Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q4 FY24 Earnings Presentation
41 slides from Sona Blw Precision Forgings's earnings presentation, Apr 30, 2024
Slide 1: Stock exchange filing cover letter
Date: - 30th April, 2024 BSE Ltd. National Stock Exchange of India Ltd. Regd. Office: Floor - 25, Listing Dept., Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai-400 001. Mumbai - 400 051 BSE Scrip Code: 543300 NSE Scrip: SONACOMS Subject: Investor
Slide 2: Q4 & FY24 Earnings Presentation
Q4 & FY24 Earnings Presentation 30 April 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Our Management
Our Management Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 5: Business Performance Highlights
Business Performance Highlights Complete Drivetrain of an Electric Vehicle
Slide 6: Q4 FY24 Financial Performance Highlights
Q4 FY24 Financial Performance Highlights 8,853 mn | 19% 2,481 mn | 23% 1,487 mn | 24% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 28.0% EBITDA Margin 16.7% PAT Margin1 2,727 mn | 34% 32% BEV Revenue | YoY Growth Q4 FY24 Product Revenue Share from BEV Notes: 1. PAT margin percentage cal
Slide 7: FY24 Financial Performance Highlights
FY24 Financial Performance Highlights 31,848 mn | 19% 9,021 mn | 30% 5,173 mn | 31% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 28.3% EBITDA Margin 16.3% PAT Margin1 31.0% 28.5% RoCE2 RoE3 Notes: 1. PAT margin percentage calculated from PAT including non-controlling interest 2. ROCE =
Slide 8: We have more than doubled on most key metrics in last 3 years
We have more than doubled on most key metrics in last 3 years Revenue EBITDA PAT Net Order Book 2.0x 2.4x 5,173 1.6x 226,000 2.0x 31,848 9,021 140,000 15,663 4,410 2,152 FY 21 FY 24 FY 21 FY 24 FY 21 FY 24 Q1 FY 22 FY 24 BEV Revenue EV Diversification Global Market Share Product Portfolio 4.3x 8,859
Slide 9: Significant growth in last 3 years despite investor concerns
This significant growth in the last 3 years was achieved despite various investor concerns 31,848 2x Red Sea Crisis EV Slowdown FAME subsidy uncertainty Rising Competitive Intensity Margin Sustainability 15,663 Blackstone Exit Russia-Ukraine War UAW Strike China’s Zero Covid Policy 8,804 Chip Shorta
Slide 10: Update on our Strategic Priorities
Update on our Strategic Priorities Tool and Die Shop in our Gurgaon Plant
Slide 11: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 10
Slide 12: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 4.3x 3.6x 1.3x 1.3x 54 29% 8,859 25% 26% 42 6,707 5,042 30 14% 2,057 15 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Revenue Share from BEV BEV segment revenue Cumulative No. of EV Programs awarded 53 54 +1 (10+15+28)1 (11+16+27)1 EV Programs1 a
Slide 13: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 12
Slide 14: Orders worth Rs. 51 bn added to orderbook during FY24
Orders worth Rs. 51 bn were added to our orderbook during FY24 47 39 Programs won in FY24 5 49 New customers added in FY24 CY22 CY23 179 7.2% 8.1% Global Market Share of Differential Gears1 166 CY21 CY23 4.1% 4.2% Global Market Share of Starter Motors1 EV Non-EV Notes: 13 1. As per Ricardo’s market
Slide 15: Our net order book stands at ₹226 billion
Our net order book1 stands at ₹226 billion (7.1x FY24 revenue) 240 bn 26 bn Orders consumed from 12 bn 226 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q3 FY24 programs won in Q4 FY24 Q4 FY24 programs during Q4 FY24 Non-EV EV Rs. 179 Billion (79%) Rs. 47 Bi
Slide 16: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 15
Slide 17: Diversified Product Revenue Mix – By Powertrain
Diversified Product Revenue Mix – By Powertrain Battery EV increasing as a % of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 25% in FY21 to 10% in FY24 FY21 FY22 FY23 FY24 14% 25% 26% 29% 27% 26% 21% 24% 34% 31% 38% 37% 25
Slide 18: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Market segment 7% 1% 4% 4% 1% FY23 FY24 23% PV 20% 43% 15% 69% 70% FY23 FY23 CV 15% 14% 21% 32% 29% 1% 1% E2W/E3W 5% 1% 5% 3% 4% 5% 40% 24% 10% 26% Non-Automotive FY24 FY24 12% 10% Semiconductors 32% 24% & Embedded SW 28% 0.0% 1.0% 17
Slide 19: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 18
Slide 20: Our Technology Roadmap for E.P.I.C. Mobility
Our Technology Roadmap for E.P.I.C. Mobility Connected Zone Monitoring Intelligent Sensors 360˚ Short-range Radar Sensors Electric HV e-Axle 4 EDL In-cabin Spool Gear Epicyclic Geartrain Robotics Gears HV Sensors Non-ferrous Reduction Motor 4 Parts Drive Unit HV Lightweight Inverter Differential Int
Slide 21: Mr. Kiran Manohar Deshmukh's journey since inception of Sona Group
Mr. Kiran Manohar Deshmukh’s exceptional journey since the inception of Sona Group Appointed as Group Taking retirement CTO in Sona Comstar in Oct-24 2017 2019 2023 2024 Sona Group Sold its Sona BLW formed Sona Comstar acquired NOVELIC entire stake in Sona new brand identity, and expanded its techno
Slide 22: Mr. Praveen Chakrapani Rao to take group CTO role
Mr. Praveen Chakrapani Rao will take the group CTO role from November 2024 24 years of experience in Sona Comstar, starting with Visteon’s starter motor business that became Comstar, which merged into Sona Comstar Over 32 years in automotive industry spanning Bosch, Ford, Visteon, and Sona Comstar i
Slide 23: Q4 & FY24 Financial Update
Q4 & FY24 Financial Update Cross Sectional View of Hub Type EV Traction Motor
Slide 24: Q4 FY24 Financials
Q4 FY24 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 23% YoY: 27% YoY: 19% YoY: 24% YoY: 26% 2,481 2,562 1,487 1,547 8,853 2,014 2,019 1,198 1,227 7,440 27.1% 28.0% 27.1% 28.9% 16.1% 16.7% 16.5% 17.4% 2,037 2,727 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24
Slide 25: FY24 Financials
FY24 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 30% YoY: 31% YoY: 34% YoY: 19% YoY: 31% 9,021 9,168 5,173 5,348 31,848 6,958 6,988 3,953 4,001 26,756 28.3% 28.8% 26.0% 26.1% 14.8% 16.3% 15.0% 16.8% 6,707 8,859 FY23 FY24 FY23 FY24 FY23 (adj) F
Slide 26: FCFO of INR 3,737 mn in FY24
FCFO of INR 3,737 mn in FY24 Free Cash Flow from Operations: INR 3,737 mn Numbers in Rs. mn Opening Cash as Net Cash Flow from Capex Other Cash Closing Cash as on on 1st April 2023 Operations Movements 31st March 2024 EBITDA 9,021 NOVELIC Investments (2,110) ∆ Working capital (247) Other Investments
Slide 27: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 6.2 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 30.4% 31.0% 30.4% 26.6% 28.5% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5
Slide 28: Q&A
Q&A
Slide 29: Appendix
Appendix Our Stall at Bharat Mobility Global Expo 2024
Slide 30: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Became publicly listed • 2 Plants • 2 Plants • 47 Customers (37+10) • 73 customers • 1 Product • 2 Products • 9 Plants (5+4) • 9 plants • 10 Products (5+5) • 18 products Revenue in INR
Slide 31: One Vision
One Vision To become one of the World’s most Respected and Valuable Mobility Technology companies for our Customers, Employees & Shareholders. 30
Slide 32: Guided by Values
Guided by Values 35.4% Agility Growth 5-year Revenue CAGR 27.1% Vitality Margins Integrity 5-year Avg. EBITDA >25% Returns Frugality ROE Each Year (FY19-FY23) 31
Slide 33: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally USA Location Capacity3 Germany China Location Capacity3 Tecumseh, MI 1 mn starter motors Belgium Cologne Hangzhou - Ypsilanti, MI Genk 7 of the world’s top 10 PV OEMs1a Serbia Belgrade 3 of the world’s top 10 CV OEMs1b Novi Sad Mexico Location C
Slide 34: Revenue share from BEV has grown 22x over 5 years
Revenue share from BEV has grown 22x over 5 years, with absolute BEV revenue growth at 51x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 22x 51x 8,859 6,707 25% 26% 29% 5,042 14% 2,057 1.3% 2.0% 174 234 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 33
Slide 35: 54 EV programs across 30 different customers
54 EV programs across 301 different customers No. of North America Europe2 Asia programs customers 7 Customers 5 Customers 4 Customers - 4 14 1 6 2 2 27 11 7 7 18 5 2 3 1 18 7 3 3 13 10 1 1 - 3 3 - +1 4 25 Programs in fully ramped-up production India Programs in ramp-up or not yet in production 17 C
Slide 36: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.2% CY23 8.1% of Differential Gears1 Global Market Share CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% CY23 4.2% of Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tract
Slide 37: Electrification: Our Approach to Market
Electrification: Our Approach to Market Driveline Solutions Motor Solutions Core Strength: Core Strength: Power Rating High Torque, High Power Density EV Products Low Voltage, High Power Density Commercial Personal Personal Commercial > 600 kW 300 – 600 kW Epicyclic Spool EDL Geartrain Gears 100 – 3
Slide 38: Product Summary
Product Summary Passenger Vehicles 10 Spool Gears 9 Electronically Locking 13 Differential (EDL) 12 11 360° Short Range 8 Radar Sensors* 7 Reduction In-Cabin Radar 11 Epicyclic Drive Unit* Sensors* 6 1 5 Geartrain 2 4 Integrated 3 Motor Controller Intermediate Module Gears (for Predictive Active Sus
Slide 39: Product Summary
Product Summary Off Highway Vehicles Buses 6 Differential Bevel Gears Spiral Bevel Gears 5 In-Cabin Radar Sensors* 3 4 7 8 1 4 2 1 3 Portal Axle Gears 2 5 6 Traction Motor 360° Short Range Radar Sensors* Controller Light Commercial Vehicles /3-Wheeler (Cargo) Controller* Steering 360° Short Range Be
Slide 40: Product Summary
Product Summary Industrial Automation, Electric 2-Wheelers AGVs & Robots 1 Hub Wheel Motor Integrated Motor & 4 Robotics Gears* 5 1 Controller 3 360° Short Range 4 2 Radar Sensors* 360° Short Range Radar Sensors* 2 Zone Monitoring Sensors* Drive Motor 3 Bot Motors* Electric 3-Wheelers Controller Bui
Slide 41: ESG Performance Highlights
ESG Performance Highlights 14.3 Low Risk Top 9% We have published our second sustainability report Negligible Low Medium High Severe Out of 16,421 in December 2023 0-10 10-20 20-30 30-40 40+ global companies ESG Risk Rating (Core) Click on the image to read the report • 10% improvement in emissions
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