Avalon Technologies Limited · NSE:AVALON
Avalon Technologies — Q3 FY25 Earnings Presentation
46 slides from Avalon Technologies's earnings presentation, Feb 5, 2025
Slide 1: Exchange cover letter for investor presentation
To To BSE Limited The Manager Corporate Relationship Department Listing Department PJ towers, The National Stock Exchange of India Limited Dalal Street, “Exchange Plaza”, Bandra – Kurla Complex, Mumbai -400001 Bandra (EAST), Mumbai – 400051 BSE SCRIP CODE: 543896 NSE Symbol: AVALON Sir(s)/Madam, Sub
Slide 2: Earnings Presentation Q3 FY25
February 2025 Earnings Presentation Q3 FY25 www.avalontec.com
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Avalon Technologies Limited(the “Company”), solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person a
Slide 4: Table of Contents
Table of Contents Business Highlights Financial Highlights Strategy Company Overview Annexures | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 3
Slide 5: Avalon – At a Glance
AVALON – AT A GLANCE One of the India’s Leading Fully Integrated EMS Company with a Global Delivery Footprint Only India EMS player to have full-fledged manufacturing facilities in the US Hybrid One stop shop for all EMS 14 Manufacturing units across US Manufacturing 575k+ sq.ft. Design & Located i
Slide 6: Business Highlights
Business Highlights Key events 46% INR 1,594 Cr # Box-build Revenue Order book Order book + Long-term contracts increased 28% YoY 11.3% INR 1,111 Cr * Net Working Capital improved by 11 days from 161 days in RoCE Long–term Contracts Mar’24 to 150 days in Dec’24 Business Highlights New plant for expo
Slide 7: Financial Highlights – Q3 FY25
Financial Highlights – Q3 FY 25 (INR Cr.) Order Gross Margin EBITDA PAT Book Q3 FY 25 Q3 FY 25 Q3 FY 25 31st Dec 2024 Revenue 105 YOY% 35 YOY% 24 YOY% 1,594 YOY% 32.8% 109.5% 264.9% 25.0% 79 Q3 FY 25 17 Q3 FY 25 7 Q3 FY 25 1,275 Q3 FY 25 Q3 FY 24 31tst Dec 2023 Q3 FY 24 Q3 FY 24 281 YOY% 37.3% YOY%
Slide 8: Financial Highlights – 9M FY25
Financial Highlights – 9M FY 25 (INR Cr.) Order Gross Margin EBITDA PAT Book 9M FY 25 9M FY 25 9M FY 25 31st Dec 2024 Revenue 272 YOY% 73 YOY% 39 YOY% 1,594 YOY% 16.7% 55.4% 87.2% 25.0% 233 9M FY 25 47 9M FY 25 21 9M FY 25 1,275 9M FY 25 9M FY 24 31tst Dec 2023 9M FY 24 9M FY 24 755 YOY% 36.1% YOY%
Slide 9: Financial Highlights – Q3 FY25
Financial Highlights – Q3 FY25 (INR Cr.) Gross Revenue Margin Q3 FY 25 281 Q3 FY 25 37.3% 2% 48 Bps 48 Q2 FY 25 275 31% Q2 FY 25 36.8% Bps Q3 FY 24 214 Q3 FY 24 36.8% EBITDA PAT Q3 FY 25 12.3% Q3 FY 25 8.2% 137 198 Bps Bps 521 Q2 FY 25 11.0% 462 Q2 FY 25 6.3% Bps Bps Q3 FY 24 7.7% Q3 FY 24 3.0% | ww
Slide 10: Income Statement
Income Statement (INR Cr.) Particulars Q3 FY25 Q3 FY24 YoY Change Q3 FY25 Q2 FY25 QoQ Change Revenue from Operations 281 214 31.1% 281 275 2.1% Cost of Goods Sold 176 135 30.1% 176 174 1.3% Gross Margin 105 79 32.8% 105 101 3.5% Gross Margin (%) 37.3% 36.8% 48.0 37.3% 36.8% 48 bps Personnel Cost 49
Slide 11: Financial Metrics - I
Financial Metrics - I (INR Cr.) 27.2% 24.6% 10.4 10.0% 11.3% # 9.4 Asset Turn 8.8 RoCE (%) 8.3 FY 22 FY 23 * FY 24* 9MFY 25 FY 22 FY 23 FY 24 9MFY 25 306 294 164 Gross Debt Net Debt to 156 2.9 EBITDA 2.7 -0.3 0.3 Mar’22 Mar’23 Mar’24 Dec’24 FY 22 FY 23* FY 24* 9MFY 25 # RoCE is based on trailing 12
Slide 12: Financial Metrics - II
Financial Metrics - II 118 94 Trade Receivables 103 92 Inventory days 84 79 73 69 days Mar’22 Mar’23 Mar’24 Dec’24 Mar’22 Mar’23 Mar’24 Dec’24 161 126 150 46 Trade Payables 116 Capital Days Net Working 41 36 36 days Mar’22 Mar’23 Mar’24 Dec’24 Mar’22 Mar’23 Mar’24 Dec’24 NWC days are calculated on r
Slide 13: Global Customer Relationships
Global Customer Relationships Presence across Multiple Industries with a Diversified Customer Base Clean Energy Mobility / Transportation Industrials Communication Medical & Others Automotive Aerospace Power & Telecom & Digital Medical Defence & Solar Electric Hydrogen Railways Automation Satellite
Slide 14: Global Customer Relationships
Global Customer Relationships Revenue split based on Customer geography 9M FY 2025 INDIA – 42% US – 58% FY 2024 INDIA – 46% US – 54% | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 13 10
Slide 15: Industry Outlook
Industry Outlook Key Drivers Emerging sectors Rising share of EMS to drive growth manufacturing • Solar • EMS Industry CAGR1: 32.3% • Hydrogen • Industry In-house CAGR1: 21.4% • Electric Vehicles Industry Tailwinds Mfg. moving to Growing Indian US and India EMS market • “China+1” strategy • Increa
Slide 16: Industry Outlook
Industry Outlook Sizeable and Growing Global EMS Market Opportunity EMS market is poised for a robust growth across industries. India showcases unique competitive strengths India is leading the EMS growth story North America is the 2nd largest EMS market Global EMS Market India’s Market Share Chang
Slide 17: Our Growth Strategy
Our Growth Strategy Optimal Blend of Combination of Balance of Geography Today’s & Tomorrow’s Technology Profitability & Growth Customer Presence • Cater to world’s fastest growing EMS • Established businesses – • Focus on profitable growth 42% 58% markets – India & US India USA Collaborate, Grow wall
Slide 18: Avalon Group - Overview
Avalon Group - Overview
Slide 19: Avalon's varied product applications
Telecom, satellite Aircraft engine systems and digital parts infrastructure Avalon’s varied Medical devices product applications Products for defense across many end use application industries Clean energy with presence in solar, Signaling and braking hydrogen and systems for railways electric vehic
Slide 20: Our Journey So Far
Our Journey So Far Diversified Business and Strong Growth Avenues Phase 1 Phase 2 Phase 3 1999 2003 2005 2007 2009 2010 2011 2016 Today Commenced Inauguration of new Expansion of Acquired design Entry into Enhanced Fully Strategic entry production of facility in MEPZ- manufacturing capabilities Aer
Slide 21: Today
Today End-to-end Product Offering with Vertically Integrated Solutions – “One Stop Shop” Build PCB Sheet System Machining assembly metal integration Rapid prototyping 2 4 6 8 Box build Strong focus on Design & new product providing box build development solutions 46% of revenues in 9M FY25 1 3 5 7 9
Slide 22: Why Avalon
Why Avalon Our Key Differentiators Vertical Integration Global Mfg. & Delivery Clean Energy PCB Design and Analysis New Product Development PCB 12% 88% US1 India1 Assembly Cable Assembly & Wire Harnesses Magnetics 1 Sheet Metal Fremont Fabrication & , CA Chennai, Machining India 10 1 Injection Molde
Slide 23: Our Positioning
Our Positioning Avalon is Uniquely Positioned & Well Placed to Capture Growth in the EMS Industry Service offering Industry presence Diversified Design, Telecom Testing Box Clean Aerospace Vertical Aftermarket product portfolio Year and Build Energy Auto Railways & Defense Industrials (Commun Medica
Slide 24: Clean Energy
Clean Energy Avalon’s Presence in Clean Energy, a Sunrise Sector for the EMS Industry which is Poised for Robust Growth India plans to install 450GW of renewable energy capacity by 2030 Solar Rising adoption of Electric Vehicles Electric vehicles Government schemes and incentives to promote clean e
Slide 25: High Mix Products (1/2)
High Mix Products (1/2) Leaders in High Mix Flexible Volume Products across Multiple Industries High precision product offering across industries with long product development cycle & significant growth potential Long Product Lifecycle Leaders in High Mix / Flexible Mobility High Margins Volume Prod
Slide 26: High Mix Products (2/2)
High Mix Products (2/2) Examples of Presence in High Mix & Long Product Development Cycle Products Combustion liner Piston assembly for Anti-collision signaling system Aerospace fueling system Railways Industrials ▪ Assembled with 32 sheet metal child parts ▪ Intricate injection insert molding ▪ Con
Slide 27: Awards & Recognition
Awards & Recognition Numerous Awards Stand Testimony of Performance Collins Faiveley Indo – American Aerospace Transport Chamber of Commerce Best Supplier Supplier Award for Excellence Best export demonstrated Award for performance to sustained Strategic the US performance Partnership Runner-up of
Slide 28: Client Delivery Model (1/2)
Client Delivery Model (1/2) Flexibility in manufacturing and leveraging Hybrid Model Make in India Hybrid Make in US for India and Export for US Build Local Expand Global • Labour Intensive • Automation • Configuration | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 27 21
Slide 29: Client Delivery Model (2/2)
Client Delivery Model (2/2) Strong Focus on Up-selling and Cross-selling New Product Development PCB Analysis & Design Plastics Design for Manufacturing PCB Assembly Box Build Cables Assembly Prototyping Metals Magnetics | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 28 22
Slide 30: Global Manufacturing Footprint
Global Manufacturing Footprint Serve Customers Locally and Leverage Hybrid Model of Delivery Accredited with Global Quality Standards and Certifications Global manufacturing presence with state-of-the-art manufacturing facilities Atlanta, US Bengaluru, India 1 2 Chennai, India Fremont, US 10 1 Numb
Slide 31: Avalon's Manufacturing Facilities
Avalon’s Manufacturing Facilities Chennai, India Chennai, India Chennai, India Bengaluru, India Atlanta, US Bengaluru, India | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 30 47
Slide 32: Key Management Personnel
Key Management Personnel Strong Management Team with Proven Track Record of Performance and Sound Cross-functional Expertise Decades of experience in the EMS industry Instrumental in Avalon’s growth Shriram Vijayaraghavan Suresh Veerappan Kesavan P Michael Robinson Savita R Ganjigatti Chief Operatin
Slide 33: Experienced Board of Directors
Experienced Board of Directors Promoter-led Management Team and Highly Experienced Board Kunhamed Bicha Venkataramani Bhaskar Srinivasan Luquman Veedu Chairman & Managing Ediyanam Ananthramakrishnan Non-executive Director Director Independent Director Non-executive Director ▪ Promoter of Avalon Tech
Slide 34: Annexures
Annexures
Slide 35: Shareholding Pattern
Shareholding Pattern Share Information (As on December 31 2024) 5% FPI NSE Ticker AVALON Share Information BSE Ticker (As on June 30, 2023) 543896 51% NSE Market Cap (INR Cr) 6,377 Promoter group 23% % free-float 100% Public Free-float market cap (INR Cr) 6,377 Shares Outstanding 6,61,48,272 21% DII E
Slide 36: Consolidated Profit and Loss
Consolidated Profit and Loss (INR Cr.) Particulars FY21 FY22 FY23 FY24 Revenues from operations 691 841 945 867 Other income 5.4 11 15 15 Total income 696 852 959 882 Cost of raw materials consumed 436 561 614 552 Changes in inventories of finished goods, work-in-progress 20 -7 -17 1 Employee benefi
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet (INR Cr.) Assets FY21 FY22 FY23 FY24 Equity and liabilities FY21 FY22 FY23 FY24 Tangible Assets 83 91 106 124 Shareholder's equity 28 89 537 547 Right-of-use / intangible assets 21 25 37 43 Borrowings 81 74 66 53 Financial assets 4 5 5 22 Lease and Other non-current liabil
Slide 38: Overview of Products and Capabilities: Injection Molded Plastics
Overview of Products and Capabilities Injection Molded Plastics Plastics Gallery We serve our customers from the injection molding plastic business in various industries including aerospace, industrial and power | www.avalontec.com 37
Slide 39: Overview of Products and Capabilities: End-to-End Box Build
Overview of Products and Capabilities End-to-End Box Build System Integration Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 38 10
Slide 40: Overview of Products and Capabilities: PCB Assembly
Overview of Products and Capabilities Printed Circuit Board Assembly PCB Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 39 11
Slide 41: Overview of Products and Capabilities: Cable Assembly
Overview of Products and Capabilities Cable Assembly and Wire Harnesses Cables & Wire Harnesses | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 40 12
Slide 42: Overview of Products and Capabilities: Sheet Metal
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Aerospace Sheet Metal Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 41 13
Slide 43: Overview of Products and Capabilities: Sheet Metal
Overview of Products and Capabilities Sheet Metal Fabrication and Machining Sheet Metal & Machining Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 42 14
Slide 44: Overview of Products and Capabilities: Magnetics
Overview of Products and Capabilities Magnetics Magnetics Gallery | www.avalontec.com STRICTLY PRIVATE AND CONFIDENTIAL 43 15
Slide 45: Glossary
Glossary
Slide 46: Glossary
Glossary Term Description Term Description Avalon Avalon Technologies Ltd. IoT Internet of Things ATS Avalon Technologies and Services M.Com Masters in Commerce B.Com Bachelors in Commerce MA Masters in Arts B.Tech Bachelors in Technology MBA Masters in Business Administration B2B Business to Busine