Divgi Torqtransfer Systems Ltd. · NSE:DIVGIITTS
Divgi Torqtransfer Systems — Q3 FY2025 Earnings Presentation
35 slides from Divgi Torqtransfer Systems's earnings presentation, Feb 15, 2025
Slide 1: Cover letter 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/24-25/88 February 15, 2025 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroz
Slide 2: Investor Presentation Q3 & 9M FY25
Divgi TorqTransfer Systems Limited Investor Presentation Q3 & 9M FY25
Slide 3: Safe Harbor
Safe Harbor 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, recommendation or invitation to purchase or subscribe fo
Slide 4: Q3 FY25 Executive Summary
Q3 FY25 Executive Summary Depressed sales continued in Q3 FY25 • EV Transmission • Transfer Case Adverse effect alleviated somewhat by better price realization based on volume-based pricing in our contracts. BorgWarner agreement for technical, marketing and supply chain collaboration led to impact o
Slide 5: Key Business Updates
Key Business Updates What we achieved in Q3 FY25 Key updates from April’ Won Proprietary Powertrain Supplier of the year award 24 to Till Date • Agreement with BorgWarner for technical, marketing & supply chain collaboration • Signed MOU with one of the world’s largest transmission Tier 1s to do a f
Slide 6: Q3 & 9M FY25 Result Highlights
Q3 & 9M FY25 Result Highlights 5
Slide 7: Revenue Walk
Revenue-Walk Transfer Case E-Gear Drive Components Other Business Rs. In Crores +13% +46% -32% NexTrac Q3 121 18 36 ALH Q2 16 4 Synchro Q1 39 14 25 After Market 82 5 Tooling & Other Operating 24 6 42 11 12 28 -8% 10 7 27 8 39 29 11 25 7 1 6 9M FY24 9M FY25 9M FY24 9M FY25 4 9M FY24 9M FY25 3 4 • The
Slide 8: Result Snapshot 9M FY25
Result Snapshot 9M FY25 Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) -13.2% -19.0% -37.6% 203 54 31 • Total Income: Decline in volume 176 offtake in the core business and a 44 slowdown in the EV segment have 19 impacted overall total income. However, strong demand and
Slide 9: Result Snapshot Q3 FY25
Result Snapshot Q3 FY25 Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) -3.0% -18.3% 68 18 9 -33.2% 17 59 57 8 14 5 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY24 Q2 FY25 Q3 FY25 EBITDA (%) PAT (%) 28.0% 13.8% 13.2% 25.9% 23.6% 9.1% Q3 FY24 Q2 FY25 Q3 FY25 Q3 FY2
Slide 10: Adjusted Financial Snapshot
Adjusted Financial Snapshot As Reported Adjusted for like-to-like comparison Particulars (Rs. In Cr.) 9M FY25 9M FY24 Y-o-Y Particulars (Rs. In Cr.) 9M FY25 9M FY24 Y-o-Y Total Income 176.0 202.8 -13.2% Total Income 176.0 200.2 -12.1% EBITDA 44.0 54.4 -19.0% EBITDA 44.0 51.8 -14.9% EBITDA Margin (%)
Slide 11: Management Commentary
Management Commentary • 9M FY25: • Overall subdued demand due to multi macro factors. Fewer new models launch by OEMs on the back uncertainties with respect to adoption of new technologies • Update on our Business: • Transfer Case: Reduced offtake from our key OEMs, but improved realizations driven
Slide 12: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. In Cr.) Q3 FY25 Q3 FY24 Y-o-Y Q2 FY25 Q-o-Q 9M FY25 9M FY24 Y-o-Y Revenue From Operations 52.5 63.0 54.0 160.7 188.4 -15% Other Income 4.9 4.6 5.3 15.3 14.5 Total Income 57.5 67.7 -15% 59.2 -3% 176.0 202.8 -13% Raw Materials 19.6 28.4 21.6 64.7 78.9 Gross Pro
Slide 13: Way Forward
Way Forward Divgi-TTs 12
Slide 14: Near term Growth Outlook
Near term Growth Outlook EV Transmission* Export Business Core Product Portfolio* • We expect ramp up in • Further strengthening relationships with • Actively pursuing opportunities production with several Tier I suppliers by expanding the product with Japanese & Korean OEMs and models of one of Ind
Slide 15: Long Term Growth Outlook
Long Term Growth Outlook Core & Other Product EV Transmission* Export Business Portfolio* Product: Product: Manual Transmission Product: Components Business Transfer Case & BEV System & Components Synchronizers Export Next generation Business Globally Components Business transmission products (Hybri
Slide 16: Growth Strategy
Growth Strategy Application led Improve market share Geographic Customer diversification through and wallet share with diversification diversification new product offerings existing customers Next generation EV transmission transmission products • Will further strengthen our • Increase business with
Slide 17: Next generation transmission products update
Next generation transmission products update Automobile Industry Automobile Players DTTS Strategic Response & Intent • Integrated Infrastructure & assets to be a full- service transmission systems supplier • Challenges witnessed over the last 5 years: • Companies continuously working and • World cla
Slide 18: About Divgi
About Divgi Divgi-TTs 7
Slide 19: Company Overview
Company Overview 1964 60+ 4 Our Valued Customers Incorporated Years of Manufacturing experience facilities Vision To be recognized as a world-class Indian brand in automotive drivetrain components and systems Strategies Product Leadership Total Income* EBITDA* PAT* • Technology-Led Innovation • Cont
Slide 20: Journey so far
Journey so far 2023 - Listing 2018 • Awarded component 2024 business for supplies • Investment by Oman India Join to USA and Mexico Investment Firm II • Commercialisation of from 2022 BorgWarner • Shirwal Plant Developed 3 EV • Awarded the EV transmission transmission products 2016 2021 components •
Slide 21: Manufacturing Capabilities
Manufacturing Capabilities Year of Operations: 1996 Year of Operations: 1991 Product: Product: • Precision Grinding and • 4WD Transfer case Honing operations for transmission components Bhosari, Pune, Maharashtra Shivare, Pune Dist., Maharashtra Year of Operations: 1984 Year of Operations: 2023 Prod
Slide 22: Product Portfolio
Product Portfolio Automatic/Dual Clutch RWD Applications Manual Transmissions Synchronizers EV Transmission Key Components Transmissions Category / Product ICE (4WD/AWD) ICE (Manual) ICE (Automatic) Hybrid BEV Torque Transfer Systems - - - - Manual Transmission - - - - Synchronizer Systems - - Autom
Slide 23: Product Application
Product Application 4WD/AWD Products Manual Transmissions and Synchronizers Electric Vehicle Transmission Next generation transmission products (Hybrid/Automatic) Representative Images 22
Slide 24: Marquee Customers
Marquee Customers Few clientele… 30+ 50+ 50+ 10+ 10+ 10+ Years of Years of Years of Years of Years of Years of relationship relationship relationship relationship relationship relationship MT Components, EV transmission, Transfer case Transfer Cases & EV Transmission Transfer Cases, Engine Timing Tr
Slide 25: Presence across the world
Presence across the world Germany UK USA Mark John China Intl. Comm. Operations Portugal Korea Mexico Thailand India Nam Jun Kim President & Country Head, South Korea Emerge as one of the fastest growing drivetrain solution companies in the world As of FY24 24
Slide 26: Experienced Board Members
Experienced Board Members Our credible Board of Directors Praveen Kadle Chairman and Jitendra Divgi Managing Director Hirendra Divgi Executive Director Pradip Dubhashi Independent Director Independent Director Individuals of proven capability and integrity Bringing diverse competencies to the table
Slide 27: Strong Leadership Team
Strong Leadership Team Zubair Kachi Deepak Vani Prasanna Deshpande Chief Operating Officer & Nilesh Shukla Mktg., Sales & ABD Engineering & Product Mfg Engineering & Purchase Development Advanced Tech. Jitendra Divgi Managing Director Gopal Dalvi Mark John Nam Jun Kim Pulak Das Sudhir Mirjankar Huma
Slide 28: Financials
Financials I? Divgi-TTs 27
Slide 29: P&L – Historical Chart
P&L – Historical Chart Total Income (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) 279 273 82 51 242 74 73 46 60 38 40 195 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (%) PAT (%) 31.0% 30.5% 29.5% 19.6% 19.1% 18.4% 26.6% 14.6% FY21 FY22 FY23 FY24 FY21 FY22 FY23
Slide 30: Financial Ratios
Financial Ratios Fixed Assets Turnover Ratio (x) Working Capital (No. of Days) 1.39 1.30 1.16 62 days 66 days 69 days 87 days 0.97 98 84 85 FY21 FY22 FY23 FY24 76 61 62 60 Leverage ratios (x) & Net Debt (Rs. In Cr.) 58 49 46 44 (75.7) (117.9) (133.1) (262.7) (225.1) 42 0.2 FY21 FY22 FY23 FY24 0.0 0.
Slide 31: Capex and Cash
Capex and Cash Return on Capital Employed (RoCE %)* Capital Expenditure and Cash Reserves 17.5% 18.0% IPO proceeds capex – 169.60 Cash Reserves Capex crores of which ~47.82 crores 12.4% already deployed 9.3% 311 264 FY21 FY22 FY23 FY24 173 159 Return on Invested Capital (RoIC %) 32.4% 33.4% 78 68 25
Slide 32: Historical P&L Statement
Historical P&L Statement Particulars (Rs. In Cr.) FY24 FY23 FY22 FY21 Revenue From Operations 253.4 271.0 233.8 186.6 Other Income 19.6 7.6 8.1 8.5 Total Income 273.0 278.7 241.9 195.1 Raw Materials 106.2 111.4 93.6 67.0 Gross Profit 166.8 167.3 148.2 128.1 Employee Benefit Expenses 24.1 24.5 22.5 2
Slide 33: Balance Sheet
Balance Sheet Particulars (Rs. In Cr.) FY24 FY23 Particulars (Rs In Cr.) FY24 FY23 Assets Equity & Liabilities Non-Current Assets Total Equity Property, plant and equipment 211.7 111.1 Equity Share Capital 15.3 15.3 Capital work-in-progress 25.4 80.9 Other Equity 565.1 536.0 Right-of-use assets 1.5
Slide 34: Cashflow
Cashflow Particulars (Rs. In Cr.) FY24 FY23 Profit Before Tax 53.5 68.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.0 6.3 Operating profit before working capital changes 53.5 75.2 Changes in working capital 6.7 (16.9) Cash generated from Operations 46.8 58.2 Direct taxes
Slide 35: Thank You
Thank You PRODUCT LEADERSHIP Company: Investor Relations Advisors: LIKE NO OTHER CIN: L32201MH1964PLC013085 CIN: U74140MH2010PTC204285 Ms. Sanika Nirgude Ms. Neha Shroff / Mr. Mayur Pednekar companysecretary@divgi-tts.com neha.shroff@sgapl.net / mayur.pednekar@sgapl.net +91 89566 65262 +91 77380 734
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