Slide 1: Stock exchange cover letter for investor presentation
Varroc Engineering Limited Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 136, Fax + 91 240 2564540 www.varroc.com Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2024-25/147 February 10, 2025 To, The Manager- List
Slide 2: Presentation to Investors - Q3 FY25
Presentation to Investors - Q3 FY25 10th February 2025 1
Slide 3: 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 4: About Us
About Us Varroc is a leading global auto technology company with a product portfolio covering a wide range of electrical, electronics, 08 7000+ Countries Employees lighting, polymer, metallic, ADAS, after-market and advanced safety solutions 39 Operating Manufacturing Facilities REVENUE USD 910 MILL
Slide 5: Update on Q3 FY25 Performance
Update on Q3 FY 25 Performance 10th February 2025 1
Slide 6: Highlights for Q3 FY25
Highlights for Q3 FY25 1.Revenue for Q3 FY25 at 20,753 mn with a growth of 10.1% YoY 2. Profitability of continued operations for Q3 FY25 Q3 FY25 PBT* at 3.2% vs. 2.4% in Q3FY 24 Q3 FY25 EBITDA at 9.2% vs. 9.2% in Q3 FY 24 Net debt reduced by Rs.1,967 million in 9M FY25 and is Rs. 7,860 million. 3.
Slide 7: Automotive Production in India
Automotive Production in India 6.26 5.92 5.48 • As compared to last year GDP growth, this year growth has Units in million slowed down but still remain strong as compared to modest global growth. This year growth is being supported by rural consumption as reflected in 2W numbers also on YoY basis •
Slide 8: Consolidated Financials of Q3 FY25
Consolidated Financials of Q3 FY25 ₹ in Millions PBT % Revenue Particulars Q3 FY25 Q3 FY24 YoY Q2 FY25 QoQ 23,000 6.0 21,000 Revenue 20,779 18,935 9.7% 20,875 -0.5% 5.5 19,000 EBITDA 1,900 1,731 9.8% 2,010 -5.4% 20,875 20,779 5.0 17,000 18,935 EBITDA % 9.2% 9.2% (3) bps 9.7% (50) bps 4.3 4.5 15,000
Slide 9: Consolidated Financials of 9M FY25
Consolidated Financials of 9M FY25 ₹ in Millions PBT % Revenue Particulars 9M FY25 9M FY24 YoY 60,000 4.9 Revenue 60,677 55,982 8.4% EBITDA 5,634 5,403 4.3% 55,000 60,677 4.4 EBITDA % 9.3% 9.7% (37) bps 55,982 PBT before JV and exceptional items 2,095 1,707 22.8% 50,000 3.9 PBT before JV and excepti
Slide 10: Consolidated Balance Sheet & Return Ratios
Consolidated Balance Sheet & Return Ratio’s 31st March 2024 Rs. in Million 31st December 2024 30th September 2024 Net Debt 7,860 8,273 9,828 Equity 15,806 16,400 15,262 Annualised Adjusted EBITDA 7,512 7,467 7,590 Net Debt/Equity 0.50 0.50 0.64 Net Debt/EBITDA 1.05 1.11 1.29 ROCE (Annualized) 19.3%
Slide 11: Revenue Breakdown for 9M FY25
Revenue Breakdown for 9M FY25 Business Unit Segment 2.5%4.7% Electrical Electronics 9.1% Lighting 21.5% 7.1% 2.5% Polymer 8.6% 24.8% 37.6% 37.8% 11.9% Metalic 2&3W 12.0% 4W & Others Aftermarket 75.2% Other (Overseas) 32.0% 78.5% 34.1% Lighting & Electronics Overseas Geography Customer 12.0% 13.9% In
Slide 12: New Lifetime Order Win in 9M FY25
New Lifetime Order Win in 9M FY25 (Lifetime Value is 59,738 million and Annual Peak Revenue is Rs.10,847 million) New business win adding to our revenue* in next 3 years Lifetime Revenue win from 2&3W and 4W Players 27,500 36.67% 19,500 17500 21,908 14500 63.33% 10,500 37,830 8500 8400 8400 8400 FY2
Slide 13: Technological new age products win in Overseas
Technological new age products win in Overseas NEW WIN Front Drive & Rear Drive Inverter Electronics for Electric PV Interior Ambient Lighting Inverter in an electric vehicle converts direct current (DC) from the battery to alternating current (AC) for the electric motor. Interior ambient lighting p
Slide 14: Compounding Machine of Value
Volume growth on top of inflation Revenue recovery to pave way for profitable Growth growth Debt reduction, less capital-intensive investments and prudent capital deployment in organic + inorganic Sustainable improvement in contribution margins growth opportunities to ensure through economies of sca
Slide 15: Our Businesses
Our Businesses 10th February 2025 1
Slide 16: Meet The Future Of Mobility: Electrical Electronics & Lighting
Meet The Future Of Mobility: Electrical Electronics & Lighting Amping Up The Future With Electrical Technology 10 facilities - India 05 facilities - Overseas EV Products Our customizable traction motor, traction Lighting Solution motor controller, DC-DC converter, BMS Our Headlamp, tail lamps and si
Slide 17: Meet The Future Of Mobility: Polymer
Meet The Future Of Mobility: Polymer 13 FACILITIES - INDIA Elevating Your Ride. Reducing Your Load. Mirror Assemblies 2K Technology-Based Products Through our portfolio of 30+ mirror Our products boast the latest 2K technology, assembly variants we offer premium providing high-gloss and visually app
Slide 18: Meet The Future Of Mobility: Metallic
Meet The Future Of Mobility: Metallic 2 FACILITIES - ITALY 5 FACILITIES - INDIA From iron to icon. Our Journey in Metallics. Valves Metallic solutions for EVs Our category of valves (sodium, Our EV portfolio designed to focus on titanium, intake, and exhaust valves) are compact design and light weig
Slide 19: Meet The Future Of Mobility: Aftermarket
Meet The Future Of Mobility: Aftermarket EXPORTS TO Domestic Export 30+ COUNTRIES 6,372 5,881 CAGR of 19% over last 6 year PAN INDIA DISTRIBUTOR 1,250 4,979 1,222 +310 Cities +720 Distributors 3,684 1,187 63 2,970 876 1% 710 5,121 East 4,658 765 3,792 West 2,808 12% 1,706 2,260 27% Export 19-20 20-2
Slide 20: Our Key Strengths
Our Key Strengths Continuous Focus on Comprehensive Low-Cost R&D Capabilities Strong Competitive Long Standing, Solution Provider Manufacturing Position in a Enhancing Portfolio Growing Customer Footprint Growing Market • End-to-end services • Developing innovative, cost- Relationships Segment acros
Slide 21: Sustainability
Sustainability PERFORM@CHANGE
Slide 22: ESG Framework
ESG Framework At Varroc, our ESG & Sustainability vision is to co-create a sustainable value for our stakeholders through innovative research, engineering, & manufacturing of environmentally sustainable products for mobility sector through environment friendly operations aligning with our corporate
Slide 23: Commitment to Environment
Commitment to Environment RENEWABLE ENERGY GHG EMISSIONS ▪ 13% Renewable energy contributions in ▪ 110 Energy efficiency and Energy FY24. Commitment to increase to 50% in conservation projects/Kaizens implemented coming years. in FY23. ▪ We generated 2.4 Million units of renewable ▪ Approx. 5 Lakhs
Slide 24: Commitment to Society
Commitment to Society Creating meaningful differences to the society through environmental and social welfare projects Kham River Nurturing Future Social Impact Restoration Sports Talent Programs • Kham River Eco Restoration Project was introduced • Varroc Vengsarkar Cricket Academy (VVCA) • Learn a
Slide 25: Thank You
THANK YOU PERFORM@CHANGE