Ceat Limited · NSE:CEATLTD
Ceat — Q1 FY21 Earnings Presentation
27 slides from Ceat's earnings presentation, Jul 29, 2020
Slide 1: Q1 FY21 – Investor Presentation
An Group Company Q1 FY21 – Investor Presentation | 29th July, 2020
Slide 2: Disclaimer
Disclaimer This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures,
Slide 3: Table of Contents
Table of Contents Section 1: RPG Group Overview 4-6 Section 2: Business Overview 7-18 Section 3: Operational & Financial Overview 19-27
Slide 4: Section 1: RPG Group Overview
Section 1: RPG Group Overview
Slide 5: RPG Group: Powered by Passion, Driven by Ethics
RPG Group: Powered by Passion, Driven by Ethics RPG Enterprises was founded in 1979. The group currently operates in various UNLEASHTALENT industries - Infrastructure, Technology, Life Sciences, Plantations and Tyre Manufacturing. The group has a history of business dating back to 1820 AD in TOUCHLI
Slide 6: RPG Group: Key Financials
RPG Group: Key Financials FY15-19 FY15-19 CAGR: Gross Total Income (Rs Cr.) EBITDA PAT CAGR: 5.6% EBITDA 9.8% PAT 10.4% 2,423 23,833 2,218 21,766 2,014 2,045 19,183 19,271 20,052 1,668 1,031 1,099 879 980 739 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Net Worth ROE ROCE Market Cap 9,000.00 40
Slide 7: Section 2: Business Overview
Section Section2:4:Business BusinessOverview Overview
Slide 8: Board of Directors
Board of Directors Harsh Vardhan Goenka Anant Goenka Arnab Banerjee Atul C. Choksey Chairman, Non Executive Director Managing Director COO and Whole Time Director Non Executive Independent Director Pierre E. Cohade Haigreve Khaitan Mahesh S. Gupta Paras K. Chowdhary Non Executive Non Executive Non E
Slide 9: Leadership Team
Leadership Team Anant Goenka Kumar Subbiah Arnab Banerjee Milind Apte Senior Vice President Managing Director Chief Financial Officer Chief Operating Officer – Human Resources Dilip Modak Vijay Gambhire Saurav Mukherjee Peter Becker Senior Vice President Managing Director – CEAT Specialty, Senior Vi
Slide 10: Overview
Overview India’s leading tyre company with over 50 yrs of presence Distribution Network : 4,000+ dealers, 500+ exclusive CEAT franchisees 7 Manufacturing facilities - Bhandup, Nasik, Halol, Nagpur, Ambernath, Chennai & Sri Lanka 100+ countries where products are sold with strong brand recall #No 1 p
Slide 11: Strategy
Strategy Differentiated Product OEM Relationships Strong Brand World Class R&D Extensive Distribution Global Reach 11
Slide 12: Differentiated Products
1 Differentiated Products Strengthening OEM Relationships Key developments ▪ Focus on OEM, recent entries in new models –Honda Activa (BSVI), Honda CB Shine SP (BSVI), Hero MotoCorp Splendor iSmart (BSVI), Hero MotoCorp HF Deluxe (BSVI), Hero Dare 125, Hero Duet E, Maruti Suzuki Alto VXI+, Hero Glam
Slide 13: Strong Brand
2 Strong Brand CEAT’s high CEAT’s ode to the Unsung Heroes performance Truckers and Fleets tyres ensure Superior Grip throughout the monsoons Doorstep fitment of tyres and other services through our company TyresNmore 13
Slide 14: Extensive Distribution
3 Extensive Distribution CEAT Shoppe Shop in Shop (SIS) Multi Brand Outlet CEAT Bike Shoppe 4000+ 300+ 600+ Dealers & 2W Distributors Districts Channel Partners 500+ 35,000+ 400+ CEAT Franchisees Sub-dealers MBO / SIS 14
Slide 15: Deep OEM Partnerships
4 Deep OEM Partnerships TATA Motors Ashok Leyland VECV Escorts AMW TAFE Mahindra Daimler Eicher SML Isuzu JBM Group Maruti Suzuki TATA Motors Mahindra Renault Hyundai KIA Force Motors Datsun Skoda Peugeot Volkswagen Morris Garage Honda Royal Enfield Bajaj Yamaha Suzuki Hero Hero Electric Piaggio LML
Slide 16: World Class R&D
5 World Class R&D State-of-the-Art R&D Center, Halol R&D Office, Germany ▪ Significant investment on tyre testing infrastructure like Anechoic Chamber, Flat Track Test Machine ▪ Focus on upcoming technologies like Electric Vehicle, Sustainability and Smart Tyres 16
Slide 17: Expanding Global Reach
6 Expanding Global Reach Key Export Clusters Emerging markets ▪ Exports to 90+ Countries in 7 Europe Cluster clusters US Cluster ▪ Sri Lanka: Manufacturing facility and Leadership position Middle East in the market and with 50+% Cluster market share Far East 1 Cluster Far East 2 Cluster ▪ Focused pr
Slide 18: Section 3: Operational & Financial Overview
Section Section3:5:Operational Operational&&Financial Financial Overview Overview
Slide 19: Q1 FY21 Operational Highlights
Q1 FY21 Operational Highlights Great Places to Work Survey 19
Slide 20: Consolidated: Q1 FY21 Financial Highlights
Consolidated: Q1 FY21 Financial Highlights Q1 FY21 v/s Q4 FY20 (Q-o-Q) Q1 FY21 v/s Q1 FY20 (Y-o-Y) ▪ Net revenue from operations declined by 28.8% at INR ▪ Net revenue from operations declined by 36.1% at INR 1,120 Crs from INR 1,573 Crs 1,120 Crs from INR 1,752 Crs ▪ Gross margin contracted to 40.3
Slide 21: Consolidated: Financial Trends – Revenue growth
Consolidated: Financial Trends Revenue growth 6,985 6,779 6,283 5,722 5,447 Net Sales (Rs Cr) 1,120 FY16 FY17 FY18 FY19 FY20 Q1 FY21 809 16.0% 741 EBITDA (Rs Cr) 685 Margin trends 14.0% 14.9% 638 663 12.0% 12.0% 10.0% 10.9% 10.2% 9.5% 9.4% 8.0% EBITDA to Net 6.0% Sales % 4.0% 105 2.0% 0.0% FY16 FY17
Slide 22: Consolidated: Financial Trends – PAT trends
Consolidated: Financial Trends 500 8.0% 9.0% 6.3% 7.0% 400 3.7% 3.6% 3.4% 5.0% 300 PAT (Rs Cr) PAT trends 3.0% 200 438 361 1.0% 100 233 251 230 PAT to Net (35) Sales% -1.0% - -3.0% (100) FY16 FY17 FY18 FY19 FY20 Q1 FY21 -5.0% -3.1% Notes All figures are per IND AS 22
Slide 23: Consolidated: Q1 FY21 Financials
Consolidated: Q1 FY21 Financials All figures in INR Cr Parameter Q1 FY20 Q4 FY20 Q1 FY21 QoQ YoY Net Revenue from operations 1,752.1 1,573.4 1,120.2 -29% -36% Raw Material 1,059.6 855.2 669.3 -22% -37% Gross margin 692.5 718.3 450.9 -37% -35% Gross margin % 39.5% 45.6% 40.3% (540) bps 73 bps Employe
Slide 24: Consolidated: Leverage / coverage Profile
Consolidated: Leverage / coverage Profile Total Debt (INR Cr) 663 924 872 1498 1929 1998 200 0 1688 LT Debt (Rs Cr) 1693 Debt breakup 150 0 1274 ST Debt (Rs Cr) 0.69 100 0 0.66 866 0.54 676 500 630 0.33 D/E 0.38 0.32 34 58 196 224 236 311 0 FY 16 FY 17 FY18 FY19 FY20 Q1 FY21 Leverage ratios 809 685
Slide 25: Standalone: Q1 FY21 Financials
Standalone: Q1 FY21 Financials All figures in INR Cr Parameter Q1 FY20 Q4 FY20 Q1 FY21 QoQ YoY Net Revenue from operations 1,703.6 1,523.6 1,066.5 -30% -37% Raw Material 1,047.5 847.3 648.8 -23% -38% Gross margin 656.1 676.4 417.8 -38% -36% Gross margin % 38.5% 44.4% 39.2% (522) bps 66 bps Employee
Slide 26: Equity Shareholding & Price trends
Equity Shareholding & Price trends Share Price (INR) Total Volume 1,200 1,000,000 1,000 800,000 800 600,000 600 400,000 400 200 200,000 - - Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Source : Capitaline. The above data is updated till 31st March 2020 Sharehol
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