Precision Camshafts Ltd. · NSE:PRECAM
Precision Camshafts — Q2 FY20 Earnings Presentation
53 slides from Precision Camshafts's earnings presentation, Nov 7, 2019
Slide 1: Submission of Investor Presentation to Stock Exchanges
® www.pclindia.in E3 info@pclindia.in where Passion 0& +91 217 2357645 meets Performance <!= +919168646531/32/33 PRECISION ob L24231PN1992PLCO67126 Date: November 7,2019 SEC/NOV/SE/N&B/2019 National Stock Exchange of India Limited, BSE Limited, "Exchange Plaza" 5th Floor, PhirozeJeejeebhoy Towers, P
Slide 2: Investor Presentation November 2019
Investor Presentation November 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Precision Camshafts Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Q2 & H1 FY20 Performance
Q2 & H1 FY20 Performance
Slide 5: Strong Performance
Strong Performance H1FY20 Standalone H1FY20 Consolidated 15% Total Income 19% Total Income YOY Rs. 233 Cr YOY Rs. 387 Cr 19% EBITDA 16% EBITDA YOY Rs. 56 Cr YOY Rs. 64 Cr 81% PAT 331% PAT YOY Rs. 26 Cr YOY Rs. 17 Cr 4
Slide 6: Standalone Q2FY20 Performance
Standalone Q2FY20 Performance Total Income (in Rs. Crores) EBITDA (in Rs. Crores) Includes Other Income Includes Other Income +11% +25% 112.8 28.3 101.6 22.7 Q2FY19 Q2FY20 Q2FY19 Q2FY20 EBITDA Margins PAT (in Rs. Crores) +270 bps +129% 25.1% 15.5 22.4% 6.8 Q2FY19 Q2FY20 Q2FY19 Q2FY20 5
Slide 7: Standalone H1FY20 Performance
Standalone H1FY20 Performance Total Income (in Rs. Crores) EBITDA (in Rs. Crores) Includes Other Income Includes Other Income +15% +19% 232.6 56.5 201.8 47.3 H1FY19 H1FY20 H1FY19 H1FY20 EBITDA Margins PAT (in Rs. Crores) +80 bps +81% 23.5% 24.3% 25.8 14.3 H1FY19 H1FY20 H1FY19 H1FY20 6
Slide 8: Machined Camshafts volumes continues to improve
Machined Camshafts volumes continues to improve Machined Camshafts Volumes Camshaft Castings Volumes Total Camshaft Volumes (In Thousand Units) (In Thousand Units) (In Thousand Units) +30% +2% +9% 1,229 2,639 2,692 3,921 3,587 948 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 Volume H1FY20 Volume
Slide 9: Standalone Q2FY20 Profit & Loss
Standalone Q2FY20 Profit & Loss Profit and Loss (in Rs. Crs) Q2FY20 Q2FY19 YoY H1FY20 H1FY19 YoY Revenue from Operations 108.1 97.6 10.8% 223.3 192.4 16.1% Other Income 4.7 4.0 9.3 9.4 Total Income 112.8 101.6 11.1% 232.6 201.8 15.3% Cost of Goods Sold 30.3 30.0 65.1 59.9 Gross Profit 82.5 71.5 15.4
Slide 10: Standalone Balance Sheet
Standalone Balance Sheet Assets (in Rs. Crs.) Sep-19 Mar-19 Equity & Liabilities (in Rs. Crs.) Sep-19 Mar-19 Non-Current Assets 408.7 402.0 Equity 627.9 601.9 Property,Plant & Equipment 262.3 279.4 Equity Share Capital 95.0 95.0 CWIP 9.2 8.0 Other Equity Other Intagible Assets 0.1 0.1 (i) Securities
Slide 11: Consolidated Q2FY20 Performance
Consolidated Q2FY20 Performance Total Income (in Rs. Crores) EBITDA (in Rs. Crores) Q2FY20 Revenue from Operations Includes Other Income Includes Other Income (in Rs. Crores) +11% +17% 185.3 32.6 181 166.2 27.8 19 43 Q2FY19 Q2FY20 Q2FY19 Q2FY20 108 11 EBITDA Margins PAT (in Rs. Crores) From continui
Slide 12: Consolidated H1FY20 Performance
Consolidated H1FY20 Performance Total Income (in Rs. Crores) EBITDA (in Rs. Crores) H1FY20 Revenue from Operations Includes Other Income Includes Other Income (in Rs. Crores) +19% +16% 386.8 64.4 378 325.8 55.7 49 85 H1FY19 H1FY20 H1FY19 H1FY20 223 21 EBITDA Margins PAT (in Rs. Crores) From continui
Slide 13: Domestic – Exports Mix – An Advantage
Domestic – Exports Mix – An Advantage H1FY20 Standalone Revenue H1FY20 Consolidated Revenue Geographic Break-Up Geographic Break-Up 29% 40% India India Outside India Outside India 60% 71% Our International Presence has helped us to be less affected from the ongoing auto slowdown especially the one o
Slide 14: Consolidated Q2FY20 Profit & Loss
Consolidated Q2FY20 Profit & Loss Profit and Loss (in Rs. Crs) Q2FY20 Q2FY19 YoY H1FY20 H1FY19 YoY Revenue from Operations 180.8 162.0 11.6% 377.9 315.9 19.6% Other Income 4.5 4.3 8.9 9.9 Total Income 185.3 166.2 11.4% 386.8 325.8 18.7% Cost of Goods Sold 65.5 53.7 135.6 107.7 Gross Profit 119.7 112
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (in Rs. Crs.) Sep-19 Mar-19 Equity & Liabilities (in Rs. Crs.) Sep-19 Mar-19 Non-Current Assets 531.2 526.2 Equity 661.8 646.7 Property,Plant & Equipment 339.5 360.1 Equity Share Capital 95.0 95.0 CWIP 50.5 25.8 Other Equity Goodwill on consolidation 35.5 36.6 (i) S
Slide 16: Cash Flow Statements
Cash Flow Statements Standalone Consolidated Cash Flow Statement for Six Months Ended (Rs in Crs.) H1 FY20 H1 FY19 H1 FY20 H1 FY19 Profit Before Tax 29.6 23.3 16.3 12.0 Adjustments for Depreciation and Non-Cash Items 19.5 18.9 41.4 37.4 Operating Profit before working capital changes 49.1 42.2 57.6
Slide 17: Recent Business Orders
Recent Business Orders Contract win by Precision Camshafts Contract win by MFT 1 Million Fully Machined Camshafts over the 180,000 Sets of Machine Balancer Shaft Volumes* Volumes* life of the program Assemblies over the life of the program Client General Motors, Brazil Client Linamar, Germany ~€26.0
Slide 18: About the Company
About the Company
Slide 19: Precision Camshafts (PCL) - Snapshot
Precision Camshafts (PCL) - Snapshot MEMCO enjoys long term relationships with marquee global customers like Bosch, Delphi, Endress+Hauser and Giro Leading Products include fuel injection components for conventional & CRDi manufacturers of diesel engines, high precision instrumentation components et
Slide 20: Our Journey
Our Journey Incorporated 100% JV with China based Technical & Financial subsidiary in China Shenglong Automotive Made an IPO to Acquisition of Incorporation JV with G. Glancey, a – PCL (Shanghai) Powertrain Company get listed on MFT & EMOSS of PCL European camshaft Company Ltd. for Foundry Unit BSE
Slide 21: Group Structure
Group Structure Precision Camshafts Limited (Solapur, India) MEMCO Engineering Pvt Ltd PCL (International) Holding B.V., Nashik, India Netherlands Acquired in 2017 100% Holding 100% Holding Emoss Mobile Systems B.V. MFT Motoren und Fahrzeugtechnik GmbH Netherlands Germany Acquired in 2018 Acquired i
Slide 22: Strong & Experienced Board of Directors
Strong & Experienced Board of Directors Mr. Yatin Shah – Chairman & Managing Director Mr. Ravindra Joshi – Whole Time Director & CFO • Holds a B.Com from Bombay University and a MBA from Pune University • Holds a B.Com degree from Bangalore University & a • Over 32 years of experience in the auto co
Slide 23: Team Behind The Wheels
Team Behind The Wheels PCL PCL Group Companies Mr. Ajitkumar Jain Mr. M.G. Valse Mr. Manoj Mendse GM, Business Development & Projects GM, Design & Engineering Services GM -Operations, MEMCO • Holds a Bachelor’s degree in production • Holds a Diploma in Mechanical Engineering from • BE in Mechanical
Slide 24: Globally renowned for Camshafts
Globally renowned for Camshafts Product Portfolio Camshafts Camshaft is a critical component that is necessary for the functioning of an engine and its demand is highly dependent on automobiles demand as it is required in all internal combustion engines Chilled Cast Iron Camshaft – 4 cylinder Camsha
Slide 25: Process & Types of Camshafts
Process & Types of Camshafts 24
Slide 26: Camshafts Industry Overview
Camshafts Industry Overview Global Automotive Camshafts Market The global automotive camshaft market is projected to reach a size of US$ 4,462.2 million by the end of Global Camshafts Market for PV’s 2028, up from an estimated US$ 2,861.2 million in 2018 (in Million Units) The global automotive cams
Slide 27: Manufacturing Capacities
Manufacturing Capacities PCL Foundry India Facility (Solapur) Capacity (4 Foundries) 9 Mn. Units P.A PCL Machine India Facility (Solapur) Capacity (4 Machine Shops) 3.01 Mn. Units P.A Notes 1. Foundry Capacity has been reduced to 9 million per year due to change in product mix, increase in ductile i
Slide 28: Our Manufacturing Presence
Our Manufacturing Presence Our state-of-the-art manufacturing facilities and competitive engineering expertise helps grants us a competitive advantage in the marketplace Map not to scale 27
Slide 29: Our Marquee Clients
Our Marquee Clients PCL Common MFT Common MEMCO Solid Focus on Quality & thrust on improving camshaft technology led PCL to established Global Position All logos used are property of their respective owners and are used here for identification purpose only 28
Slide 30: EMOSS Clients
EMOSS Clients EMOSS All logos used are property of their respective owners and are used here for identification purpose only 29
Slide 31: Key Differentiators
Key Differentiators 01 02 03 04 One Stop Solution Preferred Development Enhancing Market Zero Defect Policy Partner Presence • One of the few global • Focus on quality and thrust • Unwavering focus on • Committed to steadfast suppliers manufacturing all on improving camshaft product quality, ability
Slide 32: Engineering is our expertise
Engineering is our expertise 300+ Engineers at Precision Camshafts Established Engineering Centres manned with international experts in the US and Europe 20+ workstations in design office with modelling software such as Catia, Unigraphics Technical Alliance with EMAG for the assembled camshaft techn
Slide 33: Indian MNC delivering Globally
Indian MNC delivering Globally Customer Location We continue to strengthen our position as one of the world’s leading and most highly regarded development partners in the automotive industry with the best products Map not to scale 32
Slide 34: Recent Acquisitions
Recent Acquisitions
Slide 35: Acquisitions to Drive Growth at PCL
Acquisitions to Drive Growth at PCL Our Acquisitions are aimed at creating strong alliances with leading global players to manufacture high-quality products across a wide range of solutions enabling us to fine tune our manufacturing capabilities to improve efficiency and productivity Company Group C
Slide 36: MEMCO
MEMCO PCL acquired 95% Stake in Nashik based MEMCO Engineering Pvt. Ltd. in Acquisition Nashik Facility October 2017 for Rs. 38 Crores & balance 5% stake for Rs. 2.6 Crores in Details April 2019 Fuel injection components for conventional & CRDi diesel engines, brake Products components & high precis
Slide 37: Product Portfolio – MEMCO
Product Portfolio – MEMCO MEMCO Products Product Fuel injection components for conventional & CRDi diesel engines, brake components & high precision Portfolio instrumentation components Few Products Nozzle Holder Body Nozzle Retaining Nut Stainless Steel Components for Instrumentation / Equipment Br
Slide 38: MFT
MFT Acquisition PCL acquired 76% Stake in Germany based MFT in March 2018 for Rs. 25 Germany Facility Details Crores through its WOS - “PCL (International) Holding B.V.” Balancer Shafts, camshafts, bearing caps, engine brackets & several non- Products engine prismatic components MFT is a leading sup
Slide 39: Product Portfolio – MFT
Product Portfolio – MFT MFT Products Product Balancer Shafts, camshafts, bearing caps, engine brackets & several non engine prismatic components Portfolio Few Products Balancer Shafts • Fully machined, hardened and balanced (vertical and horizontal) • Forged, ductile iron Prismatic Components • Vari
Slide 40: EMOSS
EMOSS Acquisition PCL acquired 51% Stake in Dutch based EMOSS in May 2018 for Rs. 58 Netherland Facility Details Crores through its WOS - “PCL (International) Holding B.V.” EMOSS is a one-of-a-kind business that designs, develops, produces and Products supplies complete electric powertrains for truc
Slide 41: Product Portfolio - EMOSS
Product Portfolio - EMOSS nex cityf ME iileeed Me E 3 f HEERULK, DAT GROENE RUDEN! | 80 - 240 kWh 120 - 200 kWh ‘range extender |) 100-250 a Digital development Integrated cockpit for all Emoss product Real-time online tracking for: Power management & Data analysis
Slide 42: Acquisitions to strengthen Brand PCL
Acquisitions to strengthen Brand PCL Explore existing products with 01 Cross Sell Clients added as a part of acquisitions Scale up EMOSS in mature Electric mobility markets across 02 Scale up EV Venture the globe and take a leading advantage Introduce new products to PCL 03 Diversify Product Offerin
Slide 43: Diversifying Client Base with Acquisitions
Diversifying Client Base with Acquisitions Client Base of PCL Standalone Client Base of PCL Group Revenue Contribution Revenue Contribution Endress & Hauser, CNH, 1% 1% General Motors, Others, 4% ESCORTS, 2% Escorts, 1% 17% MUSASHI, 2% PCL is diversifying Musashi, 2% Mahindra, 2% MAHINDRA, 3% its pr
Slide 44: Our Strategy
Our Strategy
Slide 45: Our Strategy
Our Strategy Diversifying Client Base In Advanced stages of discussions for new orders with leading OEMs across geographies, which will lead to significant diversification and dilute the concentration risk Leveraging Knowledge Focus on new technologies Continue to explore possibilities of partnershi
Slide 46: Drive Machined Camshafts volumes to improve profitability
Drive Machined Camshafts volumes to improve profitability Volumes Break – Up Camshaft Wise Revenue Contribution 9.02 Mn 9.29 Mn 8.07 Mn 7.44 Mn 12% 18% 23% 28% 28% 39% 50% 56% 88% 82% 77% 72% 72% 61% 50% 44% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Casting Camshaft Machined Camshafts Casting Camshaft
Slide 47: Machine Camshafts volumes improving
Machine Camshafts volumes improving Machined Camshafts Volumes Camshaft Castings Volumes Total Camshaft Volumes (In Mn. Units) (In Mn. Units) (In Mn. Units) +13% -14% -8% 2.08 6.23 8.07 1.84 5.36 7.44 FY18 FY19 FY18 FY19 FY18 FY19 FY18 Volume FY19 Volume Contribution 22.8% Contribution 28.0% Machine
Slide 48: Customer issues of past behind us…FY20 looking robust
Customer issues of past behind us…FY20 looking robust Change in Strategy of Ford Platform Performance Business Requirements Key Platforms Our major client Ford’s business Ford & GM were key customers strategy required us to service whose key platforms were being business from China instead of India
Slide 49: Historical Financial Performance
Historical Financial Performance
Slide 50: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Profit and Loss (in Rs. Crs) FY19 FY18 FY17 FY16 FY15 FY14 Revenue from Operations (Net of Taxes) 424 401 443 436 514 459 Other Income 17 25 31 22 11 12 Total Income 441 425 474 457 525 472 Cost of Goods Sold 125 128 138 131 167 149 Gross Profit 316 297 337 326 358
Slide 51: ROCE of Core Business
ROCE of Core Business Particulars (Standalone) in Rs. Crs. FY19 FY18 FY17 Total Equity = Share Capital + Reserves 602 570 552 Total Debt = Long Term + Short Term 27 22 67 Total Capital Employed (Debt + Equity) 629 592 619 Less - Cash & Bank Balances 78 150 257 Less - Long Term Investments 72 60 13 L
Slide 52: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement JV Financials are consolidated JV Financials are consolidated at profit level from FY16 as line by line item until FY15 Profit and Loss (in Rs. Crs) FY19 FY18 FY17 FY16 FY15 FY14 Revenue from Operations (Net of Taxes) 695 421 442 440 532 467 Other Income 18 25 31
Slide 53: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Precision Camshafts Ltd. Strategic Growth Advisors Pvt. Ltd. CIN -L24231PN1992PLC067126 CIN - U74140MH2010PTC204285 Mr. R.R. Joshi – Director & CFO Mr. Shogun Jain / Mr. Shrenik Shah rrjoshi@pclindia.in shogun.jain@sgap