Sansera Engineering Limited · NSE:SANSERA
Sansera Engineering — Q1 FY25 Earnings Presentation
52 slides from Sansera Engineering's earnings presentation, Aug 8, 2024
Slide 1: Cover letter to stock exchanges
August 08, 2024 The National Stock Exchange of India Ltd The Department of Corporate Services Exchange Plaza, C-1, Block G BSE Limited, Bandra – Kurla Complex P.J. Towers, Dalal Street Mumbai 400051 Mumbai 400001 Scrip Symbol: SANSERA Scrip Code: 543358 Dear Sir/ Madam Subject: Investors Presentatio
Slide 2: Investors Presentation August 2024
INVESTORS PRESENTATION August 2024 SANSERA ENGINEERING LIMITED 1
Slide 3: Safe harbour
Safe harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sansera Engineering Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 4: Performance highlights
Performance highlights
Slide 5: Management Commentary
Management Commentary Commenting on the performance Mr. B R Preetham Executive Director & CEO, Sansera Engineering Limited said, "We began the year with a strong performance of 13% growth in the topline and 12% growth in EBITDA. There are multiple drivers towards this; we have performed well in both
Slide 6: Q1FY25 Performance Scorecard
Q1FY25 Performance Scorecard 2 Revenue Growth Consistent 1 Across Sectors Performance Revenue Growth Non-Auto Auto-Tech Across Geographies Agnostic & xEV 16% 51% Rs. 7,439 Mln Domestic International Revenue Auto ICE ▲13% 12% 17% 7% Rs. 1,275 Mln EBITDA 17%* I▲12% 3 4 Rs. 501 Mln Top 5 Customer Share
Slide 7: Performance Highlights Q1 FY25
Performance Highlights Margins Rs in Mln › Delivered the healthy growth in topline and EBITDA Revenue* EBITDA PAT during Q1FY25 › Domestic revenues grew by 12% on a YoY 17.3% 17.1% 6.8% 6.7% basis +13% › International revenues saw a growth of 17% 7,439 on a YoY basis 6,601 › Gross margins improved b
Slide 8: Strong and diverse business pipeline for future growth (1/2)
Strong and diverse business pipeline for future growth (1/2) Orderbook (peak annual revenues for new business) Rs. 17.0 Bn Rs. 19.3 Bn Rs. 20.4 Bn Rs. 15.9 Bn Rs. 16.9 Bn Aerospace & Defence 10% Non-auto 23% 21% 23% 24% 23% Auto-Tech 31% 26% xEV 17% 30% 30% 28% Agnostic & xEV Tech Agnostic 9% Auto-I
Slide 9: Strong and diverse business pipeline for future growth (2/2)
Strong and diverse business pipeline for future growth (2/2) Rs in Billion Build-up of peak annual revenues +20% +38% -6.0 8.6 15.8 0.9 -3.7 13.2 7.3 9.6 31-Mar-22 New orders Orders moved to 31-Mar-23 New orders Orders moved to 31-Mar-24 30-Jun-24 mass production mass production Represent orders whi
Slide 10: Growth Path
Growth Path 346 LOIs/Purchase Orders from 75 customers in the auto and 46 customers in the non-auto sector Rs in Mln Auto-ICE This orderbook is expected Auto-Tech Agnostic to reach its peak annual xEV revenue in the next 3 years Non-Auto 3,924 2,856 1,561 8,514 28,114 66.1% In addition, the company
Slide 11: Sales Mix Trend: By End-Use Segments
Sales Mix Trend: By End-Use Segments Rs in Mln Auto – ICE Auto-Tech Agnostic xEV Non-Auto 5,153 5,032 4,696 881 839 712 721 421 585 363 326 424 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 Q1FY24 Q4FY24 Q1FY25 19,884 3,239 1,994 1,243 16,895 2,585 1,443 817 FY23 FY24 FY23 FY24 FY23
Slide 12: Sales Mix: By Geographies
Sales Mix: By Geographies Sales mix (%) Q1FY25 Q1FY24 Q4FY24 FY24 FY23 India 67.6% 68.4% 66.8% 68.7% 71.6% Europe 19.6% 19.5% 19.7% 18.3% 17.6% USA 10.1% 9.0% 9.9% 9.9% 7.2% Other Foreign Countries 2.7% 3.1% 3.6% 3.1% 3.6% International 32.4% 31.6% 33.2% 31.3% 28.4% Exports from India 27.4% 24.4% 28
Slide 13: Update on Electric Mobility
Update on Electric Mobility Visible growth in the revenue contribution from xEV segment 17% 18* xEV 11 (2W) 5 (PV) 2 (CV) of orderbook Customers Sales Contribution from xEV (INR Mln) +52% 1,243 +30% 421 817 363 325 299 257 72 New American multinational automotive Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 F
Slide 14: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Particulars (Rs. in Mln) Q1FY25 Q1FY24 YoY FY24 Revenue From Operation 7,439 6,601 13% 28,114 Cost of goods sold (incl power & fuel cost) 4,330 3,968 16,877 Gross Profit 3,109 2,633 18% 11,237 Gross Profit Margin 41.8% 39.9% 40.0% Employee benefit expenses 1,068 91
Slide 15: Awards & Accolades
Awards & Accolades “AIRBUS” #NewSteps2023 General Motors For Outstanding Performance 14
Slide 16: Company Overview
Company Overview
Slide 17: Sansera Engineering Ltd.: A Glance
Sansera Engineering Ltd.: A Glance Auto ICE Tech Agnostic & xEV Strong execution capabilities Prominent player with Emerging player working longstanding OEM with marquee names in the industry 17 500+ relationships Integrated Dedicated engineering team manufacturing including aerospace, machine 36% 6
Slide 18: Solid growth across end-markets
Solid growth across end-markets Rs in Mln Auto-ICE Auto-Tech Agnostic & xEV Non-Auto Total Revenue* ▲18% ▲60% ▲24% ▲22% CAGR Surpassing Auto CAGR driven by CAGR driven by 2x CAGR driven all round Industry growth product focus growth in Aerospace growth 19,884 28,114 12,092 15,593 3,237 3,239 1,683 7
Slide 19: Diverse revenue profile
Diverse revenue profile A wide portfolio of products across 80+ product families catering to 95* auto and non-auto customers across 26 countries % By Geography By Customer By Product Products FY22 FY23 FY24 17 18 17 14 14 Auto ICE 83% 78% 75% 25 24 21 Connecting rods - ICE 39% 34% 34% 7 13 10 10 12
Slide 20: Strategic pillars
Track record of growth & diversification Wide range of product offerings Strategic pillars Diverse sectoral revenue profile Well entrenched customer relationships Strong execution capabilities 19
Slide 21: Track record of growth & diversification
Track record of growth & diversification Over the four decades, Sansera has created differentiated products and diversified across product categories as well as geographies • Concluded the construction of new • Commenced Aerospace and 2004- 2014 2020 development of 2022 2024 1981 1990 2017 Defence p
Slide 22: Wide range of product offerings: Auto (ICE)
Wide range of product offerings: Auto (ICE) Sansera has a track record of developing complex and critical precision engineered components for the automotive sector over multiple decades. Majority of the products are sold directly to OEMs in finished (forged and machined) condition, resulting in sign
Slide 23: Wide range of product offerings: Auto (Tech-Agnostic and xEV)
Wide range of product offerings: Auto (Tech-Agnostic and xEV) Tech-Agnostic and xEV have been a key focus area for Sansera in the past few years. We continue to accelerate this growth as we are already working with well known domestic as well as global customers Tech-Agnostic xEV 2W / e-2W PV / Hybr
Slide 24: Wide range of product offerings: Non-Auto
Wide range of product offerings: Non-Auto Over the years, the company leveraged its existing capabilities to manufacture precision components for several non- automotive sectors and established its presence in the aerospace, off-road and agriculture sectors Aerospace & Defence Off-road Agriculture O
Slide 25: Well entrenched customer relationships
Well entrenched customer relationships Within India, relationship with All major 2 W OEMs 20+ 10+ <10 Relationship with 5 Key PV OEMs, Years Years Years accounting for 54% of Market share 40% 20% 40% India 30+ years of relationship with the Leading PV OEM Continuous new Longstanding relationships cu
Slide 26: Integrated manufacturing facilities
Integrated manufacturing facilities Sansera has 16 plants in operation across India and 1 in Sweden All its facilities are located in close proximity to the client production facilities Manesar (Gurgaon) (1) Pantnagar (1) Shorter product development and delivery times Mehsana (1) Greater control Str
Slide 27: Levers for future growth
Levers for future growth
Slide 28: Levers for future growth
Levers for future growth Diversify further into non-automotive businesses and expand addressable Leverage existing market capabilities in tech agnostic products Strengthen xEV especially aluminium Business forged components Consolidate and strengthen global market share in existing portfolio 27
Slide 29: Strengthen global ICE market share in existing portfolio
Strengthen global ICE market share in existing portfolio Indian market Two wheelers Largest supplier of connecting rods, rocker arms and gear shifter forks Light Vehicles Key industry trends Sansera focuses on providing Largest › Faster engine upgrades high value-added and supplier of connecting rod
Slide 30: Product portfolio transformation
Product portfolio transformation Aggressively expanding the product range into fast growing and trending space EV & Tech-Agnostic and Defense & Aerospace High focus on new age comps in Auto side and Non-auto comps in recent years GSF (2W) Split Fractured GSF Integral Suspension Non-Auto Cabin Tilt N
Slide 31: Strengthen xEV Business
Strengthen xEV Business Sansera endeavors to be ahead of the curve in the EV space with a clear emphasis and focus on development of a new mobility world Wealth of experience in ICE providing solid foundation for growth in the EV space Strong R&D and design capabilities to meet the requirements of b
Slide 32: Strategic investment in MMRFIC Technology Pvt Ltd (Bengaluru)
Strategic investment in MMRFIC Technology Pvt Ltd (Bengaluru) Deal Size INR 200 Mln completed MMRFIC is a Research, Design and ~21% stake based on actual Manufacturing entity, building sub- systems for next generation Radars by FY24 EBITDA leveraging machine learning with Date – March 2023 artificia
Slide 33: Way forward
Way forward We will continue to focus on • Delivering high quality products to customers • Capital efficiency • Consistent performance Maintain momentum to grow non-auto business Continue to add high tech products to the portfolio Enhance exports in auto and non-auto space Explore inorgani
Slide 34: Historical Performance
Won | ANU ‘AMM AAI ‘A ren Historical Performance
Slide 35: Historical Performance Highlights
Historical Performance Highlights Margins Rs in Mln Revenue from Operations* EBITDA PAT 15.7% 18.1% 17.1% 16.4% 17.1% 5.5% 7.1% 6.6% 6.3% 6.8% 28,114 23,460 19,975 4,799 1,875 15,593 3,848 1,483 14,615 3,421 1,319 2,821 1,099 2,290 799 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22
Slide 36: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss Particulars (Rs. in Mln) FY24 FY23 FY22 FY21 FY20 Revenue From Operation 28,114 23,460 19,975 15,593 14,615 Cost of goods sold (incl power & fuel cost) 16,877 14,162 11,896 9,167 8,811 Gross Profit 11,237 9,299 8,079 6,425 5,804 Gross Profit Margin 40.0% 39.
Slide 37: Annexure
x . | | ‘ pa | ae a Yi i 4 — i peel NESE 7¥E. C4 \ / pe PLA ee y
Slide 38: Distinguished Board of Directors
Distinguished Board of Directors S Sekhar Vasan F R Singhvi B R Preetham Chairman and Managing Director Joint Managing Director Executive Director & CEO › 30+ years of experience and has oversight across all › 40 years of experience in the field of manufacturing › 40+ years of professional experienc
Slide 39: Experienced Professional Management Team (1/2)
Experienced Professional Management Team (1/2) Sansera is an employee driven, professionally managed organization. Majority of the senior management has been with the Company for more than 10 years and have led the expansion of our product families and customer base, resulting in business growth and
Slide 40: Experienced Professional Management Team (2/2)
Experienced Professional Management Team (2/2) P R Suresh Rakesh S B Head Corp. Training & Quality system and Chief Risk Officer Head Aerospace Division › 30+ years of experience in the fields of quality systems › 30+ years pf experience in various fields including sales, management marketing and ae
Slide 41: Strong execution capabilities (1/2)
Strong execution capabilities (1/2) 550+ Dedicated engineering team supporting automotive, aerospace, machine building, automation & technical functions In- House Machine Building Capabilities Automated Cells Vertical honing machines Double disc grinding machines 8 station special Rough Boring propo
Slide 42: Strong execution capabilities (2/2)
Strong execution capabilities (2/2) Product Design 3D Modelling CAE and Testing Advanced engineering Process Design AutoCAD – 2D Siemens Teamcentre (Product Lifecycle Implemented Siemens PLM Management) (Product Lifecycle Management) software to Special cutting Machine Design integrate all engineeri
Slide 43: Awards & Accolades For The Period Gone By
Awards & Accolades For The Period Gone By ACMA Gold Award for Yamaha Sustainability Business & Supplier Conference Safety 2024 2024 Honda Motor India Raytheon Royal Enfield Honda Premier Award for Fanuc Robotics V E Powertrain Delivery & Quality of Reliable partner in Annual Supplier outstanding Bes
Slide 44: Recent CSR Activities Conducted In School: Residential Summer Camp
Recent CSR Activities Conducted In School: Residential Summer Camp Overview Of The Impactful Outcomes Of Summer Camp › Holistic Development: Through a well-rounded curriculum including yoga, meditation, creative activities, and special sessions on core subjects and languages, we fostered holistic de
Slide 45: Recent CSR Activities Conducted In School: Co-curricular Activities
Recent CSR Activities Conducted In School: Co-curricular Activities Music Yoga Computer Physical Education Computer Training Center at Sansera Gurubhavan Provides Training for Students 44
Slide 46: Recent CSR Activities Conducted In School: Blood Donation
Recent CSR Activities Conducted In School: Blood Donation No. of Units Plant wise No. of Units Sl. No. Date Plant Event Partner donated 200 181 180 1 17-04-2024 Plant - 7 67 Sankalpa Foundation 160 140 2 19-04-2024 Plant - 7 114 Narayana Hrudayalaya 120 105 100 3 22-05-2024 Plant - 2 70 Narayana Hru
Slide 47: Recent CSR Activities Conducted In School: Other Activities
Recent CSR Activities Conducted In School: Other Activities Best Teacher Felitation Programme Conducted At Plant - 7 Vehicle Support To 2 Physical Challenged Persons Support To Animal Rehabilitation Center For Stray Dogs 46
Slide 48: Highly involved in ESG Practices (1/3)
Highly involved in ESG Practices (1/3) Initiatives taken in Education Sector (govt schools) 5s Award given in Hargadde School Sepember 2023 5s Activity at Schools Q2 2023 Rs. 24.9 Lakhs Scholarship distributed Scholarship Program Voluntaries at School Independence day program Supporting to Sports pl
Slide 49: Highly involved in ESG Practices (2/3)
Highly involved in ESG Practices (2/3) Initiatives taken in Health Sector International Yoga day Celebration BP Awareness Program in Bengur School ADOPTION OF TB PATIENTS OF ANEKAL TALUK - TB Health care program at Sansera supported schools & Elimination program event partners - Narayana Netralaya &
Slide 50: Highly involved in ESG Practices (3/3)
Highly involved in ESG Practices (3/3) Initiatives taken for Environment KYALASANAHALLI LAKE January 2017 Present • Hands-free Waste Processing TRASHBOT • Segregates into bio and Non-bio Components A de-centralised • Handles all kinds of Mixed Waste automated mixed waste • Output Efficiency of up to
Slide 51: Other ESG Activities
Other ESG Activities Sansera Sustainable programs shared at a State level meeting by Sansera’s JMD Plantation by Sansera Employees 50
Slide 52: Thank you
For more information please contact: Company: Sansera Engineering Limited CIN: L34103KA1981PLC004542 Mr. Rajesh Kumar Modi, Company Secretary & Compliance Officer Email id: rajesh.modi@sansera.in Investor Relations Advisor: Strategic Growth Advisors Pvt Ltd. CIN: U74140MH2010PTC204285 Shikha Puri /