Slide 1: Revised Investor Presentation cover letter to stock exchanges
AZA D cs/rP-Q3 [2 024-2s) Date: Febru ary 1,1,, 2025 To, To, The Listing Department The Listing Department BSE Limited National Stock Exchange of India Ltd. Department of Corporate Affairs ExchangePlaza, Plot No. C/1, G Block Phiroze feejeebhoy Towers Bandra-Kurla Complex, Dalal Street Bandra IEJ i
Slide 2: Corporate Presentation
Azad Engineering Limited February 2025 Corporate Presentation
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Azad Engineering Limited (“Company”) together with its subsidiaries (collectively, the “Group”) only, without regard to any specific objectives, suitability, financial situations and needs of any particular
Slide 4: Presenters
Presenters Rakesh Chopdar Murali Krishna Bhupatiraju Vishnu Pramodkumar Malpani Chairman and CEO Managing Director Whole-Time Director • Involved with Azad since 2003 and • Holds PhD (Ohio State University), • Holds a bachelor’s degree in has more than two decades of MBA (Michigan State University)
Slide 5: Agenda
Agenda 1 Company Overview 2 Key Investment Highlights 3 Key Strategies 4 Summary Financials 5 Annexures Strictly Private and Confidential 4
Slide 6: Company Overview
er\Y Company Overview
Slide 7: Snapshot of Azad Engineering
Snapshot of Azad Engineering Supplying to highly regulated industries having Manufacturer of precision-engineered, complex and mission & life-critical components1 large Direct TAM and significant entry barriers Average relationship of 10+ years with key global OEMs CY29 15+ years in Substantial expe
Slide 8: Our Journey
Our Journey 2022 • Acquired 18.50 acres of land for a new 2019 plant (Phase 2 expansion) Entered into a long-term contract • Raised capital worth of INR 2,173 Mn with a key global OEM in the A&D2 space for supply of aerospace products 2024 • INR 2023 7,400 mn • Onboarded IPO marquee 2021 investors f
Slide 9: Project and Life Critical Portfolio of Diversified Product (1/2)
Project and Life Critical Portfolio of Diversified Product (1/2) Aerospace and Defence Industry Product Category Products End-Use Industry/Application Housing, Compressor & Airfoils, Unison Rings, Arm, Levers Body, Assembly Mount Aero Engine Assembly & Auxiliary Power Unit Commercial Aircrafts (“APU
Slide 10: Project and Life Critical Portfolio of Diversified Product (2/2)
Project and Life Critical Portfolio of Diversified Product (2/2) Energy and Oil & Gas Industry Product Category Products End-Use Industry/Application Last Stage Airfoil – Rotary Fixed Airfoil Last Stage Airfoil - Stationary & Welding Chamfers Nuclear Power Turbine – Turbine Airfoil Assembly Electric
Slide 11: Nine-monthly & quarterly performance
Nine-monthly & quarterly performance 9MFY25 vs 9MFY24 Q3FY25 Vs Q3FY24 INR Mn y/y growth INR Mn y/y growth Revenue Rs. 3,304.3 Mn 33.3% Rs.1,204.9 Mn 35.0% Rs. 1,157.2 Mn Rs. 428.2 Mn EBITDA 35.8% 30.8% 35.0% margin 35.5% margin Rs. 881.5 Mn Rs. 340.4 Mn PBT 26.1% margin 27.1 % margin Rs. 61
Slide 12: Key Investment Highlights
er\Y Key Investment Highlights
Slide 13: Key Investment Highlights
Key Investment Highlights 6 1 Manufacturer of mission & life-critical components serving Experienced Promoter and management team backed by marquee investors highly regulated industries with significant entry barriers ✓ Promoter with more than 2 decades of experience ✓ Experienced senior management
Slide 14: Manufacturing Critical High-precision Components Supplying to Highly Regulated Industries
Manufacturing Critical High-precision Components Supplying to Highly Regulated 1 Industries with Significant Barriers to Entry Significant entry barriers at each level, making Azad one of the preferred domestic suppliers to key global OEMs Sustainability • Requires constant Time and Quality Intensiv
Slide 15: Stringent and Lengthy Process for New Vendor Onboarding
Stringent and Lengthy Process for New Vendor Onboarding Undergoing a part-by- 1 part Qualification 30–48 Months Phase 1 Phase 2 Phase 3 Phase 4 Generation of vendor code by customer to issue first Purchase Contract negotiation Walk through Order (PO) post receipt of For an engagement corporate profi
Slide 16: Critical Source Supplier to OEMs - Aerospace & Defence
Critical Source Supplier to OEMs with High Global Market Penetration - Aerospace & 2 Defence Addressable market for Aerospace & Defence1 Growth Drivers INR bn Supplier to six of the key manufacturers Opportunity to increase wallet share by CAGR 2,190 in aerospace and defence industry entering into a
Slide 17: Critical Source Supplier to OEMs - Energy Turbine Industries
Critical Source Supplier to OEMs with High Global Market Penetration – Energy 2 Turbine Industries Azad’s customer market share in Global Overall global energy turbine components turbine components1 market INR bn Gas power turbine 310 310 0% 20% 40% 60% • Supplier to five of the key manufacturers in
Slide 18: Long-standing and Deep Customer Relationships With OEMs
3 Long-standing and Deep Customer Relationships With OEMs Well-diversified customer base spread across Long-standing relationship with global OEMs various geographies Revenue from 3.3% 3.4% Integrated manufacturing & operations for 4.7% USA supply chain solutions FY24 Japan UAE INR 3,408 11.7% 34.3%
Slide 19: Process Design Capabilities & Cost Competitiveness – Case Studies
Exhibiting Process Design Capabilities & Cost Competitiveness Resulting in 3 Winning Contracts – Case Studies Scaled up our relationship with a global OEM from a few machines to I Received qualified vendor status from a global OEM II a forthcoming dedicated facility Global Energy OEM Commenced journ
Slide 20: Advanced Manufacturing Facilities With Focus on Innovation and Cost Competitiveness
Advanced Manufacturing Facilities With Focus on Innovation and Cost 4 Competitiveness Four manufacturing facilities in Hyderabad Facilities in Pipeline Spread across 20,000 Sq.mts Facility 1 Facility 2 ~94,899 Sq.mts ~74,867 Sq.mts Annual installed capacity 642,310 hours per annum1 Capacity Utilizat
Slide 21: Consistent Track Record of Financial Performance (Standalone)
5 Consistent Track Record of Financial Performance (Standalone) Revenue From Operations Adj. EBITDA1 & Adj. EBITDA Margin PAT and PAT Margin CAGR INR Mn CAGR INR Mn INR Mn 32% 37% 1,187 1,191 CAGR 625 3,408 3,284 586 41% 18.6% 2,517 796 36.3% 14.8% 15.7% 1,945 632 34.8% 295 32.5% 3.2% 31.6% 85 FY22
Slide 22: Promoter Guided by an Experienced Board of Directors
6 Promoter Guided by an Experienced Board of Directors…. Rakesh Chopdar Jyoti Chopdar Murali Krishna Vishnu Chairman & CEO Whole-Time Director Bhupatiraju Pramodkumar • Involved with Azad • Associated with Azad Managing Director Malpani since 2003 for over 8 years and is • Holds PhD (Ohio State Whol
Slide 23: Supported by a Professional and Experienced Management Team
6 …and Supported by a Professional and Experienced Management Team Murali Krishna Rakesh Chopdar Jyoti Chopdar Bhupatiraju Chairman & CEO Whole-Time Director Managing Director Vishnu Pramodkumar Ronak Jajoo Ful Kumar Gautam Ashok Gentyala Balaji PR Malpani Chief Financial Officer Company Secretary a
Slide 24: Key Strategies Going Forward
Key Strategies Going Forward • Wallet share gains driving revenue from existing long-standing clients − Increasingly catering to diverse component needs for clients, reflected in growing order book across key clients • Utilizing existing product and technology capabilities to serve new clients − Bui
Slide 25: Thank you
Thank you
Slide 26: Summary Financial Statements
Summary Financial Statements
Slide 27: Restated Consolidated Statement of Profit and Loss
Restated Consolidated Statement of Profit and Loss (INR million, except per share data) For the 9M period For the year ended For the year ended For the year ended Particulars ended December March 31, 2022 March 31, 2023 March 31, 2024 31, 2024 Revenue from operations 1,944.67 2,516.75 3,407.71 3,304
Slide 28: Restated Consolidated Statement of Assets and Liabilities (1/2)
Restated Consolidated Statement of Assets and Liabilities (1/2) (INR million) As at March As at March As at March Particulars 31, 2022 31, 2023 31, 2024 ASSETS Non-current assets Property, plant and equipment 1,444.01 2,166.54 2,545.41 Right of use assets 27.33 Capital work-in-progress 236.56 379.86
Slide 29: Restated Consolidated Statement of Assets and Liabilities (2/2)
Restated Consolidated Statement of Assets and Liabilities (2/2) (INR million) As at March As at March As at March Particulars 31, 2022 31, 2023 31, 2024 EQUITY AND LIABILITIES Equity Equity share capital 15.13 16.52 118.23 Other equity 1,184.94 2,023.36 6,332.40 Total equity 1,200.07 2,039.88 6,450.
Slide 30: Restated Consolidated Statement of Cash Flows (1/2)
Restated Consolidated Statement of Cash Flows (1/2) (INR million) For the year ended For the year ended For the year ended Particulars March 31, 2022 March 31, 2023 March 31, 2024 (A) Cash Flows From Operating Activities: Profit before tax 401.34 131.59 807.86 Adjustments for: Depreciation expenses
Slide 31: Restated Consolidated Statement of Cash Flows (2/2)
Restated Consolidated Statement of Cash Flows (2/2) (INR million) As at March As at March As at March Particulars 31, 2022 31, 2023 31, 2024 (B) Cash Flows From Investing Activities Purchase of property, plant and equipment including CWIP and capital advances (1,171.47) (856.22) (753.40) Proceeds fr
Slide 32: Annexures
er\Y Annexures
Slide 33: Reconciliation of Adj. EBITDA to Reported EBITDA
Reconciliation of Adj. EBITDA to Reported EBITDA (INR mn) FY22 FY23 FY24 Adjusted EBITDA 631.7 795.8 1,187.3 Non-recurring expenses Fire related 0.0 63.0 0.0 Provision for credit impaired trade receivables 2.4 4.8 21.4 Professional and consultancy charges 5.0 4.9 0.0 Loss on forex transactions and t