Talbros Automotive Components Limited · NSE:TALBROAUTO
Talbros Automotive Components — Investor Day (April 2023)
32 slides from Talbros Automotive Components's investor day presentation, April 2023
Slide 1: Investor & Analyst Meet
Investor & Analyst Meet April 2023
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Talbros Automotive Components Limited (the “Company ”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscrib
Slide 3: Talbros 2.0: One of the Most Hedged Auto Component Players
Talbros 2.0 Over 6 Decades of experience in Auto Component manufacturing Diversified Auto Component Player Across Two Wheelers, PVs, CVs Off-Highway and Farm Equipments One of the Electric Vehicles – Supply to EV’s (Major OEM’s globally) Most Hedged Diversified Product Portfolio – Gasket & Heat Shie
Slide 4: Financial Overview (At Group Level)
Financial Overview (At Group Level) FY18 FY20 FY23e % of Sales GP % % of Sales GP % % of Sales GP % Gasket & Heat Shield 43% 293 44% 39% 265 45% 42% 423 43% Forgings 17% 115 45% 19% 134 52% 22% 215 52% Marelli Talbros Chassis 16% 109 37% 20% 137 37% 20% 210 35% Systems* (MTCS) Talbros Marugo Rubber*
Slide 5: Strong Board of Directors
Strong Board of Directors Mr. Naresh Talwar Mr. Umesh Talwar Mr. Varun Talwar Mr. Anuj Talwar Mr. Navin Juneja Mr. Vidur Talwar Chairman Vice Chairman & MD Joint Managing Joint Managing Director & Group CFO Non-Executive Director Director Director Mr. Deepak Jain Mr Anil Kumar Mehra Mr. Amit Burman
Slide 6: Led by Focused Product wise Business Heads
Led by Focused Product wise Business Heads Senior Management Team Business Heads Mr. Anuj Talwar Joint Managing Director Mr. Suresh Mr. Rajiv Verma Mr. Vivek Singh Mr. Ashish Gupta Sharma Business Head - President – CEO - MTCS President – TMR Forgings Business Gasket & Heat Shield Business Mr. Navin
Slide 7: Gasket & Heat Shield Business
GASKET & HEAT SHIELD BUSINESS Presented by Mr. Suresh Sharma President – Gasket & Heat Shield Business
Slide 8: Gasket & Heat Shield Business - Snapshot
Gasket & Heat Shield Business - Snapshot 90 1 Revenue from Gasket Business Increased Revenues from Heat Shield Business (~Rs. 90 crores p.a. from the 20 Heat Shield Business) 0 GP% 44% 43% FY18 FY23e FY27e +13% 700 10% 17% 2 22% +8% Increased Focus on Exports 90% 83% 78% 423 (From 10% in FY18 to ~22
Slide 9: Gasket & Heat Shield Business - Large Order Book
Gasket & Heat Shield Business - Snapshot 4 Large Order Book for New Products Kia & Hyundai Heat Kamaz –Gasket with MSIL – Heat Shields Cummins – Beagle CHG Shields Electrical Controls Rs. 14 Crs. p.a. Rs. 11 Crs. p.a. Rs. 13.5 Crs. p.a. Rs. 12 Crs. p.a. Kawasaki Motors USA- Ashok Leyland – Escort Ku
Slide 10: Way Ahead – Gasket & Heat Shield Business
Way Ahead – Gasket & Heat Shield Business Expanding into New Generation Non Automotive EV Business new geographies Heat Shields Segment Gaskets – Battery Russia Additional line for Casing, Convertor HCV / LCV Segment Nimbus Heat and Controller units Gaskets - Power Shields Generation, MSIL, Hyundai,
Slide 11: Forgings Business
FORGINGS BUSINESS Presented by Mr. Vivek Singh President – Forgings Business
Slide 12: Forgings Business - Snapshot
Forgings Business - Snapshot 70 1 +60% Revenue from Forgings Business Increased Focus On EV’s (Revenue of 20 Rs. ~70 Crs. in FY27e with CAGR of 60%) 1 GP% 45% 52% FY18 FY23e FY27e +23% 500 2 47% 51% 63% Increased Focus on Exports and +13% expanding geographies 53% 49% 37% (From 47% in FY18 to ~63% i
Slide 13: Forgings Business - Large Order Book
Forgings Business - Snapshot 4 Large Order Book for New Products JCB UK – Dump End/ Eye Meritor (North America) Sona Comstar – Gear TATA Motors – Front Hub End – End Yokes Blanks Rs. 20 Crs. p.a. Rs. 75 Crs. p.a. Rs. 50 Crs. p.a. Rs. 19 Crs. p.a. BMW Car (Germany) – Dana Italy – Ring Gears SIAP Ital
Slide 14: Way Ahead – Forgings Business
Way Ahead – Forgings Business Focus on New Plant & Technology Product Focus Market Focus Equipment Advancement Building capabilities on Adding heavy weight Entry into new Adding up Forging Ring Rolling and parts from existing 15 geography – North equipment's in existing material Gathering Kgs. upto
Slide 15: Marelli Talbros Chassis Systems (MTCS)
Marelli Talbros Chassis Systems (MTCS) Presented by Mr. Ashish Gupta CEO - MTCS
Slide 16: MTCS - Snapshot
Marelli Talbros Chassis Systems (MTCS) - Snapshot Exports Domestic Revenue from MTCS Business 1 2% 15% Increased Focus on Exports 36% (From 2% in FY18 to ~36% in FY27e) 98% 85% 64% GP% 37% 35% FY18 FY23e FY27e +35% 700 2 +131% 191 +14% Increased Focus On EV’s (Revenue of Rs. ~191 Crs. in FY27e with
Slide 17: MTCS - Large Order Book
Marelli Talbros Chassis Systems (MTCS) - Snapshot 4 Large Order Book for New Products TATA – NG EV 04 Cradle TATA – NG 04 Lower MSIL – Y8 Upper and MSIL – NG ED Lower Assembly Control Arm Assembly Lower Link Assembly Control Assembly Rs. 34 Crs. p.a. Rs. 32 Crs. p.a. Rs. 26 Crs. p.a. Rs. 24 Crs. p.a
Slide 18: Way Ahead - MTCS
Way Ahead - Marelli Talbros Chassis Systems (MTCS) Expanding Product Increasing Covering Growth in Existing Portfolio Customer Base Additional Segment Markets Enter into large Exports to Marelli for its Expand manufacturing Continue to grow and Suspension products - RTB VA/VE & Insourcing footprint
Slide 19: Talbros Marugo Rubber (TMR)
Talbros Marugo Rubber (TMR) Presented by Mr. Rajiv Verma Business Head - TMR
Slide 20: TMR - Snapshot
Talbros Marugo Rubber (TMR) - Snapshot Revenue from TMR Business 1 Increased Focus On Biofuel Hoses (E-20 compliant fuel filler, breather and purge hose) GP% 45% 38% +22% 180 +65% 60 +15% 8 82 0 FY18 FY23e FY27e 41 FY18 FY23e FY27e +500 bps 2 Improving EBITDA Margin Profile (From 8% in FY18 to ~13%
Slide 21: TMR - Large Order Book
Talbros Marugo Rubber (TMR) - Snapshot 3 Large Order Book for New Products MSIL –FKM /ECO Fuel Hose MSIL- FKM/ECO Breather Hose MSIL- FKM/ECO Purge Hose Rs. 29 Crs. p.a. Rs. 8 Crs. p.a. Rs. 13 Crs. p.a. MSIL - Air Hose MSIL- Trailing and Leading arm MSIL – Body Mounting Rs. 6 Crs. p.a. bushing Rs. 6
Slide 22: Way Ahead - TMR
Way Ahead - Talbros Marugo Rubber (TMR) Expanding Expanding product Growth in existing Increasing Capacities portfolio Segment Customer Base Covered area planned Suspension arm bushing and body Targeting other OEM’s to increase from Engine mounting and mountings ,Mounting Such as Tata Motors, 50,000
Slide 23: Nippon Leakless Talbros (NLT)
Nippon Leakless Talbros (NLT) Presented by Mr. Sushant Sindwani Marketing Head - TACL
Slide 24: NLT - Snapshot
Nippon Leakless Talbros (NLT) - Snapshot Revenue from NLT Business +500 bps 1 GP% 33% 40% High Margin Business (From 20% in FY18 to ~25% in FY27e) 25% 118 -6% +9% 120 20% 22% 86 FY18 FY23e FY27e 2 Strong Clientele FY18 FY23e FY27e 9% CAGR over the next 4 years NLT – Gasket Manufacturer for 2 Wheeler
Slide 25: Talbros 2.0 – The Way Forward
TALBROS 2.0 – THE WAY FORWARD Mr. Anuj Talwar Mr. Navin Juneja Joint Managing Director Director & Group CFO
Slide 26: Capex Plans - TACL
Capex Plans - TACL Utilization Levels Addl. Capex to reach (FY23e) Revenues of FY27e Gasket & Heat Shield 85% Rs. 50 Crores To be funded by Internal Accruals Capex of Rs. 25-30 Crs. Forgings 77% Rs. 60 Crores per annum Marelli Talbros Chassis Systems* 73% Rs. 80 Crores (MTCS) These amounts will be f
Slide 27: Increased Focus on Electric Vehicles (EVs)
Increased Focus on Electric Vehicles (EVs) Revenue Breakup (FY23e) Revenue Breakup (FY27e) 7.0% 4.0% 11.0% 18.0% 15.0% 13.0% 5.0% 6.0% 38.0% 15.0% 15.0% 39.0% 2.0% 12.0% 2 & 3 Wheeler Passenger Vehicle EVs MHCV LCV Agri & Off Highway Others 27
Slide 28: Talbros 2.0 (At Group Level)
Talbros 2.0 (At Group Level) Revenue (FY23e) Growth (CAGR) Revenue (FY27e) % of Sales % of Sales Gasket & Heat Shield 42% 423 13% 32% 700 Forgings 22% 215 23% 23% 500 Marelli Talbros Chassis Rs. 1,016 Rs. 2,200 20% 210 35% 32% 700 Systems* (MTCS) crores crores Talbros Marugo Rubber** (TMR) 8% 82 22%
Slide 29: Talbros 2.0 (At Actuals as per Economic Interest)
Talbros 2.0 (At Actuals as per Economic Interest) Revenue (FY23e) Growth (CAGR) Revenue (FY27e) % of Sales % of Sales Gasket & Heat Shield 51% 423 13% 41% 700 Forgings 26% 215 23% 30% 500 Marelli Talbros Chassis Rs. 818 Rs. 1,688 13% 105 35% 21% 350 Systems* (MTCS) crores crores Talbros Marugo Rubbe
Slide 30: Talbros 2.0 – The Way Forward
Talbros 2.0 – The Way Forward Increased Export Increased Comfortable Debt Higher Returns Sales Margins Profile 25% in FY23e EBITDA Margins Total Debt to to increase from RoCE to increase to remain under ~14% to to 20% + going 35% + in ~15-16% by Rs. 100 ahead FY27e crores FY27e D R I V I N G F U T U
Slide 31: Financial Snapshot - Historical
Financial Snapshot - Historical Particulars (Rs. In crores) 9M FY23 FY22 FY21 FY20 Total Revenue from Operation 476.5 584.9 453.2 391.0 EBITDA 66.7 83.2 64.6 43.1 EBITDA Margin 14.0% 14.2% 14.3% 11.0% EBIT 48.8 60.3 41.7 23.9 Share of Profits from JVs 8.3 7.8 5.5 7.9 Profit before Tax 48.9 56.4 51.8
Slide 32: Thank You!
THANK YOU ! For further information, please contact: Company : Investor Relations Advisors : Talbros Automotive Components Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L29199HR1956PLC033107 CIN: U74140MH2010PTC204285 Ms. Seema Narang Mr. Deven Dhruva/ Ms. Hinal Kothari seema_narang@talbros.com deve
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