Azad Engineering Limited · NSE:AZAD
Azad Engineering — Q3 FY2024 Earnings Presentation
31 slides from Azad Engineering's earnings presentation, Feb 6, 2024
Slide 1: Cover letter to stock exchanges
N-.- AZA D cs/rP-Q3 (2023-2+) A;N Date' 06th F ebruary, 2024 -----l---'-'-' ! To, i To, The Listing Department The Listing Department BSE Limited National Stock Exchange oflndia Ltd. Department of Corporate Affairs Exchange Plaza, Plot No. C/1-, G Block Phiroze Ieejeebhoy Towers Bandra-l(urla Comple
Slide 2: Azad Engineering Limited Investor Presentation February 2024
Azad Engineering Limited Investor Presentation February 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Azad Engineering Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Quarter gone by
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Slide 5: Q3FY24 - Highest ever quarterly performance
Q3FY24 - Highest ever quarterly performance 892 Rs. Mn Rs. 328 Mn 327 Rs. Mn Rs. 168 Mn (49% YoY growth) (37% margin) (37% margin) (19% margin) (87% YoY growth) (88% YoY growth) (Over 3x YoY growth) Revenue Adj EBITDA Reported EBITDA PAT Energy segment Rs. 725 Mn 36% 81% Q3FY24 Revenue YoY growth Re
Slide 6: Performance Highlights
Performance Highlights “We are happy to see an overwhelming response to our IPO. We thank all the shareholders for their faith in us. We welcome our new shareholders & Rakesh Chopdar congratulate every stakeholder of the company, i.e., employees, customers, business partners, bankers who made our IP
Slide 7: Revenue Mix
Revenue Mix (Rs. Mn) Q3FY24 Q3FY23 YoY Q2 FY24 QoQ 9MFY24 9MFY23 YoY FY23 Revenue from operations Energy 725.3 534.7 36% 728.7 0% 2,134.1 1,502.4 42% 2,190.8 Domestic 60.4 93.0 59.8 152.3 241.4 341.7 Exports 664.9 441.7 668.9 1,981.8 1,261.0 1,849.1 Aerospace & Defence 152.7 59.5 157% 81.9 86% 289.6
Slide 8: Profit & Loss Account
Profit & Loss Account (Rs. Mn) Q3FY24 Q3FY23 YoY Q2 FY24 QoQ 9MFY24 9MFY23 YoY Revenue from Operations 892.3 598.0 49% 828.4 8% 2,479.7 1,667.6 49% Consumption 103.3 79.7 121.2 302.3 195.3 ▪ Non-recurring expenses include: ▪ Fire related expenses Employee expenses 208.4 139.4 182.9 546.1 419.4 ▪ Pro
Slide 9: Utilisation of IPO Proceeds
Utilisation of IPO Proceeds Net Proceeds from IPO – Rs.2,227.49 Mn Rs. 604 Mn Funding Capital Expenditure Rs. 1,382 Mn Repayment of borrowings in part or full Rs.242 Mn General Corporate Purpose The amount utilized for general corporate purposes does not exceed 25% of the Gross Proceeds 8
Slide 10: Company Overview
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Slide 11: Azad Engineering Ltd.: Snapshot
Azad Engineering Ltd.: Snapshot Preferred name in the manufacturing of highly-engineered, complex and mission & life-critical components Supplying to highly regulated industries having significant entry barriers End-markets with massive TAM FY27 Aerospace & Defence INR 1,530 bn TAM Substantial exper
Slide 12: Project and Life Critical Portfolio of Diversified Products (1/2)
Project and Life Critical Portfolio of Diversified Products (1/2) Energy and Oil & Gas Industry Product Category Products End-Use Industry/Application Last Stage Airfoil – Rotary & Fixed Airfoil Last Stage Airfoil - Stationary Welding Chamfers Electric Power Generation Nuclear Power Turbine – Turbin
Slide 13: Project and Life Critical Portfolio of Diversified Products (2/2)
Project and Life Critical Portfolio of Diversified Products (2/2) Aerospace Aerospace and and Defence Defence Industry Industry Product Category Products End-Use Industry/Application Housing, Compressor & Airfoils, Unison Rings, Arm, Levers Body, Assembly Aero Engine Assembly Mount Business Jet Airc
Slide 14: Azad's products are project, machine and life critical with stringent quality requirements
Azad’s products are project, machine and life critical with stringent quality requirements No defects are affordable ▪ Components manufactured by Azad have Zero PPM requirements ▪ Any defects can cause equipment failure and potential loss of life and machine Critical for performance ▪ Fuel efficienc
Slide 15: Significant Entry Barriers at Each Stage
Significant Entry Barriers at Each Stage Azad has delivered over 3 million mission critical parts with Zero parts per million defects requirement to its customers. It has demonstrated efficiencies pursuant to machining time reduction and adherence to strict quality, resulting in a massive competitiv
Slide 16: Critical Source Supplier to OEMs - Aerospace & Defence
Critical Source Supplier to OEMs with High Global Market Penetration - Aerospace & Defence Azad is a supplier to six of the key manufacturers in aerospace and defence industry Addressable market Growth Drivers Key components used in an aircraft Aerospace & Defence1 • Opportunity to increase wallet s
Slide 17: Critical Source Supplier to OEMs – Energy Turbine Industries
Critical Source Supplier to OEMs with High Global Market Penetration – Energy Turbine Industries Azad, being a critical components supplier, is a key link in the global supply chain for the OEMs Azad’s customer market share in Global turbine components1 Gas power turbine Player 4 Player 5 9% 5% Azad
Slide 18: Long-standing and Deep Customer Relationships With OEMs
Long-standing and Deep Customer Relationships With OEMs As a strategic and growth partner to customers across highly regulated industries, Azad enjoys long-term relationships with high customer stickiness and a high percentage of repeat business, which allows us to have long-term contracts, a stable
Slide 19: Well-diversified Business with Global Operations
Well-diversified Business with Global Operations Azad caters to multiple customers across the globe has average relationship for over 10 years with key customers Revenue Breakup 9MFY24 Q3FY24 Domestic Domestic 11% 12% 89% 88% Exports Exports Others Others A&D 2% A&D 2% 12% 17% 86% 81% Energy Energy
Slide 20: Advanced Manufacturing Facilities With Focus on Innovation and Cost Competitiveness
Advanced Manufacturing Facilities With Focus on Innovation and Cost Competitiveness Azad’s all facilities (except which are earmarked for specific clients) are fungible in nature Four manufacturing facilities in Hyderabad Facilities in Pipeline Spread across 20,000 Sq.mts Facility 1 Facility 2 ~95,0
Slide 21: Experienced Promoter and Board of Directors
Experienced Promoter and Board of Directors…. Rakesh Chopdar Jyoti Chopdar Vishnu Malpani Chairman & CEO Whole-Time Director Whole-Time Director • Involved with Azad since 2003 • Passed the examination for • Holds a bachelor’s degree in pic with two decades of experience pic bachelor’s degree in art
Slide 22: with Strong Management Team
….with Strong Management Team Ronak Jajoo Ashok Gentyala Balaji PR Chief Financial Officer Head - Engineering & Operations Head – Business Growth • Passed the examination for post • Holds a diploma in mechanical • Previously worked with Miranda graduate degree in business engineering Tools, Helix To
Slide 23: Way Forward
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Slide 24: Customers
Best-in-class engineering portfolio lending a strong moat with significant entry barriers Supplier of choice to highly regulated industries Producer of mission critical components; High complexity and precision requirements Unique Long haul journey with vendor qualifications taking up to 30-48 m
Slide 25: Historical financials
Historical financials
Slide 26: Consistent Track Record of Financial Performance
Consistent Track Record of Financial Performance Margin Revenue From Operations Adj. EBITDA* & EBITDA Margin PAT and PAT Margin In Rs. Mn 105% 30.2% 32.5% 31.6% 34.5% 9.4% 15.1% 3.4% 17.6% 2,517 2,480 114% 857 1,945 795 437 632 1,227 295 371 115 85 FY21 FY22 FY23 9M FY24 FY21 FY22 FY23 9M FY24 FY21
Slide 27: Restated Consolidated Statement of Profit and Loss
Restated Consolidated Statement of Profit and Loss (Rs. Mn) FY23 FY22 FY21 CAGR (FY21- 23 Revenue from Operations 2,516.8 1,944.7 1,227.2 43% Consumption 301.5 207.6 138.1 Employee expenses 592.7 462.7 326.0 ▪ Non-recurring expenses include: ▪ Fire related expenses Other Expenses 827.1 642.7 392.3 ▪
Slide 28: Restated Consolidated Balance Sheet
Restated Consolidated Balance Sheet Assets (Rs. Mn) Sep-23 Mar-23 Mar-22 Mar-21 Equity and liabilities (Rs. Mn) Sep-23 Mar-23 Mar-22 Mar-21 Non-current assets Equity Equity share capital 99.1 16.5 15.1 15.1 Property, plant and equipment 2,149.3 2,166.5 1,444.0 1,210.8 Other equity 2,206.3 2,023.4 1,
Slide 29: Restated Consolidated Cash Flow Statement
Restated Consolidated Cash Flow Statement (Rs. Mn) Sep-23 Mar-23 Mar-22 Mar-21 Profit Before Taxes 316.1 131.6 401.3 162.4 Adjustments for Non Cash / Non Operating items 221.6 672.3 254.5 127.7 Operating profit before working capital changes 537.7 803.9 655.9 290.1 Changes in working capital 551.6 8
Slide 30: EBITDA & PBT Bridge
EBITDA & PBT Bridge (Rs. Mn) Q3FY24 Q3FY23 Q2 FY24 9MFY24 9MFY23 FY23 FY22 FY21 (A) Adj EBITDA 327.6 174.9 265.5 856.5 484.9 795.8 631.7 370.9 (B) Non - Recurring Expenses Fire related expenses 0.0 0.0 0.0 0.0 63.0 63.0 0.0 0.0 Provision for credit impaired trade receivable 0.3 1.2 2.7 4.2 3.6 4.8 2
Slide 31: For more information Please contact
For more information Please contact: Company: Investor Relations Advisor: Azad Engineering Limited: Strategic Growth Advisors Pvt Ltd. CIN: U74210TG1983PLC004132 CIN: U74140MH2010PTC204285 Mr. Ful Kumar Gautam, Company Secretary & Shikha Puri / Riddhish Bhayani Compliance Officer Email id: shikha.pu