Kirloskar Oil Engines Limited · NSE:KIRLOSENG
Kirloskar Oil Engines — Q2 FY2021 Earnings Presentation
20 slides from Kirloskar Oil Engines's earnings presentation, Nov 4, 2020
Slide 1: Investor Meet Presentation Q2 & H1 F.Y. 2020-21
Kirloskar Oil Engines Limited A Kirloskar Group Company Investor Meet Presentation Q2 & H1 F.Y. 2020-21 Nov 4, 2020 1
Slide 2: Presentation flow
Presentation flow Q2 & H1 Snapshot and Key highlights - Standalone Q2 Sales performance Working Capital & Cash Position Business Highlights Q2 & H1 Snapshot – Consolidated results Subsidiaries Performance Group Performance 2
Slide 3: Result Snapshot - Standalone
Result Snapshot - Standalone Q2 Results Sales EBITDA* 75.6 672 655 43.9 315 -4.5 Q2 FY 2020 Q1 FY 2021 Q2 FY 2021 Q2 FY 2020 Q1 FY 2021 Q2 FY 2021 Y-O-Y: 2.5% Q-O-Q: 108% Y-O-Y: 72% Sales H1 Results EBITDA* 1,427 970 116.5 71.0 H1 FY 2020 H1 FY 2021 H1 FY 2020 H1 FY 2021 Y-O-Y: 32% Y-O-Y: 39% *EBITD
Slide 4: Q2: Key Highlights
Q2: Key Highlights Sharp recovery seen in Q2; sales increased by 108% Q-o-Q. All businesses except Power generation business of the Company grew in Q2 on YOY basis. A number of measures taken by the Company for cost control including pay-cuts across board helped reduce Employees costs by 27%
Slide 5: KOEL Sales Q2 FY 21 vs. FY 20
KOEL Sales Q2 FY 21 vs. FY 20 Y-O-Y Q2 FY21 Q2 FY20 PG (Incl KGT & Railways) -23% 236 Crore 306 Cr Industrial 21% 143 Crore 119 Cr Customer Support 5% 111 Crore 106 Cr Q2 : Domestic vs. Exports Agriculture* 16% 133 Crore 581 Cr 74 Cr 115 Cr FY 21 89% 11% Large Engine 14% 33 Crore FY 20 90% 10% 29 Cr
Slide 6: Working Capital & Cash Position
Working Capital & Cash Position From Receivables From Inventory March’20 March’20 53 Cr 60 Cr 292 300 363 247 319 303 Sep 19 Mar 20 Sep 20 Sep 19 Mar 20 Sep 20 Payables From Cash & Equivalents From March’20 March’20 553 352 11 Cr 229 Cr 353 324 341 338 Sep 19 Mar 20 Sep 20 Sep 19 Mar 20 Sep 20 * Cas
Slide 7: A. Power Generation Business
A. Power Generation Business Q2 Business Performance • Retail, Corporate & Institutional segment indicating early signs of recovery. • Secondary sales growing month on month level. • i-Green continues to be the market leader with significant improvements in IoT activations and is getting encouraging
Slide 8: B. Agri Business Highlights
B. Agri Business Highlights Q2 Business Performance • Power Tillers sold in Q2 FY21 1694 no’s vs. 1155 no’s in Q2 FY20 . (12 HP qty in Q2 FY21 grew from Q2 FY20 by 65%) • 12HP Power Tiller SRFMTTI approved and enlisted under govt. subsidy schemes in major states. • Electric Pump sale recorded double
Slide 9: C. Industrial Business Highlights
C. Industrial Business Highlights Q2 Business Performance • Industrial engines (Off – High way), Tractor and Fire fighting segments showing strong demand; overall sale grew more than 20% over Q2 FY20. • Good demand coming from the Tractor market; sale of tractor engine in Q2 is one of the highest in
Slide 10: D. Customer Support Business Highlights
D. Customer Support Business Highlights Q2 Business Performance • Continued to Maintain Customer Delight Index (CDI) score of 90+ in Q2. • On back of increased service load & secondary consumption, Sales have grown by 5% over Q2 FY 20. • Direct online AMC ‘KOEL Bandhan’ is gaining momentum (growth o
Slide 11: E. Export Business Highlights
E. Export Business Highlights Q2 Business Performance • Export sales grew by over 8% in Q2 FY21. • Good sale growth in GCC countries and SE Asia. • All segments (excluding PowerGen) within export grew over Q2 & H1 of PY. • Almost 100% growth in FMUL engines. • First FMUL engine order from USA. 11
Slide 12: F. Large Engines Business Highlights
F. Large Engines Business Highlights Q2 Business Performance • Large Engine business saw a growth of 14% in Q2 YOY. • In fisheries boat engine segment, market share grew to 25% (PY 12%). • New defense orders received during the quarter. • All tests for Navy project (Whale) completed successfully, or
Slide 13: Result Snapshot - Consolidated
Result Snapshot - Consolidated Sales Q2 Results EBITDA* 804 817 107.5 415 54.8 10.7 Q2 FY 2020 Q1 FY 2021 Q2 FY 2021 Q2 FY 2020 Q1 FY 2021 Q2 FY 2021 Y-O-Y: 1.6% Q-O-Q: 97% Y-O-Y: 96% Q-O-Q: 902% Sales H1 Results EBITDA* 1,693 1,233 139.1 118.2 H1 FY 2020 H1 FY 2021 H1 FY 2020 H1 FY 2021 Y-O-Y: 27%
Slide 14: Performance of Subsidiaries
Performance of Subsidiaries La-Gajjar Machineries Pvt Limited (“LGM”) • Sales grew in Q2 FY21 by ~18% Y-o-Y. • Tight cost control and efficient working capital management helped improve profitability and positive cash flows. • Q2 EBITDA margin improved by ~3% Y-o-Y. • Q2 PBT margin improved by ~3% Y
Slide 15: Arka Fincap Limited
Arka Fincap Limited (Formerly known as Kirloskar Capital Limited) • Total Investment in Arka Fincap Limited as on 30th Sep 20 Rs 571.89 Cr • KOEL made Investment of Rs 45.39 Cr in ARKA during Q2. • Operations on track, cautiously treading on the development in NBFC sector. • Revenue from operation g
Slide 16: Consolidated Financials
Consolidated Financials (Includes KOEL, LGM, KOEL Americas & Arka Fincap) Q1 Q2 Q2 Incr/(Decr) Particulars ∂ FY21 FY20 FY21 Rs 415 Net Sales 804 818 14 2% 7 Other Operating Income 13 10 (3) -23% 422 Revenue from operation 817 828 11 1% 261 Raw Material 520 510 (9) -2% 57 Employee Costs 71 55 (16) -2
Slide 17: Consolidated Financials
Consolidated Financials (Includes KOEL, LGM, KOEL Americas & Arka Fincap) H1 H1 Incr/(Decr) Particulars ∂ FY20 FY21 Rs Net Sales 1,693 1,233 (460) -27% Other Operating Income 25 17 (8) -32% Revenue from operation 1,718 1,250 (468) -27% Raw Material 1,109 771 (338) -30% Employee Costs 135 113 (22) -1
Slide 18: Consolidated Financials: Segment Information
Consolidated Financials Segment Information Q1-21 Particulars Q2-20 Q2-21 H1 -20 H1 -21 SEGMENT REVENUE 267 Engines 630 594 862 1,319 104 Electric Pumps 143 163 267 302 17 Financial Services 10 23 39 19 34 Others 33 47 81 77 1 Unallocated 1 0 1 1 422 REVENUE FROM OPERATIONS 817 828 1,250 1,718 SEGME
Slide 19: Disclaimer & Safe Harbor Statement
Disclaimer & Safe Harbor Statement Statements in this presentation, particularly those which relate to management’s views and analysis, describing the Company’s objectives, projections, estimates and expectations may constitute “forward looking statements” within the meaning of applicable laws and r
Slide 20: Thank You
Thank You EA a ia c g
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