Slide 1: Stock exchange filing cover letter for revised investor presentation
Varroc Engineering Ltd. Regd. & Corp. Office L-4, MIDC, Industrial Area Tel + 91 240 6653700 email: varroc.info@varroc.com Waluj, Aurangabad 431 Fax + 91 240 2564540 www.varroc.com 136, Maharashtra, India CIN: L28920MH1988PLC047335 VARROC/SE/INT/2020-21/47 November 10, 2020 To, The Manager- Listing
Slide 2: Varroc Engineering Limited Financial Results Q2 FY21
Click to edit Master title style Varroc Engineering Limited Financial Results Q2 FY21 ::10th November 2020:: 1
Slide 3: Disclaimers
Disclaimers Click to edit Master title style 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 developme
Slide 4: Industry Trends in Q2
Industry Trends in Q2 FY21 Click to edit Master title style Global Passenger Vehicle Market Production 4.67m -8% 6.01m • Passenger Vehicle volumes in 4.31m +1% +11% 6.40m Q2 FY21 declined in Europe 4.00m 4.02m 5.79m while were flat in North America • China PV volumes saw a YoY growth as the industry
Slide 5: Business Highlights: Q2
Business Highlights: Q2 FY21 Click to edit Master title style • Revenue from Operations for the quarter increased by 7.9% YoY • Consolidated EBITDA for the quarter at ₹ 2661 Million; EBITDA margins increased by 60 bps YoY to 9.1% • India Business: Revenue declined by 7.2% YoY due to weak industry vo
Slide 6: Varroc Group: Financial Performance
Varroc Group: Financial Performance Click to edit Master title style Particulars Q2 FY21 Q2 FY20 Growth H1 FY21 H1 FY20 ₹ million Growth (Y-o-Y) (Y-o-Y) Revenue from Operations - Reported 29,161 27,032 8% 41,908 55,733 -25% Other income - Operating 228 88 338 368 Other income - Non operating 4 26 39
Slide 7: Varroc Group: Business Wise Performance Q2
Varroc Group: Business Wise Performance Q2 FY21 Click to edit Master title style ₹ million Q2 FY21 Q2 FY20 Revenue SBU Revenue EBITDA % EBITDA Revenue EBITDA % EBITDA Change YoY India Business 9,329 1,257 13.5% 10,058 1,076 10.7% -7.2% VLS 19,788 1,502 7.6% 16,373 1,239 7.6% 20.9% Others (IMES) 421
Slide 8: Revenue by Customers and Order Wins
Revenue by Customers and Order Wins Click to edit Master title style India Revenue Split by Customer(1) Q2 FY 21 % VLS Revenue Split by Customer (2) Q2 FY 21, % Revenue in Europe 15.0% Customer A Bajaj increased by 12% YoY 26.3% 26.6% Customer B Honda 11.8% Customer C Royal Enfield Revenue in Americ
Slide 9: Varroc Group: Business Wise Performance H1
Varroc Group: Business Wise Performance H1 FY21 Click to edit Master title style ₹ million H1 FY21 H1 FY20 Revenue SBU Revenue EBITDA % EBITDA Revenue EBITDA % EBITDA Change YoY India Business 12,306 1,004 8.2% 20,417 2,142 10.5% -39.7% VLS 29,251 (43) -0.1% 34,214 3,098 9.1% -14.5% Others (IMES) 82
Slide 10: Debt Situation Status Update and Outlook
Debt Situation Status Update and Outlook for FY21 Click to edit Master title style ₹ Billion 10.0 investments in Intangibles , 0.5 8.0 Capex paid, 1.8 34.1 6.0 32 Working capital 4.0 change, 4.6 Forecast 30.6 29 ~0.8x 0.8x 9.4 Actual 26 2.0 24.7 Op. loss bef. WC chg. + tax paid + int. paid, 2.2 0.0
Slide 11: Updates for FY21 – Current Situation and Outlook for rest of the year
Updates for FY21 – Current Situation and Outlook for rest of the year Click to edit Master title style • Current Situation – Q2 FY21 • October/November – Strong volume growth across locations in India as well as in VLS • Lockdowns announced in some markets in Europe not impacting industry manufactur
Slide 12: Varroc Group
Click to edit Master title style Confidential - Varroc Group 11