Divgi Torqtransfer Systems Ltd. · NSE:DIVGIITTS
Divgi Torqtransfer Systems — Q2 FY2024 Earnings Presentation
36 slides from Divgi Torqtransfer Systems's earnings presentation, Nov 1, 2023
Slide 1: Submission of Investor Presentation to stock exchanges
Divgi TorqTransfer Systems Limited Divgi TorqTransfer Systems CIN: L32201MH1964PLC013085 75, General Block, MIDC, Bhosari, Pune 411 026, India Tel: (+91-20) 63110110 Web: www.divgi-tts.com Ref.: DTTS/Sec/23-24/81 November 01, 2023 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroz
Slide 2: Q2 & H1 FY24 Earnings Presentation
Divgi TorqTransfer Systems Limited Q2 & H1 FY24 Earnings Presentation
Slide 3: Disclaimer and caution statement regarding forward-looking statements
Disclaimer and caution statement regarding forward-looking statements This presentation and the accompanying slides (the “Presentation”), which have been prepared by Divgi TorqTransfer Systems Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer
Slide 4: Agenda
Agenda 1 Executive Summary 2 Financial Performance & Business Highlights 3 Revenue Walk 4 Updates on new manufacturing equipment & facility 5 Updates on new programs 3 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 5: Our Management
Our Management Mr. Jitendra Divgi Mr. Hirendra Divgi Managing Director Whole Time Director Mr. Sudhir Mirjankar Mr. Dipak Vani Chief Financial Officer Chief Operating Officer 4 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 6: Executive Summary
Executive Summary As discussed in the last call, revenue has normalized and is back on track, growth expected from Q3FY24 – To provide context, last year's average monthly revenue from operations was Rs 22.58 Cr, and the monthly run rate for Q2FY24 is Rs 22.91 Cr – Expected 20% growth on the monthly
Slide 7: Executive Summary
Executive Summary Revenue during the quarter grew by ~19% on a qoq basis The adjusted Q2FY24 PBT growth rate on a qoq basis ~ 26%, excluding the supplementary invoice income of Rs 2.61 Cr in Q1FY24 As we ramp-up at our new facility, the cost structure has been impacted by the sales mix, startup cost
Slide 8: Quarterly and half-yearly performance
Quarterly and half-yearly performance 7 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 9: Profit before tax Walk - Quarterly
Profit before tax Walk- Quarterly Upon customer confirmation, the company raised invoices for price rise of Rs 2.61 Cr in Q1FY24 Return on Invested Capital for H1FY24 ~12.92%, affected Working Capital Management by growth CapEx – Defence business affected by longer recovery cycle – New Program ramp-
Slide 10: Cash Reserves
Cash Reserves Rs mn 3,500.00 3,113.47 3,000.00 2,703.54 2,500.00 2,000.00 1,732.25 1,589.01 1,499.74 1,500.00 1,000.00 500.00 0.00 FY20 FY21 FY22 FY23 H1FY24 CapEx 9 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 11: Revenue Walk
Revenue Walk
Slide 12: Revenue Walk - Quarterly
Revenue Walk - Quarterly Q2FY24 Q1FY24 Q-o-Q Q2FY23 Y-o-Y Particulars (₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) (₹ Cr) Transfer Case 42.23 39.07 3.16 50.67 (8.44) NexTrac 1.63 1.84 (0.21) 2.97 (1.34) ALH 0.78 1.31 (0.53) 2.37 (1.59) E-Gear Drive 10.34 0.68 9.66 0.04 10.3 Synchro 3.43 2.24 1.19 5.34 (1.91) Compone
Slide 13: Revenue Walk – Half-yearly
Revenue Walk – Half-yearly H1FY24 H1FY23 Y-o-Y Particulars (₹ Cr) (₹ Cr) (₹ Cr) Transfer Case 81.30 91.12 (9.82) NexTrac 3.47 4.90 (1.43) ALH 2.09 3.99 (1.90) E-Gear Drive 11.02 0.12 10.90 Synchro 5.67 10.87 (5.20) Components 14.35 20.08 (5.73) After Market 0.67 0.81 (0.14) Tooling & Other Operating
Slide 14: Updates on new manufacturing equipment & facility
Updates on new manufacturing equipment & facility
Slide 15: State-of-the-art manufacturing facility
State-of-the-art manufacturing facility… New manufacturing facility at Shirwal, Pune 14 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 16: State-of-the-art manufacturing facility - Sirsi
…state-of-the-art manufacturing facility… New facility at Sirsi 15 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 17: Capability Enhancement - Q2FY24
Capability Enhancement - Q2FY24
Slide 18: State-of-the-art manufacturing equipment
State-of-the-art manufacturing equipment… Liebherr – 8 Axis CNC Hobbing Machine: LC250 Klingelnberg – 11 Axis CNC Gear Grinding Machine: SV300 17 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 19: State-of-the-art manufacturing equipment
State-of-the-art manufacturing equipment… Makino – 6 Axis CNC Horizontal Machining Centre: a61nx Makino – 3 Axis CNC Vertical Machining Centre: Slim 5n 18 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 20: State-of-the-art manufacturing equipment
State-of-the-art manufacturing equipment… PMT – 2 Axix CNC OD & Face Grinding Machine: AWH 600 (2 Nos) Pegasys – Shaft Straightening Machine 19 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 21: State-of-the-art manufacturing equipment
State-of-the-art manufacturing equipment… Ravjeet- 3 Axis CNC Tooth Chamfering Machine (2 Nos) Innotek- Laser Marking Machine 20 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 22: State-of-the-art manufacturing inspection & testing equipment
State-of-the-art manufacturing inspection & testing equipment… CNC Gear Roll Tester 21 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 23: Inhouse Heat Treatment Cell
Inhouse Heat Treatment Cell 22 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 24: Dyno Durability Test Stand from FEV, Germany
Dyno Durability Test Stand from FEV, Germany This test stand will increase capability of ₋ Transmission Durability Test ₋ Lubrication and Breather Evaluation Test DIVGI-TTS for inhouse validation of ₋ Transmission Efficiency Test ₋ Gear Contact Pattern Test Transfer Cases, MT, DCT and EV ₋ Different
Slide 25: Noise, Vibration & Harshness, NVH Testing Equipment
Noise, Vibration & Harshness, NVH Testing Equipment 24 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 26: Growth CapEx FY20 to H1FY24
Growth CapEx FY20 to H1FY24 Cumulative CapEx Rs mn Rs 1,909 800 mn 700 684.31 600 500 438.5 399.26 400 300 255.68 200 130.92 100 0 FY20 FY21 FY22 FY23 H1FY24 CapEx 25 Privileged & Confidential, © 2023, All Rights Reserved.
Slide 27: Recap and update on the business progress outlined in the previous call
Recap and update on the business progress that was outlined in the previous call
Slide 28: Updates on business and operations outlined in the previous call
Outlined in the previous call - Updates on business and operations Expect strong recovery driven by – headwinds in existing business normalizing from Q2FY24; – Our new facility at Shirwal is expected to become operational in Q2FY24 with EV revenue ramp-up expected thereafter; – Other EV business exp
Slide 29: Updates on new programs
Updates on new programs New order wins with life cycle value of INR 7,190 million Transmissions for Electric Vehicles EV System & Components Business -Life Cycle Revenue of Rs 2190 Mn Torque Transfer Systems & Torque Coupler 4WD System Business -Life Cycle Revenue of Rs 2100 Mn 4WD Export Components
Slide 30: 4WD Export Components Business
4WD Export Components Business Customer : Fortune’s World’s Most Admired Company Project Status Business Enquiry : 10th February 2021 Milestones completed : Business Awarded on : 11th August 22 Sample Submission : 19th January 23 Life Cycle Revenue : Rs 180 Crore Production Approval : 24th August 23
Slide 31: 4WD System Business
4WD System Business Customer : Leading Indian OEM Project Status Business Enquiry : 04th April 2022 Milestones completed : Business Awarded on : 18th July 2023 Sample Submission : Life Cycle Revenue : Rs 210 Crore MT : February 23 AT : October 23 Upcoming milestones : Production Approval : December
Slide 32: Manual Transmission Components
Manual Transmission Components Customer : Leading Indian OEM Project Status Business Enquiry : 17th June 22 Milestones completed : Business Awarded on : 14th December 23 Sample Submission : 24th February 23 Life Cycle Revenue : Rs 110 Crore Production Approval : 22nd July 23 Start of Production : Au
Slide 33: Speed Reducer & EV Transmission Components
Speed Reducer & EV Transmission Components Customer : Leading Indian OEM Project Status Business Enquiry : 20th December 22 Milestones completed : Business Awarded on : 10th August 2023 Sample Submission : 17th September 23 Life Cycle Revenue : Rs 219 Crore Upcoming milestones : Production Approval
Slide 34: Speed Reducer
Speed Reducer Customer : Leading Indian OEM Project Status Business Enquiry : 16th April 2021 Milestones completed : Business Awarded on : 23rd July 2022 Sample Submission : November 22 / March 23 Capacity Installed for : 35500 Nos Annually Production Trial : October 23 Upcoming milestones : Product
Slide 35: DTTS - Summary
DTTS - Summary Strong focus on research and Strategically located manufacturing facilities development and advanced in- capable of producing high-precision house hardware and software components meeting system-level design capabilities intent Presence in fast- growing segments Amongst very few compa
Slide 36: Thank You!
iS] Divgi-TTS Thank You!
Divgi TorqTransfer Systems — Q2 FY2024 Earnings Presentation on 6ix