Kirloskar Oil Engines Limited · NSE:KIRLOSENG
Kirloskar Oil Engines — FY2015 Earnings Presentation
17 slides from Kirloskar Oil Engines's earnings presentation, March 2015
Slide 1: Kirloskar Oil Engines Limited Earnings Update Mar 2015
Kirloskar Oil Engines Limited Earnings Update Mar 2015 Kirloskar Oil Engines Limited 1
Slide 2: Disclaimer
Disclaimer 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 regulations. Actual resul
Slide 3: Highlights for FY 2014-15 (1 of 3)
Highlights for FY 2014-15 (1 of 3) • Despite an extremely sluggish economic environment, sales for the FY 2014-15 @ Rs 2473 crores was higher than the PY by 8% • The Large Engines business successfully completed execution of the balance 5 DG sets order from NPCIL in FY 2014-15, thus completing a fla
Slide 4: Highlights for FY 2014-15 (2 of 3)
Highlights for FY 2014-15 (2 of 3) Several steps have been taken to future proof our businesses & conscious investments made. Hence despite higher sales revenue, PBT for the year was lower than previous year. Some factors that contributed to lower PBT were : • Investments in future growth opportunit
Slide 5: Highlights for FY 2014-15 (3 of 3)
Highlights for FY 2014-15 (3 of 3) • Despite lower profits as compared to the PY, some excellent work on working capital management resulted in good cash generation during the year (Rs 400 cr+). Some of the highlights : – Sustained negative operating working capital through the entire year – Invento
Slide 6: Financials
Financials All numbers in Rs. Crs Q4 Q4 ∂ FY2015 FY2014 ∂ FY2015 FY2014 Net Sales 617 632 -2% 2,473 2,287 8% Other Operating Income 11 11 2% 34 32 5% Raw Material 406 413 -2% 1,626 1,444 13% Employee Costs 44 36 24% 188 163 16% Other Expenses 127 111 15% 444 409 9% EBITDA 51 84 -39% 249 304 -18% Non
Slide 7: Q4 2014-15 Sales: Segment Performance
Q4 2014-15 Sales : Segment Performance All numbers in Rs. Crs Q4 FY2015 Q4 FY2014 ∂ PowerGen 289 265 9% Agricultural 94 94 - Industrial 97 2009 97 - Customer Support 85 81 6% Large Engines 52 94 -45% Total 617 632 -2% Kirloskar Oil Engines Limited 7
Slide 8: FY 2014-15 Sales: Segment Performance
FY 2014-15 Sales : Segment Performance All numbers in Rs. Crs YTD FY2015 YTD FY2014 ∂ PowerGen 1,097 850 29% Agricultural 404 416 -3% Industrial 383 2009 379 1% Customer Support 344 338 2% Large Engines 242 301 -20% Total 2,473 2,287 8% Kirloskar Oil Engines Limited 8
Slide 9: Key Financial Metrics
Key Financial Metrics YTD FY 2015 YTD FY 2014 EBITDA % 9.9 13.3 Inventory (Days) 22 25 Receivables (Days) 6 21 Creditors (Days) 53 57 Fixed Asset Turns 5.1 4.2 RoCE % 15.3 19.2 Operating RoCE (annualized) % 28.4 26.6 Debt - - Cash & Equivalents 902 660 Kirloskar Oil Engines Limited 9
Slide 10: A. Power Generation Business Highlights
A. Power Generation Business Highlights Sluggishness in India’s DG market continued in Q4. On an annual basis India’s DG set market for FY15 was marginally below FY14. Following are the key highlights: • The 750 kVA engine from the KOEL stable has now been developed and initial seeding quantity has
Slide 11: B. Agri Business Highlights
B. Agri Business Highlights At a macro level, Agri Business for the FY 2014-15 was affected by erratic rainfall patterns (delayed monsoon) and also improvement in rural electrification resulting in a de-growth in the diesel pump segment. However, the business has taken several steps to revive the ma
Slide 12: C. Industrial Business Highlights
C. Industrial Business Highlights Industrial business market segment witnessed a growth as compared to previous quarter (Q3FY15), however Industrial market declined by over 15% in FY15 as compared to the previous Financial year. The highights were : • Moderate recovery in the demand of material and
Slide 13: D. Customer Support Business Highlights
D. Customer Support Business Highlights The improved power situation resulting from the continued economic slowdown, has led to low usage of DG sets and consequent low service load and lower spares consumption in PG segment • Industrial & Infrastructure equipment market witnessed negative 20 % CAGR
Slide 14: E. International Business Highlights
E. International Business Highlights With a Vision of KOEL touching the world by 2025, Your Company’s International operations remains one of the key strategic focus areas and growth drivers. Some of the business highlights : • In a challenging macro-economic environment the Company’s exports regist
Slide 15: F. Large Engine Business
F. Large Engine Business The large engine business caters to a niche segment where demand is based on the launch of large government projects and defence power and propulsion requirements. Some of the business highlights were : • Five DG sets manufactured and despatched to NPCIL in FY 2014-15. With
Slide 16: G. Other matters
G. Other matters The Composite Scheme of Arrangement and Amalgamation was approved by public shareholders of the Company through Postal Ballot on 17 February 2015 pursuant to circulars of SEBI issued in this behalf and by the equity shareholders of the Company by the Court convened meeting held on 1
Slide 17: Thank You
Thank You Kirloskar Oil Engines Limited 17