Ifb Industries Ltd · NSE:IFBIND
Ifb Industries — Q2 FY2023-24 Earnings Presentation
52 slides from Ifb Industries's earnings presentation, Nov 9, 2023
Slide 1: Cover letter to stock exchanges
Frt If'lI Industries Limited t' Corporale Offrce I Plot No. jND:s, sector- ! East Celcutta Township,Kolkata-700'107 Telephone : (91 ) (33) 39849475/9s24 9th November,2023 Fax : (91 ) (33) 39849676 Web : www.ilbindustries.com The Manager Department of Corporate Services Bombay Stock Exchange Ltd, Phi
Slide 2: Financial Report Quarter and Half Year Ended 30th September 2023
nilIl IIB lndustries Limited Financial Report Quarter and Half Year Ended SOth September, 7023, @ tr ? F
Slide 3: Trend for the Quarter
2 Trerd for the Quarter Total Revenue {t in Crore) Operatlng PTofiVEBITDA 6t tn Crore) FY FY FY FY FY FY FY FY FY FY '19-'20 '20-'21 '21-'22 '22-'23 '23-24 '19-'20 '20-'21 '2'-a-'22 '22-',23 '25-'24 lqt *oz Free Cashflow 6 Months September (t in Crore) FY FY FY FY FY 'r 9-?0 '20'-'21 '21-'22 '22-'23
Slide 4: Parameters of Q2 FY 2023-24
2 Parameters of Q2 FY 2023-24 {{ in Crore) Crowth/de-grov'rth have been calculated in comparison with the coresponding period of last year *Annualised losl
Slide 5: Financial Summary of IFB Industries Ltd Q2 FY'24
Financlal Report-Quarter and Half Year Ended SOth Septemfu1'Z}Z5- Financial Summary of IFB lndustries Ltd-Q2 FY'24 (t in Crore) 'Farticu!*rE a4 fFY 23-tz:4t A:2 {Fr 22:2s' vrCI {FY'?3'-241\/TD (rV 22-2$' , Revenue 1,074.17 1,101.92 7,136.97 2,',1 s].19 Eelrna 74.83 73.98 l'15.s1 112.47 EBITDA o/o on
Slide 6: Borrowing Position
2 Borrowing Position Total bonowing was tl36.12 Crore as on Quarter end date including tern loan amount of t85.23 Crore. Break-up of bonowings is as follows: Borowing (? in Crore) ii,::, 1,.:': 'l 1 r..r;,: r:iit ': ECB" 43.57 Standard Chartered AC Proiect Five Years Rupee Term Loan 9,96 Federal Ban
Slide 7: Cash and Bank Balances including Mutual Funds
2 Available Fund Ealances Against the aforesaid bonowing, as on 30th September'23, our Cash and Bank Balances {including investments in Mutual Funds)were at t252.65 Crore. Hence the Company's net Cash Balance was positive after considering its overall debt position. The break up of the same is given
Slide 8: Refrigerator Plant in Pune, Ranjangaon (Phase III)
ffi Refrigerator Plant in Pune, Ranjangaon (Phase lll) IFB lndustries Limited invested {97 Crore in its associate company, IFB Refrigeration Limited (IFBRL) and thereby currently halds M.44olo of total equity, The Plant has come up well & went into commercial production in May'25, Branch set-up proc
Slide 9: Business Update: Home Appliances Division
? Business Update Home Appliances Division Sales continued to be lower than expectations in the Q2 period. However, we believe that the overall demand scenario in the medium term will remain stable. For the Company, our focus continues to be on expanding our presence in the channel networks led thro
Slide 10: IFB Points store network
2 The new design for IFB Points has been expanded to -I50 stores. We are running this program for changeover of all existing stores to the new design-and this will be completed by the end of this fiscal year. The IFB Point count is at 505 stores as on date. We continue to run a program for selected
Slide 11: Market Conditions: Engineering Division
2 Market Conditions Engineering Division The business environment in Q2 FY'23-'24 witnessed an improvement in selected segments- . As far as the demand for 4Ws was concerned, all OEMs posted higher numbers as compared to Q2 af '22-'23. The 4W is expected to increase substantially on account of the c
Slide 12: Range of Products (Home Appliances Division)
Financial Report-Quarter and Half Year Ended 3oth September, 2023 RANGE OF PRODUCTS (Home Appliances Division) a The Division's range of products covers both Domestic ancl lndustrial Appliances The updates for each of the prodLrct categories are given below: . Front Load Washing Machines The range h
Slide 13: Front Load and Washer Dryer Refreshers
2 The second action point for ma*et share increase is on the sales process front. This is in areas of product availability and placements which are being driven through channel expansion, adequate manning and a drive on extraction from the distribution neh,vork as well as increase in revenue shares
Slide 14: Top Load Washing Machines and Clothes Dryers
2 . Top Load Washing Machines Our models with Bullt-in heaters and Steam-enabled wash progrars are performing well in their cunent market position, The demand for higher capacity models has been increasing consistently over the past two years, with a focus on expanding placements and increasing cust
Slide 15: Industrial Laundry and Dishwashing Equipment
2 . lndustrial Segments, Laundry and Dishwashing Equipment IFB offers a comprehensive solution for all aspects of a commercial laundry setup. Our teams comprehend customer needs in layout preparations, installations and post-waranty AMC Supports. These are applied to customers from various verticals
Slide 16: Microwave Ovens
Financial Report-Quarter and Half Year Ended 30th September, 2O23 . Microwave Ovens a IFB renrains among the top three dominant players in the 2nd Quarter of FY'23, closely touching the No 2 posirion. This fiscal year's key delivery targets include completing development, introducing the right model
Slide 17: Built-in Ovens, Dishwasher, Chimneys and Hobs
2 . Built-in Ovens, Built !n Dishwasher, Built ln MW, Chimneys and Hobs The Built-in Kitchen Appliances segment generated {6.54 Crore in Q2 FY 2A23-74. Our focus is to achieve a monthly growth of {5 Crore through proper product placement, display and manning at key counters. ln Q2, we plan to introd
Slide 18: Dishwashers
2 . Dishwashers The Domestic Dishwasher segment has seen a reduction in demand from the previous Quarters. The market drop for all brands in the 2nd Quarter of FY '23-'24 was 6000-8000 Dishwashers per month, this in a madret dominated by only three brands, including ours. ln terms of placement, we a
Slide 19: Air Conditioners
2 . Air Conditioners The product range is well received in the market and is differentiated and benchmarked to the best in the industry. Quality and performance levels have been acknowledged to be among the best-in-class, The new line up offers differentiated placement options in distribution, key a
Slide 20: Financial Summary of Home Appliances Division
2 Financial Summary of Home Appliances Division {? in Crore) Revenue 848_78 879.33 1.699.57 1,731.4e reiroa se.s4 s6.84 80.79 8s.O5 EBITDA o/o on Revenue 6.42 6.46 4.75 4.91 EBT 2s.48 is..ag 22.67 51.09 EBT % on Revenue 3.OO 5.35 l-33 1.80 ROCE 9o (Annualised) 20.s9 21..41 . This Quarter experienced
Slide 21: Engineering Division Business Updates
2 Engineering Division Business Updates o Division which derives ils C Business targeted improvement revenue mainly from the in operations through cost Domestic Auto Sector grew reduction and effciency by less than 1% in Q2 FY ?4 improvement measures which led as compared to Q2 FY'23. The to an EBIT
Slide 22: Key Financial Revenue Trend: Engineering Division
2 Key Financial-Revenue Trend-Engineering Division Revenue Trend for September Quarter Revenue Trend for YTD September (in ?/Crore) {in ?/Crore} FY'20-'2',1 FY'21-'72 FY'22-'23 FY'23-'24 F\'20-'27 F'{'21-'22 FY'22-'23 FY'23-'24 Revenue: During the quarter the topline remained flat mainly due to de-g
Slide 23: Key Financial EBITDA Trend: Engineering Division
2 Key Financial-EBITDA Trend-Engineering Division EBITDA Trend for September Quarter EBITDA Trend for YTD September (in f/Crnre) tin {/Crore} FY'20-'21 FY'71-'22 FY'22-',23 FY'23-'24 FY'20_'21 FY 2'l-',22 FY',22-23 FY',23-'24 lnspite of marginal revenue growth for the quarter and YTD basis, EBITDA h
Slide 24: Revenue Streams for Growth-Near Term
;;,,'t:;,.,'..r:r ::,t.. 1;i:il.l Revenue Streams for Growth-Near Term 'tlil.l :i , 'i,.1 i,:1'.:', I2 Existing Business To de-risk the business from the expected impact with the advent of EVs the Company's strategies ar€: l- To interact with the existing players in the domestic EV markel 2- Early e
Slide 25: Growth Strategy Long-term: M&A
2 Growtft Strategy Long-term: M&A The Division submitted unsuccessful acquisition bids for stamping companies in Indonesia and Delhi, which produce automotive components. The Division is actively seeking additional opportunities and is cunently assessing potential prospects. 124l
Slide 26: Premium Customer Base
2 Premium Customer Base Revenue Contribution o/o 5rr* 9S lob t* & s # s rt rs rt * 2rt * s * 6 ElqEegEifEEggEEEElg n" *EHE**F 3gH Hie= -6 ;E The Engineering Division in lndia supplies all OEMs and Segment-analysis of IFB-Q2 2A23-24 Tier-l companies, resulting in a diverse customer base 0.8% l8% that
Slide 27: Steady Improvement in ROCE
2 Steady lmprovement in ROCE* Targeted ROCE 32a/o YTD YTD YTD yTo Dsmber'22 Meh'25 tune2, Septemb€r ?5 lmprovement in ROCE is mainly due to the following reasons: . Normalisation of capital employed . lmprovement in profitability *Annualised l26l
Slide 28: Financial Summary of the Engineering Division
2 Financial Summary of the Engineering Division {{ in Crore) Revenue 190.50 189.17 369.32 354.97 rnrrDA 28.67 23.21 sl.io 39.60 EBITDA ryo on Revenue 1s.05 12.27 13"84 r 1.16 31.62 't6.61 EBT 19.20 1 1.81 EBT % on Revenue lo,o8 6.24 8.s6 4.68 ROCE 06 za.st 16.59 . Despite low revenue growth, at'l9o
Slide 29: Q2 Vertical-wise Growth
Q2 Ve*isal-wise Growth (? in Crore) 2 Revenue FBD Stamping After Market Total Engineering Crorth YOY -2lo/t' 1@ tillr 'll, FY23 Fv24 FY23 FY24 FY23 FY24 FY23 FY24 EBITDA 1@ 2oo/o 1@ Crowdr YOY F\23 FY24 FY23 FY24 @23 FY F'{ 24 F\ 23 FY 24 l28t
Slide 30: H1 FY 2023-24 Vertical-wise Growth
Ht FY 2O23-24: Vertical-wise Growth ({ in Crore} 2 Revenue FBD Stamping After Market Total Engineering Growth YOY -,.'; .', ' '.iii:. 'i.'. t-,( 23 Fy 24 x23 FY24 FY25 FY24 FY23 FY24 EBITDA 6rmth YOY (@ 24D/o (@ ri Llir. F\23 FY24 FY23 FY24 FY 25 r-t 24 FY23 FY24 l2el
Slide 31: Quarterly and YTD Results
Quarterly Results-Qz IFY 2A23-241 (t in Crore) 2 Revenue EBITDA EBT FY23 Fv24 Fy23 FY24 FY23 FY24 YQY 638/o YTD Results-Hl (FY 2023-24, Revenue EBITDA EBT :l;/;.tJ ," 1:lt ti;: FY23 FY24 FY23 FY24 Fv23 FY24 YOY 4ol" YOY 29olo YOY 900io l50l
Slide 32: Motor Division
2 Motor Division Appliance Motor Sales are not reported separately as it is an internal sale to Home Appliance Division. Once the new BLDC motor line begins production, we will also be selling to other external companies. The Divisions revenue did not grow as anticipated due to delays in implementin
Slide 33: BLDC motor production lines
kF..H '3 Tlre Appliances Motor Division is investing in production lines to produce next-generation BLDC motors. The new lines will produce one million Waslring Machine and Air Conditioner motors, with the capacity to meet the growing demand for these essential appliances. Washing Machine motor manu
Slide 34: Financial Summary of Automotive Motor Division
2 Financial Summary of Automotive Motor Division (? in Crore) Revenue 1s.44 18.85 31.78 37.57 EBITDA -o.21 o.94 0.13 2.26 EgtfOl go on Revenue -1.36 4.gg o.<t 6.O2 EBT -o.ss o.s8 -o.sa 1-s2 EBT o/o on Revenue -5.s8 3.O7 -1.83 4.06 . During Q2 of FY'24,the Automotive Motor Division's revenue shown a
Slide 35: Financial Summary of Steel Division
2 Financial Summary of Steel Divislon (? in Crore) Revenue from Operations 37.67 37.76 75.35 74_74 EBITDA -0.01 1.to -0.29 1.66 EBITDA 9o on Revenue -o.o5 2.91 -0.38 2.22 EBT -1.'l s o_62 -2.39 0.70 EBT 9o on Revenue -3_Os 1_6s -3.18 4.93 . During 2nd Quarter FY '23-'24, total Sales was 4454 MT comp
Slide 36: Global Automotive and Appliances Pte Ltd (GAAL)
IFB lndustries Limited, the Holding Company, has one wholly owned subsidiary GlobalAutomotive and Appliances Pte Ltd (CAAL), and one step-down subsidiary, ThaiAutomotive and Appliances Limited (TAAL) Global Automotive and Appliances Pte Ltd (GAAL) (? in Crore) Revenue from Operations 18.05 1o.70 55.
Slide 37: Thai Automotive and Appliances Limited (TAAL)
2 Thai Automotive and Appliances Limited (TAALI ({ in Crore) Revenue 15.35 1 1.15 29.16 20.54 EBITDA o.24 o.56 o.G'l 0.80 EBITDA 9o on Revenue 1.57 s.03 7.O9 5.89 EBT -o.40 -o.o'l -0.61 -o.56 EBT o/o on Revenue -2.6'l -o,09 -2.O9 ,1,7s TAAL is engaged in manufacturing Auto Components through Fine Bl
Slide 38: Note on current status after take over
2 Note on current status after take over l37l
Slide 39: Note on Acquisition of Ramson
Note on Acquisition of Ramson . lndustrial Laundry manufacturing business was acquired from Ramson on I 8 October, 2018. . Due to the Pandemic our business was severely impacted as hotels, railway, institutions were all closed in FY '20-'21 and also FY'21-'72. . We have been receiving high value ord
Slide 40: Note on Stamping Division Takeover
2 Note on Stamping Division Takeover . IFB lndustries Ltd acquired IFB Automotive Pvt, Ltd's Stamping Division in October 2Ol9 to establish its Engineering Division as a comprehensive one-stop shop for automobile components. . Performance Progress: - Revenue of Stamping Division is on the increasing
Slide 41: Note on Acquisition of Steel, Trishan Metal
2 Note on Acquisition of Steel, Trishan Metal . 5'lo/a of equity of Trishan Metals Pvt Ltd {Manufacturer of Cold Rolled Strips} was acquired by IFBIL in July, 2016. Remaining 49olo was acquired on 31 Octob er,2O2O. Finally it got amalgamated with IFBIL with elTect from 1 April, 2O21 as per the order
Slide 42: Financial highlights of Steel Division
$#,kb ;i Financial highlights are summarised below ({ in Crore) Revenue {/Crore 74.38 I 19.54 72.',,',| 71.26 1't6_72 135.57 37.67 75.35 EBITDA ?/Crore -1.12 -o.11 -1.I 9 -0.I9 0,93 2.97 -o,ol -o.29 EBITDA Percentage -t.51 -0.09 -1,65 -o.27 0.80 2.19 -0.03 -0.38 PBT {/Crore -3.69 -3.18 -4.14 -2.65 -
Slide 43: Note on Automotive Motor Division Takeover
2 Note on Automotive Motor Division Takeover ln October 2019, lFB lndustries' Motor Division acquired IFB Automotive Pvt. Ltd's Automotive Motor Division. The rationale for acquiring the Automotive business was to bring in synergy between the two Divisions which could result in substantial cost savi
Slide 44: Standalone Income Statement QTR
2 STANDALONE INCOME STATEMENT QTR (? in Crore) Total Sale of Products 1.289_98 't,336.96 Less: Trade Scheme and Discounts 278.1'l 292.15 Net Sales 1,o10.86 1,044.81 Sale of Services 34."8 26.61 Other Operating Revenues 22.92 26.O7 Revenue from 0perations 1058.06 7097.47 Other lncome 6.06 4.47 Total
Slide 45: Standalone Balance Sheet
2 STANDALONE BALANCE SHEET ({ in Crore} Key lndices as on. 5O Ssptcmber,2O25 ASSETS Property, Plant and Equipment' 673.08 661.88 lnvestment in Subsidiaries and an Associate r18.60 21.60 lnvestment in Equity Shares 2.25 2.25 lnventories 568.84 66].4'l lnvestment in Mutual Funds 149.63 237.57 Trade Re
Slide 46: Standalone Key Ratios
STANDALONE KEY RATIOS YTD I2 QTR Key Ratios as on 3O Septamber, 2O23 Earnings Per Share (in {) (Not Annualised) 7.08 5.97 7.73 6.46 Book Value Per Share {in {) 169.66 163.49 169.66 't63-49 t,lt )l :r. it aJ,' Curent Ratio (#) 1.OS 1.17 1.09 1.17 I i. :i': Quick Ratio (#) 0.62 o.66 o.62 o.66 EBITDA,/
Slide 47: Standalone Cashflow Statement YTD
2 STAN DALONE CASHFLOW STATEM ENT YTD ({ in Crore} Position as on 3O Scptambsr,2O25 CASH FLOWS FROM OPERATING ACTIVITIES Profit Before Tax 41.75 41.22 Non-Cash and Other Adiustments 63.s5 61.81 Operating Profit Before Working Capital Changes lo5.to 103.03 Movement in Working Capital 85_O5 38.70 Cash
Slide 48: Consolidated Income Statement QTR
2 CONSOLIDATED INCOME STATEMENT QTR (? in Crore) Total Sale of Products 1,321.26 1,s57.36 Less: Trade Scheme and Discounts 278.11 292.15 Net Sales rg43,r5 1,065.2t Sale of Services 34.78 26.62 Other Operating Revenues 23.47 26.45 Revenue From Operations rrqt-90 rrr8.28 Total lncome I 1123.37 EBITDA
Slide 49: Consolidated Highlights
2 CONSOLI DATED HIGHLICHTS ({ in Crore) Q2 (23-24) Q2 (22-231 Total lncome 1',t06.98 1123.37 Earning Before Depreciation, lnterest and Tax 68.65 74.6'l Earning Before lnterest and Tax 38_30 45.58 Profit Before Tax 31.38 38.18 Profit After Tax 21.53 24.12 Eamings Per Share {t} {Not Annualised} 5.31 5
Slide 50: Consolidated Balance Sheet
2 CONSOLIDATED BALANCE SHEET (? in Crore) Key lndices as on 3O Ssptemb€r, 2O23 ASSETS Property, Plant and Equipment' 698.28 715.69 lnvestment in Equity Shares 84.69 96.84 lnventories 572.73 573.O9 lnvestment in Mutual Funds 149.63 89.15 Trade Receivables 4",7.49 413.37 Cash and Bank Balances 108.48
Slide 51: Thank You
-€d'..*" Thank You l l : .. . ' i '. i ' ! * ' : , This presentation contai ns statements which reJlect the Manage me nt's cu nent views -1 and estimates and nay be construe d as f orward-looki ng in nature" The future involves certa:r risks and uncertainties that may tause actual results ta differ
Slide 52: Over Million Satisfied Customers
OVER 7 MILUON SATISFIED CUSTOMERS I Microwave Oven Euiltin Oven ff Dishwasher 0C & FF Relrigerators Chimney I Buillin+{ob Top Load Washer Front load Washer l(}(M Clothes Dryer Air hnditioner Contaet Prabir Chatterjee Director and Chief Financial Oficer Phone +91 3339849475/9524 Mobile +91 9331648802