Permanent Magnets Limited · BSE:PERMAGN
Permanent Magnets — Q4 FY2024 Earnings Presentation
42 slides from Permanent Magnets's earnings presentation, March 2024
Slide 1: Investor Presentation Q4 & FY24
INVESTOR PRESENTATION Q4 & FY24 Trust Reliability Quality Permanent Magnets Limited Investor Presentation 1
Slide 2: Inside this presentation
03 QUARTERLY SNAPSHOT 19 BUSINESS OVERVIEW 06 COMPANY OVERVIEW 26 STRATEGIC REVIEW 29 TRENDS & GROWTH DRIVERS Inside this 37 presentation FINANCIAL SNAPSHOT Permanent Magnets Limited Investor Presentation 2
Slide 3: Quarterly Snapshot
QUARTERLY SNAPSHOT Q4 & FY24 PROFIT & LOSS SUMMARY 04 MANAGEMENT COMMENTARY 05 Permanent Magnets Limited Investor Presentation 3
Slide 4: Q4 & FY24 Profit & Loss Summary
QUARTERLY SNAPSHOT Q4 & FY24 PROFIT & LOSS SUMMARY PARTICULARS (₹ in Crore) Q4FY23 Q3FY24 Q4FY24 YoY % FY23 FY24 YoY % Total Income 50.67 51.56 55.40 9% 188.19 205.87 9% Total Operating Expenses 36.20 43.44 46.54 29% 141.47 166.04 17% EBITDA (Excluding OI) 13.18 7.09 7.05 -47% 41.27 35.43 -14% EBITD
Slide 5: Management Commentary
QUARTERLY SNAPSHOT MANAGEMENT COMMENTARY I am pleased to update you on the financial and operational Another important development has been the commencement performance of PML for Q4 & FY24. FY24 proved to be a year of our alloys facility in Q4. This business has been born out of of progress for PML
Slide 6: Company Overview
COMPANY OVERVIEW JOURNEY & TRANSFORMATION 07 PML AT A GLANCE 08 PML’S VALUE PROPOSITION 09 ROBUST CAPABILITIES 10 PRODUCT PLATFORMS 11 KEY PRODUCTS 12 CRITICAL PRODUCT APPLICATIONS 13 ESTABLISHED CLIENTELE 15 STRONG CORPORATE GOVERNANCE 16 KEY TECHNICAL PARTNERSHIPS 17 QUALITY CONTROL SYSTEMS 18 Per
Slide 7: Journey and Transformation
COMPANY OVERVI EW JOURNEY AND TRANSFORMATION 1960 - 2005 2005 - 2015 2015 - 2024 • Growth in magnets • Change in the energy meters technology led to • Magnets business stabilised in last couple of years business for energy a downturn in the magnets business • Further to drive growth, categories mete
Slide 8: PML at a Glance
COMPANY OVERVI EW PML AT A GLANCE Permanent Magnets is a leading solution provider of electrical components and assemblies based on certain core technologies such as current & speed sensing, magnetic 60+ Years of expertise 350+ Actively shielding, and magnetic assemblies. These components and into m
Slide 9: PML's Value Proposition
COMPANY OVERVI EW PML’S VALUE PROPOSITION AIMS TO BE A COMPREHENSIVE SOLUTION PROVIDER PML is a solution provider with expertise in design, WITH SCALABLE MANUFACTURING prototype and production of components, assemblies and CAPABILITIES, IN materials related to Automobile, Metering and other sectors
Slide 10: Robust Capabilities
COMPANY OVERVI EW ROBUST CAPABILITIES PML has exceptional expertise in the fields of Understanding of Quality metallurgy, mechanical • Experts in metallurgy, mechanical, & Client Requirements electrical and electronics engineering, electrical • AEC-Q200 lab for qualifications & type tests engineerin
Slide 11: Product Platforms
COMPANY OVERVI EW PRODUCT PLATFORMS Magnetic Sensing • Speed sensing Magnetic Assemblies Zamak Die Casting Magnetic assemblies focused on A die-casting technology using • Torque sensing performing functions such as: ZAMAK (Zinc-Aluminium- • Angular sensing • Holding Manganese-Copper) alloys, Focus o
Slide 12: Key Products
COMPANY OVERVI EW KEY PRODUCTS 01 02 03 04 05 Magnetic Sensing Current Sensing Magnetic Assemblies Alloys Zamak Die Casting Sensing Module Current Sensing Module Shielding C Shape Magnetic Lifter Alloy Ingot ZAMAK Valve Shunt Current Sensing Module Shielding-MuMETAL Stator Rotor Lamination Iron Fili
Slide 13: Critical Product Applications
COMPANY OVERVI EW CRITICAL PRODUCT APPLICATIONS Automobile Speed Sensor EPS 1. Laminations 1. Permanent Magnets 2. Rotor Laminations 3. EPS Battery Current Sensor 1 7 3 4 6 4. Shield 4. Flux Concentrator 4. Shunt 5 2 Battery Monitoring Sensor 5. Clamp 5. HSM 5. Smart Battery 6. Toroidal 7. BMS Clamp
Slide 14: Critical Product Applications
COMPANY OVERVI EW CRITICAL PRODUCT APPLICATIONS ELECTRICITY METERS GAS METERS 1 CT 2 1 2 Shunt 4 3 3 Brass terminal Diaphragm 4 Assembly Permanent Magnets Limited Investor Presentation 14
Slide 15: Established Clientele
COMPANY OVERVI EW ESTABLISHED CLIENTELE Automobiles & Electricity Meters are PML’s key application industries PML is the only supplier for many products and amongst the top 2 or 3 AUTOMOBILE ELECTRICITY METERS suppliers for most of the ~50% of Tier-I Top 3 other products • PML is a preferred supplie
Slide 16: Strong Corporate Governance
COMPANY OVERVI EW 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 MR. NIRMAL JAIN MR. SHARAD MR. KAMAL BINANI MR. MUKUL TAPARIA MS. SUNAINA MR. GIRISH DESAI MUNDRA Additional Direc
Slide 17: Key Technical Partnerships
COMPANY OVERVI EW 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 Collaborations Centro Magneti Permanenti - Italy | 1973
Slide 18: Quality Control Systems
COMPANY OVERVI EW QUALITY CONTROL SYSTEMS • PML adheres to the quality standards of the industry • The production facilities and QMS are certified by IATF, AS, EMS and OSHAS Key Certifications • PML is regularly audited by customers • PML has renowned measurement equipment such as Koerzimat, BH Loop
Slide 19: Business Overview
BUSINESS OVERVIEW NEW PRODUCT DEVELOPMENT 20 PRODUCT LIFE CYCLE 21 COMPONENTS TO MODULES 22 BROAD-BASING CUSTOMER BASE 23 GEOGRAPHY-WISE SALES TREND 24 APPLICATIONS-WISE SALES TREND 25 Permanent Magnets Limited Investor Presentation 19
Slide 20: New Product Development
BUSI NESS OVERVI EW NEW PRODUCT DEVELOPMENT For customer Developing cost- Incorporating COMMERCIALISING designed products effective manufacturing customer feedback PRODUCTS solutions & iterations >> Successfully moving products from prototyping stage to commercial production GENERATING DEVELOPING CU
Slide 21: Product Lifecycle
BUSI NESS OVERVI EW PRODUCT LIFECYCLE • Continuous product additions to compensate sales of maturing products As part of recent • Focus on technologies & capabilities rather than specific-products strategic initiatives, • Rate of new product introductions will be higher than rate of maturity PML has
Slide 22: Components to Modules
BUSI NESS OVERVI EW COMPONENTS TO MODULES Value addition in components can generate significantly higher revenues at each product stage Product A strategic move to 1x SHUNTS Components to Modules Value Chain: 01 Stage 1 add competencies in Illustration for Shunts modules Product Stage 2 1.3x SHUNTS
Slide 23: Broad-basing Customer Base
BUSI NESS OVERVI EW BROAD-BASING CUSTOMER BASE PML is Actively Diversifying & TOP 5 & 10 CLIENT SALES CONTRIBUTION Strengthening its revenue stream through: 58% • Actively commercialising new products FY24 44% in Smart Meters, Alloys domain • Significant new client addition FY23 52% (Direct & In-dir
Slide 24: Geography-wise Sales Trend
BUSI NESS OVERVI EW GEOGRAPHY-WISE SALES TREND • Asia continues to be the flagship market • Recent growth in Asia driven by growing India business (domestic smart meters sector) • Americas witnessed a drop recently on account of lower demand from EV customers & few customers in metering industry in
Slide 25: Application-wise Sales Trend
BUSI NESS OVERVI EW APPLICATION-WISE SALES TREND • Electricity Meters continues to be the flagship application industry • Recent decrease in Automobiles contribution on account of EV slowdown • New application categories include Electrical, Medical, Aerospace, Engineering and Computers • Gas Meters
Slide 26: Strategic Review
STRATEGIC REVIEW NEW BUSINESS DEVELOPMENT 27 STRATEGIC PRIORITIES 28 Permanent Magnets Limited Investor Presentation 26
Slide 27: New Business Development
STRATEGI C REVI EW NEW BUSINESS DEVELOPMENT Introducing newer modules TECHNOLOGIES & and components CAPABILITIES New projects in casting space New application of ZAMAK die-casting High-volume sheet metal forming Wire winding PML is working on adding newer competencies Plastic moulding capabilities P
Slide 28: Strategic Priorities
STRATEGI C REVI EW STRATEGIC PRIORITIES Business growth from additional capabilities & new growth drivers <5 YEAR Scaling business from < 3 YEAR Scaling modules Commissioning of integrated Quantum Magnetics in business NdFeB & other RE magnets facility Scaling up alloys Scaling up domestic smart bus
Slide 29: Trends & Growth Drivers
TRENDS & GROWTH DRIVERS GLOBAL SMART METERS: MARKET 30 TRENDS SMART ELECTRICITY METERS: 31 GROWTH DRIVERS INDIA SMART METERS: MARKET 32 TRENDS EV MARKET: MARKETS TRENDS 33 NdFeB: THE OPPORTUNITY 34 APPLICATIONS: NdFeB MAGNETS 35 NEED FOR AN ALTERNATE SUPPLY 36 CHAIN Permanent Magnets Limited Investo
Slide 30: Global Smart Meters: Market Trends
TRENDS & GROWTH DRI VERS GLOBAL SMART METERS: MARKET TRENDS • Replacement of traditional meters with modern monitoring technologies to drive industry dynamics • Smart grid networks, government regulations and directives for smart meter implementation will fuel market expansion Canada Europe Global S
Slide 31: Smart Electricity Meters: Global Growth Drivers
TRENDS & GROWTH DRI VERS SMART ELECTRICITY METERS: GLOBAL GROWTH DRIVERS Need for increasing energy efficiency and On the one hand, minimising power loss & theft during transmission the smart meter infrastructure is to Benefits to customers such as detecting empower customers by failures early, acco
Slide 32: India Smart Meters: Market Trends
TRENDS & GROWTH DRI VERS INDIA SMART METERS: MARKET TRENDS Update on Smart Meter Installation India Smart Meters Opportunity ($ Bn) >34% CAGR Under RDSS (1st May 2024) 250 MN 2023 2032 3180 GOI'S Under RDSS, the GOI has entailed TARGETED 01 installation of smart metering system INSTALLATION 220 to i
Slide 33: EV Market: Market Trends
TRENDS & GROWTH DRI VERS GLOBAL ELECTRIC VEHICLE STOCK EV MARKET: BY REGION (UNITS IN MN) MARKET TRENDS 1.9 4.9 2023 Overview 11.2 21.9 • Over 40 million electric cars were on the road in 2023, 1.1 up 54% relative to 2022. 2022 3.0 7.8 • Electric car sales increased by 3.5 million higher than in 13.
Slide 34: NdFeB: The Opportunity
TRENDS & GROWTH DRI VERS NdFeB: THE OPPORTUNITY Overview Trends • Neodymium magents is a • Modern vehicles can use Global Demand 140+ electric motors, category of rare earth (RE) many of which use • Global demand for NdFeB 119,000 X permanent magnets – tons by 2020 specifically, neodymium-iron- NdFe
Slide 35: Applications: NdFeB Magnets
TRENDS & GROWTH DRI VERS APPLICATIONS: NdFeB MAGNETS Key Uses of NdFeb Magnets Other applications • Whitegoods & consumer appliances • ICE / EV / HEV • Wind turbines Pumps & motors Small amounts of Whitegoods Y – volumes of application units magnet, very large & consumer volumes (units) appliances M
Slide 36: Need for an Alternate Supply Chain
TRENDS & GROWTH DRI VERS NEED FOR AN ALTERNATE SUPPLY CHAIN Over-reliance on China begets alternate supply chain sources Geographical concentration of supply NdFeb Magnets Value Chain chain stages for sintered NdFeB magnets • China dominates mining, processing and From center: rare earth mining, oxi
Slide 37: Financial Snapshot
FINANCIAL SNAPSHOT PROFIT & LOSS STATEMENT 38 SUMMARY BALANCE SHEET STATEMENT 39 SUMMARY CASH FLOW STATEMENT SUMMARY 40 KEY PERFORMANCE INDICATORS 41 Permanent Magnets Limited Investor Presentation 37
Slide 38: Profit & Loss Statement Summary
FI NANCI AL SNAPSHOT PROFIT & LOSS STATEMENT SUMMARY PARTICULARS (₹ in Crore) FY20 FY21 FY22 FY23 FY24 Total Revenue 109.26 117.57 133.26 188.19 205.87 Total Operating Expenses 86.01 91.43 102.78 141.47 166.04 EBITDA (Excluding OI) 20.55 25.25 26.73 41.27 35.43 EBITDA (Excluding OI) % 19% 22% 21% 23
Slide 39: Balance Sheet Statement Summary
FI NANCI AL SNAPSHOT BALANCE SHEET STATEMENT SUMMARY PARTICULARS (₹ in Crore) FY20 FY21 FY22 FY23 FY24 Shareholders Fund 47.87 64.03 82.22 110.95 132.39 Non Current Liabilities 5.73 4.44 3.91 4.69 15.11 Current Liabilities 19.50 25.52 29.84 35.63 35.26 - Trade Payables 14.98 22.15 24.60 29.35 27.29
Slide 40: Cash Flow Statement Summary
FI NANCI AL SNAPSHOT CASH FLOW STATEMENT SUMMARY PARTICULARS (₹ in Crore) FY20 FY21 FY22 FY23 FY24 Cash from Operating Activities 11.50 6.36 3.66 11.47 19.36 Cash from Investing Activities -1.54 -2.06 -3.80 -9.52 -17.94 Cash from Financing Activities -8.78 -2.86 -2.63 -1.23 2.02 Net Cash Flow 1.18 1
Slide 41: Key Performance Indicators
FI NANCI AL SNAPSHOT KEY PERFORMANCE INDICATORS EBITDA Margin (In %) ROCE (In %) FY24 18% FY24 22% FY23 23% FY23 36% FY22 21% FY22 31% FY21 22% FY21 33% FY20 19% FY20 38% ROE (In %) Working Capital Days (In Days) FY24 17% FY24 122 FY23 27% FY23 150 FY22 23% FY22 136 FY21 25% FY21 99 FY20 30% FY20 10
Slide 42: 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