Varroc Engineering Limited · NSE:VARROC
Varroc Engineering — Q2 FY19 Earnings Presentation
18 slides from Varroc Engineering's earnings presentation, Nov 13, 2018
Slide 1: Exchange filing cover letter: Investor Presentation
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel +91 240 6653600 email: varroc.info@varroc.com Waluj, Aurangabad 431 136 Maharashtra, India Fax +91 240 ·2564540 www.varrocgroup.com CIN: L28920MH19BBPLC047335 Vdrroc EXCELLENCE VARROC/SE/1 NT/2018-19/33 November 13, 2018
Slide 2: Q2 & H1 FY19 Results Presentation
Q2 & H1 FY19 Results Presentation
Slide 3: Industry Trends in Q2 FY19
Industry Trends in Q2 FY19 Global Passenger Cars Market Production -5.1% +2.0% -3.7% • Global Passenger Vehicle 40,47,844 49,22,998 39,70,125 65,55,372 63,10,626 46,74,079 production declined in Q2 FY19 • Decline in Europe and China due to Brexit uncertainty, EU diesel regulations and US - China tra
Slide 4: Business Highlights: Q2 FY19
Business Highlights : Q2 FY19 • Revenue from Operations for Q2 FY19 up by 26.5% YoY# • EBITDA increased by 21.7% YoY* • Reported PAT for the quarter at Rs 1,009 Million; up by +9.0% YoY • India Business: strong performance with 27.4% Revenue growth and 40 bps EBITDA margin improvement • VLS: strong
Slide 5: Varroc Group: Summary Key Financials Q2 & H1 FY19
Varroc Group: Summary Key Financials Q2 & H1 FY19 (INR Mn) Growth Growth Particulars Q2 FY 19 Q2 FY18 (Y-o-Y) H1 FY19 H1 FY18 (Y-o-Y) Revenue from operations – Reported 30,011 24,192 24.1% 59,281 48,534 22.1% Revenue from operations - like-for-like $ 29,744 23,511 26.5% 58,931 46,158 27.7% EBITDA -
Slide 6: Varroc Group: Business Wise Performance Q2 FY19
Varroc Group: Business Wise Performance Q2 FY19 (INR Mn) Q2 FY19 Q2 FY18 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA Like-for-like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 11,497 11,497 1,393 1,393 12.1% 8,953 9,024 1,055 1,055 11.
Slide 7: India Business: Financial Performance
India Business : Financial Performance Revenue India Revenue Split by Customer(1) Q2 FY 2019, % (INR Mn) +27% 11,497 Bajaj 23.2% 8,953 9,024 Honda 2.3% Royal Enfield 4.8% 53.0% Yamaha Q2 FY2018 Q2 FY2018 Q2 FY2019 6.4% Reported Adjusted Reported Mahindra & Mahindra 10.2% Strong growth across divisio
Slide 8: Global Lighting Business (VLS): Financial Performance
Global Lighting Business (VLS): Financial Performance 50% China Joint Venture: Q2 FY 18 Revenue: 1710 Mn INR Revenue (1) Q2 FY 19 Revenue: 1122 Mn INR VLS Revenue Split by Customer(2) (INR Mn) Q2 FY 2019, % +24% 13.1% Customer A 22.5% 17,206 16,939 Customer B 14,399 13,647 12.5% Customer C Customer
Slide 9: Global Lighting Business (VLS): EBITDA variation analysis
Global Lighting Business (VLS): EBITDA variation analysis (Eur Mn) -5.6% 8.4 20.2 20 18 16 14.8 1.8 14 12.8 - 2.0 1.4 0.1 12.1 12 0.6 - 1.2 - 10 1.0… - 8 Q2 FY2018 Discontinued Q2 FY2018: Revenue RM impact Overheads Other income Q2 FY2019: Start-up Costs Launch Ind AS 115 Q2 FY2019: Interior Like-fo
Slide 10: Global Lighting Business: IND AS 115 impact Analysis
Global Lighting Business: IND AS 115 impact Analysis Change in accounting for pre-production engineering service activities viz Engineering Design and Development (ED&D) Earlier: ED&D revenue was recognized at the time of invoicing as a lumpsum to customer, on receiving approval for the design befor
Slide 11: Varroc Group: Business Wise Performance H1 FY19
Varroc Group: Business Wise Performance H1 FY19 (INR Mn) H1 FY19 H1 FY18 Revenue EBITDA # Revenue EBITDA # Revenue SBU Revenue Adjusted* EBITDA Like-for-like % EBITDA Revenue Adjusted* EBITDA Like-for-like % EBITDA Growth YoY India Business 21,928 21,928 2,457 2,457 11.2% 18,035 17,154 1,850 1,850 1
Slide 12: Varroc Group: Debt movement H1 FY19
Varroc Group: Debt movement H1 FY19 (INR Mn) Net Debt as on 31 March 2018 8,701 (-) EBITDA H1 FY2019 (5,613) (+/-) Working Capital Changes 6,803 (+) Capex 6,395 (+/-) Investments / acquisitions 3,427 (+) Others 1,296 17,922 Net Debt as on 30 September 2018 21,009 • Capex for the year is front loaded
Slide 13: R & D / Business Updates
R & D / Business Updates Global Lighting Business • VISION 2019, Paris conference on automotive lighting: VLS showcased it’s concept car featuring innovative lighting concepts and ADAS features. VLS also demonstrated a test vehicle equipped with OPTI-MATRIX headlamps, which deliver Advanced Driving
Slide 14: Construction Status – Halol, Gujarat
Construction Status – Halol, Gujarat Entry Gate Cooling Towers Shop floor Shop floor training 13
Slide 15: Construction Status – Halol, Gujarat
Construction Status – Halol, Gujarat Assembly line Base Coat Metallising Facility Moulding 14
Slide 16: Construction Status – Bulgaria
Construction Status – Bulgaria Manufacturing facility Shop floor Assembly line Assembly line 15
Slide 17: Business Outlook
Business Outlook India Business • Indian 2W/3W market : festival season demand weaker than expected. • Overall market growth slowing down due to insurance regulations and fuel prices VLS Business • Czech: Focus on improving operational efficiencies at Czech plants • Turkey: Integration making good p
Slide 18: Thank You
Thank You