Greaves Cotton Limited · NSE:GREAVESCOT
Greaves Cotton — Investor Presentation (August 2010)
24 slides from Greaves Cotton's investor presentation, August 2010
Slide 1: Welcome to Greaves Cotton Limited
Welcome to GREAVES COTTON LIMITED 150 YEARS YOUNG! 1
Slide 2: Among world's largest single cylinder engine manufacturer
Among world’s largest single cylinder engine manufacturer 1859 James GREAVES and George COTTON founded the company 1939 Joint venture with Ruston & Hornsby Ltd., U.K. for diesel engines in India. 1947 Lala Karamchand Thapar bought Greaves. Became an Indian Company. 1980 Greaves starts manufacturing
Slide 3: Greaves Cotton today
GREAVES COTTON today • Consolidated Net Sales of `1,400 crores • Manufactures 450,000 IC engines in 1.4-750 HP range a year • Core competencies in • Engine technology development - 4 R&D centres with latest equipment and development software • Engine manufacturing (multi-fuel) o Winner of Frost & Su
Slide 4: Promoters own > 50% of the Company
Promoters own > 50% of the Company • Shares Capital: `48.84 Cr • Listing: • Stock Exchange, Mumbai (BSE) • National Stock Exchange (NSE) • Market Capitalization1: `1,800 crores (as on 11th August 2010) 4
Slide 5: Business Segments
Business Segments Segments Others Engines Agro Equipment 4% CED Automotive 11% Auxiliary Power Industrial Engines Construction Road making Equipment Concreting Engines Adjacent other 85% products 5
Slide 6: Engines: Agro Equipments
Engines: AGRO Equipments Agro Equipment Division (AED) markets a wide range of agro equipment that helps enhance farm productivity AED is the market leader in the Petrol / Kerosene Engine business and has a countrywide distribution network. Machining Centre The AED Product Range comprises: • Petrol
Slide 7: Engines: Automotive
Engines: Automotive • Largest Business Division of the Company • Manufactures over 300,000 Light Diesel Engines annually Diesel Engine – GL 400 • Lightweight fuel efficient diesel engines for Automotive applications - range : 4.4 to 20 HP • Automotive Engines conform to current emission norms Diesel
Slide 8: Engines: Auxiliary Power
Engines: Auxiliary Power • Fuel - efficient, rugged and reliable Gensets • Compliant with emission norms • Range: 500 VA to 550 kVA single unit Portable Genset • Over 5 decades of experience in Auxiliary Power • Applications: - Retail Outlets/ Commercial complexes Greaves Light - Hotels/ Hospitals -
Slide 9: Engines: Industrial Engines
Engines: Industrial Engines A new division to leverage engine manufacturing platform for various industrial applications Marine engine Diesel Engines from 1.4 to 750 HP range with alternate fuel – CNG / LPG - models Twin cylinder engine • Applications : - Marine - Agricultural Equipment G 11 engine
Slide 10: Construction Equipments
Construction Equipments One of the few companies in the world which provides both Compaction and Concreting handling products. Compaction : Vibratory, Tandem and Pneumatic Tyred Rollers Concreting :Concrete pumps, Transit Mixers, Batching Plants etc. Earthmoving : Wheel Loader and Motor Grader 3 man
Slide 11: Key Business Drivers: Engines & Construction Equipment
Key Business Drivers: Engines & Construction Equipment • Govt.’s strong support for mechanization of farm sector Agro Equipment • Larger requirement of portable irrigation pumps • Shortage of farm labour • Rising urbanization and improved rural connectivity Automotive • Last mile distribution requir
Slide 12: Infrastructure: The Growth Enabler
Infrastructure: The Growth Enabler • Huge infrastructure development plan during 11th and 12th plan period • Roads : 3,350 kms awarded in FY 2010,equivalent to the previous 3 years by NHAI. Over 33,000 Km of NHDP still to be awarded. Prime Minister Gramin Sadak Yojna also making significant investme
Slide 13: Strategic Initiatives
Strategic Initiatives • Strong technology and R&D thrust • Leverage engine manufacturing excellence to provide innovative and cost effective solutions to new industrial applications • Introduce new agro ‘Value-for-money’ products leveraging vast distribution and service network • Extend leadership a
Slide 14: Highlights 2009-10
Highlights 2009-10 • All units of GCL ( India + Overseas) delivered superior operating performance • Production of engines crosses 450,000 units • Consolidated EBITDA improves to `210 Crs ( 95 % up) • Consolidated Cash Profit improves to `148 Crs (103% up) 14
Slide 15: Financial Performance
Financial Performance Sales EBITDA Sales growing at CAGR 14 %
Slide 16: Profitability
#Crore 180 160 140 120 100 Profitability if 140 FYO6 FYO7 FYO&8 FYO9 FY 10 120 100 80 @Crore 60 40 20 a SINCE 1859 0 8 } | } | } } } + + + + FYO6 FYO7 FYO&8 FYO9 FY10
Slide 17: Results Highlights
Results Highlights June 09 June 10 `Crs. Qtr YE Qtr YE Revenues 239 1041 348 1347 EBITDA 25 115 45 206 Depreciation 6 25 7 27 Op Profit 19 89 39 179 Interest 4 22 3 13 Other Income 3 11 4 7 PBT 18 80 40 173 PAT 13 56 28 118 (%) 5.4 5.4 8.1 8.7 17
Slide 18: Balance Sheet
Balance Sheet `Crs. June 09 June 10 Sources Shareholders Fund 409 441 Loan Fund 44 5 Deferred Tax Liab (Net) 25 24 Total 478 470 Applications Fixed Assets (Net) 266 266 Investment 66 130 Net Current Assets 146 74 Total 478 470 18
Slide 19: Production & Sales Volumes: Key Products
Production & Sales Volumes: Key Products Production Sales Pr Year C Year Change Pr Year C Year Change IC Engines 332,696 448,064 35% 334,177 445,060 33% Generating Sets 2,055 2,440 19% 2,127 2,433 14% Road Making equipments 249 260 4% 249 273 10% Concreting equipments 703 900 28% 695 901 30% 19
Slide 20: Financial & Operations Ratios
Financial & Operations Ratios Category Unit FY 2009 FY 2010 EBITDA Margin % 11.0 15.3 Profitability Net Profit Margin % 5.4 8.7 Fixed Asset T.O. Times 3.9 5.1 Avg. Debtors Days Days 52 55 Activity Avg. Inventory Days Days 66 57 Avg. Trade Creditors Days 61 67 days 20
Slide 21: Shareholder returns
Shareholder returns 15.0 7.5 21
Slide 22: Strong ROCE and ROE
Strong ROCE and ROE ROCE ROE 22
Slide 23: Greaves Cotton – The Road Ahead
GREAVES COTTON – The Road Ahead • All businesses of GCL have significant growth potential and are supported by conducive economic environment • Keep automotive engine business momentum going and grow share of other businesses rapidly • Internal cash generation to support modernization and efficiency
Slide 24: Mumbai, India
Mumbai, India www.greavescotton.com 24