Slide 1: Exchange cover letter: Press Release and Investor Presentation
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2021-22/61 February 14, 2022 To, The Manager- Listi
Slide 2: Press Release
Varroc Engineering Limited L-4, MIDC, Industrial Area Waluj, Aurangabad 431 136 Maharashtra, India CIN: U28920MH1988PLC047335 | Tel + 91 240 6653700 | www.varroc.com Press Release Consolidated Revenue from Operations improved 3.4% QoQ, VLS revenue (in Euros) increased by 10.7% QoQ and India revenu
Slide 3: China JV, Project RACE and About Varroc
China JV China JV Revenue improved by 23% QoQ. Our share of the China JV EBITDA was at ₹ 177 Million with margin at 8.4% Depreciation and Amortisation Depreciation and Amortisation expenses were at ₹ 2,535 million. Finance Cost Finance cost for the quarter was at ₹ 737 million, including mark-
Slide 4: Financial Results Q3 FY22
Click to edit Master title style Varroc Engineering Limited Financial Results Q3 FY22 ::February 14, 2022::
Slide 5: Disclaimers
Disclaimers Click to edit Master title style This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business developme
Slide 6: Industry Trends Q3 FY22
4 sequential Industry Trends Q3 FY22 – both Global PV & India 2W/3W volumes still to recover Click to edit Master title style -15% -8% +35% quarters Global Passenger Vehicle Production Volume 4.6m 3.6m 7.4m 4.2m 3.2m 3.3m 3.9m 3m 5.9m PV volumes in Q3 showed some 5.5m 5.3m 3.1m recovery as compare
Slide 7: Business Highlights: Q3 FY22
Business Highlights: Q3 FY22 Click to edit Master title style Consolidated revenue increased 3.4% QoQ, constrained by continuing semiconductor shortage, soft 2W demand and Euro weakness. Consolidated EBITDA margin improved QoQ by 220 bps. India Business: EBITDA margin declined marginally to 9.
Slide 8: Varroc Group: Financial Performance
Varroc Group: Financial Performance Click to edit Master title style Particulars Q3 FY22 Q2 FY22 Q3 FY21 Growth Growth 9M FY22 9M FY21 ₹ million Growth (Q-o-Q) (Y-o-Y) (Y-o-Y) Revenue from Operations - Reported 31,350 30,326 34,927 3.4% -10.2% 91,091 76,835 18.6% Other income - Operating 146 87 194
Slide 9: Varroc Group: Business Wise Performance Q3 FY22
Varroc Group: Business Wise Performance Q3 FY22 Click to edit Master title style ₹ million Q3 FY22 Q3 FY21 Revenue Q2 FY22 SBU Change YoY Revenue Revenue EBITDA* % EBITDA Revenue EBITDA* % EBITDA Revenue EBITDA* % EBITDA Change QoQ India Business 12,150 1,201 9.9% 11,911 1,588 13.3% 2.0% 12,686 1,34
Slide 10: VLS: QoQ performance by plant
VLS: QoQ performance by plant Region Click to edit Master title style Production Revenue € million except otherwise mentioned Q-o-Q Y-o-Y Change % change % Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Mexico 41 33 31 31 31 -1.1% -25.7% • Revenue levels in older plants still Czech 152 146 116 92 102 11.3%
Slide 11: Revenue by Customers and Order Wins
Revenue by Customers and Order Wins Click to edit Master title style India Revenue Split by Customer(1) Q3 FY 22 % VLS Revenue Split by Customer (2) Q3 FY 22, % Revenue in Europe increased Bajaj 12.9% Customer A 8.1% QoQ. 17.4% 31.5% Honda Customer B 11.1% Customer C Revenue in Americas declined Roy
Slide 12: EV business won so far: Highlights & Updates
EV business won so far: Highlights & Updates Click to edit Master title style Industry product price expectations Total @ Installed Expected revenue in FY25 for current Component based on Capacity business based on SOB Investec Research (Rs (Rs Crs) # and industry price per 2W) * (Rs Crs) Traction m
Slide 13: Varroc Group: Business Wise Performance 9M FY22
Varroc Group: Business Wise Performance 9M FY22 Click to edit Master title style ₹ million 9M FY22 9M FY21 Revenue SBU Change YoY Revenue EBITDA* % EBITDA Revenue EBITDA % EBITDA India Business 34,316 3,277 9.6% 24,217 2,592 10.7% 41.7% VLS 55,611 (2,190) -3.9% 52,000 893 1.7% 6.9% Others (IMES) 2,0
Slide 14: Net Debt Situation Status Update and Outlook for FY22
Net Debt Situation Status Update and Outlook for FY22 Click to edit Master title style ₹ Billion Forecast Net Debt Reduction is mainly driven by : - Improved operating performance, including better working capital management - Euro weakness 11
Slide 15: Update on Current Business Environment
Update on Current Business Environment Click to edit Master title style • Current Situation • India : 2W volumes continue to be sluggish due to higher cost of ownership and soft rural demand. PV volume impacted by semiconductor shortages. Commodity prices seem to be stabilizing • VLS : some uptick s
Slide 16: Varroc Group
Click to edit Master title style Confidential - Varroc Group 13