Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Escorts — Q3 FY20 Earnings Presentation
54 slides from Escorts Kubota's earnings presentation, Jan 29, 2020
Slide 1: Outcome of Board Meeting cover letter
c ESCORTS January 29, 2020 BSE Limited National Stock Exchange of India Delhi Stock Exchange Phiroze Jeejeebhoy Limited Limited Towers, Dalal Street, Exchange Plaza, Bandra Kurla DSE House, 3/1, Mumbai-400 051 Complex, Bandra East, Mumbai - Asaf Ali Road, 400051 New Delhi-110002 BSE- 500495 NSE - ES
Slide 2: List of enclosures
2. Limited Review Report; 3. Press Release; 4. Brief Profile of Ms. Tanya Dubash: 5. Brief Profile of Mr. Satyendra Chauhan; 6. Earning Presentation r We further wish to inform you that the Board Meeting held today commenced at 12: '"'\ t" (2~. and concluded at ~ : IS f?rn- . Kindly take the same on
Slide 3: Standalone Unaudited Financial Results
Escorts Limited c Statement of Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2019 KS. m (.;rores Standalone results 3 Months ended 'Prececsmg 3 months corresponding 3 For the Nine Months ended For ihe year ended ended iTlonlhS ended in lhe Particulars prev
Slide 4: Standalone segment revenue, results and capital employed
c ESCORTS LIMITED Segment wise revenue, results and capital employed for the quarter and nine months ended December 31, 2019 R11 in Crores Standalone 3 Months ended Preceding J nl(lnlh• Conesponomg 3 F0t lt\e nln• month• el\dod For the year ended SJ. O<lded months anded in tne Particulars previous ~
Slide 5: Independent Auditor's Review Report (Standalone)
Walker Chandiok &.Co LLP Walker Chandlok & Co LLP (Formerly Walker, Chandiok & Col L-41 Connaught Circus New Delhi 110001 India T +91 11 4278 7070 F +91 11 4278 7071 Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date Results of Escorts Limited Pu
Slide 6: Independent Auditor's Review Report (cont'd)
Walker Chandiok &..Co LLP Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date Results of Escorts Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended) (cont'd) 4. Based o
Slide 7: Consolidated Unaudited Financial Results
Escorts limited c Sta.t ement of Consolidated Unaudited Financial Results for the auarter and nine months ended December 31, 2019 Rs. in Croros 3 MorHhs anded P re~eding lmo11th1 Co rresponding 3 for t he nine mon1h1 ended Fo rthe year e nd..0 ended rnonlhs. ended in the previous year l l- 12-2019 l
Slide 8: Consolidated segment revenue, results and capital employed
c ESCORTS Ll~ITEO Segment wise revenue, results and capital employed for the quarter and nine months ended December 31, 2019 Rs. in Crore1< Consolidated 3 Months ended Preceding 3 months Corresponamg l For 1he nine mon1h.s endtrd For the year ended SI. Particulars ended monlhs ended ln tho No. previ
Slide 9: Independent Auditor's Review Report (Consolidated)
Walker Chandiok &._Co LLP Walker Chandlok & Co LLP (Formerly Walker, Chandiok & Col L-41 Connaught Circus New Delhi 110001 India T +91 11 4278 7070 F +91 11 4278 7071 Independent Auditor's Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of Escorts Limited
Slide 10: Independent Auditor's Review Report (cont'd)
Walker Chandiok &.Co LLP 3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of in
Slide 11: Independent Auditor's Review Report (cont'd)
Walker Chandiok &..Co LLP unreviewed/unaudited interim financial information. According to the information and explanations given to us by the management, these interim financial information are not material to the Group. Our conclusion is not modified in respect of this matter. For Walker Chandiok
Slide 12: Annexure: List of entities included
Walker Chandiok &..Co LLP Annexure 1 List of entities included in the Statement Subsidiaries: 1. Escorts Securities Limited 2. Farmtrac Tractors Europe Sp. Z.o.o. 3. Escorts Crop Solutions Limited 4. Baba Chadaneswar Agri Services LLP (dissolved on 22 March 2019) 5. Pancha Sakha Agri Services LLP (d
Slide 13: Escorts Ltd. Q3 Net Profit Up by 9.2%
c ESCORTS Escorts Ltd. Q3 Net Profit Up by 9.2°/o at f 153.1 er. • Tractor volumes at 25, 109 units • Construction Equipment volumes at 1,044 units • Railway Segment revenue up by 28. 8% • EBIDTA up by 5.9% at~ 212.3 crore • Profit up by 9.2% at~ 153.1 crore New Delhi, January 29, 2020: Escorts Limi
Slide 14: Press release: segment wise performance
c ESCORTS Speaking on the results, Chairman and managing Di.rector Mr. Nikhil Nanda said, "We are continuing our journey of providing unique and innovative technology solutions for maximizing agriculture yield, bring in efficiency in the construction equipment space and make rail transport safer. Ou
Slide 15: Railway Products Division
c ESCORTS Railway Products Division Revenue for the third quarter up by 28.8% at ~ 124.4 crore as against ~ 96.6 crore in the corresponding quarter. Sales from new product continues to grow in this quarter too and now EBIT margin stands at 18.4 % in quarter ended December'19 as compared to 19.9% in
Slide 16: Brief Profile of Ms. Tanya Dubash
Brief Profile of Ms. Tanya Dubash Tanya serves as the Executive Director and Chief Brand Officer of Godrej Industries Ltd., and is responsible for the Godrej Group's brand and communications function, including guiding the Godrej Masterbrand. Tanya is also a Director on the Board of Godrej Industrie
Slide 17: Brief Profile of Mr. Satyendra Chauhan
Brief Profile of Mr. Satyendra Chauhan Mr. Satyendra Chauhan is an associate member of the Institute of Company Secretaries of India (ICSI) and a Law graduate with over 18 years of experience. He has experience in the field of Corporate Law, Legal Due Diligence, Joint Venture Structuring and develop
Slide 18: Q3 FY20 Earning Presentation
Q3 FY20 | EARNING PRESENTATION 29th January 2020 BSE: 500495 | NSE: ESCORTS Copyright @ Escorts Ltd. ESCORTS LIMITED 1
Slide 19: Contents
Contents • Escorts Ltd. An Overview • Q3 FY20 at a Glance (Standalone) • Highlights • YoY at a Glance • Revenue highlights • QoQ at a Glance • 9M FY20 at a Glance (Standalone) • Credit Rating & Debt Profile • Management Message • Segmental Highlights • EAM • ECE • RED • Shareholding pattern • 9M FY2
Slide 20: Escorts Limited: An Overview
Escorts Limited: An Overview India's leading engineering conglomerates and for over Seven decades it has helped accelerate India’s socio-economic development through its presence across the high growth sectors of • Agri-machinery Escorts Agri Machinery • Construction & Material Handling Equipment (E
Slide 21: Escorts Ltd. Q3 FY20 at a Glance
Escorts Ltd. Q3 FY20 at a Glance Industry Escorts Ltd. Particulars (YoY) Variance Growth Growth Domestic Tractor Volume -6.0% -2.0% 4.0% Export Tractor Volume -3.0% -13.0% -10.0% Total Tractor Volume -5.7% -2.5% 3.2% Served Construction Equipment Volume -10.7% -26.1% -15.4% Railway Segment Revenue 2
Slide 22: Revenue; YoY 1.3%; QoQ 23.4%
Revenue; YoY 1.3%; QoQ 23.4% ₹ Cr. Q3 Revenue Key Highlights (YoY) • Tractor Sales down by 2.5% at 25,109 units • Construction Sales down by 26.1% at 1,044 units • Railway division sale up by 28.8% ₹ Cr. Q3 Revenue Key Highlights (QoQ) • Tractor Sales up by 27.1% at 25,109 units • Construction Sales
Slide 23: Standalone Q3FY20 YoY at a Glance
Standalone Q3FY20 YoY at a Glance Escorts Ltd. Particulars Q3FY20 Q3FY19 Variance Domestic Tractor Market Share 11.9% 11.4% 47 bps Revenue ₹ 1,633.4 Cr. ₹ 1,655.1 Cr. -1.3% Material Cost 66.8% 69.6% -273 bps Manpower Cost 8.1% 7.2% 91 bps EBIDTA ₹ 212.3 Cr. ₹ 200.5 Cr. 5.9% EBIDTA Margin 13.0% 12.1%
Slide 24: Standalone Q3FY20 Highlights YoY
Standalone Q3FY20 Highlights YoY •EAM at 25,109 Volume & Sales • Q3: ₹ 212.3 Cr. EBIDTA • Q3: ₹ 1,633.4 Cr. • Q3 Profit Revenue •YoY down by 2.5% • YoY down by 1.3% • Margin at 13% highest quarterly • PAT: ₹ 153.1 Cr. Division Wise Revenue margin in last 15 • Margin at 9.4%. •ECE at 1,044 Split year
Slide 25: Standalone Q3FY20 QoQ at a Glance
Standalone Q3FY20 QoQ at a Glance Escorts Ltd. Particulars Q3FY20 Q2FY20 Variance Domestic Tractor Market Share 11.9% 11.2% 63 bps Revenue ₹ 1,633.4 Cr. ₹ 1,323.9 Cr. 23.4% Material Cost 66.8% 67.0% -18 bps Manpower Cost 8.1% 9.5% -133 Bps EBIDTA ₹ 212.3 Cr. ₹ 126.7 Cr. 67.5% EBIDTA Margin 13.0% 9.6
Slide 26: Standalone Q3FY20 Highlights QoQ
Standalone Q3FY20 Highlights QoQ •EAM at 25,109 Volume & Sales • Q3: ₹ 212.3 Cr. EBIDTA • Q3: ₹ 1,633.4 Cr. Profit Revenue •QoQ up by 27.1% • Q3 PAT: ₹ 153.1 • QoQ up by 23.4% • Margin at 13% highest quarterly Cr. Division Wise Revenue margin in last 15 • Margin at 9.4%. •ECE at 1,044 Split years •
Slide 27: Standalone 9MFY20 at a Glance
Standalone 9MFY 20 at a Glance Escorts Ltd. Particulars (YoY) 9MFY20 9MFY19 Variance Domestic Tractor Market Share 11.2% 10.9% 37 bps Revenue ₹ 4,380.3 Cr. ₹ 4,564.7 Cr. -4.0% Material Cost 67.6% 68.3% -72 bps Manpower Cost 8.7% 7.8% 95 Bps EBIDTA ₹ 481.4 Cr. ₹ 543.5 Cr. -11.4% EBIDTA Margin 11.0% 1
Slide 28: Standalone 9MFY20 Highlights
Standalone 9MFY20 Highlights •EAM at 65,910 Volume & Sales • 9M: ₹ 481.4 Cr. EBIDTA • 9M: ₹ 4,380.3Cr. • 9M Profit Revenue •YoY down by 7.5% • YoY down by 4.0% • Margin at 11% • YoY margin down by • PAT: ₹ 345.1 Cr. Division Wise Revenue 92 bps •ECE at 3,056 Split • Margin at 7.9%. •YoY down by 25.3
Slide 29: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- Rating (₹ Crs.) 600 553 436 480 361 263 50 277 9 120 .0 111.0 Rating maintained 96.0 at AA- with 500 100 .0 Stable outlook by 400 290 ICRA & CRISIL 80.0 206 302 50.0 57.0 300 60.0 200 220 40.0 159 220 263 31.0 28.6 230 18
Slide 30: Management Message
Management Message Nikhil Nanda, Chairman and Managing Director “We are continuing our journey of providing unique and innovative technology solutions for maximizing agriculture yield, bring in efficiency in the construction equipment space and make rail transport safer. Our investment in new produc
Slide 31: Segment Performance: EAM
Segment Performance : EAM Powering The Dreams Of Farmer 29-01-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 14
Slide 32: Domestic Tractor Industry Overview
Domestic Tractor Industry Overview In Lakh Quarterly 9 Months 2.17 6.27 2.04 5.63 1.67 Q ended Dec'18 Q ended Sep'19 Q ended Dec'19 9M Ended Dec'18 9M Ended Dec'19 • In Q3FY20 on Y-o-Y domestic Industry down by ~6%. • Industry in Q3FY20 on Y-o-Y basis in North and central region de-grew by 4.2%, whe
Slide 33: Q3FY20 Segment Highlights: EAM
Q3FY20 Segment Highlights : EAM • Domestic at Revenue Volume •Market Share at • Q3: ₹ 187.2 Cr. Domestic Market Share EBIT 11.9% • At ₹ 1,291.5 Cr. 24,219 • YoY up by 1.4% • YoY down by 2.0% •YoY up by 47 bps • YoY down by 0.1% • QoQ up by 82.7% • QoQ up by 28.9% •QoQ up by 63 bps • QoQ up by 29.7%
Slide 34: Recent Developments: CARE 24X7
Recent Developments CARE – 24X7 24X7 customer service across entire range of Powertrac and Farmtrac tractors. Now all our customers can just press a special button on their tractor any time of the day for any technical or other help and receive a call back from a trained Company Engineer within 2 mi
Slide 35: Gearing up for Future: Electric Tractor
Gearing up for Future Electric Tractor 29-01-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 18
Slide 36: Strategic Collaboration with Kubota Update
Strategic Collaboration with Kubota Update • Contract Manufacturing for Escorts and Kubota Product Manufacturing JV (50,000 • Factory under construction Phase 1 investment done in FY19 capacity) and phase 2 investment of approx. Rs. 60 cr. in FY20 • Production to start in Q2FY21. • Escorts Products
Slide 37: Segment Performance: ECE
Segment Performance : ECE PREFERRED PARTNER IN NATION BUILDING 29-01-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 20
Slide 38: Served-Construction Equipment Industry Overview
Served-Construction Equipment Industry Overview In ‘000s Quarterly 9 Months 15.7 44.6 14.0 34.7 9.9 Q ended Dec'18 Q ended Sept'19 Q ended Dec'19 9M ended Dec'18 9M ended Dec'19 • Served industry (Backhoe Loaders, Pick n carry crane and Compactors) went down by 22.3% in 9MFY20 wrt to LY. • BHL indus
Slide 39: Q3FY20 Segment Highlights: ECE
Q3FY20 Segment Highlights : ECE • ECE at 1,044 • Q3: ₹ 10.5 Cr. Volume • Q3: ₹ 216.6 Revenue • Q3: Carne market Served industry Market Share EBIT • YoY down by 26.1% Share 40.4% Cr. • YoY up by 12.3% • QoQ up by 10.5% • YoY up by ~230 bps • QoQ up by 94.1% • YoY down by 18.6% • QoQ flat • QoQ up by
Slide 40: Segment Performance: RED
Segment Performance : RED ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 29-01-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 23
Slide 41: Q3FY20 Segment Highlights: RED
Q3FY20 Segment Highlights : RED • As of Dec’19 • Q3: ₹ 124.4 Revenue Order Book • Q3: ₹ 22.9 Cr. EBIT around ₹ 450 Cr. • YoY up by 18.9% Cr. • YoY up by 28.8% • QoQ down by 5.4% • QoQ down by 1.8% •Execution time 12~15 Months • Breakup • Margin at • Key Highlight 18.4% • New product order • YoY down
Slide 42: Shareholding Pattern
↑ SHAREHOLDING PATTERN 33.3% 31.9% 33.9% 32.5% 32.2% 26.6% 28.0% 25.9% 27.3% 27.6% 40.1% 40.1% 40.2% 40.2% 40.2% Dec'18 Mar'19 Jun'19 Sept'19 Dec'19 Promoters + Trust Institutions* Public * FPI/Financial Institutions/ Banks/Insurance Companies As of quarter ended 29-01-2020 Copyright @ Escorts Ltd.
Slide 43: Consolidated 9MFY20 at a Glance
Consolidated 9MFY 20 at a Glance Escorts Ltd. Particulars (YoY) 9MFY20 9MFY19 Variance Revenue from operations ₹ 4,424.4 Cr. ₹ 4,612.9 Cr. -4.1% Material Cost 67.4% 68.2% -81 bps Manpower Cost 8.8% 7.9% 92 Bps EBIDTA ₹ 480.3 Cr. ₹ 539.6 Cr. -11.0% EBIDTA Margin 10.8% 11.7% -84 bps PAT ₹ 344.0 Cr. ₹
Slide 44: Standalone Results
Standalone Results Escorts Limited Statement of Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2019 Rs. in Crores Standalone results 3 Months ended Preceding 3 months Corresponding 3 For the Nine Months ended For the year ended ended months ended in Particu
Slide 45: Standalone Results
Standalone Results Escorts Limited Statement of Standalone Unaudited Financial Results for the quarter and nine months ended December 31, 2019 Rs. in Crores Standalone results 3 Months ended Preceding 3 months Corresponding 3 For the Nine Months ended For the year ended ended months ended in Particu
Slide 46: Standalone Results: segment wise revenue
Standalone Results ESCORTS LIMITED Segment wise revenue, results and capital employed for the quarter and nine months ended December 31, 2019 Rs. in Crores Standalone 3 Months ended Preceding 3 months Corresponding 3 For the nine months ended For the year ended Sl. ended months ended in the Particul
Slide 47: Standalone Results: segment assets and liabilities
Standalone Results 3 Segment assets a) Agri machinery products 2,678.10 2,863.86 2,854.76 2,678.10 2,854.76 2,974.62 b) Construction equipments 358.59 414.40 410.34 358.59 410.34 420.54 c) Railway equipments 285.95 269.51 212.39 285.95 212.39 214.69 d) Auto ancillary products (discontinued operation
Slide 48: Consolidated Results
Consolidated Results Escorts Limited Statement of Consolidated Unaudited Financial Results for the quarter and nine months ended December 31, 2019 Rs. in Crores 3 Months ended Preceding 3 months Corresponding 3 For the nine months ended For the year ended ended months ended in the previous year 31-1
Slide 49: Consolidated Results
Consolidated Results Profit from discontinued operations before tax - - - - 1.89 1.89 Tax expense of discontinued operations - - - - 0.66 0.66 Net profit from discontinued operations after tax - - - - 1.23 1.23 Net profit for the period 154.79 101.54 139.21 343.99 361.48 477.90 Other comprehensive i
Slide 50: Consolidated Results: segment wise revenue
Consolidated Results ESCORTS LIMITED Segment wise revenue, results and capital employed for the quarter and nine months ended December 31, 2019 Rs. in Crores Consolidated 3 Months ended Preceding 3 months Corresponding 3 For the nine months ended For the year ended Sl. Particulars ended months ended
Slide 51: Consolidated Results: segment assets and liabilities
Consolidated Results 3 Segment assets a) Agri machinery products 2,702.06 2,889.02 2,876.79 2,702.06 2,876.79 3,005.26 b) Construction equipments 358.59 414.40 410.34 358.59 410.34 420.54 c) Railway equipments 285.95 269.51 212.39 285.95 212.39 214.69 d) Auto ancillary products (discontinued operati
Slide 52: Narrations
Narrations • EAM – Escorts Agri Machinery • ECE – Escorts Construction Equipment • RED – Railway Equipment Division • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • Q3FY20 – Represents the 3 months period from 1st October 2019 to 31st December 2019. • Q2FY20 – Repre
Slide 53: Safe Harbor
SAFE HARBOR Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im
Slide 54: Thank You
Thank You SCORTS 29-01-2020 Copyright @ Escorts Ltd. ESCORTS LIMITED 37