Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Escorts — Q4 FY21 Earnings Presentation
33 slides from Escorts Kubota's earnings presentation, May 14, 2021
Slide 1: Exchange filing cover letter for revised earning presentation
May 14, 2021 BSE Limited National Stock Exchange of Delhi Stock Exchange Phiroze Jeejeebhoy Towers, India Limited Limited Dalal Street, Exchange Plaza, DSE House, 3/1, Mumbai – 400 051 Bandra Kurla Complex, Asaf Ali Road, Bandra East, New Delhi – 110 002 Mumbai – 400 051 BSE – 500495 NSE – ESCORTS D
Slide 2: Q4 FY21 Earning Presentation
Q4 FY21 | EARNING PRESENTATION 14th May 2021 BSE: 500495 | NSE: ESCORTS Copyright @ Escorts Ltd. ESCORTS LIMITED 1
Slide 3: Contents
Contents • Escorts Ltd. An Overview • Q4 FY21 at a Glance (Standalone) • Highlights • YoY at a Glance • Revenue highlights • QoQ at a Glance • FY21 at a Glance (Standalone) • Credit Rating & Debt Profile • Management Message • Segmental Highlights • EAM • ECE • RED • Shareholding pattern • FY21 at a
Slide 4: Escorts Limited: An Overview
Escorts Limited: An Overview India's leading engineering conglomerates and for over Seven decades it has helped accelerate India’s socio-economic development through its presence across the high growth sectors of • Agri-machinery Escorts • Construction & Material Handling Equipment Agri Machinery (E
Slide 5: Escorts Ltd. Q4 FY21 at a Glance
Escorts Ltd. Q4 FY21 at a Glance Industry Escorts Ltd. Particulars (YoY) Variance Growth Growth Domestic Tractor Volume 63.4% 61.8% -1.6% Export Tractor Volume 65.4% 68.2% 2.8% Total Tractor Volume 63.6% 62.1% -1.5% PNC Volume 49.7% 62.3% 12.5% BHL Volume 54.0% 108.3% 54.3% Compactor Volume 37.8% 23
Slide 6: Standalone Q4FY21 YoY at a Glance
Standalone Q4FY21 YoY at a Glance Escorts Ltd. Particulars Unit Q4FY21 Q4FY20 Variance Domestic Tractor Market Share % 12.9 13.1 -13 bps Revenue from operations ₹ Cr. 2,210.5 1,380.7 60.1% Material Cost % 68.5 62.2 627 bps Manpower Cost % 6.6 9.4 -273 bps EBIDTA ₹ Cr. 344.7 194.4 77.3% EBIDTA Margin
Slide 7: Standalone Q4FY21 Highlights YoY
Standalone Q4FY21 Highlights YoY •EAM at 32,588 • Q4: ₹ 344.7 Cr. Volume & Sales • Q4: ₹ 2,210.5 Cr. EBIDTA • Q4 Profit Revenue •YoY up by 62.1% • YoY up by 60.1% • Margin at 15.6% • YoY margin up by • PAT: ₹ 271.3 Cr. Division Wise Revenue 151 bps • Margin at 12.3%. •ECE at 1,604 Split • YoY PAT up
Slide 8: Q4 - YoY Revenue grew by 60.1%; EBIT up by 82.2%
Q4 - YoY Revenue grew by 60.1%; EBIT up by 82.2% ₹ Cr. Q4 Revenue Key Highlights (YoY) • Tractor Sales up by 62.1% at 32,588 units • Construction Sales up by 62.7% at 1,604 units • Railway division revenue up by 35.6% ₹ Cr. Q4 EBIT Key Highlights • Operating leverage in all divisions. • Lower sales
Slide 9: Standalone Q4FY21 QoQ at a Glance
Standalone Q4FY21 QoQ at a Glance Escorts Ltd. Particulars Unit Q4FY21 Q3FY21 Variance Domestic Tractor Market Share % 12.9 11.6 132 bps Revenue from operations ₹ Cr. 2,210.5 2,017.4 9.6% Material Cost % 68.5 65.7 285 bps Manpower Cost % 6.6 6.7 -9 bps EBIDTA ₹ Cr. 344.7 364.1 -5.3% EBIDTA Margin %
Slide 10: Standalone Q4FY21 Highlights QoQ
Standalone Q4FY21 Highlights QoQ •EAM at 32,588 Volume & Sales • Q4: ₹ 2,210.5 Cr. EBIDTA Profit Revenue •QoQ up by 3.3% • Q4 • QoQ up by 9.6% • Q4: ₹ 344.7 Cr. • PAT: ₹ 271.3 Cr. Division Wise Revenue • Margin at 15.6% • Margin at 12.3%. •ECE at 1,604 Split •QoQ up by 27.9% • QoQ PAT down by • QoQ
Slide 11: Q4 - QoQ Revenue grew by 9.6%; EBIT down by 6.7%
Q4 - QoQ Revenue grew by 9.6%; EBIT down by 6.7% ₹ Cr. Q4 Revenue Key Highlights (QoQ) • Tractor Sales up by 3.3% at 32,588 units • Construction Sales up by 27.9% at 1,604 units • Railway division sale up by 24.8% ₹ Cr. Q4 EBIT Key Highlights • Operating leverage in both Construction and railway equ
Slide 12: Standalone FY21 at a Glance
Standalone FY21 at a Glance Escorts Ltd. Particulars Unit FY21 FY20 Variance Domestic Tractor Market Share % 11.3 11.6 -28 bps Revenue from operations ₹ Cr. 6,929.3 5,761.0 20.3% Material Cost % 66.3 66.3 -1 bps Manpower Cost % 7.7 8.9 -114 bps EBIDTA ₹ Cr. 1,129.3 675.8 67.1% EBIDTA Margin % 16.3 1
Slide 13: FY - YoY Revenue grew by 20.3%; EBIT up by 76%
FY - YoY Revenue grew by 20.3%; EBIT up by 76% ₹ Cr. FY Revenue Key Highlights (YoY) • Tractor Sales up by 24.1% at 1,06,741 units • Construction Sales down by 3.2% at 3,913 units • Railway division sale marginally up by 0.4% ₹ Cr. FY EBIT Key Highlights • Operating leverage in Agri Machinery Busine
Slide 14: Standalone FY21 Highlights
Standalone FY21 Highlights •EAM at 1,06,741 • FY: ₹ 1,129.2 Cr. Volume & Sales • FY: ₹ 6,929.3 Cr. EBIDTA • FY Profit Revenue •YoY up by 24.1% • YoY up by 20.3% • Margin at 16.3% • YoY margin up by • PAT: ₹ 874.1 Cr. Division Wise Revenue 457 bps •ECE at 3,913 Split • Margin at 12.6%. •YoY down by 3
Slide 15: Credit Rating & Debt Profile
Credit Rating & Debt Profile Long Term Credit LBBB- LBBB LBBB+ A- A A+ AA- AA- AA Rating (₹ Crs.) 600 553 436 480 361 263 50 277 7 0 120.0 111.0 Rating Upgrade by ICRA & CRISIL 500 100.0 96.0 AA with 400 290 Stable outlook 80.0 206 302 300 50.0 60.0 57.0 200 220 40.0 159 220 263 31.0 28.6 230 18.5 1
Slide 16: Management Message
Management Message “The entire country is under a severe impact of second wave of pandemic. This time it has impacted the rural geographies as well affecting our core customer base. Escorts topmost priority at this time is safety and well-being of our customers, dealers, suppliers and our employees.
Slide 17: Segment Performance: EAM
Segment Performance : EAM Powering The Dreams Of Farmer 14-05-2021 Copyright @ Escorts Ltd. ESCORTS LIMITED 16
Slide 18: Domestic Tractor Industry Overview
Domestic Tractor Industry Overview In Lakh Quarterly Fiscal Year 2.59 8.99 2.39 7.09 1.46 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 • In Q4FY21 on Y-o-Y domestic Industry up by ~63.4%. • Industry in Q4FY21 on Y-o-Y basis in North and central region grew by 78%, whereas industry grew by 50.3% in South and west
Slide 19: Q4FY21 Segment Highlights: EAM
Q4FY21 Segment Highlights : EAM • Domestic at • Q4: ₹ 295.8 Cr. Volume Revenue EBIT •Market Share at Domestic Market Share • At ₹ 1,738.8 Cr. 30,930 12.9% • YoY up by 76.4% • YoY up by 61.8% •YoY down by 13 • YoY up by 64.3% • QoQ down by 11.1% • QoQ up by 2.9% bps • QoQ up by 5.2% •QoQ up by 132 bp
Slide 20: FY21 Segment Highlights: EAM
FY21 Segment Highlights : EAM • Domestic at • FY: ₹ 1,031.2 Cr. Volume Revenue •Market Share at EBIT Domestic Market Share 11.3% • At ₹ 5,667.3 Cr. 1,01,848 • YoY up by 78.9% • YoY up by 23.8% • YoY up by 27.7% • YoY down by 28 bps • Export at 4,893 •Farmtrac : • Margin at 18.2% • YoY up by 29.9% •
Slide 21: Segment Performance: ECE
Segment Performance : ECE PREFERRED PARTNER IN NATION BUILDING 14-05-2021 Copyright @ Escorts Ltd. ESCORTS LIMITED 20
Slide 22: Served-Construction Equipment Industry Overview
Served-Construction Equipment Industry Overview In ‘000s Quarterly Fiscal Year 22.0 57.9 51.4 17.6 14.0 Q4FY20 Q3FY21 Q4FY21 FY20 FY21 • Served industry (Backhoe Loaders, Pick n carry crane and Compactors) went up by 52.1% in Q4FY21 wrt to LY. • In Q4FY21 BHL industry up by 54%, compactor up by 38%
Slide 23: Q4FY21 Segment Highlights: ECE
Q4FY21 Segment Highlights : ECE • ECE at 1,604 • Q4: ₹ 322.0 • Q4: ₹ 23.4 Cr. Volume Revenue • Q4: Carne market Served industry Market Share EBIT • YoY up by 62.7% Share 40% Cr. • YoY up by 160.4% • QoQ up by 27.9% • YoY flat • QoQ up by 26.8% • YoY up by 53.3% • QoQ up by 253 bps • QoQ up by 31.6%
Slide 24: FY21 Segment Highlights: ECE
FY21 Segment Highlights : ECE • ECE at 3,913 • FY: ₹ 776.1 Cr. Volume Revenue • FY: Carne market Served industry Market Share EBIT • YoY down by 3.2% Share 38.2% • YoY down by 7.6% • FY: ₹ 27.8 Cr. • YoY down by ~28 • YoY down by 8% bps • Key Highlight •Revenue Break up • Served industry up by 11% i
Slide 25: Segment Performance: RED
Segment Performance : RED ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 14-05-2021 Copyright @ Escorts Ltd. ESCORTS LIMITED 24
Slide 26: Q4FY21 Segment Highlights: RED
Q4FY21 Segment Highlights : RED • Q4: ₹ 146.5 •Q4: ₹ 28.0 Cr. Order Book Revenue EBIT •As of March’21 more than ₹ 340 Cr. Cr. •YoY up by 85.2% •QoQ up by 88.3% • YoY up by 35.6% •Execution time 6~8 • QoQ up by 24.8% Months •Margin at 19.1% • Breakup •YoY up by 511 bps •Key Highlight •QoQ up by 644 b
Slide 27: FY21 Segment Highlights: RED
FY21 Segment Highlights : RED • FY: ₹ 479 Cr. • FY: ₹ 76.8 Cr. Order Book Revenue EBIT •As of March’21 • YoY up by 0.4% • YoY down by 11% more than ₹ 340 Cr. •Execution time 6~8 • Breakup • Margin at 16% Months • YoY down by 196bps •Key Highlight • Impacted due Covid Indian Railways is still not run
Slide 28: Shareholding Pattern
↑ SHAREHOLDING PATTERN 9.09% 9.09% 9.09% 27.99% 26.93% 21.97% 21.22% 20.62% 29.26% 30.32% 30.12% 30.92% 31.55% 2.51% 2.51% 2.23% 2.18% 2.15% 40.25% 40.25% 36.59% 36.59% 36.59% Mar'2020 June' 2020 Sept' 2020 Dec'2020 March'2021 Pr omoter s + T rust Non Pr om oter -Non Publ ic Institutions* Pu bl ic O
Slide 29: Consolidated Q4FY21 at a Glance
Consolidated Q4FY21 at a Glance Escorts Ltd. Particulars Unit Q4FY21 Q4FY20 YoY Q3FY21 QoQ Revenue from operations ₹ Cr. 2,228.8 1,385.7 60.8% 2,042.2 9.1% Material Cost % 68.5% 62.1% 632 bps 65.5% 298 bps Manpower Cost % 6.7% 9.6% -280 bps 6.8% -6 bps EBIDTA ₹ Cr. 343.8 182.1 88.8% 362.9 -5.3% EBID
Slide 30: Consolidated FY21 at a Glance
Consolidated FY21 at a Glance Escorts Ltd. Particulars Unit FY21 FY20 YoY Revenue from operations ₹ Cr. 7,014.4 5,810.1 20.7% Material Cost % 66.2% 66.1% 10 bps Manpower Cost % 7.8% 9.0% -116 bps EBIDTA ₹ Cr. 1,126.8 662.4 70.1% EBIDTA Margin % 16.1% 11.4% 466 bps PBT ₹ Cr. 1,154.8 625.3 84.7% PAT ₹
Slide 31: Narrations
Narrations • EAM – Escorts Agri Machinery • ECE – Escorts Construction Equipment • RED – Railway Equipment Division • FY – Fiscal Year represents the 12 months period from 1st April to 31st March. • Q4FY21 – Represents the 3 months period from 1st January 2021 to 31st March 2021. • Q3FY21 – Represen
Slide 32: Safe Harbor
SAFE HARBOR Certain statements in this document include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that im
Slide 33: Thank You
Thank You 14-05-2021 Copyright @ Escorts Ltd. ESCORTS LIMITED 32