIALISING products manufacturing solutions customer feedback PRODUCTS & iterations >> Successfully moving products from prototyping stage to GENERATING DEVELOPING commercial CUSTOMER PROTOTY
Slide 19: Product Lifecycle
BUSINESS OVERVIEW Product Lifecycle • Continuous product additions to compensate sales of maturing products AVERAGE AGE OF • Focus on technologies & capabilities rather than specific-products PRODUCT LIFE CYCLES • Rate of new product introductions will be higher than rate of maturity 8-10YR Electric
Slide 20: Components to Modules
BUSINESS OVERVIEW Components to Modules 01 A STRATEGIC MOVE TO ADD COMPETENCIES IN 02 SHIFTING BUSINESS FROM COMPONENTS TO MODULES 03 PRODUCT CATEGORIES SUCH AS SHUNTS AND SOFT MAGNETIC MODULES TO CAPTURE MORE VALUE MATERIAL COMPONENTS TARGETED IN INITIAL PROJECTS COMPONENTS TO MODULES VALUE CHAIN -
Slide 21: Broad-basing Customer Base
BUSINESS OVERVIEW Broad-basing Customer Base PML is actively diversifying TOP 5 & 10 CLIENT SALES CONTRIBUTION & strengthening its revenue stream through: 01 ACTIVELY COMMERCIALISING Further, PML is looking to actively add new PRODUCT NEW PRODUCTS PIPELINE, 61% 64% 02 application 47% 49% 51% 52% ind
Slide 22: Geography-Wise Sales Trend
BUSINESS OVERVIEW Geography-Wise Sales Trend • Rising share of export sales • Asia continues to be the flagship market • New market additions such as China and France FY23 29% 46% 25% FY22 27% 50% 23% 1% FY21 32% 48% 20% FY20 32% 45% 23% Americas Asia Europe Others Permanent Magnets Limited 022
Slide 23: Application-Wise Sales Trend
BUSINESS OVERVIEW Application-Wise Sales Trend • Electricity Meters continues to be the flagship application industry • Gas Meters product category approaching end of life cycle • New application categories include Electrical, Medical, Aerospace, Engineering and Computers 1% FY23 45% 32% 4% 15% 3% 2
Slide 24: Strategic Review
Strategic Review NEW BUSINESS DEVELOPMENT 25 STRATEGIC PRIORITIES 26 Permanent Magnets Limited 024
Slide 25: New Business Development
STRATEGIC REVIEW New Business Development Introducing newer modules and components TECHNOLOGIES & CAPABILITIES New projects in casting space PML is New application of working on ZAMAK die-casting adding newer competencies High-volume sheet metal forming Wire winding Plastic moulding capabilities Per
Slide 26: Strategic Priorities
STRATEGIC REVIEW Strategic Priorities MOVING TOWARDS NEW ALLOYS AND MATERIALS BUSINESS GROWTH +5 YEAR IN THE ADDITIONAL CAPABILITIES ADDING MORE PROCESSES AND CAPABILITIES LIKE ALLOY MAKING, HEAT TREATMENT < 3 YEAR AND SMART MODULES COMMENCING SHIFT FROM COMPONENTS TO ASSEMBLIES INTEGRATING MANUFACT
Slide 27: Industry Growth Drivers
Industry Growth Drivers GLOBAL SMART METERS 28 ELECTRIC VEHICLES 30 Permanent Magnets Limited 027
Slide 28: Global Smart Meters: Market Trends
TRENDS & GROWTH DRIVERS Global Smart Meters: Market Trends CANADA 50% 6.2Mn GLOBAL SMART METERS EUROPE OPPORTUNITY ($ BN) 50% 150Mn INDIA STILL USA LARGELY A 2028 55 88% 107Mn INDIA UNDERPENETRATE D MARKET FOR >13% 1.5% 3.7Mn SMART METERS 2021 23 CAGR AUSTRALIA 20% 3.3Mn GLOBAL SMART ELECTRICITY MET
Slide 29: Smart Electricity Meters: Growth Drivers
TRENDS & GROWTH DRIVERS Smart Electricity Meters: Growth Drivers On the one hand, the smart meter infrastructure is to empower customers Need for increasing energy efficiency and minimising power by allowing them to loss & theft during transmission Benefits to customers such as choose their power de
Slide 30: EV Market: Market Trends
TRENDS & GROWTH DRIVERS EV Market: Market Trends • Over 26 million electric cars were on the road in 2022, up 60% GLOBAL ELECTRIC VEHICLE relative to 2021 STOCK BY REGION (UNITS IN MN) • Electric car sales increased even despite total car sales decreasing by 3% in 2022 relative to 2021 • Electric ca
Slide 31: EV: Key Industry Trends
EV: Key Industry Trends Promising signs for emerging electric vehicle (EV) markets, albeit from a small base Electric car sales break Landmark EV policies As spending and EV supply chains and new records with are driving the outlook competition increase, batteries gain greater momentum expected for
Slide 32: Financial Snapshot
Financial Snapshot PROFIT & LOSS SUMMARY 33 BALANCE SHEET SUMMARY 34 CASH FLOW SUMMARY 35 KEY PERFORMANCE INDICATORS 36 Permanent Magnets Limited 032
Slide 33: Profit & Loss Statement Summary
FINANCIAL SNAPSHOT Profit & Loss Statement Summary (₹ in Crore) PARTICULARS FY19 FY20 FY21 FY22 FY23 Total Revenue 121.83 109.26 117.57 133.26 188.19 Total Operating Expenses 98.16 86.01 91.43 102.78 141.47 EBITDA (Excluding OI) 22.68 20.55 25.25 26.73 41.27 EBITDA (Excluding OI) % 19% 19% 22% 21% 2
Slide 34: Balance Sheet Statement Summary
FINANCIAL SNAPSHOT Balance Sheet Statement Summary (₹ in Crore) PARTICULARS FY19 FY20 FY21 FY22 FY23 Shareholders Fund 33.25 47.87 64.03 82.22 110.95 Non Current Liabilities 2.95 5.73 4.44 3.91 4.69 Current Liabilities 30.71 19.50 25.52 29.84 35.63 - Trade Payables 19.62 14.98 22.15 24.60 29.35 Tota
Slide 35: Cash Flow Statement Summary
FINANCIAL SNAPSHOT Cash Flow Statement Summary (₹ in Crore) PARTICULARS FY19 FY20 FY21 FY22 FY23 Cash from Operating Activities 9.92 11.50 6.36 3.66 11.47 Cash from Investing Activities -1.99 -1.54 -2.06 -3.80 -9.52 Cash from Financing Activities -7.18 -8.78 -2.86 -2.63 -1.23 Net Cash Flow 0.75 1.18
Slide 36: Key Performance Indicators
FINANCIAL SNAPSHOT Key Performance Indicators EBITDA Margin % ROCE % ROE % Working Capital Days 23% 36% 27% 150 days 150 23% 45% 22% 61% 136 21% 19% 19% 108 99 30% 90 38% 27% 36% 25% 33% 23% 31% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Perma
Slide 37: Quarterly Snapshot
Quarterly Snapshot Q4 & FY23 PROFIT & LOSS SUMMARY 38 MANAGEMENT COMMENTARY 39 Permanent Magnets Limited 037
Slide 38: Q4 & FY23 Profit & Loss Summary
QUARTERLY SNAPSHOT Q4 & FY23 Profit & Loss Summary (₹ in Crore) PARTICULARS Q4FY22 Q3FY23 Q4FY23 YoY % FY22 FY23 YoY % Total Income 39.89 54.29 50.67 27% 133.26 188.19 41% Total Operating Expenses 30.38 40.52 36.20 19% 102.78 141.47 38% EBITDA (Excluding OI) 8.47 12.30 13.18 56% 26.73 41.27 54% EBIT
Slide 39: Management Commentary
QUARTERLY SNAPSHOT Management We are pleased to report that the Company had a We are working on forward integration or product successful FY23, with robust top-line growth and stage scale-up in some categories, such as profitability after a relatively softer FY22. The growth scaling up from magnets
Slide 40: NdFeB: The Opportunity
NdFeB: The Opportunity Overview Trends • Neodymium magents is • Modern vehicles can use Global Demand a category of rare earth 140+ electric motors, • Global demand for NdFeB magnets was estimated at about 119,000 tons in 2020 (93% sintered magnets & 7% bonded magnets) (RE) permanent magnets many of
Slide 41: Applications: NdFeb Magnets
Applications: NdFeb Magnets Key Uses of NdFeb Magnets: Other applications: • Whitegoods & consumer appliances Pumps & motors • ICE / EV / HEV • Wind turbines Small amounts of magnet, very large volumes (units) Whitegoods & consumer appliances Y – volumes of application units Medium amounts of magnet
Slide 42: Need for an alternate supply chain
Need for an alternate supply chain Over-reliance on China begets alternate supply chain sources Geographical concentration of supply chain stages for sintered NdFeB magnets • China dominates mining, processing and manufacturing parts From center: rare earth mining, oxide separation, metal refining o
Slide 43: MoU with Quadrant International
MoU with Quadrant International A Non-Binding Memorandum of Understanding (MOU) executed between Permanent Magnets Limited and Quadrant International (QI) for Manufacturing of Neodymium Magnets and Assemblies in India and to explore the possibility of forming Joint Venture Company. The acceptance of
Slide 44: Safe Harbour
Safe Harbour No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the