Jk Tyre & Industries Limited · NSE:JKTYRE
Jk Tyre & Industries — Q1 FY2022 Earnings Presentation
34 slides from Jk Tyre & Industries's earnings presentation, Aug 7, 2021
Slide 1: Exchange covering letter for Earnings Presentation Q1 FY2022
IlQtYFte & INDUSTR'ES LTD, JKTIL:SECTL:SE:2021 Date: 7tn August 2021 BSE Ltd. I National Stock Exchange of lndia Ltd. Phiroze Jeejeebhoy Towers, I Exchange Plaza, C -1, Block G, Dalal Street, I Bandra -Kurla Complex, Mumbai-400 001. I Bandra (E), Mumbai -400 051. Through: BSE Listing Centre lThrough
Slide 2: Sustainability in Mobility - Earnings Presentation Q1 FY2022
SUSTAINABILITY IN MOBILITY EARNINGS PRESENTATION Q1 FY2022
Slide 3: Agenda
1 Business Overview 2 Q1FY22 Performance Review 3 FY2021 Annual Performance Highlights 4 Growth Strategy 5 Sustainability 1
Slide 4: JK Tyre at a Glance
JK Tyre at a Glance Innovation at JK Tyre 40+ 25th Years of experience in tyre Ranked top tyre company Pioneer of radial technology in India and No. 1 in Truck/Bus manufacturing in the world Radial (TBR) manufacturer State-of-the-art Centralized Tech Centre at Mysore – “Raghupati Singhania Centr
Slide 5: Global Manufacturing Platforms
Global Manufacturing Platforms India 12 Manufacturing Facilities with Annual Production Capacity of 5,75,000 Metric Tonnes (~32 million tyres) Laksar, Uttarakhand – 3 Installed Capacity Utilization Kankroli, Rajasthan – 1 (MT) Q1FY22 Consolidated 5,75,000 80%+ Banmore, Madhya Pradesh – 1 Annual Capa
Slide 6: Digital Marketing Initiatives
Digital Marketing Initiatives Social Media Content Marketing Google My Business 1 Consistent Social Media Presence 2 Content Oriented Digital Marketing No.1 Tyre Brand at Social Tyre Industry Highest no. of 600+ Brand Shops listed at Media in terms of Followers views at YouTube 77Mn+ Google My Busin
Slide 7: Extensive Distribution Network
Extensive Distribution Network Extensive Distribution Network India Distribution Network 6,000+ Dealers 500 Distributors 58 JK Tyres 421 JK Tyre 205 Xpress 45 JK Re-tread Tie up with 870 Fleet Operators Truck Wheels Steel Wheels Wheels centres Tie up with 3 Oil Marketing Companies Fully equi
Slide 8: Leadership Team
Leadership Team Dr. Raghupati Singhania Chairman & Managing Director Anshuman Singhania Arun K. Bajoria A. K. Kinra Sanjeev Aggarwal V. K. Misra Pravin Chaudhari Managing Director Director & President Financial Advisor CFO Technical Director ED – JK TORNEL Dr. R. Mukhopadhyay A. K. Makkar Srinivasu
Slide 9: Strong R&D Capabilities
Strong R&D Capabilities Technology – Global Tech Centre (RPSCOE): • Centralized Tech Center in Mysore, Karnataka with more than 200 R&D and Technology Scientist and Engineers in following facilities: HASETRI - Asia's first and India’s foremost highly versatile and State-of-the-art Tyre / Elastomer I
Slide 10: Innovative Products Gaining Traction
Innovative Products Gaining Traction TBR - JUH XF & JDH XF PCR – Levitas (UHP) PCR – Taximax – 1Lac km. tyre Fuel Saver Technology Design Short Braking Distance Very High Mileage & Durability Low RRC & Low Noise High cornering stability Superior Grip & Braking High Mileage Better Tra
Slide 11: Product Portfolio Differentiation
Product Portfolio Differentiation Smart Tyres Green Tyres Recently acquired smart tyre technology start-up to revolutionize “Green tyre" technology increases fuel efficiency thereby conserving Indian tyre market – First in India to launch Tyre Pressure natural resources Monitoring System (TPMS) base
Slide 12: Key Customers
Key Customers Passenger Car Tractor Truck & Bus OTR 2 Wheeler 2 Wheeler – Electric 10
Slide 13: Strengthening OEM Presence
Strengthening OEM Presence Hyundai Alcazar & TVS Apache added to the OEM Portfolio in Q1FY22 HYUNDAI CRETA, MARUTI SUZUKI SWIFT ALCAZAR & KIA SELTOS DZIRE, SWIFT, WAGONR TVS APACHE Force Traveler TATA INTRA TATA GOLD 11
Slide 14: Key Marketing Initiatives
Key Marketing Initiatives Ranger Re-targeting Campaign Zindagi Ke Pahiye - Youtube Campaign (Hits of over 24 Million) (Record hits of over 80 Million – Highest in Tyre Industry) Awarded Best Marketing Campaign of the year Awarded Digital Campaign of the year by Global Digital Marketing 12
Slide 15: Revenue Segmentation: End User Market
Revenue Segmentation : End User Market Revenue Mix by Market – Q1FY22 Exports 21% Exports 28% India Operations Replacement Consolidated Replacement OEMs 54% 58% 21% OEMs 19% Revenue Mix by Product Line – Q1FY22 Others Others 17% 16% 2/3 Wheelers 5% 2/3 Wheelers 5% India Operations Consolidated Truck
Slide 16: Agenda
1 Business Overview 2 Q1FY22 Performance Review 3 FY2021 Annual Performance Highlights 4 Growth Strategy 5 Sustainability 14
Slide 17: Q1 FY2022 Performance Highlights (Consolidated)
Q1 FY2022 Performance Highlights (Consolidated) Resilient performance in adversities - Q1FY2022 Consolidated Operations 2,618 476 289 Multifold 2.3x 3.5x Increase Revenues (incl. exports) Exports from India EBIDTA (Rs. Crore) (Rs. Crore) (Rs. Crore) 11.1% 182 44 Multifold Multifold Increase Increase
Slide 18: Resilient Performance despite pandemic – Q1FY22
Resilient Performance despite pandemic – Q1FY22 Consolidated Standalone (Rs. Crore) Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Turnover 2,618 1,138 2,945 1734 800 2,037 EBITDA 289 4 472 188 31 316 Margin 11.1% 0.3% 16.0% 10.9% 3.9% 15.5% PBDT (Cash Profit) 182 (93) 367 130 (49) 259 PBT 75 (257)
Slide 19: Q1 FY2022 Performance Highlights
Q1 FY2022 Performance Highlights “JK Tyre delivers strong performance in adversities” High Capacity Utilization Capacity utilization during the quarter was more than 80% in Q1FY22, inspite of 2nd wave of the pandemic and lockdowns. All plants continues to deliver good performance, maintaining safe
Slide 20: Business Highlights in Q1FY22
Business Highlights in Q1FY22 Expanding and Strengthening OEM Relationships and Replacement Market Presence JK Tyre further strengthens its OEM partnership with Hyundai Motor India for Alcazar to supply UX Royale UX Royale High Performance Tyre which offers best-in-class technology, unmatchable perf
Slide 21: Agenda
1 Business Overview 2 Q1FY22 Performance Review 3 FY2021 Annual Performance Highlights 4 Growth Strategy 5 Sustainability 19
Slide 22: FY2021 in Review – Key Financials Highlights
FY2021 in Review – Key Financials Highlights Strong Operational and Financial Performance in FY21 Rs.929 Cr (-17%) Net Debt Reduction Rs.884 Cr (+89%) Higher Cash Accruals Rs.1,349 Cr (+33%) Deleveraging Balance Sheet – Rs.9,145 Cr (+5%) EBIDTA and Growth Reduction in Robust Cash borrowings through
Slide 23: Robust Performance delivered in adversities
Robust Performance delivered in adversities Annual EBDITA up 33% & PAT up 134% EPS 2X to Rs. 12.97 from Rs. 6.12 Swiftly Responding to Covid-19 Crisis • Prioritized safety of employees, refined risk mitigation plan, re-visited systems and processes, increased communication with customers and channel
Slide 24: FY2021 Financial Performance
FY2021 Financial Performance Consolidated Financial Performance Standalone Financial Performance Y-o-Y Y-o-Y (Rs. Crore) FY2021 FY2020 FY2021 FY2020 Growth (%) Growth (%) Turnover 9,145 8,753 5% 6,170 6,120 1% EBITDA 1,349 1016 33% 887 678 31% Margin 14.8% 11.6% 320 bps 14.4% 11.1% 330 bps PBDT (Cas
Slide 25: Agenda
1 Business Overview 2 Q1FY22 Performance Highlights 3 FY2021 Annual Performance Review 4 Growth Strategy 5 Sustainability 23
Slide 26: Strategic Priorities
Strategic Priorities Management remains fully committed to implement its strategy to further expand its market presence and gain market share Strengthen Product Market Position Increase Global Deleverage Maximizing Portfolio across Business Balance Sheet Benefits of CIL Premiumization Segments Share
Slide 27: Agenda
1 Business Overview 2 Q1FY22 Performance Review 3 FY2021 Annual Performance Highlights 4 Growth Strategy 5 Sustainability 25
Slide 28: Sustainability at JK Tyre
Sustainability at JK Tyre We strengthened our ESG initiatives around 5P’s sustainability platform Productivity (Resource Conservation) People Peace & (Safety & Partnership Wellbeing) 5Ps Sustainability* Poverty Protect (Standard of (Environment) living) * Conceptualized by JK Tyre 26
Slide 29: Sustainability Initiatives at JK Tyre
Sustainability Initiatives at JK Tyre Sustainability initiatives & practices leading to resource conservation and manufacturing excellence Research & Usage of Bio sourced materials Development Led Higher usage of recycled material Product Continuous improvement in RRC ( Rolling Resistance Coef
Slide 30: Sustainability – Environment
Sustainability – Environment Safety – Reportable Incident (Nos.) Energy Consumption (GJ / Tonne) 27 22 17 11.24 10.70 10.26 10.36 6 9.50 4 2016-17 2017-18 2018-19 2019-20 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 All Plants awarded with “Sword of Honour” by British World’s Lowest energy consum
Slide 31: Sustainability – Operational Efficiencies
Sustainability – Operational Efficiencies Specific Power Consumption – Kwh / Kg Recognitions to our efforts 0.937 0.894 0.874 “Asian Manufacturing Leadership Award for 0.863 0.810 Best in class Green Manufacturing” 2016-17 2017-18 2018-19 2019-20 2020-21 Reducing Power Consumption trend every year “
Slide 32: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) Livelihood More than 1 lac people benefitted through our projects, viz., skill building, SHGs, agricultural & livestock Enhancement development etc. Adult literacy programs in remote villages (over 50,000 beneficiaries), Mysuru prisoners (over 6,000), Education
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by JK Tyre & Industries Limited (the “Company” or “JK Tyres”) solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distr
Slide 34: JK Tyre & Industries Ltd. contact details
MkOrvreE= TOTAL CONTROL JK TYRE & INDUSTRIES LTD. HEAD OFFICE 3, Bahadur Shah Zafar Marg, New Delhi - 110 002 T: +91-11-66001112 © F: +91-11-23322059 REGISTERED OFFICE AND WORKS Jaykaygram, PO-Tyre Factory Kankroli - 313 342, Rajasthan T: 02952-302400/330011 « F: 02952-232018 CIN:L67120RJ1951PLC0459
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