Escorts Kubota Limited · NSE:ESCORTS
Escorts Kubota — Q2 FY24 Earnings Presentation
37 slides from Escorts Kubota's earnings presentation, Nov 3, 2023
Slide 1: Intimation of Press Release and Earning Presentation
November 3, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400001 Bandra East, Mumbai – 400051 BSE – 500495 NSE - ESCORTS Sub: Intimation of Press Release and Earning Presentation Dear Sir/ Ma’am, Plea
Slide 2: EKL reports highest ever second quarter Standalone Profit
c l(•J">'lt'l Escorts Kubota Limited EKL reports highest ever second quarter Standalone Profit at ~ 235 Crore • Tracto r volumes at 22, 024 units. • Construction Equipment volumes up by 72% at 1,577 units. • Standalone EBIDTA up by 72.4% at f 263.3 crore. o Margin up by 476 bps to 12.9% • Standalone
Slide 3: Press release: half year results and segment performance
.. Escorts Kubota Limited For first half year ended September 2023, Standalone revenue from operations came at< 4,373.9 crore, up by 12.2% as against < 3,898.3 crore in corresponding period last year. The profit before tax and before the exceptional items was at< 693.8 crore as against< 389.5 crore
Slide 4: Railway Equipments performance
Escorts Kubota Limited Railway Equipments For the quarter ended September 2023, Revenue from Railway equipments went up by 28.8% to z 234.3 crore as against z 182 crore in corresponding period last year. EBIT margin was up by 382 bps to 18.5% in quarter ended September 2023 as against 14.6% in corre
Slide 5: Q2 FY24 Earning Presentation
Q2 FY24 | EARNING PRESENTATION 3rd November 2023 BSE: 500495 | NSE: ESCORTS 03-11-2023 Escorts Kubota Limited 1
Slide 6: Safe Harbor
SAFE HARBOR Certain statements in this document may include forward-looking comments and information concerning the company’s plans and projections for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors tha
Slide 7: Contents
CONTENTS 01 02 03 04 Company Q2 Standalone H1 Standalone Segment Wise Overview Highlights Highlights Performance 05 06 07 Shareholding Q2/H1 Annexure & Pattern Consolidated Narrations Highlights 03-11-2023 Escorts Kubota Limited 3
Slide 8: Escorts Kubota Limited: Overview
Escorts Kubota Limited: Overview (Formerly Escorts Limited) Standalone Revenue in ₹. Crore. Escorts Kubota Limited (EKL) A leading engineering conglomerate with H1FY24 4,374 a history of over seven decades, steering India’s socio-economic growth through pioneering contribution in critical industrial
Slide 9: Q2 Standalone Highlights – Q2FY24 YoY
Q2 Standalone Highlights – Q2FY24 YoY Industry EKL Particulars Variance Growth Growth Domestic Tractor Volume -5.8% -4.3% 1.5% Export Tractor Volume -26.7% -32.8% -6.1% Total Tractor Volume -8.7% -7.1% 1.6% PNC Volume 73.2% 80.2% 7.0% BHL Volume 27.8% 24.8% -3.0% Compactor Volume 63.5% 79.5% 16.0% S
Slide 10: Q2 Standalone Highlights – EKL at a Glance
Q2 Standalone Highlights –EKL at a Glance 22,024 1,577 ₹ 234.3 Crore Tractors Volumes Construction Equipment’s Volume Revenue from Railway Equipment -7.1% -17.1% 72.0% 14.9% 28.8% -21.3% (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) (Y-o-Y) (Q-o-Q) ₹ 2,046.2 Crore ₹ 263.3 Crore ₹ 235.0 Crore Revenue from operatio
Slide 11: Q2 Standalone Highlights – P&L at a Glance
Q2 Standalone Highlights – P&L at a Glance YoY QoQ Particulars Unit Q2FY24 Q2FY23 Q1FY24 (Change) (Change) Revenue from Operations ₹ Cr. 2,046.2 1,883.5 2,327.7 8.6% -12.1% Material Cost % 67.7 72.4 69.8 -474 bps -215 bps Manpower Cost % 8.2 7.9 6.4 28 bps 181 bps EBIDTA ₹ Cr. 263.3 152.7 326.9 72.4
Slide 12: Q2 YoY Revenue up by 8.6%; EBIT up by 63.9%
Q2 - YoY Revenue up by 8.6%; EBIT up by 63.9% ₹ Cr. Revenue Key Highlights • Tractor Sales down by 7.1% at 22,024 units • Construction Equipment Sales up by 72% at 1,577 units • Railway Equipment revenue up by 28.8% at ₹ 234.3 Crore. ₹ Cr. EBIT Key Highlights • Operating leverage in Construction and
Slide 13: Q2 QoQ Revenue down by 12.1%; EBIT down by 16.7%
Q2 - QoQ Revenue down by 12.1%; EBIT down by 16.7% ₹ Cr. Revenue Key Highlights • Tractor Sales down by 17.1% at 22,024 units • Construction Equipment Sales up by 14.9% at 1,577 units • Railway Equipment revenue down by 21.3% at ₹ 234.3 Crore. ₹ Cr. EBIT Key Highlights • Cost Reduction • Operating l
Slide 14: Q2FY24 Standalone Highlights – EKL at a Glance
Q2FY24 Standalone Highlights –EKL at a Glance ₹ 21.7 14.8% 10.9% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~85% ~65% Approx. ₹ 870 Crore Capacity Utilization Capacity Utilization Of Order Book Agri Machinery Construction Equipment Railway Equipment Divis
Slide 15: H1 Standalone Highlights – H1FY24 YoY
H1 Standalone Highlights – H1FY24 YoY Industry EKL Particulars Variance Growth Growth Domestic Tractor Volume -3.7% -0.7% 3.0% Export Tractor Volume -28.9% -35.3% -6.4% Total Tractor Volume -6.8% -3.8% 3.1% PNC Volume 66.2% 62.2% -4.0% BHL Volume 25.7% 17.2% -8.5% Compactor Volume 47.0% 84.3% 37.3%
Slide 16: H1 Standalone Highlights – EKL at a Glance
H1 Standalone Highlights – EKL at a Glance 48,606 2,950 ₹ 532.1 Crore Tractors Volumes Construction Equipment’s Volume Revenue from Railway Equipment -3.8% 56.7% 49.7% ₹ 4,373.9 Crore ₹ 590.2 Crore ₹ 517.8 Crore Revenue From Operations EBIDTA Profit After Tax 12.2% 66.6% 120.2% Up Down Standalone Fi
Slide 17: H1 Standalone Highlights – P&L at a Glance
H1 Standalone Highlights – P&L at a Glance Particulars Unit H1 FY24 H1 FY23 Variance Revenue from Operations ₹ Cr. 4,373.9 3,898.3 12.2% Material Cost % 68.8 72.3 -349 bps Manpower Cost % 7.2 7.3 -11 bps EBIDTA ₹ Cr. 590.2 354.3 66.6% EBIDTA Margin % 13.5 9.1 441 bps Other Income ₹ Cr. 189.5 113.0 6
Slide 18: H1 YoY Revenue up by 12.2%; EBIT up by 77.2%
H1 - YoY Revenue up by 12.2%; EBIT up by 77.2% ₹ Cr. Revenue Key Highlights • Tractor Sales at 48,606 units • Construction Equipment Sales up by 57.4% at 2,950 units • Railway Equipment revenue up by 49.7% at ₹ 532.1 Crore. ₹ Cr. EBIT Key Highlights • Operating leverage across divisions. • Higher no
Slide 19: H1FY24 Standalone Highlights – EKL at a Glance
H1FY24 Standalone Highlights –EKL at a Glance ₹ 44.97 16.4% 12.1% Earning Per Share Return on Capital Employed Return on Equity (Annualized) (Annualized) ~85% ~60% Approx. ₹ 870 Crore Capacity Utilization Capacity Utilization Of Order Book Agri Machinery Construction Equipment Railway Equipment Divi
Slide 20: Segment Wise Performance
Segment Wise Performance 03-11-2023 Escorts Kubota Limited 16
Slide 21: Agri Machinery
Agri Machinery Powering The Dreams Of Farmer Escorts Kubota Limited 17
Slide 22: Q2 Agri Machinery Domestic Performance
Q2 Agri Machinery Domestic Performance Domestic Tractor Industry (in Lakhs) EKL Domestic Tractor Volumes 25,226 -18.8% QoQ -4.3% YoY 2.6 -5.8%YoY -19.9% QoQ 21,396 20,473 2.2 2.1 Q2FY23 Q1 FY24 Q2FY24 Q2FY23 Q1 FY24 Q2FY24 Growth De-Growth rounded off to nearest single decimal 4-11-2022 Escorts Kubo
Slide 23: Q2 Agri Machinery Export Performance
Q2 Agri Machinery Export Performance Export Tractor Industry (in ‘000s) EKL Export Tractor Volumes -32.8% YoY -26.7% YoY 35.3 2,307 6.8% QoQ 25.9 +14.4% QoQ 1,551 24.2 1,356 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY23 Growth De-Growth rounded off to nearest single decimal 4-11-2022 Escorts Kubota Limi
Slide 24: H1 Agri Machinery Domestic Performance
H1 Agri Machinery Domestic Performance Domestic Tractor Industry (in Lakhs) EKL Domestic Tractor Volumes -3.7% YoY 4.9 -0.7% YoY 4.7 46,004 45,699 H1FY23 H1FY24 H1FY23 H1FY24 Growth De-Growth rounded off to nearest single decimal 4-11-2022 Escorts Kubota Limited 20
Slide 25: H1 Agri Machinery Export Performance
H1 Agri Machinery Export Performance Export Tractor Industry (in ‘000s) EKL Export Tractor Volumes 4,496 70.4 -28.9% YoY -35.3% YoY 50.1 2,907 H1FY23 H1FY24 H1FY23 H1FY24 Growth De-Growth rounded off to nearest single decimal 4-11-2022 Escorts Kubota Limited 21
Slide 26: Agri Machinery Product Performance – Q2/H1FY24 Highlights
Agri Machinery Product Performance – Q2/H1FY24 Highlights Particulars Unit Q2FY24 YoY QoQ H1FY24 YoY Revenue ₹ Cr. 1,394.2 -4.2% -16.4% 3,061.1 0.3% EBIT % 12.2% 381 bps -123 bps 12.9% 334 bps Capacity Utilization % ~85 ~85 ROCE (Annualized) % 28.5% 33.2% Q2FY24 • FT:PT Domestic sales ratio at 44:56
Slide 27: Construction Equipment
Construction Equipment Building a Better Tomorrow Preferred Partner In Nation Building 4-11-2022 Escorts Kubota Limited 23
Slide 28: Q2 Construction Equipment Performance
Q2 - Construction Equipment Performance Served Industry Performance (000’s) EKL Construction Equipment Volumes 37.4% YoY 72.0% YoY 14.8% QoQ 16.3 14.9% QoQ 1,577 1,373 14.2 917 11.9 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 BHL Industry up by 27.8% YoY PnC Industry up by 73.2% YoY Compactors Industr
Slide 29: H1 Construction Equipment Performance
H1 - Construction Equipment Performance Served Industry Performance (000’s) EKL Construction Equipment Volumes 33.9% YoY 30.5 2,950 56.7% QoQ 22.8 1,883 H1FY23 H1FY24 H1FY23 H1FY24 BHL Industry up by 25.7% YoY PnC Industry up by 66.2% YoY Compactors Industry up by 47.0% YoY Growth De-Growth rounded
Slide 30: Construction Equipments Performance – Q2/H1FY24 Highlights
Construction Equipments Performance – Q2/H1FY24 Highlights YoY QoQ YoY Particulars (EKL) Unit Q2FY24 (Change) (Change) H1FY24 (Change) Volume Nos. 1,577 72.0% 14.9% 2,950 56.7% PNC SOM % 40.4% 157 bps 157 bps 39.6% -97 bps Compactor SOM % 6.1% 54 bps -173 bps 6.9% 140 bps BHL SOM % 1.2% -3 bps -16 b
Slide 31: Railway Equipment Division
Railway Equipment Division Mobility Solutions Of the future ENSURING SAFETY AND COMFORT IN RAIL TRANSPORT 4-11-2022 Escorts Kubota Limited 27
Slide 32: Railway Equipments Performance - Q2/H1FY24 Highlights
Railway Equipments Performance - Q2/H1FY24 Highlights YoY QoQ YoY Particulars (EKL) Unit Q2FY24 (Change) (Change) H1FY24 (Change) Revenue ₹ Cr. 234.3 28.8% -21.3% 532.1 49.7% EBIT % 18.5% 382 bps -247 bps 19.8% 573 bps Order Book ₹ Cr. ~870 ~870 ROCE (Annualized) % 45.5% 48.6% Up Down At Par Standal
Slide 33: Shareholding Pattern
Shareholding Pattern Shareholding Trend Category Sept'2022 Dec'2022 Mar'2023 June'2023 Sept'2023 Promoters 72.9 72.9 72.9 67.6 67.6 Institutions# 12.4 12.4 12.8 15.5 16.0 Public 13.0 13.0 12.7 15.0 14.4 Non Promoter Non Public 1.7 1.7 1.7 2.0 1.9 Total 100.0 100.0 100.0 100.0 100.0 Capital Reduction
Slide 34: Q2 Consolidated Highlights – P&L at a Glance
Q2 Consolidated Highlights – P&L at a Glance YoY QoQ Particulars Unit Q2FY24 Q2FY23 (Change) Q1FY24 (Change) Revenue from Operations ₹ Cr. 2,059.3 1,890.8 8.9% 2,355.2 -12.6% Material Cost % 67.8% 72.4% -461 bps 69.8% -207 bps Manpower Cost % 8.3% 8.0% 24bps 6.4% 184 bps EBIDTA ₹ Cr. 260.7 149.4 74.
Slide 35: H1 Consolidated Highlights – P&L at a Glance
H1 Consolidated Highlights – P&L at a Glance YoY Particulars Unit H1 FY24 H1 FY23 (Change) Revenue from Operations ₹ Cr. 4,414.5 3,922.9 12.5% Material Cost % 68.9% 72.2% -330 bps Manpower Cost % 7.3% 7.4% -15 bps EBIDTA ₹ Cr. 591.8 353.0 67.6% EBIDTA Margin % 13.4% 9.0% 441 bps Other Income ₹ Cr. 1
Slide 36: Narrations
Narrations • AG – Agri Machinery Products • EKL - Escorts Kubota Limited • CE – Construction Equipment • FY – Fiscal Year represents the 12 months period from 1st • RED – Railway Equipment April to 31st March. • BHL – Backhoe Loader • Q2FY23 – Represents the 3 months period from 1st July • SOM – Sha
Slide 37: Thank You
THANK YOU Contact Details Escorts Kubota Ltd. (CIN: L74899HR1944PLC039088) Corporate Centre 15/5 Mathura Road Faridabad – 121003 Phone: +91 129 2250222 www.escortsgroup.com Investor.relation@escortskubota.com 03-11-2023 Escorts Kubota Limited 33