Slide 1: Q2 FY2016 Earnings Presentation
DYNAMATIC TECHNOLOGIES LIMITED Q2 FY2016 EARNINGS PRESENTATION 3
Slide 2: Important Notice
IMPORTANT NOTICE This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies’ (“Dynamatic” or the “Company”) future busin
Slide 3: Performance Highlights: Consolidated Financial Highlights
PERFORMANCE HIGHLIGHTS Consolidated Financial Highlights Q2 FY2016 Highlights Revenue Breakup Q2 FY2016 • Net Revenues of Rs. 3,704 million • EBITDA of Rs. 338 million at 9.1% Q2 FY2015 margin 18% 16% • Interest expense declined by 14.6% y- o-y to Rs. 182 million 19% 19% 65% • Net Debt of Rs. 5,284
Slide 4: Performance Highlights: Management Commentary
PERFORMANCE HIGHLIGHTS Management Commentary Commenting on the results, Mr. Udayant Malhoutra, CEO and Managing Director said: “Our Automotive segment performance was impacted by the high volatility across various auto sub-sectors and geographies. Further, given the erratic and weak monsoon, rural d
Slide 5: Performance Highlights: Foreign Exchange Fluctuation
PERFORMANCE HIGHLIGHTS Foreign Exchange Fluctuation Exchange Rate Q2 FY2016 Q2 FY2015 Impact Impact % EURO vs. INR 71.22 81.11 (9.89) (12.2)% GBP vs. INR 99.11 100.94 (1.83) (1.8)% USD vs. INR 64.19 60.19 3.99 6.6% Impact due to change in average exchange rates (Y-o-Y) Particulars Erla DL UK JFTL To
Slide 6: Financial Performance Summary
FINANCIAL PERFORMANCE SUMMARY Consolidated Performance Highlights Q2 y-o-y Q1 q-o-q Half Year y-o-y Rs. million Growth Growth Growth FY16 FY15 (%) FY16 (%) FY16 FY15 (%) Revenue 3,704 4,319 (14.2)% 3,728 (0.7)% 7,432 8,569 (13.3)% EBITDA 338 374 (9.6)% 245 38.1% 583 837 (30.4)% Margin (%) 9.1% 8.7%
Slide 7: Aerospace and Defence Segment
AEROSPACE AND DEFENCE SEGMENT Q2 FY16 Revenue Financial Overview Breakup Q2 y-o-y Q1 q-o-q Half Year y-o-y Rs. Growth Growth Growth million FY16 FY15 FY16 FY16 FY15 India (%) (%) (%) UK 48% 52% Revenue 652 689 (5.4)% 598 9.1% 1,250 1,282 (2.5)% India 336 297 13.2% 266 26.3% 602 535 12.5% UK 316 392
Slide 8: Hydraulics Segment
HYDRAULICS SEGMENT Q2 FY16 Revenue Financial Overview Breakup Q2 y-o-y Q1 q-o-q Half Year y-o-y Rs. UK Growth Growth Growth 36% million FY16 FY15 FY16 FY16 FY15 (%) (%) (%) Revenue 692 817 (15.3)% 616 12.3% 1,308 1,599 (18.2)% India 443 508 (12.7)% 391 13.4% 834 965 (13.6)% UK 249 309 (19.5)% 225 10
Slide 9: Automotive Segment
AUTOMOTIVE SEGMENT Q2 FY16 Revenue Financial Overview Breakup Rs. Q2 y-o-y Q1 q-o-q Half Year y-o-y India million Growth Growth Growth 14% FY16 FY15 (%) FY16 (%) FY16 FY15 (%) Revenue 2,357 2,815 (16.3)% 2,510 (6.1)% 4,867 5,694 (14.5)% India – M 254 345 (26.5)% 281 (9.5)% 535 678 (21.1)% India – F
Slide 10: Quarterly Financial Trends
QUARTERLY FINANCIAL TRENDS Financial Performance Revenue (Rs. mn) and Growth (Q-o-Q) Segment Wise Revenue Contribution 4,319 16% 18% 17% 16% 18% 3,835 3,885 19% 17% 17% 17% 19% 3,728 3,704 1.6% 1.3% (0.7)% (4.0)% 65% 65% 66% 67% 64% (11.2)% Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q2 FY15 Q3 FY15 Q4
Slide 11: Focus on Deleveraging the Balance Sheet
QUARTERLY FINANCIAL TRENDS Focus on Deleveraging the Balance Sheet Capital Structure Interest Expense (Rs. mn) & Interest Coverage (x) (Rs. million) Sep 30, 2015 Sep 30, 2014 213 Long Term 4,760 3,987 Borrowings 193 Short Term 186 182 956 1,265 187 Borrowings Total Debt 5,716 5,252 0.6x 1.2x 1.2x 1.
Slide 12: Dynamatic Overview
DYNAMATIC OVERVIEW Diversified • A combination of stable and high growth businesses with highly engineered products business for the automotive, hydraulic, aerospace and defence industries • Successful track record of enhancing manufacturing capabilities through R&D and selective acquisitions Compet
Slide 13: Dynamatic Overview: Facilities, R&D and Customers
DYNAMATIC OVERVIEW Vertically • Advanced iron foundry in India and Germany. Also has aluminium foundry in India for Integrated captive use Facilities • Owns one of the most advanced ferrous foundries in Europe (Germany) capable of manufacturing highly intricate castings • In-house division for desig
Slide 14: Combination of Stable and High Growth Businesses
DYNAMATIC OVERVIEW Combination of Stable and High Growth Businesses AUTOMOTIVE • Ferrous and non-ferrous automotive components • Audi • Hyundai including engine, transmission, • BMW • Nissan turbocharger and chassis parts 64% of Q2 • Daimler • Tata Motors • Metallurgical ferrous and Ford Volkswagen
Slide 15: Blue Chip Investor Base
BLUE CHIP INVESTOR BASE Shareholding Structure Key Institutional Investors • Goldman Sachs India • L&T Infrastructure Fund Others Promoters Equity Fund 27% • Principal Mutual Fund 51% • HDFC Trustee Company • Param Capital Research Limited (HDFC Pvt Ltd Infrastructure Fund) DIIs • Citigroup Global •
Slide 16: Income Statement (Quarterly Trend)
FINANCIAL STATEMENTS Income Statement (Quarterly Trend) Profit & Loss Statement (Rs. million) Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Revenues Net Sales / Income from Operations (Net of Excise Duty) 4,270 3,790 3,838 3,691 3,670 Other Operating Income 49 45 47 37 33 Total Revenues 4,319 3,835 3,885
Slide 17: Income Statement (Annual Trend)
FINANCIAL STATEMENTS Income Statement (Annual Trend) Profit & Loss Statement (Rs. million) FY14 FY15 Revenues Net Sales / Income from Operations (Net of Excise Duty) 15,719 16,115 Other Operating Income 156 174 Total Revenues 15,875 16,288 Expenses Cost of Raw Materials Consumed 8,982 9,458 Changes
Slide 18: Balance Sheet Assets
FINANCIAL STATEMENTS Balance Sheet Assets Balance Sheet (Rs. million) Mar-14 Sep-14 Mar-15 Sep-15 ASSETS Non-Current Assets Goodwill 679 679 879 950 Fixed Assets i) Tangible Fixed Assets 5,967 5,558 5,355 5,211 ii) Intangible Fixed Assets 224 193 202 179 iii) Capital work in progress 28 71 44 295 No
Slide 19: Balance Sheet Liabilities
FINANCIAL STATEMENTS Balance Sheet Liabilities Balance Sheet (Rs. million) Mar-14 Sep-14 Mar-15 Sep-15 EQUITY and LIABILITIES Shareholders Fund Share capital 55 60 63 63 Reserves and surplus 1,376 2,134 2,453 2,397 Money Received against Share Warrants 100 0 0 0 Non-controlling interest (Preference
Slide 20: Contact Details
CONTACT DETAILS Mr. Hanuman Sharma Executive Director and Chief Financial Officer Dynamatic Technologies Limited Dynamatic Park Peenya Industrial Area Bangalore 560 058 India T: +91 80 2839 4933 / 34 / 35 F: +91 80 2839 5823 E: hanuman.sharma@dynamatics.net Mr. Naveen Chandra Head Legal, Compliance