Sona Blw Precision Forgings Ltd. · NSE:SONACOMS
Sona Blw Precision Forgings — Q3 FY24 Earnings Presentation
38 slides from Sona Blw Precision Forgings's earnings presentation, Jan 23, 2024
Slide 1: Exchange filing cover letter for investor presentation
Date: - 23rd January, 2024 BSE Ltd. National Stock Exchange of India Ltd. Regd. Office: Floor - 25, Listing Dept., Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai-400 001. Mumbai - 400 051 BSE Scrip Code: 543300 NSE Scrip: SONACOMS Subject: Invest
Slide 2: Q3 & 9M FY24 Earnings Presentation
Q3 & 9M FY24 Earnings Presentation 23 January 2024
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sona BLW Precision Forgings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for a
Slide 4: Our Management
Our Management Mr. Kiran Manohar Mr. V. Vikram Verma Deshmukh CEO, Driveline Business Group CTO Mr. Sat Mohan Gupta Mr. Rohit Nanda CEO, Motor Business Group CFO Mr. Vivek Vikram Singh Mr. Amit Mishra MD & Group CEO Head, Investor Relations 3
Slide 5: Financial Performance Highlights
Financial Performance Highlights Our net formed differential gears
Slide 6: Q3 FY24 Financial Performance Highlights
Q3 FY24 Financial Performance Highlights 7,766 mn | 13% 2,273 mn | 22% 1,327 mn | 24% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 29.3% EBITDA Margin 17.2% PAT Margin1 2,219 mn | 28% 30% BEV Revenue | YoY Growth Q3 FY24 Product Revenue Share from BEV Notes: 1. PAT margin percentage cal
Slide 7: 9M FY24 Financial Performance Highlights
9M FY24 Financial Performance Highlights 22,995 mn | 19% 6,540 mn | 32% 3,686 mn | 34% Revenue | YoY Growth EBITDA | YoY Growth PAT | YoY Growth 28.4% EBITDA Margin 16.1% PAT Margin1 CY22 CY23 CY22 CY23 7.2% 8.1% 4.1% 4.2% Global Market Share Global Market Share of Differential Gears2 of Starter Mot
Slide 8: Update on our Strategic Priorities
Update on our Strategic Priorities Net formed differential gears coming out of our forging press
Slide 9: Update on our Strategic Priorities
Update on our Strategic Priorities Electrification Global Market Diversification Technology Significance 8
Slide 10: Sizeable and Increasing Presence in EVs
Sizeable and Increasing Presence in EVs 28% 6,133 mn 31% 9M FY24 Product Revenue 9M FY24 BEV segment 9M FY24 BEV revenue Share from BEV revenue YoY growth 48 53 +5 (10+15+23)1 (10+15+28)1 EV Programs1 awarded across EV Programs1 awarded across 28 customers as at the end of 30 customers as at the end
Slide 11: Three order wins demonstrate technical prowess across powertrain architectures
These three order wins demonstrate our technical prowess to provide solutions for any powertrain architecture Integrated Epicyclic Geartrain Spool Gears Motor Controller and Rotor Shaft For Electric 2-Wheelers For Electric SUVs For Electric PVs New Customer Existing Customer Existing Customer Indian
Slide 12: 53 EV programs across 30 different customers
53 EV programs across 301 different customers No. of North America Europe2 Asia programs customers 7 Customers 5 Customers 4 Customers - 3 14 1 6 2 2 26 11 7 7 17 5 2 3 1 17 7 3 3 13 10 1 1 - 3 3 - +2 4 25 +3 Programs in fully ramped-up production India Programs in ramp-up or not yet in production 1
Slide 13: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 12
Slide 14: Net order book grows to ₹240 billion
Our net order book1 grows to ₹240 billion (9.0x FY23 revenue) 221 bn 1 bn Orders consumed from 20 bn 240 bn Orderbook at the end of Orders added for Orderbook at the end of matured and ramp-up Q2 FY24 programs won in Q3 FY24 Q3 FY24 programs during Q3 FY24 Non-EV EV Rs. 190 Billion (79%) Rs. 50 Bill
Slide 15: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 14
Slide 16: Diversified Product Revenue Mix – By Powertrain
Diversified Product Revenue Mix – By Powertrain Battery EV increasing as a % of our revenue continues to be our dominant and secular theme Our pure ICE dependence continues to reduce steadily going from 25% in FY21 to 10% in 9M FY24 FY21 FY22 FY23 9M FY24 14% 25% 26% 28% 27% 26% 21% 24% 34% 31% 38%
Slide 17: Diversified Revenue Mix
Diversified Revenue Mix By Geography By Product By Market segment 7% 1% 4% 4% 1% FY23 9M FY24 23% PV 20% 43% 15% 69% 70% FY23 FY23 CV 15% 14% 21% 32% 29% Non-Automotive 1% 1% 6% 1% 5% 4% 12% 10% 39% 22% 10% 25% E2W/E3W 9M 9M FY24 4% 5% FY24 Semiconductors 23% 33% & Embedded SW 29% 0.0% 1.0% 16
Slide 18: Our Strategic Priorities
Our Strategic Priorities Electrification Global Market Diversification Technology Significance 17
Slide 19: Introduced Integrated Motor Controller in the market
We have introduced one more product – Integrated Motor Controller – in the market Connected Zone Monitoring Intelligent Sensors 360˚ Short-range Radar Sensors Electric HV e-Axle Epicyclic Geartrain In-cabin Robotics Gears EDL Sensors HV Non-ferrous Spool Gear Reduction Motor Parts Drive Unit HV Inve
Slide 20: Integrated Motor Controller offers several benefits to customers
Integrated Motor Controller offers several benefits to the customers Integrated Motor Controller Motor + Controller Rotor + Stator + Power + SW Electronics 1 Compact Design 6 Customization and Optimization 2 Simplified Installation and Maintenance 7 Aesthetic and Space Considerations 3 Improved Effi
Slide 21: Q3 & 9M FY24 Financial Update
Q3 & 9M FY24 Financial Update Our final drive gears
Slide 22: Q3 FY24 Financials
Q3 FY24 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 22% YoY: 25% YoY: 13% YoY: 24% YoY: 28% 2,273 2,331 1,371 7,766 1,327 6,850 1,862 1,866 1,071 1,074 29.3% 30.0% 27.2% 27.2% 15.6% 17.2% 15.7% 17.8% 1,733 2,219 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24
Slide 23: 9M FY24 Financials
9M FY24 Financials Revenue (Rs. mn)1 EBITDA (Rs. mn) EBITDA Margin (%) PAT (Rs. mn) PAT Margin (%)2 BEV YoY: 32% YoY: 33% YoY: 37% YoY: 19% YoY: 34% 22,995 6,540 6,606 3,686 3,801 19,316 4,944 4,969 2,755 2,774 28.4% 28.7% 25.6% 25.7% 14.3% 16.1% 14.4% 16.6% 4,670 6,133 9M FY23 9M FY24 9M FY23 9M FY
Slide 24: Key Ratios
Key Ratios VA/Employee cost RoCE (%) RoE (%) 6.4 6.3 5.2 5.7 36.1% 36.3% 5.1 32.4% 34.6% 28.8% 30.4% 31.7% 30.4% 26.6% 27.9% Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Mar-20 Mar-21 Mar-22 Mar-23 Dec-23 Net Debt to EBITDA Working Capital Turnover Fixed Asset Turnover 4.6 5
Slide 25: ESG Update
ESG Update
Slide 26: ESG Performance Highlights
ESG Performance Highlights 14.4 Low Risk Top 9% We have published our second sustainability report Negligible Low Medium High Severe Out of 15,842 in December 2023 0-10 10-20 20-30 30-40 40+ global companies ESG Risk Rating (Core) Click on the image to read the report • 10% improvement in emissions
Slide 27: Q&A, New Product Development Discussion
Q&A New Product Development Discussion
Slide 28: Appendix
Appendix Inside view of our manufacturing plant at Manesar, Haryana
Slide 29: Our story so far…
Our story so far… Phase - 1 Phase - 2 Phase - 3 Phase - 4 • 18 Customers • 22 Customers • Acquisition of Comstar • Started journey as a public company • 2 Plants • 2 Plants • 47 Customers (37+10) • 73 customers • 1 Product • 2 Products • 9 Plants (5+4) • 9 plants • 10 Products (5+5) • 17 products Re
Slide 30: One Vision
One Vision To become one of the World’s most Respected and Valuable Mobility Technology companies for our Customers, Employees & Shareholders. 29
Slide 31: Guided by Values
Guided by Values 34.5% Agility Growth 5-year Revenue CAGR 26.8% Vitality Margins Integrity 5-year Avg. EBITDA >25% Returns Frugality ROE Each Year (FY19-FY23) 30
Slide 32: Established Global Presence to Serve Customers Locally
Established Global Presence to Serve Customers Locally USA Location Capacity3 Germany China Location Capacity3 Tecumseh, MI 1 mn starter motors Belgium Cologne Hangzhou 1 mn starter motors Ypsilanti, MI Genk 7 of the world’s top 10 PV OEMs1a Serbia Belgrade 3 of the world’s top 10 CV OEMs1b Novi Sad
Slide 33: Revenue share from BEV has grown 22x over 5 years
Revenue share from BEV has grown 22x over 5 years, with absolute BEV revenue growth at 47x Revenue from BEV (%) BEV Segment Revenue (Rs. mn) 22x 47x 9M FY24 8,177 Annualized 6,707 25% 26% 28% 5,042 14% 6,133 2,057 9M FY24 1.3% 2.0% 174 234 FY19 FY20 FY21 FY22 FY23 9M FY24 FY19 FY20 FY21 FY22 FY23 FY
Slide 34: Market Shares for Differential Gears and Starter Motors
Market Shares for Differential Gears and Starter Motors Global Market Share CY19 4.5% CY20 5.0% CY21 6.3% CY22 7.2% CY23 8.1% of Differential Gears1 Global Market Share CY19 2.5% CY20 3.0% CY21 4.6% CY22 4.1% CY23 4.2% of Starter Motors1 While we continue Passenger Vehicles Commercial Vehicles Tract
Slide 35: Electrification: Our Approach to Market
Electrification: Our Approach to Market Driveline Solutions Motor Solutions Core Strength: Core Strength: Power Rating High Torque, High Power Density EV Products Low Voltage, High Power Density Commercial Personal Personal Commercial > 600 kW 300 – 600 kW Epicyclic Spool EDL Geartrain Gears 100 – 3
Slide 36: Product Summary – Passenger Vehicles
Product Summary Passenger Vehicles 10 Spool Gears 9 Electronically Locking 13 Differential (EDL) 12 11 360° Short Range 8 Radar Sensors* 7 Reduction In-Cabin Radar 11 Epicyclic Drive Unit* Sensors* 6 1 5 Geartrain 2 4 Integrated 3 Motor Controller Intermediate Module Gears (for Predictive Active Sus
Slide 37: Product Summary – Off Highway Vehicles, Buses, LCVs
Product Summary Off Highway Vehicles Buses 6 Differential Bevel Gears Spiral Bevel Gears 5 In-Cabin Radar Sensors* 3 7 8 4 1 4 2 1 3 Portal Axle Gears 2 5 Traction Motor 360° Short Range Radar Sensors* Controller Light Commercial Vehicles /3-Wheeler (Cargo) Controller* 360° Short Range Radar Sensors
Slide 38: Product Summary – Electric 2-Wheelers, Industrial Automation
Product Summary Industrial Automation, Electric 2-Wheelers AGVs & Robots 1 Hub Wheel Motor Integrated Motor & 4 Robotics Gears* 5 1 Controller 3 360° Short Range 4 2 Radar Sensors* 360° Short Range Radar Sensors* 2 Zone Monitoring Sensors* Drive Motor 3 Bot Motors* Electric 3-Wheelers Controller Bui
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