Hi-tech Gears Limited · NSE:HITECHGEAR

Hi-tech Gears — The Hi-Tech Gears — Q1 FY2023-24 Earnings Presentation

35 slides from Hi-tech Gears's earnings presentation, Aug 18, 2023

  1. Slide 1: Intimation under Regulation 30 - Earnings Presentation

    CIN - L29130HR1986PLC081555 Corporate Office: Millennium Plaza, Tower-B, Sushant Lok-1, Sector-27, Gurugram -122009, Haryana, INDIA Tel.: +91(124) 4715100 E-mail: secretarial@thehitechgears.com August 18, 2023 The Manager, The Manager, Listing Department, Listing Department, National Stock Exchange

  2. Slide 2: Q-1 Financial Year 23-24 Earnings Presentation

    Q-1 Financial Year 23-24 Earnings Presentation August 2023

  3. Slide 3: Safe Harbour Statement

    Safe Harbour Statement • The views expressed here may contain information derived from publicly available sources that have not been independently verified by The Hi-Tech Gears Limited. • No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accur

  4. Slide 4: Table of Contents

    Table of Contents • About THGL • Financial Update • Management Perspective 3

  5. Slide 5: Vision & Mission

    Vision & Mission The Hi-Tech Gears Vision “Be A Global Footprint Company and A Benchmark For World Class Manufacturing Systems” The Hi-Tech Gears Mission “We will be the preferred partner in delivering engineering products and design solutions through lean philosophy with a focus on:  Building a cu

  6. Slide 6: Board of Directors

    Board of Directors Deep Kapuria Anant Jaivant Talaulicar Pranav Kapuria Executive Chairman Vice Chairman & Non-Executive Managing Director Director Anuj Kapuria Subir K. Chowdhury Bidadi Anjani Kumar Executive Director Executive Director & President Non-Executive Director Krishna Chandra Verma Sande

  7. Slide 7: Management Team

    Management Team Subir K. Chowdhury Kapil Rajora Jawaid Ashraf Executive Director & President Chief Financial Officer Group CHRO B.E. (Mech.); 38 years experience across B.E. & MBA; 18 years of experience in PGDM (H.R.); 35 years of HR experience Off Highway, Cons Durables, Pass Car & Business Planni

  8. Slide 8: Strengths and Differentiators

    Strengths and Differentiators Established track record of more than three decades as one of the leading manufacturers of critical high-precision gears, shafts and transmission components across segments One of the very few components’ manufacturers catering to diverse segments of Two Wheelers, Passe

  9. Slide 9: Global Footprint and Marquee Customers

    Global Footprint and Marquee Customers EUROPE Daimler A.G. JCB Power Cummins Robert Bosch Magna Powertrain Perkins NORTH AMERICA Cummins American Axle GKN Magna Powertrain Robert Bosch ASIA (excl. India) Borg Warner Daimler Fuso IFA Cummins Navistar Robert Bosch Dana INDIA Cummins Stackpole Hero Mot

  10. Slide 10: Portfolio of Businesses across Automotive Segments

    Portfolio of Businesses across Automotive Segments Medium & Heavy Passenger Cars Agri, Engines and Off- Two-Wheeler Commercial Vehicles highway Top OE Coverage – Top OE Coverage-HMCL, # 1 in the World Daimler, GM, Ford, Top Players in the M&M, Honda Audi, Chrysler Segment Association with Top player

  11. Slide 11: Plants across India and North America

    Plants across India and North America Manufacturing facilities in India Manufacturing facilities overseas Plant-I, Guelph, Plant-II, Emporium Plant-I, Bhiwadi Plant-II, Manesar Plant-III, Bhiwadi Canada USA Est. 1986 Est. 2005 Est. 2011 Acquired 2017 Acquired 2017 Dual Shore Presence

  12. Slide 12: Well Diversified Product Portfolio

    Well Diversified Product Portfolio Commercial & Off- Engine Sintered Two-Wheeler Car Transmission & Power Take Off Precision Forging & Highway Vehicles Transmission Driveline Gears Components Machining Components Transmission Manufacturer of critical gears, shafts and transmission components across

  13. Slide 13: Process Infrastructure

    Process Infrastructure Forging Finishing • Hot Forging • Gear Grinder • Warm Forging • Honing, • Cold Forging • Gear Honing, • Cold Extrusion • Hard Turning, • Coining • Grinding, etc. Machining Tool Room & Die Manufacturing • CNC Turning • Vertical Machining Center EDM etc. • Gear Cutting (Wet & Dr

  14. Slide 14: Supplier of Critical Parts across Segments – Commercial Vehicle, Passenger Cars and Two Wheelers

    Supplier of Critical Parts across Segments – Commercial Vehicle, Passenger Cars and Two Wheelers Manufacturer of Transmission and Engine Parts going in Marquee Brands 13

  15. Slide 15: Supplier of Critical Parts across Segments – Agri and Earthmoving

    Supplier of Critical Parts across Segments –Agri and Earthmoving Manufacturer of Transmission and Engine Parts going in Marquee Brands 14

  16. Slide 16: Listing Information (as on 30th June 2023)

    Listing Information (as on 30th June 2023) : • NSE / BSE Code  NSE- HITECHGEAR  BSE- 522073 • Share Capital – 1,87,68,000 equity shares @ Rs. 10/- each • Shareholding Pattern Sr. No Particulars % of holding 1. Promoters 56.26% 2. Bodies Corporate 6.35% 3. Public 37.39%

  17. Slide 17: Table of Contents

    Table of Contents • About THGL • Financial Update • Management Perspective 16

  18. Slide 18: Standalone Performance Highlights (Q1 FY22-23 vs Q1 FY23-24)

    Standalone Performance Highlights (Q1 FY22-23 - vs – Q1 FY23-24) (₹ Mn) Revenue -6.32% 2,100 1,954 1,830 1,800 Total sales Rs. 1,954 1,500 1,200 900 600 300 Total sales Rs. 1,830 - Revenue Q1 FY 22-23 Q1 FY 23-24 • Export has decreased by ₹ 185 Mn or 30.11 % YoY due to normalization of inventory for

  19. Slide 19: Standalone Performance Highlights (Q1 FY22-23 vs Q1 FY23-24)

    Standalone Performance Highlights (Q1 FY22-23 - vs – Q1 FY23-24) (₹ Mn,% Revenues ) 14.81% EBIDTA PBT PAT 350 14.47% 350 350 300 289 265 300 300 250 250 8.73% 250 7.42% 200 200 200 5.63% 171 5.56 % 150 150 136 150 109 103 100 100 100 50 50 50 - - - EBIDTA PBT PAT Q1 FY 22-23 Q1 FY 23-24 Q1 FY 22-23

  20. Slide 20: Standalone Performance Highlights (Q4 FY22-23 vs Q1 FY23-24)

    Standalone Performance Highlights (Q4 FY22-23 - vs – Q1 FY23-24) (₹ Mn) Revenue -3.75% 2,100 Total sales Rs. 1,902 1,902 1,830 1,800 1,500 1,200 900 600 300 Total sales Rs. 1,830 - Revenue Q4 FY 22-23 Q1 FY 23-24 • Export has decreased by ₹ 26 Mn or 5.73 % due to adjustment of inventory levels at Pa

  21. Slide 21: Standalone Performance Highlights (Q4 FY22-23 vs Q1 FY23-24)

    Standalone Performance Highlights (Q4 FY22-23 - vs – Q1 FY23-24) (₹ Mn,% Revenues ) PBT PAT EBIDTA 350 350 350 14.47% 300 300 13.94% 300 265 265 250 250 250 200 7.22% 7.42% 200 6.72% 200 5.63% 150 137 136 150 128 150 103 100 100 100 50 50 50 - - - PBT PAT EBIDTA Q4 FY 22-23 Q1 FY 23-24 Q4 FY 22-23 Q

  22. Slide 22: Financials Summary – THGL Standalone

    Financials Summary – THGL Standalone (Q1 FY 22-23 - vs – Q4 FY 22-23 – vs- Q1 FY 23-24) (₹ Mn) Standalone Financials Numbers Growth Growth % Growth Growth % Q1 2022-23 Q4 2022-23 Q1 2023-24 (Q1 YOY) (Q1 YOY) (Q1 FY 24 vs (Q1 FY 24 vs Q4 Total Revenue 1,954 1,902 1,830 (124) -6.32% (71) -3.75% EBIDTA

  23. Slide 23: Consolidated Performance Highlights (Q1 FY22-23 vs Q1 FY23-24)

    Consolidated Performance Highlights (Q1 FY22-23 - vs – Q1 FY23-24) (₹ Mn) Revenue 3,600 3,300 -9.28% 2,939 3,000 2,666 2,700 2,400 2,100 1,800 1,500 1,200 900 600 300 - Revenue Q1 FY 22-23 Q1 FY 23-24 • Turnover has decreased by ₹ 273 Mn due to normalization of inventory built up by a Passenger Car

  24. Slide 24: Consolidated Performance Highlights (Q1 FY22-23 vs Q1 FY23-24)

    Consolidated Performance Highlights (Q1 FY22-23 - vs – Q1 FY23-24) (₹ Mn,% EBIDTA Revenues ) 11.47% 13.62% PBT PAT 400 363 400 337 400 350 350 350 300 300 300 250 250 250 200 200 4.61% 200 3.49% 150 150 2.09% 150 123 93 100 100 61 100 0.13% 50 50 50 4 - - - PBT PAT EBIDTA Q1 FY 22-23 Q1 FY 23-24 Q1

  25. Slide 25: Consolidated Performance Highlights (Q4 FY22-23 vs Q1 FY23-24)

    Consolidated Performance Highlights (Q4 FY22-23 - vs – Q1 FY23-24) (₹ Mn) Revenue 3,600 -7.27% 3,300 3,000 2,875 2,666 2,700 2,400 2,100 1,800 1,500 1,200 900 600 300 - Revenue Q4 FY 22-23 Q1 FY 23-24 • Turnover has decreased by ₹ 209 Mn or 7.27 % due to inventory adjustment by a Passenger Car custo

  26. Slide 26: Consolidated Performance Highlights (Q4 FY22-23 vs Q1 FY23-24)

    Consolidated Performance Highlights (Q4 FY23-24 - vs – Q1 FY23-24) (₹ Mn,% EBIDTA 13.62% PBT PAT Revenues ) 400 11.87% 500 363 500 341 400 400 300 300 300 5.79% 200 4.61% 3.49% 200 3.57% 200 166 123 100 103 93 100 100 - 0 - EBIDTA PBT PAT Q4 FY 22-23 Q1 FY 23-24 Q4 FY 22-23 Q1 FY 23-24 Q4 FY 22-23 Q

  27. Slide 27: Financials Summary – THGL Consolidated

    Financials Summary – THGL Consolidated (Q1 FY 22-23 - vs – Q4 FY 22-23 – vs- Q1 FY 23-24) (₹ Mn) Consolidated Financials Numbers Q1 2022-23 Q4 2022-23 Q1 2023-24 Growth Growth % Growth Growth % Total Revenue 2,939 2,875 2,666 (273) -9.28% (209) -7.27% EBIDTA 337 341 363 26 7.69% 22 6.38% EBIDTA% 11.

  28. Slide 28: Table of Contents

    Table of Contents • About THGL • Financial Update • Management Perspective 27

  29. Slide 29: Commentary on Overseas Performance for Q1 FY23-24

    Commentary on Overseas Performance for Q1 FY23-24 • The consolidated performance for Q1 FY 23-24 has improved significantly due to improvement in the Overseas operations. • In Q1FY 23-24, low pick-up from the customers resulted in reduction in sales of the Overseas business • Low pickup driven by cu

  30. Slide 30: Commentary on Standalone Performance for Q1 FY23-24

    Commentary on Standalone Performance for Q1 FY23-24 • Revenue Highlights : • In Q1 FY 23-24, revenue share of Two-Wheeler (TW) ~ 38%; Commercial Vehicle (CV), Agriculture and Off-road ~ 47% and Passenger Car (PC) ~ 15% • Revenues have declined by 3.7% QoQ in Q1 FY 23-24 vs. Q4 FY 22-23 and 6.3% YoY

  31. Slide 31: Thrust on EV and New Technology

    Thrust on EV and New Technology Electric Vehicle Components EV-Differential Assembly – EV deliver higher torque and power curve with fewer gear with higher rotational speed. THGL Initiatives: TW : Gear Component Final Assembly & Counter Assembly and Gear Drive PC : Helical Gear Components Advance Te

  32. Slide 32: New Business Wins – India Operations

    New Business Wins – India Operations FY 22-23 • New business won ~ ₹ 1,481 Mn annualized New Customers Current Customer ₹ 931 Mn New Customer ₹ 550 Mn • New business won ~ ₹ 1,481 Mn annualized EV Business ₹ 360 Mn ICE Business ₹ 1,121 Mn EV Customers Q1 FY 23-24 • New business won ~ ₹ 287 Mn annual

  33. Slide 33: Recent Awards

    Awards and Recognitions Recent Awards Manufacturing & Quality & Zero Organizational Export Excellence Supply Chain IGBC & TPM Defect Excellence • Hero Moto • SHINGO Prize • ACMA Gold • Hero Moto • Japan Corp – Silver Corp Institute of • ACMA Silver Plant • Tata Cummins • ACMA – Gold • Daimler Mainte

  34. Slide 34: For any further details, please contact

    For any further details, please contact: Email - investor.relations@thehitechgears.com Website – www.thehitechgears.com 33

  35. Slide 35: Thank you for your attention

    Thank you for your attention Disclaimer: This presentation is being provided for the sole purpose of providing the recipients with background information about The Hi-Tech Gears business. This presentation, including the information contained in this disclaimer, does not constitute an offer, invitat

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