Ceat Limited · NSE:CEATLTD
Ceat — Q4 FY21 Earnings Presentation
30 slides from Ceat's earnings presentation, May 5, 2021
Slide 1: Cover letter to stock exchanges: Investors Presentation
May 5, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 001 Mumbai 400 051 Security Code: 500878 Symbol: CEATLTD NCD Symbol: CL23, CL25 CP Listed ISIN: INE482A14AD9 Dear Sirs /Madam, Sub
Slide 2: Q4 FY21 – Investor Presentation | 5th May 2021
An Group Company Q4 FY21 – Investor Presentation | 5th May 2021
Slide 3: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 4: Table of Contents
Table of Contents Section 1: RPG Group Overview 4-6 Section 2: Business Overview 7-17 Section 3: Operational & Financial Overview 18-26 Section 4: Environment, Social and Governance (ESG) Overview 27-28
Slide 5: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 6: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979. The group currently operates in various UNLEASHTALENT industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in TOUCHLI
Slide 7: RPG Group: Key Financials
RPG Group: Key Financials FY16-20 Gross Total Income (Rs Cr.) FY16-20 CAGR: EBITDA 6.5% PAT 6.0% EBITDA PAT CAGR: 7.6% 2,594 2,423 23,833 24,682 2,218 2,014 2,045 21,766 19,271 20,052 1,031 1,099 1,111 879 980 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Market Cap Net Worth ROE ROCE 8,441 30,0
Slide 8: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 9: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Atul C. Choksey Chairman, Non Executive Director Managing Director COO and Whole Time Director Non Executive Independent Director Pierre E. Cohade Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive Non E
Slide 10: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Senior Vice President Managing Director Chief Financial Officer Chief Operating Officer – Human Resources Dilip Modak Vijay Gambhire Saurav Mukherjee Peter Becker Senior Vice President Chief Executive – CEAT Specialty, Senior Vice
Slide 11: Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 3,400+ dealers, 300+ exclusive CEAT franchisees 7 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 p
Slide 12: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 13: Differentiated Products
1 Differentiated Products Strengthening OEM Relationships Key developments ▪ Focus on OEM, recent entries in new models – Hero MotoCorp Splendor iSmart (BSVI), Hero MotoCorp HF Deluxe (BSVI), Hero Dare 125, Hero Duet E, Maruti Suzuki Alto VXI+, Hero Glammer Refresh, Mahindra Jeeto Z Series, Tata Int
Slide 14: Strong Brand
2 Strong Brand Continued association Indian Premier League as the official Challenging Norms and Changing Perceptions Strategic Timeout Partners through CEAT’s Advertisements and Initiatives CEAT’s #UthaoSawalBadloKhayal campaign India’s first Tyre Shop Owned, Operated and Discussing everything abou
Slide 15: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) Multi Brand Outlet CEAT Bike Shoppe 3400+ 275+ 600+ Dealers & 2W Distributors Districts Channel Partners 300+ 35,000+ 400+ CEAT Franchisees Sub-dealers MBO / SIS 14
Slide 16: Deep OEM Partnerships
4 Deep OEM Partnerships TATA Motors Ashok Leyland VECV Escorts AMW TAFE Mahindra Daimler Eicher SML Isuzu JBM Group Maruti Suzuki TATA Motors Mahindra Renault Hyundai KIA Nissan Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piag
Slide 17: World Class R&D
5 World Class R&D State-of-the-Art R&D Center, Halol R&D Office, Germany ▪ Significant investment on tyre testing infrastructure like Anechoic Chamber, Flat Track Test Machine ▪ Focus on upcoming technologies like Electric Vehicle, Sustainability and Smart Tyres 16
Slide 18: Expanding Global Reach
6 Expanding Global Reach Key Export Clusters Emerging markets ▪ Exports to 90+ Countries in 7 Europe Cluster clusters US Cluster ▪ Sri Lanka: Manufacturing facility and Leadership position Middle East in the market and with 50+% Cluster market share Far East 1 Cluster Far East 2 Cluster ▪ Focused pr
Slide 19: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 20: Q4 FY21 Operational Highlights
Q4 FY21 Operational Highlights Awards and Recognition Launches on CEAT Awarded Best Company in Quality management for standard parts by Honda Partnership with Renault Renault Kiger B-SUV rolled out on CEAT SecuraDrive tyres Recognized among India’s top 10 workplaces in health and wellness by GPTW in
Slide 21: Consolidated: Q4 FY21 Financial Highlights
Consolidated: Q4 FY21 Financial Highlights Q4 FY21 v/s Q3 FY21 (Q-o-Q) Q4 FY21 v/s Q4 FY20 (Y-o-Y) ▪ Net revenue from operations grew by 3.1% to INR 2,290 ▪ Net revenue from operations grew by 45.5% to INR 2,290 Crs from INR 2,221 Crs Crs from INR 1,573 Crs ▪ Gross margin contracted to 42.0% from 45
Slide 22: Consolidated: Financial Trends – Revenue growth and margins
Consolidated: Financial Trends Revenue growth 7,610 6,985 6,779 6,283 5,722 Net Sales (Rs Cr) FY17 FY18 FY19 FY20 FY21 13.4% 16.0% 14.0% 12.0% 10.9% Margin trends 10.2% 1,019 12.0% 9.5% EBITDA (Rs Cr) 10.0% 741 8.0% 638 663 685 6.0% EBITDA to Net 4.0% Sales % 2.0% 0.0% FY17 FY18 FY19 FY20 FY21 Note
Slide 23: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 9.0% 450 8.0% 400 6.3% PAT trends 5.7% 7.0% 350 6.0% 300 3.6% PAT (Rs Cr) 3.7% 3.4% 5.0% 250 200 432 4.0% 150 361 3.0% PAT to Net Sales% 100 233 251 230 2.0% 1.0% 50 - 0.0% FY17 FY18 FY19 FY20 FY21 Notes All figures are per IND AS 22
Slide 24: Consolidated: Q4 FY21 Financials
Consolidated: Q4 FY21 Financials All figures in INR Cr Parameter Q4 FY20 Q3 FY21 Q4 FY21 QoQ YoY FY20 FY21 YoY Net Revenue from operations 1,573.4 2,221.3 2,289.7 3% 46% 6,778.8 7,609.6 12% Raw Material 855.2 1,209.6 1,328.3 10% 55% 3,915.1 4,266.3 9% Gross margin 718.3 1,011.7 961.5 -5% 34% 2,863.8
Slide 25: Consolidated: Leverage / Coverage Profile
Consolidated: Leverage / coverage Profile Total Debt 924 872 1498 1929 1418 (INR Cr) 2000 1693 1800 1600 LT Debt (Rs Cr) Debt breakup 1400 1200 1274 1397 1000 ST Debt (Rs Cr) 0.66 866 0.54 800 600 676 0.42 400 0.33 D/E 0.38 58 200 0 196 224 236 21 FY 17 FY18 FY19 FY20 FY21 Leverage ratios 1019 663 7
Slide 26: Standalone: Q4 FY21 Financials
Standalone: Q4 FY21 Financials All figures in INR Cr Parameter Q4 FY20 Q3 FY21 Q4 FY21 QoQ YoY FY20 FY21 YoY Net Revenue from operations 1,564.5 2,212.5 2,279.0 3% 46% 6,747.9 7,572.8 12% Raw Material 851.6 1,206.5 1,325.9 10% 56% 3,905.3 4,251.3 9% Gross margin 712.9 1,006.0 953.1 -5% 34% 2,842.6 3
Slide 27: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 2,000 4,000,000 3,500,000 1,500 3,000,000 2,500,000 1,000 2,000,000 1,500,000 500 1,000,000 500,000 - - Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Source : Stock Exchange. The above data is upd
Slide 28: Section 4: Environment, Social and Governance (ESG) Overview
Section5: Section 4:Operational Environment,& Social, Financial Governance (ESG) Overview Overview
Slide 29: CEAT's ESG Journey So Far
CEAT’s ESG Journey So Far Long-Term Goal: ‘Minimizing adverse environmental impact on the Planet and Communities where we live, work or source.’ 2019 Embarked on the ESG journey 2030 Sustainability Vision: 2020 Published maiden Reduce Carbon Footprint by 50% Integrated Annual Report FY20 ▪ Using the
Slide 30: Thank You
T H A N K Y O U