Sharda Motor Industries Ltd. · NSE:SHARDAMOTR
Sharda Motor Industries — Q2 FY25 Earnings Presentation
41 slides from Sharda Motor Industries's earnings presentation, Nov 14, 2024
Slide 1: Stock exchange filing cover letter
SMIL: LISTING/24-25/1411/01 November 14, 2024 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza, 5th Floor Pheroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street, Mumbai - 400 001 Bandra - Kurla Complex, Mumbai - 400 051 (SCRIP CODE - 535602)
Slide 2: Investor Presentation November 2024
Investor Presentation November 2024 www.shardamotor.com
Slide 3: Safe Harbour
Safe Harbour 0 5 This presentation and the accompanying slides (the “Presentation”), have been prepared by Sharda Motor Industries Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and s
Slide 4: Company Overview
Company Overview
Slide 5: Sharda Motor at a glance
Sharda Motor at a glance 0 5 India’s largest manufacturer of emission control systems Best-in-class manufacturing facilities Sharda Motor Domestic Presence ~30% market share for passenger vehicles in India Manufacturing facilities across Manufacturing locations locations in four states of India at t
Slide 6: Sharda Motor | The journey so far
Sharda Motor | The journey so far 0 5 1986 1987 1994 1998 Inception of Sharda IPO & Listing at Delhi Launch of 1ˢᵗ large scale Foray into Exhaust Motor Industries Stock Exchange production unit & entry Systems business with the into Trim business Chennai unit 2019 2018 2010 2002 Joint Venture with P
Slide 7: Well-positioned to take advantage of strong tailwinds
Sharda Motor | Well-positioned to take advantage of strong tailwinds 0 5 Market leadership Modern Multiple Industry enabled through Diverse product Attractive Financial Infrastructure Growth Catalysts best-in-class portfolio Metrics Geared for growth technology ● Emission norms continue ● Market sha
Slide 8: Emission norms in India have been tightening steadily since the 1990s
Emission norms in India have been tightening steadily since the 1990’s… 0 5 Since the introduction of emission norms for 4 wheelers in 1991, target aggregate pollutants have been declining steadily… 21.6 7.9 Regulated Pollutants (g/km for cars, g/KWhr for CV) 3.83 1.78 1.25 0.83 0.67 Cars/Light-duty
Slide 9: Sharda Motor at the forefront of major changes in emission norms
…with Sharda Motor at the forefront of major changes in emission norms over the years… 0 5 Despite changing emission norms, Sharda Motor has been consistently adding scale, capabilities and customers over the years Sharda Motor Consolidated Revenue from Operations (FY ending in INR crores) Transitio
Slide 10: Well poised to capitalize on on-road and off-road emerging norms
Sharda Motor is well poised to capitalize on on-road as well as off-road emerging norms… 0 5 On-road and off-road legislations have opened up a plethora of opportunities for Sharda Motor leading to increase in content per vehicle On-Road Off-Road ➢ BS-6.2 RDE (Real Driving Emissions) Norms (April 20
Slide 11: Ability to service requirements of OEMs across all vehicle segments
…with ability to service requirements of OEMs across all vehicle segments… 0 5 Experience having served OEMS in all vehicle segments Passenger Stationary Off-Road MHCVs Tractors Vehicle Engines Vehicles Capabilities across the value chain Structural Design for Design CFD Analysis Proto Build Analysi
Slide 12: Strategically located best-in-class manufacturing facilities
….enabled by strategically located best-in-class manufacturing facilities… 0 5 State-of-the art manufacturing facilities located at the heart of India’s automotive clusters Corporate Office Manufacturing facility Delhi ● Corporate Office R&D Facility Sanand ● Exhaust System Nashik 2 facilities ● Exh
Slide 13: State-of-the-art, future-ready capabilities
…with state-of-the-art, future-ready capabilities 0 5 Sharda Motor has invested in its units Fully-backward integrated manufacturing facilities ready for incremental growth without capex Gross Tangible Assets (INR crores) Tube Mill Manufacturing - ( Backward Integration ) ● Wide product range of ERW
Slide 14: State-of-the-art research and development set up
State-of-the art research and development set up… 0 5 State-of-the-art R&D facility at Chennai Design & Development Center at Namyang Established for exhaust systems in Established R&D unit for exhaust system in 2002 and Hwaseong-si, Gyeonggi-do in 2011 and emission system 2010 at Mahindra World Cit
Slide 15: Product portfolio evolution over time
…has helped Sharda Motor’s product portfolio evolve significantly over time 0 5 ● Innovation/Technology – Exhaust & Adjacent ● Fully developed capabilities for Products cold-end system in 2016 ● TREM V products ● Fully developed hot-end ● Successful transition from already developed by systems from
Slide 16: R&D focused approach has yielded tremendous results
R&D focused approach has yielded tremendous results for Sharda Motor 0 5 Capital steadily invested over the years to build Sharda Motor has filed 10 IPs in last 2 competencies in R&D years and 3 patents granted IP - 01 Documented Exhaust Micro-perforated Patch Standard, Testing & Patent Granted Anal
Slide 17: Diverse portfolio of product offerings
Today, Sharda Motor has a diverse portfolio of product offerings… 0 5 Soft-top canopies Independent Front Suspension Emission Control Systems Assembly Upper & Lower Control Arm Front Axle Assembly 16 Privileged & Confidential, © 2024, All Rights Reserved.
Slide 18: Deep-rooted relationships with marquee OEMs
…helping Sharda Motor garner deep-rooted relationships with marquee OEMs 0 5 Catering to customers across vehicle segments Sharda Motor is well recognized by its customers for its quality and reliability FY24 Consolidated Revenue from Operations split by end-user vehicle segment (%) 2024 2023 2021 2
Slide 19: Key Growth Strategies
…with strategies in place to further grow the business 0 5 Capitalizing on TREM V regulations to increase revenues from Agri & Off- highway segments Increasing revenues from commercial vehicle segment, specifically focusing on the 3–4-liter segment Capitalizing on theme of ‘China+1’ and grow revenue
Slide 20: Focused strategy to increase revenues from CVs & Farm Equipment
Focused strategy to increase revenues from CVs & Farm Equipment segments 0 5 Segments least affected by electrification… …with robust growth estimates going forward Estimated EV Penetration by 2028 % Domestic CV Sales (‘000 units) 1,150 Commercia Vehicles Sharda is expected to leverage its newly 1-8
Slide 21: Capitalize on 'China+1' to grow overseas revenues
Capitalize on emerging theme of ‘China+1’ to grow revenues from overseas customers 0 5 Over the last few years, on the back of supply chain issues led by the COVID-19 pandemic and trade war shocks, trade relations between US, EU and China have been disrupted. As OEMs seek to diversify supply chains
Slide 22: Lightweighting emerges as a key megatrend for auto OEMs
As lightweighting emerges as one of the key megatrends for auto OEMs globally… 0 5 Benefit for ICE Vehicles Powertrain Efficiency ● Boosting and valve technology For ICE, reducing the vehicle weight improves the fuel ● Transmission & driveline economy with typically cited rates of 10% less weight an
Slide 23: Building the lightweighting vertical
…Sharda will capitalize on the growing opportunity and build its lightweighting vertical 0 5 Sharda Motor’s suspension business has been growing steadily and achieved a market share of ~10%* Suspension business poised for new highs With the commissioning of Unit III at SMIL’s Revenue from Suspension
Slide 24: Operations overseen by well-experienced board
Operations overseen by well-experienced board… 0 5 Mr. Navin Paul Mr. Kishan Parikh Mr. Ajay Relan Chairman, Non- Mr. Nitin Vishnoi Independent Non- Managing Director Executive Director Executive Director and Executive Non- Company Secretary Independent Director ● Has over 23 years of work experienc
Slide 25: Experienced senior management
…complimented by experienced senior management 0 5 Mr. Ajay Relan Mr. Aashim Relan Mr. Deepak Mr. Puru Mr. Nitin Vishnoi Aggarwal Executive Director Managing Chief Executive Manchanda and Company Director Officer CEO Global Business President and Group CFO Secretary ● Responsible for managing ● 28+
Slide 26: Financial Summary
Financial Summary
Slide 27: Consolidated Key Financial Highlights Q2FY25
Consolidated Key Financial Highlights Q2FY25 0 5 Revenue from Operations (INR Crores) EBITDA (INR Crores) PAT (INR Crores) 80 0 763 80 105 750 711 700 685 65 0 79 99 60 0 55 0 96 77 50 0 45 0 40 0 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 26 Privileged & Confidential, © 2024, Al
Slide 28: Consolidated Key Financial Highlights FY24
Consolidated Key Financial Highlights FY24 0 5 Revenue from Operations (INR Crores) EBITDA (INR Crores) PAT (INR Crores) CAGR: 17% 2,809 2,700 CAGR: 41% 361 CAGR: 65% 300 2,255 282 1,737 208 228 149 129 67 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 27 Privileged & Confidential, © 20
Slide 29: Return on Equity and Return on Capital Employed
Consolidated Key Financial Highlights FY24 0 5 Return on Equity % Return on Capital Employed % 34% 39% 37% 31% 35% 30% 24% 17% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 28 Privileged & Confidential, © 2024, All Rights Reserved. Note : Return on Equity = Net Profit After Tax/Total Equity; Return on Cap
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement 0 5 Particulars (Rs. Crores) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY TTM Revenue from Operations 711.3 762.7 -7% 685.4 4% 1,396.7 1,416.8 -1% 2,789.2 Cost of Goods Sold 523.1 588.8 505.5 1,028.5 1,106.1 2,065.3 Gross Profit 188.2 173.8 8% 180.0 5% 368.2 31
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet 0 5 INR Crores Equity & Liabilities (Rs. Crores) Sep-24 Mar-24 Assets (Rs. Crores) Sep-24 Mar-24 Total Equity 902.7 1,005.9 Non - Current Assets 587.8 586.1 Property Plant & Equipments 186.2 189.1 Share Capital 5.7 5.9 Capital Work In Progress 0.0 0.0 Reserves & Surplus 89
Slide 32: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement 0 5 INR Crores Consolidated Particulars (Rs. Crores) H1FY25 H1FY24 Net Profit Before Tax 208.6 180.0 Adjustments for: Non -Cash Items / Other Investment or Financial Items -3.3 -9.2 Operating profit before working capital changes 205.3 170.7 Changes in working capita
Slide 33: Annexures
Annexures
Slide 34: Annexures Particulars
Annexures 0 5 Particulars Standalone Financial Statements Exhaust Systems product portfolio Suspension Systems product portfolio Corporate Social Responsibility 33 Privileged & Confidential, © 2024, All Rights Reserved.
Slide 35: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement 0 5 Particulars (Rs. Crores) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY Revenue from Operations 711.3 762.7 -7% 685.4 4% 1,396.7 1,416.8 -1% Cost of Goods Sold 523.1 588.8 505.5 1,028.5 1,106.1 Gross Profit 188.2 173.8 8% 180.0 5% 368.2 310.6 19% Gross Profit M
Slide 36: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement 0 5 Equity & Liabilities (Rs. Crores) Sep-24 Mar-24 Assets (Rs. Crores) Sep-24 Mar-24 Total Equity 921.7 1,025.1 Non - Current Assets 606.7 605.3 Property Plant & Equipments 186.2 189.1 Share Capital 5.7 5.9 Capital Work In Progress 0.0 0.0 Reserves & Surplus 915.9
Slide 37: Standalone Cash Flow Statement
Standalone Cash Flow Statement 0 5 INR Crores Standalone Particulars (Rs. Crores) H1FY25 H1FY24 Net Profit Before Tax 208.3 178.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items -3.0 -8.0 Operating profit before working capital changes 205.3 170.7 Changes in working capital -1
Slide 38: Exhaust Systems
Exhaust Systems 0 5 Indian Market Share of ~30% for passenger vehicle segment Catering to most of the OEM’s in PV segment Serving PV, CV and Off-road segment. 3 stamping plants managing all critical stamping in house 2 tube mills producing stainless steel and aluminized steel Catering to Domestic &
Slide 39: Suspension Systems
Suspension Systems 0 5 Indian Market Share of ~10% in control arms for passenger vehicle segment Annual Production of ~1.8 lakh units Strategically located manufacturing facilities Concept, Design and Digitizing Development, Project planning & Testing & Validation Expertise in this arena with its wo
Slide 40: Corporate Social Responsibility
Corporate Social Responsibility 0 5 Tree Planting Stop Plastic Pollution Blood Donation Drive Sharda Motor believes in the preservation of the Installed plastic bottle shredding machine at Organized blood donation camps to help environment. Our team of volunteers contributed Jamshedpur district of J
Slide 41: Contact Us
Contact Us 0 5 Company Investor Relations Advisors CIN: L74899DL 1986PLC023202 CIN: U74140MH2010PTC204285 Mr. Puru Aggarwal Mr. Jigar Kavaiya / Mr. Pratik Shah President and Group CFO COO-IR Practice / Business Analysis 011-47334100 +91 9920602034 / +91 9870030585 puru.aggarwal@shardamotor.com jigar
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