Ifb Industries Ltd · NSE:IFBIND
Ifb Industries — Q1 FY2023-24 Earnings Presentation
45 slides from Ifb Industries's earnings presentation, Aug 4, 2023
Slide 1: Q1 Financial Report, Quarter Ended 30th June 2023
RITESH Digitally signed by RITESH AGARWAL DN: c=IN, st=West Bengal, 2.5.4.20=5a920ff0946aaf6412725ab05f18d6f29eab70967d edf790497ca46c5cec9693, postalCode=700026, street=51B KALI TEMPLE ROAD KALIGHAT, AGARWAL pseudonym=d59dd7db73023b349bb08745443b7491, serialNumber=8a86ff8e60b669ceeb51cbc72e76564988
Slide 2: Q1 Financial Report
Slide 3: Trend for the Quarter
ee OE Trend for the Quarter Revenue (? in Crore) Operating Profit/EBDITA (? in Crore) FY "19-20 FY FY FY FY FY FY FY FY 20-'21 "2122 22-23 ‘25-24 ma FY 19-20 20-21 ‘21-22 "22-23 '23-'24 —a Free cash flow 12 months MAR (% in Crore) aw -60 FY FY FY FY FY ’19-'20 "20-21 21-22 '22-'23 "23-24 \02
Slide 4: Parameters Q1
(te SSP aaa) *] Parameters Q1 (? in Crore) Note Growth/degrowth have been calculated in comparison with last year. |03)
Slide 5: Financial Review Q1
ae Oe Financial Review Q1 (® in Crore) Revenue 1,063.00 1,049.00 EBITDA 40.68 38.45 EBITDA % on Revenue 3.83 3.66 EBT 3.54 3.09 EBT % on Revenue 0.33 0.29 ROCE % 4.62 444 Growth in revenue in first Quarter is marginally higher than last year but below expectation. Reduction in material cost and bett
Slide 6: Balance Sheet
Balance Sheet Total borrowing was 7150.60 crore as on Quarter end date including a term loan amount of %97.24 crore. Break-up of this is as follows: Borrowing ( in Crore) LoanType == Value = Banker = Purpose = Tenure ECB* 52.28 Standard Chartered AC Project Five Years Rupee Term Loan 9.96 Federal Ba
Slide 7: Cash and bank balances
| Sho Ree RET So ao) || Against the aforesaid borrowing, as on 30th June 2023, our Cash and Bank Balances (including investments in Mutual Funds) were at 2249.77 crore. Hence the Company's net cash balance was positive after considering its overall debt position. The break up of this is given: Break
Slide 8: Refrigerator Plant in Pune, Ranjangaon (Phase III)
Refrigerator Plant in Pune, Ranjangaon (Phase lil) {FB Industries invested %97 crore in IFB Refrigeration Limited, holding 44.44% of its total equity. The Plant successfully commenced commercial production in May 2023. In the first Quarter of FY ‘25-24, the Plant produced 17,782 units and sold 9,209
Slide 9: Business Update
1 Business Update Home Appliances Division During the Q1 period, the market faced stress due to unseasonal rains and stockpile build-ups in the channel. This led to low market movement in April and May, but the situation improved in June 2023. Across product categories, customer off-take was general
Slide 10: IFB Points and modular kitchen business
T radius around each store. Currently, around 40% of footfalls at IFB Points are influenced by digital means. This model is expected to make the IFB Points more financially rewarding for franchisees. As part of IFB Points, we also operate the modular kitchen business. Unfortunately, we have not been
Slide 11: Engineering Division: Automotive demand
: + For 4W demand, all OEMs experienced higher numbers compared to Q1 of the previous year. This trend is expected to continue in the next Quarter due to a high waiting period and the upcoming festive season. However, the chip shortage issue continues to affect the industry. The 4W segment saw a 7.0
Slide 12: Automotive market in Q1
In Q1, the automotive market sales showed a slight upward trend compared to Q1 of the previous year ('22-'23). + However, the semiconductor shortage situation is still causing issues, affecting some models in both the 2W and 4W segments. + On a positive note, commodity prices have decreased, resulti
Slide 13: Range of Products (Home Appliances Division)
RANGE OF PRODUCTS (Home Appliances Division) The Division's range of products covers both domestic and industrial application categories. The updates at the end of first Quarter for each of the product categories are given below: * Front Load Washers Our product range offers multiple options that ca
Slide 14: Top Load Washers and Clothes Dryers
+ Top Load Washers Our models with in-built heaters and Steam-enabled washing programs are performing well in the market. There is a growing demand for higher capacity models, which has been consistent over the past two years. Our main focus is to expand placements and increase availability of these
Slide 15: Exports, exhibitions and product road map
To expand our export footprint, we have targeted new markets such as UAE and Africa and we have already secured regular orders from the UAE. Additionally, we are actively pursuing business partners in Russia and plan to participate in an expo in Moscow in Oct 2023. We are also exploring partnerships
Slide 16: Built In Ovens, Dishwasher, MW, Chimneys and Hobs
* Built In Ovens, Built In Dishwasher, Built In MW, Chimneys and Hobs In the first Quarter of FY ‘23-24, the kitchen appliances built-in segment achieved approximately %7 crore in business. To achieve the desired monthly growth of %5 crore, our focus remains on strategically placing these products w
Slide 17: Dishwashers
| | + Dishwashers The domestic dishwasher segment has experienced a decline in demand compared to previous Quarters. In the last Quarter, the market saw a reduction of approximately 6,000 units per month across all brands. Currently, we are placed in around 3,000 plus counters and, despite the decre
Slide 18: Air Conditioners
- Air Conditioners Effective from 1st July 2022, the new energy regulations have led to changes in our product line. Our new range includes products at new capacity points like 1.5 T 4 star, 1.6 T 3 star and more, all of which are Wi-Fi enabled. These products have been well-received in the market a
Slide 19: Financial Summary of the Home Appliances Division
aa ies: pares ( ) | Financial Summary of the Home Appliances Division (2 in Crore) Revenue 850.20 851.90 EBITDA 26.40 28,70 EBITDA % on Revenue 3.11 3.37 EBT -2.30 2.20 EBT % on Revenue -0.27 0.26 ROCE % 3.78 6.56 + Revenue during the Quarter was marginally lower than the same Quarter last year. + D
Slide 20: Engineering Division Business Updates
ee OF | Engineering Division Business Updates | @ e The Division, primarily dependent on the domestic auto sector, witnessed an 8.06% growth in Q1 FY ’24 compared to Q1 FY ’23. During the same period, the domestic auto sector production increased by 2.8%. The major sub-segment of 2 wheelers saw a gr
Slide 21: Trend of Revenue and Profit: Last Year
Trend of Revenue and Profit: Last 4 Year (2 in Crore) 00 700 Soeesee™ soo Revenue ‘oo | a > Growth 20 CAGR: 19% 100 2019-20 2020-21 2021-22 2022-23 PBDIT Growth CAGR: 20% °o 8 & 8 8 i=. 4 ‘ ‘ ‘ ' + ‘ 1 ‘ ‘ ‘ + ‘ ‘ * ‘ | ' ‘ ‘ : ‘ 4 4 4 ‘ ¥ 1 « 2039-20 2020-21 2021-22 2022-23 |20)
Slide 22: Revenue Streams for Growth-Near Term
Revenue Streams for Growth-Near Term Existing Business To mitigate the impact of EVs on the business, the Company is implementing these strategic measures: 1. To interact with the existing players in the domestic EV market. 2. Early engagement with players entering the EV market. 3. EV neutral autom
Slide 23: Growth Strategy Long-Term: M&A
rtanenoamamtommss = Growth Strategy Long-Term: M&A The Division made bids for acquisitions in Indonesia and Delhi, targeting stamping companies producing automotive components. Unfortunately, these bids were not successful, but the Division remains open to exploring more such opportunities in the fu
Slide 24: Premium Customer Base
Premium Customer Base Revenue Contribution % 30 28 25 20 1S a 10 8 9 a alan a le ees 4 5 5 6 ie! fC a) a ee ee oe ee i | a : al uw a wu nn > fs] wr $2 fe § § € ¢ 8 & - Fg Ee 8 g 2 7 P z z @ $$ —~ 3 5 z fc] 3 Fa < 5 cs a Ee s 8 F 2 8 §F 2 Z ir The Engineering Division supplies to all major OEMs and T
Slide 25: Steady Improvement in ROCE
ee Oe Steady Improvement in ROCE Trend of ROCE Movement 20 WB _——— se _—— jo Targeted 10 =apnnse ROCE 30% 5 0 QU«FY 23 Q2-FY 23 O3-FY 23 Q4sFY 23 QUFY 24 Improvement in ROCE is mainly due to the following reasons + Normalisation of capital employed + Improvement in profitability (24)
Slide 26: Q1 Vertical-wise Growth
Q1 Vertical-wise Growth Growth YOY Revenue (? in Crore) FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 FBD 8% Stamping 11% After Market (3%) Total Eng 8% Growth YOY EBITDA (8 in Crore) FY23. FY 24 FY23 «FY 24 FY23 FY 24 FY23. FY 24 FBD 24% Stamping 31% After Market 74% Total Eng 37% In the month of
Slide 27: Quarterly Results—Q1 (FY 2023-24)
Quarterly Results—Q1 (FY 2023-24) Revenue (7 in Crore) YOY 8% QUFY23) = QU-FY 24 EBITDA (% in Crore) YOY 37% 12.36% 9.76% QUFY23 = QU-FY 24 EBT (f in Crore) YOY 159% 6.84% QVFY23 = QU-FY 24 ROCE (% in Crore) Q1-FY23—_«QU-FY 24 a On 126)
Slide 28: Motor Division
Motor Division Appliance Motor Sales are not separately reported as they are internal sales to the Home Appliances Division. However, once the new BLDC motor line is operational, we plan to sell to others, including competitors. During the Quarter, the Division's revenue did not grow as expected due
Slide 29: BLDC motors and Automotive Motor Division summary
The range of BLDC motors for washing machines can accommodate a wide range of capacities, from 5 Kg to 10 Kg machines, for both Front Load and Top Load applications. The targeted customers for washing machine BLDC motors include Samsung, Whirlpool, Electrolux, Vestal, among others. For air condition
Slide 30: Financial Summary of Steel Division
Financial Summary of Steel Division (2 in Crore) Particulars (FY 28-24) QT (FY '22~'23) Revenue 35.46 35.41 EBITDA -0.32 0.50 EBITDA % on Revenue -0.90 1.41 EBT -1.25 0.06 EBT % on Revenue -3.51 0.17 In the first Quarter of FY '23-'24, Total Sales was 4440 MT, lower than the Budgeted 6350 MT due to
Slide 31: Subsidiaries
Subsidiaries IFB Industries Limited, the Holding Company, has one wholly owned subsidiary—Global Automotive and Appliances Pte Ltd (GAAL) and one step-down subsidiary, Thai Automotive and Appliances Limited (TAAL). Global Automotive & Appliances Pte Ltd (GAAL) (2 in Crore) 17.53 13.09 Revenue from O
Slide 32: Thai Automotive & Appliances Limited (TAAL)
a a Sas SEE nen) Thai Automotive & Appliances Limited (TAAL) (2 in Crore) Particulars QT FY 23-124) QT (FY '22-'23) Revenue 13.99 9.44 EBITDA 0.39 0.23 EBITDA % on Revenue 2.79 2.44 EBT -0.21 -0.34 EBT % on Revenue -1.50 -3.60 TAAL is engaged in manufacturing Auto Components through Fine Blanking pr
Slide 33: Note on current status after Ramsons takeover
1 Note on current status after take over Note on Ramsons takeover + Industrial Laundry Manufacturing Business was acquired from Ramsons on 18th Oct 2018. + Due to the pandemic our business was severely impacted as hotels, railways and other institutions were all closed in FY '20-'21 and also FY ‘21-
Slide 34: Note on the Stamping Division takeover
Note on the Stamping Division takeover + [FB Industries Ltd acquired the Stamping Division from IFB Automotive Pvt. Ltd in October 2019 to position its Engineering Division as a One-stop-shop for the Automobile Components Business. + Performance Progress 1. The revenue of the Stamping Division has r
Slide 35: Note on Acquisition of Steel Trishan Metal takeover
Note on Acquisition of Steel Trishan Metal takeover 51% of equity of erstwhile Trishan Metals Pvt Ltd [Manufacturer of Cold Rolled Strips] was acquired by IFBIL in July, 2016. Remaining 49% was acquired on 31st Oct, 2020. Finally it was amalgamated with IFBIL with effect from 1st April 22 as per the
Slide 36: Note on Automotive Motor Division takeover
Note on Automotive Motor Division takeover The Motor Division of IFB Industries acquired the Automotive Motor Division of IFB Automotive Pvt Ltd in October 2019. The acquisition aimed to create synergy between the Divisions, resulting in substantial savings and increased scale. Post-acquisition, sig
Slide 37: Standalone Income Statement
{RS a a mR] STANDALONE INCOME STATEMENT OTR @inCrore) Total Sale of Products 1,279.85 1,267.85 Less: Trade Scheme and Discounts 280.83 271.38 Net Sales 999.02 996.47 Sale of Services 30.81 24.28 Other Operating Revenues 25.24 24.02 Revenue from Operations 1,055.07 1,044.77 Other Income 7.78 4.50 Tot
Slide 38: Standalone Balance Sheet
1 STANDALONE BALANCE SHEET (2 in Crore) ASSETS Property, Plant and Equipment” 668.86 689.63 investment in Subsidiaries 118.60 118.60 Investment in Equity Shares 2.25 2.25 Inventories 497.40 566.82 Investment in Mutual Funds 138.80 89.15 Trade Receivables 372.79 392.04 Cash and Bank Balances 110.49 9
Slide 39: Standalone Key Ratios
STANDALONE KEY RATIOS oTR Eamings Per Share (in %) (Not Annualised) 0.65 0.49 Book Value Per Share (in %) 162.64 157,64 Current Ratio (#) 1.09 1.16 Quick Ratio (#) 0.64 0.58 EBDITA/Total Income (%) 15.3 3.7 Net Profit Margin (%) 1.0 0.2 Net Worth (in crore) 547.91 527.65 RONW (%) (on PAT) 0.5 0.4 Re
Slide 40: Standalone Cash Flow Statement
STANDALONE CASH FLOW STATEMENT CASH FLOWS FROM OPERATING ACTIVITIES 30 Jun, ‘23 QTR (® in Crore) 31 Mar, '23 Profit Before Tax 3.54 34.40 Non-Cash and Other Adjustments 35.82 133.75 Operating Profit Before Working Capital Changes 39.36 168.15 Movement in Working Capital 86.75 (58.40) Cash Generated
Slide 41: Consolidated Highlights
a eee CONSOLIDATED HIGHLIGHTS (? in Crore) QI (23-'24) Ql ('22-'23) Total Income 1093.69 1,071.73 Earning Before Depreciation, Interest and Tax 38.27 39.06 Earning Before Interest and Tax 8.03 10,44 Profit Before Tax 0.56 3.13 Profit After Tax (0.62) 1.90 Earnings Per Share (2) (Not Annualised) (0.1
Slide 42: Consolidated Income Statement
ee Om CONSOLIDATED INCOME STATEMENT QTR (? in Crore) 30 Jun, ‘23 30 Jun, '22 Total Sale of Products 1,310.09 1,289.92 Less: Trade Scheme and Discounts 280.83 271.38 Net Sales 1,029.26 1,018.54 Sale of Services 30.81 24.28 Other Operating Revenues 25.84 24.58 Revenue From Operations 1085.91 1067.40 O
Slide 43: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET (2 in Crore) ASSETS Property, Plant and Equipment* 694.27 715.69 Investment in Equity Shares 92.54 96.84 Inventories 502.72 573.09 Investment in Mutual Funds 138.80 89.15 Trade Receivables 399.05 413.37 Cash and Bank Balances 115.01 97.05 Other Non-current Assets 132.42 12
Slide 44: Thank You / Disclaimer
Thank You Disclaimer This presentation contains statements which reflect the Management's current views and estimates and may be construed as forward-looking in nature. The future involves certain risks and uncertainties that may cause actual results to differ materially from the current views being
Slide 45: Over Million Satisfied Customers
OVER 7 M | LLI 0 N SATISFIED CUSTOMERS rc} Microwave Oven Built in Oven Dishwasher Chimney | Built in Hob Top Load FrontLoad 100% Clothes Dryar Air Conditioner Contact Prabir Chatterjee Director and Chief Financial Officer Phone +91 33 39849475/9524 Mobile +91 9331648802/9674686372 Fax +91 33 398496