Remsons Industries Limited · NSE:REMSONSIND
Remsons Industries — Q1 FY2025 Earnings Presentation
46 slides from Remsons Industries's earnings presentation, Aug 14, 2024
Slide 1: Stock exchange cover letter for investor presentation
14th August, 2024 To, To, The Manager The Manager – Listing Department of Corporate Services National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, ‘G’ Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai - 400 001 Bandra (East), Mumbai – 400 051 Scri
Slide 2: Investor Presentation Q1FY25
INVESTOR PRESENTATION Q1FY25
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Remsons Industries Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation, or invitation to purchase or subscribe for any securities and shall not
Slide 4: Table of Content
Table of Content 1. Business Overview & Financials 4-25 2. Product Portfolio 26-32 3. Annexures 33-41
Slide 5: Remsons: Decades of Excellence
Remsons: 5 Decades of Excellence Preferred supplier of high precision components to two, three, and four-wheeler vehicles, commercial vehicles, and off-highway vehicles. o Pioneers in the industry, India’s first Control Cables manufacturers 12% ROE o >1,50,00,000 cables fitted across all segments (F
Slide 6: Bharat Mobility Global Expo, 2024
Bharat Mobility Global Expo, 2024 Remsons was honored to be selected as one of the 2 companies from a pool of 600 participants in Auto Ancillary space, proudly showcasing our cutting-edge products, including the Tyre Mobility Kit, Sensors for automobiles, Infotainment System, and Automotive Lighting
Slide 7: Management Commentary on 1QFY25 Results
Management Commentary on 1QFY25 Results “I am pleased to announce that Remsons Industries has commenced FY25 with a strong performance. Remsons 1QFY25 growth was in line with expectations our revenue grew 5% YoY, reaching Rs 765Mn . EBITDA for the quarter stood at INR 65Mn while achieving margin of
Slide 8: Major Operational Highlights of 1QFY25
Major Operational Highlights of 1QFY25 Remsons Industries bagged fourth order from Tata Motors for the supply of winches used for spare wheel. The company is currently supplying winches to successful models like Tigor, Altroz and Punch and the recent order is received for its new model Tata Nexon
Slide 9: Established Base; High Growth Trajectory
Established Base; High Growth Trajectory Net Revenue (Rs Mn) Remsons 1.0 o Established a strong cable business 3X jump in Revenue over the next three years o Built Loyal Customer Base with OEM’s ~9,000-10,000 o Diversified Portfolio preferred supplier across category of vehicles. o Survived the indu
Slide 10: Global and Diversified Business Model
Global and Diversified Business Model Revenue Split by Geography Revenue Split by Delivery Aftermarket 11% Rest of World 34% Sales Sales 1QFY25 1QFY25 India 66% OEM 89% • A global business model thriving on customer-centricity, digital prowess, and strategic efficiency, cultivating key relationships
Slide 11: Cable Chronicles: Remsons Odyssey in the Auto Value Chain
Cable Chronicles: Remsons Odyssey in the Auto Value Chain 2 Wheeler Commercial Wheeler • Brake- Front, Rear, Combi • Parking Brake Cable • Accelerator Cable • Bonnet Release Cables • Clutch Cable • Gear Shifter with Cables • Speedometer Cable • Cabin Storage Cables • Clutch / PKB Cable • Bottle Jack
Slide 12: Engineering driven, vertically integrated OEM
Engineering driven, vertically integrated OEM In-house manufacturing, validation and design Concept How we do it? Design How we do it? Product Support o Market LEAN Model Approach o Design Integration Kaizen Activities o Failure Mode & Effect intelligence/application o Resource o Eliminating Waste A
Slide 13: Strong Balance Sheet to support future growth
Strong Balance Sheet to support future growth ROCE & ROE Net Debt to Equity (x) 24% 2.10 22% 1.91 21% 20%20% 16% 16%16% 1.46 15% 15% 1.19 12% 1.10 7% 0.11 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 ROCE ROE Dividends Paid 1.5 1.5 1.5 1.5 • FY21 Debt Surge attributed to Magal Cables,
Slide 14: Maintaining Resilience: Strong Position Amid Market Headwinds
Maintaining Resilience: Strong Position Amid Market Headwinds The Automotive Industry has faced several challenges in the recent years…. Geopolitical Transition into High Labor Cost issues EV has its own Increase & challenges. Shortage High Inflation Red Sea Crisis Rising Input Cost since Oct 2023 1
Slide 15: Remsons Approach to Staying Resilient
Remsons Approach to Staying Resilient Growth Drivers Geographical Revenue Structure (INR mn) Domestic Sales Exports 2,810 2,674 2,557 1,992 Our presence across Expansion into New all sectors of the auto Technology Products industry 1,344 1,284 Foray into HCV 504 Segment with Organic and 449 308 318
Slide 16: 1QFY25 Consolidated Key Result Highlights
1QFY25 Consolidated Key Result Highlights Revenue (Rs Mn) EBITDA (Rs Mn) 5% -2% 66 728 765 YoY 65 YoY • Remsons 1QFY25 growth was in line with expectations revenue grew 5% yoy, reaching Rs 765Mn,driven by better 1QFY24 1QFY25 production volumes, increase in 1QFY24 1QFY25 U.K. sales and inclusion of
Slide 17: Our Rapid Growth Milestone
Our Rapid Growth Milestone CAGR CAGR Net Revenue (Rs Mn) 29% EBITDA (Rs Mn) & EBITDA Margin % 16% 3,128 3,123 10% 2,865 8% 8% 2,262 7% 7% 6% 1,494 1,592 4% 765 88 114 102 202 260 310 65 FY19 FY20 FY21 FY22 FY23 FY24 1QFY25 FY19 FY20 FY21 FY22 FY23 FY24 1QFY25 EBITDA EBITDA Margin CAGR PAT (Rs Mn) &
Slide 18: Consolidated 1Q FY25 Financial Performance
Consolidated 1Q FY25 Financial Performance Particulars (Rs in Mn) 1QFY25 1QFY24 YoY% 4QFY24 QoQ% FY24 Revenue from Operations 765 728 5% 810 -6% 3,123 EBITDA 65 66 -2% 78 -17% 310 EBITDA Margin % 8% 9% -61bps 10% -119bps 10% Depreciation 30 25 16% 29 1% 110 Earnings Before Interest & Tax 35 41 -13%
Slide 19: Standalone 1QFY25 Financial Performance
Standalone 1QFY25 Financial Performance Particulars (Rs in Mn) 1QFY25 1QFY24 YoY% 4QFY24 QoQ% FY24 Revenue from Operations 613 599 2% 645 -5% 2,570 EBITDA 46 48 -3% 48 -4% 232 EBITDA Margin % 8% 8% -44bps 8% 4bps 9% Depreciation 21 18 16% 21 -1% 78 Earnings Before Interest & Tax 25 30 -15% 27 -7% 15
Slide 20: Consolidated Historical Income Statement
Consolidated Historical Income Statement FYE March (Rs Mn) FY21 FY22 FY23 FY24 Revenue from Operations 2,262 2,865 3,128 3,123 EBITDA 102 202 260 312 EBITDA Margin 4% 7% 8% 10% Depreciation 44 79 91 110 EBIT 58 123 168 202 EBIT Margin 3% 4% 5% 6% Finance Cost 35 64 63 68 Other Income 24 7 16 33 Exce
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet FYE March (Rs Mn) FY21 FY22 FY23 FY24 FYE March (Rs Mn) FY21 FY22 FY23 FY24 Assets Equity and Liabilities Non‐Current Assets Shareholders funds Fixed Assets 317 344 407 424 Share Capital 57 57 57 70 Right to use assets 88 69 49 70 Reserves and Surplus 240 288 366 1,043 Int
Slide 22: Strong Global Footprint
Strong Global Footprint REMSONS INDUSTRIES LIMITED United Kingdom yA Application Support & Marketing Office France i 4 Mexico USA Germany Gurgaon Austria ae — Sweden India Italy Spain Turkey Woamnan, para Singapore Mumbai Nepal Sri Lanka Bangladesh Brazil Kenya Bhutan Application Support Office: @ H
Slide 23: Expanding Manufacturing Footprint
Expanding Manufacturing Footprint • Acquired Magal Cables, UK in 2020 which was our existing client. • The unit specializes in the production of Control Cables, Pedal Boxes, Winches, Jacks and Gear Shifters. • Got an access to cater to marquee global clients. • Secured at a cost-effective valuation,
Slide 24: Largely EV Agnostic Product Portfolio
Largely EV Agnostic Product Portfolio Push Pull Cables Handle Assembly Auto Adjust Clutch Cable Jacks Parking Break Assembly Winch Assembly Gear Shift System Pedal Box 23
Slide 25: Shift in Industry Trends
Shift in Industry Trends Rising population of Electrification young and HNI’s Government Policies Premiumisation and feature laden vehicles Green Mobility 24
Slide 26: We are observing and enhancing our Product Portfolio
We are observing and enhancing our Product Portfolio From India’s leading cable car manufacturer, We aim to Cash Flow diversify further Management JV’s & Collaborations Improved Margins Global Partnerships Tyre Mobility Sensors Asset Light Infotainment In-house Execution 25
Slide 27: Our Foray into Tyre Mobility Kit
Our Foray into Tyre Mobility Kit • Entered into exclusive JV with Aircom Group, Poland, wherein Remsons has 26% stake. • The kit effectively replaces the need of a regular spare wheel. • A further journey could be continued for 1000 kilometers with a maximum speed of 80km/h (50mph). • High growth op
Slide 28: JV with DAIICHI for Automotive Electronics
JV with DAIICHI for Automotive Electronics India’s automotive electronics market is likely to cross $18 billion by 2027 from $ 6 billion in 2020 with a CAGR of 17%, with average electronic component cost per passenger vehicle projected to reach nearly INR200,000 by 2027. • 50:50 JV with Daiichi, par
Slide 29: Acquisition of Uni Automation Sensors & Embedded Technologies
Acquisition of Uni Automation SENSORS & Embedded Technologies • Majority Shareholding in Uni-Automation, a Sensor Manufacturing Company. • Uni-Automation is established Since 1985 • In-House Design, Manufacturing, Validation, Software Development • Industry Leading 10,000 Clean Room. Automotive 28
Slide 30: Sectoral Tailwinds to Support Future Growth
Sectoral Tailwinds to Support Future Growth Total Vehicles Produced in India 2,84,34,742 2,63,53,293 2,59,40,344 • India is projected to be one of the largest global 2,26,55,609 2,30,40,066 automotive and mobility hub. • In India, only 29 out of 1000 people own a car, compared to 226 in China and 58
Slide 31: Cables
Cables Our diverse cable portfolio offers an eco-friendly alternative for Diverse Cable Portfolio: elevated passenger travel. Harnessing innovative technology, these cables pave the way for sustainable and efficient means Parking Break Cable ,Clutch Cable, Hood Release Cable of commuting above groun
Slide 32: Push Pull Cables
Push Pull Cables In-house validation ensures the excellence of our push-pull • Integrated Design & Manufacture Capability cables. We specialize in crafting these cables, offering swift solutions with quick-fix end fittings. • Design of Push Pull Cables ranging from Conduit Dia 3 MM To Dia 18 MM • He
Slide 33: Brake Mechanism
Brake Mechanism Parking Brake Mechanism Combi Brake Mechanism This product is designed to meet customers This product activates both the front and rear brakes mechanical needs to ensure good braking simultaneously. Besides, when the rear brake is performance and aesthetic integration with car’s pres
Slide 34: Gear Shift Systems
Gear Shift Systems We offer comprehensive shifter systems, encompassing • Complete Assembly with Cables. style elements (bezel, boot, knobs) to gearbox • From The Style (bezel, boot, and knobs) to the lever, components (levers, cables, and brackets), tailored to cables and brackets located in the Ge
Slide 35: Winches
Winches Develop and supply innovative winches that help to solve the problem of lifting the under-floor spare wheel. It requires minimal effort to stow or lift heavy wheels with these winches. • One of the first companies to solve the problem of Under-Floor Spare Wheel Lift and Storage. • As a pione
Slide 36: Jack Kit
Jack Kit A comprehensive product which is available in traditional steel and aluminum with lightweight plastic components. • Lifting components for many Non-Automotive Applications. • Wide Ranging Puncture Management Equipment, including Jacks, Wrenches, Tool Kits And Stowage Systems. • Available in
Slide 37: Pedal Box Assembly
Pedal Box Assembly We design, develop and supply accelerator, brake and clutch pedals, either as individual components or as combined assemblies. This product proves to be very efficient and easy to use. • Capability to design, develop & supply Accelerator Brake and Clutch Pedals, either as individu
Slide 38: Our Milestone And Way Forward
Our Milestone And Way Forward o Remsons Ltd originated as a o Pioneering control o Indigenously o Indigenously trading company cables and pressure die- manufactured gear shift manufactured dash cast cable ends in India, with cables in India mounted park brake and we led the way. push pull cables 196
Slide 39: Management Profile
Management Profile Krishna Kejriwal Management Chairman &MD Krishna Kejriwal Rahul Kejriwal Amit Srivastava Chairman &MD Whole-Time Director CEO Sales • Science graduate, from University of • He has ~20 years of experience in the field of • A seasoned professional has~30 years' experience Bangalore
Slide 40: Leading Partnerships Fuelling Our Growth
Leading Partnerships Fuelling Our Growth 39
Slide 41: Remsons Quality Certifications
Remsons Quality Certifications 40
Slide 42: Recognitions And Honors: Celebrating Our Wins
Recognitions And Honors: Celebrating Our Wins 41
Slide 43: Sustainability
Sustainability GOLD RATING OF MEMBER OF THE UN CORPORATE SOCIAL GENERATION OF 500 SUSTAINABILITY GLOBAL COMPACT RESPONSIBILITY – AWARD 2023 KVA PER MONTH. This result places our company among The Ten Principles of the In keeping with the efforts of the top 5% percent of companies United Nations Glob
Slide 44: Corporate Social Responsibilities - Activities
Corporate Social Responsibilities - Activities • Dignity Project –Distributing Menstrual kits to 600 Girls in School • Meri Pathshala – Revamping Projects in Rural Schools • Clean Water Project – Leprosy Ashram • Mid-Day Meal Sponsor – 400 Students per year • Computer Donations in Schools • Health C
Slide 45: Great Place To Work Certified
Great Place To Work Certified Ranking: Top 25 India’s Best Building a Culture of Innovation by all 44
Slide 46: For further information, please contact
For further information, please contact: Saloni Ajmera Tel: +91-99305 77801 Email: saloni@goindiaadvisors.com Remsons Industries Limited Sheetal Khanduja Tel: +91-22 3501 6400 Tel: +91-97693 64166 Email: corporate@remsons.com Email: sheetal@goindiaadvisors.com www.goindiaadvisors.com www.remsons.com