Precision Camshafts Ltd. · NSE:PRECAM
Precision Camshafts — Q1 FY2019 Earnings Presentation
49 slides from Precision Camshafts's earnings presentation, Aug 25, 2018
Slide 1: Intimation of Conference Call and Investors Presentation
Precision Camshafts Limited (100% EOU Division) Pnrcrtron Works : D-5,D-6,7 ,7-1, M I D C, Chincholi, Solapur 413 255 Date: 25th August, 2018 sEc/AUG/SE/N&B/2018 To To The Listing Department The Listing Department Bombay Stock Exchange Limited The National Stock Exchange of India Phi roze Jeejeebhoy
Slide 2: Q1FY19 Earnings Call Details
PRECISION CAMSHAFTS LTD.’S Q1FY19 EARNINGS CALL MONDAY, 27th August at 4: 30 p.m. Mumbai, 25th August, 2018: Precision Camshafts Limited, one of the world’s leading manufacturer and supplier of camshafts, will organize a conference call for investors and analysts on Monday, 27th August, 2018 @ 4:30
Slide 3: About Precision Camshafts Limited
About Precision Camshafts Limited: (www.pclindia.in ; BSE: 539636; NSE: PRECAM) Precision Camshafts Limited is promoted by Mr. Yatin Shah and Dr. Suhasini Shah, who have over 20 years of experience in the critical engine component manufacturing. It is the world’s leading manufacturer and supplier of
Slide 4: Investor Presentation – August 2018
Investor Presentation – August 2018
Slide 5: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Precision Camshafts Limited (“Precision Camshafts” or “PCL” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future res
Slide 6: Q1FY19 Result Highlights
Q1FY19 RESULT HIGHLIGHTS In Q1FY19 Revenue from operations stood at Rs. 94.79 crore • Revenues dropped by 13.48% YoY, on account of lower production; while contribution of domestic sales to total revenues has shown an increase from 40% in Q1FY18 to 47% in the current quarter, however, exports report
Slide 7: PCL Group - Overview
PCL Group - Overview One stop solution for niche End to end solution provider of machined components complete integrated electric Camshafts Balancer Shafts drivelines for commercial Injector Parts Prismatic Parts vehicles Global benchmark in quality Publicly listed company with with state of the art
Slide 8: PCL Group - Structure
PCL Group - Structure Precision Camshafts Limited (Solapur, India) Joint Ventures MEMCO PCL (International) PCL (Shanghai) SLPCL PCLSL Engineering Pvt Holding B.V., Company Limited (M/C Shop) (Foundry) Ltd Netherlands China Ningbo, China Huzhou, China Nashik, India MFT Motoren und Emoss Mobile PCL B
Slide 9: Locations
Locations precision precision Brasil HQ ferme rmne et eee ale eel Se ea (etere rege ce one Stegeyrteattlla alive tet pepe in mimummmmnne rs
Slide 10: Background & History
Background & History Over 70 million camshafts exported since inception without single field failure
Slide 11: Customers & Global Footprint - Automotive
Customers & Global Footprint - Automotive PCL Common MFT MEMCO Circa 10% global market share for passenger vehicle camshafts Consistently surpassed customer quality expectations and benchmarks
Slide 12: Customers Distribution – Automotive Business
Customers Distribution – Automotive Business PCL Shanghai PCL Standalone PCL + MFT + MEMCO 1% Others Tata Motors 1% Others GM 2% 18% 18% PCL Domestic 3% GM SFT 28% Toyota 5% 4% Toyota 7% AUDI/VW FCA FCA 5% 15% 7% Bosch 5% Ningbo - SLPCL 8% Ningbo - Ford SLPCL 17% 5% Ford Westfalia 11% Suzuki 5% Suzu
Slide 13: Customers & Global Footprint - eMobility
Customers & Global Footprint - eMobility EMOSS
Slide 14: Customers Footprint
Customers Footprint Customer Location
Slide 15: Facilities
Facilities PCL Campus spread over 45 acres + 25 acres at 2 km from current site
Slide 16: Facilities - Foundry
Facilities PCL - Foundry facilities 4 foundries with total capacity of ~12 million camshafts per annum
Slide 17: Facilities - Machine Shop
Facilities PCL - Machine shop facilities 3 machine shops with total capacity of ~4 million camshafts per annum
Slide 18: Facilities - China
Facilities China Machine Shop China Foundry Machine shop capacity – 2 million p.a. Foundry capacity – 4 million p.a.
Slide 19: Facilities - MEMCO Machine Shop
Facilities MEMCO - Machine Shop Machine shop capacity >10 million parts p.a.
Slide 20: Facilities - MFT Machine Shop
Facilities MFT - Machine Shop
Slide 21: Facilities - EMOSS Assembly Shop
Facilities EMOSS – Assembly Shop
Slide 22: Facilities - Eco friendly environment
Facilities Eco friendly environment
Slide 23: Products
Products • Camshafts - 2/3/4 cylinder, V6/V8 engine • 250 - 500 mm length, 1.3 kg – 2.4 kg weight • Solid, hollow and profiled hollow core (using glass/sand core) • Chilled Cast Iron Camshaft – 4 cylinder • Chilled Cast Iron Camshaft – Variable Valve Lift • Induction Hardened Ductile Iron Camshaft •
Slide 24: Products
Products Solid, hollow and profiled hollow core (using glass/sand core) Hybrid Camshafts • Chilled cast iron camshaft with 100Cr6 pump lobe and sintered trigger wheel Assembled Camshafts Special profiled hollow and Variable valve-lift camshafts
Slide 25: Products
Products Balancer Shafts • Fully machined, hardened and balanced (vertical and horizontal) • Forged, ductile iron. Prismatic Components • Various Powertrain, Brake and Chassis components • Machining of all casting materials (GG, GGG, Aluminium)
Slide 26: Products
Products • Fuel Injection Components for Conventional and CRDi Diesel Engines • Brake Components • High Pressure Diesel Injector Connectors for Naval Ships • Stainless Steel Components for Instrumentation • Nozzle Holder Body • Nozzle Retaining Nut • Stainless Steel Components for Instrumentation /
Slide 27: Products - EMOSS
Products em@ss
Slide 28: Board of Directors
Board of Directors He holds a B.Com from Bombay University and a MBA from Pune University Mr. Yatin Shah Over 23 years of experience in the auto component manufacturing sector Chairman & Managing Director Received various awards, including J.R.D. Tata Udyog Ratna Award by Maharashtra Audyogik
Slide 29: Management Team
Management Team Yatin Shah Chairman & Managing Director Ravindra Suhasini Karan Rajan Guido Edwin Joshi Shah Shah Dharkar Glinski Hobbel CFO - Director Director Director - BD MD - MEMCO MD - MFT MD - EMOSS Thomas Ajit Achyut Rajkumar Madhav Deepak Koritke Jain Gadre Kashid Valse Kulkarni Executive –
Slide 30: Engineering Expertise
Engineering Expertise • 300+ engineers • 20+ workstations in Design office with modeling software like Catia, Unigraphics, ProE • Manufacturing systems follow customer requirements like QSB/Q1/VDA6.3 etc. • ISO/TS 16949:2009, ISO 14001:2004, BS OHSAS: 18001:2007 certified PCL Technical Offices – Eur
Slide 31: Standalone Financials of PCL Group Companies
Standalone Financials of PCL Group Companies Standalone Revenues (in Rs crore) 408 450 400 350 300 250 160 200 150 50 32 100 50 0 FY 2017-18 Dec 2017 Dec 2017 FY 2017-18 * Financials of acquired companies in FY 17-18 have been consolidated in the books of Company as on acquisition date as per the ac
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility IMPACTING LIVES. UPLIFTING SOCIETIES. Health Awareness Program on Speech Therapy Center & Solapur radio BERA Testing Machine Battery Operated Vehicle at Interactive Learning through Solapur railway station e-Learning Tools at 100 schools Menstrual hygiene awareness pr
Slide 33: Growth Strategy
Growth Strategy Increase sale of niche machined Diversify product range products • Niche machined components • New customers • High technology products Inorganic Growth Organic Growth • New technologies • E-Mobility Solutions Expand manufacturing footprint Expand partnership model with • Machining p
Slide 34: PCL Standalone: Revenue & Margins
PCL Standalone: Revenue & Margins Camshaft Castings (50%) FY18 Revenue - Rs 407.87 crore Machined Camshaft (50%) SALES REALISATION OF MACHINED CAMSHAFT IS 2.5X - 3.0X TIMES OF CAMSHAFT CASTING GEOGRAPHICAL DISTRIBUTION OF SALES HIGHER SALES OF 57% 43% MACHINED CAMSHAFTS TO DRIVE MARGIN EXPANSION FY1
Slide 35: PCL India – Capacity Expansion
PCL India – Capacity Expansion CAPACITY EXPANSION: ADDITION OF MACHINE SHOP New machine shop for ductile / assembled / chilled cast iron camshafts at EOU division in Solapur Proposed Capacity 2 million / year Total Capex ~ Rs 230 crore Utilised as of 30th June 2018 ~ Rs 155 crore Balance to be uti
Slide 36: Quarterly Result Highlights (Standalone)
Quarterly Result Highlights (Standalone) 120 30.00% 25.98% 100 26.00% 25.00% 80 23.13% 20.00% In Rs cr 60 15.00% 9.05% 94.79 40 8.10% 10.00% 104.71 20 7.90% 5.00% 109.55 0 0.00% Q1FY18 Q4FY18 Q1FY19 Total Revenue EBITDA Margin PAT Margin
Slide 37: FY18 Result Highlights (Standalone & Consolidated)
FY18 Result Highlights (Standalone & Consolidated) 500 30.00% 500 30.00% 450 450 400 25.00% 28.02% 25.00% 28.25% 400 24.37% 350 24.82% 20.00% 350 20.00% 300 300 250 13.03% 15.00% In Rs cr 250 15.00% In Rs cr 11.04% 200 8.52% 200 150 10.00% 14.28% 10.00% 150 100 5.00% 100 467.01 407.87 466.33 5.00% 5
Slide 38: Quarterly Revenue & Volume Break-up (Standalone)
Quarterly Revenue & Volume Break-up (Standalone) 60 70 49.83 51.43 48.92 48.87 47.64 59.36 57.07 50 43.64 60 48 50 43.23 43.28 In Rs cr 40 39.4 In Rs cr 40 30 30 20 20 10 10 0 0 Casting Machined Domestic Exports Q1FY18 Q4FY18 Q1FY19 Q1FY18 Q4FY18 Q1FY19 2,000 1,586 1,566 1,500 1,341 In ‘000 1,000 48
Slide 39: FY18 Revenue & Volume Break-up (Standalone)
FY18 Revenue & Volume Break-up (Standalone) 300 264.93 350 297.25 250 300 196.9 193.13 250 224.18 In Rs cr 200 169.16 In Rs cr 200 165.85 150 136.83 150 100 100 50 50 0 0 Casting Machined Domestic Exports FY17 FY18 FY17 FY18 10,000 7,643 8,000 6,233 6,000 In ‘000 4,000 1,643 1,837 2,000 0 Casting Ma
Slide 40: Key Financials
Key Financials BALANCE SHEET Snapshot – As on 30th June, 2018 Networth – Rs 577.7 cr Debt – Rs 24.2 cr Cash & Investments – Debt / Equity – 0.042 Rs 111.4 cr Standalone Balance sheet
Slide 41: Acquisition Highlight – MEMCO, India
Acquisition Highlight – MEMCO, India Acquisition of 95% stake in MEMCO Engineering Private Limited (MEMCO) • The company acquired Nashik-based MEMCO Engineering Private Limited (MEMCO) for Rs. 38.04 crore in October 2017. The acquisition was made through internal accruals • MEMCO enjoys long term re
Slide 42: Acquisition Highlight – MFT, Germany
Acquisition Highlight – MFT, Germany Acquisition of 76% shares in MFT Motoren und Fahrzeugtechnik GmbH (MFT), through PCL’s wholly owned Dutch subsidiary PCL (International) Holding B.V for Rs 25 crore • This acquisition will help strengthen PCL’s niche machining capabilities and diversify into a ne
Slide 43: Acquisition Highlight – EMOSS, Netherlands
Acquisition Highlight – EMOSS, Netherlands PCL acquires 51% stake in Dutch electric mobility company - Emoss Mobile Systems B.V. via its 100% subsidiary PCL (International) Holding B.V. for a total consideration of Rs 58 crore • PCL forays into electric mobility with the acquisition of Emoss – a one
Slide 44: PCL Standalone - P&L Statement
PCL Standalone - P&L Statement Particulars (In Rs Crore) Q1FY19 Q1FY18 Y-o-Y % Q4FY18 Q-o-Q % FY18 FY17 Y-o-Y% Revenue from Operations 94.79 109.55 -13.48% 104.71 -9.48% 407.87 467.01 -12.66% Other Income 5.45 5.83 -6.44% 9.53 -42.77% 24.60 31.35 -21.55% Total Revenues 100.24 115.38 -13.12% 114.24 -
Slide 45: PCL Standalone – Balance Sheet
PCL Standalone – Balance Sheet (In Rs Crore) (In Rs Crore) Particulars Standalone Particulars Standalone As at As at As at As at March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 ASSETS Equity I. Non-current assets (a) Equity share capital 94.88 94.79 (a) Property, plant and equipment 241.
Slide 46: PCL Consolidated - P&L Statement
PCL Consolidated - P&L Statement Particulars (In Rs. Crore) FY18 FY17 YoY% Revenue from Operations 428.61 466.33 -8.09% Other Income 24.72 31.46 -21.42% Total Revenues 453.34 497.79 -8.93% COGS 133.41 137.82 3.20% Gross Profit 295.21 328.51 -10.14% Gross Margin 68.87% 70.45% -157 bps Employee Expens
Slide 47: PCL Consolidated – Balance Sheet
PCL Consolidated – Balance Sheet Particulars Consolidated Particulars Consolidated As at As at As at As at March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 Equity ASSETS (a) Equity share capital 94.88 94.79 I. Non-current assets (b) Other equity (a) Property, plant and equipment 314.26 21
Slide 48: Shareholding Structure
Shareholding Structure % Shareholding – 30th June 2018 Institutions, 10.24% Key Institutional Investors – As on 30th June 2018 Non- Institutions, 25.86% SBI Magnum Balanced Fund 7.16% Promoters and Promoter IDFC Premier Equity Fund 1.35% Group, 63.90% ICICI Pru. Life Insurance Co. Ltd.* 3.18% Promot
Slide 49: Thank you!
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