Greaves Cotton Limited · NSE:GREAVESCOT
Greaves Cotton — Q1 FY2024 Earnings Presentation
28 slides from Greaves Cotton's earnings presentation, Aug 10, 2023
Slide 1: Cover letter to stock exchanges
10th August, 2023 The Manager - Listing The Manager - Listing BSE Limited National Stock Exchange of India Limited BSE Code - 501455 NSE Code - GREAVESCOT Dear Sir/Madam, Sub: Analysts/Investor Presentation In furtherance to our letter dated 01st August, 2023, please find enclosed presentation to be
Slide 2: Navigating Towards a Greener Future: Q1 FY2024 Earnings Presentation
NAVIGATING TOWARDS A GREENER FUTURE Building an Integrated and Sustainable Mobility Ecosystem Q1 FY2024 Earnings Presentation Aug 10, 2023 1
Slide 3: Q1 FY24 Financial Highlights
Q1 FY24 Financial Highlights Company reported consolidated revenue of Rs. 569 crore for Q1FY24 Q1 FY24 highlights GCL+ GCL • GCL + Excel revenue at Rs. 435 Cr, up by 16 % y-o-y Excel Revenue Revenue Rs. 396 Cr Rs. 435 Cr • Greaves Engines + Excel revenue growth of 18% • Greaves Retail revenue growth
Slide 4: Greaves Cotton: Democratising Sustainable Mobility
Greaves Cotton: Democratising Sustainable Mobility Dr. Arup Basu – MD Mr. Sanjay Behl – ED & CEO Mr. Narasimha Jayakumar - CEO • Fuel-agnostic IC Engines, Gensets and Spares and Service E2W and E3W vehicles Powertrain Components Franchise Multi Brand EV Outlets • Powertrain Accessories (Push-Pull Ca
Slide 5: Management Commentary
Management Commentary • The integration of Greaves Cotton Limited and Excel Controlinkage has proven to be pivotal, showcasing robust growth and fostering optimism for sustained momentum. This integration has unlocked fresh opportunities for synergies and expanded capabilities, paving the way for a
Slide 6: Diversification Strategy Positively Contributing to the Business
Diversification Strategy Positively Contributing to the Business Growth Regulatory pressures impacted EV revenues in Q1 FY24 621 660 699 514 827 229 374 486 569 383 237 281 318 141 127 181 90 379 374 374 365 437 396 4 284 302 22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Rs. in crores G
Slide 7: Financial Snapshot
Financial Snapshot Particulars (Consolidated) Q1 Growth (%) Q4 Growth (%) Full Year Growth (%) (Rs. Cr.) FY24 FY23 Y-o-Y FY23 Q-o-Q FY23 FY22 Y-o-Y Income from Operations 569 660 (14%) 827 (31%) 2,699 1,710 58% RMC (%) 70.8% 73.8% 74.4% 73.8% 74.4% Employee Cost 72 46 63 213 170 Other Expenses 108 8
Slide 8: Business Division Disclosures
Business Division Disclosures Greaves Engines + Q1 (%) Q4 (%) Excel (Rs. Cr.) FY24 FY23 Y-o-Y FY23 Q-o-Q Revenues 296 251 18% 296 - EBITDA 32 8 318% 23 41% EBITDA Margin (%) 11% 3% 8% Greaves Retail Q1 (%) Q4 (%) (Rs. Cr.) FY24 FY23 Y-o-Y FY23 Q-o-Q Revenues 139 122 13% 140 (1%) EBITDA 27 20 35% 29
Slide 9: Consolidated Leverage Profile
Consolidated Leverage Profile Consolidated (Rs. Cr.) Jun - 22 Mar - 23 Jun - 23 Standalone (Rs. Cr.) Jun - 22 Mar - 23 Jun - 23 Cash & Cash Equivalent 1,600 1,145 792 Cash & Cash Equivalent 447 529 307 Short Term Debt 202 3 9 Short Term Debt NIL NIL NIL Long Term Debt 50 NIL 44 Long Term Debt NIL NI
Slide 10: Segment Volumes
Segment Volumes Growth Growth Growth Q1 Q4 Full Year Volumes (Units) (%) (%) (%) FY24 FY23 Y-o-Y FY23 Q-o-Q FY23 FY22 Y-o-Y Engines Auto 16,169 16,112 0.4% 20,147 (20%) 70,793 41,302 71% Non-Auto 11,239 10,110 11% 13,579 (17%) 41,837 39,370 6% Engines* 27,408 26,222 5% 33,726 (19%) 112,630 80,672 40
Slide 11: Quarterly Business Updates
Quarterly Business Updates Q1 FY24 INVESTOR’S PRESENTATION 10
Slide 12: Quarterly Business Updates
Quarterly Business Updates • Product mix enrichment • Crossed 2 lakh customer • Expanded distribution • Launched own operations milestone. network for Greaves Spares brand, “evfin” • Pricing corrections in North and Eastern India • E2W Portfolio certified for • Launched direct operations in • Applic
Slide 13: Successful Business Acquisition: Excel Controlinkage (1/2)
Successful Business Acquisition: Excel Controlinkage (1/2) Integration and synergy benefits with GCL will positively impact capacity, profitability, portfolio and scale • Business on a high-growth, high- profitability trajectory: Focus on bespoke solutions for customers • Large market opportunity to
Slide 14: Successful Business Acquisition: MLR (2/2)
Successful Business Acquisition: MLR (2/2) Overview and Synergy Benefits MLR Auto • Helped forward integrate into last mile mobility Acquired 51% Stake into a 4,00,000 unit per annum market (May 2023) • Provided entry into the fast-growing Electric 3- wheeler market with the existing product • The i
Slide 15: Greaves – Transformation Journey
Greaves – Transformation Journey Q1 FY24 INVESTOR’S PRESENTATION 14
Slide 16: Empowering Efficient and Sustainable Last Mile Mobility
Empowering Efficient and Sustainable Last Mile Mobility Organised UnOrganised Closer to B2B + B2C sector sector customers Photo Photo • Applications in multiple • 100% focused on EV • E2E tech services providing • Over 3-decades of last mile • India’s leading EV multi- financing sectors: automotive,
Slide 17: Comprehensive Last Mile Ecosystem
Comprehensive Last Mile Ecosystem Engine vertical integration: Engineering Gensets and 3 Wheelers Engines, Gensets and Components Engineering integration: Electric Powertrains and Electric Powertrain Agri Engines Gensets Mobility Cables and Sensors E2W and E3W 8000+ Service and spares: Aftermarket R
Slide 18: Greaves Engineering: Bespoke fuel-agnostic solutions
Greaves Engineering: Bespoke fuel-agnostic solutions represent current and future profit pools Customer-Centricity at the Core Applications Mobility Industrial Infrastructure Fuels Solutions Single Cylinder Multi Cylinder Components Gensets ePowertrain Engines Engines Cables; Steering & Transmission
Slide 19: Greaves Electric Mobility
Greaves Electric Mobility Existing E2Ws Upcoming E2Ws April 2023 2 Wheelers NXG Magnus EX ZEAL Ex Primus High Speed City Speed City Speed High Speed Electric Cargo Electric Passenger Other Fuel Types Upcoming E3Ws 3 Wheelers Designed, Developed, Engineered – MADE IN INDIA Q1 FY24 INVESTOR’S PRESENTA
Slide 20: Greaves Retail: Asset-light Business Spanning E3W and SCV
Greaves Retail: Asset-light Business Spanning E3W and Small Commercial Vehicle (SCV) Full Lifecycle (sales, service, spares) High asset uptime Multi-brand spares Value added services Pan India network reach (Insurance, RSA) (sales, spares, service) Lower TCO Vehicle financing 3rd party charging 9000
Slide 21: Greaves Finance and Greaves Technologies
Greaves Finance and Greaves Technologies • 100% focused on EV financing. • Strong global presence providing local and off-shore expertise • Digital first consumer journey. • Offices in India and US, catering to global customers across • Introduces "evfin", an innovative platform for electric vehicle
Slide 22: Greaves Cotton - Story of Transformation & Success
Greaves Cotton - Story of Transformation & Success Balanced Portfolio of B2B and B2C Business Customer Segment Legacy Segments New Segments 3W Diesel Engine CNG Engine 2W Motor Non-Auto / Institutiona Motor Diesel Engine Spares l Bus/Trucks Energy Management EV Spares Fuel Agnostic Spares Off-Highwa
Slide 23: Robust Manufacturing Capabilities & Reach
Robust Manufacturing Capabilities & Reach Greaves Manufacturing Footprint Transition Strong Presence 163+ Years of Legacy E-Rick mfg. at Greater Noida 25 Countries Presence 20,000 Mechanic Network Aurangabad Engine Manufacturing 9000+ Retail Network Hyderabad 3W auto & E-cargo manufacturing 7 Region
Slide 24: ESG - Commitment
ESG - Commitment • The Company’s commitment towards the environment is reflected in all aspects of functioning, including manufacturing processes and technological innovations. It has been certified as an ISO 14001:2015 • The Company reached another milestone in Going Green with the inauguration of
Slide 25: Awards and Recognition
Awards and Recognition Third year in a row April 2023 Q1 FY24 INVESTOR’S PRESENTATION 24
Slide 26: Awards and Recognition
Awards and Recognition The Best Electric Vehicle Electric Vehicle Manufacturer Marketing Campaign – Ampere & -May’23 RCB campaign – May’23 Q1 FY24 INVESTOR’S PRESENTATION 25
Slide 27: Disclaimer
Disclaimer This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Greaves Cotton (“Greaves” or the Company) future business developments an
Slide 28: Thank You
SOUND FUNDAMENTALS| STABLE CASHFLOW | AGILE STRUCTURE GROWING BRANDS | GROWING RETAIL FOOTPRINT | GROWING CUSTOMER BASE MOBILITY SOLUTIONS | MOVING PEOPLE | MOVING CARGO THANK YOU REGISTERED OFFICE For further information, please contact Varghese M Thomas Anvita Raghuram / Bhushan Greaves Cotton Lim