Talbros Automotive Components Limited · NSE:TALBROAUTO
Talbros Automotive Components — Q3 FY20 Earnings Presentation
35 slides from Talbros Automotive Components's earnings presentation, Feb 13, 2020
Slide 1: Investor Presentation February 2020
1 INVESTOR PRESENTATION February 2020 1
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Talbros Automotive Components Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscrib
Slide 3: Talbros Automotive Components Ltd (TACL) - Group
Talbros Automotive Components Ltd (TACL) - Group Product Portfolio Entities TACL Group Turnover*(Rs. Crs) FY19 9M FY20 TACL Standalone 333 203 Gaskets Nippon Leakless Talbros Pvt Ltd 122 80 9M FY20 522 Forgings TACL Standalone 166 101 FY19 V/S 803 Magneti Marelli Talbros Chassis Chassis Components 1
Slide 4: TACL Group – Corporate Structure
TACL Group – Corporate Structure Figures in Rs. Crores FY19^ 9M FY20^ Talbros Auto Components Limited – Group Turnover Gaskets 333 203 Talbros Automotive Components Ltd. Forgings 166 101 FY19 9M FY20 40% 50% 50% 803 522 Nippon Leakless Talbros Pvt Magneti Marelli Talbros Talbros Marugo Rubber Pvt Lt
Slide 5: FY20 Guidance: Revised
FY20 Guidance: Revised Group Turnover# Rs. 675 – 700 Crs Auto Sector has been hit by multiple Headwinds Few of our key customers have undertaken Revenue# prolonged production Revised FY20 (As per Ind AS) shutdowns thus Target Rs. 435 – 475 Crs hampering our growth Based on the above we have revised
Slide 6: Consolidated 9M FY20 Highlights
Consolidated 9M FY20 Highlights Commenting on the performance Mr. Anuj Talwar, Jt. Managing Director, 299 Crores Talbros Automotive Components Limited said: “The calendar year 2019 turned out to be the toughest year for the Total Income^ Automobile Industry. Several headwinds marred the sector resul
Slide 7: Consolidated Q3 FY20 Performance Highlights
Consolidated Q3 FY20 Performance Highlights Rs. Crores Total Income from Operations^ EBIDTA^ PAT 127.8 15.1 6.4 97.4 11.7 4.3 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 As per Ind AS ^ Includes other income 7
Slide 8: Consolidated 9M FY20 Performance Highlights
Consolidated 9M FY20 Performance Highlights Rs. Crores Total Income from Operations^ EBIDTA^ PAT 381.1 45.0 20.3 298.6 34.2 11.9 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19 9MFY20 As per Ind AS ^ Includes other income 8
Slide 9: Q3 FY20 JV’s Performance Highlights
Q3 FY20 JV’s Performance Highlights Nippon Leakless Talbros Pvt Ltd* Magneti Marelli Talbros Chassis Systems Talbros Marugo Rubber Pvt Ltd* Pvt Ltd* Total Income from Operations Total Income from Operations Total Income from Operations 11.1 18.4 6.9 16.4 6.2 9.2 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3
Slide 10: 9M FY20 JV’s Performance Highlights
9M FY20 JV’s Performance Highlights Nippon Leakless Talbros Pvt Ltd* Magneti Marelli Talbros Chassis Systems Talbros Marugo Rubber Pvt Ltd* Pvt Ltd* Total Income from Operations Total Income from Operations Total Income from Operations 37.6 50.3 51.0 19.7 32.0 17.8 9MFY19 9MFY20 9MFY19 9MFY20 9MFY19
Slide 11: Q3 & 9M FY20 Consolidated Profit & Loss Statement
Q3 & 9M FY20 Consolidated Profit & Loss Statement Particulars (Rs. In crores) Q3 FY20 Q3 FY19 9M FY20 9M FY19 Revenue from Operations (Net of Excise) 95.4 125.1 293.7 376.6 Other Income 2.0 2.7 4.9 4.5 Total revenue from Operation 97.4 127.8 298.6 381.1 Raw Material 49.4 72.8 157.1 214.0 Employee Co
Slide 12: H1 FY20 Consolidated Balance Sheet
H1 FY20 Consolidated Balance Sheet ASSETS Sep-19 Mar-19 EQUITY AND LIABILITIES Sep-19 Mar-19 Non-current assets Equity Property, plant and equipment 142.5 139.7 Equity Share capital 12.3 12.3 Capital work-in-progress 8.9 6.4 Other equity 184.3 186.4 Intangible assets 1.6 1.1 Sub-total - Shareholders
Slide 13: Q3 & 9M FY20 Standalone Profit & Loss Statement
Q3 & 9M FY20 Standalone Profit & Loss Statement Particulars (Rs. In crores) Q3 FY20 Q3 FY19 9M FY20 9M FY19 Revenue from Operations (Net of Excise) 95.4 125.1 293.7 376.6 Other Income 2.0 3.9 6.1 8.1 Total revenue from Operation 97.4 129.0 299.8 384.7 Raw Material 49.4 72.8 157.1 214.0 Employee Cost
Slide 14: H1 FY19 Standalone Balance Sheet
H1 FY19 Standalone Balance Sheet ASSETS Sep-19 Mar-19 EQUITY AND LIABILITIES Sep-19 Mar-19 Non-current assets Equity Property, plant and equipment 142.5 139.7 Equity Share capital 12.3 12.3 Capital work-in-progress 8.9 6.4 Other equity 166.8 171.9 Intangible assets 1.6 1.1 Sub-total - Shareholders'
Slide 15: Business Confirmations & Strategy
Business Confirmations & Strategy Gaskets Standalone Nippon Leakless JV* ▪ New Orders in Q3FY20: • Order worth Rs. 7 Cr from 2 European car manufacturers for +5% supplying Heat Shields +10% • Order worth Rs. 5 Cr from US based car manufacturer for supplying 333 47 49 292 42 44 Gaskets 252 267 • Star
Slide 16: Business Confirmations & Strategy
Business Confirmations & Strategy Magneti Marelli Talbros Chassis Systems Pvt Ltd (MMT)* ▪ New Order in Q3FY20: 65 • Order worth Rs. 5 Mn from a European car manufacturer for +28% 54 51 supplying EPP Support Bracket 43 ▪ Order received in the past quarters: 31 • From a Domestic OEM for Lower Control
Slide 17: Leadership Team driving Growth & Profitability
Leadership Team driving Growth & Profitability Joint Managing Director Director & Group CFO Anuj Talwar Navin Juneja Is a Bachelor in Business Is a B.Sc. (Mathematics) and Administration from college of Chartered Accountant (FCA). He is William & Mary, Virgina, USA and working as Finance Head of Tal
Slide 18: About Us: One of the Most Hedged Auto Component Players
About Us Over 6 Decades of experience in Auto Component manufacturing One of the Diversified Auto Component player with presence across Two Wheelers, Passenger, Commercial Vehicles and Farm Equipment's Most Hedged Auto Wide client base, ~40% revenue from top 5 clients Component Businesses across OEM
Slide 19: Diversified Portfolio
Diversified Portfolio 9MFY20 - Revenue Contribution Segments Product Portfolio Market Exposure TMR 4% ▪ 2 Wheelers ▪ Gaskets ▪ OEMs NLK 8% ▪ 3Wheelers ▪ Heat Shields ▪ After Market MMT ▪ Passenger Vehicles ▪ Forgings ▪ Exports 14% ▪ Chassis Systems ▪ Commercial Vehicles ▪ Others Forgings ▪ Anti vibr
Slide 20: Growth Strategy
Growth Strategy 20
Slide 21: Strong Global Partnerships - Joint Ventures
Strong Global Partnerships - Joint Ventures Joint Ventures About the JV Products Customers ▪ Nippon Leakless Corporation (Japan) - One of the ▪ Hero Motor Corp largest global manufacturers of gaskets and a ▪ HMSI major Supplier for Honda Gaskets ▪ India Yamaha ▪ Honda Car India ▪ Established in 2005
Slide 22: Strong Tailwinds…
Strong Tailwinds… Stricter environmental Norms ▪ BS-VI expected implementation by 2020 Jump towards BS VI ▪ Developing new products such as Heat Shields under Technical Licensing Agreement with 01 SANWA Packaging Huge Potential of Indian Passenger Vehicles Segment Joint Ventures increasing ▪ India’s
Slide 23: The Automotive Opportunities
The Automotive Opportunities +27.4% +30.5% +9.9% Million Units 10.0 2.4 30.2 20.7 3.8 0.8 FY17 FY21F FY17 FY21F FY17 FY21F Passenger Vehicles Commercial Vehicles 2W & 3W Vehicles Source: IBEF TACL: Domestic Sales Break up 9MFY20 Agri & Off Others, 5% Loaders, 7% 2 & 3 Wheelers, 39% 20% 39% Strong gr
Slide 24: Business Overview
Business Overview 24
Slide 25: Key Milestones
Key Milestones Payen Talbros Technical Agreement •2008 - Technical Agreement JV with Marugo Rubber, incorporated in with Nippon Leakless, with SANWA, Japan Japan for Anti-Vibration collaboration with Japan to manufacture • 2009 – Technical Agreement and Hoses Coopers Payen UK Non-Asbestos Gaskets wi
Slide 26: Board of Directors
Board of Directors Mr. Naresh Talwar Mr. Umesh Talwar Mr. Varun Talwar Chairman Vice Chairman & MD Joint Managing Director Mr. Anuj Talwar Mr. Navin Juneja Mr. Vidur Talwar Joint Managing Director Director Non Executive Director Mr. V Mohan Mr Anil Kumar Mehra Mr. Amit Burman Independent Director In
Slide 27: Executive Management
Executive Management Mr. Manish Khanna Mrs. Seema Narang Chief Financial Officer Company Secretary A Qualified CA and MBA, he has over 17 years of experience with LeeBoy India She has over 22 years of experience in the secretarial department and has worked with Constructions, Doosan Infracore, Escor
Slide 28: Standalone Business - Gaskets
Standalone Business - Gaskets 9MFY20 Revenue Rs 203 Crores 9MFY20 OEM Breakup ▪ In – House tool design and manufacturing Export ▪ ~40% Market share in Gaskets 3x the Others 14% 2 & 3 Wheelers 5% 5% nearest competitor 13% After Passenger Vehicle ▪ Market Leader in – Two Wheeler, Agri & Market 47% 13%
Slide 29: Standalone Business - Forgings
Standalone Business - Forgings 9MFY20 Revenue Rs 101 Crores ▪ One stop solution for Hot Forging (750 to Exports 2,500 Ton Press) 44% ▪ In-House tool design and manufacturing OEM Others ▪ Strong presence in Overseas Market & 51% 5% Supplier to top Tier I companies ▪ One Stop Solution for Die Design,
Slide 30: Scope of Joint Ventures
Scope of Joint Ventures Rear Twist Beam Axle Fuel Hose Strut Mount Steering Bush Front Cross Members Engine Mount Suspension Arms Bush Wheel Group + Corner Module Air Hose Control Arms Knuckles Exhaust Hanger MMT MMT TMR TMR Existing Business Planned for Future Existing Business Planned for Future 3
Slide 31: Evolving Product Portfolio
Evolving Product Portfolio JV with Marugo Evolution Rubber Continues... Revenue FY07 JV with Magneti Marelli Hoses Hoses TA with SANWA Anti Vibration Anti Vibration Gasket 100% Acquired Sheet Metal, Products Products Entry into Forgings, JV with NLK - Gaskets Chassis Systems Chassis Systems Chassis
Slide 32: Hedged Customer Base
Diversified Customer - OEM 2 Wheeler Passenger Hedged Customer Base HCV/LCV Agri & Off Loader Agri & Off Loader 32
Slide 33: Manufacturing Facilities
Manufacturing Facilities Forging Gasket Bawal – Haryana Faridabad, Haryana (2 plants & R&D Centre) Pune, Maharashtra & Sitarganj, Uttarakhand Talbros Marugo Rubber Manesar – Gurgaon Nippon Leakless Bawal – Haryana Haridwar – Uttarakhand Magneti Marelli Talbros Faridabad - Haryana 33
Slide 34: Equity
Equity Consistently paying Dividend for the last 50 years In Rs 1.8 1.5 1.5 1.5 1.5 1.2 1.2 1.2 1.2 1.2 1.0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Promoter Shareholding 56.6% 56.6% 56.6% 56.6% 57.7% 51.5% 53.9% 54.0% 44.5% 45.6% 46.3% 41.6% 37.8% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Ju
Slide 35: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Talbros Automotive Components Ltd. Strategic Growth Advisors Pvt. Ltd. CIN: L29199HR1956PLC033107 CIN: U74140MH2010PTC204285 Mr. Navin Juneja – Director & Group CFO Mr. Shogun Jain / Mr. Pratik R. Shah Email: navinjunej
Talbros Automotive Components — Q3 FY20 Earnings Presentation on 6ix