Divgi Torqtransfer Systems Ltd. · NSE:DIVGIITTS
Divgi Torqtransfer Systems — Q4 FY2024 Earnings Presentation
35 slides from Divgi Torqtransfer Systems's earnings presentation, May 27, 2024
Slide 1: Exchange filing cover letter for investor presentation
Divgi TorqTransfer Systems Limited Divgi TorqTransfer Systems CIN: L32201MH1964PLC013085 75, General Block, MIDC, Bhosari, Pune 411 026, India Tel: (+91-20) 63110110 Web: www.divgi-tts.com Ref.: DTTS/Sec/23-24/16 May 27, 2024 To, To, BSE Limited, National Stock Exchange of India Limited, Phiroze Jee
Slide 2: Investor Presentation Q4 & FY24
Divgi TorqTransfer Systems Limited Investor Presentation Q4 & FY24
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Divgi TorqTransfer Systems Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe fo
Slide 4: FY24 Achievements
FY24 Achievements What we achieved in FY24 Our new facility at Shirwal became operational, ramping –up operations. Introduced India’s 1st Indigenously mass-produced EV transmissions. Developed three EV transmissions product internally. Successfully launched India’s 1st High speed Dynamometer for Man
Slide 5: Q4 & FY24 Result Highlights
Q4 & FY24 Result Highlights Divgi-tTTs
Slide 6: Full-Year Revenue-Walk
Full-Year Revenue-Walk Revenue Particulars FY24 FY23 Y-o-Y Remarks -6% Change in model/variant leading to downward 271 253 Slowdown in the demand Transfer Case 155.1 190.6 -19% revision in the production for four of its major OEM estimate of the vehicle where customers we are present NexTrac 7.2 9.0
Slide 7: Quarterly Revenue-Walk
Quarterly Revenue-Walk Revenue Particulars Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q -11% Transfer Case 34.4 54.0 -36% 39.4 -13% 73 63 65 • Y-o-Y: -4% NexTrac 1.5 1.6 -7% 2.1 -29% • Q-o-Q: +3% ALH 0.7 1.0 -26% 0.8 -8% Q4FY23 Q3FY24 Q4FY24 E-Gear Drive 8.0 0.1 160x 5.3 52% EBITDA -32% Synchro 3.2 3.9 -18% 3.5
Slide 8: Revenue Mix
Revenue Mix INR Crs INR Crs Revenue Breakup Transfer Cases EV Transmission Transfer Case EV Transmission -19% +120x Components Others 190.4 24.3 155.1 70.7% 42.2 39.4 39.1 34.4 10.3 FY23 8.0 0.1% 5.3 0.2 0.7 19.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY24 9.8% FY23 FY23 FY24 Segment diversification by increasing
Slide 9: Result Snapshot
Result Snapshot Particulars (INR Crs) Q4FY24 Q4FY23 Y-o-Y Q3FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue From Operations 65.1 73.3 -11% 63.0 3% 253.4 271.0 -6% Cost of Raw Materials Consumed 26.1 29.9 31.0 111.7 110.4 Change in Inventories 1.2 1.2 (2.6) (5.5) 1.0 Employee Benefit Expenses 6.4 5.6 4.5 24.1 24.
Slide 10: Management Commentary
Management Commentary • FY24: • Revenue was marginally down by 6% in FY24 on y-o-y basis due to low pickup in our core product from four of our major OEMs. This fall was compensated by EV transmission business • EBITDA performance was impacted on the back of increased overhead expenses on account of
Slide 11: New Business Wins & Way Forward
New Business Wins & Way Forward
Slide 12: Near term Growth Outlook
Near term Growth Outlook EV Transmission* Export Business Core Product Portfolio* • Ramping up production for • Further strengthening relationships with • Working with OEM to normalize the existing variants Tier I suppliers by expanding the product production loss of transfer case offerings from two
Slide 13: Long Term Growth Outlook based on Life cycle Revenues
Long Term Growth Outlook based on Life cycle Revenues Core & Other Product EV Transmission* Export Business Portfolio* Product: Product: Product: EV System & Components Transfer Case Export Manual Transmission Business Components Business Components Business Lifecycle Revenue: Lifecycle Revenue: Lif
Slide 14: Export Component Business
Export Component Business Fortune's world's most admired company Revenue Lifecycle Sr. No. Product Announcement on SOP (INR Crs) 1 Hub Reduction 012 August 2023 111.6 June 2024 August 2024 2 Hub Reduction 007 August 2023 55.6 August 2024 3 Hub Reduction 013 August 2023 12.8 4 Yoke Flange - Big Janua
Slide 15: EV Transmission Business
EV Transmission Business Leading Indian OEM Revenue Lifecycle Sr. No. Product Announcement on SOP (INR Crs) 1 45KW EV transmission August 2023 131.5 August 2024 150KW EV transmission July 2024 2 August 2023 73.2 component sets 3 3-wheeler EV motor shaft August 2023 14.3 January 2024 200+Crs revenue
Slide 16: Core & Other Products Business
Core & Other Products Business Leading Indian OEM Revenue Lifecycle Sr. No. Product Announcement on SOP (INR Crs) 1 Electric shift transfer case August 2023 210.0 June 2024 Manual transmission 2 August 2023 82.8 August 2024 counter shaft August 2023 3 Manual transmission Input Shaft 27.1 August 2023
Slide 17: Growth Strategy
Growth Strategy Application led Improve market share Geographic Customer diversification through and wallet share with diversification diversification new product offerings existing customers EV Automatic transmission transmission • Will further strengthen our • Increase business with existing • New
Slide 18: About Divgi
About Divgi Divgi-tTTs
Slide 19: Company Overview
Company Overview 1964 50+ 4 Our Valued Customers Incorporated Years of Manufacturing experience facilities Vision To be recognized as a world-class Indian brand in automotive drivetrain components and systems Strategies Product Leadership Revenue* EBITDA* PAT* • Technology-Led Innovation • Continuou
Slide 20: Journey so far
Journey so far 2023 - Listing 2018 • Awarded component 2024 business for supplies • Investment by Oman India Join to USA and Mexico Investment Firm II • Commercialisation of from 2022 BorgWarner • Shirwal Plant Developed 3 EV • Awarded the EV transmission transmission products 2016 2021 components •
Slide 21: Manufacturing Capabilities
Manufacturing Capabilities Year of Operations: 1996 Year of Operations: 1991 Product: Product: • Precision Grinding and • 4WD Transfer case Honing operations for transmission components Bhosari, Pune, Maharashtra Shivare, Pune Dist., Maharashtra Year of Operations: 1984 Year of Operations: 2023 Prod
Slide 22: Product Portfolio
Product Portfolio Automatic/Dual Clutch RWD Applications Manual Transmissions Synchronizers EV Transmission Key Components Transmissions Category / Product ICE (4WD/AWD) ICE (Manual) ICE (Automatic) Hybrid BEV Torque Transfer Systems - - - - Manual Transmission - - - - Synchronizer Systems - - Autom
Slide 23: Product Application
Product Application 4WD/AWD Products Manual Transmissions and Synchronizers Electric Vehicle Transmission Automatic Transmissions Representative Images
Slide 24: Marquee Customers
Marquee Customers Few clientele… 30+ 50+ 50+ 10+ 10+ 10+ Years of Years of Years of Years of Years of Years of relationship relationship relationship relationship relationship relationship MT Components, EV transmission, Transfer case Transfer Cases & EV Transmission Transfer Cases, Engine Timing Tr
Slide 25: Presence across the world
Presence across the world Germany ~3 Crs Export Revenue (INR Crs) UK USA China Portugal Korea Mexico India Thailand ~75 Crs New Export Business win (INR Crs) Emerge as one of the fastest growing drivetrain solution companies in the world As of FY24
Slide 26: Experienced Board Members
Experienced Board Members Our credible Board of Directors Praveen Kadle Chairman and Jitendra Divgi Managing Director Hirendra Divgi Executive Director Pradip Dubhashi Independent Director Independent Director Individuals of proven capability and integrity Bringing diverse competencies to the table
Slide 27: Strong Leadership Team
Strong Leadership Team Zubair Kachi Deepak Vani Prasanna Deshpande Chief Operating Officer & Rakesh Sharma Rupam Parwate Mktg., Sales & ABD Engineering & Product Purchase Mfg Engineering & Operational Excellence Development Growth & Launch Jitendra Divgi Managing Director Gopal Dalvi Mark John Nam J
Slide 28: Financials
Financials I? Divgi-tTTs
Slide 29: P&L – Historical Chart
P&L – Historical Chart Revenue From Operations (Rs. In Cr.) EBITDA (Rs. In Cr.) Profit After Tax (Rs. In Cr.) 271 74 51 253 66 46 234 38 40 187 52 53 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 EBITDA (%) PAT (%) 27.8% 28.3% 27.5% 20.4% 19.9% 19.1% 21.0% 15.7% FY21 FY22 FY23 FY24 FY2
Slide 30: Financial Ratios
Financial Ratios Fixed Assets Turnover Ratio (x) Working Capital (No. of Days) 1.39 1.30 1.16 62 days 66 days 69 days 87 days 0.97 98 84 85 FY21 FY22 FY23 FY24 76 61 62 60 Leverage ratios (x) & Net Debt (INR Crs) 58 49 46 44 (75.7) (117.9) (133.1) (262.7) (225.1) 42 0.2 FY21 FY22 FY23 FY24 0.0 0.0 0
Slide 31: Capex and Cash
Capex and Cash Return on Capital Employed (RoCE %) Capital Expenditure and Cash Reserves 17.5% 18.0% IPO proceeds capex – 169.60 crs Cash Reserves Capex of which ~44.57 crs already 12.4% deployed 9.3% 311 264 FY21 FY22 FY23 FY24 173 159 Return on Invested Capital (RoIC %) 32.4% 33.4% 78 68 25.6% 40
Slide 32: Historical P&L Statement
Historical P&L Statement Particulars (INR Crs) FY24 FY23 FY22 FY21 Revenue From Operations 253.4 271.0 233.8 186.6 Cost of Raw Materials Consumed 111.7 110.4 93.6 68.9 Change in Inventories (5.5) 1.0 0.1 (1.9) Employee Benefit Expenses 24.1 24.5 22.5 21.8 Other Expenses 70.0 60.7 52.0 45.9 EBITDA 53
Slide 33: Balance Sheet
Balance Sheet Particulars (INR Crs) FY24 FY23 Particulars (INR Crs) FY24 FY23 Assets Equity & Liabilities Non-Current Assets Total Equity Property, plant and equipment 211.7 111.1 Equity Share Capital 15.3 15.3 Capital work-in-progress 25.4 80.9 Other Equity 565.1 536.0 Right-of-use assets 1.5 2.5 L
Slide 34: Cashflow
Cashflow Particulars (INR Crs) FY24 FY23 Net Profit Before Tax 53.5 68.8 Adjustments for: Non -Cash Items / Other Investment or Financial Items 0.0 6.3 Operating profit before working capital changes 53.5 75.2 Changes in working capital 6.7 (16.9) Cash generated from Operations 46.8 58.2 Direct taxe
Slide 35: Thank You
Thank You PRODUCT LEADERSHIP Company: Investor Relations Advisors: LIKE NO OTHER CIN: L32201MH1964PLC013085 CIN: U74140MH2010PTC204285 Ms. Sanika Nirgude Ms. Neha Shroff / Mr. Mayur Pednekar companysecretary@divgi-tts.com neha.shroff@sgapl.net / mayur.Pednekar@sgapl.net +91 89566 65262 +91 77380 734
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